[Title 7 CFR ]
[Code of Federal Regulations (annual edition) - January 1, 1997 Edition]
[From the U.S. Government Publishing Office]


          7



          Agriculture



[[Page i]]

          PARTS 0 TO 26

          Revised as of January 1, 1997
          CONTAINING
          A CODIFICATION OF DOCUMENTS
          OF GENERAL APPLICABILITY
          AND FUTURE EFFECT

          AS OF JANUARY 1, 1997
          With Ancillaries
          Published by
          the Office of the Federal Register
          National Archives and Records
          Administration

          as a Special Edition of
          the Federal Register



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                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 1997



               For sale by U.S. Government Printing Office
 Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328



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                            Table of Contents


                                                                    Page
  Explanation.................................................       V

  Title 7:
    Subtitle A--Office of the Secretary of Agriculture........       3
  Finding Aids:
    Material Approved for Incorporation by Reference..........     517
    Table of CFR Titles and Chapters..........................     519
    Alphabetical List of Agencies Appearing in the CFR........     535
    List of CFR Sections Affected.............................     545

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                                  ----------------------------------------------------------                    
                                   Cite this Code:  CFR                                                         
                                                                                                                
                                   To cite the regulations in this volume use title, part                       
                                    and section number. Thus, 7 CFR 0.735-1 refers to title                     
                                    7, part 0, section 735-1.                                                   
                                                                                                                
                                  ----------------------------------------------------------                    
                                                                                                                


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                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1
    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, January 1, 1997), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
exercised by the user in determining the actual effective date. In 
instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For 
the period beginning January 1, 1986, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume.

INCORPORATION BY REFERENCE

    What is incorporation by reference? Incorporation by reference was 
established by statute and allows Federal agencies to meet the 
requirement to publish regulations in the Federal Register by referring 
to materials already published elsewhere. For an incorporation to be 
valid, the Director of the Federal Register must approve it. The legal 
effect of incorporation by reference is that the material is treated as 
if it were published in full in the Federal Register (5 U.S.C. 552(a)). 
This material, like any other properly issued regulation, has the force 
of law.
    What is a proper incorporation by reference? The Director of the 
Federal Register will approve an incorporation by reference only when 
the requirements of 1 CFR part 51 are met. Some of the elements on which 
approval is based are:
    (a) The incorporation will substantially reduce the volume of 
material published in the Federal Register.
    (b) The matter incorporated is in fact available to the extent 
necessary to afford fairness and uniformity in the administrative 
process.
    (c) The incorporating document is drafted and submitted for 
publication in accordance with 1 CFR part 51.
    Properly approved incorporations by reference in this volume are 
listed in the Finding Aids at the end of this volume.
    What if the material incorporated by reference cannot be found? If 
you have any problem locating or obtaining a copy of material listed in 
the Finding Aids of this volume as an approved incorporation by 
reference, please contact the agency that issued the regulation 
containing that incorporation. If, after contacting the agency, you find 
the material is not available, please notify the Director of the Federal 
Register, National Archives and Records Administration, Washington DC 
20408, or call (202) 523-4534.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
Authorities and Agency Rules (Table I), and Acts Requiring Publication 
in the Federal Register (Table II). A list of CFR titles, chapters, and 
parts and an alphabetical list of agencies publishing in the CFR are 
also included in this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.

[[Page vii]]

    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-523-5227 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408.
SALES

    The Government Printing Office (GPO) processes all sales and 
distribution of the CFR. For payment by credit card, call 202-512-1800, 
M-F, 8 a.m. to 4 p.m. e.s.t. or fax your order to 202-512-2233, 24 hours 
a day. For payment by check, write to the Superintendent of Documents, 
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Customer Service call 202-512-1803.

                              Richard L. Claypoole,
                                    Director,
                          Office of the Federal Register.

January 1, 1997.



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                               THIS TITLE

    Title 7--Agriculture is composed of fifteen volumes. The parts in 
these volumes are arranged in the following order: parts 0-26, 27-52, 
53-209, 210-299, 300-399, 400-699, 700-899, 900-999, 1000-1199, 1200-
1499, 1500-1899, 1900-1939, 1940-1949, 1950-1999, and part 2000 to end. 
The contents of these volumes represent all current regulations codified 
under this title of the CFR as of January 1, 1997.

    The Food and Consumer Service current regulations in the volume 
containing parts 210-299, include the Child Nutrition Programs and the 
Food Stamp Program. The regulations of the Federal Crop Insurance 
Corporation are found in the volume containing parts 400-699.

    All marketing agreements and orders for fruits, vegetables and nuts 
appear in the one volume containing parts 900-999. All marketing 
agreements and orders for milk appear in the volume containing parts 
1000-1199. Part 900--General Regulations is carried as a note in the 
volume containing parts 1000-1199, as a convenience to the user.

    Redesignation tables appear in the Finding Aids section of the 
volumes containing parts 210-299 and parts 1500-1899.

    For this volume, Gregory R. Walton was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

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[[Page 1]]



                          TITLE 7--AGRICULTURE




                   (This book contains parts 0 to 26)

  --------------------------------------------------------------------
                                                                    Part
SUBTITLE A--Office of the Secretary of Agriculture..........

                                                                       0

Cross References: Animal and Plant Health Inspection Service, Department 
  of Agriculture, see 7 CFR chapter III; 9 CFR chapter I.
Commodity Futures Trading Commission, see 17 CFR chapter I.
Commodity Credit Corporation, Department of Agriculture, see 7 CFR 
  chapter XIV.
Customs Service, Department of the Treasury, see 19 CFR chapter I.
Farm Credit Administration, see 12 CFR chapter VI.
Farmers Home Administration, Department of Agriculture, see 7 CFR 
  chapter XVIII.
Federal Crop Insurance Corporation, Department of Agriculture, see 7 CFR 
  chapter IV.
Fish and Wildlife Service, Department of the Interior, see 50 CFR 
  chapters I and IV.
Food and Drug Administration, Department of Health and Human Services, 
  see 21 CFR chapter I.
Food Safety and Inspection Service, Meat and Poultry Inspection, 
  Department of Agriculture, see 9 CFR chapter III.
Forest Service, Department of Agriculture, see 36 CFR chapter II.
Rural Electrification Administration, Department of Agriculture, see 7 
  CFR chapter XVII.
Soil Conservation Service, Department of Agriculture, see 7 CFR chapter 
  VI.
United States International Trade Commission, see 19 CFR chapter II.

  Note: Other regulations issued by the Department of Agriculture appear 
in chapters I to XLI of title 7, and chapter 4 of title 48.

[[Page 3]]



           SUBTITLE A--OFFICE OF THE SECRETARY OF AGRICULTURE




  --------------------------------------------------------------------

Part                                                                Page
0               Employee responsibilities and conduct.......           5
1               Administrative regulations..................          29
1a              Law enforcement authorities.................         119
1b              National Environmental Policy Act...........         120
1c              Protection of human subjects................         122
2               Delegations of authority by the Secretary of 
                    Agriculture and general officers of the 
                    Department..............................         132
3               Debt management.............................         259
4         [Reserved]
5               Determination of parity prices..............         275
6               Import quotas and fees......................         279
7               Selection and functions of Agricultural 
                    Stabilization and Conservation State, 
                    county and community committees.........         296
8               4-H Club name and emblem....................         309
9-10      [Reserved]
11              National Appeals Division rules of procedure         312
12              Highly erodible land and wetland 
                    conservation............................         321
13        [Reserved]
14              Determining the primary purpose of certain 
                    payments for Federal tax purposes.......         343
15              Nondiscrimination...........................         346
15a             Education programs or activities receiving 
                    or benefitting from Federal financial 
                    assistance..............................         377
15b             Nondiscrimination on the basis of handicap 
                    in programs and activities receiving 
                    Federal financial assistance............         393
15e             Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by the United 
                    States Department of Agriculture........         416
16        [Reserved]

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17              Sales of agricultural commodities made 
                    available under Title 1 of the 
                    Agricultural Trade Development and 
                    Assistance Act of 1954, as amended......         422
18              Equal employment opportunity in the State 
                    Cooperative Extension Services..........         470
19        [Reserved]
20              Export sales reporting requirements.........         472
21              Uniform relocation assistance and real 
                    property acquisition for Federal and 
                    federally assisted programs.............         479
22              Rural development coordination..............         480
23              State and regional annual plans of work.....         485
24              Board of Contract Appeals, Department of 
                    Agriculture.............................         490
25              Rural empowerment zones and enterprise 
                    communities.............................         501
26        [Reserved]

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PART 0--EMPLOYEE RESPONSIBILITIES AND CONDUCT--Table of Contents




                      Subpart A--General Provisions

Sec.
0.735-1  Purpose.
0.735-2  Definitions.
0.735-3  Counseling and advisory service.
0.735-4  Agency supplementation.
0.735-5  Remedial action.
0.735-6  Responsibilities of supervisors.

          Subpart B--Conduct and Responsibilities of Employees

0.735-11  Prohibited conduct--general.
0.735-12  Gifts, gratuities, entertainment, and favors.
0.735-13  Outside employment and activities.
0.735-14  Conflict of interest.
0.735-15  Attendance and leave.
0.735-16  Use of Government property, facilities, and services.
0.735-17  Use of vehicles.
0.735-18  Indebtedness.
0.735-19  Political activity.
0.735-20  Use, protection, and release of information.
0.735-21  Activities with regard to farm organizations.
0.735-22  Prohibitions upon employees serving abroad.
0.735-23  Miscellaneous provisions.
0.735-24  Miscellaneous statutory provisions.

       Subpart C--Statements of Employment and Financial Interests

0.735-31  Employees required to submit statements under the Executive 
          order.
0.735-32  Exceptions.
0.735-33  Identification of employees required to submit statements.
0.735-34  Time and place for submission of employees' statements.
0.735-35  Supplementary statements.
0.735-36  Types of interests to be reported.
0.735-37  Information prohibited.
0.735-38  Interests of employee's relatives.
0.735-39  Information not known by employee.
0.735-40  Effect of employee's statement.
0.735-41  Specific provisions for special Government employees.
0.735-42  Review of statements and determination of conflicting 
          interests.
0.735-43  Protection of employees' statements.
0.735-44  Financial disclosure under the Ethics in Government Act.

Subpart D--Administrative Enforcement of Restriction on Post-Employment 
                               Activities

0.735-51  Purpose.
0.735-52  Notice of violation.
0.735-53  Initiation of administrative action.
0.735-54  Hearing officer.
0.735-55  Department representative.
0.735-56  Time, date and place of hearing.
0.735-57  Representation.
0.735-58  Rights of parties at hearing.
0.735-59  Oaths and rules of evidence.
0.735-60  Transcript.
0.735-61  Briefs and discovery.
0.735-62  Open hearing.
0.735-63  Ex-parte communications.
0.735-64  Administrative record.
0.735-65  Burden of proof.
0.735-66  Initial decision.
0.735-67  Appeal.
0.735-68  Final decision.
0.735-69  Sanctions.
0.735-70  Finality.

    Authority: E.O. 11222, 30 FR 6469, 3 CFR, 1965 Comp., page 306; 5 
CFR 735.104; 18 U.S.C. 207(j), unless otherwise noted.

    Source: 43 FR 43431, Sept. 26, 1978, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 0.735-1  Purpose.

    The maintenance of unusually high standards of honesty, integrity, 
impartiality, and conduct by Government employees and special Government 
employees is essential to assure the proper performance of the 
Government business and the maintenance of confidence by citizens in 
their Government. The confidence of citizens in their Government is 
influenced not only by the manner in which employees serve the public 
but in the way they conduct themselves in the eyes of the public. The 
avoidance of misconduct and conflicts-of-interests on the part of 
Government employees through informed judgment is indispensable to the 
maintenance of these standards. To accord with these concepts, this part 
sets forth the regulations for employees of the U.S. Department of 
Agriculture, prescribing standards of conduct and responsibilities and 
governing the reporting of employment and financial interests.



Sec. 0.735-2  Definitions.

    In this part:
    (a) Agency means an independent subagency or departmental staff 
office of the U.S. Department of Agriculture.
    (b) Agency Head means the Administrator or Chief Executive Officer 
of an

[[Page 6]]

independent subagency or departmental staff office.
    (c) Conflict-of-interest means a situation in which a Federal 
employee's private interest, usually of an economic nature, conflicts 
with his or her Government duties and responsibilities.
    (d) Appearance of conflict-of-interest means a situation where it 
could reasonably be concluded that an employee's private interest is in 
conflict with his or her Government duties and responsibilities, even 
though there may not actually be such a conflict.
    (e) Employee means a regular officer or employee of the Department 
of Agriculture including excepted and WOC employees and includes a 
special Government employee unless otherwise provided.
    (f) Special Government employee means an officer or employee of the 
Department of Agriculture who is retained, designated, appointed, or 
employed to perform temporary duties either on a full-time or 
intermittent basis, with or without compensation, for not to exceed 130 
days during any period of 365 consecutive days.
    (g) Supervisor means an employee having authority, in the interest 
of an Agency, to hire, transfer, suspend, lay off, recall, promote, 
discharge, assign, reward, or discipline other employees or 
responsibility to direct them, or to adjust their grievance, or 
effectively recommend such action, if in connection with the foregoing 
the exercise of authority is not of a merely routine or clerical nature, 
but requires the use of independent judgment.
    (h) Outside employment or activity means any outside work, service, 
or activity performed by an employee other than in the performance of 
official duties. It includes but is not limited to such activities as 
writing, editing, publishing, teaching, lecturing, consulting services, 
self-employment, working for another employer, management or operation 
of a private business, personally owned business, partnership, 
corporation, or any work perfomed with or without compensation.
    (i) Members of family means those blood and in-law relations who are 
residents of the employee's household.
    (j) The Executive order means Executive Order 11222 of May 8, 1965.



Sec. 0.735-3  Counseling and advisory service.

    (a) The General Counsel shall designate an employee of the Office of 
the General Counsel to serve as the Department Counselor and designee to 
the Civil Service Commission on matters covered by the regulations in 
this part. Employees shall be notified semiannually of the name and 
title of the Department Counselor and also upon the designation of a new 
employee to that position. The Department Counselor shall have overall 
responsibility for coordination of the Department's counseling and 
advisory service, and for assuring advice and interpretations on 
questions of conflict or apparent conflicts-of-interest and other 
matters covered by the regulations in this part are available to Deputy 
Counselors and Assistant Deputy Counselors hereinafter designated.
    (b) The Director of Personnel and the Chief, Security and Employee 
Relations Division, Office of Personnel, shall be Department Deputy 
Counselors.
    (c) Agency Heads will be Agency Deputy Counselors. If necessary, in 
order to assure that counseling and advisory service is available to all 
Washington and field employees, the Agency Head may designate as Agency 
Assistant Deputy Counselors such employees as are qualified and in a 
position to give authoritative advice and guidance on most matters 
covered by this part.
    (d) All employees are to be notified of the availability of 
counseling and by whom this service is provided. Initial notification 
must be made within 90 days after issuance of this part, and perodically 
thereafter. A new employee or new special Government employee must be 
notified at or before the time of his or her entrance on duty.
    (e) Each new employee shall be furnished at the time of hiring a 
copy of this part. Current employees shall be furnished a copy of these 
regulations within 90 days following issuance. Subsequent changes to 
these regulations will be furnished employees upon issuance. Each 
employee shall be reminded of the regulations in this part semiannually.

[[Page 7]]

    (f) The regulations in this part will be discussed with each 
employee annually in conjunction with the employee's performance 
evaluation. Each employee will certify on the performance evaluation 
form or other Agency form that he or she has a copy of this part and has 
discussed it with his or her supervisor.
    (g) In addition to the counseling service set forth in paragraphs 
(a) through (f) of this section, 5 CFR 738 prescribes the naming of a 
Designated Agency Ethics Official (DAEO) to administer Title II of the 
Ethics in Government Act of 1978, to coordinate and manage the agency's 
ethics program, and to provide liaison with the Office of Government 
Ethics with regard to all aspects of the Ethics program. The Director of 
Personnel has been designated by the Secretary of Agriculture to serve 
as DAEO for USDA. The responsibilities and duties of the DAEO can be 
found in 5 CFR 738.203.

(5 U.S.C. 301; Title II of Pub. L. 95-521, 92 Stat. 1836, as amended, 5 
U.S.C. app.; 5 CFR 738)

[43 FR 43431, Sept. 26, 1978, as amended at 47 FR 10509, Mar. 11, 1982]



Sec. 0.735-4  Agency supplementation.

    Agencies of the Department may issue such additional regulations as 
are necessary, consistent, and of necessity more restrictive than the 
regulations in this part, subject to the prior approval of the Director 
of Personnel. Agencies are expected to issue such supplemental 
regulations, with respect to employees assigned to particular programs, 
as are necessary to prevent such employees from being in a potential 
conflict-of-interest situation or a situation giving the appearance of a 
conflict-of-interest. Such Agency regulations shall be furnished to 
employees in the same manner as the regulations in this part.



Sec. 0.735-5  Remedial action.

    (a) A violation of this part by an employee may be cause for 
remedial action. Remedial action may include, but is not limited to:
    (1) Changes in assigned duties;
    (2) Divestment by the employee of a conflicting interest;
    (3) Disqualification for a particular assignment; or
    (4) Disciplinary action which may be in addition to any penalty 
prescribed by law.
    (b) Remedial action, whether disciplinary or otherwise, shall be 
effected in accordance with any applicable laws, Executive Orders, and 
regulations.



Sec. 0.735-6  Responsibilities of supervisors.

    (a) Supervisors, because of their day-to-day relationships with 
employees, are responsible to a large degree for maintaining high 
standards of ethics and conduct. They must become familiar with the 
regulations in this part and apply the standards to themselves and 
employees they supervise.
    (b) Supervisors shall advise an employee who comes to them with 
questions on matters covered by these regulations, or when they consider 
it appropriate, refer the employee or the questions to a counselor 
designated in Sec. 0.735-3.



          Subpart B--Conduct and Responsibilities of Employees



Sec. 0.735-11  Prohibited conduct--general.

    (a) An employee shall avoid any action, whether or not specifically 
prohibited by this subpart, which might result in or create the 
appearance of:
    (1) Using public office for private gain;
    (2) Giving preferential treatment to any person;
    (3) Impeding Government efficiency or economy;
    (4) Losing complete independence or impartiality;
    (5) Making a Government decision outside of official channels; or
    (6) Affecting adversely the confidence of the public in the 
integrity of the Government.
    (b) Employees are specifically prohibited from:
    (1) Engaging in criminal, infamous, dishonest or notoriously 
disgraceful conduct, or other conduct prejudicial to the Government;
    (2) Betting or participating in any gambling activity, including the 
operation of a gambling device, conducting

[[Page 8]]

a lottery or pool, or selling or buying a number slip or ticket, while 
on Government-owned or leased property or while on duty for the 
Government;
    (3) Using intoxicating beverages or narcotic drugs on Government-
owned or leased property, or transporting such beverages or drugs in 
Government-owned or leased vehicles, or using such beverages or drugs at 
any time or place to the extent that it adversely affects performance of 
official duties;
    (4) Lending funds at usurious interest rates;
    (5) Provoking or harassing other employees, or making unwarranted 
criticism or accusations against other employees;
    (6) Except as authorized by the Inspector General with the consent 
of a party to the conversation when necessary in criminal 
investigations, monitoring or recording, or authorizing or permitting 
others under their administrative control to monitor or record, 
telephone conversations for the purpose of taking a verbatim transcript 
of all or part of the conversation unless such monitoring or recording 
is agreed to in advance by all participants in the conversation or such 
monitoring or recording occurs in the course of a Department of 
Agriculture proceeding conducted by telephone or audio-visual 
telecommunication and the person conducting the proceeding is an 
administrative law judge, hearing officer, examiner, or presiding 
officer;
    (7) Except as authorized by the Inspector General with the consent 
of a party to the conversation when necessary in criminal 
investigations, utilizing a mechanical or electronic device to monitor 
or record nontelephone conversations, unless such monitoring or 
recording is agreed to in advance by all participants in the 
conversation or such monitoring or recording occurs in the course of a 
Department of Agriculture proceeding conducted by telephone or audio-
visual telecommunication and the person conducting the proceeding is an 
administrative law judge, hearing officer, examiner, or presiding 
officer;
    (8) Soliciting, making collections, canvassing for the sale of any 
article, or distributing or posting literature, advertising matter, or 
any other graphic matter, in any space occupied by the Department, 
except as authorized in writing by the Director of Personnel;
    (9) Soliciting money from, or selling tickets to, persons outside 
the Government for the benefit of any organization of the Department;
    (10) Taking any action which might prejudice the Government's 
interest in a criminal or civil case;
    (11) Giving aid or assistance, other than in the discharge of 
official duties, to any claimant in prosecuting any claim against the 
United States; or
    (12) Distributing through the Department's mail and messenger 
service, or otherwise distributing or posting, in any space occupied by 
the Department, any circulars, flyers, announcements, pictures, or other 
graphic matters, etc., that:
    (i) Directly or indirectly attack or adversely reflect on the 
integrity of any official, officer or employee of any branch of the 
Government; or
    (ii) Directly or indirectly condemn or criticize the policies of any 
Government department or agency.
    (13) Discriminating against any person on the grounds of race, 
color, national origin, religion, sex, age, marital status, physical or 
mental handicap, or political affiliation;
    (14) Engaging in sexual harassment by participating in coercive or 
repeated unsolicited and unwelcome verbal comments, gestures, or 
physical contacts of a sexual nature or by using implicit or explicit 
coercive sexual behavior in the process of conducting agency business, 
or to control, influence or affect the career, salary, or job of an 
employee. Supervisors and managers who fail to take appropriate action 
on complaints of sexual harassment will be subject to disciplinary 
action;
    (15) Displaying discourtesy or disrespect to a member of the public 
when acting in an official capacity.

[43 FR 43431, Sept. 26, 1978, as amended at 46 FR 22559, Apr. 20, 1981; 
60 FR 8454, Feb. 14, 1995]



Sec. 0.735-12  Gifts, gratuities, entertainment, and favors.

    (a) Except as provided in paragraphs (c) and (f) of this section, 
employees

[[Page 9]]

shall not solicit or accept, for themselves or another person, directly 
or indirectly, any gift, gratuity, favor, entertainment, loan, unusual 
discount, special consideration or any other thing of monetary value 
(including complimentary meals and beverages, tangible items, tickets 
and passes) from any interested party. An interested party is any 
person, firm, corporation, other entity, or an individual acting in 
behalf thereof, which:
    (1) Has or is seeking to engage in, procurement activities or other 
contractual, business, or financial relations with the Department;
    (2) Conducts operations or activities that are regulated by the 
Department; or
    (3) Has interests that may be substantially affected by the 
performance or nonperformance of the official duty of the employee 
concerned.
    (b) Gifts, gratuities, favors, entertainment, loans, unusual 
discounts, special considerations and any other thing of monetary value 
bestowed upon members of the employee's immediate family are considered 
to be the same as if bestowed upon the employee. Acceptance of items, no 
matter how innocently offered or accepted from ``interested parties'' 
may be a source of embarrassment to the Department and the employee 
involved, may affect the objective and impartial judgment of the 
employee, and may impair confidence of the public in the integrity of 
the employee and the Department.
    (c) The restrictions in paragraph (a) of this section do not 
prohibit:
    (1) Exchange of social gifts in an obvious family or personal 
relationship (such as those between the employee and parents, spouse, 
children, or close personal friends of the employee) when the 
circumstances make it clear that it is those relationships rather than 
the business of the ``interested party'' which are the motivating 
factors;
    (2) Exchange of customary social courtesies which are wholly free of 
any embarrassing or improper implications, and which are of trivial 
value (e.g., soft drink or cup of coffee);
    (3) Acceptance of loans from banks or other financial institutions 
on customary terms to finance proper and usual activities of employees, 
such as automobile and home mortgage loans;
    (4) Acceptance of unsolicited advertising or promotional material of 
clearly trivial value, such as: pens, pencils, note pads, calendars, and 
other things of nominal or trifling value. Acceptance of gifts, such as 
meat products, alcoholic beverages, fruit baskets, boxes of candy, 
wallets, jewelry, and cuff links is, however, strictly prohibited; or
    (5) Acceptance of food and refreshments of nominal value on 
infrequent occasions when the interest of the Government is served by 
participation of Department employees in industry-sponsored  activities  
at  which  a luncheon or dinner may be served, and where the discussion 
of matters of mutual interest to the Government and industry will take 
place.
    (d) An employee shall not solicit a contribution from another 
employee for a gift to an official superior, make a donation as a gift 
to an official superior, or accept a gift from an employee receiving 
less pay than himself or herself (5 U.S.C. 7351). However, this 
paragraph does not prohibit the voluntary giving or acceptance of a gift 
of nominal value or donation in a nominal amount made on a special 
occasion such as marriage, illness, or retirement.
    (e) Pursuant to 5 U.S.C. 7342, the acceptance by an employee of a 
gift, present, decoration or other thing from a foreign government or 
agent thereof (including an international organization whose membership 
includes a unit of foreign government, or any agent of a foreign 
government) is subject to the following conditions:
    (1) An employee may not request or otherwise encourage the tender of 
a decoration or gift (including travel and travel expenses);
    (2) An employee may accept and retain a gift that is tendered and 
received as a souvenir or a mark of courtesy if the gift has a retail 
value in the United States of $140 or less at the time of acceptance;
    (3) An employee may accept a gift of more than $140 when such gift 
is in the nature of an educational scholarship or medical treatment or 
when it appears that to refuse the gift would likely

[[Page 10]]

cause offense or embarrassment or otherwise adversely affect the foreign 
relations of the United States. An employee may also accept gifts of 
travel or expenses for travel entirely outside the United States 
provided the employee obtains prior approval from the Head of the 
employing Agency or his or her designee;
    (4) The acceptance of a tangible gift of more than $140 is deemed to 
have been accepted on behalf of the United States and becomes the 
property of the United States. It must be deposited by the employee 
within 60 calendar days with his or her employing Agency's Property 
Management Officer with a statement indicating:
    (i) Name and position of the employee;
    (ii) Brief description of the gift and the circumstances justifying 
acceptance;
    (iii) Identity, if known, of the foreign government and name and 
position of the individual who presented the gift;
    (iv) Date of acceptance of gift;
    (v) Estimated value in the United States of the gift at time of 
acceptance; and
    (vi) Disposition and current location of the gift.

If the gift is for travel or travel expenses, the employee must file a 
statement with his or her employing Agency Head within 30 calendar days 
after acceptance indicating: Name and position of the employee, brief 
description of the gift and the circumstances justifying acceptance, and 
identity, if known, of the foreign government and name and position of 
the individual who presented the gift;
    (5) An employee may accept, retain, and wear a foreign decoration, 
if tendered in recognition of active field service or unusually 
meritorious service and if supported by a statement from the donor, 
preferably in the form of a citation, which shows the basis for tender 
of the award. A request from the Head of the employing Agency for 
approval of the acceptance of the decoration will be forwarded to the 
Administrator of the Foreign Agricultural Service or his or her designee 
for concurrence or disapproval. The request from the employing Agency 
must contain a recommendation as to whether or not the acceptance, 
retention, and wearing of the foreign decoration by the employee would 
be in the best interest of the United States. The Administrator of the 
Foreign Agricultural Service shall notify the employing Agency of his or 
her concurrence or disapproval of the retention of the foreign 
decoration. Disapprovals by the Foreign Agricultural Service shall 
constitute acceptance on behalf of the United States and the decoration 
shall be deposited by the employee with the Agency's Property Management 
Officer within 60 calendar days. The Property Management Officer shall 
report the decoration as required by the Agriculture Property Management 
Regulations;
    (6) Violation of the provisions of the law including the failure by 
an employee to report such a gift may result in a civil penalty against 
the employee for the value of the gift plus $5,000; and
    (7) The definition of employee includes all employees of the 
Department, experts, or consultants under contract with the United 
States, spouses of all such individuals, and blood and in-law relations 
who are residents of the employee's household.
    (f) Neither this section nor Sec. 0.735-13(a) precludes an employee 
from receipt of bona fide reimbursement, unless prohibited by law, for 
expenses of travel, and such other necessary subsistence as is 
compatible with this part for which no Government payment or 
reimbursement is made. However, this paragraph does not allow an 
employee to be reimbursed, or payment to be made on his or her behalf, 
for excessive personal living expenses, gifts, entertainment, or other 
personal benefits; nor does it allow an employee to be reimbursed for 
travel on official business under Agency orders when reimbursement is 
proscribed by decision B-128527 of the Comptroller General dated March 
7, 1967 (46 Comp. Gen. 689).

[43 FR 43431, Sept. 26, 1978, as amended at 47 FR 12327, Mar. 23, 1982]



Sec. 0.735-13  Outside employment and activities.

    (a) An employee shall not engage in outside employment or other 
outside activity not compatible with the full and proper discharge of 
the duties and

[[Page 11]]

responsibilities of his or her Government employment whether on his or 
her behalf, or for private individuals, firms, companies, institutions, 
professional societies, or State or local governments. Incompatible 
activities include but are not limited to:
    (1) Outside employment or activity (including the acceptance of a 
fee, compensation, gift, payment of expenses or any other thing of 
monetary value) which may result in, or create the appearance of a 
conflict-of-interest;
    (2) Outside employment or activity which tends to impair the 
employee's mental or physical capacity to perform his or her Government 
duties and responsibilities in an acceptable manner;
    (3) Outside employment or activity that takes the employee's time 
and attention during his or her official work hours;
    (4) Outside employment or activity which may be construed by the 
public to be official acts of the Department, or of a nature closely 
paralleling the work of the Department;
    (5) Outside employment or activity which involves participation in a 
commercially sponsored broadcast, or which relates to a written 
discussion of policies or official work of the Department, unless 
authorized in advance by the Office of Governmental and Public Affairs;
    (6) Outside employment or activity which involves permission, or the 
appearance of permission to use an employee's name in the advertising of 
organizations commercializing the results of research conducted by the 
Department, regardless of any merits which such enterprises may appear 
to possess;
    (7) Outside employment or activity which may involve the use of 
information secured as the result of employment in the Department and to 
the detriment of the public service;
    (8) Any outside employment or activity which may tend to bring 
criticism of, or cause embarrassment to, the Department;
    (9) Outside employment or activity which would involve the use by 
the employee of official facilities, e.g., office space, office 
machines, supplies, telephones, or the services of other employees; and
    (10) Outside employment or activity which would involve the 
violation of a Federal or State statute, a local ordinance, Executive 
order, or regulation to which the employee is subject.
    (b) Outside employment or activity (including self-employment) is 
permitted to the extent that it does not conflict with other 
requirements of this part, or tend to create a conflict-of-interest, or 
appearance of conflict-of-interest, between the private interests of an 
employee and the employee's official responsibilities. The employee's 
outside employment or activity shall not reflect discredit on the 
Government or the Department.
    (c) Except as provided in paragraphs (c)(1) through (4) of this 
section, employees shall obtain advance approval for outside employment 
or activity whether paid or unpaid. Each Agency shall establish the 
approval level and shall advise each employee. A record of each approval 
shall be filed in the employee's official personnel folder. The term 
outside employment or activity as used in this paragraph does not 
include:
    (1) Memberships in, or volunteer work with, charitable, religious, 
social, fraternal, recreational, public service, civic, or similar 
nonbusiness and nonprofit organizations;
    (2) Memberships in professional organizations;
    (3) Performance of duties in the Armed Forces, Reserve, or National 
Guard; or
    (4) Acting as an officer of a labor organization pursuant to section 
18 of Executive Order 11491, as amended.
    (d) In considering requests for approval of outside employment, the 
following criteria should be applied:
    (1) The provisions of applicable laws;
    (2) The policies incorporated in this part including the possibility 
of conflict-of-interest or appearance of conflict-of-interest;
    (3) The general attendance record of the employee;
    (4) The nature of the employee's official duties in relation to the 
nature of the duties which will comprise the outside employment or 
activity; and
    (5) The amount of time and hours of work required by the outside 
employment or activity.

[[Page 12]]

    (e) Employees are specifically prohibited from acting as the agent 
of a foreign principal registered under the Foreign Agent's Registration 
Act (18 U.S.C. 219).
    (f) No employee, whether in a duty or nonduty status, shall accept 
outside employment or activity, with or without compensation, from any 
foreign government, corporation, partnership, or individual without 
written prior approval from a counselor designated under Sec. 0.735-3.
    (g) It is the policy of the Department to grant permission to an 
employee to teach, lecture, or write including teaching, lecturing, or 
writing for the purpose of the special preparation of a person or class 
of persons for an examination of the Civil Service Commission or Board 
of Examiners for the Foreign Service, provided:
    (1) Prior written authorization is obtained from the agency head, or 
a counselor designated under Sec. 0.735-3;
    (2) Such teaching, lecturing, or writing is not performed at or for 
any educational institution or other organization that discriminates 
because of race, creed, color, sex, age, national origin, or physical or 
mental handicap in the admission or subsequent treatment of students;
    (3) Such teaching, lecturing, or writing is not dependent on 
information obtained as a result of his or her employment or activity 
with the Department, except when that information has been made 
available to the general public or when the agency head or agency head's 
designee gives specific authorization for the use of nonpublic 
information in the public interest; and
    (4) Such teaching, lecturing, or writing is not otherwise 
incompatible with the provisions of this part.
    (h) Articles prepared officially are the property of the Government, 
and authors thereof may not accept payment for such articles published 
in outside journals, magazines, or newspapers.
    (i) Employees may not accept honorariums for written articles, 
speaking engagements, or addresses on radio or television or other 
appearances performed as part of their official duties. This restriction 
on the acceptance of honorariums applies even if the Government official 
endorses the check to a charitable organization or asks that the check 
be sent to a charitable organization.
    (j) No employees, except special Government employees, shall accept 
compensation for services as consultants or advisors to any 
organization, public or private, in any manner which draws upon the 
experience, competence, or professional standing acquired or enhanced by 
or through their position in this Department unless they have received 
permission from their agency head. Special Government employees shall 
not use their employment or activity with the Department for a purpose 
that is, or gives the appearance of being, motivated by the desire for 
private gain for themselves or another (41 FR 24108, June 15, 1976).



Sec. 0.735-14  Conflict of interest.

    (a) The following prohibitions apply to both a regular employee and 
a special Government employee:
    (1) He or she may not have a direct or indirect financial interest 
that conflicts substantially, or appears to conflict substantially, with 
his or her responsibilities and duties as a Federal employee;
    (2) He or she may not engage, directly or indirectly, in a financial 
transaction relying upon information obtained through his or her 
employment for his or her personal benefit or disclose such information 
for the benefit of another;
    (3) He or she may not participate directly or indirectly in any 
transaction concerning the purchase or sale of corporate stocks or 
bonds, commodities, or other property for speculative purposes if such 
action might tend to interfere with the proper and impartial performance 
of his or her duties or bring discredit upon the Department;
    (4) If he or she is concerned in any way with the administration of 
programs for the purchase or sale of commodities, price support 
programs, commodity loan programs, or other programs which directly 
affect market prices of agricultural commodities, he or she may not 
directly or indirectly speculate in any agricultural commodity;

[[Page 13]]

    (5) He or she may not, after his or her Government employment has 
ended, represent any other person (other than the United States), in any 
formal or informal appearance before, or with the intent to influence, 
make any communication on behalf of any other person; (i) to the United 
States, (ii) in connection with any particular Government matter 
involving a specific party, in which the United States is a party or has 
an interest and in which he or she participated personally and 
substantially as a Government employee (18 U.S.C. 207(a));
    (6) He or she may not, within two years after his or her Government 
employment has ended, represent any other person (other than the United 
States), in any formal or informal appearance before, or with the intent 
to influence, make any communication on behalf of any other person; (i) 
to the United States, (ii) in connection with any particular Government 
matter involving a specific party, in which the United States is a party 
or has an interest and which was actually pending under his or her 
official responsibility within a period of one year prior to the 
termination of such responsibility (18 U.S.C. 207(b)(i));
    (7) He or she may not, having been employed and as specified in 18 
U.S.C. 207(d), as a high Government official, for two years after his or 
her Government employment has ended, aid, counsel, advise, consult, or 
assist in representing any other person (other than the United States) 
by personal presence at any formal or informal appearance; (i) before 
the United States, (ii) in connection with any particular Government 
matter involving a specific party, (iii) in which he or she participated 
personally and substantially for the Government (18 U.S.C. 207(b)(ii));
    (8) He or she may not, having been employed and as specified in 18 
U.S.C. 207(d), as a high Government official (other than a special 
Government employee who serves for fewer than sixty days in a calendar 
year) for one year after his or her Government employment has ended, 
represent anyone (other than the United States) in any formal or 
informal appearance before, or with the intent to influence, make any 
communication on behalf of anyone to the department or agency in which 
he or she was employed, in connection with any particular Government 
matter, whether or not involving a specific party, which is pending 
before that department or agency or in which such department or agency 
has a direct and substantial interest (18 U.S.C 207(c)). The above 
prohibition shall not apply to communications or representations made by 
a former employee--
    (i) Who is an elected official of a State or local government; or
    (ii) Whose principal occupation is with--
    (A) An agency or instrumentality of a State or local government,
    (B) An accredited institution of higher education, or
    (C) A hospital or medical research organization when the 
representation or communication is made on behalf of such government, 
institution, hospital, or organization (18 U.S.C. 207(d)(2)).
    (9) Except as permitted by paragraphs (b) and (c) of this section, 
he or she may not participate personally and substantially as a 
Government officer or employee, through decision, approval, disapproval, 
recommendation, the rendering of advice, investigation, or otherwise, in 
a judicial or other proceeding, application, request for a ruling or 
other determination, contract, claim, controversy, charge, accusation, 
arrest, or other particular matter in which, to his or her knowledge, he 
or she, his or her spouse, minor child, partner, organization in which 
he or she is serving as officer, director, trustee, partner, or 
employee, or any person or organization with whom he or she is 
negotiating or has any arrangement concerning prospective employment, 
has a financial interest (18 U.S.C. 208(a)).
    (b) The prohibition in paragraph (a)(7) of this section shall not 
apply if the employee first advises his or her agency head or the 
director of personnel of the nature and circumstances of the particular 
Government matter involved and makes full disclosure of the financial 
interest and receives in advance a written determination made by

[[Page 14]]

the agency head of the director of personnel that the interest is not so 
substantial as to be deemed likely to affect the integrity of the 
services which the Government may expect from the employee. Authority to 
make such written determinations may not be redelegated by the agency 
head or the director of personnel.
    (c) Any holding in a widely held mutual fund or regulated investment 
company which does not specialize in a particular industry or commodity 
and as to which the employee has no managerial control or directorship, 
except where otherwise prohibited by statute or regulation, are exempted 
from the prohibition in paragraph (a)(7) and the requirements of 
paragraph (b) of this section as being too remote or too inconsequential 
to affect the integrity of an employee's services to the Government.
    (d) The following prohibitions apply only to a regular employee:
    (1) He or she may not, except in the discharge of his or her 
official duties, represent anyone else before a court or Government 
agency in a matter in which the United States is a party or has an 
interest (18 U.S.C. 203 and 205); or
    (2) He or she may not receive any salary or supplementation of his 
or her Government salary, from a private source as compensation for his 
or her services to the Government (18 U.S.C. 209).
    (e) The following prohibitions apply only to a special Government 
employee:
    (1) He or she may not, except in the discharge of his or her 
official duties, represent anyone else before a court or Government 
agency in a matter in which the United States is a party or has an 
interest and in which he or she has at any time participated personally 
and substantially for the Government (18 U.S.C. 203 and 205); or
    (2) He or she may not, except in the discharge of his or her 
official duties represent anyone else in a matter pending before the 
Government agency he or she serves unless he or she has served there no 
more than 60 days during the past 365 days (18 U.S.C. 203 and 205).
    (f) This section does not preclude an employee from:
    (1) Acting without compensation, and if not inconsistent with the 
faithful performance of his or her duties, as agent or attorney for any 
person who is the subject of disciplinary, loyalty, or other personnel 
administration proceedings in connection with those proceedings;
    (2) Giving testimony under oath or making statements required to be 
made under penalty for perjury or contempt; or
    (3) Having a financial interest or engaging in financial 
transactions to the same extent as a private citizen not employed by the 
Government, provided it is not prohibited by law, Executive Order 11222, 
5 CFR part 735, this part, or Agency regulations supplementing this 
part.
    (g) This section does not purport to paraphrase the restrictions 
contained in 18 U.S.C., Chapter 11. The omission of a restriction in no 
way relieves an employee of the legal effect of such restriction.

[43 FR 43431, Sept. 26, 1978, as amended at 46 FR 47209, Sept. 25, 1981]



Sec. 0.735-15  Attendance and leave.

    (a) Employees must observe designated duty hours and be punctual in 
reporting for work and returning from lunch periods. Tardiness can 
result in employees being placed in a nonpay status or in a charge 
against annual or compensatory leave in multiples of 15 minutes or 1 
hour as appropriate, and/or subject to disciplinary action.
    (b) Employees normally must obtain advance authorization for absence 
from duty. Approval of leave is a discretionary matter reserved to the 
supervisor. The taking of leave is not an absolute right afforded the 
employee but is conditioned on the needs of the Service. Where absence 
from duty results from illness or an emergency, employees are required 
to notify their supervisor or other appropriate person as soon as 
possible. When an employee fails to properly notify his or her 
supervisor, absence may be charged as an unauthorized absence. It also 
may result in appropriate disciplinary action.

[[Page 15]]

    (c) Sick leave is to be used by employees only when they are 
incapacitated from duty because of sickness or injury, when they need to 
obtain medical, dental, or optical examination or treatment, when they 
are subject to quarantine imposed by local health authorities, or when 
they are required to give care to a member of their immediate family who 
has a contagious disease.



Sec. 0.735-16  Use of Government property, facilities, and services.

    (a) Employees are prohibited from directly or indirectly using, or 
allowing the use of, Government property, facilities, or services of any 
kind, including those leased to or otherwise paid for by the Government, 
for other than officially approved activities. Employees have a positive 
duty to conserve and protect Government property.
    (b) Personal property offered for sale by the Department may be 
purchased by employees only when the sale of such property is based upon 
competitive bids: Provided, That no purchase may be made, either 
directly or indirectly, by the employee who was formerly accountable for 
the property, who formerly used the property, or who was in any way 
connected with its condemnation, declaration as excess, or sale, except:
    (1) Surplus perishable products may be sold to employees at the best 
price obtainable in quantities not exceeding the needs of their 
immediate household;
    (2) Special clothing and other articles or personal equipment 
purchased for the exclusive use of and fitted to an individual employee 
may, when not otherwise usable by the Department and in all respects 
surplus to the needs of the Government, be sold to such employees at the 
best price obtainable in the event of his or her separation from the 
Service or permanent assignment to duties not requiring such clothing or 
equipment.



Sec. 0.735-17  Use of vehicles.

    (a) An employee who willfully uses or authorizes the use of a 
Government-owned or leased passenger motor vehicle or aircraft for other 
than official purposes shall be suspended for 1 month or removed from 
office in accordance with 31 U.S.C. 638a(c)(2).
    (b) An employee who willfully uses or authorizes the use of any 
Government-owned or leased conveyance whether passenger carrying or not, 
for other than official purposes, is subject to disciplinary action up 
to and including removal.
    (c) An employee shall not store Government-owned or leased motor 
vehicles in or near his or her private residence or use such vehicles 
for transportation between his or her residence and place of employment 
unless such storage or use shall have been specifically authorized by 
the Secretary or another official to whom such authority has been 
delegated.



Sec. 0.735-18  Indebtedness.

    (a) Employees who fail to pay their just financial obligations in a 
timely and proper manner will be subject to such disciplinary action as 
the agency head or his or her designee considers appropriate. For the 
purpose of this section, ``just financial obligations'' are those 
acknowledged by the employee, reduced to judgment by a court, or 
confirmed by a final administrative determination of a unit of the 
Federal, State, or local government. A ``proper and timely manner'' 
means in a manner which the agency head or his or her designee 
determines does not, under the circumstances, reflect adversely on the 
Department as his or her employer.
    (b) In cases where a legal judgment exists against the employee, the 
employee concerned will be required to satisfy the judgment within a 
reasonable period of time unless he or she can arrange to have it 
modified or set aside.
    (c) When an employee is the subject of a complaint for failure to 
pay taxes or other debts that are the subject of a final administrative 
determination by a unit of the Federal, State, or local government, he 
or she shall be advised of the complaint and told to make payment 
arrangements satisfactory with that unit of government.
    (d) When an employee is the subject of a letter of complaint from a 
creditor who does not hold a legal judgment, the agency head or his or 
her designee

[[Page 16]]

shall determine whether the employee acknowledges the debt and call the 
provisions of this section to the employee's attention. Subsequent 
action, if any, will be taken in accord with the facts of the case and 
the provisions of this section.



Sec. 0.735-19  Political activity.

    A Federal employee other than an officer exempted by 5 U.S.C. 
7324(d) may not take an active part in political management or in a 
political campaign or run for elective political office except when 
authorized by Department or Civil Service Commission regulations. He or 
she may not solicit or receive any assessment, subscription, or 
contribution for any political purpose from an officer or employee of 
the Government. Whatever the employee may not do directly, he or she may 
not do indirectly or through an agent, officer, or employee chosen by 
him or her or subject to his or her control.



Sec. 0.735-20  Use, protection, and release of information.

    (a) An employee is prohibited from using or giving information 
acquired through his or her official position, prior to its release to 
the general public, to advance the interests of himself or herself, his 
or her family, associates, or friends, or any other person or 
enterprise.
    (b) Classified defense information and restricted information shall 
be safeguarded and released in accordance with the provisions of 
applicable directives, statutes, or regulations. For further information 
consult the USDA Regulations for Classification, Declassification, and 
Safeguarding Classified Information.
    (c) ``For Official Use Only'' material shall not be examined by, 
released to, nor discussed with any person except in the performance of 
official duties or as required by the Freedom of Information Act.
    (d) Unauthorized, premature disclosure of information which might 
influence or affect the market value of any product of the soil grown 
within the United States, or of information which by law or rule of the 
Department is required to be withheld from publication until a fixed 
time is punishable by fine and imprisonment unless such release is 
determined to be required by the Freedom of Information Act.
    (e) The subject matter of public hearings with respect to the 
proposed issuance of an order, regulation, or other administrative 
determination, after the close of the hearing and prior to issuance by 
the Secretary of the order, regulation, or other administrative 
determination shall not be discussed with any interested person or with 
any representative of an interested person without written permission of 
the Secretary. However, this shall not preclude an employee who has been 
assigned to or has supervision over a proceeding from discussing with 
interested persons or their representatives matters of procedure in 
connection with such proceeding.
    (f) Official mail shall be safeguarded from indiscriminate 
publication. It is prohibited to use or to quote in whole or in part any 
letters from the White House to this Department.
    (g) Information concerning inventions and patent applications may be 
revealed only for official purposes. Employee inventors and employees 
who handle or obtain information concerning inventions of employee 
inventors or concerning any other inventions in which the Department may 
have an interest shall not reveal such information prior to the issuance 
of the patent, except for official purposes, unless such release is 
determined to be required by the Freedom of Information Act.
    (h) Lists of names of farmers, business people, or employees that 
may be available in the Department shall not be released to anyone 
unless it is determined that such release is required by the Freedom of 
Information Act. Lists of manufacturers, dealers, breeders, etc., should 
not be furnished so as to imply that the Department endorses certain 
firms to the possible detriment of others, or that the lists necessarily 
include all dealers of a certain line.



Sec. 0.735-21  Activities with regard to farm organizations.

    (a) Department employees shall refrain from participating actively 
in meetings and in other activities concerned with the establishment of 
general or specialized farm organizations,

[[Page 17]]

or with recruiting members for existing organizations such as the 
National Grange, the American Farm Bureau Federation, the National 
Farmers Organization, the Farmers' Union, the National Association of 
Soil Conservation Districts, the National Rural Electric Cooperative 
Association, the National Council of Farmer Cooperatives and Breed and 
Commodity Organizations. This is a necessary corollary of the equally 
long-established policy of the Department that it shall deal fairly with 
all organizations and deal with each upon the same basis. As a 
continuation of this policy, it should be understood by employees of the 
Department that it is not permissible for any of them to:
    (1) Participate in establishing any general or specialized farm 
organization;
    (2) Act as organizer for any such organization, or hold any other 
functional office therein;
    (3) Act as financial or business agent for any such organization;
    (4) Participate in any way in any membership campaign or other 
activity designed to recruit members for any such organization;
    (5) Accept the use of free office space or contributions for salary 
or traveling expense from any such organization;
    (6) Advocate that any particular general or specialized organization 
of farmers is better adapted for carrying out the work of this 
Department than any individual citizen, group of citizens, or 
organizations;
    (7) Advocate that the responsibilities of any Agency of this 
Department or any other Federal agency should be carried out through any 
particular general or specialized organization of farmers;
    (8) Advocate or recommend that any State or local agency should 
carry out its responsibilities through any particular general or 
specialized organization of farmers; or
    (9) Approve contracts for the Department with any cooperative or 
other commercial organization whenever such cooperative or other 
commercial organization deducts or checks off from payments due farmers, 
membership dues of such farmers to any general or specialized 
organization of farmers, except as it is determined that current 
authorization for such deduction has been knowingly filed by such 
individual farmers with the cooperative or other commercial 
organization.
    (b) The restrictions set forth in paragraph (a) of this section do 
not:
    (1) Apply to members of an FmHA County Committee;
    (2) Apply to specialized organizations of farmers such as cow 
testing associations and similar groups; or
    (3) Prohibit employees from participating in the organization of 
groups that are needed in carrying out federally authorized programs, 
for example, an REA cooperative and similar groups determined by the 
appropriate Agency Head to be essential in effectuating federally 
authorized programs.
    (c) If any violations of any of the provisions of this section 
should occur, full information with reference thereto should at once be 
submitted to the Office of the Inspector General by the Head of the 
Agency in which the person violating any of these provisions is 
employed.

[43 FR 43431, Sept. 26, 1978, as amended at 46 FR 22559, Apr. 20, 1981]



Sec. 0.735-22  Prohibitions upon employees serving abroad.

    An employee on foreign assignment may not:
    (a) Violate Department of State regulations governing the post to 
which he or she is assigned;
    (b) Receive a ``profit'' from the sale of his or her personal car or 
other property when such ``profit'' accrues from import privileges 
granted him or her by reason of his or her official status. ``Profit'' 
for the purposes of this paragraph is as defined in the Department of 
State regulations or directives governing the post of assignment;
    (c) Engage in political activities in the country of assignment;
    (d) Violate the laws of the country in which he or she is assigned;
    (e) Have an interest in any business enterprise or engage in any 
profession in any country to which assigned; or
    (f) Speculate in any foreign real estate, bonds, shares, stocks, and 
currencies.

[[Page 18]]



Sec. 0.735-23  Miscellaneous provisions.

    (a) Any money, property, or other thing of value received by or 
coming into custody of an employee in connection with the discharge of 
his or her duties must be accounted for, deposited or otherwise disposed 
of in accordance with established procedures.
    (b) Employees are required under Sec. 5.3 of Civil Service Rule V (5 
CFR 5.3) to give the Civil Service Commission and its authorized 
representatives all information and testimony in regard to matters 
arising under laws, rules, and regulations administered by the 
Commission.
    (c) Employees are obligated to give information to authorized 
representatives of the Department when called upon if the inquiry 
relates to official matters and the information is obtained in the 
course of employment or as a result of relationships incident to such 
employment. This shall include the furnishing of a signed statement. 
Failure to respond to requests for information or to appear as a witness 
in an official proceeding may result in disciplinary penalty. (Nothing 
herein shall be deemed to infringe upon an employee's right to invoke 
the protection of the Fifth Amendment to the Constitution with respect 
to self-incrimination.)
    (d) Agency officials have the authority to transfer and reassign 
employees within their respective jurisdictions whenever necessary to 
meet operational needs. Employees have an obligation to the Department 
to accept transfers and changes in assignment. Failure to accept a 
transfer or reassignment may result in the separation of the employee.
    (e) Employees shall not purchase products or receive services 
directly or indirectly from persons, firms, or establishments for which 
such employees conduct inspection, grading, or similar regulatory 
activities without express approval. Each Agency shall establish the 
approval level and shall advise each employee. Agencies shall utilize 
the following criteria in granting such approvals:
    (1) Proximity of the employee to other retail outlets;
    (2) The number of retail outlets in the commuting area;
    (3) Whether the outlet is a sole source;
    (4) Whether the firm is selling the item or service at the 
prevailing price to the general public as well as the employee; and
    (5) Whether the outlet is open to the general public.



Sec. 0.735-24  Miscellaneous statutory provisions.

    (a) Each employee has a positive duty to acquaint himself or herself 
with each statute that relates to his or her ethical and other conduct 
as an employee of his or her Agency, of the Department, and of the 
Government. The attention of each employee is directed to the following 
statutory provisions:
    (1) House Concurrent Resolution 175, 85th Congress, second session, 
72 Stat. B12, the ``Code of Ethics for Government Service;''
    (2) Chapter 11 of Title 18, United States Code, relating to bribery, 
graft, and conflicts-of-interest;
    (3) The prohibition against wrongful disclosure of individually 
identifiable informations or wrongful maintenance of a system of records 
(5 U.S.C. 552a(i));
    (4) The prohibition against a public official appointing or 
promoting a relative, or advocating such an appointment or promotion (5 
U.S.C. 3110);
    (5) The prohibitions against disloyalty and striking (Executive 
Order 10450, as amended, 5 U.S.C. 7311, 18 U.S.C. 1918);
    (6) The prohibition against the employment of a person convicted of 
a felony for participating in or promoting a riot or civil disorder (5 
U.S.C. 7313);
    (7) The prohibitions against proscribed political activities (5 
U.S.C. 7324, and 18 U.S.C. 602, 603, 607, and 608);
    (8) The provisions relating to the receipt and disposition of 
foreign gifts and decorations ( 5 U.S.C. 7342);
    (9) The prohibition against gifts to superiors by employees (5 
U.S.C. 7351);
    (10) The provision relating to the habitual use of intoxicants to 
excess (5 U.S.C. 7352);
    (11) The prohibition against a person licensed or authorized to 
perform any official function under the U.S. Grain Standards Act, or 
employed by the Department to carry out the provisions of

[[Page 19]]

the Grain Standards Act being financially or otherwise interested in an 
entity owning or operating a grain elevator or warehouse or engaging in 
the merchandising of grain, or be employed by or accept gratuities from 
any such entity (7 U.S.C. 87(a));
    (12) The prohibition against the unauthorized release of 
information, in the Packers and Stockyards Act (7 U.S.C. 222);
    (13) The prohibition against the release of information in an 
employee's possession concerning cotton standards, estimates, tests, and 
analyses unless authorized by the Secretary (7 U.S.C. 472);
    (14) The prohibitions against the release of information acquired 
from parties to any marketing agreement, and handlers subject to 
marketing agreement orders, except as authorized by the Secretary for 
the purposes of suit or administrative hearings (7 U.S.C. 608d(2));
    (15) The prohibition against persons administering activities 
concerned with cotton option contracts and commodity benefits as 
provided by the Agricultural Adjustment Act, speculating in agricultural 
commodities or products to which such contracts or benefits apply, or in 
contracts relating thereto, or in the stock or memberships interest of 
any association or corporation handling such commodities or products (7 
U.S.C. 610(g));
    (16) Limitations on the use or availability of information furnished 
in connection with marketing agreements and orders (7 U.S.C. 610(i));
    (17) The availability of information furnished in connection with 
marketing agreements and orders, and applicable to marketing agreements 
for anti-hog-cholera serum and hog-cholera virus is restricted (7 U.S.C. 
855);
    (18) Information furnished in connection with collection of peanut 
statistics shall be used only for statistical purposes for which 
supplied. No publication shall be made where the data furnished by any 
establishment can be identified (7 U.S.C. 955);
    (19) Information furnished in connection with the establishment and 
adjustment of farm marketing quotas shall be disclosed only as 
authorized by the Secretary for the purpose of suit or administrative 
hearing (7 U.S.C. 1373(c));
    (20) The prohibition against an officer or employee being the 
beneficiary of or receiving any fee, commission or gift for or in 
connection with any transaction or business under the Consolidated Farm 
and Rural Development Act, other than such salary, fee or compensation 
as he or she may receive as an officer or employee. In addition, members 
of an FmHA County Committee are prohibited from making any certification 
with respect to a loan to purchase any land in which they or any person 
related to them have any financial interest (7 U.S.C. 1986);
    (21) The prohibition against unauthorized release of information 
relating to the production and marketing of cotton (7 U.S.C. 2105(c));
    (22) The prohibition against unauthorized release of information 
relating to plant variety protection (7 U.S.C. 2426);
    (23) The prohibition against unauthorized release of information 
relating to the production and marketing of eggs (7 U.S.C. 2706(c));
    (24) The prohibition against the unauthorized prediction as to 
cotton prices in a Governmental publication (12 U.S.C. 1141j(d));
    (25) The prohibition against the making of false statements in 
connection with activities of the Commodity Credit Corporation or 
embezzlement or conversion of anything of value belonging or pledged to 
the Corporation, or conspiring to commit such acts (15 U.S.C. 714m);
    (26) The prohibition against the acceptance of any fee, gift, or 
other consideration for compromise, adjustment, or cancellation of farm 
indebtedness (18 U.S.C. 217);
    (27) The prohibition against an employee acting as an agent of a 
foreign principal registered under the Foreign Agents Registration Act 
(18 U.S.C. 219);
    (28) The prohibition against unauthorized use of documents relating 
to claims from or by the Government (18 U.S.C. 285);
    (29) The prohibition against an employee contracting with a Member 
of Congress (18 U.S.C. 432);

[[Page 20]]

    (30) The prohibition against paying a larger sum than appropriated 
for erection, repair, or furnishing of any public building or 
improvement thereof (18 U.S.C. 435);
    (31) The prohibition against contracting for convict labor (18 
U.S.C. 436);
    (32) The prohibition against counterfeiting and forging 
transportation requests (18 U.S.C. 508);
    (33) The prohibition against acceptance of excessive honorariums (18 
U.S.C. 616 repealed, now 2 U.S.C. 441i);
    (34) The prohibition against embezzlement of Government money or 
property (18 U.S.C. 641);
    (35) The prohibition against failing to account for public money (18 
U.S.C. 643);
    (36) The prohibition against misuse of public funds by custodian (18 
U.S.C. 648);
    (37) The prohibition against custodian failing to deposit money in 
his or her possession (18 U.S.C. 649);
    (38) The prohibition against disbursing officers falsely certifying 
full payment (18 U.S.C. 651);
    (39) The prohibition against disbursing officers paying less than 
lawful amount (18 U.S.C. 652);
    (40) The prohibition against disbursing officers misusing public 
funds (18 U.S.C. 653);
    (41) The prohibition against embezzlement of the money or property 
of another person in the possession of an employee by reason of his or 
her employment (18 U.S.C. 654);
    (42) The prohibition against the embezzlement of money or property 
of the Federal Crop Insurance Corporation and the Farmers Home 
Administration, and of pledged or entrusted property (18 U.S.C. 657);
    (43) The prohibition against the conversion of property mortgaged or 
pledged to the Farmers Home Administration and the Federal Crop 
Insurance Corporation, with intent to defraud (18 U.S.C. 658);
    (44) The prohibitions against the disclosure of classified 
information (18 U.S.C. 798, 50 U.S.C. 783);
    (45) The prohibition against extortion by Government employees (18 
U.S.C. 872);
    (46) The prohibition against fraud or false statements in a 
Government matter (18 U.S.C. 1001);
    (47) The prohibition against the making of false entries, or 
participation in any benefit through any transaction in connection with 
Departmental activities concerned with agricultural loans (18 U.S.C. 
1006);
    (48) The prohibition against the making of false statements or 
reports, or wilfully overvaluing land, property or security to influence 
action in connection with agricultural loans (18 U.S.C. 1014);
    (49) The prohibition against depredation of Government property (18 
U.S.C. 1361);
    (50) The prohibition against the misuse of the franking privilege 
(18 U.S.C. 1719);
    (51) The prohibition against the wilful disclosure of official 
information which might influence or affect the market value of crops 
prior to authorized publication. An employee acquiring by reason of his 
or her employment, information as to the market value of agricultural 
crops, which information is required to be withheld, is prohibited from 
speculating in such product (18 U.S.C. 1902);
    (52) The prohibition against the disclosure of confidential 
information (18 U.S.C. 1905);
    (53) The prohibition against speculation in agricultural commodities 
to which the Federal Crop Insurance Act applies or to contracts relating 
thereto, or stock or membership interests of corporations or 
associations handling such commodities by any person administering such 
law (18 U.S.C. 1903);
    (54) The prohibition against lobbying with appropriated funds (18 
U.S.C. 1913);
    (55) The prohibition against the use of deceit in an examination or 
personnel action in connection with Government employment (18 U.S.C. 
1917);
    (56) The prohibition against mutilating or destroying a public 
record (18 U.S.C. 2071);
    (57) The prohibition against the compilation of issuance of false 
crop reports (18 U.S.C. 2072);
    (58) The prohibition against employee making false or fictitious 
entry or

[[Page 21]]

record in a matter related to his or her duties (18 U.S.C. 2073);
    (59) The prohibition against any person using to his or her own 
advantage or improperly revealing information concerning trade secrets 
acquired under the Poultry Products Inspection Act (21 U.S.C. 458);
    (60) The prohibition against the acceptance by an employee of money 
or other things of value given with intent to influence a decision in 
connection with the performance of duties under the Federal Meat 
Inspection Act, or when received from a person or firm engaged in 
commerce given for any purpose whatever (21 U.S.C. 622);
    (61) The tax imposed on certain employees (e.g., Presidential 
appointees, employees excepted under Schedule C, employees in GS-16 or 
above or a comparable pay level) who knowingly engage in self-dealing 
with a private foundation (26 U.S.C. 4941, 4946). ``Self-dealing'' is 
defined in the statute to include certain transactions involving an 
employee's receipt of pay, a loan, or reimbursement for travel or other 
expenses from, or his or her sale to or purchase of property from, a 
private foundation;
    (62) The prohibition against any employee subject to the Surface 
Mining Control and Reclamation Act from owning any direct or indirect 
financial, real property, employment and/or creditor interests in an 
underground or surface coal-mining operation (30 U.S.C. 1201);
    (63) The prohibition against false claims (31 U.S.C. 231);
    (64) The prohibition against the misuse of a Government vehicle (31 
U.S.C. 638a);
    (65) The prohibition against expenditure or obligation in excess of 
amount apportioned or appropriation available (31 U.S.C. 665); and
    (66) The prohibition against acceptance of voluntary services (31 
U.S.C. 665).
    (67) The prohibition against failure to file or the filing of a 
false financial disclosure report (section 204(a), Pub. L. 95-521; 5 
U.S.C. App.);
    (68) The prohibitions against prohibited personnel practices (5 
U.S.C. 2302);
    (69) The prohibition against the use of information obtained in the 
course of employment to speculate or to aid another in speculating on 
any commodity exchange (50 U.S.C. App. 2160 (f)).
    (b) This section does not purport to enumerate or paraphrase all 
statutory restrictions imposed on employees. The omission of a 
restriction in no way relieves an employee of the legal effect of such 
restriction.

[43 FR 43431, Sept. 26, 1978, as amended at 46 FR 22354, Apr. 17, 1981]



       Subpart C--Statements of Employment and Financial Interests



Sec. 0.735-31  Employees required to submit statements under the Executive order.

    Except as provided in Sec. 0.735-32, the following employees shall 
submit a statement of employment and financial interests on USDA Form 
AD-392 in accordance with this part:
    (a) Employees classified at GS-13 through 15 under 5 U.S.C. 5332, or 
at a comparable pay level under other authority who are in positions the 
basic duties and responsibilities of which require the incumbent to 
exercise judgment in making a Government decision or in taking 
Government action on contracting or procurement, administering or 
monitoring grants or subsidies, regulating or auditing private or other 
non-Federal enterprise, or other activities where the decision or action 
has an economic impact on the interests of any non-Federal enterprise;
    (b) Employees classified at GS-13 through 15 under 5 U.S.C. 5332, or 
a comparable pay level under other authority, who are in positions which 
the Agency has determined have duties and responsibilities which require 
that the incumbents report their employment and financial interests in 
order to avoid involvement in a possible conflict-of-interest situation 
and carry out the purpose of law, Executive Order, part 735 of the 
Office of Personnel Management's regulations, this part, and applicable 
Agency regulations;
    (c) Employees classified below GS-13 under 5 U.S.C. 5332, or at a 
comparable pay level under other authority, where the Agency has 
determined that they are in positions which otherwise meet the criteria 
in paragraphs (a) and (b) of this section, and that statements from

[[Page 22]]

them are essential to protect the integrity of the Government and avoid 
employee involvement in a possible conflict-of-interest situation, 
provided such determination has been approved in writing by the Office 
of Personnel Management; and
    (d) All employees regardless of grade, pay level or type of 
appointment who perform any function or duty under the Surface Mining 
Control and Reclamation Act of 1977 (Pub. L. 95-87) unless he or she 
files a financial disclosure report under the provisions of the Ethics 
in Government Act of 1978 (see Sec. 0.735-32(a)).
    (e) An employee who refuses to file a statement for reasons other 
than that the duties and responsibilities of the position do not come 
within the criteria for reporting as set forth in this part, or who 
refuses to file after a final determination that the duties and 
responsibilities of the position do come within the criteria, will be 
subject to appropriate disciplinary action.

[47 FR 12608, Mar. 24, 1982]



Sec. 0.735-32  Exceptions.

    (a) Employees covered under Sec. 0.735-44 are not required to file 
employment and financial interest statements under Sec. 0.735-31.
    (b) Employees in positions that meet the criteria in Sec. 0.735-
31(a) may be excluded from the reporting requirement when the Department 
Counselor determines that:
    (1) The duties of a position are such that the likelihood of the 
incumbent's involvement in a conflict-of-interest situation is remote, 
or
    (2) The duties of a position are at such a level of responsibility 
that the submission of a statement of employment and financial interests 
is not necessary because of the degree of supervision and review over 
the incumbent or the inconsequential effect on the integrity of the 
Government.
    (c) Exceptions will be considered by the Department Counselor at the 
request of the Agency Head.
    (d) An employee shall be afforded the opportunity for a review, 
through the Departmental grievance procedure as described in chapter 771 
of the Department Personnel Manual, of the designation of his or her 
position as one requiring the submission of a statement of employment 
and financial interests.

[47 FR 12608, Mar. 24, 1982]



Sec. 0.735-33  Identification of employees required to submit statements.

    Agency Heads are responsible for identifying those employees who are 
required to file statements of outside employment and financial 
interests under Sec. 0.735-31. For control and reporting purposes, those 
employees required to submit statements shall be specifically identified 
in the personnel records system.



Sec. 0.735-34  Time and place for submission of employees' statements.

    (a) When a decision is reached to make an appointment to a position 
requiring submission of a statement of employment and financial 
interests, the prospective employee should be informed.
    (b) Employees covered under Sec. 0.735-31 will submit statements to 
the Agency Head or to an employee designated by him or her.
    (c) Agencies are responsible for assuring that persons subject to 
the reporting requirements are notified of those requirements and are 
provided the necessary forms and instructions.

[47 FR 12608, Mar. 24, 1982]



Sec. 0.735-35  Supplementary statements.

    Changes in, or additions to, the information contained in an 
employee's statement of employment and financial interests shall be 
reported in an annual supplementary statement as of March 31 and 
submitted no later than April 30 of each year. If no changes or 
additions occur, a report so stating is required. Notwithstanding the 
filing of the annual statement required by this section, each employee 
shall at all times avoid acquiring a financial interest or taking an 
action that could result in violation of the conflicts-of-interests 
provisions of section 208 of title 18, United States Code, or 
Sec. 0.735-14.

[[Page 23]]



Sec. 0.735-36  Types of interests to be reported.

    The employment and financial interests statements shall include the 
following:
    (a) A list of the names of all corporations, companies, firms, or 
other business enterprises, partnerships, nonprofit organizations and 
educational or other institutions with which the employee is connected 
as an employee, officer, owner, director, trustee, member, partner, 
advisor, or consultant, or in which he or she has any continuing 
financial interest through a pension or retirement plan, shared income 
or otherwise as a result of any current or prior employment or business 
or professional associations, or in which he or she has any financial or 
beneficial interest through the ownership of stock, stock options, 
bonds, securities or other arrangements including trusts. The dollar 
value of each financial interest must be listed on the financial 
statement. Shares in credit unions, building and loan associations, 
social or religious organizations, or deposits in savings and loan 
associations and banks, and interests exempted under Sec. 0.735-14(c) 
need not be reported.
    (b) A list of the names of his or her creditors other than those to 
whom he or she may be indebted by reason of mortgage on property which 
he or she occupies as a personal residence or to whom he or she may be 
indebted for current and ordinary household and living expenses such as 
household furnishings, automobile, education, vacation, and similar 
expenses. Indebtedness on owner-occupied farms must be reported.
    (c) A list of interests in real property or rights in land and 
minerals such as farmland, timberland and/or undeveloped land with their 
value, total acreage, total number of farm animals, types of crops, 
types of farm animals, number of acres of each crop and/or number of 
each farm animal, average annual income derived from sales of crops and/
or farm animals, other than property which the employee occupies as a 
personal residence. Owner-occupied farms must be listed. Property 
acquired for the personal use of the employee and members of his or her 
family, such as beach lots and cemetary lots need not be listed.
    (d) The interests and obligations as listed above of a spouse, minor 
child, or relative who are full-time residents of the employee's 
household.



Sec. 0.735-37  Information prohibited.

    The regulations in this part do not require an employee to submit 
any information relating to the employee's connection with, or interest 
in, a union, professional society or a charitable, religious, social, 
fraternal, recreational, public service, civic, or political 
organization or similar organization not conducted as a business 
enterprise. For the purpose of this section, educational and other 
institutions doing research and development or related work involving 
grants of money from or contracts with the Government are deemed 
``business enterprises'' and are required to be included in employee's 
statement of employment and financial interests.



Sec. 0.735-38  Interests of employee's relatives.

    (a) The financial interest of a spouse, minor child, or other member 
of an employee's immediate household shall be reported to the same 
extent as the financial interest of the reporting employee. An ``other 
member'' of the immediate household means a relative who is a full-time 
resident of the employee's household (Sec. 0.735-2(i)).
    (b) The employment of such persons need not be reported unless such 
person is engaged in an activity, which if held by the employee, would 
place him or her in a conflict or apparent conflict-of-interest 
situation.



Sec. 0.735-39  Information not known by employee.

    If any information required to be included on a statement of 
employment and financial interests, or supplement thereto, including 
holdings placed in trusts, is not known to the employee but is known to 
another person, the employee shall ask such person to furnish the 
information in his or her behalf.

[[Page 24]]



Sec. 0.735-40  Effect of employee's statement.

    The statements of employment and financial interests and 
supplementary statements required under this part are in addition to, 
and not in substitution for, or in derogation of, any similar 
requirement imposed by law, the Executive order, or regulation. The 
submission of a statement or supplementary statement by an employee does 
not permit him or her or any other person to participate in a matter in 
which his or her or the other person's participation is prohibited by 
law, the Executive order, or the regulations in this part.



Sec. 0.735-41  Specific provisions for special Government employees.

    (a) Except as provided in paragraph (b) of this section, each 
special Government employee shall submit a statement of employment and 
financial interests on USDA Form AD-392A which reports:
    (1) All other employment; and
    (2) The financial interests of the special Government employee which 
relate either directly or indirectly to the duties and responsibilities 
of the special Government employee with the Department.
    (b) An Agency Head may waive the requirements in paragraph (a) of 
this section for the submission of a statement of employment and 
financial interests in the case of a special Government employee who is 
not a consultant or expert when the Agency Head finds that the duties of 
the position held by that special Government employee are of a nature 
and at such a level of responsibility that the submission of the 
statement by the incumbent is not necessary to protect the integrity of 
the Government. For the purpose of this paragraph, ``consultant'' and 
``expert'' have the meanings given those terms by Chapter 304 of the 
Federal Personnel Manual but do not include:
    (1) A physician, dentist, or allied medical specialist whose 
services are procured to provide care and service to patients; or
    (2) A veterinarian whose services are procured to provide care and 
service to animals.
    (c) A statement of employment and financial interests required to be 
submitted under this section shall be submitted to the Head of the 
Agency in which the special Government employee is to serve not later 
than the time of employment. Each special Government employee shall keep 
his or her statement of employment and financial interests current 
throughout his or her employment with the Department by the submission 
of supplementary statements.



Sec. 0.735-42  Review of statements and determination of conflicting interests.

    (a) The Assistant Secretary for Administration is responsible for 
assuring that all personnel required to file are properly identified, 
all statements are submitted timely and that Agency Heads identify 
review officials who possess the knowledge and experience to be able to 
properly evaluate the listed interest. This pertains to filings under 
both Executive Order 11222 and the Surface Mining Control and 
Reclamation Act of 1977. All Agencies shall report to the Assistant 
Secretary for Administration by May 30 each year the number of 
statements submitted, the number that have been closed favorably and the 
number that have not been closed. In the latter instance, the Assistant 
Secretary for Administration shall be advised the reasons for the cases 
remaining open and shall be advised on a monthly basis of the status of 
all open cases.
    (b)(1) The Director of Personnel is responsible for the review of, 
and determination on, those statements submitted directly to him or her 
pursuant to Sec. 0.735-34(b).
    (2) Agency Heads will be responsible for annually identifying 
employees required to file employment and financial statements, for 
collecting and initially reviewing the statements, for identifying and 
designating those employment and financial interests that are not in 
conflict, and for signing and dating the statements.
    (c) Agency Heads are responsible for the review of, and 
determination on, those statements submitted to an Agency official. 
Original and supplementary statements shall be reviewed and 
determinations made within 2 months of receipt of such statements.

[[Page 25]]

Disciplinary action will be taken against those who falsely certify that 
the employment and financial interests statements have been received and 
reviewed. This responsibility may be delegated, subject to the following 
restrictions:
    (1) Responsibility for review and determination may be delegated 
only to a responsible Agency official in the national office, who the 
Agency Head determines has sufficient experience, judgment, and 
understanding of the conflict-of-interest problem to properly carry out 
such responsibilities. The initial processing and receiving of the 
statements can be delegated to the field facilities where the person is 
employed. If the statement, when received, shows any holding of any 
sort, it shall be referred for review to the official identified by the 
Agency Head as having the responsibility, with a statement indicating 
whether the holding does, does not, or appears to have some relationship 
to the duties the employee performs.
    (2) Responsibility for final determinations in cases involving 
substantial conflict questions may be delegated only to Associate, 
Deputy, and Assistant Agency Heads. The Agency Head shall set criteria 
identifying the types of cases which must be referred to such officials 
for final determination.
    (d) Delegations of review and determination responsibility must be 
in writing from the Director of Personnel or the Agency Head, as 
appropriate.
    (e) The Director of Personnel shall issue general guidelines 
covering the review of statements, recognizing possible conflicts or the 
appearance thereof, obtaining additional information, resolving conflict 
situations, documentation, and remedial action. Agencies shall 
supplement these with more specific guidelines applicable to the 
particular Agency. A copy of both the general and the specific 
guidelines shall be furnished to each employee to whom review and 
determination responsibility has been delegated.
    (f) Whenever a question of a conflict or appearance of conflict 
arises, a written determination must be made. The basis of the 
determination must also be documented in writing. The employee must be 
advised in writing of the determination, and, if the determination 
involves a change in duties or disqualification for a particular 
assignment, a copy of the determination should be furnished to the 
employee's immediate supervisor. Where affirmative action by the 
employee is required, a report of his or her compliance shall be 
obtained and made a part of the record.
    (g) If a determination cannot be made at the Agency level, the case 
shall be referred to the Director of Personnel. If the Director of 
Personnel cannot make a determination, he or she shall refer the case to 
the Department Counselor for his or her determination or referral to the 
Secretary for determination. The record shall include copies of all 
pertinent documents and a written statement from each referring official 
setting forth his or her recommendation as to a final determination and 
the reasons therefor.
    (h) Before a final determination requiring any remedial action is 
made, the employee concerned shall be given an opportunity to explain 
the conflict or appearance thereof and to offer any suggestions he or 
she may wish as to how the matter might be resolved. If an employee 
feels that the final determination will cause him or her undue hardship, 
or objects to the decision on other grounds, he or she may request a 
review and modification by forwarding to the Chief, Security and 
Employee Relations Staff, a written statement setting forth all the 
facts and circumstances in support of his or her request and any 
alternative solution which he or she thinks appropriate.
    (i) If the final determination requires positive action on the part 
of the employee, he or she shall take such action as soon as possible 
and advise the determining official when he or she has done so. Failure 
to take a required action within a reasonable time may result in 
disciplinary action.
    (j) Where special circumstances exist, the Director of Personnel may 
grant, in writing, an exception to the requirements of paragraph (c)(1) 
of this section to allow delegation of review and

[[Page 26]]

determination authority to others than national office officials.

[43 FR 43431, Sept. 26, 1978, as amended at 46 FR 22559, Apr. 20, 1981; 
46 FR 47210, Sept. 25, 1981]



Sec. 0.735-43  Protection of employees' statements.

    (a) The statements of employment and financial interests, and 
supplements thereto, required by or pursuant to the regulations in this 
part shall be held in confidence and afforded adequate physical 
security. No information as to the contents thereof shall be disclosed 
except to the head of the employing agency and such other persons as may 
be designated custodians or reviewers of such reports unless specific 
authorization has been obtained from the Department Counselor. An 
official, custodian, reviewer, or other employee having possession of a 
statement of employment and financial interests shall not allow access 
to, or allow information to be disclosed from, the statement except to 
carry out the purpose of this subpart C.
    (b) Information from a statement of employment and financial 
interests shall not be disclosed outside of the Department except as the 
Civil Service Commission or the Secretary of Agriculture may determine 
for good cause shown.
    (c) Reports shall be separately maintained by the officials 
designate as custodians for such reports and shall not be made a part of 
the official personnel folders.
    (d) Regardless of the means or manner of transmission, when these 
reports leave the physical custody of employees or a designated 
reviewer, they shall be enclosed in a double sealed envelope. The inner 
envelope shall be marked: ``For Official Use Only,'' ``Contains AD-392 
(or AD-392A),'' as appropriate, and ``To Be Opened by Addressee Only.''



Sec. 0.735-44  Financial disclosure under the Ethics in Government Act.

    (a) The following individuals are covered by the financial reporting 
requirements of the Ethics in Government Act of 1978 and shall submit a 
financial disclosure report on Office of Personnel Management Standard 
Form 278 in accordance with this section:
    (1) Members of the Senior Executive Service and other officers or 
employees in the executive branch, including a special Government 
employee as defined in 18 U.S.C. 202, whose position is classified at 
GS-16 or above of the General Schedule prescribed by 5 U.S.C. 5332, or 
the rate of basic pay for which is fixed at a rate equal to or greater 
than the minimum rate of basic pay for GS-16;
    (2) Employees who are administrative law judges appointed pursuant 
to 5 U.S.C. 3105;
    (3) Employees not described in paragraph (a)(2) of this section who 
are in a position in the executive branch which is excepted from the 
competitive service by reason of being of a confidential or policy 
making nature;
    (4) The Designated Agency Ethics Official; and
    (5) Employees on detail to a position normally occupied by an 
individual described in paragraphs (a)(1) through (4) of this section, 
irrespective of the detailed employee's actual grade level or 
compensation, if the detail can reasonably be expected to last for more 
than 60 days in a calendar year.
    (b) Financial disclosure reports required under this section shall 
be submitted to the Designated Agency Ethics Official at USDA (the 
Director of Personnel) or his or her designee. Reports are due as 
follows:
    (1) Within 30 days of assuming a position or office described in 
paragraph (a) of this section--unless the employee has already filed a 
current Standard Form 278 either for a similarly covered position which 
he or she has left within 30 days of assuming the duties of the new one, 
or has filed as a nominee for the position assumed;
    (2) Within 30 days of termination of employment from a position or 
office described in paragraph (a) of this section, unless the employee 
enters a similarly covered position within 30 days of such termination; 
and
    (3) On or before May 15 of each calendar year during the incumbency 
of an employee in a covered position, when he or she has served more 
than 60 days in such position during the previous calendar year.

[[Page 27]]

    (c) Instructions covering the types of information to be provided on 
a Standard Form 278 are included with the form. The basic categories of 
information required are: Income from and interests in property; 
purchases, sales and exchanges; gifts and reimbursements; liabilities; 
positions held; and relations with other employers.
    (d) Financial disclosure reports submitted under the provisions of 
this section shall be reviewed by the Director of Personnel as the 
Designated Agency Ethics Official, or by those individuals delegated 
authority for that purpose as Deputy Ethics Officials (subject to the 
restrictions of 5 CFR 738.204).
    (e) The official responsible for reviewing the disclosure statement 
shall either approve it, or make an initial determination that a 
conflict or appearance thereof exists, or may determine that additional 
information is needed to resolve potential problems. The reporting 
individual shall be afforded the opportunity for written or oral 
response to any initial determinations other than approval, and should a 
final determination of a conflict be made, shall be afforded the 
opportunity for a personal consultation where practicable. If after 
these steps have been taken the reviewing official determines that a 
conflict or appearance of a conflict continues to exist, the reporting 
individual shall be notified in writing of what steps must be taken to 
resolve the problems. Failure to take any required remedial actions will 
result in appropriate disciplinary action against the individual 
involved in accordance with the provisions of 5 CFR 734.604(b)(6).
    (f) Financial disclosure reports filed under the Ethics in 
Government Act of 1978 shall be made available for public inspection 
within 15 days of their receipt within the parameters established in 5 
CFR 734.603.
    (g) The Ethics in Government Act of 1978 provides that the Office of 
Government Ethics, Office of Personnel Management, shall be responsible 
for developing rules and regulations affecting financial disclosure 
procedures under the Act. These regulations are found in 5 CFR part 734. 
Employees with questions concerning this section may consult the 
complete regulations in 5 CFR part 734, ask their servicing personnel 
office, or address their inquiries directly to the Designated Agency 
Ethics Official, Director of Personnel, Room 16-W, U.S. Department of 
Agriculture, Washington, DC 20250.

(5 U.S.C. 301; Title II of Pub. L. 95-521, 92 Stat. 1836, as amended, 5 
U.S.C. app.; E.O. 11222 of May 8, 1965, 30 FR 6469, 3 CFR, 1965 Supp.; 5 
CFR 734.103)

[47 FR 12608, Mar. 24, 1982]



Subpart D--Administrative Enforcement of Restriction on Post-Employment 
                               Activities

    Authority: 18 U.S.C. 207(j).

    Source: 46 FR 47210, Sept. 25, 1981, unless otherwise noted.



Sec. 0.735-51  Purpose.

    The purpose of this subpart is to set forth regulations governing 
administrative enforcement of the prohibitions on post-employment 
activities contained in 18 U.S.C. 207.



Sec. 0.735-52  Notice of violation.

    Whenever there is reasonable cause to believe that a former employee 
has violated the provisions of 18 U.S.C. 207, an investigation and 
referral of the matter to the Department of Justice for possible 
prosecution shall be made in accordance with applicable regulations and 
Department procedures. A copy of such referral shall be provided to the 
Office of Government Ethics. Thereafter any action to be taken by the 
Department shall be coordinated with the Department of Justice unless 
the Department of Justice declines to prosecute.



Sec. 0.735-53  Initiation of administrative action.

    Whenever the Director of Personnel has reasonable cause to believe 
that a former employee of the Department has committed acts which 
violate 18 U.S.C. 207 (a), (b), or (c) he or she shall initiate 
administrative action pursuant to this subpart by notifying such 
employee (hereinafter respondent), in writing that:
    (a) Action is being instituted against him or her pursuant to this 
subpart as a result of allegations of a violation or

[[Page 28]]

violations of 18 U.S.C. 207. The respondent shall be informed of the 
allegations and the basis for them in sufficient detail to prepare an 
adequate defense;
    (b) He or she may request a hearing in writing within 15 working 
days by addressing the request to the Director of Personnel of the 
Department;
    (c) In the absence of such a request, the Director of Personnel 
shall decide the matter on its merits based upon the evidence gathered 
to date; and
    (d) The respondent may elect to supply a written rebuttal to the 
allegations in lieu of requesting a hearing. Such material shall be 
incorporated in the record and reviewed by the Director of Personnel 
prior to reaching a determination on the matter.



Sec. 0.735-54  Hearing officer.

    If the respondent, after receiving notice of action under this 
subpart, requests a hearing, the Secretary shall appoint a hearing 
officer for the matter. The hearing officer shall be an individual who 
has not been involved in any of the events specified in the allegations 
and who did not participate in the investigation of the allegations, or 
the decision to institute the proceeding, or the referral of the matter, 
if any, to the Department of Justice. The hearing officer shall be an 
individual with suitable experience and training to conduct the hearing, 
reach a determination and render an initial decision in an equitable 
manner.



Sec. 0.735-55  Department representative.

    The Director of Personnel shall appoint a Department representative 
(hereinafter petitioner) to present evidence and otherwise participate 
in the hearing.



Sec. 0.735-56  Time, date and place of hearing.

    The hearing shall be held at a time and place specified by the 
hearing officer. The hearing officer shall give due regard in setting a 
hearing date to:
    (a) Allowing the respondent adequate time to prepare a defense 
properly; and
    (b) Providing the respondent an expeditious resolution of 
allegations that may be damaging to his or her reputation.



Sec. 0.735-57  Representation.

    Respondent shall be entitled to appear personally, or to appear 
through or be accompanied by a representative, at the hearing.



Sec. 0.735-58  Rights of parties at hearing.

    Petitioner and respondent shall be entitled to introduce, examine 
and cross examine witnesses, submit evidence, and present oral 
arguments.



Sec. 0.735-59  Oaths and rules of evidence.

    All testimony shall be taken under oath. The hearing officer shall 
conduct the hearing so as to bring out pertinent facts, including the 
production of pertinent documents. Rules of evidence shall not be 
applied strictly, but the hearing officer shall exclude irrelevant or 
unduly repetitious evidence.



Sec. 0.735-60  Transcript.

    The hearing officer shall cause a transcript to be made of the 
hearing and a copy of it shall be made available to petitioner and to 
respondent.



Sec. 0.735-61  Briefs and discovery.

    There shall be no discovery prior to the hearing, nor shall any 
briefs be submitted, absent specific request of the hearing officer.



Sec. 0.735-62  Open hearing.

    All hearings shall be open to the public unless closed for good 
cause by the hearing officer. Such a finding shall be made a part of the 
record by the hearing officer.



Sec. 0.735-63  Ex-parte communications.

    Neither petitioner or respondent, nor any representative thereof, 
shall make any ex-parte communications to the hearing officer concerning 
merits of the allegations against respondent prior to the issuance of 
his or her initial decision.



Sec. 0.735-64  Administrative record.

    The record of any proceeding shall consist of the statement of 
allegations conveyed to respondent, the transcript of the testimony at 
the hearing, the documents and other evidence produced and made a part 
of the record at

[[Page 29]]

the hearing, all pleadings and the initial decision of the hearing 
officer.



Sec. 0.735-65  Burden of proof.

    The petitioner shall have the burden of proof in this proceeding and 
must establish a violation by substantial evidence.



Sec. 0.735-66  Initial decision.

    Within 30 days of the termination of the hearing, the hearing 
officer shall issue an initial decision on the matter. In his or her 
initial decision, he or she shall set forth all findings of fact and 
conclusions of law relevant to the matters at issue.



Sec. 0.735-67  Appeal.

    Within 15 days of the date of receipt of the initial decision either 
party may appeal the initial decision or any portion thereof to the 
Assistant Secretary for Administration, in writing, pointing to errors 
in the findings of fact or conclusions of law contained in the initial 
decision. The opposing party shall have ten days after receipt of a copy 
of the appeal to reply.



Sec. 0.735-68  Final decision.

    The Assistant Secretary for Administration shall accept or reject 
the findings and conclusions of the hearing officer. This decision shall 
be based solely upon the record of the proceeding and the letters of the 
parties commenting on the initial decision. Neither party shall make any 
ex-parte communication to the Assistant Secretary for Administration 
concerning the merits of the appeal prior to issuance of his or her 
final decision.



Sec. 0.735-69  Sanctions.

    In event of a finding, not overturned on appeal, of a violation of 
18 U.S.C. 207, the Assistant Secretary for Administration may:
    (a) Prohibit the respondent from making, on behalf of any other 
person (except the United States) any formal or informal appearance 
before, or, with the intent to influence, any oral or written 
communication to the Department on any matter of business for a period 
not to exceed five years, which may be accomplished by directing 
Department employees to refuse to participate in any such appearances or 
to accept any such communications; and
    (b) Take other appropriate disciplinary action.



Sec. 0.735-70  Finality.

    There shall be no appeal within the Department from the decisions of 
the Assistant Secretary for Administration made pursuant to this 
subpart.



PART 1--ADMINISTRATIVE REGULATIONS--Table of Contents




                       Subpart A--Official Records

Sec.
1.1  Purpose and scope.
1.2  Policy.
1.3  Agency implementing regulations.
1.4  Implementing regulations for the Office of the Secretary.
1.5  Public access to certain materials.
1.6  Requests for records.
1.7  Aggregating requests.
1.8  Agency response to requests for records.
1.9  Search services.
1.10  Review services.
1.11  Handling information from a private business.
1.12  Date of receipt of requests or appeals.
1.13  Appeals.
1.14  Extension of administrative deadlines.
1.15  Failure to meet administrative deadlines.
1.16  Fee schedule.
1.17  Exemptions and discretionary release.
1.18  Annual report.
1.19  Compilation of new records.
1.20  Authentication.
1.22  Records in formal adjudication proceedings.
1.23  Preservation of records.

Appendix A--Fee Schedule

                   Subpart B--Departmental Proceedings

1.26  Representation before the Department of Agriculture.
1.27  Rulemaking and other notice procedures.
1.28  Petitions.
1.29  Subpoenas relating to investigations under statutes administered 
          by the Secretary of Agriculture.

                     Subpart C--Judicial Proceedings

1.41  Service of process.

                            Subpart D--Claims

1.51  Claims based on negligence, wrongful act or omission.

[[Page 30]]

          Subpart E--Cooperative Production of Television Films

1.71  Purpose.
1.72  Policy.
1.73  Responsibility.
1.74  Basis for special working relationships.
1.75  General stipulations.
1.76  Department cooperation.
1.77  Assignment of priorities.
1.78  Development of special working relationships.
1.79  Credits.

                   Subpart G--Privacy Act Regulations

1.110  Purpose and scope.
1.111  Definitions.
1.112  Procedures for requests pertaining to individual records in a 
          record system.
1.113  Times, places, and requirements for identification of individuals 
          making requests.
1.114  Disclosure of requested information to individuals.
1.115  Special procedures: medical records.
1.116  Request for correction or amendment to record.
1.117  Agency review of request for correction or amendment of record.
1.118  Appeal of initial adverse agency determination on correction or 
          amendment.
1.119  Disclosure of record to person other than the individual to whom 
          it pertains.
1.120  Fees.
1.121  Penalties.
1.122  General exemptions.
1.123  Specific exemptions.

Appendix A--Internal Directives

 Subpart H--Rules of Practice Governing Formal Adjudicatory Proceedings 
           Instituted by the Secretary Under Various Statutes

1.130  Meaning of words.
1.131  Scope and applicability of this subpart.
1.132  Definitions.
1.133  Institution of proceedings.
1.134  Docket number.
1.135  Contents of complaint or petition for review.
1.136  Answer.
1.137  Amendment of complaint, petition for review, or answer; joinder 
          of related matters.
1.138  Consent decision.
1.139  Procedure upon failure to file an answer or admission of facts.
1.140  Conferences and procedure.
1.141  Procedure for hearing.
1.142  Post-hearing procedure.
1.143  Motions and requests.
1.144  Judges.
1.145  Appeal to Judicial Officer.
1.146  Petitions for reopening hearing; for rehearing or reargument of 
          proceeding; or for reconsideration of decision of the Judicial 
          Officer.
1.147  Filing; service; extensions of time; and computation of time.
1.148  Depositions.
1.149  Subpoenas.
1.150  Fees of witnesses.
1.151  Ex parte communications.

  Subpart I--Rules of Practice Governing Cease and Desist Proceedings 
               Under Section 2 of the Capper-Volstead Act

1.160  Scope and applicability of rules in this part.
1.161  Definitions.
1.162  Institution of proceedings.
1.163  The complaint.
1.164  Answer.
1.165  Amendments.
1.166  Consent order.
1.167  Conference.
1.168  Procedure for hearing.
1.169  Post-hearing procedure and decision.
1.170  Appeal to the Judicial Officer.
1.171  Intervention.
1.172  Motions and requests.
1.173  Judges.
1.174  Filing; service; extensions of time; and computation of time.
1.175  Procedure following entry of cease and desist order.

   Subpart J--Procedures Relating to Awards Under the Equal Access to 
            Justice Act in Proceedings Before the Department

                           General Provisions

1.180  Definitions.
1.181  Purpose of these rules.
1.182  When the Act applies.
1.183  Proceedings covered.
1.184  Eligibility of applicants.
1.185  Standards for awards.
1.186  Allowable fees and expenses.
1.187  Rulemaking on maximum rates for attorney fees.
1.188  Awards against other agencies.
1.189  Delegations of authority.

                  Information Required From Applicants

1.190  Contents of application.
1.191  Net worth exhibit.
1.192  Documentation of fees and expenses.
1.193  Time for filing application.

                 Procedures for Considering Applications

1.194  Filing and service of documents.
1.195  Answer to application.
1.196  Reply.
1.197  Comments by other parties.
1.198  Settlement.
1.199  Further proceedings.
1.200  Decision.

[[Page 31]]

1.201  Department review.
1.202  Judicial review.
1.203  Payment of award.

  Subpart K--Appearance of USDA Employees as Witnesses in Judicial or 
                       Administrative Proceedings

1.210  Purpose.
1.211  Definitions.
1.212  General.
1.213  Appearance as a witness on behalf of the United States.
1.214  Appearance as a witness on behalf of a party other than the 
          United States where the United States is not a party.
1.215  Subpoenas duces tecum for USDA records in judicial or 
          administrative proceedings in which the United States is not a 
          party.
1.216  Appearance as a witness or production of documents on behalf of a 
          party other than the United States where the United States is 
          a party.
1.217  Witness fees and travel expenses.
1.218  Penalty.
1.219  Delegations.

   Subpart L--Procedures Related to Administrative Hearings Under the 
                Program Fraud Civil Remedies Act of 1986

Sec.
1.301  Basis, purpose and scope.
1.302  Definitions.
1.303  Basis for civil penalties and assessments.
1.304  Investigation.
1.305  Review by the reviewing official.
1.306  Prerequisites for issuing a complaint.
1.307  Complaint.
1.308  Service of complaint and notice of hearing.
1.309  Answer and request for hearing.
1.310  Default upon failure to file an answer.
1.311  Referral of complaint and answer to the ALJ.
1.312  Procedure where respondent does not request a hearing.
1.313  Procedure where respondent requests a hearing; notice of hearing.
1.314  Parties to the hearing.
1.315  Separation of functions.
1.316  Ex parte contacts.
1.317  Disqualification of reviewing official or ALJ.
1.318  Rights of parties.
1.319  Authority of the ALJ.
1.320  Prehearing conferences.
1.321  Disclosure of documents.
1.322  Discovery.
1.323  Subpoenas for attendance at hearing.
1.324  Fees.
1.325  Form, filing and service of papers.
1.326  Computation of time.
1.327  Motions.
1.328  Sanctions.
1.329  The hearing and burden of proof.
1.330  Location of hearing.
1.331  Witnesses.
1.332  Evidence.
1.333  The record.
1.334  Post-hearing briefs.
1.335  Determining the amount of penalties and assessments.
1.336  Initial decision of the ALJ.
1.337  Reconsideration of initial decision.
1.338  Appeal to the judicial officer.
1.339  Stays ordered by the Department of Justice.
1.340  Stay pending appeal.
1.341  Judicial review.
1.342  Collection of civil penalties and assessments.
1.343  Right to administrative offset.
1.344  Deposit to Treasury of the United States.
1.345  Settlement.
1.346  Limitation.

  Subpart M--Rules of Practice Governing Adjudication of Sourcing Area 
Applications and Formal Review of Sourcing Areas Pursuant to the Forest 
 Resources Conservation and Shortage Relief Act of 1990 (16 U.S.C. 620, 
                                et seq.)

1.410 Meaning of words.
1.411 Definitions.
1.412 Institution of proceedings.
1.413 Submission of a sourcing area application.
1.414 Docket number.
1.415 Notification of proceedings.
1.416 Comment period.
1.417 Review period.
1.418 Procedure upon no request for hearing.
1.419 Amendment of a sourcing area application.
1.420 Consent recommendation.
1.421 Prehearing conferences and procedures.
1.422 Conduct of the hearing.
1.423 Post-hearing procedure.
1.424 Motions and requests.
1.425 Judges.
1.426 Appeal to Judicial Officer.
1.427 Filing; identification of parties of record; service; and 
          computation of time.
1.428 Depositions.
1.429 Ex parte communications.

    Authority: 5 U.S.C. 301, unless otherwise noted.



                       Subpart A--Official Records

    Authority: 5 U.S.C. 301 and 552. Appendix A also issued under 7 
U.S.C. 2244; 31 U.S.C. 9701, and 7 CFR 2.75(a)(6)(xiii).

    Source: 52 FR 49386, Dec. 31, 1987, unless otherwise noted.

[[Page 32]]



Sec. 1.1  Purpose and scope.

    This subpart establishes policy, procedures, requirements, and 
responsibilities for administration and coordination of the Freedom of 
Information Act (FOIA), 5 U.S.C. 552, pursuant to which official records 
may be obtained by any person. It also provides rules pertaining to the 
disclosure of records pursuant to compulsory process. This subpart also 
serves as the implementing regulations (referred to in Sec. 1.3, 
``Agency implementing regulations'') for the Office of the Secretary 
(the immediate offices of the Secretary, Deputy Secretary, Under 
Secretaries and Assistant Secretaries) and for the Office of 
Governmental and Public Affairs. The Office of Governmental and Public 
Affairs has the primary administrative responsibility for the FOIA in 
the Department of Agriculture (USDA). The term ``agency'' or 
``agencies'' is used throughout this subpart to include both USDA 
program agencies and staff offices.



Sec. 1.2  Policy.

    (a) Agencies of USDA shall comply with the time limits set forth in 
the FOIA for responding to and processing requests and appeals for 
agency documents, unless there are exceptional circumstances within the 
meaning of 5 U.S.C. 552(a)(6)(B). An agency shall notify a requester in 
writing whenever it is unable to respond to or process a request or 
appeal within the time limits established by the FOIA.
    (b) All agencies of the Department shall comply with the fee 
schedule provided as appendix A of this subpart, with regard to the 
charging of fees for providing copies of documents and related services 
to requesters.



Sec. 1.3  Agency implementing regulations.

    (a) Each agency of the Department shall promulgate regulations 
setting forth the following:
    (1) The location and hours of operation of the agency office or 
offices where members of the public may gain access to those materials 
required by Sec. 1.5 to be made available for public inspection and 
copying;
    (2) Information regarding the publication and distribution (by sale 
or otherwise) of indexes and supplements thereto which are maintained in 
accordance with the requirements of 5 U.S.C. 552(a)(2) and Sec. 1.5(b);
    (3) The title(s) and mailing address(es) of the official(s) of the 
agency who is/are authorized to receive requests for records submitted 
in accordance with Sec. 1.6(a), and to make determinations regarding 
whether to grant or deny such requests. Authority to make such 
determinations includes authority to:
    (i) Extend the 10-day administrative deadline for reply pursuant to 
Sec. 1.14;
    (ii) Make discretionary releases pursuant to Sec. 1.17(b); and
    (iii) Make determinations regarding the charging of fees pursuant to 
appendix A of this subpart;
    (4) The title and mailing address of the official of the agency who 
is authorized to receive appeals submitted in accordance with 
Sec. 1.6(e) and to make determinations regarding whether to grant or 
deny such appeals. Authority to determine appeals includes authority to:
    (i) Extend the 20-day administrative deadline for reply pursuant to 
Sec. 1.14 (to the extent the maximum extension authorized by 
Sec. 1.14(c) was not used with regard to the initial request);
    (ii) Make discretionary releases pursuant to Sec. 1.17(b); and
    (iii) Make determinations regarding the charging of fees pursuant to 
appendix A of this subpart; and
    (5) Other information which would be of concern to a person wishing 
to request records from that agency in accordance with this subpart.



Sec. 1.4  Implementing regulations for the Office of the Secretary.

    (a) For the Office of the Secretary and for the Office of 
Governmental and Public Affairs, the information required by Sec. 1.3 is 
as follows:
    (1) Records available for public inspection and copying may be 
obtained in room 536-A, Administration Building, USDA, Washington, DC 
20250 during the hours of 9:00 a.m. to 5:00 p.m.;
    (2) Any indexes and supplements which are maintained in accordance 
with the requirements of 5 U.S.C. 552(a)(2) and Sec. 1.5(b) will also be 
available in Room 536-A, Administration

[[Page 33]]

Building, USDA, Washington, DC 20250 during the hours of 9:00 a.m. to 
5:00 p.m.;
    (3) The person authorized to receive FOIA requests and to determine 
whether to grant or deny such requests is the Director of Information, 
Office of Governmental and Public Affairs, USDA, Washington, DC 20250;
    (4) The official authorized to receive appeals from denials of FOIA 
requests and to detemine whether to grant or deny such appeals is the 
Assistant Secretary for Governmental and Public Affairs, USDA, 
Washington, DC 20250.
    (b) The organization and functions of the Office of the Secretary 
and the Office of Governmental and Public Affairs (OGPA) is as follows:
    (1) The Office of the Secretary provides the overall policy guidance 
and direction of the activities of the Department of Agriculture. 
Overall policy statements and announcements are made from this office.
    (2) The Office of the Secretary consists of the Secretary, Deputy 
Secretary, Under Secretaries, Assistant Secretaries, and other staff 
members.
    (3) In the absence of the Secretary and the Deputy Secretary, 
responsibility for the operation of the Department of Agriculture is as 
delegated at 7 CFR part 2, subpart A.
    (4) The Office of Governmental and Public Affairs provides policy 
direction, review, and coordination of all information programs of the 
Department of Agriculture. The Office is assigned responsibility for 
maintaining the flow of information and providing liaison between the 
Department of Agriculture and the Congress, the mass communication 
media, State and local governments, and the public.
    (5) OGPA is headed by the Assistant Secretary for Governmental and 
Public Affairs. In the Assistant Secretary's absence, the agency is 
headed by the Assistant Secretary's designee.
    (6) OGPA consists of three offices: The Office of Information, 
Office of Congressional Relations, and the Office of Intergovernmental 
Affairs. Each of the offices is headed by a director.
    (i) The Office of Information is responsible for maintaining the 
flow of information and providing the liaison between USDA and the mass 
communication media and the public at large. The office directs and 
coordinates public affairs work with the various USDA agencies and has 
final review of all national news releases, broadcast materials, 
publications, visuals, and other information materials involving 
Departmental policy. The office provides leadership and facilities in 
the production of radio and video tapes, film, still photography, 
exhibits, and other design materials. The office provides Departmental 
coordination of responses under the Freedom of Information Act and the 
Privacy Act.
    (ii) The Office of Congressional Relations is responsible for 
liaison with the Congress and the White House on legislative matters of 
concerns to USDA and the public.
    (iii) The Office of Intergovernmental Affairs is responsible for 
liaison with State Departments of Agriculture and other State and local 
government agencies interested in agricultural programs and policies.



Sec. 1.5  Public access to certain materials.

    (a) In accordance with 5 U.S.C. 552(a)(2), each agency within the 
Department shall make the following materials available for public 
inspection and copying (unless they are promptly published and copies 
offered for sale):
    (1) Final opinions, including concurring and dissenting opinions, as 
well as orders, made in the adjudication of cases;
    (2) Those statements of policy and interpretation which have been 
adopted by the agency and are not published in the Federal Register; and
    (3) Administrative staff manuals and instructions to staff that 
affect a member of the public.
    (b) Each agency of the Department shall also maintain and make 
available current indexes providing identifying information regarding 
any matter issued, adopted, or promulgated after July 4, 1967, and 
required by paragraph (a) of this section to be made available or 
published. Each agency shall publish and make available for distribution 
copies of such indexes and supplements thereto at least quarterly, 
unless it determines by notice published in the Federal Register that 
publication

[[Page 34]]

would be unnecessary and impracticable. After issuance of such Notice, 
the agency shall provide copies of any index upon request at a cost not 
to exceed the direct cost of duplication.



Sec. 1.6  Requests for records.

    (a) Any person who wishes to inspect or obtain copies of any record 
of any agency of the Department shall submit a request in writing and 
address the request to the official designated in regulations 
promulgated by the agency. The requester may in his or her petition ask 
for a fee waiver if there is likely to be a charge for the requested 
information. To inspect or obtain copies of records of the Office of the 
Secretary or the Office of Governmental and Public Affairs, requesters 
should submit their requests to the Director of Information, Office of 
Governmental and Public Affairs, U.S. Department of Agriculture, 
Washington, DC 20250. All such requests for records shall be deemed to 
have been made pursuant to the Freedom of Information Act, regardless of 
whether that Act is specifically mentioned. To facilitate processing of 
a request, the phrase ``FOIA REQUEST'' should be placed in capital 
letters on the front of the envelope.
    (b) A request must reasonably describe the records to enable agency 
personnel to locate them with reasonable effort. Where possible, a 
requester should supply specific information regarding dates, titles, 
etc., which may help identify the records. If the request relates to a 
matter in pending litigation, the court and its location should be 
identified.
    (c) If an agency determines that a request does not reasonably 
describe the records, it shall inform the requester of this fact and 
extend the requester an opportunity to clarify the request or to confer 
promptly with knowledgeable agency personnel to attempt to identify the 
records he or she is seeking. The ``date or receipt'' in such instances, 
for purposes of Sec. 1.12(a), shall be the date of receipt of the 
amended or clarified request.
    (d) Nothing in this subpart shall be interpreted to preclude an 
agency from honoring an oral request for information, but, if the 
requester is dissatisfied with the response, the agency official 
involved shall advise the requester to submit a written request in 
accordance with paragraph (a) of this section. The ``date of receipt'' 
of such a request for purposes of Sec. 1.12(a) shall be the date of 
receipt of the written request. For recordkeeping purposes, an agency 
responding to an oral request for information may ask the requester to 
also submit his or her request in writing.
    (e) If a request for records or a fee waiver, made under this 
subpart, is denied, the person making the request shall have the right 
to appeal the denial. Requesters also may appeal agency determinations 
of a requester's status for purposes of fee levels under section 5 of 
appendix A. All appeals must be in writing and addressed to the official 
designated in regulations promulgated by the agency which denied the 
request. To facilitate processing of an appeal, the phrase ``FOIA 
APPEAL'' should be placed in capital letters on the front of the 
envelope.
    (f) Requests that are nonagency-specific, i.e., are not addressed to 
a specific agency in USDA, or which pertain to more than one USDA 
agency, or which are sent to the wrong agency of USDA, should be 
forwarded to the Department's central processing unit for FOIA in the 
Office of Governmental and Public Affairs, Office of Information, 
Special Programs Division, U.S. Department of Agriculture, Washington, 
DC 20250.
    (g) The central processing unit will determine which agency or 
agencies should process the request, and, where necessary, refer the 
request to the appropriate agency (agencies). The unit will also, where 
necessary, notify the requester of the referral and of the name of each 
agency to which the request has been referred.
    (h) Each agency shall develop and maintain a record of all written 
and oral requests and appeals received in that agency, which shall 
include, in addition to any other information, the name of the 
requester, brief summary of the information requested, an indication of 
whether the request or appeal was denied or partially denied, the 
exemption(s) for making any denials, and the amount of fees associated 
with the request or appeal.

[[Page 35]]



Sec. 1.7  Aggregating requests.

    When an agency reasonably believes that a requester, or a group of 
requesters acting in concert, is attempting to break a request down into 
a series of requests for the purpose of evading the assessment of fees, 
the agency may aggregate any such requests and charge accordingly. One 
element which may be considered in determining whether such a belief 
would be reasonable is the time period in which the requests have 
occurred.



Sec. 1.8  Agency response to requests for records.

    (a) 5 U.S.C. 552(a)(6)(A)(i) provides that each agency of the 
Department to which a request for records or a fee waiver is submitted 
in accordance with Sec. 1.6(a) shall inform the requester of its 
determination concerning that request within 10 days of its date of 
receipt (excepting Saturdays, Sundays, and legal public holidays), plus 
any extension authorized under Sec. 1.14. If the agency determines to 
grant the request, it shall inform the requester of any conditions 
surrounding the granting of the request (e.g., payment of fees) and the 
approximate date upon which compliance will be effected. If it grants 
only a portion of the request, it shall treat the portion not granted as 
a denial. If the agency determines to deny the request in part or in 
whole, it shall immediately inform the requester of that decision and of 
the following:
    (1) The reasons for the denial;
    (2) The name and title or position of each person responsible for 
denial of the request;
    (3) The requester's right to appeal such denial and the title and 
address of the official to whom such appeal is to be addressed; and
    (4) The requirement that such appeal be made within 45 days of the 
date of the denial.
    (b) In the event the records requested contain some portions which 
are exempt from mandatory disclosure and others which are not, the 
official responding to the request shall insure that all nonexempt 
portions are disclosed, and that all exempt portions are identified 
according to the specific exemption or exemptions which are applicable.
    (c) If the reason for not fulfilling a request is that the records 
requested are in the custody of another agency outside USDA, the agency 
shall inform the requester of this fact and shall forward the request to 
that agency or Department for processing in accordance with its 
regulations. If the agency has no knowledge of requested records or if 
no records exist, the agency shall notify the requester of that fact.
    (d) 5 U.S.C. 552(a)(6)(A)(ii) provides that each agency in the 
Department to which an appeal of a denial is submitted in accordance 
with Sec. 1.6(e) shall inform the requester of its determination 
concerning that appeal within 20 days (excepting Saturdays, Sundays, and 
legal public holidays), plus any extension authorized by Sec. 1.14, of 
its date of receipt. If the agency determines to grant the appeal, it 
shall inform the requester of any conditions surrounding the granting of 
the request (e.g., payment of fees) and the approximate date upon which 
compliance will be effected. If it grants only a portion of the appeal, 
it shall treat the portion not granted as a denial. If it determines to 
deny the appeal either in part or in whole, it shall inform the 
requester of that decision and of the following:
    (1) The reasons for denial;
    (2) The name and title or position of each person responsible for 
denial of the appeal; and
    (3) The right to judicial review of the denial in accordance with 5 
U.S.C. 552(a)(4).
    (e) If, in compliance with the request, a charge is to be made in 
accordance with section 8 of appendix A of this subpart, agencies shall 
inform the requester of the fee amount and of the basis for the charge. 
Agencies may, in accordance with section 8 of appendix A of this 
subpart, require payment of the entire fee, or a portion thereof, or 
full payment of a delinquent fee plus any applicable interest, before it 
provides the requested records. In instances where a requester refuses 
to remit payment in advance, an agency may likewise refuse to process 
the request with written notice to that effect forwarded to the 
requester. The ``date of receipt'' of a request for which advance 
payment has been required shall be the date that payment is received.

[[Page 36]]

    (f) In the event compliance with the request involves inspection of 
records by the requester rather than the forwarding of copies, the 
agency response shall include the name, mailing address, and telephone 
number of the person to be contacted to arrange a mutually convenient 
time for such inspection.
    (g) Whenever duplication fees, or search fees for unsuccessful 
searches (see section 4(f) of appendix A), are anticipated to exceed 
$25.00, and the requester has not indicated, in advance, a willingness 
to pay fees as high as those anticipated, agencies shall notify the 
requester of the amount of the anticipated fee. Similarly, as a matter 
of policy, where an extensive and therefore costly successful search is 
anticipated, agencies also should notify requesters of the anticipated 
fees. The notification shall offer the requester the opportunity to 
confer with agency personnel to reform the request to meet the 
requester's needs at a lower fee. In appropriate cases, an advance 
deposit in accordance with section 8 of appendix A may be required.



Sec. 1.9  Search services.

    (a) Search services are services of agency personnel--clerical or 
supervisory/professional salary level--used in trying to find the 
records sought by the requester. They include time spent examining 
records for the purpose of finding information which is within the scope 
of the request. They also include services to transport personnel to 
places of record storage, or records to the location of personnel for 
the purpose of the search, if such services are reasonably necessary.
    (b) Because of the nature of the Department's business and records, 
the normal location of a record in a file or other facility will not be 
considered a search. This would be the same as quickly locating a piece 
of material for purposes of answering a letter or telephone inquiry, and 
is based on the Department's obligation to respond to requests 
furnishing a reasonable specific description of the record.
    (c) ``Search'' is distinguished, however, from ``review'' of 
material to determine whether materials are exempt from disclosure.



Sec. 1.10  Review services.

    (a) Review services are services by agency personnel--clerical or 
supervisory/professional--in examining documents located in response to 
a request that is for a commercial use (as specified in section 6 of 
appendix A) to determine whether any portion of any document located is 
permitted to be withheld.
    (b) Review services include processing any documents for disclosure, 
e.g., doing all that is necessary to excise exempt portions and 
otherwise prepare documents for release.
    (c) ``Review'' does not include time spent resolving general legal 
or policy issues regarding the application of exemptions.



Sec. 1.11  Handling information from a private business.

    (a) The USDA is responsible for making the final determination with 
regard to the disclosure or nondisclosure of information submitted by a 
business. When, in the course of responding to an FOIA request, an 
agency cannot readily determine whether the information obtained from a 
person is privileged or confidential business information, the policy of 
USDA is to obtain and consider the views of the submitter of the 
information and to provide the submitter an opportunity to object to any 
decision to disclose the information. Whenever a request (including any 
``demand'' as defined in Sec. 1.21) is received in USDA for information 
which has been submitted by a business, all agencies of the Department 
shall:
    (1) Provide the business information submitter with prompt 
notification of a request for that information (unless it is readily 
determined by the agency that the information requested should not be 
disclosed or, on the other hand, that the information is not exempt by 
law from disclosure);
    (2) Notify the requester of the need to inform the submitter of a 
request for submitted business information;
    (3) Afford business information submitters time in which to object 
to the disclosure of any specified portion of the information. The 
submitter must explain fully all grounds upon which disclosure is 
opposed. For example, if

[[Page 37]]

the submitter maintains that disclosure is likely to cause substantial 
harm to its competitive position, the submitter must explain item-by-
item why disclosure would cause such harm. Information provided by a 
business submitter pursuant to this paragraph may itself be subject to 
disclosure under FOIA;
    (4) Provide business information submitters with notice of any 
determination to disclose such records prior to the disclosure date, in 
order that the matter may be considered for possible judicial 
intervention; and
    (5) Notify business information submitters promptly of all instances 
in which FOIA requesters bring suit seeking to compel disclosure of 
submitted information.
    (b) [Reserved]



Sec. 1.12  Date of receipt of requests or appeals.

    (a) The date of receipt of a request or appeal, which contains the 
phrase ``FOIA REQUEST'' or ``FOIA APPEAL'' and is addressed in 
accordance with applicable agency regulations, shall be the date it is 
received in the office responsible for the administrative processing of 
FOIA requests or appeals.
    (b) The date of receipt of a request or appeal which is hand-
delivered to the address specified in agency regulations shall be the 
date of such hand-delivery.
    (c) The date of receipt of a request or appeal which does not comply 
with paragraphs (a) or (b) of this section shall be the date it is 
received by the official designated in agency regulations to make the 
applicable determination.



Sec. 1.13  Appeals.

    (a) Each agency shall provide for review of appeals by an official 
different from the official or officials designated to make initial 
denials.
    (b) Each agency, upon a determination that it wishes to deny an 
appeal, shall send a copy of the records requested and of all 
correspondence relating to the request to the Assistant General Counsel, 
Research and Operations Division, Office of the General Counsel. When 
the volume of records is so large as to make sending a copy 
impracticable, the agency shall enclose an informative summary of those 
records. The agency shall not deny an appeal until it receives 
concurrence from the Assistant General Counsel.
    (c) The Assistant General Counsel shall promptly review the matter 
(including necessary consultation with the Department of Justice and 
coordination with the Office of Governmental and Public Affairs) and 
render all necessary assistance to enable the agency to respond to the 
appeal within the administrative deadline or any extension thereof.



Sec. 1.14  Extension of administrative deadlines.

    (a) In unusual circumstances as specified in this section, either of 
the administrative deadlines prescribed in Sec. 1.8 may be extended by 
an authorized agency official. Written notice of the extension shall be 
sent to the requester within the applicable deadline, setting forth the 
reasons for such extension and the date a determination is expected to 
be dispatched. In no event shall the extension exceed a total of 10 
working days.
    (b) As used in this section, ``unusual circumstances'' shall be 
limited to the following:
    (1) The need to search for and collect the requested records from 
field facilities or other establishments that are separate from the 
office processing the request;
    (2) The need to search for, collect, and appropriately examine a 
voluminous amount of separate and distinct records which are demanded in 
a single request; and
    (3) The need for consultation, which shall be conducted with all 
practicable speed, with another Department or agency having a 
substantial interest in the determination of the request or among two or 
more components of the agency having substantial subject-matter interest 
therein. (Note: consultation regarding policy or legal issues between an 
agency and the Office of the General Counsel, Office of Governmental and 
Public Affairs, or the Department of Justice is not a basis for 
extension under this section.)
    (c) The 10-day extension authorized by this section may be divided 
between

[[Page 38]]

the initial and appellate reviews, but in no event shall the total 
extension exceed 10 working days.
    (d) Nothing in this section shall preclude the agency and the 
requester from agreeing to an extension of time. Any such agreement 
should be confirmed in writing and should specify clearly the total time 
agreed upon.



Sec. 1.15  Failure to meet administrative deadlines.

    In the event an agency fails to meet either of the administrative 
deadlines set forth in Sec. 1.8, plus any extension authorized by 
Sec. 1.14, it shall notify the requester, state the reasons for the 
delay, and the date by which it expects to dispatch a determination. 
Although the requester may be deemed to have exhausted his or her 
administrative remedies under 5 U.S.C. 552(a)(6)(C), the agency shall 
continue processing the request as expeditiously as possible and 
dispatch the determination when it is reached in the same manner and 
form as if it had been reached within the applicable deadline.



Sec. 1.16  Fee schedule.

    Pursuant to Sec. 2.75 of this title, the Director, Office of Finance 
and Management, is delegated authority to promulgate regulations 
providing a uniform schedule of fees applicable to all agencies of the 
Department regarding requests for records under this subpart, following 
public notice and comment. (See appendix A of this subpart.) Any 
amendments thereto will be made pursuant to notice and opportunity for 
comment. Said regulations provide for recovery of direct costs for 
document search, duplication, and review. The regulations provide that 
documents may be furnished without charge or at a reduced charge where 
the agency determines that waiver or reduction of the fee is in the 
public interest based upon criteria set forth in section 6 of appendix 
A.



Sec. 1.17  Exemptions and discretionary release.

    (a) All agency records, except those specifically exempted from 
mandatory disclosure by one or more provisions of 5 U.S.C. 552(b), shall 
be made promptly available to any person submitting a request under this 
subpart.
    (b) Except where disclosure is specifically prohibited by Executive 
Order, statute, or applicable regulations, an agency may release records 
exempt from mandatory disclosure under 5 U.S.C. 552(b) whenever it 
determines that such disclosure would be in the public interest. Such a 
record is considered to be in the public interest if the benefit to the 
public in releasing the document outweighs any harm likely to result 
from disclosure.



Sec. 1.18  Annual report.

    (a) Each agency of the Department shall compile the following 
information for each calendar year:
    (1) The number of determinations made by such agency not to comply 
with initial requests for records made to it under Sec. 1.6(a), and the 
reasons for each such determination;
    (2) The number of appeals made by persons under Sec. 1.8(d), the 
result of such appeals, and the reason for the action upon each appeal 
that results in a denial of information;
    (3) The name and title or position of each person responsible for 
the denial of records requested under this subpart and the number of 
instances of participation for each;
    (4) The results of each proceeding conducted pursuant to 5 U.S.C. 
552(a)(4)(F), including a report of the disciplinary action taken 
against the officer or employee who was primarily responsible for 
improperly withholding records or an explanation of why disciplinary 
action was not taken;
    (5) A copy of every rule made by the agency regarding this subpart;
    (6) The total amount of fees collected by the agency for making 
records available under this subpart; and
    (7) Such other information as indicates efforts to administer fully 
this subpart.
    (b) Each agency shall compile the information required by paragraph 
(a) of this section for the preceding calendar year into a report and 
submit this report to the Director of Information, Office of 
Governmental and Public Affairs, by February 1 of each year.
    (c) The Director of Information shall combine the reports from the 
various

[[Page 39]]

agencies within USDA into a Departmental report, and shall arrange for 
submission of this report to the President of the Senate and the Speaker 
of the House of Representatives by March 1 of each year in accordance 
with 5 U.S.C. 552(d).



Sec. 1.19  Compilation of new records.

    Nothing in 5 U.S.C. 552 or this subpart requires that any agency 
compile a new record in order to fulfill a request for records. Such 
compilation may be undertaken voluntarily if the agency determines this 
action to be in the public interest or the interest of USDA.



Sec. 1.20  Authentication.

    When a request is received for an authenticated copy of a document 
which the agency determines to make available to the requesting party, 
the agency shall cause a correct copy to be prepared and sent to the 
Office of the General Counsel which shall certify the same and cause the 
seal of the Department to be affixed, except that the Hearing Clerk in 
the Office of Administrative Law Judges may authenticate copies of 
documents in the records of the Hearing Clerk and that the Director of 
the National Appeals Division may authenticate copies of documents in 
the records of the National Appeals Division.

[60 FR 67308, Dec. 29, 1995]



Sec. 1.22  Records in formal adjudication proceedings.

    Records in formal adjudication proceedings are on file in the 
Hearing Clerk's office, Office of Administrative Law Judges, U.S. 
Department of Agriculture, Washington, DC 20250, and shall be made 
available to the public.



Sec. 1.23  Preservation of records.

    Agencies shall preserve all correspondence relating to the requests 
it receives under this subpart, and all records processed pursuant to 
such requests, until such time as the destruction of such correspondence 
and records is authorized pursuant to title 44 of the United States 
Code, and to the General Records Schedule. Under no circumstances shall 
records be destroyed while they are the subject of a pending request, 
appeal, or lawsuit under the FOIA.

                        Appendix A--Fee Schedule

                           Section 1. General.

    This schedule sets forth fees to be charged for providing copies of 
documents--including photographic reproductions, microfilm, maps and 
mosaics, and related services--under the Freedom of Information Act 
(FOIA). Records and related services are available at the locations 
specified by agencies in their FOIA implementing regulations. The fees 
set forth in this schedule are applicable to all agencies of the 
Department of Agriculture, and are based upon guidelines prescribed by 
the Office of Management and Budget (OMB) issued at 52 FR 10012 (March 
27, 1987). No higher fees or charges in addition to those provided for 
in this schedule may be charged a party requesting services under the 
Freedom of Information Act.

       Section 2. Types of services for which fees may be charged.

    Subject to the criteria set forth in section 5, fees may be assessed 
under the Freedom of Information Act on all requests involving such 
services as document search, duplication, and review. Fees may also be 
charged in situations involving special service to a request, such as in 
certifying that records requested are true copies, or in sending records 
by special methods such as express mail, etc. For services not covered 
by the FOIA or by this schedule, agencies may set their own fees in 
accordance with applicable law, or costs incurred will be assessed the 
requester at the actual cost to the Government. For example, where 
records are required to be shipped from one office to another by 
commercial carrier in order to timely answer a request, the actual 
freight charge will be assessed the requester.

         Section 3. Instances in which fees will not be charged.

    (a) Except for requests seeking documents for a commercial use (as 
specified below in section 5), no charge shall be made for either: (1) 
The first 100 pages of duplicated information (8\1/2\" x 14" or smaller-
size paper); or (2) The first two hours of manual search time, or the 
equivalent value of computer search time as defined in section 4(e).
    (b) Also, no charge shall be made--even to commercial use 
requesters--if the cost of collecting a fee would be equal to or greater 
than the fee itself. For USDA, this figure has been calculated to be 
$25.00.
    (c) In addition, fees may not be charged for time spent by an agency 
employee in resolving legal or policy issues, or in monitoring a 
requester's inspection of agency records. No

[[Page 40]]

charge shall be made for normal postage costs.
    (d) Documents shall also be furnished without charge under the 
following conditions:
    (1) When filling requests from other Departments or Government 
agencies for official use, provided quantities requested are reasonable 
in number;
    (2) When members of the public provide their own copying equipment, 
in which case no copying free will be charged (although search and 
review fees may still be assessed); or
    (3) When any notices, decisions, orders, or other materials are 
required by law to be served on a party in any proceeding or matter 
before any Department agency.

            Section 4. Fees for records and related services.

    (a) The fee for photocopies of pages 8\1/2\" x 14" or smaller shall 
be $0.20 per page (per individual side of sheet).
    (b) The fee for photocopies larger than 8\1/2\" x 14" shall be $0.50 
per linear foot of the longest side of the copy.
    (c) The fee for other forms of duplicated information, such as 
microform, audio-visual materials, or machine-readable documentation 
(i.e., magnetic tape or disk), shall be the actual direct cost of 
producing the document(s).
    (d) Manual searches shall be charged for in one of the two following 
manners in the given order:
    (1) When feasible, at the salary rate of the employee conducting the 
search, plus 16 percent of the employee's basic pay; or
    (2) Where a homogeneous class of personnel is used exclusively, at 
the rate of $10.00 per hour for clerical time, and $20.00 per hour for 
supervisory or professional time. Charges should be computed to the 
nearest quarter hour required for the search. A homogeneous class of 
personnel, for purposes of conducting manual searches and where more 
than one individual is involved, is a group of employees of like rank, 
grade, pay or position. A heterogeneous class of personnel is a group of 
employees of unlike rank, grade, pay, or position. If a heterogeneous 
class of personnel is involved in a search then the search shall be 
charged for at the salary rate of the individuals.
    (e) Mainframe computer searches and services shall be charged for at 
the rates established in the Users Manual or Handbook published by the 
computer center at which the work will be performed. Where the rate has 
not been established, the rate shall be $27.00 per minute. Searches 
using computers other than mainframes shall be charged for at the manual 
search rate.
    (1) Other rates are published and may be examined at the following 
places:

Fort Collins Computer Center Users Manual
    Fort Collins Computer Center, U.S. Department of Agriculture, 3825 
East Mulberry Street (P.O. Box 1206), Fort Collins, Colo. 80521.
National Finance Center, Cost, Productivity & Analysis Section, U.S. 
          Department of Agriculture, 13800 Old Gentilly Road, New 
          Orleans, La. 70129.
Kansas City Computer Center Users Manual
    Kansas City Computer Center, U.S. Department of Agriculture, 8930 
Ward Parkway (P.O. Box 205), Kansas City, MO. 64141.
Washington Computer Center Users Handbook: Washington Computer Center, 
          U.S. Department of Agriculture, Room S-100, South Building, 
          12th Street and Independence Avenue, SW., Washington, DC 
          20250.
St. Louis Computer Center, U.S. Department of Agriculture, 1520 Market 
          Street, St. Louis, MO. 63103.

    (f) Charges for unsuccessful searches, or searches which fail to 
locate records or which locate records which are exempt from disclosure, 
shall be assessed at the same fee rate as searches which result in 
disclosure of records.
    (g) The fee for providing review services shall be the hourly salary 
rate (i.e., basic pay plus 16 percent) of the employee conducting the 
review to determine whether any information is exempt from mandatory 
disclosure.
    (h) The fee for Certifications shall be $5.00 each; Authentications 
under Department Seal (including aerial photographs), $10.00 each.
    (i) All other costs incurred by USDA agencies will be assessed the 
requester at the actual cost to the Government.
    (j) The fees specified in paragraphs (a) through (g) of this section 
apply to all requests for services under the FOIA, as amended (5 U.S.C. 
552), unless no fee is to be charged, or the agency has determined to 
waive or reduce those fees pursuant to section 6. No higher fees or 
charges in addition to those provided for in this schedule may be 
charged for services under the FOIA.
    (k) The fees specified in paragraphs (h) and (i) of this section and 
in section 17 of this schedule apply to requests for services other than 
those subject to the FOIA. The authority for establishment of these fees 
is at 31 U.S.C. 9701 (formerly 31 U.S.C. 483a) and other applicable 
laws.
    (l) Except as provided in section 11 of this appendix, for services 
not subject to the FOIA, and not covered by paragraph (h) of this 
section, agencies may set their own fees in accordance with applicable 
law.

[[Page 41]]

       Section 5. Levels of fees for each category of requesters.

    Under the FOIA, as amended, there are four categories of FOIA 
requesters: Commercial use requesters, educational and non-commercial 
scientific institutions; representatives of the news media; and all 
other requesters. The Act prescribes specific levels of fees for each 
category:
    (a) Commercial use requesters--For commercial use requesters, 
agencies shall assess charges which recover the full direct costs of 
searching for, reviewing for release, and duplicating the records 
sought. Commercial use requesters are not entitled to the free search 
time or duplication referenced in section 3(a). Agencies may recover the 
cost of searching for and reviewing records for commercial use 
requesters even if there is ultimately no disclosure of records.
    (1) A commercial use requester is defined as one who seeks 
information for a use or purpose that furthers the commercial, trade, or 
profit interests of the requester or the person on whose behalf the 
request is made.
    (2) In determining whether a requester properly belongs in this 
category, agencies must determine whether the requester will put the 
documents to a commercial use. Where an agency has reasonable cause to 
doubt the use to which a requester will put the records sought, or where 
that use is not clear from the request itself, the agency may seek 
additional clarification from the requester.
    (b) Educational and non-commercial scientific institution 
requesters--Fees for this category of requesters shall be limited to the 
cost of providing duplication service alone, minus the charge for the 
first 100 reproduced pages. No charge shall be made for search or review 
services. To qualify for this category, requesters must show that the 
request is being made as authorized by and under the auspices of an 
eligible institution and that the records are not sought for a 
commercial use, but are sought in furtherance of scholarly research (if 
the request is from an educational institution) or scientific research 
(if the request is from a non-commercial scientific institution).
    (1) The term educational institution refers to a preschool, a public 
or private elementary or secondary school, an institution of graduate 
higher education, an institution of undergraduate higher education, an 
institution of professional education, and an institution of vocational 
education, which operates a program or programs of scholarly research.
    (2) The term non-commercial scientific institution refers to 
institution that is not operated on a ``commercial'' (see section 
5(a)(1)) basis, and which is operated solely for the purpose of 
conducting scientific research the results of which are not intended to 
promote any particular product or industry.
    (c) Requesters who are representatives of the news media--Fees for 
this category of requesters shall also be limited to the cost of 
providing duplication service alone, minus the charge for the first 100 
reproduced pages. No charge shall be made for providing search or review 
services. Requests in this category must not be made for a commercial 
use.
    (1) The term representative of the news media refers to any person 
actively gathering news for an entity that is organized and operated to 
publish or broadcast news to the public.
    (2) The term news means information that is about current events or 
that would be of current interest to the public.
    (3) Examples of news media entities include television or radio 
stations broadcasting to the public at large, and publishers of 
periodicals which disseminate news and who make their products available 
for purchase or subscription by the general public.
    (4) Freelance journalists may be regarded as working for a news 
organization if they can demonstrate a solid basis for expecting 
publication through that organization, even though not actually employed 
by it.
    (d) All other requesters--Fees for requesters who do not fit into 
any of the above categories shall be assessed for the full reasonable 
direct cost of searching for and duplicating documents that are 
responsive to a request. No charge, however, shall be made to requesters 
in this category for: (1) The first 100 duplicated pages; or (2) the 
first two hours of manual search time, or the equivalent value of 
computer search time as defined in section 4(e).

                 Section 6. Fee waivers and reductions.

    (a) Agencies shall waive or reduce fees on requests for information 
if disclosure of the information is deemed to be in the public interest. 
A request is in the public interest if it is likely to contribute 
significantly to public understanding of the operations or activities of 
the government, and is not primarily in the commercial interest of the 
requester.
    (1) In determining when fees shall be waived or reduced, agencies 
should consider the following six factors:
    (i) The subject of the request, i.e., whether the subject of the 
requested records concerns ``the operations or activities of the 
government'';
    (ii) The informative value of the information to be disclosed, i.e., 
whether the disclosure is ``likely to contribute'' to an understanding 
of government operations or activities;
    (iii) The contribution to an understanding of the subject by the 
general public likely to result from disclosure, i.e., whether 
disclosure of the requested information will contribute to ``public 
understanding'';

[[Page 42]]

    (iv) The significance of the contribution to public understanding, 
i.e., whether the disclosure is likely to contribute ``significantly'' 
to public understanding of government operations or activities;
    (v) The existence and magnitude of a commercial interest, i.e., 
whether the requester has a commercial interest that would be furthered 
by the requested disclosure; and, if so,
    (vi) The primary interest in disclosure, i.e., whether the magnitude 
of the identified commercial interest of the requester is sufficiently 
large, in comparison with the public interest in disclosure, that 
disclosure is ``primarily in the commercial interest of the requester.''
    (2) An agency may, in its discretion, waive or reduce fees 
associated with a request for disclosure, regardless of whether a waiver 
or reduction has been requested, if the agency determines that 
disclosure will primarily benefit the general public.
    (3) Agencies may also waive or reduce fees under the following 
conditions:
    (i) Where the furnishings of information or a service without charge 
or at a reduced rate is an appropriate courtesy to a foreign country or 
international organization, or where comparable fees are set on a 
reciprocal basis with a foreign country or an international 
organization;
    (ii) Where the recipient is engaged in a nonprofit activity designed 
for the public safety, health, or welfare; or
    (iii) Where it is determined that payment of the full fee by a State 
or local government or nonprofit group would not be in the interest of 
the program involved.
    (4) Fees shall be waived, however, without discretion in all 
circumstances where the amount of the fee is $25.00 or less.

                Section 7. Restrictions regarding copies.

    (a) Agencies may restrict numbers of photocopies and directives 
furnished the public to one copy of each page. Copies of forms provided 
the public shall also be held to the minimum practical. Persons 
requiring any large quantities should be encouraged to take single 
copies to commercial sources for further appropriate reproduction.
    (b) Single or multiple copies of transcripts, provided to the 
Department under a reporting service contract, may be obtained by the 
public from the contractor at a cost not to exceed the cost per page 
charged to the Department for extra copies. The contractor may add a 
postage charge when mailing orders to the public, but no other charge 
may be added.

                Section 8. Payments of fees and charges.

    (a) Payments should be billed for to the fullest extent possible at 
the time the requested materials are furnished. Payments should be made 
by requesters within 30 days of the date of the billing.
    (b) Payments shall be made by check, draft, or money order made 
payable to the Treasury of the United States, although payments may be 
made in cash, particularly where services are performed in response to a 
visit to a Department office. All payments should be sent to the address 
indicated by the agency responding to the request.
    (c) Where the estimated fees to be charged exceed $250.00, agencies 
may require an advance payment of an amount up to the full estimated 
charges (but not less than 50 percent) from the requester before any of 
the requested materials are reproduced.
    (d) In instances where a requester has previously failed to pay a 
fee, an agency may require the requester to pay the full amount owed, 
plus any applicable interest as provided below, as well as the full 
estimated fee associated with any new request before the agency begins 
to process that new or subsequent request.

                      Section 9. Interest charges.

    On requests that result in fees being assessed, agencies may begin 
levying interest charges on an upaid bill starting on the 31st day 
following the day on which the billing was sent. Interest will be at the 
rate prescribed in section 3717 of title 31 U.S.C., and will accrue from 
the date of the billing.

         Section 10. Effect of the Debt Collection Act on fees.

    In attempting to collect fees levied under the FOIA, agencies shall 
abide by the provisions of 31 U.S.C. 3701, 3711-3719, in disclosing 
information to consumer reporting agencies and in the use of collection 
agencies, where appropriate, to encourage payment.

   Section 11. Photographic reproductions, microfilm, mosaic and maps.

    Reproduction of such aerial or other photographic microfilm, mosaic 
and maps as have been obtained in connection with the authorized work of 
the Department may be sold at the estimated cost of furnishing such 
reproduction as prescribed in this schedule.

     Section 12. Agencies which furnish photographic reproductions.

    (a) Aerial photographic reproductions. The following agencies of the 
Department furnish aerial photographic reproductions:

Agricultural Stabilization and Conservation Service (ASCS), APFO, USDA-
          ASCS, 2222 West 2300 South, P.O. Box 30010, Salt Lake City, 
          Utah 84125.
Soil Conservation Service (SCS), USDA, Cartographic Division, 
          Washington, DC 20250, or Cartographic Facility in nearest SCS 
          Technical Service Center.


[[Page 43]]


    (b) Other photographic reproductions. Other types of reproductions 
may be obtained from the following agencies of the Department:

Agricultural Stabilization and Conservation Service (ASCS) (Address 
          above).
Forest Service (FS), USDA, P.O. Box 96090, Washington, DC 20090-6090, or 
          nearest Forest Service Regional Office. Office of Governmental 
          and Public Affairs, USDA, Photography Division, Room 4407 
          South Building, Washington, DC 20250. Soil Conservation 
          Service, USDA, Information Division, Audio Visual Branch, 
          Washington, DC 20250.
National Agricultural Library, USDA, Office of the Deputy Director, 
          Technical Information Systems, Room 200, NAL Building, 
          Beltsville, MD 20705.

Section 13. Circumstances under which photographic reproductions may be 
                             provided free.

    Reproductions may be furnished free at the discretion of the agency, 
if it determines this action to be in the public interest, to:
    (a) Press, radio, television, and newsreel representatives for 
dissemination to the general public.
    (b) Agencies of State and local governments carrying on a function 
related to that of the Department when it will help to accomplish an 
objective of the Department.
    (c) Cooperators and others furthering agricultural programs. 
Generally, only one print of each photograph should be provided free.

                           Section 14. Loans.

    Aerial photographic film negatives or reproductions may not be 
loaned outside the Federal Government.

    Section 15. Sales of positive prints under government contracts.

    The annual contract for furnishing single and double frame slide 
film negatives and positive prints to agencies of the Department, County 
Extension Agents, and others cooperating with the Department, carries a 
stipulation that the successful bidder must agree to furnish slide film 
positive prints to such persons, organizations, and associations as may 
be authorized by the Department to purchase them.

               Section 16. Procedure for handling orders.

    In order to expedite handling, all orders should contain adequate 
identifying information. Agencies furnishing aerial photographic 
reproductions require that all such orders identify the photographs. 
Each agency has its own procedure and order forms.

                    Section 17. Reproduction prices.

    The prices for reproductions listed here are for the most generally 
requested items.
    (a) National Agricultural Library. The following prices are 
applicable to National Agricultural Library items only: Reproduction of 
electrostatic, microfilm, and microfiche copy--$5.00 for the first 10 
pages or fraction thereof, and $3.00 for each additional 10 pages or 
fraction thereof. Duplication of NAL-owned microfilm--$10.00 per reel. 
Duplication of NAL-owned microfiche--$5.00 for the first fiche, and 
$0.50 for each additional fiche. Charges for manual and automated data 
base searches for bibliographic or other research information will be 
made in accordance with section 4, paragraphs (c)-(e) of this fee 
schedule. The contract rate charged by the commercial source to the 
National Agricultural Library for computer services is available at the 
National Agricultural Library, Room 111, Information Access Division, 
USDA, Beltsville, Maryland 20705 (301-344-3834).
    (b) General photographic reproductions. Minimum charge $1 per order. 
An extra charge may be necessary for excessive laboratory time caused by 
any special instructions from the purchaser.

------------------------------------------------------------------------
                     Class of work and unit                        Price
------------------------------------------------------------------------
1. Black and white line negatives:                                      
    4 by 5 (each................................................   $6.00
    8 by 10 (each)..............................................    8.50
    11 by 14 (each).............................................   11.00
2. Black and white continuous tone negatives:                           
    4 by 5 (each)...............................................    8.50
    8 by 10 (each)..............................................   11.00
3. Black and white enlargements: 8 by 10 and smaller (each).....    6.50
    11 by 14 (each).............................................   11.00
    Larger sizes and quantities.................................   (\1\)
4. Black and white slides:                                              
    2 x 2 cardboard mounted (from copy negative) (each).........    4.00
    Blue ozalid slides (each)...................................    5.00
5. Color slides: (2 x 2 cardboard mounted):                             
    Duplicate color slides:                                             
        Display quality (each) (Display color slides are slides         
         copied from 35mm color slides only)....................     .65
        Repro quality (each)....................................   (\1\)
        Original color slides (from flat copy) (each)...........    6.50
6. Color enlargements and transparencies: 4 by 5 and larger.....   (\1\)
7. Slide sets:                                                          
    1 to 50 frames..............................................   14.50
    51 to 60 frames.............................................   16.50
    61 to 75 frames.............................................   18.50
    76 to 95 frames.............................................   21.50
    96 to 105 frames............................................   23.00
    106 to 130 frames (Prices include printed narrative guide)..   26.50
8. Cassettes: (for the corresponding slide sets above)..........    3.00
------------------------------------------------------------------------
\1\ By quotation.                                                       

    (c) General aerial photographic reproductions. There is no minimum 
charge on general aerial photography orders. The prices for various 
types of aerial photographic reproductions are set forth below. Size 
measurements refer to the approximate size in inches of the paper 
required to produce the print.

[[Page 44]]



------------------------------------------------------------------------
                                                                   Price
                              Size                                 each 
------------------------------------------------------------------------
1. Black-and white contact prints:                                      
    10 x 10 paper...............................................   $3.00
    10 x 10 Diapositive (film)..................................   10.00
    10 x 10 Copy negative.......................................    4.00
2. Aerial photo index sheets:                                           
    20  x  24 RC (resin coated base) paper......................    5.00
    24 x 36 Ozalid..............................................    4.00
    Microfilm (photo indexes):                                          
        Aperture cards..........................................    1.00
        Microfiche..............................................    2.00
------------------------------------------------------------------------


------------------------------------------------------------------------
                                                         Price each     
                                                   ---------------------
                       Size                                  Color film 
                                                      RC      positive  
                                                     paper  transparency
------------------------------------------------------------------------
3. Black and white enlargements (projection                             
 prints):                                                               
    12 x 12.......................................   $8.00      $12.00  
    17 x 17.......................................   10.00       14.00  
    20 x 20.......................................   11.00  ............
    24 x 24.......................................   12.00       20.00  
    30 x 30.......................................   18.00       25.00  
    38 x 38.......................................   25.00       35.00  
4. Reproductions from color negative:                                   
    10 x 10 contact...............................    4.00       15.00  
    12 x 12 enlargement...........................   20.00  ............
    20 x 20 enlargement...........................   25.00  ............
    24 x 24 enlargement...........................   30.00  ............
    30 x 30 enlargement...........................   40.00  ............
    38 x 38 enlargement...........................   45.00  ............
------------------------------------------------------------------------


------------------------------------------------------------------------
                                                         Price each     
                                                   ---------------------
                       Size                                  Color film 
                                                      RC      positive  
                                                     paper  transparency
------------------------------------------------------------------------
5. Reproductions from color positive                                    
 transparencies (natural) color or color                                
 infrared):                                                             
    10 x 10 contact...............................   $8.00      $12.00  
    12 x 12 enlargement...........................   25.00  ............
    20 x 20 enlargement...........................   30.00  ............
    24 x 24 enlargement...........................   35.00  ............
    30 x 30 enlargement...........................   45.00  ............
    38 x 38 enlargement...........................   50.00  ............
------------------------------------------------------------------------

    (d) Aerial photographic reproduction from National High Altitude 
Photography (NHAP) Program. There is no minimum charge on NHAP aerial 
photography orders. The prices for various types of aerial photographic 
reproductions are set forth below. Size measurements refer to the 
appropriate size in inches of the paper required to produce the 
Phoprint.

------------------------------------------------------------------------
                                                                   Price
                              Size                                 each 
------------------------------------------------------------------------
1. Black and white contact prints:                                      
    10 x 10 paper...............................................   $6.00
    10 x 10 diapositive.........................................   15.00
    10 x 10 negative............................................    8.00
2. Aerial photo index sheets:                                           
    20 x 24 RC (resin coated base paper)........................    5.00
    24 x 36 Ozalid..............................................    4.00
    Microfilm (photo indexes):                                          
        Aperture Cards..........................................    1.00
        Microfiche..............................................    2.00
------------------------------------------------------------------------


------------------------------------------------------------------------
                                                         Price each     
                                                  ----------------------
                       Size                                     Film    
                                                      RC      positive  
                                                    paper   transparency
------------------------------------------------------------------------
3. Black and white enlargements (projection                             
 prints):                                                               
    12 x 12......................................   $14.00      $22.00  
    17 x 10......................................    17.00       24.00  
    20 x 20......................................    18.00  ............
    24 x 24......................................    20.00       30.00  
    30 x 30......................................    27.00       35.00  
    38 x 38......................................    33.00       45.00  
------------------------------------------------------------------------

      

------------------------------------------------------------------------
                                                         Price each     
                                                  ----------------------
                       Size                                  Color film 
                                                      RC      positive  
                                                    paper   transparency
------------------------------------------------------------------------
4. Reproductions from color positive                                    
 transparencies:                                                        
    10 x 10 contact..............................   $16.00      $24.00  
    12 x 12 enlargements.........................    40.00  ............
    20 x 20 enlargements.........................    45.00  ............
    24 x 24 enlargements.........................    49.00  ............
    30 x 30 enlargements.........................    58.00  ............
    38 x 38 enlargements.........................    65.00  ............
------------------------------------------------------------------------

    (e) Special need. For special needs not covered above, persons 
desiring aerial photographic reproductions should contact the agency 
listed in section 12(a) or the Departmental aerial photography 
coordinator, Aerial Photography Field Office, USDA-ASCS, 2222 West, 2300 
South, P.O. Box 30010, Salt Lake City, Utah 84130.
    (f) Audio and videotape reproductions. For reproductions of audio-
videotapes, requesters must supply their own recording tape, and will be 
assessed a fee of $25.00 an hour for copying work requested. There is a 
one-hour minimum charge. Payment is required at the time video or 
audiotapes are accepted by the requester.

[[Page 45]]



                   Subpart B--Departmental Proceedings



Sec. 1.26   Representation before the Department of Agriculture.

    (a) Applicability. This section applies to all hearings and other 
proceedings before the Department of Agriculture, except to the extent 
that any other regulation of the Department may specifically make this 
section, or any part of this section, inapplicable as to particular 
hearings or other proceedings.
    (b) Administrative provisions. (1) In any hearing or other 
proceeding before the Department of Agriculture, the parties may appear 
in person or by counsel or other representative. Persons who appear as 
counsel or in a representative capacity in any hearing or proceeding 
must conform to the standards of ethical conduct required of 
practitioners before the U.S. District Court for the District of 
Columbia, and to any applicable standards of ethical conduct established 
by statutes, executive orders and regulations.
    (2) Whenever the Secretary finds, after notice and opportunity for 
hearing, that a person who is acting or has acted as counsel or 
representative in any hearing or other proceeding before the Department 
has not conformed to any such standards of ethical conduct, the 
Secretary may order that such person be precluded from acting as counsel 
or representative in any hearing or other proceeding before the 
Department for such period of time as the Secretary deems warranted. 
Whenever the Secretary has probable cause to believe that any person who 
is acting or has acted as counsel or representative in any such hearing 
or other proceeding has not conformed to any such standards of ethical 
conduct, the Secretary may, by written notice to such person, suspend 
the person from acting as such a counsel or representative pending 
completion of the procedures specified in the preceding sentence.
    (3) No employee or former employee of the Department shall be 
permitted to represent any person before the Department in connection 
with any particular matter as to which by reason of employment with the 
Department the employee or former employee acquired personal knowledge 
of such a nature that it would be improper, unethical, or contrary to 
the public interest for the employee or former employee so to act.
    (4) This section shall not be construed to prevent an employee or 
former employee of the Department from appearing as a witness in any 
hearing or other proceeding before the Department.

(18 U.S.C. 203, 205, 207)

[32 FR 5458, Apr. 1, 1967, as amended at 60 FR 66480, Dec. 22, 1995]



Sec. 1.27   Rulemaking and other notice procedures.

    (a) This section shall apply to:
    (1) Notices of proposed rulemaking;
    (2) Interim final rules;
    (3) Advance notices of proposed rulemaking; and
    (4) Any other published notice that solicits, or affords interested 
members of the public an opportunity to submit, written views with 
respect to any proposed action relating to any program administered in 
the Department regardless of the fact that the issuance of a rule may 
not be contemplated.
    (b) Each notice identified in paragraph (a) of this section shall 
indicate the procedure to be followed with respect to the notice, unless 
the procedure is prescribed by statute or by published rule of the 
Department. Each notice shall contain a statement that advises the 
public of the policy regarding the availability of written submissions 
by indicating whether paragraph (c), (d), or (e) of this section is 
applicable to written submissions made pursuant to the notice.
    (c) All written submissions made pursuant to the notice shall be 
made available for public inspection at times and places and in a manner 
convenient to the public business.
    (d)(1) Any written submission, pursuant to a notice, may be held 
confidential if the person making the submission requests that the 
submission be held confidential, the person making the submission has 
shown that the written submission may be withheld under the Freedom of 
Information Act, and the Department official authorized to issue the 
notice determines that the submission may be withheld under the Freedom 
of Information Act.

[[Page 46]]

    (2) If a request is made in accordance with paragraph (d)(1) of this 
section for confidential treatment of a written submission, the person 
making the request shall be informed promptly in the event the request 
is denied and afforded an opportunity to withdraw the submission.
    (3) If a determination is made to grant a request for confidential 
treatment under paragraph (d)(1) of this section, a statement of the 
specific basis for the determination that will not be susceptible of 
identifying the person making the request will be made available for 
public inspection.
    (e) If the subject of the notice is such that meaningful submissions 
cannot be expected unless they disclose information that may be withheld 
under the Freedom of Information Act, the notice shall so indicate and 
contain a statement that written submissions pursuant to the notice will 
be treated as confidential and withheld under the Freedom of Information 
Act. Provided, That the policy regarding availability of written 
submissions set forth in this paragraph may only be used with the prior 
approval of the Secretary, or the Under Secretary or Assistant Secretary 
that administers the program that is the subject of the notice.

[60 FR 66480, Dec. 22, 1995]



Sec. 1.28   Petitions.

    Petitions by interested persons in accordance with 5 U.S.C. 553(e) 
for the issuance, amendment or repeal of a rule may be filed with the 
official that issued or is authorized to issue the rule. All such 
petitions will be given prompt consideration and petitioners will be 
notified promptly of the disposition made of their petitions.

[11 FR 177A-233, Sept. 11, 1946. Redesignated at 13 FR 6703, Nov. 16, 
1948, as amended at 60 FR 66481, Dec. 22, 1995]



Sec. 1.29   Subpoenas relating to investigations under statutes administered by the Secretary of Agriculture.

    (a) Issuance of subpoena. (1) When the Secretary is authorized by 
statute to issue a subpoena in connection with an investigation being 
conducted by the Department, the attendance of a witness and the 
production of evidence relating to the investigation may be required by 
subpoena at any designated place, including the witness' place of 
business. Upon request of any representative of the Secretary involved 
in connection with the investigation, the subpoena may be issued by the 
Secretary, the Inspector General, or any Department official authorized 
pursuant to part 2 of this title to administer the program to which the 
subpoena relates, if the official who is to issue the subpoena is 
satisfied as to the reasonableness of the grounds, necessity, and scope 
of the subpoena. Except as provided in paragraph (a)(2) of this section, 
the authority to issue subpoenas may not be delegated or redelegated by 
the head of an agency.
    (2) The Administrator, Grain Inspection, Packers and Stockyards 
Administration, may delegate the authority to issue subpoenas in 
connection with investigations being conducted under the Packers and 
Stockyards Act (7 U.S.C. 181-229), to the Deputy Administrator, Packers 
and Stockyards Programs.
    (b) Service of subpoena. (1) A subpoena issued pursuant to this 
section may be served by:
    (i) A U.S. Marshal or Deputy Marshal,
    (ii) Any other person who is not less than 18 years of age, or
    (iii) Certified or registered mailing of a copy of the subpoena 
addressed to the person to be served at his, her, or its last known 
residence or principal place of business or residence.
    (2) Proof of service may be made by the return of service on the 
subpoena by the U.S. Marshal, or Deputy Marshal; or, if served by an 
individual other than a U.S. Marshal or Deputy Marshal, by an affidavit 
or certification of such person stating that he or she personally served 
a copy of the subpoena upon the person named in the subpoena; or, if 
service was by certified or registered mail, by the signed Postal 
Service receipt.
    (3) In making personal service, the person making service shall 
leave a copy of the subpoena with the person subpoenaed; and the 
original, bearing or accompanied by the required proof

[[Page 47]]

of service, shall be returned to the official who issued the subpoena.

[39 FR 15277, May 2, 1974, as amended at 40 FR 58281, Dec. 16, 1975; 42 
FR 65131, Dec. 30, 1977; 43 FR 12673, Mar. 27, 1978; 60 FR 66481, Dec. 
22, 1995]



                     Subpart C--Judicial Proceedings



Sec. 1.41   Service of process.

    Process in any suit brought in Washington, District of Columbia, 
against the United States or any officer of the U.S. Department of 
Agriculture in any matter involving the activities of this Department, 
shall be served on the General Counsel of the Department. A U.S. Marshal 
or other process server attempting to serve process in such a suit on 
any officer of the Department shall be referred to the Office of the 
General Counsel, in order that service of process may be made. In the 
event an officer of the Department of Agriculture is served with process 
in such a suit, the officer shall immediately notify the General 
Counsel. Any subpoena, summons, or other compulsory process requiring an 
officer or employee to give testimony, or to produce or disclose any 
record or material of the U.S. Department of Agriculture, shall be 
served on the officer or employee of the U.S. Department of Agriculture 
named in the subpoena, summons, or other compulsory process.

[19 FR 4052, July 3, 1954, as amended at 33 FR 10273, July 18, 1968; 43 
FR 6202, Feb. 14, 1978; 60 FR 66481, Dec. 22, 1995]



                            Subpart D--Claims



Sec. 1.51  Claims based on negligence, wrongful act or omission.

    (a) Authority of the Department. Under the provisions of the Federal 
Tort Claims Act (FTCA), as amended, 28 U.S.C. 2671-2680, and the 
regulations issued by the Department of Justice (DOJ) contained in 28 
CFR part 14, the United States Department of Agriculture (USDA) may, 
subject to the provisions of the FTCA and DOJ regulations, consider, 
ascertain, adjust, determine, compromise, and settle claims for money 
damages against the United States for personal injury, death, or 
property loss or damage caused by the negligent or wrongful act or 
omission of any employee of USDA while acting within the scope of his or 
her office or employment, under circumstances where the United States, 
if it were a private person, would be liable, in accordance with the law 
of the place where the act or omission occurred.
    (b) Procedure for filing claims. Claims must be presented by the 
claimant, or by his or her duly authorized agent or legal representative 
as specified in 28 CFR 14.3. Standard Form 95, Claim for Damage or 
Injury, may be obtained from the agency within USDA that employs the 
employee who allegedly committed the negligent or wrongful act or 
omission. The completed claim form, together with appropriate evidence 
and information, as specified in 28 CFR 14.4, shall be filed with the 
agency from which it was obtained.
    (c) Determination of claims--(1) Delegation of authority to 
determine claims. The General Counsel, and such employees of the Office 
of the General Counsel as may be designated by the General Counsel, are 
hereby authorized to consider, ascertain, adjust, determine, compromise, 
and settle claims pursuant to the FTCA, as amended, and the regulations 
contained in 28 CFR part 14 and in this section.
    (2) Disallowance of claims. If a claim is denied, the General 
Counsel, or his or here designee, shall notify the claimant, or his or 
her duly authorized agent or legal representative.

[61 FR 57577, Nov. 7, 1996]



          Subpart E--Cooperative Production of Television Films

    Source: 22 FR 2904, Apr. 25, 1957, unless otherwise noted.



Sec. 1.71   Purpose.

    This subpart establishes procedures for developing special working 
relationships with the Department of Agriculture requested by producers 
of films for television use. These procedures are designed to guide 
Department employees and producers of commercial television pictures in 
entering into such arrangements.

[[Page 48]]



Sec. 1.72   Policy.

    (a) General. It is a basic policy of the Department of Agriculture 
to make information freely available to the public.
    (b) Cooperation with television film producers. The Department 
recognizes that its people and programs constitute a rich source of 
materials on public services, often dramatic and interesting for their 
human values, which are suitable for production of films for television 
showings. The Department welcomes the interest of television film 
producers in its activities and maintains an ``open door'' policy with 
respect to the availability of factual information to such producers, as 
it does to representatives of other media. As its resources will permit, 
the Department will work with producers at their request, to assure 
technical accuracy of scripts and story treatments.
    (c) Special working relationships. In those instances where a 
producer of films for television seeks special Department participation 
such as the use of official insignia of the Department, or who request 
special assistance such as the services of technical advisors, use of 
Government equipment and similar aids which require a material 
expenditure of public funds, and where the proposed film will further 
the public service of the Department, the Department will consider 
entering into a special working relationship with such producer.
    (d) News film reporting exempted. Television and news film reporting 
of Department activities is not covered by this subpart.



Sec. 1.73   Responsibility.

    The Director of Information or his designee will be the authority 
for the approval of special working relationships on the part of the 
Department of Agriculture and its agencies. The Director or his designee 
shall not commit the Department to such special arrangements without 
proper concurrence and coordination with interested agencies and 
approval by the appropriate Assistant Secretary or Group Director.



Sec. 1.74   Basis for special working relationships.

    The Department and its agencies may lend special assistance on 
television films when it is clearly evident that public interests are 
served. Where special assistance is sought, an individual cooperative 
agreement will be drawn up between the Department with the Director of 
Information as its agent, and the producer. Details on such assistance 
as reviewing stories and scripts, loan of material, arrangements for 
locations, use of official motion picture footage, assignment of 
technical advisors and similar aids will be covered in the agreement, 
which shall delineate the general stipulations listed in Sec. 1.75.



Sec. 1.75   General stipulations.

    In requesting special working arrangements the producer must agree 
to the following stipulations:
    (a) The producer must show that he has legal authority to the 
literary property concerned.
    (b) The producer must show access to a distribution channel 
recognized by the motion picture or television industry. In lieu of 
complete distribution plans for a television series, a producer must 
produce satisfactory evidence of financial responsibility (showing 
financial resources adequate for the defrayment of costs for the 
proposed undertaking).
    (c) The commercial advertising of any show produced, using oral or 
written rights granted to the producer, shall not indicate any 
endorsement, either direct or implied, by the U.S. Department of 
Agriculture or its agencies, of the sponsor's product.
    (d) Commercial sponsorship shall be only by a person, firm, or 
corporation acceptable under the terms of the 1954 Television Code of 
the National Association of Radio and Television Broadcasters, and all 
subsequent amendments thereto. Political sponsorship shall not be 
permitted.
    (e) That no production costs shall be chargeable to the U.S. 
Department of Agriculture.
    (f) That such cooperation will not interfere with the conduct of 
Department programs.

[[Page 49]]

    (g) All damages, losses and personal liability incurred by producer 
will be his responsibility.
    (h) That mutual understanding and agreement will be reached upon 
story, script and film treatment with the Department before film 
production is begun.



Sec. 1.76   Department cooperation.

    When the producer agrees to meet the above stipulations to the 
satisfaction of the Director of Information, the U.S. Department of 
Agriculture and its agencies will be available for consultation on story 
ideas and give guidance through the services of a technical advisor to 
insure technical authenticity. Equipment, locations, and personnel will 
be available to the extent that such availability is concurrent with 
normal and usual conduct of the operations of the Department. The 
Department will check and work with the cooperators to arrange shooting 
schedules in order to avoid interferences with working schedules.



Sec. 1.77   Assignment of priorities.

    (a) Authority. (1) The Director of Information or his designee will 
make assignment of priorities for the U.S. Department of Agriculture for 
a television film company's and/or individual producer's story treatment 
of the subject matter, but no such priority shall limit use of the 
subject matter itself.
    (2) A priority will be given in writing upon acceptance in writing 
by the producer of the stipulations in Sec. 1.75(b). The U.S. Department 
of Agriculture will hold the producer's treatment of the story material 
in confidence until the producer has made a public release pertaining to 
the subject.
    (b) Time and scope. A priority will be given on the producer's story 
treatment for an agreed upon period of time. Requests for cooperation 
with similar or conflicting ideas and backgrounds will be considered 
only after holder of the first priority has used the agreed upon time to 
develop the materials.
    (1) Details on priorities will be written into the agreements.
    (2) The Director of Information will retain the right to cancel 
priorities when the producer at any stage violates the provisions of the 
regulations or of a particular agreement, or when public interest is no 
longer served.
    (3) No priority will be canceled until the producer has had an 
opportunity to appear before the Secretary of Agriculture or his 
designee.



Sec. 1.78   Development of special working relationships.

    (a) Preliminary. Prior to the submittal of a script or the rendering 
of an agreement, assistance may be given by the Department or one of its 
agencies in outlining story plans, visits to field points, and other 
incidentals that will assist the producer in determining his course of 
action.
    (b) Request for special working arrangements. Once the decision is 
made to go ahead with an agreement, either the interested agency or the 
producer will make a written submission to the Director of Information, 
requesting that special working arrangements be established.
    (1) In submitting scripts prior or subsequent to executing a written 
agreement under a special working relationship four (4) copies of the 
completed script shall be submitted to the Director of Information or 
his designee, along with a statement of specific requirements and the 
anticipated production schedule.
    (2) No script will be used under a special working relationship 
without the specific approval of the Director of Information.
    (3) Upon approval of the script, the agency of the Department 
concerned with subject matter will endeavor to arrange for the desired 
assistance with the stipulations of this policy.



Sec. 1.79   Credits.

    On films on which the Department or one of its agencies provides 
special assistance it shall be mutually agreed by the producer and the 
Director of Information what credits shall be given to the Department, 
and the form these credits will take.



                   Subpart G--Privacy Act Regulations

    Authority: 5 U.S.C. 552a.

    Source: 40 FR 39519, Aug. 28, 1975, unless otherwise noted.

[[Page 50]]



Sec. 1.110  Purpose and scope.

    This subpart contains the regulations of the U.S. Department of 
Agriculture (USDA) implementing the Privacy Act of 1974 (5 U.S.C. 552a). 
It sets forth the basic responsibilities of each agency of USDA with 
regard to USDA's compliance with the requirements of the Act, and offers 
guidance to members of the public who wish to exercise any of the rights 
established by the Act with regard to records maintained by an agency of 
USDA.



Sec. 1.111  Definitions.

    For purposes of this subpart the terms individual, maintain, record, 
system of records, statistical record, and routine use shall have the 
meanings set forth in 5 U.S.C. 552a(a). The term agency shall mean an 
agency of USDA, unless otherwise indicated.



Sec. 1.112  Procedures for requests pertaining to individual records in a record system.

    (a) Any individual who wishes to be notified if a system of records 
maintained by an agency contains any record pertaining to him, or to 
request access to such records, shall submit a written request in 
accordance with the instructions set forth in the system notice for that 
system of records. This request shall include:
    (1) The name of the individual making the request;
    (2) The name of the system of records (as set forth in the system 
notice to which the request relates);
    (3) Any other information specified in the system notice; and
    (4) When the request is one for access, a statement as to whether 
the requester desires to make a personal inspection of the records, or 
be supplied with copies by mail.
    (b) Any individual whose request under paragraph (a) of this section 
is denied may appeal that denial to the head of the agency which 
maintains the system of records to which the request relates.
    (c) In the event that an appeal under paragraph (b) of this section 
is denied, the requester may bring a civil action in federal district 
court to seek review of the denial.



Sec. 1.113  Times, places, and requirements for identification of individuals making requests.

    (a) If an individual submitting a request for access under 
Sec. 1.112 has asked that an agency authorize a personal inspection of 
records pertaining to him, and the agency has granted that request, the 
requester shall present himself at the time and place specified in the 
agency's response or arrange another, mutually convenient, time with the 
appropriate agency official.
    (b) Prior to inspection of the records, the requester shall present 
sufficient identification (e.g., driver's license, employee 
identification card, social security card, credit cards) to establish 
that he is the individual to whom the records pertain. If the requester 
is unable to provide such identification, he shall complete and sign in 
the presence of an agency official a signed statement asserting his 
identity and stipulating that he understands that knowingly or willfully 
seeking or obtaining access to records about another individual under 
false pretenses is a misdemeanor punishable by fine up to $5,000. No 
identification shall be required, however, when the records are ones 
whose disclosure is required by 5 U.S.C. 552.
    (c) Any individual who has requested access to records about him via 
personal inspection, and who wishes to have another person or persons 
accompany him during this inspection, shall submit a written statement 
authorizing disclosure of the record in their presence.
    (d) Any individual having made a personal inspection of records 
pertaining to him may request the agency to provide him copies of those 
records or any portion thereof. Each agency shall grant such requests 
but may charge fees in accordance with Sec. 1.120.
    (e) If an individual submitting a request for access under 
Sec. 1.112 wishes to be supplied with copies of the records by mail, he 
shall include with his request sufficient data for the agency to verify 
his identity. If the sensitivity of the records warrant it, however, the 
agency to which the request is directed may require the requester to 
submit a signed, notarized statement indicating that he is the 
individual to whom the

[[Page 51]]

records pertain and stipulating he understands that knowingly or 
willfully seeking or obtaining access to records about another 
individual under false pretenses is a misdemeanor punishable by fine up 
to $5,000. No identification shall be required, however, when the 
records are ones whose disclosure is required by 5 U.S.C. 552. If the 
agency to which this request is directed determines to grant the 
requested access, it may charge fees in accordance with Sec. 1.120 
before making the necessary copies.



Sec. 1.114  Disclosure of requested information to individuals.

    (a) Any agency which receives a request or appeal under Sec. 1.112 
should acknowledge the request or appeal within 10 days of its receipt 
(excluding Saturdays, Sundays, and legal public holidays). Wherever 
practicable, the acknowledgment should indicate whether or not access 
will be granted and, if so, when and where. When access is to be 
granted, the agency should provide the access within 30 days of receipt 
of the request or appeal (excluding Saturdays, Sundays and legal public 
holidays) unless, for good cause shown, it is unable to do so. If the 
agency is unable to meet this deadline, it shall inform the requester of 
this fact, the reasons for its inability to do so, and an estimate of 
the date on which access will be granted.
    (b) Nothing in 5 U.S.C. 552a or this subpart shall be interpreted to 
require that an individual making a request under Sec. 1.112 be granted 
access to the physical record itself. The form in which a record is kept 
(e.g., on magnetic tape), or the content of the record (e.g., a record 
indexed under the name of the requester may contain records which are 
not about the requester) may require that the record be edited or 
translated in some manner. Neither of these procedures may be utilized, 
however, to withhold information in a record about the requester.
    (c) No agency shall deny any request under Sec. 1.112 for 
information concerning the existence of records about the requester in 
any system of records it maintains, or deny any request for access to 
records about the requester in any system of records it maintains, 
unless that system is exempted from the requirements of 5 U.S.C. 552a(d) 
in Sec. 1.123.
    (d) If any agency receives a request pursuant to Sec. 1.112(a) for 
access to records in a system of records it maintains which is so 
exempted, the system manager shall determine if the exemption is to be 
asserted. If he determines to deny the request, he shall inform the 
requester of that determination, the reason for the determination, and 
the title and address of the agency head to whom the denial can be 
appealed.
    (e) If the head of an agency determines that an appeal pursuant to 
Sec. 1.112(b) is to be denied, he shall inform the requester of that 
determination, the reason therefor, and his right under 5 U.S.C. 552a(g) 
to seek judicial review of the denial in Federal district court.
    (f) Nothing in 5 U.S.C. 552a or this subpart shall allow an 
individual access to any information compiled in reasonable anticipation 
of a civil action or proceeding.



Sec. 1.115  Special procedures: medical records.

    In the event an agency receives a request pursuant to Sec. 1.112 for 
access to medical records (including psychological records) whose 
disclosure it determines would be harmful to the individual to whom they 
relate, it may refuse to disclose the records directly to the requester 
but shall transmit them to a doctor designated by that individual.



Sec. 1.116  Request for correction or amendment to record.

    (a) Any individual who wishes to request correction or amendment of 
any record pertaining to him contained in a system of records maintained 
by an agency shall submit that request in writing in accordance with the 
instructions set forth in the system notice for that system of records. 
This request shall include:
    (1) The name of the individual making the request;
    (2) The name of the system of records (as set forth in the system 
notice to which the request relates);
    (3) A description of the nature (e.g., modification, addition or 
deletion) and

[[Page 52]]

substance of the correction or amendment requested; and
    (4) Any other information specified in the system notice.
    (b) Any individual submitting a request pursuant to paragraph (a) of 
this section shall include sufficient information in support of that 
request to allow the agency to which it is addressed to apply the 
standards set forth in 5 U.S.C. 552(e)(1) and (5).
    (c) Any individual whose request under paragraph (a) of this section 
is denied may appeal that denial to the head of the agency which 
maintains the system of records to which the request relates.
    (d) In the event that an appeal under paragraph (c) of this section 
is denied, the requester may bring a civil action in federal district 
court to seek review of the denial.



Sec. 1.117  Agency review of request for correction or amendment of record.

    (a) Any agency which receives a request for amendment or correction 
under Sec. 1.116 shall acknowledge that request within 10 days of its 
receipt (excluding Saturdays, Sundays and legal public holidays). It 
shall also promptly, either:
    (1) Make any correction, deletion or addition with regard to any 
portion of a record which the requester believes is not accurate, 
relevant, timely or complete; or
    (2) Inform the requester of its refusal to amend the record in 
accordance with his request; the reason for the refusal; the procedures 
whereby he can appeal the refusal to the head of the agency; and the 
title and business address of that official. If the agency informs the 
requester of its determination within the 10-day deadline, a separate 
acknowledgement is not required.
    (b) If an agency is unable to comply with either paragraphs (a)(1) 
or (2) of this section within 30 days of its receipt of a request for 
correction or amendment, (excluding Saturdays, Sundays and legal public 
holidays), it should inform the requester of that fact, the reasons 
therefor, and the approximate date on which a determination will be 
reached.
    (c) In conducting its review of a request for correction or 
amendment, each agency shall be guided by the requirements of 5 U.S.C. 
552a(e)(1) and (5).
    (d) If an agency determines to grant all or any portion of a request 
for correction or amendment, it shall:
    (1) Advise the individual of that determination;
    (2) Make the requested correction or amendment; and
    (3) Inform any person or agency outside USDA to whom the record has 
been disclosed, and where an accounting of that disclosure is maintained 
in accordance with 5 U.S.C. 552a(c), of the occurrence and substance of 
the correction or amendments.
    (e) If an agency determines not to grant all or any portion of a 
request for correction or amendment, it shall:
    (1) Comply with paragraph (d) of this section with regard to any 
correction or amendment which is made;
    (2) Advise the requester of its determination and the reasons 
therefor;
    (3) Inform the requester that he may appeal this determination to 
the head of the agency which maintains the system of records; and
    (4) Describe the procedures for making such an appeal, including the 
title and business address of the official to whom the appeal is to be 
addressed.
    (f) In the event that an agency receives a notice of correction or 
amendment to information in a record contained in a system of records 
which it maintains, it shall comply with paragraphs (d)(2) and (3) of 
this section in the same manner as if it had made the correction or 
amendment itself.



Sec. 1.118  Appeal of initial adverse agency determination on correction or amendment.

    (a) Any individual whose request for correction or amendment under 
Sec. 1.116 is denied, and who wishes to appeal that denial, shall 
address such appeal to the head of the agency which maintains the system 
of records to which the request relates, in accordance with the 
procedures set forth in the agency's initial denial of the request.
    (b) The head of each agency shall make a final determination with 
regard to an appeal submitted under paragraph (a) of this section not 
later than 30 days (excluding Saturdays,

[[Page 53]]

Sundays, and legal public holidays) from the date on which the 
individual requests a review, unless, for good cause shown, the head of 
the agency extends this 30-day period and so notifies the requester, 
together with an estimate of the date on which a final determination 
will be made. Such extension should be utilized only in exceptional 
circumstances and should not normally exceed 30 days. The delegation of 
authority set forth in this paragraph may not be redelegated.
    (c) In conducting his review of an appeal submitted under paragraph 
(a) of this section, the head of an agency shall be guided by the 
requirements of 5 U.S.C. 552a(e)(1) and (5).
    (d) If the head of an agency determines to grant all or any portion 
of an appeal submitted under paragraph (a) of this section, he shall 
inform the requester and the agency shall comply with the procedures set 
forth in Sec. 1.117(d)(2) and (d)(3).
    (e) If the head of an agency determines in accordance with paragraph 
(c) of this section not to grant all or any portion of an appeal 
submitted under paragraph (a) of this section, he shall inform the 
requester:
    (1) Of this determination and the reasons therefore;
    (2) Of the requester's right to file a concise statement of his 
reasons for disagreeing with the agency's decision;
    (3) Of the procedures for filing such a statement of disagreement;
    (4) That such statements of disagreements will be made available to 
anyone to whom the record is subsequently disclosed, together with (if 
the agency deems it appropriate) a brief statement by the agency 
summarizing its reasons for refusing to amend the record;
    (5) That prior recipients of the disputed record will be provided 
with a copy of the statement of disagreement, together with (if the 
agency deems it appropriate) a brief statement of the agency's reasons 
for refusing to amend the record, to the extent that an accounting of 
disclosures is maintained under 5 U.S.C. 552a(c); and
    (6) Of the requester's right to seek judicial review of the agency's 
determination in accordance with 5 U.S.C. 552a(g). The agency shall 
insure that any statements of disagreement submitted by a requester are 
handled in accordance with paragraphs (e)(4) and (5) of this section.



Sec. 1.119  Disclosure of record to person other than the individual to whom it pertains.

    No agency shall disclose any record which is contained in a system 
of records it maintains, by any means of communication to any person, or 
to another agency outside USDA, except pursuant to a written request by, 
or with the prior written consent of, the individual to whom the record 
pertains, unless the disclosure is authorized by one or more provisions 
of 5 U.S.C. 552a(b).



Sec. 1.120  Fees.

    Any agency which provides copies of records pursuant to a request 
under this subpart may charge fees for the direct costs of producing 
such copies in accordance with appendix A to subpart A of this part. No 
agency, however, shall charge any fee for searches necessary to locate 
records. Nor shall an agency charge any fees for copies or searches, 
when the requester sought to make a personal inspection but was provided 
copies instead at the discretion of the agency.



Sec. 1.121  Penalties.

    The criminal penalties which have been established for violations of 
the Privacy Act of 1974 are set forth in 5 U.S.C. 552a(i). These 
penalties are applicable to any officer or employee of an agency who 
commits any of the enumerated acts. These penalties also apply to 
contractors and employees of such contractors who enter into contracts 
with an agency of USDA on or after September 27, 1975, and who are 
considered to be employees of the agency within the meaning of 5 U.S.C. 
552a(m).



Sec. 1.122  General exemptions.

    Pursuant to 5 U.S.C. 552a(j), and for the reasons set forth in 54 FR 
11204-11206 (March 17, 1989), the systems of records (or portions 
thereof) maintained by agencies of USDA identified below are exempted 
from the provisions of 5 U.S.C. 552a, except subsections (b), (c)(1) and 
(2), (e)(4)(A)

[[Page 54]]

through (F), (e)(6), (7), (9), (10), and (11), and (i).

                       Office of Inspector General

Intelligence Records, USDA/OIG-2.
Investigative Files and Subject/Title Index, USDA/OIG-3.

[54 FR 39517, Sept. 27, 1989]



Sec. 1.123   Specific exemptions.

    Pursuant to 5 U.S.C. 552a(k), the systems of records (or portions 
thereof) maintained by agencies of USDA identified below are exempted 
from the provisions of 5 U.S.C. 552a (c)(3), (d), (e)(1), (e)(4)(G), (H) 
and (I), and (f). The reasons for exempting each system are set out in 
the notice for that system published in the Federal Register.

                     Agricultural Marketing Service

AMS Office of Compliance Review Cases, USDA/AMS-11.

           Agricultural Stabilization and Conservation Service

EEO Complaints and Discrimination Investigation Reports, USDA/ASCS'12.
Investigation and Audit Reports, USDA/ASCS-18.
Producer Appeals, USDA/ASCS-21.

               Animal and Plant Health Inspection Service

Plant Protection and Quarantine Program--Regulatory Actions, USDA/APHIS-
1.
Veterinary Services Programs--Records of Accredited Veterinarians, USDA/
APHIS-2.
Veterinary Services Programs--Animal Quarantine Regulatory Actions, 
USDA/APHIS-3.
Veterinary Services Programs--Animal Welfare and Horse Protection 
Regulatory Actions, USDA/APHIS-4.

                       Farmers Home Administration

Credit Report File, USDA/FmHA-3.

                   Federal Crop Insurance Corporation

FCIC Compliance Review Cases, USDA/FCIC-2.

                    Federal Grain Inspection Service

Investigations Undertaken by the Government Pursuant to the United 
States Grain Standards Act of 1976, as amended, or the Agricultural 
Marketing Act of 1946, as amended, USDA/FGIS-2.

                       Food and Nutrition Service

Civil Rights Complaints and Investigations, USDA/FNS-1.
Claims Against Food Stamp Recipients, USDA/FNS-3.
Investigations of Fraud, Theft, or Other Unlawful Activities of 
Individuals Involving Food Stamps, USDA/FNS-5.

                   Food Safety and Inspection Service

Meat and Poultry Inspection Program--Slaughter, Processing and Allied 
Industries Compliance Records System, USDA/FSIS-1.

                             Forest Service

Law Enforcement Investigation Records, USDA/FS-33.

                      Office of the General Counsel

                           Regulatory Division

Cases by the Department under the Federal Meat Inspection Act, the 
Poultry Products Inspection Act, and the voluntary inspection and 
certification provisions of the Agricultural Marketing Act of 1946, 
USDA/OGC-6.
Cases by the Department under the Humane Methods of Livestock Slaughter 
Law (i.e., the Act of August 27, 1958), USDA/OGC-7.
Cases by the Department under the 28 Hour Law, as amended, USDA/OGC-8.
Cases by the Department under the various Animal Quarantine and related 
laws, USDA/OGC-9.
Cases by the Department under the various Plant Protection Quarantine 
and related laws, USDA/OGC-10.
Cases by the Department under Horse Protection Act of 1970, USDA/OGC-41.
Cases by the Department under the Laboratory Animal Welfare Act, USDA/
OGC-42.

                     Community Development Division

Community Development Division Litigation, USDA/OGC-11.
Farmers Home Administration (FmHA) General Case Files, USDA/OGC-12.

                       Food and Nutrition Division

Claims by and against USDA under the Food Assistance Legislation, USDA/
OGC-13.
Perishable Agricultural Commodities, USDA/OGC-14.

        Foreign Agriculture and Commodity Stabilization Division

Agricultural Stabilization and Conservation Service (ASCS), Foreign 
Agricultural Service (FAS), and Commodity Credit Corporation Cases, 
USDA/OGC-15.
Federal Crop Insurance Corporation (FCIC) Cases, USDA/OGC-16.
Administrative proceedings brought by the Department, court cases in 
which the government is plaintiff and court cases in which the 
government is a defendant

[[Page 55]]

brought pursuant to the United States Warehouse Act, USDA/OGC-43.

                           Marketing Division

Administrative proceedings brought by the Department pursuant to the 
Plant Variety Protection Act, the Federal Seed Act, or the Agricultural 
Marketing Act of 1946, USDA/OGC-18.
Cases brought by the Government pursuant to the Cotton Futures 
provisions of the Internal Revenue Code of 1954, USDA/OGC-22.
Court cases brought by the Government pursuant to either the 
Agricultural Marketing Act of 1946 or the Tobacco Inspection Act, USDA/
OGC-24.
Court cases brought by the Government pursuant to either the 
Agricultural Marketing Agreement Act of 1937, as amended, or the Anti-
Hog-Cholera Serum and Hog Cholera Virus Act, USDA/OGC-25.
Court cases brought by the Government pursuant to either the Cotton 
Research and Promotion Act, Potato Research and Promotion Act, the Egg 
Research and Consumer Information Act, USDA/OGC-26.
Court cases brought by the Government pursuant to either the Export 
Apple and Pear Act or the Export Grape and Plum Act, USDA/OGC-27.
Court cases brought by the Government pursuant to either the Cotton 
Statistics and Estimates Act of 1927 or the United States Cotton 
Standards Act, USDA/OGC-28.
Court cases brought by the Government pursuant to either the Naval 
Stores Act, or the Tobacco Seed and Plant Exportation Act, USDA/OGC-29.
Court cases brought by the Government pursuant to either the Peanut 
Statistics Act or the Tobacco Statistics Act, USDA/OGC-30.
Court cases brought by the Government pursuant to either the Plant 
Variety Protection Act or the Egg Products Inspection Act, USDA/OGC-31.
Court cases brought by the Government pursuant to either the Produce 
Agency Act, or the Process of Renovated Butter Provisions of the 
Internal Revenue Code of 1954, USDA/OGC-32.
Court cases brought by the Government pursuant to either the United 
States Grain Standards Act or the Federal Seed Act, USDA/OGC-33.
Court cases brought by the Government pursuant to the Agricultural Fair 
Practices Act, USDA/OGC-34.
Cases by and against the Department under the Virus-Serum Toxin Act, 
USDA/OGC-44.

                     Packers and Stockyards Division

Packers and Stockyards Act, Administrative Cases, USDA/OGC-69.
Packers and Stockyards Act, Civil and Criminal Cases, USDA/OGC-70.

                    Research and Operations Division

Personnel Irregularities, USDA/OGC-75.

                         Office of the Secretary

Non-Career Applicant File, USDA/SEC-1.

[40 FR 45103, Sept. 30, 1975, as amended at 41 FR 22333, June 3, 1976; 
53 FR 5969, Feb. 29, 1988; 54 FR 5073, Feb. 1, 1989; 55 FR 41179, Oct. 
10, 1990]

                     Appendix A--Internal Directives

    Section 1 General Requirements. Each agency that maintains a system 
of records subject to 5 U.S.C. 552a and the regulations of this subpart 
shall:
    (a) Maintain in its records only such information about an 
individual as is relevant and necessary to accomplish a purpose of the 
agency required to be accomplished by statute or by executive order of 
the President;
    (b) Collect information to the greatest extent practicable directly 
from the subject individual when the information may result in adverse 
determinations about an individual's rights, benefits, and privileges 
under Federal programs;
    (c) Inform each individual whom it asks to supply information, on 
the form which it uses to collect the information, or on a separate form 
that can be retained by the individual:
    (1) The authority (whether granted by statute, or by executive order 
of the President) which authorizes the solicitation of the information 
and whether disclosure of such information is mandatory or voluntary;
    (2) The principal purpose or purposes for which the information is 
intended to be used;
    (3) The routine uses which may be made of the information, as 
published pursuant to paragraph (d)(4) of this section; and
    (4) The effects on him, if any, of not providing all or any part of 
the requested information;
    (d) Subject to the provisions of section 2 of this appendix, prepare 
for publication in the Federal Register at least annually a notice of 
the existence and character of each system it maintains, which notice 
shall include:
    (1) The name and location(s) of the system;
    (2) The categories of individuals on whom records are maintained in 
the system;
    (3) The categories of records maintained in the system;
    (4) Each routine use of the records contained in the system, 
including the categories of uses and the purpose of such use;
    (5) The policies and practices of the agency regarding storage, 
retrievability, access controls, retention, and disposal of the records;
    (6) The title and business address of the agency official who is 
responsible for the system of records;
    (7) The agency procedures whereby an individual can be notified at 
his request if the

[[Page 56]]

system of records contains a record pertaining to him;
    (8) The agency procedures whereby an individual can be notified at 
his request how he can gain access to any record pertaining to him 
contained in the system of records, and how he can contest its content; 
and
    (9) The categories of sources of records in the system;
    (e) Maintain all records which are used by the agency in making any 
determination about any individual with such accuracy, relevance, 
timeliness, and completeness as is reasonably necessary to assure 
fairness to the individual in the determination;
    (f) Prior to disseminating any record about an individual to any 
person other than an agency, unless the dissemination is made pursuant 
to 5 U.S.C. 552a(b)(2), make reasonable efforts to assure that such 
records are accurate, complete, timely, and relevant for agency 
purposes;
    (g) Maintain no record describing how any individual exercises 
rights guaranteed by the First Amendment unless expressly authorized by 
statute or by the individual about whom the record is maintained, or 
unless pertinent to and within the scope of an authorized law 
enforcement activity;
    (h) Make reasonable efforts to serve notice on an individual when 
any record on such individual is made available to any person under 
compulsory legal process when such process becomes a matter of public 
record;
    (i) Establish rules of conduct for persons involved in the design, 
development, operation, or maintenance of any system of records, or in 
maintaining any record, and instruct each such person with respect to 
such rules and the requirements of this section, including any other 
rules and procedures adopted pursuant to this section and the penalties 
for noncompliance;
    (j) Establish appropriate administrative, technical, and physical 
safeguards to insure the security and confidentiality of records and to 
protect against any anticipated threats or hazards to their security or 
integrity which could result in substantial harm, embarrassment, 
inconvenience, or unfairness to any individual on whom information is 
maintained.
    Sec. 2 Amendment of routine uses for an existing system of records, 
or establishment of a new system of records.
    (a) Any agency which intends to add a routine use, or amend an 
existing one, in a system of records it maintains, shall, in accordance 
with 5 U.S.C. 552a(e)(11), insure that 30 days advance notice of such 
action is given by publication in the Federal Register and an 
opportunity provided for interested persons to submit written data, 
views or arguments to the agency.
    (b) Any agency which intends to establish a new system of records, 
or to alter any existing system of records, shall insure that adequate 
advance notice is provided to Congress and the Office of Management and 
Budget to permit an evaluation of the probable or potential effect of 
such action on the privacy and other personal or property rights of 
individuals or the disclosure of information relating to such 
individuals, and its effect on the preservation of the constitutional 
principles of federalism and separation of powers. Such notice is 
required for any new system of records and for any alteration in an 
existing one which will:
    (1) Increase the number or types of individuals on whom records are 
maintained;
    (2) Expand the type or amount of information maintained;
    (3) Increase the number or categories of agencies or other persons 
who may have access to those records;
    (4) Alter the manner in which the records are organized so as to 
change the nature or scope of those records (e.g., the combining of two 
or more existing systems);
    (5) Modify the way the system operates at its location(s) in such a 
manner as to alter the procedures by which individuals can exercise 
their rights under this subpart; or
    (6) Change the equipment configuration on which the system is 
operated so as to create the potential for greater access (e.g., adding 
a telecommunications capability).
    Sec. 3 Accounting of Certain Disclosures. Each agency, with respect 
to each system of records under its control, shall:
    (a) Except for disclosures made under 5 U.S.C. 552a(b)(1) and (2), 
keep an accurate account of:
    (1) The date, nature, and purpose of each disclosure of a record to 
any person or agency outside the Department; and
    (2) The name and address of the person or agency to whom the 
disclosure is made;
    (b) Retain the accounting made under paragraph (a) of this section 
for the longer of a period of five years, after the date of the 
disclosure for which the accounting is made, or the life of the record 
disclosed;
    (c) Except for disclosures made under 5 U.S.C. 552a(b)(7), make the 
accounting above available to the individual named in the record at his 
request.
    Sec. 4 Government Contractors. When an agency within the Department 
provides by a contract for the operation by or on behalf of the agency 
of a system of records to accomplish an agency function, the agency 
shall, consistent with its authority, cause the requirements of this 
subpart to be applied to such system. For purposes of 5 U.S.C. 552a(i) 
any such contractor or any employee of such contractor, if such contract 
is agreed to on or after September 27, 1975, shall be considered to be 
an employee of an agency and therefore subject to the criminal penalties 
set forth in that section.

[[Page 57]]

    Sec. 5 Mailing Lists. No agency within the Department shall sell or 
rent any individual's name and address unless such action is 
specifically authorized by law. This section shall not be construed to 
require, or to authorize, the withholding of names and addresses whose 
disclosure is required by 5 U.S.C. 552.
    Sec. 6 Social security account numbers. (a) No agency shall deny, or 
permit any State or local government with whom it is involved in a 
cooperative venture to deny, to any individual any right, benefit, or 
privilege provided by law because of such individual's refusal to 
disclose his social security account number.
    (b) The provisions of paragraph (a) of this Section shall not apply 
with respect to:
    (1) Any disclosure required by Federal statute; or
    (2) Any disclosure to any agency relating to a system of records it 
maintained prior to January 1, 1975, if such disclosure was required 
under statute or regulation adopted prior to that date, to verify the 
identity of an individual.
    (c) Any agency in the Department which requests an individual to 
disclose his social security account number shall inform that individual 
whether the disclosure is mandatory or voluntary, by what statutory or 
other authority the number is solicited, and what uses will be made of 
it. The agency shall also insure that this information is provided by a 
State or local government with whom it is involved in a cooperative 
agreement.
    Sec. 7. Annual report. Each agency in the Department shall submit to 
the Office of the General Counsel prior to March 30 of each year 
(beginning March 30, 1976) a report containing the following information 
related to implementation of 5 U.S.C. 552a:
    (a) A summary of major accomplishments;
    (b) A summary of major plans for activities in the upcoming year;
    (c) A list of the systems which were exempted during the year from 
any of the operative provisions of this subpart pursuant to 5 U.S.C. 
552a (j) and (k), whether or not the exemption was effected during that 
year, the number of instances with respect to each system exempted in 
which the exemption was invoked to deny access, and the reasons for 
invoking the exemption;
    (d) A brief summary of changes to the total inventory of personal 
data system subject to this subpart including reasons for major changes; 
and
    (e) A general description of operational experiences including 
estimates of the number of individuals (in relation to the total number 
of records in the system):
    (1) Requesting information on the existence of records pertaining to 
them;
    (2) Refusing to provide information;
    (3) Requesting access to their records;
    (4) Appealing initial refusals to amend records; and
    (5) Seeking redress through the courts.
    Sec. 8. Effect of 5 U.S.C. 552. No agency in the Department shall 
rely on any exemption in 5 U.S.C. 552 to withhold from an individual any 
record which is otherwise accessible to such individual under the 
provisions of 5 U.S.C. 552a and this subpart.

[40 FR 44480, Sept. 26, 1975]



 Subpart H--Rules of Practice Governing Formal Adjudicatory Proceedings 
           Instituted by the Secretary Under Various Statutes

    Authority: 5 U.S.C. 301; 7 U.S.C. 61, 87e, 149, 150gg, 162, 163, 
164, 228, 268, 499o, 608c(14), 1592, 1624(b), 2151, 2621, 2714, 2908, 
3812, 4610, 4815, 4910, 6009, 6107, 6207, 6307, 6411, 6808, 7107; 15 
U.S.C. 1828; 16 U.S.C. 620d, 1540(f), 3373; 21 U.S.C. 104, 111, 117, 
120, 122, 127, 134e, 134f, 135a, 154, 463(b), 621, 1043; 43 U.S.C. 1740; 
7 CFR 2.35, 2.41.

    Source: 42 FR 743, Jan. 4, 1977, unless otherwise noted.



Sec. 1.130  Meaning of words.

    As used in this subpart, words in the singular form shall be deemed 
to import the plural, and vice versa, as the case may require.



Sec. 1.131  Scope and applicability of this subpart.

    (a) The rules of practice in this subpart shall be applicable to all 
adjudicatory proceedings under the statutory provisions listed below as 
those provisions have been or may be amended from time to time,\1\ 
except that those rules shall not be applicable to reparation 
proceedings under section 6(c) of the Perishable Agricultural 
Commodities Act, 1930. Section 1.26 shall be inapplicable to the 
proceedings covered by this subpart.
---------------------------------------------------------------------------

    \1\ See also the regulations promulgated under these statutes for 
any supplemental rules relating to particular circumstances arising 
thereunder.

Act of May 29, 1884, commonly known as the Animal Industry Act, section 
7, as amended (21 U.S.C. 117).
Act of August 30, 1890, section 6, as amended (21 U.S.C. 104).

[[Page 58]]

Act of February 2, 1903, commonly known as the Cattle Contagious 
Diseases Act of 1903, section 3, as amended (21 U.S.C. 122).
Act of March 3, 1905, section 6, as amended (21 U.S.C. 127).
Act of August 20, 1912, commonly known as the Plant Quarantine Act, 
section 10, as amended (7 U.S.C. 163, 164).
Act of January 31, 1942, as amended (7 U.S.C. 149).
Act of July 2, 1962, section 6(a), as amended (21 U.S.C. 134e).
Act of May 6, 1970, section 2, as amended (21 U.S.C. 135a).
Agricultural Marketing Agreement Act of 1937, as amended, section 
8c(14), 7 U.S.C. 608c(14).
Animal Welfare Act, section 19 (7 U.S.C. 2149).
Beef Promotion and Research Act of 1985, section 9 (7 U.S.C. 2908).
Egg Products Inspection Act, section 18 (21 U.S.C. 1047).
Endangered Species Act of 1973, as amended, section 11(a) (16 U.S.C. 
1540(a)).
Egg Research and Consumer Information Act, as amended, 7 U.S.C. 2714, 
Pub. L. 96-276, 94 Stat. 541.
Federal Land Policy and Management Act of 1976, section 506 (43 U.S.C. 
1766).
Federal Meat Inspection Act, sections 4, 6, 7(e), 8, and 401 (21 U.S.C. 
604, 606, 607(e), 608, 671).
Federal Plant Pest Act, section 108, as amended (7 U.S.C. 150gg).
Federal Seed Act, section 409 (7 U.S.C. 1599).
Fluid Milk Promotion Act of 1990, section 1999L [7 U.S.C. 6411].
Forest Resources Conversation and Shortage Relief Act of 1990, section 
492 (16 U.S.C. 620d)
Fresh Cut Flowers and Fresh Cut Greens Promotion and Consumer 
Information Act of 1993, section 9 [7 U.S.C. 6808].
Honey Research, Promotion, and Consumer Information Act, section 11 (7 
U.S.C. 4610).
Horse Protection Act of 1970, sections 4(c) and 6 (15 U.S.C. 1823(c), 
1825).
Lacey Act Amendments of 1981, section 4 (a) and (b) (16 U.S.C. 3373 (a) 
and (b)).
Lime Research, Promotion, and Consumer Information Act of 1990, as 
amended, section 1958 [7 U.S.C. 6207]
Mushroom Promotion, Research, and Consumer Information Act of 1990, 
section 1928 [7 U.S.C. 6107]
Packers and Stockyards Act, 1921, as supplemented, sections 203, 312, 
401, 502(b), and 505 of the Act, and section 1, 57 Stat. 422, as amended 
by section 4, 90 Stat. 1249 (7 U.S.C. 193, 204, 213, 218a, 218d, 221).
Pecan Promotion and Research Act of 1990, section 1914 [7 U.S.C. 6009]
Perishable Agricultural Commodities Act, 1930, sections 1(9), 3(c), 
4(d), 6(c), 8(a), 8(b), 8(c), 9 and 13(a), (7 U.S.C. 499c(c), 499d (d), 
499f(c), 499h(a), 499h(b), 499h(c), 499i, 499m(a)).
Pork Promotion, Research, and Consumer Information Act of 1985, section 
1626 (7 U.S.C. 4815).
Potato Research and Promotion Act, as amended, 7 U.S.C. 2621, Pub. L. 
97-244, 96 Stat. 310.
Poultry Products Inspection Act, sections 6, 7, 8(d), and 18 (21 U.S.C. 
455, 456, 457(d), 467).
Sheep Promotion, Research, and Information Act of 1994 [7 U.S.C. 7107].
Soybean Promotion, Research, and Consumer Information Act, section 1972 
[7 U.S.C. 6307].
Swine Health Protection Act, sections 5 and 6 (7 U.S.C. 3804, 3805).
United States Cotton Standards Act, as supplemented, section 3 of the 
Act and section 2 of 47 Stat. 1621 (7 U.S.C. 51b, 53).
United States Grain Standards Act, sections 7(g)(3), 9,\2\ 10, and 
17A(d) (7 U.S.C. 79(g)(3), 85, 86).
---------------------------------------------------------------------------

    \2\ The rules of practice in this subpart are applicable to formal 
proceedings under section 9 of the United States Grain Standards Act for 
refusal to renew, or for suspension or revocation of a license if the 
respondent requests that such proceeding be subject to the 
administrative procedure provisions in 5 U.S.C. 554, 556, and 557. If 
such a request is not made, the Rules of Practice in 7 CFR part 26, 
subpart C shall apply.
---------------------------------------------------------------------------

United States Warehouse Act, sections 12 and 25 (7 U.S.C. 246, 253).
Virus-Serum-Toxin Act (21 U.S.C. 156).
Watermelon Research and Promotion Act, section 1651 (7 U.S.C. 4910).

    (b) These rules of practice shall also be applicable to: (1) 
Adjudicatory proceedings under the regulations promulgated under the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.) for the 
denial or withdrawal of inspection, certification, or grading service. 
\1\
    (2) Adjudicatory proceedings under the regulations promulgated under 
the Animal Quarantine and Related Laws (21 U.S.C. 111 et seq.) for the 
suspension or revocation of accreditation of veterinarians (9 CFR parts 
160, 161).
    (3) Proceedings for debarment of counsel under Sec. 1.141(d) of this 
subpart; and
    (4) Other adjudicatory proceedings in which the complaint 
instituting the

[[Page 59]]

proceeding so provides with the concurrence of the Assistant Secretary 
for Administration.

[42 FR 743, Jan. 4, 1977, as amended at 42 FR 15406, Mar. 22, 1977; 45 
FR 68381, Oct. 15, 1980; 47 FR 15559, Apr. 12, 1982; 47 FR 30451, July 
14, 1982; 48 FR 28189, June 21, 1983; 49 FR 21293, May 21, 1984; 49 FR 
37727, Sept. 26, 1984; 53 FR 1001, Jan. 15, 1988; 53 FR 35296, Sept. 13, 
1988; 56 FR 22106, May 14, 1991; 60 FR 8455, Feb. 14, 1995; 60 FR 33329, 
June 28, 1995; 61 FR 11503, Mar. 21, 1996]



Sec. 1.132  Definitions.

    As used in this subpart, the terms as defined in the statute under 
which the proceeding is conducted and in the regulations, standards, 
instructions, or orders issued thereunder, shall apply with equal force 
and effect. In addition and except as may be provided otherwise in this 
subpart:
    Administrator means the Administrator of the Agency administering 
the statute involved, or any officer or employee of the Agency to whom 
authority has heretofore been delegated, or to whom authority may 
hereafter be delegated, to act for the Administrator.
    Complainant means the party instituting the proceeding.
    Complaint means the formal complaint, order to show cause, or other 
document by virtue of which a proceeding is instituted.
    Decision means: (1) The Judge's initial decision made in accordance 
with the provisions of 5 U.S.C. 556 and 557, and includes the Judge's 
(i) findings and conclusions and the reasons or basis therefor on all 
material issues of fact, law or discretion, (ii) order, and (iii) 
rulings on proposed findings, conclusions and orders submitted by the 
parties; and
    (2) The decision and order by the Judicial Officer upon appeal of 
the Judge's decision.
    Hearing means that part of the proceeding which involves the 
submission of evidence before the Judge for the record in the 
proceeding.
    Hearing Clerk means the Hearing Clerk, United States Department of 
Agriculture, Washington, DC 20250.
    Judge means any Administrative Law Judge appointed pursuant to 5 
U.S.C. 3105 and assigned to the proceeding involved.
    Judicial Officer means an official of the United States Department 
of Agriculture delegated authority by the Secretary of Agriculture, 
pursuant to the Act of April 4, 1940 (7 U.S.C. 450c-450g) and 
Reorganization Plan No. 2 of 1953 (5 U.S.C. App. (1988)), to perform the 
function involved (Sec. 2.35(a) of this chapter), or the Secretary of 
Agriculture if the authority so delegated is exercised by the Secretary.
    Mail means to deposit an item in the United States Mail with postage 
affixed and addressed as necessary to cause it to be delivered to the 
address shown by ordinary mail, or by certified or registered mail if 
specified.
    Petitioner means an individual who has filed a petition for review 
of a determination that the individual is responsibly connected to a 
licensee within the meaning of 7 U.S.C. 499a(9).
    Re-mail means to mail by ordinary mail to an address an item that 
has been returned after being sent to the same address by certified or 
registered mail.
    Respondent means the party proceeded against.

[42 FR 743, Jan. 4, 1977, as amended at 55 FR 30673, July 27, 1990; 60 
FR 8455, Feb. 14, 1995; 61 FR 11503, Mar. 21, 1996]



Sec. 1.133  Institution of proceedings.

    (a) Submission of information concerning apparent violations. (1) 
Any interested person desiring to submit information regarding an 
apparent violation of any provision of a statute listed in Sec. 1.131 or 
of any regulation, standard, instruction, or order issued pursuant 
thereto, may file the information with the Administrator of the agency 
administering the statute involved in accordance with this section and 
any applicable statutory or regulation provisions. Such information may 
be made the basis of any appropriate proceeding covered by the rules in 
this subpart, or any other appropriate proceeding authorized by the 
particular statute or the regulations promulgated thereunder.
    (2) The information may be submitted by telegram, by letter, or by a 
preliminary statement of facts, setting forth the essential details of 
the transaction complained of. So far as practicable, the information 
shall include

[[Page 60]]

such of the following items as may be applicable:
    (i) The name and address of each person and of the agent, if any, 
representing such person in the transaction involved;
    (ii) Place where the alleged violation occurred;
    (iii) Quantity and quality or grade of each kind of product or 
article involved;
    (iv) Date of alleged violation;
    (v) Car initial and number, if carlot;
    (vi) Shipping and destination points;
    (vii) If a sale, the date, sale price, and amount actually received;
    (viii) If a consignment, the date, reported proceeds, gross, net;
    (ix) Amount of damage claimed, if any;
    (x) Statement of other material facts, including terms of contract; 
and
    (xi) So far as practicable, true copies of all available papers 
relating to the transaction complained about, including shipping 
documents, letters, telegrams, invoices, manifests, inspection 
certificates, accounts of sales and any special contracts or agreements.
    (3) Upon receipt of the information and supporting evidence, the 
Administrator shall cause such investigation to be made as, in the 
opinion of the Administrator, is justified by the facts. If such 
investigation discloses that no violation of the Act or of the 
regulations, standards, instructions, or orders issued pursuant thereto, 
has occurred, no further action shall be taken and the person submitting 
the information shall be so informed.
    (4) The person submitting the information shall not be a party to 
any proceeding which may be instituted as a result thereof and such 
person shall have no legal status in the proceeding, except as a 
subpoenaed witness or as a deponent in a deposition taken without 
expense to such person.
    (b) Filing of complaint or petition for review. (1) If there is 
reason to believe that a person has violated or is violating any 
provision of a statute listed in Sec. 1.131 or of any regulation, 
standard, instruction or order issued pursuant thereto, whether based 
upon information furnished under paragraph (a) of this section or other 
information, a complaint may be filed with the Hearing Clerk pursuant to 
these rules.
    (2) Any person determined by the Chief, PACA Branch, pursuant to 7 
CFR 47.47-47.68 to have been responsibly connected within the meaning of 
7 U.S.C. 499a(9) to a licensee who is subject or potentially subject to 
license suspension or revocation as the result of an alleged violation 
of 7 U.S.C. 499b or 499h(b) or as provided in 7 U.S.C. 499g(d) shall be 
entitled to institute a proceeding under this section and to have 
determined the facts with respect to such responsibly connected status 
by filing with the Hearing Clerk a petition for review of such 
determination.
    (3) As provided in 5 U.S.C. 558, in any case, except one of 
willfulness or one in which public health, interest, or safety otherwise 
requires, prior to the institution of a formal proceeding which may 
result in the withdrawal, suspension, or revocation of a ``license'' as 
that term is defined in 5 U.S.C. 551(8), the Administrator, in an effort 
to effect an amicable or informal settlement of the matter, shall give 
written notice to the person involved of the facts or conduct concerned 
and shall afford such person an opportunity, within a reasonable time 
fixed by the Administrator, to demonstrate or achieve compliance with 
the applicable requirements of the statute, or the regulation, standard, 
instruction or order promulgated thereunder.

[42 FR 743, Jan. 4, 1977, as amended at 60 FR 8455, Feb. 14, 1995; 61 FR 
11503, Mar. 21, 1996]



Sec. 1.134  Docket number.

    Each proceeding, immediately following its institution, shall be 
assigned a docket number by the Hearing Clerk, and thereafter the 
proceeding shall be referred to by such number.



Sec. 1.135  Contents of complaint or petition for review.

    (a) Complaint. A complaint filed pursuant to Sec. 1.133(b) shall 
state briefly and clearly the nature of the proceeding, the 
identification of the complainant and the respondent, the legal 
authority and jurisdiction under which the proceeding is instituted, the 
allegations of fact and provisions of law

[[Page 61]]

which constitute a basis for the proceeding, and the nature of the 
relief sought.
    (b) Petition for review. The Petition for Review of responsibly 
connected status shall describe briefly and clearly the determination 
sought to be reviewed and shall include a brief statement of the factual 
and legal matters that the petitioner believes warrant the reversal of 
the determination.

[42 FR 743, Jan. 4, 1977, as amended at 61 FR 11503, Mar. 21, 1996]



Sec. 1.136  Answer.

    (a) Filing and service. Within 20 days after the service of the 
complaint (within 10 days in a proceeding under section 4(d) of the 
Perishable Agricultural Commodities Act, 1930), or such other time as 
may be specified therein, the respondent shall file with the Hearing 
Clerk an answer signed by the respondent or the attorney of record in 
the proceeding. The attorney may file an appearance of record prior to 
or simultaneously with the filing of the answer. The answer shall be 
served upon the complainant, and any other party of record, by the 
Hearing Clerk. As response to a petition for review of responsibly 
connected status, the Chief, PACA Branch, shall within ten days after 
being served by the Hearing Clerk with a petition for review, file with 
the Hearing Clerk a certified copy of the agency record upon which the 
Chief, PACA Branch, made the determination that the individual was 
responsibly connected to a licensee under the Perishable Agricultural 
Commodities Act, 7 U.S.C. 499a et seq., and such agency record shall 
become part of the record in the review proceeding.
    (b) Contents. The answer shall:
    (1) Clearly admit, deny, or explain each of the allegations of the 
Complaint and shall clearly set forth any defense asserted by the 
respondent; or
    (2) State that the respondent admits all the facts alleged in the 
complaint; or
    (3) State that the respondent admits the jurisdictional allegations 
of the complaint and neither admits nor denies the remaining allegations 
and consents to the issuance of an order without further procedure.
    (c) Default. Failure to file an answer within the time provided 
under Sec. 1.136(a) shall be deemed, for purposes of the proceeding, an 
admission of the allegations in the Complaint, and failure to deny or 
otherwise respond to an allegation of the Complaint shall be deemed, for 
purposes of the proceeding, an admission of said allegation, unless the 
parties have agreed to a consent decision pursuant to Sec. 1.138.

[42 FR 743, Jan. 4, 1977, as amended at 61 FR 11504, Mar. 21, 1996]



Sec. 1.137  Amendment of complaint, petition for review, or answer; joinder of related matters.

    (a) Amendment. At any time prior to the filing of a motion for a 
hearing, the complaint, petition for review, answer, or response to 
petition for review may be amended. Thereafter, such an amendment may be 
made with consent of the parties, or as authorized by the Judge upon a 
showing of good cause.
    (b) Joinder. The Judge shall consolidate for hearing with any 
proceeding alleging a violation of the Perishable Agricultural 
Commodities Act, 7 U.S.C. 499a et seq., any petitions for review of 
determination of status by the Chief, PACA Branch, that individuals are 
responsibly connected, within the meaning of 7 U.S.C. 499a(9), to the 
licensee during the period of the alleged violations. In any case in 
which there is no pending proceeding alleging a violation of the 
Perishable Agricultural Commodities Act, 7 U.S.C. 499a et seq., but 
there have been filed more than one petition for review of determination 
of responsible connection to the same licensee, such petitions for 
review shall be consolidated for hearing.

[61 FR 11504, Mar. 21, 1996]



Sec. 1.138  Consent decision.

    At any time before the Judge files the decision, the parties may 
agree to the entry of a consent decision. Such agreement shall be filed 
with the Hearing Clerk in the form of a decision signed by the parties 
with appropriate space for signature by the Judge, and shall contain an 
admission of at least the jurisdictional facts, consent to the issuance 
of the agreed decision without

[[Page 62]]

further procedure and such other admissions or statements as may be 
agreed between the parties. The Judge shall enter such decision without 
further procedure, unless an error is apparent on the face of the 
document. Such decision shall have the same force and effect as a 
decision issued after full hearing, and shall become final upon issuance 
to become effective in accordance with the terms of the decision.



Sec. 1.139  Procedure upon failure to file an answer or admission of facts.

    The failure to file an answer, or the admission by the answer of all 
the material allegations of fact contained in the complaint, shall 
constitute a waiver of hearing. Upon such admission or failure to file, 
complainant shall file a proposed decision, along with a motion for the 
adoption thereof, both of which shall be served upon the respondent by 
the Hearing Clerk. Within 20 days after service of such motion and 
proposed decision, the respondent may file with the Hearing Clerk 
objections thereto. If the Judge finds that meritorious objections have 
been filed, complainant's Motion shall be denied with supporting 
reasons. If meritorious objections are not filed, the Judge shall issue 
a decision without further procedure or hearing. Copies of the decision 
or denial of complainant's Motion shall be served by the Hearing Clerk 
upon each of the parties and may be appealed pursuant to Sec. 1.145. 
Where the decision as proposed by complainant is entered, such decision 
shall become final and effective without further proceedings 35 days 
after the date of service thereof upon the respondent, unless there is 
an appeal to the Judicial Officer by a party to the proceeding pursuant 
to Sec. 1.145: Provided, however, That no decision shall be final for 
purposes of judicial review except a final decision of the Judicial 
Officer upon appeal.



Sec. 1.140  Conferences and procedure.

    (a) Purpose and scope. (1) Upon motion of a party or upon the 
Judge's own motion, the Judge may direct the parties or their counsel to 
attend a conference at any reasonable time, prior to or during the 
course of the hearing, when the Judge finds that the proceeding would be 
expedited by a conference. Reasonable notice of the time, place, and 
manner of the conference shall be given. The Judge may order each of the 
parties to furnish at or subsequent to the conference any or all of the 
following:
    (i) An outline of the case or defense;
    (ii) The legal theories upon which the party will rely;
    (iii) Copies of or a list of documents which the party anticipates 
introducing at the hearing; and
    (iv) A list of anticipated witnesses who will testify on behalf of 
the party. At the discretion of the party furnishing such list of 
witnesses, the names of the witnesses need not be furnished if they are 
otherwise identified in some meaningful way such as a short statement of 
the type of evidence they will offer.
    (2) The Judge shall not order any of the foregoing procedures that a 
party can show is inappropriate or unwarranted under the circumstances 
of the particular case.
    (3) At the conference, the following matters shall be considered:
    (i) The simplification of issues;
    (ii) The necessity of amendments to pleadings;
    (iii) The possibility of obtaining stipulations of facts and of the 
authenticity, accuracy, and admissibility of documents, which will avoid 
unnecessary proof;
    (iv) The limitation of the number of expert or other witnesses;
    (v) Negotiation, compromise, or settlement of issues;
    (vi) The exchange of copies of proposed exhibits;
    (vii) The identification of documents or matters of which official 
notice may be requested;
    (viii) A schedule to be followed by the parties for completion of 
the actions decided at the conference; and
    (ix) Such other matters as may expedite and aid in the disposition 
of the proceeding.
    (b) Reporting. A conference will not be stenographically reported 
unless so directed by the Judge.
    (c) Manner of Conference. (1) The conference shall be conducted by 
telephone or correspondence unless the Judge determines that conducting 
the

[[Page 63]]

conference by audio-visual telecommunication:
    (i) Is necessary to prevent prejudice to a party;
    (ii) Is necessary because of a disability of any individual expected 
to participate in the conference; or
    (iii) Would cost less than conducting the conference by telephone or 
correspondence. If the Judge determines that a conference conducted by 
audio-visual telecommunication would measurably increase the United 
States Department of Agriculture's cost of conducting the conference, 
the conference shall be conducted by personal attendance of any 
individual who is expected to participate in the conference, by 
telephone, or by correspondence.
    (2) If the conference is not conducted by telephone or 
correspondence, the conference shall be conducted by audio-visual 
telecommunication unless the Judge determines that conducting the 
conference by personal attendance of any individual who is expected to 
participate in the conference:
    (i) Is necessary to prevent prejudice to a party;
    (ii) Is necessary because of a disability of any individual expected 
to participate in the conference; or
    (iii) Would cost less than conducting the conference by audio-visual 
telecommunication.
    (d) Order. Actions taken as a result of a conference shall be 
reduced to a written appropriate order, unless the Judge concludes that 
a stenographic report shall suffice, or, if the conference takes place 
within 7 days of the beginning of the hearing, the Judge elects to make 
a statement on the record at the hearing summarizing the actions taken.
    (e) Related matters. Upon motion of a respondent, the Judge may 
order the attorney for the complainant to produce and permit the 
respondent to inspect and copy or photograph any relevant written or 
recorded statements or confessions made by such respondent within the 
possession, custody or control of the complainant.

[42 FR 743, Jan. 4, 1977, as amended at 60 FR 8455, Feb. 14, 1995]



Sec. 1.141  Procedure for hearing.

    (a) Request for hearing. Any party may request a hearing on the 
facts by including such request in the complaint or answer, or by a 
separate request, in writing, filed with the Hearing Clerk within the 
time in which an answer may be filed. A petition for review shall be 
deemed a request for a hearing. Failure to request a hearing within the 
time allowed for the filing of the answer shall constitute a waiver of 
such hearing. Waiver of hearing shall not be deemed to be a waiver of 
the right to request oral argument before the Judicial Officer upon 
appeal of the Judge's decision. In the event the respondent denies any 
material fact and fails to file a timely request for a hearing, the 
matter may be set down for hearing on motion of the complainant or upon 
the Judge's own motion.
    (b) Time, place, and manner. (1) If any material issue of fact is 
joined by the pleadings, the Judge, upon motion of any party stating 
that the matter is at issue and is ready for hearing, shall set a time, 
place, and manner for hearing as soon as feasible after the motion is 
filed, with due regard for the public interest and the convenience and 
necessity of the parties. The Judge shall file with the Hearing Clerk a 
notice stating the time and place of the hearing.\3\ This notice shall 
state whether the hearing will be conducted by telephone, audio-visual 
telecommunication, or personal attendance of any individual expected to 
participate in the hearing. The Judge's determination regarding the 
manner of the hearing shall be made in

[[Page 64]]

accordance with paragraphs (b)(3) and (b)(4) of this section. If any 
change in the time, place, or manner of the hearing is made, the Judge 
shall file with the Hearing Clerk a notice of such change, which notice 
shall be served upon the parties, unless it is made during the course of 
an oral hearing and made part of the transcript or recording, or actual 
notice is given to the parties.
---------------------------------------------------------------------------

    \3\ The place of hearing in a proceeding under the Packers and 
Stockyards Act shall be set in accordance with the Packers and 
Stockyards Act (7 U.S.C. 228(e) and (f)). In essence, if there is only 
one respondent, the hearing is to be held as near as possible to the 
respondent's place of business or residence depending on the 
availability of an appropriate location for conducting the hearing. If 
there is more than one respondent and they have their places of business 
or residence within a single unit of local government, a single 
geographical area within a State, or a single State, the hearing is to 
be held as near as possible to their places of business or residence 
depending on the availability of an appropriate location for conducting 
the hearing. If there is more than one respondent, and they have their 
places of business or residence distant from each other, 7 U.S.C. 228(e) 
and (f) have no applicability.
---------------------------------------------------------------------------

    (2)(i) If any material issue of fact is joined by the pleadings and 
the matter is at issue and is ready for hearing, any party may move that 
the hearing be conducted by telephone or personal attendance of any 
individual expected to attend the hearing rather than by audio-visual 
telecommunication. Any motion that the hearing be conducted by telephone 
or personal attendance of any individual expected to attend the hearing 
must be accompanied by a memorandum in support of the motion stating the 
basis for the motion and the circumstances that require the hearing to 
be conducted other than by audio-visual telecommunication.
    (ii) Within 10 days after the Judge issues a notice stating the 
manner in which the hearing is to be conducted, any party may move that 
the Judge reconsider the manner in which the hearing is to be conducted. 
Any motion for reconsideration must be accompanied by a memorandum in 
support of the motion stating the basis for the motion and the 
circumstances that require the hearing to be conducted other than in 
accordance with the Judges's notice.
    (3) The hearing shall be conducted by audio-visual telecommunication 
unless the Judge determines that conducting the hearing by personal 
attendance of any individual who is expected to participate in the 
hearing:
    (i) Is necessary to prevent prejudice to a party;
    (ii) Is necessary because of a disability of any individual expected 
to participate in the hearing; or
    (iii) Would cost less than conducting the hearing by audio-visual 
telecommunication. If the Judge determines that a hearing conducted by 
audio-visual telecommunication would measurably increase the United 
States Department of Agriculture's cost of conducting the hearing, the 
hearing shall be conducted by personal attendance of any individual who 
is expected to participate in the hearing or by telephone.
    (4) The Judge may, in his or her sole discretion or in response to a 
motion by a party to the proceeding, conduct the hearing by telephone if 
the Judge finds that a hearing conducted by telephone:
    (i) Would provide a full and fair evidentiary hearing;
    (ii) Would not prejudice any party; and
    (iii) Would cost less than conducting the hearing by audio-visual 
telecommunication or personal attendance of any individual who is 
expected to participate in the hearing.
    (c) Appearances. The parties may appear in person or by attorney of 
record in the proceeding. Any person who appears as attorney must 
conform to the standards of ethical conduct required of practitioners 
before the courts of the United States.
    (d) Debarment of attorney. (1) Whenever a Judge finds that a person 
acting as attorney for any party to the proceeding is guilty of 
unethical or contumacious conduct, in or in connection with a proceeding 
, the Judge may order that such person be precluded from further acting 
as attorney in the proceeding. An appeal to the Judicial Officer may be 
taken from any such order, but no proceeding shall be delayed or 
suspended pending disposition of the appeal: Provided, That the Judge 
shall suspend the proceeding for a reasonable time for the purpose of 
enabling the party to obtain another attorney.
    (2) Whenever it is found, after notice and opportunity for hearing, 
that a person, who is acting or has acted as attorney for another person 
in any proceeding before the United States Department of Agriculture, is 
unfit to act as such counsel because of such unethical or contumacious 
conduct, such person will be precluded from acting as counsel in any or 
all proceedings before the Department as found to be appropriate.
    (e) Failure to appear. (1) A respondent who, after being duly 
notified, fails to appear at the hearing without good cause, shall be 
deemed to have waived

[[Page 65]]

the right to an oral hearing in the proceeding and to have admitted any 
facts which may be presented at the hearing. Such failure by the 
respondent shall also constitute an admission of all the material 
allegations of fact contained in the complaint. Complainant shall have 
an election whether to follow the procedure set forth in Sec. 1.139 or 
whether to present evidence, in whole or in part, in the form of 
affidavits or by oral testimony before the Judge. Failure to appear at a 
hearing shall not be deemed to be a waiver of the right to be served 
with a copy of the Judge's decision and to appeal and request oral 
argument before the Judicial Officer with respect thereto in the manner 
provided in Sec. 1.145.
    (2) If the petitioner in the case of a Petition for Review of a 
determination of responsibly connected status within the meaning of 7 
U.S.C. 499a(9), having been duly notified, fails to appear at the 
hearing without good cause, such petitioner shall be deemed to have 
waived his right to a hearing and to have voluntarily withdrawn his 
petition for review.
    (f) Order of proceeding. Except as may be determined otherwise by 
the Judge, the complainant shall proceed first at the hearing.
    (g) Written statements of direct testimony. (1) Except as provided 
in paragraph (g)(2) of this section, each party must exchange with all 
other parties a written narrative verified statement of the oral direct 
testimony that the party will provide at any hearing to be conducted by 
telephone; the direct testimony of each employee or agent of the party 
that the party will call to provide oral direct testimony at any hearing 
to be conducted by telephone; and the direct testimony of each expert 
witness that the party will call to provide oral direct testimony at any 
hearing to be conducted by telephone. The written direct testimony of 
witnesses shall be exchanged by the parties at least 10 days prior to 
the hearing. The oral direct testimony provided by a witness at a 
hearing conducted by telephone will be limited to the presentation of 
the written direct testimony, unless the Judge finds that oral direct 
testimony which is supplemental to the written direct testimony would 
further the public interest and would not constitute surprise.
    (2) The parties shall not be required to exchange testimony in 
accordance with this paragraph if the hearing is scheduled to begin less 
than 20 days after the Judge's notice stating the time of the hearing.
    (h) Evidence. (1) In general. (i) The testimony of witnesses at a 
hearing shall be on oath or affirmation and subject to cross-
examination.
    (ii) Upon a finding of good cause, the Judge may order that any 
witness be examined separately and apart from all other witnesses except 
those who may be parties to the proceeding.
    (iii) After a witness called by the complainant has testified on 
direct examination, any other party may request and obtain the 
production of any statement, or part thereof, of such witness in the 
possession of the complainant which relates to the subject matter as to 
which the witness has testified. Such production shall be made according 
to the procedures and subject to the definitions and limitations 
prescribed in the Jencks Act (18 U.S.C. 3500).
    (iv) Evidence which is immaterial, irrelevant, or unduly 
repetitious, or which is not of the sort upon which responsible persons 
are accustomed to rely, shall be excluded insofar as practicable.
    (2) Objections. (i) If a party objects to the admission of any 
evidence or to the limitation of the scope of any examination or cross-
examination or to any other ruling of the Judge, the party shall state 
briefly the grounds of such objection, whereupon an automatic exception 
will follow if the objection is overruled by the Judge.
    (ii) Only objections made before the Judge may subsequently be 
relied upon in the proceeding.
    (3) Depositions. The deposition of any witness shall be admitted in 
the manner provided in and subject to the provisions of Sec. 1.148.
    (4) Exhibits. Unless the Judge finds that the furnishing of copies 
is impracticable, four copies of each exhibit shall be filed with the 
Judge: Provided, That, where there are more than two parties in the 
proceeding, an additional copy shall be filed for each additional

[[Page 66]]

party. A true copy of an exhibit may be substituted for the original.
    (5) Official records or documents. An official government record or 
document or entry therein, if admissible for any purpose, shall be 
admissible in evidence without the production of the person who made or 
prepared the same, and shall be prima facie evidence of the relevant 
facts stated therein. Such record or document shall be evidenced by an 
official publication thereof or by a copy certified by a person having 
legal authority to make such certification.
    (6) Official notice. Official notice shall be taken of such matters 
as are judicially noticed by the courts of the United States and of any 
other matter of technical, scientific, or commercial fact of established 
character: Provided, That the parties shall be given adequate notice of 
matters so noticed, and shall be given adequate opportunity to show that 
such facts are erroneously noticed.
    (7) Offer of proof. Whenever evidence is excluded by the Judge, the 
party offering such evidence may make an offer of proof, which shall be 
included in the transcript or recording. The offer of proof shall 
consist of a brief statement describing the evidence excluded. If the 
evidence consists of a brief oral statement, it shall be included in the 
transcript or recording in toto. If the evidence consists of an exhibit, 
it shall be marked for identification and inserted in the hearing 
record. In either event, the evidence shall be considered a part of the 
transcript or recording and hearing record if the Judicial Officer, upon 
appeal, decides the Judge's ruling excluding the evidence was erroneous 
and prejudicial. If the Judicial Officer decides the Judge's ruling 
excluding the evidence was erroneous and prejudicial and that it would 
be inappropriate to have such evidence considered a part of the hearing 
record, the Judicial Officer may direct that the hearing be reopened to 
permit the taking of such evidence or for any other purpose in 
connection with the excluded evidence.
    (i) Transcript or recording. (1) Hearings to be conducted by 
telephone shall be recorded verbatim by electronic recording device. 
Hearings conducted by audio-visual telecommunication or the personal 
attendance of any individual who is expected to participate in the 
hearing shall be transcribed, unless the Judge finds that recording the 
hearing verbatim would expedite the proceeding and the Judge orders the 
hearing to be recorded verbatim. The Judge shall certify that to the 
best of his or her knowledge and belief any recording made pursuant to 
this paragraph with exhibits that were accepted into evidence is the 
record of the hearing.
    (2) If a hearing is recorded verbatim, a party requests the 
transcript of a hearing or part of a hearing, and the Judge determines 
that the disposition of the proceeding would be expedited by a 
transcript of the hearing or part of a hearing, the Judge shall order 
the verbatim transcription of the recording as requested by the party.
    (3) Recordings or transcripts of hearings shall be made available to 
any person at actual cost of duplication.

[42 FR 743, Jan. 4, 1977, as amended at 60 FR 8455, Feb. 14, 1995; 61 FR 
11504, Mar. 21, 1996]



Sec. 1.142  Post-hearing procedure.

    (a) Corrections to transcript or recording. (1) Within the period of 
time fixed by the Judge, any party may file a motion proposing 
corrections to the transcript or recording.
    (2) Unless a party files such a motion in the manner prescribed, the 
transcript or recording shall be presumed, except for obvious 
typographical errors, to be a true, correct, and complete transcript or 
recording of the testimony given at the hearing and to contain an 
accurate description or reference to all exhibits received in evidence 
and made part of the hearing record, and shall be deemed to be certified 
without further action by the Judge.
    (3) As soon as practicable after the close of the hearing and after 
consideration of any timely objections filed as to the transcript or 
recording, the Judge shall issue an order making any corrections to the 
transcript or recording which the Judge finds are warranted, which 
corrections shall be entered onto the original transcript or recording 
by the Hearing Clerk (without obscuring the original text).

[[Page 67]]

    (b) Proposed findings of fact, conclusions, orders, and briefs. 
Prior to the Judge's decision, each party shall be afforded a reasonable 
opportunity to submit for consideration proposed findings of fact, 
conclusions, order, and brief in support thereof. A copy of each such 
document filed by a party shall be served upon each of the other 
parties.
    (c) Judge's decision. (1) The Judge may, upon motion of any party or 
in his or her own discretion, issue a decision orally at the close of 
the hearing, or within a reasonable time after the closing of the 
hearing.
    (2) If the decision is announced orally, a copy thereof, excerpted 
from the transcript or recording, shall be furnished to the parties by 
the Hearing Clerk. Irrespective of the date such copy is mailed, the 
issuance date of the decision shall be the date the oral decision was 
announced.
    (3) If the decision is in writing, it shall be filed with the 
Hearing Clerk and served upon the parties as provided in Sec. 1.147.
    (4) The Judge's decision shall become effective without further 
proceedings 35 days after the issuance of the decision, if announced 
orally at the hearing, or if the decision is in writing, 35 days after 
the date of service thereof upon the respondent, unless there is an 
appeal to the Judicial Officer by a party to the proceeding pursuant to 
Sec. 1.145; Provided, however, that no decision shall be final for 
purposes of judicial review except a final decision of the Judicial 
Officer upon appeal.

[42 FR 743, Jan. 4, 1977, as amended at 53 FR 7177, Mar. 7, 1988; 60 FR 
8456, Feb. 14, 1995]



Sec. 1.143  Motions and requests.

    (a) General. All motions and requests shall be filed with the 
Hearing Clerk, and served upon all the parties, except (1) requests for 
extensions of time pursuant to Sec. 1.147, (2) requests for subpoenas 
pursuant to Sec. 1.149, and (3) motions and requests made on the record 
during the oral hearing. The Judge shall rule upon all motions and 
requests filed or made prior to the filing of an appeal of the Judge's 
decision pursuant to Sec. 1.145, except motions directly relating to the 
appeal. Thereafter, the Judicial Officer will rule on any motions and 
requests, as well as the motions directly relating to the appeal.
    (b) Motions entertained. (1) Any motion will be entertained other 
than a motion to dismiss on the pleading.
    (2) All motions and request concerning the complaint must be made 
within the time allowed for filing an answer.
    (c) Contents. All written motions and requests shall state the 
particular order, ruling, or action desired and the grounds therefor.
    (d) Response to motions and requests. Within 20 days after service 
of any written motion or request, or within such shorter or longer 
period as may be fixed by the Judge or the Judicial Officer, an opposing 
party may file a response to the motion or request. The other party 
shall have no right to reply to the response; however, the Judge or the 
Judicial Officer, in their discretion, may order that a reply be filed.
    (e) Certification to the judicial officer. The submission or 
certification of any motion, request, objection, or other question to 
the Judicial Officer prior to the filing of an appeal pursuant to 
Sec. 1.145 shall be made by and in the discretion of the Judge. The 
Judge may either rule upon or certify the motion, request, objection, or 
other question to the Judicial Officer, but not both.

[42 FR 743, Jan. 4, 1977, as amended at 55 FR 30673, July 27, 1990]



Sec. 1.144  Judges.

    (a) Assignment. No Judge shall be assigned to serve in any 
proceeding who (1) has any pecuniary interest in any matter or business 
involved in the proceeding, (2) is related within the third degree by 
blood or marriage to any party to the proceeding, or (3) has any 
conflict of interest which might impair the Judge's objectivity in the 
proceeding.
    (b) Disqualification of Judge. (1) Any party to the proceeding may, 
by motion made to the Judge, request that the Judge withdraw from the 
proceeding because of an alleged disqualifying reason. Such motion shall 
set forth with particularity the grounds of alleged disqualification. 
The Judge may then either rule upon or certify the motion to the 
Secretary, but not both.

[[Page 68]]

    (2) A Judge shall withdraw from any proceeding for any reason deemed 
by the Judge to be disqualifying.
    (c) Powers. Subject to review as provided elsewhere in this part, 
the Judge, in any assigned proceeding, shall have power to:
    (1) Rule upon motions and requests;
    (2) Set the time, place, and manner of a conference and the hearing, 
adjourn the hearing, and change the time, place, and manner of the 
hearing;
    (3) Administer oaths and affirmations;
    (4) Issue subpoenas as authorized by the statute under which the 
proceeding is conducted, requiring the attendance and testimony of 
witnesses and the production of books, contracts, papers, and other 
documentary evidence at the hearing;
    (5) Summon and examine witnesses and receive evidence at the 
hearing;
    (6) Take or order the taking of depositions as authorized under 
these rules;
    (7) Admit or exclude evidence;
    (8) Hear oral argument on facts or law;
    (9) Require each party to provide all other parties and the Judge 
with a copy of any exhibit that the party intends to introduce into 
evidence prior to any hearing to be conducted by telephone or audio-
visual telecommunication;
    (10) Require each party to provide all other parties with a copy of 
any document that the party intends to use to examine a deponent prior 
to any deposition to be conducted by telephone or audio-visual 
telecommunication;
    (11) Require that any hearing to be conducted by telephone or audio-
visual telecommunication be conducted at locations at which the parties 
and the Judge are able to transmit and receive documents during the 
hearing;
    (12) Require that any deposition to be conducted by telephone or 
audio-visual telecommunication be conducted at locations at which the 
parties are able to transmit and receive documents during the 
deposition;
    (13) Do all acts and take all measures necessary for the maintenance 
of order, including the exclusion of contumacious counsel or other 
persons;
    (14) Take all other actions authorized under these rules.
    (d) Who may act in the absence of the Judge. In case of the absence 
of the Judge or the Judge's inability to act, the powers and duties to 
be performed by the Judge under these rules of practice in connection 
with any assigned proceeding may, without abatement of the proceeding 
unless otherwise directed by the Chief Judge, be assigned to any other 
Judge.

[42 FR 743, Jan. 4, 1977, as amended at 60 FR 8456, Feb. 14, 1995]



Sec. 1.145  Appeal to Judicial Officer.

    (a) Filing of petition. Within 30 days after receiving service of 
the Judge's decision, a party who disagrees with the decision, or any 
part thereof, or any ruling by the Judge or any alleged deprivation of 
rights, may appeal such decision to the Judicial Officer by filing an 
appeal petition with the Hearing Clerk. As provided in Sec. 1.141(h)(2), 
objections regarding evidence or a limitation regarding examination or 
cross-examination or other ruling made before the Judge may be relied 
upon in an appeal. Each issue set forth in the petition, and the 
arguments thereon, shall be separately numbered; shall be plainly and 
concisely stated; and shall contain detailed citations of the record, 
statutes, regulations or authorities being relied upon in support 
thereof. A brief may be filed in support of the appeal simultaneously 
with the petition.
    (b) Response to appeal petition. Within 20 days after the service of 
a copy of an appeal petition and any brief in support thereof, filed by 
a party to the proceeding, any other party may file with the Hearing 
Clerk a response in support of or in opposition to the appeal and in 
such response any relevant issue, not presented in the appeal petition, 
may be raised.
    (c) Transmittal of record. Whenever an appeal of a Judge's decision 
is filed and a response thereto has been filed or time for filing a 
response has expired, the Hearing Clerk shall transmit to the Judicial 
Officer the record of the proceeding. Such record shall include: the 
pleadings; motions and requests filed and rulings thereon; the 
transcript or recording of the testimony taken at the hearing, together 
with the exhibits filed in connection therewith; any documents or papers 
filed in connection

[[Page 69]]

with a prehearing conference; such proposed findings of fact, 
conclusions, and orders, and briefs in support thereof, as may have been 
filed in connection with the proceeding; the Judge's decision; such 
exceptions, statements of objections and briefs in support thereof as 
may have been filed in the proceeding; and the appeal petition, and such 
briefs in support thereof and responses thereto as may have been filed 
in the proceeding.
    (d) Oral argument. A party bringing an appeal may request, within 
the prescribed time for filing such appeal, an opportunity for oral 
argument before the Judicial Officer. Within the time allowed for filing 
a response, appellee may file a request in writing for opportunity for 
such an oral argument. Failure to make such request in writing, within 
the prescribed time period, shall be deemed a waiver of oral argument. 
The Judicial Officer may grant, refuse, or limit any request for oral 
argument. Oral argument shall not be transcribed unless so ordered in 
advance by the Judicial Officer for good cause shown upon request of a 
party or upon the Judicial Officer's own motion.
    (e) Scope of argument. Argument to be heard on appeal, whether oral 
or on brief, shall be limited to the issues raised in the appeal or in 
the response to the appeal, except that if the Judicial Officer 
determines that additional issues should be argued, the parties shall be 
given reasonable notice of such determination, so as to permit 
preparation of adequate arguments on all issues to be argued.
    (f) Notice of argument; postponement. The Hearing Clerk shall advise 
all parties of the time and place at which oral argument will be heard. 
A request for postponement of the argument must be made by motion filed 
a reasonable amount of time in advance of the date fixed for argument.
    (g) Order of argument. The appellant is entitled to open and 
conclude the argument.
    (h) Submission on briefs. By agreement of the parties, an appeal may 
be submitted for decision on the briefs, but the Judicial Officer may 
direct that the appeal be argued orally.
    (i) Decision of the judicial officer on appeal. As soon as 
practicable after the receipt of the record from the Hearing Clerk, or, 
in case oral argument was had, as soon as practicable thereafter, the 
Judicial Officer, upon the basis of and after due consideration of the 
record and any matter of which official notice is taken, shall rule on 
the appeal. If the Judicial Officer decides that no change or 
modification of the Judge's decision is warranted, the Judicial Officer 
may adopt the Judge's decision as the final order in the proceeding, 
preserving any right of the party bringing the appeal to seek judicial 
review of such decision in the proper forum. A final order issued by the 
Judicial Officer shall be filed with the Hearing Clerk. Such order may 
be regarded by the respondent as final for purposes of judicial review 
without filing a petition for rehearing, reargument, or reconsideration 
of the decision of the Judicial Officer.

[42 FR 743, Jan. 4, 1977, as amended at 60 FR 8456, Feb. 14, 1995]



Sec. 1.146  Petitions for reopening hearing; for rehearing or reargument of proceeding; or for reconsideration of the decision of the Judicial Officer.

    (a) Petition requisite. (1) Filing; service; ruling. A petition for 
reopening the hearing to take further evidence, or for rehearing or 
reargument of the proceeding, or for reconsideration of the decision of 
the Judicial Officer, must be made by petition filed with the Hearing 
Clerk. Every such petition must state specifically the grounds relied 
upon. Any such petition filed prior to the filing of an appeal of the 
Judge's decision pursuant to Sec. 1.145 shall be ruled upon by the 
Judge, and any such petition filed thereafter shall be ruled upon by the 
Judicial Officer.
    (2) Petition to reopen hearing. A petition to reopen a hearing to 
take further evidence may be filed at any time prior to the issuance of 
the decision of the Judicial Officer. Every such petition shall state 
briefly the nature and purpose of the evidence to be adduced, shall show 
that such evidence is not merely cumulative, and shall set forth a good 
reason why such evidence was not adduced at the hearing.
    (3) Petition to rehear or reargue proceeding, or to reconsider the 
decision of

[[Page 70]]

the Judicial Officer. A petition to rehear or reargue the proceeding or 
to reconsider the decision of the Judicial Officer shall be filed within 
10 days after the date of service of such decision upon the party filing 
the petition. Every petition must state specifically the matters claimed 
to have been erroneously decided and alleged errors must be briefly 
stated.
    (b) Procedure for disposition of petitions. Within 20 days following 
the service of any petition provided for in this section, any party to 
the proceeding may file with the Hearing Clerk a reply thereto. As soon 
as practicable thereafter, the Judge or the Judicial Officer, as the 
case may be, shall announce the determination whether to grant or deny 
the petition. The decision of the Judicial Officer shall automatically 
be stayed pending the determination to grant or deny a timely petition. 
Such decision shall not be final for purposes of judicial review until 
the petition is denied or the decision is affirmed or modified pursuant 
to the petition and the time for judicial review shall begin to run upon 
the filing of such final action on the petition. In the event that any 
such petition is granted, the applicable rules of practice, as set out 
elsewhere herein, shall be followed. A person filing a petition under 
this section shall be regarded as the moving party, although such person 
shall be referred to as the complainant or respondent, depending upon 
the designation in the original proceeding.



Sec. 1.147  Filing; service; extensions of time; and computation of time.

    (a) Filing; number of copies. Except as otherwise provided in this 
section, all documents or papers required or authorized by the rules in 
this part to be filed with the Hearing Clerk shall be filed in 
quadruplicate: Provided, That where there are more than two parties in 
the proceeding, an additional copy shall be filed for each additional 
party. Any document or paper required or authorized under the rules in 
this part to be filed with the Hearing Clerk shall, during the course of 
an oral hearing, be filed with the Judge.
    (b) Who shall make service. Copies of all such documents or papers 
required or authorized by the rules in this part to be filed with the 
Hearing Clerk shall be served upon the parties by the Hearing Clerk, or 
by some other employee of the Department, or by a U.S. Marshal or deputy 
marshal.
    (c) Service on party other than the Secretary. (1) Any complaint or 
other document initially served on a person to make that person a party 
respondent in a proceeding, proposed decision and motion for adoption 
thereof upon failure to file an answer or other admission of all 
material allegations of fact contained in a complaint, initial decision, 
final decision, appeal petition filed by the Department, or other 
document specifically ordered by the Judge to be served by certified or 
registered mail, shall be deemed to be received by any party to a 
proceeding, other than the Secretary or agent thereof, on the date of 
delivery by certified or registered mail to the last known principal 
place of business of such party, last known principal place of business 
of the attorney or representative of record of such party, or last known 
residence of such party if an individual, Provided that, if any such 
document or paper is sent by certified or registered mail but is 
returned marked by the postal service as unclaimed or refused, it shall 
be deemed to be received by such party on the date of remailing by 
ordinary mail to the same address.
    (2) Any document or paper, other than one specified in paragraph 
(c)(1) of this section or written questions for a deposition as provided 
in Sec. 1.148(d)(2), shall be deemed to be received by any party to a 
proceeding, other than the Secretary or agent thereof, on the date of 
mailing by ordinary mail to the last known principal place of business 
of such party, last known principal place of business of the attorney or 
representative of record of such party, or last known residence of such 
party if an individual.
    (3) Any document or paper served other than by mail, on any party to 
a proceeding, other than the Secretary or agent thereof, shall be deemed 
to be received by such party on the date of:
    (i) Delivery to any responsible individual at, or leaving in a 
conspicuous place at, the last known principal place of business of such 
party, last known

[[Page 71]]

principal place of business of the attorney or representative of record 
of such party, or last known residence of such party if an individual, 
or
    (ii) Delivery to such party if an individual, to an officer or 
director of such party if a corporation, or to a member of such party if 
a partnership, at any location.
    (d) Service on another. Any subpoena, written questions for a 
deposition under Sec. 1.148(d)(2), or other document or paper, served on 
any person other than a party to a proceeding, the Secretary or agent 
thereof, shall be deemed to be received by such person on the date of:
    (1) Delivery by certified mail or registered mail to the last known 
principal place of business of such person, last known principal place 
of business of the attorney or representative of record of such person, 
or last known residence of such person if an individual;
    (2) Delivery other than by mail to any responsible individual at, or 
leaving in a conspicuous place at, any such location; or
    (3) Delivery to such party if an individual, to an officer or 
director of such party if a corporation, or to a member of such party if 
a partnership, at any location.
    (e) Proof of service. Any of the following, in the possession of the 
Department, showing such service, shall be deemed to be accurate:
    (1) A certified or registered mail receipt returned by the postal 
service with a signature;
    (2) An official record of the postal service;
    (3) An entry on a docket record or a copy placed in a docket file by 
the Hearing Clerk of the Department or by an employee of the Hearing 
Clerk in the ordinary course of business;
    (4) A certificate of service, which need not be separate from and 
may be incorporated in the document or paper of which it certifies 
service, showing the method, place and date of service in writing and 
signed by an individual with personal knowledge thereof, Provided that 
such certificate must be verified by oath or declaration under penalty 
of perjury if the individual certifying service is not a party to the 
proceeding in which such document or paper is served, an attorney or 
representative of record for such a party, or an official or employee of 
the United States or of a State or political subdivision thereof.
    (f) Extensions of time. The time for the filing of any document or 
paper required or authorized under the rules in this part to be filed 
may be extended by the Judge or the Judicial Officer as provided in 
Sec. 1.143, if, in the judgment of the Judge or the Judicial Officer, as 
the case may be, there is good reason for the extension. In all 
instances in which time permits, notice of the request for extension of 
the time shall be given to the other party with opportunity to submit 
views concerning the request.
    (g) Effective date of filing. Any document or paper required or 
authorized under the rules in this part to be filed shall be deemed to 
be filed at the time when it reaches the Hearing Clerk; or, if 
authorized to be filed with another officer or employee of the 
Department it shall be deemed to be filed at the time when it reaches 
such officer or employee.
    (h) Computation of time. Saturdays, Sundays and Federal holidays 
shall be included in computing the time allowed for the filing of any 
document or paper: Provided, That, when such time expires on a Saturday, 
Sunday, or Federal holiday, such period shall be extened to include the 
next following business day.

[42 FR 743, Jan. 4, 1977, as amended at 55 FR 30674, July 27, 1990; 60 
FR 8456, Feb. 14, 1995]



Sec. 1.148  Depositions.

    (a) Motion for taking deposition. Upon the motion of a party to the 
proceeding, the Judge may, at any time after the filing of the 
complaint, order the taking of testimony by deposition. The Motion shall 
be in writing, shall be filed with the Hearing Clerk, and shall set 
forth:
    (1) The name and address of the proposed deponent;
    (2) The name and address of the person (referred to hereafter in 
this section as the ``officer'') qualified under the regulations in this 
part to take depositions, before whom the proposed examination is to be 
made;

[[Page 72]]

    (3) The proposed time and place of the examination, which shall be 
at leat 15 days after the date of the mailing of the motion; and
    (4) The reasons why such deposition should be taken, which shall be 
solely for the purpose of eliciting testimony which otherwise might not 
be available at the time of hearing, for uses as provided in paragraph 
(g) of this section.
    (b) Judge's order for taking deposition. (1) If the Judge finds that 
the testimony may not be otherwise available at the hearing, the taking 
of the deposition may be ordered. The order shall be filed with the 
Hearing Clerk and shall state:
    (i) The time of the deposition;
    (ii) The place of the deposition;
    (iii) The manner of the deposition (telephone, audio-visual 
telecommunication, or personal attendance of those who are to 
participate in the deposition);
    (iv) The name of the officer before whom the deposition is to be 
made; and
    (v) The name of the deponent. The officer and the time, place, and 
manner need not be the same as those suggested in the motion for the 
deposition.
    (2) The deposition shall be conducted by telephone unless the Judge 
determines that conducting the deposition by audio-visual 
telecommunication:
    (i) Is necessary to prevent prejudice to a party;
    (ii) Is necessary because of a disability of any individual expected 
to participate in the deposition; or
    (iii) Would cost less than conducting the deposition by telephone. 
If the Judge determines that a deposition conducted by audio-visual 
telecommunication would measurably increase the United States Department 
of Agriculture's cost of conducting the deposition, the deposition shall 
be conducted by personal attendance of any individual who is expected to 
participate in the deposition or by telephone.
    (3) If the deposition is not conducted by telephone, the deposition 
shall be conducted by audio-visual telecommunication unless the Judge 
determines that conducting the deposition by personal attendance of any 
individual who is expected to participate in the deposition:
    (i) Is necessary to prevent prejudice to a party;
    (ii) Is necessary because of a disability of any individual expected 
to participate in the deposition; or
    (iii) Would cost less than conducting the deposition by telephone or 
audio-visual telecommunication.
    (c) Qualifications of officer. The deposition shall be made before 
the Judge or before an officer authorized by the law of the United 
States or by the law of the place of the examination to administer 
oaths, or before an officer authorized by the Secretary to administer 
oaths.
    (d) Procedure on examination. (1) The deponent shall be examined 
under oath or affirmation and shall be subject to cross-examination. 
Objections to questions or documents shall be in short form, stating the 
grounds of objections relied upon. The questions proponded, together 
with all objections made (but not including argument or debate), shall 
be recorded verbatim. In lieu of oral examination, parties may transmit 
written questions to the officer prior to the examination and the 
officer shall propound such questions to the deponent.
    (2) The applicant shall arrange for the examination of the witness 
either by oral examination, or by written questions upon agreement of 
the parties or as directed by the Judge. If the examination is conducted 
by means of written questions, copies of the applicant's questions must 
be received by the other party to the proceeding and the officer at 
least 10 days prior to the date set for the examination unless otherwise 
agreed, and any cross questions of a party other than the applicant must 
be received by the applicant and the officer at any time prior to the 
time of the examination.
    (e) Certification by officer. The officer shall certify on the 
deposition that the deponent was duly sworn and that the deposition is a 
true record of the deponent's testimony. The officer shall then securely 
seal the deposition, together with one copy thereof (unless there are 
more than two parties in the proceeding, in which case there should be 
another copy for each additional party), in an envelope and mail the

[[Page 73]]

same by registered or certified mail to the Hearing Clerk.
    (f) Corrections to the transcript or recording. (1) At any time 
prior to the hearing, any party may file a motion proposing corrections 
to the transcript or recording of the deposition.
    (2) Unless a party files such a motion in the manner prescribed, the 
transcript or recording shall be presumed, except for obvious 
typographical errors, to be a true, correct, and complete transcript or 
recording of the testimony given in the deposition proceeding and to 
contain an accurate description or reference to all exhibits in 
connection therewith, and shall be deemed to be certified correct 
without further procedure.
    (3) At any time prior to use of the deposition in accordance with 
paragraph (g) of this section and after consideration of any objections 
filed thereto, the Judge may issue an order making any corrections in 
the transcript or recording which the Judge finds are warranted, which 
corrections shall be entered onto the original transcript or recording 
by the Hearing Clerk (without obscuring the original text).
    (g) Use of deposition. A deposition ordered and taken in accordance 
with the provisions of this section may be used in a proceeding under 
these rules if the Judge finds that the evidence is otherwise admissible 
and (1) that the witness is dead; (2) that the witness is unable to 
attend or testify because of age, sickness, infirmity, or imprisonment; 
(3) that the party offering the deposition has endeavored to procure the 
attendance of the witness by subpoena, but has been unable to do so; or 
(4) that such exceptional circumstances exist as to make it desirable, 
in the interests of justice, to allow the deposition to be used. If the 
party upon whose motion the deposition was taken refuses to offer it in 
evidence, any other party may offer the deposition or any part thereof 
in evidence. If only part of a deposition is offered in evidence by a 
party, an adverse party may require the introduction of any other part 
which ought in fairness to be considered with the part introduced, and 
any party may introduce any other parts.

[42 FR 743, Jan. 4, 1977, as amended at 55 FR 30674, July 27, 1990; 60 
FR 8456, Feb. 14, 1995]



Sec. 1.149  Subpoenas.\4\
---------------------------------------------------------------------------

    \4\ This section relates only to subpoenas for the stated purpose 
and has no relevance with respect to investigatory subpoenas.
---------------------------------------------------------------------------

    (a) Issuance of subpoenas. The attendance and testimony of witnesses 
and the production of documentary evidence from any place in the United 
States on behalf of any party to the proceeding may be required by 
subpoena at any designated place of hearing if authorized by the statute 
under which the proceeding is conducted. Subpoenas shall be issued by 
the Judge upon a reasonable showing by the applicant of the grounds and 
necessity thereof; and with respect to subpoenas for the production of 
documents, the request shall also show their competency, relevancy, and 
materiality. All requests for subpoenas shall be in writing, unless 
waived by the Judge for good cause shown. Except for good cause shown, 
requests for subpoenas shall be received by the Judge at least 10 days 
prior to the date set for the hearing.
    (b) Service of subpoenas. Subpoenas may be served by any person not 
less than 18 years of age. The party at whose instance a subpoena is 
issued shall be responsible for service thereof. Subpoenas shall be 
served as provided in Sec. 1.147.

[42 FR 743, Jan. 4, 1977, as amended at 55 FR 30674, July 27, 1990; 60 
FR 8457, Feb. 14, 1995]



Sec. 1.150  Fees of witnesses.

    Witnesses summoned under these rules of practice shall be paid the 
same fees and mileage that are paid witnesses in the courts of the 
United States, and witnesses whose depositions are taken, and the 
officer taking the same, shall be entitled to the same fees as are paid 
for like services in the courts of the United States. Fees shall be paid 
by the party at whose instance the witness appears or the deposition is 
taken.



Sec. 1.151  Ex parte communications.

    (a) At no stage of the proceeding between its institution and the 
issuance of the final decision shall the Judge or Judicial Officer 
discuss ex parte the

[[Page 74]]

merits of the proceeding with any person who is connected with the 
proceeding in an advocative or in an investigative capacity, or with any 
representative of such person: Provided, That procedural matters shall 
not be included within this limitation; and Provided further, That the 
Judge or Judicial Officer may discuss the merits of the case with such a 
person if all parties to the proceeding, or their attorneys have been 
given notice and an opportunity to participate. A memorandum of any such 
discussion shall be included in the record.
    (b) No interested person shall make or knowingly cause to be made to 
the Judge or Judicial Officer an ex parte communication relevant to the 
merits of the proceeding.
    (c) If the Judge or the Judicial Officer receives an ex parte 
communication in violation of this section, the one who receives the 
communication shall place in the public record of the proceeding:
    (1) All such written communications;
    (2) Memoranda stating the substance of all such oral communications; 
and
    (3) All written responses, and memoranda stating the substance of 
all oral responses thereto.
    (d) Upon receipt of a communication knowingly made or knowingly 
caused to be made by a party in violation of this section, the Judge or 
Judicial Officer may, to the extent consistent with the interests of 
justice and the policy of the underlying statute, require the party to 
show cause why his claim or interest in the proceeding should not be 
dismissed, denied, disregarded, or otherwise adversely affected on 
account of such violation.
    (e) To the extent consistent with the interests of justice and the 
policy of the underlying statute, a violation of this section shall be 
sufficient grounds for a decision adverse to the party who knowingly 
commits a violation of this section or who knowingly causes such a 
violation to occur.
    (f) For purposes of this section ex parte communication means an 
oral or written communication not on the public record with respect to 
which reasonable prior notice to all parties is not given, but it shall 
not include requests for status reports on any matter or the proceeding.



  Subpart I--Rules of Practice Governing Cease and Desist Proceedings 
               Under Section 2 of the Capper-Volstead Act

    Authority: 7 U.S.C. 291, 292; 7 CFR 2.35, 2.41.

    Source: 45 FR 6587, Jan. 29, 1980, unless otherwise noted.



Sec. 1.160  Scope and applicability of rules in this part.

    The rules of practice in this part shall be applicable to cease and 
desist proceedings, initiated upon complaint by the Secretary of 
Agriculture, pursuant to section 2 of the Capper-Volstead Act.



Sec. 1.161  Definitions.

    As used in this part, words in the single form shall be deemed to 
import the plural, and vice versa, as the case may require. The 
following terms shall be construed, respectively, to mean:
    Act means the Capper-Volstead Act, approved February 18, 1922, 42 
Stat. 388, 7 U.S.C. 291, 292.
    Association means a cooperative association, a federation of 
cooperatives, or other association of agricultural producers, as defined 
in section 1 of the Act.
    Complainant or Secretary means the Secretary of Agriculture, United 
States Department of Agriculture, or any officer(s) or employee(s) to 
whom authority has heretofore been delegated, or whom authority may 
hereafter be delegated, to act in his or her stead.
    Complaint means a formal complaint instituted by the Secretary of 
Agriculture requiring respondent to show cause why an order should not 
be made directing it to cease and desist from acts of monopolization or 
restraint of trade, which result in undue price enhancement.
    Decision means: (1) the Judge's decision, and includes (i) findings 
and conclusions and the reasons or basis therefor on all material issues 
of fact, law, or discretion, (ii) order, and (iii) rulings on proposed 
findings, conclusions

[[Page 75]]

and order submitted by the parties, and (2) the decision and order by 
the Judicial Officer upon an appeal of the Judge's decision.
    Hearing means that part of the proceeding which involves the 
submission of evidence before the Judge for the record in the 
proceeding.
    Hearing Clerk means the Hearing Clerk, United States Department of 
Agriculture, Washington, DC 20250.
    Judge means any Administrative Law Judge appointed pursuant to 5 
U.S.C. 3105 (the Administrative Procedure Act) and assigned to the 
proceeding involved.
    Judicial Officer means an official of the United States Department 
of Agriculture delegated authority by the Secretary, pursuant to the Act 
of April 4, 1940 (7 U.S.C. 450c-450g) and Reorganization Plan No. 2 of 
1953 (5 U.S.C. App. (1988)), to perform the function involved 
(Sec. 2.35(a) of this chapter), or the Secretary if he or she exercises 
the authority so delegated.
    Respondent means the cooperative associations, or association, 
against whom a complaint has been issued.

[45 FR 6587, Jan. 29, 1980, as amended at 60 FR 8457, Feb. 14, 1995]



Sec. 1.162  Institution of proceedings.

    (a) Filing of information. Any person having information that any 
agricultural association, as defined in the Capper-Volstead Act, is 
engaged in any practice which monopolizes or restrains trade in 
interstate or foreign commerce to such an extent that the price of any 
agricultural product is unduly enhanced by reason thereof, may submit 
such information to the Secretary. Such information shall be in writing 
and shall contain a complete statement of facts detailing the price 
enhancement and the practices alleged.
    (b) Consideration of information. The Secretary shall consider all 
information filed under paragraph (a) of this section, and any other 
information which the Secretary may obtain relating to a violation of 
section 2 of the Act. If the Secretary finds that there is reason to 
believe that any association monopolizes or restrains trade in 
interstate or foreign commerce to such an extent that the price of any 
agricultural product is unduly enhanced thereby the Secretary shall 
cause a complaint to be filed, requiring the association to show cause 
why an order should not be made directing the association to cease and 
desist from such monopolization or restraint of trade. The complaint 
shall be filed with the Hearing Clerk, who shall assign to the 
proceeding a docket number and effect service upon respondent.

[45 FR 6587, Jan. 29, 1980, as amended at 60 FR 8457, Feb. 14, 1995]



Sec. 1.163  The complaint.

    The complaint shall state briefly all allegations of fact which 
constitute a basis for the proceeding, and shall designate a time and 
place for the hearing in the matter, which shall be at least 30 days 
after the service of the complaint upon the respondent.



Sec. 1.164  Answer.

    (a) Filing and service. Within 20 days after service of the 
complaint, or such other time as may be specified therein, the 
respondent shall file with the Hearing Clerk, an answer, signed by the 
respondent or the respondent's attorney. The answer shall be served upon 
the complainant by the Hearing Clerk.
    (b) Contents. The answer shall clearly admit, deny, or offer an 
explanation in response to each of the allegations of the complaint, and 
shall clearly set forth any affirmative defense.
    (c) Default. Failure to file an answer shall constitute an admission 
of the allegations in the complaint, and may be the basis for a decision 
upon the presentation of a prima facie case by the complainant.

[45 FR 6587, Jan. 29, 1980, as amended at 60 FR 8457, Feb. 14, 1995]



Sec. 1.165  Amendments.

    Amendments to the complaint may be made prior to the filing of an 
answer in which case the time for filing the answer shall be extended 20 
days or for other time agreed to by the parties. After the answer is 
filed, amendments to the complaint, or to the answer or other pleading, 
may be made by agreement of the parties or allowed at the discretion of 
the Judge. In case of an amendment which significantly changes the 
issues, the hearing shall,

[[Page 76]]

on the request of a party, be postponed or adjourned for a reasonable 
period, if the Judge determines that such action is necessary to avoid 
prejudice to the party.



Sec. 1.166  Consent order.

    At any time, complainant and respondent may agree to the entry of a 
consent order. Such order shall be entered by the Judge (prior to a 
decision) or the Judicial Officer (after a decision by the Judge), and 
become effective on the date specified therein.



Sec. 1.167  Conference

    (a) Purpose. Upon motion of a party or upon the Judge's own motion, 
the Judge may direct the parties to attend a conference when the Judge 
finds that the proceeding would be expedited by discussions on matters 
of procedure and/or possible stipulations. The conference may include 
discussions regarding:
    (1) Simplification of the issues;
    (2) Limitation of expert or other witnesses;
    (3) The orderly presentation of evidence; and
    (4) Any other matters that may expedite and aid in the disposition 
of the proceeding.
    (b) Manner of the Conference. (1) The conference shall be conducted 
by telephone or correspondence unless the Judge determines that 
conducting the conference by audio-visual telecommunication:
    (i) Is necessary to prevent prejudice to a party;
    (ii) Is necessary because of a disability of any individual expected 
to participate in the conference; or
    (iii) Would cost less than conducting the conference by telephone or 
correspondence. If the Judge determines that a conference conducted by 
audio-visual telecommunication would measurably increase the United 
States Department of Agriculture's cost of conducting the conference, 
the conference shall be conducted by personal attendance of any 
individual who is expected to participate in the conference, by 
telephone, or by correspondence.
    (2) If the conference is not conducted by telephone or 
correspondence, the conference shall be conducted by audio-visual 
telecommunication unless the Judge determines that conducting the 
conference by personal attendance of any individual who is expected to 
participate in the conference:
    (i) Is necessary to prevent prejudice to a party;
    (ii) Is necessary because of a disability of any individual expected 
to participate in the conference; or
    (iii) Would cost less than conducting the conference by audio-visual 
telecommunication.

[60 FR 8457, Feb. 14, 1995]



Sec. 1.168  Procedure for hearing.

    (a) Time and place. The oral hearing shall be held at such time and 
place as specified in the complaint, and not less than 30 days after 
service thereof. The time and place of the hearing may be changed for 
good cause, by the Judge, upon motion of either complainant or 
respondent.
    (b) Manner of hearing. (1) The Judge shall file with the Hearing 
Clerk a notice stating whether the hearing will be conducted by 
telephone, audio-visual telecommunication, or personal attendance of any 
individual expected to attend the hearing and the Judge's determination 
regarding the manner of hearing shall be made in accordance with 
paragraphs (b)(3) and (b)(4) of this section. If any change in the 
manner of the hearing is made, the Judge shall file with the Hearing 
Clerk a notice of the change, which notice shall be served on the 
parties, unless it is made during the course of an oral hearing and made 
part of the transcript or recording, or actual notice is given to the 
parties.
    (2)(i) Any party may move that the hearing be conducted by telephone 
or personal attendance of any individual expected to attend the hearing 
rather than by audio-visual telecommunication. Any motion that the 
hearing be conducted by telephone or personal attendance of any 
individual expected to attend the hearing must be accompanied by a 
memorandum in support of the motion stating the basis for the motion and 
the circumstances that require the hearing to be conducted other than by 
audio-visual telecommunication.

[[Page 77]]

    (ii) Within 10 days after the Judge issues a notice stating the 
manner in which the hearing is to be conducted, any party may move that 
the Judge reconsider the manner in which the hearing is to be conducted. 
Any motion for reconsideration must be accompanied by a memorandum in 
support of the motion stating the basis for the motion and the 
circumstances that require the hearing to be conducted other than in 
accordance with the Judges's notice.
    (3) The hearing shall be conducted by audio-visual telecommunication 
unless the Judge determines that conducting the hearing by personal 
attendance of any individual who is expected to participate in the 
hearing:
    (i) Is necessary to prevent prejudice to a party;
    (ii) Is necessary because of a disability of any individual expected 
to participate in the hearing; or
    (iii) Would cost less than conducting the hearing by audio-visual 
telecommunication. If the Judge determines that a hearing conducted by 
audio-visual telecommunication would measurably increase the United 
States Department of Agriculture's cost of conducting the hearing, the 
hearing shall be conducted by personal attendance of any individual who 
is expected to participate in the hearing or by telephone.
    (4) The Judge may, in his or her sole discretion or in response to a 
motion by a party to the proceeding, conduct the hearing by telephone if 
the Judge finds that a hearing conducted by telephone:
    (i) Would provide a full and fair evidentiary hearing;
    (ii) Would not prejudice any party; and
    (iii) Would cost less than conducting the hearing by audio-visual 
telecommunication or personal attendance of any individual who is 
expected to participate in the hearing.
    (c) Appearances. The parties may appear in person or by counsel or 
by other representative. Persons who appear as counsel or in a 
representative capacity must conform to the standards of ethical conduct 
required of practitioners before the courts of the United States.
    (d) Order of proceeding. Except as otherwise may be agreed by the 
parties and approved by the Judge, the complainant shall proceed first 
at the hearing.
    (e) Failure to appear. If respondent, after being duly notified, 
fails to appear at the hearing, and no good cause for such failure is 
established, complainant shall present a prime facie case on the matters 
denied in the answer.
    (f) Written statements of direct testimony. (1) Except as provided 
in paragraph (f)(2) of this section, each party must exchange with all 
other parties a written narrative verified statement of the oral direct 
testimony that the party will provide at any hearing to be conducted by 
telephone; the direct testimony of each employee or agent of the party 
that the party will call to provide oral direct testimony at any hearing 
to be conducted by telephone; and the direct testimony of each expert 
witness that the party will call to provide oral direct testimony at any 
hearing to be conducted by telephone. The written direct testimony of 
witnesses shall be exchanged by the parties at least 10 days prior to 
the hearing. The oral direct testimony provided by a witness at a 
hearing conducted by telephone will be limited to the presentation of 
the written direct testimony, unless the Judge finds that oral direct 
testimony which is supplemental to the written direct testimony would 
further the public interest and would not constitute surprise.
    (2) The parties shall not be required to exchange testimony in 
accordance with this paragraph if the hearing is scheduled to begin less 
than 20 days after the Judge's notice stating the time of the hearing.
    (g) Evidence. (1) The testimony of witnesses at the hearing shall be 
upon oath or affirmation, transcribed or recorded verbatim, and subject 
to cross-examination. Evidence which is immaterial, irrelevant, or 
unduly repetitious, or which is not of the sort upon which responsible 
persons are accustomed to rely, shall be excluded insofar as 
practicable.
    (2) Objections. If a party objects to the admission of any evidence 
or to the limitation of the scope of any examination or cross-
examination, the party

[[Page 78]]

shall briefly state the grounds of such objections, whereupon an 
automatic exception will follow if the objection is overruled by the 
Judge. The ruling of the Judge on any objection shall be part of the 
transcript or recording. Only objections made before the Judge may 
subsequently be relied upon in the proceeding.
    (3) Official records or documents. An official record or document, 
if admissible for any purpose, shall be admissible in evidence without 
the production of the person who made or prepared the same, and shall be 
prima facie evidence of the relevant facts stated therein. Such record 
or document shall be evidenced by an official publication thereof, or by 
a copy certified by a person having legal authority to make such 
certification.
    (4) Exhibits. Unless the Judge finds that the furnishing of multiple 
copies is impracticable, four copies of each exhibit shall be filed with 
the Judge unless the Judge finds that a greater or lesser number is 
desirable. A true copy of an exhibit may be substituted for the 
original.
    (5) Official notice. Official notice shall be taken of such matters 
as are judicially noticed by the courts of the United States and of any 
other matter of technical, scientific, or commercial fact of established 
character: Provided, That the opposing party shall be given adequate 
opportunity to show that such facts are erroneously noticed.
    (6) Offer of proof. Whenever evidence is deleted from the record, 
the party offering such evidence may make an offer of proof, which shall 
be included in the transcript or recording. The offer of proof shall 
consist of a brief statement describing the evidence excluded. If the 
evidence consists of a brief oral statement or of an exhibit, it shall 
be inserted into the transcript or recording in toto. In such event, it 
shall be considered a part of the transcript or recording and record if 
the Judicial Officer decides that the Judge's ruling in excluding the 
evidence was erroneous and prejudicial. The Judge shall not allow the 
insertion of such excluded evidence in toto if the taking of such 
evidence will consume considerable time at the hearing. In the latter 
event, if the Judicial Officer decides that the Judge's ruling excluding 
the evidence was both prejudicial and erroneous, the hearing may be 
reopened to permit the taking of such evidence.
    (7) Affidavits. Affidavits may be submitted into evidence, in lieu 
of witness testimony, only to the extent, and in the manner agreed upon 
by the parties.
    (h) Transcript or recording. (1) Hearings to be conducted by 
telephone shall be recorded verbatim by electronic recording device. 
Hearings conducted by audio-visual telecommunication or the personal 
attendance of any individual who is expected to participate in the 
hearing shall be transcribed, unless the Judge finds that recording the 
hearing verbatim would expedite the proceeding and the Judge orders the 
hearing to be recorded verbatim. The Judge shall certify that to the 
best of his or her knowledge and belief any recording made pursuant to 
this paragraph with exhibits that were accepted into evidence is the 
record of the hearing.
    (2) If a hearing is recorded verbatim, a party requests the 
transcript of a hearing or part of a hearing, and the Judge determines 
that the disposition of the proceeding would be expedited by a 
transcript of the hearing or part of a hearing, the Judge shall order 
the verbatim transcription of the recording as requested by the party.
    (3) Recordings or transcripts of hearings shall be made available to 
any person at actual cost of duplication.

[45 FR 6587, Jan. 29, 1980, as amended at 60 FR 8457, Feb. 14, 1995]



Sec. 1.169  Post-hearing procedure and decision.

    (a) Corrections to transcript or recording. (1) At any time, but not 
later than the time fixed for filing proposed findings of fact, 
conclusions and order, or briefs, as the case may be, any party may file 
a motion proposing corrections to the transcript or recording.
    (2) Unless a party files such a motion in the manner prescribed, the 
transcript or recording shall be presumed, except for obvious 
typographical errors, to be a true, correct, and complete transcript or 
recording of the testimony given at the hearing and to

[[Page 79]]

contain an accurate description or reference to all exhibits received in 
evidence and made part of the hearing record.
    (3) At any time prior to the filing of the Judge's decision and 
after consideration of any objections filed as to the transcript or 
recording, the Judge may issue an order making any corrections in the 
transcript or recording which the Judge finds are warranted, which 
corrections shall be entered onto the original transcript or recording 
by the Hearing Clerk (without obscurring the original text).
    (b) Proposed findings of fact, conclusions, order and briefs. The 
parties may file with the Hearing Clerk proposed findings of fact, 
conclusions and orders based solely upon the record and on matters 
subject to official notice, and briefs in support thereof. The Judge 
shall announce at the hearing a definite period of time within which 
these documents may be filed.
    (c) Judge's decision. The Judge, within a reasonable time after the 
termination of the period allowed for the filing of proposed findings of 
fact, conclusions and order, and briefs in support thereof, shall 
prepare, upon the basis of the record and matters officially noticed, 
and shall file with the Hearing Clerk, the Judge's decision, a copy of 
which shall be served by the Hearing Clerk upon each of the parties. 
Such decision shall become final and effective without further 
proceedings 35 days after the date of service thereof upon the 
respondent, unless there is an appeal to the Judicial Officer by a party 
to the proceeding pursuant to Sec. 1.170: Provided, That no decision 
shall be final for purposes of a request for Judicial Review, as 
provided in Sec. 1.175(a), except a final decision of the Judicial 
Officer on appeal.

[45 FR 6587, Jan. 29, 1980, as amended at 60 FR 8458, Feb. 14, 1995]



Sec. 1.170  Appeal to the Judicial Officer.

    (a) Filing of petition. Within 30 days after receiving service of 
the Judge's decision, a party who disagrees with the decision, or any 
part thereof, or any ruling by the Judge or any alleged deprivation of 
rights, may appeal such decision to the Judicial Officer by filing an 
appeal petition with the Hearing Clerk. As provided in Sec. 1.168(g)(2), 
objections regarding evidence or a limitation regarding examination or 
cross-examination or other ruling made before the Judge may be relied 
upon in an appeal. Each issue set forth in the petition, and the 
arguments thereon, shall be separately numbered; shall be plainly and 
concisely stated; and shall contain detailed citations to the record, 
statutes, regulations or authorities being relied upon in support 
thereof. A brief may be filed in support of the appeal simultaneously 
with the petition.
    (b) Response to appeal petition. Within 20 days after the service of 
a copy of an appeal petition and any brief in support thereof, filed by 
a party to the proceeding, any other party may file with the Hearing 
Clerk a response in support of or in opposition to the appeal and in 
such response any relevant issue, not presented in the appeal petition, 
may be raised.
    (c) Transmittal of record. Whenever an appeal of a Judge's decision 
is filed and a response thereto has been filed or time for filing a 
response has expired, the Hearing Clerk shall transmit to the Judicial 
Officer the record of the proceeding. Such record shall include: the 
pleadings; motions and requests filed and rulings thereon; the 
transcript or recording of the testimony taken at the hearing, together 
with the exhibits filed in connection therewith; any documents or papers 
filed in connection with a prehearing conference; such proposed findings 
of fact, conclusions, and orders, and briefs in support thereof, as may 
have been filed in connection with the proceeding; the Judge's decision; 
such exceptions, statements of objections and briefs in support thereof 
as may have been filed in the proceeding; and the appeal petition, and 
such briefs in support thereof and responses thereto as may have been 
filed in the proceeding.
    (d) Oral argument. A party bringing an appeal may request, within 
the prescribed time for filing such appeal, an opportunity for oral 
arguments before the Judicial Officer. Within the time allowed for 
filing a response, appellee may file a request in writing for 
opportunity for such an oral argument. Failure to make such request in 
writing, within the prescribed time period, shall

[[Page 80]]

be deemed a waiver of oral argument. The Judicial Officer may grant, 
refuse, or limit any request for oral argument. Oral argument shall not 
be transcribed unless so ordered in advance by the Judicial Officer for 
good cause shown upon request of a party or upon the Judicial Officer's 
own motion.
    (e) Scope of argument. Argument to be heard on appeal, whether oral 
or on brief, shall be limited to the issues raised in the appeal or in 
the response to the appeal, except that if the Judicial Officer 
determines that additional issues should be argued, the parties shall be 
given reasonable notice of such determination, so as to permit 
preparation of adequate arguments on all issues to be argued.
    (f) Notice of argument; Postponement. The Hearing Clerk shall advise 
all parties of the time and place at which oral argument will be heard. 
A request for postponement of the argument must be made by motion filed 
a reasonable amount of time in advance of the date fixed for argument.
    (g) Order of argument. The appellant is entitled to open and 
conclude the argument.
    (h) Submission on briefs. By agreement of the parties, an appeal may 
be submitted for decision on the briefs, but the Judicial Officer may 
direct that the appeal be argued orally.
    (i) Decision of the judicial officer on appeal. As soon as 
practicable after the receipt of the record from the Hearing Clerk, or, 
in case oral argument was had, as soon as practicable thereafter, the 
Judicial Officer, upon the basis of and after due consideration of the 
record and any matter of which official notice is taken, shall rule on 
the appeal. If the Judicial Officer decides that no change or 
modification of the Judge's decision is warranted, the Judicial Officer 
may adopt the Judge's decision as the final order in the proceeding, 
preserving any right of the party bringing the appeal to seek judicial 
review of such decision in the proper forum. A final order issued by the 
Judicial Officer shall be filed with the Hearing Clerk. Such order may 
be regarded by the respondent as final for purposes of a request for 
judicial review as provided in Sec. 1.175(a).

[45 FR 6587, Jan. 29, 1980, as amended at 60 FR 8458, Feb. 14, 1995]



Sec. 1.171  Intervention.

    Intervention under these rules shall not be allowed, except that, in 
the discretion of the Judicial Officer, or the Judge, any person showing 
a substantial interest in the outcome of the proceeding shall be 
permitted to participate in oral or written argument pursuant to 
Secs. 1.169 and 1.170.

[45 FR 6587, Jan. 29, 1980, as amended at 60 FR 8458, Feb. 14, 1995]



Sec. 1.172  Motions and requests.

    (a) General. All motions and requests shall be filed with the 
Hearing Clerk, and shall be served upon the parties, except those made 
on record during the oral hearing. The Judge shall rule upon all motions 
and requests filed or made prior to the filing of the certification of 
the transcript or recording. Thereafter, the Judicial Officer will rule 
on any motions or requests.
    (b) Motions entertained. Any motion will be entertained except a 
motion to dismiss on the pleadings. All motions and requests concerning 
the complaint must be made within the time allowed for filing an answer.
    (c) Contents. All written motions and requests shall state the 
particular order, ruling, or action desired and the grounds therefor.
    (d) Response to motions in request. Within ten days after service of 
any written motion or request, or within such shorter or longer period 
as may be fixed by the Judge or the Judicial Officer the opposing party 
may file a response to the motion or request.
    (e) Certification to the judicial officer. The submission or 
certification of any motion, request, objection, or other question to 
the Judicial Officer prior to the time when the Judge's certification of 
the transcript is filed with the Hearing Clerk, shall be made by and in 
the discretion of the Judge. The Judge may either rule upon or certify 
the motion, request, objection, or other question to the Judicial 
Officer, but not both.

[45 FR 6587, Jan. 29, 1980, as amended at 60 FR 8458, Feb. 14, 1995]

[[Page 81]]



Sec. 1.173  Judges.

    (a) Assignment. No Judge shall be assigned to serve in any 
proceeding who (1) has any pecuniary interest in any matter or business 
involved in the proceeding, (2) is related within the third degree by 
blood or marriage to any party to the proceeding, or (3) has 
participated in the investigation preceding the institution of the 
proceeding or in determination that it should be instituted or in the 
preparation of the moving paper or in the development of the evidence to 
be introduced therein.
    (b) Disqualification of Judge. (1) Any party to the proceeding may, 
by motion made to the Judge, request that the Judge disqualify himself 
or herself and withdraw from the proceeding. Such motion shall set forth 
with particularity the alleged disqualification. The Judge may then 
either rule upon or certify the motion to the Judicial Officer, but not 
both.
    (2) A Judge will withdraw from any proceeding in which the Judge 
deems himself or herself disqualified for any reason.
    (c) Conduct. At no stage of the proceeding between its institution 
and the issuance of the final decision shall the Judicial Officer or the 
Judge discuss ex parte the merits of the proceeding with any person who 
is connected with the proceeding as an advocate or in an investigative 
capacity, or with any representative of such person: Provided, That 
procedural matters shall not be included within the limitation: and 
Provided further, That the Judicial Officer of Judge may discuss the 
merits of the case with such a person if all parties to the proceeding, 
or their representatives, have been given an opportunity to be present. 
Any memorandum or other communication addressed to the Judicial Officer 
or a Judge, during the pendency of the proceeding, and relating to the 
merits thereof, by or on behalf of any party or any interested person, 
shall be filed with the Hearing Clerk. A copy thereof shall be served 
upon the parties to the proceeding, and, in the discretion of the Judge 
or the Judicial Officer, opportunity may be given to file a reply 
thereto within a specified period.
    (d) Powers. Subject to review by the Judicial Officer as provided 
elsewhere in this part, the Judge, in any proceeding assigned to him or 
her shall have power to:
    (1) Rule upon motions and requests;
    (2) Set the time, place, and manner of any conference, set the 
manner of the hearing, adjourn the hearing, and change the time, place, 
and manner of the hearing;
    (3) Administer oaths and affirmations;
    (4) Examine witnesses and receive relevant evidence;
    (5) Admit or exclude evidence;
    (6) Hear oral argument on facts or law;
    (7) Require each party to provide all other parties and the Judge 
with a copy of any exhibit that the party intends to introduce into 
evidence prior to any hearing to be conducted by telephone or audio-
visual telecommunication;
    (8) Require that any hearing to be conducted by telephone or audio-
visual telecommunication be conducted at locations at which the parties 
and the Judge are able to transmit and receive documents during the 
hearing;
    (9) Do all acts and take all measures necessary for the orderly 
presentation of evidence, maintenance of order, and the efficient 
conduct of the proceeding.
    (e) Who may act in the absence of the Judge. In case of the absence 
of the Judge or upon the Judge's inability to act, the powers and duties 
to be performed by the Judge under these Rules of Practice in connection 
with a proceeding assigned to the Judge may, without abatement of the 
proceeding, be assigned to any other Judge.

[45 FR 6587, Jan. 29, 1980, as amended at 60 FR 8458, Feb. 14, 1995]



Sec. 1.174  Filing; service; extensions of time; and computation of time.

    (a) Filing; Number of Copies. Except as otherwise provided by the 
Judge or the Secretary, all documents or papers required or authorized 
by the rules in this part to be filed with the Hearing Clerk shall be 
filed in quadruplicate: Provided, That, where there are parties to the 
proceeding in addition to complainant and respondent, an additional copy 
shall be filed for each such additional party. Any document or paper, 
required or authorized under the rules

[[Page 82]]

in this part to be filed with the Hearing Clerk, shall, during the 
course of an oral hearing, be filed with the Judge.
    (b) Service; proof of service. Copies of all such documents or 
papers required or authorized by the rules in this part to be filed with 
the Hearing Clerk, shall be served upon the parties by the Hearing 
Clerk, or by some other employee of the Department, or by a U.S. Marshal 
or his Deputy. Service shall be made either (1) by delivering a copy of 
the document or paper to the individual to be served or to a member of 
the partnership to be served, or to the president, secretary, or other 
executive officer or any director of the corporation or association to 
be served, or to the attorney or agent of record of such individual, 
partnership, corporation, organization, or association; or (2) by 
leaving a copy of the document or paper at the principal office or place 
of business or residence of such individual, partnership, corporation, 
organization, or association, or of his or its attorney or agent of 
record and mailing by regular mail another copy to each person at such 
address; or (3) by registering or certifying and mailing a copy of the 
document or paper, addressed to such individual, partnership, 
corporation, organization, or association, or to his or its attorney or 
agent of record, at his or its last known residence or principal office 
or place of business:
Provided, That if the registered or certified document or paper is 
returned undelivered because the addressee refused or failed to accept 
delivery, the document or paper shall be served by remailing it by 
regular mail. Proof of service hereunder shall be made by the 
certification of the person who actually made the service: Provided, 
That if the service be made by mail, as outlined in paragraph (b)(3) of 
this section proof of service shall be made by the return post office 
receipt, in the case of registered or certified mail, or by the 
certificate of the person who mailed the matter by regular mail. The 
certificate and post office receipt contemplated herein shall be filed 
with the Hearing Clerk, and the fact of filing thereof shall be noted in 
the record of the proceeding.
    (c) Extension of time. The time for the filing of any document or 
paper required or authorized under the rules in this part to be filed 
may be extended by the Judge prior to the filing of the certification of 
the transcript or recording if there is good reason for the extension. 
In all instances in which time permits, notice of the request for 
extension of the time shall be given to the other party with opportunity 
to submit views concerning the request.
    (d) Effective date of filing. Any document or paper required or 
authorized under the rules in this part to be filed shall be deemed to 
be filed at the time when it reaches the Department of Agriculture in 
Washington, D.C.; or, if authorized to be filed with an officer or 
employee of the Department at any place outside the District of 
Columbia, it shall be deemed to be filed at the time when it reaches the 
office of such officer or employee.
    (e) Computation of time. Saturdays, Sundays and Federal holidays 
shall be included in computing the time allowed for the filing of any 
document or paper: Provided, That when such time expires on a Saturday, 
Sunday or Federal holiday, such period shall be extended to include the 
next following business day.

[45 FR 6587, Jan. 29, 1980, as amended at 60 FR 8459, Feb. 14, 1995]



Sec. 1.175  Procedure following entry of cease and desist order.

    (a) Request for judicial review. An association subject to a cease 
and desist order may, within thirty days following the date of the 
order, request the Secretary to institute proceedings for judicial 
review of the order. Such request shall, to the extent practicable, 
identify findings of fact, conclusions of law, and any part of the order 
which the association claims are in error. The Secretary shall, 
thereupon, file in the district in the judicial district in which such 
association has its principal place of business, a certified copy of the 
order and of all records in the proceeding, including the request of the 
association, together with a petition asking that the order be affirmed 
and enforced.
    (b) Enforcement. If an association subject to a cease and desist 
order fails or

[[Page 83]]

neglects, within thirty days of the date of the order, or at any time 
thereafter, to obey such order, and has not made a request for judicial 
review as provided above, the Secretary shall file in the district court 
in the judicial district in which such association has its principal 
place of business a certified copy of the order and of all records in 
the proceeding, together with a petition asking that the order be 
enforced.
    (c) Notice. The Secretary shall give notice of the filing of a 
petition for enforcement or review to the Attorney General, and to the 
association, by service of a copy of the petition.



   Subpart J--Procedures Relating to Awards Under the Equal Access to 
            Justice Act in Proceedings Before the Department

    Authority: 5 U.S.C. 504(c)(1).

    Source: 53 FR 36949, Sept. 23, 1988, unless otherwise noted.

                           General Provisions



Sec. 1.180  Definitions.

    (a) The definitions contained in Subpart H--Rules of Practice 
Governing Formal Adjudicatory Proceedings (Sec. 1.132 of this part) are 
incorporated into and made applicable to this subpart.
    (b) Adjudicative Officer means an administrative law judge, 
administrative judge, or other person assigned to conduct a proceeding 
covered by the Act.
    (c) Agency means an organizational unit of the Department whose head 
reports to an official in the Office of the Secretary.
    (d) Agency counsel means the attorney from the Office of the General 
Counsel representing the agency of the Department administering the 
statute involved in the proceeding.
    (e) Days means calendar days.
    (f) Department means the United States Department of Agriculture.



Sec. 1.181  Purpose of these rules.

    The Equal Access to Justice Act, 5 U.S.C. 504 (called the Act in 
this subpart), provides for the award of attorney fees and other 
expenses to eligible individuals and entities who are parties to certain 
administrative proceedings (called adversary adjudications) before the 
Department. An eligible party may receive an award when it prevails over 
the Department unless the position of the Department was substantially 
justified or special circumstances make an award unjust. The rules in 
this subpart describe the parties eligible for awards and the 
proceedings that are covered. They also explain how to apply for awards, 
and the procedures and standards that this Department will use to make 
awards.



Sec. 1.182  When the Act applies.

    The Act applies to any adversary adjudication pending or commenced 
before this Department on or after August 5, 1985, except with respect 
to a proceeding covered under Sec. 1.183(a)(1)(iii) of this part, which 
shall be effective on or after October 21, 1986. It also applies to any 
adversary adjudication commenced on or after October 1, 1984, and 
disposed of finally before August 5, 1985, provided that an application 
for fees and expenses, as described in subpart B of these rules, has 
been filed with the agency within 30 days after August 5, 1985, and to 
any adversary adjudication pending on or commenced on or after October 
1, 1981, in which an application for fees and other expenses was timely 
filed and was dismissed for lack of jurisdiction.



Sec. 1.183  Proceedings covered.

    (a)(1) These rules apply to adversary adjudications. These are:
    (i) Adjudications required by statute to be conducted by this 
Department under 5 U.S.C. 554 in which the position of this Department 
or any other agency of the United States, or any component of an agency, 
is presented by an attorney or other representative who enters an 
appearance and participates in the proceeding,
    (ii) Appeals of decisions of contracting officers made pursuant to 
section 6 of the Contract Disputes Act of 1978 (41 U.S.C. 605) before 
the Agriculture Board of Contract Appeals as provided in section 8 of 
that Act (41 U.S.C. 607), and
    (iii) Any hearing conducted under chapter 38 of title 31, United 
States Code.

[[Page 84]]

    (2) Any proceeding in which this Department may prescribe a lawful 
present or future rate is not covered by the Act. Proceedings to grant 
or renew licenses also are excluded, but proceedings to modify, suspend, 
or revoke licenses are covered if they are otherwise ``adversary 
adjudications.'' The proceedings covered are adversary adjudications 
under the statutory provisions listed below.

Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 608c(15)(A))
Animal Quarantine Act (21 U.S.C. 104)
Animal Welfare Act (7 U.S.C. 2149)
Archaeological Resources Protection Act (16 U.S.C. 470ff)
Beef Research and Information Act (7 U.S.C. 2912)
Capper-Volstead Act (7 U.S.C. 292)
Cotton Research and Promotion Act (7 U.S.C. 2111)
Egg Products Inspection Act (21 U.S.C. 1047)
Egg Research and Consumer Information Act (7 U.S.C. 2713, 2714(b))
Endangered Species Act (16 U.S.C. 1540(a))
Federal Land Policy and Management Act (43 U.S.C. 1766)
Federal Meat Inspection Act (21 U.S.C. 604, 606, 607(e), 608, 671)
Federal Seed Act (7 U.S.C. 1599)
Horse Protection Act (15 U.S.C. 1823(c), 1825)
Packers and Stockyards Act (7 U.S.C. 193, 204, 213, 218d, 221)
Perishable Agricultural Commodities Act (7 U.S.C. 499c(c), 499d(d), 
499f(c), 499h(a), 499h(b), 499h(c), 499i, 499m(a))
Plant Quarantine Act (7 U.S.C. 163)
Potato Research and Promotion Act (7 U.S.C. 2620)
Poultry Products Inspection Act (21 U.S.C. 455, 456, 457(d), 467)
Swine Health Protection Act (7 U.S.C. 3804(b), 3805(a))
U.S. Cotton Standards Act (7 U.S.C. 51b, 53)
U.S. Grain Standards Act (7 U.S.C. 79(g)(3), 85, 86)
U.S. Warehouse Act (7 U.S.C. 246, 253)
Virus-Serum-Toxin Act (21 U.S.C. 156)
Wheat and Wheat Foods Research and Nutrition Education Act (7 U.S.C. 
3409)

    (b) The failure of this Department to identify a type of proceeding 
as an adversary adjudication shall not preclude the filing of an 
application by a party who believes the proceeding is covered by the 
Act; whether the proceeding is covered will then be an issue for 
resolution in proceedings on the application.
    (c) If a proceeding includes both matters covered by the Act and 
matters specifically excluded from coverage, any award made will include 
only fees and expenses related to covered issues.



Sec. 1.184  Eligibility of applicants.

    (a) To be eligible for an award of attorney fees and other expenses 
under the Act, the applicant must be a prevailing party to the adversary 
adjudication for which it seeks an award. The term party is defined in 5 
U.S.C. 551(3). The applicant must show that it meets all conditions of 
eligiblity set out in Secs. 1.181 through 1.186 and in Secs. 1.190 
through 1.193 of this subpart.
    (b) The types of eligible applicants are as follows:
    (1) An individual with a net worth of not more than $2 million;
    (2) The sole owner of an unincorporated business who has a net worth 
of not more than $7 million, including both personal and business 
interests, and not more than 500 employees;
    (3) A charitable or other tax-exempt organization described in 
section 501(c)(3) of the Internal Revenue Code (26 U.S.C. 501(c)(3)) 
with not more than 500 employees;
    (4) A cooperative association as defined in section 15(a) of the 
Agricultural Marketing Act (12 U.S.C. 1141j(a)) with not more than 500 
employees; and
    (5) Any other partnership, corporation, association, unit of local 
government, or organization with a net worth of not more than $7 million 
and not more than 500 employees.
    (c) For the purpose of eligibility, the net worth and number of 
employees of an applicant shall be determined as of the date the 
proceeding was initiated: Provided, that for purposes of eligibility in 
proceedings covered by Sec. 1.183(a)(1)(ii) of this part, the net worth 
and number of employees of an applicant shall be determined as of the 
date the applicant filed its appeal under 41 U.S.C. 606.
    (d) An applicant who owns an unincorporated business will be 
considered as an ``individual'' rather than a ``sole owner of an 
unincorporated business'' if the issues on which the applicant prevails 
are related primarily to personal interests rather than to business 
interests.
    (e) The employees of an applicant include all persons who regularly 
perform services for renumeration for the

[[Page 85]]

applicant, under the applicant's direction and control. Part-time 
employees shall be included on a proportional basis.
    (f) The net worth and number of employees of the applicant and all 
of its affiliates shall be aggregated to determine eligibility. Any 
individual, corporation, or other entity that directly or indirectly 
controls or owns a majority of the voting shares or other interest of 
the applicant, or any corporation or other entity of which the applicant 
directly or indirectly owns or controls a majority of the voting shares 
or other interest, will be considered an affiliate for purposes of this 
subpart, unless the adjudicative officer determines such treatment would 
be unjust and contrary to the purposes of the Act in light of the actual 
relationship between the affiliated entities. In addition, the 
adjudicative officer may determine that financial relationships of the 
applicant other than those described in this paragraph constitute 
special circumstances that would make an award unjust.
    (g) An applicant that participates in a proceeding primarily on 
behalf of one or more other persons or entities that would be ineligible 
is not itself eligible for an award.



Sec. 1.185  Standards for awards.

    (a) A prevailing applicant may receive an award for fees and 
expenses incurred in connection with a proceeding, or in a significant 
and discrete substantive portion of the proceeding, unless the position 
of the Department was substantially justified. The position of the 
Department includes, in addition to the position taken by the Department 
in the adversary adjudication, the action or failure to act by the 
Department upon which the adversary adjudication is based. The burden of 
proof that an award should not be made to an eligible prevailing 
applicant because the position of the Department was substantially 
justified is on the agency counsel.
    (b) An award will be reduced or denied if the applicant has unduly 
or unreasonably protracted the proceeding or if special circumstances 
make the award sought unjust.



Sec. 1.186  Allowable fees and expenses.

    (a) Awards will be based on rates customarily charged by persons 
engaged in the business of acting as attorneys, agents, and expert 
witnesses, even if the services were made available without charge or at 
reduced rate to the applicant.
    (b) No award for the fee of an attorney or agent under these rules 
may exceed $75.00 per hour. No award to compensate an expert witness may 
exceed the highest rate at which the Department pays expert witnesses, 
which is set out at Sec. 1.150 of this part. However, an award also may 
include the reasonable expenses of the attorney, agent, or witness as a 
separate item, if the attorney, agent, or witness ordinarily charges 
clients separately for such expenses.
    (c) In determining the reasonableness of the fee sought for an 
attorney, agent, or expert witness, the adjudicative officer shall 
consider the following:
    (1) If the attorney, agent or witness is in private practice, his or 
her customary fee for similar services, or if an employee of the 
applicant, the fully allocated cost of the services;
    (2) The prevailing rate for similar services in the community in 
which the attorney, agent, or witness ordinarily performs services;
    (3) The time actually spent in the representation of the applicant;
    (4) The time reasonably spent in light of the difficulty or 
complexity of the issues in the proceeding; and
    (5) Such other factors as may bear on the value of the services 
provided.
    (d) The reasonable cost of any study, analysis, engineering report, 
test, project or similar matter prepared on behalf of a party may be 
awarded, to the extent that the charge for the service does not exceed 
the prevailing rate for similar services, and the study or other matter 
was necessary for preparation of the applicant's case.

[[Page 86]]



Sec. 1.187  Rulemaking on maximum rates for attorney fees.

    (a) If warranted by an increase in the cost of living or by special 
circumstances (such as limited availability of attorneys qualified to 
handle certain types of proceedings), this Department may adopt 
regulations providing that attorney fees may be awarded at a rate higher 
than $75 per hour in some or all of the types of proceedings covered by 
this part. The Department will conduct any rulemaking proceedings for 
this purpose under the informal rulemaking procedures of the 
Administrative Procedure Act.
    (b) Any person may file with this Department a petition for 
rulemaking to increase the maximum rate for attorney fees in accordance 
with Sec. 1.28 of this part. The petition should identify the rate the 
petitioner believes the Department should establish and the types of 
proceedings in which the rate should be used. It also should explain 
fully the reasons why the higher rate is warranted. The Department will 
respond to the petition within 60 days after it is filed, by initiating 
a rulemaking proceeding, denying the petition, or taking other 
appropriate action.



Sec. 1.188  Awards against other agencies.

    If an applicant is entitled to an award because it prevails over 
another agency of the United States that participates in a proceeding 
before the Department and takes a position that is not substantially 
justified, the award or an appropriate portion of the award shall be 
made against that agency.



Sec. 1.189  Delegations of authority.

    The Secretary of Agriculture delegates to the Judicial Officer 
authority to take final action on matters pertaining to the Act in 
proceedings covered by these rules. The Secretary by order may delegate 
authority to take final action on matters pertaining to the Act in 
particular cases to other subordinate officials or bodies. With respect 
to proceedings covered under Sec. 1.183(a)(1)(ii) of this part, the 
Board of Contract Appeals is authorized by statute (41 U.S.C. 607) to 
take final action.

                  Information Required From Applicants



Sec. 1.190  Contents of application.

    (a) An application for an award of fees and expenses under the Act 
shall identify the applicant and the proceeding for which an award is 
sought. The application shall show that the applicant has prevailed and 
identify the position of this Department that the applicant alleges was 
not substantially justified and shall briefly state the basis for such 
allegation. Unless the applicant is an individual, the application also 
shall state the number of employees of the applicant and describe 
briefly the type and purpose of its organization or business.
    (b) The application also shall include a statement that the 
applicant's net worth does not exceed $2 million (if an individual) or 
$7 million (for all other applicants, including their affiliates). 
However, an applicant may omit this statement if:
    (1) It attaches a copy of a ruling by the Internal Revenue Service 
that it qualifies as an organizatiion described in section 501(c)(3) of 
the Internal Revenue Code (26 U.S.C. 501(c)(3)) or, in the case of a 
tax-exempt organization not required to obtain a ruling from the 
Internal Revenue Service on its exempt status, a statement that 
describes the basis for the applicant's belief that it qualifies under 
such section; or
    (2) It states that it is a cooperative association as defined in 
section 15(a) of the Agricultural Marketing Act (12 U.S.C. 114j(a)).
    (c) The application shall state the amount of fees and expenses for 
which an award is sought.
    (d) The application also may include any other matters that the 
applicant wishes this Department to consider in determining whether, and 
in what amount, an award should be made.
    (e) The application shall be signed by the applicant or an 
authorized officer or attorney of the applicant. It also shall contain 
or be accompanied by a written verification under oath or affirmation 
under penalty of perjury that the information provided in the 
application and all accompanying material is true and complete to the 
best of the signer's information and belief.

[[Page 87]]



Sec. 1.191  Net worth exhibit.

    (a) An applicant, except a qualified tax-exempt organization or 
cooperative association, must provide with its application a detailed 
exhibit showing the net worth of the applicant and any affiliates (as 
defined in Sec. 1.184 of this part) when the proceeding was initiated. 
The exhibit may be in any form convenient to the applicant that provides 
full disclosure of the applicant's and its affiliates' assets and 
liabilities and is sufficient to determine whether the applicant 
qualifies under the standards in this subpart. The adjudicative officer 
may require an applicant to file additional information to determine its 
eligibility for an award.
    (b) Ordinarily, the net worth exhibit will be included in the public 
record of the proceeding. However, an applicant that objects to public 
disclosure of information in any portion of the exhibit and believes 
there are legal grounds for withholding it from disclosure may submit 
that portion of the exhibit directly to the adjudicative officer in a 
sealed envelope labeled ``Confidential Financial Information,'' 
accompanied by a motion to withhold the information from public 
disclosure. The motion shall describe the information sought to be 
withheld and explain, in detail, why it falls within one or more of the 
specific exemptions from mandatory disclosure under the Freedom of 
Information Act, 5 U.S.C. 552(b)(1) through (9). The material in 
question shall be served on counsel representing the agency against 
which the applicant seeks an award, but need not be sereved on any other 
party to the proceeding. If the adjudicative officer finds that the 
information should not be withheld from disclosure, it shall be placed 
in the public record of the proceeding. Otherwise, any request to 
inspect or copy the exhibit shall be disposed of in accordance with the 
established procedures of this Department under the Freedom of 
Information Act (Secs. 1.1 through 1.23 of this part).



Sec. 1.192  Documentation of fees and expenses.

    (a) The application shall be accompanied by full documentation of 
the fees and expenses, including the cost of any study, analysis, 
engineering report, test, project, or similar matter, for which an award 
is sought.
    (b) The documentation shall include an affidavit from any attorney, 
agent, or expert witness representing or appearing in behalf of the 
party, stating the actual time expended and the rate at which fees and 
other expenses were computed and describing the specific services 
performed.
    (1) The affidavit shall state the services performed. In order to 
establish the hourly rate, the affidavit shall state the hourly rate 
which is billed and paid by the majority of clients during the relevant 
time periods.
    (2) If no hourly rate is paid by the majority of clients because, 
for instance, the attorney or agent represents most clients on a 
contingency basis, the attorney or agent shall provide information about 
two attorneys or agents with similar experience, who perform similar 
work, stating their hourly rate.
    (c) The documentation also shall include a description of any 
expenses for which reimbursement is sought and a statement of the 
amounts paid and payable by the applicant or by any other person or 
entity for the services provided.
    (d) The adjudicative officer may require the applicant to provide 
vouchers, receipts, or other substantiation for any fees or expenses 
claimed, pursuant to Sec. 1.199 of this part.



Sec. 1.193  Time for filing application.

    (a) An application may be filed whenever the applicant has prevailed 
in the proceeding or in a significant and discrete substantive portion 
of the proceeding, but in no case later than 30 days after final 
disposition of the proceeding by the Department.
    (b) For the purposes of this rule, final disposition means the date 
on which a decision or order disposing of the merits of the proceeding 
or any other complete resolution of the proceeding, such as a settlement 
or voluntary dismissal, become final and unappealable, both within the 
Department and to the courts.
    (c) If review or reconsideration is sought or taken of a decision as 
to which an applicant believes it has prevailed, proceedings for the 
award of

[[Page 88]]

fees shall be stayed pending final disposition of the underlying 
controversy. When the United States appeals the underlying merits of an 
adversary adjudication to a court, no decision on an application for 
fees and other expenses in connection with that adversary adjudication 
shall be made until a final and unreviewable decision is rendered by the 
court on the appeal or until the underlying merits of the case have been 
finally determined pursuant to the appeal.

                 Procedures for Considering Applications



Sec. 1.194  Filing and service of documents.

    Any application for an award or other pleading or document related 
to an application shall be filed and served on all parties to the 
proceeding in the same manner as other pleadings in the proceeding 
except as provided in Sec. 1.191 of this part for confidential financial 
information. The provisions relating to filing, service, extensions of 
time, and computation of time contained in Sec. 1.147 of this part are 
incorporated into and made applicable to this subpart, except that the 
statutory 30 day time limit on filing the application as set out in 
Sec. 1.193 of this part may not be extended.



Sec. 1.195  Answer to application.

    (a) Within 30 days after service of an application, agency counsel 
may file an answer. If agency counsel fails to timely answer or settle 
the application, the adjudicative officer, upon a satisfactory showing 
of entitlement by the applicant, may make an award for the applicant's 
allowable fees and expenses.
    (b) If agency counsel and the applicant believe that the issues in 
the fee application can be settled, they may jointly file a statement of 
intent to negotiate a settlement. The filing of this statement shall 
extend the time for filing an answer for an additional 30 days, and 
further extensions may be granted by the adjudicative officer upon 
request by agency counsel and the applicant.
    (c) The answer shall explain in detail any objections to the award 
requested and identify the facts relied on in support of agency 
counsel's position. If the answer is based on any alleged facts not 
already in the record of the proceeding, agency counsel shall include 
with the answer either supporting affidavits or a request for further 
proceedings under Sec. 1.199 of this part.



Sec. 1.196  Reply.

    Within 15 days after service of an answer, the applicant may file a 
reply. If the reply is based on any alleged facts not already in the 
record of the proceeding, the applicant shall include with the reply 
either supporting affidavits or a request for further proceedings under 
Sec. 1.199 of this part.



Sec. 1.197  Comments by other parties.

    Any party to a proceeding other than the applicant and agency 
counsel may file comments on an application within 30 days after it is 
served or on an answer within 15 days after it is served. A commenting 
party may not participate further in proceedings on the application, 
unless the adjudicative officer determines that the public interest 
requires such participation in order to permit full exploration of 
matters raised in the comments.



Sec. 1.198  Settlement.

    The applicant and agency counsel may agree on a proposed settlement 
of the award before final action on the application, either in 
connection with a settlement of the underlying proceeding, or after the 
underlying proceeding has been concluded. If a prevailing party and 
agency counsel agree on a proposed settlement of an award before an 
application has been filed, the application shall be filed with the 
proposed settlement.



Sec. 1.199  Further proceedings.

    (a) Ordinarily, the determination of an award will be made on the 
basis of the written record. However, on request of either the applicant 
or agency counsel, or on his or her own initiative, the adjudicative 
officer may order further proceedings, such as an informal conference, 
oral argument, additional written submissions or, as to issues other 
than substantial justification (such as the applicant's eligibility or 
substantiation of fees and expenses),

[[Page 89]]

pertinent discovery or an evidentiary hearing. Such further proceedings 
shall be held only when necessary for full and fair resolution of the 
issues arising from the application, and shall be conducted as promptly 
as possible. Whether the position of the Department was substantially 
justified shall be determined on the basis of the administrative record, 
as a whole, which is made in the adversary adjudication for which fees 
and other expenses are sought.
    (b) A request that the adjudicative officer order further 
proceedings under this section shall identify specifically the 
information sought or the disputed issues, and shall explain 
specifically why the additional proceedings are necessary to resolve the 
issues.
    (c) In the event that an evidentiary hearing is held, it shall be 
conducted pursuant to Secs. 1.130 through 1.151 of this part, except 
that any hearing in a proceeding covered by Sec. 1.183(a)(1)(ii) of this 
part shall be conducted pursuant to Rules 17 through 25 of the Board of 
Contract Appeals contained in Sec. 24.21 of this title.



Sec. 1.200  Decision.

    The adjudicative officer or Board of Contract Appeals shall issue an 
initial decision on the application as expeditiously as possible after 
completion of proceedings on the application. Whenever possible, the 
decision shall be made by the same administrative judge or panel that 
decided the contract appeal for which fees are sought. The decision 
shall include written findings and conclusions on the applicant's 
eligibility and status as a prevailing party, and an explanation of the 
reasons for any difference between the amount requested and the amount 
awarded. This decision also shall include, if at issue, findings on 
whether the position of the Department was substantially justified, 
whether the applicant unduly protracted the proceedings, or whether 
special circumstances make an award unjust. If the applicant has sought 
an award against more than one agency, the decision shall allocate 
responsibility for payment of any award made among the agencies, and 
shall explain the reasons for the allocation made.



Sec. 1.201  Department review.

    (a) Except with respect to a proceeding covered by 
Sec. 1.183(a)(1)(ii) of this part, either the applicant or agency 
counsel may seek review of the initial decision on the fee application, 
in accordance with the provisions of Secs. 1.145(a) and 1.146(a) of this 
part. If neither the applicant nor agency counsel seeks review, the 
initial decision on the fee application shall become a final decision of 
the Department 35 days after it is served upon the applicant. If review 
is taken, it will be in accord with the provisions of Secs. 1.145(b) 
through (i) and 1.146(b) of this part.
    (b) With respect to a proceeding covered by Sec. 1.183(a)(1)(ii) of 
this part, either party may seek reconsideration of the decision on the 
fee application in accordance with Rule 29 of the Board of Contract 
Appeals contained in Sec. 24.21 of this title. In addition, either party 
may appeal a decision of the Board of Contract Appeals to the Court of 
Appeals for the Federal Circuit in accordance with 41 U.S.C. 607.



Sec. 1.202  Judicial review.

    Judicial review of final agency decisions on awards may be sought as 
provided in 5 U.S.C. 504(c)(2).



Sec. 1.203  Payment of award.

    An applicant seeking payment of an award shall submit to the head of 
the agency administering the statute involved in the proceeding a copy 
of the final decision of the Department granting the award, accompanied 
by a statement that the applicant will not seek review of the decision 
in the United States courts. The agency will pay the amount awarded to 
the applicant within 60 days, unless judicial review of the award or of 
the underlying decision of the adversary adjudication has been sought by 
the applicant or any other party to the proceeding.



  Subpart K--Appearance of USDA Employees as Witnesses in Judicial or 
                       Administrative Proceedings

    Source: 55 FR 42347, Oct. 19, 1990, unless otherwise noted.

[[Page 90]]



Sec. 1.210  Purpose.

    This subpart sets forth procedures governing the appearance of USDA 
employees as witnesses in order to testify or produce official documents 
in judicial or administrative proceedings when such appearance is in 
their official capacity or arises out of or is related to their 
employment with USDA. These regulations do not apply to appearances by 
USDA employees as witnesses in judicial or administrative proceedings 
which are purely personal or do not arise out of or relate to their 
employment with USDA. This subpart also does not apply to Congressional 
requests or subpoenas for testimony or documents.



Sec. 1.211  Definitions.

    (a) Administrative proceeding means any proceeding pending before 
any federal, state, or local agency and undertaken for the purpose of 
the issuance of any regulations, orders, licenses, permits, or other 
rulings, or the adjudication of any matter, dispute, or controversy.
    (b) Appearance means testimony or production of documents the 
request for which arises out of an employee's official duties with USDA 
or relates to his or her employment with USDA. For the purpose of this 
subpart, an appearance also includes an affidavit, deposition, 
interrogatory, or other required written submission.
    (c) Judicial proceeding means any case or controversy pending before 
any federal, state, or local court.
    (d) Travel expenses means the amount of money paid to a witness for 
reimbursement for transportation, lodging, meals, and other 
miscellaneous expenses in connection with attendance at a judicial or 
administrative proceeding.
    (e) USDA means the United States Department of Agriculture.
    (f) USDA agency means an organizational unit of USDA whose head 
reports to an official within the Office of the Secretary of 
Agriculture.
    (g) Valid summons, subpoena, or other compulsory process means an 
order that is served properly and within the legal authority and the 
jurisdictional boundaries of the court or administrative agency or 
official that has issued it.
    (h) Witness fees means the amount of money paid to a witness as 
compensation for attendance at a judicial or administrative proceeding.



Sec. 1.212  General.

    No USDA employee may provide testimony or produce documents in a 
judicial or administrative proceeding unless authorized in accordance 
with this subpart.



Sec. 1.213  Appearance as a witness on behalf of the United States.

    An employee of USDA may appear as a witness on behalf of the United 
States in any judicial or administrative proceeding without the issuance 
of a summons, subpoena, or other compulsory process. Employees should 
obtain permission for such an appearance from their immediate supervisor 
unless the USDA agency or General Counsel has issued instructions 
providing otherwise.



Sec. 1.214  Appearance as a witness on behalf of a party other than the United States where the United States is not a party.

    (a) An employee of USDA served with a valid summons, subpoena, or 
other compulsory process demanding his or her appearance, or otherwise 
requested to appear on behalf of a party other than the United States in 
a judicial or administrative proceeding in which the United States is 
not a party, shall promptly notify the head of his or her USDA agency of 
the existence and nature of the order compelling his or her appearance, 
or of the document requesting his or her attendance. He or she shall 
also specify, if that is known, the nature of the judicial or 
administrative proceeding and the nature of the testimony or documents 
requested.
    (b)(1) An employee of USDA served with a valid summons, subpoena, or 
other compulsory process, or requested to appear as a witness on behalf 
of a party other than the United States in a judicial or administrative 
proceeding in which the United States is not a party, may appear only if 
such appearance has been authorized by the head of his or her USDA 
agency, with the concurrence of the General Counsel, based upon a 
determination that such

[[Page 91]]

an appearance is in the interest of USDA.
    (2) An employee of USDA requested to appear as a witness on behalf 
of a party other than the United States in a judicial or administrative 
proceeding in which the United States is not a party, without the 
service of a valid summons, subpoena, or other compulsory process, may 
appear only if such appearance has been authorized by the head of his or 
her USDA agency and approved by the appropriate Assistant Secretary, 
Under Secretary or other general officer, and by the General Counsel, 
based upon a determination that such an appearance is in the interest of 
USDA.
    (c) Unless an appearance is authorized as provided in paragraphs 
(b)(1) or (b)(2) of this section, the employee shall appear at the 
stated time and place (unless advised by the General Counsel or his or 
her designee that the summons, subpoena, or other process was not 
validly issued or served), produce a copy of these regulations and 
respectfully decline to provide any testimony. As appropriate, the 
General Counsel or his or her designee will request the assistance of 
the Department of Justice or of a United States Attorney, in the case of 
a judicial proceeding; or of the official or attorney representing the 
United States, in the case of an administrative proceeding, to represent 
the interests of the employee and USDA.
    (d) If there is any question regarding the validity of a summons, 
subpoena, or other compulsory process, an employee shall contact the 
Office of the General Counsel for advice.
    (e)(1) In determining whether the employee's appearance is in the 
interest of USDA, authorizing officials should consider the following:
    (i) what interest of USDA would be promoted by the employee's 
testimony;
    (ii) whether an appearance would result in an unnecessary 
interference with the duties of the USDA employee;
    (iii) whether an employee's testimony would result in the appearance 
of improperly favoring one litigant over another.
    (2) The considerations listed in paragraph (e)(1) of this section 
are illustrative and not exhaustive.



Sec. 1.215  Subpoenas duces tecum for USDA records in judicial or administrative proceedings in which the United States is not a party.

    (a) Subpoenas duces tecum for USDA records in judicial or 
administrative proceedings in which the United States is not a party 
shall be deemed to be requests for records under the Freedom of 
Information Act and shall be handled pursuant to the rules governing 
public disclosure under subpart A of this part.
    (b) Whenever a subpoena duces tecum compelling the production of 
records is served on a USDA employee in a judicial or administrative 
proceeding in which the United States is not a party, the employee, 
after consultation with the General Counsel or his or her designee, 
shall appear in response thereto, respectfully decline to produce the 
records on the grounds that it is prohibited by this section and state 
that the production of the records involved will be handled in 
accordance with subpart A of this part.



Sec. 1.216  Appearance as a witness or production of documents on behalf of a party other than the United States where the United States is a party.

    (a) An employee of USDA served with a valid summons, subpoena, or 
other compulsory process demanding his or her appearance, or otherwise 
requested to appear or produce documents on behalf of a party other than 
the United States in a judicial or administrative proceeding in which 
the United States is a party, shall promptly notify the head of his or 
her USDA agency and the General Counsel or his or her designee of the 
existence and nature of the order compelling his or her appearance, or 
of the document requesting his or her appearance. He or she shall also 
specify, if that is known, the nature of the judicial or administrative 
proceeding and the nature of the testimony or documents requested.
    (b)(1) Except as provided in paragraph (b)(2) of this section, an 
employee of USDA only may appear as a witness or produce records on 
behalf of a party other than the United States in a judicial or 
administrative proceeding in which the United States is a party if

[[Page 92]]

such appearance or production has been ordered by the service on the 
employee of a valid summons, subpoena, or other compulsory process 
issued by a court, administrative agency, or other official authorized 
to compel his or her appearance.
    (2) An employee requested to appear as a witness or produce records 
on behalf of a party other than the United States in a judicial or 
administrative proceeding in which the United States is a party, without 
being served a valid summons, subpoena, or other compulsory process, may 
appear or produce records only if such appearance or production has been 
authorized by a representative of the Department of Justice, the United 
States Attorney, or other counsel who is representing the United States 
in the case of a judicial proceeding; or by the official or attorney 
representing the United States, in the case of an administrative 
proceeding.
    (c) The head of the USDA agency shall consult with the General 
Counsel or his or her designee as to whether there are grounds to oppose 
the employee's attendance or production of documents and, if so, whether 
to seek to quash the summons, subpoena, compulsory process, or to deny 
authorization under paragraph (b)(2) of this section.
    (d) As appropriate, the General Counsel or his or her designee will 
request the assistance of the Department of Justice, a United States 
Attorney, or other counsel representing the United States, in the case 
of a judicial proceeding; or of the official or attorney representing 
the United States, in the case of an administrative proceeding, to 
represent the interest of the employee and USDA.
    (e) If there is any question regarding the validity of a summons, 
subpoena, or other compulsory process, an employee shall contact the 
Office of the General Counsel for advice.



Sec. 1.217  Witness fees and travel expenses.

    (a) Any employee of USDA who attends a judicial or administrative 
proceeding as a witness in order to testify or produce official 
documents on behalf of the United States is entitled to travel expenses 
in connection with such appearance in accordance with the Agriculture 
Travel Regulations.
    (b) An employee of USDA who attends a judicial or administrative 
proceeding on behalf of the United States is not entitled to receive 
fees for such attendance.
    (c) An employee of USDA who attends a judicial or administrative 
proceeding on behalf of a party other than the United States when such 
appearance is in his or her official capacity or arises out of or 
relates to his or her employment with USDA is entitled to travel 
expenses in accordance with the Agriculture Travel Regulations to the 
extent that such expenses are not paid for by the court, agency, or 
official compelling his or her appearance or by the party on whose 
behalf he or she appears.
    (d) An employee of USDA who attends a judicial or administrative 
proceeding on behalf of a party other than the United States when such 
appearance is in his or her official capacity or arises out of or 
relates to his or her employment with USDA is required to collect the 
authorized fees for such service and remit such fees to his or her USDA 
agency.



Sec. 1.218  Penalty.

    An employee who testifies or produces records in a judicial or 
administrative proceeding in violation of the provisions of this 
regulation shall be subject to disciplinary action.



Sec. 1.219  Delegations.

    (a) Except as provided in paragraphs (b), (c), or (d) of this 
section, the head of a USDA agency may delegate his or her 
responsibilities under this subpart, including the requirement to be 
notified of the receipt of a subpoena as provided in Secs. 1.214(a) and 
1.216(a) of this part, to employees of his or her agency as follows:
    (1) In the National office of the agency, to a level no lower than 
two levels below the agency head;
    (2) In a field component of an agency, to a level no lower than the 
official who heads a state office.
    (b) Notwithstanding paragraph (a) of this section, the Chief of the 
Forest

[[Page 93]]

Service may delegate his responsibilities under this subpart as follows:
    (1) In the National office of the Forest Service, to a level no 
lower than a Deputy Chief of the Forest Service;
    (2) In a field component of the Forest Service, to a level no lower 
than a Regional Forester or Station Director.
    (c) Notwithstanding paragraph (a) of this section, the General 
Counsel may delegate his responsibilities under this subpart as follows:
    (1) In the National office of the Office of the General Counsel, to 
a level no lower than an Assistant General Counsel;
    (2) In the field component of the Office of the General Counsel, to 
Regional Attorneys who may redelegate their responsibilities to 
Associate Regional Attorneys and Assistant Regional Attorneys who report 
to them.
    (d) The responsibilities assigned to heads of agencies and to 
Assistant and Under Secretaries in Sec. 1.214(b)(2) of this part may not 
be redelegated.

[58 FR 62495, Nov. 29, 1993; 58 FR 64353, Dec. 6, 1993]



   Subpart L--Procedures Related to Administrative Hearings Under the 
                Program Fraud Civil Remedies Act of 1986

    Authority: 31 U.S.C. 3801-3812.

    Source: 56 FR 9582, Mar. 7, 1991, correctly designated at 57 FR 
3909, Feb. 3, 1992, unless otherwise noted.



Sec. 1.301  Basis, purpose and scope.

    (a) Basis. This subpart implements the Program Fraud Civil Remedies 
Act of 1986, Public Law No. 99-509, Sections 6101-6104, 100 Stat. 1874 
(1986). This statute added 31 U.S.C. 3801-3812. Section 3809 of Title 
31, United States Code, requires the Secretary to promulgate regulations 
necessary to implement the provisions of the statute.
    (b) Purpose. This subpart--
    (1) Establishes administrative procedures for imposing civil 
penalties and assessments against persons who make, submit, or present, 
or cause to be made, submitted, or presented, false, fictitious, or 
fraudulent claims or written statements to authorities or to their 
agents, and
    (2) Specifies the hearing and appeal rights of persons subject to 
allegations of liability for such penalties and assessments.
    (c) Scope. The procedures for imposing civil penalties and 
assessments established by this subpart are intended to enhance existing 
administrative enforcement efforts against fraud and to provide an 
additional remedy against false, fictitious, and fraudulent claims and 
statements in the programs administered by this Department.



Sec. 1.302  Definitions.

    (a) Agency means a constituent organizational unit of the USDA.
    (b) Agency Fraud Claims Officer--(AFCO) means an officer or employee 
of an agency who is designated by the head of that agency to receive the 
reports of the investigating official, evaluate evidence, and make a 
recommendation to the reviewing official with respect to the 
determination required under Sec. 1.305 of this part.
    (c) ALJ means an Administrative Law Judge in USDA appointed pursuant 
to 5 U.S.C. 3105 or detailed to the USDA pursuant to 5 U.S.C. 3344.
    (d) Authority means the USDA.
    (e) Benefits means, except as otherwise defined in this subpart, 
anything of value, including but not limited to any advantage, 
preference, privilege, license, permit, favorable decision, ruling, 
status, or loan guarantee.
    (f) Claim means any request, demand, or submission--
    (1) Made to USDA for property, services, or money (including money 
representing grants, loans, insurance, or benefits);
    (2) Made to a recipient of property, services, or money from USDA or 
to a party to a contract with USDA--
    (i) For property or services if the United States--
    (A) Provided such property or services; or
    (B) Provided any portion of the funds for the purchase of such 
property or services; or
    (C) Will reimburse such recipient or party for the purchase of such 
property or services; or
    (ii) For the payment of money (including money representing grants,

[[Page 94]]

loans, insurance, or benefits) if the United States--
    (A) Provided any portion of the money requested or demanded; or
    (B) Will reimburse such recipient or party for any portion of the 
money paid on such request or demand; or
    (3) Made to USDA which has the effect of decreasing an obligation to 
pay or account for property, services, or money.
    (g) Complaint means the written notice served by the reviewing 
official on the respondent under Sec. 1.307 of this part.
    (h) Days means business days for all periods referred to in these 
regulations of 10 days or less and calendar days for all periods 
referred to in these regulations in excess of 10 days.
    (i) Family means the individual's parents, spouse, siblings, 
children, and grandchildren with respect to an individual making a claim 
or statement for benefits.
    (j) Government means the United States Government.
    (k) Household means a family or one or more individuals occupying a 
single residence.
    (l) Individual means a natural person.
    (m) Investigating official means the Inspector General of USDA or an 
officer or employee of the Office of Inspector General designated by the 
Inspector General and serving in a position for which the rate of basic 
pay is not less than the minimum rate of basic pay for grade GS-16 under 
the General Schedule.
    (n) Judicial officer means an official of USDA delegated authority 
by the Secretary, pursuant to the Act of April 4, 1940 (7 U.S.C. 450c-
450g) and Reorganization Plan No. 2 of 1953, 67 Stat. 633, as amended by 
Public Law No. 97-325 (7 U.S.C. 2201n.), to perform the adjudicating 
function for the Department under Sec. 2.35 of this title, or the 
Secretary if he exercises the authority so delegated.
    (o) Knows or has reason to know means that a person, with respect to 
a claim or statement--
    (1)(i) Has actual knowledge that the claim or statement is false, 
fictitious, or fraudulent;
    (ii) Acts in deliberate ignorance of the truth or falsity of the 
claim or statement; or
    (iii) Acts in reckless disregard of the truth or falsity of the 
claim or statement; and
    (2) No proof of specific intent to defraud is required.
    (p) Makes means presents, submits, or causes to be made, presented, 
or submitted. As the context requires, ``making'' or ``made'' shall 
likewise include the corresponding forms of such terms.
    (q) Person means any individual, partnership, corporation, 
association, or private organization, and includes the plural of that 
term.
    (r) Representative means an attorney who is a member in good 
standing of the bar of any State, Territory, or possession of the United 
States or of the District of Columbia or the Commonwealth of Puerto 
Rico. This definition is not intended to foreclose pro se appearances. 
An individual may appear for himself or herself, and a corporation or 
other entity may appear by an owner, officer, or employee of the 
corporation or entity.
    (s) Respondent means any person alleged in a complaint issued under 
Sec. 1.308 of this part to be liable for a civil penalty or assessment 
under Sec. 1.303 of this part.
    (t) Reviewing official means an officer or employee of USDA--
    (1) Who is designated by the Secretary to make the determination 
required under Sec. 1.305 of this part;
    (2) Who is serving in a position for which the rate of basic pay is 
not less than the minimum rate of basic pay for grade GS-16 under the 
General Schedule; and
    (3) Who is--
    (i) Not subject to supervision by, or required to report to, the 
investigating official; and
    (ii) Not employed in the organizational unit of USDA in which the 
investigating official is employed.
    (u) Secretary means the Secretary of Agriculture.
    (v) Statement means any representation, certification, affirmation, 
document, record, or accounting or bookkeeping entry made--
    (1) With respect to a claim or to obtain the approval or payment of 
a

[[Page 95]]

claim (including relating to eligibility to make a claim); or
    (2) With respect to (including relating to eligibility for)--
    (i) A contract with, or a bid or proposal for a contract with; or
    (ii) A grant, loan, or benefit from, USDA, or any State, political 
subdivision of a State, or other party, if the United States Government 
provides any portion of the money or property under such contract or for 
such grant, loan, or benefit, or if the Government will reimburse such 
State, political subdivision, or party for any portion of the money or 
property under such contract or for such grant, loan, or benefit.
    (w) USDA means the U.S. Department of Agriculture.



Sec. 1.303  Basis for civil penalties and assessments.

    (a) Claims. (1) Except as provided in paragraph (c) of this section, 
any person who makes a claim that the person knows or has reason to 
know--
    (i) Is false, fictitious, or fraudulent;
    (ii) Includes or is supported by any written statement which asserts 
a material fact which is false, fictitious, or fraudulent;
    (iii) Includes or is supported by any written statement that--
    (A) Omits a material fact;
    (B) Is false, fictitious, or fraudulent as a result of such 
omission; and
    (C) Is a statement in which the person making such statement has a 
duty to include such material fact; or
    (iv) Is for payment for the provision of property or services which 
the person has not provided as claimed,

shall be subject, in addition to any other remedy that may be prescribed 
by law, to a civil penalty of not more than $5,000 for each such claim.
    (2) Each voucher, invoice, claim form, or other individual request 
or demand for property, services, food coupons, or money constitutes a 
separate claim.
    (3) A claim shall be considered made to the USDA, recipient, or 
party when such claim is actually made to an agent, fiscal intermediary, 
or other entity, including any State or political subdivision thereof, 
acting for or on behalf of the USDA, recipient, or party.
    (4) Each claim for property, services, food coupons, or money is 
subject to a civil penalty regardless of whether such property, 
services, food coupons, or money is actually delivered or paid.
    (5) If the Government has made payment (including transferred 
property or provided services) on a claim, a person subject to a civil 
penalty under paragraph (a)(1) of this section shall also be subject to 
an assessment of not more than twice the amount of such claim or that 
portion thereof that is determined to be in violation of paragraph 
(a)(1) of this section. Such assessment shall be in lieu of damages 
sustained by the Government because of such claim.
    (b) Statements. (1) Except as provided in paragraph (c) of this 
section, any person who makes a written statement that--
    (i) The person knows or has reason to know--
    (A) Asserts a material fact which is false, fictitious, or 
fraudulent; or
    (B) Is false, fictitious, or fraudulent because it omits a material 
fact that the person making the statement had a duty to include in such 
statement; and
    (ii) Contains or is accompanied by an express certification or 
affirmation of the truthfulness and accuracy of the contents of the 
statement, shall be subject, in addition to any other remedy that may be 
prescribed by law, to a civil penalty of not more than $5,000 for each 
such statement.
    (2) Each written representation, certification, or affirmation 
constitutes a separate statement.
    (3) A statement shall be considered made to the USDA when such 
statement is actually made to an agent, fiscal intermediary, or other 
entity, including any State or political subdivision thereof, acting for 
or on behalf of the USDA.
    (c) Benefits. (1) In the case of any claim or statement made by any 
individual relating to any of the benefits listed in paragraph (c)(2) of 
this section received by such individual, such individual may be held 
liable for penalties and assessments under this section only if such 
claim or statement is made by such individual in making application for 
such benefits with respect

[[Page 96]]

to such individual's eligibility to receive such benefits.
    (2) For purposes of this paragraph, the term benefits means--
    (i) Benefits under the food stamp program established under the Food 
Stamp Act of 1977 which are intended as food assistance for the personal 
use of the individual who receives the benefits or for a member of the 
individual's family or household (as defined in section 3(h) of the Food 
Stamp Act of 1977);
    (ii) Benefits under the National School Lunch Act;
    (iii) Benefits under any housing assistance program for lower income 
families or elderly or handicapped persons which is administered by the 
Secretary or USDA;
    (iv) Benefits under the special supplemental food program for women, 
infants, and children established under section 17 of the Child 
Nutrition Act of 1966 which are intended for the personal use of the 
individual who receives the benefits or for a member of the individual's 
family or household.
    (d) Intent. No proof of specific intent to defraud is required to 
establish liability under this section.
    (e) More than one person liable. In any case in which it is 
determined that more than one person is liable for making a claim or 
statement under this section, each person may be held liable for a civil 
penalty under this section.
    (f) Joint and several liability. In any case in which it is 
determined that more than one person is liable for making a claim under 
this section on which the government has made payment (including 
transferred property or provided services), an assessment may be imposed 
against any such person or jointly and severally against any combination 
of such persons. The aggregate amount of the assessments collected with 
respect to such claim shall not exceed twice the portion of such claim 
determined to be in violation of paragraph (a)(1) of this section.



Sec. 1.304  Investigation.

    (a) The investigating official may investigate allegations that a 
person is liable under Sec. 1.303 of this part.
    (b) If an investigating official concludes that a subpoena pursuant 
to the authority conferred by 31 U.S.C. 3804(a) is warranted, the 
investigating officer may issue a subpoena, which shall notify the 
person to whom it is addressed of the authority under which it is issued 
and shall identify the information, documents, reports, answers, 
records, accounts, papers, or data sought.
    (c) The investigating official may designate a person to act on his 
behalf to receive the documents or other materials sought by a subpoena 
issued under paragraph (b) of this section.
    (d) The person receiving such subpoena shall be required to tender 
to the investigating official or the person designated to receive the 
documents a certification that the documents or other materials sought 
have been produced, or that such documents or other materials are not 
available and the reasons therefore, or that such documents or other 
materials, suitably identified, have been withheld based upon the 
assertion of an identified privilege.
    (e) Each agency shall develop criteria for determining which 
allegations that a person is liable under Sec. 1.303 of this part are to 
be referred to the investigating official.
    (f) If the investigating official concludes that an action under the 
Program Fraud Civil Remedies Act may be warranted, the investigating 
official shall submit a report containing findings and conclusions of 
such investigation to the reviewing official.
    (g) Nothing in this section shall preclude or limit an investigating 
official's discretion to refer allegations directly to the Department of 
Justice for suit under the False Claims Act or other civil relief, nor 
preclude or limit such official's discretion to defer or postpone a 
report or referral to the reviewing official in order to avoid 
interference with a criminal investigation or prosecution.
    (h) Nothing in this section modifies any responsibility of an 
investigating official to report violations of criminal law to the 
Attorney General.

[[Page 97]]



Sec. 1.305  Review by the reviewing official.

    (a) Upon receipt of the report of the investigating official, the 
reviewing official may refer the report to the appropriate agency fraud 
claims officer (AFCO) for a recommendation with respect to the 
determination required under this section.
    (b) The AFCO shall evaluate the evidence and make a recommendation 
to the reviewing officer within 45 days of receipt of the report of the 
investigating official.
    (c) The reviewing official is not bound by the recommendation of the 
AFCO, and may accept or reject it.
    (d) If, based on the report of the investigating official under 
Sec. 1.304(f) of this part, the reviewing official determines that there 
is adequate evidence to believe that a person is liable under Sec. 1.303 
of this part, the reviewing official shall transmit to the Attorney 
General a written notice of the reviewing official's intention to issue 
a complaint under Sec. 1.307 of this part.
    (e) Such notice shall include--
    (1) A statement of the reviewing official's reasons for issuing a 
complaint;
    (2) A statement of the evidence that supports the allegations of 
liability;
    (3) A description of the claims or statements upon which the 
allegations of liability are based;
    (4) An estimate of the amount of money or the value of property, 
services, or other benefits requested or demanded in violation of 
Sec. 1.303 of this part;
    (5) A statement of any exculpatory or mitigating circumstances that 
may relate to the claims or statements;
    (6) A statement that there is a reasonable prospect of collecting 
the amount specified in Sec. 1.307(b)(2) of this part and the reasons 
supporting such statement.



Sec. 1.306  Prerequisites for issuing a complaint.

    The reviewing official may issue a complaint under Sec. 1.307 of 
this part only if:
    (a) The Attorney General or an Assistant Attorney General designated 
by the Attorney General approves the issuance of a complaint in a 
written statement as provided in 31 U.S.C. 3803(b)(1);
    (b) In the case of allegations of liability under Sec. 1.303(a) of 
this part with respect to a claim, the reviewing official determines 
with respect to such claim, or a group of related claims submitted at 
the same time, that the amount of money or the value of property or 
services demanded or requested in violation of Sec. 1.303(a) of this 
part does not exceed $150,000; and
    (c) For the purposes of this section, a group of related claims 
submitted at the same time shall include only those claims arising from 
the same transaction (e.g., a single grant, loan, application, or 
contract) that are submitted simultaneously as part of a single request, 
demand, or submission, regardless of the amount of money or the value of 
property or services demanded or requested.
    (d) Nothing in this section shall be construed to limit the 
reviewing official's authority to join in a single complaint against a 
person claims that are unrelated or were not submitted simultaneously, 
regardless of the amount of money or the value of property or services 
demanded or requested.



Sec. 1.307  Complaint.

    (a) On or after the date the Department of Justice approves the 
issuance of a complaint in accordance with 31 U.S.C. 3803(b)(1), the 
reviewing official may serve a complaint on the respondent, as provided 
in Sec. 1.308 of this part.
    (b) The complaint shall state--
    (1) The allegations of liability, including the statutory basis for 
liability, an identification of the claims or statements that are the 
basis for the alleged liability, and the reasons that liability 
allegedly arises from such claims or statements;
    (2) The maximum amount of penalties and assessments for which the 
respondent may be held liable;
    (3) Instructions for requesting a hearing, including a specific 
advice of the respondent's right to request a hearing and to be 
represented by a representative; and
    (4) That failure to file an answer within 30 days of service of the 
complaint may result in the imposition of

[[Page 98]]

the penalty and assessment sought in the complaint without right to 
appeal.
    (c) At the same time the reviewing official serves the complaint, he 
or she shall serve the respondent with a copy of these regulations.



Sec. 1.308  Service of complaint and notice of hearing.

    (a) Service of a complaint or notice of hearing shall be made by 
certified or registered mail or by delivery in any manner authorized by 
Rule 4(d) of the Federal Rules of Civil Procedure.
    (b) Proof of service, stating the name and address of the person on 
whom the notice was served, and the manner and date of service, shall be 
made by:
    (1) Affidavit of the individual making service;
    (2) An acknowledged United States Postal Service return receipt 
card; or
    (3) Written acknowledgment by the respondent or his representative.



Sec. 1.309  Answer and request for hearing.

    (a) Within 30 days of the date of receipt or refusal to accept 
service of the complaint, the respondent may file an answer with the 
reviewing official.
    (b) In the answer, the respondent--
    (1) Shall admit or deny each of the allegations of liability made in 
the complaint;
    (2) Shall state any defense upon which the respondent intends to 
rely;
    (3) Shall state the name, address, and telephone number of the 
person authorized to act as the respondent's representative, if any;
    (4) May state any reasons why the respondent contends the penalty 
and assessment should be reduced or modified; and
    (5) May request a hearing.



Sec. 1.310  Default upon failure to file an answer.

    (a) If the respondent does not file an answer within the time 
prescribed in Sec. 1.309(a) of this part, the reviewing official may 
refer the complaint together with proof of service to the ALJ and 
request that the ALJ issue an order of default imposing the penalties 
and assessments sought in the complaint. An answer must comply in all 
material respects with Sec. 1.309(b) of this part in order to be 
considered filed within the time prescribed in Sec. 1.310(a) of this 
part.
    (b) Upon the referral of the complaint under paragraph (a) of this 
section, the ALJ shall promptly serve on the respondent, in the manner 
prescribed in Sec. 1.308 of this part, a notice that a decision will be 
issued under this section.
    (c) If the respondent fails to answer, the ALJ shall assume the 
facts alleged in the complaint to be true and, if such facts establish 
liability under Sec. 1.303 of this part, the ALJ shall issue a decision 
imposing the penalties and assessments sought in the complaint, not to 
exceed the maximum amount allowed under the statute.
    (d) A respondent who fails to file a timely answer waives any right 
to a review of the penalty and assessment, unless he can demonstrate 
extraordinary circumstances justifying the failure to file an answer.



Sec. 1.311  Referral of complaint and answer to the ALJ.

    Upon receipt of an answer, the reviewing official shall send to the 
ALJ copies of the complaint, proof of service, and the answer.



Sec. 1.312  Procedure where respondent does not request a hearing.

    (a) If the respondent files an answer with the reviewing official 
within the time period prescribed in Sec. 1.309(a) of this part but does 
not request a hearing, the ALJ, upon receipt of the complaint, proof of 
service, and answer, shall notify the respondent that a decision will be 
issued under this section and shall afford the parties 30 days in which 
to submit documentary evidence or other relevant written information, 
including briefs or other written arguments. At the end of that period, 
the ALJ shall issue a decision based upon the pleadings and the evidence 
submitted, or if no evidence has been submitted, upon the pleadings. The 
burden of proof shall be as set forth in Sec. 1.329 of this part.
    (b) When a decision is to be issued under this section, the ALJ 
shall have discretion to permit, allow, limit, or otherwise control 
discovery to the extent set forth under Secs. 1.322 thru 1.324 of this 
part.

[[Page 99]]



Sec. 1.313  Procedure where respondent requests a hearing; notice of hearing.

    (a) When the ALJ receives the complaint, proof of service, and an 
answer requesting a hearing, the ALJ shall promptly serve, in accordance 
with Sec. 1.308 of this part, a notice of hearing on all parties.
    (b) Such notice shall include:
    (1) The tentative time and place, and the nature of the hearing;
    (2) The legal authority and jurisdiction under which the hearing is 
to be held;
    (3) The matters of fact and law to be asserted;
    (4) A description of the procedures for the conduct of the hearing;
    (5) The name, address, and telephone number of the representative 
for the USDA and the representative for the respondent, if any; and
    (6) Such other matters as the ALJ deems appropriate.



Sec. 1.314  Parties to the hearing.

    (a) The parties to the hearing shall be the respondent and USDA. The 
proceeding shall be brought in the name of the Secretary.
    (b) Pursuant to 31 U.S.C. 3730(c)(5), a private party plaintiff 
under the False Claims Act may participate in proceedings under this 
subpart to the extent authorized by the provisions of that Act.



Sec. 1.315  Separation of functions.

    (a) Neither the investigating official, the reviewing official, nor 
any employee or agent of the USDA who takes part in investigating, 
preparing, or presenting a particular case may, in such case or in a 
factually related case--
    (1) Conduct the hearing in such case;
    (2) Participate in or advise the ALJ in the decision in such case, 
or participate in or advise in the review of the decision in such case 
by the judicial officer, except as a witness or representative in public 
proceedings; or
    (3) Make the collection of penalties and assessments under 
Sec. 1.341 of this part.
    (b) The ALJ shall not be responsible to or subject to the 
supervision or direction of the investigating official or the reviewing 
official.
    (c) Except to the extent limited by paragraph (a) of this section, 
the representative for USDA may be employed in any constituent agency of 
USDA, including the offices of either the investigating official or the 
reviewing official.



Sec. 1.316  Ex parte contacts.

    Except to the extent required for the disposition of ex parte 
matters as authorized by law, the ALJ shall not consult or be consulted 
by any person or party (except employees of the ALJ's office) on any 
matter in issue, unless on notice and opportunity for all parties to 
participate.



Sec. 1.317  Disqualification of reviewing official or ALJ.

    (a) A reviewing official or ALJ in a particular case may disqualify 
himself or herself at any time.
    (b) A party may file with the ALJ a motion for disqualification of a 
reviewing official or an ALJ. Such motion shall be accompanied by an 
affidavit alleging personal bias or other reason for disqualification.
    (c) Such motion and affidavit shall be filed promptly upon the 
party's discovery of reasons requiring disqualification, or such 
objections shall be deemed waived.
    (d) Such affidavit shall state specific facts that support the 
party's belief that personal bias or other reason for disqualification 
exists and the time and circumstances of the party's discovery of such 
facts. It shall be accompanied by a certificate of the representative of 
record that it is made in good faith.
    (e) Upon the filing of such a motion and affidavit, the ALJ shall 
proceed no further in the case until he or she resolves the matter of 
disqualification in accordance with paragraph (f).
    (f)(1) If the ALJ determines that a reviewing official is 
disqualified, the ALJ shall dismiss the complaint without prejudice.
    (2) If the ALJ disqualifies himself or herself, the case shall be 
reassigned promptly to another ALJ.
    (3) If the ALJ denies a motion to disqualify, the authority head may 
determine the matter only as part of his or

[[Page 100]]

her review of the initial decision upon appeal, if any.



Sec. 1.318  Rights of parties.

    All parties may:
    (a) Be accompanied, represented, and advised by a representative;
    (b) Participate in any prehearing or post-hearing conference held by 
the ALJ;
    (c) Agree to stipulations of fact or law, which shall be made part 
of the record;
    (d) Conduct discovery;
    (e) Make opening and closing statements at the hearing;
    (f) Present evidence relevant to the issues at the hearing;
    (g) Cross examine witnesses;
    (h) Present oral arguments at the hearings; and
    (i) Submit written briefs, proposed findings of fact, and proposed 
conclusions of law after the hearing.



Sec. 1.319  Authority of the ALJ.

    (a) The ALJ shall conduct a fair and impartial hearing, avoid delay, 
maintain order, and assure that a record of the proceedings is made.
    (b) The ALJ may:
    (1) Set and change the date, time, and place of the hearing upon 
reasonable notice to the parties;
    (2) Continue or recess the hearing in whole or part for a reasonable 
period of time;
    (3) Hold conferences to identify or simplify the issues, or to 
consider other matters that may aid in the expeditious disposition of 
the proceeding;
    (4) Administer oaths and affirmations;
    (5) Issue subpoenas requiring the attendance of witnesses and the 
production of documents at depositions or at hearings;
    (6) Rule on motions and other procedural matters;
    (7) Regulate the scope and timing of discovery;
    (8) Regulate the course of the hearing and the conduct of attorneys 
and parties;
    (9) Examine witnesses;
    (10) Receive, rule on, exclude, or limit evidence;
    (11) Upon motion of a party take official notice of facts;
    (12) Upon motion of a party, decide cases, in whole or in part, by 
summary judgment where there is no disputed issue of material fact;
    (13) Conduct any conference, argument, or hearing on motions in 
person or by telephone; and
    (14) Exercise such other authority as is necessary to carry out the 
responsibilities of the ALJ under this subpart.
    (c) The ALJ does not have the authority to decide upon the validity 
of Federal statutes, regulations, or legal opinions.



Sec. 1.320  Prehearing conferences.

    (a) The ALJ may schedule a prehearing conference at a reasonable 
time in advance of the hearing and may schedule additional prehearing 
conferences as appropriate.
    (b) The ALJ may conduct any prehearing conference in person or by 
telephone.
    (c) The ALJ may use prehearing conferences to discuss the following 
matters:
    (1) Simplification of the issues;
    (2) The necessity or desirability of amendments to the pleadings, 
including the need for a more definite statement;
    (3) Stipulations, admissions of fact or as to the contents and 
authenticity of documents;
    (4) Whether the parties can agree to submission of the case on a 
stipulated record;
    (5) Whether a party chooses to waive appearance at an oral hearing 
and to submit only documentary evidence (subject to the objection of 
other parties) and written argument.
    (6) Limitation of the number of witnesses;
    (7) Scheduling dates for the exchange of witness lists and of 
proposed exhibits;
    (8) Discovery;
    (9) The time and place for the hearing; and
    (10) Such other matters as may tend to expedite the fair and just 
disposition of the proceedings.
    (d) The ALJ shall issue an order containing all matters agreed upon 
by the parties or ordered by the ALJ at a prehearing conference.

[[Page 101]]



Sec. 1.321  Disclosure of documents.

    (a) Upon written request to the reviewing official, the respondent 
may review any relevant and material documents, transcripts, records, 
and other materials that relate to the allegations set out in the 
complaint and upon which the findings and conclusions of the 
investigating official under Sec. 1.304(f) of this part are based unless 
such documents are privileged under Federal law. Upon payment of fees 
for duplication, the defendant may obtain copies of such documents.
    (b) Upon written request to the reviewing official, the respondent 
also may obtain a copy of all exculpatory information in the possession 
of the reviewing official or investigating official relating to the 
allegations in the complaint, even if it is contained in a document that 
would otherwise be privileged. If the document would otherwise be 
privileged, only that portion containing exculpatory information must be 
disclosed.
    (c) The notice sent to the Attorney General from the reviewing 
official as described in Sec. 1.305 of this part is not discoverable 
under any circumstances.
    (d) The respondent may file a motion to compel disclosure of the 
documents subject to the provisions of this section. Such a motion may 
be filed with the ALJ following the filing of the answer pursuant to 
Sec. 1.309 of this part.



Sec. 1.322   Discovery.

    (a) The following types of discovery are authorized:
    (1) Requests for production, inspection and photocopying of 
documents;
    (2) Requests for admission of the authenticity of any relevant 
document or the truth of any relevant fact;
    (3) Written interrogatories; and
    (4) Depositions.
    (b) The ALJ shall set the schedule for discovery.
    (c) Requests for production of documents and requests for admission.
    (1) A party may serve requests for production of documents or 
requests for admission on another party.
    (2) If a party served with such requests fails to respond timely, 
the requesting party may file a motion to compel production or deem 
admissions, as appropriate.
    (3) A party served with such a request may file a motion for a 
protective order before the date on which a response to the discovery 
request is due, stating reasons why discovery should be limited or 
should not be required.
    (4) Within 15 days of service of a motion to compel or to deem 
matter admitted or a motion for a protective order, the opposing party 
may file a response.
    (5) The ALJ may grant a motion to compel production or deem matter 
admitted or may deny a motion for a protective order only if he finds 
that--
    (i) The discovery sought is necessary for the expeditious, fair, and 
reasonable consideration of the issues;
    (ii) It is not unduly costly or burdensome;
    (iii) It will not unduly delay the proceeding; and
    (iv) The information sought is not privileged.
    (d) Depositions and written interrogatories. Depositions and written 
interrogatories are permitted only on the order of the ALJ.
    (1) A party seeking to use depositions or written interrogatories 
may file a motion with the ALJ.
    (2) A party and/or the potential deponent may file an opposition to 
the motion or a motion for a protective order within 10 days of service 
of the motion.
    (3) The ALJ may grant a motion allowing the taking of a deposition 
or the use of interrogatories or may deny a motion for a protective 
order only if he finds that the moving party has satisfied the standards 
set forth in paragraph (c)(5) of this section and has shown that the 
information sought cannot be obtained by any other means.
    (4) If the ALJ grants a motion permitting a deposition, he shall 
issue a subpoena, which may also require the witness to produce 
documents. The party seeking to depose shall serve the subpoena in the 
manner prescribed in Sec. 1.308 of this part.
    (5) The party seeking to depose shall provide for the taking of a 
verbatim transcript of the deposition, which it shall make available to 
all other parties for inspection and copying.

[[Page 102]]

    (e) Costs. The costs of discovery shall be borne by the party 
seeking discovery.
    (f) In issuing a protective order, the ALJ may make any order which 
justice requires to protect a party or person from annoyance, 
embarrassment, oppression, or undue burden or expense, including one or 
more of the following:
    (1) That the discovery not be had;
    (2) That the discovery may be had only on specified terms and 
conditions, including a designation of the time or place;
    (3) That the discovery may be had only through a method of discovery 
other than that requested;
    (4) That certain matters not be inquired into, or that the scope of 
discovery be limited to certain matters;
    (5) That discovery be conducted with no one present except persons 
designated by the ALJ;
    (6) That the contents of discovery or evidence be sealed;
    (7) That a deposition after being sealed be opened only by order of 
the ALJ;
    (8) That a trade secret or other confidential research, development, 
commercial information or facts pertaining to any criminal 
investigation, proceeding, or other administrative investigation not be 
disclosed or be disclosed only in a designated way; or
    (9) That the parties simultaneously file specified documents or 
information enclosed in sealed envelopes to be opened as directed by the 
ALJ.
    (g) Exchange of witness lists, statements, and exhibits. Witness 
lists, copies of prior statements of proposed witnesses, and copies of 
proposed hearing exhibits, including copies of any written statements or 
depositions that a party intends to offer in lieu of live testimony in 
accordance with Sec. 1.331(b) of this part, shall be exchanged at least 
15 days in advance of the hearing, or at such other time as may be set 
by the ALJ. A witness whose name does not appear on the witness list 
shall not be permitted to testify and no exhibit not provided to the 
opposing party as provided above shall be admitted into evidence at the 
hearing absent a showing of good cause.



Sec. 1.323  Subpoenas for attendance at hearing.

    (a) A party wishing to procure the appearance and testimony at the 
hearing of any individual may request that the ALJ issue a subpoena.
    (b) A subpoena requiring the attendance and testimony of an 
individual may also require the individual to produce documents at such 
hearing.
    (c) A party who desires the issuance of a subpoena shall file with 
the ALJ a written request not less than 15 days before the date fixed 
for the hearing unless otherwise allowed by the ALJ for good cause 
shown. Such request shall specify any documents to be produced and shall 
designate the witnesses whose attendance is sought to be required and 
describe their addresses and locations with sufficient particularity to 
permit such witnesses to be found. The subpoena shall specify the time 
and place at which the witness is to appear and any documents the 
witness is to produce. Such a request may be made ex parte.
    (d) When the ALJ issues a subpoena under this section, the party who 
requested such subpoena shall serve all other parties with notice of the 
names and addresses of the individuals subpoenaed and specify any 
documents required to be produced.
    (e) A subpoena shall be served by delivery, or by registered mail or 
by certified mail in the manner prescribed in Sec. 1.308 of this part. A 
subpoena upon a party or upon an individual under the control of a party 
may be served by first class mail.
    (f) A party or the individual to whom the subpoena is directed may 
file a motion to quash the subpoena within five days of service or on or 
before the time specified in the subpoena for compliance if it is less 
than five days after service.



Sec. 1.324   Fees.

    The party requesting a subpoena shall pay the cost of the fees and 
mileage of any witness subpoenaed in the amounts that would be payable 
to a witness in a proceeding in United States District Court. A check 
for witness fees and mileage shall accompany the subpoena when served, 
except that when a subpoena is issued on behalf of

[[Page 103]]

USDA, a check for witness fees and mileage need not accompany the 
subpoena.



Sec. 1.325   Form, filing and service of papers.

    (a) Form. (1) The original and two copies of all papers in a 
proceeding conducted under this subpart shall be filed with the ALJ 
assigned to the case.
    (2) Every pleading and paper filed in the proceeding shall contain a 
caption setting forth the title of the action, the case number assigned 
by the ALJ, and a designation of the paper (e.g., motion to quash 
subpoena).
    (3) Every pleading and paper shall be signed by and shall contain 
the address and telephone number of the representative for the party or 
the person on whose behalf the paper was filed.
    (4) Papers are considered filed when they are mailed. Date of 
mailing may be established by a certificate from the party or his 
representative or by proof that the document was sent by certified or 
registered mail.
    (b) Service. A party filing a document with the ALJ shall, at the 
time of filing, serve a copy of such document on every other party. 
Service upon any party of any document other than the complaint or 
notice of hearing shall be made by delivering or mailing a copy to the 
party's last known address. When a party is represented by a 
representative, service shall be made upon such representative in lieu 
of the actual party.
    (c) Proof of service. A certificate of the person serving the 
document by personal delivery or by mail, setting forth the manner of 
service, shall be proof of service.



Sec. 1.326  Computation of time.

    (a) In computing any period of time under this part or in an order 
issued thereunder, the time begins with the day following the act, 
event, or default, and includes the last day of the period, unless it is 
a Saturday, Sunday, or legal holiday observed by the Federal Government, 
in which event it includes the next business day.
    (b) When the period of time allowed is ten or fewer calendar days, 
intermediate Saturdays, Sundays, and legal holidays observed by the 
Federal Government shall be excluded from the computation.
    (c) When a document has been served by mail, an additional five days 
will be added to the time permitted for any response.



Sec. 1.327  Motions.

    (a) Motions shall state the relief sought, the authority relied 
upon, and the facts alleged, and shall be filed with the ALJ and served 
on all other parties.
    (b) Except for motions made during a prehearing conference or at the 
hearing, all motions shall be in writing. The ALJ may require that oral 
motions be reduced to writing.
    (c) The ALJ may require written motions to be accompanied by 
supporting memorandums.
    (d) Within 15 days after a written motion is served, or such other 
time as may be fixed by the ALJ, any party may file a response to such 
motion.
    (e) The ALJ may not grant a written motion prior to expiration of 
the time for filing responses thereto, except upon consent of the 
parties or following a hearing, but may overrule or deny such motion 
without awaiting a response.
    (f) The ALJ shall make every reasonable effort to dispose of all 
outstanding motions prior to the beginning of the hearing.



Sec. 1.328  Sanctions.

    (a) The ALJ may sanction a person, including any party or 
representative for:
    (1) Failing to comply with a lawful order, subpoena, or procedure;
    (2) Failing to prosecute or defend an action; or
    (3) Engaging in other misconduct that interferes with the speedy, 
orderly, or fair conduct of the hearing.
    (b) Any such sanction, including but not limited to those listed in 
paragraphs (c), (d), and (e) of this section, shall reasonably relate to 
the severity and nature of the failure or misconduct.
    (c) When a party fails to comply with a subpoena or an order, 
including an order for taking a deposition, the production of evidence 
within the party's

[[Page 104]]

control, or a request for admission, the ALJ may:
    (1) Draw an inference in favor of the requesting party with regard 
to the information sought;
    (2) In the case of requests for admission, deem admitted each item 
as to which an admission is requested;
    (3) Prohibit the party failing to comply with such order from 
introducing evidence concerning, or otherwise relying upon testimony 
relating to the information sought;
    (4) Strike any part of the pleadings or other submissions of the 
party failing to comply with such request; or
    (5) Request that the Attorney General petition an appropriate 
district court for an order to enforce a subpoena.
    (d) If a party fails to prosecute or defend an action under this 
subpart commenced by service of a complaint, the ALJ may dismiss the 
action or enter an initial decision imposing penalties and assessments.
    (e) The ALJ may refuse to consider any motion or other action which 
is not filed in a timely fashion.



Sec. 1.329  The hearing and burden of proof.

    (a) The ALJ shall conduct a hearing on the record in order to 
determine whether the respondent is liable for a civil penalty or 
assessment under Sec. 1.303 of this part, and if so, the appropriate 
amount of any such civil penalty or assessment considering any 
aggravating or mitigating factors.
    (b) The USDA shall prove respondent's liability and any aggravating 
factors by a preponderance of the evidence.
    (c) The respondent shall prove any affirmative defenses and any 
mitigating factors by a preponderance of the evidence.
    (d) The hearing shall be open to the public unless otherwise ordered 
by the ALJ for good cause shown.



Sec. 1.330  Location of hearing.

    (a) The hearing may be held--
    (1) In any judicial district of the United States in which the 
respondent resides or transacts business;
    (2) In any judicial district of the United States in which the claim 
or statement in issue was made; or
    (3) In such other place as may be agreed upon by the respondent and 
the ALJ.
    (b) Each party shall have the opportunity to present argument with 
respect to the location of the hearing.
    (c) The ALJ shall issue an order to the parties designating the time 
and the place of the hearing.



Sec. 1.331  Witnesses.

    (a) Except as provided in paragraph (b) of this section, testimony 
at the hearing shall be given orally by witnesses under oath or 
affirmation.
    (b) At the discretion of the ALJ, testimony may be admitted in the 
form of a written statement or deposition. Any such written statement 
must be provided to all other parties along with the last known address 
of such witness, in a manner which allows sufficient time for other 
parties to subpoena such witness for cross-examination at the hearing. 
Prior written statements of witnesses proposed to testify at the hearing 
and deposition transcripts shall be exchanged as provided in 
Sec. 1.322(g) of this part.
    (c) The ALJ shall permit the parties to conduct such cross-
examination as may be required for a full and true disclosure of the 
facts.
    (d) A witness may be cross-examined on any matter relevant to the 
proceeding without regard to the scope of his or her direct examination.
    (e) Upon motion of any party, the ALJ shall order witnesses excluded 
so that they cannot hear the testimony of other witnesses. This rule 
does not authorize exclusion of--
    (1) A party who is an individual;
    (2) In the case of a party that is not an individual, an officer or 
employee of the party designated by the representative; or
    (3) An individual whose presence is shown by a party to be essential 
to the presentation of its case, including an individual employed by the 
USDA engaged in assisting the representative for USDA.

[[Page 105]]



Sec. 1.332  Evidence.

    (a) The ALJ shall determine the admissibility of evidence.
    (b) Except as provided herein, the Federal Rules of Evidence are not 
applicable to the hearing, except that the ALJ may in his discretion 
apply the Federal Rules of Evidence in order to assure production of 
credible evidence.
    (c) The ALJ shall exclude irrelevant and immaterial evidence.
    (d) Although relevant, evidence may be excluded if its probative 
value is substantially outweighed by the danger of unfair prejudice, 
confusion of the issues, or by considerations of undue delay or needless 
presentation of cumulative evidence.
    (e) Although relevant, evidence may be excluded if it is privileged 
under Federal law.
    (f) Evidence concerning offers of compromise or settlement shall be 
inadmissible to the extent provided in Rule 408 of the Federal Rules of 
Evidence.
    (g) The ALJ shall permit the parties to introduce rebuttal witnesses 
and evidence.
    (h) All documents and other evidence offered or taken for the record 
shall be open to examination by all parties unless otherwise ordered by 
the ALJ pursuant to Sec. 1.322 of this part.



Sec. 1.333  The record.

    (a) The hearing will be recorded and transcribed. Transcripts may be 
obtained from the reporter by anyone at a cost not to exceed the actual 
cost of duplication.
    (b) The transcript of testimony, exhibits and other evidence 
admitted at the hearing, and all papers and requests filed in the 
proceeding constitute the record for the decision by the ALJ and the 
judicial officer.
    (c) The record may be inspected and copied (upon payment of a 
reasonable fee) by anyone unless otherwise ordered by the ALJ.



Sec. 1.334  Post-hearing briefs.

    The ALJ may require the parties to file post-hearing briefs. In any 
event, any party may file a post-hearing brief. The ALJ shall fix the 
time for filing such briefs, not to exceed 60 days from the date the 
parties receive the transcript of the hearing or, if applicable, the 
stipulated record. Such briefs may be accompanied by proposed findings 
of fact and conclusions of law. The ALJ may permit the parties to file 
reply briefs.



Sec. 1.335  Determining the amount of penalties and assessments.

    (a) In determining an appropriate amount of civil penalties and 
assessments, the ALJ and the judicial officer, upon appeal, should 
evaluate any circumstances that mitigate or aggravate the violation and 
should articulate in their opinions the reasons that support the 
penalties and assessments they impose. Because of the intangible costs 
of fraud, the expense of investigating such conduct, and the need to 
deter others who might be similarly tempted, ordinarily double damages 
and a significant civil penalty should be imposed.
    (b) Although not exhaustive, the following factors are among those 
that may influence the ALJ and the judicial officer in determining the 
amount of penalties and assessments to impose with respect to the 
misconduct (i.e., the false, fictitious, or fraudulent claims or 
statements) charged in the complaint:
    (1) The number of false, fictitious, or fraudulent claims or 
statements;
    (2) The time period over which such claims or statements were made;
    (3) The degree of the respondent's culpability with respect to the 
misconduct;
    (4) The amount of money or the value of the property, services, or 
benefit falsely claimed;
    (5) The value of the Government's actual loss as a result of the 
misconduct, including foreseeable consequential damages and the costs of 
investigation;
    (6) The relationship of the amount imposed as civil penalties to the 
amount of the Government's loss;
    (7) The potential or actual impact of the misconduct upon national 
defense, public health or safety, or public confidence in the management 
of Government programs and operations, including particularly the impact 
on the intended beneficiaries of such programs;
    (8) Whether the respondent has engaged in a pattern of the same or 
similar misconduct;

[[Page 106]]

    (9) Whether the respondent attempted to conceal the misconduct;
    (10) The degree to which the respondent has involved others in the 
misconduct or in concealing it;
    (11) Where the misconduct of employees or agents is imputed to the 
respondent, the extent to which the respondent's practices fostered or 
attempted to preclude such misconduct;
    (12) Whether the respondent cooperated in or obstructed an 
investigation of the misconduct;
    (13) Whether the respondent assisted in identifying and prosecuting 
other wrongdoers;
    (14) The complexity of the program or transaction, and the degree of 
the respondent's sophistication with respect to it, including the extent 
of the respondent's prior participation in the program or in similar 
transactions;
    (15) Whether the respondent has been found, in any criminal, civil, 
or administrative proceeding to have engaged in similar misconduct or to 
have dealt dishonestly with the government of the United States or of a 
State, directly or indirectly; and
    (16) The need to deter the respondent and others from any engaging 
in the same or similar misconduct.
    (c) Nothing in this section shall be construed to limit the ALJ or 
the judicial officer from considering any other factors that in any 
given case may mitigate or aggravate the acts for which penalties and 
assessments are imposed.



Sec. 1.336  Initial decision of the ALJ.

    (a) The ALJ shall issue an initial decision, which shall contain 
findings of fact, conclusions of law, and the amount of any penalties 
and assessments imposed.
    (b) The findings of fact shall include a finding on each of the 
following issues for every claim or statement with respect to which a 
penalty or assessment was proposed:
    (1) Whether any claim or statement identified in the complaint 
violates Sec. 1.303 of this part;
    (2) If the respondent is liable for penalties or assessments, the 
appropriate amount of any such penalties or assessments considering any 
mitigating or aggravating factors described in Sec. 1.335 of this part.
    (c) The ALJ shall serve the initial decision on all parties within 
90 days after the time for submission of post-hearing briefs and reply 
briefs (if permitted) has expired. The ALJ shall include with the 
initial decision a statement describing the right of any respondent 
determined to be liable for a civil penalty or assessment to file notice 
of appeal with the judicial officer. The ALJ may extend the time period 
for serving the initial decision on the parties.
    (d) Unless the initial decision of the ALJ is timely appealed to the 
judicial officer, or a motion for reconsideration of the initial 
decision is timely filed, the initial decision shall constitute the 
final decision of the Secretary and shall be final and binding on the 
parties 30 days after it is issued by the ALJ.



Sec. 1.337  Reconsideration of initial decision.

    (a) Except as provided in paragraph (d) of this section, any party 
may file a motion for reconsideration of the initial decision within 20 
days of receipt of the initial decision. If service was made by mail, 
receipt will be presumed to be five days from the date of mailing in the 
absence of contrary proof.
    (b) Every such motion must set forth the matters claimed to have 
been erroneously decided and the nature of the alleged errors. Such 
motion shall be accompanied by a supporting brief.
    (c) Responses to such motions shall be allowed only upon request of 
the ALJ.
    (d) No party may file a motion for reconsideration of an initial 
decision that has been revised in response to a previous motion for 
reconsideration.
    (e) The ALJ may dispose of a motion for reconsideration by denying 
it or by issuing a revised initial decision.
    (f) If the ALJ denies a motion for reconsideration, the initial 
decision shall constitute the final decision of the authority head and 
shall be final and binding on the parties 30 days after the ALJ denies 
the motion, unless the initial decision is timely appealed to the 
judicial officer in accordance with Sec. 1.338 of this part.

[[Page 107]]

    (g) If the ALJ issues a revised initial decision, that decision 
shall constitute the final decision of the authority head and shall be 
final and binding on the parties 30 days after it is issued, unless it 
is timely appealed to the judicial officer in accordance with Sec. 1.338 
of this part.



Sec. 1.338  Appeal to the judicial officer.

    (a) Any respondent who has filed a timely answer and who is 
determined in an initial decision to be liable for a civil penalty or 
assessment may appeal such decision to the Secretary by filing a notice 
of appeal with the judicial officer in accordance with this section. The 
judicial officer of USDA shall consider all appeals to the Secretary 
under this subpart and render a decision on behalf of the Secretary.
    (b)(1) A notice of appeal may be filed at any time within 30 days 
after the ALJ issues an initial decision. However, if another party 
files a motion for reconsideration under Sec. 1.337 of this part, 
consideration of the appeal shall be stayed automatically pending 
resolution of the motion for reconsideration.
    (2) If a motion for reconsideration is timely filed, a notice of 
appeal may be filed within 30 days after the ALJ denies the motion or 
issues a revised initial decision, whichever applies.
    (c) The judicial officer may extend the initial 30-day period during 
which a notice of appeal may be filed for an additional 30 days if the 
respondent files a request for an extension within the initial 30-day 
period and shows good cause.
    (d) If the respondent timely files a notice of appeal with the 
judicial officer and the time for filing motions for reconsideration 
under Sec. 1.337 of this part has expired, the ALJ will forward the 
record of the proceeding to the judicial officer.
    (e) A notice of appeal shall be accompanied by a written brief 
specifying exceptions to the initial decision and reasons supporting the 
exceptions.
    (f) The representative for USDA may file a brief in opposition to 
exceptions within 30 days of receiving the brief proposing exceptions.
    (g) There is no right to appear personally before the judicial 
officer.
    (h) There is no right to interlocutory appeal of rulings by the ALJ.
    (i) The judicial officer, in reviewing the decision, shall not 
consider any objection that was not raised before the ALJ unless a 
demonstration is made that extraordinary circumstances caused the 
failure to raise the objection.
    (j) If any party demonstrates to the satisfaction of the judicial 
officer that additional evidence not presented to the ALJ is material 
and that there were reasonable grounds for the failure to present such 
evidence to the ALJ, the judicial officer shall remand the matter to the 
ALJ for consideration of such additional evidence.
    (k) The judicial officer may affirm, reduce, reverse, compromise, 
remand or settle any penalty or assessment determined by the ALJ.
    (l) The judicial officer shall promptly serve each party to the 
appeal with a copy of the decision of the judicial officer and a 
statement describing the respondent's right to seek judicial review.
    (m) Unless a petition for review is filed as provided in 31 U.S.C. 
3805 after a respondent has exhausted all administrative remedies under 
this part and within 60 days after the date on which the judicial 
officer serves the respondent with a copy of the judicial officer's 
decision, a determination that a respondent is liable under Sec. 1.303 
of this part is final and is not subject to judicial review.



Sec. 1.339  Stays ordered by the Department of Justice.

    (a) If at any time the Attorney General or an Assistant Attorney 
General designated by the Attorney General transmits to the Secretary a 
written finding that continuation of the administrative process 
described in this subpart with respect to a claim or statement may 
adversely affect any pending or potential criminal or civil action 
related to such claim or statement, the judicial officer shall stay the 
process immediately.
    (b) If the judicial officer stays the administrative process in 
accordance with paragraph (a) of this section, the judicial officer may 
order the process

[[Page 108]]

resumed only upon receipt of the written authorization of the Attorney 
General.



Sec. 1.340  Stay pending appeal.

    (a) A decision is stayed automatically pending disposition of a 
motion for reconsideration or of an appeal to the judicial officer.
    (b) The respondent may file with the ALJ a request for stay of the 
effective date of a decision of the judicial officer pending judicial 
review. Such request shall state the grounds upon which respondent 
relies in requesting the stay, together with a copy of the notice(s) of 
appeal filed by respondent seeking review of a decision of the judicial 
officer. The filing of such a request shall automatically stay the 
effective date of the decision of the judicial officer until the ALJ 
rules upon the request.
    (c) The representative for the USDA may file an opposition to 
respondent's request for a stay within 10 days of receipt of the 
request. If the representative for the USDA fails to file such an 
opposition within the allotted time, or indicates that the USDA has no 
objection to the request, the ALJ may grant the stay without requiring 
respondent to give a bond or other security.
    (d) The ALJ may grant a contested request where justice so requires 
and to the extent necessary to prevent irreparable harm but only upon 
the respondent's giving of a bond or other adequate security. The ALJ 
shall rule promptly on a contested request for stay.
    (e) A decision of the ALJ denying respondent's request for a stay 
shall constitute final agency action.



Sec. 1.341   Judicial review.

    Section 3805 of title 31, United States Code, authorizes judicial 
review by an appropriate United States District Court of a final 
decision of the judicial officer imposing penalties or assessments under 
this part and specifies the procedures for such review.



Sec. 1.342   Collection of civil penalties and assessments.

    Sections 3806 and 3808(b) of title 31, United States Code, authorize 
actions for collection of civil penalties and assessments imposed under 
this subpart and specify the procedures for such actions.



Sec. 1.343   Right to administrative offset.

    The amount of any penalty or assessment which has become final, or 
for which a judgment has been entered under Sec. 1.341 or Sec. 1.342 of 
this part, or any amount agreed upon in a settlement under Sec. 1.345 of 
this part, may be collected by administrative offset under 31 U.S.C. 
3716, except that an administrative offset may not be made under this 
subsection against a refund of an overpayment of Federal taxes then or 
later owing by the United States to the respondent.



Sec. 1.344   Deposit to Treasury of the United States.

    All amounts collected pursuant to this subpart shall be deposited as 
miscellaneous receipts in the Treasury of the United States.



Sec. 1.345   Settlement.

    (a) A respondent may make offers of compromise of settlement at any 
time.
    (b) The reviewing official has the exclusive authority to compromise 
or settle a case under this subpart at any time after the date on which 
the reviewing official is permitted to issue a complaint and before the 
date on which the ALJ issues a decision.
    (c) The judicial officer has exclusive authority to compromise or 
settle a case under this subpart at any time after the date on which the 
ALJ issues a decision, except during the pendency of any appeal under 
Sec. 1.341 of this part or during the pendency of any action to collect 
penalties and assessments under Sec. 1.342 of this part.
    (d) The Attorney General has exclusive authority to compromise or 
settle a case under this subpart during the pendency of any appeal under 
Sec. 1.341 of this part, or any action to recover penalties and 
assessments under Sec. 1.342 of this part.
    (e) The investigating official may recommend settlement terms to the 
reviewing official, the judicial officer, or the Attorney General, as 
appropriate. The reviewing official may recommend settlement terms to 
the judicial officer, or the Attorney General, as appropriate.

[[Page 109]]

    (f) Any settlement must be in writing.



Sec. 1.346  Limitation.

    The complaint referred to in Sec. 1.307 of this part with respect to 
a claim or statement must be served in the manner specified in 
Sec. 1.308 of this part within 6 years after the date on which such 
claim or statement is made.



  Subpart M--Rules of Practice Governing Adjudication of Sourcing Area 
Applications and Formal Review of Sourcing Areas Pursuant to the Forest 
 Resources Conservation and Shortage Relief Act of 1990 (16 U.S.C. 620, 
                                et seq.)

    Authority: 5 U.S.C. 556 and 16 U.S.C. 620, et seq.

    Source;  59 FR 8824, Feb. 24, 1994, unless otherwise noted.



Sec. 1.410  Meaning of words.

    As used in these procedures, words in the singular form shall be 
deemed to import the plural, and vice versa, as the circumstance may 
require.



Sec. 1.411  Definitions.

    As used in these procedures, the terms as defined in the Forest 
Resources Conservation and Shortage Relief Act of 1990, 16 U.S.C. 620, 
et seq. (Act) and in the regulations issued thereunder, shall apply with 
equal force and effect. In addition and except as may be provided 
otherwise in these procedures:
    (a) Applicant or Sourcing area applicant means a person who submits 
a sourcing area application pursuant to these rules, or a person who 
sourcing area is subject to formal review pursuant to 36 CFR 223.191(e).
    (b) Decision means:
    (1) The Judge's initial decision made in accordance with the 
provisions of 5 U.S.C. 554, 556, 557, and 16 U.S.C. 620, et seq. and 36 
CFR 223.190 and 223.191(e), which includes the Judge's findings and 
conclusions and the reasons or basis therefore on all material issues of 
fact, law or discretion, orders and rulings on proposed findings, 
conclusions and orders submitted by the parties; and
    (2) The decision and order by the Judicial officer upon appeal of 
the Judge's decision.
    (c) Determination is synonymous with decision.
    (d) Hearing means that part of the proceeding which may be requested 
by a party of record, and which involves the submission of additional 
evidence before the Administrative Law Judge for the record in the 
proceeding.
    (e) Hearing Clerk means the Office of the Hearing Clerk, United 
States Department of Agriculture, Washington, D.C. 20250.
    (f) Judge means any Administrative Law Judge Appointed pursuant to 5 
U.S.C. 3105 and assigned to the proceeding involved.
    (g) Judicial Officer means an official of the United States 
Department of Agriculture delegated authority by the Secretary of 
Agriculture, pursuant to the Act of April 4, 1940 (7 U.S.C. 450c-459g) 
and Reorganization Plan No. 2 of 1953 (5 U.S.C. 1988 ed., appendix, p. 
1280), to perform the function involved (7 CFR 235(a)), or the Secretary 
of Agriculture, if the authority so delegated is exercised by the 
Secretary.
    (h) Party of record or Party is a party to the proceeding to 
determine approval or disapproval of a sourcing area application, 
including the proceeding for formal review of a sourcing area. The 
sourcing area applicant and persons who submit written comments on the 
sourcing area application at issue during the 30 calendar day comment 
period, including the Regional Forester, are the parties of record. For 
purposes of a formal review of a sourcing area, the holder of the 
sourcing area that is the subject of the review and persons who submit 
written comments on the sourcing area application at issue during the 30 
calendar day comment period after institution of the formal review, 
including the Regional Forester, are the parties of record.
    (i) Sourcing Area Application means the application by which a 
person applies for a sourcing area or the application by which a 
sourcing area holder applies for a formal review of a sourcing area.

[[Page 110]]



Sec. 1.412  Institution of proceedings.

    (a) Sourcing area applications. The proceeding for determining 
sourcing areas shall be instituted by receipt of a sourcing area 
application by the Office of Administrative Law Judges, pursuant to 36 
CFR 223.190.
    (b) Review of sourcing areas. Informal review of a sourcing area 
precedes institution of a formal review as follows:
    (1) Request by Sourcing area holder. A sourcing area holder who 
wishes to begin a review of a sourcing area shall send a written request 
for a review to the Regional Forester of the region in which the 
manufacturing facility being sourced is located. The request shall state 
the reason for the request.
     (i) Informal review. The Regional Forester shall begin an informal 
review, pursuant to 36 CFR 223.191(e), based on the written request. If 
no agreement is reached in the informal review process, the Regional 
Forester of the region in which the manufacturing facility being sourced 
is located shall transmit to the Office of Administrative Law Judges any 
submissions received during the informal review process, within 5 
working days of the meeting convened during the informal review (36 CFR 
223.191)e)). Agreement is reached when all persons attending the meeting 
convened by the Regional Forester to resolve differences as to the 
proper sourcing area, including the Regional Forester, sign the document 
describing the sourcing area.
    (ii) Formal review. Institution by a sourcing area holder of a 
formal review of the sourcing area occurs if the informal review process 
does not result in agreement among the parties, and the sourcing area 
holder submits a sourcing area application to the Office of the 
Administrative Law Judges, pursuant to 36 CFR 223.190, within 10 working 
days after the meeting convened by the Regional Forester as part of the 
informal process.
    (2) Initiation of Review By Agency. If the Forest Service wishes to 
begin a review of a sourcing area, the Regional Forester of the region 
in which the manufacturing facility being sourced is located shall begin 
an informal review, pursuant to 36 CFR 223.191(e). If no agreement is 
reached in the informal review process, the Regional Forester of the 
region in which the manufacturing facility being sourced is located 
shall transmit to the Office of Administrative Law Judges any 
submissions received during the informal review process, within 5 
working days of the meeting convened during the informal review (36 CFR 
223.191(e)). Agreement is reached when all persons attending the meeting 
convened by the Regional Forester to resolve differences as to the 
proper sourcing area, including the Regional Forester, sign the document 
describing the sourcing area. Institution by the Forest Service of a 
formal review of a sourcing area occurs when the Office of 
Administrative Law Judges receives the papers and documents submitted 
during the informal review process.



Sec. 1.413  Submission of a sourcing area application.

    A sourcing area applicant shall send the application to the Office 
of Administrative Law Judges and shall, simultaneously, send a copy of 
the sourcing area application to the Forest Service Regional Forester of 
the region in which the manufacturing facility being sourced is located. 
Where the sourcing area application will cover purchases from more than 
one agency, application is to be made to the agency from which the 
applicant expects to purchase the preponderance of its Federal timber. 
The sourcing area applicant must also send a complete copy of the 
application to each agency concerned. The lead agency shall make the 
decision in consultation with, and upon co-signature of, the other 
agency(ies) concerned. Sourcing area applications must be signed by the 
persons making the request, or in the case of a corporation, by its 
chief executive officer, and must be notarized. The application shall be 
on company letterhead.



Sec. 1.414  Docket number.

    Each proceeding, following its institution, shall be assigned a 
docket number by the Hearing Clerk, and thereafter the proceeding shall 
be referred to by such number. The Hearing Clerk shall notify the 
sourcing area applicant and the Regional Forester to whom the applicant 
submitted a copy of the application of the docket number and the

[[Page 111]]

name of the Judge to whom the case has been assigned. In a formal review 
of a sourcing area instituted by the Forest Service, the Hearing Clerk 
shall inform the sourcing area holder whose sourcing area is subject to 
the review and the Regional Forester who submitted the comments 
instituting the formal review of the docket number and the name of the 
Judge to whom the case has been assigned.



Sec. 1.415  Notification of proceedings.

    The Regional Forester of the region in which the manufacturing 
facility being sourced is located shall notify prospective parties of 
the sourcing area application and/or the formal review of a sourcing 
area after receipt of the docket number and the name of the Judge to 
whom the proceeding has been assigned, pursuant to Sec. 1.414 of these 
rules. Notification will consist of publication of a notice in 
newspapers of general circulation in the area included in the sourcing 
area application. The Regional Forester shall promptly notify the 
Hearing Clerk of the date of the publication and the notice. Additional 
notification will be made through agency mailing lists. Notification 
shall include the docket number, the name of the Judge to whom the case 
has been assigned and the mailing address of the Judge. In the case of a 
sourcing area review, notification will also state the reason for the 
review.



Sec. 1.416  Comment period.

    Written comments on a sourcing area application or on a formal 
review of a sourcing area shall include the docket number and may be 
submitted to the Judge for 30 calendar days following publication of the 
notice. Persons submitting comments shall send a copy of the comments to 
the Regional Forester of the region in which the manufacturing facility 
being sourced is located. All comments must be received by the Judge and 
by the Regional Forester by the 30th day of the comment period.



Sec. 1.417  Review period.

    (a) Review of comments. The sourcing area applicant, the sourcing 
area holder whose sourcing area is the subject of a formal review and 
other parties who submitted written comments will be allowed 10 working 
days from the close of the comment period to review the written comments 
at the Regional Forester's office during regular business hours.
    (b) Recommendation to Judge to approve or disapprove a sourcing area 
application. During the 10 working day review period, parties who have 
submitted written comments on an application or on a formal review of a 
sourcing area may submit a written recommendation to the Judge, 
including an analysis of the facts and law as to why the Judge should 
approve or disapprove that application. A sourcing area applicant whose 
sourcing area application is the subject of the proceeding, and a 
sourcing area holder whose sourcing area is the subject of a formal 
review, may also submit a written recommendation to the Judge. The 
recommendation must be postmarked no later than the 10th working day of 
the review period.
    (c) Request for a hearing. The sourcing area applicant, the sourcing 
area holder whose sourcing area is the subject of a formal review and 
persons who submitted written comments, or the attorney of record for a 
party in the proceeding, may review the comments and request a hearing 
within 10 working days after the comment period, pursuant to 36 CFR 
233.190(h)(2). The request must be postmarked no later than the 10th 
working day of the review period. An attorney may file an appearance of 
record prior to the scheduled hearing. The request for a hearing shall 
be filed with the Judge. The hearing is for the purpose of supplementing 
the written record submitted prior to the hearing. The written record 
submitted prior to the hearing consists of papers and documents 
submitted during the 30 calendar day comment period, the 10 working day 
review period, and any motions submitted before the hearing. For 
purposes of a formal review of a sourcing area, the written record also 
consists of the papers and documents submitted during the informal 
review.
    (1) Contents of the notice of hearing. The Judge shall issue a 
notice of hearing regarding a particular sourcing area application or 
regarding formal review of a sourcing area application or regarding 
formal review of a sourcing

[[Page 112]]

area to all parties of record for that application or formal review. The 
notice of hearing shall contain a reference to the authority under which 
the sourcing area is proposed or formally reviewed; shall define the 
scope of the hearing; shall contain a reference to the sourcing area 
that is the subject of the hearing; and shall state the date, time and 
place of such hearing; and shall state the date, time and place of such 
hearing; which shall be set with due regard for the necessity and 
convenience of the parties of record or their representatives. The Judge 
shall schedule a hearing no later than 21 calendar days after the 10 
working day period for reviewing written comments ends. The Judge may 
consolidate requests for a hearing regarding the same application.
    (2) Giving notice of hearing. The notice of hearing shall be served 
upon the parties of record for the sourcing area application at issue by 
the Hearing Clerk.



Sec. 1.418  Procedure upon no request for hearing.

    If no hearing is requested by a party of record, the Judge shall 
issue an initial decision based on the written record and without 
further procedure or hearing. If no hearing is requested, the written 
record consists of papers and documents submitted during the 30-day 
comment period, the 10-day review period, and includes motions submitted 
before the Judge issues an initial decision. For purposes of a formal 
review of a sourcing area, the written record also consists of the 
papers and documents submitted during the informal review. Copies of the 
decision shall be served by the Hearing Clerk upon each of the parties 
of record.



Sec. 1.419  Amendment of a sourcing area application.

    The sourcing area applicant may move to amend the sourcing area 
application with clarifying and technical amendments at any time prior 
to the Judge's initial determination if there is no hearing, or prior to 
the close of the hearing if there is a hearing.



Sec. 1.420  Consent recommendation.

    Any time before the Judge files the decision, the parties of record 
may enter a consent recommendation. Such consent recommendation shall be 
filed with the Hearing Clerk, signed by the parties with appropriate 
space for signature by the Judge. The consent recommendation shall 
contain an admission of the jurisdictional facts, the factual and legal 
basis for the recommended sourcing area, the consent to the issuance of 
the recommended decision as the final decision of the agency without 
further procedure and such other admissions or statements as may be 
recommended by the parties. The Judge shall review the recommendation to 
determine whether such recommendation conforms with the Forest Resources 
Conservation and Shortage Relief Act of 1990 (16 U.S.C. 620, et seq.), 
36 CFR 223.190, 36 CFR 223.191(e) and these procedures. If the 
recommendation conforms to the aforementioned Act, regulations, and 
procedures, the Judge may enter such decision without further procedure, 
unless an error is apparent on the face of the document. If the Judge 
enters the decision, such decision shall have the same force and effect 
as a decision issued after full hearing and shall become final upon 
issuance to become effective in accordance with the terms of the 
decision.



Sec. 1.421  Prehearing conferences and procedures.

    (a) Purpose and Scope. (1) Upon motion of a party of record or upon 
the Judge's own motion, the Judge may direct the parties or their 
counsel to attend a conference at any reasonable time, prior to or 
during the course of the hearing, when the Judge finds that the 
proceeding would be expedited by a prehearing conference. Reasonable 
notice of the time and place of the conference shall be given. The Judge 
may order each of the parties to furnish at or subsequent to the 
conference any or all of the following:
    (i) An outline of a party's position;
    (ii) The facts upon which the party will rely;
    (iii) The legal theories upon which the party will rely;
    (iv) Copies of or a list of documents which the party anticipates 
introducing at the hearing; and

[[Page 113]]

    (v) A list of anticipated witnesses who will testify on behalf of 
the party. At the discretion of the party furnishing such list of 
witnesses, the names of the witnesses need not be furnished if they are 
otherwise identified in some meaningful way such as a short statement of 
the type of evidence they will offer.
    (2) The Judge shall not order any of the foregoing procedures that a 
party can show is inappropriate or unwarranted under the circumstances 
of the particular determination.
    (3) At the conference, the following matters shall be considered:
    (i) The simplification of issues;
    (ii) The possibility of obtaining stipulations of facts and of the 
authenticity, accuracy, and admissibility of documents, which will avoid 
unnecessary proof;
    (iii) The limitation of the number of expert or other witnesses;
    (iv) Negotiation, compromise, or settlement of issues;
    (v) The exchange of copies of proposed exhibits;
    (vi) The identification of documents or matters of which official 
notice may be requested;
    (vii) A schedule to be followed by the parties for completion of the 
actions decided at the conference; and
    (viii) Such other matters as may expedite and aid in the disposition 
of the proceeding.
    (b) Reporting. A prehearing conference will not be stenographically 
reported unless so directed by the Judge.
    (c) Action in lieu of personal attendance at a conference. In the 
event the Judge concludes that personal attendance by the Judge and the 
parties or counsel at a prehearing conference is unwarranted or 
impracticable, but determines that a conference would expedite the 
proceeding, the Judge may conduct such conference by telephone or 
correspondence.
    (d) Order. Actions taken as a result of a conference shall be 
reduced to an appropriate written order, unless the Judge concludes that 
a stenographic report shall suffice, or if the Judge elects to make a 
statement on the record at the hearing summarizing the actions taken.



Sec. 1.422  Conduct of the hearing.

    (a) Time and place. The hearing shall be held at the time and place 
fixed in the notice of hearing. If any change in the time or place of 
the hearing is made, the Judge shall file with the Hearing Clerk a 
notice of such change, which notice shall be served upon the parties, 
unless it is made during the course of an oral script, or actual notice 
is given to the parties.
    (b) Appearances. The parties may appear in person or by attorney of 
record in the proceeding. Any party who desires to be heard in person 
shall, before proceeding to testify, state his name, address, and 
occupation. If any such person is appearing through counsel, such person 
or such counsel shall, before proceeding to testify or otherwise to 
participate in the hearing, state for the record the authority to act as 
such counsel or representative, and the names, addresses, and 
occupations of such person and such counsel. Any such person or such 
counsel shall give such other information respecting his appearance as 
the Judge may request. Any person who appears as counsel must conform to 
the standards of ethical conduct required of practitioners before the 
courts of the United States.
    (c) Failure to appear. A party of record who, after being duly 
notified, fails to appear at the hearing without good cause, shall be 
deemed to have waived the right to an oral hearing in the proceeding. 
Failure to appear at a hearing shall not be deemed to be a waiver of the 
right to be served with a copy of the Judge's decision.
    (d) Order of proceeding. The Judge shall determine the order in 
which the parties shall proceed.
    (e) Evidence--(1) In general. (i) The testimony of witnesses at a 
hearing shall be on oath or affirmation and shall be subject to cross-
examination. Cross-examination shall be permitted to the extent required 
for a full and true disclosure of the facts. The Judge may require that 
testimony on one issue raised by numerous parties be heard at one time.
    (ii) Upon a finding of good cause, the Judge may order that any 
witness be examined separately and apart from all other witnesses except 
those who may be parties to the proceeding.

[[Page 114]]

    (iii) After a witness has testified on direct examination, any other 
party may request and obtain the production of any statement, or part 
thereof, of such witness in the possession of the party who called the 
witness, which relates to the subject matter as to which the witness has 
testified. Such production shall be made according to the procedures and 
subject to the definitions and limitations prescribed in the Jencks Act 
(18 U.S.C. 3500).
    (iv) Evidence which is immaterial, or unduly repetitious, or which 
is not of the sort upon which responsible persons are accustomed to 
rely, shall be excluded insofar as practicable.
    (2) Objections. (i) If a party objects to the admission of any 
evidence or to the limitation of the scope of any examination or cross-
examination or to any other ruling of the Judge, the party shall state 
briefly the grounds of such objection, whereupon an automatic exception 
will follow if the objection is overruled by the Judge.
    (ii) Only objections made before the Judge may subsequently be 
relied upon in the proceeding.
    (3) Depositions. The deposition of any witness shall be admitted in 
the manner provided in and subject to the provisions of Sec. 1.228 of 
these procedures.
    (4) Exhibits. Unless the Judge finds that the furnishing of copies 
is impracticable, two copies of each exhibit shall be filed with the 
Judge. The party submitting the exhibit shall serve on every other party 
of record a copy of the exhibit, pursuant to Sec. 1.427(c) of these 
procedures. A true copy of an exhibit may be substituted for the 
original.
    (5) Official records or documents. An official government record or 
document or entry therein, if admissible for any purpose, shall be 
admissible in evidence without the production of the person who made or 
prepared the same, and shall be prima facie evidence of the relevant 
facts stated therein. Such record or document shall be evidenced by an 
official publication thereof or a copy certified by a person having 
legal authority to make such certification.
    (6) Official notice. Official notice shall be taken of such matters 
as are judicially noted by the courts of the United States and of any 
other matter of technical, scientific, or commercial fact of established 
character: Provided, That the parties shall be given adequate notice of 
matters so noticed, and shall be given adequate opportunity to show that 
such facts are erroneously noticed.
    (7) Offer of proof. Whenever evidence is excluded by the Judge, the 
party offering such evidence may make an offer of proof, which shall be 
included in the transcript. The offer of proof shall consist of a brief 
statement describing the evidence excluded. If the evidence consists of 
a brief oral statement, it shall be included in the transcript in toto. 
If the evidence consists of an exhibit, it shall be marked for 
identification and inserted in the hearing record.
    (f) Transcript. Hearings shall be recorded and transcribed verbatim. 
Transcripts thereof shall be made available to any person, at actual 
cost of duplication (5 U.S.C. App. 2, section 11).



Sec. 1.423  Post-hearing procedure.

    (a) Corrections to transcript. (1) Within the period of time fixed 
by the Judge, any party may file a motion proposing corrections to the 
transcript.
    (2) Unless a party files such motion in the manner prescribed, the 
transcript shall be presumed, except for obvious typographical errors, 
to be complete.
    (3) As soon as practicable after the close of the hearing and after 
consideration of any timely objections filed as to the transcript, the 
Judge shall issue an order making any corrections to the transcript 
which the Judge finds are warranted, which corrections shall be entered 
onto the original transcript by the Hearing Clerk (without obscuring the 
origianl text).
    (b) Proposed findings of fact, conclusions, order, and brief. Prior 
to the close of the hearing, each party may submit for consideration 
proposed findings of fact, conclusions, order, and brief in support 
thereof. A copy of each such document filed by a party shall be served 
upon each of the other parties.
    (c) Judge's decision. (1) The Judge may, upon motion of any party or 
in his or her own discretion, issue a decision orally at the close of 
the hearing, or within 10 calendar days after the

[[Page 115]]

close of the hearing, or within 10 calendar days after submission of the 
record, if no hearing is requested.
    (2) If the decision is announced orally, a copy thereof, excerpted 
from the transcript of the record, shall be furnished to the parties by 
the Hearing Clerk. Irrespective of the date such copy is mailed, the 
issuance date of the decision shall be the date the oral decision was 
announced.
    (3) If the decision is in writing, it shall be filed with the 
Hearing Clerk and served upon the parties as provided in Sec. 1.427.
    (4) The Judge's decision shall become effective without further 
proceedings 21 calendar days after the issuance of the decision, if 
announced orally at the hearing, or if the decision is in writing, 21 
calendar days after the date of service thereof upon the respondent, 
unless there is an appeal to the Judicial Officer by a party to the 
proceeding pursuant to Sec. 1.426; Provided, however, that no decision 
shall be final for purposes of judicial review except a final decision 
of the Judicial Officer upon appeal.
    (5) The Judicial Officer shall issue a decision within 10 calendar 
days of the receipt of the response to the appeal.



Sec. 1.424  Motions and requests.

    (a) General. All motions and requests shall be filed with the 
Hearing Clerk, and served upon all the parties except motions and 
requests made on the record during the oral hearing.
    (b) Motions entertained. No dispositive motions, including motions 
to dismiss on the pleadings and motions for summary judgment, shall be 
entertained unless specifically mentioned herein or allowed in the 
discretion of the Judge.
    (c) Contents. All written motions and requests shall state the 
particular order, ruling, or action desired and the grounds therefore.
    (d) Response to motions and requests. Within 5 days after service of 
any written motion or request, or within such shorter or longer period 
as may be fixed by the Judge, an opposing party may file a response to 
the motion or request. The other party shall have no right to reply to 
the response.



Sec. 1.425  Judges.

    (a) Assignment. No Judge shall be assigned to serve in any 
proceeding who:
    (1) Has any pecuniary interest in any matter or business involved in 
the proceeding;
    (2) Is related within the third degree by blood or marriage to any 
party to the proceeding; or
    (3) Has any conflict of interest which might impair the Judge's 
objectivity in the proceeding.
    (b) Disqualification of Judge. (1) Any party to the proceeding may, 
by motion made to the Judge, request that the Judge withdraw from the 
proceeding because of an alleged disqualifying reason. Such motion shall 
set forth with particularity the grounds of alleged disqualification. 
The Judge may then either rule upon or certify the motion to the 
Secretary, but not both.
    (2) A Judge shall withdraw from any proceeding for any reason deemed 
by the Judge to be disqualifying.
    (c) Powers. Subject to review as provided elsewhere in this part, 
the Judge, in any assigned proceeding shall have power to:
    (1) Rule upon motions and requests;
    (2) Set the time and place of a pre-hearing conference and the 
hearing, adjourn the hearing from time to time, and change the time and 
place of hearing;
    (3) Administer oaths and affirmations;
    (4) Request the presence of and examine witnesses and receive 
relevant evidence at the hearing;
    (5) Take or order the taking of depositions as authorized under 
these rules;
    (6) Admit or exclude evidence;
    (7) Hear oral argument on facts or law,
    (8) Do all acts and take all measures necessary for the maintenance 
of order, including the exclusion of contumacious counsel or other 
persons;
    (9) Request additional information from any party to aid in the 
Judge's determination; and
    (10) Take all other actions authorized under these procedures.
    (d) Who may act in the absence of the Judge. In case of the absence 
of the Judge or the Judge's inability to act, the powers and duties to 
be performed

[[Page 116]]

by the Judge under these rules of practice in connection with any 
assigned proceeding may, without abatement of the proceeding unless 
otherwise directed by the Chief Judge, be assigned to any other Judge.



Sec. 1.426  Appeal to Judicial Officer.

    (a) Filing of petition. Within 10 calendar days after receiving 
service of the Judge's decision, a party who disagrees with the 
decision, or any part thereof, or any ruling by the Judge or any alleged 
deprivation of rights, may appeal such decision to the Judicial Officer 
by filing an appeal petition with the Hearing Clerk. As provided in 
Sec. 1.422(e)(2), objections regarding evidence or a limitation 
regarding examination or cross-examination or other rulings made before 
the Judge may be relied upon in an appeal. Each issue set forth in the 
petition, and the arguments thereon, shall be separately numbered; shall 
be plainly and concisely stated; and shall contain detailed citations of 
the record, statutes, regulations or authorities being relied upon in 
support thereof. A brief may be filed in support of the appeal 
simultaneously with the petition. A party filing a petition of appeal to 
the Judicial Officer, and any brief in support thereof, shall serve the 
other parties to the proceeding with a copy of the petition and 
supporting brief. The copies of the petition and supporting brief shall 
be served on the parties to the proceeding with a copy of the petition 
and supporting brief. The copies of the petition and supporting brief 
shall be served on the parties to the proceeding on the same day as the 
petition and supporting brief are filed with the Judicial Officer.
    (b) Response to appeal petition. Within 10 calendar days after the 
service of a copy of an appeal petition and any brief in support 
thereof, filed by a party to the proceeding, any other party may file 
with the Hearing Clerk a response in support of or in opposition to the 
appeal and in such response any relevant issue, not presented in the 
appeal petition, may be raised. A party filing a response to a petition 
of appeal to the Judicial Officer shall serve the other parties to the 
proceeding with a copy of the response. The copies of the response shall 
be served on the parties to the proceeding on the same day as the 
response is filed with the Judicial Officer.
    (c) Transmittal of record. Whenever an appeal of a Judge's decision 
is filed and a response thereto has been filed or time for filing a 
response has expired, the Hearing Clerk shall transmit to the Judicial 
Officer the record of the proceeding. Such record shall include: The 
pleadings; motions and requests filed and rulings thereon; the 
transcript of the testimony taken at the hearing, together with the 
exhibits filed in connection therewith; any documents or papers filed in 
connection with a prehearing conference; such proposed findings of fact, 
conclusions, and orders, and briefs in support thereof, as may have been 
filed in connection with the proceeding; the Judge's decision; such 
exceptions, statements of objections and briefs in support thereof as 
may have been filed in the proceeding; and the appeal petition, and such 
briefs in support thereof and responses thereto as may have been filed 
in the proceeding.
    (d) Decision of the Judicial Officer on appeal. The Judicial 
Officer, upon the basis of and after due consideration of the record and 
any matter of which official notice is taken, shall rule on the appeal 
within 4 months after the institution of the proceeding, pursuant to 16 
U.S.C. 620b(c)(3). If the Judicial Officer decides that no change or 
modification of the Judge's decision is warranted, the Judicial Officer 
may adopt the Judge's decision as the final order in the proceeding, 
preserving any right of the party bringing the appeal to seek judicial 
review of such decision in the proper forum. A final order issued by the 
Judicial Officer shall be filed with the Hearing Clerk. Such order may 
be regarded by a party as final for purposes of judicial review.



Sec. 1.427  Filing; identification of parties of record; service; and computation of time.

    (a) Filing; number of copies. Except as otherwise provided in this 
section, all documents or papers required or authorized by the rules in 
this part to be filed with the Hearing Clerk shall be filed in 
duplicate. Any document or

[[Page 117]]

paper required or authorized under the rules in this part to be filed 
with the Hearing Clerk shall, during the course of an oral hearing, be 
filed with the Judge.
    (b) Parties of record shall receive a list from the Hearing Clerk of 
the names and addresses of all parties of record immediately after the 
close of the comment period.
    (c) Service; proof of service. (1) Each party of record is 
responsible for serving on every other party and to the Judge all papers 
and documents submitted after the comment period. Service shall be made 
either:
    (i) by delivering a copy of the document or paper to the individual 
to be served or to a member of the partnership to be served, or to the 
president, secretary, or other executive officer or a director of the 
corporation or association to be served, or to the attorney of record 
representing such individual, partnership, corporation, organization, or 
association; or
    (ii) by leaving a copy of the document or paper at the principal 
office or place of business or residence of such individual, 
partnership, corporation, organization, or association, or of the 
attorney or agent of record and mailing by regular mail another copy to 
such person at such address; or
    (iii) by registering or certifying and mailing a copy of the 
document or paper, addressed to such individual, partnership, 
corporation, organization, or association, or to the attorney or agent 
of record, at the last known residence or principal office or place of 
business of such person: Provided, That if the registered or certified 
document or paper is returned undelivered because the addressee refused 
or failed to accept delivery, the document or paper shall be served by 
remailing it by regular mail; or
    (iv) by mailing the document or paper by regular mail.
    (2) Proof of service hereunder shall be made by the certificate of 
the person who actually made the service: Provided, that if the service 
is made by mail, as outlined in paragraph (b)(3) of this section, proof 
of service shall be made by the return post-office receipt, in the case 
of registered or certified mail, and if that service is made by regular 
mail, as outlined in paragraphs (b)(3) and (b)(4) of this section, proof 
of service shall be made by the certificate of the person who mailed the 
matter by regular mail. The certificate and post-office receipt 
contemplated herein shall be filed with the Hearing Clerk, and made a 
part of the record of the proceeding. The Judge and the Hearing Clerk 
shall follow the procedures outlined in (c) for service of papers or 
documents signed by the Judge and/or the Hearing Clerk.
    (d) Effective date of filing. Any document or paper required or 
authorized under the rules in this part to be filed shall be deemed to 
be filed at the time when it reaches the Hearing Clerk; or, if 
authorized to be filed with another officer or employee of the 
Department it shall be deemed to be filed at the time when it reaches 
such officer or employee.
    (e) Computations of time. Saturdays, Sundays and Federal holidays 
shall be included in computing the time allowed for the filing of any 
document or paper except as provided in these rules; Provided, that, 
when such time expires on a Saturday, Sunday, or Federal holiday, such 
period shall be extended to include the next following business day.



Sec. 1.428  Depositions.

    (a) Motion for taking deposition. Upon the motion of a party to the 
proceeding, the Judge may, at any time after the filing of the 
submission, order the taking of testimony by deposition. The Motion 
shall be in writing, shall be filed with the Hearing Clerk, and shall 
set forth:
    (1) The name and address of the proposed deponent;
    (2) The name and address of the person (referred to hereafter in 
this section as the ``officer'') qualified under the regulations in this 
part to take depositions, before whom the proposed examination is to be 
made;
    (3) The proposed time and place of the examination; and
    (4) The reasons why such deposition should be taken, which shall be 
solely for the purpose of eliciting testimony which otherwise might not 
be available at the time of the hearing, for uses as

[[Page 118]]

provided in paragraph (g) of this section.
    (b) Judge's order for taking deposition. (1) If the Judge finds that 
testimony may not be otherwise available at the hearing, the taking of 
the deposition may be ordered. The order shall be served upon the 
parties, and shall state:
    (i) The time and place of the examination;
    (ii) The name of the officer before whom the examination is to be 
made; and
    (iii) The name of the deponent.
    (2) The officer and the time and place need not be the same as those 
suggested in the motion.
    (c) Qualifications of officer. The deposition shall be made before 
the Judge or before an officer authorized by the law of the United 
States or by the law of the place of the examination to administer 
oaths, or before an officer authorized by the Secretary to administer 
oaths.
    (d) Procedure on examinations. (1) The deponent shall be subject to 
cross-examination. Objections to questions or documents shall be in 
short form, stating the grounds of objections relied upon. The questions 
propounded, together with all objections made (but not including 
argument or debate), shall be recorded verbatim. In lieu of oral 
examination, parties may transmit written questions to the officer prior 
to the examination and the officer shall propound such questions to the 
deponent.
    (2) The applicant shall arrange for the examination of the witness 
either by oral examination, or by written questions upon agreement of 
the parties or as directed by the Judge. If the examination is conducted 
by means of written questions, copies of the questions shall be served 
upon the other party to the proceeding and filed with the officer and 
the other party may serve cross questions and file them with the officer 
at any time prior to the time of the examination.
    (e) Certification by officer. The officer shall certify on the 
deposition that the deponent was duly sworn and that the deposition is a 
true record of the deponent's testimony. The officer shall then securely 
seal the deposition, together with one copy thereof (unless there are 
more than two parties in the proceeding, in which case there should be 
another copy for each additional party), in an envelope and mail the 
same by registered or certified mail to the Hearing Clerk.
    (f) Corrections to the transcript. (1) At any time prior to the 
hearing any party may file a motion proposing corrections to the 
transcript of the deposition.
    (2) Unless a party files such a motion in the manner prescribed, the 
transcript shall be presumed, except for obvious typographical errors, 
to be a true, correct, and complete transcript of the testimony given in 
the deposition proceeding and to contain an accurate description or 
reference to all exhibits in connection therewith, and shall be deemed 
to be certified correct without further procedure.
    (3) At any time prior to use of the deposition in accordance with 
paragraph (g) of this section and after consideration of any objections 
filed thereto, the Judge may issue an order making any corrections in 
the transcript which the Judge finds are warranted, which corrections 
shall be entered onto the original transcript by the Hearing Clerk 
(without obscuring the original text).
    (g) Use of deposition. A deposition ordered and taken in accordance 
with the provisions of this section may be used in a proceeding under 
these rules if the Judge finds that the evidence is otherwise admissible 
and that the witness is dead; that the witness is unable to attend or 
testify because of age, sickness, infirmity, or imprisonment; or that 
such exceptional circumstances exist as to make it desirable, in the 
interests of justice, to allow the deposition to be used. If the party 
upon whose motion the deposition was taken refuses to offer it in 
evidence, any other party may offer the deposition or any thereof in 
evidence. If only part of a deposition is offered in evidence by a 
party, an adverse party may require the introduction of any other part 
which ought in fairness to be considered with the part introduced and 
any party may introduce any other parts.

[[Page 119]]



Sec. 1.429  Ex parte communications.

    (a) At no stage of the proceeding between its institution and 
issuance of the final decision shall an employee of the Department who 
is or may reasonably be expected to be involved in the decisional 
process of the proceeding discuss ex parte the merits of the proceeding 
with any person having an interest in the proceeding, or with any 
representative of such person: Provided, That, procedural matters and 
status reports shall not be included within this limitation; and 
Provided further, That an employee of the Department who is or may be 
involved in the decisional process of the proceeding may discuss the 
merits of the proceeding if all parties of record have been given notice 
and an opportunity to participate. A memorandum of any such discussion 
shall be included in the record.
    (b) No interested person shall make or knowingly cause to be made to 
the Judge an ex parte communication relevant to the merits of the 
proceeding.
    (c) If the Judge reviews an ex parte communication in violation of 
this section, the one who receives the communication shall place in the 
public record of the proceeding:
    (1) All such written communication;
    (2) Memoranda stating the substance of all such oral communications; 
and
    (3) All written responses, and memoranda stating the substance of 
all oral responses thereto.
    (d) Upon receipt of a communication knowingly made or knowingly 
caused to be made by a party in violation of this section, the Judge 
may, to the extent consistent with the interests of justice and the 
policy of the underlying statute, require the party to show cause why 
his claim or interest in the proceeding should not be dismissed, denied, 
disregarded, or otherwise adversely affected on account of such 
violation.
    (e) To the extent consistent with the interests of justice and the 
policy of the underlying statute, a violation of this section shall be 
sufficient grounds for a decision adverse to the party who knowingly 
commits a violation of this section or who knowingly causes such a 
violation to occur.
    (f) For purposes of this section ``ex parte communication'' means an 
oral or written communication not on the public record with respect to 
which reasonable prior notice to all parties is not given, but it shall 
not include requests for status reports on any matter or the proceeding.



PART 1a--LAW ENFORCEMENT AUTHORITIES--Table of Contents




Sec.
1a.1  General statement.
1a.2  Authorization.
1a.3  Persons authorized.
1a.4  Limitations.
1a.5  Responsibility of the Inspector General.

    Authority: Sec. 1337, Pub. L. 97-98; 5 U.S.C. 301; 5 U.S.C. App. I.

    Source: 47 FR 2073, Jan. 14, 1982, unless otherwise noted.



Sec. 1a.1  General statement.

    This part sets forth the rules issued by the Secretary of 
Agriculture to implement section 1337 of Public Law 97-98 relating to:
    (a) Arrests without warrant for certain criminal felony violations;
    (b) Execution of warrants for arrests, searches of premises and 
seizures of evidence; and
    (c) The carrying of firearms by designated officials of the Office 
of Inspector General.



Sec. 1a.2  Authorization.

    Any official of the Office of Inspector General who is designated by 
the Inspector General according to Secs. 1a.3 and 1a.5 of this part and 
who is engaged in the performance of his/her official duties under the 
authority provided in section 6, or described in section 9, of the 
Inspector General Act of 1978 (5 U.S.C. App.), is authorized to--
    (a) Make an arrest without a warrant for any criminal felony 
violation subject to Sec. 1a.4, if such violation is committed, or if 
the official has probable cause to believe that such violation is being 
committed, in his/her presence;
    (b) Execute and serve a warrant for an arrest, for the search of 
premises, or the seizure of evidence if such warrant is issued under 
authority of the United States upon probable cause to believe

[[Page 120]]

that any criminal felony violation, subject to Sec. 1a.4, has been 
committed; and
    (c) Carry a firearm.

[50 FR 13759, Apr. 8, 1985]



Sec. 1a.3  Persons authorized.

    Any person who is employed in the Office of Inspector General and 
who is designated by the Inspector General in accordance with and 
subject to Sec. 1a. and who conducts investigations of alleged or 
suspected felony criminal violations of statutes administered by the 
Secretary of Agriculture or any agency of the Department of Agriculture 
may exercise the authorities listed in and pursuant to Sec. 1a.2.



Sec. 1a.4  Limitations.

    The powers granted by Secs. 1a.2(a) and 1a.2(b) shall be exercised 
only when a designated official is engaged in an investigation of 
alleged or suspected felony violations of statutes administered by the 
Secretary of Agriculture or any agency of the Department.

[50 FR 13759, Apr. 8, 1985]



Sec. 1a.5  Responsibility of the Inspector General.

    The Inspector General shall:
    (a) Issue directives conforming to this part governing the exercise 
of the authorities granted by this part. These directives should contain 
the policies and procedures by which the authorities will be exercised 
by designated officials of the Office of Inspector General;
    (b) Establish criteria for qualification by officials of the Office 
of Inspector General who are designated to exercise the authorities 
granted in this part;
    (c) Monitor the implementation and exercise of the authorities 
granted by this part;
    (d) Designate, pursuant to Secs. 1a.2, 1a.3 and 1a.4, and the 
directives issued under paragraph (a) of this section, and the criteria 
established under paragraph (b) of this section, employees who have 
satisfied all the qualifications set by the Inspector General to 
exercise the authorities granted by Sec. 1a.2; and
    (e) Submit to the Attorney General of the United States the name of 
any employee of the Office of Inspector General designated pursuant to 
paragraph (d) of this section. Any designation not specifically 
disapproved by the Attorney General within 30 days after the date of 
submission shall be deemed approved.



PART 1b--NATIONAL ENVIRONMENTAL POLICY ACT--Table of Contents




Sec.
1b.1  Purpose.
1b.2  Policy.
1b.3  Categorical exclusions.
1b.4  Exclusion of agencies.

    Authority: 5 U.S.C. 301; 42 U.S.C. 4321 et seq.; E.O. 11514, 3 CFR, 
1966-1970 Comp., p. 902, as amended by E.O. 11991, 3 CFR, 1978 Comp., p. 
123; E.O. 12114, 3 CFR, 1980 Comp., p. 356; 40 CFR 1507.3.

    Source: 48 FR 11403, Mar. 18, 1983, unless otherwise noted.



Sec. 1b.1  Purpose.

    (a) This part supplements the regulations for implementation of the 
National Environmental Policy Act (NEPA), for which regulations were 
published by the Council on Environmental Quality (CEQ) in 40 CFR parts 
1500 through 1508. This part incorporates and adopts those regulations.
    (b) This part sets forth Departmental policy concerning NEPA, 
establishes categorical exclusions of actions carried out by the 
Department and its agencies, and sets forth those USDA agencies which 
are excluded from the requirement to prepare procedures implementing 
NEPA.

[48 FR 11403, Mar. 18, 1983, as amended at 60 FR 66481, Dec. 22, 1995]



Sec. 1b.2  Policy.

    (a) All policies and programs of the various USDA agencies shall be 
planned, developed, and implemented so as to achieve the goals and to 
follow the procedures declared by NEPA in order to assure responsible 
stewardship of the environment for present and future generations.
    (b) Each USDA agency is responsible for compliance with this part, 
the regulations of CEQ, and NEPA. Compliance

[[Page 121]]

will include the preparation and implementation of specific procedures 
and processes relating to the programs and activities of the individual 
agency, as necessary.
    (c) The Under Secretary, Natural Resources and Environment (NR&E), 
is responsible for ensuring that agency implementing procedures are 
consistent with CEQ's NEPA regulations and for coordinating NEPA 
compliance for the Department. The Under Secretary, NR&E, through the 
Agricultural Council on Environmental Quality, will develop the 
necessary processes to be used by the Office of the Secretary in 
reviewing, implementing, and planning its NEPA activities, 
determinations, and policies.
    (d) In connection with the policies and requirements set forth in 
this part, all USDA agencies are responsible for compliance with 
Executive Order 12114, ``Environmental Effects Abroad of Major Federal 
Actions.'' Compliance will include the preparation and implementation of 
specific procedures and processes relative to the programs and 
activities of the individual agencies, as necessary. Agencies shall 
consult with the Department of State; the Council on Environmental 
Quality; and the Under Secretary, NR&E, prior to placing procedures and 
processes in effect.

[48 FR 11403, Mar. 18, 1983, as amended at 60 FR 66481, Dec. 22, 1995]



Sec. 1b.3  Categorical exclusions.

    (a) The following are categories of activities which have been 
determined not to have a significant individual or cumulative effect on 
the human environment and are excluded from the preparation of 
environmental assessment (EA's) or environmental impact statement 
(EIS's), unless individual agency procedures prescribed otherwise.
    (1) Policy development, planning and implementation which relate to 
routine activities, such as personnel, organizational changes, or 
similar administrative functions;
    (2) Activities which deal solely with the funding of programs, such 
as program budget proposals, disbursements, and transfer or 
reprogramming of funds;
    (3) Inventories, research activities, and studies, such as resource 
inventories and routine data collection when such actions are clearly 
limited in context and intensity;
    (4) Educational and informational programs and activities;
    (5) Civil and criminal law enforcement and investigative activities;
    (6) Activities which are advisory and consultative to other agencies 
and public and private entities, such as legal counselling and 
representation;
    (7) Activities related to trade representation and market 
development activities abroad.
    (b) Agencies will identify in their own procedures the activities 
which normally would not require an environmental assessment or 
environmental impact statement.
    (c) Notwithstanding the exclusions listed in paragraphs (a) of this 
section and Sec. 1b.4, or identified in agency procedures, agency heads 
may determine that circumstances dictate the need for preparation of an 
EA or EIS for a particular action. Agencies shall continue to scrutinize 
their activities to determine continued eligibility for categorical 
exclusion.

[48 FR 11403, Mar. 18, 1983, as amended at 60 FR 66481, Dec. 22, 1995]



Sec. 1b.4  Exclusion of agencies.

    (a) The USDA agencies and agency units listed in paragraph (b) of 
this section conduct programs and activities that have been found to 
have no individual or cumulative effect on the human environment. The 
USDA agencies and agency units listed in paragraph (b) of this section 
are excluded from the requirements of preparing procedures to implement 
NEPA. Actions of USDA agencies and agency units listed in paragraph (b) 
of this section are categorically excluded from the preparation of an EA 
or EIS unless the agency head determines that an action may have a 
significant environmental effect.

(b)(1) Agricultural Marketing Service
(2) Economic Research Service
(3) Extension Service
(4) Federal Corp Insurance Corporation
(5) Food and Consumer Service
(6) Food Safety and Inspection Service
(7) Foreign Agricultural Service

[[Page 122]]

(8) Grain Inspection, Packers and Stockyards Administration
(9) National Agricultural Library
(10) National Agricultural Statistics Service
(11) Office of the General Counsel
(12) Office of the Inspector General

[60 FR 66481, Dec. 22, 1995]



PART 1c--PROTECTION OF HUMAN SUBJECTS--Table of Contents




Sec.
1c.101  To what does this policy apply?
1c.102  Definitions.
1c.103  Assuring compliance with this policy--research conducted or 
          supported by any Federal Department or Agency.
1c.104--1c.106  [Reserved]
1c.107  IRB membership.
1c.108  IRB functions and operations.
1c.109  IRB review of research.
1c.110  Expedited review procedures for certain kinds of research 
          involving no more than minimal risk, and for minor changes in 
          approved research.
1c.111  Criteria for IRB approval of research.
1c.112  Review by institution.
1c.113  Suspension or termination of IRB approval of research.
1c.114  Cooperative research.
1c.115  IRB records.
1c.116  General requirements for informed consent.
1c.117  Documentation of informed consent.
1c.118  Applications and proposals lacking definite plans for 
          involvement of human subjects.
1c.119  Research undertaken without the intention of involving human 
          subjects.
1c.120  Evaluation and disposition of applications and proposals for 
          research to be conducted or supported by a Federal Department 
          or Agency.
1c.121  [Reserved]
1c.122  Use of Federal funds.
1c.123  Early termination of research support: Evaluation of 
          applications and proposals.
1c.124  Conditions.

    Authority: 5 U.S.C. 301; 42 U.S.C. 300v-1(b).

    Source: 56 FR 28012, 28018, June 18, 1991, unless otherwise noted.



Sec. 1c.101  To what does this policy apply?

    (a) Except as provided in paragraph (b) of this section, this policy 
applies to all research involving human subjects conducted, supported or 
otherwise subject to regulation by any federal department or agency 
which takes appropriate administrative action to make the policy 
applicable to such research. This includes research conducted by federal 
civilian employees or military personnel, except that each department or 
agency head may adopt such procedural modifications as may be 
appropriate from an administrative standpoint. It also includes research 
conducted, supported, or otherwise subject to regulation by the federal 
government outside the United States.
    (1) Research that is conducted or supported by a federal department 
or agency, whether or not it is regulated as defined in Sec. 1c.102(e), 
must comply with all sections of this policy.
    (2) Research that is neither conducted nor supported by a federal 
department or agency but is subject to regulation as defined in 
Sec. 1c.102(e) must be reviewed and approved, in compliance with 
Sec. 1c.101, Sec. 1c.102, and Sec. 1c.107 through Sec. 1c.117 of this 
policy, by an institutional review board (IRB) that operates in 
accordance with the pertinent requirements of this policy.
    (b) Unless otherwise required by department or agency heads, 
research activities in which the only involvement of human subjects will 
be in one or more of the following categories are exempt from this 
policy:
    (1) Research conducted in established or commonly accepted 
educational settings, involving normal educational practices, such as 
(i) Research on regular and special education instructional strategies, 
or (ii) research on the effectiveness of or the comparison among 
instructional techniques, curricula, or classroom management methods.
    (2) Research involving the use of educational tests (cognitive, 
diagnostic, aptitude, achievement), survey procedures, interview 
procedures or observation of public behavior, unless:
    (i) Information obtained is recorded in such a manner that human 
subjects can be identified, directly or through identifiers linked to 
the subjects; and (ii) any disclosure of the human subjects' responses 
outside the research could reasonably place the subjects at risk of 
criminal or civil liability or be damaging to the subjects' financial 
standing, employability, or reputation.
    (3) Research involving the use of educational tests (cognitive, 
diagnostic,

[[Page 123]]

aptitude, achievement), survey procedures, interview procedures, or 
observation of public behavior that is not exempt under paragraph (b)(2) 
of this section, if:
    (i) The human subjects are elected or appointed public officials or 
candidates for public office; or (ii) federal statute(s) require(s) 
without exception that the confidentiality of the personally 
identifiable information will be maintained throughout the research and 
thereafter.
    (4) Research, involving the collection or study of existing data, 
documents, records, pathological specimens, or diagnostic specimens, if 
these sources are publicly available or if the information is recorded 
by the investigator in such a manner that subjects cannot be identified, 
directly or through identifiers linked to the subjects.
    (5) Research and demonstration projects which are conducted by or 
subject to the approval of department or agency heads, and which are 
designed to study, evaluate, or otherwise examine:
    (i) Public benefit or service programs; (ii) procedures for 
obtaining benefits or services under those programs; (iii) possible 
changes in or alternatives to those programs or procedures; or (iv) 
possible changes in methods or levels of payment for benefits or 
services under those programs.
    (6) Taste and food quality evaluation and consumer acceptance 
studies, (i) if wholesome foods without additives are consumed or (ii) 
if a food is consumed that contains a food ingredient at or below the 
level and for a use found to be safe, or agricultural chemical or 
environmental contaminant at or below the level found to be safe, by the 
Food and Drug Administration or approved by the Environmental Protection 
Agency or the Food Safety and Inspection Service of the U.S. Department 
of Agriculture.
    (c) Department or agency heads retain final judgment as to whether a 
particular activity is covered by this policy.
    (d) Department or agency heads may require that specific research 
activities or classes of research activities conducted, supported, or 
otherwise subject to regulation by the department or agency but not 
otherwise covered by this policy, comply with some or all of the 
requirements of this policy.
    (e) Compliance with this policy requires compliance with pertinent 
federal laws or regulations which provide additional protections for 
human subjects.
    (f) This policy does not affect any state or local laws or 
regulations which may otherwise be applicable and which provide 
additional protections for human subjects.
    (g) This policy does not affect any foreign laws or regulations 
which may otherwise be applicable and which provide additional 
protections to human subjects of research.
    (h) When research covered by this policy takes place in foreign 
countries, procedures normally followed in the foreign countries to 
protect human subjects may differ from those set forth in this policy. 
[An example is a foreign institution which complies with guidelines 
consistent with the World Medical Assembly Declaration (Declaration of 
Helsinki amended 1989) issued either by sovereign states or by an 
organization whose function for the protection of human research 
subjects is internationally recognized.] In these circumstances, if a 
department or agency head determines that the procedures prescribed by 
the institution afford protections that are at least equivalent to those 
provided in this policy, the department or agency head may approve the 
substitution of the foreign procedures in lieu of the procedural 
requirements provided in this policy. Except when otherwise required by 
statute, Executive Order, or the department or agency head, notices of 
these actions as they occur will be published in the Federal Register or 
will be otherwise published as provided in department or agency 
procedures.
    (i) Unless otherwise required by law, department or agency heads may 
waive the applicability of some or all of the provisions of this policy 
to specific research activities or classes of research activities 
otherwise covered by this policy. Except when otherwise required by 
statute or Executive Order, the department or agency head shall forward 
advance notices of these actions to the Office for Protection from 
Research

[[Page 124]]

Risks, Department of Health and Human Services (HHS), and shall also 
publish them in the Federal Register or in such other manner as provided 
in department or agency procedures.\1\
---------------------------------------------------------------------------

    \1\ Institutions with HHS-approved assurances on file will abide by 
provisions of title 45 CFR part 46 subparts A-D. Some of the other 
Departments and Agencies have incorporated all provisions of title 45 
CFR part 46 into their policies and procedures as well. However, the 
exemptions at 45 CFR 46.101(b) do not apply to research involving 
prisoners, fetuses, pregnant women, or human in vitro fertilization, 
subparts B and C. The exemption at 45 CFR 46.101(b)(2), for research 
involving survey or interview procedures or observation of public 
behavior, does not apply to research with children, subpart D, except 
for research involving observations of public behavior when the 
investigator(s) do not participate in the activities being observed.

[56 FR 28012, 28018, June 18, 1991; 56 FR 29756, June 28, 1991]



Sec. 1c.102  Definitions.

    (a) Department or agency head means the head of any federal 
department or agency and any other officer or employee of any department 
or agency to whom authority has been delegated.
    (b) Institution means any public or private entity or agency 
(including federal, state, and other agencies).
    (c) Legally authorized representative means an individual or 
judicial or other body authorized under applicable law to consent on 
behalf of a prospective subject to the subject's participation in the 
procedure(s) involved in the research.
    (d) Research means a systematic investigation, including research 
development, testing and evaluation, designed to develop or contribute 
to generalizable knowledge. Activities which meet this definition 
constitute research for purposes of this policy, whether or not they are 
conducted or supported under a program which is considered research for 
other purposes. For example, some demonstration and service programs may 
include research activities.
    (e) Research subject to regulation, and similar terms are intended 
to encompass those research activities for which a federal department or 
agency has specific responsibility for regulating as a research 
activity, (for example, Investigational New Drug requirements 
administered by the Food and Drug Administration). It does not include 
research activities which are incidentally regulated by a federal 
department or agency solely as part of the department's or agency's 
broader responsibility to regulate certain types of activities whether 
research or non-research in nature (for example, Wage and Hour 
requirements administered by the Department of Labor).
    (f) Human subject means a living individual about whom an 
investigator (whether professional or student) conducting research 
obtains:
    (1) Data through intervention or interaction with the individual, or
    (2) Identifiable private information.

Intervention includes both physical procedures by which data are 
gathered (for example, venipuncture) and manipulations of the subject or 
the subject's environment that are performed for research purposes. 
Interaction includes communication or interpersonal contact between 
investigator and subject. ``Private information'' includes information 
about behavior that occurs in a context in which an individual can 
reasonably expect that no observation or recording is taking place, and 
information which has been provided for specific purposes by an 
individual and which the individual can reasonably expect will not be 
made public (for example, a medical record). Private information must be 
individually identifiable (i.e., the identity of the subject is or may 
readily be ascertained by the investigator or associated with the 
information) in order for obtaining the information to constitute 
research involving human subjects.
    (g) IRB means an institutional review board established in accord 
with and for the purposes expressed in this policy.
    (h) IRB approval means the determination of the IRB that the 
research has been reviewed and may be conducted at an institution within 
the constraints set forth by the IRB and by other institutional and 
federal requirements.
    (i) Minimal risk means that the probability and magnitude of harm or 
discomfort anticipated in the research are

[[Page 125]]

not greater in and of themselves than those ordinarily encountered in 
daily life or during the performance of routine physical or 
psychological examinations or tests.
    (j) Certification means the official notification by the institution 
to the supporting department or agency, in accordance with the 
requirements of this policy, that a research project or activity 
involving human subjects has been reviewed and approved by an IRB in 
accordance with an approved assurance.



Sec. 1c.103  Assuring compliance with this policy--research conducted or supported by any Federal Department or Agency.

    (a) Each institution engaged in research which is covered by this 
policy and which is conducted or supported by a federal department or 
agency shall provide written assurance satisfactory to the department or 
agency head that it will comply with the requirements set forth in this 
policy. In lieu of requiring submission of an assurance, individual 
department or agency heads shall accept the existence of a current 
assurance, appropriate for the research in question, on file with the 
Office for Protection from Research Risks, HHS, and approved for 
federalwide use by that office. When the existence of an HHS-approved 
assurance is accepted in lieu of requiring submission of an assurance, 
reports (except certification) required by this policy to be made to 
department and agency heads shall also be made to the Office for 
Protection from Research Risks, HHS.
    (b) Departments and agencies will conduct or support research 
covered by this policy only if the institution has an assurance approved 
as provided in this section, and only if the institution has certified 
to the department or agency head that the research has been reviewed and 
approved by an IRB provided for in the assurance, and will be subject to 
continuing review by the IRB. Assurances applicable to federally 
supported or conducted research shall at a minimum include:
    (1) A statement of principles governing the institution in the 
discharge of its responsibilities for protecting the rights and welfare 
of human subjects of research conducted at or sponsored by the 
institution, regardless of whether the research is subject to federal 
regulation. This may include an appropriate existing code, declaration, 
or statement of ethical principles, or a statement formulated by the 
institution itself. This requirement does not preempt provisions of this 
policy applicable to department- or agency-supported or regulated 
research and need not be applicable to any research exempted or waived 
under Sec. 1c.101 (b) or (i).
    (2) Designation of one or more IRBs established in accordance with 
the requirements of this policy, and for which provisions are made for 
meeting space and sufficient staff to support the IRB's review and 
recordkeeping duties.
    (3) A list of IRB members identified by name; earned degrees; 
representative capacity; indications of experience such as board 
certifications, licenses, etc., sufficient to describe each member's 
chief anticipated contributions to IRB deliberations; and any employment 
or other relationship between each member and the institution; for 
example: full-time employee, part-time employee, member of governing 
panel or board, stockholder, paid or unpaid consultant. Changes in IRB 
membership shall be reported to the department or agency head, unless in 
accord with Sec. 1c.103(a) of this policy, the existence of an HHS-
approved assurance is accepted. In this case, change in IRB membership 
shall be reported to the Office for Protection from Research Risks, HHS.
    (4) Written procedures which the IRB will follow (i) for conducting 
its initial and continuing review of research and for reporting its 
findings and actions to the investigator and the institution; (ii) for 
determining which projects require review more often than annually and 
which projects need verification from sources other than the 
investigators that no material changes have occurred since previous IRB 
review; and (iii) for ensuring prompt reporting to the IRB of proposed 
changes in a research activity, and for ensuring that such changes in 
approved research, during the period for which IRB approval has already 
been given, may not be initiated without IRB review and

[[Page 126]]

approval except when necessary to eliminate apparent immediate hazards 
to the subject.
    (5) Written procedures for ensuring prompt reporting to the IRB, 
appropriate institutional officials, and the department or agency head 
of (i) any unanticipated problems involving risks to subjects or others 
or any serious or continuing noncompliance with this policy or the 
requirements or determinations of the IRB and (ii) any suspension or 
termination of IRB approval.
    (c) The assurance shall be executed by an individual authorized to 
act for the institution and to assume on behalf of the institution the 
obligations imposed by this policy and shall be filed in such form and 
manner as the department or agency head prescribes.
    (d) The department or agency head will evaluate all assurances 
submitted in accordance with this policy through such officers and 
employees of the department or agency and such experts or consultants 
engaged for this purpose as the department or agency head determines to 
be appropriate. The department or agency head's evaluation will take 
into consideration the adequacy of the proposed IRB in light of the 
anticipated scope of the institution's research activities and the types 
of subject populations likely to be involved, the appropriateness of the 
proposed initial and continuing review procedures in light of the 
probable risks, and the size and complexity of the institution.
    (e) On the basis of this evaluation, the department or agency head 
may approve or disapprove the assurance, or enter into negotiations to 
develop an approvable one. The department or agency head may limit the 
period during which any particular approved assurance or class of 
approved assurances shall remain effective or otherwise condition or 
restrict approval.
    (f) Certification is required when the research is supported by a 
federal department or agency and not otherwise exempted or waived under 
Sec. 1c.101 (b) or (i). An institution with an approved assurance shall 
certify that each application or proposal for research covered by the 
assurance and by Sec. 1c.103 of this Policy has been reviewed and 
approved by the IRB. Such certification must be submitted with the 
application or proposal or by such later date as may be prescribed by 
the department or agency to which the application or proposal is 
submitted. Under no condition shall research covered by Sec. 1c.103 of 
the Policy be supported prior to receipt of the certification that the 
research has been reviewed and approved by the IRB. Institutions without 
an approved assurance covering the research shall certify within 30 days 
after receipt of a request for such a certification from the department 
or agency, that the application or proposal has been approved by the 
IRB. If the certification is not submitted within these time limits, the 
application or proposal may be returned to the institution.

(Approved by the Office of Management and Budget under control number 
9999-0020)

[56 FR 28012, 28018, June 18, 1991; 56 FR 29756, June 28, 1991]
Secs. 1c.104--1c.106  [Reserved]



Sec. 1c.107  IRB membership.

    (a) Each IRB shall have at least five members, with varying 
backgrounds to promote complete and adequate review of research 
activities commonly conducted by the institution. The IRB shall be 
sufficiently qualified through the experience and expertise of its 
members, and the diversity of the members, including consideration of 
race, gender, and cultural backgrounds and sensitivity to such issues as 
community attitudes, to promote respect for its advice and counsel in 
safeguarding the rights and welfare of human subjects. In addition to 
possessing the professional competence necessary to review specific 
research activities, the IRB shall be able to ascertain the 
acceptability of proposed research in terms of institutional commitments 
and regulations, applicable law, and standards of professional conduct 
and practice. The IRB shall therefore include persons knowledgeable in 
these areas. If an IRB regularly reviews research that involves a 
vulnerable category of subjects, such as children, prisoners, pregnant 
women, or handicapped or mentally disabled persons, consideration shall 
be given to the inclusion of one or more individuals who

[[Page 127]]

are knowledgeable about and experienced in working with these subjects.
    (b) Every nondiscriminatory effort will be made to ensure that no 
IRB consists entirely of men or entirely of women, including the 
institution's consideration of qualified persons of both sexes, so long 
as no selection is made to the IRB on the basis of gender. No IRB may 
consist entirely of members of one profession.
    (c) Each IRB shall include at least one member whose primary 
concerns are in scientific areas and at least one member whose primary 
concerns are in nonscientific areas.
    (d) Each IRB shall include at least one member who is not otherwise 
affiliated with the institution and who is not part of the immediate 
family of a person who is affiliated with the institution.
    (e) No IRB may have a member participate in the IRB's initial or 
continuing review of any project in which the member has a conflicting 
interest, except to provide information requested by the IRB.
    (f) An IRB may, at its discretion, invite individuals with 
competence in special areas to assist in the review of issues which 
require expertise beyond or in addition to that available on the IRB. 
These individuals may not vote with the IRB.



Sec. 1c.108  IRB functions and operations.

    In order to fulfill the requirements of this policy each IRB shall:
    (a) Follow written procedures in the same detail as described in 
Sec. 1c.103(b)(4) and, to the extent required by, Sec. 1c.103(b)(5).
    (b) Except when an expedited review procedure is used (see 
Sec. 1c.110), review proposed research at convened meetings at which a 
majority of the members of the IRB are present, including at least one 
member whose primary concerns are in nonscientific areas. In order for 
the research to be approved, it shall receive the approval of a majority 
of those members present at the meeting.



Sec. 1c.109  IRB review of research.

    (a) An IRB shall review and have authority to approve, require 
modifications in (to secure approval), or disapprove all research 
activities covered by this policy.
    (b) An IRB shall require that information given to subjects as part 
of informed consent is in accordance with Sec. 1c.116. The IRB may 
require that information, in addition to that specifically mentioned in 
Sec. 1c.116, be given to the subjects when in the IRB's judgment the 
information would meaningfully add to the protection of the rights and 
welfare of subjects.
    (c) An IRB shall require documentation of informed consent or may 
waive documentation in accordance with Sec. 1c.117.
    (d) An IRB shall notify investigators and the institution in writing 
of its decision to approve or disapprove the proposed research activity, 
or of modifications required to secure IRB approval of the research 
activity. If the IRB decides to disapprove a research activity, it shall 
include in its written notification a statement of the reasons for its 
decision and give the investigator an opportunity to respond in person 
or in writing.
    (e) An IRB shall conduct continuing review of research covered by 
this policy at intervals appropriate to the degree of risk, but not less 
than once per year, and shall have authority to observe or have a third 
party observe the consent process and the research.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 1c.110  Expedited review procedures for certain kinds of research involving no more than minimal risk, and for minor changes in approved research.

    (a) The Secretary, HHS, has established, and published as a Notice 
in the Federal Register, a list of categories of research that may be 
reviewed by the IRB through an expedited review procedure. The list will 
be amended, as appropriate after consultation with other departments and 
agencies, through periodic republication by the Secretary, HHS, in the 
Federal Register. A copy of the list is available from the Office for 
Protection from Research Risks, National Institutes of Health, HHS, 
Bethesda, Maryland 20892.

[[Page 128]]

    (b) An IRB may use the expedited review procedure to review either 
or both of the following:
    (1) Some or all of the research appearing on the list and found by 
the reviewer(s) to involve no more than minimal risk,
    (2) Minor changes in previously approved research during the period 
(of one year or less) for which approval is authorized.

Under an expedited review procedure, the review may be carried out by 
the IRB chairperson or by one or more experienced reviewers designated 
by the chairperson from among members of the IRB. In reviewing the 
research, the reviewers may exercise all of the authorities of the IRB 
except that the reviewers may not disapprove the research. A research 
activity may be disapproved only after review in accordance with the 
non-expedited procedure set forth in Sec. 1c.108(b).
    (c) Each IRB which uses an expedited review procedure shall adopt a 
method for keeping all members advised of research proposals which have 
been approved under the procedure.
    (d) The department or agency head may restrict, suspend, terminate, 
or choose not to authorize an institution's or IRB's use of the 
expedited review procedure.



Sec. 1c.111  Criteria for IRB approval of research.

    (a) In order to approve research covered by this policy the IRB 
shall determine that all of the following requirements are satisfied:
    (1) Risks to subjects are minimized: (i) By using procedures which 
are consistent with sound research design and which do not unnecessarily 
expose subjects to risk, and (ii) whenever appropriate, by using 
procedures already being performed on the subjects for diagnostic or 
treatment purposes.
    (2) Risks to subjects are reasonable in relation to anticipated 
benefits, if any, to subjects, and the importance of the knowledge that 
may reasonably be expected to result. In evaluating risks and benefits, 
the IRB should consider only those risks and benefits that may result 
from the research (as distinguished from risks and benefits of therapies 
subjects would receive even if not participating in the research). The 
IRB should not consider possible long-range effects of applying 
knowledge gained in the research (for example, the possible effects of 
the research on public policy) as among those research risks that fall 
within the purview of its responsibility.
    (3) Selection of subjects is equitable. In making this assessment 
the IRB should take into account the purposes of the research and the 
setting in which the research will be conducted and should be 
particularly cognizant of the special problems of research involving 
vulnerable populations, such as children, prisoners, pregnant women, 
mentally disabled persons, or economically or educationally 
disadvantaged persons.
    (4) Informed consent will be sought from each prospective subject or 
the subject's legally authorized representative, in accordance with, and 
to the extent required by Sec. 1c.116.
    (5) Informed consent will be appropriately documented, in accordance 
with, and to the extent required by Sec. 1c.117.
    (6) When appropriate, the research plan makes adequate provision for 
monitoring the data collected to ensure the safety of subjects.
    (7) When appropriate, there are adequate provisions to protect the 
privacy of subjects and to maintain the confidentiality of data.
    (b) When some or all of the subjects are likely to be vulnerable to 
coercion or undue influence, such as children, prisoners, pregnant 
women, mentally disabled persons, or economically or educationally 
disadvantaged persons, additional safeguards have been included in the 
study to protect the rights and welfare of these subjects.



Sec. 1c.112  Review by institution.

    Research covered by this policy that has been approved by an IRB may 
be subject to further appropriate review and approval or disapproval by 
officials of the institution. However, those officials may not approve 
the research if it has not been approved by an IRB.

[[Page 129]]



Sec. 1c.113  Suspension or termination of IRB approval of research.

    An IRB shall have authority to suspend or terminate approval of 
research that is not being conducted in accordance with the IRB's 
requirements or that has been associated with unexpected serious harm to 
subjects. Any suspension or termination of approval shall include a 
statement of the reasons for the IRB's action and shall be reported 
promptly to the investigator, appropriate institutional officials, and 
the department or agency head.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 1c.114  Cooperative research.

    Cooperative research projects are those projects covered by this 
policy which involve more than one institution. In the conduct of 
cooperative research projects, each institution is responsible for 
safeguarding the rights and welfare of human subjects and for complying 
with this policy. With the approval of the department or agency head, an 
institution participating in a cooperative project may enter into a 
joint review arrangement, rely upon the review of another qualified IRB, 
or make similar arrangements for avoiding duplication of effort.



Sec. 1c.115  IRB records.

    (a) An institution, or when appropriate an IRB, shall prepare and 
maintain adequate documentation of IRB activities, including the 
following:
    (1) Copies of all research proposals reviewed, scientific 
evaluations, if any, that accompany the proposals, approved sample 
consent documents, progress reports submitted by investigators, and 
reports of injuries to subjects.
    (2) Minutes of IRB meetings which shall be in sufficient detail to 
show attendance at the meetings; actions taken by the IRB; the vote on 
these actions including the number of members voting for, against, and 
abstaining; the basis for requiring changes in or disapproving research; 
and a written summary of the discussion of controverted issues and their 
resolution.
    (3) Records of continuing review activities.
    (4) Copies of all correspondence between the IRB and the 
investigators.
    (5) A list of IRB members in the same detail as described is 
Sec. 1c.103(b)(3).
    (6) Written procedures for the IRB in the same detail as described 
in Sec. 1c.103(b)(4) and Sec. 1c.103(b)(5).
    (7) Statements of significant new findings provided to subjects, as 
required by Sec. 1c.116(b)(5).
    (b) The records required by this policy shall be retained for at 
least 3 years, and records relating to research which is conducted shall 
be retained for at least 3 years after completion of the research. All 
records shall be accessible for inspection and copying by authorized 
representatives of the department or agency at reasonable times and in a 
reasonable manner.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 1c.116  General requirements for informed consent.

    Except as provided elsewhere in this policy, no investigator may 
involve a human being as a subject in research covered by this policy 
unless the investigator has obtained the legally effective informed 
consent of the subject or the subject's legally authorized 
representative. An investigator shall seek such consent only under 
circumstances that provide the prospective subject or the representative 
sufficient opportunity to consider whether or not to participate and 
that minimize the possibility of coercion or undue influence. The 
information that is given to the subject or the representative shall be 
in language understandable to the subject or the representative. No 
informed consent, whether oral or written, may include any exculpatory 
language through which the subject or the representative is made to 
waive or appear to waive any of the subject's legal rights, or releases 
or appears to release the investigator, the sponsor, the institution or 
its agents from liability for negligence.
    (a) Basic elements of informed consent. Except as provided in 
paragraph (c) or (d) of this section, in seeking informed consent the 
following information shall be provided to each subject:
    (1) A statement that the study involves research, an explanation of 
the

[[Page 130]]

purposes of the research and the expected duration of the subject's 
participation, a description of the procedures to be followed, and 
identification of any procedures which are experimental;
    (2) A description of any reasonably foreseeable risks or discomforts 
to the subject;
    (3) A description of any benefits to the subject or to others which 
may reasonably be expected from the research;
    (4) A disclosure of appropriate alternative procedures or courses of 
treatment, if any, that might be advantageous to the subject;
    (5) A statement describing the extent, if any, to which 
confidentiality of records identifying the subject will be maintained;
    (6) For research involving more than minimal risk, an explanation as 
to whether any compensation and an explanation as to whether any medical 
treatments are available if injury occurs and, if so, what they consist 
of, or where further information may be obtained;
    (7) An explanation of whom to contact for answers to pertinent 
questions about the research and research subjects' rights, and whom to 
contact in the event of a research-related injury to the subject; and
    (8) A statement that participation is voluntary, refusal to 
participate will involve no penalty or loss of benefits to which the 
subject is otherwise entitled, and the subject may discontinue 
participation at any time without penalty or loss of benefits to which 
the subject is otherwise entitled.
    (b) Additional elements of informed consent. When appropriate, one 
or more of the following elements of information shall also be provided 
to each subject:
    (1) A statement that the particular treatment or procedure may 
involve risks to the subject (or to the embryo or fetus, if the subject 
is or may become pregnant) which are currently unforeseeable;
    (2) Anticipated circumstances under which the subject's 
participation may be terminated by the investigator without regard to 
the subject's consent;
    (3) Any additional costs to the subject that may result from 
participation in the research;
    (4) The consequences of a subject's decision to withdraw from the 
research and procedures for orderly termination of participation by the 
subject;
    (5) A statement that significant new findings developed during the 
course of the research which may relate to the subject's willingness to 
continue participation will be provided to the subject; and
    (6) The approximate number of subjects involved in the study.
    (c) An IRB may approve a consent procedure which does not include, 
or which alters, some or all of the elements of informed consent set 
forth above, or waive the requirement to obtain informed consent 
provided the IRB finds and documents that:
    (1) The research or demonstration project is to be conducted by or 
subject to the approval of state or local government officials and is 
designed to study, evaluate, or otherwise examine: (i) Public benefit of 
service programs; (ii) procedures for obtaining benefits or services 
under those programs; (iii) possible changes in or alternatives to those 
programs or procedures; or (iv) possible changes in methods or levels of 
payment for benefits or services under those programs; and
    (2) The research could not practicably be carried out without the 
waiver or alteration.
    (d) An IRB may approve a consent procedure which does not include, 
or which alters, some or all of the elements of informed consent set 
forth in this section, or waive the requirements to obtain informed 
consent provided the IRB finds and documents that:
    (1) The research involves no more than minimal risk to the subjects;
    (2) The waiver or alteration will not adversely affect the rights 
and welfare of the subjects;
    (3) The research could not practicably be carried out without the 
waiver or alteration; and
    (4) Whenever appropriate, the subjects will be provided with 
additional pertinent information after participation.
    (e) The informed consent requirements in this policy are not 
intended

[[Page 131]]

to preempt any applicable federal, state, or local laws which require 
additional information to be disclosed in order for informed consent to 
be legally effective.
    (f) Nothing in this policy is intended to limit the authority of a 
physician to provide emergency medical care, to the extent the physician 
is permitted to do so under applicable federal, state, or local law.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 1c.117  Documentation of informed consent.

    (a) Except as provided in paragraph (c) of this section, informed 
consent shall be documented by the use of a written consent form 
approved by the IRB and signed by the subject or the subject's legally 
authorized representative. A copy shall be given to the person signing 
the form.
    (b) Except as provided in paragraph (c) of this section, the consent 
form may be either of the following:
    (1) A written consent document that embodies the elements of 
informed consent required by Sec. 1c.116. This form may be read to the 
subject or the subject's legally authorized representative, but in any 
event, the investigator shall give either the subject or the 
representative adequate opportunity to read it before it is signed; or
    (2) A short form written consent document stating that the elements 
of informed consent required by Sec. 1c.116 have been presented orally 
to the subject or the subject's legally authorized representative. When 
this method is used, there shall be a witness to the oral presentation. 
Also, the IRB shall approve a written summary of what is to be said to 
the subject or the representative. Only the short form itself is to be 
signed by the subject or the representative. However, the witness shall 
sign both the short form and a copy of the summary, and the person 
actually obtaining consent shall sign a copy of the summary. A copy of 
the summary shall be given to the subject or the representative, in 
addition to a copy of the short form.
    (c) An IRB may waive the requirement for the investigator to obtain 
a signed consent form for some or all subjects if it finds either:
    (1) That the only record linking the subject and the research would 
be the consent document and the principal risk would be potential harm 
resulting from a breach of confidentiality. Each subject will be asked 
whether the subject wants documentation linking the subject with the 
research, and the subject's wishes will govern; or
    (2) That the research presents no more than minimal risk of harm to 
subjects and involves no procedures for which written consent is 
normally required outside of the research context.
    In cases in which the documentation requirement is waived, the IRB 
may require the investigator to provide subjects with a written 
statement regarding the research.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 1c.118  Applications and proposals lacking definite plans for involvement of human subjects.

    Certain types of applications for grants, cooperative agreements, or 
contracts are submitted to departments or agencies with the knowledge 
that subjects may be involved within the period of support, but definite 
plans would not normally be set forth in the application or proposal. 
These include activities such as institutional type grants when 
selection of specific projects is the institution's responsibility; 
research training grants in which the activities involving subjects 
remain to be selected; and projects in which human subjects' involvement 
will depend upon completion of instruments, prior animal studies, or 
purification of compounds. These applications need not be reviewed by an 
IRB before an award may be made. However, except for research exempted 
or waived under Sec. 1c.101 (b) or (i), no human subjects may be 
involved in any project supported by these awards until the project has 
been reviewed and approved by the IRB, as provided in this policy, and 
certification submitted, by the institution, to the department or 
agency.

[[Page 132]]



Sec. 1c.119  Research undertaken without the intention of involving human subjects.

    In the event research is undertaken without the intention of 
involving human subjects, but it is later proposed to involve human 
subjects in the research, the research shall first be reviewed and 
approved by an IRB, as provided in this policy, a certification 
submitted, by the institution, to the department or agency, and final 
approval given to the proposed change by the department or agency.



Sec. 1c.120  Evaluation and disposition of applications and proposals for research to be conducted or supported by a Federal Department or Agency.

    (a) The department or agency head will evaluate all applications and 
proposals involving human subjects submitted to the department or agency 
through such officers and employees of the department or agency and such 
experts and consultants as the department or agency head determines to 
be appropriate. This evaluation will take into consideration the risks 
to the subjects, the adequacy of protection against these risks, the 
potential benefits of the research to the subjects and others, and the 
importance of the knowledge gained or to be gained.
    (b) On the basis of this evaluation, the department or agency head 
may approve or disapprove the application or proposal, or enter into 
negotiations to develop an approvable one.
Sec. 1c.121  [Reserved]



Sec. 1c.122  Use of Federal funds.

    Federal funds administered by a department or agency may not be 
expended for research involving human subjects unless the requirements 
of this policy have been satisfied.



Sec. 1c.123  Early termination of research support: Evaluation of applications and proposals.

    (a) The department or agency head may require that department or 
agency support for any project be terminated or suspended in the manner 
prescribed in applicable program requirements, when the department or 
agency head finds an institution has materially failed to comply with 
the terms of this policy.
    (b) In making decisions about supporting or approving applications 
or proposals covered by this policy the department or agency head may 
take into account, in addition to all other eligibility requirements and 
program criteria, factors such as whether the applicant has been subject 
to a termination or suspension under paragarph (a) of this section and 
whether the applicant or the person or persons who would direct or has 
have directed the scientific and technical aspects of an activity has 
have, in the judgment of the department or agency head, materially 
failed to discharge responsibility for the protection of the rights and 
welfare of human subjects (whether or not the research was subject to 
federal regulation).



Sec. 1c.124  Conditions.

    With respect to any research project or any class of research 
projects the department or agency head may impose additional conditions 
prior to or at the time of approval when in the judgment of the 
department or agency head additional conditions are necessary for the 
protection of human subjects.



PART 2--DELEGATIONS OF AUTHORITY BY THE SECRETARY OF AGRICULTURE AND GENERAL OFFICERS OF THE DEPARTMENT--Table of Contents




                           Subpart A--General

Sec.
2.1  Establishment of the Department.
2.2  Authority of the Secretary to prescribe regulations.
2.3  Authority of the Secretary to delegate authority.
2.4  General officers.
2.5  Order in which officers of the Department shall act as Secretary.

    Subpart B--General Delegations of Authority by the Secretary of 
                               Agriculture

2.7  Authority to supervise and direct.
2.8  Delegations of authority to agency heads to order that the United 
          States flag be flown at half-staff.
2.9  Additional delegations.
2.10  Limitations.
2.11  New principles and periodic reviews.

[[Page 133]]

2.12  Secretary and general officers not precluded from exercising 
          delegated powers.
2.13  Status of prior delegations.

 Subpart C--Delegations of Authority to the Deputy Secretary, the Under 
                  Secretaries and Assistant Secretaries

2.15  Deputy Secretary.
2.16  Under Secretary for Farm and Foreign Agricultural Services.
2.17  Under Secretary for Rural Economic and Community Development.
2.18  Under Secretary for Food Safety.
2.19  Under Secretary for Food, Nutrition, and Consumer Services.
2.20  Under Secretary for Natural Resources and Environment.
2.21  Under Secretary for Research, Education, and Economics.
2.22  Assistant Secretary for Marketing and Regulatory Programs.
2.23  Assistant Secretary for Congressional Relations.
2.24  Assistant Secretary for Administration.

Subpart D--Delegations of Authority to Other General Officers and Agency 
                                  Heads

2.26  Director, Office of the Executive Secretariat.
2.27  Office of Administrative Law Judges.
2.28  Chief Financial Officer.
2.29  Chief Economist.
2.30  Director, Office of Budget and Program Analysis.
2.31  General Counsel.
2.32  Alternative Agricultural Research and Commercialization Board.
2.33  Inspector General.
2.34  Director, National Appeals Division.
2.35  Judicial Officer.
2.36  Director, Office of Communications.

       Subpart E--Delegations of Authority by the Deputy Secretary

2.37  Director, Office of Small and Disadvantaged Business Utilization.

Subpart F--Delegations of Authority by the Under Secretary for Farm and 
                      Foreign Agricultural Services

2.40  Deputy Under Secretary for Farm and Foreign Agricultural Services.
2.42  Administrator, Farm Service Agency.
2.43  Administrator, Foreign Agricultural Service.

  Subpart G--Delegations of Authority by the Under Secretary for Rural 
                   Economic and Community Development

2.45  Deputy Under Secretary for Rural Economic and Community 
          Development.
2.47  Administrator, Rural Utilities Service.
2.48  Administrator, Rural Business-Cooperative Service.
2.49  Administrator, Rural Housing Service.

  Subpart H--Delegations of Authority by the Under Secretary for Food 
                                 Safety

2.51  Deputy Under Secretary for Food Safety.
2.53  Administrator, Food Safety and Inspection Service.

  Subpart I--Delegations of Authority by the Under Secretary for Food, 
                    Nutrition, and Consumer Services

2.55  Deputy Under Secretary for Food, Nutrition, and Consumer Services.
2.57  Administrator, Food and Consumer Service.

 Subpart J--Delegations of Authority by the Under Secretary for Natural 
                       Resources  and Environment

2.59  Deputy Under Secretaries for Natural Resources and Environment.
2.60  Chief, Forest Service.
2.61  Chief, Natural Resources Conservation Service.

Subpart K--Delegations of Authority by the Under Secretary for Research, 
                        Education, and Economics

2.63  Deputy Under Secretary for Research, Education, and Economics.
2.65  Administrator, Agricultural Research Service.
2.66  Administrator, Cooperative State Research, Education, and 
          Extension Service.
2.67  Administrator, Economic Research Service.
2.68  Administrator, National Agricultural Statistics Service.

       Subpart L--Delegations of Authority by the Chief Economist

2.70  Deputy Chief Economist.
2.71  Director, Office of Risk Assessment and Cost-Benefit Analysis.
2.72  Chairman, World Agricultural Outlook Board.

   Subpart M--Delegations of Authority by the Chief Financial Officer

2.75  Deputy Chief Financial Officer.

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   Subpart N--Delegations of Authority by the Assistant Secretary for 
                    Marketing and Regulatory Programs

2.77  Deputy Assistant Secretary for Marketing and Regulatory Programs.
2.79   Administrator, Agricultural Marketing Service.
2.80  Administrator, Animal and Plant Health Inspection Service.
2.81  Administrator, Grain Inspection, Packers and Stockyards 
          Administration.

   Subpart O--Delegations of Authority by the Assistant Secretary for 
                         Congressional Relations

2.83  Deputy Assistant Secretary for Congressional Relations.
2.85  Director, Office of Congressional and Intergovernmental Relations.

   Subpart P--Delegations of Authority by the Assistant Secretary for 
                             Administration

2.87  Deputy Assistant Secretary for Administration.
2.89  Director, Office of Civil Rights Enforcement.
2.90  Director, Office of Information Resources Management.
2.91  Director, Office of Operations.
2.92  Director, Office of Personnel.

    Authority: Sec. 212(a), Pub. L. 103-354, 108 Stat. 3210, 7 U.S.C. 
6912(a)(1); 5 U.S.C. 301; Reorganization Plan No. 2 of 1953; 3 CFR 1949-
1953 Comp., p. 1024.

    Source: 60 FR 56393, Nov. 8, 1995, unless otherwise noted.



                           Subpart A--General



Sec. 2.1  Establishment of the Department.

    The Department of Agriculture was created by the Act of May 15, 
1862, and by the Act of February 9, 1889, it was made an executive 
department in the Federal Government under the supervision and control 
of the Secretary of Agriculture (7 U.S.C. 2201, 2202, 2204).



Sec. 2.2  Authority of the Secretary to prescribe regulations.

    The general authority of the Secretary to prescribe regulations 
governing the work of the Department is based on 5 U.S.C. 301 which 
provides that the head of an Executive department may prescribe 
regulations for the government of his department, the conduct of its 
employees, the distribution and performance of its business, and the 
custody, use and preservation of its records, papers, and property.



Sec. 2.3  Authority of the Secretary to delegate authority.

    (a) The general authority of the Secretary to make delegations of 
his authority is based on:
    (1) Section 4(a) of Reorganization Plan No. 2 of 1953 (5 U.S.C. 
App.), which provides that the Secretary of Agriculture may from time to 
time make such provisions as he shall deem appropriate authorizing the 
performance by any other officer, or by an agency or employee, of the 
Department of Agriculture of any function of the Secretary, including 
any function transferred to the Secretary by the provisions of this 
reorganization plan; and
    (2) Section 212(a)(1) of the Department of Agriculture 
Reorganization Act of 1994, Pub. L. No. 103-354, 7 U.S.C. 6912(a)(1), 
which provides that the Secretary may delegate to any agency, office, 
officer, or employee of the Department the authority to perform any 
function transferred to the Secretary under 7 U.S.C. 6912(a) or any 
other function vested in the Secretary as of the date of the enactment 
of the Act.
    (b) [Reserved]



Sec. 2.4  General officers.

    The work of the Department is under the supervision and control of 
the Secretary who is assisted by the following general officers: the 
Deputy Secretary; the Under Secretary for Farm and Foreign Agricultural 
Services; the Under Secretary for Rural Economic and Community 
Development; the Under Secretary for Food Safety; the Under Secretary 
for Food, Nutrition, and Consumer Services; the Under Secretary for 
Natural Resources and Environment; the Under Secretary for Research, 
Education, and Economics; the Assistant Secretary for Marketing and 
Regulatory Programs; the Assistant Secretary for Congressional 
Relations; the Assistant Secretary for Administration; the General 
Counsel; the Inspector General; the Chief Financial Officer; the 
Judicial Officer; the Director, Office of Budget and Program Analysis; 
the Chief Economist; the Director, National Appeals Division; the 
Director of Communications; and the

[[Page 135]]

Director, Office of Small and Disadvantaged Business Utilization.



Sec. 2.5  Order in which officers of the Department shall act as Secretary.

    (a) Pursuant to Executive Order 11957, 3 CFR, 1977 Comp., p. 79, in 
the case of the absence, sickness, resignation, or death of both the 
Secretary and the Deputy Secretary, the officials designated in 
paragraphs (a)(1) through (a)(10) of this section shall act as Secretary 
in the order in which they are listed. Each official shall act only in 
the absence, sickness, resignation, or death of the immediately 
preceding official:
    (1) The Under Secretary for Farm and Foreign Agricultural Services.
    (2) The Under Secretary for Rural Economic and Community 
Development.
    (3) The Under Secretary for Food Safety.
    (4) The Under Secretary for Food, Nutrition, and Consumer Services.
    (5) The Under Secretary for Natural Resources and Environment.
    (6) The Under Secretary for Research, Education, and Economics.
    (7) The General Counsel.
    (8) The Assistant Secretary for Marketing and Regulatory Programs.
    (9) The Assistant Secretary for Administration.
    (10) The Assistant Secretary for Congressional Relations.
    (b) [Reserved]



    Subpart B--General Delegations of Authority by the Secretary of 
                               Agriculture



Sec. 2.7  Authority to supervise and direct.

    Unless specifically reserved, or otherwise delegated, the 
delegations of authority to each general officer of the Department and 
each agency head contained in this part includes the authority to direct 
and supervise the employees engaged in the conduct of activities under 
such official's jurisdiction, and the authority to take any action, 
execute any document, authorize any expenditure, promulgate any rule, 
regulation, order, or instruction required by or authorized by law and 
deemed by the general officer or agency head to be necessary and proper 
to the discharge of his or her responsibilities. This authority will be 
exercised subject to applicable administrative directives. Unless 
otherwise provided, a general officer or agency head may, subject to his 
or her continuing responsibility for the proper discharge of delegations 
made to him, in this part, delegate and provide for the redelegation of 
his or her authority to appropriate officers and employees. Subject to 
the general supervision of the Secretary, agency heads who are delegated 
authority from a general officer, in this part, report to and are under 
the supervision of that general officer.



Sec. 2.8  Delegations of authority to agency heads to order that the United States flag be flown at half-staff.

    Pursuant to section 5 of Proclamation 3044, 3 CFR, 1954-1958 Comp., 
p. 4, each general officer and agency head is delegated authority to 
order that the United States flag shall be flown at half-staff on 
buildings and grounds under his or her jurisdiction or control. This 
authority shall be exercised in accordance with directives promulgated 
by the Director, Office of Operations.



Sec. 2.9  Additional delegations.

    The authority granted to a general officer may be exercised in the 
discharge of any additional functions which the Secretary may assign.



Sec. 2.10  Limitations.

    The delegations made in this part shall not be construed to confer 
upon any general officer or agency head the authority of the Secretary 
to prescribe regulations which by law require approval of the President.



Sec. 2.11  New principles and periodic reviews.

    In the exercise of authority delegated by the Secretary, the 
application of new principles of major importance or a departure from 
principles established by the Secretary should be brought to the 
attention of the Secretary. General officers are responsible for 
assuring that periodic reviews are conducted of the activities of the 
agencies assigned to their direction and supervision, as required by 5 
U.S.C. 305.

[[Page 136]]



Sec. 2.12  Secretary and general officers not precluded from exercising delegated powers.

    No delegation of authority by the Secretary or a general officer 
contained in this part shall preclude the Secretary or general officer 
from exercising any of the authority so delegated.



Sec. 2.13  Status of prior delegations.

    Nothing in this part shall affect the bylaws of the Commodity Credit 
Corporation, the Federal Crop Insurance Corporation, or the Rural 
Telephone Bank. All delegations previously made which are inconsistent 
with delegations made in this part are superseded; however, any 
regulation, order, authorization, expenditure, or other instrument, 
heretofore issued or made pursuant to any delegation of authority shall 
continue in full force and effect unless and until withdrawn or 
superseded pursuant to authority granted in this part.



 Subpart C--Delegations of Authority to the Deputy Secretary, the Under 
                  Secretaries and Assistant Secretaries

    Editorial Note: Nomenclature changes to subpart C appear at 60 FR 
66713, Dec. 26, 1995.



Sec. 2.15  Deputy Secretary.

    The following delegation of authority is made by the Secretary of 
Agriculture to the Deputy Secretary: Perform all of the duties and 
exercise all of the powers and functions which are now or which may 
hereafter be, vested in the Secretary of Agriculture. This delegation is 
subject to the limitation in Sec. 2.10.



Sec. 2.16  Under Secretary for Farm and Foreign Agricultural Services.

    (a) The following delegations of authority are made by the Secretary 
of Agriculture to the Under Secretary for Farm and Foreign Agricultural 
Services:
    (1) Related to consolidated farm service.
    (i) Formulate policies and administer programs authorized by the 
Agricultural Adjustment Act of 1938, as amended (7 U.S.C. 1282 et seq.).
    (ii) Formulate policies and administer programs authorized by the 
Agricultural Act of 1949, as amended (7 U.S.C. 1441 et seq.).
    (iii) Coordinate and prevent duplication of aerial photographic work 
of the Department, including:
    (A) Clearing photography projects;
    (B) Assigning symbols for new aerial photography, maintaining symbol 
records, and furnishing symbol books;
    (C) Recording departmental aerial photography flow and coordinating 
the issuance of aerial photography status maps of latest coverage;
    (D) Promoting interchange of technical information and techniques to 
develop lower costs and better quality;
    (E) Representing the Department on committees, task forces, work 
groups, and other similar groups concerned with aerial photography 
acquisition and reproduction, and serving as liaison with other 
governmental agencies on aerial photography but excluding mapping;
    (F) Providing a Chairperson for the Photography Sales Committee of 
the Department;
    (G) Coordinating development, preparation, and issuance of 
specifications for aerial photography for the Department;
    (H) Coordinating and performing procurement, inspection, and 
application of specifications for USDA aerial photography;
    (I) Providing for liaison with EROS Data Center to support USDA 
programs and research with satellite imagery reproductions; and
    (J) Maintaining library and files of USDA aerial film and retrieving 
and supplying reproductions on request.
    (iv) Administer the Agricultural Conservation Program under title X 
of the Agricultural Act of 1970, as amended (16 U.S.C. 1501 et seq.), 
and under the Soil Conservation and Domestic Allotment Act, as amended 
(16 U.S.C. 590g et seq.).
    (v) Administer the Emergency Conservation Program under the 
Agricultural Credit Act of 1978, as amended (16 U.S.C. 2201 et seq.).
    (vi) Conduct fiscal, accounting and claims functions relating to 
Commodity Credit Corporation (CCC) programs for which the Under 
Secretary for

[[Page 137]]

Farm and Foreign Agricultural Services has been delegated authority 
under paragraph (a)(3) of this section and, in conjunction with other 
agencies of the U.S. Government, develop and formulate agreements to 
reschedule amounts due from foreign countries.
    (vii) Conduct assigned activities under the Strategic and Critical 
Materials Stockpiling Act, as amended (50 U.S.C. 98 et seq.).
    (viii) Supervise and direct Farm Service Agency State and county 
offices and delegate functions to be performed by Farm Service Agency 
State and county committees.
    (ix) Administer the dairy indemnity program under the Act of August 
13, 1968, as amended (7 U.S.C. 450j et seq.).
    (x) Administer procurement, processing, handling, distribution, 
disposition, transportation, payment, and related services with respect 
to surplus removal and supply operations which are carried out under 
section 210 of the Agricultural Act of 1956 (7 U.S.C. 1859), the Act of 
August 19, 1958, as amended (7 U.S.C. 1431 note), and section 709 of the 
Food and Agricultural Act of 1965, as amended (7 U.S.C. 1446a-1), except 
as delegated in paragraph (a)(3) of this section and to the Under 
Secretary for Food, Nutrition, and Consumer Services in Sec. 2.19, and 
assist the Under Secretary for Food, Nutrition, and Consumer Services 
and the Assistant Secretary for Marketing and Regulatory Programs in the 
procurement, handling, payment, and related services under section 32 of 
the Act of August 24, 1935, as amended (7 U.S.C. 612c), the Act of June 
28, 1937, as amended (7 U.S.C. 713c), the National School Lunch Act, as 
amended (42 U.S.C. 1751, et seq.), section 8 of the Child Nutrition Act 
of 1966, as amended (42 U.S.C. 1777), section 311 of the Older Americans 
Act of 1965, as amended (42 U.S.C. 3030a), section 4(a) of the 
Agriculture and Consumer Protection Act of 1973, as amended (7 U.S.C. 
612c note), and section 1114 of the Agriculture and Food Act of 1981 (7 
U.S.C. 1431e).
    (xi) [Reserved]
    (xii) Administer the Agricultural Foreign Investment Disclosure Act 
of 1978 (7 U.S.C. 3501 et seq.), except those functions delegated in 
Sec. 2.21(a)(8)(xi).
    (xiii) Administer energy management activities as assigned.
    (xiv) Conduct producer referenda of commodity promotion programs 
under the Beef Research and Information Act, as amended (7 U.S.C. 2901 
et seq.), and the Agricultural Promotion Programs Act of 1990, as 
amended (7 U.S.C. 6001 et seq.).
    (xv) Conduct field operations of diversion programs for fresh fruits 
and vegetables under section 32 of the Act of August 29, 1935.
    (xvi) Administer the U.S. Warehouse Act, as amended (7 U.S.C. 241-
273), and perform compliance examinations for Farm Service Agency 
programs.
    (xvii) Administer the provisions of the Soil Conservation and 
Domestic Allotment Act relating to assignment of payments (16 U.S.C. 
590h(g)).
    (xviii) Formulate and carry out the Conservation Reserve Program 
under the Food Security Act of 1985, as amended (16 U.S.C. 1231 et 
seq.).
    (xix) Carry out functions relating to highly erodible land and 
wetland conservation under sections 1211-1213 and 1221-1223 of the Food 
Security Act of 1985, as amended (16 U.S.C. 3811-3813 and 3821-3823).
    (xx) Administer the Integrated Farm Management Program under the 
Food, Agriculture, Conservation, and Trade Act of 1990, as amended (7 
U.S.C. 5822).
    (xxi) Administer the provisions of section 326 of the Food and 
Agricultural Act of 1962, as amended (7 U.S.C. 1339c), as they relate to 
any Farm Service Agency administered program.
    (xxii) Conduct an Options Pilot Program pursuant to sections 1151-
1156 of the Food, Agriculture, Conservation, and Trade Act of 1990, as 
amended (7 U.S.C. 1421 note).
    (xxiii) Formulate and administer regulations regarding program 
ineligibility resulting from convictions under Federal or State law of 
planting, cultivating, growing, producing, harvesting, or storing a 
controlled substance, as required under section 1764 of the Food 
Security Act of 1985 (21 U.S.C. 881a).
    (xxiv) Formulate policies and administer programs authorized by 
Title I of the Federal Agriculture Improvement and Reform Act of 1996.

[[Page 138]]

    (2) Related to farm credit. (i) Administer the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1921 et seq.), except for the authority 
contained in the following sections:
    (A) The authority in section 304(b) (7 U.S.C. 1924(b)), relating to 
small business enterprise loans;
    (B) Section 306 (7 U.S.C. 1926), relating to all programs in that 
section;
    (C) Section 306A (7 U.S.C. 1926a) and section 306B (7 U.S.C. 1926b), 
relating to the emergency community water assistance grant programs;
    (D) Section 306C (7 U.S.C. 1926c) to administer the water and waste 
facility loans and grants to alleviate health risks;
    (E) Sections 309 (7 U.S.C. 1929) and 309A (7 U.S.C. 1929a), 
regarding assets and programs related to rural development;
    (F) Section 310A (7 U.S.C. 1931), relating to watershed and resource 
conservation and development loans;
    (G) Section 310B (7 U.S.C. 1932), regarding rural industrialization 
assistance;
    (H) Section 312(b) (7 U.S.C. 1942(b)), relating to small business 
enterprises;
    (I) Section 342 (7 U.S.C. 1013a);
    (J) Section 364 (7 U.S.C. 2006f), section 365 (7 U.S.C. 2008), 
section 366 (7 U.S.C. 2008a), section 367 (7 U.S.C. 2008b), and section 
368 (7 U.S.C. 2008c), regarding assets and programs related to rural 
development; and
    (K) Administrative provisions of subtitle D of the Consolidated Farm 
and Rural Development Act related to Rural Utilities Service, Rural 
Business-Cooperative Service, and Rural Housing Service activities.
    (ii) Collect, service, and liquidate loans made or insured by the 
Farm Service Agency, or its predecessor agencies.
    (iii) Administer the Rural Rehabilitation Corporation Trust 
Liquidation Act (40 U.S.C. 440 et seq.), and trust, liquidation, and 
other agreements entered into pursuant thereto.
    (iv) Make grants and enter into contracts and other agreements to 
provide outreach and technical assistance to socially disadvantaged 
farmers and ranchers under 7 U.S.C. 2279.
    (v) Administer Farmers Home Administration or any successor agency 
assets conveyed in trust under the Participation Sales Act of 1966 (12 
U.S.C. 1717).
    (vi) Administer the Emergency Loan and Guarantee Programs under 
sections 232, 234, 237, and 253 of the Disaster Relief Act of 1970 (Pub. 
L. No. 91-606), the Disaster Relief Act of 1969 (Pub. L. No. 91-79), 
Pub. L. No. 92-385, approved August 16, 1972, and the Emergency 
Livestock Credit Act of 1974 (Pub. L. No. 93-357), as amended.
    (vii) Administer loans to homestead or desertland entrymen and 
purchasers of land in reclamation projects or to an entryman under the 
desertland law (7 U.S.C. 1006a and 1006b).
    (viii) Administer the Federal Claims Collection Act of 1966, as 
amended (31 U.S.C. 3711 et seq.), and joint regulations issued pursuant 
thereto by the Attorney General and the Comptroller General (4 CFR 
chapter II), with respect to claims of the Farm Service Agency.
    (ix) Service, collect, settle, and liquidate:
    (A) Deferred land purchase obligations of individuals under the 
Wheeler-Case Act of August 11, 1939, as amended (16 U.S.C. 590y), and 
under the item, ``Water Conservation and Utilization projects'' in the 
Department of the Interior Appropriation Act, 1940 (53 Stat. 719), as 
amended;
    (B) Puerto Rican Hurricane Relief loans under the Act of July 11, 
1956 (70 Stat. 525); and
    (C) Loans made in conformance with section 4 of the Southeast 
Hurricane Disaster Relief Act of 1965 (79 Stat. 1301).
    (x) Administer loans to Indian tribes and tribal corporations (25 
U.S.C. 488-492).
    (xi) Administer the State Agricultural Loan Mediation Program under 
title 5 of the Agricultural Credit Act of 1987 (7 U.S.C. 5101 et seq.)
    (xii) Administer financial assistance programs relating to Economic 
Opportunity Loans to Cooperatives under part A of title III and part D 
of title I and the necessarily related functions in title VI of the 
Economic Opportunity Act of 1964, as amended (42 U.S.C. 2763-2768, 2841-
2855, 2942, 2943(b), 2961), delegated by the Director of the Office of

[[Page 139]]

Economic Opportunity to the Secretary of Agriculture by documents dated 
October 23, 1964 (29 FR 14764), and June 17, 1968 (33 FR 9850), 
respectively.
    (xiii) Exercise all authority and discretion vested in the Secretary 
by section 331(c) of the Consolidated Farm and Rural Development Act, as 
amended by section 2 of the Farmers Home Administration Improvement Act 
of 1994, Pub. L. 103-248 (7 U.S.C. 1981(c)), including the following:
    (A) Determine, with the concurrence of the General Counsel, which 
actions are to be referred to the Department of Justice for the conduct 
of litigation, and refer such actions to the Department of Justice 
through the General Counsel;
    (B) Determine, with the concurrence of the General Counsel, which 
actions are to be referred to the General Counsel, for the conduct of 
litigation and refer such actions; and
    (C) Enter into contracts with private sector attorneys for the 
conduct of litigation, with the concurrence of the General Counsel, 
after determining that the attorneys will provide competent and cost 
effective representation for the Farm Service Agency.
    (3) Related to foreign agriculture. (i) Coordinate the carrying out 
by Department agencies of their functions involving foreign agricultural 
policies and programs and their operations and activities in foreign 
areas. Act as liaison on these matters and functions relating to foreign 
agriculture between the Department of Agriculture and the Department of 
State, the United States Trade Representative, the Trade Policy 
Committee, the Agency for International Development, and other 
departments, agencies, and committees of the U.S. Government, foreign 
governments, the Organization for Economic Cooperation and Development, 
the European Union, the Food and Agriculture Organization of the United 
Nations, the International Bank for Reconstruction and Development, the 
Inter-American Development Bank, the Organization of American States, 
and other public and private U.S. and international organizations, and 
the contracting parties to the General Agreement on Tariffs and Trade 
(GATT) and the World Trade Organization (WTO).
    (ii) Administer Departmental programs concerned with development of 
foreign markets for agricultural products of the United States except 
functions relating to export marketing operations under section 32 of 
the Act of August 23, 1935, as amended (7 U.S.C. 612c), delegated to the 
Assistant Secretary for Marketing and Regulatory Programs, and 
utilization research delegated to the Under Secretary for Research, 
Education, and Economics.
    (iii) Conduct studies of worldwide production, trade, marketing, 
prices, consumption, and other factors affecting exports and imports of 
U.S. agricultural commodities; obtain information on methods used by 
other countries to move farm commodities in world trade on a competitive 
basis for use in the development of programs of this Department; provide 
information to domestic producers, the agricultural trade, the public 
and other interests; and promote normal commercial markets abroad. This 
delegation excludes basic and long-range analyses of world conditions 
and developments affecting supply, demand, and trade in farm products 
and general economic analyses of the international financial and 
monetary aspects of agricultural affairs as assigned to the Under 
Secretary for Research, Education, and Economics.
    (iv) Conduct functions of the Department relating to GATT, WTO, the 
Trade Expansion Act of 1962 (19 U.S.C. 1801 et seq.), the Trade Act of 
1974 (19 U.S.C. 2101 et seq.), the Trade Agreements Act of 1979 (19 
U.S.C. 2501 et seq.), the Omnibus Trade and Competition Act of 1988 (19 
U.S.C. 2901 et seq.), the provisions of subtitle B of title III of the 
North American Free Trade Agreement Implementation Act, and other 
legislation affecting international agricultural trade including the 
programs designed to reduce foreign tariffs and other trade barriers.
    (v) Maintain a worldwide agricultural intelligence and reporting 
system, including provision for foreign agricultural representation 
abroad to protect and promote U.S. agricultural interests, and to 
acquire information on demand, competition, marketing, and

[[Page 140]]

distribution of U.S. agricultural commodities abroad pursuant to title 
VI of the Agricultural Act of 1954, as amended (7 U.S.C. 1761-1768).
    (vi) Conduct Department activities to carry out the provisions of 
the International Coffee Agreement Act of 1968 (19 U.S.C. 1356f).
    (vii) Administer functions of the Department relating to import 
controls, except those functions reserved to the Secretary in paragraph 
(b) of this section and those relating to section 8e of the Agricultural 
Act of 1938 (7 U.S.C. 608e-1), as assigned to the Assistant Secretary 
for Marketing and Regulatory Programs. These include:
    (A) Functions under section 22 of the Agricultural Adjustment Act of 
1933, as amended (7 U.S.C. 624);
    (B) General note 15(c) to the Harmonized Tariff Schedule of the 
United States (19 U.S.C. 1202);
    (C) Requests for emergency relief from duty-free imports of 
perishable products filed with the Department of Agriculture under 
section 213(f) of the Caribbean Basin Recovery Act of 1983 (19 U.S.C. 
2703(f));
    (D) Section 404 of the Trade and Tariff Act of 1984 (19 U.S.C. 2112 
note);
    (E) Section 204(e) of the Andean Trade Preference Act (19 U.S.C. 
3203(e));
    (F) Functions under sections 309 and 316 of the North American Free 
Trade Agreement Implementation Act (19 U.S.C. 3358 and 3381);
    (G) Section 301(a) of the United States-Canada Free Trade Agreement 
Implementation Act (19 U.S.C. 2112 note); and
    (H) Section 204 of the Agricultural Act of 1956, as amended (7 
U.S.C. 1854).
    (viii) Represent the Department on the Interdepartmental Committee 
for Export Control and to conduct departmental activities to carry out 
the provisions of the Export Administration Act of 1969, as amended (50 
U.S.C. App. 2401 et seq.), except as reserved to the Secretary under 
paragraph (b)(2) of this section.
    (ix) Exercise the Department's responsibilities in connection with 
international negotiations of the International Wheat Agreement and in 
the administration of such Agreement.
    (x) Plan and carry out programs and activities under the foreign 
market promotion authority of the Wheat Research and Promotion Act (7 
U.S.C. 1292 note); the Cotton Research and Promotion Act (7 U.S.C. 2101-
2118); the Potato Research and Promotion Act (7 U.S.C. 2611-2627); the 
Egg Research and Consumer Information Act of 1974 (7 U.S.C. 2701-2718); 
the Beef Research and Information Act, as amended (7 U.S.C. 2901-2918); 
the Wheat and Wheat Foods Research and Nutrition Education Act (7 U.S.C. 
3401-3417); the Floral Research and Consumer Information Act of 1981 (7 
U.S.C. 4301-4319); subtitle B of title I of the Dairy and Tobacco 
Adjustment Act of 1983 (7 U.S.C. 4501-4513); the Honey Research, 
Promotion, and Consumer Information Act of 1984, as amended (7 U.S.C. 
4601-4612); the Pork Promotion, Research, and Consumer Information Act 
of 1985 (7 U.S.C. 4801-4819); the Watermelon Research and Promotion Act, 
as amended (7 U.S.C. 4901-4916); the Pecan Promotion and Research Act of 
1990 (7 U.S.C. 6001-6013); the Mushroom Promotion, Research, and 
Consumer Information Act of 1990 (7 U.S.C. 6101-6112); the Lime 
Research, Promotion, and Consumer Information Act of 1990 (7 U.S.C. 
6201-6212); the Soybean Promotion, Research, and Consumer Information 
Act of 1990 (7 U.S.C. 6301-6311); the Fluid Milk Promotion Act of 1990 
(7 U.S.C. 6401-6417); the Fresh Cut Flowers and Fresh Cut Greens 
Promotion and Consumer Information Act (7 U.S.C. 6801-6814); and the 
Sheep Promotion, Research, and Information Act of 1994 (7 U.S.C. 7101-
7111). This authority includes determining the programs and activities 
to be undertaken and assuring that they are coordinated with the overall 
departmental programs to develop foreign markets for U.S. agricultural 
products.
    (xi) Formulate policies and administer barter programs under which 
agricultural commodities are exported.
    (xii) Perform functions of the Department in connection with the 
development and implementation of agreements to finance the sale and 
exportation of agricultural commodities under Public Law 480, 83rd 
Congress, hereafter referred to as ``Public Law 480'' (7 U.S.C. 1691, 
1701 et seq.).

[[Page 141]]

    (xiii) Administer commodity procurement and supply, transportation 
(other than from point of export, except for movement to trust 
territories or possessions), handling, payment, and related services in 
connection with programs under titles II and III of Public Law 480 (7 
U.S.C. 1691, 1701 et seq.), and payment and related services with 
respect to export programs and barter operations.
    (xiv) Coordinate within the Department activities arising under 
Public Law 480 (except as delegated to the Under Secretary for Research, 
Education, and Economics in Sec. 2.21(a)(8)), and represent the 
Department in its relationships in such matters with the Department of 
State, any interagency committee on Public Law 480, and other 
departments, agencies and committees of the Government.
    (xv) Formulate policies and implement programs to promote the export 
of dairy products, as authorized under section 153 of the Food Security 
Act of 1985, as amended (15 U.S.C. 713a-14), and of sunflowerseed oil 
and cottonseed oil, as authorized under section 301(b)(2)(A) of the 
Disaster Assistance Act of 1988, as amended (7 U.S.C. 1464 note).
    (xvi) Formulate policies and implement a program for the export 
sales of dairy products, as authorized by section 1163 of the Food 
Security Act of 1985 (7 U.S.C. 1731 note).
    (xvii) Carry out activities relating to the sale, reduction, or 
cancellation of debt, as authorized by title VI of the Agricultural 
Trade and Development Act of 1954, as amended (7 U.S.C. 1738 et seq.).
    (xviii) Carry out debt-for-health-and-protection swaps, as 
authorized by section 1517 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 1706).
    (xix) Determine the agricultural commodities acquired under price 
support programs which are available for export and allocate such 
commodities among the various export programs.
    (xx) Conduct economic analyses pertaining to the foreign sugar 
situation.
    (xxi) Exercise the Department's functions with respect to the 
International Sugar Agreement or any such future agreements.
    (xxii) Exercise the Department's responsibilities with respect to 
tariff-rate quotes for dairy products under chapter 4 of the Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202).
    (xxiii) Serve as a focal point for handling quality or weight 
discrepancy inquiries from foreign buyers of U.S. agricultural 
commodities to insure that they are investigated and receive a timely 
response and that reports thereof are made to appropriate parties and 
government officials in order that corrective action may be taken.
    (xxiv) Establish and administer regulations relating to foreign 
travel by employees of the Department. Regulations will include, but not 
be limited to, obtaining and controlling passports, obtaining visas, 
coordinating Department of State medical clearances and imposing 
requirements for itineraries and contacting the Foreign Agricultural 
Affairs Officers upon arrival in the Officers' country(ies) of 
responsibility.
    (xxv) Formulate policies and administer programs and activities 
authorized by the Agricultural Trade Act of 1978, as amended (7 U.S.C. 
5601 et seq.).
    (xxvi) Administer the Foreign Service personnel system for the 
Department in accordance with 22 U.S.C. 3922, except as otherwise 
delegated to the Assistant Secretary for Marketing and Regulatory 
Programs in Sec. 2.22(a)(2)(i), but including authority to approve joint 
regulations issued by the Department of State and authority to represent 
the Department of Agriculture in all interagency consultations and 
negotiations with the other foreign affairs agencies with respect to 
joint regulations.
    (xxvii) Establish and maintain U.S. Agricultural Trade Offices, to 
develop, maintain and expand international markets for U.S. agricultural 
commodities in accordance with title IV of Pub. L. No. 95-501 (7 U.S.C. 
1765a-g).
    (xxviii) Administer the programs under section 416(b) of the 
Agricultural Act of 1949, as amended (7 U.S.C. 1431(b)), relating to the 
foreign donation of CCC stocks of agricultural commodities.
    (xxix)-(xxx) [Reserved]

[[Page 142]]

    (xxxi) Administer programs under the Food for Progress Act of 1985 
(7 U.S.C. 1736o).
    (xxxii) Serve as Department adviser on policies, organizational 
arrangements, budgets, and actions to accomplish international 
scientific and technical cooperation in food and agriculture.
    (xxxiii) Administer and direct the Department's programs in 
international development, technical assistance, and training carried 
out under the Foreign Assistance Act, as amended, as requested under 
such act (22 U.S.C. 2151 et seq.).
    (xxxiv) Administer and coordinate assigned Departmental programs in 
international research and scientific and technical cooperation with 
other governmental agencies, land grant universities, international 
organizations, international agricultural research centers, and other 
institutions (7 U.S.C. 1624, 3291).
    (xxxv) Direct and coordinate the Department's participation in 
scientific and technical matters and exchange agreements between the 
United States and other countries.
    (xxxvi) Direct and coordinate the Department's work in international 
organizations and interagency committees concerned with food and 
agricultural development programs (7 U.S.C. 2201-2202).
    (xxxvii) Coordinate policy formulation for USDA international 
science and technology programs concerning international agricultural 
research centers, international organizations, and international 
agricultural research and extension activities (7 U.S.C. 3291).
    (xxxviii) Disseminate, upon request, information on subjects 
connected with agriculture which has been acquired by USDA agencies that 
may be useful to the U.S. private sector in expanding foreign markets 
and investment opportunities through the operation of a Department 
information center, pursuant to 7 U.S.C. 2201.
    (xxxix) Enter into contracts, grants, cooperative agreements, and 
cost reimbursable agreements relating to agricultural research, 
extension, or teaching activities (7 U.S.C. 3318, 3319a).
    (xl) Determine amounts reimbursable for indirect costs under 
international agricultural programs and agreements (7 U.S.C. 3319).
    (xli) Administer the Cochran Fellowship Program (7 U.S.C. 3293).
    (xlii) Determine quantity trigger levels and impose additional 
duties under the special safeguard measures in accordance with U.S. note 
2 to subchapter IV of chapter 99 of the Harmonized Tariff Schedule of 
the United States (19 U.S.C. 1202).
    (4) Related to federal crop insurance. (i) Exercise general 
supervision of the Federal Crop Insurance Corporation.
    (ii) Appoint such officers and employees as may be necessary for the 
transaction of the business of the Corporation, except, as provided in 
paragraph (b)(3) of this section.
    (5) Related to committee management. Establish and reestablish 
regional, state, and local advisory committees for activities under his 
or her authority. This authority may not be redelegated.
    (6) Related to defense and emergency preparedness. Administer 
responsibilities and functions assigned under the Defense Production Act 
of 1950, as amended (50 U.S.C. App. 2061 et seq.), and title VI of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5195 et seq.), concerning agricultural production; food 
processing, storage, and distribution; distribution of farm equipment 
and fertilizer; rehabilitation and use of food, agricultural and related 
agribusiness facilities; CCC resources; farm credit and financial 
assistance; and foreign agricultural intelligence and other foreign 
agricultural matters.
    (7) Related to environmental response. With respect to land and 
facilities under his or her authority, exercise the functions delegated 
to the Secretary by Executive Order 12580, 3 CFR, 1987 Comp., p. 193, 
under the following provisions of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (``the Act''), as 
amended:
    (i) Sections 104 (a), (b), and (c)(4) of the Act (42 U.S.C. 9604 
(a), (b), and (c)(4)), with respect to removal and remedial actions in 
the event of release or threatened release of a hazardous substance, 
pollutant, or contaminant into the environment;

[[Page 143]]

    (ii) Sections 104(e)-(h) of the Act (42 U.S.C. 9604(e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards and wage and labor 
standards applicable to covered work; and emergency procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petition for preliminary assessment of a 
release or threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) 
pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (ix) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon which to base the selection 
of a response action and identifying and notifying potentially 
responsible parties;
    (x) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xi) Sections 117(a) and (c) of the Act (42 U.S.C. 9617(a) and (c)), 
with respect to public participation in the preparation of any plan for 
remedial action and explanation of variances from the final remedial 
action plan for any remedial action or enforcement action, including any 
settlement or consent decree entered into;
    (xii) Section 119 of the Act (42 U.S.C. 9119), with respect to 
indemnifying response action contractors;
    (xiii) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xiv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), related to mixed funding agreements.
    (8) Related to compliance with environmental laws. With respect to 
facilities and activities under his or her authority, to exercise the 
authority of the Secretary of Agriculture pursuant to section 1-102 
related to compliance with applicable pollution control standards and 
section 1-601 of Executive Order 12088, 3 CFR, 1978 Comp., p. 243, to 
enter into an inter-agency agreement with the United States 
Environmental Protection Agency, or an administrative consent order or a 
consent judgment in an appropriate State, interstate, or local agency, 
containing a plan and schedule to achieve and maintain compliance with 
applicable pollution control standards established pursuant to the 
following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, as further amended by the Hazardous and 
Solid Waste Amendments, and the Federal Facility Compliance Act (42 
U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).
    (b) The following authorities are reserved to the Secretary of 
Agriculture:

[[Page 144]]

    (1) Related to farm service. (i) Appointment of Farm Service Agency 
State committeemen.
    (ii) Final approval of regulations relating to the selection and 
exercise of the functions of committees promulgated under section 8(b) 
of the Soil Conservation and Domestic Allotment Act, as amended (16 
U.S.C. 590h(b)).
    (2) Related to foreign agriculture. (i) Approving export controls 
with respect to any agricultural commodity, including fats and oils or 
animal hides or skins as provided for in the Export Administration Act 
of 1969, as amended (50 U.S.C. App. 2401 et seq.).
    (ii) Advising the President that imports are having the effect on 
programs or operations of this Department required as a prerequisite for 
the imposition of import controls under section 22 of the Agricultural 
Adjustment Act of 1933, as amended (7 U.S.C. 624a), recommending that 
the President cause an investigation to be made by the Tariff Commission 
of the facts so that a determination can be made whether import 
restrictions should be imposed under that Act, and determining under 
section 204(e) of the Andean Trade Preference Act (19 U.S.C. 3203(e)) 
that there exists a serious injury, or threat thereof and recommending 
to the President whether or not to take action.
    (iii) Determining the agricultural commodities and the quantities 
thereof available for disposition under Public Law 480 (7 U.S.C. 1731).
    (3) Related to federal crop insurance. 
    (i) Appointment of the Board of Directors, Federal Crop Insurance 
Corporation.
    (ii) Appointment of the Manager, Federal Crop Insurance Corporation.

[60 FR 56393, Nov. 8, 1995, as amended at 61 FR 25775, May 23, 1996; 61 
FR 37552, July 18, 1996]



Sec. 2.17  Under Secretary for Rural Economic and Community Development.

    (a) The following delegations of authority are made by the Secretary 
of Agriculture to the Under Secretary for Rural Economic and Community 
Development:
    (1) Provide leadership and coordination within the executive branch 
of a Nationwide Rural Development Program utilizing the services of 
executive branch departments and agencies and the agencies, bureaus, 
offices, and services of the Department of Agriculture in coordination 
with rural development programs of State and local governments (7 U.S.C. 
2204).
    (2) Coordinate activities relative to rural development among 
agencies reporting to the Under Secretary for Rural Economic and 
Community Development and, through appropriate channels, serve as the 
coordinating official for other departmental agencies having primary 
responsibilities for specific titles of the Rural Development Act of 
1972, and allied legislation.
    (3) Administer a national program of economic, social, and 
environmental research and analysis, statistical programs, and 
associated service work related to rural people and the communities in 
which they live including rural industrialization; rural population and 
manpower; local government finance; income development strategies; 
housing; social services and utilization; adjustments to changing 
economic and technical forces; and other related matters.
    (4) Work with Federal agencies in encouraging the creation of rural 
community development organizations.
    (5) Assist other Federal agencies in making rural community 
development organizations aware of the Federal programs available to 
them.
    (6) Advise rural community development organizations of the 
availability of Federal assistance programs.
    (7) Advise other Federal agencies of the need for particular Federal 
programs.
    (8) Assist rural community development organizations in making 
contact with Federal agencies whose assistance may be of benefit to 
them.
    (9) Assist other Federal agencies and national organizations in 
developing means for extending their services effectively to rural 
areas.
    (10) Assist other Federal agencies in designating pilot projects in 
rural areas.
    (11) Conduct studies to determine how programs of the Department can 
be brought to bear on the economic development problems of the country 
and

[[Page 145]]

assure that local groups are receiving adequate technical assistance 
from Federal agencies or from local and State governments in formulating 
development programs and in carrying out planned development activities.
    (12) Assist other Federal agencies in formulating manpower 
development and training policies.
    (13) Related to committee management. Establish and reestablish 
regional, state, and local advisory committees for activities under his 
or her authority. This authority may not be re-delegated.
    (14) Related to defense and emergency preparedness. Administer 
responsibilities and functions assigned under the Defense Production Act 
of 1950, as amended (50 U.S.C. App. 2061 et seq.), and title VI of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5195 et seq.), concerning rural development credit and financial 
assistance.
    (15) Related to energy. (i) Provide Department-wide operational 
support and coordination for loan and grant programs to foster and 
encourage the production of fuels from agricultural and forestry 
products or by-products.
    (ii) Participate as a Department representative at conferences, 
meetings and other contacts including liaison with the Department of 
Energy and other government agencies and departments with respect to 
implementation of established Department energy policy.
    (iii) Serve as Co-Chairperson of the Energy Coordinating Committee 
of the Department.
    (16) Collect, service, and liquidate loans made, insured, or 
guaranteed by the Rural Utilities Service, the Rural Housing Service, 
the Rural Business-Cooperative Service, or their predecessor agencies.
    (17) Administer the Federal Claims Collection Act of 1966 (31 U.S.C. 
3711 et seq.), and joint regulations issued pursuant thereto by the 
Attorney General and the Comptroller General (4 CFR chapter II), with 
respect to claims of the Rural Housing Service, the Rural Business-
Cooperative Service and the Rural Utilities Service.
    (18) With respect to land and facilities under his or her authority, 
exercise the functions delegated to the Secretary by Executive Order 
12580, 3 CFR, 1987 Comp., p. 193, under the following provisions of the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (``the Act''), as amended:
    (i) Sections 104(a), (b), and (c)(4) of the Act (42 U.S.C. 9604(a), 
(b), and (c)(4)), with respect to removal and remedial actions in the 
event of release or threatened release of a hazardous substance, 
pollutant, or contaminant into the environment;
    (ii) Sections 104(e)-(h) of the Act (42 U.S.C. 9604(e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards and wage and labor 
standards applicable to covered work; and emergency procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petitions for preliminary assessment of a 
release or threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) 
pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (ix) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon

[[Page 146]]

which to base the selection of a response action and identifying and 
notifying potentially responsible parties;
    (x) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xi) Sections 117(a) and (c) of the Act (42 U.S.C. 9617(a) and (c)), 
with respect to public participation in the preparation of any plan for 
remedial action and explanation of variances from the final remedial 
action plan for any remedial action or enforcement action, including any 
settlement or consent decree entered into;
    (xii) Section 119 of the Act (42 U.S.C. 9119), with respect to 
indemnifying response action contractors;
    (xiii) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xiv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), related to mixed funding agreements.
    (19) With respect to facilities and activities under his or her 
authority, to exercise the authority of the Secretary of Agriculture 
pursuant to section 1-102 related to compliance with applicable 
pollution control standards and section 1-601 of Executive Order 12088, 
3 CFR, 1978 Comp., p. 243, to enter into an inter-agency agreement with 
the United States Environmental Protection Agency, or an administrative 
consent order or a consent judgment in an appropriate State, interstate, 
or local agency, containing a plan and schedule to achieve and maintain 
compliance with applicable pollution control standards established 
pursuant to the following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, as further amended by the Hazardous and 
Solid Waste Amendments, and the Federal Facility Compliance Act (42 
U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).
    (20) Related to rural utilities service. (i) Administer the Rural 
Electrification Act of 1936, as amended (7 U.S.C. 901 et seq.) except 
for rural economic development loan and grant programs; (7 U.S.C. 940c 
and 950aa et seq.): Provided, however, that the Under Secretary may 
utilize consultants and attorneys for the provision of legal services 
pursuant to 7 U.S.C. 918, with the concurrence of the General Counsel.
    (ii) Administer the Rural Electrification Act of 1938 (7 U.S.C. 903 
note).
    (iii) Designate the chief executive officer of the Rural Telephone 
Bank.
    (iv) Administer the following sections of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1921, et seq.):
    (A) Section 306 (7 U.S.C. 1926), related to water and waste 
facilities;
    (B) Section 306A (7 U.S.C. 1926a);
    (C) Section 306B (7 U.S.C. 1926b);
    (D) Section 306C (7 U.S.C. 1926c);
    (E) Sections 309 (7 U.S.C. 1929) and 309A (7 U.S.C. 1929a), relating 
to assets and programs related to watershed facilities, resource and 
conservation facilities, and water and waste facilities;
    (F) Section 310A (7 U.S.C. 1931), relating to watershed and resource 
conservation and development;
    (G) Section 310B(b) (7 U.S.C. 1932(b));
    (H) Section 310B(i) (7 U.S.C. 1932(i)), relating to loans for 
business telecommunications partnerships; and
    (I) Administrative Provisions of subtitle D of the Consolidated Farm 
and Rural Development Act relating to rural utility activities.
    (v) Administer section 8, and those functions with respect to 
repayment of obligations under section 4 of the Watershed Protection and 
Flood Prevention Act (16 U.S.C. 1006a, 1004) and administer the Resource 
Conservation

[[Page 147]]

and Development Program to assist in carrying out resource conservation 
and development projects in rural areas under section 32(e) of the 
Bankhead-Jones Farm Tenant Act (7 U.S.C. 1011(e)).
    (vi) Administer the Water and Waste Loan Program (7 U.S.C. 1926-1).
    (vii) Administer the Rural Wastewater Treatment Circuit Rider 
Program (7 U.S.C. 1926 note).
    (viii) Administer the Distance Learning and Medical Link Programs (7 
U.S.C. 950aaa et seq.).
    (ix) Administer Water and Waste Facility Programs and activities (7 
U.S.C. 1926-1).
    (21) Related to rural business-cooperative. (i) Administer the Rural 
Economic Development Loan and Grant Programs under the Rural 
Electrification Act (7 U.S.C. 940c and 950aa et seq.).
    (ii) Administer the following sections of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1921 et seq.):
    (A) Section 306(a)(11)(A) (7 U.S.C. 1926 (a)(11)(A)), relating to 
grants for business technical assistance and planning;
    (B) Section 304(b) (7 U.S.C. 1924(b)), relating to small business 
enterprises;
    (C) Sections 309 (7 U.S.C. 1929) and 309A (7 U.S.C. 1929a), relating 
to assets and programs related to rural development;
    (D) Section 310B (7 U.S.C. 1932), relating to rural 
industrialization assistance, rural business enterprise grants and rural 
technology and cooperative development grants;
    (E) Section 312(b) (7 U.S.C. 1942(b)), relating to small business 
enterprises; and
    (F) Administrative Provisions of subtitle D of the Consolidated Farm 
and Rural Development Act relating to rural business-cooperative 
activities.
    (iii) Administer Alcohol Fuels Credit Guarantee Program Account 
(Pub. L. 102-341, 106 Stat. 895).
    (iv) Administer section 1323 of the Food Security Act of 1985 (7 
U.S.C. 1932 note).
    (v) Administer loan programs in the Appalachian region under 
sections 203 and 204 of the Appalachian Regional Development Act of 1965 
(40 U.S.C. App. 204).
    (vi) Administer section 601 of the Powerplant and Industrial Fuel 
Use Act of 1978 (Pub. L. 95-620).
    (vii) Administer the Drought and Disaster Guaranteed Loan Program 
under section 331 of the Disaster Assistance Act of 1988 (7 U.S.C. 1929a 
note).
    (viii) Administer the Disaster Assistance for Rural Business 
Enterprises Guaranteed Loan Program under section 401 of the Disaster 
Assistance Act of 1989 (7 U.S.C. 1929a note).
    (ix) Administer the Rural Economic Development Demonstration Grant 
Program (7 U.S.C. 2662a).
    (x) Administer the Economically Disadvantaged Rural Community Loan 
Program (7 U.S.C. 6616).
    (xi) Exercise administrative oversight over the Alternative 
Agricultural Research and Commercialization Center established pursuant 
to the Alternative Agricultural Research and Commercialization Act of 
1990, (7 U.S.C. 5901 et seq.).
    (xii) Administer programs authorized by the Cooperative Marketing 
Act of 1926 (7 U.S.C. 451-457).
    (xiii) Carry out the responsibilities of the Secretary of 
Agriculture relating to the marketing aspects of cooperatives, including 
economic research and analysis, the application of economic research 
findings, technical assistance to existing and developing cooperatives, 
education on cooperatives, and statistical information pertaining to 
cooperatives as authorized by the Agricultural Marketing Act of 1946 (7 
U.S.C. 1621-1627).
    (xiv) Work with institutions and international organizations 
throughout the world on subjects related to the development and 
operation of agricultural cooperatives. Such work may be carried out by:
    (A) Exchanging materials and results with such institutions or 
organizations;
    (B) Engaging in joint or coordinated activities; or
    (C) Stationing representatives at such institutions or organizations 
in foreign countries (7 U.S.C. 3291).
    (xv) Administer in rural areas the process of designation, provision 
of monitoring and oversight, and provision of technical assistance for 
Empowerment Zones and Enterprise

[[Page 148]]

Communities pursuant to section 13301 of Public Law 103-66, Omnibus 
Budget Reconciliation Act of 1993 (26 U.S.C. 1391 et seq.)
    (xvi) Work with Federal agencies in encouraging the creation of 
local rural community development organizations. Within a State, assist 
other Federal agencies in developing means for extending their services 
effectively to rural areas and in designating pilot projects in rural 
areas (7 U.S.C. 2204).
    (xvii) Conduct assessments to determine how programs of the 
Department can be brought to bear on the economic development problems 
of a State or local area and assure that local groups are receiving 
adequate and effective technical assistance from Federal agencies or 
from local and State governments in formulating development programs and 
in carrying out planned development activities (7 U.S.C. 2204b).
    (xviii) Develop a process through which State, sub-state and local 
rural development needs, goals, objectives, plans, and recommendations 
can be received and assessed on a continuing basis (7 U.S.C. 2204b).
    (xix) Prepare local or area-wide rural development strategies based 
on the needs, goals, objectives, plans and recommendations of local 
communities, sub-state areas and States (7 U.S.C. 2204b).
    (xx) Develop a system of outreach in the State or local area to 
promote rural development and provide for the publication and 
dissemination of information, through multi-media methods, relating to 
rural development. Advise local rural development organizations of 
availability of Federal programs and the type of assistance available, 
and assist in making contact with Federal program (7 U.S.C. 2204; 7 
U.S.C. 2204b).
    (22) Related to rural housing. (i) Administer the following under 
the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.):
    (A) Section 306 (7 U.S.C. 1926), except with respect to financing 
for water and waste disposal facilities; or loans for rural 
electrification or telephone systems or facilities other than 
hydroelectric generating and related distribution systems and 
supplemental and supporting structures if they are eligible for Rural 
Utilities Service financing; and financing for grazing facilities and 
irrigation and drainage facilities; and subsection 306(a)(11);
    (B) Section 309A (7 U.S.C. 1929a), regarding assets and programs 
relating to community facilities; and
    (C) Administrative Provisions of subtitle D of the Consolidated Farm 
and Rural Development Act relating to rural housing activities.
    (ii) Administer title V of the Housing Act of 1949 (42 U.S.C. 1471 
et seq.), except those functions pertaining to research.
    (iii) Make grants, administer a grant program, and determine the 
types of assistance to be provided to aid low-income migrant and 
seasonal farmworkers (42 U.S.C. 5177a).
    (iv) Administer the Rural Housing Disaster Program under sections 
232, 234, and 253 of the Disaster Relief Act of 1970 (Pub. L. No. 91-
606).
    (v) Exercise all authority and discretion vested in the Secretary by 
section 510(d) of the Housing Act of 1949, as amended by section 1045 of 
the Stewart B. McKinney Homeless Assistance Amendments Act of 1988, Pub. 
L. 100-628 (42 U.S.C. 1480(d)), including the following:
    (A) Determine, with the concurrence of the General Counsel, which 
actions are to be referred to the Department of Justice for the conduct 
of litigation, and refer such actions to the Department of Justice 
through the General Counsel;
    (B) Determine, with the concurrence of the General Counsel, which 
actions are to be referred to the General Counsel for the conduct of 
litigation and refer such actions; and
    (C) Enter into contracts with private sector attorneys for the 
conduct of litigation, with the concurrence of the General Counsel, 
after determining that the attorneys will provide competent and cost 
effective representation for the Rural Housing Service and 
representation by the attorney will either accelerate the process by 
which a family or person eligible for assistance under section 502 of 
the Housing Act of 1949 will be able to purchase and occupy the housing 
involved, or preserve the quality of the housing involved.
    (b) The following authority is reserved to the Secretary of 
Agriculture:

[[Page 149]]

    (1) Related to rural business-cooperative. Submission to the 
Congress of the report required pursuant to section 1469 of Pub. L. No. 
101-624.
    (2) [Reserved]



Sec. 2.18  Under Secretary for Food Safety.

    (a) The following delegations of authority are made by the Secretary 
of Agriculture to the Under Secretary for Food Safety:
    (1) Related to food safety and inspection. (i) Exercise the 
functions of the Secretary of Agriculture contained in the Agricultural 
Marketing Act of 1946, as amended (7 U.S.C. 1621-1627), relating to 
voluntary inspection of poultry and edible products thereof; voluntary 
inspection and certification of technical animal fat; certified products 
for dogs, cats, and other carnivora; voluntary inspection of rabbits and 
edible products thereof; and voluntary inspection and certification of 
edible meat and other products.
    (ii) Exercise the functions of the Secretary of Agriculture 
contained in the following legislation:
    (A) Poultry Products Inspection Act, as amended (21 U.S.C. 451-470);
    (B) Federal Meat Inspection Act, as amended, and related 
legislation, excluding sections 12-14, and also excluding so much of 
section 18 as pertains to issuance of certificates of condition of live 
animals intended and offered for export (21 U.S.C. 601-611, 615-624, 
641-645, 661, 671-680, 691-692, 694-695);
    (C) Egg Products Inspection Act, except for the Shell Egg 
Surveillance Program, voluntary laboratory analyses of egg products, and 
the Voluntary Egg Grading Program (21 U.S.C. 1031-1056);
    (D) Talmadge-Aiken Act (7 U.S.C. 450) with respect to cooperation 
with States in administration of the Federal Meat Inspection Act and the 
Poultry Products Inspection Act;
    (E) Humane Slaughter Act (7 U.S.C. 1901-1906);
    (F) National Laboratory Accreditation Program (7 U.S.C. 138-138i) 
with respect to laboratories accredited only for pesticide residue 
analysis in meat and poultry products; and
    (G) Administer and conduct a Food Safety Research Program (7 U.S.C. 
427).
    (iii) Coordinate with the Assistant Secretary for Marketing and 
Regulatory Programs the administration of programs relating to human 
pathogen reduction (such as salmonella enteritidis) pursuant to section 
2 of the Act of February 2, 1903, as amended (21 U.S.C. 111), and 
sections 4 and 5 of the Act of May 29, 1884, as amended (21 U.S.C. 120).
    (iv) Enter into contracts, grants, or cooperative agreements to 
further research programs in the agricultural sciences (7 U.S.C. 3318).
    (2) Related to committee management. Establish and reestablish 
regional, State, and local advisory committees for activities under his 
or her authority. This authority may not be redelegated.
    (3) Related to defense and emergency preparedness. Administer 
responsibilities and functions assigned under the Defense Production Act 
of 1950, as amended (50 U.S.C. App. 2061 et seq.), and title VI of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5195 et seq.), concerning the wholesomeness of meat and poultry 
and products thereof and inspection of eggs and egg products.
    (4) Related to biotechnology. Coordinate the development and 
carrying out by Department agencies of all matters and functions 
pertaining to the Department's regulation of biotechnology as they may 
affect the safety of meat, poultry or egg products.
    (5) Related to environmental response. With respect to land and 
facilities under his or her authority, exercise the functions delegated 
to the Secretary by Executive Order 12580, 3 CFR, 1987 Comp., p. 193, 
under the following provisions of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (``the Act''), as 
amended:
    (i) Sections 104 (a), (b), and (c)(4) of the Act (42 U.S.C. 9604 
(a), (b), and (c)(4)), with respect to removal and remedial actions in 
the event of release or threatened release of a hazardous substance, 
pollutant, or contaminant into the environment;
    (ii) Sections 104(e)-(h) of the Act (42 U.S.C. 9604(e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards

[[Page 150]]

and wage and labor standards applicable to covered work; and emergency 
procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petitions for preliminary assessment of a 
release or threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) 
pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (ix) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon which to base the selection 
of a response action and identifying and notifying potentially 
responsible parties;
    (x) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xi) Sections 117(a) and (c) of the Act (42 U.S.C. 9617(a) and (c)), 
with respect to public participation in the preparation of any plan for 
remedial action and explanation of variances from the final remedial 
action plan for any remedial action or enforcement action, including any 
settlement or consent decree entered into;
    (xii) Section 119 of the Act (42 U.S.C. 9119), with respect to 
indemnifying response action contractors;
    (xiii) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xiv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), related to mixed funding agreements.
    (6) Related to compliance with environmental laws. With respect to 
facilities and activities under his or her authority, to exercise the 
authority of the Secretary of Agriculture pursuant to section 1-102 
related to compliance with applicable pollution control standards and 
section 1-601 of Executive Order 12088, 3 CFR, 1978 Comp., p. 243, to 
enter into an inter-agency agreement with the United States 
Environmental Protection Agency, or an administrative consent order or a 
consent judgment in an appropriate State, interstate, or local agency, 
containing a plan and schedule to achieve and maintain compliance with 
applicable pollution control standards established pursuant to the 
following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, as further amended by the Hazardous and 
Solid Waste Amendments, and the Federal Facility Compliance Act (42 
U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).



Sec. 2.19  Under Secretary for Food, Nutrition, and Consumer Services.

    (a) The following delegations of authority are made by the Secretary 
of Agriculture to the Under Secretary for

[[Page 151]]

Food, Nutrition, and Consumer Services:
    (1) Related to food and nutrition. (i) Administer the following 
legislation:
    (A) The Food Stamp Act of 1977, as amended (7 U.S.C. 2011-2032);
    (B) National School Lunch Act of 1946, as amended (42 U.S.C. 1751-
1769h), except procurement of agricultural commodities and other foods 
under section 6 thereof;
    (C) Child Nutrition Act of 1966, as amended (42 U.S.C. 1771-1790);
    (D) Sections 933-939 of the Food, Agriculture, Conservation, and 
Trade Act Amendments of 1991 (7 U.S.C. 5930 note); and
    (E) Section 301 of the Healthy Meals for Healthy Americans Act of 
1994 (Pub. L. 103-448).
    (ii) Administer those functions relating to the distribution and 
donation of agricultural commodities and products thereof under the 
following legislation:
    (A) Clause (3) of section 416(a) of the Agricultural Act of 1949, as 
amended (7 U.S.C. 1431(a)), except the estimate and announcement of the 
types and varieties of food commodities, and the quantities thereof, to 
become available for distribution thereunder;
    (B) Section 709 of the Food and Agriculture Act of 1965, as amended 
(7 U.S.C. 1446a-1);
    (C) Section 32 of the Act of August 24, 1935, as amended (7 U.S.C. 
612c), as supplemented by the Act of June 28, 1937, as amended (15 
U.S.C. 713c), and related legislation;
    (D) Section 9 of the Act of September 6, 1958, as amended (7 U.S.C. 
1431b);
    (E) Section 210 of the Agricultural Act of 1956 (7 U.S.C. 1859), 
except with respect to donations to Federal penal and correctional 
institutions;
    (F) Section 402 of the Mutual Security Act of 1954, as amended (22 
U.S.C. 1922);
    (G) Section 311 of the Older Americans Act of 1965, as amended (42 
U.S.C. 3030a);
    (H) Sections 412 and 413(b) of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5179, 5180(b));
    (I) Sections 4 and 5 of the Agriculture and Consumer Protection Act 
of 1973, as amended (7 U.S.C. 612c note);
    (J) Section 1114 of the Agriculture and Food Act of 1981, as amended 
(7 U.S.C. 1431e);
    (K) Section 1336 of the Agriculture and Food Act of 1981 (Pub. L. 
97-98);
    (L) Emergency Food Assistance Act of 1983 (7 U.S.C. 612c note);
    (M) Sections 3(b)-(i), 3A and 4 of the Commodity Distribution Reform 
Act and WIC Amendments of 1987 (7 U.S.C. 612c note); and
    (N) Section 110 of the Hunger Prevention Act of 1988 (7 U.S.C. 612c 
note).
    (iii) Administer those functions relating to the distribution of 
food coupons under section 412 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5179).
    (iv) In connection with the functions assigned in paragraphs 
(a)(1)(i), (ii) and (iii) of this section, relating to the distribution 
and donation of agricultural commodities and products thereof and food 
coupons to eligible recipients, authority to determine the requirements 
for such agricultural commodities and products thereof and food coupons 
to be so distributed.
    (v) Receive donation of food commodities under clause (3) of section 
416(a) of the Agricultural Act of 1949, as amended, section 709 of the 
Food and Agriculture Act of 1965, as amended, section 5 of the 
Agriculture and Consumer Protection Act of 1973, section 1114(a) of the 
Agriculture and Food Act of 1981, and section 202(a) and 202A of the 
Emergency Food Assistance Act of 1983.
    (2) Related to consumer advice. (i) Develop and implement USDA 
policy and procedural guidelines for carrying out the Department's 
Consumer Affairs Plan.
    (ii) Advise the Secretary and other policy level officials of the 
Department on consumer affairs policies and programs.
    (iii) Coordinate USDA consumer affairs activities and monitor and 
analyze agency procedures and performance.
    (iv) Represent the Department at conferences, meetings and other 
contacts where consumer affairs issues are discussed, including liaison 
with the White House and other governmental agencies and departments.

[[Page 152]]

    (v) Work with the Office of Budget and Program Analysis and the 
Office of Communications to ensure coordination of USDA consumer affairs 
and public participation programs, policies and information, and to 
prevent duplication of responsibilities.
    (vi) Serve as a consumer ombudsman and communication link between 
consumers and the Department.
    (vii) Approve the designation of agency Consumer Affairs Contacts.
    (3) Related to human nutrition information. (i) Develop techniques 
and equipment to assist consumers in the home and in institutions in 
selecting food that supplies a nutritionally adequate diet.
    (ii) Develop family food plans at different costs for use as 
standards by families of different sizes, sex-age composition, and 
economic levels.
    (iii) Develop suitable and safe preparation and management 
procedures to retain nutritional and eating qualities of food served in 
homes and institutions.
    (iv) Develop materials to aid the public in meeting dietary needs, 
with emphasis on food selection for good nutrition and appropriate cost, 
and food preparation to avoid waste, maximize nutrient retention, 
minimize food safety hazards, and conserve energy.
    (v) Develop food plans for use in establishing food stamp benefit 
levels, and assess the nutritional impact of Federal food programs.
    (vi) Coordinate nutrition education promotion and professional 
education projects within the Department.
    (vii) Analyze data from food consumption surveys in coordination 
with the Under Secretary for Research, Education, and Economics to 
provide a basis for evaluating dietary adequacy.
    (viii) Consult with the Federal and State agencies, the Congress, 
universities, and other public and private organizations and the general 
public regarding household food consumption, individual intake, and 
dietary adequacy, and implications of the survey on public policy 
regarding food and nutrition policies (7 U.S.C. 3171-3175).
    (4) Related to committee management. Establish and reestablish 
regional, State, and local advisory committees for activities under his 
or her authority. This authority may not be redelegated.
    (5) Related to defense and emergency preparedness. Administer 
responsibilities and functions assigned under the Defense Production Act 
of 1950, as amended (50 U.S.C. App. 2061 et seq.), and title VI of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5195 et seq.), concerning food stamp assistance.
    (b) The following authority is reserved to the Secretary of 
Agriculture:
    (1) Related to food and nutrition. Authority to appoint the members 
of the National Advisory Council on Maternal, Infant, and Fetal 
Nutrition as directed in section 17(k) of the Child Nutrition Act of 
1966, as amended (42 U.S.C. 1786(k)).
    (2) [Reserved]



Sec. 2.20  Under Secretary for Natural Resources and Environment.

    (a) The following delegations of authority are made by the Secretary 
of Agriculture to the Under Secretary for Natural Resources and 
Environment:
    (1) Related to environmental quality. (i) Administer the 
implementation of the National Environmental Policy Act for the United 
States Department of Agriculture (USDA).
    (ii) Provide representation for USDA on the National Response Team 
on hazardous spills pursuant to Pub. L. No. 92-500 (33 U.S.C. 1151 
note), and section 4 of Executive Order 11735, 3 CFR, 1971-1975 Comp., 
p. 793.
    (iii) Represent USDA in contacts with the United States 
Environmental Protection Agency, the Council on Environmental Quality, 
and other organizations or agencies on matters related to assigned 
responsibilities.
    (iv) Formulate and promulgate USDA policy relating to environmental 
activity and natural resources.
    (v) Provide staff support for the Secretary in the review of 
environmental impact statements.
    (vi) Provide leadership in USDA for general land use activities 
including implementation of Executive Order 11988, Flood Plain 
Management, 3 CFR, 1977 Comp., p. 117, and Executive Order 11990, 
Protection of Wetlands, 3 CFR, 1977 Comp., p. 121.

[[Page 153]]

    (2) Related to forestry. (i) Provide national leadership in 
forestry. (As used here and elsewhere in this section, the term 
``forestry'' encompasses renewable and nonrenewable resources of 
forests, including lands governed by the Alaska National Interest Lands 
Conservation Act, forest-related rangeland, grassland, brushland, 
woodland, and alpine areas including but not limited to recreation, 
range, timber, minerals, watershed, wildlife and fish; natural scenic, 
scientific, cultural, and historic values of forests and related lands; 
and derivative values such as economic strength and social well-being).
    (ii) Protect, manage, and administer the national forests, national 
forest purchase units, national grasslands, and other lands and 
interests in lands administered by the Forest Service, which 
collectively are designated as the National Forest System. This 
delegation covers the acquisition and disposition of lands and interests 
in lands as may be authorized for the protection, management, and 
administration of the National Forest System, including the authority to 
approve acquisition of land under the Weeks Act of March 1, 1911, as 
amended (16 U.S.C. 521), and special forest receipts acts, as follows: 
(Pub. L. 337, 74th Cong., 49 Stat. 866, as amended by Pub. L. 310, 78th 
Cong., 58 Stat. 227; Pub. L. 505, 75th Cong., 52 Stat. 347, as amended 
by Pub. L. 310, 78th Cong., 58 Stat. 227; Pub. L. 634, 75th Cong., 52 
Stat. 699, as amended by Pub. L. 310, 78th Cong., 58 Stat. 227; Pub. L. 
748, 75th Cong., 52 Stat. 1205, as amended by Pub. L. 310, 78th Cong., 
58 Stat. 227; Pub. L. 427, 76th Cong., 54 Stat. 46; Pub. L. 589, 76th 
Cong., 54 Stat. 297; Pub. L. 591, 76th Cong., 54 Stat. 299; Pub. L. 637, 
76th Cong., 54 Stat. 402; Pub. L. 781, 84th Cong., 70 Stat. 632).
    (iii) As necessary for administrative purposes, divide into and 
designate as national forests any lands of 3,000 acres or more which are 
acquired under or subject to the Weeks Act of March 1, 1911, as amended, 
and which are contiguous to existing national forest boundaries 
established under the authority of the Weeks Act.
    (iv) Plan and administer wildlife and fish conservation 
rehabilitation and habitat management programs on National Forest System 
lands, pursuant to 16 U.S.C. 670g, 670h, and 670o.
    (v) For the purposes of the National Forest System Drug Control Act 
of 1986 (16 U.S.C. 559b-f), specifically designate certain specially 
trained officers and employees of the Forest Service, not exceeding 500, 
to have authority in the performance of their duties within the 
boundaries of the National Forest System:
    (A) To carry firearms;
    (B) To enforce and conduct investigations of violations of section 
401 of the Controlled Substance Act (21 U.S.C. 841) and other criminal 
violations relating to marijuana and other controlled substances that 
are manufactured, distributed, or dispensed on National Forest System 
lands;
    (C) To make arrests with a warrant or process for misdemeanor 
violations, or without a warrant for violations of such misdemeanors 
that any such officer or employee has probable cause to believe are 
being committed in that employee's presence or view, or for a felony 
with a warrant or without a warrant if that employee has probable cause 
to believe that the person being arrested has committed or is committing 
such a felony;
    (D) To serve warrants and other process issued by a court or officer 
of competent jurisdiction;
    (E) To search, with or without a warrant or process, any person, 
place, or conveyance according to Federal law or rule of law; and
    (F) To seize, with or without warrant or process, any evidentiary 
item according to Federal law or rule of law.
    (vi) Authorize the Forest Service to cooperate with the law 
enforcement officials of any Federal agency, State, or political 
subdivision, in the investigation of violations of, and enforcement of, 
section 401 of the Controlled Substances Act (21 U.S.C. 841), other laws 
and regulations relating to marijuana and other controlled substances, 
and State drug control laws or ordinances, within the boundaries of the 
National Forest System.
    (vii) Administer programs under section 23 of the Federal Highway 
Act (23 U.S.C. 101(a), 120(f), 125(a)-(c), 138, 202(a)-(b), 203, 204(a)-
(h), 205(a)-(d), 211, 317, 402(a)).

[[Page 154]]

    (viii) Exercise the administrative appeal functions of the Secretary 
of Agriculture in review of decisions of the Chief of the Forest Service 
pursuant to 36 CFR parts 215 and 217 and 36 CFR part 251, subpart C.
    (ix) Conduct, support, and cooperate in investigations, experiments, 
tests, and other activities deemed necessary to obtain, analyze, 
develop, demonstrate, and disseminate scientific information about 
protecting, managing, and utilizing forest and rangeland renewable 
resources in rural, suburban, and urban areas in the United States and 
foreign countries. The activities conducted, supported, or cooperated in 
shall include, but not be limited to: renewable resource management 
research, renewable resource environmental research; renewable resource 
protection research; renewable resource utilization research, and 
renewable resource assessment research (16 U.S.C. 1641-1647).
    (x) Use authorities and means available to disseminate the knowledge 
and technology developed from forestry research (16 U.S.C. 1645).
    (xi) Coordinate activities with other agencies in USDA, other 
Federal and State agencies, forestry schools, and private entities and 
individuals (16 U.S.C. 1643).
    (xii) Enter into contracts, grants, and cooperative agreements for 
the support of scientific research in forestry activities (7 U.S.C. 
427i(a), 1624; 16 U.S.C. 582a-8, 1643-1645, 1649).
    (xiii) Enter into cooperative research and development agreements 
with industry, universities, and others; institute a cash award program 
to reward scientific, engineering, and technical personnel; award 
royalties to inventors; and retain and use royalty income (15 U.S.C. 
3710a-3710c).
    (xiv) Enter into contracts, grants, or cooperative agreements to 
further research, extension, or teaching programs in the food and 
agricultural sciences (7 U.S.C. 3152, 3318).
    (xv) Enter into cost-reimbursable agreements relating to 
agricultural research, extension, or teaching activities (7 U.S.C. 
3319a).
    (xvi) Administer programs of cooperative forestry assistance in the 
protection, conservation, and multiple resource management of forests 
and related resources in both rural and urban areas and forest lands in 
foreign countries (16 U.S.C. 2101-2114).
    (xvii) Provide assistance to States and other units of government in 
forest resources planning and forestry rural revitalization (7 U.S.C. 
6601, 6611-6617; 16 U.S.C. 2107).
    (xviii) Conduct a program of technology implementation for State 
forestry personnel, private forest landowners and managers, vendors, 
forest operators, public agencies, and individuals (16 U.S.C. 2107).
    (xix) Administer Rural Fire Protection and Control Programs (16 
U.S.C. 2106).
    (xx) Provide technical assistance on forestry technology or the 
implementation of the Conservation Reserve and Softwood Timber Programs 
authorized in sections 1231-1244 and 1254 of the Food Security Act of 
1985 (16 U.S.C. 3831-3844; 7 U.S.C. 1981 note).
    (xxi) Administer forest insect, disease, and other pest management 
programs (16 U.S.C. 2104).
    (xxii) Exercise the custodial functions of the Secretary for lands 
and interests in lands under lease or contract of sale to States and 
local agencies pursuant to title III of the Bankhead-Jones Farm Tenant 
Act and administer reserved and reversionary interests in lands conveyed 
under that Act (7 U.S.C. 1010-1012).
    (xxiii) Under such general program criteria and procedures as may be 
established by the Natural Resources Conservation Service:
    (A) Administer the forestry aspects of the programs listed in 
paragraphs (a)(2)(xxiii)(A)(1), (2) and (3) of this section on the 
National Forest System, rangelands with national forest boundaries, 
adjacent rangelands which are administered under formal agreement, and 
other forest lands;
    (1) The cooperative river basin surveys and investigations program 
(16 U.S.C. 1006);
    (2) The Eleven Authorized Watershed Improvement Programs and 
Emergency Flood Prevention Measures Program under the Flood Control Act 
(33 U.S.C. 701b-1); and
    (3) The Small Watershed Protection Program under the Pilot Watershed

[[Page 155]]

Protection and Watershed Protection and Flood Prevention Acts (7 U.S.C. 
701a-h; 16 U.S.C. 1001-1009); and
    (B) Exercise responsibility in connection with the forestry aspects 
of the Resource Conservation and Development Program authorized by title 
III of the Bankhead-Jones Farm Tenant Act (7 U.S.C. 1011(e)).
    (xxiv) Provide assistance to the Farm Service Agency in connection 
with the Agricultural Conservation Program, the Naval Stores 
Conservation Program, and the Cropland Conversion Program (16 U.S.C. 
590g-q).
    (xxv) Provide assistance to the Rural Housing Service in connection 
with grants and loans under authority of section 303 of the Consolidated 
Farm and Rural Development Act, 7 U.S.C. 1923; and consultation with the 
Department of Housing and Urban Development under the authority of 40 
U.S.C. 461(e).
    (xxvi) Coordinate mapping work of USDA including:
    (A) Clearing mapping projects to prevent duplication;
    (B) Keeping a record of mapping done by USDA agencies;
    (C) Preparing and submitting required USDA reports;
    (D) Serving as liaison on mapping with the Office of Management and 
Budget, Department of Interior, and other departments and 
establishments;
    (E) Promoting interchange of technical mapping information, 
including techniques which may reduce costs or improve quality; and
    (F) Maintaining the mapping records formerly maintained by the 
Office of Operations.
    (xxvii) Administer the radio frequency licensing work of USDA, 
including:
    (A) Representing USDA on the Interdepartmental Radio Advisory 
Committee and its Frequency Assignment Subcommittee of the National 
Telecommunications and Information Administration, Department of 
Commerce;
    (B) Establishing policies, standards, and procedures for allotting 
and assigning frequencies within USDA and for obtaining effective 
utilization of them;
    (C) Providing licensing action necessary to assign radio frequencies 
for use by the agencies of USDA and maintenance of the records necessary 
in connection therewith;
    (D) Providing inspection of USDA's radio operations to ensure 
compliance with national and international regulations and policies for 
radio frequency use; and
    (E) Representing USDA in all matters relating to responsibilities 
and authorities under the Federal Water Power Act, as amended (16 U.S.C. 
791-823).
    (xxviii) [Reserved]
    (xxix) Administer the Youth Conservation Corps Act (42 U.S.C. 
precede 2711 note) for USDA.
    (xxx) Establish and operate the Job Corps Civilian Conservation 
Centers on National Forest System lands as authorized by title I, 
sections 106 and 107 of the Economic Opportunity Act of 1964 (42 U.S.C. 
2716-2717), in accordance with the terms of an agreement dated May 11, 
1967, between the Secretary of Agriculture and the Secretary of Labor; 
and administration of other cooperative manpower training and work 
experience programs where the Forest Service serves as host or prime 
sponsor with other Departments of Federal, State, or local governments.
    (xxxi) Administer the Volunteers in the National Forests Act of 1972 
(16 U.S.C. 558a-558d, 558a note).
    (xxxii) Exercise the functions of the Secretary of Agriculture 
authorized in the Alaska National Interest Lands Conservation Act (16 
U.S.C. 3101-3215).
    (xxxiii) Exercise the functions of the Secretary as authorized in 
the Wild and Scenic Rivers Act (16 U.S.C. 1271-1278).
    (xxxiv) Jointly administer gypsy moth eradication activities with 
the Assistant Secretary for Marketing and Regulatory Programs, under the 
authority of section 102 of the Organic Act of 1944, as amended; and the 
Act of April 6, 1937, as amended (7 U.S.C. 147a, 148, 148a-148e); and 
the Talmadge Aiken Act (7 U.S.C. 450), by assuming primary 
responsibility for treating isolated gypsy moth infestations on Federal 
lands, and on State and private lands contiguous to infested Federal 
lands,

[[Page 156]]

and any other infestations over 640 acres on State and private lands.
    (xxxv) Exercise the functions of the Secretary authorized in the 
Federal Onshore Oil and Gas Leasing Reform Act of 1987 (30 U.S.C. 226 et 
seq.).
    (xxxvi) Administer the Public Lands Corps program (16 U.S.C. 1721 et 
seq.) for USDA consistent with the Department's overall national service 
program.
    (xxxvii) Jointly administer the Forestry Incentives Program with the 
Natural Resources Conservation Service, in consultation with State 
Foresters, under section 4 of the Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2103).
    (xxxviii) Focusing on countries that could have a substantial impact 
on global warming, provide assistance that promotes sustainable 
development and global environmental stability; share technical, 
managerial, extension, and administrative skills; provide education and 
training opportunities; engage in scientific exchange; and cooperate 
with domestic and international organizations that further international 
programs for the management and protection of forests, rangelands, 
wildlife, fisheries and related natural resources (16 U.S.C. 4501-4505).
    (3) Related to natural resources conservation. (i) Provide national 
leadership in the conservation, development and productive use of the 
Nation's soil, water, and related resources. Such leadership encompasses 
soil, water, plant, and wildlife conservation; small watershed 
protection and flood prevention; and resource conservation and 
development. Integrated in these programs are erosion control, sediment 
reduction, pollution abatement, land use planning, multiple use, 
improvement of water quality, and several surveying and monitoring 
activities related to environmental improvement. All are designed to 
assure:
    (A) Quality in the natural resource base for sustained use;
    (B) Quality in the environment to provide attractive, convenient, 
and satisfying places to live, work, and play; and
    (C) Quality in the standard of living based on community improvement 
and adequate income.
    (ii) Provide national leadership in and evaluate and coordinate land 
use policy, and administer the Farmland Protection Policy Act (7 U.S.C. 
4201 et seq.), including the Farms for the Future Program authorized by 
sections 1465-1470 of the Food, Agriculture, Conservation, and Trade Act 
of 1990, as amended (7 U.S.C. 4201 note), except as otherwise delegated 
to the Under Secretary for Research, Education, and Economics in 
Sec. 2.21(a)(1)(lxii).
    (iii) Administer the basic program of soil and water conservation 
under Pub. L. No. 46, 74th Congress, as amended, and related laws (16 
U.S.C. 590 a-f, i-l, q, q-1; 42 U.S.C. 3271-3274; 7 U.S.C. 2201), 
including:
    (A) Technical and financial assistance to land users in carrying out 
locally adapted soil and water conservation programs primarily through 
soil and water conservation districts in the several States, the 
District of Columbia, the Commonwealth of Puerto Rico, and the 
Commonwealth of the Northern Mariana Islands, American Samoa, Guam, the 
Virgin Islands, and Federally recognized Native American tribes, but 
also to communities, watershed groups, Federal and State agencies, and 
other cooperators. This authority includes such assistance as:
    (1) Comprehensive planning assistance in nonmetropolitan districts;
    (2) Assistance in the field of income-producing recreation on rural 
non-Federal lands;
    (3) Forestry assistance, as part of total technical assistance to 
private land owners and land users when such services are an integral 
part of land management and such services are not available from a State 
agency; and forestry services in connection with windbreaks and shelter 
belts to prevent wind and water erosion of lands;
    (4) Assistance in developing programs relating to natural beauty; 
and
    (5) Assistance to other USDA agencies in connection with the 
administration of their programs, as follows:
    (i) To the Farm Service Agency in the development and technical 
servicing of certain programs, such as the Agricultural Conservation 
Program

[[Page 157]]

and other such similar conservation programs;
    (ii) To the Rural Housing Service in connection with their loan and 
land disposition programs;
    (B) Soil Surveys, including:
    (1) Providing leadership for the Federal part of the National 
Cooperative Soil Survey which includes conducting and publishing soil 
surveys;
    (2) Conducting soil surveys for resource planning and development; 
and
    (3) Performing the cartographic services essential to carrying out 
the functions of the Natural Resources Conservation Service, including 
furnishing photographs, mosaics, and maps;
    (C) Conducting and coordinating snow surveys and making water supply 
forecasts pursuant to Reorganization Plan No. IV of 1940 (5 U.S.C. 
App.);
    (D) Operating plant materials centers for the assembly and testing 
of plant species in conservation programs, including the use, 
administration, and disposition of lands under the administration of the 
Natural Resources Conservation Service for such purposes under title III 
of the Bankhead-Jones Farm Tenant Act (7 U.S.C. 1010-1011); and
    (E) Providing leadership in the inventorying and monitoring of soil, 
water, land, and related resources of the Nation.
    (iv) Administer the Watershed Protection and Flood Prevention 
Programs, including:
    (A) The eleven authorized watershed projects authorized under 33 
U.S.C. 702b-1;
    (B) The emergency flood control work under 33 U.S.C. 701b-1;
    (C) The Cooperative River Basin Surveys and Investigations Programs 
under 16 U.S.C. 1006;
    (D) The pilot watershed projects under 16 U.S.C. 590 a-f and 16 
U.S.C. 1001-1009;
    (E) The Watershed Protection and Flood Prevention Program under 16 
U.S.C. 1001-1009, except for responsibilities assigned to the Under 
Secretary for Rural Economic and Community Development;
    (F) The joint investigations and surveys with the Department of the 
Army under 16 U.S.C. 1009; and
    (G) The Emergency Conservation Program under sections 401-405 of the 
Agricultural Credit Act of 1978 (the Act), 16 U.S.C. 2201 et seq., 
except for the provisions of sections 401 and 402 of the Act, 16 U.S.C. 
2201-2202, as administered by the Under Secretary for Farm and Foreign 
Agricultural Services.
    (v) Administer the Great Plains Conservation Program and the 
Critical Lands Resources Conservation Program under 16 U.S.C. 590p(b), 
590q and 590q-3.
    (vi) Administer the Resource Conservation and Development Program 
under 16 U.S.C. 590 a-f; 7 U.S.C. 1010-1011; and 16 U.S.C. 3451-3461, 
except for responsibilities assigned to the Under Secretary for Rural 
Economic and Community Development.
    (vii) Responsibility for entering into long-term contracts for 
carrying out conservation and environmental measures in watershed areas.
    (viii) Provide national leadership for and administer the Soil and 
Water Resources Conservation Act of 1977 (16 U.S.C. 2001 et seq.).
    (ix) Administer the Rural Clean Water Program and other 
responsibilities assigned under section 35 of the Clean Water Act of 
1977 (33 U.S.C. 1251 et seq.).
    (x) Monitor actions and progress of USDA in complying with Executive 
Order 11988, Flood Plain Management, 3 CFR, 1977 Comp., p. 117, and 
Executive Order 11990, Protection of Wetlands, 3 CFR, 1977 Comp., p. 
121, regarding management of floodplains and protection of wetlands; 
monitor USDA efforts on protection of important agricultural, forest and 
rangelands; and provide staff assistance to the USDA Natural Resources 
and Environment Committee.
    (xi) Administer the search and rescue operations authorized under 7 
U.S.C. 2273.
    (xxii) Administer section 202(c) of the Colorado River Basin 
Salinity Control Act, 43 U.S.C. 1592(c), including:
    (A) Identify salt source areas and determine the salt load resulting 
from irrigation and watershed management practices;
    (B) Conduct salinity control studies of irrigated salt source areas;

[[Page 158]]

    (C) Provide technical and financial assistance in the implementation 
of salinity control projects including the development of salinity 
control plans, technical services for application, and certification of 
practice applications;
    (D) Develop plans for implementing measures that will reduce the 
salt load of the Colorado River;
    (E) Develop and implement long-term monitoring and evaluation plans 
to measure and report progress and accomplishments in achieving program 
objectives; and
    (F) Enter into and administer contracts with program participants 
and waive cost-sharing requirements when such cost-sharing requirements 
would result in a failure to proceed with needed on-farm measures.
    (xiii) Administer natural resources conservation authorities under 
title XII of the Food Security Act of 1985 (Act), as amended (16 U.S.C. 
3801 et seq.), including responsibilities for:
    (A) The conservation of highly erodible lands and wetlands pursuant 
to sections 1211-1223 of the Act (16 U.S.C. 3811-3823);
    (B) Technical assistance related to soil and water conservation 
technology for the implementation and administration of the Conservation 
Reserve Program authorized by sections 1231-1244 of the Act, as amended 
(16 U.S.C. 3831-3844);
    (C) The Environmental Easement Program authorized by sections 1239-
1239d of the Act (16 U.S.C. 3839-3839d);
    (D) The Agricultural Water Quality Improvement Program authorized by 
sections 1238-1238f of the Act, as amended (16 U.S.C. 3838-3838f); and
    (E) The Wetland Reserve Program and the Emergency Wetlands Reserve 
Program authorized by sections 1237-1237f of the Act, as amended (16 
U.S.C. 3837-3837f), and the Emergency Supplemental Appropriations for 
Relief From the Major, Widespread Flooding in the Midwest Act of 1993, 
Pub. L. No. 103-75.
    (xiv) Approve and transmit to the Congress comprehensive river basin 
reports.
    (xv) Provide representation on the Water Resources Council and river 
basin commissions created by 42 U.S.C. 1962, and on river basin 
interagency committees.
    (xvi) Jointly administer the Forestry Incentives Program with the 
Forest Service, in consultation with State Foresters, under section 4 of 
the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103).
    (xvii) Administer the Water Bank Program under the Water Bank Act 
(16 U.S.C. 1301 et seq.).
    (xviii) Administer water quality activities under the Agriculture 
and Water Policy Coordination Act, subtitle G, title XIV of the Food, 
Agriculture, Conservation, and Trade Act of 1990, as amended (7 U.S.C. 
5501-5505).
    (xix) Administer the Rural Environmental Conservation Program 
authorized by sections 1001-1010 of the Agriculture Act of 1970, as 
amended (16 U.S.C. 1501-1510).
    (xx) Coordinate USDA input and assistance to the Department of 
Commerce and other Federal agencies consistent with section 307 of the 
Coastal Zone Management Act of 1972 (16 U.S.C. 1456), and coordinate 
USDA review of qualifying state and local government coastal management 
plans or programs prepared under such Act and submitted to the Secretary 
of Commerce, consistent with section 306(a) and (c) of such Act (16 
U.S.C. 1455(a) and (c)).
    (4) Related to committee management. Establish and reestablish 
regional, state, and local advisory committees for activities under his 
or her authority. This authority may not be redelegated.
    (5) Related to defense and emergency preparedness. Administer 
responsibilities and functions assigned under the Defense Production Act 
of 1950, as amended (50 U.S.C. App. 2061 et seq.) and title VI of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5195 et seq.), relating to agricultural land and water, forests 
and forest products, rural fire defense, and forestry research.
    (6) Related to surface mining control and reclamation. Administer 
responsibilities and functions assigned to the Secretary of Agriculture 
under the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 
1201 et seq.).
    (7) Related to environmental response. (i) With respect to land and 
facilities under his or her authority, to exercise

[[Page 159]]

the functions delegated to the Secretary by Executive Order 12580, 3 
CFR, 1987 Comp., p. 193, and Executive Order 12777, 3 CFR, 1991 Comp., 
p. 351, to act as Federal trustee for natural resources in accordance 
with section 107(f) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9607(f)), section 
311(f)(5) of the Federal Water Pollution Control Act (33 U.S.C. 
1321(f)(5)), and section 1006(b)(2) of the Oil Pollution Act of 1990 (33 
U.S.C. 2706(b)(2)).
    (ii) With respect to land and facilities under his or her authority, 
to exercise the functions delegated to the Secretary by Executive Order 
12580, 3 CFR, 1987 Comp., p. 193, under the following provisions of the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (``the Act''), as amended:
    (A) Sections 104(a), (b), and (c)(4) of the Act (42 U.S.C. 9604(a), 
(b), and (c)(4)), with respect to removal and remedial actions in the 
event of release or threatened release of a hazardous substance, 
pollutant, or contaminant into the environment;
    (B) Sections 104(e)-(h) of the Act (42 U.S.C. 9604(e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance orders; compliance with Federal health and safety standards 
and wage and labor standards applicable to covered work; and emergency 
procurement powers;
    (C) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (D) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (E) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petitions for preliminary assessment of a 
release or threatened release;
    (F) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) of the 
Act pertaining to the annual report to Congress;
    (G) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (H) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect to 
the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (I) Section 113(g) of the Act (42 U.S.C. 9613(g)), with respect to 
receiving notification of a natural resource trustee's intent to file 
suit;
    (J) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon which to base the selection 
of a response action and identifying and notifying potentially 
responsible parties;
    (K) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (L) Section 117(a) and (c) of the Act (42 U.S.C. 9617(a) and (c)), 
with respect to public participation in the preparation of any plan for 
remedial action and explanation of variances from the final remedial 
action plan for any remedial action or enforcement action, including any 
settlement or consent decree entered into;
    (M) Section 119 of the Act (42 U.S.C. 9619), with respect to 
indemnifying response action contractors;
    (N) Section 121 of the Act (42 U.S.C. 9621), with respect to cleanup 
standards; and
    (O) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), relating to mixed funding agreements.
    (iii) With respect to land and facilities under his or her 
authority, to exercise the authority vested in the Secretary of 
Agriculture to act as the ``Federal Land Manager'' pursuant to the Clean 
Air Act, as amended (42 U.S.C. 7401 et seq.).
    (8) Related to compliance with environmental laws. With respect to 
facilities and activities under his or her authority, to exercise the 
authority of the Secretary of Agriculture pursuant to section 1-102 
related to compliance with applicable pollution control

[[Page 160]]

standards and section 1-601 of Executive Order 12088, 3 CFR, 1978 Comp., 
p. 243, to enter into an inter-agency agreement with the United States 
Environmental Protection Agency, or an administrative consent order or a 
consent judgment in an appropriate United States District Court with an 
appropriate State, interstate, or local agency, containing a plan and 
schedule to achieve and maintain compliance with applicable pollution 
control standards established pursuant to the following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, the Hazardous and Solid Waste Amendments, 
and the Federal Facility Compliance Act (42 U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).
    (b) The following authorities are reserved to the Secretary of 
Agriculture:
    (1) Related to natural resource conservation. Designation of new 
project areas in which the resource conservation and development program 
assistance will be provided.
    (2) [Reserved]



Sec. 2.21  Under Secretary for Research, Education, and Economics.

    (a) The following delegations of authority are made by the Secretary 
of Agriculture to the Under Secretary for Research, Education, and 
Economics.
    (1) Related to science and education. (i) Direct, coordinate and 
provide national leadership and support for research, extension and 
teaching programs in the food and agricultural sciences to meet major 
needs and challenges in development of new food and fiber; food and 
agriculture viability and competitiveness in the global economy; 
enhancing economic opportunities and quality of life for rural America; 
food and agricultural system productivity and development of new crops 
and new uses; the environment and natural resources; or the promotion of 
human health and welfare pursuant to the National Agricultural Research, 
Extension, and Teaching Policy of 1977, as amended (7 U.S.C. 3101 et 
seq.).
    (ii) Provide national leadership and support for research, 
extension, and teaching programs in the food and agricultural sciences 
to carry out sustainable agriculture research and education; a National 
Plant Genetic Resources Program; a national agricultural weather 
information system; research regarding the production, preparation, 
processing, handling, and storage of agricultural products; a Plant and 
Animal Pest and Disease Control Program; and any other provisions 
pursuant to title XVI of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (Pub. L. No. 101-624, 104 Stat. 3703), except the provisions 
relating to the USDA Graduate School in section 1669 and the provisions 
relating to alternative agricultural research and commercialization 
under sections 1657-1664 (7 U.S.C. 5801 et seq.).
    (iii) Coordinate USDA policy and conduct programs relative to the 
Federal Insecticide, Fungicide, and Rodenticide Act, as amended (7 
U.S.C. 136 et seq.) and coordinate the Department's Integrated Pest 
Management Programs and the Pesticide Assessment Program (7 U.S.C. 136-
136y).
    (iv) Carry out research, technology development, technology 
transfer, and demonstration projects related to the economic feasibility 
of the manufacture and commercialization of natural rubber from plants 
containing hydrocarbons (7 U.S.C. 178-178n).
    (v) Conduct research on the control of undesirable species of honey 
bees in cooperation with specific foreign governments (7 U.S.C. 284).
    (vi) Administer the appropriation for the endowment and maintenance 
of colleges for the benefit of agriculture

[[Page 161]]

and the mechanical arts (7 U.S.C. 321-326a).
    (vii) Administer teaching funds authorized by section 22 of the 
Bankhead Jones Act, as amended (7 U.S.C. 329).
    (viii) Administer a Cooperative Agricultural Extension Program in 
accordance with the Smith-Lever Act, as amended (7 U.S.C. 341-349).
    (ix) Cooperate with the States for the purpose of encouraging and 
assisting them in carrying out research related to the problems of 
agriculture in its broadest aspects under the Hatch Act, as amended (7 
U.S.C. 361a-361i).
    (x) Support agricultural research at eligible institutions in the 
States through the provision of Federal-grant funds to help finance 
physical research facilities (7 U.S.C. 390-390k).
    (xi) Conduct research concerning domestic animals and poultry, their 
protection and use, the causes of contagious, infectious, and 
communicable diseases, and the means for the prevention and cure of the 
same (7 U.S.C. 391).
    (xii) Conduct research related to the dairy industry and to the 
dissemination of information for the promotion of the dairy industry (7 
U.S.C. 402).
    (xiii) Conduct research and demonstrations at Mandan, ND, related to 
dairy livestock breeding, growing, and feeding, and other problems 
pertaining to the establishment of the dairy and livestock industries (7 
U.S.C. 421-422).
    (xiv) Conduct research on new uses for cotton and on cotton ginning 
and processing (7 U.S.C. 423-424).
    (xv) Administer and conduct research into the basic problems of 
agriculture in its broadest aspects, including, but not limited to, 
production, marketing (other than statistical and economic research but 
including research related to family use of resources), distribution, 
processing, and utilization of plant and animal commodities; problems of 
human nutrition; development of markets for agricultural commodities; 
discovery, introduction, and breeding of new crops, plants, and animals, 
both foreign and native; conservation development; and development of 
efficient use of farm buildings, homes, and farm machinery except as 
otherwise delegated in Sec. 2.22(a)(1)(ii) and Sec. 2.79(a)(2) (7 U.S.C. 
427, 1621-1627, 1629, 2201, and 2204).
    (xvi) Conduct research on varietal improvement of wheat and feed 
grains to enhance their conservation and environmental qualities (7 
U.S.C. 428b).
    (xvii) Advance the livestock and agricultural interests of the 
United States, including the breeding of horses suited to the needs of 
the United States (7 U.S.C. 437).
    (xviii) Enter into agreements with and receive funds from any State, 
other political subdivision, organization, or individual for the purpose 
of conducting cooperative research projects (7 U.S.C. 450a).
    (xix) Carry out a program (IR-4 Program) for the collection of 
residue and efficacy data in support of minor use pesticide registration 
or reregistration and to determine tolerances for minor use chemical 
residues in or on agricultural commodities (7 U.S.C. 450i).
    (xx) Administer and direct a program of competitive and special 
grants to State agricultural experiment stations, colleges and 
universities, other research institutions and organizations, Federal 
agencies, private organizations or corporations, and individuals and of 
facilities grants to State agricultural experiment stations and 
designated colleges and universities to promote research in food, 
agriculture and related areas (7 U.S.C. 450i).
    (xxi) Provide resource information concerning rural electric and 
telephone use and rural development efforts (7 U.S.C. 917).
    (xxii) Act as a catalyst to provide access to leadership training 
and services programs encompassing private, public, business, and 
government entities (7 U.S.C. 950aa-1).
    (xxiii) Conduct research related to soil and water conservation, 
engineering operations, and methods of cultivation to provide for the 
control and prevention of soil erosion (7 U.S.C. 1010 and 16 U.S.C. 
590a).
    (xxiv) Maintain four regional research laboratories and conduct 
research at such laboratories to develop new scientific, chemical, and 
technical uses and new and extended markets and outlets for farm 
commodities and products and the byproducts thereof (7 U.S.C. 1292).
    (xxv) Conduct a Special Cotton Research Program designed to reduce 
the

[[Page 162]]

cost of producing upland cotton in the United States (7 U.S.C. 1441 
note).
    (xxvi) Conduct a research and development program to formulate new 
uses for farm and forest products (7 U.S.C. 1632(b)).
    (xxvii) Conduct research to develop and determine methods for the 
humane slaughter of livestock (7 U.S.C. 1904).
    (xxviii) Administer a competitive grant program for non- profit 
institutions to establish and operate centers for rural technology or 
cooperative development (7 U.S.C. 1932(f)).
    (xxix) Administer a Nutrition Education Program for Food Stamp 
recipients and for the distribution of commodities on reservations (7 
U.S.C. 2020(f)).
    (xxx) Conduct education and extension programs and a pilot project 
related to nutrition education (7 U.S.C. 2027(a) and 5932).
    (xxxi) Provide for the dissemination of appropriate rural health and 
safety information resources possessed by the Rural Information Center, 
in cooperation with State educational program efforts (7 U.S.C. 2662).
    (xxxii) Develop and maintain national and international library and 
information systems and networks and facilitate cooperation and 
coordination of the agricultural libraries of colleges, universities, 
USDA, and their closely allied information gathering and dissemination 
units in conjunction with private industry and other research libraries 
(7 U.S.C. 2201, 2204, 3125a, and 3126).
    (xxxiii) Accept gifts and order disbursements from the Treasury for 
carrying out of National Agricultural Library (NAL) functions (7 U.S.C. 
2264-2265).
    (xxxiv) Propagate bee-breeding stock and release bee germplasm to 
the public (7 U.S.C. 283).
    (xxxv) Administer, in cooperation with the States, a Cooperative 
Rural Development and Small Farm Research and Extension Program under 
the Rural Development Act of 1972, as amended (7 U.S.C. 2661-2667).
    (xxxvi) Administer a cooperative extension program under the Farmer-
to-Consumer Direct Marketing Act of 1976 (7 U.S.C. 3004).
    (xxxvii) Coordinate the development and carrying out by Department 
agencies of all matters and functions pertaining to agricultural 
research conducted or funded by the Department involving biotechnology, 
including the development and implementation of guidelines for oversight 
of research activities, acting as liaison on all matters and functions 
pertaining to agricultural research in biotechnology between agencies 
within the Department and between the Department and other governmental, 
educational, or private organizations and carrying out any other 
activities authorized by (7 U.S.C. 3121).
    (xxxviii) Establish a Joint Council on Food and Agricultural 
Sciences to bring about more effective research, extension, and teaching 
in the food and agricultural sciences (7 U.S.C. 3122).
    (xxxix) Establish and oversee the National Agricultural Research and 
Extension Users Advisory Board and the Agricultural Science and 
Technology Review Board (7 U.S.C. 3123 and 3123A).
    (xl) Provide and distribute information and data about Federal, 
State, local, and other Rural Development Assistance Programs and 
services available to individuals and organizations. To the extent 
possible, NAL shall use telecommunications technology to disseminate 
such information to rural areas (7 U.S.C. 3125b).
    (xli) Assemble and collect food and nutrition educational material, 
including the results of nutrition research, training methods, 
procedures, and other materials related to the purposes of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977, as 
amended; maintain such information; and provide for the dissemination of 
such information and materials on a regular basis to State educational 
agencies and other interested parties (7 U.S.C. 3126).
    (xlii) Conduct programs related to composting research and extension 
(7 U.S.C. 3130).
    (xliii) Conduct a program of grants to States to expand, renovate, 
or improve schools of veterinary medicine (7 U.S.C. 3151).
    (xliv) Formulate and administer higher education programs in the 
food

[[Page 163]]

and agricultural sciences and administer grants to colleges and 
universities (7 U.S.C. 3152).
    (xlv) Administer the National Food and Agricultural Sciences 
Teaching Awards Program for recognition of educators in the food and 
agricultural sciences (7 U.S.C. 3152).
    (xlvi) Administer the National Agricultural Science Award for 
research or advanced studies in the food and agricultural sciences (7 
U.S.C. 3153).
    (xlvii) Administer grants to colleges, universities, and Federal 
laboratories for research on the production and marketing of alcohols 
and industrial hydrocarbons from agricultural commodities and forest 
products (7 U.S.C. 3154).
    (xlviii) Establish a national food science and research center for 
the Southeast Region of the United States and administer a National Food 
and Human Nutrition Research and Extension Program under the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977, as 
amended (7 U.S.C. 3171-3175).
    (xlix) Administer and direct an Animal Health and Disease Research 
Program under the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977, as amended (7 U.S.C. 3191-3201).
    (l) Support continuing agricultural and forestry extension and 
research, resident instruction, and facilities improvement at 1890 land-
grant colleges, including Tuskegee University, and administer a grant 
program for five National Research and Training Centennial Centers (7 
U.S.C. 3221, 3222, and 3222a-3222c).
    (li) Support agricultural research at the 1890 land-grant colleges, 
including Tuskegee University, through Federal-grant funds to help 
finance physical facilities (7 U.S.C. 3223).
    (lii) Make grants, under such terms and conditions as the Under 
Secretary determines, to eligible institutions for the purpose of 
assisting such institutions in the purchase of equipment and land, and 
the planning, construction, alteration, or renovation of buildings, to 
provide adequate facilities to conduct extension work, and issue rules 
and regulations as necessary to carry out this authority (7 U.S.C. 
3224).
    (liii) Provide policy direction and coordinate the Department's work 
with national and international institutions and other persons 
throughout the world in the performance of agricultural science, 
education and development activities (7 U.S.C. 3291).
    (liv) Administer grants to States in support of the establishment 
and operation of International Trade Development Centers (7 U.S.C. 
3292).
    (lv) Conduct program evaluations to improve the administration and 
effectiveness of agricultural research, extension, and teaching programs 
(7 U.S.C. 3317).
    (lvi) Enter into contracts, grants, or cooperative agreements to 
further research, extension, or teaching programs in the food and 
agriculture sciences (7 U.S.C. 3318).
    (lvii) Enter into cost-reimbursable agreements with State 
cooperative institutions for the acquisition of goods or services in 
support of research, extension, or teaching activities in the food and 
agricultural sciences, including the furtherance of library and related 
information programs (7 U.S.C. 3319a).
    (lviii) Conduct research and develop and implement a pilot project 
program for the development of supplemental and alternative crops (7 
U.S.C. 3319d).
    (lix) Administer an Aquaculture Assistance Program, involving 
centers, by making grants to eligible institutions for research and 
extension to facilitate or expand production and marketing of 
aquacultural food species and products; making grants to States to 
formulate aquaculture development plans for the production and marketing 
of aquacultural species and products; conducting a program of research, 
extension and demonstration at aquacultural demonstration centers; and 
making grants to aquaculture research facilities to do research on 
intensive water recirculating systems (7 U.S.C. 3321-3323).
    (lx) Administer a Cooperative Rangeland Research Program (7 U.S.C. 
3331-3336).
    (lxi) Conduct a program of basic research on cancer in animals and 
birds (7 U.S.C. 3902).

[[Page 164]]

    (lxii) Design and implement educational programs and distribute 
materials in cooperation with the cooperative extension services of the 
States emphasizing the importance of productive farmland, and designate 
a farmland information center, pursuant to section 1544 of the Farmland 
Protection Policy Act (7 U.S.C. 4205).
    (lxiii) Conduct programs of education, extension, and research 
related to water quality, agrichemicals and nutrient management (7 
U.S.C. 5503-5506).
    (lxiv) Administer programs and conduct projects for research, 
extension, and education on sustainable agriculture (7 U.S.C. 5811-
5813).
    (lxv) Conduct research and cooperative extension programs to 
optimize crop and livestock production potential, integrated resource 
management, and integrated crop management (7 U.S.C. 5821).
    (lxvi) Design, implement, and develop handbooks, technical guides, 
and other educational materials emphasizing sustainable agriculture 
production systems and practices (7 U.S.C. 5831).
    (lxvii) Administer a competitive grant program to organizations to 
carry out a training program on sustainable agriculture (7 U.S.C. 5832).
    (lxviii) Administer a national research program on genetic resources 
to provide for the collection, preservation, and dissemination of 
genetic material important to American food and agriculture production 
(7 U.S.C. 5841-5844).
    (lxix) Conduct remote-sensing and other weather-related research (7 
U.S.C. 5852).
    (lxx) Establish an Agricultural Weather Office and administer a 
national agricultural weather information system, including a 
competitive grants program for research in atmospheric sciences and 
climatology (7 U.S.C. 5852-5853).
    (lxxi) Administer a research and extension grant program to States 
to administer programs for State agricultural weather information 
systems (7 U.S.C. 5854).
    (lxxii) Administer grants and conduct research programs to measure 
microbiological and chemical agents associated with the production, 
preparation, processing, handling, and storage of agricultural products 
(7 U.S.C. 5871-5874).
    (lxxiii) Administer and conduct research and extension programs on 
integrated pest management, including research to benefit floriculture 
(7 U.S.C. 5881).
    (lxxiv) Establish a National Pesticide Resistance Monitoring Program 
and disseminate information on materials and methods of pest and disease 
control available to agricultural producers through the pest and disease 
control database (7 U.S.C. 5882).
    (lxxv) Administer and conduct research and grant programs on the 
control and eradication of exotic pests (7 U.S.C. 5883).
    (lxxvi) Conduct research and educational programs to study the 
biology and behavior of chinch bugs (7 U.S.C. 5884).
    (lxxvii) Administer research programs and grants for risk assessment 
research to address concerns about the environmental effects of 
biotechnology (7 U.S.C. 5921).
    (lxxviii) Administer a special grants program to assist efforts by 
research institutions to improve the efficiency and efficacy of safety 
and inspection systems for livestock products (7 U.S.C. 5923).
    (lxxix) Establish and coordinate USDA grant programs and conduct 
basic and applied research and technology development in the areas of 
plant genome structure and function (7 U.S.C. 5924).
    (lxxx) Administer research and extension grants for the development 
of agricultural production and marketing systems to service niche 
markets (7 U.S.C. 5925).
    (lxxxi) Administer a grants program to States on immunoassay as it 
is used to detect agricultural pesticide residues on agricultural 
commodities and to diagnose plant and animal diseases (7 U.S.C. 5925).
    (lxxxii) Conduct research programs for the development of technology 
to determine animal lean content (7 U.S.C. 5925).
    (lxxxiii) Conduct and support research programs to determine the 
presence of aflatoxin in the food and feed chains (7 U.S.C. 5925).

[[Page 165]]

    (lxxxiv) Administer grants and conduct research programs to develop 
production methods and commercial uses for mesquite (7 U.S.C. 5925).
    (lxxxv) Administer grants and conduct research programs to 
investigate enhanced genetic selection and processing techniques of 
prickly pears (7 U.S.C. 5925).
    (lxxxvi) Conduct a research program and administer grants and 
contracts for research on the disease of scrapie in sheep and goats (7 
U.S.C. 5925).
    (lxxxvii) Support and conduct basic and applied research in the 
development of new commercial products from natural plant materials for 
industrial, medical, and agricultural applications (7 U.S.C. 5925).
    (lxxxviii) Establish and administer a program for the development 
and utilization of an agricultural communications network (7 U.S.C. 
5926).
    (lxxxix) Establish an Agricultural Research Facilities Planning and 
Closure Study Commission to review currently operating and planned 
facilities, and to develop recommendations (7 U.S.C. 5927).
    (xc) Administer research programs to establish national centers for 
agricultural product quality research (7 U.S.C. 5928).
    (xci) Administer education programs on Indian reservations and 
tribal jurisdictions (7 U.S.C. 5930).
    (xcii) Administer a special grants program to study constraints on 
agricultural trade (7 U.S.C. 5931).
    (xciii) Administer a demonstration grants program for support of an 
assistive technology program for farmers with disabilities (7 U.S.C. 
5933).
    (xciv) Conduct research on diseases affecting honeybees (7 U.S.C. 
5934).
    (xcv) Control within USDA the acquisition, use, and disposal of 
material and equipment that may be a source of ionizing radiation 
hazard.
    (xcvi) Conduct programs of research, technology development, and 
education related to global climate change (7 U.S.C. 6701-6710).
    (xcvii) Administer the Small Business Innovation Development Act of 
1982 for USDA (15 U.S.C. 638(e)-(k)).
    (xcviii) Coordinate Departmental policies under the Toxic Substance 
Control Act (15 U.S.C. 2601-2629).
    (xcix) Provide educational and technical assistance in implementing 
and administering the Conservation Reserve Program authorized in 
sections 1231-1244 of the Food Security Act of 1985 (Pub. L. No. 99-198, 
99 Stat. 1509 (16 U.S.C. 3831-3844)).
    (c) Enter into cooperative research and development agreements with 
industry, universities, and others; institute a cash award program to 
reward scientific, engineering, and technical personnel; award royalties 
to inventors; and retain and use royalty income (15 U.S.C. 3710a-3710c).
    (ci) Coordinate USDA activities delegated under 15 U.S.C. 3710a-
3710c.
    (cii) Conduct educational and demonstrational work in Cooperative 
Farm Forestry Programs (16 U.S.C. 568).
    (ciii) Cooperate with the States for the purposes of encouraging and 
assisting them in carrying out programs of forestry, natural resources, 
and environmental research (16 U.S.C. 582a-8).
    (civ) Establish and administer the Forestry Student Grant Program to 
provide competitive grants to assist the expansion of the professional 
education of forestry, natural resources, and environmental scientists 
(16 U.S.C. 1649).
    (cv) Provide for an expanded and comprehensive extension program for 
forest and rangeland renewable resources (16 U.S.C. 1671-1676).
    (cvi) Provide technical, financial, and educational assistance to 
State foresters and State extension directors on rural forestry 
assistance (16 U.S.C. 2102).
    (cvii) Provide educational assistance to State foresters under the 
Forest Stewardship Program (16 U.S.C. 2103a).
    (cviii) Implement and conduct an educational program to assist the 
development of Urban and Community Forestry Programs (16 U.S.C. 2105).
    (cix) Provide staff support to the Secretary of Agriculture in his 
or her role as permanent Chair for the Joint Subcommittee on Aquaculture 
established by the National Aquaculture Act of 1980 and coordinate 
aquacultural activities within the Department (16 U.S.C. 2805).
    (cx) Perform research, development, and extension activities in 
aquaculture (16 U.S.C. 2804 and 2806).

[[Page 166]]

    (cxi) Provide educational assistance to farmers regarding the 
Agricultural Water Quality Protection Program (16 U.S.C. 3838b).
    (cxii) Copy and deliver on demand selected articles and other 
materials from the Department's collections by photographic reproduction 
or other means within the permissions, constraints, and limitations of 
sections 106, 107, and 108 of the Copyright Act of October 19, 1976, (17 
U.S.C. 106, 107, and 108).
    (cxiii) Authorize the use of the 4-H Club name and emblem (18 U.S.C. 
707).
    (cxiv) Maintain a National Arboretum for the purposes of research 
and education concerning tree and plant life; accept and administer 
gifts or devices or real and personal property for the benefit of the 
National Arboretum; and order disbursements from the Treasury (20 U.S.C. 
191-195).
    (cxv) Conduct research on foot-and-mouth disease and other animal 
diseases (21 U.S.C. 113a).
    (cxvi) Conduct research on the control and eradication of cattle 
grubs (screwworms) (21 U.S.C. 114e).
    (cxvii) Obtain and furnish Federal excess property to eligible 
recipients for use in the conduct of research and extension programs (40 
U.S.C. 483(d)(2)).
    (cxviii) Conduct research demonstration and promotion activities 
related to farm dwellings and other buildings for the purposes of 
reducing costs and adapting and developing fixtures and appurtenances 
for more efficient and economical farm use (42 U.S.C. 1476(b)).
    (cxix) Carry out research, demonstration, and educational activities 
authorized in section 202(c) of the Colorado River Basin Salinity 
Control Act (43 U.S.C. 1592(c)).
    (cxx) Conduct research on losses of livestock in interstate commerce 
due to injury or disease (45 U.S.C. 71 note).
    (cxxi) Administer a Cooperative Agricultural Extension Program 
related to agriculture, uses of solar energy with respect to 
agriculture, and home economics in the District of Columbia (D.C. Code 
31-1409).
    (cxxii) Provide leadership and direct assistance in planning, 
conducting and evaluating extension programs under a memorandum of 
agreement with the Bureau of Indian Affairs dated May 1956.
    (cxxiii) Exercise the responsibilities of the Secretary under 
regulations dealing with Equal Employment Opportunity in the Cooperative 
Extension Service (part 18 of this title).
    (cxxiv) Represent the Department on the Federal Interagency Council 
on Education.
    (cxxv) Assure the acquisition, preservation, and accessibility of 
all information concerning food and agriculture by providing leadership 
to and coordination of the acquisition programs and related activities 
of the library and information systems, with the agencies of USDA, other 
Federal departments and agencies, State agricultural experiment 
stations, colleges and universities, and other research institutions and 
organizations.
    (cxxvi) Formulate, write, or prescribe bibliographic and technically 
related standards for the library and information services of USDA.
    (cxxvii) Determine by survey or other appropriate means, the 
information needs of the Department's scientific, professional, 
technical, and administrative staffs, its constituencies, and the 
general public in the areas of food, agriculture, the environment, and 
other related areas.
    (cxxviii) Represent the Department on all library and information 
science matters before Congressional Committees and appropriate 
commissions, and provide representation to the coordinating committees 
of the Federal and State governments concerned with library and 
information science activities.
    (cxxix) Represent the Department in international organizational 
activities and on international technical committees concerned with 
agricultural science, education, and development activities, including 
library and information science activities.
    (cxxx) Prepare and disseminate computer files, indexes and 
abstracts, bibliographies, reviews, and other analytical information 
tools.
    (cxxxi) Arrange for the consolidated purchasing and dissemination of 
printed and automated indexes, abstracts, journals, and other widely 
used information resources and services.

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    (cxxxii) Provide assistance and support to professional 
organizations and others concerned with library and information science 
matters and issues.
    (cxxxiii) Pursuant to the authority delegated by the Administrator 
of General Services to the Secretary of Agriculture in 34 FR 6406, 36 FR 
1293, 36 FR 18440, and 38 FR 23838, appoint uniformed armed guards and 
special policemen, make all needful rules and regulations, and annex to 
such rules and regulations such reasonable penalties (not to exceed 
those prescribed in 40 U.S.C. 318(c), as will ensure their enforcement, 
for the protection of persons, property, buildings, and grounds of the 
Arboretum, Washington, DC; the U.S. Meat Animal Research Center, Clay 
Center, NE; the Agricultural Research Center, Beltsville, MD; and the 
Animal Disease Center, Plum Island, NY, over which the United States has 
exclusive or concurrent criminal jurisdiction, in accordance with the 
limitations and requirements of the Federal Property and Administrative 
Services Act of 1949, as amended (40 U.S.C. 471 et seq.), the Act of 
June 1, 1948, as amended (40 U.S.C. 318 et seq.), and the policies, 
procedures, and controls prescribed by the General Services 
Administration. Any rules or regulations promulgated under this 
authority shall be approved by the Director, Office of Operations, and 
the General Counsel prior to issuance.
    (cxxxiv) Represent the Department on the Federal Coordinating 
Council for Science, Engineering, and Technology.
    (cxxxv) Administer the Department's Patent Program except as 
delegated to the General Counsel in Sec. 2.31(e).
    (cxxxvi) Review cooperative research and development agreements 
entered into pursuant to 15 U.S.C. 3710a-3710c, with authority to 
disapprove or require the modification of any such agreement.
    (2) Related to committee management. Establish or reestablish 
regional, state and local advisory committees for the activities 
authorized. This authority may not be redelegated.
    (3) Related to defense and emergency preparedness. Administer the 
responsibilities and functions assigned under the Defense Production Act 
of 1950, as amended (50 U.S.C. App. 2061 et seq.), and title VI of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5195 et seq.), concerning scientific and educational programs; 
estimates of supplies of agricultural commodities and evaluation of 
requirements therefor; coordination of damage assessment; food and 
agricultural aspects of economic stabilization, economic research, and 
agricultural statistics; and the coordination of energy programs.
    (4) Related to rural development activities. Provide guidance and 
direction for the accomplishment of activities authorized under the 
Rural Development Act of 1972, as amended (7 U.S.C. 1921 et seq.), for 
programs under the control of the Under Secretary for Research, 
Education, and Economics, coordinating the policy aspects thereof with 
the Under Secretary for Rural Economic and Community Development.
    (5) Related to environmental response. With respect to land and 
facilities under his or her authority, exercise the functions delegated 
to the Secretary by Executive Order 12580, 3 CFR, 1987 Comp., p. 193, 
under the following provisions of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (``the Act''), as 
amended:
    (i) Sections 104 (a), (b), and (c)(4) of the Act (42 U.S.C. 9604 
(a), (b), and (c)(4)), with respect to removal and remedial actions in 
the event of release or threatened release of a hazardous substance, 
pollutant, or contaminant into the environment;
    (ii) Sections 104(e)-(h) of the Act (42 U.S.C. 9604(e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards and wage and labor 
standards applicable to covered work; and emergency procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;

[[Page 168]]

    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petitions for preliminary assessment of a 
release or threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) 
pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (ix) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon which to base the selection 
of a response action and identifying and notifying potentially 
responsible parties;
    (x) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xi) Sections 117 (a) and (c) of the Act (42 U.S.C. 9617 (a) and 
(c)), with respect to public participation in the preparation of any 
plan for remedial action and explanation of variances from the final 
remedial action plan for any remedial action or enforcement action, 
including any settlement or consent decree entered into;
    (xii) Section 119 of the Act (42 U.S.C. 9119), with respect to 
indemnifying response action contractors;
    (xiii) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xiv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), related to mixed funding agreements.
    (6) Related to compliance with environmental laws. With respect to 
facilities and activities under his or her authority, to exercise the 
authority of the Secretary of Agriculture pursuant to section 1-102 
related to compliance with applicable pollution control standards and 
section 1-601 of Executive Order 12088, 3 CFR, 1978 Comp., p. 243, to 
enter into an inter-agency agreement with the United States 
Environmental Protection Agency, or an administrative consent order or a 
consent judgment in an appropriate State, interstate, or local agency, 
containing a plan and schedule to achieve and maintain compliance with 
applicable pollution control standards established pursuant to the 
following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, as further amended by the Hazardous and 
Solid Waste Amendments, and the Federal Facility Compliance Act (42 
U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).
    (7) Related to national food and human nutrition research. (i) 
Administer a National Food and Human Nutrition Research Program under 
the National Agricultural Research, Extension, and Teaching Policy Act 
of 1977, as amended. As used herein the term ``research'' includes:
    (A) Research on the nutrient composition of foods and the effects of 
agricultural practices, handling, food processing, and cooking on the 
nutrients they contain;
    (B) Surveillance of the nutritional benefits provided to 
participants in the food programs administered by the Department; and
    (C) Research on the factors affecting food preference and habits (7 
U.S.C. 3171-3175, 3177).

[[Page 169]]

    (ii) The authority in paragraph (a)(7)(i) of this section includes 
the authority to:
    (A) Appraise the nutritive content of the U.S. food supply;
    (B) Develop and make available data on the nutrient composition of 
foods needed by Federal, State, and local agencies administering food 
and nutrition programs, and the general public, to improve the 
nutritional quality of diets;
    (C) Coordinate nutrition education research projects within the 
Department; and
    (D) Maintain data generated on food composition in a National 
Nutrient Data Bank.
    (iii) Conduct, in cooperation with the Department of Health and 
Human Services, the National Nutrition Monitoring and Related Research 
Program. Included in this delegation is the authority to:
    (A) Design and carry out periodic nationwide food consumption 
surveys to measure household food consumption;
    (B) Design and carry out a continuous, longitudinal individual 
intake survey of the United States population and special high-risk 
groups; and
    (C) Design and carry out methodological research studies to develop 
improved procedures for collecting household and individual food intake 
consumption data;
    (iv) Conduct a program of nutrition education research.
    (v) Co-chair with the Assistant Secretary for Health, Department of 
Health and Human Services, the Interagency Board for Nutrition 
Monitoring and Related Research for the development and coordination of 
a Ten-Year Comprehensive Plan as required by Pub. L. No. 101-445, 7 
U.S.C. 5301 et seq.
    (8) Related to economic research and statistical reporting. (i) 
Conduct economic research on matters of importance to cooperatives as 
authorized by the Agricultural Marketing Act of 1946 (7 U.S.C. 1621-
1627).
    (ii) Conduct economic and social science research and analyses 
relating to:
    (A) food and agriculture situation and outlook;
    (B) the production, marketing, and distribution of food and fiber 
products (excluding forest and forest products), including studies of 
the performance of the food and agricultural sector of the economy in 
meeting needs and wants of consumers;
    (C) basic and long-range, worldwide, economic analyses and research 
on supply, demand, and trade in food and fiber products and the effects 
on the U.S. food and agriculture system, including general economic 
analyses of the international financial and monetary aspects of 
agricultural affairs;
    (D) natural resources, including studies of the use and management 
of land and water resources, the quality of these resources, resource 
institutions, and watershed and river basin development problems; and
    (E) rural people and communities, as authorized by title II of the 
Agricultural Marketing Act of 1946, as amended (7 U.S.C. 1621-1627), and 
the Act of June 29, 1935, as amended (7 U.S.C. 427).
    (iii) Perform economic and other social science research under 
section 104(b)(1) and (3) of the Agricultural Trade Development and 
Assistance Act of 1954, as amended, with funds administered by the 
Foreign Agricultural Service (7 U.S.C. 1704).
    (iv) Prepare crop and livestock estimates and administer reporting 
programs, including estimates of production, supply, price, and other 
aspects of the U.S. agricultural economy, collection of statistics, 
conduct of enumerative and objective measurement surveys, construction 
and maintenance of sampling frames, and related activities. Prepare 
reports of the Agricultural Statistics Board of the Department of 
Agriculture covering official state and national estimates (7 U.S.C. 
411a, 475, 476, 951, and 2204).
    (v) Take such security precautions as are necessary to prevent 
disclosure of crop or livestock report information prior to the 
scheduled issuance time approved in advance by the Secretary of 
Agriculture and take such actions as are necessary to avoid disclosure 
of confidential data or information supplied by any person, firm, 
partnership, corporation, or association (18 U.S.C. 1902, 1903, and 
2072).
    (vi) Improve statistics in the Department; maintain liaison with OMB 
and

[[Page 170]]

other Federal agencies for coordination of statistical methods and 
techniques.
    (vii) Investigate and make findings as to the effect upon the 
production of food and upon the agricultural economy of any proposed 
action pending before the Administrator of the Environmental Protection 
Agency for presentation in the public interest, before said 
Administrator, other agencies, or before the courts.
    (viii) Review economic data and analyses used in speeches by 
Department personnel and in materials prepared for release through the 
press, radio, and television.
    (ix) Coordinate all economic analysis and review all decisions 
involving substantial economic policy implications.
    (x) Cooperate and work with national and international institutions 
and other persons throughout the world in the performance of 
agricultural research and extension activities to promote and support 
the development of a viable and sustainable global and agricultural 
system. Such work may be carried out by:
    (A) Exchanging research materials and results with the institutions 
or persons;
    (B) Engaging in joint or coordinated research;
    (C) Entering into cooperative arrangements with Departments and 
Ministries of Agriculture in other nations to conduct research, 
extension; and education activities (limited to arrangements either 
involving no exchange of funds or involving disbursements by the agency 
to the institutions of other nations), and then reporting these 
arrangements to the Secretary of Agriculture;
    (D) Stationing representatives at such institutions or organizations 
in foreign countries; or
    (E) Entering into agreements with land-grant colleges and 
universities, other organizations, institutions, or individuals with 
comparable goals, and with the concurrence of the Foreign Agricultural 
Service, USDA, international organizations (limited to agreements either 
involving no exchange of funds or involving disbursements by the agency 
to the cooperator), and then reporting these agreements to the Secretary 
of Agriculture (7 U.S.C. 3291(a)).
    (xi) Prepare for transmittal by the Secretary to the President and 
both Houses of Congress, an analytical report under section 5 of the 
Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3504) 
concerning the effect on family farms and rural communities of holdings, 
acquisitions, and transfers of U.S. agricultural land by foreign 
persons.
    (xii) Enter into contracts, grants, or cooperative agreements to 
further research and statistical reporting programs in the food and 
agricultural sciences (7 U.S.C. 3318).
    (xiii) Enter into cost-reimbursable agreements relating to 
agricultural research and statistical reporting (7 U.S.C. 3319a).
    (9) Related to energy. (i) Advise the Secretary and other policy-
level officials of the Department on energy policies and programs, 
including legislative and budget proposals.
    (ii) Serve as or designate the Department representative at 
hearings, conferences, meetings and other contacts with respect to 
energy and energy-related matters, including liaison with the Department 
of Energy and other governmental agencies and departments.
    (iii) Provide Department leadership in:
    (A) Analyzing and evaluating existing and proposed energy policies 
and strategies, including those regarding the allocation of scarce 
resources;
    (B) Developing energy policies and strategies, including those 
regarding the allocation of scarce resources;
    (C) Reviewing and evaluating Departmental energy and energy-related 
programs and program progress;
    (D) Developing agricultural and rural components of national energy 
policy plans; and
    (E) Preparing reports on energy and energy-related policies and 
programs required under Acts of Congress and Executive orders, including 
those involving testimony and reports on legislative proposals.
    (iv) Provide Departmental oversight and coordination with respect to 
resources available for energy and energy-related activities, including 
funds

[[Page 171]]

transferred to USDA from other departments or agencies of the Federal 
Government pursuant to interagency agreements.
    (v) These delegations exclude the energy management actions related 
to the internal operations of the Department as delegated to the 
Assistant Secretary for Administration.
    (10) Related to immigration. Serve as the designee of the Secretary 
pursuant to section 212(e) of the Immigration and Nationality Act, as 
amended, 8 U.S.C. 1182(e) and 22 CFR 514.44(c)).
    (b) The following authorities are reserved to the Secretary of 
Agriculture:
    (1) Related to science and education. (i) Withhold funds from States 
and sending notification thereof to the President in accordance with 
sections 5 and 6 of the Smith-Lever Act, as amended (7 U.S.C. 345-346), 
sections 5 and 7 of the Hatch Act, as amended (7 U.S.C. 361 (e) and 
(g)), and sections 1436, 1444, 1445 and 1468 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977, as 
amended (7 U.S.C. 3198, 3221, 3222 and 3314).
    (ii) Reapportion funds under section 4 and apportion funds under 
section 5 of the Act of October 10, 1962 (16 U.S.C. 582a-3, 582a-5).
    (iii) Appoint an advisory committee under section 6 of the Act of 
October 10, 1962 (16 U.S.C. 582a-4).
    (iv) Final concurrence in Equal Employment Opportunity Programs 
within the cooperative extension programs submitted under part 18 of 
this title.
    (v) Approve selection of State directors of extension.
    (vi) Approve the memoranda of understanding between the land-grant 
universities and USDA related to cooperative extension programs.
    (2) Related to economic research and statistical reporting. (i) 
Final approval and issuance of the monthly crop report (7 U.S.C. 411a).
    (ii) Final action on rules and regulations for the Agricultural 
Statistics Board.



Sec. 2.22  Assistant Secretary for Marketing and Regulatory Programs.

    (a) The following delegations of authority are made by the Secretary 
of Agriculture to the Assistant Secretary for Marketing and Regulatory 
Programs:
    (1) Related to agricultural marketing. (i) Exercise the functions of 
the Secretary of Agriculture contained in the Agricultural Marketing Act 
of 1946, as amended (7 U.S.C. 1621-1627), including payments to State 
Departments of Agriculture in connection with cooperative marketing 
service projects under section 204(b) (7 U.S.C. 1623(b)), but excepting 
matters otherwise assigned.
    (ii) Conduct marketing efficiency research and development 
activities directly applicable to the conduct of the Wholesale Market 
Development Program, specifically:
    (A) Studies of facilities and methods used in physical distribution 
of food and other farm products;
    (B) Studies designed to improve handling of all agricultural 
products as they are moved from farms to consumers; and
    (C) application of presently available scientific knowledge to the 
solution of practical problems encountered in the marketing of 
agricultural products (7 U.S.C. 1621-1627).
    (iii) Exercise the functions of the Secretary of Agriculture 
relating to the transportation activities contained in section 203(j) of 
the Agricultural Marketing Act of 1946 (7 U.S.C. 1622(j)) as amended, 
but excepting matters otherwise assigned.
    (iv) Administer transportation activities under section 201 of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1291).
    (v) Apply results of economic research and operations analysis to 
evaluate transportation issues and to recommend revisions of current 
procedures.
    (vi) Serve as the focal point for all Department transportation 
matters including development of policies and strategies.
    (vii) Cooperate with other Departmental agencies in the development 
and recommendation of policies for inland transportation of USDA and 
CCC-owned commodities in connection with USDA programs.
    (viii) Exercise the functions of the Secretary of Agriculture 
contained in the following legislation:

[[Page 172]]

    (A) U.S. Cotton Standards Act (7 U.S.C. 51-65);
    (B) Cotton futures provisions of the Internal Revenue Code of 1954 
(26 U.S.C. 4854, 4862-4865, 4876, and 7263);
    (C) Cotton Statistics and Estimates Act, as amended (7 U.S.C. 471-
476), except as otherwise assigned;
    (D) Naval Stores Act (7 U.S.C. 91-99);
    (E) Tobacco Inspection Act (7 U.S.C. 511-511q);
    (F) Wool Standard Act (7 U.S.C. 415b-415d);
    (G) Agricultural Marketing Agreement Act of 1937, as amended (7 
U.S.C. 601, 602, 608a-608e, 610, 612, 614, 624, 671-674);
    (H) Cotton Research and Promotion Act (7 U.S.C. 2101-2118), except 
as delegated to the Under Secretary for Farm and Foreign Agricultural 
Services in Sec. 2.16(a)(3)(x);
    (I) Export Apple and Pear Act (7 U.S.C. 581-590);
    (J) Export Grape and Plum Act (7 U.S.C. 591-599);
    (K) Titles I, II, IV, and V of the Federal Seed Act, as amended (7 
U.S.C. 1551-1575, 1591-1611);
    (L) Perishable Agricultural Commodities Act (7 U.S.C. 499a-499s);
    (M) Produce Agency Act (7 U.S.C. 491-497);
    (N) Tobacco Seed and Plant Exportation Act (7 U.S.C. 516-517);
    (O) Tobacco Statistics Act (7 U.S.C. 501-508);
    (P) Section 401(a) of the Organic Act of 1944 (7 U.S.C. 415e);
    (Q) Agricultural Fair Practices Act (7 U.S.C. 2301-2306);
    (R) Wheat Research and Promotion Act (7 U.S.C. 1292 note), except as 
delegated to the Under Secretary for Farm and Foreign Agricultural 
Services in Sec. 2.16(a)(3)(x);
    (S) Plant Variety Protection Act (7 U.S.C. 2321-2331, 2351-2357, 
2371-2372, 2401-2404, 2421-2427, 2441-2443, 2461-2463, 2481-2486, 2501-
2504, 2531-2532, 2541-2545, 2561-2569, 2581-2583), except as delegated 
to the Judicial Officer;
    (T) Subtitle B of title I and section 301(4) of the Dairy and 
Tobacco Adjustment Act of 1983 (7 U.S.C. 4501-4513, 4514(4)), except as 
delegated to the Under Secretary for Farm and Foreign Agricultural 
Services in Sec. 2.16(a)(3)(x);
    (U) Potato Research and Promotion Act (7 U.S.C. 2611-2627), except 
as delegated to the Under Secretary for Farm and Foreign Agricultural 
Services in Sec. 2.16(a)(3)(x);
    (V) [Reserved]
    (W) Egg Research and Consumer Information Act (7 U.S.C. 2701-2718), 
except as delegated to the Under Secretary for Farm and Foreign 
Agricultural Services in Sec. 2.16(a)(3)(x);
    (X) Beef Research and Information Act, as amended (7 U.S.C. 2901-
2918), except as delegated to the Under Secretary for Farm and Foreign 
Agricultural Services in Secs. 2.16(a)(1)(xiv) and (a)(3)(x);
    (Y) Wheat and Wheat Foods Research and Nutrition Education Act (7 
U.S.C. 3401-3417), except as delegated to the Under Secretary for Farm 
and Foreign Agricultural Services in
    Sec. 2.16(a)(3)(x);
    (Z) Egg Products Inspection Act relating to the Shell Egg 
Surveillance Program, voluntary laboratory analyses of egg products, and 
the Voluntary Egg Grading Program (21 U.S.C. 1031-1056);
    (AA) Section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), as 
supplemented by the Act of June 28, 1937 (15 U.S.C. 713c), and related 
legislation, except functions which are otherwise assigned relating to 
the domestic distribution and donation of agricultural commodities and 
products thereof following the procurement thereof;
    (BB) Procurement of agricultural commodities and other foods under 
section 6 of the National School Lunch Act of 1946, as amended (42 
U.S.C. 1755);
    (CC) In carrying out the procurement functions in paragraphs 
(a)(1)(viii)(AA) and (BB) of this section, the Assistant Secretary for 
Marketing and Regulatory Programs shall, to the extent practicable, use 
the commodity procurement, handling, payment and related services of the 
Farm Service Agency;
    (DD) Act of May 23, 1980, regarding inspection of dairy products for 
export (21 U.S.C. 693);
    (EE) The Pork Promotion, Research and Consumer Information Act of 
1985 (7 U.S.C. 4801-4819), except as delegated to the Under Secretary 
for Farm and

[[Page 173]]

Foreign Agricultural Services in Sec. 2.16(a)(3)(x);
    (FF) The Watermelon Research and Promotion Act (7 U.S.C. 4901-4916), 
except as delegated to the Under Secretary for Farm and Foreign 
Agricultural Services in Sec. 2.16(a)(3)(x);
    (GG) The Honey Research, Promotion, and Consumer Information Act (7 
U.S.C. 4601-4612), except as delegated to the Under Secretary for Farm 
and Foreign Agricultural Services in Sec. 2.16(a)(3)(x);
    (HH) Subtitles B and C of the Dairy Production Stabilization Act of 
1983, as amended (7 U.S.C. 4501-4513, 4531-4538);
    (II) The Floral Research and Consumer Information Act (7 U.S.C. 
4301-4319), except as delegated to the Under Secretary for Farm and 
Foreign Agricultural Services in Sec. 2.16(a)(3)(x);
    (JJ) Section 213 of the Tobacco Adjustment Act of 1983, as amended 
(7 U.S.C. 511r);
    (KK) National Laboratory Accreditation Program (7 U.S.C. 138-138i) 
with respect to laboratories accredited for pesticide residue analysis 
in fruits and vegetables and other agricultural commodities, except 
those laboratories analyzing only meat and poultry products;
    (LL) Pecan Promotion and Research Act of 1990 (7 U.S.C. 6001-6013), 
except as delegated to the Under Secretary for Farm and Foreign 
Agricultural Services in Sec. 2.16(a)(3)(x);
    (MM) Mushroom Promotion, Research, and Consumer Information Act of 
1990 (7 U.S.C. 6101-6112), except as delegated to the Under Secretary 
for Farm and Foreign Agricultural Services in Sec. 2.16(a)(3)(x);
    (NN) Lime Research, Promotion, Research, and Consumer Information 
Act of 1990 (7 U.S.C. 6201-6212), except as delegated to the Under 
Secretary for Farm and Foreign Agricultural Services in 
Sec. 2.16(a)(3)(x);
    (OO) Soybean Promotion, Research, and Consumer Information Act (7 
U.S.C. 6301-6311), except as delegated to the Under Secretary for Farm 
and Foreign Agricultural Services in Sec. 2.16(a)(3)(x);
    (PP) Fluid Milk Promotion Act of 1990 (7 U.S.C. 6401-6417), except 
as delegated to the Under Secretary for Farm and Foreign Agricultural 
Services in Sec. 2.16(a)(3)(x);
    (QQ) Producer Research and Promotion Board Accountability (104 Stat. 
3927);
    (RR) Consistency with International Obligations of the United States 
(7 U.S.C. 2278);
    (SS) Organic Foods Production Act of 1990 (7 U.S.C. 6501-6522), 
provided that the Administrator, Agricultural Marketing Service, will 
enter into agreements, as necessary, with the Administrator, Food Safety 
and Inspection Service, to provide inspection services;
    (TT) Pesticide Recordkeeping (7 U.S.C. 136i-1) with the provision 
that the Administrator, Agricultural Marketing Service, will enter into 
agreements, as necessary, with other Federal agencies;
    (UU) The International Carriage of Perishable Foodstuffs Act (7 
U.S.C. 4401-4406);
    (VV) The Sheep Promotion, Research, and Information Act (7 U.S.C. 
7101-7111), except as delegated to the Under Secretary for Farm and 
Foreign Agricultural Services in Sec. 2.16(a)(3)(x); and
    (WW) The Fresh Cut Flowers and Fresh Cut Greens Promotion and 
Consumer Information Act (7 U.S.C. 6801-6814), except as delegated to 
the Under Secretary for Farm and Foreign Agricultural Services in 
Sec. 2.16(a)(3)(x).
    (ix) Furnish, on request, copies of programs, pamphlets, reports, or 
other publications for missions or programs as may otherwise be 
delegated or assigned to the Assistant Secretary for Marketing and 
Regulatory Programs, and charge user fees therefor, as authorized by 
section 1121 of the Agriculture and Food Act of 1981, as amended by 
section 1769 of the Food Security Act of 1985, 7 U.S.C. 2242a.
    (x) Collect, summarize, and publish data on the production, 
distribution, and stocks of sugar.
    (2) Related to animal and plant health inspection. Exercise the 
functions of the Secretary of Agriculture under the following 
authorities:
    (i) Administer the Foreign Service personnel system for employees of 
the Animal and Plant Health Inspection Service in accordance with 22 
U.S.C. 3922, except that this delegation does

[[Page 174]]

not include the authority to represent the Department of Agriculture in 
interagency consultations and negotiations with other foreign affairs 
agencies regarding joint regulations, nor the authority to approve joint 
regulations issued by the Department of State relating to administration 
of the Foreign Service;
    (ii) Section 102, Organic Act of 1944, as amended, and the Act of 
April 6, 1937, as amended (7 U.S.C. 147a, 148, 148a-148e), relating to 
control and eradication of plant pests and diseases, including 
administering survey and regulatory activities for the Gypsy Moth 
Program and, with the Chief of the Forest Service, jointly administering 
gypsy moth eradication activities by assuming primary responsibility for 
eradication of gypsy moth infestations of 640 acres or less on State and 
private lands that are not contiguous to infested Federal lands;
    (iii) The Mexican Border Act, as amended (7 U.S.C. 149);
    (iv) The Golden Nematode Act (7 U.S.C. 150-150g);
    (v) The Federal Plant Pest Act, as amended (7 U.S.C. 150aa-150jj);
    (vi) The Plant Quarantine Act, as amended (7 U.S.C. 151-164a, 167).
    (vii) The Terminal Inspection Act, as amended (7 U.S.C. 166);
    (viii) The Honeybee Act, as amended (7 U.S.C. 281-286);
    (ix) The Halogeton Glomeratus Control Act (7 U.S.C. 1651-1656);
    (x) Tariff Act of June 17, 1930, as amended, sec. 306 (19 U.S.C. 
1306);
    (xi) Act of August 30, 1890, as amended (21 U.S.C. 102-105);
    (xii) Act of May 29, 1884, as amended, Act of February 2, 1903, as 
amended, and Act of March 3, 1905, as amended, and supplemental 
legislation (21 U.S.C. 111-114a, 114a-1, 115-130);
    (xiii) Act of February 28, 1947, as amended (21 U.S.C. 114b-114c, 
114d-1);
    (xiv) Act of June 16, 1948 (21 U.S.C. 114e-114f);
    (xv) Act of September 6, 1961 (21 U.S.C. 114g-114h);
    (xvi) Act of July 2, 1962 (21 U.S.C. 134-134h);
    (xvii) Act of May 6, 1970 (21 U.S.C. 135-135b);
    (xviii) Sections 12-14 of the Federal Meat Inspection Act, as 
amended, and so much of section 18 of such Act as pertains to the 
issuance of certificates of condition of live animals intended and 
offered for export (21 U.S.C. 612-614, 618);
    (xix) Improvement of poultry, poultry products, and hatcheries (7 
U.S.C. 429);
    (xx) The responsibilities of the United States under the 
International Plant Protection Convention;
    (xxi) (Laboratory) Animal Welfare Act, as amended (7 U.S.C. 2131-
2159);
    (xxii) Horse Protection Act (15 U.S.C. 1821-1831);
    (xxiii) 28 Hour Law, as amended (49 U.S.C. 80502);
    (xxiv) Export Animal Accommodation Act, as amended (46 U.S.C. 3901-
3902);
    (xxv) Purebred Animal Duty Free Entry Provisions of Tariff Act of 
June 17, 1930, as amended (19 U.S.C. 1202, part 1, Item 100.01);
    (xxvi) Virus-Serum-Toxin Act (21 U.S.C. 151-158);
    (xxvii) Conduct diagnostic and related activities necessary to 
prevent, detect, control or eradicate foot-and-mouth disease and other 
foreign animal diseases (21 U.S.C. 113a);
    (xxviii) The Agricultural Marketing Act of 1946, sections 203, 205, 
as amended (7 U.S.C. 1622, 1624), with respect to voluntary inspection 
and certification of animal products; inspection, testing, treatment, 
and certification of animals; and a program to investigate and develop 
solutions to the problems resulting from the use of sulfonamides in 
swine;
    (xxix) Talmadge Aiken Act (7 U.S.C. 450) with respect to cooperation 
with States in control and eradication of plant and animal diseases and 
pests;
    (xxx) The Federal Noxious Weed Act of 1974, as amended (7 U.S.C. 
2801-2814);
    (xxxi) The Endangered Species Act of 1973 (16 U.S.C. 1531-1544);
    (xxxii) Executive Order 11987, 3 CFR, 1977 Comp., p. 116;
    (xxxiii) Section 101(d), Organic Act of 1944 (7 U.S.C. 430);
    (xxxiv) The Swine Health Protection Act, as amended (7 U.S.C. 3801-
3813);
    (xxxv) Lacey Act Amendments of 1981, as amended (16 U.S.C. 3371-
3378);
    (xxxvi) Title III (and title IV to the extent that it relates to 
activities

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under title III,) of the Federal Seed Act, as amended (7 U.S.C. 1581-
1610);
    (xxxvii) Authority to prescribe the amounts of commuted traveltime 
allowances and the circumstances under which such allowances may be paid 
to employees covered by the Act of August 28, 1950 (7 U.S.C. 2260);
    (xxxviii) The Act of March 2, 1931 (7 U.S.C. 426-426b);
    (xxxix) The Act of December 22, 1987 (7 U.S.C. 426c);
    (xl) Authority to work with developed and transitional countries on 
agricultural and related research and extension, with respect to animal 
and plant health, including providing technical assistance, training, 
and advice to persons from such countries engaged in such activities and 
the stationing of scientists of national and international institutions 
in such countries (7 U.S.C. 3291(a)(3));
    (xli) Authority to prescribe and collect fees under the Act of 
August 31, 1951, as amended (31 U.S.C. 9701), and sections 2508 and 2509 
of the Food, Agriculture, Conservation, and Trade Act of 1990 (21 U.S.C. 
136, 136a), as amended;
    (xlii) The provisions of 35 U.S.C. 156;
    (xliii) Enter into cooperative research and development agreements 
with industry, universities, and others; institute a cash award program 
to reward scientific, engineering, and technical personnel; award 
royalties to inventors; and retain and use royalty income (15 U.S.C. 
3710a-3710c); and
    (xliv) The Alien Species Prevention and Enforcement Act of 1992 (39 
U.S.C. 3015 note).
    (xlv) Sections 901-905 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 1901 note).
    (3) Related to grain inspection, packers and stockyards. (i) 
Exercise the authority of the Secretary of Agriculture contained in the 
U.S. Grain Standards Act, as amended (7 U.S.C. 71-87h).
    (ii) Exercise the functions of the Secretary of Agriculture 
contained in the Agricultural Marketing Act of 1946, as amended (7 
U.S.C. 1621-1627), relating to inspection and standardization activities 
relating to grain.
    (iii) Administer the Packers and Stockyards Act, as amended and 
supplemented (7 U.S.C. 181-229).
    (iv) Enforce provisions of the Consumer Credit Protection Act (15 
U.S.C. 1601-1655, 1681-1681t) with respect to any activities subject to 
the Packers and Stockyards Act, 1921, as amended and supplemented.
    (v) Exercise the functions of the Secretary of Agriculture contained 
in section 1324 of the Food Security Act of 1985 (7 U.S.C. 1631).
    (4) Related to committee management. Establish and reestablish 
regional, State, and local advisory committees for activities under his 
or her authority. This authority may not be redelegated.
    (5) Related to defense and emergency preparedness. Administer 
responsibilities and functions assigned under the Defense Production Act 
of 1950, as amended (50 U.S.C. App. 2061 et seq.), and title VI of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5195 et seq.), concerning protection of livestock, poultry and 
crops and products thereof from biological and chemical warfare; and 
utilization or disposal of livestock and poultry exposed to radiation.
    (6) Related to biotechnology. Coordinate the development and 
carrying out by Department agencies of all matters and functions 
pertaining to the Department's regulation of biotechnology, and act as 
liaison on all matters and functions pertaining to the regulation of 
biotechnology between agencies within the Department and between the 
Department and governmental and private organizations. Provided, that 
with respect to biotechnology matters affecting egg products, the 
Assistant Secretary shall consult and coordinate activities of 
Department agencies with the Under Secretary for Food Safety.
    (7) Related to environmental response. With respect to land and 
facilities under his or her authority, exercise the functions delegated 
to the Secretary by Executive Order 12580, 3 CFR, 1987 Comp., p. 193, 
under the following provisions of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (``the Act''), as 
amended:
    (i) Sections 104(a), (b), and (c)(4) of the Act (42 U.S.C. 9604(a), 
(b), and (c)(4)), with respect to removal and remedial actions in the 
event of release

[[Page 176]]

or threatened release of a hazardous substance, pollutant, or 
contaminant into the environment;
    (ii) Sections 104(e)-(h) of the Act (42 U.S.C. 9604(e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards and wage and labor 
standards applicable to covered work; and emergency procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petitions for preliminary assessment of a 
release or threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) 
pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (ix) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon which to base the selection 
of a response action and identifying and notifying potentially 
responsible parties;
    (x) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xi) Sections 117(a) and (c) of the Act (42 U.S.C. 9617(a) and (c)), 
with respect to public participation in the preparation of any plan for 
remedial action and explanation of variances from the final remedial 
action plan for any remedial action or enforcement action, including any 
settlement or consent decree entered into;
    (xii) Section 119 of the Act (42 U.S.C. 9119), with respect to 
indemnifying response action contractors;
    (xiii) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xiv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), related to mixed funding agreements.
    (8) Related to compliance with environmental laws. With respect to 
facilities and activities under his or her authority, to exercise the 
authority of the Secretary of Agriculture pursuant to section 1-102 
related to compliance with applicable pollution control standards and 
section 1-601 of Executive Order 12088, 3 CFR, 1978 Comp., p. 243, to 
enter into an inter-agency agreement with the United States 
Environmental Protection Agency, or an administrative consent order or a 
consent judgment in an appropriate State, interstate, or local agency, 
containing a plan and schedule to achieve and maintain compliance with 
applicable pollution control standards established pursuant to the 
following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, as further amended by the Hazardous and 
Solid Waste Amendments, and the Federal Facility Compliance Act (42 
U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).

[[Page 177]]

    (9) Related to the Capper-Volstead Act. Serve as a member of the 
Capper-Volstead Act Committee to identify cases of undue price 
enhancement by associations of producers and issue complaints requiring 
such associations to show cause why an order should not be made 
directing them to cease and desist from monopolization or restraint of 
trade (7 U.S.C. 292).
    (b) The following authorities are reserved to the Secretary of 
Agriculture:
    (1) Relating to agricultural marketing.
    (i) Promulgation, with the Secretary of the Treasury of joint 
regulations under section 402(b) of the Federal Seed Act, as amended (7 
U.S.C. 1592(b)).
    (ii) Appoint members of the National Dairy Promotion and Research 
Board established by section 113(b) of the Dairy and Tobacco Adjustment 
Act of 1983 (7 U.S.C. 4504(b)).
    (iii) Appoint members of the National Processor Advertising and 
Promotion Board established by section 1999H(b)(4) of the Fluid Milk 
Promotion Act of 1990 (7 U.S.C. 6407(b)).
    (2) Related to animal and plant health inspection. (i) Determination 
that an emergency or extraordinary emergency exists because of the 
outbreak of any dangerous, communicable disease of livestock or poultry 
anywhere in the United States and that such outbreak threatens the 
livestock or poultry of the United States (21 U.S.C. 114a, 114c, 
134a(b)).
    (ii) Determination as to the measure and character of cooperation 
with Canada, Mexico, Central American countries, Panama, and Columbia 
related to operations and measures to eradicate, suppress, or control or 
to prevent or retard any communicable disease of animals, the 
designation of members of advisory committees, and the appointment of 
commissioners on any joint commission with these governments set up 
under such programs (21 U.S.C. 114b).
    (iii) Approval of requests for apportionment of reserves for the 
control of outbreaks of insects, plant diseases, and animal diseases to 
the extent necessary to meet emergency conditions (31 U.S.C. 665).
    (iv) Determination that an extraordinary emergency exists under the 
criteria in section 105(b)(1) of the Federal Plant Pest Act, as amended, 
(7 U.S.C. 150dd(b)(1)).

[60 FR 56393, Nov. 8, 1995, as amended at 61 FR 25776, May 23, 1996; 61 
FR 68541, Dec. 30, 1996]



Sec. 2.23  Assistant Secretary for Congressional Relations.

    (a) The following delegations of authority are made by the Secretary 
of Agriculture to the Assistant Secretary for Congressional Relations:
    (1) Related to congressional affairs. (i) Exercise responsibility 
for coordination of all congressional matters in the Department.
    (ii) Maintain liaison with the Congress and the White House on 
legislative Matters of concern to the Department.
    (2) Related to intergovernmental affairs. (i) Coordinate all 
programs involving intergovernmental affairs including State and local 
government relations and liaison with:
    (A) National Association of State Departments of Agriculture;
    (B) Office of Intergovernmental Relations (Office of Vice 
President);
    (C) Advisory Commission on Intergovernmental Relations;
    (D) Council of State Governments;
    (E) National Governors Conference;
    (F) National Association of Counties;
    (G) National League of Cities;
    (H) International City Managers Association;
    (I) U.S. Conference of Mayors; and
    (J) Such other State and Federal agencies, departments and 
organizations as are necessary in carrying out the responsibilities of 
this office.
    (ii) Maintain oversight of the activities of USDA representatives to 
the 10 Federal Regional councils.
    (iii) Serve as the USDA contact with the Advisory Commission on 
Intergovernmental Relations for implementation of OMB Circular A-85 to 
provide advance notification to state and local governments of proposed 
changes in Department programs that affect such governments.
    (iv) Act as the department representative for Federal executive 
board matters.
    (v) Administer the implementation of the National Historic 
Preservation Act

[[Page 178]]

of 1966, 16 U.S.C. 470 et seq., Executive Order 11593, 3 CFR, 1971-1975 
Comp., p. 559, and regulations of the Advisory Council on Historic 
Preservation, 36 CFR part 800, for the Department of Agriculture with 
authority to name the Secretary's designee to the Advisory Council on 
Historic Preservation.
    (3) Related to Indian affairs. Coordinate the Department's programs 
involving assistance to American Indians except civil rights activities.
    (b) [Reserved]



Sec. 2.24  Assistant Secretary for Administration.

    (a) The following delegations of authority are made by the Secretary 
of Agriculture to the Assistant Secretary for Administration:
    (1) Related to administrative law judges. (i) Assign, after 
appropriate consultation with other general officers, to the Office of 
Administrative Law Judges proceedings not subject to 5 U.S.C. 556 and 
557, involving the holdings of hearings and performance of related 
duties pursuant to the applicable rules of practice, when the Assistant 
Secretary for Administration determines that because of the nature of 
the proceeding it would be desirable for the proceeding to be presided 
over by an Administrative Law Judge and that such duties and 
responsibilities would not be inconsistent with those of an 
Administrative Law Judge.
    (ii) Provide administrative supervision of the Office of 
Administrative Law Judges.
    (iii) Maintain overall responsibility and control over the Hearing 
Clerk's activities which include the custody of and responsibility for 
the control, maintenance, and servicing of the original and permanent 
records of all USDA administrative proceedings conducted under the 
provisions of 5 U.S.C 556 and 557:
    (A) Receiving, filing and acknowledging the receipt of complaints, 
petitions, answers, briefs, arguments, and all other documents that may 
be submitted to the Secretary or the Department of Agriculture in such 
proceedings;
    (B) Receiving and filing complaints, notices of inquiry, orders to 
show cause, notices of hearing, designations of Administrative Law 
Judges or presiding officers, answers, briefs, arguments, orders, and 
all other documents that may be promulgated or issued by the Secretary 
or other duly authorized officials of the Department of Agriculture in 
such proceedings;
    (C) Supervising the service upon the parties concerned of any 
documents that are required to be served, and where required, preserving 
proof of service;
    (D) Keeping a docket record of all such documents and proceedings;
    (E) Filing a stenographic record of each administrative hearing;
    (F) Preparing for certification and certifying under the Secretary's 
facsimile signature, material on file in the Hearing Clerk's office;
    (G) Performing any other clerical duties with respect to the 
documents relative to such proceedings as may be required to be 
performed;
    (H) Cooperating with the Office of Operations in the letting of 
contracts for stenographic and reporting services; and forwarding 
vouchers to appropriate agencies for payment;
    (I) Receiving and compiling data, views or comments filed in 
response to notices of proposed standards or rules or regulations; and
    (J) Performing upon request the following services with respect to 
any hearings in such proceedings:
    (1) Arranging for suitable hearing place; and
    (2) Arranging for stenographic reporting of hearings and handling 
details in connection therewith.
    (2) Related to management. (i) Administer a productivity program in 
accordance with Executive Order 12089, 3 CFR, 1979 Comp., p. 246, and 
other policy and procedural directives and laws to:
    (A) Assess and improve productivity of the Department; and
    (B) Assist agencies in developing, implementing and maintaining 
productivity measurement systems.
    (ii) Responsible for the Modernization of Administrative Processes 
project to analyze and make recommendations to the Secretary regarding 
improved processes with respect to administrative and financial 
activities of the Department.

[[Page 179]]

    (iii) Designate the Department's Chief Management Improvement 
Officer.
    (iv) Improve Departmental management by: Performing management 
studies and reviews in response to agency requests for assistance; 
enhancing management decisionmaking by developing and applying analytic 
techniques to address particular administrative operational and 
management problems; searching for more economical or effective 
approaches to the conduct of business; developing and revising systems, 
processes, work methods and techniques; and undertaking other efforts to 
improve the management effectiveness and productivity of the Department.
    (v) Administer the Department's Management Improvement Program 
including the provision of assistance to agencies through management 
studies and planning review; review the management and operating 
policies and processes; search for more economical approaches to the 
conduct of business and provide such other assistance as will aid in 
improving the management effectiveness and operation of the Department's 
programs.
    (vi) Administer the Department's Management Review Program. This 
authority includes the development and promulgation of departmental 
directives regulating the management review function.
    (vii) Develop, design, install, and revise systems, processes, work 
methods, and techniques, and undertake other system engineering efforts 
to improve the management and operational effectiveness of the USDA.
    (3) Related to operations. (i) Promulgate Departmental policies, 
standards, techniques, and procedures, and represent the Department, in 
the following:
    (A) Contracting for and the procurement of administrative and 
operating supplies, services, equipment and construction;
    (B) Socioeconomic programs relating to contracting, except matters 
otherwise assigned;
    (C) Selection, standardization, and simplification of program 
delivery processes utilizing contracts;
    (D) Acquisition, leasing, utilization, value analysis, construction, 
maintenance, and disposition of real and personal property, including 
control of space assignments;
    (E) Acquisition, storage, distribution and disposition of forms, 
supplies and equipment;
    (F) Mail management;
    (G) Motor vehicle fleet and other vehicular transportation;
    (H) Transportation of things (traffic management);
    (I) Prevention, control, and abatement of pollution with respect to 
Federal facilities and activities under the control of the Department 
(Executive Order 12088, 3 CFR, 1978 Comp., p. 243);
    (J) Implementation of the Uniform Relocation Assistance and Real 
Property Policies Act of 1970 (42 U.S.C. 4601 et seq.) and
    (K) Develop and implement energy management actions related to the 
internal operations of the Department. Maintain liaison with other 
government agencies in these matters.
    (ii) Operate, or provide for the operation of, centralized 
Departmental services for printing, copy reproduction, offset 
composition, supply, mail, automated mailing lists, excess property 
pool, resource recovery, shipping and receiving, forms, labor services, 
issuance of general employee identification cards, supplemental 
distribution of Department directives, space allocation and management, 
and related management support.
    (iii) Exercise the following special authorities:
    (A) Designate the Department's Debarring Officer to perform the 
functions of 48 CFR part 9, subparts 9.406 and 9.407;
    (B) Conduct liaison with the Office of the Federal Register (1 CFR 
part 16) including the making of required certifications pursuant to 1 
CFR part 18;
    (C) Maintain custody and permit appropriate use of the official seal 
of the Department;
    (D) Establish policy for the use of the official flags of the 
Secretary and the Department;
    (E) Coordinate collection of historical material for Presidential 
Libraries;

[[Page 180]]

    (F) Oversee the safeguarding of unclassified materials designated 
``For Official Use Only;''
    (G) Make determinations under 48 CFR 14.406-3 (a) through (d), 
relating to mistakes in bids alleged after opening of bids and before 
award; and
    (H) Make information returns to the Internal Revenue Service as 
prescribed by 26 U.S.C. 6050M and by 26 CFR 1.6050M-1 and such other 
Treasury regulations, guidelines or procedures as may be issued by the 
Internal Revenue Service in accordance with 26 U.S.C. 6050M. This 
includes executing such verifications or certifications as may be 
required by 26 CFR 1.6050M-1, and making the election by 26 CFR 1.6050M-
1(d)(5)(i).
    (iv) Exercise full Departmentwide contracting and procurement 
authority for automatic data processing and data transmission equipment, 
software, services, maintenance, and related supplies. This includes the 
promulgation of Department directives regulating the management or 
related contracting and procurement functions.
    (v) Provide staff assistance for the Secretary, general officers and 
other Department and agency officials.
    (vi) Represent the Department in contacts with the General Services 
Administration, the Office of Management and Budget, and other 
organizations or agencies on matters related to assigned 
responsibilities.
    (vii) Serve as the Acquisition Executive in USDA to integrate and 
unify the management process for the Department's major system 
acquisitions and to monitor implementation of the policies and practices 
set forth in OMB Circular A-109, Major Systems Acquisitions. This 
delegation includes the authority to:
    (A) Insure that OMB Circular A-109 is effectively implemented in the 
Department and that the management objectives of the Circular are 
realized;
    (B) Review the program management of each major system acquisition;
    (C) Designate the program manager for each major system acquisition; 
and
    (D) Designate any Departmental acquisition as a major system 
acquisition under OMB Circular A-109.
    (viii) Pursuant to Executive Order 12352, 3 CFR, 1982 Comp., p. 137, 
and sections 16, 20(b), and 21 of the Office of Federal Procurement 
Policy Act, as amended, 41 U.S.C. 414, 418(b) and 418, designate a 
Senior Procurement Executive for the Department and delegate 
responsibility for the following:
    (A) Prescribing and publishing Departmental procurement policies, 
regulations, and procedures;
    (B) Taking any necessary actions consistent with policies, 
regulations, and procedures with respect to purchases, contracts, 
leases, and other transactions;
    (C) Designating contracting officers;
    (D) Establishing clear lines of contracting authority;
    (E) Evaluating and monitoring the performance of the Department's 
procurement system;
    (F) Managing and enhancing career development of the procurement 
work force;
    (G) Participating in the development of Government-wide procurement 
policies, regulations, and standards and determining specific areas 
where Government-wide performance standards should be established and 
applied;
    (H) Determining areas of Department-unique standards and developing 
unique Department-wide standards;
    (I) Certifying to the Secretary that the procurement system meets 
approved standards;
    (J) Prescribing standards for agency Procurement Executives and 
designating agency Procurement Executives when these standards are met;
    (K) Redelegating, as appropriate, the authority in paragraph 
(a)(3)(viii)(A) of this section to USDA agency Procurement Executives or 
other qualified agency officials with no power of further redelegation; 
and
    (L) Redelegating the authorities in paragraphs (a)(3)(viii)(B), (C), 
(D), (F) and (G) of this section to USDA agency Procurement Executives 
or other qualified agency officials with the power of further 
redelegation.
    (ix) Promulgate Departmental policies, standards, techniques, and 
procedures and represent the Department in maintaining the security of 
physical facilities, self-protection, and warden services.

[[Page 181]]

    (x) Review and approve exemptions for Department of Agriculture 
contracts, subcontracts, grants, subgrants, agreements, subagreements, 
loans and subloans from the requirements of the Clean Air Act, as 
amended (42 U.S.C. 7401 et seq.), the Federal Water Pollution Control 
Act, as amended (33 U.S.C. 1251 et seq.), and Executive Order 11738, 3 
CFR, 1971-1975 Comp., p. 799, when he or she determines that the 
paramount interest of the United States so requires as provided in the 
above acts and Executive Order and the regulations of the Environmental 
Protection Act (40 CFR 15.5(c)).
    (4) Related to management services. (i) Provide management support 
services for the Secretary of Agriculture and for the general officers 
of the Department, except the Inspector General. As used herein, such 
management support services shall include:
    (A) Personnel services, as listed in paragraph (a)(5)(x) of this 
section, and organizational support services, with authority to take 
actions required by law or regulation to perform such services;
    (B) Procurement, property management, space management, 
communications (telephone), messenger, and related services with 
authority to take actions required by law or regulation to perform such 
services; and
    (C) Automation, forms management, files management, and directives 
management with authority to take actions required by law or regulation 
to perform such services.
    (ii) Provide such services as listed in paragraph (a)(4)(i) of this 
section, as may be agreed, for other officers and agencies of the 
Department.
    (5) Related to personnel. (i) Formulate and issue Department policy, 
standards, rules, and regulations relating to personnel.
    (ii) Provide personnel management procedural guidance and 
operational instructions.
    (iii) Design and establish personnel data systems.
    (iv) Inspect and evaluate personnel management operations and issue 
instructions or take direct action to insure conformity with appropriate 
laws, Executive orders, Office of Personnel Management rules and 
regulations, and other appropriate rules and regulations.
    (v) Exercise final authority in all personnel matters, including 
individual cases, that involve the jurisdiction of more than one General 
Officer.
    (vi) Receive, review, and recommend action on all requests for the 
Secretary's approval in personnel matters.
    (vii) Represent the Department in personnel matters in all contacts 
outside the Department.
    (viii) Exercise specific authorities in the following operational 
matters:
    (A) Authorize cash awards above $2,500;
    (B) Waive repayment of training expenses where employee fails to 
fulfill service agreement;
    (C) Establish or change standards and plans for awards to private 
citizens; and
    (D) Execute, change, extend, or renew:
    (1) Labor-Management Agreements; and
    (2) Association of Management Officials or Supervisor's Agreements.
    (E) Represent any part of the Department in all contacts and 
proceedings with the National Offices of Labor Organizations;
    (F) Change a position (with no material change in duties) from GS to 
a pay system other than a wage system, or vice versa;
    (G) Grant restoration rights, and release employees with 
administrative reemployment rights;
    (H) Change working hours for groups of 50 or more employees in the 
Washington, DC, metropolitan area;
    (I) Authorize any mass dismissals of employees in the Washington, 
DC, metropolitan area;
    (J) Approve ``normal line of promotion'' cases in the excepted 
service where not in accordance with time-in-grade criteria;
    (K) Make final decisions on adverse action and performance rating 
appeals in all cases where the Deciding Official:
    (1) Was involved directly in the adverse action, or performance 
rating appeal; or
    (2) Made the informal decision; or
    (3) Determines that the Examiner's findings or Committee's 
recommendations is unacceptable.

[[Page 182]]

    (L) Make the final decision on all classification appeals from 
agency appellate decisions;
    (M) Authorize all employment actions (except nondisciplinary 
separations and LWOP) and classification actions for senior level and 
equivalent positions including Senior Executive Service positions and 
special authority professional and scientific positions responsible for 
carrying out research and development functions;
    (N) Authorize all employment actions (except LWOP) for the following 
positions:
    (1) Schedule C; and
    (2) Administrative law judge.
    (O) Authorize employment actions (accessions or extensions) for the 
following:
    (1) Employees whose records are flagged; and
    (2) Contract services.
    (P) Authorize employment actions (accessions or extensions and 
transfers) for the following:
    (1) Persons with criminal or immoral records;
    (2) Persons separated for misconduct, delinquency, or resignation, 
to avoid such action; and
    (3) Veterans with dishonorable or other than dishonorable discharge.
    (Q) Authorize adverse actions for positions in GS-14-15 and 
equivalent;
    (R) Approve assignments of White House details;
    (S) Authorize adverse actions based in whole or in part on an 
allegation of violation of 5 U.S.C. chapter 73, subchapter III, for 
employees in the excepted service;
    (T) Authorize long-term training in programs which require 
Department-wide competition;
    (U) Issue all Coordinated Federal Wage System (CFWS) Department-wide 
Wage Schedules, and Lithographic Wage Schedules in the Washington, DC 
metropolitan area; and
    (V) Initiate and take adverse action in cases involving a violation 
of the merit system.
    (ix) [Reserved]
    (x) As used herein, the term personnel includes:
    (A) Position management;
    (B) Position classification;
    (C) Employment;
    (D) Pay administration;
    (E) Automation of personnel data and systems design;
    (F) Hours of duty;
    (G) Performance evaluation and standards;
    (H) Promotions;
    (I) Employee development;
    (J) Incentive Programs;
    (K) Leave;
    (L) Retirement;
    (M) Program evaluation;
    (N) Social security;
    (O) Life insurance;
    (P) Health benefits;
    (Q) Unemployment compensation;
    (R) Labor management relations;
    (S) Intramanagement consultation;
    (T) Security;
    (U) Discipline; and
    (V) Appeals.
    (xi) The provisions of paragraphs (a)(5)(x)(N) through (R) of this 
section shall not apply for positions in, or applicants for positions 
in, the Office of Inspector General.
    (xii) Maintain, review and update departmental delegations of 
authority.
    (xiii) Authorize organizational changes which occur in:
    (A) Departmental organizations:
    (1) Service or office;
    (2) Division (or comparable component); and
    (3) Branch (or comparable component in departmental centers, only).
    (B) Field organizations:
    (1) First organizational level; and
    (2) Next lower organizational level--required only for those types 
of field installations where the establishment, change in location, or 
abolition of same, requires approval in accordance with Departmental 
Regulation 1010-1 (see Sec. 2.92(a)(15)(ii)(B)).
    (xiv) Formulate and promulgate departmental organizational 
objectives and policies.
    (xv) Approve coverage of individual law enforcement and firefighter 
positions under the special retirement provisions of the Civil Service 
Retirement System and the Federal Employees Retirement System.
    (xvi) Establish Departmentwide safety and health policy and provide 
leadership in the development, coordination, and implementation of 
related standards, techniques, and procedures,

[[Page 183]]

and represent the Department in complying with laws, Executive orders 
and other policy and procedural issuances related to occupational safety 
and health within the Department.
    (xvii) Represent the Department in all rulemaking, advisory or 
legislative capacities on any groups, committees, or Governmentwide 
activities that affect the USDA Occupational Safety and Health 
Management Program.
    (xviii) Determine and/or provide Departmentwide technical services 
and regional staff support for the Safety and Health Programs.
    (xix) Administer the computerized management information systems for 
the collection, processing and dissemination of data related to the 
Department's Occupational Safety and Health Programs.
    (xx) Administer the administrative appeals process related to the 
inclusion of positions in the Testing Designated Position listing in the 
USDA Drug-Free Workplace Program and designate the final appeal officer 
for that Program.
    (xxi) Administer the Department's Occupational Health and Preventive 
Medical Program, as well as design and operate employee assistance and 
workers' compensation activities.
    (xxii) Provide education and training on a Departmentwide basis for 
safety and health related issues and develop resource and operational 
manuals.
    (xxiii) Approve hazard pay differentials under the conditions 
specified in 5 CFR part 550.
    (6) Related to information resources management. (i) Designated as 
the senior official to carry out the responsibilities of the Department 
under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520). This 
designation includes the following responsibilities:
    (A) Ensuring that the information policies, principles, standards, 
guidelines, rules and regulations prescribed by the Office of Management 
and Budget are appropriately implemented within the Department;
    (B) Developing Department information policies and procedures and 
overseeing, auditing and otherwise periodically reviewing the 
Department's information resources management activities;
    (C) Reviewing proposed Department reporting and recordkeeping 
requirements including those contained in rules and regulations, to 
ensure that they impose the minimum burden upon the public and have 
practical utility for the Department;
    (D) Developing and implementing procedures for assessing the burden 
to the public and costs to the Department of information requirements 
contained in proposed legislation affecting Department programs;
    (E) Conducting and being accountable for acquisitions made by the 
Department pursuant to authority delegated under section 111 of the 
Federal Property and Administrative Services Act of 1949, as amended (40 
U.S.C. 759);
    (F) Assisting the Office of Management and Budget in the performance 
of its functions assigned under the Paperwork Reduction Act of 1980 (44 
U.S.C. 3501-3520), including the review of Department information 
activities; and
    (G) Reviewing, granting, and notifying Congress of waivers to 
Federal Information Processing Standards pursuant to the authority 
delegated under section 111(d)(3) of the Federal Property and 
Administrative Services Act of 1949, as amended (40 U.S.C. 759(d)(3)).
    (ii) Develop and implement an information resources management 
planning system which will integrate short-term and long-term objectives 
and coordinate agency and staff office initiatives in support of the 
objectives.
    (iii) Provide Departmentwide guidance and direction in planning, 
developing, documenting, and managing applications software projects in 
accordance with Federal and Department information processing standards, 
procedures, and guidelines.
    (iv) Provide Departmentwide guidance and direction in all aspects of 
the USDA Information Management Program including feasibility studies; 
economic analyses; systems design; acquisition of equipment, software, 
services, and timesharing arrangements; systems installation; systems 
performance and capacity evaluation; and security. Monitor these 
activities for agencies' major systems development

[[Page 184]]

efforts to assure effective and economic use of resources and 
compatibility among systems of various agencies when required.
    (v) Manage the Departmental Computer Centers, including setting of 
rates to recover the cost of goods and services within approved policy 
and funding levels.
    (vi) Review and evaluate information resource management activities 
related to delegated functions to assure that they conform to all 
applicable Federal and Department information resource management 
policies, plans, standards, procedures, and guidelines.
    (vii) Design, develop, implement, and revise systems, processes, 
work methods, and techniques to improve the management and operational 
effectiveness of information resources.
    (viii) Administer the Departmental records, forms, reports, and 
Directives Management Programs.
    (ix) Manage all aspects of the USDA Telecommunications Program 
including planning, development, acquisition, and use of equipment and 
systems for voice and data communications, excluding the actual 
procurement of data transmission equipment, software, maintenance, and 
related supplies. Manage Departmental telecommunications contracts. 
Provide technical advice throughout the Department on telecommunications 
matters.
    (x) Implement a program for applying information resources 
management technology to improve productivity in the Department.
    (xi) Provide leadership to integrate and unify the management 
process for the Department's major information resource management 
system acquisitions and to monitor implementation of the policies and 
practices set forth in applicable OMB Circulars.
    (xii) Provide Departmental services related to Departmental 
administrative regulations, Secretarial issuances, and related 
management support.
    (xiii) Plan, develop, install, and operate computer-based systems 
for message exchange, scheduling, computer conferencing, and other 
applications of office automation technology which can be commonly used 
by multiple Department agencies and offices.
    (xiv) Represent the Department in contacts with the General 
Accounting Office, the General Services Administration, the Office of 
Management and Budget, the National Bureau of Standards, and other 
organizations or agencies on matters related to delegated 
responsibilities.
    (xv) Review, clear, and coordinate all statistical forms, survey 
plans, and reporting and record keeping requirements originating in the 
Department and requiring approval by the Office of Management and Budget 
under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520).
    (7) Related to committee management. (i) Serve as the Department's 
Committee Management Officer and establish and maintain departmentwide 
policies and procedures for the management of committees. This 
delegation includes the authority to:
    (A) Consult with the Committee Management Secretariat prior to the 
establishment or reestablishment of advisory committees;
    (B) Approve and sign the written certification that creation of the 
advisory committee is in the public interest and provide for the 
publication of such certification in the Federal Register, along with a 
description of the nature and purpose of the advisory committee, 
following the Committee Management Secretariat's approval of the 
establishment of the committee;
    (C) Approve and sign the notice of renewal of advisory committees 
for publication in the Federal Register, following the Committee 
Management Secretariat's concurrence in the renewal of the committees;
    (D) Assign responsibility for preparation of timely notice of 
meetings for publication in the Federal Register; and
    (E) Approve charters for national advisory committees when in a 
format other than a Secretary's Memorandum.
    (ii) Establish and reestablish regional, State, and local advisory 
committees for activities authorized. This authority may not be 
redelegated.
    (8) Related to equal opportunity. (i) Provide overall leadership, 
coordination, and direction for the Department's programs of civil 
rights, including program delivery compliance and

[[Page 185]]

equal employment opportunity, with emphasis on the following:
    (A) Actions to enforce title VI of the Civil Rights Act of 1964, 42 
U.S.C. 2000d, prohibiting discrimination in Federally assisted programs;
    (B) Actions to enforce title VII of the Civil Rights Act of 1964, as 
amended, 42 U.S.C. 2000e, prohibiting discrimination in Federal 
employment;
    (C) Actions to enforce title IX of the Education Amendments of 1972, 
20 U.S.C. 1681 et seq., prohibiting discrimination on the basis of sex 
in USDA education programs and activities funded by the Department;
    (D) Actions to enforce section 504 of the Rehabilitation Act of 
1973, as amended, 29 U.S.C. 794, prohibiting discrimination on the basis 
of handicap in USDA programs and activities funded by the Department;
    (E) Actions to enforce the Age Discrimination Act of 1975, 42 U.S.C. 
6102, prohibiting discrimination on the basis of age in USDA programs 
and activities funded by the Department;
    (F) Actions to enforce related Executive orders, Congressional 
mandates, and other laws, rules, and regulations, as appropriate;
    (G) Actions to develop and implement the Department's Federal 
Women's Program; and
    (H) Actions to develop and implement the Department's Hispanic 
Employment Program.
    (ii) Evaluate Departmental agency programs, activities, and impact 
statements for civil rights concerns.
    (iii) Provide leadership and coordinate USDA agency and Department 
systems for targeting, collecting, analyzing, and evaluating program 
participation data and equal employment opportunity data.
    (iv) Provide leadership and coordinate Departmentwide programs of 
public notification regarding the availability of USDA programs on a 
nondiscriminatory basis.
    (v) Serve as the focal point through which all contacts with the 
Department of Justice are made involving matters relating to title VI of 
the Civil Rights Act of 1964 (42 U.S.C. 2000d), title IX of the 
Education Amendments of 1972 (20 U.S.C. 1681 et seq.), and section 504 
of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794), except 
those matters in litigation, including administrative enforcement 
actions, which shall be coordinated by the Office of the General 
Counsel.
    (vi) Serve as the focal point through which all contacts with the 
Department of Health and Human Services are made involving matters 
relating to the Age Discrimination Act of 1975, 42 U.S.C. 6102, except 
those matters in litigation, including administrative enforcement 
action, which shall be coordinated by the Office of the General Counsel.
    (vii) Order proceedings and hearings in the USDA pursuant to 
Secs. 15.9(e) and 15.86 of this title which concern consolidated or 
joint hearings within the Department and/or with other Federal 
departments and agencies.
    (viii) Order proceedings and hearings in the USDA pursuant to 
Sec. 15.8(c) of this title after the program agency has advised the 
applicant or recipient of his or her failure to comply and has 
determined that compliance cannot be secured by voluntary means.
    (ix) Issue orders to give a notice of hearing or the opportunity to 
request a hearing pursuant to part 15 of this title; arrange for the 
designation of an Administrative Law Judge to preside over any such 
hearing; and determine whether the Administrative Law Judge so 
designated will make an initial decision or certify the record to the 
Secretary of Agriculture with his or her recommended findings and 
proposed action.
    (x) Authorize the taking of action pursuant to Sec. 15.8(a) of this 
title relating to compliance by ``other means authorized by law.''
    (xi) Make determinations required by Sec. 15.8(d) of this title that 
compliance cannot be secured by voluntary means, and then take action, 
as appropriate.
    (xii) Make determinations that program complaint investigations 
performed under Sec. 15.6 of this title establish a proper basis for 
findings of discrimination, and that actions taken to correct such 
findings are adequate; and perform investigations and make final 
determinations, on both the merits and required corrective action, as to 
complaints filed under subpart B of part 15 of this title.

[[Page 186]]

    (xiii) Conduct investigations and compliance reviews Departmentwide.
    (xiv) Develop regulations, plans, and procedures necessary to carry 
out the Department's civil rights programs, including the development, 
implementation, and coordination of Action Plans.
    (xv) Provide liaison on Equal Employment Opportunity Programs and 
activities with the Equal Employment Opportunity Commission, the Office 
of Personnel Management, USDA agencies, Department employees, and 
applicants for positions within the Department.
    (xvi) Monitor, evaluate, and report on agency compliance with 
established policy and executive orders which further the participation 
of historically black colleges and universities and with other colleges 
and universities with substantial minority group enrollment in 
Departmental programs and activities.
    (xvii) Is designated as the Department's Director of Equal 
Employment Opportunity with authority to perform the functions and 
responsibilities of that position under 29 CFR part 1613, including the 
authority to make changes in programs and procedures designed to 
eliminate discriminatory practices and improve the Department's program 
for Equal Employment Opportunity, and the authority to make decisions on 
complaints of discrimination and order such corrective measures as may 
be considered necessary, including the recommendation for such 
disciplinary action as is warranted when an employee has been found to 
have engaged in a discriminatory practice.
    (xviii) Administer the Department's Equal Employment Opportunity 
Program.
    (xix) Perform the EEO counseling function for the Department.
    (xx) Process formal EEO discrimination complaints, up to the 
appellate stage, by employees or applicants for employment.
    (xxi) Administer the discrimination appeals and complaints program 
for the Department, including all formal individual or group appeals, 
where the system provides for an avenue of redress to the Department 
level, Equal Employment Opportunity Commission, Office of Personnel 
Management or other outside authority.
    (xxii) Provide liaison on EEO matters concerning complaints and 
appeals with the USDA agencies and Department employees.
    (xxiii) Maintain liaison with historically black colleges and 
universities and with other colleges and universities with substantial 
minority group enrollment, and assist USDA agencies in strengthening 
such institutions by facilitating institutional participation in USDA 
programs and activities and by encouraging minority students to pursue 
curricula that could lead to careers in the food and agricultural 
sciences.
    (xxiv) Investigate USDA EEO complaints with authority to enter into 
and administer contracts for such investigations.
    (xxv) Make final decisions on complaints and grievance appeals, 
except in those cases where the Assistant Secretary for Administration 
has participated, when it is determined that such complaint or grievance 
appeals are not being decided in a timely manner.
    (xxvi) Make final decisions on formal grievance appeals in all cases 
where the Deciding Official:
    (A) Was involved directly in the grievance; or
    (B) Made the informal decision; or
    (C) Determines that the Examiner's findings or Committee's 
recommendations is unacceptable.
    (xxvii) The provisions of paragraphs (a)(8)(xxv) and (xxvi) of this 
section shall not apply for positions in, or applicants for positions 
in, the Office of Inspector General.
    (9) Related to defense. Provide internal administrative management 
and support services for the defense program of the Department.
    (10) Related to board of contract appeals. Provide administrative 
supervision, and exercise general responsibility for budget and finance 
aspects of the Board of Contract Appeals. No review by the Assistant 
Secretary for Administration of the merits of appeals or of decisions of 
the Board is authorized and the Board shall be the representative of the 
Secretary in such matters.

[[Page 187]]

    (11) Related to environmental response. With respect to land and 
facilities under his or her authority, exercise the functions delegated 
to the Secretary by Executive Order 12580, 3 CFR, 1987 Comp., p. 193, 
under the following provisions of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (``the Act''), as 
amended:
    (i) Sections 104(a), (b), and (c)(4) of the Act (42 U.S.C. 9604(a), 
(b), and (c)(4)), with respect to removal and remedial actions in the 
event of release or threatened release of a hazardous substance, 
pollutant, or contaminant into the environment;
    (ii) Sections 104(e)-(h) of the Act (42 U.S.C. 9604(e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards and wage and labor 
standards applicable to covered work; and emergency procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petitions for preliminary assessment of a 
release or threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) 
pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (ix) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon which to base the selection 
of a response action and identifying and notifying potentially 
responsible parties;
    (x) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xi) Sections 117(a) and (c) of the Act (42 U.S.C. 9617(a) and (c)), 
with respect to public participation in the preparation of any plan for 
remedial action and explanation of variances from the final remedial 
action plan for any remedial action or enforcement action, including any 
settlement or consent decree entered into;
    (xii) Section 119 of the Act (42 U.S.C. 9119), with respect to 
indemnifying response action contractors;
    (xiii) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xiv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), related to mixed funding agreements.
    (12) Related to compliance with environmental laws. With respect to 
facilities and activities under his or her authority, to exercise the 
authority of the Secretary of Agriculture pursuant to section 1-102 
related to compliance with applicable pollution control standards and 
section 1-601 of Executive Order 12088, 3 CFR, 1978 Comp., p. 243, to 
enter into an inter-agency agreement with the United States 
Environmental Protection Agency, or an administrative consent order or a 
consent judgment in an appropriate State, interstate, or local agency, 
containing a plan and schedule to achieve and maintain compliance with 
applicable pollution control standards established pursuant to the 
following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, as further amended by the Hazardous and 
Solid Waste Amendments, and the Federal Facility Compliance Act (42 
U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);

[[Page 188]]

    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).
    (13) Related to emergency programs. (i) Coordinate the Departments 
Emergency Preparedness Program and Disaster Emergency Response Program 
including maintenance of an appropriate system whereby the Department 
can react immediately when notified of a civil defense or natural 
disaster emergency.
    (ii) Maintain an overview of emergency relocation facilities and 
assure that resources are in a constant state of readiness.
    (iii) Direct the entire defense program of USDA. This delegation 
includes:
    (A) Maintaining liaison with executive departments and the Congress 
with respect to policy matters;
    (B) Supervising and directing USDA regional emergency stalls and 
USDA State and county emergency boards;
    (C) Directing the USDA part of the National Defense Executive 
Reserve Program;
    (D) Providing policy guidance to USDA agencies in carrying out 
specific defense assignments; and
    (E) Representing the Department in matters relating to international 
defense organizations, such as NATO and its suborganizations.
    (iv) Coordinate and facilitate USDA operations of Natural Disaster 
Programs, including liaison with executive departments and the Congress 
in disaster matters.
    (v) Maintain liaison with:
    (A) Federal Preparedness Agency; and
    (B) Defense Civil Preparedness Agency.
    (b) The following authorities are reserved to the Secretary of 
Agriculture:
    (1) Related to personnel. Make final determinations in the following 
areas:
    (i) Separation of employees for security reasons.
    (ii) Restoration to duty of employees following suspension from duty 
for security reasons.
    (iii) Reinstatement or restoration to duty or the employment of any 
person separated for security reasons.
    (iv) Issuance of temporary certificates to occupy sensitive 
positions.
    (2) [Reserved]



Subpart D--Delegations of Authority to Other General Officers and Agency 
                                  Heads

    Editorial Note: Nomenclature changes to subpart D appear at 60 FR 
66713, Dec. 26, 1995.



Sec. 2.26  Director, Office of the Executive Secretariat.

    The following delegation of authority is made by the Secretary of 
Agriculture to the Director, Office of the Executive Secretariat: 
Responsible for all correspondence control and related records 
management functions for the Office of the Secretary.



Sec. 2.27  Office of Administrative Law Judges.

    (a) The following designations are made by the Secretary of 
Agriculture to the Office of Administrative Law Judges:
    (1) Administrative law judges (formerly hearing examiners) are 
designated pursuant to 5 U.S.C. 556(b)(3) to hold hearings and perform 
related duties in proceedings subject to 5 U.S.C. 556 and 557, arising 
under the Agricultural Marketing Agreement Act of 1937, as amended (7 
U.S.C. 601 et seq.); the Commodity Exchange Act as amended (7 U.S.C. 1 
et seq.); the Perishable Agricultural Commodities Act, as amended (7 
U.S.C. 499a et seq.); the Federal Seed Act, as amended (7 U.S.C. 1551 et 
seq.); the (Laboratory) Animal Welfare Act, as amended (7 U.S.C. 2131 et 
seq.); the Packers and Stockyards Act, 1921, as amended and supplemented 
(7 U.S.C. 181 et seq.); the Forest Resources Conservation and Shortage 
Relief of 1990 (16 U.S.C. 630 et seq.); and any other acts providing for 
hearings to which the provisions of 5 U.S.C. 556 and 557,

[[Page 189]]

are applicable. Pursuant to the applicable rules of practice, the 
administrative law judges shall make initial decisions in adjudication 
and rate proceedings subject to 5 U.S.C. 556 and 557. Such decisions 
shall become final without further proceedings unless there is an appeal 
to the Secretary by a party to the proceeding in accordance with the 
applicable rules of practice: Provided, however, that no decision shall 
be final for purposes of judicial review except a final decision of the 
Secretary upon appeal. As used herein, ``Secretary'' means the Secretary 
of Agriculture, the Judicial Officer, or other officer or employee of 
the Department delegated, pursuant to the Act of April 4, 1940 (7 U.S.C. 
450c-450g), and Reorganization Plan No. 2 of 1953 (5 U.S.C. App.), 
``regulatory functions'' as that term is defined in the 1940 Act, in 
acting as final deciding officer in adjudication and rate proceedings 
subject to 5 U.S.C. 556 and 557. Administrative Law Judges are delegated 
authority to hold hearings and perform related duties as provided in the 
Rules of Practice Governing Cease and Desist Proceedings Under Section 2 
of the Capper-Volstead Act, set forth in part 1, subpart I of this 
title.
    (2) [Reserved]
    (b) The Chief Administrative Law Judge is delegated the following 
administrative responsibilities subject to the guidance and control of 
the Assistant Secretary for Administration (See Sec. 2.24(a)):
    (1) Exercise general responsibility and authority for all matters 
related to the administrative activities of the Office of Administrative 
Law Judges; and
    (2) Direct the functions of the Hearing Clerk as set out in 
Sec. 2.24(a)(1)(iii).



Sec. 2.28  Chief Financial Officer.

    (a) The Chief Financial Officer, under the supervision of the 
Secretary, is responsible for executing the duties enumerated for agency 
Chief Financial Officers in the Chief Financial Officers Act of 1990, 
Public Law No. 101-576, 31 U.S.C. 902, including:
    (1) Reporting directly to the Secretary of Agriculture regarding 
financial management matters and the financial execution of the budget.
    (2) Overseeing all financial management activities relating to the 
programs and operations of the Department and component agencies.
    (3) Developing and maintaining an integrated accounting and 
financial system for the Department and component agencies, including 
financial reporting and internal controls, which--
    (i) Complies with applicable accounting principles, standards, and 
requirements, and internal control standards;
    (ii) Complies with such policies and requirements as may be 
prescribed by the Director of the Office of Management and Budget;
    (iii) Complies with any other requirements applicable to such 
systems; and
    (iv) Provides for complete, reliable, consistent, and timely 
information which is prepared on a uniform basis and which is responsive 
to the financial information needs of Department management and for the 
development and reporting of cost information, the integration of 
accounting and budgeting information, and the systematic measurement of 
performance.
    (4) Making recommendations to the Secretary regarding the selection 
of the Deputy Chief Financial Officer of the Department, and selection 
of principal financial officers of component agencies of the Department.
    (5) Directing, managing, and providing policy guidance and oversight 
of Department financial management personnel, activities, and 
operations, including:
    (i) Preparing and annually revising a Departmental plan to:
    (A) Implement the 5-year financial management plan prepared by the 
Director of the Office of Management and Budget under 31 U.S.C. 
3512(a)(3); and
    (B) Comply with the requirements established for agency financial 
statements under 31 U.S.C. 3515 and with the requirements for audits of 
Department financial statements established in 31 U.S.C. 3521(e) and 
(f).
    (ii) Developing Departmental financial management budgets, including 
the oversight and recommendation of approval of component agency 
financial management budgets;

[[Page 190]]

    (iii) Recruiting, selecting, and training of personnel to carry out 
Departmental financial management functions;
    (iv) Approving and managing Departmental, and approving component 
agency, financial management systems design or enhancement projects; and
    (v) Implementing and approving Departmental, and approving component 
agency, asset management systems, including systems for cash management, 
credit management, debt collection, and property and inventory 
management and control.
    (6) Preparing and transmitting, by not later than 60 days after the 
submission of the audit report required by 31 U.S.C. 3521(f), an annual 
report to the Secretary and the Director of the Office of Management and 
Budget, which shall include:
    (i) A description and analysis of the status of financial management 
of the Department;
    (ii) The annual financial statements prepared under 31 U.S.C. 3521;
    (iii) The audit report transmitted to the Secretary under 31 U.S.C. 
3521;
    (iv) A summary of the reports on internal accounting and 
administrative control systems submitted to the President and the 
Congress under the amendments made by the Federal Managers' Financial 
Integrity Act of 1982 (31 U.S.C. 1113, 3512); and
    (v) Other information the Secretary considers appropriate to inform 
fully the President and the Congress concerning the financial management 
of the Department.
    (7) Monitoring the financial execution of the budget of the 
Department in relation to projected and actual expenditures, and 
preparing and submitting to the Secretary timely performance reports.
    (8) Reviewing, on a biennial basis, the fees, royalties, rent, and 
other charges imposed by the Department for services and things of value 
it produces, and making recommendations on revising those charges to 
reflect costs incurred by the Department in providing those services and 
things of value.
    (9) Accessing all records, reports, audits, reviews, documents, 
papers, recommendations, or other material that are the property of the 
Department or that are available to the Department, and that relate to 
programs and operations with respect to which the Chief Financial 
Officer has responsibilities, except that this grant allows no access 
greater than that permitted under any other law to records, reports, 
audits, reviews, documents, papers, recommendations, or other material 
of the Office of Inspector General.
    (10) Requesting such information or assistance as may be necessary 
for carrying out the duties and responsibilities granted the Chief 
Financial Officer by the Chief Financial Officers Act of 1990 (Pub. L. 
No. 101-576), from any Federal, State, or local governmental entity.
    (11) To the extent and in such amounts as may be provided in advance 
by appropriations acts, entering into contracts and other arrangements 
with public agencies and with private persons for the preparation of 
financial statements, studies, analyses, and other services, and making 
such payments as may be necessary to carry out the duties and 
prerogatives of the Chief Financial Officer.
    (b) In addition to the above responsibilities, the following 
delegations of authority are made by the Secretary of Agriculture to the 
Chief Financial Officer:
    (1) Designate the Department's Director of Finance and Comptroller 
of the Department Working Capital Fund.
    (2) Establish Departmental policies, standards, techniques, and 
procedures applicable to all USDA agencies for the following areas:
    (i) Development, maintenance, review and approval of all 
departmental, and review and approval of component agency, internal 
control, fiscal, financial management and accounting systems including 
the financial aspects of payroll and property systems;
    (ii) Selection, standardization, and simplification of program 
delivery processes utilizing grants, cooperative agreements and other 
forms of Federal assistance;
    (iii) Review and approval of Federal assistance, internal control, 
fiscal, accounting and financial management regulations and instructions 
proposed

[[Page 191]]

or issued by USDA agencies for conformity with Departmental 
requirements; and
    (iv) Section 5301 of the Anti-Drug Abuse Act of 1988 (21 U.S.C. 
853a) as it relates to grants, loans, and licenses.
    (3) Establish policies related to the Department Working Capital 
Fund.
    (4) Approve regulations, procedures and rates for goods and services 
financed through the Department Working Capital Fund which will impact 
the financial administration of the Fund.
    (5) Exercise responsibility and authority for operating USDA's 
Central Accounting System and related administrative systems including:
    (i) Management of the National Finance Center (NFC), which includes 
developing, maintaining, and operating manual and automated 
administrative and accounting systems for the USDA agencies related to 
the Central Accounting System, Departmentwide payroll and personnel 
information, statistics, administrative payments, billings and 
collections, and related reporting systems that are either requested by 
the agencies or required by the Department;
    (ii) Management of the NFC automated data processing and 
telecommunications systems and coordination with the Office of 
Information Resources Management to assure that the hardware and 
software located at the NFC will be integrated with and compatible with 
all other systems;
    (iii) Develop new or modified accounting systems and documentation 
supporting the Central Accounting System which includes working with 
USDA agencies to obtain General Accounting Office approval; and
    (iv) Review and approve the issuance of accounting and management 
instructions related to the operation of the NFC.
    (6) Provide management support services for the NFC, and by 
agreement with agency heads concerned, provide such services for other 
USDA tenants housed in the same facility. As used herein, such 
management support services shall include:
    (i) Personnel services, as listed in Sec. 2.24(a)(5)(x), and 
organizational support services, with authority to take actions required 
by law or regulation to perform such services; and
    (ii) Procurement, property management, space management, 
communications, messenger, paperwork management, and related 
administrative services, with authority to take actions required by law 
or regulation to perform such services.
    (7) Exercise responsibility and authority for all matters related to 
the Department's accounting and financial operations including such 
activities as:
    (i) Financial administration, including accounting and related 
activities;
    (ii) Reviewing financial aspects of agency operations and proposals;
    (iii) Furnishing consulting services to agencies to assist them in 
developing and maintaining accounting and financial management systems 
and internal controls, and for other purposes consistent with 
delegations in paragraph (b)(2) of this section;
    (iv) Reviewing and monitoring agency implementation of Federal 
assistance policies;
    (v) Reviewing and approving agencies' accounting systems 
documentation including related development plans, activities, and 
controls;
    (vi) Monitoring agencies' progress in developing and revising 
accounting and financial management systems and internal controls;
    (vii) Evaluating agencies' financial systems to determine the 
effectiveness of procedures employed, compliance with regulations, and 
the appropriateness of policies and practices;
    (viii) Promulgation of Department schedule of fees and charges for 
reproductions, furnishing of copies and making searches for official 
records pursuant to the Freedom of Information Act, 5 U.S.C. 552; and
    (ix) Monitoring USDA implementation of section 5301 of the Anti-Drug 
Abuse Act of 1988 (21 U.S.C. 853a) as it relates to grants, loans, and 
licenses.
    (8) Establish Department and approve component agency programs, 
policies, standards, systems, techniques and procedures to improve the 
management and operational efficiency and effectiveness of the USDA 
including:

[[Page 192]]

    (i) Implementation of the policies and procedures set forth in OMB 
Circulars No. A-76: Performance of Commercial Activities, and No. A-117: 
Management Improvement and the Use of Evaluation in the Executive 
Branch;
    (ii) Increased use of operations research and management science in 
the areas of productivity and management; and
    (iii) All activities financed through the Department Working Capital 
Fund.
    (9) Designate the Commercial Industrial Officer for USDA.
    (10) Develop Departmental policies, standards, techniques, and 
procedures for the conduct of reviews and analysis of the utilization of 
the resources of State and local governments, other Federal agencies and 
of the private sector in domestic program operations.
    (11) Represent the Department in contacts with the Office of 
Management and Budget, General Services Administration, General 
Accounting Office, Department of the Treasury, Office of Personnel 
Management, Department of Health and Human Services, Department of 
Labor, Environmental Protection Agency, Department of Commerce, Congress 
of the United States, State and local governments, universities, and 
other public and private sector individuals, organizations or agencies 
on matters related to assigned responsibilities.
    (12) Maintain the Departmental inventory of commercial activities 
required by OMB Circular No. A-76 and provide Departmentwide technical 
assistance to accomplish Circular objectives.
    (13) Establish policies related to travel by USDA employees.
    (14) Exercise responsibility for coordinating and overseeing the 
implementation of the Government Performance and Results Act of 1993, 
Pub. L. No. 103-62, at the Department.
    (15) Exercise responsibility for design, implementation, and 
oversight of the Department's project known as Financial Information 
Systems Vision, and approval of the design and implementation of an 
integrated financial information and management system for the 
Department and all component agencies.
    (16) Provide budget, accounting, fiscal and related financial 
management services, with authority to take action required by law or 
regulation to provide such services for Working Capital Funds and 
general appropriated and trust funds for:
    (i) The Secretary of Agriculture;
    (ii) The general officers of the Department, except the Inspector 
General;
    (iii) The offices and agencies reporting to the Assistant Secretary 
for Administration; and
    (iv) Any other officers and agencies of the Department as may be 
agreed.



Sec. 2.29  Chief Economist.

    (a) The following delegations of authority are made by the Secretary 
of Agriculture to the Chief Economist:
    (1) Related to economic analysis. (i) Coordinate economic analyses 
of, and review Department decisions involving, policies and programs 
that have substantial economic implications.
    (ii) Review and assess the economic impact of all significant 
regulations proposed by any agency of the Department.
    (iii) Review economic data and analyses used in speeches and 
Congressional testimony by Department personnel and in materials 
prepared for release through the press, radio, and television.
    (2) Related to risk assessment. (i) Responsible for assessing the 
risks to human health, human safety, or the environment, and for 
preparing cost-benefit analyses, with respect to proposed major 
regulations, and for publishing such assessments and analyses in the 
Federal Register as required by section 304 of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 2204e).
    (ii) Provide direction to Department agencies in the appropriate 
methods of risk assessment and cost-benefit analyses and coordinate and 
review all risk assessments and cost-benefit analyses prepared by any 
agency of the Department.
    (3) Related to food and agriculture outlook and situation. (i) 
Coordinate and review all crop and commodity data used to develop 
outlook and situation material within the Department.

[[Page 193]]

    (ii) Oversee and clear for consistency analytical assumptions and 
results of all estimates and analyses which significantly relate to 
international and domestic commodity supply and demand, including such 
estimates and analyses prepared for public distribution by the Foreign 
Agricultural Service, the Economic Research Service, or by any other 
agency or office of the Department.
    (4) Related to weather and climate. (i) Advise the Secretary on 
climate and weather activities, and coordinate the development of policy 
options on weather and climate.
    (ii) Coordinate all weather and climate information and monitoring 
activities within the Department and provide a focal point in the 
Department for weather and climate information and impact assessment.
    (iii) Arrange for appropriate representation to attend all meetings, 
hearings, and task forces held outside the Department which require such 
representation.
    (iv) Designate the Executive Secretary of the USDA Weather and 
Climate Program Coordinating Committee.
    (5) Related to interagency commodity estimates committees. (i) 
Establish Interagency Commodity Estimates Committees for Commodity 
Credit Corporation price-supported commodities, for major products 
thereof, and for commodities where a need for such a committee has been 
identified, in order to bring together estimates and supporting analyses 
from participating agencies, and to develop official estimates of 
supply, utilization, and prices for commodities, including the effects 
of new program proposals on acreage, yield, production, imports, 
domestic utilization, price, income, support programs, carryover, 
exports, and availabilities for export.
    (ii) Designate the Chairman, who shall also act as Secretary, for 
all Interagency Commodity Estimates Committees.
    (iii) Assure that all committee members have the basic assumptions, 
background data and other relevant data regarding the overall economy 
and market prospects for specific commodities.
    (iv) Review for consistency of analytical assumptions and results 
all proposed decisions made by Commodity Estimates Committees prior to 
any release outside the Department.
    (6) Related to remote sensing. (i) Provide technical assistance, 
coordination, and guidance to Department agencies in planning, 
developing, and carrying out satellite remote sensing activities to 
assure full consideration and evaluation of advanced technology.
    (ii) Coordinate administrative, management, and budget information 
relating to the Department's remote sensing activities including:
    (A) Inter- and intra-agency meetings, correspondence, and records;
    (B) Budget and management tracking systems; and
    (C) Inter-agency contacts and technology transfer.
    (iii) Designate the Executive Secretary for the Remote Sensing 
Coordination Committee.
    (7) Related to long-range commodity and agricultural-sector 
projections. Establish committees of the agencies of the Department to 
coordinate the development of a set of analytical assumptions and long-
range agricultural-sector projections (2 years and beyond) based on 
commodity projections consistent with these assumptions and coordinated 
through the Interagency Commodity Estimates Committees.
    (8) Related to agricultural labor affairs. Exercise the following 
functions of the Secretary under the Immigration and Nationality Act 
(INA), as amended (8 U.S.C. 1101 et seq.):
    (i) Pursuant to section 214(c) of INA (8 U.S.C. 1184(c)), provide 
consultation to the Attorney General and the Secretary of Labor 
concerning the question of the importation of aliens as nonimmigrant 
temporary agricultural workers, known as ``H-2A'' workers, under 8 
U.S.C. 1101(a)(15)(H)(ii)(a);
    (ii) Pursuant to section 218(e) of the INA (8 U.S.C. 1188 note), 
provide consultation to the Attorney General and the Secretary of Labor 
concerning all regulations to implement 8 U.S.C. 101(a)(15)(H)(ii)(a) 
and 1188 providing for the importation of H-2A workers;
    (iii) Pursuant to section 210(h) of the INA (8 U.S.C. 1160(h)), 
promulgate regulations to define ``seasonal agricultural services'' for 
purposes of the Special Agricultural Worker (SAW) Program;

[[Page 194]]

    (iv) Pursuant to section 210A(a) of the INA (8 U.S.C. 1161(a)), 
determine jointly with the Secretary of Labor the number (if any) of 
additional special agricultural workers, known as ``replenishment 
agricultural workers'' (RAWs), who should be admitted to the United 
States or otherwise acquire the status of aliens lawfully admitted for 
temporary residence during fiscal years 1990 through 1993 to meet a 
shortage of workers to perform seasonal agricultural services in the 
United States during each such fiscal year;
    (v) Pursuant to section 210A(a)(7) of the INA (8 U.S.C. 1161(a)(7)), 
determine jointly with the Secretary of Labor emergency requests to 
increase the shortage number;
    (vi) Pursuant to section 210A(a)(8) of the INA (8 U.S.C. 
1161(a)(8)), determine jointly with the Secretary of Labor requests to 
decrease the number of man-days of seasonal agricultural services 
required of RAWs to avoid deportation and for naturalization under 
section 210A(d)(5)(A) and (B) of the INA (8 U.S.C. 1161(d)(5)(A) and 
(B));
    (vii) Pursuant to section 210A(b)(1) of the INA (8 U.S.C. 
1161(b)(1)), calculate jointly with the Secretary of Labor and annual 
numerical limitation on the number of RAWs who may be admitted or 
otherwise acquire the status of aliens lawfully admitted for temporary 
residence during fiscal years 1990 through 1993 under section 210A(c)(1) 
of the INA (8 U.S.C. 1161(c)(1)); and
    (viii) Pursuant to section 210A(b)(2) of the INA (8 U.S.C. 
1161(b)(2)), establish jointly with the Secretary of Labor the 
information that must be reported by any person or entity who employs 
SAWs or RAWs in seasonal agricultural services during fiscal years 1989 
through 1992, and to designate jointly with the Secretary of Labor the 
official to whom the person or entity must furnish such certification.
    (9) Related to the Capper-Volstead Act. Serve as Chairman of the 
Capper-Volstead Act Committee to identify cases of undue price 
enhancement by associations of producers and issue complaints requiring 
such associations to show cause why an order should not be made 
directing them to cease and desist from monopolization or restraint of 
trade. The Chairman is authorized to call upon any agency of the 
Department for support in carrying the functions of the Committee (7 
U.S.C. 292).
    (10) Related to committee management. Establish and reestablish 
regional, state, and local advisory committees for activities under his 
or her authority. This authority may not be redelegated.



Sec. 2.30  Director, Office of Budget and Program Analysis.

    (a) The following delegations of authority are made by the Secretary 
of Agriculture to the Director, Office of Budget and Program Analysis:
    (1) Serve as the Department's Budget Officer and exercise general 
responsibility and authority for all matters related to the Department's 
budgeting affairs including:
    (i) Resource administration, including all phases of the 
acquisition, and distribution of funds and staff years; and
    (ii) Legislative and regulatory reporting and related activities.
    (2) Provide staff assistance for the Secretary, general officers, 
and other Department and agency officials.
    (3) Formulate and promulgate Departmental budgetary, legislative and 
regulatory policies and procedures.
    (4) Represent the Department in contacts with the Office of 
Management and Budget, the General Accounting Office, the Treasury 
Department, Congressional Committees on Appropriations, and other 
organizations and agencies on matters related to his or her 
responsibility.
    (5) Coordinate and/or conduct policy and program analyses on agency 
operations and proposals to assist the Secretary, general officers and 
other Department and agency officials in formulating and implementing 
USDA policies and programs.
    (6) Review and analyze legislation, regulations, and policy options 
to determine their impact on USDA programs and policy objectives and on 
the Department's budget.
    (7) Monitor ongoing studies with significant program or policy 
implications.
    (b) The following authority is reserved to the Secretary of 
Agriculture:

[[Page 195]]

Final approval of the Department's program and financial plans.



Sec. 2.31  General Counsel.

    The General Counsel, as the chief law officer of the Department, is 
legal adviser to the Secretary and other officials of the Department and 
responsible for providing legal services for all the activities of the 
Department. The delegations of authority by the Secretary of Agriculture 
to the General Counsel include the following:
    (a) Consider, ascertain, adjust, determine, compromise, and settle 
claims pursuant to the Federal Tort Claims Act, as amended (28 U.S.C. 
2671-2680), and the regulations of the Attorney General contained in 28 
CFR part 14; and consider, ascertain, adjust, determine, compromise, and 
settle claims pursuant to section 920 of the Federal Agriculture 
Improvement and Reform Act of 1996, Public Law 104-127 (7 U.S.C. 2262a).
    (b) Certify documents as true copies of those on file in the 
Department.
    (c) Sign releases of claims of the United States against private 
persons for damage to or destruction of property of the department, 
except those claims cognizable under the Contract Disputes Act of 1978 
(41 U.S.C. 601 et seq.).
    (d) Responsible for the overall management and operation of the Law 
Library, furnishing complete legal and legislative library services to 
the Office of the General Counsel and the Department.
    (e) Make determinations as to whether employees of the Department 
may retain commercial rights in inventions; prepare patent applications 
and prosecute the same before the Patent Office.
    (f) Represent the Department in formal rulemaking and adjudicatory 
proceedings held in connection with the administration of the 
Department's activities, and decide whether initial decisions of the 
administrative law judges shall be appealed by the Department to the 
Secretary.
    (g) Represent the Department in connection with legal issues that 
arise in its relations with the Congress, the General Accounting Office, 
or other agencies of the Government.
    (h) Represent the Department in proceedings before the Interstate 
Commerce Commission involving freight rates on farm commodities, and in 
appeals from decisions of the Commission to the courts.
    (i) In civil actions arising out of the activities of the 
Department, present the Department's case to the Attorney General and 
U.S. attorneys and, upon request of the Department of Justice, assist in 
the preparation and trial of such cases and in the briefing and argument 
of such cases at the appellate level.
    (j) Review cases having criminal aspects and refer them to the 
Department of Justice.
    (k) Act as liaison between the Department and the Department of 
Justice.
    (l) Perform the following legal services:
    (1) Render legal opinions on questions arising in the conduct of the 
Department's activities;
    (2) Prepare or review regulations;
    (3) Draft proposed legislation;
    (4) Prepare or review contracts, mortgages, deeds, leases, and other 
documents; and
    (5) Examine titles to land to be acquired or accepted as security 
for loans.
    (m) Perform such other legal services as may be required in the 
administration of the Department's activities, including the defense 
program.
    (n) Serve as a member of the Capper-Volstead Act Committee to 
identify cases of undue price enhancement by associations of producers 
and issue complaints requiring such associations to show cause why an 
order should not be made directing them to cease and desist from 
monopolization or restraint of trade (7 U.S.C. 292).
    (o) Settle claims for damage to, or loss of, privately owned 
property pursuant to the provisions of 31 U.S.C. 3723.

[60 FR 56393, Nov. 8, 1995, as amended at 61 FR 49237, Sept. 19, 1996]

[[Page 196]]



Sec. 2.32  Alternative Agricultural Research and Commercialization Board.

    The following delegation of authority is made by the Secretary of 
Agriculture to the Alternative Agricultural Research and 
Commercialization Board: Enter into contracts, grants, or cooperative 
agreements to further research programs in the agricultural sciences (7 
U.S.C. 3318).



Sec. 2.33  Inspector General.

    (a) The following delegations of authority are made by the Secretary 
of Agriculture to the Inspector General:
    (1) Advise the Secretary and General officers in the planning, 
development, and execution of Department policies and programs.
    (2) Provide for the personal security of the Secretary and the 
Deputy Secretary.
    (3) Serve as liaison official for the Department for all audits of 
USDA performed by the General Accounting Office.
    (4) In addition to the above delegations of authority, the Inspector 
General, under the general supervision of the Secretary, has specific 
duties, responsibilities, and authorities pursuant to the Inspector 
General Act of 1978, Pub. L. No. 95-452, 5 U.S.C. App.
    (b) The following authority is reserved to the Secretary of 
Agriculture: Approving the implementation in the Office of Inspector 
General of administrative policies or procedures that contravene 
standard USDA administrative policies as promulgated by the Assistant 
Secretary for Administration.



Sec. 2.34  Director, National Appeals Division.

    The Director, National Appeals Division, under the general 
supervision of the Secretary, has specific duties, responsibilities, and 
authorities pursuant to subtitle H of the Department of Agriculture 
Reorganization Act of 1994, Pub. L. No. 103-354, title II (7 U.S.C. 6991 
et seq.), including:
    (a) Deciding appeals from adverse decisions, made by an officer or 
employee of an agency of the Department designated by the Secretary, 
that are adverse to participants. The term ``agency'' shall include the 
following and any predecessor agency: the Farm Service Agency; the 
Commodity Credit Corporation (with respect to domestic programs); the 
Federal Crop Insurance Corporation; the Rural Housing Service; the Rural 
Business-Cooperative Service; the Natural Resources Conservation 
Service; and a State, county, or area committee established under 
section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 
U.S.C. 590h(b)(5)); and
    (b) The authority to appoint such hearing officers and other 
employees as are necessary for the administration of the activities of 
the Division.



Sec. 2.35  Judicial Officer.

    The following delegations of authority are made by the Secretary of 
Agriculture to the Judicial Officer: Pursuant to the provisions of the 
Act of April 4, 1940 (7 U.S.C. 450c-450g), and Reorganization Plan No. 2 
of 1953 (5 U.S.C. App.), the Judicial Officer is hereby authorized to 
act as final deciding officer in adjudication proceedings subject to 5 
U.S.C. 556 and 557; in other adjudication proceedings which are or may 
be made subject to the ``Rules of Practice Governing Formal Adjudicatory 
Proceedings Instituted by the Secretary Under Various Statutes'' set 
forth in part 1, subpart H of this title; in adjudication proceedings 
under the ``Rules of Practice Governing Cease and Desist Proceedings 
Under Section 2 of the Capper-Volstead Act'' set forth in part 1, 
subpart I of this title; in rate proceedings under the Packers and 
Stockyards Act; in adjudication proceedings under the ``Procedures 
Related to Administrative Hearings Under the Program Fraud Civil 
Remedies Act of 1986'' set forth in part 1, subpart L of this title; in 
adjudication proceedings subject to the ``Rules of Practice Governing 
the Adjudication of Sourcing Area Applications and Formal Review of 
Sourcing Areas Pursuant to the Forest Resources Conservation and 
Shortage Relief Act of 1990 (16 U.S.C. 620, et seq.)'' set forth in part 
1, subpart M of this title; and in reparation proceedings under statutes 
administered by the Department. As used herein the term ``Judicial 
Officer'' shall mean any person or persons so designated by the

[[Page 197]]

Secretary of Agriculture. The provisions of this delegation shall not be 
construed to limit the authority of the Judicial Officer to perform any 
functions, in addition to those defined in the said Act of April 4, 
1940, which from time to time may be assigned by the Secretary to him or 
her.



Sec. 2.36  Director, Office of Communications.

    (a) Delegations. The following delegations of authority are made by 
the Secretary of Agriculture to Director, Office of Communications:
    (1) Related to public affairs. (i) Advise and counsel general 
officers on public affairs matters to the Department.
    (ii) Organize and direct the activities of a public affairs office 
to include press relations of the secretary of agriculture and other 
executive functions and services for general officers of the Department.
    (2) Related to information activities. (i) Advise the secretary and 
general officers in the planning, development, and execution of 
Department policies and programs.
    (ii) Direct and coordinate the overall formulation and development 
of policies, programs, plans, procedures, standards and organization 
structures and staffing patterns for the information activities of the 
Department and its agencies, both in Washington and in the field.
    (iii) Exercise final review and approval of all public information 
material prepared by the Department and its agencies and select the most 
effective method and audience for distributing this information.
    (iv) Serve as the central public information authority in the USDA, 
with the authority to determine policy for all USDA communication 
activities and agency information activities in order to provide 
leadership and centralized operational direction for USDA and agency 
information activities so that all material shall effectively support 
USDA policies and programs, including the defense program.
    (v) Serve as the central printing authority in the USDA, with 
authority to represent the USDA with Joint Committee on Printing of the 
Congress, the Government Printing Office, and other Federal and State 
agencies on information matters.
    (vi) Cooperate with and secure the cooperation of commercial, 
industrial and other nongovernmental agencies and concerns regarding 
information work as required in the execution of the Department's 
programs.
    (vii) Plan and direct communication research and training for the 
Department and its agencies.
    (viii) Oversee general officers and agency heads in the development 
and implementation of information policies issued pursuant to the 
provisions of the ``Freedom of Information Act'' (5 U.S.C. 552) and the 
``Privacy Act'' (5 U.S.C. 552a), and provide consultation regarding 
those policies.
    (ix) Supervise and provide leadership and final clearance for the 
planning, production, and distribution of visual information material 
for the department and its agencies in Washington, D.C., and the field, 
and provide such information services as may be deemed necessary.
    (x) Maintain overall responsibility and control over the preparation 
of the ``Agricultural Decisions.''
    (xi) Administer, direct and coordinate publications and user fee 
authority granted under section 1121 of the Agriculture and Food Act of 
1981, as amended by section 1769 of the Food Security Act of 1985, 7 
U.S.C. 2242a; and publish any appropriate regulations necessary to the 
exercise of this authority.
    (b) [Reserved]



       Subpart E--Delegations of Authority by the Deputy Secretary



Sec. 2.37  Director, Office of Small and Disadvantaged Business Utilization

    (a) Delegations. Pursuant to Sec. 2.15, the following delegations of 
authority are made by the Deputy Secretary to the Director, Office of 
Small and Disadvantaged Business Utilization:
    (1) The Director, Office of Small and Disadvantaged Business 
Utilization, under the supervision of the Deputy Secretary, has specific 
responsibilities under the Small Business Act, 15 U.S.C. 644(k). These 
duties include being responsible for the following:

[[Page 198]]

    (i) Administering the Department's small and disadvantaged business 
activities related to procurement contracts, minority bank deposits, and 
grants and loan activities affecting small and minority business, 
including women-owned business, Labor Surplus Area concerns, and the 
small business and small minority business subcontracting programs;
    (ii) Providing Departmentwide liaison and coordination of activities 
related to small and disadvantaged business with the Small Business 
Administration and others in the public and private sector;
    (iii) Developing policies and procedures required by the applicable 
provisions of the Small Business Act, as amended to include the 
establishment of goals; and
    (iv) Implementing and administering programs described under 
sections 8 and 15 of the Small Business Act, as amended (15 U.S.C. 637 
and 644).
    (2) In addition to the responsibilities in paragraph (a)(1) of this 
section, the following delegations of authority are made by the Deputy 
Secretary of Agriculture to the Director, Office of Small and 
Disadvantaged Business Utilization:
    (i) Pursuant to the Office of Federal Procurement Policy Act (Act), 
as amended (41 U.S.C. 401 et seq.), is designated as the Department's 
Advocate for Competition with responsibility for sections 20 and 21 of 
the Act (41 U.S.C. 418 and 418a), including:
    (A) Reviewing the procurement activities of the Department;
    (B) Developing new initiatives to increase full and open 
competition;
    (C) Developing goals and plans and recommending actions to increase 
competition;
    (D) Challenging conditions unnecessarily restricting competition in 
the acquisition of supplies and services;
    (E) Designating an Advocate for Competition for each procuring 
activity within the Department; and
    (F) Preparing the annual report to the Congress for transmittal by 
the Secretary on activities of the Advocate for Competition.
    (b) [Reserved]



Subpart F--Delegations of Authority by the Under Secretary for Farm and 
                      Foreign Agricultural Services

    Editorial Note: Nomenclature changes to subpart F appear at 60 FR 
66713, Dec. 26, 1995.



Sec. 2.40  Deputy Under Secretary for Farm and Foreign Agricultural Services.

    Pursuant to Sec. 2.16(a), subject to reservations in Sec. 2.16(b), 
and subject to policy guidance and direction by the Under Secretary, the 
following delegation of authority is made to the Deputy Under Secretary 
for Farm and Foreign Agricultural Services, to be exercised only during 
the absence or unavailability of the Under Secretary: Perform all the 
duties and exercise all the powers which are now or which may hereafter 
be delegated to the Under Secretary for Farm and Foreign Agricultural 
Services: Provided, that this authority shall be exercised by the 
respective Deputy Under Secretary in the order in which he or she has 
taken office as a Deputy Under Secretary.



Sec. 2.42  Administrator, Farm Service Agency.

    (a) Delegations. Pursuant to Sec. 2.16(a)(1) through (a)(4) and 
(a)(6) through (a)(8), subject to the reservations in Sec. 2.16(b)(1), 
the following delegations of authority are made by the Under Secretary 
for Farm and Foreign Agricultural Services to the Administrator, Farm 
Service Agency:
    (1) Formulate policies and administer programs authorized by the 
Agricultural Adjustment Act of 1938, as amended (7 U.S.C. 1282 et seq.).
    (2) Formulate policies and administer programs authorized by the 
Agricultural Act of 1949, as amended (7 U.S.C. 1441 et seq.), except the 
provisions of section 416(a)(1), (a)(2) and (b) of the Agricultural Act 
of 1949, as amended, unless specifically provided herein.
    (3) Coordinate and prevent duplication of aerial photographic work 
of the Department, including:
    (i) Clearing photography projects;
    (ii) Assigning symbols for new aerial photography, maintaining 
symbol records, and furnishing symbol books;

[[Page 199]]

    (iii) Recording departmental aerial photography flow and 
coordinating the issuance of aerial photography status maps of latest 
coverage;
    (iv) Promoting interchange of technical information and techniques 
to develop lower costs and better quality;
    (v) Representing the Department on committees, task forces, work 
groups, and other similar groups concerned with aerial photography 
acquisition and reproduction;
    (vi) Providing a Chairperson for the Photography Sales Committee of 
the Department;
    (vii) Coordinating development, preparation, and issuance of 
specifications for aerial photography for the Department;
    (viii) Coordinating and performing procurement, inspection, and 
application of specifications for USDA aerial photography;
    (ix) Providing for liaison with EROS Data Center to support USDA 
programs and research with satellite imagery reproductions; and
    (x) Maintaining library and files of USDA aerial film and retrieving 
and supplying reproductions on request.
    (4) Administer the Agricultural Conservation Program under title X 
of the Agricultural Act of 1970, as amended (16 U.S.C. 1501 et seq.), 
and under the Soil Conservation and Domestic Allotment Act, as amended 
(16 U.S.C. 590g et seq.).
    (5) Administer responsibilities and functions assigned under the 
Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et 
seq.), and title VI of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5195 et seq.), relating to 
agricultural production; food processing, storage, and distribution of 
farm equipment and fertilizers. rehabilitation and use of feed, 
agricultural and related agribusiness facilities; and farm credit and 
financial assistance.
    (6) Administer the Emergency Conservation Program under the 
Agricultural Credit Act of 1978, as amended (16 U.S.C. 2201 et seq.).
    (7) Conduct fiscal, accounting and claims functions relating to CCC 
programs for which the Foreign Agricultural Service has been delegated 
authority under Sec. 2.43 and, in conjunction with other agencies of the 
U.S. Government, develop and formulate agreements to reschedule amounts 
due from foreign countries.
    (8) Conduct assigned activities under the Strategic and Critical 
Materials Stockpiling Act, as amended (50 U.S.C. 98 et seq.).
    (9) Supervise and direct Farm Service Agency State and county 
offices and designate functions to be performed by Farm Service Agency 
State and county committees.
    (10) Administer the Dairy Indemnity Program under the Act of August 
13, 1968, as amended (7 U.S.C. 450j et seq.).
    (11) Administer procurement, processing, handling, distribution, 
disposition, transportation, payment, and related services with respect 
to surplus removal and supply operations which are carried out under 
section 210 of the Agricultural Act of 1956 (7 U.S.C. 1859), the Act of 
August 19, 1958, as amended (7 U.S.C. 1431 note), and section 709 of the 
Food and Agriculture Act of 1965, as amended (7 U.S.C. 1446a-1), except 
as delegated to the Under Secretary for Food, Nutrition, and Consumer 
Services in Sec. 2.19 and to the Under Secretary for Farm and Foreign 
Agricultural Services in Sec. 2.16(a)(3), and assist the Food and 
Consumer Service and the Agricultural Marketing Service in the 
procurement, handling, payment, and related services under section 32 of 
the Act of August 24, 1935, as amended (7 U.S.C. 612c), the Act of June 
28, 1937, as amended (7 U.S.C. 713c), the National School Lunch Act, as 
amended (42 U.S.C. 1751 et seq.), section 8 of the Child Nutrition Act 
of 1966, as amended (42 U.S.C. 1777), section 311 of the Older Americans 
Act of 1965, as amended (42 U.S.C. 3030a), and section 4(a) of the 
Agriculture and Consumer Protection Act of 1973, as amended (7 U.S.C. 
612c note), and section 1114 of the Agriculture and Food Act of 1981 (7 
U.S.C. 1431e).
    (12) Administer commodity procurement and supply, transportation 
(other than from point of export, except for movement to trust 
territories or possessions), handling, payment, and related services in 
connection with programs under titles II and III of Public Law 480 (7 
U.S.C. 1691, 1701 et seq.), and

[[Page 200]]

payment and related services with respect to export programs and barter 
operations.
    (13) [Reserved]
    (14) Administer the Agricultural Foreign Investment Disclosure Act 
of 1978 (7 U.S.C. 3501 et seq.) except those functions delegated in 
Sec. 2.21(a)(8)(xi).
    (15) Administer energy management activities as assigned.
    (16) Conduct producer referenda of commodity promotion programs 
under the Beef Research and Information Act, as amended (7 U.S.C. 2901 
et seq.) and the Agricultural Promotion Programs Act of 1990, as amended 
(7 U.S.C. 6001 et seq.).
    (17) Conduct field operations of diversion programs for fresh fruits 
and vegetables under section 32 of the Act of August 29, 1935.
    (18) Administer the U. S. Warehouse Act, as amended (7 U.S.C. 241-
273), and perform compliance examinations for Farm Service Agency 
programs.
    (19) Administer the provisions of the Soil Conservation and Domestic 
Allotment Act relating to assignment of payments (16 U.S.C. 590h(g)).
    (20) Formulate and carry out the Conservation Reserve Program under 
the Food Security Act of 1985, as amended (16 U.S.C. 1231 et seq.).
    (21) Carry out functions relating to highly erodible land and 
wetland conservation under sections 1211-1213 and 1221-1223 of the Food 
Security Act of 1985, as amended (16 U.S.C. 3811-3813 and 3821-3823).
    (22) With respect to land and facilities under his or her authority, 
exercise the functions delegated to the Secretary by Executive Order 
12580, 3 CFR, 1987 Comp., p. 193, under the following provisions of the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (``the Act''), as amended:
    (i) Sections 104(a), (b), and (c)(4) of the Act (42 U.S.C. 9604(a), 
(b), and (c)(4)), with respect to removal and remedial actions in the 
event of release or threatened release of a hazardous substance, 
pollutant, or contaminant into the environment;
    (ii) Sections 104(e)-(h) of the Act (42 U.S.C. 9604(e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards and wage and labor 
standards applicable to covered work; and emergency procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petition for preliminary assessment of a 
release or threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) 
pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (ix) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon which to base the selection 
of a response action and identifying and notifying potentially 
responsible parties;
    (x) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xi) Sections 117(a) and (c) of the Act (42 U.S.C. 9617(a) and (c)), 
with respect to public participation in the preparation of any plan for 
remedial action and explanation of variances from the final remedial 
action plan for any remedial action or enforcement action, including any 
settlement or consent decree entered into;
    (xii) Section 119 of the Act (42 U.S.C. 9119), with respect to 
indemnifying response action contractors;

[[Page 201]]

    (xiii) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xiv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), related to mixed funding agreements.
    (23) With respect to facilities and activities under his or her 
authority, to exercise the authority of the Secretary of Agriculture 
pursuant to section 1-102 related to compliance with applicable 
pollution control standards and section 1-601 of Executive Order 12088, 
3 CFR, 1978 Comp., p. 243, to enter into an inter-agency agreement with 
the United States Environmental Protection Agency, or an administrative 
consent order or a consent judgment in an appropriate State, interstate, 
or local agency, containing a plan and schedule to achieve and maintain 
compliance with applicable pollution control standards established 
pursuant to the following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, as further amended by the Hazardous and 
Solid Waste Amendments, and the Federal Facility Compliance Act (42 
U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).
    (24) Administer the Integrated Farm Management Program under section 
1451 of the Food, Agriculture, Conservation, and Trade Act of 1990, as 
amended (7 U.S.C. 5822).
    (25) Administer the provisions of section 326 of the Food and 
Agricultural Act of 1962, as amended (7 U.S.C. 1339c), as they relate to 
any Farm Service Agency administered program.
    (26) Conduct an Options Pilot Program pursuant to sections 1151-1156 
of the Food, Agriculture, Conservation, and Trade Act of 1990, as 
amended (7 U.S.C. 1421 note).
    (27) Formulate and administer regulations regarding program 
ineligibility resulting from convictions under Federal or State law of 
planting, cultivating, growing, producing, harvesting, or storing a 
controlled substance, as required under section 1764 of the Food 
Security Act of 1985 (21 U.S.C. 881a).
    (28) Administer the Consolidated Farm and Rural Development Act (7 
U.S.C. 1921 et seq.) except for the authority contained in the following 
sections:
    (i) The authority in section 304(b) (7 U.S.C. 1924(b)), relating to 
small business enterprise loans;
    (ii) Section 306 (7 U.S.C. 1926), relating to all programs in that 
section;
    (iii) Section 306A (7 U.S.C. 1926a) and Section 306B (7 U.S.C. 
1926b), relating to the Emergency Community Water Assistance Grant 
Programs;
    (iv) Section 306C (7 U.S.C. 1926c) to administer the water and waste 
facility loans and grants to alleviate health risks;
    (v) Sections 309 (7 U.S.C. 1929) and 309A (7 U.S.C. 1929a), 
regarding assets and programs related to rural development;
    (vi) Section 310A (7 U.S.C. 1931), relating to watershed and 
resource conservation and development loans;
    (vii) Section 310B (7 U.S.C. 1932), regarding rural 
industrialization assistance;
    (viii) Section 312(b) (7 U.S.C. 1942(b)), relating to small business 
enterprises;
    (ix) Section 342 (7 U.S.C. 1013a);
    (x) Section 364 (7 U.S.C. 2006f), section 365 (7 U.S.C. 2008), 
section 366 (7 U.S.C. 2008a), section 367 (7 U.S.C. 2008b), and section 
368 (7 U.S.C. 2008c), regarding assets and programs related to rural 
development; and
    (xi) Administrative provisions of subtitle D of the Consolidated 
Farm and Rural Development Act related to Rural Utilities Service, Rural 
Business-Cooperative Service, and Rural Housing Service activities.

[[Page 202]]

    (29) Collect, service, and liquidate loans made or insured by the 
Farm Service Agency, or its predecessor agencies.
    (30) Administer the Rural Rehabilitation Corporation Trust 
Liquidation Act (40 U.S.C. 440 et seq.), and trust, liquidation, and 
other agreements entered into pursuant thereto.
    (31) Make grants and enter into contracts and other agreements to 
provide outreach and technical assistance to socially disadvantaged 
farmers and ranchers under 7 U.S.C. 2279.
    (32) Administer Farmers Home Administration or any successor agency 
assets conveyed in trust under the Participation Sales Act of 1966 (12 
U.S.C. 1717).
    (33) Administer the emergency loan and guarantee programs under 
sections 232, 234, 237, and 253 of the Disaster Relief Act of 1970 (Pub. 
L. No. 91-606), the Disaster Relief Act of 1969 (Pub. L. No. 91-79), 
Pub. L. No. 92-385, approved August 16, 1972, and the Emergency 
Livestock Credit Act of 1974 (Pub. L. No. 93-357), as amended.
    (34) Administer loans to homestead or desertland entrymen and 
purchasers of land in reclamation projects or to an entryman under the 
desertland law (7 U.S.C. 1006a and 1006b).
    (35) Administer the Federal Claims Collection Act of 1966, as 
amended (31 U.S.C. 3711 et seq.), and joint regulations issued pursuant 
thereto by the Attorney General and the Comptroller General (4 CFR 
chapter II), with respect to claims of the Farm Service Agency.
    (36) Service, collect, settle, and liquidate:
    (i) Deferred land purchase obligations of individuals under the 
Wheeler-Case Act of August 11, 1939, as amended (16 U.S.C. 590y), and 
under the item, ``Water Conservation and Utilization projects'' in the 
Department of the Interior Appropriation Act, 1940 (53 Stat. 719), as 
amended;
    (ii) Puerto Rican Hurricane Relief loans under the Act of July 11, 
1956 (70 Stat. 525); and
    (iii) Loans made in conformance with section 4 of the Southeast 
Hurricane Disaster Relief Act of 1965 (79 Stat. 1301).
    (37) Administer loans to Indian tribes and tribal corporations (25 
U.S.C. 488-492).
    (38) Administer the State Agricultural Loan Mediation Program under 
title 5 of the Agricultural Credit Act of 1987 (7 U.S.C. 5101 et seq.).
    (39) Administer financial assistance programs relating to Economic 
Opportunity Loans to Cooperatives under part A of title III and part D 
of title I and the necessarily related functions in title VI of the 
Economic Opportunity Act of 1964, as amended (42 U.S.C. 2763-2768, 2841-
2855, 2942, 2943(b), 2961), delegated by the Director of the Office of 
Economic Opportunity to the Secretary of Agriculture by documents dated 
October 23, 1964 (29 FR 14764), and June 17, 1968 (33 FR 9850), 
respectively.
    (40) Exercise all authority and discretion vested in the Secretary 
by section 331(c) of the Consolidated Farm and Rural Development Act, as 
amended by section 2 of the Farmers Home Administration Improvement Act 
of 1994, Pub. L. No. 103-248 (7 U.S.C. 1981(c)), including the 
following:
    (i) Determine, with the concurrence of the General Counsel, which 
actions are to be referred to the Department of Justice for the conduct 
of litigation, and refer such actions to the Department of Justice 
through the General Counsel;
    (ii) Determine, with the concurrence of the General Counsel, which 
actions are to be referred to the General Counsel, for the conduct of 
litigation and refer such actions; and
    (iii) Enter into contracts with private sector attorneys for the 
conduct of litigation, with the concurrence of the General Counsel, 
after determining that the attorneys will provide competent and cost 
effective representation for the Farm Service Agency.
    (41) Provide supervision of the Federal Crop Insurance Corporation.
    (42) Administer the provisions concerning the end-use certificate 
system authorized pursuant to section 301(f) of the North American Free 
Trade Implementation Act (19 U.S.C. 3391(f)).
    (43) Determine the type and quantity of commodities that are 
available for programming under section 416(b) of the Agricultural Act 
of 1949 (7 U.S.C. 1431(b)), and the Food for Progress Act

[[Page 203]]

of 1985 (7 U.S.C. 1736o), and arrange for the processing, packaging, 
transportation, handling and delivery to port of such commodities in 
connection therewith.
    (44) Formulate policies and administer programs authorized by Title 
I of the Federal Agriculture Improvement and Reform Act of 1996.
    (b) Reservations. The following authorities are reserved to the 
Under Secretary for Farm and Foreign Agricultural Services:
    (1) Designating counties and areas for emergency programs under Pub. 
L. No. 85-58, as amended.
    (2) Making and issuing notes to the Secretary of the Treasury for 
the purposes of the Agricultural Credit Insurance Fund as authorized by 
the Consolidated Farm and Rural Development Act (7 U.S.C. 1929).

[60 FR 56393, Nov. 8, 1995, as amended at 61 FR 25776, May 23, 1996; 61 
FR 37552, July 18, 1996]



Sec. 2.43  Administrator, Foreign Agricultural Service.

    (a) Delegations. Pursuant to Sec. 2.16 (a)(3) and (a)(6), subject to 
reservations in Sec. 2.16(b)(2), the following delegations of authority 
are made by the Under Secretary for Farm and Foreign Agricultural 
Services to the Administrator, Foreign Agricultural Service:
    (1) Coordinate the carrying out by Department agencies of their 
functions involving foreign agriculture policies and programs and their 
operations and activities in foreign areas. Act as liaison on these 
matters and functions relating to foreign agriculture between the 
Department of Agriculture and the Department of State, the United States 
Trade Representative, the Trade Policy Committee, the Agency for 
International Development and other departments, agencies and committees 
of the U.S. Government, foreign governments, the Organization for 
Economic Cooperation and Development, the European Union, the Food and 
Agriculture Organization of the United Nations, the International Bank 
for Reconstruction and Development, the Inter-American Development Bank, 
the Organization of American States, and other public and private United 
States and international organizations, and the contracting parties to 
the General Agreement on Tariffs and Trade (GATT) and the World Trade 
Organization (WTO).
    (2) Conduct functions of the Department relating to GATT, WTO, the 
Trade Expansion Act of 1962 (19 U.S.C. 1801 et seq.), the Trade Act of 
1974 (19 U.S.C. 2101 et seq.), the Trade Agreements Act of 1979 (19 
U.S.C. 2501 et seq.), the Omnibus Trade and Competition Act of 1988 (19 
U.S.C. 2901 et seq.), the provisions of subtitle B of title III of the 
North American Free Trade Agreement Implementation Act (except the 
provisions concerning the end-use certificate system authorized pursuant 
to section 321(f) of that Act (19 U.S.C. 3391(f)) delegated to the 
Administrator, Farm Service Agency), and other legislation affecting 
international agricultural trade including the programs designed to 
reduce foreign tariffs and other trade barriers.
    (3) Conduct studies of worldwide production, trade, marketing, 
prices, consumption, and other factors affecting exports and imports of 
U.S. agricultural commodities; obtain information on methods used by 
other countries to move farm commodities in world trade on a competitive 
basis for use in the development of programs of this Department; provide 
information to domestic producers, the agricultural trade, the public 
and other interests; and promote normal commercial markets abroad. This 
delegation excludes basic and long-range analyses of world conditions 
and developments affecting supply, demand, and trade in farm products 
and general economic analyses of the international financial and 
monetary aspects of agricultural affairs as assigned to the Under 
Secretary for Research, Education, and Economics.
    (4) Administer Departmental programs concerned with development of 
foreign markets for agricultural products of the United States except 
functions relating to export marketing operations under section 32, of 
the Act of August 23, 1935, as amended (7 U.S.C. 612c), delegated to the 
Assistant Secretary for Marketing and Regulatory Programs.

[[Page 204]]

    (5) Conduct Department activities to carry out the provisions of the 
International Coffee Agreement Act of 1968 (19 U.S.C. 1356f).
    (6) Administer functions of the Department relating to import 
controls including, among others, functions under section 22 of the 
Agricultural Adjustment Act of 1933, as amended (7 U.S.C. 624), the 
Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), and 
section 204 of the Agricultural Act of 1956, as amended (7 U.S.C. 1854) 
but not including those functions reserved to the Secretary under 
Sec. 2.16(b)(2) and those relating to section 8e of the Agricultural 
Adjustment Act of 1933, as amended (7 U.S.C. 608e-1), as assigned to the 
Assistant Secretary for Marketing and Regulatory Programs.
    (7) Represent the Department on the Interdepartmental Committee for 
Export Control and conduct Departmental activities to carry out the 
provisions of the Export Administration Act of 1969, as amended (50 
U.S.C. App. 2401 et seq.), except as reserved to the Secretary under 
Sec. 2.16(b)(2).
    (8) Exercise the Department's responsibilities in connection with 
international negotiations of the International Wheat Agreement and in 
the administration of such agreement.
    (9) Provide foreign agricultural intelligence and other foreign 
agricultural services in support of programs administered by the 
Department under the Defense Production Act of 1950, as amended (50 
U.S.C. App. 2061 et seq.), and title VI of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5195 et seq.).
    (10) Conduct economic analyses pertaining to the foreign sugar 
situation.
    (11) Exercise the Department's functions with respect to the 
International Sugar Agreement or any such future agreements.
    (12) Exercise the Department's responsibilities with respect to 
tariff-rate quotes for dairy products under chapter 4 of the Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202).
    (13) Serve as a focal point for handling quality or weight 
discrepancy inquiries from foreign buyers of U.S. agricultural 
commodities to insure that they are investigated and receive a timely 
response and that reports thereof are made to appropriate parties and 
government officials in order that corrective action may be taken.
    (14) Formulate policies and administer programs and activities 
authorized by the Agricultural Trade Act of 1978, as amended (7 U.S.C. 
5601 et seq.).
    (15) Formulate policies and administer barter programs under which 
agricultural commodities are exported.
    (16) Perform functions of the Department in connection with the 
development and implementation of agreements to finance the sale and 
exportation of agricultural commodities on long-term credit or for 
foreign currencies under Public Law 480 (7 U.S.C. 1691, 1701 et seq.).
    (17) Coordinate within the Department activities arising under 
Public Law 480 (except as delegated to the Under Secretary for Research, 
Education, and Economics in Sec. 2.21(a)(8)), and to represent the 
Department in its relationships in such matters with the Department of 
State, any interagency committee on Public Law 480, and other 
departments, agencies and committees of the Government.
    (18) Formulate policies and implement programs to promote the export 
of dairy products, as authorized under section 153 of the Food Security 
Act of 1985, as amended (15 U.S.C. 713a-14), and of sunflowerseed oil 
and cottonseed oil, as authorized under section 301(b)(2)(A) of the 
Disaster Assistance Act of 1988, as amended (7 U.S.C. 1464 note).
    (19) Formulate policies and implement a program for the export sales 
of dairy products, as authorized by section 1163 of the Food Security 
Act of 1985 (7 U.S.C. 1731 note).
    (20) Carry out activities relating to the sale, reduction, or 
cancellation of debt, as authorized by title VI of the Agricultural 
Trade and Development Act of 1954, as amended (7 U.S.C. 1738 et seq.).
    (21) Carry out debt-for-health-and-protection swaps, as authorized 
by section 1517 of the Food, Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 1706).

[[Page 205]]

    (22) Allocate among the various export programs agricultural 
commodities determined under Sec. 2.16(a)(3)(xix) to be available for 
export.
    (23) Maintain a worldwide agricultural intelligence and reporting 
system, including provision for foreign agricultural representation 
abroad to protect and promote U.S. agricultural interests, and to 
acquire information on demand, competition, marketing, and distribution 
of U.S. agricultural commodities abroad pursuant to title VI of the 
Agricultural Act of 1954, as amended (7 U.S.C. 1761-1768).
    (24) Plan and carry out programs and activities under the foreign 
market promotion authority of the Wheat Research and Promotion Act (7 
U.S.C. 1292 note); the Cotton Research and Promotion Act (7 U.S.C. 2101-
2118); the Potato Research and Promotion Act (7 U.S.C. 2611-2627); the 
Egg Research and Consumer Information Act of 1974 (7 U.S.C. 2701-2718); 
the Beef Research and Information Act, as amended (7 U.S.C. 2901-2918); 
the Wheat and Wheat Foods Research and Nutrition Education Act (7 U.S.C. 
3401-3417); the Floral Research and Consumer Information Act of 1981 (7 
U.S.C. 4301-4319); subtitle B of title I of the Dairy and Tobacco 
Adjustment Act of 1983 (7 U.S.C. 4501-4513); the Honey Research, 
Promotion, and Consumer Information Act of 1984, as amended (7 U.S.C. 
4601-4612); the Pork Promotion, Research, and Consumer Information Act 
of 1985 (7 U.S.C. 4801-4819); the Watermelon Research and Promotion Act, 
as amended (7 U.S.C. 4901-4916); the Pecan Promotion and Research Act of 
1990 (7 U.S.C. 6001-6013); the Mushroom Promotion, Research, and 
Consumer Information Act of 1990 (7 U.S.C. 6101-6112); the Lime 
Research, Promotion, and Consumer Information Act of 1990 (7 U.S.C. 
6201-6212); the Soybean Promotion, Research, and Consumer Information 
Act of 1990 (7 U.S.C. 6301-6311); the Fluid Milk Promotion Act of 1990 
(7 U.S.C. 6401-6417); the Fresh Cut Flowers and Fresh Cut Greens 
Promotion and Consumer Information Act (7 U.S.C. 6801-6814); and the 
Sheep Promotion, Research, and Information Act of 1994 (7 U.S.C. 7101-
7111). This authority includes determining the programs and activities 
to be undertaken and assuring that they are coordinated with the overall 
departmental programs to develop foreign markets for U.S. agricultural 
products.
    (25) Establish and administer regulations relating to foreign travel 
by employees of the Department. Regulations will include, but not be 
limited to, obtaining and controlling passports, obtaining visas, 
coordinating Department of State medical clearances and imposing 
requirements for itineraries and contacting the Foreign Agricultural 
Affairs Officers upon arrival in the Officers' country(ies) of 
responsibility.
    (26) Administer the Foreign Service personnel system for the 
Department in accordance with 22 U.S.C. 3922, except as otherwise 
delegated in Sec. 2.80(a)(1), but including authority to represent the 
Department of Agriculture in all interagency consultations and 
negotiations with the other foreign agencies with respect to joint 
regulations and authority to approve regulations issued by the 
Department of State relating to the administration of the Foreign 
Service.
    (27) Establish and maintain U.S. Agricultural Trade Offices to 
develop, maintain and expand international markets for U.S. agricultural 
commodities in accordance with title IV of Pub. L. No. 95-501 (7 U.S.C. 
1765a-g).
    (28) Administer the programs under section 416(b) of the 
Agricultural Act of 1949, as amended (7 U.S.C. 1431(b)), relating to the 
foreign donation of CCC stocks of agricultural commodities, except as 
otherwise delegated in Sec. 2.42(a)(43).
    (29)-(30) [Reserved]
    (31) Administer programs under the Food for Progress Act of 1985 (7 
U.S.C. 1736o), except as otherwise delegated in Sec. 2.42(a)(43).
    (32) Serve as Department adviser on policies, organizational 
arrangements, budgets, and actions to accomplish International 
Scientific and Technical Cooperation in Food and Agriculture.
    (33) Administer and direct the Department's programs in 
international development, technical assistance, and training carried 
out under the Foreign Assistance Act, as amended, as requested under 
such act (22 U.S.C. 2151 et seq.).

[[Page 206]]

    (34) Administer and coordinate assigned Departmental programs in 
international research and scientific and technical cooperation with 
other governmental agencies, land grant universities, international 
organizations, international agricultural research centers, and other 
institutions (7 U.S.C. 1624, 3291).
    (35) Direct and coordinate the Department's participation in 
scientific and technical matters and exchange agreements between the 
United States and other countries.
    (36) Direct and coordinate the Department's work with international 
organizations and interagency committees concerned with food and 
agricultural development programs (7 U.S.C. 2201 and 2202).
    (37) Coordinate policy formulation for USDA international science 
and technology programs concerning international agricultural research 
centers, international organizations, and international agricultural 
research and extension activities (7 U.S.C. 3291).
    (38) Disseminate, upon request, information on subjects connected 
with agriculture which has been acquired by USDA agencies that may be 
useful to the U.S. private sector in expanding foreign markets and 
investment opportunities through the operation of a Department 
information center, pursuant to 7 U.S.C. 2201.
    (39) Enter into contracts, grants, cooperative agreements, and cost 
reimbursable agreements relating to agricultural research, extension, or 
teaching activities (7 U.S.C. 3318, 3319a).
    (40) Determine amounts reimbursable for indirect costs under 
international agricultural programs and agreements (7 U.S.C. 3319).
    (41) Administer the Cochran Fellowship Program (7 U.S.C. 3293).
    (42) Determine quantity trigger levels and impose additional duties 
under the special safeguard measures in accordance with U.S. note 2 to 
subchapter IV of chapter 99 of the Harmonized Tariff Schedule of the 
United States (19 U.S.C. 1202).
    (b) [Reserved]

[60 FR 56393, Nov. 8, 1995, as amended at 61 FR 25776, May 23, 1996; 61 
FR 37552, July 18, 1996]



  Subpart G--Delegations of Authority by the Under Secretary for Rural 
                   Economic and Community Development

    Editorial Note: Nomenclature changes to subpart G appear at 60 FR 
66713, Dec. 26, 1995.



Sec. 2.45  Deputy Under Secretary for Rural Economic and Community Development.

    Pursuant to Sec. 2.17(a), subject to reservations in Sec. 2.17(b), 
and subject to policy guidance and direction by the Under Secretary, the 
following delegation of authority is made to the Deputy Under Secretary 
for Rural Economic and Community Development, to be exercised only 
during the absence or unavailability of the Under Secretary: Perform all 
the duties and exercise all the powers which are now or which may 
hereafter be delegated to the Under Secretary for Rural Economic and 
Community Development.



Sec. 2.47  Administrator, Rural Utilities Service.

    (a) Delegations. Pursuant to Secs. 2.17 (a)(14) and (a)(16) through 
(a)(20), and subject to policy guidance and direction by the Under 
Secretary for Rural Economic and Community Development, the following 
delegations of authority are made by the Under Secretary for Rural 
Economic and Community Development to the Administrator, Rural Utilities 
Service:
    (1) Administer the Rural Electrification Act of 1936, as amended (7 
U.S.C. 901, et seq.) except for rural economic development loan and 
grant programs (7 U.S.C. 940c and 950aa, et seq.): Provided, however, 
that the Administrator may utilize consultants and attorneys for the 
provision of legal services pursuant to 7 U.S.C. 918, with the 
concurrence of the General Counsel.
    (2) Administer the Rural Electrification Act of 1938 (7 U.S.C. 903 
note).
    (3) The Administrator, Rural Utilities Service is designated to 
serve as the chief executive officer of the Rural Telephone Bank.
    (4) Administer the following sections of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1921, et seq.):
    (i) Section 306 (7 U.S.C. 1926), related to water and waste 
facilities;

[[Page 207]]

    (ii) Section 306A (7 U.S.C. 1926a);
    (iii) Section 306B (7 U.S.C. 1926b);
    (iv) Section 306C (7 U.S.C. 1926c);
    (v) Sections 309 (7 U.S.C. 1929) and 309A (7 U.S.C. 1929a), relating 
to assets and programs related to watershed facilities, resource and 
conservation facilities, and water and waste facilities;
    (vi) Section 310A (7 U.S.C. 1931), relating to watershed and 
resource conservation and development;
    (vii) Section 310B(b) (7 U.S.C. 1932(b));
    (viii) Section 310B(i)), relating to loans for business 
telecommunications partnerships;
    (ix) Section 342 (7 U.S.C. 1013a); and
    (x) Administrative Provisions of subtitle D of the Consolidated Farm 
and Rural Development Act relating to Rural Utilities Service 
activities;
    (5) Administer section 8, and those functions with respect to 
repayment of obligations under section 4, of the Watershed Protection 
and Flood Prevention Act (16 U.S.C. 1006a, 1004) and administer the 
Resource Conservation and Development Program to assist in carrying out 
resource conservation and development projects in rural areas under 
section 32(e) of the Bankhead-Jones Farm Tenant Act (7 U.S.C. 1011(e)).
    (6) Administer the Water and Waste Loan Program (7 U.S.C. 1926-1).
    (7) Administer the Rural Wastewater Treatment Circuit Rider Program 
(7 U.S.C. 1926 note).
    (8) Collect, service, and liquidate loans made, insured, or 
guaranteed by the Rural Utilities Service or its predecessor agencies.
    (9) Administer the Federal Claims Collection Act of 1966 (31 U.S.C. 
3711 et seq.), and joint regulations issued pursuant thereto by the 
Attorney General and the Comptroller General (4 CFR chapter II), with 
respect to the claims of the Rural Utilities Service.
    (10) Administer responsibilities and function assigned under the 
Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et seq.) 
and title VI of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5195 et seq.), relating to rural development 
credit and financial assistance.
    (11) With respect to land and facilities under his or her authority, 
exercise the functions delegated to the Secretary by Executive Order 
12580, 3 CFR, 1987 Comp., p. 193, under the following provisions of the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (``the Act''), as amended:
    (i) Sections 104(a), (b), and (c)(4) of the Act (42 U.S.C. 9604(a), 
(b), and (c)(4)), with respect to removal and remedial actions in the 
event of release or threatened release of a hazardous substance, 
pollutant, or contaminant into the environment;
    (ii) Sections 104(e)-(h) of the Act (42 U.S.C. 9604(e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards and wage and labor 
standards applicable to covered work; and emergency procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petitions for preliminary assessment of a 
release or threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) 
pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (ix) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon

[[Page 208]]

which to base the selection of a response action and identifying and 
notifying potentially responsible parties;
    (x) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xi) Sections 117(a) and (c) of the Act (42 U.S.C. 9617(a) and (c)), 
with respect to public participation in the preparation of any plan for 
remedial action and explanation of variances from the final remedial 
action plan for any remedial action or enforcement action, including any 
settlement or consent decree entered into;
    (xii) Section 119 of the Act (42 U.S.C. 9119), with respect to 
indemnifying response action contractors;
    (xiii) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xiv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), related to mixed funding agreements.
    (12) With respect to facilities and activities under his or her 
authority, to exercise the authority of the Secretary of Agriculture 
pursuant to section 1-102 related to compliance with applicable 
pollution control standards and section 1-601 of Executive Order 12088, 
3 CFR, 1978 Comp., p. 243, to enter into an inter-agency agreement with 
the United States Environmental Protection Agency, or an administrative 
consent order or a consent judgment in an appropriate State, interstate, 
or local agency, containing a plan and schedule to achieve and maintain 
compliance with applicable pollution control standards established 
pursuant to the following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, as further amended by the Hazardous and 
Solid Waste Amendments, and the Federal Facility Compliance Act (42 
U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).
    (13) Administer the Distance Learning and Medical Link Programs (7 
U.S.C. 950aaa et seq.).
    (14) Administer water and waste facility programs and activities (7 
U.S.C. 1926-1).
    (b) Reservations. The following authority is reserved to the Under 
Secretary for Rural Economic and Community Development:
    (1) Making and issuing notes to the Secretary of the Treasury for 
the purposes of the Rural Development Insurance Fund as authorized by 
the Consolidated Farm and Rural Development Act (7 U.S.C. 1929a).
    (2) Administering loans for rural telephone facilities and service 
in rural areas as authorized by the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1921 et seq.).



Sec. 2.48  Administrator, Rural Business-Cooperative Service.

    (a) Delegations. Pursuant to Sec. 2.17 (a)(1), (a)(2), (a)(14), 
(a)(16) through (a)(19) and (a)(21), subject to reservations in 
Sec. 2.17(b)(1), and subject to policy guidance and direction by the 
Under Secretary for Rural Economic and Community Development, the 
following delegations of authority are made by the Under Secretary for 
Rural Economic and Community Development to the Administrator, Rural 
Business-Cooperative Service:
    (1) Administer the rural economic development loan and grant 
programs under the Rural Electrification Act (7 U.S.C. 940c and 950aa et 
seq.).
    (2) Administer the following sections of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1921 et seq.):
    (i) Section 306(a)(11)(A) (7 U.S.C. 1926(a)(11)(A)), related grants 
for business technical assistance and planning;

[[Page 209]]

    (ii) Section 304(b) (7 U.S.C. 1924(b)), relating to small business 
enterprises;
    (iii) Sections 309 (7 U.S.C. 1929) and 309A (7 U.S.C. 1929a), 
relating to assets and programs related to rural development;
    (iv) Section 310B (7 U.S.C. 1932), relating to rural 
industrialization assistance, rural business enterprise grants and rural 
technology and cooperative development grants;
    (v) Section 312(b) (7 U.S.C. 1942(b)), relating to small business 
enterprises; and
    (vi) Administrative Provisions of subtitle D of the Consolidated 
Farm and Rural Development Act relating to Rural Business-Cooperative 
Service activities;
    (3) Administer Alcohol Fuels Credit Guarantee Program Account (Pub 
L. No. 102-341, 106 Stat. 895).
    (4) Administer section 1323 of the Food Security Act of 1985 (7 
U.S.C. 1932 note).
    (5) Administer loan programs in the Appalachian region under 
sections 203 and 204 of the Appalachian Regional Development Act of 1965 
(40 U.S.C. App. 204).
    (6) Administer section 601 of the Powerplant and Industrial Fuel Use 
Act of 1978 (Pub. L. No. 95-620).
    (7) Administer the Drought and Disaster Guaranteed Loan program 
under section 331 of the Disaster Assistance Act of 1988 (7 U.S.C. 1929a 
note).
    (8) Administer the Disaster Assistance for Rural Business 
Enterprises Guaranteed Loan Program under section 401 of the Disaster 
Assistance Act of 1989 (7 U.S.C. 1929a note).
    (9) Administer the Rural Economic Development Demonstration Grant 
Program (7 U.S.C. 2662a).
    (10) Administer the Economically Disadvantaged Rural Community Loan 
program (7 U.S.C. 6616).
    (11) Administer programs authorized by the Cooperative Marketing Act 
of 1926 (7 U.S.C. 451-457).
    (12) Carry out the responsibilities of the Secretary of Agriculture 
relating to the marketing aspects of cooperatives, including economic 
research and analysis, the application of economic research findings, 
technical assistance to existing and developing cooperatives, education 
on cooperatives, and statistical information pertaining to cooperatives 
as authorized by the Agricultural Marketing Act of 1946 (7 U.S.C. 1621-
1627).
    (13) Work with institutions and international organizations 
throughout the world on subjects related to the development and 
operation of agricultural cooperatives. Such work may be carried out by:
    (i) Exchanging materials and results with such institutions or 
organizations;
    (ii) Engaging in joint or coordinated activities; or
    (iii) Stationing representatives at such institutions or 
organizations in foreign countries (7 U.S.C. 3291).
    (14) Collect, service, and liquidate loans made, insured, or 
guaranteed by the Rural Business-Cooperative Service or its predecessor 
agencies.
    (15) Administer the Federal Claims Collection Act of 1966 (31 U.S.C. 
3711 et seq.), and joint regulations issued pursuant thereto by the 
Attorney General and the Comptroller General (4 CFR chapter II), with 
respect to the claims of the Rural Business-Cooperative Service.
    (16) Administer responsibilities and functions assigned under the 
Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et 
seq.), and title VI of the Robert T. Stafford Disaster Relief and 
Assistance Act (42 U.S.C. 5195 et seq.), relating to rural development 
credit and financial assistance.
    (17) With respect to land and facilities under his or her authority, 
exercise the functions delegated to the Secretary by Executive Order 
12580, 3 CFR, 1987 Comp., p. 193, under the following provisions of the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (``the Act''), as amended:
    (i) Sections 104 (a), (b), and (c)(4) of the Act (42 U.S.C. 9604 
(a), (b), and (c)(4)), with respect to removal and remedial actions in 
the event of release or threatened release of a hazardous substance, 
pollutant, or contaminant into the environment;
    (ii) Sections 104(e)-(h) of the Act (42 U.S.C. 9604(e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards

[[Page 210]]

and wage and labor standards applicable to covered work; and emergency 
procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petitions for preliminary assessment of a 
release or threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) 
pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (ix) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon which to base the selection 
of a response action and identifying and notifying potentially 
responsible parties;
    (x) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xi) Sections 117 (a) and (c) of the Act (42 U.S.C. 9617 (a) and 
(c)), with respect to public participation in the preparation of any 
plan for remedial action and explanation of variances from the final 
remedial action plan for any remedial action or enforcement action, 
including any settlement or consent decree entered into;
    (xii) Section 119 of the Act (42 U.S.C. 9119), with respect to 
indemnifying response action contractors;
    (xiii) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xiv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), related to mixed funding agreements.
    (18) With respect to facilities and activities under his or her 
authority, to exercise the authority of the Secretary of Agriculture 
pursuant to section 1-102 related to compliance with applicable 
pollution control standards and section 1-601 of Executive Order 12088, 
3 CFR, 1978 Comp., p. 243, to enter into an inter-agency agreement with 
the United States Environmental Protection Agency, or an administrative 
consent order or a consent judgment in an appropriate State, interstate, 
or local agency, containing a plan and schedule to achieve and maintain 
compliance with applicable pollution control standards established 
pursuant to the following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, as further amended by the Hazardous and 
Solid Waste Amendments, and the Federal Facility Compliance Act (42 
U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).
    (19) Administer in rural areas the process of designation, provision 
of monitoring and oversight, and provision of technical assistance for 
Empowerment Zones and Enterprise Communities pursuant to section 13301 
of Pub. L. No. 103-66, Omnibus Budget

[[Page 211]]

Reconciliation Act of 1993 (26 U.S.C. 1391 et seq.).
    (20) Provide leadership and coordination within the executive branch 
at the state and local level of Federal rural development program 
utilizing the services of executive branch departments and agencies and 
the agencies, bureaus, offices, and services of the Department of 
Agriculture in coordination with rural development programs of State and 
local governments (7 U.S.C. 2204).
    (21) Coordinate, at the state and local level, activities relative 
to rural development among agencies reporting to the Under Secretary for 
Rural Economic and Community Development and, through appropriate 
channels, serve as the coordinating agency for other departmental 
agencies having primary responsibilities, in coordination with rural 
development programs of State and local governments (7 U.S.C. 2204).
    (22) Work with Federal agencies in encouraging the creation of local 
rural community development organizations. Within a State, assist other 
Federal agencies in developing means for extending their services 
effectively to rural areas and in designating pilot projects in rural 
areas (7 U.S.C. 2204).
    (23) Conduct assessments to determine how programs of the Department 
can be brought to bear on the economic development problems of a State 
or local area and assure that local groups are receiving adequate and 
effective technical assistance from Federal agencies or from local and 
State governments in formulating development programs and in carrying 
out planned development activities (7 U.S.C. 2204b).
    (24) Develop a process through which State, sub-state and local 
rural development needs, goals, objectives, plans, and recommendations 
can be received and assessed on a continuing basis (7 U.S.C. 2204b).
    (25) Prepare local or area-wide rural development strategies based 
on the needs, goals, objectives, plans and recommendations of local 
communities, sub-state areas and States (7 U.S.C. 2204b).
    (26) Develop a system of outreach in the State or local area to 
promote rural development and provide for the publication and 
dissemination of information, through multi-media methods, relating to 
rural development. Advise local rural development organizations of 
availability of Federal programs and the type of assistance available, 
and assist in making contact with Federal program contact (7 U.S.C. 
2204; 7 U.S.C. 2204b).
    (b) Reservation. The following authority is reserved to the Under 
Secretary for Rural Economic and Community Development: Making and 
issuing notes to the Secretary of the Treasury for the purposes of the 
Rural Development Insurance Fund as authorized by the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1929a).



Sec. 2.49  Administrator, Rural Housing Service.

    (a) Delegations. Pursuant to Sec. 2.17(a)(14), (a)(16) through 
(a)(19) and (a)(22), and subject to policy guidance and directions by 
the Under Secretary for Rural Economic and Community Development, the 
following delegations are made by the Under Secretary for Rural Economic 
and Community Development to the Administrator, Rural Housing Service:
    (1) Administer the following under the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1921 et seq.):
    (i) Section 306 (7 U.S.C. 1926), except with respect to financing 
for water and waste disposal facilities; or loans for rural 
electrification or telephone systems or facilities other than 
hydroelectric generating and related distribution systems and 
supplemental and supporting structures if they are eligible for Rural 
Utilities Service financing; and financing for grazing facilities and 
irrigation and drainage facilities; and subsection 306(a)(11);
    (ii) Section 309A (7 U.S.C. 1929a), regarding assets and programs 
relating to community facilities; and
    (iii) Administrative Provisions of subtitle D of the Consolidated 
Farm and Rural Development Act relating to Rural Housing Service 
activities;
    (2) Administer title V of the Housing Act of 1949 (42 U.S.C. 1471 et 
seq.), except those functions pertaining to research.
    (3) Make grants, administer a grant program, and determine the types 
of

[[Page 212]]

assistance to be provided to aid low-income migrant and seasonal 
farmworkers (42 U.S.C. 5177a).
    (4) Administer the rural housing disaster program under sections 
232, 234, and 253 of the Disaster Relief Act of 1970 (Pub. L. No. 91-
606).
    (5) Collect, service, and liquidate loans made, insured or 
guaranteed by the Rural Housing Service or its predecessor agencies.
    (6) Exercise all authority and discretion vested in the Secretary by 
section 510(d) of the Housing Act of 1949, as amended by section 1045 of 
the Stewart B. McKinney Homeless Assistance Amendments Act of 1988, Pub. 
L. No. 100-628 (42 U.S.C. 1480(d)), including the following:
    (i) Determine, with the concurrence of the General Counsel, which 
actions are to be referred to the Department of Justice for the conduct 
of litigation, and refer such actions to the Department of Justice 
through the General Counsel;
    (ii) Determine, with the concurrence of the General Counsel, which 
actions are to be referred to the General Counsel for the conduct of 
litigation and refer such actions; and
    (iii) Enter into contracts with private sector attorneys for the 
conduct of litigation, with the concurrence of the General Counsel, 
after determining that the attorneys will provide competent and cost 
effective representation for the Rural Housing Service and 
representation by the attorney will either accelerate the process by 
which a family or person eligible for assistance under section 502 of 
the Housing Act of 1949 will be able to purchase and occupy the housing 
involved, or preserve the quality of the housing involved.
    (7) Administer the Federal Claims Collection Act of 1966 (31 U.S.C. 
3711 et seq.), and joint regulations issued pursuant thereto by the 
Attorney General and the Comptroller General (4 CFR chapter II), with 
respect to claims of the Rural Housing Service.
    (8) Administer responsibilities and function assigned under the 
Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et seq.) 
and title VI of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5195 et seq.), relating to rural housing and 
community development credit and financial assistance.
    (9) With respect to land and facilities under his or her authority, 
exercise the functions delegated to the Secretary by Executive Order 
12580, 3 CFR, 1987 Comp., p. 193, under the following provisions of the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (``the Act''), as amended:
    (i) Sections 104 (a), (b), and (c)(4) of the Act (42 U.S.C. 9604(a), 
(b), and (c)(4)), with respect to removal and remedial actions in the 
event of release or threatened release of a hazardous substance, 
pollutant, or contaminant into the environment;
    (ii) Sections 104(e)-(h) of the Act (42 U.S.C. 9604(e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards and wage and labor 
standards applicable to covered work; and emergency procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petitions for preliminary assessment of a 
release or threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) 
pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;

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    (ix) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon which to base the selection 
of a response action and identifying and notifying potentially 
responsible parties;
    (x) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xi) Sections 117 (a) and (c) of the Act (42 U.S.C. 9617 (a) and 
(c)), with respect to public participation in the preparation of any 
plan for remedial action and explanation of variances from the final 
remedial action plan for any remedial action or enforcement action, 
including any settlement or consent decree entered into;
    (xii) Section 119 of the Act (42 U.S.C. 9119), with respect to 
indemnifying response action contractors;
    (xiii) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xiv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), related to mixed funding agreements.
    (10) With respect to facilities and activities under his or her 
authority, to exercise the authority of the Secretary of Agriculture 
pursuant to section 1-102 related to compliance with applicable 
pollution control standards and section 1-601 of Executive Order 12088, 
3 CFR, 1978 Comp., p. 243, to enter into an inter-agency agreement with 
the United States Environmental Protection Agency, or an administrative 
consent order or a consent judgment in an appropriate State, interstate, 
or local agency, containing a plan and schedule to achieve and maintain 
compliance with applicable pollution control standards established 
pursuant to the following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, as further amended by the Hazardous and 
Solid Waste Amendments, and the Federal Facility Compliance Act (42 
U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).
    (b) Reservation. The following authority is reserved to the Under 
Secretary for Rural Economic and Community Development: Making and 
issuing notes to the Secretary of the Treasury for the purposes the 
Rural Development Insurance Fund as authorized by the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1929(a)) and the Rural Housing 
Insurance Fund as authorized by title V of the Housing Act of 1949 (41 
U.S.C. 1487).



  Subpart H--Delegations of Authority by the Under Secretary for Food 
                                 Safety



Sec. 2.51  Deputy Under Secretary for Food Safety.

    Pursuant to Sec. 2.18, and subject to policy guidance and direction 
by the Under Secretary, the following delegation of authority is made by 
the Under Secretary for Food Safety to the Deputy Under Secretary for 
Food Safety, to be exercised only during the absence or unavailability 
of the Under Secretary: Perform all the duties and exercise all the 
powers which are now or which may hereafter be delegated to the Under 
Secretary for Farm and Foreign Agricultural Services.



Sec. 2.53  Administrator, Food Safety and Inspection Service.

    (a) Delegations. Pursuant to Sec. 2.18, the following delegations of 
authority are made by the Under Secretary for Food Safety to the 
Administrator, Food Safety and Inspection Service:
    (1) Exercise the functions of the Secretary of Agriculture contained 
in the Agricultural Marketing Act of 1946, as amended (7 U.S.C. 1621-
1627), relating

[[Page 214]]

to voluntary inspection of poultry and edible products thereof; 
voluntary inspection and certification of technical animal fat; 
certified products for dogs, cats and other carnivora; voluntary 
inspection of rabbits and edible products thereof; and voluntary 
inspection and certification of edible meat and other products.
    (2) Exercise the functions of the Secretary of Agriculture contained 
in the following legislation:
    (i) Poultry Products Inspection Act, as amended (21 U.S.C. 451-470);
    (ii) Federal Meat Inspection Act, as amended, and related 
legislation, excluding sections 12-14, and also excluding so much of 
section 18 as pertains to issuance of certificates of condition of live 
animals intended and offered for export (21 U.S.C. 601-611, 615-624, 
641-645, 661, 671-680, 691-692, 694-695);
    (iii) Egg Products Inspection Act, except for the shell egg 
surveillance program, voluntary laboratory analyses of egg products, and 
the voluntary egg grading program (21 U.S.C. 1031-1056);
    (iv) Talmadge-Aiken Act (7 U.S.C. 450) with respect to cooperation 
with States in administration of the Federal Meat Inspection Act and the 
Poultry Products Inspection Act;
    (v) Humane Slaughter Act (7 U.S.C. 1901-1906); and
    (vi) Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 
et seq.), and title VI of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5195 et seq.), relating to 
wholesomeness of meat and poultry and products thereof and inspection of 
egg and egg products.
    (3) With respect to land and facilities under his or her authority, 
exercise the functions delegated to the Secretary by Executive Order 
12580, 3 CFR, 1987 Comp., p. 193, under the following provisions of the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (``the Act''), as amended:
    (i) Sections 104 (a), (b), and (c)(4) of the Act (42 U.S.C. 9604 
(a), (b), and (c)(4)), with respect to removal and remedial actions in 
the event of release or threatened release of a hazardous substance, 
pollutant, or contaminant into the environment;
    (ii) Sections 104(e)-(h) of the Act (42 U.S.C. 9604(e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards and wage and labor 
standards applicable to covered work; and emergency procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petitions for preliminary assessment of a 
release or threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) 
pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (ix) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon which to base the selection 
of a response action and identifying and notifying potentially 
responsible parties;
    (x) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xi) Sections 117 (a) and (c) of the Act (42 U.S.C. 9617 (a) and 
(c)), with respect to public participation in the preparation of any 
plan for remedial action and explanation of variances from the final 
remedial action plan for any remedial action or enforcement action, 
including any settlement or consent decree entered into;

[[Page 215]]

    (xii) Section 119 of the Act (42 U.S.C. 9119), with respect to 
indemnifying response action contractors;
    (xiii) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xiv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), related to mixed funding agreements.
    (4) With respect to facilities and activities under his or her 
authority, to exercise the authority of the Secretary of Agriculture 
pursuant to section 1-102 related to compliance with applicable 
pollution control standards and section 1-601 of Executive Order 12088, 
3 CFR, 1978 Comp., p. 243, to enter into an inter-agency agreement with 
the United States Environmental Protection Agency, or an administrative 
consent order or a consent judgment in an appropriate State, interstate, 
or local agency, containing a plan and schedule to achieve and maintain 
compliance with applicable pollution control standards established 
pursuant to the following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, as further amended by the Hazardous and 
Solid Waste Amendments, and the Federal Facility Compliance Act (42 
U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).
    (5) Administer the National Laboratory Accreditation Program (7 
U.S.C. 138-138i) with respect to laboratories accredited only for 
pesticide residue analysis in meat and poultry products.
    (6) Administer and conduct a food safety research program (7 U.S.C. 
427).
    (7) Coordinate with the Animal and Plant Health Inspection Service 
the administration of programs relating to human pathogen reduction 
(such as salmonella enteritidis) pursuant to section 2 of the Act of 
February 2, 1903, as amended (21 U.S.C. 111), and sections 4 and 5 of 
the Act of May 29, 1884, as amended (21 U.S.C. 120).
    (8) Enter into contracts, grants, or cooperative agreements to 
further research programs in the agricultural sciences (7 U.S.C. 3318).
    (b) [Reserved]



  Subpart I--Delegations of Authority by the Under Secretary for Food, 
                    Nutrition, and Consumer Services



Sec. 2.55  Deputy Under Secretary for Food, Nutrition, and Consumer Services.

    Pursuant to Sec. 2.19(a), subject to reservations in Sec. 2.19(b), 
and subject to policy guidance and direction by the Under Secretary, the 
following delegation of authority is made by the Under Secretary for 
Food, Nutrition, and Consumer Services to the Deputy Under Secretary for 
Food, Nutrition and Consumer Services, to be exercised only during the 
absence or unavailability of the Under Secretary: Perform all the duties 
and exercise all the powers which are now or which may hereafter be 
delegated to the Under Secretary for Food, Nutrition, and Consumer 
Services.



Sec. 2.57  Administrator, Food and Consumer Service.

    (a) Delegations. Pursuant to Sec. 2.19(a)(1), (a)(2) and (a)(5), 
subject to reservations in Sec. 2.19(b)(1), the following delegations of 
authority are made by the Under Secretary for Food, Nutrition, and 
Consumer Services to the Administrator, Food and Consumer Service:
    (1) Administer the following legislation:
    (i) The Food Stamp Act of 1977, as amended (7 U.S.C. 2011-2032);

[[Page 216]]

    (ii) National School Lunch Act of 1946, as amended (42 U.S.C. 1751-
1769h), except procurement of agricultural commodities and other foods 
under section 6 thereof;
    (iii) Child Nutrition Act of 1966, as amended (42 U.S.C. 1771-1790);
    (iv) Sections 933-939 of the Food, Agriculture, Conservation, and 
Trade Act Amendments of 1991 (7 U.S.C. 5930 note); and
    (v) Section 301 of the Healthy Meals for Healthy Americans Act of 
1994 (Pub. L. No. 103-448).
    (2) Administer those functions relating to the distribution and 
donation of agricultural commodities and products thereof under the 
following legislation:
    (i) Clause (3) of section 416(a) of the Agricultural Act of 1949, as 
amended (7 U.S.C. 1431(a)), except the estimate and announcement of the 
types and varieties of food commodities, and the quantities thereof, to 
become available for distribution thereunder;
    (ii) Section 709 of the Food and Agriculture Act of 1965, as amended 
(7 U.S.C. 1446a-1);
    (iii) Section 32 of the Act of August 24, 1935, as amended (7 U.S.C. 
612c), as supplemented by the Act of June 28, 1937 (15 U.S.C. 713c), and 
related legislation;
    (iv) Section 9 of the Act of September 6, 1958 (7 U.S.C. 1431b);
    (v) Section 210 of the Agricultural Act of 1956 (7 U.S.C. 1859), 
except with respect to donations to Federal penal and correctional 
institutions;
    (vi) Section 402 of the Mutual Security Act of 1954, as amended (22 
U.S.C. 1922);
    (vii) Section 311 of the Older Americans Act of 1965, as amended (42 
U.S.C. 3030a);
    (viii) Sections 412 and 413(b) of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5179, 5180(b));
    (ix) Sections 4 and 5 of the Agriculture and Consumer Protection Act 
of 1973, as amended (7 U.S.C. 612c note);
    (x) Section 1114 of the Agriculture and Food Act of 1981, as amended 
(7 U.S.C. 1431e);
    (xi) Section 1336 of the Agriculture and Food Act of 1981 (Pub. L. 
No. 97-98);
    (xii) Emergency Food Assistance Act of 1983 (7 U.S.C. 612c note);
    (xiii) Sections 3(b)-(i), 3A and 4 of the Commodity Distribution 
Reform Act and WIC Amendments of 1987 (7 U.S.C. 612c note); and
    (xiv) Section 110 of the Hunger Prevention Act of 1988 (7 U.S.C. 
612c note).
    (3) Administer those functions relating to the distribution of food 
coupons under section 412 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5179).
    (4) In connection with the functions assigned in paragraphs (a)(1), 
(a)(2), and (a)(3) of this section, relating to the distribution and 
donation of agricultural commodities and products thereof and food 
coupons to eligible recipients, authority to determine the requirements 
for such agricultural commodities and products thereof and food coupons 
to be so distributed.
    (5) Receive donation of food commodities under clause (3) of section 
416(a) of the Agricultural Act of 1949, as amended, section 709 of the 
Food and Agriculture Act of 1965, as amended, section 5 of the 
Agriculture and Consumer Protection Act of 1973, section 1114(a) of the 
Agriculture and Food Act of 1981, and section 202(a) and 202A of the 
Emergency Food Assistance Act of 1983.
    (6) Authorize defense emergency food stamp assistance.
    (7) Develop and implement USDA policy and procedural guidelines for 
carrying out the Department's Consumer Affairs Plan.
    (8) Advise the Secretary and other policy level officials of the 
Department on consumer affairs policies and programs.
    (9) Coordinate USDA consumer affairs activities and monitor and 
analyze agency procedures and performance.
    (10) Represent the Department at conferences, meetings and other 
contacts where consumer affairs issues are discussed, including liaison 
with the White House and other governmental agencies and departments.
    (11) Work with the Office of Budget and Program Analysis and the 
Office of Communications to ensure coordination of USDA consumer affairs 
and public participation programs, policies and information, and to 
prevent duplication of responsibilities.

[[Page 217]]

    (12) Serve as a consumer ombudsman and communication link between 
consumers and the Department.
    (13) Approve the designation of agency Consumer Affairs Contacts.
    (b) [Reserved]



 Subpart J--Delegations of Authority by the Under Secretary for Natural 
                        Resources and Environment

    Editorial Note: Nomenclature changes to subpart J appear at 60 FR 
66713, Dec. 26, 1995.



Sec. 2.59  Deputy Under Secretaries for Natural Resources and Environment.

    Pursuant to Sec. 2.20(a), subject to reservations in Sec. 2.20(b), 
and subject to policy guidance and direction by the Under Secretary, the 
following delegation of authority is made by the Under Secretary for 
Natural Resources and Environment to the Deputy Under Secretaries for 
Natural Resources and Environment, to be exercised only during the 
absence or unavailability of the Under Secretary: Perform all the duties 
and exercise all the powers which are now or which may hereafter be 
delegated to the Under Secretary for Natural Resources and Environment. 
Provided, that, except in the absence of both the Under Secretary and a 
Deputy Under Secretary, this authority shall be exercised by the 
respective Deputy Under Secretary only with respect to the area or 
responsibility assigned to him or her.



Sec. 2.60  Chief, Forest Service.

    (a) Delegations. Pursuant to Sec. 2.20(a)(1), (a)(2), (a)(6), 
(a)(7)(ii) and (a)(8), the following delegations of authority are made 
by the Under Secretary for Natural Resources and Environment to the 
Chief of the Forest Service:
    (1) Provide national leadership in forestry. (As used here and 
elsewhere in this section, the term ``forestry'' encompasses renewable 
and nonrenewable resources of forests, including lands governed by the 
Alaska National Interest Lands Conservation Act, forest-related 
rangeland, grassland, brushland, woodland, and alpine areas including 
but not limited to recreation, range, timber, minerals, watershed, 
wildlife and fish; natural scenic, scientific, cultural, and historic 
values of forests and related lands; and derivative values such as 
economic strength and social well being).
    (2) Protect, manage, and administer the national forests, national 
forest purchase units, national grasslands, and other lands and 
interests in lands administered by the Forest Service, which 
collectively are designated as the National Forest System. This 
delegation covers the acquisition and disposition of lands and interest 
in lands as may be authorized for the protection, management, and 
administration of the National Forest System, except that the authority 
to approve acquisition of land under the Weeks Act of March 1, 1911, as 
amended, and special forest receipts acts (Pub. L. No. 337, 74th Cong., 
49 Stat. 866, as amended by Pub. L. No. 310, 78th Cong., 58 Stat. 227; 
Pub. L. No. 505, 75th Cong., 52 Stat. 347, as amended by Pub. L. No. 
310, 78th Cong., 58 Stat. 227; Pub. L. No. 634, 75th Cong., 52 Stat. 
699, as amended by Pub. L. No. 310, 78th Cong., 58 Stat. 227; Pub. L. 
No. 748, 75th Cong., 52 Stat. 1205, as amended by Pub. L. No. 310, 78th 
Cong., 58 Stat. 227; Pub. L. No. 427, 76th Cong., 54 Stat. 46; Pub. L. 
No. 589, 76th Cong., 54 Stat. 297; Pub. L. No. 591, 76th Cong., 54 Stat. 
299; Pub. L. No. 637, 76th Cong., 54 Stat. 402; Pub. L. No. 781, 84th 
Cong., 70 Stat. 632) is limited to acquisitions of less than $250,000 in 
value.
    (3) As necessary for administrative purposes, divide into and 
designate as national forests any lands of 3,000 acres or less which are 
acquired under or subject to the Weeks Act of March 1, 1911, as amended, 
and which are contiguous to existing national forest boundaries 
established under the authority of the Weeks Act.
    (4) Plan and administer wildlife and fish conservation 
rehabilitation and habitat management programs on National Forest System 
lands, pursuant to 16 U.S.C. 670g, 670h, and 670o.
    (5) For the purposes of the National Forests System Drug Control Act 
of 1986 (16 U.S.C. 559-f), specifically designate certain specially 
trained officers and employees of the Forest Service, not exceeding 500, 
to have authority in the performance of their duties within

[[Page 218]]

the boundaries of the National Forest System:
    (i) To carry firearms;
    (ii) To enforce and conduct investigations of violations of section 
401 of the Controlled Substance Act (21 U.S.C. 481) and other criminal 
violations relating to marijuana and other controlled substances that 
are manufactured, distributed, or dispensed on National Forest System 
lands;
    (iii) To make arrests with a warrant or process for misdemeanor 
violations, or without a warrant for violations of such misdemeanors 
that any such officer or employee has probable cause to believe are 
being committed in that employee's presence or view, or for a felony 
with a warrant or without a warrant if that employee has probable cause 
to believe that the person being arrested has committed or is committing 
such a felony;
    (iv) To serve warrants and other process issued by a court or 
officer of competent jurisdiction;
    (v) To search, with or without a warrant or process, any person, 
place, or conveyance according to Federal law or rule of law; and
    (vi) To seize, with or without warrant or process, any evidentiary 
item according to Federal law or rule of law.
    (6) Cooperate with the law enforcement officials of any Federal 
agency, State, or political subdivision, in the investigation of 
violations of, and enforcement of, section 401 of the Controlled 
Substances Act (21 U.S.C. 841), other laws and regulations relating to 
marijuana and other controlled substances, and State drug control laws 
or ordinances, within the boundaries of the National Forest System.
    (7) Administer programs under section 23 of the Federal Highway Act 
(23 U.S.C. 101(a), 120(f), 125(a)-(c), 138, 202(a)-(b), 203, 204(a)-(h), 
205(a)-(d), 211, 317, 401(a)).
    (8) Administer provisions of the Surface Mining Control and 
Reclamation Act of 1977 (30 U.S.C. 1272, 1305) as they relate to 
management of the National Forest System.
    (9) Conduct, support, and cooperate in investigations, experiments, 
tests, and other activities deemed necessary to obtain, analyze, 
develop, demonstrate, and disseminate scientific information about 
protecting, managing, and utilizing forest and rangeland renewable 
resources in rural, suburban, and urban areas in the United States and 
foreign countries. The activities conducted, supported, or cooperated in 
shall include, but not be limited to: renewable resource management 
research; renewable resource environmental research; renewable resource 
protection research, renewable resource utilization research, and 
renewable resource assessment research (16 U.S.C. 1641-1647).
    (10) Use authorities and means available to disseminate the 
knowledge and technology developed from forestry research (16 U.S.C. 
1645).
    (11) Coordinate activities with other agencies in USDA, other 
Federal and State agencies, forestry schools, and private entities and 
individuals (16 U.S.C. 1643).
    (12) Enter into contracts, grants, and cooperative agreements for 
the support of scientific research in forestry activities (7 U.S.C. 
427i(a), 1624; 16 U.S.C. 582a-8, 1643-1645, 1649).
    (13) Enter into cooperative research and development agreements with 
industry, universities, and others; institute a cash award program to 
reward scientific, engineering, and technical personnel; award royalties 
to inventors; and retain and use royalty income (15 U.S.C. 3710a-3710c).
    (14) Enter into contracts, grants, or cooperative agreements to 
further research, extension, or teaching programs in the food and 
agricultural sciences (7 U.S.C. 3152, 3318).
    (15) Enter into cost-reimbursable agreements relating to 
agricultural research, extension, or teaching activities (7 U.S.C. 
3319a).
    (16) Administer programs of cooperative forestry assistance in the 
protection, conservation, and multiple resource management of forests 
and related resources in both rural and urban areas and forest lands in 
foreign countries (16 U.S.C. 2101-2114).
    (17) Provide assistance to States and other units of government in 
forest resources planning and forestry rural revitalization (7 U.S.C. 
6601, 6611-6617; 16 U.S.C. 2107).

[[Page 219]]

    (18) Conduct a program of technology implementation for State 
forestry personnel, private forest landowners and managers, vendors, 
forest operators, public agencies, and individuals (16 U.S.C. 2107).
    (19) Administer rural fire protection and control program (16 U.S.C. 
2106).
    (20) Provide technical assistance on forestry technology or the 
implementation of the conservation reserve and softwood timber programs 
authorized in sections 1231-1244 and 1254 of the Food Security Act of 
1985 (16 U.S.C. 3831-3844; 7 U.S.C. 1981 note).
    (21) Administer forest insect, disease, and other pest management 
programs (16 U.S.C. 2104).
    (22) Exercise the custodial functions of the Secretary for lands and 
interests in lands under lease or contract of sale to States and local 
agencies pursuant to title III of the Bankhead-Jones Farm Tenant Act and 
administer reserved and reversionary interests in lands conveyed under 
that Act (7 U.S.C. 1010-1012).
    (23) Under such general program criteria and procedures as may be 
established by the Natural Resources Conservation Service:
    (i) Administer the forestry aspects of the programs listed in 
paragraphs (a)(23)(i)(A), (B), and (C) of this section on the National 
Forest System, rangelands with national forest boundaries, adjacent 
rangelands which are administered under formal agreement, and other 
forest lands:
    (A) The cooperative river basin surveys and investigations program 
(16 U.S.C. 1006);
    (B) The eleven authorized watershed improvement programs and 
emergency flood prevention measures program under the Flood Control Act 
(33 U.S.C. 701b-1);
    (C) The small watershed protection program under the Pilot Watershed 
Protection and Watershed Protection and Flood Prevention Acts (7 U.S.C. 
701a-h; 16 U.S.C. 1001-1009).
    (ii) Exercise responsibility in connection with the forestry aspects 
of the resource conservation and development program authorized by title 
III of the Bankhead-Jones Farm Tenant Act (7 U.S.C. 1011(e)).
    (24) Provide assistance to the Farm Service Agency in connection 
with the agricultural conservation program, the naval stores 
conservation program, and the cropland conversion program (16 U.S.C. 
590g-q).
    (25) Provide assistance to the Rural Housing Service in connection 
with grants and loans under authority of section 303 of the Consolidated 
Farm and Rural Development Act, 7 U.S.C. 1923; and consultation with the 
Department of Housing and Urban Development under the authority of 40 
U.S.C. 461(e).
    (26) Coordinate mapping work of USDA including:
    (i) Clearing mapping projects to prevent duplication;
    (ii) Keeping a record of mapping done by USDA agencies;
    (iii) Preparing and submitting required USDA reports;
    (iv) Serving as liaison on mapping with the Office of Management and 
Budget, Department of the Interior, and other departments and 
establishments;
    (v) Promoting interchange of technical mapping information, 
including techniques which may reduce costs or improve quality; and
    (vi) Maintaining the mapping records formerly maintained by the 
Office of Operations.
    (27) Administer the radio frequency licensing work of USDA, 
including:
    (i) Representing USDA on the Interdepartmental Radio Advisory 
Committee and its Frequency Assignment Subcommittee of the National 
Telecommunications and Information Administration, Department of 
Commerce;
    (ii) Establishing policies, standards, and procedures for allotting 
and assigning frequencies within USDA and for obtaining effective 
utilization of them;
    (iii) Providing licensing action necessary to assign radio 
frequencies for use by the agencies of USDA and maintenance of the 
records necessary in connection therewith; and
    (iv) Providing inspection of USDA's radio operations to ensure 
compliance with national and international regulations and policies for 
radio frequency use.

[[Page 220]]

    (28) Represent USDA in all matters relating to responsibilities and 
authorities under the Federal Water Power Act, as amended (16 U.S.C. 
791-823).
    (29) [Reserved]
    (30) Administer the Youth Conservation Corps Act (42 U.S.C. precede 
2711 note) for USDA.
    (31) Establish and operate the Job Corps Civilian Conservation 
Centers on National Forest System lands as authorized by title I, 
sections 106 and 107 of the Economic Opportunity Act of 1964 (42 U.S.C. 
2716-2717), in accordance with the terms of an agreement dated May 11, 
1967, between the Secretary of Agriculture and the Secretary of Labor; 
and administration of other cooperative manpower training and work 
experience programs where the Forest Service serves as host or prime 
sponsor with other Departments of Federal, State, or local governments.
    (32) Administer the Volunteers in the National Forests Act of 1972 
(16 U.S.C. 558a-558d, 558a note).
    (33) Exercise the functions of the Secretary of Agriculture 
authorized in the Alaska National Interest Lands Conservation Act (16 
U.S.C. 3101-3215).
    (34) Administer responsibilities and functions assigned under the 
Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et 
seq.), and title VI of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5195 et seq.), relating to forests 
and forest products, rural fire defense, and forestry research.
    (35) Represent USDA on the National Response Team on hazardous 
spills pursuant to Pub. L. No. 92-500 (33 U.S.C. 1151 note) and section 
4 of Executive Order 11735, 3 CFR, 1971-1975 Comp., p. 793.
    (36) Exercise the functions of the Secretary as authorized in the 
Wild and Scenic Rivers Act (16 U.S.C. 1271-1278), except for making 
recommendations to the President regarding additions to the National 
Wild and Scenic Rivers System.
    (37) Issue proposed rules relating to the authorities delegated in 
this section, issue final rules and regulations as provided in 36 CFR 
261.70, issue technical amendments and corrections to final rules issued 
by the Secretary or Under Secretary for Natural Resources and 
Environment, and issue proposed and final rules necessary and 
appropriate to carry out title VIII of the Alaska National Interest 
Lands Conservation Act (16 U.S.C. 3101-3215) with regard to National 
Forest System Lands.
    (38) Jointly administer gypsy moth eradication activities with the 
Animal and Plant Health Inspection Service, under the authority of 
section 102 of the Organic Act of 1944, as amended; and the Act of April 
6, 1937, as amended (7 U.S.C. 147a, 148, 148a-148e); and the Talmadge 
Aiken Act (7 U.S.C. 450), by assuming primary responsibility for 
treating isolated gypsy moth infestations on Federal lands, and on State 
and private lands contiguous to infested Federal lands, and any other 
infestations over 640 acres on State and private lands.
    (39) With respect to land and facilities under his or her authority, 
to exercise the functions delegated to the Secretary by Executive Order 
12580, 3 CFR, 1987 Comp., p. 193, under the following provisions of the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (``the Act''), as amended:
    (i) Sections 104 (a), (b), and (c)(4) of the Act (42 U.S.C. 9604 
(a), (b), and (c)(4)), with respect to removal and remedial actions in 
the event of release or threatened release of a hazardous substance, 
pollutant, or contaminant into the environment;
    (ii) Sections 104 (e)-(h) of the Act (42 U.S.C. 9604 (e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards and wage and labor 
standards applicable to covered work; and emergency procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)),

[[Page 221]]

with respect to petitions for preliminary assessment of a release or 
threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) of the 
Act pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (ix) Section 113(g) of the Act (42 U.S.C. 9613(g)), with respect to 
receiving notification of a natural resource trustee's intent to file 
suit;
    (x) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon which to base the selection 
of a response action and identifying and notifying potentially 
responsible parties;
    (xi) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xii) Section 117 (a) and (c) of the Act (42 U.S.C. 9617 (a) and 
(c)), with respect to public participation in the preparation of any 
plan for remedial action and explanation of variances from the final 
remedial action plan for any remedial action or enforcement action, 
including any settlement or consent decree entered into;
    (xiii) Section 119 of the Act (42 U.S.C. 9619), with respect to 
indemnifying response action contractors;
    (xiv) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), related to mixed funding agreements.
    (40) Exercise the functions of the Secretary authorized in the 
Federal Onshore Oil and Gas Leasing Reform Act of 1987 (30 U.S.C. 226 et 
seq.).
    (41) With respect to facilities and activities under his or her 
authority, to exercise the authority of the Secretary of Agriculture 
pursuant to section 1-102 related to compliance with applicable 
pollution control standards and section 1-601 of Executive Order 12088, 
3 CFR, 1978 Comp., p. 243, to enter into an inter-agency agreement with 
the United States Environmental Protection Agency, or an administrative 
consent order or a consent judgment in an appropriate United States 
District Court with an appropriate State, interstate, or local agency, 
containing a plan and schedule to achieve and maintain compliance with 
applicable pollution control standards established pursuant to the 
following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, the Hazardous and Solid Waste Amendment, 
and the Federal Facility Compliance Act (42 U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended, (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).
    (42) With respect to land and facilities under his or her authority, 
exercise the functions delegated to the Secretary by Executive Order 
12580, 3 CFR, 1987 Comp., p. 193, and Executive Order 12777, 3 CFR, 1991 
Comp., p. 351, to act as Federal trustee for natural resources in 
accordance with section 107(f) of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C 9607(f)), 
section 311(f)(5) of the Federal Water Pollution Control Act (33 U.S.C. 
1321(f)(5)), and section 1006(b)(2) of the

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Oil Pollution Act of 1990 (33 U.S.C. 2706(b)(2)).
    (43) With respect to land and facilities under his or her authority, 
to exercise the authority vested in the Secretary of Agriculture to act 
as the ``Federal Land Manager'' pursuant to the Clean Air Act, as 
amended, 42 U.S.C. 7401 et seq.
    (44) Administer the Public Lands Corps program (16 U.S.C. 1721 et 
seq.) for USDA consistent with the Department's overall national service 
program.
    (45) Jointly administer the Forestry Incentives Program with the 
Natural Resources Conservation Service, in consultation with State 
Foresters, under section 4 of the Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2103).
    (46) Focusing on countries that could have a substantial impact on 
global warming, provide assistance that promotes sustainable development 
and global environmental stability; share technical, managerial, 
extension, and administrative skills; provide education and training 
opportunities; engage in scientific exchange; and cooperate with 
domestic and international organizations that further international 
programs for the management and protection of forests, rangelands, 
wildlife, fisheries and related natural resources (16 U.S.C. 4501-4505).
    (b) Reservations. The following authorities are reserved to the 
Under Secretary for Natural Resources and Environment:
    (1) The authority to issue final rules and regulations relating to 
the administration of Forest Service programs, except as provided in 36 
CFR 261.70 and Sec. 2.60(a)(37).
    (2) As deemed necessary for administrative purposes, the authority 
to divide into and designate as national forests any lands of more than 
3,000 acres acquired under or subject to the Weeks Act of March 1, 1911, 
as amended (16 U.S.C. 521).
    (3) The authority to make recommendations to the Administrator of 
General Services regarding transfer to other Federal, State, or 
Territorial agencies lands acquired under the Bankhead-Jones Farm Tenant 
Act, together with recommendations on the conditions of use and 
administration of such lands, pursuant to the provisions of section 
32(c) of title III of the Bankhead-Jones Farm Tenant Act (7 U.S.C. 
1011(c), and Executive Order 11609, 3 CFR, 1971-1975 Comp., p. 586).
    (4) Making recommendations to the President for establishing new 
units or adding to existing units of the National Wild and Scenic Rivers 
System (16 U.S.C. 1271-1278); National Scenic Trails System (16 U.S.C. 
1241-1249) and the National Wilderness Preservation System (16 U.S.C. 
1131-1136).
    (5) Signing of declarations of taking and requests for condemnation 
of property as authorized by law to carry out the mission of the Forest 
Service (40 U.S.C. 257).
    (6) Approval of acquisition of land under the Weeks Act of March 1, 
1911, as amended (16 U.S.C. 521), and special forest receipts acts (Pub. 
L. No. 337, 74th Cong., 49 Stat. 866, as amended by Pub. L. No. 310, 
78th Cong., 58 Stat. 227; Pub. L. No. 505, 75th Cong., 52 Stat. 347, as 
amended by Pub. L. No. 310, 78th Cong., 58 Stat. 227; Pub. L. No. 634, 
75th Cong., 52 Stat. 699, as amended by Pub. L. No. 310, 78th Cong., 58 
Stat. 227; Pub. L. No. 748, 75th Cong., 52 Stat. 1205, as amended by 
Pub. L. No. 310, 78th Cong., 58 Stat. 227; Pub. L. No. 427, 76th Cong., 
54 Stat. 46; Pub. L. No. 589, 76th Cong., 54 Stat. 297; Pub. L. No. 591, 
76th Cong., 54 Stat. 299; Pub. L. No. 637, 76th Cong., 54 Stat. 402; 
Pub. L. No. 781, 84th Cong., 70 Stat. 632) of $250,000 or more in value 
for national forest purposes.



Sec. 2.61  Chief, Natural Resources Conservation Service.

    (a) Delegations. Pursuant to Sec. 2.20 (a)(1), (a)(3), (a)(5), 
(a)(6), (a)(7)(ii) and (a)(8), subject to reservations in 
Sec. 2.20(b)(1), the following delegations of authority are made by the 
Under Secretary for Natural Resources and Environment to the Chief of 
the Natural Resources Conservation Service:
    (1) Provide national leadership in the conservation, development and 
productive use of the Nation's soil, water, and related resources. Such 
leadership encompasses soil, water, plant, and wildlife conservation; 
small watershed protection and flood prevention; and resource 
conservation and development.

[[Page 223]]

Integrated in these programs are erosion control, sediment reduction, 
pollution abatement, land use planning, multiple use, improvement of 
water quality, and several surveying and monitoring activities related 
to environmental improvement. All are designed to assure:
    (i) Quality in the natural resource base for sustained use;
    (ii) Quality in the environment to provide attractive, convenient, 
and satisfying places to live, work, and play; and
    (iii) Quality in the standard of living based on community 
improvement and adequate income.
    (2) Provide national leadership in evaluating and coordinating land 
use policy, and administer the Farmland Protection Policy Act (7 U.S.C. 
4201 et seq.), including the Farms for the Future Program authorized by 
sections 1465-1470 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 4201 note), except as otherwise delegated to the 
Administrator, Agricultural Research Service in Sec. 2.65(a)(80) and the 
Administrator, Cooperative State Research, Education, and Extension 
Service in Sec. 2.66(a)(76).
    (3) Administer the basic program of soil and water conservation 
under Pub. L. No. 46, 74th Congress, as amended, and related laws (16 
U.S.C. 590a-f, 1-1, q, q-1; 42 U.S.C. 3271-3274; 7 U.S.C. 2201), 
including:
    (i) Technical and financial assistance to land users in carrying out 
locally adapted soil and water conservation programs primarily through 
soil and water conservation districts in the several States, the 
District of Columbia, the Commonwealth of Puerto Rico, and the 
Commonwealth of the Northern Mariana Islands, American Samoa, Guam, the 
Virgin Islands, and Federally recognized Native American tribes, but 
also to communities, watershed groups, Federal and State agencies, and 
other cooperators. This authority includes such assistance as:
    (A) Comprehensive planning assistance in nonmetroplitan districts;
    (B) Assistance in the field of income-producing recreation on rural 
non-Federal lands;
    (C) Forestry assistance, as part of total technical assistance to 
private land owners and land users when such services are an integral 
part of land management and such services are not available from a State 
agency; and forestry services in connection with windbreaks and shelter 
belts to prevent wind and water erosion of lands;
    (D) Assistance in developing programs relating to natural beauty; 
and
    (E) Assistance to other USDA agencies in connection with the 
administration of their programs, as follows:
    (1) To the Farm Service Agency in the development and technical 
servicing of certain programs, such as the Agricultural Conservation 
Program and other such similar conservation programs;
    (2) To the Rural Housing Service in connection with their loan and 
land disposition programs.
    (ii) Soil Surveys, including:
    (A) Providing leadership for the Federal part of the National 
Cooperative Soil Survey which includes conducting and publishing soil 
surveys;
    (B) Conducting soil surveys for resource planning and development; 
and
    (C) Performing the cartographic services essential to carrying out 
the functions of the Natural Resources Conservation Service, including 
furnishing photographs, mosaics, and maps.
    (iii) Conducting and coordinating snow surveys and making water 
supply forecasts pursuant to Reorganization Plan No. IV of 1940 (5 
U.S.C. App.);
    (iv) Operating plant materials centers for the assembly and testing 
of plant species in conservation programs, including the use, 
administration, and disposition of lands under the administration of the 
Natural Resources Conservation Service for such purposes under title III 
of the Bankhead-Jones Farm Tenant Act (7 U.S.C. 1010-1011); and
    (v) Providing leadership in the inventorying and monitoring of soil, 
water, land, and related resources of the Nation.
    (4) Administer the Watershed Protection and Flood Prevention 
Programs, including:
    (i) The eleven authorized watershed projects authorized under 33 
U.S.C. 702b-1, except for responsibilities assigned to the Forest 
Service;

[[Page 224]]

    (ii) The emergency flood control work under 33 U.S.C. 701b-1, except 
for responsibilities assigned to the Forest Service;
    (iii) The Cooperative River Basin Surveys and Investigations 
Programs under 16 U.S.C. 1006, except for responsibilities assigned to 
the Forest Service;
    (iv) The pilot watershed projects under 16 U.S.C. 590a-f, and 16 
U.S.C. 1001-1009, except for responsibilities assigned to the Forest 
Service;
    (v) The Watershed Protection and Flood Prevention Program under 16 
U.S.C. 1001-1009, except for responsibilities assigned to the Rural 
Housing Service and the Forest Service;
    (vi) The joint investigations and surveys with the Department of the 
Army under 16 U.S.C. 1009; and
    (vii) The Emergency Conservation Program under sections 401-405 of 
the Agricultural Credit Act of 1978 (the Act), 16 U.S.C. 2201 et seq., 
except for the provisions of sections 401 and 402 of the Act, 16 U.S.C. 
2201-2202, as administered by the Farm Service Agency.
    (5) Administer the Great Plains Conservation Program and the 
Critical Lands Resources Conservation Program under 16 U.S.C. 590p(b).
    (6) Administer the Resource Conservation and Development Program 
under 16 U.S.C. 590a-f; 7 U.S.C. 1010-1011; and 16 U.S.C. 3451-3461, 
except for responsibilities assigned to the Rural Utilities Service.
    (7) Responsibility for entering into long-term contracts for 
carrying out conservation and environmental measures in watershed areas.
    (8) Provide national leadership for and administer the Soil and 
Water Resources Conservation Act of 1977 (16 U.S.C. 2001 et seq.), 
except for responsibilities assigned to other USDA agencies.
    (9) Administer Rural Clean Water Program and other responsibilities 
assigned under section 35 of the Clean Water Act of 1977 (33 U.S.C. 1251 
et seq.).
    (10) Monitor actions and progress of USDA in complying with 
Executive Order 11988, Flood Plain Management, 3 CFR, 1977 Comp., p. 
117, and Executive Order 11990, Protection of Wetlands, 3 CFR, 1977 
Comp., p. 121, regarding management of floodplains and protection of 
wetlands; monitor USDA efforts on protection of important agricultural, 
forest and rangelands; and provide staff assistance to the USDA Natural 
Resources and Environment Committee.
    (11) Administer the search and rescue operations authorized under 7 
U.S.C. 2273.
    (12) Administer section 202(c) of the Colorado River Basin Salinity 
Control Act, 43 U.S.C. 1592(c) including:
    (i) Identify salt source areas and determine the salt load resulting 
from irrigation and watershed management practices;
    (ii) Conduct salinity control studies of irrigated salt source 
areas;
    (iii) Provide technical and financial assistance in the 
implementation of salinity control projects including the development of 
salinity control plans, technical services for application, and 
certification of practice applications;
    (iv) Develop plans for implementing measures that will reduce the 
salt load of the Colorado River;
    (v) Develop and implement long-term monitoring and evaluation plans 
to measure and report progress and accomplishments in achieving program 
objectives; and
    (vi) Enter into and administer contracts with program participants 
and waive cost-sharing requirements when such cost-sharing requirements 
would result in a failure to proceed with needed on-farm measures.
    (13) Administer natural resources conservation authorities under 
title XII of the Food Security Act of 1985 (Act), as amended (16 U.S.C. 
3801 et seq.), including responsibilities for:
    (i) the conservation of highly erodible lands and wetlands pursuant 
to sections 1211-1223 of the Act (16 U.S.C. 3811-3823);
    (ii) technical assistance related to soil and water conservation 
technology for the implementation and administration of the Conservation 
Reserve Program authorized by sections 1231-1244 of the Act, as amended 
(16 U.S.C. 3831-3844);
    (iii) the Environmental Easement Program authorized by sections 
1239-1239d of the Act (16 U.S.C. 3839-3839d);
    (iv) the Agricultural Water Quality Improvement Program authorized 
by

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sections 1238-1238f of the Act, as amended (16 U.S.C. 3838-3838f); and
    (v) the Wetland Reserve Program and the Emergency Wetlands Reserve 
Program authorized by sections 1237-1237f of the Act, as amended (16 
U.S.C. 3837-3837f), and the Emergency Supplemental Appropriations for 
Relief From the Major, Widespread Flooding in the Midwest Act of 1993, 
Pub. L. No. 103-75.
    (14) Approve and transmit to the Congress comprehensive river basin 
reports.
    (15) Provide representation on the Water Resources Council and river 
basin commissions created by 42 U.S.C. 1962, and on river basin 
interagency committees.
    (16) Jointly administer the Forestry Incentives Program with the 
Forest Service, in consultation with State Foresters, under section 4 of 
the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103).
    (17) Administer the Water Bank Program under the Water Bank Act (16 
U.S.C. 1301 et seq.).
    (18) Administer water quality activities under the Agriculture and 
Water Policy Coordination Act, subtitle G, title XIV of the Food, 
Agriculture, Conservation, and Trade Act of 1990, as amended (7 U.S.C. 
5501-5505).
    (19) Administer the Rural Environmental Conservation Program 
authorized by sections 1001-1010 of the Agriculture Act of 1970, as 
amended (16 U.S.C. 1501-1510).
    (20) Coordinate USDA input and assistance to the Department of 
Commerce and other Federal agencies consistent with section 307 of the 
Coastal Zone Management Act of 1972 (16 U.S.C. 1456), and coordinate 
USDA review of qualifying state and local government coastal management 
plans or programs prepared under such Act and submitted to the Secretary 
of Commerce, consistent with section 306(a) and (c) of such Act (16 
U.S.C. 1455(a) and (c)).
    (21) Administer responsibilities and functions assigned under the 
Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et 
seq.), and title VI of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5195 et seq.), relating to 
agricultural lands and water.
    (22) Administer the Abandoned Mine Reclamation Program for Rural 
Lands and other responsibilities assigned under the Surface Mining 
Control and Reclamation Act of 1977 (30 U.S.C. 1201 et seq.), except for 
responsibilities assigned to the Forest Service.
    (23) With respect to land and facilities under his or her authority, 
to exercise the functions delegated to the Secretary by Executive Order 
12580, 3 CFR, 1987 Comp., p. 193, under the following provisions of the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (``the Act''), as amended:
    (i) Sections 104(a), (b), and (c)(4) of the Act (42 U.S.C. 9604(a), 
(b), and (c)(4)), with respect to removal and remedial actions in the 
event of release or threatened release of a hazardous substance, 
pollutant, or contaminant into the environment;
    (ii) Sections 104(e)-(h) of the Act (42 U.S.C. 9604 (e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards and wage and labor 
standards applicable to covered work; and emergency procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petitions for preliminary assessment of a 
release or threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) of the 
Act pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622) and the granting of awards to individuals providing 
information;

[[Page 226]]

    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (ix) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon which to base the selection 
of a response action and identifying and notifying potentially 
responsible parties;
    (x) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xi) Section 117(a) and (c) of the Act (42 U.S.C. 9617(a) and (c)), 
with respect to public participation in the preparation of any plan for 
remedial action and explanation of variances from the final remedial 
action plan for any remedial action or enforcement action, including any 
settlement or consent decree entered into;
    (xii) Section 119 of the Act (42 U.S.C. 9619), with respect to 
indemnifying response action contractors;
    (xiii) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xiv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlement, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9633(b)(1)), related to mixed funding agreements.
    (24) With respect to facilities and activities under his or her 
authority, to exercise the authority of the Secretary of Agriculture 
pursuant to section 1-102 related to compliance with applicable 
pollution control standards and section 1-601 of Executive Order 12088, 
3 CFR, 1978 Comp., p. 243, to enter into an inter-agency agreement with 
the United States Environmental Protection Agency, or an administrative 
consent order or a consent judgment in an appropriate United States 
District Court with an appropriate State, interstate, or local agency, 
containing a plan and schedule to achieve and maintain compliance with 
applicable pollution control standards established pursuant to the 
following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, the Hazardous and Solid Waste Amendments, 
and the Federal Facility Compliance Act (42 U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended, (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).
    (b) Reservations. The following authorities are reserved to the 
Under Secretary for Natural Resources and Environment:
    (1) Executing cooperative agreements and memoranda of understanding 
for multi-agency cooperation with conservation districts and other 
districts organized for soil and water conservation within States, 
territories, possessions, and American Indian Nations.
    (2) Approving additions to authorized Resource Conservation and 
Development Projects that designate new project areas in which resource 
conservation and development program assistance will be provided, and 
withdrawing authorization for assistance, pursuant to 16 U.S.C. 590a-f; 
7 U.S.C. 1010-1011; 16 U.S.C. 3451-3461.
    (3) Giving final approval to and transmitting to the Congress 
watershed work plans that require congressional approval.



Subpart K--Delegations of Authority by the Under Secretary for Research, 
                        Education, and Economics



Sec. 2.63  Deputy Under Secretary for Research, Education, and Economics.

    Pursuant to Sec. 2.21(a), subject to reservations in Sec. 2.21(b), 
and subject to policy guidance and direction by the Under Secretary, the 
following delegation of authority is made by the Under

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Secretary for Research, Education, and Economics, to be exercised only 
during the absence or unavailability of the Under Secretary: Perform all 
the duties and exercise all the powers which are now or which may 
hereafter be delegated to the Under Secretary for Research, Education, 
and Economics.



Sec. 2.65  Administrator, Agricultural Research Service.

    (a) Delegations. Pursuant to Sec. 2.21(a)(1), (a)(3) and (a)(5) 
through (a)(7), subject to reservations in Sec. 2.21(b)(1), the 
following delegations of authority are made by the Under Secretary for 
Research, Education, and Economics to the Administrator, Agricultural 
Research Service:
    (1) Coordinate USDA policy relative to the Federal Insecticide, 
Fungicide, and Rodenticide Act, as amended (7 U.S.C. 136 et seq.) and 
coordinate the Department's Integrated Pest Management Programs and the 
Pesticide Assessment Program (7 U.S.C. 136-136y).
    (2) Conduct research related to the economic feasibility of the 
manufacture and commercialization of natural rubber from hydrocarbon-
containing plants (7 U.S.C. 178-178n).
    (3) Conduct research on the control of undesirable species of 
honeybees in cooperation with specific foreign governments (7 U.S.C. 
284).
    (4) Conduct research concerning domestic animals and poultry, their 
protection and use, the causes of contagious, infectious, and 
communicable diseases, and the means for the prevention and cure of the 
same (7 U.S.C. 391).
    (5) Conduct research related to the dairy industry and to the 
dissemination of information for the promotion of the dairy industry (7 
U.S.C. 402).
    (6) Conduct research and demonstrations at Mandan, ND, related to 
dairy livestock breeding, growing, and feeding, and other problems 
pertaining to the establishment of the dairy and livestock industries (7 
U.S.C. 421-422).
    (7) Conduct research on new uses for cotton and on cotton ginning 
and processing (7 U.S.C. 423-424).
    (8) Conduct research into the basic problems of agriculture in its 
broadest aspects, including, but not limited to, production, marketing 
(other than statistical and economic research but including research 
related to family use of resources), distribution, processing, and 
utilization of plant and animal commodities; problems of human 
nutrition; development of markets for agricultural commodities; 
discovery, introduction, and breeding of new crops, plants, animals, 
both foreign and native; conservation development; and development of 
efficient use of farm buildings, homes, and farm machinery except as 
otherwise delegated in Secs. 2.22(a)(1)(ii) and 2.79(a)(2) (7 U.S.C. 
427, 1621-1627, 1629, 2201 and 2204).
    (9) Conduct research on varietal improvement of wheat and feed 
grains to enhance their conservation and environmental qualities (7 
U.S.C. 428b).
    (10) Advance the livestock and agricultural interests of the United 
States, including the breeding of horses suited to the needs of the 
United States (7 U.S.C. 437).
    (11) Enter into agreements with and receive funds from any State, 
other political subdivision, organization, or individual for the purpose 
of conducting cooperative research projects (7 U.S.C. 450a).
    (12) Make facilities grants and conduct research under the IR-4 
program (7 U.S.C. 450i(d) and (e)).
    (13) Conduct research related to soil and water conservation, 
engineering operations, and methods of cultivation to provide for the 
control and prevention of soil erosion (7 U.S.C. 1010 and 16 U.S.C. 
590a).
    (14) Maintain four regional research laboratories and conduct 
research at such laboratories to develop new scientific, chemical, and 
technical uses and new and extended markets and outlets for farm 
commodities and products and the by-products thereof (7 U.S.C. 1292).
    (15) Conduct a Special Cotton Research Program designed to reduce 
the cost of producing upland cotton in the United States (7 U.S.C. 1441 
note).
    (16) Conduct research to formulate new uses for farm and forest 
products (7 U.S.C. 1632(b)).
    (17) Conduct research to develop and determine methods for the 
humane slaughter of livestock (7 U.S.C. 1904).
    (18) Provide national leadership and support for research programs 
and other research activities in the food

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and agricultural sciences to meet major needs and challenges in food and 
agricultural system productivity; development of new food, fiber, and 
energy sources; agricultural energy use and production; natural 
resources; promotion of the health and welfare of people; human 
nutrition; and international food and agriculture pursuant to the 
National Agricultural Research, Extension, and Teaching Policy Act of 
1977, as amended (7 U.S.C. 3101 et seq.).
    (19) Conduct a program of grants to States to expand, renovate, or 
improve schools of veterinary medicine (7 U.S.C. 3151).
    (20) Administer the National Agricultural Science Award for research 
or advanced studies in the food and agricultural sciences (7 U.S.C. 
3153).
    (21) Conduct program evaluations to improve the administration and 
effectiveness of agricultural research and education programs (7 U.S.C. 
3317).
    (22) Enter into contracts, grants, or cooperative agreements to 
further research programs and library and related information programs 
supporting research, extension, and teaching programs in the food and 
agricultural sciences (7 U.S.C. 3318).
    (23) Enter into cost-reimbursable agreements relating to 
agricultural research, teaching and to further library and related 
information programs supporting research, extension and teaching 
programs in the food and agricultural sciences (7 U.S.C. 3319a).
    (24) Conduct research for the development of supplemental and 
alternative crops (7 U.S.C. 3319d).
    (25) Conduct research on potential uses for compost from 
agricultural wastes, including evaluating the application of compost on 
soil, plants, and crops (7 U.S.C. 3130).
    (26) Reserved.
    (27) Cooperate and work with national and international 
institutions, Departments and Ministries of Agriculture in other 
nations, land-grant colleges and universities, and other persons 
throughout the world in the performance of agricultural research 
activities (7 U.S.C. 3291).
    (28) Perform research and development at aquacultural research and 
development centers (7 U.S.C. 3322).
    (29) Conduct a program of basic research on cancer in animals and 
birds (7 U.S.C. 3902).
    (30) Conduct and coordinate Departmental research programs on water 
quality and nutrient management (7 U.S.C. 5504).
    (31) Conduct research to optimize crop and livestock production 
potential, integrated resource management, and integrated crop 
management (7 U.S.C. 5821).
    (32) Administer a national research program on genetic resources to 
provide for the collection, preservation, and dissemination of genetic 
material important to American food and agriculture production (7 U.S.C. 
5841).
    (33) Conduct remote-sensing and other weather-related research (7 
U.S.C. 5852).
    (34) Administer grants and conduct research programs to measure 
microbiological and chemical agents associated with the production, 
preparation, processing, handling, and storage of agricultural products 
(7 U.S.C. 5871-5874).
    (35) Conduct research on integrated pest management, including 
research to benefit floriculture (7 U.S.C. 5881).
    (36) Conduct research in the control and eradication of exotic pests 
(7 U.S.C. 5883).
    (37) Conduct research to study the biology and behavior of chinch 
bugs (7 U.S.C. 5884).
    (38) Administer a grant program for risk assessment research to 
address concerns about the environmental effects of biotechnology (7 
U.S.C. 5921).
    (39) Establish and coordinate USDA programs and conduct basic and 
applied research and technology development in the areas of plant genome 
structure and function (7 U.S.C. 5924).
    (40) Conduct research for the development of technology to determine 
animal lean content (7 U.S.C. 5925).
    (41) Conduct research to determine the presence of aflatoxin in the 
food and feed chains (7 U.S.C. 5925).
    (42) Conduct research to develop production methods and commercial 
uses of mesquite (7 U.S.C. 5925).
    (43) Conduct research to investigate enhanced genetic selection and 
processing techniques of prickly pears (7 U.S.C. 5925).

[[Page 229]]

    (44) Conduct a research program and administer grants and contracts 
for research on the disease of scrapie in sheep and goats (7 U.S.C. 
5925).
    (45) Conduct basic and applied research in the development of new 
commercial products from natural plant materials (7 U.S.C. 5925).
    (46) Conduct research on diseases affecting honeybees (7 U.S.C. 
5934).
    (47) Coordinate USDA policy and programs relating to global climate 
change (7 U.S.C. 6701-6703).
    (48) Coordinate Departmental policies under the Toxic Substances 
Control Act (15 U.S.C. 2601-2629).
    (49) With respect to facilities and activities under his or her 
authority, to exercise the authority of the Secretary of Agriculture 
pursuant to section 1-102 related to compliance with applicable 
pollution control standards and section 1-601 of Executive Order 12088, 
3 CFR, 1978 Comp., p. 243, to enter into an inter-agency agreement with 
the United States Environmental Protection Agency, or an administrative 
consent order or a consent judgment in an appropriate State, interstate, 
or local agency, containing a plan and schedule to achieve and maintain 
compliance with applicable pollution control standards established 
pursuant to the following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, as further amended by the Hazardous and 
Solid Waste Amendments, and the Federal Facility Compliance Act (42 
U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).
    (50) Perform research and administer grants for research and 
development in aquaculture (16 U.S.C. 2804).
    (51) Maintain a National Arboretum for the purposes of research and 
education concerning tree and plant life; accept and administer gifts or 
devices of real and personal property for the benefit of the National 
Arboretum; and order disbursements from the Treasury (20 U.S.C. 191-
195).
    (52) Conduct research on foot-and-mouth disease and other animal 
diseases (21 U.S.C. 113a).
    (53) Conduct research on the control and eradication of cattle grubs 
(screwworms) (21 U.S.C. 114e).
    (54) Conduct research activities related to farm dwellings and other 
buildings for the purposes of reducing costs and adapting and developing 
fixtures and appurtenances for more efficient and economical farm use 
(42 U.S.C. 1476(b)).
    (55) Conduct research on losses of livestock in interstate commerce 
due to injury or disease (45 U.S.C. 71 note).
    (56) Control within USDA the acquisition, use, and disposal of 
material and equipment that may be a source of ionizing radiation 
hazard.
    (57) Pursuant to the authority delegated by the Administrator of 
General Services to the Secretary of Agriculture in 34 FR 6406, 36 FR 
1293, 36 FR 18840, and 38 FR 23838, appoint uniformed armed guards and 
special policemen, make all needful rules and regulations, and annex to 
such rules and regulations such reasonable penalties (not to exceed 
those prescribed in 40 U.S.C. 318(c)), as will insure their enforcement, 
for the protection of persons, property, buildings, and grounds of the 
Arboretum, Washington, DC; the U.S. Meat Animal Research Center, Clay 
Center, NE.; the Agricultural Research Center, Beltsville, MD; and the 
Animal Disease Center, Plum Island, NY, over which the United States has 
exclusive or concurrent criminal jurisdiction, in accordance with the 
limitations and requirements of the Federal Property and Administrative 
Services Act of 1949, as amended (40 U.S.C. 471 et

[[Page 230]]

seq.), the Act of June 1, 1948, as amended (40 U.S.C. 318 et seq.), and 
the policies, procedures, and controls prescribed by the General 
Services Administration. Any rules or regulations promulgated under this 
authority shall be approved by the Director, Office of Operations, and 
the General Counsel prior to issuance.
    (58) Administer the Department's Patent Program except as delegated 
to the General Counsel in Sec. 2.31(e).
    (59) Provide management support services for the Economic Research 
Service, the Cooperative State Research, Education and Extension 
Service, and the National Agricultural Statistics Service as agreed upon 
by the agencies with authority to take actions required by law or 
regulation. As used herein, the term management support services 
includes budget, finance, personnel, procurement, property management, 
communications, paperwork management, ADP support, and related 
administrative services.
    (60) With respect to land and facilities under his or her authority, 
exercise the functions delegated to the Secretary by Executive Order 
12580, 3 CFR, 1987 Comp., p. 193, under the following provisions of the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (``the Act''), as amended:
    (i) Sections 104 (a), (b), and (c)(4) of the Act (42 U.S.C. 9604 
(a), (b), and (c)(4)), with respect to removal and remedial actions in 
the event of release or threatened release of a hazardous substance, 
pollutant, or contaminant into the environment;
    (ii) Sections 104(e)-(h) of the Act (42 U.S.C. 9604(e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards and wage and labor 
standards applicable to covered work; and emergency procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petitions for preliminary assessment of a 
release or threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) 
pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (ix) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon which to base the selection 
of a response action and identifying and notifying potentially 
responsible parties;
    (x) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xi) Sections 117(a) and (c) of the Act (42 U.S.C. 9617 (a) and 
(c)), with respect to public participation in the preparation of any 
plan for remedial action and explanation of variances from the final 
remedial action plan for any remedial action or enforcement action, 
including any settlement or consent decree entered into;
    (xii) Section 119 of the Act (42 U.S.C. 9119), with respect to 
indemnifying response action contractors;
    (xiii) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xiv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), related to mixed funding agreements.
    (61) Carry out research activities authorized in section 202(c) of 
the Colorado River Basin Salinity Control Act (43 U.S.C. 1592(c)).
    (62) Perform food and agricultural research in support of functions 
assigned

[[Page 231]]

to the Department under the Defense Production Act of 1950, as amended 
(50 U.S.C. App. 2061 et seq.), and title VI of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5195 et seq.).
    (63) Propagate bee-breeding stock and release bee germplasm to the 
public (7 U.S.C. 283).
    (64) Administer a National Food and Human Nutrition Research Program 
under the National Agricultural Research, Extension, and Teaching Policy 
Act of 1977, as amended. As used herein the term ``research'' includes:
    (i) Research on the nutrient composition of foods and the effects of 
agricultural practices, handling, food processing, and cooking on the 
nutrients they contain;
    (ii) Surveillance of the nutritional benefits provided to 
participants in the food programs administered by the Department; and
    (iii) Research on the factors affecting food preference and habits 
(7 U.S.C. 3171-3175, 3177).
    (65) The authority in paragraph (a)(64) of this section includes the 
authority to:
    (i) Appraise the nutritive content of the U.S. food supply;
    (ii) Develop and make available data on the nutrient composition of 
foods needed by Federal, State, and local agencies administering food 
and nutrition programs, and the general public, to improve the 
nutritional quality of diets;
    (iii) Coordinate nutrition education research and professional 
education projects within the Department; and
    (iv) Maintain data generated on food composition in a National 
Nutrient Data Bank.
    (66) Conduct, in cooperation with the Department of Health and Human 
Services, the National Nutrition Monitoring and Related Research 
Program. Included in this delegation is the authority to:
    (i) Design and carry out periodic nationwide food consumption 
surveys to measure household food consumption;
    (ii) Design and carry out a continuous, longitudinal individual 
intake survey of the United States population and special high-risk 
groups; and
    (iii) Design and carry out methodological research studies to 
develop improved procedures for collecting household and individual food 
intake consumption data;
    (67) Conduct a program of nutrition education research.
    (68) Provide staff support to the Under Secretary for Research, 
Education, and Economics related to the Ten-Year Comprehensive Plan and 
the Interagency Board for Nutrition Monitoring and Related Research 
required by Pub. L. No. 101-445, 7 U.S.C. 5301 et seq.
    (69) Obtain and furnish excess property to eligible recipients for 
use in the conduct of research and extension programs.
    (70) Provide resource information concerning rural electric and 
telephone use and rural development efforts (7 U.S.C. 917).
    (71) Act as a catalyst to provide access to leadership training and 
services programs encompassing private, public, business, and government 
entities in cooperation with the Extension Service (7 U.S.C. 950aa-1).
    (72) Develop and maintain library and information systems and 
networks and facilitate cooperation and coordination of the agricultural 
libraries of colleges, universities, USDA, and their closely allied 
information gathering and dissemination units in conjunction with 
private industry and other research libraries (7 U.S.C. 2201, 2204, 
3125a, and 3126).
    (73) Accept gifts and order disbursements from the Treasury for the 
benefit of the National Agricultural Library or for the carrying out of 
any of its functions (7 U.S.C. 2264-2265).
    (74) Provide for the dissemination of appropriate rural health and 
safety information resources possessed by the National Agricultural 
Library Rural Information Center, in cooperation with State educational 
program efforts (7 U.S.C. 2662).
    (75) Provide national leadership in the development and maintenance 
of library and related information systems and other activities to 
support the research, extension, and teaching programs in the food and 
agricultural sciences pursuant to the National Agricultural Research, 
Extension, and

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Teaching Policy Act of 1977, as amended (7 U.S.C. 3101 and 3121).
    (76) Administer the programs and services of the National 
Agricultural Library consistent with its charge to serve as the primary 
agricultural information resource of the United States and enter into 
agreements and receive funds from various entities to conduct National 
Agricultural Library activities (7 U.S.C. 3125a).
    (77) Provide and distribute information and data about Federal, 
State, local, and other rural development assistance programs and 
services available to individuals and organizations. To the extent 
possible, the National Agricultural Library shall use telecommunications 
technology to disseminate such information to rural areas (7 U.S.C. 
3125b).
    (78) Assemble and collect food and nutrition educational materials, 
including the results of nutrition research, training methods, 
procedures, and other materials related to the purposes of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977, as 
amended; maintain such information; and provide for the dissemination of 
such information and materials on a regular basis to State educational 
agencies and other interested parties (7 U.S.C. 3126).
    (79) Conduct program evaluations to improve the administration and 
efficacy of the National Agricultural Library and related information 
systems in the food and agricultural sciences (7 U.S.C. 3317).
    (80) Administer the National Agricultural Library, including the 
farmland information center, pursuant to section 1544(b) of the Farmland 
Protection Policy Act (7 U.S.C. 4205(b)).
    (81) Support Department water programs through participation in 
State water quality coordination programs and dissemination of 
agrichemical information (7 U.S.C. 5503-5506).
    (82) Provide a repository of agriculture and ground water quality 
planning information (7 U.S.C. 5505).
    (83) Disseminate information on materials and methods of pest and 
disease control available to agricultural producers through the pest and 
disease control database (7 U.S.C. 5882).
    (84) Represent the Department on all library and information science 
matters before Congressional Committees and appropriate commissions, and 
provide representation to the coordinating committees of the Federal and 
State governments concerned with library and information science 
activities.
    (85) Represent the Department in international organizational 
activities and on international technical committees concerned with 
library and information science activities.
    (86) Prepare and disseminate computer files, indexes and abstracts, 
bibliographies, reviews and other analytical information tools.
    (87) Arrange for the consolidated purchasing and dissemination of 
printed and automated indexes, abstracts, journals, and other widely 
used information resources and services.
    (88) Provide assistance and support to professional organizations 
and others concerned with library and information science matters and 
issues.
    (89) Copy and deliver on demand selected articles and other 
materials from the National Agricultural Library's collections by 
photographic reproduction or other means within the permissions, 
constraints, and limitations of sections 106, 107, and 108 of the 
Copyright Act of October 19, 1976 (17 U.S.C. 106, 107 and 108).
    (90) Formulate, write, or prescribe bibliographic and technically 
related standards for the library and information systems of USDA.
    (91) Assure the acquisition, preservation, and accessibility of all 
information concerning food and agriculture by providing leadership to 
and coordination of the acquisition programs and related activities of 
the library and information systems, with the agencies of USDA, other 
Federal departments and agencies, State agricultural experiment 
stations, colleges and universities, and other research institutions and 
organizations.
    (92) Determine by survey or other appropriate means, the information 
needs of the Department's scientific, professional, technical, and 
administrative staffs, its constituencies, and the general public in the 
areas of food, agriculture, the environment, and other related areas.

[[Page 233]]

    (b) [Reserved]



Sec. 2.66  Administrator, Cooperative State Research, Education, and Extension Service.

    (a) Delegations. Pursuant to Sec. 2.21 (a)(1) and (a)(3), subject to 
the reservations in Sec. 2.21(b)(1), the following delegations of 
authority are made by the Under Secretary for Research, Education, and 
Extension to the Administrator, Cooperative State Research, Education, 
and Extension Service.
    (1) Administer research and technology development grants related to 
the economic feasibility of the manufacture and commercialization of 
natural rubber from hydrocarbon-containing plants (7 U.S.C. 178-178n).
    (2) Administer the appropriation for the endowment and maintenance 
of colleges for the benefit of agriculture and the mechanical arts (7 
U.S.C. 321-326a).
    (3) Administer teaching funds authorized by section 22 of the 
Bankhead Jones Act, as amended (7 U.S.C. 329).
    (4) Cooperate with the States for the purpose of encouraging and 
assisting them in carrying out research related to the problems of 
agriculture in its broadest aspects under the Hatch Act, as amended (7 
U.S.C. 361a-361i).
    (5) Support agricultural research at eligible institutions in the 
States through provision of Federal-grant funds to help financial 
physical research facilities (7 U.S.C. 390-390k).
    (6) Carry out a program (IR-4 Program) for the collection of residue 
and efficacy data in support of minor use pesticide registration or 
reregistration and to determine tolerances for minor use chemical 
residues in or on agricultural commodities (7 U.S.C. 450i(e)).
    (7) Administer a program of competitive grants to State agricultural 
experiment stations, colleges and universities, other research 
institutions and organizations, Federal agencies, private organizations 
or corporations, and individuals for research to further USDA programs 
(7 U.S.C. 450i(b)).
    (8) Administer a program of special grants to carry out research to 
facilitate or expand promising breakthroughs in areas of food and 
agricultural sciences and to facilitate or expand ongoing State-Federal 
food and agricultural research programs; and administer a program of 
facilities grants to renovate and refurbish research spaces (7 U.S.C. 
450i (c) and (d)).
    (9) Conduct a research and development program to formulate new uses 
for farm and forest products (7 U.S.C. 1632(b)).
    (10) Administer, in cooperation with the States, a cooperative rural 
development and small farm research and extension program under the 
Rural Development Act of 1972, as amended (7 U.S.C. 2661-2667).
    (11) Provide national leadership and support for cooperative 
research and extension programs and other cooperative activities in the 
food and agricultural sciences to meet major needs and challenges in 
food and agricultural system productivity; development of new food, 
fiber, and energy sources; agricultural energy use and production; 
natural resources; promotion of the health and welfare of people; human 
nutrition; and international food and agriculture pursuant to the 
National Agricultural Research, Extension, and Teaching Policy Act of 
1977, as amended (7 U.S.C. 3101 et seq.).
    (12) Conduct a program of grants to States to expand, renovate, or 
improve schools of veterinary medicine (7 U.S.C. 3151).
    (13) Administer higher education programs in the food and 
agricultural sciences and administer grants to colleges and universities 
(7 U.S.C. 3152).
    (14) Administer the National Food and Agricultural Sciences Teaching 
Awards program for recognition of educators in the food and agricultural 
sciences (7 U.S.C. 3152).
    (15) Administer grants to colleges, universities, and Federal 
laboratories for research on the production and marketing of alcohol and 
industrial hydrocarbons from agricultural commodities and forest 
products (7 U.S.C. 3154).
    (16) Administer a grant, in consultation with the Agricultural 
Research Service, for the establishment of a food science and nutrition 
research center for the Southeast Region of the United States (7 U.S.C. 
3174).
    (17) Conduct a program of grants to States to support continuing 
animal health and disease research programs

[[Page 234]]

under the National Agricultural Research, Extension, and Teaching Policy 
Act of 1977, as amended (7 U.S.C. 3191-3201).
    (18) Support continuing agricultural and forestry research and 
extension, resident instruction, and facilities improvement at 1890 
land-grant colleges, including Tuskegee University, and administer a 
grant program for five National Research and Training Centennial Centers 
(7 U.S.C. 3221, 3222, and 3222a-3222c).
    (19) Administer grants to 1890 land-grant colleges, including 
Tuskegee University, to help finance and upgrade agricultural and food 
science facilities which are used for research, extension, and resident 
instruction (7 U.S.C. 3222(b)-3223).
    (20) Cooperate and work with national and international 
institutions, Departments and Ministries of Agriculture in other 
nations, land-grant colleges and universities, and other persons 
throughout the world in the performance of agricultural research and 
extension activities (7 U.S.C. 3291).
    (21) Administer grants to States in support of the establishment and 
operation of International Trade Development Centers (7 U.S.C. 3292).
    (22) Conduct program evaluations to improve the administration and 
efficacy of the cooperative research grants and extension programs 
involving State agricultural experiment stations, cooperative extension 
services, and colleges and universities (7 U.S.C. 3317).
    (23) Enter into contracts, grants, or cooperative agreements to 
further research, extension or teaching activities in the food and 
agricultural sciences (7 U.S.C. 3318)
    (24) Enter into cost-reimbursable agreements relating to 
agricultural research, extension or teaching activities (7 U.S.C. 
3319a).
    (25) Provide technical assistance to farm owners and operators, 
marketing cooperatives, and others in the development and implementation 
of a research and pilot project program for the development of 
supplemental and alternative crops (7 U.S.C. 3319d).
    (26) Administer an aquacultural assistance program, involving 
centers, by making grants to eligible institutions for research and 
extension to facilitate or expand production and marketing of 
aquacultural food species and products; conducting a program of 
extension and demonstration centers; and making grants to States to 
formulate aquaculture development plans for the production and marketing 
of aquaculture species and products (7 U.S.C. 3322).
    (27) Administer grants to further develop and expand aquaculture 
research facilities for intensive water recirculating aquaculture 
systems (7 U.S.C. 3323).
    (28) Administer a cooperative rangeland research program (7 U.S.C. 
3331-3336).
    (29) Administer grants for basic research on cancer in animals and 
birds (7 U.S.C. 3902).
    (30) Administer programs and conduct projects in cooperation with 
other agencies for research and education on sustainable agriculture (7 
U.S.C. 5811-5813).
    (31) Administer a cooperative research and extension program to 
optimize crop and livestock production potential in integrated resource 
management and integrated crop management systems (7 U.S.C. 5821).
    (32) Establish an Agricultural Weather Office and administer a 
national agricultural weather information system, including competitive 
grants program for research in atmospheric sciences and climatology (7 
U.S.C. 5852-5853).
    (33) Administer a cooperative extension program on agricultural 
weather forecasts and climate information for agricultural producers and 
administer a grant program to States to administer programs for State 
agricultural weather information systems (7 U.S.C. 5854).
    (34) In cooperation with the Agricultural Research Service, 
administer competitive research grants regarding the production, 
preparation, processing, handling, and storage of agriculture products 
(7 U.S.C. 5871-5874).
    (35) Administer a grants and contracts program on integrated pest 
management including research to benefit floriculture and administer an 
extension program developed for integrated pest management (7 U.S.C. 
5881).
    (36) Administer a grants program to States on the control of 
infestations

[[Page 235]]

and eradication of exotic pests (7 U.S.C. 5883).
    (37) Administer a grant program for risk assessment research to 
address concerns about the environmental effects of biotechnology (7 
U.S.C. 5921).
    (38) Administer a special grants program to assist efforts by 
research institutions to improve the efficiency and efficacy of safety 
and inspection systems for livestock products (7 U.S.C. 5923).
    (39) Administer a competitive grants program in support of the 
development of a plant genome mapping program (7 U.S.C. 5924).
    (40) Support research related to the development of new commercial 
products derived from natural plant materials for industrial, medical, 
and agricultural applications (7 U.S.C. 5925).
    (41) Administer a competitive grants program to develop production 
methods and commercial uses for mesquite (7 U.S.C. 5925).
    (42) Administer a competitive grants program to investigate enhanced 
selection and processing techniques of prickly pears (7 U.S.C. 5925).
    (43) Support research to determine the presence of aflatoxin in the 
food and feed chains (7 U.S.C. 5925).
    (44) Administer research and extension grants for the development of 
agricultural production and marketing systems to service niche markets 
(7 U.S.C. 5925).
    (45) Administer a grants program to States on immunoassay, as it is 
used to detect agricultural pesticide residues on agricultural 
commodities and to diagnose plant and animal diseases (7 U.S.C. 5925).
    (46) Establish and administer a program for the development and 
utilization of an agricultural communications network (7 U.S.C. 5926).
    (47) Administer a competitive grants program, in consultation with 
the Agricultural Research Service, to establish national centers for 
agricultural product quality research (7 U.S.C. 5928).
    (48) Administer a special grants program to study constraints on 
agricultural trade (7 U.S.C. 5931).
    (49) Support research on the effects of global climate change in 
agriculture and forestry, including mitigation of the effects on crops 
of economic significance, and on the effects of the emissions of certain 
gases on global climate change (7 U.S.C. 6702).
    (50) Administer the Small Business Innovation Development Act of 
1982 for USDA (15 U.S.C. 638(e)-(k)).
    (51) Administer a competitive forestry, natural resources, and 
environmental grant program (16 U.S.C. 582a-8).
    (52) Establish and administer the Forestry Student Grant Program to 
provide competitive grants to assist the expansion of the professional 
education of forestry, natural resources, and environmental scientists 
(16 U.S.C. 1649).
    (53) Provide staff support to the Secretary of Agriculture in his or 
her role as permanent Chair for the Joint Subcommittee on Aquaculture 
established by the National Aquaculture Act of 1980 and coordinate 
aquacultural responsibilities within the Department (16 U.S.C. 2805).
    (54) Administer extension education programs in aquaculture and 
administer grants related to research and development in aquaculture (16 
U.S.C. 2806).
    (55) Coordinate research by cooperating State research institutions 
and administer education and information activities assigned under the 
Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et 
seq.), and title VI of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5195 et seq.).
    (56) Provide management support services to agencies reporting to 
the Under Secretary for Research, Education, and Economics in the 
administration of discretionary grants.
    (57) Represent the Department on the Federal Interagency Council on 
Education.
    (58) Conduct and coordinate Departmental research programs on water 
quality and nutrient management (7 U.S.C. 5504).
    (59) Establish and administer education programs relating to water 
quality (7 U.S.C. 5503).
    (60) Administer education programs for the users and dealers of 
agrichemicals (7 U.S.C. 5506).

[[Page 236]]

    (61) Administer a cooperative agricultural extension program in 
accordance with the Smith-Lever Act, as amended (7 U.S.C. 341-349).
    (62) Administer a cooperative agricultural extension program related 
to agriculture, uses of solar energy with respect to agriculture, and 
home economics in the District of Columbia (D.C. Code 31-1409).
    (63) Conduct educational and demonstration work related to the 
distribution and marketing of a agricultural products under the 
Agricultural Marketing Act of 1946, as amended (7 U.S.C. 1621-1627).
    (64) Administer a competitive grant program for non-profit 
institutions to establish and operate centers for rural technology or 
cooperative development (7 U.S.C. 1932(f)).
    (65) Administer a nutrition education program for Food Stamp 
recipients and for the distribution of commodities on reservations (7 
U.S.C. 2020(f)).
    (66) Administer a grants program for rural health and safety 
education (7 U.S.C. 2662).
    (67) Administer a rural economic and business development program to 
employ specialists to assist individuals in business activities (7 
U.S.C. 2662).
    (68) Administer a national program to provide rural citizens with 
training to increase their leadership abilities (7 U.S.C. 2662).
    (69) Administer a competitive grant program for financially stressed 
farmers, dislocated farmers, and rural families (7 U.S.C. 2662(f)).
    (70) Administer a grant program to improve the rural health 
infrastructure (7 U.S.C. 2662 note).
    (71) Administer a competitive grant program to establish 
demonstration areas for rural economic development (7 U.S.C. 2662a).
    (72) Administer a cooperative extension program under the Farmer-to-
Consumer Direct Marketing Act of 1976 (7 U.S.C. 3004).
    (73) Identify and compile information on methods of composting 
agricultural wastes and its potential uses and develop educational 
programs on composting (7 U.S.C. 3130).
    (74) Administer a national food and human nutrition extension 
program under the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977, as amended (7 U.S.C. 3171-3175).
    (75) Make grants, under such terms and conditions as the 
Administrator determines, to eligible institutions for the purpose of 
assisting such institutions in the purchase of equipment and land, and 
the planning, construction, alteration, or renovation of buildings, to 
provide adequate facilities to conduct extension work, and issue rules 
and regulations as necessary to carry out this authority (7 U.S.C. 
3224).
    (76) Design educational programs, implement, and distribute 
materials in cooperation with the cooperative extension services of the 
States emphasizing the importance of productive farmland pursuant to 
section 1544(a) of the Farmland Protection Policy Act (7 U.S.C. 
4205(a)).
    (77) Establish and administer education programs relating to water 
quality (7 U.S.C. 5503).
    (78) Design, implement, and develop handbooks, technical guides, and 
other educational materials emphasizing sustainable agriculture 
production systems and practices (7 U.S.C. 5831).
    (79) Administer a competitive grant program to organizations to 
carry out a training program on sustainable agriculture (7 U.S.C. 5832).
    (80) Establish a national pesticide resistance monitoring program (7 
U.S.C. 5882).
    (81) Conduct educational programs on the biology and behavior of 
chinch bugs (7 U.S.C. 5884).
    (82) Administer education programs on Indian reservations and tribal 
jurisdictions (7 U.S.C. 5930).
    (83) Administer competitive grants to States to establish a pilot 
project to coordinate food and nutrition education programs (7 U.S.C. 
2027(a) and 5932).
    (84) Administer a demonstration grants program for support of an 
assistive technology program for farmers with disabilities (7 U.S.C. 
5933).
    (85) Conduct educational and demonstrational work in cooperative 
farm forestry programs (16 U.S.C. 568).
    (86) Provide for an expanded and comprehensive extension program for 
forest and rangeland renewable resources (16 U.S.C. 1671-1676).

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    (87) Conduct forestry and natural resource education programs, 
including guidelines for technology transfer (16 U.S.C. 1674).
    (88) Provide technical, financial, and educational assistance to 
State foresters and State extension directors on rural forestry 
assistance (16 U.S.C. 2102).
    (89) Provide educational assistance to State foresters under the 
Forest Stewardship Program (16 U.S.C. 2103a).
    (90) Implement and conduct an educational program to assist the 
development of urban and community forestry programs (16 U.S.C. 2105).
    (91) Provide educational assistance to farmers regarding the 
Agricultural Water Quality Protection Program (16 U.S.C. 3838b).
    (92) Authorize the use of the 4-H Club name and emblem (18 U.S.C. 
707).
    (93) Conduct demonstrational and promotional activities related to 
farm dwellings and other buildings for the purposes of reducing costs 
and adapting and developing fixtures and appurtenances for more 
efficient and economical farm use (42 U.S.C. 1476(b)).
    (94) Provide leadership and direct assistance in planning, 
conducting, and evaluating extension programs under a memorandum of 
agreement with the Bureau of Indian Affairs dated May 1956.
    (95) Exercise the responsibilities of the Secretary under 
regulations dealing with Equal Employment Opportunity (part 18 of this 
title).
    (96) Carry out demonstration and educational activities authorized 
in section 202(c) of the Colorado River Basin Salinity Control Act (43 
U.S.C. 1592(c)).
    (97) Provide educational and technical assistance in implementing 
and administering the conservation reserve program authorized in 
sections 1231-1244 of the Food Security Act of 1985 (Pub. L. No. 99-198, 
99 Stat. 1509, 16 U.S.C. 3831-3844).
    (b) [Reserved]



Sec. 2.67  Administrator, Economic Research Service.

    (a) Delegations. Pursuant to Sec. 2.21 (a)(3), (a)(8) and (a)(9), 
subject to reservations in Sec. 2.21(b)(2), the following delegations of 
authority are made by the Under Secretary for Research, Education, and 
Economics to the Administrator, Economic Research Service:
    (1) Conduct economic research on matters of importance to 
cooperatives as authorized by the Agricultural Marketing Act of 1946 (7 
U.S.C. 1621-1627).
    (2) Conduct economic and social science research and analyses 
relating to:
    (i) food and agriculture situation and outlook;
    (ii) the production, marketing, and distribution of food and fiber 
products (excluding forest and forest products), including studies of 
the performance of the food and agricultural sector of the economy in 
meeting needs and wants of consumers;
    (iii) basic and long-range, worldwide, economic analyses and 
research on supply, demand, and trade in food and fiber products and the 
effects on the U.S. food and agriculture system, including general 
economic analyses of the international financial and monetary aspects of 
agricultural affairs;
    (iv) natural resources, including studies of the use and management 
of land and water resources, the quality of these resources, resource 
institutions, and watershed and river basin development problems; and
    (v) rural people and communities, as authorized by title II of the 
Agricultural Marketing Act of 1946, as amended (7 U.S.C. 1621-1627), and 
the Act of June 29, 1935, as amended (7 U.S.C. 427).
    (3) Perform economic and other social science research under section 
104(b)(1) and (3) of the Agricultural Trade Development and Assistance 
Act of 1954, as amended, with funds administered by the Foreign 
Agricultural Service (7 U.S.C. 1704(b)(1), (3)).
    (4) Investigate and make findings as to the effect upon the 
production of food and upon the agricultural economy of any proposed 
action pending before the Administrator of the Environmental Protection 
Agency for presentation in the public interest, before said 
Administrator, other agencies, or before the courts.
    (5) Review economic data and analyses used in speeches by Department 
personnel and in materials prepared for release through the press, radio 
and television.

[[Page 238]]

    (6) Cooperate and work with national and international institutions 
and other persons throughout the world in the performance of 
agricultural research and extension activities to promote and support 
the development of a viable and sustainable global agricultural system. 
Such work may be carried out by:
    (i) Exchanging research materials and results with the institutions 
or persons;
    (ii) Engaging in joint or coordinated research;
    (iii) Entering into cooperative arrangements with Departments and 
Ministries of Agriculture in other nations to conduct research, 
extension; and education activities (limited to arrangements either 
involving no exchange of funds or involving disbursements by the agency 
to the institutions of other nations), and then reporting these 
arrangements to the Under Secretary for Research, Education, and 
Economics;
    (iv) Stationing representatives at such institutions or 
organizations in foreign countries; or
    (v) Entering into agreements with land-grant colleges and 
universities, other organizations, institutions, or individuals with 
comparable goals, and with the concurrence of the Office of 
International Cooperation and Development, USDA, international 
organizations (limited to agreements either involving no exchange of 
funds or involving disbursements by the agency to the cooperator), and 
then reporting these agreements to the Under Secretary for Research, 
Education, and Economics (7 U.S.C. 3291(a)).
    (7) Prepare for transmittal by the Secretary to the President and 
both Houses of Congress, an analytical report under section 5 of the 
Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3504) 
concerning the effect of holdings, acquisitions, and transfers of U.S. 
agricultural land by foreign persons.
    (8) Administer responsibilities and functions assigned under the 
Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et 
seq.), and title VI of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5195 et seq.), concerning estimates 
of supplies of agricultural commodities and evaluation of requirements 
therefor; food and agricultural aspects of economic stabilization and 
economic research; and coordination of energy programs.
    (9) Enter into contracts, grants, or cooperative agreements to 
further research programs in the food and agricultural sciences (7 
U.S.C. 3318).
    (10) Enter into cost-reimbursable agreements relating to 
agricultural research (7 U.S.C. 3319a).
    (11) Provide Department leadership in:
    (i) Analyzing and evaluating existing and proposed energy policies 
and strategies, including those regarding the allocation of scarce 
resources;
    (ii) Developing energy policies and strategies, including those 
regarding the allocation of scarce resources;
    (iii) Reviewing and evaluating Departmental energy and energy-
related programs and program progress;
    (iv) Developing agricultural and rural components of national energy 
policy plans; and
    (v) Preparing reports on energy and energy-related policies and 
programs required under Acts of Congress and Executive orders, including 
those involving testimony and reports on legislative proposals.
    (11) Provide Departmental oversight and coordination with respect to 
resources available for energy and energy-related activities, including 
funds transferred to USDA from the departments and agencies of the 
Federal Government pursuant to interagency agreements.
    (12) Represent the Under Secretary for Research, Education, and 
Economics at conferences, meetings, and other contacts where energy 
matters are discussed, including liaison with the Department of Energy 
and other governmental departments and agencies.
    (13) Provide the Under Secretary for Research, Education, and 
Economics with such assistance as he may request to perform the duties 
delegated to him concerning energy.
    (b) Reservation. The following authority is reserved to the Under 
Secretary

[[Page 239]]

for Research, Education, and Economics: Review all proposed decisions 
having substantial economic policy implications.



Sec. 2.68  Administrator, National Agricultural Statistics Service.

    (a) Delegations. Pursuant to Sec. 2.21 (a)(3) and (a)(8), subject to 
reservations in Sec. 2.21(b)(2), the following delegations of authority 
are made by the Under Secretary for Research, Education, and Economics 
to the Administrator, National Agricultural Statistics Service:
    (1) Prepare crop and livestock estimates and administer reporting 
programs, including estimates of production, supply, price, and other 
aspects of the U.S. agricultural economy, collection of statistics, 
conduct of enumerative and objective measurement surveys, construction 
and maintenance of sampling frames, and related activities. Prepare 
reports of the Agricultural Statistics Board of the Department of 
Agriculture covering official state and national estimates (7 U.S.C. 
411a, 475, 951, and 2204).
    (2) Take such security precautions as are necessary to prevent 
disclosure of crop or livestock report information prior to the 
scheduled issuance time approved in advance by the Secretary of 
Agriculture and take such actions as are necessary to avoid disclosure 
of confidential data or information supplied by any person, firm, 
partnership, corporation, or association (18 U.S.C. 1902, 1905, and 
2072).
    (3) Improve statistics in the Department; maintain liaison with OMB 
and other Federal agencies for coordination of statistical methods and 
techniques.
    (4) Administer responsibilities and functions assigned under the 
Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et 
seq.), and title VI of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5195 et seq.), concerning 
coordination of damage assessment; and food and agricultural aspects of 
agricultural statistics.
    (5) Enter into contracts, grants, or cooperative agreements to 
further research and statistical reporting programs in the food and 
agricultural sciences (7 U.S.C. 3318).
    (6) Enter cost-reimbursable agreements relating to agricultural 
research and statistical reporting (7 U.S.C. 3319a).
    (7) Cooperate and work with national and international institutions 
and other persons throughout the world in the performance of 
agricultural research and extension activities to promote and support 
the development of a viable and sustainable global agricultural system. 
Such work may be carried out by:
    (i) Exchanging research materials and results with the institutions 
or persons;
    (ii) Engaging in joint or coordinated research;
    (iii) Entering into cooperative arrangements with Departments and 
Ministries of Agriculture in other nations to conduct research, 
extension, and education activities (limited to arrangements either 
involving no exchange of funds or involving disbursements by the agency 
to the institutions of other nations), and then reporting these 
arrangements to the Under Secretary for Research, Education, and 
Economics;
    (iv) Stationing representatives at such institutions or 
organizations in foreign countries; or
    (v) entering into agreements with land-grant colleges and 
universities, other organizations, institutions, or individuals with 
comparable goals, and, with the concurrence of the Foreign Agricultural 
Service, international organizations (limited to agreements either 
involving no exchange of funds or involving disbursements by the agency 
to the cooperator), and then reporting these agreements to the Under 
Secretary for Research, Education, and Economics (7 U.S.C. 3291(a)).
    (b) Reservation. The following authority is reserved to the Under 
Secretary for Research, Education, and Economics: Review all proposed 
decisions having substantial economic policy implications.



       Subpart L--Delegations of Authority by the Chief Economist



Sec. 2.70  Deputy Chief Economist.

    Pursuant to Sec. 2.29, the following delegation of authority is made 
by the

[[Page 240]]

Chief Economist to the Deputy Chief Economist, to be exercised only 
during the absence or unavailability of the Chief Economist: Perform all 
the duties and exercise all the powers which are now or which may 
hereafter be delegated to the Chief Economist.



Sec. 2.71  Director, Office of Risk Assessment and Cost-Benefit Analysis.

    (a) Delegations. Pursuant to Sec. 2.29(a)(2), the following 
delegations of authority are by the Chief Economist to the Director, 
Office of Risk Assessment and Cost-Benefit Analysis:
    (1) Responsible for assessing the risks to human health, human 
safety, or the environment, and for preparing cost-benefit analyses, 
with respect to proposed major regulations, and for publishing such 
assessments and analyses in the Federal Register as required by section 
304 of the Department of Agriculture Reorganization Act of 1994 (7 
U.S.C. 2204e)
    (2) Provide direction to Department agencies in the appropriate 
methods of risk assessment and cost-benefit analyses and coordinate and 
review all risk assessments and cost-benefit analyses prepared by any 
agency of the Department.
    (b) Reservation. The following authority is reserved to the Chief 
Economist: Review all proposed decisions having substantial economic 
policy implications.



Sec. 2.72  Chairman, World Agricultural Outlook Board.

    (a) Delegations. Pursuant to Sec. 2.29 (a)(3) through (a)(7), the 
following delegations of authority are made by the Chief Economist to 
the Chairman, World Agricultural Outlook Board:
    (1) Related to food and agriculture outlook and situation. (i) 
Coordinate and review all crop and commodity data used to develop 
outlook and situation material within the Department.
    (ii) Oversee and clear for consistency analytical assumptions and 
results of all estimates and analyses which significantly relate to 
international and domestic commodity supply and demand, including such 
estimates and analyses prepared for public distribution by the Foreign 
Agricultural Service, the Economic Research Service, or by any other 
agency or office of the Department.
    (2) Related to weather and climate. (i) Advise the Secretary on 
climate and weather activities, and coordinate the development of policy 
options on weather and climate.
    (ii) Coordinate all weather and climate information and monitoring 
activities within the Department and provide a focal point in the 
Department for weather and climate information and impact assessment.
    (iii) Arrange for appropriate representation to attend all meetings, 
hearings, and task forces held outside the Department which require such 
representation.
    (iv) Designate the Executive Secretary of the USDA Weather and 
Climate Program Coordinating Committee.
    (3) Related to interagency commodity estimates committees. (i) 
Establish Interagency Commodity Estimates Committees for Commodity 
Credit Corporation price-supported commodities, for major products 
thereof, and for commodities where a need for such a committee has been 
identified, in order to bring together estimates and supporting analyses 
from participating agencies, and to develop official estimates of 
supply, utilization, and prices for commodities, including the effects 
of new program proposals on acreage, yield, production, imports, 
domestic utilization, price, income, support programs, carryover, 
exports, and availabilities for export.
    (ii) Designate the Chairman, who shall also act as Secretary, for 
all Interagency Commodity Estimates Committees.
    (iii) Assure that all committee members have the basic assumptions, 
background data and other relevant data regarding the overall economy 
and market prospects for specific commodities.
    (iv) Review for consistency of analytical assumptions and results 
all proposed decisions made by Commodity Estimates Committees prior to 
any release outside the Department.
    (4) Related to remote sensing. (i) Provide technical assistance, 
coordination, and guidance to Department agencies in planning, 
developing, and carrying out satellite remote sensing activities

[[Page 241]]

to assure full consideration and evaluation of advanced technology.
    (ii) Coordinate administrative, management, and budget information 
relating to the Department's remote sensing activities including:
    (A) Inter- and intra-agency meetings, correspondence, and records;
    (B) Budget and management tracking systems; and
    (C) Inter-agency contacts and technology transfer.
    (iii) Designate the Executive Secretary for the Remote Sensing 
Coordination Committee.
    (5) Related to long-range commodity and agricultural-sector 
projections. Establish committees of the agencies of the Department to 
coordinate the development of a set of analytical assumptions and long-
range agricultural-sector projections (2 years and beyond) based on 
commodity projections consistent with these assumptions and coordinated 
through the Interagency Commodity Estimates Committees.
    (b) Reservation. The following authority is reserved to the Chief 
Economist: Review all proposed decisions having substantial economic 
policy implications.



   Subpart M--Delegations of Authority by the Chief Financial Officer



Sec. 2.75  Deputy Chief Financial Officer.

    Pursuant to Sec. 2.28, the following delegation of authority is made 
by the Chief Financial Officer to the Deputy Chief Financial Officer, to 
be exercised only during the absence or unavailability of the Chief 
Financial Officer: Perform all the duties and exercise all the powers 
which are now or which may hereafter be delegated to the Chief Financial 
Officer.



   Subpart N--Delegations of Authority by the Assistant Secretary for 
                    Marketing and Regulatory Programs



Sec. 2.77  Deputy Assistant Secretary for Marketing and Regulatory Programs.

    Pursuant to Sec. 2.22(a), subject to reservations in Sec. 2.22(b), 
and subject to policy guidance and direction by the Assistant Secretary, 
the following delegation of authority is made by the Assistant Secretary 
for Marketing and Regulatory Programs to the Deputy Assistant Secretary 
for Marketing and Regulatory Programs, to be exercised only during the 
absence or unavailability of the Assistant Secretary: Perform all the 
duties and exercise all the powers which are now or which may hereafter 
be delegated to the Assistant Secretary for Marketing and Regulatory 
Programs.



Sec. 2.79  Administrator, Agricultural Marketing Service.

    (a) Delegations. Pursuant to Sec. 2.22 (a)(1), (a)(5) and (a)(8), 
subject to reservations in Sec. 2.22(b)(1), the following delegations of 
authority are made by the Assistant Secretary for Marketing and 
Regulatory Programs to the Administrator, Agricultural Marketing 
Service:
    (1) Exercise the functions of the Secretary of Agriculture contained 
in the Agricultural Marketing Act of 1946, as amended (7 U.S.C. 1621-
1627), including payments to State departments of agriculture in 
connection with cooperative marketing service projects under section 
204(b) (7 U.S.C. 1623(b)), but excepting matters otherwise assigned.
    (2) Conduct marketing efficiency research and development activities 
directly applicable to the conduct of the Wholesale Market Development 
Program, specifically:
    (i) Studies of facilities and methods used in physical distribution 
of food and other farm products;
    (ii) Studies designed to improve handling of all agricultural 
products as they are moved from farms to consumers; and
    (iii) application of presently available scientific knowledge to the 
solution of practical problems encountered in the marketing of 
agricultural products (7 U.S.C. 1621-1627).
    (3) Exercise the functions of the Secretary of Agriculture relating 
to the transportation activities contained in section 203(j) of the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1622(j)) as amended, but 
excepting matters otherwise assigned.

[[Page 242]]

    (4) Administer transportation activities under section 201 of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1291).
    (5) Apply results of economic research and operations analysis to 
evaluate transportation issues and to recommend revisions of current 
procedures.
    (6) Serve as the focal point for all Department transportation 
matters including development of policies and strategies.
    (7) Cooperate with other Departmental agencies in the development 
and recommendation of policies and programs for inland transportation of 
USDA and CCC-owned commodities in connection with USDA programs.
    (8) Exercise the functions of the Secretary of Agriculture contained 
in the following legislation:
    (i) U.S. Cotton Standards Act (7 U.S.C. 51-65);
    (ii) Cotton futures provisions of the Internal Revenue Code of 1954 
(26 U.S.C. 4854, 4862-4865, 4876, and 7263);
    (iii) Cotton Statistics and Estimates Act, as amended (7 U.S.C. 471-
476), except as otherwise assigned;
    (iv) [Reserved]
    (v) Naval Stores Act (7 U.S.C. 91-99);
    (vi) Tobacco Inspection Act (7 U.S.C. 511-511q);
    (vii) Wool Standards Act (7 U.S.C. 415-415d);
    (viii) Agricultural Marketing Agreement Act of 1937, as amended (7 
U.S.C. 601, 602, 608a-608e, 610, 612, 614, 624, 671-674);
    (ix) Cotton Research and Promotion Act (7 U.S.C. 2101-2118), except 
as specified in Sec. 2.43(a)(24);
    (x) Export Apple and Pear Act (7 U.S.C. 581-590);
    (xi) Export Grape and Plum Act (7 U.S.C. 591-599);
    (xii) Titles I, II, IV, and V of the Federal Seed Act, as amended (7 
U.S.C. 1551-1575, 1591-1611);
    (xiii) Perishable Agricultural Commodities Act (7 U.S.C. 499a-499s);
    (xiv) Produce Agency Act (7 U.S.C. 491-497);
    (xv) Tobacco Seed and Plant Exportation Act (7 U.S.C. 516-517);
    (xvi) [Reserved]
    (xvii) Tobacco Statistics Act (7 U.S.C. 501-508);
    (xviii)--(xxi) [Reserved]
    (xxii) Section 401(a) of the Organic Act of 1944 (7 U.S.C. 415e);
    (xxiii) Agricultural Fair Practices Act (7 U.S.C. 2301-2306);
    (xxiv) Wheat Research and Promotion Act (7 U.S.C. 1292 note), except 
as specified in Sec. 2.43(a)(24);
    (xxv) Plant Variety Protection Act (7 U.S.C. 2321-2331, 2351-2357, 
2371- 2372, 2401-2404, 2421-2427, 2441-2443, 2461-2463, 2481-2486, 2501-
2504, 2531-2532, 2541-2545, 2561-2569, 2581-2583), except as delegated 
to the Judicial Officer;
    (xxvi) Subtitle B of title I and section 301(4) of the Dairy and 
Tobacco Adjustment Act of 1983 (7 U.S.C. 4501-4513, 4514(4)), except as 
specified in Sec. 2.43(a)(24);
    (xxvii) Potato Research and Promotion Act (7 U.S.C. 2611-2627), 
except as specified in Sec. 2.43(a)(24);
    (xxviii)-(xxx) [Reserved]
    (xxxi) Egg Research and Consumer Information Act (7 U.S.C. 2701-
2718), except as delegated in Sec. 2.43(a)(24);
    (xxxii) Beef Research and Information Act, as amended, (7 U.S.C. 
2901-2918), except as delegated in Secs. 2.42(a)(29) and 2.43(a)(24);
    (xxxiii) Wheat and Wheat Foods Research and Nutrition Education Act 
(7 U.S.C. 3401-3417), except as delegated in Sec. 2.43(a)(24);
    (xxxiv) Egg Products Inspection Act relating to the shell egg 
surveillance program, voluntary laboratory analyses of egg products, and 
the voluntary egg grading program (21 U.S.C. 1031-1056);
    (xxxv) Section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), as 
supplemented by the Act of June 28, 1937 (15 U.S.C. 713c), and related 
legislation, except functions which are otherwise assigned relating to 
the domestic distribution and donation of agricultural commodities and 
products thereof following the procurement thereof;
    (xxxvi) Procurement of agricultural commodities and other foods 
under section 6 of the National School Lunch Act of 1946, as amended (42 
U.S.C. 1755);
    (xxxvii) In carrying out the procurement functions in paragraphs 
(a)(8)(xxxv) and (xxxvi) of this section, the Administrator, 
Agricultural Marketing Service shall, to the extent

[[Page 243]]

practicable, use the commodity procurement, handling, payment and 
related services of the Farm Service Agency;
    (xxxviii) Act of May 23, 1908, regarding inspection of dairy 
products for export (21 U.S.C. 693);
    (xxxix) The Pork Promotion, Research, and Consumer Information Act 
of 1985 (7 U.S.C. 4801-4819), except as specified in Sec. 2.43(a)(24);
    (xl) The Watermelon Research and Consumer Information Act (7 U.S.C. 
4901-4616), except as specified in Sec. 2.43(a)(24);
    (xli) The Honey Research, Promotion, and Consumer Information Act (7 
U.S.C. 4601-4612), except as specified in Sec. 2.43(a)(24);
    (xlii) Subtitles B and C of the Dairy Production Stabilization Act 
of 1983, as amended (7 U.S.C. 4501-4513, 4531-4538);
    (xliii) The Floral Research and Consumer Information Act (7 U.S.C. 
4301-4319), except as specified in Sec. 2.43(a)(24);
    (xliv) Section 213 of the Tobacco Adjustment Act of 1983, as amended 
(7 U.S.C. 511r);
    (xlv) National Laboratory Accreditation Program (7 U.S.C. 138-138i) 
with respect to laboratories accredited for pesticide residue analysis 
in fruits and vegetables and other agricultural commodities, except 
those laboratories analyzing only meat and poultry products;
    (xlvi) Pecan Promotion and Research Act of 1990 (7 U.S.C. 6001-
6013), except as specified in Sec. 2.43(a)(24);
    (xlvii) Mushroom Promotion, Research, and Consumer Information Act 
of 1990 (7 U.S.C. 6101-6112), except as specified in Sec. 2.43(a)(24);
    (xlviii) Lime Research, Promotion, and Consumer Information Act of 
1990 (7 U.S.C. 6201-6212), except as specified in Sec. 2.43(a)(24);
    (xlix) Soybean Promotion, Research, and Consumer Information Act (7 
U.S.C. 6301-6311), except as specified in Sec. 2.43(a)(24);
    (l) Fluid Milk Promotion Act of 1990 (7 U.S.C. 6401-6417), except as 
specified in Sec. 2.43(a)(24);
    (li) Producer Research and Promotion Board Accountability (104 Stat. 
3927);
    (lii) Consistency with International Obligations of the United 
States (7 U.S.C. 2278);
    (liii) Organic Foods Production Act of 1990 (7 U.S.C. 6501-6522) 
provided that the Administrator, Agricultural Marketing Service, will 
enter into agreements, as necessary, with the Administrator, Food Safety 
and Inspection Service, to provide inspection services;
    (liv) Pesticide Recordkeeping (7 U.S.C. 136i-l) with the provision 
that the Administrator, Agricultural Marketing Service, will enter into 
agreements, as necessary, with other Federal agencies;
    (lv) the International Carriage of Perishable Foodstuffs Act (7 
U.S.C. 4401-4406);
    (lvi) the Sheep Promotion, Research, and Information Act (7 U.S.C. 
7101-7111), except as specified in Sec. 2.43(a)(24); and
    (lvii) the Fresh Cut Flowers and Fresh Cut Greens Promotion and 
Consumer Information Act (7 U.S.C. 6801-6814), except as specified in 
Sec. 2.43(a)(24).
    (9) Furnish, on request, copies of programs, pamphlets, reports, or 
other publications for missions or programs as may otherwise be 
delegated or assigned to the Administrator, Agricultural Marketing 
Service and charge user fees therefore, as authorized by section 1121 of 
the Agriculture and Food Act of 1981, as amended by section 1769 of the 
Food Security Act of 1985, 7 U.S.C. 2242a.
    (10) Collect, summarize, and publish data on the production, 
distribution, and stocks of sugar.
    (11) With respect to land and facilities under his or her authority, 
exercise the functions delegated to the Secretary by Executive Order 
12580, 3 CFR, 1987 Comp., p. 193, under the following provisions of the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (``the Act''), as amended:
    (i) Sections 104 (a), (b), and (c)(4) of the Act (42 U.S.C. 9604 
(a), (b), and (c)(4)), with respect to removal and remedial actions in 
the event of release or threatened release of a hazardous substance, 
pollutant, or contaminant into the environment;

[[Page 244]]

    (ii) Sections 104(e)-(h) of the Act (42 U.S.C. 9604(e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards and wage and labor 
standards applicable to covered work; and emergency procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petitions for preliminary assessment of a 
release or threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) 
pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (ix) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon which to base the selection 
of a response action and identifying and notifying potentially 
responsible parties;
    (x) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xi) Sections 117(a) and (c) of the Act (42 U.S.C. 9617 (a) and 
(c)), with respect to public participation in the preparation of any 
plan for remedial action and explanation of variances from the final 
remedial action plan for any remedial action or enforcement action, 
including any settlement or consent decree entered into;
    (xii) Section 119 of the Act (42 U.S.C. 9119), with respect to 
indemnifying response action contractors;
    (xiii) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xiv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), related to mixed funding agreements.
    (12) With respect to facilities and activities under his or her 
authority, to exercise the authority of the Secretary of Agriculture 
pursuant to section 1-102 related to compliance with applicable 
pollution control standards and section 1-601 of Executive Order 12088, 
3 CFR, 1978 Comp., p. 243, to enter into an inter-agency agreement with 
the United States Environmental Protection Agency, or an administrative 
consent order or a consent judgment in an appropriate State, interstate, 
or local agency, containing a plan and schedule to achieve and maintain 
compliance with applicable pollution control standards established 
pursuant to the following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, as further amended by the Hazardous and 
Solid Waste Amendments, and the Federal Facility Compliance Act (42 
U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).
    (b) Reservations. The following authorities are reserved to the 
Assistant Secretary for Marketing and Regulatory Programs:

[[Page 245]]

    (1) Taking final action on regulations under section 8c(15)(A) of 
the Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 608c(15)(A)); 
section 12(a) of the Cotton Research and Promotion Act (7 U.S.C. 
2111(a)); section 311(a) of the Potato Research and Promotion Act (7 
U.S.C. 2620(a)); section 118(a) of the Dairy Production Stabilization 
Act of 1983, as amended, (7 U.S.C. 4509(a)); section 1625(a) of the Pork 
Promotion, Research, and Consumer Information Act of 1985 (7 U.S.C. 
4814(a)); section 1650(a) of the Watermelon Research and Promotion Act 
(7 U.S.C. 4909(a)); section 10(a) of the Honey Research, Promotion, and 
Consumer Information Act (7 U.S.C. 4609(a)); section 14(a) of the Egg 
Research and Consumer Information Act (7 U.S.C. 2713(a)); section 
1714(a) of the Floral Research and Consumer Information Act (7 U.S.C. 
4313(a)); section 1710(a) of the Wheat and Wheat Foods Research and 
Nutrition Education Act (7 U.S.C. 3409(a)); section 1913(a) of the Pecan 
Promotion and Research Act of 1990 (7 U.S.C. 6008(a)); section 1927(a) 
of the Mushroom Promotion, Research, and Consumer Information Act of 
1990 (7 U.S.C. 6106(a)); section 1957(a) of the Lime Research, 
Promotion, and Consumer Information Act of 1990 (7 U.S.C. 6206(a)); 
section 1971(a) of the Soybean Promotion, Research, and Consumer 
Information Act (7 U.S.C. 6306(a)); section 1999K(a) of the Fluid Milk 
Promotion Act of 1990 (7 U.S.C. 6410(a)); and section 7 of the Sheep 
Promotion, Research, and Information Act (7 U.S.C. 7106).
    (2) Issuing, amending, terminating, or suspending any marketing 
agreement or order or any provision thereof under the Agricultural 
Marketing Agreement Act of 1937; the Cotton Research and Promotion Act; 
the Potato Research and Promotion Act; subtitles B and C of the Dairy 
Production Stabilization Act of 1983, as amended; the Pork Promotion, 
Research, and Consumer Information Act of 1985; the Beef Research and 
Information Act, as amended; the Watermelon Research and Promotion Act; 
the Honey Research, Promotion, and Consumer Information Act; the Floral 
Research and Consumer Information Act; the Egg Research and Consumer 
Information Act; the Wheat and Wheat Foods Research and Nutrition 
Education Act; the Pecan Promotion and Research Act of 1990; the 
Mushroom Promotion, Research, and Consumer Information Act of 1990; the 
Lime Research, Promotion, and Consumer Information Act of 1990; the 
Soybean Promotion, Research, and Consumer Information Act; the Fluid 
Milk Promotion Act of 1990; the Organic Foods Production Act of 1990; 
and the Sheep Promotion, Research, and Information Act (7 U.S.C. 7101-
7111).

[60 FR 56393, Nov. 8, 1995, as amended at 61 FR 25776, May 23, 1996]



Sec. 2.80  Administrator, Animal and Plant Health Inspection Service.

    (a) Delegations. Pursuant to Sec. 2.22 (a)(2), (a)(6) through 
(a)(9), subject to reservations in Sec. 2.22(b)(2), the following 
delegations of authority are made by the Assistant Secretary for 
Marketing and Regulatory Programs to the Administrator, Animal and Plant 
Health Inspection Service: Exercise functions of the Secretary of 
Agriculture under the following authorities:
    (1) Administer the Foreign Service personnel system for employees of 
the Animal and Plant Health Inspection Service in accordance with 22 
U.S.C. 3922, except that this delegation does not include the authority 
to approve joint regulations issued by the Department of State relating 
to administration of the Foreign Service, nor an authority to represent 
the Department of Agriculture in interagency consultations and 
negotiations with the other foreign affairs agencies with respect to 
joint regulations.
    (2) Section 102, Organic Act of 1944, as amended, and the Act of 
April 6, 1937, as amended (7 U.S.C. 147a, 148, 148a-148e), relating to 
control and eradication of plant pests and diseases, including 
administering survey and regulatory activities for the gypsy moth 
program and, with the Chief of the Forest Service, jointly administering 
gypsy moth eradication activities by assuming primary responsibility for 
eradication of gypsy moth infestations of 640 acres or less on State and 
private lands that are not contiguous to infested Federal lands.

[[Page 246]]

    (3) The Mexican Border Act, as amended (7 U.S.C. 149).
    (4) The Golden Nematode Act (7 U.S.C. 150-150g).
    (5) The Federal Plant Pest Act, as amended (7 U.S.C. 150aa-150jj).
    (6) The Plant Quarantine Act, as amended (7 U.S.C. 151-164a, 167).
    (7) The Terminal Inspection Act, as amended (7 U.S.C. 166).
    (8) The Honeybee Act, as amended (7 U.S.C. 281-286).
    (9) The Halogeton Glomeratus Control Act (7 U.S.C. 1651-1656).
    (10) Tariff Act of June 17, 1930, as amended, section 306 (19 U.S.C. 
1306).
    (11) Act of August 30, 1890, as amended (21 U.S.C. 102-105).
    (12) Act of May 29, 1884, as amended, Act of February 2, 1903, as 
amended, and Act of March 3, 1905, as amended, and supplemental 
legislation (21 U.S.C. 111-114a, 114a-1, 115-130).
    (13) Act of February 28, 1947, as amended (21 U.S.C. 114b-114c, 
114d-1).
    (14) Act of June 16, 1948 (21 U.S.C. 114e-114f).
    (15) Act of September 6, 1961 (21 U.S.C. 114g-114h).
    (16) Act of July 2, 1962 (21 U.S.C. 134-134h).
    (17) Act of May 6, 1970 (21 U.S.C. 135-135b).
    (18) Sections 12-14 of the Federal Meat Inspection Act, as amended, 
and so much of section 18 of such Act as pertains to the issuance of 
certificates of condition of live animals intended and offered for 
export (21 U.S.C. 612-614, 618).
    (19) Improvement of poultry, poultry products, and hatcheries (7 
U.S.C. 429).
    (20) The responsibilities of the United States under the 
International Plant Protection Convention.
    (21) (Laboratory) Animal Welfare Act, as amended (7 U.S.C. 2131-
2159).
    (22) Horse Protection Act (15 U.S.C. 1821-1831).
    (23) 28 Hour Law, as amended (49 U.S.C. 80502).
    (24) Export Animal Accommodation Act, as amended (46 U.S.C. 3901-
3902).
    (25) Purebred animal duty-free-entry provision of Tariff Act of June 
17, 1930, as amended (19 U.S.C. 1202, part 1, Item 100.01).
    (26) Virus-Serum-Toxin Act (21 U.S.C. 151-158).
    (27) Conduct diagnostic and related activities necessary to prevent, 
detect, control or eradicate foot-and-mouth disease and other foreign 
animal diseases (21 U.S.C. 113a).
    (28) The Agricultural Marketing Act of 1946, section 203, 205, as 
amended (7 U.S.C. 1622, 1624), with respect to voluntary inspection and 
certification of animal products; inspection, testing, treatment, and 
certification of animals; and a program to investigate and develop 
solutions to the problems resulting from the use of sulfonamides in 
swine.
    (29) Talmadge-Aiken Act (7 U.S.C. 450) with respect to cooperation 
with States in control and eradication of plant and animal diseases and 
pests.
    (30) Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 
 et seq.), and title VI of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5195 et seq.), relating to 
protection of livestock, poultry and crops and products thereof from 
biological and chemical warfare; and utilization or disposal of 
livestock and poultry exposed to radiation.
    (31) The Federal Noxious Weed Act of 1974, as amended (7 U.S.C. 
2801-2814).
    (32) The Endangered Species Act of 1973 (16 U.S.C. 1531-1544).
    (33) Executive Order 11987, 3 CFR, 1977 Comp., p. 116.
    (34) Section 101(d), Organic Act of 1944 (7 U.S.C. 430).
    (35) The Swine Health Protection Act, as amended (7 U.S.C. 3801-
3813).
    (36) Lacey Act Amendments of 1981, as amended (16 U.S.C. 3371-3378).
    (37) Title III (and title IV to the extent that it relates to 
activities under title III) of the Federal Seed Act, as amended (7 
U.S.C. 1581-1610).
    (38) Authority to prescribe the amounts of commuted traveltime 
allowances and the circumstances under which such allowances may be paid 
to employees covered by the Act of August 28, 1950 (7 U.S.C. 2260).
    (39) Provide management support services for the Grain Inspection, 
Packers and Stockyards Administration, and the Agricultural Marketing 
Service as agreed upon by the agencies with authority to take actions 
required by law or regulation. As used herein, the term management 
support services

[[Page 247]]

includes budget, finance, personnel, procurement, property management, 
communications, paperwork management, and related administrative 
services.
    (40) Coordinate the development and carrying out by Department 
agencies of all matters and functions pertaining to the Department's 
regulation of biotechnology, and act as liaison on all matters and 
functions pertaining to the regulation of biotechnology between agencies 
within the Department and between the Department and other governmental 
and private organizations.
    (41) The Act of March 2, 1931 (7 U.S.C. 426-426b).
    (42) The Act of December 22, 1987 (7 U.S.C. 426c).
    (43) Authority to work with developed and transitional countries on 
agricultural and related research and extension, with respect to animal 
and plant health, including providing technical assistance, training, 
and advice to persons from such countries engaged in such activities and 
the stationing of scientists at national and international institutions 
in such countries (7 U.S.C. 3291(a)(3)).
    (44) With respect to land and facilities under his or her authority, 
exercise the functions delegated to the Secretary by Executive Order 
12580, 3 CFR, 1987 Comp., p. 193, under the following provisions of the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (``the Act''), as amended:
    (i) Sections 104 (a), (b), and (c)(4) of the Act (42 U.S.C. 9604 
(a), (b), and (c)(4)), with respect to removal and remedial actions in 
the event of release or threatened release of a hazardous substance, 
pollutant, or contaminant into the environment;
    (ii) Sections 104(e)-(h) of the Act (42 U.S.C. 9604(e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards and wage and labor 
standards applicable to covered work; and emergency procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petitions for preliminary assessment of a 
release or threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) 
pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (ix) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon which to base the selection 
of a response action and identifying and notifying potentially 
responsible parties;
    (x) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xi) Sections 117 (a) and (c) of the Act (42 U.S.C. 9617 (a) and 
(c)), with respect to public participation in the preparation of any 
plan for remedial action and explanation of variances from the final 
remedial action plan for any remedial action or enforcement action, 
including any settlement or consent decree entered into;
    (xii) Section 119 of the Act (42 U.S.C. 9119), with respect to 
indemnifying response action contractors;
    (xiii) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xiv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), related to mixed funding agreements.

[[Page 248]]

    (45) With respect to facilities and activities under his or her 
authority, to exercise the authority of the Secretary of Agriculture 
pursuant to section 1-102 related to compliance with applicable 
pollution control standards and section 1-601 of Executive Order 12088, 
3 CFR, 1978 Comp., p. 243, to enter into an inter-agency agreement with 
the United States Environmental Protection Agency, or an administrative 
consent order or a consent judgment in an appropriate State, interstate, 
or local agency, containing a plan and schedule to achieve and maintain 
compliance with applicable pollution control standards established 
pursuant to the following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, as further amended by the Hazardous and 
Solid Waste Amendments, and the Federal Facility Compliance Act (42 
U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).
    (46) Authority to prescribe and collect fees under the Act of August 
31, 1951, as amended (31 U.S.C. 9701), and sections 2508 and 2509 of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (21 U.S.C. 136, 
136a), as amended.
    (47) The provisions of 35 U.S.C. 156.
    (48) Enter into cooperative research and development agreements with 
industry, universities, and others; institute a cash award program to 
reward scientific, engineering, and technical personnel; award royalties 
to inventors; and retain and use royalty income (15 U.S.C. 3710a-3710c).
    (49) The Alien Species Prevention and Enforcement Act of 1992 (39 
U.S.C. 3015 note).
    (50) Sections 901-905 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 1901 note).
    (b) Reservation. The following authority is reserved to the 
Assistant Secretary for Marketing and Regulatory Programs: The authority 
to make determinations under 35 U.S.C. 156 as to whether an applicant 
acted with due diligence.

[60 FR 56393, Nov. 8, 1995, as amended at 61 FR 68541, Dec. 30, 1996]



Sec. 2.81  Administrator, Grain Inspection, Packers and Stockyards Administration.

    (a) Delegations. Pursuant to Secs. 2.22 (a)(3) and (a)(9), the 
following delegations of authority are made by the Assistant Secretary 
for Marketing and Regulatory Programs to the Administrator, Grain 
Inspection Service, Packers and Stockyards Administration:
    (1) Administer the United States Grain Standards Act, as amended (7 
U.S.C. 71-87h).
    (2) Exercise the functions of the Secretary of Agriculture contained 
in the Agricultural Marketing Act of 1946, as amended (7 U.S.C. 1621-
1627), relating to inspection and standardization activities related to 
grain.
    (3) Administer the Packers and Stockyards Act, 1921, as amended and 
supplemented.
    (4) Enforce provisions of the Consumer Credit Protection Act (15 
U.S.C. 1601-1665, 1681-1681t), with respect to any activities subject to 
the Packers and Stockyards Act, 1921, as amended and supplemented.
    (5) Exercise the functions of the Secretary of Agriculture contained 
in section 1324 of the Food Security Act of 1985 (7 U.S.C. 1631).
    (6) With respect to land and facilities under his or her authority, 
exercise the functions delegated to the Secretary by Executive Order 
12580, 3 CFR, 1987 Comp., p. 193, under the following provisions of the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (``the Act''), as amended:
    (i) Sections 104 (a), (b), and (c)(4) of the Act (42 U.S.C. 9604 
(a), (b), and

[[Page 249]]

(c)(4)), with respect to removal and remedial actions in the event of 
release or threatened release of a hazardous substance, pollutant, or 
contaminant into the environment;
    (ii) Sections 104(e)-(h) of the Act (42 U.S.C. 9604(e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards and wage and labor 
standards applicable to covered work; and emergency procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petitions for preliminary assessment of a 
release or threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) 
pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (ix) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon which to base the selection 
of a response action and identifying and notifying potentially 
responsible parties;
    (x) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xi) Sections 117 (a) and (c) of the Act (42 U.S.C. 9617 (a) and 
(c)), with respect to public participation in the preparation of any 
plan for remedial action and explanation of variances from the final 
remedial action plan for any remedial action or enforcement action, 
including any settlement or consent decree entered into;
    (xii) Section 119 of the Act (42 U.S.C. 9119), with respect to 
indemnifying response action contractors;
    (xiii) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xiv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), related to mixed funding agreements.
    (7) With respect to facilities and activities under his or her 
authority, to exercise the authority of the Secretary of Agriculture 
pursuant to section 1-102 related to compliance with applicable 
pollution control standards and section 1-601 of Executive Order 12088, 
3 CFR, 1978 Comp., p. 243, to enter into an inter-agency agreement with 
the United States Environmental Protection Agency, or an administrative 
consent order or a consent judgment in an appropriate State, interstate, 
or local agency, containing a plan and schedule to achieve and maintain 
compliance with applicable pollution control standards established 
pursuant to the following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, as further amended by the Hazardous and 
Solid Waste Amendments, and the Federal Facility Compliance Act (42 
U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the

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Superfund Amendments and Reauthorization Act of 1986 (42 U.S.C. 9601 et 
seq.).
    (b) [Reserved]



   Subpart O--Delegations of Authority by the Assistant Secretary for 
                         Congressional Relations



Sec. 2.83  Deputy Assistant Secretary for Congressional Relations.

    Pursuant to Sec. 2.23, and subject to policy guidance and direction 
by the Assistant Secretary, the following delegation of authority is 
made by the Assistant Secretary for Congressional Relations to the 
Deputy Assistant Secretary for Congressional Relations, to be exercised 
only during the absence or unavailability of the Assistant Secretary: 
Perform all duties and exercise all powers which are now or which may 
hereafter be delegated to the Assistant Secretary for Congressional 
Relations.



Sec. 2.85  Director, Office of Congressional and Intergovernmental Relations.

    (a) Delegations. Pursuant to Sec. 2.23, the following delegations of 
authority are made by the Assistant Secretary for Congressional 
Relations to the Director, Office of Congressional and Intergovernmental 
Relations:
    (1) Exercise responsibility for coordination of all congressional 
matters in the Department.
    (2) Maintain liaison with the Congress and the White House on 
legislative matters of concern to the Department.
    (3) Coordinate all programs involving intergovernmental affairs 
including State and local government relations and liaison with:
    (i) National Association of State Departments of Agriculture;
    (ii) Office of Intergovernmental Relations (Office of Vice 
President);
    (iii) Advisory Commission on Intergovernmental Relations;
    (iv) Council of State Governments;
    (v) National Governors Conference;
    (vi) National Association of Counties;
    (vii) National League of Cities;
    (viii) International City Managers Association;
    (ix) U.S. Conference of Mayors; and
    (x) Such other State and Federal agencies, departments and 
organizations as are necessary in carrying out the responsibilities of 
this office.
    (4) Maintain oversight of the activities of USDA representatives to 
the 10 Federal Regional councils.
    (5) Serve as the USDA contact with the Advisory Commission on 
Intergovernmental Relations for implementation of OMB Circular A-85 to 
provide advance notification to state and local governments of proposed 
changes in Department programs that affect such governments.
    (6) Act as the department representative for Federal executive board 
matters.
    (7) Administer the implementation of the National Historic 
Preservation Act of 1966, National Historic Preservation Act of 1966, 16 
U.S.C. 470 et seq., Executive Order 11593, 3 CFR, 1971-1975 Comp., p. 
559, and regulations of the Advisory Council on Historic Preservation, 
36 CFR part 800, for the Department of Agriculture with authority to 
name the Secretary's designee to the Advisory Council on Historic 
Preservation.
    (8) Coordinate the Department's programs involving assistance to 
American Indians except civil rights activities.
    (b) [Reserved]



   Subpart P--Delegations of Authority by the Assistant Secretary for 
                             Administration



Sec. 2.87  Deputy Assistant Secretary for Administration.

    Pursuant to Sec. 2.24(a), subject to reservations in Sec. 2.24(b), 
the following delegation of authority is made by the Assistant Secretary 
for Administration to the Deputy Assistant Secretary for Administration, 
to be exercised only during the absence or unavailability of the 
Assistant Secretary: Perform all the duties and exercise all the powers 
which are now or which may hereafter be delegated to the Assistant 
Secretary for Administration.



Sec. 2.89  Director, Office of Civil Rights Enforcement.

    (a) Delegations. Pursuant to Sec. 2.24(a)(8), the following 
delegations of

[[Page 251]]

authority are made by the Assistant Secretary for Administration to the 
Director, Office of Civil Rights Enforcement:
    (1) Provide overall leadership, coordination, and direction for the 
Department's programs of civil rights, including program delivery 
compliance and equal employment opportunity, with emphasis on the 
following:
    (i) Actions to enforce title VI of the Civil Rights Act of 1964, 42 
U.S.C. 2000d, prohibiting discrimination in federally assisted programs;
    (ii) Actions to enforce title VII of the Civil Rights Act of 1964, 
as amended, 42 U.S.C. 2000e, prohibiting discrimination in Federal 
employment;
    (iii) Actions to enforce title IX of the Education Amendments of 
1972, 20 U.S.C. 1681, et seq., prohibiting discrimination on the basis 
of sex in USDA education programs and activities funded by the 
Department;
    (iv) Actions to enforce section 504 of the Rehabilitation Act of 
1973, as amended, 29 U.S.C. 794, prohibiting discrimination on the basis 
of handicap in USDA programs and activities funded by the Department;
    (v) Actions to enforce the Age Discrimination Act of 1975, 42 U.S.C. 
6102, prohibiting discrimination on the basis of age in USDA programs 
and activities funded by the Department;
    (vi) Actions to enforce related Executive orders, Congressional 
mandates, and other laws, rules, and regulations, as appropriate;
    (vii) Actions to develop and implement the Department's Federal 
Women's Programs; and
    (viii) Actions to develop and implement the Department's Hispanic 
Employment Program.
    (2) Evaluate Departmental agency programs, activities, and impact 
statements for civil rights concerns.
    (3) Provide leadership and coordinate USDA agency and Department 
systems for targeting, collecting, analyzing, and evaluating program 
participation data and equal employment opportunity data.
    (4) Provide leadership and coordinate Departmentwide programs of 
public notification regarding the availability of USDA programs on a 
nondiscriminatory basis.
    (5) Serve as the focal point through which all contacts with the 
Department of Justice are made involving matters relating to title VI of 
the Civil Rights Act of 1964 (42 U.S.C. 2000d), title IX of the 
Education Amendments of 1972 (20 U.S.C. 1681 et seq.), and section 504 
of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794), except 
those matters in litigation, including administrative enforcement 
actions, which shall be coordinated by the Office of the General 
Counsel.
    (6) Serve as the focal point through which all contacts with the 
Department of Health and Human Services are made involving matters 
relating to the Age Discrimination Act of 1975, 42 U.S.C. 6102, except 
those matters in litigation, including administrative enforcement 
action, which shall be coordinated by the Office of the General Counsel.
    (7) Order proceedings and hearings in the Department of Agriculture 
pursuant to Secs. 15.9(e) and 15.86 of this title which concern 
consolidated or joint hearings within the Department and/or with other 
Federal departments and agencies.
    (8) Order proceedings and hearings in the Department of Agriculture 
pursuant to Sec. 15.8(c) of this title after the program agency has 
advised the applicant or recipient of his or her failure to comply and 
has determined that compliance cannot be secured by voluntary means.
    (9) Issue orders to give a notice of hearing or the opportunity to 
request a hearing pursuant to part 15 of this title; arrange for the 
designation of an Administrative Law Judge to preside over any such 
hearing; and determine whether the Administrative Law Judge so 
designated will make an initial decision or certify the record to the 
Secretary of Agriculture with his or her recommended findings and 
proposed action.
    (10) Authorize the taking of action pursuant to Sec. 15.8(a) of this 
title relating to compliance by ``other means authorized by law.''
    (11) Make determinations required by Sec. 15.8(d) of this title that 
compliance cannot be secured by voluntary means, and then take action, 
as appropriate.

[[Page 252]]

    (12) Make determinations that program complaint investigations 
performed under Sec. 15.6 of this title establish a proper basis for 
findings of discrimination, and that actions taken to correct such 
findings are adequate; and perform investigations as to complaints filed 
under subpart B of part 15 of this title.
    (13) Conduct investigations and compliance reviews Departmentwide.
    (14) Develop regulations, plans, and procedures necessary to carry 
out the Department's civil rights programs, including the development, 
implementation, and coordination of Action Plans.
    (15) Perform staff work for the Director of Equal Employment 
Opportunity including coordination of the Department's affirmative 
employment program, special emphasis programs, Federal equal opportunity 
recruitment program, equal employment opportunity evaluations, and 
development of policy.
    (16) Provide equal employment opportunity services for managers and 
employees in the Departmental staff offices.
    (17) Provide liaison on equal employment opportunity programs and 
activities with the Equal Employment Opportunity Commission, the Office 
of Personnel Management, USDA agencies, Department employees, and 
applicants for positions within the Department.
    (18) Monitor, evaluate, and report on agency compliance with 
established policy and executive orders which further the participation 
of historically black colleges and universities and with other colleges 
and universities with substantial monitored group enrollment in 
Departmental programs and activities.
    (19) Perform the EEO counseling function for the Department.
    (20) Maintain liaison with historically black colleges and 
universities and other colleges and universities with substantial 
minority group enrollment, and assisting USDA agencies in strengthening 
such institutions by facilitating institutional participation in USDA 
programs and activities and by encouraging minority students to pursue 
curricula that could lead to careers in the food and agricultural 
sciences.
    (21) Process formal EEO discrimination complaints, up to the 
appellate stage, by employees or applicants for employment.
    (22) Administer the discrimination appeals and complaints program 
for the Department, including all formal individual or group appeals, 
where the system provides for an avenue of redress to the Department 
level, Equal Employment Opportunity Commission, or other outside 
authority.
    (23) [Reserved]
    (24) Perform staff work for the Director of Equal Employment 
Opportunity on the preparation of decisions on complaints of 
discrimination.
    (25) Provide liaison on EEO matters concerning complaints and 
appeals with USDA agencies and Department employees.
    (26) Investigate USDA EEO complaints, with authority to enter into 
and administer contracts for such investigations.
    (27) Make final decisions on complaints and grievance appeals, 
except in those cases where the Director, Office of Civil Rights 
Enforcement has participated, when it is determined that such complaint 
or grievance appeals are not being decided in a timely manner.
    (28) Make final decisions on formal grievance appeals in all cases 
where the Deciding Official:
    (i) Was involved directly in the grievance; or
    (ii) Made the informal decision; or
    (iii) Determines that the Examiner's findings or Committee's 
recommendations is unacceptable.
    (29) The provisions of paragraphs (a)(27) and (a)(28) of this 
section shall not apply for positions in, or applicants for positions 
in, the Office of Inspector General.
    (b) [Reserved]



Sec. 2.90  Director, Office of Information Resources Management.

    (a) Delegations. Pursuant to Sec. 2.24 (a)(4) and (a)(6), the 
following delegations of authority are made by the Assistant Secretary 
for Administration to the Director, Office of Information Resources 
Management:

[[Page 253]]

    (1) Assist the Senior Official designated under the Paperwork 
Reduction Act of 1980 (44 U.S.C. 3501-3520), with the development of 
Departmental information resource management principles, policies and 
objectives.
    (2) Coordinate with the Senior Official designated under the 
Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520), the development 
and promulgation of Departmental information resources management 
standards, guidelines, rules, and regulations necessary to implement 
approved principles, policies, and objectives.
    (3) Develop and implement an information resources management 
planning system which will integrate short-term and long-term objectives 
and coordinate agency and staff office initiatives in support of the 
objectives.
    (4) Provide Departmentwide guidance and direction in planning, 
developing, documenting, and managing applications software projects in 
accordance with Federal and Department information processing standards, 
procedures, and guidelines.
    (5) Provide Departmentwide guidance and direction in all aspects of 
the USDA information management program including feasibility studies; 
economic analyses; systems design; acquisition of equipment, software, 
services, and timesharing arrangements; systems installation; systems 
performance and capacity evaluation; and security. Monitor these 
activities for agencies' major systems development efforts to assure 
effective and economic use of resources and compatibility among systems 
of various agencies when required.
    (6) Manage the Departmental Computer Centers, including setting of 
rates to recover the cost of goods and services within approved policy 
and funding levels.
    (7) Review and evaluate information resource management activities 
related to delegated functions to assure that they conform to all 
applicable Federal and Department information resource management 
policies, plans, standards, procedures, and guidelines.
    (8) Design, develop, implement, and revise systems, processes, work 
methods, and techniques to improve the management and operational 
effectiveness of information resources.
    (9) Administer the Departmental records, forms, reports, and 
directives management programs, in coordination with the Senior Official 
designated under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-
3520).
    (10) Manage all aspects of the USDA telecommunications program 
including planning, development, acquisition, and use of equipment and 
systems for voice and data communications, excluding the actual 
procurement of data transmission equipment, software, maintenance, and 
related supplies. Manage Departmental telecommunications contracts. 
Provide technical advice throughout the Department on telecommunications 
matters.
    (11) Implement a program for applying information resources 
management technology to improve productivity in the Department.
    (12) Provide leadership to integrate and unify the management 
process for the Department's major information resource management 
system acquisitions and to monitor implementation of the policies and 
practices set forth in applicable OMB Circulars.
    (13) Provide Departmental services related to Departmental 
administrative regulations, Secretarial issuances, and related 
management support.
    (14) Plan, develop, install, and operate computer-based systems for 
message exchange, scheduling, computer conferencing, and other 
applications of office automation technology which can be commonly used 
by multiple Department agencies and offices.
    (15) Provide automation, forms management, files management, 
directives management, and related services, with authority to take any 
action required by law or regulation to provide such services, for:
    (i) The Secretary of Agriculture;
    (ii) The general officers of the Department, except the Inspector 
General;
    (iii) The offices and agencies reporting to the Assistant Secretary 
for Administration; and
    (iv) Provide such services as listed in paragraph (a)(15) of this 
section for any other officer or agency of the Department as may be 
agreed.

[[Page 254]]

    (16) Represent the Department in contacts with the General 
Accounting Office, the General Services Administration, the Office of 
Management and Budget, the National Bureau of Standards, and other 
organizations or agencies on matters related to delegated 
responsibilities.
    (17) Provide staff assistance as required for the Secretary, general 
officers, and other Department and agency officials.
    (18) Provide related support services needed by the Department to 
carry out defense responsibilities.
    (19) Review, clear, and coordinate all statistical forms, survey 
plans, and reporting and record keeping requirements originating in the 
Department and requiring approval by the Office of Management and Budget 
under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520).
    (20) Review and make recommendations to the Assistant Secretary for 
Administration on proposed waivers to Federal Information Processing 
Standards (FIPS) pursuant to section 111(d)(3) of the Federal Property 
and Administrative Services Act of 1949, as amended (40 U.S.C. 
759(d)(3)).
    (b) [Reserved]



Sec. 2.91  Director, Office of Operations.

    (a) Delegations. Pursuant to Sec. 2.24 (a)(3), (a)(4) and (a)(11), 
the following delegations of authority are made by the Assistant 
Secretary for Administration to the Director, Office of Operations:
    (1) Promulgate Departmental policies, standards, techniques, and 
procedures, and represent the Department, in the following:
    (i) Contracting for and the procurement of administrative and 
operating supplies, services, equipment and construction;
    (ii) Socioeconomic programs relating to contracting, excepting those 
matters otherwise vested by statute in the Director of Small and 
Disadvantaged Business Utilization;
    (iii) Selection, standardization, and simplification of program 
delivery processes utilizing contracts;
    (iv) Acquisition, leasing, utilization, value analysis, 
construction, maintenance, and disposition of real and personal 
property, including control of space assignments;
    (v) Acquisition, storage, distribution and disposition of forms, 
supplies and equipment;
    (vi) Mail management;
    (vii) Motor vehicle fleet and other vehicular transportation;
    (viii) Transportation of things (traffic management);
    (ix) Prevention, control, and abatement of pollution with respect to 
Federal facilities and activities under the control of the Department 
(Executive Order 12088, 3 CFR, 1978 Comp., p. 243);
    (x) Implementation of the Uniform Relocation Assistance and Real 
Property Policies Act of 1970 (42 U.S.C. 4601 et seq.); and
    (xi) Development and implementation of energy management actions 
related to the internal operations of the Department. Maintain liaison 
with other Government agencies in these matters.
    (2) Operate, or provide for the operation of, centralized 
Departmental services to provide printing, copy reproduction, offset 
composition, supply, mail, automated mailing lists, excess property 
pool, resource recovery, shipping and receiving, forms, labor services, 
issuance of general employee identification cards, supplemental 
distribution of Department directives, space allocation and management, 
and related management support.
    (3) Exercise the following special authorities:
    (i) The Director, Office of Operations, is designated as the 
Department's Debarring Officer, and authorized to perform the functions 
of 48 CFR part 9, subparts 9.406 and 9.407;
    (ii) Conduct liaison with the Office of the Federal Register (1 CFR 
part 16), including the making of required certifications pursuant to 1 
CFR part 18;
    (iii) Maintain custody and permit appropriate use of the official 
seal of the Department;
    (iv) Establish policy for the use of the official flags of the 
Secretary and the Department;
    (v) Coordinate collection of historical material for Presidential 
Libraries;
    (vi) Oversee the safeguarding of unclassified materials designated 
``For Official Use Only;''

[[Page 255]]

    (vii) Make determinations under 48 CFR 14.406-3(a)-(d), related to 
mistakes in bids alleged after opening of bids and before award. Except 
for the authority to permit withdrawal of bids under 48 CFR 14.406-3(c), 
this authority may not be redelegated; and
    (viii) Make information returns to the Internal Revenue Service as 
prescribed by 26 U.S.C. 6050M and by 26 CFR 1.6050M-1 and such other 
Treasury regulations, guidelines or procedures as may be issued by the 
Internal Revenue Service in accordance with 26 U.S.C. 6050M. This 
includes executing such verifications or certifications as may be 
required by 26 CFR 1.6050M-1, and making the election allowed by 26 CFR 
1.6050M-1(d)(5)(i).
    (4) Provide procurement, property management, space management, 
communications (telephone), messenger, and related services with 
authority to take actions required by law or regulation to perform such 
services for:
    (i) The Secretary of Agriculture;
    (ii) The general officers of the Department, except the Inspector 
General;
    (iii) The offices and agencies reporting to the Assistant Secretary 
for Administration; and
    (iv) Provide such services as listed in paragraph (a)(4) of this 
section for any other officers or agencies of the Department as may be 
agreed.
    (5) Exercise full Departmentwide contracting and procurement 
authority for automatic data processing and data transmission equipment, 
software, services, maintenance, and related supplies, subject to the 
review of the Senior Official designated under the Paperwork Reduction 
Act of 1980 (44 U.S.C. 3501-3520). This authority includes the 
promulgation of Departmental directives regulating the management of 
contracting and procurement functions.
    (6) Provide related support services needed by the Department to 
carry out defense responsibilities.
    (7) Provide staff assistance for the Secretary, general officers and 
other Department and agency officials.
    (8) Represent the Department in contacts with the General Accounting 
Office, the General Services Administration, the Office of Management 
and Budget, and other organizations or agencies on matters related to 
assigned responsibilities.
    (9) Exercise authority under the Department's Acquisition Executive 
(Assistant Secretary for Administration) to integrate and unify the 
management process for the Department's major system acquisitions and to 
monitor implementation of the policies and practices set forth in OMB 
Circular A-109, Major Systems Acquisitions. This delegation includes the 
authority to:
    (i) Insure that OMB Circular A-109 is effectively implemented in the 
Department and that the management objectives of the Circular are 
realized;
    (ii) Review the program management of each major system acquisition;
    (iii) Designate the program manager for each major system 
acquisition; and
    (iv) Designate any Departmental acquisition as a major system 
acquisition under OMB Circular A-109.
    (10) Pursuant to Executive Order 12352, 3 CFR, 1982 Comp., p. 137, 
and sections 16, 20(b), and 21 of the Office of Federal Procurement 
Policy Act, as amended, 41 U.S.C. 414, 418(b) and 418, the Director, 
Office of Operations, is designated as the Senior Procurement Executive 
for the Department with responsibility for the following:
    (i) Prescribing and publishing Departmental procurement policies, 
regulations, and procedures;
    (ii) Taking any necessary actions consistent with policies, 
regulations, and procedures with respect to purchases, contracts, 
leases, and other transactions;
    (iii) Designating contracting officers;
    (iv) Establishing clear lines of contracting authority;
    (v) Evaluating and monitoring the performance of the Department's 
procurement system;
    (vi) Managing and enhancing career development of the procurement 
work force;
    (vii) Participating in the development of Government-wide 
procurement policies, regulations, and standards and determining 
specific areas where Government-wide performance standards should be 
established and applied;
    (viii) Determining areas of Department-unique standards and 
developing unique Department-wide standards;

[[Page 256]]

    (ix) Certifying to the Secretary that the procurement system meets 
approved standards;
    (x) Prescribing standards for agency Procurement Executives and 
designating agency Procurement Executives when these standards are met;
    (xi) Redelegating, as appropriate, the authority in paragraph 
(a)(10)(i) of this section to USDA agency Procurement Executives or 
other qualified agency officials with no power of further redelegation; 
and
    (xii) Redelegating the authorities in paragraphs (a)(10)(ii), (iii), 
(iv), (vi), and (vii) of this section to USDA agency Procurement 
Executives or other qualified agency officials with the power of further 
redelegation.
    (11) Promulgate Departmental policies, standards, techniques, and 
procedures and represent the Department in maintaining the security of 
physical facilities, self-protection, and warden services.
    (12) With respect to land and facilities under his or her authority, 
exercise the functions delegated to the Secretary by Executive Order 
12580, 3 CFR, 1987 Comp., p. 193, under the following provisions of the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (``the Act''), as amended:
    (i) Sections 104 (a), (b), and (c)(4) of the Act (42 U.S.C. 9604 
(a), (b), and (c)(4)), with respect to removal and remedial actions in 
the event of release or threatened release of a hazardous substance, 
pollutant, or contaminant into the environment;
    (ii) Sections 104(e)-(h) of the Act (42 U.S.C. 9604(e)-(h)), with 
respect to information gathering and access requests and orders; 
compliance with Federal health and safety standards and wage and labor 
standards applicable to covered work; and emergency procurement powers;
    (iii) Section 104(i)(11) of the Act (42 U.S.C. 9604(i)(11)), with 
respect to the reduction of exposure to significant risk to human 
health;
    (iv) Section 104(j) of the Act (42 U.S.C. 9604(j)), with respect to 
the acquisition of real property and interests in real property required 
to conduct a remedial action;
    (v) The first two sentences of section 105(d) of the Act (42 U.S.C. 
9605(d)), with respect to petitions for preliminary assessment of a 
release or threatened release;
    (vi) Section 105(f) of the Act (42 U.S.C. 9605(f)), with respect to 
consideration of the availability of qualified minority firms in 
awarding contracts, but excluding that portion of section 105(f) 
pertaining to the annual report to Congress;
    (vii) Section 109 of the Act (42 U.S.C. 9609), with respect to the 
assessment of civil penalties for violations of section 122 of the Act 
(42 U.S.C. 9622), and the granting of awards to individuals providing 
information;
    (viii) Section 111(f) of the Act (42 U.S.C. 9611(f)), with respect 
to the designation of officials who may obligate money in the Hazardous 
Substances Superfund;
    (ix) Section 113(k) of the Act (42 U.S.C. 9613(k)), with respect to 
establishing an administrative record upon which to base the selection 
of a response action and identifying and notifying potentially 
responsible parties;
    (x) Section 116(a) of the Act (42 U.S.C. 9616(a)), with respect to 
preliminary assessment and site inspection of facilities;
    (xi) Sections 117 (a) and (c) of the Act (42 U.S.C. 9617 (a) and 
(c)), with respect to public participation in the preparation of any 
plan for remedial action and explanation of variances from the final 
remedial action plan for any remedial action or enforcement action, 
including any settlement or consent decree entered into;
    (xii) Section 119 of the Act (42 U.S.C. 9119), with respect to 
indemnifying response action contractors;
    (xiii) Section 121 of the Act (42 U.S.C. 9621), with respect to 
cleanup standards; and
    (xiv) Section 122 of the Act (42 U.S.C. 9622), with respect to 
settlements, but excluding section 122(b)(1) of the Act (42 U.S.C. 
9622(b)(1)), related to mixed funding agreements.
    (13) With respect to facilities and activities under his or her 
authority, to exercise the authority of the Secretary of Agriculture 
pursuant to section 1-

[[Page 257]]

102 related to compliance with applicable pollution control standards 
and section 1-601 of Executive Order 12088, 3 CFR, 1978 Comp., p. 243, 
to enter into an inter-agency agreement with the United States 
Environmental Protection Agency, or an administrative consent order or a 
consent judgment in an appropriate State, interstate, or local agency, 
containing a plan and schedule to achieve and maintain compliance with 
applicable pollution control standards established pursuant to the 
following:
    (i) Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act, as further amended by the Hazardous and 
Solid Waste Amendments, and the Federal Facility Compliance Act (42 
U.S.C. 6901 et seq.);
    (ii) Federal Water Pollution Prevention and Control Act, as amended 
(33 U.S.C. 1251 et seq.);
    (iii) Safe Drinking Water Act, as amended (42 U.S.C. 300f et seq.);
    (iv) Clean Air Act, as amended (42 U.S.C. 7401 et seq.);
    (v) Noise Control Act of 1972, as amended (42 U.S.C. 4901 et seq.);
    (vi) Toxic Substances Control Act, as amended (15 U.S.C. 2601 et 
seq.);
    (vii) Federal Insecticide, Fungicide, and Rodenticide Act, as 
amended (7 U.S.C. 136 et seq.); and
    (viii) Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, as amended by the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9601 et seq.).
    (b) [Reserved]



Sec. 2.92  Director, Office of Personnel.

    (a) Delegations. Pursuant to Sec. 2.24 (a)(4), (a)(5) and (a)(7), 
subject to reservations in Sec. 2.24(b)(1), the following delegations of 
authority are made by the Assistant Secretary for Administration to the 
Director of Personnel:
    (1) Authority to formulate and issue Department policy, standards, 
rules and regulations relating to personnel.
    (2) Provide personnel management procedural guidance and operational 
instructions.
    (3) Design and establish personnel data systems.
    (4) Inspect and evaluate personnel management operations and issue 
instructions or take direct action to insure conformity with appropriate 
laws, Executive orders, Office of Personnel Management rules and 
regulations, and other appropriate rules and regulations.
    (5) Exercise final authority in all personnel matters, including 
individual cases, that involve the jurisdiction of more than one General 
Officer.
    (6) Receive, review, and recommend action on all requests for the 
Secretary's or Assistant Secretary for Administration's approval in 
personnel matters.
    (7) Make final decisions on adverse actions except in those cases 
where the Assistant Secretary for Administration has participated, when 
it is determined that such adverse action is not being decided in a 
timely manner.
    (8) Represent the Department in personnel matters in all contacts 
outside the Department.
    (9) Specific authorities in the following operational matters:
    (i) Authorize cash awards above $2,500;
    (ii) Waive repayment of training expenses where employee fails to 
fulfill service agreement;
    (iii) Establish or change standards and plans for awards to private 
citizens;
    (iv) Execute, change, extend, or renew:
    (A) Labor-Management Agreements; and
    (B) Association of Management Officials or Supervisor's Agreements.
    (v) Represent any part of the Department in all contacts and 
proceedings with the National Offices of Labor Organizations;
    (vi) Change a position (with no material change in duties) from GS 
to a pay system other than a wage system, or vice versa;
    (vii) Grant restoration rights, and release employees with 
administrative re-employment rights;
    (viii) Change working hours for groups of 50 or more employees in 
the Washington, DC metropolitan area;
    (ix) Authorize any mass dismissals of employees in the Washington, 
DC metropolitan area;
    (x) Approve ``normal line of promotion'' cases in the excepted 
service

[[Page 258]]

where not in accordance with time-in grade criteria;
    (xi) Make final decisions on adverse action and performance rating 
appeals in all cases where the Deciding Official:
    (A) Was involved directly in the adverse action, or performance 
rating appeal; or
    (B) Made the informal decision; or
    (C) Determines that the Examiner's findings or Committee's 
recommendations is unacceptable.
    (xii) Make the final decision on all classification appeals from 
agency appellate decisions;
    (xiii) Authorize all employment actions (except nondisciplinary 
separations and LWOP) and classification actions for senior level and 
equivalent positions including Senior Executive Service positions and 
special authority professional and scientific positions responsible for 
carrying out research and development functions;
    (xiv) Authorize all employment actions (except LWOP) for the 
following positions:
    (A) Schedule C; and
    (B) Administrative Law Judge.
    (xv) Authorize employment actions (accessions or extensions) for the 
following:
    (A) Employees whose records are flagged; and
    (B) Contract services.
    (xvi) Authorize employment actions (accessions or extensions and 
transfers) for the following:
    (A) Persons with criminal or immoral records;
    (B) Persons separated for misconduct, delinquency, or resignation to 
avoid such action; and
    (C) Veterans with dishonorable or other than dishonorable discharge.
    (xvii) Authorize adverse actions for positions in GS-14-15 and 
equivalent;
    (xviii) Approve assignments of White House details;
    (xix) Authorize adverse actions based in whole or in part on an 
allegation of violation of 5 U.S.C. chapter 73, subchapter III, for 
employees in the excepted service;
    (xx) Authorize long-term training in programs which require 
Department-wide competition;
    (xxi) Issue all Coordinated Federal Wage Systems (CFWS) Department-
wide Wage Schedules, and Lithographic Wage Schedules in the Washington, 
DC Metropolitan Area; and
    (xxii) Initiate and take adverse action in cases involving a 
violation of the merit system.
    (10) As used herein, the term personnel includes:
    (i) Position management;
    (ii) Position classification;
    (iii) Employment;
    (iv) Pay administration;
    (v) Automation of personnel data and systems design;
    (vi) Hours of duty;
    (vii) Performance evaluation and standards;
    (viii) Promotions;
    (ix) Employee development;
    (x) Incentive programs;
    (xi) Leave;
    (xii) Retirement;
    (xiii) Program evaluation;
    (xiv) Social security;
    (xv) Life insurance;
    (xvi) Health benefits;
    (xvii) Unemployment compensation;
    (xviii) Labor management relations;
    (xix) Intramanagement consultation;
    (xx) Security;
    (xxi) Discipline; and
    (xxii) Appeals.
    (11) Provide personnel services, as listed in paragraph (a)(10) of 
this section, and organizational support services, with authority to 
take actions required by law or regulation for:
    (i) The Secretary of Agriculture;
    (ii) The general officers of the Department, except the Inspector 
General;
    (iii) The offices and agencies reporting to the Assistant Secretary 
for Administration, except the National Finance Center; and
    (iv) Provide such services as listed in paragraph (a)(11) of this 
section for any other officer or agency of the Department as may be 
agreed.
    (12) Provide personnel services relating to defense responsibilities 
of the Department.
    (13) The provisions of paragraphs (a)(9)(xiii) through (xvii) of 
this section shall not apply to positions in, or applicants for 
positions in, the Office of Inspector General.
    (14) Maintain, review and update departmental delegations of 
authority.

[[Page 259]]

    (15) Authorize organizational changes which occur in:
    (i) Departmental organizations:
    (A) Service or office;
    (B) Division (or comparable component); and
    (C) Branch (or comparable component in departmental centers, only).
    (ii) Field organizations:
    (A) First organizational level; and
    (B) Next lower organizational level--required only for those types 
of field installations where the establishment, change in location, or 
abolition of same requires approval in accordance with Departmental 
Regulation 1010-1, available from the Chief, Information Management 
Division, Office of Information Resources Management, Room 403-W, 
Administration Building, U.S. Department of Agriculture, Washington, DC 
20250.
    (16) Formulate and promulgate departmental organizational objectives 
and policies.
    (17) Provide staff assistance and support to the Department's 
Committee Management Officer.
    (18) Formulate policies and procedures on the establishment and 
management of committees in the Department.
    (19) Consult with GSA and Departmental agencies on the establishment 
and reestablishment of advisory committees.
    (20) Establish Departmentwide safety and health policy and provide 
leadership in the development, coordination, and implementation of 
related standards, techniques, and procedures, and represent the 
Department in complying with laws, Executive orders and other policy and 
procedural issuances related to occupational safety and health within 
the Department.
    (21) Represent the Department in all rulemaking, advisory or 
legislative capacities on any groups, committees, or Governmentwide 
activities that affect the USDA Occupational Safety and Health 
Management Program.
    (22) Determine and/or provide Departmentwide technical services and 
regional staff support for the safety and health programs.
    (23) Administer the computerized management information systems for 
the collection, processing and dissemination of data related to the 
Department's occupational safety and health programs.
    (24) Administer the administrative appeals process related to the 
inclusion of positions in the Testing Designated Position listing in the 
USDA Drug-Free Workplace Program and designate the final appeal officer 
for that Program.
    (25) Administer the Department's Occupational Health and Preventive 
Medical Program, as well as design and operate employee assistance and 
workers' compensation activities.
    (26) Provide education and training on a Departmentwide basis for 
safety and health related issues and develop resource and operational 
manuals.
    (b) Reservation. The following authority is reserved to the 
Assistant Secretary for Administration: Authorize organizational changes 
occurring in a Department service or staff office which affect the 
overall structure of that service or office; i.e., require a change to 
that service or office's overall organization chart.



PART 3--DEBT MANAGEMENT--Table of Contents




               Subpart A--Settlement of Small or Old Debts

Sec.
3.1  Purposes of the act and regulations.
3.2  Definitions.
3.3  Settlement of indebtedness.
3.4  Investigations and findings.
3.5  Delegations of authority.
3.6  Forms and records.
3.8  Penalties.
3.9  Indebtedness referred to the Comptroller General or the Attorney 
          General.
3.10  Scope of the act.

                       Subpart B--Debt Collection

3.21  Debt collection standards.
3.22  Definitions.
3.23  Collection by administrative offset.
3.24  Coordinating administrative offset with other Federal agencies.
3.25  Notice requirements before offset.
3.26  Exceptions to notice requirements.
3.27  Inspection of USDA records related to the debt.
3.28  Written agreements to repay debt as alternative to administrative 
          offset.
3.29  Hearings and reviews.
3.30  Stay of offset.
3.31  Agency procedures.

[[Page 260]]

3.32  Offset against amounts payable from Civil Service retirement and 
          disability fund.
3.33  Offset of debtor's judgment against the United States.
3.34  Interest, penalties and administrative costs.
3.35  Disclosure to a credit reporting agency.
3.36  Use of collection agencies.

                        Subpart C--Salary Offset

3.51  Scope.
3.52  Definitions.
3.53  Coordinating offset with another Federal agency.
3.54  Determination of indebtedness.
3.55  Notice requirements before offset.
3.56  Request for a hearing.
3.57  Result if employee fails to meet deadlines.
3.58  Hearings.
3.59  Written decision following a hearing.
3.60  Review of Departmental record related to the debt.
3.61  Written agreement to repay debt as alternative to salary offset.
3.62  Procedures for salary offset: when deductions may begin.
3.63  Procedures for salary offset: types of collection.
3.64  Procedures for salary offset: methods of collection.
3.65  Procedures for salary offset: imposition of interest, penalties 
          and administrative costs.
3.66  Non-waiver of rights.
3.67  Refunds.
3.68  Agency regulations.

        Subpart D--Cooperation with the Internal Revenue Service

3.81  Reporting discharged debts to the Internal Revenue Service.
3.82  Offset against tax refunds.



               Subpart A--Settlement of Small or Old Debts

    Authority: Sec. 1, 58 Stat. 836; 12 U.S.C. 1150.

    Source: 10 FR 807, Jan. 23, 1945, unless otherwise noted. 
Redesignated at 13 FR 6903, Nov. 24, 1948.



Sec. 3.1   Purposes of the act and regulations.

    The principal purposes of the act and of the regulations in this 
part are to provide means of: (a) Settling, by compromise, adjustment or 
cancellation relatively small debts long past due and owing to the 
Government arising from loans or payments made under farm programs 
administered by the Department; (b) recovering by the Department of 
substantial sums which are found uncollectible when the indebtednesses 
are treated as full obligations, and which otherwise would probably 
never be collected; (c) clearing the accounts of balances so small as 
not to warrant continued efforts of collection; and (d) the clearing of 
the accounts of the records of indebtedness made uncollectible by reason 
of the death or disappearance of the debtors. The existence of the act 
will neither serve as grounds for any relaxation in the general 
collection policy of the Department nor should it serve as grounds for 
any lessening of the efforts of farmers to pay their indebtedness.



Sec. 3.2   Definitions.

    (a) Department means Department of Agriculture.
    (b) Indebtedness with respect to any person, means a debt to the 
Government under each of the acts and programs listed in Sec. 3.10.
    (c) Compromise means final liquidation of the indebtedness through 
the immediate payment of a portion thereof, and acceptance by the United 
States of such payment in full satisfaction of the indebtedness.
    (d) Adjustment means the scaling down of the amount of the 
indebtedness including interest, conditioned upon the payment of the 
adjusted amount at some specified future time or times; such adjustment 
is not to be considered as effective as a settlement under this act 
until the provisions of the adjustment arrangement have been carried 
out.
    (e) Cancellation means the complete discharge, without payment, of 
the indebtedness and the debtor.

[10 FR 807, Jan. 23, 1945, as amended at 11 FR 11984, Oct. 15, 1946. 
Redesignated at 13 FR 6903, Nov. 24, 1948; 55 FR 38662, Sept. 20, 1990]



Sec. 3.3   Settlement of indebtedness.

    (a) Indebtedness will be compromised, adjusted, or canceled, upon 
applicability by the debtor except in those cases where it is found that 
it is legally impossible for the debtor to make application, and upon 
the making of all the following findings:

[[Page 261]]

    (1) That said indebtedness has been due and payable for five years 
or more;
    (2) That the debtor is unable to pay said indebtedness in full and 
has no reasonable prospect of being able to do so; officers of the 
Department shall not make such findings on the basis of mere 
unwillingness to pay on the part of the debtor, or mere financial 
disadvantage to him, but should find that the settlement is the most 
advantageous arrangement possible from the standpoint of the Government 
under the findings prescribed in this part. In no event shall 
cancellation be made unless, in addition to the foregoing requirements, 
there is an advantage in removing the indebtedness from the accounts.
    (3) That the debtor has acted in good faith in an effort to meet his 
obligation; and
    (4) That the principal amount of said indebtedness is not in excess 
of $1,000.
    (b) Indebtedness may also be canceled without application when any 
one of the following circumstances is found:
    (1) The amount of said indebtedness, including interest, is less 
than $10; such efforts of collection have been made as are warranted 
under the circumstances, and the cost of collection or of continued 
maintenance of accounts is deemed greater than the amount of the 
indebtedness;
    (2) The debtor is deceased and there is no reasonable prospect of 
recovering from his estate;
    (3) The debtor's whereabouts has remained unknown for two years and 
there is no reasonable prospect of obtaining collection; heads of 
agencies designated in Sec. 3.5 will prescribe procedures which will 
assure that cancellations on this ground will be made only after a 
diligent effort has been made to locate the debtor, including such 
contact with other agencies of the Department or otherwise as the amount 
of the indebtedness and the circumstances warrant;
    (4) The debtor has been discharged of the indebtedness in any 
proceeding under ``An act to establish a uniform system of bankruptcy 
throughout the United States.''
    (5) It is impossible or impracticable for legal or other reasons to 
obtain the debtor's application but all of the findings required by 
paragraph (a) of this section are made.

[10 FR 807, Jan. 23, 1945, as amended at 12 FR 441, Jan. 22, 1947. 
Redesignated at 13 FR 6903, Nov. 24, 1948, and amended at 21 FR 3213, 
May 16, 1956]



Sec. 3.4   Investigations and findings.

    The heads of agencies designated in Sec. 3.5 shall prescribe 
procedures for the conduct of investigations to determine the facts 
incident to the settlement of any indebtedness. These procedures should 
include, among other things, provisions for consultations with local 
authorities, businessmen, or local representatives of other Government 
agencies, or for obtaining the recommendations of committees or other 
groups or persons designated by each agency for assistance in its 
regular program, or otherwise. The file relating to each debtor shall 
contain the formal findings required by Sec. 3.3, together with such 
evidence as has been obtained in support of such findings.
    In order to effect uniformity in settlements, agency procedures 
should also provide that, where it appears from the application of the 
debtor or from investigation that the debtor is otherwise indebted to 
the United States, to the extent practicable consultation should be had 
(other than in cases under Sec. 3.3(b)(1) and (4) with any other 
creditor agencies, to ascertain pertinent information as to the status 
of such other obligation or obligations. Such information shall be 
considered in connection with the settlement and for inclusion in the 
findings.
    The head of each agency shall provide for review of proposed 
indebtedness settlements within his agency by officers or employees 
designated for that purpose under such conditions as he shall determine 
to be adequate to insure the protection of the interests of the United 
States.



Sec. 3.5   Delegations of authority.

    The heads of any administration or other agency having jurisdiction 
over any of the acts or programs listed in Sec. 3.10 (including those of 
Federal Crop Insurance Corporation) are hereby authorized, within their 
respective jurisdictions, to exercise any or all of the

[[Page 262]]

functions prescribed by this part. The head of each of such agencies may 
delegate and authorize the redelegation of any of the functions vested 
in him by this part: Provided, That the determination of any settlement 
shall not be delegated beyond the head of the highest field office 
having jurisdiction, except that in the case of the Agricultural 
Stabilization and Conservation State Offices, such authority may also be 
delegated to the State Administrative Officers and except that in the 
case of the Farmers Home Administration, such authority may also be 
delegated to Assistant State Directors and Chiefs, Production Loan 
Operations, in State offices of that administration.

[21 FR 3213, May 16, 1956, as amended at 55 FR 18591, May 3, 1990]



Sec. 3.6   Forms and records.

    The Office of Management and Budget may prescribe or approve forms 
for applications for settlement of indebtedness under this part; and 
shall require each agency to establish records to insure the immediate 
availability of necessary information of operations under this part. 
Each agency shall furnish to the Office of Management and Budget a 
report of operations under this part quarterly, or for such other 
periods as the Director of Finance may designate.

[21 FR 3213, May 16, 1956, as amended at 55 FR 38662, Sept. 20, 1990]



Sec. 3.8   Penalties.

    The act prescribes the punishment by a fine of not more than $1,000 
or imprisonment for not more than one year, or both, upon conviction, 
for anyone making any material representation, knowing it to be false, 
for the purpose of influencing in any way the action of the Secretary or 
of any person acting under his authority in connection with any 
compromise, adjustment, or cancellation of indebtedness provided for in 
the act. The act also prohibits the acceptance by any officer, employee, 
or other person to whom is delegated any power or function under the 
act, of any fee, commission, gift, or other consideration, directly or 
indirectly, for or in connection with any transaction or business 
relating to the compromise, adjustment, or cancellation of indebtedness 
under the act.



Sec. 3.9   Indebtedness referred to the Comptroller General or the Attorney General.

    No settlement shall be effected under this part if the indebtedness 
is pending before the Comptroller General for compromise, or the 
Attorney General for collection.

[10 FR 807, Jan. 23, 1945. Redesignated at 13 FR 6903, Nov. 24, 1948, 
and amended at 55 FR 38662, Sept. 20, 1990]



Sec. 3.10   Scope of the act.

    The authorities prescribed in this part are applicable to 
indebtedness arising from loans or payments made or credit extended 
pursuant to the following acts and programs:

    1. Act of July 1, 1918 (40 Stat. 635), Loans for seed.
    2. Act of March 3, 1921 (41 Stat. 1347), Loans for seed.
    3. Act of March 20, 1922 (42 Stat. 467), Loans for seed.
    4. Act of April 26, 1924 (43 Stat. 110), Loans for seed and feed.
    5. Act of February 25, 1927 (44 Stat. 1245), Loans for seed, feed 
and fertilizer.
    6. Act of February 28, 1927 (44 Stat. 1251), Hurricane damage loans.
    7. Act of February 25, 1929 (45 Stat. 1306), as amended May 17, 1929 
(46 Stat. 3), Loans for seed, feed and fertilizer and to vegetable and 
fruit growers.
    8. Act of March 3, 1930 (46 Stat. 78-79), as amended April 24, 1930 
(46 Stat. 254). Loans for seed, feed, fertilizer, fuel and oil.
    9. Act of December 20, 1930 (46 Stat. 1032), as amended February 14, 
1931 (46 Stat. 1160). Loans for seed, feed, fertilizer, fuel and oil and 
crop production, and for assisting in forming local agricultural credit 
corporations, livestock loan companies, or like organizations.
    10. Act of February 23, 1931 (46 Stat. 1276), Loans for seed, feed, 
fertilizer, fuel and oil.
    11. Act of January 22, 1932 (47 Stat. 5), Loans for crop production.
    12. Act of March 3, 1932 (47 Stat. 60), Loans for agricultural 
credit corporations, livestock loan companies, or like organizations.
    13. Act of February 4, 1933 (47 Stat. 795), Loans for crop 
production and harvesting.
    14. Act of February 23, 1934 (48 Stat. 354), Loans for crop 
production and harvesting.
    15. Act of June 19, 1934 (48 Stat. 1056), Loans for emergency relief 
and for seed, feed, freight, summer fallowing and similar purposes.

[[Page 263]]

    16. Act of February 20, 1935 (49 Stat. 28), Loans for crop 
production and harvesting.
    17. Act of March 21, 1935 (49 Stat. 50), appropriation to effectuate 
Act of February 20, 1935.
    18. Act of April 8, 1935 (49 Stat. 115), E. O. 7305, Loans for crop 
production and harvesting.
    19. Act of January 29, 1937 (50 Stat. 5), Loans for crop production 
and harvesting.
    20. Act of February 4, 1938 (52 Stat. 27), Loans for crop production 
and harvesting.
    21. Agricultural Adjustment Act (of 1933), as heretofore amended.
    22. Bankhead Cotton Act of April 21, 1934, as heretofore amended, on 
account of the several cotton tax-exemption certificate pools.
    23. Jones-Connally Cattle Act of April 7, 1934, as heretofore 
amended.
    24. Emergency Appropriation Act, fiscal year 1935, approved June 19, 
1934 (48 Stat. 1056), as heretofore amended, (amendment to Agricultural 
Adjustment Act of 1933, relating to cotton option contracts.)
    25. Kerr Tobacco Act of June 28, 1934 and Public Resolution No. 76 
of March 14, 1936, as heretofore amended.
    26. Section 32 of the Act of August 24, 1935 and related 
legislation, as heretofore amended.
    27. Supplemental Appropriation Act, fiscal year 1936, as heretofore 
amended, (rental and benefit payments and cotton price adjustment 
payments).
    28. Sections 7 to 17 of the Soil Conservation and Domestic Allotment 
Act, as heretofore amended.
    29. Sugar Act of 1937, as heretofore amended.
    30. Sections 303 and 381(a) of the Agricultural Adjustment Act of 
1938 and related or subsequent legislation, as heretofore amended, 
authorizing parity or adjustment payments.
    31. Title IV and Title V of the Agricultural Adjustment Act of 1938 
and related legislation, as heretofore amended, (Cotton Pool 
Participation Trust Certificates (Title IV), and crop insurance (Title 
V)).
    32. Any other Act of Congress heretofore enacted authorizing 
payments to farmers under programs administered through the Agricultural 
Adjustment Agency.
    33. Act of April 8, 1935 (49 Stat. 115), Loan for rural 
rehabilitation and relief.
    34. Act of June 22, 1936 (49 Stat. 1608), Loan for rural 
rehabilitation and relief.
    35. Act of February 9, 1937 (50 Stat. 8), Loans for rural 
rehabilitation and relief.
    36. Act of June 29, 1937 (50 Stat. 352), Loans for rural 
rehabilitation and relief.
    37. The Bankhead-Jones Farm Tenant Act (50 Stat. 522 et seq.).
    38. The Water Facilities Act of August 28, 1937 (50 Stat. 869 et 
seq.).
    39. Act of March 2, 1938 (52 Stat. 83, Pub. Res. 80), Loans for 
rural rehabilitation and relief.
    40. Act of June 21, 1938 (52 Stat. 809), Loans for rural 
rehabilitation and relief.
    41. Act of June 30, 1939 (53 Stat. 927), Loans for rural 
rehabilitation and relief.
    42. Act of June 26, 1940 (54 Stat. 611), Loans for rural 
rehabilitation and relief.
    43. Act of July 1, 1941 (55 Stat. 408), Loans for rural 
rehabilitation.
    44. Act of July 22, 1942 (56 Stat. 664), Loans for rural 
rehabilitation.
    45. Act of July 12, 1943 (57 Stat. 392), Loans for rural 
rehabilitation.
    46. Act of June 28, 1944 (58 Stat. 425), Loans for rural 
rehabilitation.
    47. Flood restoration loans, Second Deficiency Appropriation Act, 
1943 (57 Stat. 537, 542)
    48. Subsequent legislation appropriating or making available funds 
for such loans as those listed under numbers 33 through 47, made by or 
through Resettlement Administration or the Farm Security Administration.
    49. Crop-insurance programs formulated pursuant to Title V of the 
Agricultural Adjustment Act of 1938 (the Federal Crop Insurance Act), 
and any amendment or supplement thereto heretofore or hereafter enacted.
    50. Any indebtedness of farmers evidenced by notes or accounts 
receivable, title to which has been acquired in the liquidation of loans 
to cooperative associations made under the provisions of the Act of June 
15, 1929 (46 Stat. 11).

(Sec. 2, 58 Stat. 836; 12 U.S.C. 1150a)

[10 FR 807, Jan. 23, 1945. Redesignated at 13 FR 6903, Nov. 24, 1948, 
and amended at 55 FR 38662, Sept. 20, 1990]



                       Subpart B--Debt Collection

    Authority: 31 U.S.C. 3701, 3711, 3716-3719, 3728; 4 CFR part 102; 4 
CFR 105.4.

    Source: 50 FR 7722, Feb. 26, 1985, unless otherwise noted.



Sec. 3.21  Debt collection standards.

    (a) The regulations in this subpart are issued under the Federal 
Claims Collection Act of 1966, as amended by the Debt Collection Act of 
1982 (31 U.S.C. 3701, 3711, 3716-3719), and the Joint Regulations issued 
under the Act by the Attorney General and the Comptroller General (4 CFR 
parts 101-105), prescribing Government-wide standards for administrative 
collection, compromise, suspension or termination of agency collection 
action, disclosure

[[Page 264]]

of debt information to consumer reporting agencies, referral of claims 
to private collection contractors for resolution, and referral to the 
General Accounting Office and to the Department of Justice for 
litigation of civil claims by the Government for money or property.
    (b) The head of each agency of the Department may carry out the 
duties and exercise the authority of the Secretary under 31 U.S.C. 3701, 
3711, 3716-3719, 3728, the Joint Regulations of the Attorney General and 
the Comptroller General, and the regulations in this part, with respect 
to the claims of the agency. An agency head may adopt regulations, in 
accordance with the Debt Collection Act and the Joint Regulations, 
setting out agency procedures for the collection by administrative 
offset of such claims and debts. If the head of an agency of the 
Department adopts regulations separate from this subpart, the procedures 
thereby established, rather than those set out in this part, shall be 
followed for the collection of the claims and debts to which the 
separate regulations apply. If an agency does not adopt separate 
regulations, the Director of the Office of Finance and Management may 
carry out the duties and exercise the authority of the Secretary on 
behalf of agency heads.
    (c) Except where administrative offset is explicitly prohibited by 
statute or where other procedures are explicitly provided for by 
statute, all contracts and other written agreements which are executed 
after the effective date of these regulations between an agency and any 
person or entity must include the following or substantially similar 
language:

Any monies that are payable or may become payable from the United States 
under this agreement to any person or legal entity not an agency or 
subdivision of a State or local government may be subject to 
administrative offset for the collection of a delinquent debt the person 
or legal entity owes to the United States, under the Federal Claims 
Collection Act of 1966, as amended by the Debt Collection Act of 1982 
(31 U.S.C. 3701, 3711, 3716-3719); 4 CFR part 102 and subpart B of this 
part. Information on the person's or legal entity's responsibility for a 
commercial debt or delinquent consumer debt owed the United States will 
be disclosed to consumer or commercial credit reporting agencies.

[50 FR 7722, Feb. 26, 1985, as amended at 55 FR 38662, Sept. 20, 1990]



Sec. 3.22  Definitions.

    In this subpart:
    (a) Debt management officer means an agency employee responsible for 
collection by administrative offset of debts owed the United States.
    (b) Contracting officer has the same meaning as in 41 U.S.C. 601.
    (c) Creditor agency means a Federal agency to whom a debtor owes a 
monetary debt. It need not be the same agency that effects the offset.
    (d) Offsetting agency means an agency that withholds from its 
payment to a debtor an amount owed by the debtor to a creditor agency, 
and assures that the funds are paid to the creditor agency to be applied 
to the debt.
    (e) Reviewing officer means an agency employee responsible for 
conducting a hearing or providing documentary review on the existence of 
the debt and the propriety of administrative offset.

[50 FR 7722, Feb. 26, 1985, as amended at 55 FR 38662, Sept. 20, 1990]



Sec. 3.23  Collection by administrative offset.

    (a) Whenever feasible, each agency of the Department of Agriculture 
must

[[Page 265]]

use, or request any other Federal agency to use, administrative offset 
in accordance with 31 U.S.C. 3716 and 4 CFR 102.3 to collect debts due 
the United States. The debt need not be reduced to judgment or be 
undisputed.
    (b) The feasibility of collecting a debt by administrative offset 
will be determined on a case-by-case basis considering among other 
factors the following:
    (1) Legal impediments to administrative offset, such as contract 
provisions, or degree of certainty as to the factual basis (other than 
the debt amount) of the Government's claim.
    (2) Practicality, considering such questions as costs in time and 
money of administrative offset relative to the size of the debt.
    (3) Whether offset would substantially interfere with or defeat the 
purposes of a program authorizing payments against which offset is 
contemplated, as where payment is an advance for future performance by 
the debtor of a service the Government desires.
    (4) Whether the agency has substantiated the existence of the debt.
    (c) The offset will be effected 31 days after the debtor receives a 
Notice of Intent to Collect by Administrative Offset, or when a stay of 
offset expires, unless the agency determines under Sec. 3.26 that 
immediate action is necessary. If the debtor owes more than one debt, 
amounts recovered through administrative offset may be applied to them 
in any order, with attention to applicable statutes of limitation.
    (d) These procedures will be used to collect any debt subject to 31 
U.S.C. 3716, including contract debts, but not including 
intracontractual claims or intracontractual disputes. A contracting 
officer administering a claim under the Contract Disputes Act (CDA), 41 
U.S.C. 601-613 must promptly refer the claim to the agency debt 
management officer for consideration of administrative offset apart from 
CDA proceedings.
    (e) An agency debt management officer will determine the prima facie 
existence of the debt, the feasibility of administrative offset as a 
means of collection and what monies, if any, are payable or may become 
payable to the debtor. No agency employee may act as debt management 
officer for the consideration of collection by administrative offset in 
a matter for which the employee was a contracting officer.
    (f) An agency reviewing officer will afford debtors review of the 
issue of administrative offset under these rules. No agency employee may 
act as a reviewing officer for the consideration of collection by 
administrative offset in a matter for which the employee was a 
contracting officer or a debt management officer.

[50 FR 7722, Feb. 26, 1985, as amended at 55 FR 38662, Sept. 20, 1990]



Sec. 3.24  Coordinating administrative offset with other Federal agencies.

    (a) A Government list or other notice, naming debtors and their 
creditor agencies, which is provided to USDA will constitute a request 
for administrative offset.
    (b) Any agency which requests another agency to effect 
administrative offset must certify that the debtor owes the debt 
(including the amount and basis of the debt and the due date of the 
payment) and that all of the applicable requirements of 31 U.S.C. 3716 
and 4 CFR part 102 have been met.
    (c) An agency which is requested by another agency to effect 
administrative offset must not do so without obtaining a written 
certification that the debtor owes the creditor agency a debt (including 
the amount and basis of the debt and the due date of the payment) and 
that all of the applicable requirements of 31 U.S.C. 3716 and 4 CFR part 
102 have been met. An offsetting USDA agency may rely on the information 
contained in a requesting creditor agency's certification.
    (d) Only a creditor agency may agree to an installment repayment 
system or compromise, suspension or termination of the collection 
process.
    (e) A USDA agency which is requested by another agency to effect 
administrative offset may decline for good cause. Good cause includes 
direct or indirect disruption of the offsetting agency's essential 
program operations that might result from the offset. The refusal and 
the reasons must be sent in writing to the creditor agency.

[[Page 266]]



Sec. 3.25  Notice requirements before offset.

    (a) Before an agency effects administrative offset, the creditor 
agency must provide the debtor with a minimum of 30 calendar days' 
written notice that unpaid debt amounts will be collected by 
administrative offset against any money that the United States is going 
to pay to the debtor, unless the creditor agency determines immediate 
action is necessary under Sec. 3.26, or the debtor enters into a 
repayment agreement or requests review.
    (b) The Notice of Intent to Collect by Administrative Offset must be 
served on the debtor by personal delivery or certified mail and will 
state:
    (1) The amount of the debt, the date it was incurred, the name and 
address of the offsetting agency, and the program under which the debt 
was incurred.
    (2) The rate of interest accrued from the date of mailing or other 
delivery of the initial demand letter, and the amount of any other 
penalties or administrative costs added to the principal debt.
    (3) The creditor agency's intention to collect the debt by 
administrative offset against any funds that might become available, 
until the principal debt and all accumulated interest and other charges 
are paid in full.
    (4) The date on which administrative offset will be effected, unless 
the creditor agency determines immediate action is necessary under 
Sec. 3.26, or the debtor enters into a repayment agreement or requests a 
review.
    (5) That the debtor has a right to inspect and copy agency or other 
Department records related to the debt. The debtor must pay copying 
costs unless they are waived by the agency.
    (6) That the debtor may enter into a written agreement to repay the 
debt, which must be approved by the creditor agency.
    (7) That the debtor has a right to obtain review of the agency's 
determination that the debt exists and the propriety of administrative 
offset.
    (8) That a repayment agreement or request for review may be sought 
only from the creditor agency and not the offsetting agency.
    (9) Time limitations and other procedures or conditions imposed by 
the agency.
    (10) The address to which the debtor should send all correspondence 
relating to the offset.
    (c) Any demand for payment will include a Notice of Intent to 
Collect by Administrative Offset, even if the debt is not delinquent at 
the time the letter is sent.

[50 FR 7722, Feb. 26, 1985, as amended at 55 FR 38662, Sept. 20, 1990]



Sec. 3.26  Exceptions to notice requirements.

    (a) When the procedural requirements of Sec. 3.25 have been met by 
the creditor agency or under some other statutory or regulatory 
authority, an agency need not duplicate the notice before effecting 
administrative offset.
    (b) A USDA agency may effect administrative offset against a payment 
to be made to a debtor before completion of the procedures in Sec. 3.25 
when the agency finds, or is advised by the requesting creditor agency, 
that:
    (1) Failure to take the offset would substantially prejudice the 
Government's ability to collect the debt, such as where possible 
insolvency of the debtor might encourage competition among creditors for 
funds, or where expiration of a statute of limitations is imminent; and
    (2) The time before the payment is to be made does not reasonably 
permit the completion of these procedures.
    (c) The finding required by paragraph (b) of this section must be 
furnished by the offsetting agency to the debtor in writing as soon as 
reasonably possible after the offset is effected. Promptly after 
administrative offset is effected under this subsection, the creditor 
agency must give the debtor the notice required by Sec. 3.25.
    (d) An offsetting USDA agency may rely on the information contained 
in a creditor agency's request for administrative offset under this 
section.



Sec. 3.27  Inspection of USDA records related to the debt.

    A debtor who intends to inspect or copy agency or Departmental 
records with respect to the claim action must notify the agency in 
writing within 20

[[Page 267]]

calendar days of the date the Notice of Intent to Offset was delivered 
to the debtor. In response, the agency must notify the debtor of the 
location, time, and any other conditions, consistent with part 1, 
subpart A of this title, for inspecting and copying, and that the debtor 
may be liable for reasonable copying expenses.

[50 FR 7722, Feb. 26, 1985, as amended at 55 FR 38662, Sept. 20, 1990]



Sec. 3.28  Written agreements to repay debt as alternative to administrative offset.

    The debtor may, in response to Notice of Intent to Collect by 
Administrative Offset, propose to the creditor agency a written 
agreement to repay the debt as an alternative to administrative offset. 
Any debtor who wishes to do this must submit a written proposal for 
repayment of the debt, which must be received by the creditor agency 
within 20 calendar days of the date the notice was delivered to the 
debtor. In response, the creditor agency must notify the debtor in 
writing whether the proposed agreement is acceptable. In exercising its 
discretion, the creditor agency must balance the Government's interest 
in collecting the debt against fairness to the debtor.



Sec. 3.29  Hearings and reviews.

    (a) A debtor who receives a Notice of Intent to Collect by 
Administrative Offset may request a hearing or documentary review of the 
agency's determination that the debt exists and the propriety of 
administrative offset. Any debtor who wishes to do this must submit a 
written explanation of why the debtor disagrees and seeks review. The 
request must be received by the creditor agency within 20 calendar days 
of the date the notice was delivered to the debtor.
    (b) In response, the creditor agency must notify the debtor in 
writing whether the review will be by documentary review or by hearing. 
If the debtor requests a hearing, and the creditor agency decides to 
conduct a documentary review, the agency must notify the debtor of the 
reason why a hearing will not be granted. The agency must also advise 
the debtor of the procedures to be used in reviewing the documentary 
record, or of the date, location and procedures to be used if review is 
by a hearing.
    (c) Unless otherwise arranged by mutual agreement between the debtor 
and the agency, evidenced in writing, any documentary review or hearing 
will be conducted not less than 10 calendar days and no more than 45 
calendar days after receipt of the request for review.
    (d) Unless otherwise arranged by mutual agreement between the debtor 
and the agency, evidenced in writing, a documentary review or hearing 
will be based on agency records plus other relevant documentary evidence 
which may be submitted by the debtor within 10 calendar days after the 
request for review is received.
    (e)(1) Hearings will be as informal as possible, and will be 
conducted by a reviewing officer in a fair and expeditious manner. The 
reviewing officer need not use the formal rules of evidence with regard 
to the admissibility of evidence or the use of evidence once admitted. 
However, clearly irrelevant material should not be admitted, whether or 
not any party objects. Any party to the hearing may offer exhibits, such 
as copies of financial records, telephone memoranda, or agreements, 
provided the opposing party is notified at least 5 days before the 
hearing.
    (2) Debtors may represent themselves or may be represented at their 
own expense by an attorney or other person.
    (3) The substance of all significant matters discussed at the 
hearing must be recorded. No official record or transcript of the 
hearing need be created, but if a debtor requested that a transcript be 
made, it will be at the debtor's expense.
    (f)(1) Within no more than 30 calendar days after the hearing or the 
documentary review, the reviewing officer will issue a written decision 
to the debtor and the agency, including the supporting rationale for the 
decision. The deadline for issuance of the decision may be extended by 
the reviewing officer for good cause for no more than 30 calendar days, 
and beyond the 30 calendar days extension only with the consent of the 
debtor. The decision need not be lengthy or formal in style, but must 
address the substantive issues. The decision should

[[Page 268]]

address any significant procedural matter which was in dispute before or 
during the hearing or documentary review.
    (2) The reviewing officer's decision constitutes final agency action 
as to the following issues:
    (i) All issues of fact relating to the basis of the debt (including 
the existence of the debt and the propriety of administrative offset), 
in cases where the debtor previously had not been afforded due process; 
and
    (ii) The existence of the debt and the propriety of administrative 
offset, in cases where the debtor previously had been afforded due 
process as to issues of fact relating to the basis of the debt.
    (g) The reviewing officer will promptly distribute copies of the 
decision to the Assistant Secretary for Administration, USDA and to the 
debtor and the debtor's representative.

[50 FR 7722, Feb. 26, 1985, as amended at 55 FR 38662, Sept. 20, 1990]



Sec. 3.30  Stay of offset.

    (a)(1) Unless otherwise arranged by mutual agreement between the 
debtor and the agency, evidenced in writing, when an agency receives a 
debtor's request for inspection of agency records, the offset is stayed 
for no longer than 10 calendar days beyond the date set by the creditor 
agency for the record inspection.
    (2) When an agency receives a debtor's proposal for a repayment 
agreement, the offset is stayed until the debtor is notified as to 
whether the proposed agreement is acceptable.
    (3) When a review is conducted, the offset is stayed until the 
creditor agency issues a final written decision.
    (b) When administrative offset is stayed, the amount of the debt and 
interest will be withheld from payments to the debtor, but not applied 
against the debt until the stay expires. If withheld funds are later 
determined not to be subject to offset, they will be promptly refunded 
to the debtor.
    (c) When administrative offset is stayed, the creditor agency will 
immediately notify an offsetting agency to withhold the payment pending 
termination of the stay.

[50 FR 7722, Feb. 26, 1985, as amended at 55 FR 38663, Sept. 20, 1990]



Sec. 3.31  Agency procedures.

    (a) Any USDA agency may publish in the Federal Register, by rule or 
notice, a listing by category of the order in which any funds it holds 
for or intends to pay to a person may be reached by administrative 
offset.
    (b) For principal debts of $600 or more, an agency head may direct 
that no compromise be made, or no collection action suspended or 
terminated without advice from the USDA General Counsel.



Sec. 3.32  Offset against amounts payable from Civil Service retirement and disability fund.

    An agency may request that monies payable to a debtor from the Civil 
Service Retirement and Disability Fund be administratively offset to 
collect debts owed to the agency by the debtor. The creditor agency must 
certify that the debtor owes the debt, the amount of the debt, and that 
the creditor agency has complied with 4 CFR 102.4 and Office of 
Personnel Management regulations. The request must be submitted to the 
official designated in Office of Personnel Management regulations.

[50 FR 7722, Feb. 26, 1985, as amended at 55 FR 38663, Sept. 20, 1990]



Sec. 3.33  Offset of debtor's judgment against the United States.

    Collection by offset against a judgment obtained by a debtor against 
the United States must be effected in accordance with 31 U.S.C. 3728.



Sec. 3.34  Interest, penalties and administrative costs.

    (a) USDA creditor agencies must attempt to collect interest, 
penalties and administrative costs on any delinquent debts owed to the 
United States in accordance with 4 CFR 102.13 and 102.14, or according 
to written documentation constituting the basis of the debt, or under 
any guidelines issued by the Assistant Secretary for Administration or 
by the creditor agency's fiscal officer.

[[Page 269]]

    (1) Interest will not be assessed on interest, penalties or 
administrative costs. However, if a debtor defaults on a repayment 
agreement, interest which has accrued but was not collected under the 
defaulted agreement will be added to the principal to be paid under a 
new repayment agreement.
    (2) Agencies will assess a penalty of six percent a year on any 
unpaid debt balance delinquent for more than 90 days. This charge 
accrues from the date the debt becomes delinquent.
    (3) Agencies will charge the debtor for administrative costs 
incurred in processing and handling a delinquent debt. Administrative 
costs may include costs of obtaining credit reports, using a private 
debt collector, or selling collateral or property to satisfy the debt.
    (b) Agencies will waive the collection of interest assessed under 
these regulations on a delinquent debt or any portion of that debt which 
is paid within 30 days after the date on which interest began to accrue. 
Agencies may extend the 30-day period on a case-by-case basis, if it is 
determined that an extension is appropriate because of partial or 
complete absence of culpability by the debtor for the delay in payment.
    (c) Agencies may waive collection of all or part of the interest, 
penalties, and administrative costs assessed under these regulations 
when it is determined:
    (1) That the Government cannot collect the full amount of the 
delinquent debt or interest and costs because of the debtor's inability 
to pay the full amount within a reasonable time (considering such 
factors as those listed at 4 CFR 103.2(b)), or the debtor's refusal to 
pay the full amount where the Government is unable to effect collection 
in full within a reasonable time; or
    (2) That there is a real doubt concerning the Government's ability 
to recover interest, penalties or costs in court, either because of the 
legal or equitable issues involved or because the facts are being 
disputed in court; or
    (3) That the cost of collecting the delinquent debt with interest, 
penalties, or costs outweighs the amounts to be recovered; or
    (4) That the collection of some or all of these charges would be 
against equity and good conscience or not in the best interests of the 
United States; or
    (5) (For waiver of interest) that a request is pending for 
reconsideration, administrative review, or waiver of the underlying 
delinquent debt under a statute allowing but not requiring one or more 
of these remedies. If the statute under which review or waiver is sought 
by the debtor prohibits the agency from collecting the delinquent debt 
before resolution of the review or waiver request, interest, penalties 
and administrative costs must be waived during the period in which 
collection action is stayed. Otherwise, interest, penalties and 
administrative costs will not be waived except for a separate reason 
included in this section; or
    (6) (For waiver of interest) that the agency has agreed to a 
repayment plan consistent with 4 CFR 102.11 and with Sec. 3.28 of this 
subpart, there is no indication of fault or lack of good faith by the 
debtor, and the amount of interest is sufficiently large relative to the 
size of the installments reasonably affordable by the debtor that the 
principal debt would never be repaid; or
    (7) The debt is repaid after the date on which interest, penalties 
and administrative costs became payable and the estimated costs of 
recovering the remaining interest balance exceed the amount owed to the 
agency.
    (d) The creditor agency must document its reasons for waiving 
interest, penalties, or administrative costs. This documentation must be 
retained by the agency for at least three years.

[50 FR 7722, Feb. 26, 1985, as amended at 55 FR 38663, Sept. 20, 1990]



Sec. 3.35  Disclosure to a credit reporting agency.

    (a) The Department may report all commercial debts and all 
delinquent consumer debts to credit reporting agencies. The Department 
need not report foreign debts, or the debts of State and local 
governments, Indian tribal governments, or other public institutions.
    (b) Disclosure of delinquent consumer debts must be consistent with 
the requirements of 31 U.S.C. 3711(f), 4 CFR

[[Page 270]]

102.3(c), and 5 U.S.C. 552a (the Privacy Act).

[50 FR 7722, Feb. 26, 1985, as amended at 55 FR 38663, Sept. 20, 1990]



Sec. 3.36  Use of collection agencies.

    USDA agencies should use collection agencies at any time accounts 
become delinquent. Agencies must refer all accounts 6 months or more 
delinquent unless other collection actions are being pursued or referral 
is prohibited by statute.

[55 FR 38663, Sept. 20, 1990]



                        Subpart C--Salary Offset

    Authority: 5 U.S.C. 5514; 5 CFR part 550, subpart K.

    Source: 51 FR 8995, Mar. 17, 1986, unless otherwise noted.



Sec. 3.51  Scope.

    (a) The provisions of this subpart set forth the Department's 
procedures for the collection of a Federal employee's pay by salary 
offset to satisfy certain valid and past due debts owed the government.
    (b) These regulations apply to:
    (1) Current employees of the Department and other agencies who owe 
debts to the Department; and
    (2) Current employees of the Department who owe debts to other 
agencies.
    (c) These regulations do not apply to debts or claims arising under 
the Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.); the Social 
Security Act (42 U.S.C. 301 et seq.); the tariff laws of the United 
States; or to any case where collection of a debt by salary offset is 
explicitly provided for or prohibited by another statute.
    (d) These regulations identify the types of salary offset available 
to the Department, as well as certain rights provided to the employee, 
which include a written notice before deductions begin, the opportunity 
to petition for a hearing and to receive a written decision if a hearing 
is granted. These employee rights do not apply to any adjustment to pay 
arising out of an employee's election of coverage or a change in 
coverage under a Federal benefits program requiring periodic deductions 
from pay, if the amount to be recovered was accumulated over four pay 
periods or less.
    (e) These regulations do not preclude an employee from:
    (1) Requesting waiver of a salary overpayment under 5 U.S.C. 5584, 
10 U.S.C. 2774, or 32 U.S.C. 716;
    (2) Requesting waiver of any other type of debt, if waiver is 
available by statute; or
    (3) Questioning the amount or validity of a debt by submitting a 
subsequent claim to the General Accounting Office.
    (f) Nothing in these regulations precludes the compromise, 
suspension or termination of collection actions where appropriate under 
the Department's regulations contained elsewhere.



Sec. 3.52  Definitions.

    (a) Agency means:
    (1) An Executive Agency as defined by section 105 of title 5 U.S.C., 
the U.S. Postal Service, the U.S. Postal Rate Commission; and
    (2) A Military Department as defined by section 102 of title 5, 
U.S.C.
    (b) Debt means:
    (1) An amount owed to the United States from sources which include, 
but are not limited to, insured or guaranteed loans, fees, leases, 
rents, royalties, services, sales of real or personal property, 
overpayments, penalties, damages, interest, fines and forfeitures 
(except those arising under the Uniform Code of Military Justice).
    (2) An amount owed to the United States by an employee for pecuniary 
losses where the employee has been determined to be liable due to his or 
her negligent, willful, unauthorized or illegal acts, including but not 
limited to:
    (i) Theft, misuse, or loss of Government funds;
    (ii) False claims for services and travel;
    (iii) Illegal, unauthorized obligations and expenditures of 
Government appropriations;
    (iv) Using or authorizing the use of Government owned or leased 
equipment, facilities, supplies, and services for other than official or 
approved purposes;
    (v) Lost, stolen, damaged, or destroyed Government property;

[[Page 271]]

    (vi) Erroneous entries on accounting records or reports; and
    (vii) Deliberate failure to provide physical security and control 
procedures for accountable officers, if such failure is determined to be 
the approximate cause for a loss of Government funds.
    (c) Department or USDA means the United States Department of 
Agriculture.
    (d) Disposable pay means any pay due an employee that remains after 
required deductions for Federal, State and Local income taxes; Social 
Security taxes, including Medicare taxes; Federal retirement programs; 
premiums for life and health insurance benefits; and such other 
deductions required by law to be withheld.
    (e) Employee means a current employee of an agency, including a 
current member of the Armed Forces or a Reserve of the Armed Forces.
    (f) Hearing official means an administrative law judge of the 
Department or some other individual not under the control of the 
Secretary.
    (g) Salary offset means a deduction of a debt by deduction(s) from 
the disposable pay of an employee without his or her consent.
    (h) Secretary means the Secretary of the U.S. Department of 
Agriculture or his or her designee.
    (i) Waiver means the cancellation, remission, forgiveness, or non-
recovery of a debt owed by an employee to an agency as permitted or 
required by 5 U.S.C. 5584, 10 U.S.C. 2774, or 32 U.S.C. 716, 5 U.S.C. 
8346(b) or any other law.



Sec. 3.53  Coordinating offset with another Federal agency.

    (a) When USDA is owed the debt. When USDA is owed a debt by an 
employee of another agency, the other agency shall not initiate the 
requested offset until USDA provides the agency with a written 
certification that the debtor owes USDA a debt (including the amount and 
basis of the debt and the due date of the payment) and that USDA has 
complied with these regulations.
    (b) When another agency is owed the debt. The Department may use 
salary offset against one of its employees who is indebted to another 
agency, if requested to do so by that agency. Such a request must be 
accompanied by a certification by the requesting agency that the person 
owes the debt (including the amount and basis of the debt and the due 
date of the payment) and that the agency has complied with its 
regulations required by 5 U.S.C. 5514 and 5 CFR part 550, subpart K.



Sec. 3.54  Determination of indebtedness.

    (a) In determining that an employee is indebted to USDA and that 4 
CFR parts 101 through 105 have been satisfied and that salary offset is 
appropriate, the Secretary will review the debt to make sure that it is 
valid and past due.
    (b) If the Secretary determines that any of the requirements of 
paragraph (a) of this section have not been met, no determination of 
indebtedness shall be made and salary offset will not proceed until the 
Secretary is assured that the requirements have been met.



Sec. 3.55  Notice requirements before offset.

    Except as provided in Sec. 3.51(d), salary offset will not be made 
unless the Secretary first provides the employee with a minimum of 30 
calendar days written notice. This Notice of Intent to Offset Salary 
(Notice of Intent) will state:
    (a) That the Secretary has reviewed the records relating to the debt 
and has determined that a debt is owed, the amount of the debt, and the 
facts giving rise to the debt;
    (b) The Secretary's intention to collect the debt by means of 
deduction from the employee's current disposable pay until the debt and 
all accumulated interest are paid in full;
    (c) The amount, frequency, approximate beginning date, and duration 
of the intended deductions;
    (d) An explanation of the Department's requirements concerning 
interest, penalties and administrative costs; unless such payments are 
waived in accordance with 31 U.S.C. 3717 and Sec. 3.34;
    (e) The employee's right to inspect and copy Department records 
relating to the debt;

[[Page 272]]

    (f) The employee's right to enter into a written agreement with the 
Secretary for a repayment schedule differing from that proposed by the 
Secretary, so long as the terms of the repayment schedule proposed by 
the employee are agreeable to the Secretary;
    (g) The right to a hearing conducted by a hearing official on the 
Secretary's determination of the debt, the amount of the debt, or 
percentage of disposable pay to be deducted each pay period, so long as 
a petition is filed by the employee as prescribed by the Secretary;
    (h) That the timely filing of a petition for hearing will stay the 
collection proceedings;
    (i) That a final decision on the hearing will be issued at the 
earliest practical date, but not later than 60 calendar days after the 
filing of the petition requesting the hearing, unless the employee 
requests, and the hearing officer grants, a delay in the proceedings;
    (j) That any knowingly false or frivolous statements, 
representations, or evidence may subject the employee to:
    (1) Disciplinary procedures appropriate under 5 U.S.C. chapter 75, 5 
CFR part 752, or any other applicable statutes or regulations;
    (2) Penalties under the False Claims Act, 31 U.S.C. 3729-3731, or 
any other applicable statutory authority; or
    (3) Criminal penalties under 18 U.S.C. 286, 287, 1001, and 1002 or 
any other applicable statutory authority;
    (k) Any other rights and remedies available to the employee under 
statutes or regulations governing the program for which the collection 
is being made;
    (l) That amounts paid on or deducted for the debt which are later 
waived or found not owed to the United States will be promptly refunded 
to the employee, unless there are applicable contractual or statutory 
provisions to the contrary;
    (m) The method and time period for requesting a hearing; and
    (n) The name and address of an official of USDA to whom 
communications should be directed.



Sec. 3.56  Request for a hearing.

    (a) Except as provided in paragraph (c) of this section, an employee 
must file a petition for a hearing, that is received by the Secretary 
not later than 30 calendar days from the date of the Department's notice 
described in Sec. 3.55, if an employee wants a hearing concerning:
    (1) The existence or amount of the debt; or
    (2) The Secretary's proposed offset schedule (including percentage).
    (b) The petition must be signed by the employee and should identify 
and explain with reasonable specificity and brevity the facts, evidence 
and witnesses which the employee believes support his or her position. 
If the employee objects to the percentage of disposable pay to be 
deducted from each check, the petition should state the objection and 
the reasons for it.
    (c) If the employee files a petition for hearing later than the 30 
calendar days as described in paragraph (a) of this section, the hearing 
officer may accept the request if the employee can show that the delay 
was because of circumstances beyond his or her control or because of 
failure to receive notice of the filing deadline (unless the employee 
has actual notice of the filing deadline).



Sec. 3.57  Result if employee fails to meet deadlines.

    An employee will not granted a hearing and will have his or her 
disposable pay offset in accordance with the Secretary's offset schedule 
if the employee:
    (a) Fails to file a petition for a hearing as prescribed in 
Sec. 3.56; or
    (b) Is scheduled to appear and fails to appear at the hearing.



Sec. 3.58  Hearings.

    (a) If an employee timely files a petition for a hearing under 
Sec. 3.56, the Secretary shall select the time, date, and location for 
the hearing.
    (b)(1) Hearings shall be conducted by an appropriately designated 
hearing official; and
    (2) Rules of evidence shall not be adhered to, but the hearing 
official shall consider all evidence that he or she determines to be 
relevant to the debt that is the subject of the hearing and weigh it 
accordingly, given all of the facts and circumstances surrounding the 
debt.

[[Page 273]]

    (c) USDA will have the burden of going forward to prove the 
existence of the the debt.
    (d) The employee requesting the hearing shall bear the ultimate 
burden of proof.
    (e) The evidence presented by the employee must prove that no debt 
exists or cast sufficient doubt such that reasonable minds could differ 
as to the existence of the debt.



Sec. 3.59  Written decision following a hearing.

    Written decisions provided after a hearing will include:
    (a) A statement of the facts presented at the hearing to support the 
nature and origin of the alleged debt and those presented to refute the 
debt;
    (b) The hearing officer's analysis, findings and conclusions, 
considering all of the evidence presented and the respective burdens of 
the parties, in light of the hearing;
    (c) The amount and validity of the alledged debt determined as a 
result of the hearing; and
    (d) There payment schedule (including percentage of disposable pay), 
if applicable.
    (e) The determination of the amount of the debt at this hearing is 
the final agency action on this matter.



Sec. 3.60  Review of Departmental record related to the debt.

    (a) Notification by employee. An employee who intends to inspect or 
copy Departmental records related to the debt must send a letter to the 
Secretary stating his or her intention. The letter must be received by 
the Secretary within 30 calendar days of the date of the Notice of 
Intent.
    (b) Secretary's response. In response to the timely notice submitted 
by the debtor as described in paragraph (a) of this section, the 
Secretary will notify the employee of the location and time when the 
employee may inspect and copy Departmental records related to the debt.



Sec. 3.61  Written agreement to repay debt as alternative to salary offset.

    (a) Notification by employee. The employee may propose, in response 
to a Notice of Intent, a written agreement to repay the debt as an 
alternative to salary offset. Any employee who wishes to do this must 
submit a proposed written agreement to repay the debt which is received 
by the Secretary within 30 calendar days of the date of the Notice of 
Intent.
    (b) Secretary's response. The Secretary will notify the employee 
whether the employee's prosposed written agreement for repayment is 
acceptable. The Secretary may accept a repayment agreement instead of 
proceeding by offset. In making this determination, the Secretary will 
balance the Department's interest in collecting the debt against 
hardship to the employee. If the debt is delinquent and the employee has 
not disputed its existence or amount, the Secretary will accept a 
repayment agreement, instead of offset, for good cause such as, if the 
employee is able to establish that offset would result in undue 
financial hardship or would be against equity and good conscience.



Sec. 3.62  Procedures for salary offset: when deductions may begin.

    (a) Deductions to liquidate an employee's debt will be by the method 
and in the amount stated in the Secretary's Notice of Intent to collect 
from the employee's current pay.
    (b) If the employee filed a petition for a hearing with the 
Secretary before the expiration of the period provided for in Sec. 3.56 
then deductions will begin after the hearing officer has provided the 
employee with a hearing, and a final written decision has been rendered 
in favor of the Secretary.
    (c) If an employee retires or resigns before collection of the 
amount of the indebtedness is completed, the remaining indebtedness will 
be collected according to the procedures for administrative offset (see 
subpart B of this part).



Sec. 3.63  Procedures for salary offset: types of collection.

    A debt will be collected in a lump-sum or in installments. 
Collection will be by lump-sum collection unless the employee is 
financially unable to pay in one lump-sum, or if the amount of the debt 
exceeds 15 percent of disposable pay for an ordinary pay period. In

[[Page 274]]

these cases, deduction will be by installments, as set forth in 
Sec. 3.64.



Sec. 3.64  Procedures for salary offset: methods of collection.

    (a) General. A debt will be collected by deductions at officially-
established pay intervals from an employee's current pay account, unless 
the employee and the Secretary agree to alternative arrangements for 
repayment under Sec. 3.61.
    (b) Installment deductions. Installment deductions will be made over 
a period not greater than the anticipated period of employment. The size 
and frequency of installment deductions will bear a reasonable relation 
to the size of the debt and the employee's ability to pay. However, the 
amount deducted for any period will not exceed 15 percent of the 
disposable pay from which the deduction is made, unless the employee has 
agreed in writing to the deduction of a greater amount. If possible, the 
installment payment will be sufficient in size and frequency to 
liquidate the debt in no more than three years. Installment payments of 
less than $25 per pay period or $50 a month will be accepted only in the 
most unusual circumstances.
    (c) Sources of deductions. The Department will make deductions only 
from basic pay, special pay, incentive pay, retired pay, retainer pay, 
or in the case of an employee not entitled to basic pay, other 
authorized pay.



Sec. 3.65  Procedures for salary offset: imposition of interest, penalties and administrative costs.

    Interest, penalties and administrative costs will be charged in 
accordance with 4 CFR 102.13.



Sec. 3.66  Nonwaiver of rights.

    So long as there are no statutory or contractual provisions to the 
contrary, no employee payment (or all or portion of a debt) collected 
under these regulations will be interpreted as a waiver of any rights 
that the employee may have under 5 U.S.C. 5514.



Sec. 3.67  Refunds.

    The Department will refund promptly to the appropriate individual 
amounts offset under these regulations when:
    (a) A debt is waived or otherwise found not owing the United States 
(unless expressly prohibited by statute or regulation); or
    (b) The Department is directed by an administrative or judicial 
order to refund deducted from the employee's current pay.



Sec. 3.68  Agency regulations.

    The Head of each USDA agency is delegated the authority to act for 
the Secretary under these regulations and may issue regulations or 
policies not inconsistent with Office of Personnel Management 
regulations (5 CFR part 550, subpart K) and regulations in this subpart 
governing the collection of a debt by salary offset.



        Subpart D--Cooperation with the Internal Revenue Service

    Authority: 26 U.S.C. 61, 31 U.S.C. 3720A, I TFRM 4055.50.



Sec. 3.81  Reporting discharged debts to the Internal Revenue Service.

    When the Department discharges a debt for less than the full value 
of the indebtedness it will report the outstanding balance discharged, 
not including interest, to the Internal Revenue Service, using IRS Form 
1099-G or any other form prescribed by the Service, when:
    (a) The principal amount of the debt not in dispute is $600 or more; 
and
    (b) The obligation has not been discharged in a bankruptcy 
proceeding; and
    (c) The obligation is no longer collectible either because the time 
limit in the applicable statute for enforcing collection expired during 
the tax year, or because during the year a formal compromise agreement 
was reached in which the debtor was legally discharged of all or a 
portion of the obligation.

[50 FR 7726, Feb. 26, 1985]



Sec. 3.82  Offset against tax refunds.

    The Department will take action to effect administrative offset 
against tax refunds due to debtors under 26 U.S.C. 6402, in accordance 
with the provisions

[[Page 275]]

of 31 U.S.C. 3720A and Treasury Department regulations.

[50 FR 7726, Feb. 26, 1985]



PART 4 [RESERVED]






PART 5--DETERMINATION OF PARITY PRICES--Table of Contents




Sec.
5.1  Parity index and index of prices received by farmers.
5.2  Marketing season average price data.
5.3  Selection of calendar year price data.
5.4  Commodities for which parity prices shall be calculated.
5.5  Publication of season average, calendar year, and parity price 
          data.
5.6  Revision of the parity price of a commodity.

    Authority: Secs. 375 and 301, 52 Stat. 66, 38; 7 U.S.C. 1375, 1301.



Sec. 5.1   Parity index and index of prices received by farmers.

    (a) The parity index and related indices for the purpose of 
calculating parity prices after May 1, 1976, according to the formula 
contained in section 301(a) of the Agricultural Adjustment Act of 1938, 
as amended by the Agricultural Acts of 1948, 1949, 1954, and 1956 
(hereinafter referred to as section 301(a)) shall be the index of prices 
paid by farmers, interest, taxes, and farm wage rates, as revised May 
1976 and published in the May 28, 1976, and subsequent issues of the 
monthly report, ``Agricultural Prices.'' The publication of these 
indices by the Statistical Reporting Service in the monthly report, 
``Agricultural Prices'', shall be continued.
    (b) The measure of the general level of prices received by farmers 
as provided for in section 301(a)(1)(B)(ii) after January 1, 1959, shall 
be the index of prices received by farmers as revised January 1959 and 
published in the January 30, 1959, and subsequent issues of 
``Agricultural Prices''. The simple average of the 120 monthly indices 
included in the preceding 10 calendar years plus an adjustment to take 
account of the effect on the index of any adjustment made on average 
prices of individual commodities as hereinafter specified shall be used 
in the calculation of the adjusted base prices. Parity prices heretofore 
published for periods prior to January 1, 1959 shall not be revised.
    (c) The term milkfat as used in these regulations is synonymous with 
the term butterfat, and when any statute requires calculation of the 
parity price of butterfat, the parity price of milkfat shall be the 
parity price of butterfat.

[24 FR 697, Jan. 31, 1959, as amended by Amdt. 6, 24 FR 9778, Dec. 5, 
1959; Amdt. 29, 41 FR 22333, June 3, 1976]



Sec. 5.2   Marketing season average price data.

    It is hereby found that it is impractical to use averages of prices 
received by farmers on a calendar year basis for the following 
agricultural commodities for the purpose of calculating adjusted base 
prices and, therefore, marketing season average prices will be used. An 
allowance for any supplemental payment resulting from price support 
operations shall be included in the determination of the adjusted base 
prices. For cigar binder tobacco, types 51-52, for each of the marketing 
seasons beginning in the years 1949 through 1958, 37.9 cents per pound 
shall be used in lieu of the average of prices received by farmers for 
such tobacco during each such marketing season.

                            Basic Commodities

    Extra long staple cotton; peanuts; rice, and the following types of 
tobacco: Flue-cured, types 11-14; Virginia fire-cured, type 21; 
Kentucky-Tennessee fire-cured, types 22-23; burley, type 31; dark air-
cured, types 35-36; sun-cured, type 37; Pennsylvania seedleaf, type 41; 
cigar filler and binder, types 42-44 and 53-55; Puerto Rican filler, 
type 46 (price refers to year of harvest); and cigar binder, types 51-
52.

                     Designated Nonbasic Commodities

    Tung nuts; honey, wholesale extracted.

                             Wool and Mohair

    Wool and mohair (including payments made under terms of Sec. 704 of 
the National Wool Act of 1954).

                       Other Nonbasic Commodities

                              citrus fruit

    Grapefruit; lemons; limes; oranges; tangerines; and Temples.

[[Page 276]]

                        deciduous and other fruit

    Apples for processing; apricots for fresh consumption; apricots for 
processing (except dried); dried apricots; avocados; blackberries; 
boysenberries; gooseberries; loganberries; black raspberries; red 
raspberries; youngberries; tart cherries; sweet cherries; cranberries; 
dates; grapes, raisins, dried; all grapes excluding raisins, dried; 
nectarines for fresh consumption, nectarines for processing; olives for 
processing (except crushed for oil); olives, crushed for oil; olives for 
canning; papayas (Hawaii), for fresh consumption; peaches for fresh 
consumption; clingstone peaches for processing (except dried); freestone 
peaches for processing (except dried); dried peaches; pears for fresh 
consumption; pears for processing (except dried); dried pears; plums 
(California), for fresh consumption; plus (California), for processing; 
dried prunes (California); prunes and plums (excluding California), for 
processing (except dried); strawberries for fresh consumption; and 
strawberries for processing.

                               Seed Crops

    Alfalfa, bentgrass, crimson clover, Chewings fescue, red fescue, 
tall fescue, Marion Kentucky bluegrass, Ladino clover, lespedeza, 
orchard grass, red clover, timothy, and hairy vetch.

                               sugar crops

    Sugar beets (including conditional payment under the Sugar Act), 
sugarcane for sugar (including conditional payment under the Sugar Act).

                                tree nuts

    Almonds; filberts; pecans, all; and walnuts.

                       vegetables for fresh market

    Artichokes, asparagus, snap beans, broccoli, cabbage, cantaloupe, 
carrots, cauliflower, celery, sweet corn, cucumbers, eggplant, escarole, 
garlic, honeydew melons, lettuce, onions, green peppers, spinach, 
tomatoes, and watermelons.

                        vegetables for processing

    Asparagus, lima beans, snap beans, beets, cabbage, sweet corn, 
cucumbers, green peas, spinach, and tomatoes.

                            Other Commodities

    Beeswax; cottonseed; hops; peas; dry field; peppermint oil; popcorn; 
potatoes; spearmint oil; and tobacco, types 61-62. All other commodities 
for which monthly price data are not available.

[21 FR 761, Feb. 3, 1956]

    Editorial Note: For Federal Register citations affecting Sec. 5.2 
see the List of CFR Sections Affected in the Finding Aids section of 
this volume.



Sec. 5.3   Selection of calendar year price data.

    In computing the adjusted base price for those commodities for which 
calendar year price data are used, ``* * * the average of the prices 
received by farmers for such commodity, at such times as the Secretary 
may select during each year * * *,'' as used in section 301(a)(1)(B)(i), 
shall be the simple average of the 12 monthly estimates of the prices 
received by farmers as published by the Statistical Reporting Service in 
``Agricultural Prices'' for those commodities for which such prices are 
available. An allowance for unredeemed loans and purchase agreement 
deliveries, any supplemental payments resulting from price support 
operations, and the value of marketing certificates, such as those 
received by producers of wheat pursuant to the Agricultural Adjustment 
Act of 1938, as amended, and others of generally similar character and 
effect, shall be added to the price specified above. Prices received for 
milk wholesale, milkfat, beef cattle, sheep, and lambs shall include 
wartime subsidy payments as provided by section 301(a)(1)(B). For 
Maryland Tobacco, type 32, the price data for each calendar year shall 
be the weighted average price of type 32 tobacco sold during the period 
January 1-December 31.

[Amdt. 14, 29 FR 12451, Sept. 1, 1964]



Sec. 5.4   Commodities for which parity prices shall be calculated.

    Parity prices shall be calculated for the following commodities:

                            Basic Commodities

    Wheat; corn; American upland cotton; extra long staple cotton; rice; 
peanuts;\1\ and the following types of tobacco: flue-cured, types 11-14; 
Virginia fire-cured, type 21; Kentucky-Tennessee fire-cured, types 22-
23; burley, type 31; Maryland, type 32; dark air-

[[Page 277]]

cured, types 35-36; sun-cured, type 37; Pennsylvania seedleaf, type 41; 
cigar filler and binder, types 42-44 and 53-55; Puerto Rican filler, 
type 46; and cigar binder, types 51-52.
---------------------------------------------------------------------------

    \1\ For the purpose of calculating parity prices the commodity 
peanuts shall exclude peanuts produced for oil in 1950 and 1951 under 
the provisions of subsections (g) and (h) of section 359 of the 
Agricultural Adjustment Act of 1938 as amended.
---------------------------------------------------------------------------

                     Designated Nonbasic Commodities

    Milk sold to plants; milkfat in cream; tung nuts; honey, wholesale 
extracted.

                             Wool and Mohair

    Wool and mohair.

                       Other Nonbasic Commodities

                              citrus fruit

    Grapefruit; lemons; limes; oranges; tangerines; and Temples.

                        deciduous and other fruit

    Apples (primarily for fresh use); apples for processing; apricots 
for fresh consumption; apricots for processing (except dried); dried 
apricots; avocados; blackberries; boysenberries; gooseberries; 
loganberries; black raspberries; red raspberries; youngberries; tart 
cherries; sweet cherries; cranberries; dates; grapes, raisins, dried; 
all grapes, excluding raisins, dried; nectarines for fresh consumption; 
nectarines for processing; olives for processing (excluding crushed for 
oil); olives, crushed for oil; olives for canning; papayas (Hawaii), for 
fresh consumption; peaches for fresh consumption; clingstone peaches for 
processing (except dried); freestone peaches for processing (except 
dried); dried peaches; pears for fresh consumption; pears for processing 
(except dried); dried pears; plums (California), for fresh consumption; 
plums (California), for processing; dried prunes (California); prunes 
and plums (excluding California), for processing (except dried); 
strawberries for fresh consumption; and strawberries for processing.

                               Seed Crops

    Alfalfa, bentgrass, crimson clover, Chewings fescue, red fescue, 
tall fescue, Marion Kentucky bluegrass, Ladino clover, lespedeza, 
orchard grass, red clover, timothy, and hairy vetch.

                               sugar crops

    Sugar beets, and sugarcane for sugar.

                                tree nuts

    Almonds; filberts; pecans, all; and walnuts.

                       vegetables for fresh market

    Artichokes, asparagus, snap beans, broccoli, cabbage, cantaloups, 
carrots, cauliflower, celery, sweet corn, cucumbers, eggplant, escarole, 
garlic, honeydew melons, lettuce, onions, green peppers, spinach, 
tomatoes, and watermelons.

                        vegetables for processing

    Asparagus, lima beans, snap beans, beets, cabbage, sweet corn, 
cucumbers, green peas, spinach and tomatoes.

                            other commodities

    Beef cattle; hogs; lambs; calves; sheep; turkeys; eggs; beeswax; 
potatoes; hops; peppermint oil; popcorn; spearmint oil; tobacco, Types 
61 and 62; barley; beans, dry edible; cottonseed; peas, dry field; 
flaxseed; hay, all baled; oats; rye; sorghum grain; soybeans; 
sweetpotatoes; and crude pine gum.

[21 FR 763, Feb. 3, 1956, as amended by Amdt. 1, 22 FR 693, Feb. 2, 
1957; Amdt. 3, 23 FR 1565, Mar. 5, 1958; Amdt. 17, 31 FR 10767, Aug. 13, 
1966; Amdt. 23, 34 FR 1132, Jan. 24, 1969; Amdt. 25, 34 FR 15785, Oct. 
14, 1969; Amdt. 26, 35 FR 3158, Feb. 19, 1970; Amdt. 27, 36 FR 15516, 
Aug. 17, 1971; 38 FR 10795, May 2, 1973]



Sec. 5.5   Publication of season average, calendar year, and parity price data.

    (a) New adjusted base prices for all of the commodities on a 
calendar year basis and for as many of the commodities on a marketing 
season average basis as are practicable shall be published on or about 
January 31 of each year. In cases where preliminary marketing season 
average price data are used in estimating the adjusted base prices 
published in January, any additional price data which becomes available 
shall be used in estimating a revised adjusted base price which shall be 
published prior to the beginning of the marketing season for the 
commodity.
    (b) The official parity prices determined under section 301(a)(1) 
and the regulations in this part and the indexes and relevant price data 
shall be published in the monthly report ``Agricultural Prices'' issued 
by the Statistical Reporting Service. Parity prices for all commodities 
for which parity prices are computed shall be so published in the 
January and July issues each year. The parity prices published in other 
issues may be restricted to those which the Statistical Reporting 
Service, after consultation with the Consumer and Marketing Service, the 
Agricultural Stabilization and Conservation Service, and any other 
interested government agency, considers necessary or desirable. The 
parity prices determined in accordance with this part shall be the 
parity prices used in other reports,

[[Page 278]]

determinations, or documents of the Department.

[21 FR 763, Feb. 3, 1956, as amended by Amdt. 16, 30 FR 2521, Feb. 26, 
1965]



Sec. 5.6   Revision of the parity price of a commodity.

    (a) Initiation of hearings. The ``modernized'' parity formula 
specified in section 301(a)(1) of the Agricultural Adjustment Act of 
1938, as amended, takes into consideration the average prices received 
by farmers for agricultural commodities during the last ten years and is 
designed gradually to adjust relative parity prices of specific 
commodities for persistent or continuing changes in demand and supply 
conditions which are reflected in market prices. Accordingly, only in 
rare cases is it possible for the parity price of any agricultural 
commodity to become seriously out of line with the parity prices of 
other agricultural commodities. In any case, however, in which producers 
of any agricultural commodity believe that the parity price of such 
commodity, as computed pursuant to the provisions of section 301(a)(1), 
is seriously out of line with the parity prices of other agricultural 
commodities, a request for a public hearing under section 301(a)(1)(F) 
may be submitted to the Secretary of Agriculture by a substantial number 
of interested producers. The producers shall also furnish to the 
Secretary, with such request or separately, data supporting their 
conclusion that the parity price of such commodity is seriously out of 
line with the parity prices of other commodities. Upon receipt of such a 
request with supporting data, or at any time upon the Secretary's own 
motion, this Department will make a preliminary study of the 
relationship between the parity price of such commodity and the parity 
prices of other commodities, and if the Secretary concludes that there 
appears to be reasonable grounds for believing that the parity price of 
such commodity is seriously out of line with the parity prices of other 
agricultural commodities, a hearing will be held pursuant to the 
provisions of section 301(a)(1)(F).
    (b) Notice of hearing. If the Secretary of Agriculture determines 
that such a hearing shall be held, he shall issue a notice of the 
hearing, which shall be filed with the Hearing Clerk of the United 
States Department of Agriculture, who shall promptly (1) cause such 
notice to be published in the Federal Register, and (2) mail a copy 
thereof to each of the producers who requested the hearing and to grower 
organizations known to be interested in the hearing. Legal notice of the 
hearing shall be deemed to be given upon filing such notice with the 
Federal Register for publication, and failure to give notice in the 
manner otherwise provided in this paragraph shall not affect the 
legality of the notice. The notice of hearing shall state the purpose of 
the hearing and the time and place of the hearing. The time of the 
hearing shall not be less than fifteen days after the date of 
publication of the notice in the Federal Register, unless the Secretary 
shall determine that an emergency exists which requires a shorter period 
of notice, in which case the period of notice shall be that which the 
Secretary determines to be reasonable in the circumstances.
    (c) Conduct of hearing--(1) Presiding officer. Each hearing held 
under section 301(a)(1)(F) shall be presided over by a Hearing Examiner 
of the Office of Hearing Examiners of the United States Department of 
Agriculture or such other employee of the Department as the Secretary 
may designate for the purpose.
    (2) Time and place of hearing. Each hearing shall be heard at the 
time and place set forth in the notice of hearing but may be continued 
by the presiding officer from day to day or adjourned to a later date or 
to a different place without notice other than the announcement thereof 
at the hearing.
    (3) Order of procedure. At the commencement of the hearing, the 
presiding officer shall file as an exhibit a copy of the Federal 
Register containing the notice of the hearing and shall then outline 
briefly the procedure to be followed. Evidence shall then be received 
from interested persons in such order as the presiding officer shall 
prescribe.
    (4) Submission of evidence. The hearing shall be conducted in such a 
way as to obtain a clear and orderly record. All interested persons 
appearing at the

[[Page 279]]

hearing shall be given reasonable opportunity to offer data, views, or 
arguments relevant to (i) whether the parity price for the agricultural 
commodity involved is or is not seriously out of line with the parity 
prices of other agricultural commodities, and (ii) the proper 
relationship between the parity price of such commodity and the parity 
prices of other agricultural commodities and the revisions, if any, 
which should be made in computing the parity price of such commodity. 
All documentary exhibits shall be submitted in duplicate. The presiding 
officer shall, insofar as possible, exclude irrelevant, immaterial, or 
unduly repetitious evidence but shall not apply technical judicial rules 
of evidence. Every witness shall be subject to questioning by the 
presiding officer or by any other representative of the Department, but 
cross-examination by other persons shall not be allowed, except in the 
discretion of the presiding officer. The proceedings at the hearing 
shall be transcribed verbatim.
    (5) Written arguments. The presiding officer shall fix a time, not 
to exceed ten days from the close of the hearing, within which 
interested persons may file written arguments with the Hearing Clerk.
    (d) Preparation and issuance of determination--(1) Preparation of 
recommendation. As soon as practicable after the close of the hearing, 
the presiding officer, or such employees of the Department as may be 
assigned for the purpose, shall review, consider, and weigh all evidence 
of probative value, views, and arguments which have been submitted, and 
may consider other pertinent information and data which is available in 
the Department of Agriculture, and shall submit a recommendation thereon 
to the Secretary.
    (2) Determination by the Secretary. As soon as possible after 
receipt of the recommendation, the Secretary shall determine whether the 
parity price of such commodity computed in accordance with section 
301(a)(1) appears to be seriously out of line with the parity prices of 
other agricultural commodities whether the facts require a revision of 
the method of computing the parity price of such commodity, and the 
revision, if any, which is required in the method of computing the 
parity price of such commodity. Such determination by the Secretary 
shall be final. The Secretary's determination shall be filed with the 
Hearing Clerk who shall cause the determination to be published promptly 
in the Federal Register. The Hearing Clerk shall also mail a copy of the 
determination to each producer and grower organization which 
participated in or is known to be interested in the hearing. Upon 
application to the Hearing Clerk, any person shall be entitled to a copy 
of the determination.

[23 FR 9252, Nov. 29, 1958]



PART 6--IMPORT QUOTAS AND FEES--Table of Contents




                       Subpart--General Provisions

Sec.
6.2  Responsibility for actions under section 22 and section 8(a).
6.3  Requests by interested persons for action by Department of 
          Agriculture.
6.4  Investigations.
6.5  Hearings under section 22.
6.6  Submission of recommendations under section 22.
6.7  Submission of recommendations under section 8(a) (emergency 
          treatment).
6.8  Representation at Tariff Commission hearings.
6.9  Information.

            Subpart--Dairy Tariff-Rate Import Quota Licensing

6.20  Introduction.
6.21  Definitions.
6.22  Requirement for a license.
6.23  Eligibility to apply for a license.
6.24  Application for a license.
6.25  Allocation of licenses.
6.26  Surrender and reallocation.
6.27  Limitations on use of license.
6.28  Transfer of license.
6.29  Use of licenses.
6.30  Record maintenance and inspection.
6.31  Debarment and suspension.
6.32  Globalization of licenses.
6.33  License fee.
6.34  Adjustment of Appendices.
6.35  Miscellaneous.
6.36  Supersedure of Import Regulation 1, Revision 7.
    Appendices 1, 2, and 3 to Subpart--Dairy Tariff-Rate Import Quota 
Licensing.

[[Page 280]]

     Subpart--Price-Undercutting of Domestic Cheese by Quota Cheeses

6.40  General.
6.41  Definitions.
6.42  Complaints of price-undercutting.
6.43  Determinations.
6.44  Delegation of authority.

    Cross Reference: For United States International Trade Commission 
regulations on investigations of effects of imports on agricultural 
programs, see 19 CFR part 204.



                       Subpart--General Provisions

    Authority: Sec. 8, 65 Stat. 75; 19 U.S.C. 1365.

    Source: 17 FR 8287, Sept. 16, 1952; 19 FR 57, Jan. 6, 1954, unless 
otherwise noted.



Sec. 6.2   Responsibility for actions under section 22 and section 8(a).

    The primary responsibility within the Department of Agriculture for 
action on matters for which the Secretary is responsible under section 
22 of the Agricultural Adjustment Act of 1933, as amended, and section 
8(a) of the Trade Agreements Extension Act of 1951 is assigned to the 
Administrator, Foreign Agricultural Service (referred to in this part as 
the ``Administrator''), but the other offices, agencies, and bureaus of 
the Department whose activities will be affected by any action under 
section 22 or section 8(a) shall be consulted by the Administrator in 
discharging his responsibility under this part.



Sec. 6.3   Requests by interested persons for action by Department of Agriculture.

    (a) Section 22. A request for action under section 22 should be 
submitted in duplicate to the Administrator, Foreign Agricultural 
Service, United States Department of Agriculture, Washington 25, D.C. 
Such request shall include a statement of the reasons why action would 
be warranted under section 22 and shall be supported by appropriate 
information and data.
    (b) Section 8(a). A request for action under section 8(a) should be 
submitted in duplicate to the Administrator, Foreign Agricultural 
Service, United States Department of Agriculture, Washington 25, D.C. 
Such request shall include a statement of the reasons why the commodity 
is perishable, and why, due to such perishability, a condition exists 
requiring emergency treatment, and shall be supported by appropriate 
information and data. A request under section 8(a) submitted in 
connection with a proposed section 7 (Trade Agreements Extension Act of 
1951) investigation shall not be acted upon until a section 7 
application has been properly filed by the person making the request 
with the Tariff Commission, and a copy of such application and 
supporting information and data are furnished the Administrator.



Sec. 6.4   Investigations.

    (a) Section 22. The Administrator shall cause an investigation to be 
made whenever, based upon a request submitted pursuant to Sec. 6.3 or 
upon other information available to him, he determines that there is 
reasonable ground to believe that the imposition of import quotas or 
fees under section 22 may be warranted, or that the termination or 
modification of import quotas or fees in effect under section 22 may be 
warranted.
    (b) Section 8(a). The Administrator shall cause an immediate 
investigation to be made whenever (1) a request is received for 
emergency treatment in connection with an application properly filed 
with the Tariff Commission under section 7; (2) a request is received 
for emergency treatment under section 22 if the Administrator determines 
that there is reasonable ground to believe that the imposition of import 
quotas or fees under section 22 may be warranted; or (3) the 
Administrator, upon the basis of other information available to him, has 
reasonable ground for believing that emergency treatment under section 
8(a) is necessary. The Administrator shall expedite to the fullest 
practicable extent his attention to requests for emergency treatment 
under section 8(a), and such requests shall receive priority over 
requests for other action under section 22. The investigation shall 
cover (1) whether the commodity is a perishable agricultural commodity; 
(2) whether, due to the perishability of the commodity, a condition 
exists requiring emergency treatment as indicated by such factors as (i)

[[Page 281]]

the marketing season for the commodity, (ii) past and prospective 
domestic production, stocks, requirements, and prices, (iii) past and 
prospective imports; and (3) such other matters as the Administrator 
determines are relevant to a determination as to whether emergency 
treatment for the commodity is necessary. No public hearing shall be 
held in connection with investigations under this paragraph.



Sec. 6.5   Hearings under section 22.

    The Administrator is authorized to provide for such public hearings 
as he deems necessary to discharge the responsibility for action under 
section 22 vested in him by Secs. 6.2 and 6.4(a). In view of the need, 
however, for prompt action on requests for action under section 22, 
public hearings shall be held in connection with investigations 
conducted under Sec. 6.4(a) only when the Administrator determines that 
a public hearing is necessary to obtain supplementary information not 
otherwise available. Any public hearing which is held shall be conducted 
by representatives designated for the purpose by the Administrator; 
shall be preceded by such public notice as, in the opinion of the 
Administrator, will afford interested persons reasonable opportunity to 
attend and present information; and minutes of the proceedings at such 
hearing shall be obtained. Hearings shall be informal and technical 
rules of evidence shall not apply. Such hearings are for the purpose of 
obtaining information for the assistance of the Secretary. However, in 
discharging his responsibilities under section 22, the Secretary is not 
restricted to the information adduced at the hearings.



Sec. 6.6   Submission of recommendations under section 22.

    (a) The Administrator shall make a report to the Secretary upon the 
completion of each investigation made by him pursuant to Sec. 6.4(a). 
The report shall summarize the information disclosed by the 
investigation; shall contain the recommendations of the Administrator; 
and, in case action under section 22 is recommended, shall be 
accompanied by a suggested letter from the Secretary to the President 
recommending that the Tariff Commission be directed to conduct an 
investigation. Such report shall be submitted to the other offices, 
agencies, and bureaus of the Department of Agriculture whose activities 
would be affected, for concurrence or comment.
    (b) The Secretary will recommend that the President direct the 
Tariff Commission to conduct an investigation under section 22 only if 
he has reason to believe, upon the basis of the information available to 
him, that import quotas or fees should be imposed.



Sec. 6.7   Submission of recommendations under section 8(a) (emergency treatment).

    (a) Section 22. The Administrator's report submitted pursuant to 
Sec. 6.6 shall indicate whether or not emergency treatment is necessary. 
If emergency treatment is recommended, the report shall discuss the 
condition which requires emergency treatment and be accompanied by 
suggested letters from the Secretary to the President, to the Tariff 
Commission, and to the petitioner (if any) advising them of the 
Secretary's determination. The suggested letter from the Secretary to 
the President shall include a recommendation as to whether such 
emergency treatment should take the form of action by the President 
prior to receiving the recommendations of the Tariff Commission, or 
whether a decision by the President may appropriately be withheld until 
the recommendations of the Tariff Commission are received. If emergency 
treatment requested is not recommended, the report to the Secretary 
shall be accompanied by suggested letters from the Secretary to the 
petitioner and the Tariff Commission stating the action taken.
    (b) Section 7. The Administrator shall make a report to the 
Secretary upon the completion of each investigation made by him pursuant 
to Sec. 6.4(b). The report shall summarize the information disclosed by 
the investigation, including the points listed in Sec. 6.4(b) which were 
considered in reaching the recommendation, and shall contain the 
recommendations of the Administrator as to whether or not emergency 
treatment is required. If emergency treatment is recommended, the report 
shall discuss the condition which requires

[[Page 282]]

emergency treatment and shall be accompanied by suggested letters from 
the Secretary to the President, to the Tariff Commission, and to the 
petitioner advising them of the Secretary's determination. The suggested 
letter from the Secretary to the President shall include a 
recommendation as to whether such emergency treatment should take the 
form of action by the President prior to receiving the recommendations 
of the Tariff Commission, or whether a decision by the President may 
appropriately be withheld until the recommendations of the Tariff 
Commission are received. If emergency treatment is not recommended, the 
report to the Secretary shall be accompanied by suggested letters from 
the Secretary to the petitioner and to the Tariff Commission stating the 
action taken. Each such report shall be submitted to the other offices, 
agencies, and bureaus of the Department of Agriculture whose activities 
would be affected, for concurrence or comment.



Sec. 6.8   Representation at Tariff Commission hearings.

    The Department of Agriculture shall be represented at all hearings 
conducted by the Tariff Commission under section 22 by persons 
designated by the Administrator, assisted by a representative of the 
Office of the General Counsel. Such representatives shall present the 
recommendations of the Department of Agriculture, shall submit such 
information and data in support thereof as are available, and shall 
exercise the right of examining other witnesses which is granted to the 
Secretary.

[17 FR 8287, Sept. 16, 1952; 20 FR 1830, Mar. 25, 1955]



Sec. 6.9   Information.

    Persons desiring information from the Department of Agriculture 
regarding section 22 or section 8(a), or any action with respect 
thereto, should address such inquiries to the Administrator, Foreign 
Agricultural Service, United States Department of Agriculture, 
Washington 25, DC.



            Subpart--Dairy Tariff-Rate Import Quota Licensing

    Authority: Additional U.S. Notes 6, 7, 8, 12, 14, 16-23 and 25 to 
Chapter 4 and General Note 15 of the Harmonized Tariff Schedule of the 
United States (19 U.S.C. 1202), Pub. L. 97-258, 96 Stat. 1051, as 
amended (31 U.S.C. 9701), and secs. 103 and 404, Pub. L. 103-465, 108 
Stat. 4819 (19 U.S.C. 3513 and 3601).

    Source: 61 FR 53007, Oct. 9, 1996, unless otherwise noted.



Sec. 6.20  Introduction.

    (a) Presidential Proclamation 6763 of December 23, 1994, modified 
the Harmonized Tariff Schedule of the United States affecting the import 
regime for certain articles of dairy products. The Proclamation 
terminated quantitative restrictions that had been imposed pursuant to 
section 22 of the Agricultural Adjustment Act of 1933, as amended (7 
U.S.C. 624); proclaimed tariff-rate quotas for such articles pursuant to 
Pub. L. 103-465; and specified which of such articles may be entered 
only by or for the account of a person to whom a license has been issued 
by the Secretary of Agriculture.
    (b) Effective January 1, 1995, the prior regime of absolute quotas 
for certain dairy products was replaced by a system of tariff-rate 
quotas. The articles subject to licensing under the new tariff-rate 
quotas are listed in Appendices 1, 2, and 3 of this subpart. Licenses 
will be issued pursuant to the provisions of this subpart for the 1997 
and subsequent quota years. These licenses will permit the holder to 
import specified quantities of the subject articles into the United 
States at the applicable in-quota rate of duty. If an importer has no 
license for an article subject to a tariff-rate quota, such importer 
will, with certain exceptions, be required to pay the applicable over-
quota rate of duty.
    (c) The Secretary of Agriculture has determined that this subpart 
will, to the fullest extent practicable, result in fair and equitable 
allocation of the right to import articles subject to such tariff-rate 
quotas. The subpart will also maximize utilization of the tariff-rate 
quotas for such articles, taking due account of any special factors

[[Page 283]]

which may have affected or maybe affecting the trade in the articles 
concerned.



Sec. 6.21  Definitions.

    As used in this subpart and the Appendices thereto, the following 
terms mean:
    Article. One of the products listed in Appendices 1, 2, or 3 which 
are the same as those described in Additional U.S. Notes 6, 7, 8, 12, 
14, 16-23 and 25 to Chapter 4 of the Harmonized Tariff Schedule.
    Customs. The United States Customs Service.
    Country. Country of origin as determined in accordance with Customs 
rules and regulations, except that ``EC 12'', ``EC 15'', and ``Other 
countries'' shall each be treated as a country.
    Cheese or cheese products. Articles in headings 0406, 1901.90.34, 
and 1901.90.36 of the Harmonized Tariff Schedule.
    Commercial entry. Any entry except those made by or for the account 
of the United States Government or for a foreign government, for the 
personal use of the importer or for sampling, taking orders, research, 
or the testing of equipment.
    Dairy products. Articles in headings 0401 through 0406, margarine 
cheese listed under headings 1901.90.34 and 1901.90.36, ice cream listed 
under heading 2105, and casein listed under heading 3501 of the 
Harmonized Tariff Schedule.
    Department. The United States Department of Agriculture.
    EC 12. Belgium, Denmark, the Federal Republic of Germany, France, 
Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, 
and the United Kingdom.
    EC 15. Austria, Belgium, Denmark, the Federal Republic of Germany, 
Finland, France, Greece, Ireland, Italy, Luxembourg, the Netherlands, 
Portugal, Spain, Sweden and the United Kingdom.
    Enter or Entry. To make or making entry for consumption, or 
withdrawal from warehouse for consumption in accordance with Customs 
regulations and procedures.
    Harmonized Tariff Schedule or HTS. The Harmonized Tariff Schedule of 
the United States.
    Licensee. A person to whom a license has been issued under this 
subpart.
    Licensing Authority. The Dairy Import Quota Manager, Import Policies 
and Programs Division, Foreign Agricultural Service, U.S. Department of 
Agriculture.
    Other countries. Countries not listed by name as having separate 
tariff-rate quota allocations for an article in the Additional U.S. 
Notes to Chapter 4 of the Harmonized Tariff Schedule.
    Person. An individual, firm, corporation, partnership, association, 
trust, estate or other legal entity.
    Postmark. The postage cancellation mark or date applied by the 
United States Postal Service. This does not include the date on metered 
postage affixed by the applicant, or on mail delivered by private 
entities.
    Process or Processing. Any additional preparation of a dairy 
product, such as melting, grating, shredding, cutting and wrapping, or 
blending with any additional ingredient.
    Quota year. The 12-month period beginning on January 1 of a given 
year.
    Tariff-rate quota amount or TRQ amount. The amount of an article 
subject to the applicable in-quota rate of duty established under a 
tariff-rate quota.
    United States. The customs territory of the United States, which is 
limited to the 50 states, the District of Columbia, and Puerto Rico.



Sec. 6.22  Requirement for a license.

    (a) General rule. A person who seeks to enter, or cause to be 
entered, an article shall obtain a license, in accordance with this 
subpart, except as provided in paragraph (b).
    (b) Exceptions. Licenses are not required if:
    (1) The article is imported by or for the account of any agency of 
the U.S. Government;
    (2) The article is imported for the personal use of the importer, 
provided that the net weight does not exceed five kilograms in any one 
shipment;
    (3) The article imported will not enter the commerce of the United 
States and is imported as a sample for taking orders, for exhibition, 
for display or sampling at a trade fair, for research, for testing of 
equipment; or for

[[Page 284]]

use by embassies of foreign governments. Written approval of the 
Licensing Authority shall be obtained prior to entry, and the importer 
of record (or a broker or agent acting on its behalf) shall provide to 
the Licensing Authority, prior to the release of such articles, the 
appropriate Customs documentation identifying the article, quantity to 
be imported, its location, intended use, an entry number and the 
importer of record. The Licensing Authority may also require as a 
condition of import that the article be destroyed or re-exported after 
such use; or
    (4) Such person pays the applicable over-quota rate of duty.



Sec. 6.23  Eligibility to apply for a license.

    (a) In general. To apply for any license, a person shall have:
    (1) A business office, and be doing business, in the United States, 
and
    (2) An agent in the United States for service of process.
    (b) Eligibility for the 1997 and subsequent quota years--(1) 
Historical licenses (Appendix 1). Any person issued a historical or 
nonhistorical license for the 1996 quota year for an article may apply 
for a historical license (Appendix 1) for the same article from the same 
country for the 1997 and subsequent quota years, if such person was, 
during the 12-month period ending August 31 prior to the quota year, 
either:
    (i) Where the article is cheese or cheese product,
    (A) The owner of and importer of record for at least three separate 
commercial entries of cheese or cheese products totaling not less than 
57,000 kilograms net weight, each of the three entries not less than 
2,000 kilograms net weight,
    (B) The owner of and importer of record for at least eight separate 
commercial entries of cheese or cheese products, from at least eight 
separate shipments, totaling not less than 19,000 kilograms net weight, 
each of the eight entries not less than 450 kilograms net weight, with a 
minimum of two entries in each of at least three quarters during that 
period; or
    (C) The owner or operator of a plant listed in Section II or listed 
in Section I as a processor of cheese of the most current issue of 
``Dairy Plants Surveyed and Approved for USDA Grading Service'' and had 
processed or packaged at least 450,000 kilograms of cheese or cheese 
products in its own plant in the United States; or
    (ii) Where the article is not cheese or cheese product,
    (A) The owner of and importer of record for at least three separate 
commercial entries of dairy products totaling not less than 57,000 
kilograms net weight, each of the three entries not less than 2,000 
kilograms net weight;
    (B) The owner of and importer of record for at least eight separate 
commercial entries of dairy products, from at least eight separate 
shipments, totaling not less than 19,000 kilograms net weight, each of 
the eight entries not less than 450 kilograms net weight, with a minimum 
of two entries in each of at least three quarters during that period;
    (C) The owner or operator of a plant listed in the most current 
issue of ``Dairy Plants Surveyed and Approved for USDA Grading Service'' 
and had manufactured, processed or packaged at least 450,000 kilograms 
of dairy products in its own plant in the United States; or
    (D) The exporter of dairy products in the quantities and number of 
shipments required under (A) or (B) above.
    (2) Certain butter. A person issued a nonhistorical license for 
butter for the 1997 or 1998 quota year may annually apply for a 
historical license (Appendix 1) for the same quantity of butter for the 
subsequent quota year and each year thereafter, provided that such 
person has used at least 90 percent of the original license issued for 
the previous quota year and meets the requirements of paragraph 
(b)(1)(ii). However, if a person is issued a historical license pursuant 
to this paragraph, that person may not be issued a nonhistorical license 
for butter for any quota year in which that historical license is issued 
to that person, unless applicants who do not hold such a license have 
all been issued such a nonhistorical license.
    (3) Nonhistorical licenses for cheese or cheese products (Appendix 
2). A person may annually apply for a nonhistorical license for cheese 
or cheese products (Appendix 2) for the 1997 quota year and each quota 
year thereafter if such

[[Page 285]]

person meets the requirements of paragraph (b)(1)(i) of this section.
    (4) Nonhistorical licenses for articles other than cheese or cheese 
products (Appendix 2). A person may annually apply for a nonhistorical 
license for articles other than cheese or cheese products (Appendix 2) 
for the 1997 quota year and each quota year thereafter if such person 
meets the requirements of paragraph (b)(1)(ii).
    (5) Designated license (Appendix 3). A person may annually apply for 
a designated license (Appendix 3) for the 1997 quota year and for each 
quota year thereafter, provided that such person meets the requirements 
of paragraph (b)(1)(i), of this section and provided further that the 
government of the country has designated such person for such license. 
The designating country shall submit its selection of designated 
importers in writing directly to the Licensing Authority not later than 
October 31 prior to the beginning of the quota year.
    (c) Exceptions. (1) A licensee that fails in a quota year to enter 
at least 85 percent of the amount of an article permitted under a 
license, shall not be eligible to receive a license for the same article 
from the same country for the next quota year. For the purpose of this 
paragraph, the amount of an article permitted under the license will 
exclude any amounts surrendered pursuant to Sec. 6.26(a), but will 
include any additional allocations received pursuant to Sec. 6.26(b).
    (2) Paragraph (c)(1) of this section will not apply where the 
licensee demonstrates to the satisfaction of the Licensing Authority 
that the failure resulted from breach by a carrier of its contract of 
carriage, breach by a supplier of its contract to supply the article, 
act of God or force majeure.
    (3) Paragraph (c)(1) of this section may not apply in the case of 
historical or nonhistorical licenses, where the licensee demonstrates to 
the satisfaction of the Licensing Authority that the country specified 
on the license maintains or permits an export monopoly to control the 
dairy articles concerned and the licensee petitions the Licensing 
Authority to waive this requirement. The licensee shall submit evidence 
that the country maintains an export monopoly as defined in this 
paragraph. For the purposes of this paragraph ``export monopoly'' means 
a privilege vested in one or more persons consisting of the exclusive 
right to carry on the exportation of any article of dairy products from 
a country to the United States.
    (4) The Licensing Authority will not issue a nonhistorical license 
(Appendix 2) for an article from a country during a quota year to an 
applicant who is affiliated with another applicant to whom the Licensing 
Authority is issuing a non-historical license for the same article from 
the same country for that quota year. Further, the Licensing Authority 
will not issue a nonhistorical license for butter to an applicant who is 
affiliated with another applicant to whom the Licensing Authority is 
issuing a historical butter license of 57,000 kilograms or greater. For 
the purpose of this paragraph, an applicant will be deemed affiliated 
with another applicant if:
    (i) The applicant is the spouse, brother, sister, parent, child or 
grandchild of such other applicant;
    (ii) The applicant is the spouse, brother, sister, parent, child or 
grandchild of an individual who owns or controls such other applicant;
    (iii) The applicant is owned or controlled by the spouse, brother, 
sister, parent, child or grandchild of an individual who owns or 
controls such other applicant.
    (iv) Both applicants are 5 percent or more owned or directly or 
indirectly controlled, by the same person;
    (v) The applicant, or a person who owns or controls the applicant, 
benefits from a trust that controls such other applicant.
    (5) The Licensing Authority will not issue a nonhistorical license 
(Appendix 2) for an article from a country during a quota year to an 
applicant who is associated with another applicant to whom the Licensing 
Authority is issuing a nonhistorical license for the same article from 
the same country for that quota year. Further, the Licensing Authority 
will not issue a nonhistorical license for butter to an applicant who is 
associated with another applicant to whom the Licensing Authority is 
issuing a historical butter license for 57,000

[[Page 286]]

kilograms or greater. For the purpose of this paragraph, an applicant 
will be deemed associated with another applicant if:
    (i) The applicant is an employee of, or is controlled by an employee 
of, such other applicant;
    (ii) The applicant manages or is managed by such other applicant, or 
economically benefits, directly or indirectly, from the use of the 
license issued to such other applicant.
    (6) The Licensing Authority will not issue a nonhistorical license 
for an article from a country, for which the applicant receives a 
designated license.



Sec. 6.24  Application for a license.

    (a) Application for license shall be made on forms provided by the 
Licensing Authority and shall be duly notarized and mailed in accordance 
with Sec. 6.35(b). All parts of the application shall be completed. For 
the 1997 quota year, applications should be postmarked no earlier than 
October 10 and no later than October 31. For the 1998 and subsequent 
quota years, the application shall be postmarked no earlier than 
September 1 and no later than October 15 of the year preceding that for 
which license application is made. The Licensing Authority will not 
accept incomplete or unpostmarked applications.
    (b)(1) Where the applicant seeks to establish eligibility on the 
basis of imports, applications shall include Customs Form 7501 showing 
the applicant as the importer of record of entries required under 
Sec. 6.23, during the 12-month period ending August 31 prior to the 
quota year for which license is being sought.
    (2) Where the applicant seeks to establish eligibility on the basis 
of exports, applications shall include:
    (i) Census Form 7525 or a copy of the electronic submission of such 
form, and
    (ii) The commercial invoice or bill of sale for the quantities and 
number of export shipments required under Sec. 6.23, during the 12-month 
period ending August 31 prior to the quota year for which license is 
being sought.
    (c) However, if the applicant is applying on the basis of more than 
eight shipments, the application shall include:
    (1) The required documentary evidence for eight shipments;
    (2) A signed certification that the remaining required documents are 
on file at the applicant's premises; and
    (3)(i) If the application is made on the basis of imports, a listing 
of the entry numbers, dates of entry and volumes on those remaining 
documents; or
    (ii) If the application is made on the basis of exports, a listing 
of the dates of export and volumes on those documents.
    (d) An applicant requesting more than one nonhistorical license must 
rank order these requests by the applicable Additional U.S. Note number. 
Cheese and cheese products must be ranked separately from dairy articles 
which are not cheese or cheese products.



Sec. 6.25  Allocation of licenses.

    (a) Historical licenses for the 1997 quota year (Appendix 1). (1) A 
person issued a historical license for the 1996 quota year will be 
issued a historical license for the 1997 quota year in an amount equal 
to the Basic Annual Allocation level used by the Licensing Authority for 
the 1996 quota year provided that such person meets the requirements of 
Sec. 6.23(b)(1) and Sec. 6.23(c).
    (2) A person issued a nonhistorical license for the 1996 quota year 
will be issued a historical license for the 1997 quota year for the same 
quantity as the license for the 1996 quota year, provided that such 
person meets the requirements of Sec. 6.23.
    (3) If a person was issued more than one historical license, or one 
or more historical licenses and a nonhistorical license, for the same 
article from the same country for the 1996 quota year, such person will 
be issued a single historical license for the 1997 quota year, the 
amount of which shall be determined in accordance with paragraphs, (a) 
(1) and (2) of this section.
    (b) Historical licenses for the 1998 and subsequent quota years 
(Appendix 1). (1) A person issued a historical license for the 1997 
quota year will be issued a historical license in the same amount for 
the same article from the same country for the 1998 quota year and for 
each subsequent quota year except that:

[[Page 287]]

    (i) Beginning with the 1999 quota year, a person who has surrendered 
more than 50 percent of such historical license in each of the prior 
three quota years will thereafter be issued a license in an amount equal 
to the average annual quantity entered during those three quota years; 
and
    (ii) Beginning with the quota year 2001, a person who has 
surrendered more than 50 percent of such historical license in at least 
three of the prior five quota years will thereafter be issued a license 
in an amount equal to the average annual quantity entered during those 
five quota years.
    (2) However, prior to the beginning of the 1999 quota year, the 
Secretary of Agriculture may determine that the exceptions in paragraphs 
(b)(1) (i) and (ii) of this section shall not apply in light of market 
conditions.
    (c) Nonhistorical licenses (Appendix 2). The Licensing Authority 
will allocate nonhistorical licenses on the basis of a rank-order 
lottery system, which will operate as follows:
    (1) The minimum license size shall be:
    (i) Where the article is cheese or cheese product:
    (A) The total amount available for nonhistorical license where such 
amount is less than 9,500 kilograms;
    (B) 9,500 kilograms where the total amount available for 
nonhistorical license is between 9,500 kilograms and 500,000 kilograms, 
inclusive;
    (C) 19,000 kilograms where the total amount available for 
nonhistorical license is between 500,001 kilograms and 1,000,000 
kilograms, inclusive;
    (D) 38,000 kilograms where the total amount available for 
nonhistorical license is greater than 1,000,000 kilograms; or
    (E) An amount less than the minimum license size established in 
paragraphs (c)(1)(i) (A) through (D) of this section, if requested by 
the licensee;
    (ii) Where the article is not cheese or cheese product:
    (A) The total amount available for nonhistorical license where such 
amount is less than 19,000 kilograms;
    (B) 19,000 kilograms where the total amount available for 
nonhistorical license is between 19,000 kilograms and 550,000 kilograms, 
inclusive;
    (C) 38,000 kilograms where the total amount available for 
nonhistorical license is between 550,001 kilograms and 1,000,000 
kilograms, inclusive; and
    (D) 57,000 kilograms where the total amount available for 
nonhistorical license is greater than 1,000,000 kilograms;
    (E) An amount less than the minimum license sizes established in 
paragraphs (c)(1)(i) (A) through (D) of this section, if requested by 
the licensee.
    (2) Taking into account the order of preference expressed by each 
applicant, as required by Sec. 6.24(c), the Licensing Authority will 
allocate licenses for an article from a country by a series of random 
draws. A license of minimum size will be issued to each applicant in the 
order established by such draws until the total amount of such article 
in Appendix 2 has been allocated. An applicant that receives a license 
for an article will be removed from the pool for subsequent draws until 
every applicant has been allocated at least one license, provided that 
the licenses for which they applied are not already fully allocated. Any 
amount remaining after the random draws which is less than the 
applicable minimum license size may, at the discretion of the Licensing 
Authority, be prorated equally among the licenses awarded for that 
article.
    (d) Designated licenses (Appendix 3). (1) With respect to an article 
listed in Appendix 3, the government of the applicable country may, not 
later than October 31 prior to the beginning of a quota year, submit 
directly and in writing to the Licensing Authority:
    (i) The names and addresses of the importers that it is designating 
to receive licenses; and
    (ii) The amount, in percentage terms, of such article for which each 
such importer is being designated. Where quantities for designation 
result from both Tokyo Round concessions and Uruguay Round concessions, 
the designations should be made in terms of each.
    (2) To the extent practicable, the Licensing Authority will issue 
designated licenses to those importers, and in those amounts, indicated 
by the government of the applicable country, provided that the importer 
designated meets the eligibility requirements set

[[Page 288]]

forth in Sec. 6.23. Consistent with the international obligations of the 
United States, the Licensing Authority may disregard a designation if 
the Licensing Authority determines that the person designated is not 
eligible for any of the reasons set forth in Sec. 6.23(c) (1) or (2).
    (3) If a government of a country which negotiated in the Uruguay 
Round for the right to designate importers has not done so, but 
determines to designate importers for the next quota year, it shall 
indicate its intention to do so directly and in writing to the Licensing 
Authority not later than July 1 prior to the beginning of such next 
quota year. Furthermore, if a government that has designated importers 
for a quota year determines that it will not continue to designate 
importers for the next quota year, it shall so indicate directly and in 
writing to the Licensing Authority, not later than July 1 prior to such 
next quota year.



Sec. 6.26  Surrender and reallocation.

    (a) If a licensee determines that it will not enter the entire 
amount of an article permitted under its license, such licensee shall 
surrender its license right to enter the amount that it does not intend 
to enter. Surrender shall be made to the Licensing Authority in writing, 
mailed in accordance with Sec. 6.35(b) and postmarked no later than 
October 1. Any surrender shall be final and shall be only for that quota 
year, except as provided in Sec. 6.25(b). The amount of the license not 
surrendered shall be subject to the license use requirements of 
Sec. 6.23(c)(1).
    (b) For each quota year, the Licensing Authority will, to the extent 
practicable, reallocate any amounts surrendered.
    (c) Any person who has been issued a license for a quota year may 
apply to receive additional license, or addition to an existing license 
for a portion of the amount being reallocated. The application shall be 
submitted to the Licensing Authority by mail postmarked no earlier than 
September 1 and not later than September 15, in accordance with 
Sec. 6.35(b), and shall specify:
    (1) The name and control number of the applicant;
    (2) The article and country being requested, the applicable 
Additional U.S. Note number and, if more than one article is requested, 
a rank-order by Additional U.S. Note number; and
    (3) If applicable, the number of the license issued to the applicant 
for that quota year permitting entry of the same article from the same 
country.
    (d) The Licensing Authority will reallocate surrendered amounts 
among applicants as follows:
    (1) The minimum license size, or addition to an existing license, 
will be the total amount of the article from a country surrendered, or 
10,000 kilograms, whichever is less;
    (2) Minimum size licenses, or additions to an existing license, will 
be allocated among applicants requesting articles on the basis of the 
rank-order lottery system described in Sec. 6.25(c);
    (3) If there is any amount of an article from a country left after 
minimum size licenses have been issued, the Licensing Authority may 
allocate the remainder in any manner it determines equitable among 
applicants who have requested that article; and
    (4) No amount will be reallocated to a licensee who has surrendered 
a portion of its license for the same article from the same country 
during that quota year unless all other licensees applying for a 
reallocated quantity have been allocated a license;
    (e) However, if the government of an exporting country chooses to 
designate eligible importers for surrendered amounts under Appendix 3, 
the Licensing Authority shall issue the licenses in accordance with 
Sec. 6.25(d)(2), provided that the government of the exporting country 
notifies the Licensing Authority of its designations no later than 
September 1. Such notification shall contain the names and addresses of 
the importers that it is designating and the amount in percentage terms 
of such article for which each importer is being designated. In such 
case the requirements of paragraph (c) of this section shall not apply.
    (f) Except for paragraph (a), the provisions of Sec. 6.26 for 
surrendered and reallocated tariff-rate quota shares do not apply for 
the 1996 quota year. Reissued tariff-rate quota shares for licenses 
surrendered during 1996 will be made pursuant to the provisions in 
effect for the 1996 quota year (Sec. 6.26(f)(2)

[[Page 289]]

as contained in 7 CFR subtitle A, revised as of January 1, 1996).



Sec. 6.27  Limitations on use of license.

    (a) A licensee shall not obtain or use a license for speculation, 
brokering, or offering for sale, or permit any other person to use the 
license for profit.
    (b) A licensee who is eligible as a manufacturer or processor, 
pursuant to Sec. 6.23, shall process at least 75 percent of its licensed 
imports in such person's own facilities and maintain the records 
necessary to so substantiate.



Sec. 6.28  Transfer of license.

    (a) If a licensee sells or conveys its business involving articles 
covered by this subpart to another person, including the complete 
transfer of the attendant assets, the Licensing Authority will transfer 
to such other person the historical, nonhistorical or designated license 
issued for that quota year. Such sale or conveyance must be 
unconditional, except that it may be in escrow with the sole condition 
for return of escrow being that the Licensing Authority determines that 
such sale does not meet the requirements of this paragraph.
    (b) The parties seeking transfer of license shall give written 
notice to the Licensing Authority of the intended sale or conveyance 
described in paragraph (a) by mail as required in Sec. 6.35(b). The 
notice must be received by the Licensing Authority at least 20 working 
days prior to the intended consummation of the sale or conveyance. Such 
written notice shall include copies of the documents of sale or 
conveyance. The Licensing Authority will review the documents for 
compliance with the requirements of paragraph (a) of this section and 
advise the parties in writing of its findings by the end of the 20-day 
period. The parties shall have the burden of demonstrating to the 
satisfaction of the Licensing Authority that the contemplated sale or 
conveyance complies with the requirements of paragraph (a) of this 
section. Within 15 days of the consummation of the sale or conveyance, 
the parties shall mail copies of the final documents to the Licensing 
Authority, in accordance with Sec. 6.35(b). The Licensing Authority will 
not transfer the licenses unless the documents are submitted in 
accordance with this paragraph.
    (c) The eligibility for a license of a person to whom a business is 
sold or conveyed will be determined for the next quota year in 
accordance with Sec. 6.23. For the purposes of Sec. 6.23(b)(1) the 
person to whom a business is sold or conveyed shall be deemed to be the 
person to whom the historical licenses were issued during the quota year 
in which the sale or conveyance occurred. Further, for the purposes of 
Sec. 6.23 (b) and (c), the entries made under such licenses by the 
original licensee during the year in which the sale of conveyance is 
made, shall be considered as having been made by the person to whom the 
business was sold or conveyed.



Sec. 6.29  Use of licenses.

    (a) An article entered under a license shall be an article produced 
in the country specified on the license.
    (b) An article entered or withdrawn from warehouse for consumption 
under a license must be entered in the name of the licensee as the 
importer of record by the licensee or its agent, and must be owned by 
the licensee at the time of such entry.
    (c) If the article entered or withdrawn from warehouse for 
consumption was purchased by the licensee through a direct sale from a 
foreign supplier, the licensee shall present, at the time of entry:
    (1) A true and correct copy of a through bill of lading from the 
country; and
    (2) A commercial invoice or bill of sale from the seller, showing 
the quantity and value of the product, the date of purchase and the 
country; or
    (3) Where the article was entered into warehouse by the foreign 
supplier, Customs Form 7501 endorsed by the foreign supplier and the 
commercial invoice.
    (d) If the article entered was purchased by the licensee via sale-
in-transit, the licensee shall present, at the time of entry:
    (1) A true and correct copy of a through bill of lading endorsed by 
the original consignee of the goods;

[[Page 290]]

    (2) A certified copy of the commercial invoice or bill of sale from 
the foreign supplier to the original consignee of the goods; and
    (3) A commercial invoice or bill of sale from the original consignee 
to the licensee.
    (e) If the article entered was purchased by the licensee in 
warehouse, the licensee shall present, at the time of entry:
    (1) Customs Form 7501 endorsed by the original consignee of the 
goods;
    (2) A certified copy of the commercial invoice or bill of sale from 
the foreign supplier to the original consignee of the goods; and
    (3) A commercial invoice or bill of sale from the original consignee 
to the licensee.
    (f) The Licensing Authority may waive the requirements of paragraphs 
(c), (d) or (e), if it determines that because of strikes, lockouts or 
other unusual circumstances, compliance with those requirements would 
unduly interfere with the entry of such articles.
    (g) Nothing in this subpart shall prevent the use of immediate 
delivery in accordance with the provisions of Customs regulations 
relating to tariff-rate quotas.



Sec. 6.30  Record maintenance and inspection.

    A licensee shall retain all records relating to its purchases, sales 
and transactions governed by this subpart, including all records 
necessary to establish the licensee's eligibility, for five years 
subsequent to the end of the quota year in which such purchases, sales 
or transactions occurred. During that period, the licensee shall, upon 
reasonable notice and during ordinary hours of business, grant officials 
of the U.S. Department of Agriculture full and complete access to the 
licensee's premises to inspect, audit or copy such records.



Sec. 6.31  Debarment and suspension.

    7 CFR part 3017--Governmentwide Debarment and Suspension 
(Nonprocurement) and Government Requirements for Drug-Free Workplace 
(Grants), Subparts A through E, applies to this subpart.



Sec. 6.32  Globalization of licenses.

    If the Licensing Authority determines that entries of an article 
from a country are likely to fall short of that country's allocated 
amount as indicated in Appendices 1, 2, and 3, the Licensing Authority 
may permit, with the approval of the Office of the United States Trade 
Representative, the applicable licensees to enter the remaining balance 
or a portion thereof from any country during that quota year. Requests 
for consideration of such adjustments must be submitted to the Licensing 
Authority no later than September 1. The Licensing Authority will obtain 
prior consent for such an adjustment of licenses from the government of 
the exporting country for quantities in accordance with the Uruguay 
Round commitment of the United States.



Sec. 6.33  License fee.

    (a) A fee will be assessed each quota year for each license to 
defray the Department's costs of administering the licensing system. To 
the extent practicable, the fee will be announced by the Licensing 
Authority in a notice published in the Federal Register no later than 
August 31 of the year preceding the quota year for which the fee is 
assessed.
    (b) The license fee for each license issued is due and payable in 
full by mail, postmarked no later than May 1 of the year for which the 
license is issued, in accordance with Sec. 6.35(b). The fee for any 
license issued after May 1 of any quota year is due and payable in full 
by mail, postmarked no later than 30 days from the date of issuance of 
the license, in accordance with Sec. 6.35(b). Fee payments shall be made 
by certified check or money order payable to the Treasurer of the United 
States.
    (c) If the license fee is not paid by the final payment date, a hold 
will be placed on the use of the license and no articles will be 
permitted entry under that license. The Licensing Authority shall send a 
warning letter by certified mail, return receipt requested, advising the 
licensee that if payment is not mailed in accordance with Sec. 6.35(b) 
or received within 21 days from the date of the letter, that the license 
will be revoked. Where the license at issue is a

[[Page 291]]

historical license, this will result, pursuant to Sec. 6.23(b), in the 
person's loss of historical eligibility for such license.
    (d) Licensees may elect not to accept certain licenses issued to 
them; however, the Licensing Authority must be so notified by mail, 
postmarked no later than the May 1, in accordance with Sec. 6.35(b).



Sec. 6.34  Adjustment of Appendices.

    (a) Whenever a historical license (Appendix 1) is not issued to an 
applicant pursuant to the provisions of Sec. 6.23, is permanently 
surrendered or is revoked by the Licensing Authority, the amount of such 
license will be transferred to Appendix 2.
    (b) The cumulative annual transfers to Appendix 2 made in accordance 
with paragraph (a) will be published in the Federal Register. If a 
transfer results in the addition of a new article, or an article from a 
country not previously listed in Appendix 2, the Licensing Authority 
shall afford all eligible applicants for that quota year the opportunity 
to apply for a license for such article.



Sec. 6.35  Miscellaneous.

    (a) If any deadline date in this subpart falls on a Saturday, Sunday 
or a Federal holiday, then the deadline shall be the next business day.
    (b) All submissions required by mail in this subpart shall be by 
registered or certified mail, return receipt requested, with a 
postmarked receipt, with the proper postage affixed and properly 
addressed to the Dairy Import Licensing Group, STOP 1021, U.S. 
Department of Agriculture, 1400 Independence Avenue SW., Washington DC 
20250-1021.



Sec. 6.36  Supersedure of Import Regulation 1, Revision 7.

    This subpart will supersede the provisions of Import Regulation 1, 
Revision 7 heretofore in effect (Secs. 6.20 through 6.33 and appendices 
1 through 3 as contained in 7 CFR subtitle A revised as of January 1, 
1996). With respect to any violation of the provisions of that 
regulation by a licensee prior to the effective date hereof, the 
provisions of that regulation will be deemed to continue in full force; 
however, the debarment and suspension of Sec. 6.31 of this subpart shall 
apply with respect to any violation of that regulation.

                   Appendices 1, 2, and 3 to Subpart--Dairy Tariff-Rate Import Quota Licensing                  
    [Articles subject to Appendix 1, Historical Licenses; Appendix 2, Nonhistorical Licenses; and Appendix 3,   
                                Designated Importer Licenses for Each Quota Year]                               
----------------------------------------------------------------------------------------------------------------
                                                                                         Appendix 3--Designated 
 Article by additional U.S. note number and country of    Appendix 1      Appendix 2   -------------------------
                         origin                          (historical)  (nonhistorical)     (Tokyo      (Uruguay 
                                                                                           Round)       Round)  
----------------------------------------------------------------------------------------------------------------
                  Non-Cheese Articles                                                                           
 (3)1997 Tariff Rate Quota In-Quota Quantity                                                                    
 (kilograms)                                                                                                    
Butter (Note 6)........................................       320,689      4,856,311    ...........  ...........
    EC.................................................        96,161  ...............  ...........  ...........
    New Zealand........................................       150,593  ...............  ...........  ...........
    Other Countries....................................        73,935  ...............  ...........  ...........
    Any Country........................................  ............      4,856,311    ...........  ...........
Dried Skim Milk (Note 7)...............................       819,641      2,041,359    ...........  ...........
    Australia..........................................       600,076  ...............  ...........  ...........
    Canada.............................................       219,565  ...............  ...........  ...........
    Any Country........................................  ............      2,041,359    ...........  ...........
Dried Whole Milk (Note 8)..............................         3,175      1,548,125    ...........  ...........
    New Zealand........................................         3,175  ...............  ...........  ...........
    Any Country........................................  ............      1,548,125    ...........  ...........
Dried Buttermilk/Whey (Note 12)........................       224,981  ...............  ...........  ...........
    Canada.............................................       161,161  ...............  ...........  ...........
    New Zealand........................................        63,820  ...............  ...........  ...........
Butter Substitutes containing over 45 percent of                                                                
 butterfat and/or butteroil (Note 14)..................  ............      5,420,500    ...........  ...........
    Any Country........................................  ............      5,420,500    ...........  ...........
                                                        --------------------------------------------------------
        Total: Non-Cheese Articles.....................     1,368,486     13,866,295    ...........  ...........
                                                        ========================================================

[[Page 292]]

                                                                                                                
                    Cheese Articles                                                                             
Cheese and substitutes for cheese (except cheese not                                                            
 containing cow's milk and soft ripened cow's milk                                                              
 cheese, cheese (except cottage cheese) containing 0.5                                                          
 percent or less by weight of butterfat and articles                                                            
 within the scope of other import quotas provided for                                                           
 in this subchapter) (Note 16).........................    25,896,207      5,574,524      9,661,128    5,198,000
    Argentina..........................................         7,690  ...............       92,310  ...........
    Australia..........................................       535,628          5,542        758,830      875,000
    Canada.............................................     1,122,831         18,169    ...........  ...........
    Costa Rica.........................................  ............  ...............  ...........    1,550,000
    Czech Republic.....................................  ............  ...............  ...........      200,000
    EC;................................................    17,194,649      5,137,783      1,132,568    1,173,000
        of which:                                                                                               
            Austria....................................       369,747  ...............      280,253      273,000
            Finland....................................       778,593         36,310        485,097  ...........
            Portugal...................................       129,309  ...............      223,691  ...........
            Sweden.....................................       915,473  ...............      143,527  ...........
    Israel.............................................        79,696  ...............      593,304  ...........
    Iceland............................................       294,000  ...............       29,000  ...........
    New Zealand........................................     4,779,186         36,286      6,506,528  ...........
    Norway.............................................       150,000  ...............  ...........  ...........
    Poland.............................................       936,224  ...............  ...........      300,000
    Slovak Republic....................................  ............  ...............  ...........      600,000
    Switzerland........................................       659,983         11,429        548,588      250,000
    Uruguay............................................  ............  ...............  ...........      250,000
    Other Countries....................................       136,320         65,315    ...........  ...........
    Any Country........................................  ............        300,000    ...........  ...........
Blue-mold cheese (except Stilton produced in the United                                                         
 Kingdom) and cheese and substitutes for cheese                                                                 
 containing, or processed from, Blue-mold cheese (Note                                                          
 17)...................................................     2,366,029        154,972    ...........      200,000
    Argentina..........................................         2,000  ...............  ...........  ...........
    EC.................................................     2,364,028        114,972    ...........      150,000
    Chile..............................................  ............         40,000    ...........  ...........
    Czech Republic.....................................  ............  ...............  ...........       50,000
    Other Countries....................................             1  ...............  ...........  ...........
Cheddar Cheese, and cheese and substitutes for cheese                                                           
 containing, or processed from, Cheddar cheese (Note                                                            
 18)...................................................     4,096,752        297,104        519,033    3,725,000
    Australia..........................................       965,795         18,704        215,501      625,000
    Chile..............................................  ............        110,000    ...........  ...........
    Czech Republic.....................................  ............  ...............  ...........       50,000
    EC.................................................       263,000  ...............  ...........      500,000
    New Zealand........................................     2,728,068         68,400        303,532    2,550,000
    Other Countries....................................       139,889  ...............  ...........  ...........
    Any Country........................................  ............        100,000    ...........  ...........
American-type cheese, including Colby, washed curd and                                                          
 granular cheese (but not including Cheddar) and cheese                                                         
 and substitutes for cheese containing or processed                                                             
 from such American-type cheese (Note 19)..............     3,001,796         63,757        357,003       50,000
    Australia..........................................       867,129         13,869        119,002  ...........
    EC.................................................       240,392         13,608    ...........       50,000
    New Zealand........................................     1,725,719         36,280        238,001  ...........
    Other Countries....................................       168,556  ...............  ...........  ...........
Edam and Gouda cheese, and cheese and substitutes for                                                           
 cheese containing, or processed from, Edam and Gouda                                                           
 cheese (Note 20)......................................     5,593,856         12,546    ...........      710,000
    Argentina..........................................       125,000  ...............  ...........      110,000
    Czech Republic.....................................  ............  ...............  ...........      100,000
    EC;................................................     5,283,546          5,454    ...........      500,000
        of which:                                                                                               
            Austria....................................  ............  ...............  ...........      200,000
            Sweden.....................................        41,000  ...............  ...........  ...........
    Norway.............................................       159,908          7,092    ...........  ...........
    Other Countries....................................        25,402  ...............  ...........  ...........
Italian-type cheeses, made from cow's milk, (Romano                                                             
 made from cow's milk, Reggiano, Parmesan, Provolone,                                                           
 Provoletti and Sbrinz and Goya, not in original                                                                
 loaves) and cheese and substitutes for cheese                                                                  
 containing, or processed from, such Italian-type                                                               
 cheeses, whether or not in original loaves (Note 21)..     6,701,591        818,956        795,517    4,965,000

[[Page 293]]

                                                                                                                
    Argentina..........................................     4,095,986         29,497        367,517    1,890,000
    EC.................................................     2,592,541        789,459    ...........      350,000
    Hungary............................................  ............  ...............  ...........      400,000
    Poland.............................................  ............  ...............  ...........    1,325,000
    Romania............................................  ............  ...............  ...........      250,000
    Uruguay............................................  ............  ...............      428,000      750,000
    Other Countries....................................        13,064  ...............  ...........  ...........
Swiss or Emmenthaler cheese other than with eye                                                                 
 formation, Gruyere-process cheese and cheese and                                                               
 substitutes for cheese containing, or processed from,                                                          
 such cheeses (Note 22)................................     6,050,188        601,126        823,519      190,000
    EC;................................................     4,555,608        596,386        393,006      190,000
        of which:                                                                                               
            Austria....................................       760,070         18,924        141,006       40,000
            Finland....................................       743,176          4,824        252,000  ...........
    Switzerland........................................     1,414,747          4,740        430,513  ...........
    Other Countries....................................        79,833  ...............  ...........  ...........
Cheese and substitutes for cheese, containing 0.5                                                               
 percent or less by weight of butterfat (except                                                                 
 articles within the scope of other tariff-rate import                                                          
 quotas provided for in this subchapter), and margarine                                                         
 cheese (Note 23)......................................     4,117,992        181,600      1,175,316  ...........
    EC;................................................     3,943,084        181,600    ...........  ...........
        of which:                                                                                               
            Sweden.....................................       124,684  ...............      125,316  ...........
    Israel.............................................  ............  ...............       50,000  ...........
    New Zealand........................................  ............  ...............    1,000,000  ...........
    Poland.............................................       174,907  ...............  ...........  ...........
    Other Countries....................................             1  ...............  ...........  ...........
Swiss or Emmenthaler cheese with eye formation (Note                                                            
 25)...................................................    19,480,205      2,817,126      9,557,945    1,660,000
    Argentina..........................................         9,115  ...............       70,885  ...........
    Australia..........................................       209,698  ...............      290,302  ...........
    Canada.............................................  ............  ...............       70,000  ...........
    Czech Republic.....................................  ............  ...............  ...........      400,000
    Hungary............................................  ............  ...............  ...........      400,000
    EC;................................................    13,896,912      2,579,916      4,003,172      760,000
        of which:                                                                                               
            Austria....................................     4,940,643         59,111      1,280,246      110,000
            Finland....................................     5,454,349         22,725      2,722,926  ...........
            Sweden.....................................  ............  ...............  ...........      300,000
    Iceland............................................       149,999  ...............      150,001  ...........
    Israel.............................................        27,000  ...............  ...........  ...........
    Norway.............................................     3,481,310        174,000      3,227,690  ...........
     Switzerland.......................................     1,620,895         63,210      1,745,895      100,000
    Other Countries....................................        85,276  ...............  ...........  ...........
                                                        --------------------------------------------------------
        Total: Cheese Articles.........................    77,304,616     10,521,711     22,889,461   16,698,000
----------------------------------------------------------------------------------------------------------------



     Subpart--Price-Undercutting of Domestic Cheese by Quota Cheeses

    Authority: Sec. 702, Pub. L. 96-39, 93 Stat. 144, 19 U.S.C. 1202 
note.

    Source: 45 FR 9883, Feb. 13, 1980, unless otherwise noted.



Sec. 6.40  General.

    This subpart sets forth the procedures applicable to the 
determination by the Secretary of Agriculture as to whether the price at 
which any article of quota cheese is being offered for sale in the 
United States on a duty-paid wholesale basis is less than the domestic 
wholesale market price of similar articles produced in the United States 
(i.e., price-undercutting) in accordance with section 702 of the Trade 
Agreements Act of 1979 (Pub. L. 96-39, 93 Stat. 144, 19 U.S.C. 1202 
note) (hereinafter referred to as the Act).



Sec. 6.41  Definitions.

    (a) Complainant means the person who has filed with the 
Investigating

[[Page 294]]

Authority, in accordance with the procedures set forth in this subpart, 
a written complaint alleging that price-undercutting is occurring.
    (b) Country of origin means the country, as defined in 19 CFR 
134.1(b), in which the quota article subject to this regulation was 
produced or manufactured.
    (c) Foreign government means the government of the country of origin 
or, for purposes of determining whether a subsidy has been provided for 
the member states of the European Economic Community, the subsidy 
granting bodies of the European Economic Community.
    (d) Investigating Authority means the Director, Dairy, Livestock and 
Poultry Division, Commodity Programs, Foreign Agricultural Service.
    (e) Quota cheese means the articles provided for in the following 
items of the Tariff Schedules of the United States:

117.00  (except Stilton produced in the United Kingdom);
117.05  (except Stilton produced in the United Kingdom);
117.15;
117.20;
117.25;
117.42;
117.44;
117.55;
117.60  (except Gammelost and Nokkelost);
117.75  (except goat's milk cheeses and soft-ripened cow's milk 
          cheeses);
117.81;
117.86;
117.88  (except goat's milk cheeses and soft-ripened cow's milk 
          cheeses);

    (f) Secretary means the Secretary of Agriculture.
    (g) Subsidy has the same meaning as such term has in section 771(5) 
of the Tariff Act of 1930 as added by section 101 of the Trade 
Agreements Act of 1979 (19 USC 1677(5)).
    (h) The United States means the Customs Territory of the United 
States, which is limited to the United States, District of Columbia and 
Puerto Rico.



Sec. 6.42  Complaints of price-undercutting.

    (a) Submission of complaint. Any person who has reason to believe 
that the price at which any article of quota cheese is offered for sale 
or sold in the United States on a duty-paid wholesale price basis is 
less than the domestic wholesale market price of similar articles 
produced in the United States and that a foreign government is providing 
a subsidy with respect to such article of quota cheese may file with the 
Investigating Authority a written complaint making such allegation.
    (b) Contents of complaint. Such complaint shall contain, or be 
accompanied by, information to substantiate complainant's allegations, 
in substantially the following form:
    (1) The name and address of the complainant.
    (2) The location of the domestic wholesale market in which price-
undercutting is alleged to be occurring.
    (3) The article of quota cheese involved in the alleged price-
undercutting.
    (4) The country of origin of such article of quota cheese.
    (5) The similar domestic article, the price of which the complainant 
believes is being undercut.
    (6) The month and year that the complainant first concluded that the 
price-undercutting was taking place.
    (7) To extent known to the complainant, all pertinent facts with 
regard to the alleged subsidy, and, if known, the statutory or other 
authority under which it is paid, the manner in which it is paid, and 
the value of such subsidy when received and used by producers or sellers 
of such quota cheese.
    (8) All other information which the complainant believes 
substantiates the allegation of price-undercutting, including the 
complainant's estimate of the domestic wholesale market price of the 
similar article produced in the United States and the duty-paid 
wholesale price of the quota cheese involved. If available, samples of 
the domestic and imported cheese products should be submitted.



Sec. 6.43  Determinations.

    (a) Making determinations. Not later than 30 days after receiving an 
acceptable complaint, as described in Sec. 6.42(b), alleging price-
undercutting, the Secretary shall make a determination as to the 
validity of the allegation. In making such determination, the following 
shall apply:

[[Page 295]]

    (1) The ``domestic wholesale market'' shall be one or more of the 
three major U.S. market areas, viz., New York City, Chicago, and San 
Francisco, and/or any other market area within the Customs Territory of 
the United States, which the Investigating Authority determines most 
representative of the area specified by the complainant as the one in 
which price-undercutting is alleged to be occurring (hereinafter 
referred to as ``designated area'').
    (2) The ``duty-paid wholesale price'' determined by the 
Investigating Authority shall be the average of prices at which 
wholesalers have sold or offered for sale in the designated area the 
article of quota cheese alleged to be involved in price-undercutting, as 
obtained in a survey directed by the Investigating Authority during the 
investigation: Provided, That whenever the designated area is not or 
does not include one of the major market areas specified in paragraph 
(a)(1) of this section, the Investigating Authority may adjust the 
average of prices determined for such designated area on the basis of 
the average of prices determined for the major market area which is 
determined to be the most representative of the designated area, taking 
into consideration any special factors which may be affecting prices in 
the designated area.
    (3) The ``domestic wholesale market price'' determined by the 
Investigating Authority for a similar article produced in the United 
States to that article of quota cheese which is alleged to be involved 
in price-undercutting shall be the average of prices at which 
wholesalers have sold the similar article produced in the United States 
in the designated area, as obtained in a survey directed by the 
Investigating Authority during the investigation: Provided, That 
whenever the designated area is not or does not include one of the major 
market areas specified in paragraph (a)(1) of this section, the 
Investigating Authority may adjust the average of prices determined for 
such designated area on the basis of the average of prices determined 
for the major market area which is determined to be the most 
representative of the designated area, taking into consideration any 
special factors which may be affecting prices in the designated area.
    (4) ``Similar article produced in the United States'' shall be an 
article of cheese, cheese product, or imitation cheese produced in the 
United States and marketed in the domestic wholesale market, which is 
determined by the Investigating Authority, based upon available 
information to be most like the imported article of quota cheese alleged 
to be involved in price-undercutting, in terms of its physical 
properties and end use. In making this determination, first 
consideration shall be given to the normal end uses of the article 
produced in the United States in comparison with the end use of the 
article of quota cheese alleged to be involved in price-undercutting. If 
the end use of both articles is determined to be the same (e.g., 
processing or retail sale), the physical characteristics of the two 
articles shall be considered.

If the common end use of the two articles is processing, the 
representative samples of the two articles shall be examined in terms of 
processing quality, taking special note of processing yields. If the 
common end use of the two articles is retail sale, representative 
samples of the two articles shall be examined in terms of similarities 
of taste, texture, general appearance, quality, age, and packaging. 
Imported imitation quota cheese shall only be compared with imitation 
domestic cheese. If it is determined that the domestic cheese the price 
of which is claimed to be undercut is not similar to the quota cheese 
allegedly undercutting it, there shall be no finding of price-
undercutting.
    (b) Reporting determinations. Determinations by the Secretary as to 
the validity of allegations of price-undercutting made under this 
subpart shall be published in the Federal Register not later than 5 days 
after the date the determination is made.



Sec. 6.44  Delegation of authority.

    The powers vested in the Administrator, FAS, insofar as such powers 
relate to the functions of the Investigating Authority by this 
regulation are hereby delegated to the Investigating

[[Page 296]]

Authority. This final rule has been reviewed under the USDA criteria 
established to implement Executive Order 12044, ``Improving Government 
Regulations.'' a determination has been made that this action should not 
be classified ``significant'' under those criteria. A Final Impact 
Statement has been prepared and is available from Carol M. Harvey in 
room 6622, South Agriculture Building, 14th and Independence Ave., SW., 
Washington, DC 20250.



PART 7--SELECTION AND FUNCTIONS OF AGRICULTURAL STABILIZATION AND CONSERVATION STATE, COUNTY AND COMMUNITY COMMITTEES--Table of Contents




Sec.
7.1  Administration.
7.2  General.
7.3  Definitions.
7.4  Selection of committee members.
7.5  Eligible voters.
7.6  Determination of elective areas.
7.7  Calling of elections.
7.8  Conduct of community committee elections.
7.9  Election of community committee members, delegates to local 
          administrative area and county conventions, and county 
          committee members.
7.10  Conduct of county convention.
7.11  County committee members.
7.12  Tie votes.
7.13  Vacancies.
7.14  Appeals.
7.15  Eligibility requirements of county committee members, community 
          committee members, and delegates.
7.16  Eligibility requirements of all other personnel.
7.17  Dual office.
7.18  Terms of office of county and community members.
7.19  Terms of office of delegates to the conventions.
7.20  State committee duties.
7.21  County committee duties.
7.22  Community committee duties.
7.23  Chairperson of the county committee duties.
7.24  Chairperson of the community committee duties.
7.25  County executive director duties.
7.26  Private business activity and conflicts of interest.
7.27  Political activity.
7.28  Removal from office or employment for cause.
7.29  Delegation of authority to Deputy Administrator.
7.30  Right of review.
7.31  Hearing in connection with appeals and requests for 
          reconsideration to Deputy Administrator.
7.32  Findings, analysis, and recommendations of hearing officer.
7.33  Determination of the Deputy Administrator.
7.34  Custody and use of books, records, and documents.
7.35  Administrative operations.
7.36  Implementation.
7.37  Applicability.
7.38  Retention of authority.

    Authority: Secs. 4 and 8 of the Soil Conservation and Domestic 
Allotment Act, as amended; 49 Stat. 164 and 1149, as amended (16 U.S.C. 
590d and 590h).

    Source: 52 FR 48512, Dec. 23, 1987, unless otherwise noted.



Sec. 7.1  Administration.

    (a) The regulations of this part are applicable to the election and 
functions of community and county Agricultural Stabilization and 
Conservation (``ASC'') committee and the functions of State ASC 
committees (``community'', ``county'', and ``State committees'', 
respectively). State, county, and community committees shall be under 
the general supervision of the Administrator, Agricultural Stabilization 
and Conservation Service (``ASCS'').
    (b) State, county, and community committees, and representatives and 
employees thereof, do not have authority to modify or waive any of the 
provisions of this part.
    (c) The State committees shall take any action required by these 
regulations which has not been taken by the county committee. The State 
committee shall also:
    (1) Correct, or require a county committee to correct, any action 
taken by such county committee which is not in accordance with this 
part, or
    (2) Require a county committee to withhold taking any action which 
is not in accordance with this part.
    (d) No provision or delegation herein to a State or county committee 
shall preclude the Administrator, ASCS, or a designee of the 
Administrator, from determining any question arising under this part, or 
from reversing or modifying any determination made by a State or county 
committee.

[[Page 297]]



Sec. 7.2  General.

    State, county, and community committees shall, as directed by the 
Secretary of a designee of the Secretary, carry out the programs and 
functions of the Secretary.



Sec. 7.3  Definitions.

    The terms defined in part 719 of this title governing the 
reconstitution of farms shall also be applicable to this part.



Sec. 7.4  Selection of committee members.

    State committee members shall be selected by the Secretary and shall 
serve at the pleasure of the Secretary. County and community committee 
members shall be elected in accordance with Sec. 7.9 of this part.



Sec. 7.5  Eligible voters.

    (a) Voters eligible to participate in:
    (1) The direct election of county committee members and
    (2) Community committee elections shall be persons who meet the 
requirements of paragraphs (b) and (c) of this section.
    (b) Any person, regardless of race, color, religion, sex, age, or 
national origin, who has an interest in a farm as owner, operator, 
tenant, or sharecropper and who is of legal voting age in the State in 
which the farm is located, and any person not of such legal voting age 
who is in charge of the supervision and conduct of the farming 
operations on an entire farm, shall be eligible to vote for direct 
election of county committee members or community committee members if 
such person is eligible to participate with respect to the farm in any 
program administered by the county committee.
    (c) In any State having a community property law, the spouse of a 
person who is eligible to vote in accordance with paragraph (b) of this 
section shall also be eligible to vote.
    (d) If an eligible voter is an entity other than an individual, the 
eligible voter's vote may be cast by a duly authorized representative of 
such entity, as determined by the Deputy Administrator, State and County 
Operations, ASCS (``Deputy Administrator'').
    (e) Each county office shall have a list of eligible voters for each 
community within the county available for public inspection in advance 
of the community committee election.
    (f) Each eligible voter shall be entitled to only one ballot in any 
election held in any one local administrative area. If the eligible 
voter has an interest in land located in more than one community in the 
county, such voter shall not be entitled to vote in more than one 
community in the county. There shall be no voting by proxy.



Sec. 7.6  Determination of elective areas.

    (a) Local administrative areas and communities. (1) Except as 
provided in paragraph (b) of this section, there shall be three local 
administrative areas in each county. With respect to Alaska, the term 
``county'' shall be the area so designated by the State committee.
    (2) Each local administrative area shall have at least one community 
committee consisting of three members.
    (3) The boundaries of the communities and local administrative areas 
shall be determined by the State committee after considering 
recommendations by the county committee.
    (b) Exceptions to general rule. (1) A local administrative area may 
have more than one community committee if the county had more than three 
community committees on December 23, 1985.
    (2) In counties with less than 150 producers, the county committee 
may reduce the number of communities to one.
    (3) The Deputy Administrator may include more than one county or 
parts of different counties in a community if it is determined that 
there is an insufficient number of producers in an area to establish a 
slate of candidates for a community committee and hold an election.
    (4) In counties which had less than three communities on December 
23, 1985, the county committee may establish one community for the 
county.
    (5) In any county where there is only one community, the community 
committee shall be the county committee.

[[Page 298]]

    (c) The county committee shall give public notice of the community 
boundaries in advance of the election.



Sec. 7.7  Calling of elections.

    (a) Each election of community committee members shall be held on a 
date, or within a specified period of time, determined by the Deputy 
Administrator. Such date or period of time shall fall within a period 
beginning on or after July 1 and ending not later than December 30 each 
year. Each such election shall be held in accordance with instructions 
issued by the Deputy Administrator which shall be available for 
examination in each county office.
    (b) If the number of eligible voters voting in any election of 
community committee members is so small that the State committee 
determines that the result of the election does not represent the views 
of a substantial number of eligible voters, the State committee shall 
declare the election void and call a new election. If it is determined 
by the State committee that the election for any position on a community 
committee has not been held substantially in accordance with official 
instructions, the State committee shall declare such election void and 
call a new election.



Sec. 7.8  Conduct of community committee elections.

    (a) The county committee serving at the time shall be responsible 
for the conduct of community committee elections in accordance with 
instructions issued by the Deputy Administrator.
    (b) Elections shall not be associated with, or held in conjunction 
with, any other election or referendum conducted for any other purpose.
    (c) The county committee shall give advance public notice of how, 
when, and where eligible voters may vote; when and where the votes will 
be counted; and the right to witness the vote counting.
    (d) All nominees shall be notified in writing of the outcome of the 
election by the county executive director.



Sec. 7.9  Election of community committee members, delegates to local administrative area and county conventions, and county committee members.

    (a) Where there are three local administrative areas as provided in 
Sec. 7.6 of this part there shall be an election of community committee 
members and alternates for a term of three years, or until such person's 
successor is elected and qualified, in one of the local administrative 
areas so that the term of office of the community committee members and 
alternates within one of the local administrative areas will expire each 
year.
    (b) Except as provided in paragraph (d) of this section, the 
eligible voters in a community shall elect every three years a community 
committee composed of three members and shall elect first and second 
alternates to serve as acting members of the community committee in the 
order elected in case of the temporary absence of a member, or to become 
a member of the community committee in the order elected in case of the 
resignation, disqualification, removal, or death of a member. An acting 
member of the community committee shall have the same duties and the 
same authority as a regular member of such committee. The election shall 
be conducted by mail ballot in all counties, except that the Deputy 
Administrator may authorize use of the meeting or polling place method 
in a specific county where such is deemed justified. Where elections are 
by mail or by polling place, the county committee shall give advance 
public notice that nominations may be made by petition. Election shall 
be by secret ballot and by plurality vote with each eligible voter 
having the option of writing in the names of candidates. Except as 
provided in paragraph (d) of this section and Sec. 7.10(c) of this part, 
the three regular members of the community committee shall be the 
delegates to the local administrative area and county conventions and 
the first and second alternates to community committee shall also be, in 
that order, alternate delegates to the local administrative area and 
county conventions. A person

[[Page 299]]

may not serve as delegate if such person has been a member of the county 
committee for that county during the 90 days preceding the community 
committee election. Failure to elect the prescribed number of alternates 
at the regular election shall not invalidate such election or require a 
special election to elect additional alternates.
    (c) In any county where there is only one local administrative area, 
the community committee shall be the county committee.
    (d) Where there is only one community in the county, one committee 
person shall be elected to hold office for a term of 3 years, or until 
such person's successor is elected and qualified, so that the term of 
office of one committee member will expire in each year. There shall 
also be elected annually a first alternate and second alternate to serve 
as acting members in the order elected in case of the temporary absence 
of a member or to become a member in the order elected in the case of 
resignation, disqualification, removal, or death of a member of the 
committee. In the event an alternate fills a permanent vacancy on the 
committee, such person shall assume the office until the next election 
or until the replaced committee member's successor is elected and 
qualified. An acting member shall have the same duties and authority as 
a regular member.
    (e) In any county where there are three local administrative areas, 
the delegates elected pursuant to Sec. 7.9 (a) and (b) of this part 
shall meet in a local administrative area convention held before the 
close of the same calendar year in which they were elected to elect a 
county committee member and a first and second alternate. A first and 
second alternate shall serve as acting members of the committee in the 
order elected in case of the temporary absence of a member, or to become 
a member in the order elected in case of the resignation, 
disqualification, removal, or death of a member of the county committee. 
In the event an alternate fills a permanent vacancy on the county 
committee, such person shall assume the unexpired term of the county 
committee member who was replaced. An acting member of the county 
committee shall have the same duties and authority as a member. The 
Deputy Administrator may fix the exact convention date. Each delegate 
shall be entitled to only one vote on any ballot, and there shall be no 
voting by proxy. A majority of the delegates so elected and qualified to 
vote at the time of the convention shall constitute a quorum. Such 
convention shall be held to the extent practicable in the manner set 
forth in Sec. 7.10 of this part and in accordance with instructions 
issued by the Deputy Administrator.

[52 FR 48512, Dec. 23, 1987, as amended at 53 FR 23749, June 24, 1988]



Sec. 7.10  Conduct of county convention.

    (a) The county committee serving at the time shall be responsible 
for designating the place at which the county convention will be held 
and for the conduct of the convention in accordance with instructions 
issued by the Deputy Administrator.
    (b) The delegates to the county convention shall determine which 
county committee members shall be the county committee chairperson and 
county committee vice-chairperson.
    (c) Each local administrative area shall have the same number of 
delegates at the county convention. If a portion of the delegates from a 
local administrative area are precluded from attending the county 
convention as the result of the limitation imposed by the preceding 
sentence, the delegates from such local administrative area shall elect 
those delegates who shall attend the county convention.
    (d) County conventions shall not be associated with or held in 
conjunction with any other election or referendum conducted for any 
other purpose.
    (e) The county committee shall give advance public notice of the 
county convention which shall be open to the public.
    (f) The county executive director shall notify in writing all newly 
elected county committee members, alternates, and county committee 
members with unexpired terms of the election results.



Sec. 7.11  County committee members.

    (a) County committee members elected in accordance with Sec. 7.9 of 
this part shall hold office for a term of

[[Page 300]]

three years or until a successor is elected and qualified.
    (b) The county committee shall select a secretary who shall be the 
county executive director, other employee of the county committee, or 
the county agricultural extension agent for the county. If the county 
agricultural extension agent is not selected as secretary to the county 
committee, that person shall be an ex officio member of the county 
committee but shall not have the power to vote.

[52 FR 48512, Dec. 23, 1987, as amended at 53 FR 23750, June 24, 1988]



Sec. 7.12  Tie votes.

    (a) Tie votes in community committee elections held by mail or 
polling place method shall be settled by lot. Tie votes in such 
elections held by the meeting method which cannot be settled by further 
balloting on the same day shall be settled by lot. In counties with one 
local administrative area, a tie vote in determining the chairperson and 
vice chairperson of the county committee which cannot be settled by 
further balloting on the same day shall be settled by lot.
    (b) In the county or local administrative area convention, tie votes 
which cannot be settled by further balloting on the same day shall be 
settled by lot.



Sec. 7.13  Vacancies.

    (a) In case of a vacancy in the office of chairperson of county or 
community committee, the respective vice chairperson shall become 
chairperson; in case of a vacancy in the office of vice chairperson, the 
respective third member shall become vice chairperson; in case of a 
vacancy in the office of the third member, the respective first 
alternate shall become the third member; and in case of a vacancy in the 
office of the first alternate, the respective second alternate shall 
become the first alternate. When unanimously recommended by the three 
members of the county committee, as constituted under this paragraph and 
paragraph (c) of this section, and approved by the State committee, the 
offices of chairperson and vice chairperson of the county committee may 
be filled from such membership without regard to the order of succession 
prescribed in this paragraph or the action of the delegates to the 
county convention.
    (b) In case of a vacancy in the panel of delegates to the local 
administrative area or county convention, the respective community 
committee alternates shall act as delegates.
    (c) In the event that a vacancy, other than one caused by temporary 
absence, occurs in the membership of the county committee and no 
alternate is available to fill the vacancy, the State committee shall 
call a meeting of the delegates of the appropriate community committees 
to elect persons to fill such vacancies as exist in the membership of 
the county committee and in the panel of alternates, except as provided 
in Sec. 7.28 of this part.
    (d) In the event that a vacancy, other than one caused by temporary 
absence, occurs in the membership of the community committee and no 
alternate is available to fill the vacany, a special election shall be 
held to fill such vacancies as exist in the membership and in the panel 
of alternates.



Sec. 7.14  Appeals.

    (a) Any eligible voter in the county may appeal to the county 
committee in writing or in person, or both:
    (1) The eligibility or ineligibility of a person to vote,
    (2) The eligibility of a person to hold office, and
    (3) The validity of the community committee elections. Such appeal 
must be made within 15 days of the election date, except that appeals on 
a determination of eligibility of a person nominated by petition must be 
made within 7 days of the date of notification of ineligibility.
    (b) Any eligible voter in the county may appeal to the State 
committee in writing, in person, or both:
    (1) A county committee decision on an election appeal. An appeal of 
a county committee decision must be made within 15 days of the 
notification of the decision, and
    (2) The validity of a county convention. An appeal on the validity 
of a county convention must be made within 15 days of the county 
convention.

[[Page 301]]



Sec. 7.15  Eligibility requirements of county committee members, community committee members, and delegates.

    (a) To be eligible to hold office as a county committee member, 
community committee member, a delegate, or an alternate to any such 
office, a person must meet the conditions set forth in this section.
    (b) Such person must:
    (1) Be eligible to vote in the local administrative area in which 
the election is held if proposed for county committee member or 
alternate, or in the community in which the election is held if proposed 
for community committee member or alternate;
    (2)(i) Except as provided in paragraph (b)(2)(ii) of this section, 
be residing in the local administrative area in which the election is 
held if proposed for county committee member or alternate, or be 
residing in the community in which the election is held if proposed for 
community committee member or alternate.
    (ii) In cases where a State line, a county line, a local 
administrative area boundary, or a community boundary runs through a 
farm, eligible persons residing on such farm may hold office in the 
county or community in which the farm has been determined to be located 
for program participation purposes. In cases where a candidate has no 
farming interests in the local administrative area or community in which 
the person resides or only a token amount, as determined by the State 
committee, an eligible person may hold office when such person resides 
in the county and has farming interests in the local administrative area 
or community in which the person is a candidate.
    (3) Not be ineligible under Sec. 7.27 of this part.
    (4) Not have been dishonorably discharged from any branch of the 
armed services; removed for cause from any public office; convicted of 
any fraud, larceny, embezzlement, or felony, unless any such 
disqualification is waived by the State committee or the Deputy 
Administrator;
    (5) Not have been removed as a county committee member, community 
committee member, delegate, alternate to any such office, or as an 
employee for: Failure to perform the duties of the office; committing, 
attempting, or conspiring to commit fraud; incompetence; impeding the 
effectiveness of any program administered in the county; refusal to 
carry out or failure to comply with the Department's policy relating to 
equal opportunity and civil rights, including the equal employment 
policy, or interfering with others in carrying out such policy; or for 
violation of official instructions, unless any such disqualification is 
waived by the State committee or the Deputy Administrator;
    (6) Not have been disqualified for future service because of a 
determination by a State committee that during previous service as a 
county committee member, community committee member, delegate, alternate 
of any such office, or as an employee of the county committee such 
person has: Failed to perform the duties of such office or employment; 
committed, attempted, or conspired to commit fraud; impeded the 
effectiveness of any program administered in the county; in the course 
of their official duties, refused to carry out or failed to comply with 
the Department's policy relating to equal opportunity and civil rights, 
including the equal employment policy, or interfered with others in 
carrying out such policy; or violated official instructions, unless any 
such disqualification is waived by the State committee or the Deputy 
Administrator;
    (7) During the term of office, not be a full-time employee of the 
U.S. Department of Agriculture;
    (8) If the office is that of county committee member, not be a sales 
agent or employee of the Federal Crop Insurance Corporation during the 
term of office;
    (9) If the office is that of delegate to the local administrative 
area or county convention, not have been a county committee member for 
that county during the 90 days preceding the community election;
    (10) If the office is that of county committee member, not be 
serving as a county committee member with one or more years following 
the current election remaining in the term of office; and

[[Page 302]]

    (11) If the office is that of county committee member, not have 
served three consecutive terms as county committee member just prior to 
the current election, except that: (i) Any partial term served by an 
alternate who filled a permanent vacancy on the county committee, shall 
not count toward this three term limitation; and
    (ii) In the case of a person elected to be a national officer or 
State president of the National Association of Farmer Elected 
Committeemen, the limitation shall be four consecutive terms.

[52 FR 48512, Dec. 23, 1987, as amended at 59 FR 15827, Apr. 5. 1994]



Sec. 7.16  Eligibility requirements of all other personnel.

    (a) The county executive director and other employees of the county 
committee must not have been: Dishonorably discharged from any branch of 
the armed services; removed for cause from any public office; or 
convicted of any fraud, larceny, embezzlement, or felony, unless any 
such disqualification is waived by the State committee or the Deputy 
Administrator.
    (b) The county executive director or any other employee of the 
county committee must not have been removed as a county committee 
member, community committee member, delegate, alternate to any such 
office, county executive director, or other employee of the county 
committee for: Failure to perform the duties of the office; committing, 
attempting, or conspiring to commit fraud; incompetence; impeding the 
effectiveness of any program administered in the county; refusal to 
carry out or failure to comply with the Department's policy relating to 
equal opportunity and civil rights, including equal employment policy, 
or interfering with others in carrying out such policy; or for violation 
of official instructions, unless such disqualification is waived by the 
State committee or the Deputy Administrator.
    (c) The county executive director or any other employee of the 
county committee must not have been disqualified for future employment 
because of a determination by a State committee that during previous 
service as a county committee member, community committee member, 
delegate, alternate to any such office, or as an employee of the county 
committee has: Failed to perform the duties of such office or 
employment; committed, attempted, or conspired to commit fraud; impeded 
the effectiveness of any program administered in the county; refused to 
carry out or failed to comply with the Department's policy relating to 
equal opportunity and civil rights, including the equal employment 
policy, or interfered with others in carrying out such policy; or 
violated official instructions, unless such disqualification is waived 
by the State committee or the Deputy Administrator.
    (d) The tenure of employment of any count executive director or 
other employee of the county committee shall be terminated as soon as 
any such person becomes ineligible for employment under the provisions 
of this section.



Sec. 7.17  Dual office.

    (a) County committee membership. A member of the county committee 
may not be at the same time:
    (1) A member of a community committee;
    (2) A delegate to a local administrative area convention;
    (3) A delegate to a county convention;
    (4) The secretary to the county committee;
    (5) A member of the State committee; or
    (6) County executive director or any other county office employee.
    (b) Community committee membership. A member of the community 
committee may not be at the same time:
    (1) A member of a county committee;
    (2) The secretary to the county committee;
    (3) A member of the State committee; or
    (4) County executive director or regular county office employee.
    (c) Delegate to conventions.  A delegate to the local administrative 
area or county convention may not be a member of the State committee.



Sec. 7.18  Terms of office of county and community members.

    The term of office of county and community committee members and 
alternates to such office shall begin on a

[[Page 303]]

date fixed by the Deputy Administrator, which shall be after their 
election and not later than the first day in the next January. Before 
any such county committee members or alternate county committee members 
may take office, such person shall sign an oath of office pledge that 
they will faithfully, fairly, and honestly perform to the best of their 
ability all of the duties devolving on them as committee members. A term 
of office shall continue until a successor is elected and qualified as 
provided in Secs. 7.8 and 7.9 of this part.



Sec. 7.19  Terms of office of delegates to the conventions.

    The terms of office of delegates and alternates to the local 
administrative area and county conventions shall begin immediately upon 
their election and shall continue until their respective successors have 
elected and qualified.



Sec. 7.20  State committee duties.

    The State committee, subject to the general direction and 
supervision of the Deputy Administrator, shall be generally responsible 
for carrying out in the State the agricultural conservation program, the 
production adjustment and price support programs, the acreage allotment 
and marketing quota programs, the wool and mohair incentive payment 
program, and any other program or function assigned by the Secretary or 
a designee of the Secretary.



Sec. 7.21  County committee duties.

    (a) The county committee, subject to the general direction and 
supervision of the State committee, and acting through community 
committee members and other personnel, shall be generally responsible 
for carrying out in the county the agricultural conservation program, 
the production adjustment and price support programs, the acreage 
allotment and marketing quota programs, the wool and mohair incentive 
payment program, and any other program or function assigned by the 
Secretary or a designee of the Secretary.
    (b) The county committee shall:
    (1) Enter into leasing agreements for such office space as needed in 
accordance with official instructions.
    (2) Employ the county executive director, subject to standards and 
qualifications furnished by the State committee, to serve at the 
pleasure of the county committee, except that incumbent directors shall 
not be removed other than in accordance with the provisions of Sec. 7.28 
of this part until all members of the county committee have been in 
office for at least 90 days. There shall be no employment discrimination 
due to race, religion, color, sex, age, or national origin. The county 
executive director may not be removed for advocating or carrying out the 
Department's policy on equal opportunity and civil rights, including the 
equal employment policy. In the event it is claimed that dismissal is 
for such reasons, the dismissal shall not become effective until the 
State committee and the Deputy Administrator have determined that 
dismissal was not because of such reasons;
    (3) Direct the activities of the local committees elected in the 
county;
    (4) Pursuant to official instructions, review, approve, and certify 
forms, reports, and documents requiring such action in accordance with 
such instructions;
    (5) Recommend to the State committee needed changes in boundaries of 
community and local administrative areas;
    (6) Make available to farmers and the public, information concerning 
the objectives and operations of the programs administered through the 
county committee;
    (7) Make available to agencies of the Federal Government and others 
information with respect to the county committee activities in 
accordance with official instructions issued;
    (8) Give public notice of the designation and boundaries of each 
community within the county not less than 50 days prior to the election 
of community committee members and delegates;
    (9) Direct the giving of notices in accordance with applicable 
regulations and official instructions;
    (10) Recommend to the State committee desirable changes in or 
additions to existing programs;

[[Page 304]]

    (11) Conduct such hearings and investigations as the State committee 
may request; and
    (12) Perform such other duties as may be prescribed by the State 
committee.



Sec. 7.22  Community committee duties.

    (a) The community committee shall be subject to the general 
direction and supervision of the county committee.
    (b) The community committee shall:
    (1) Serve as an advisor and consultant to the county committee;
    (2) Periodically meet with the county committee and State committee 
to be informed on farm program issues;
    (3) Communicate with producers on issues or concerns regarding farm 
programs;
    (4) Report to the county committee, the State committee, and other 
interested persons on changes to, or modification of, farm programs 
recommended by producers;
    (5) Perform such other functions as are required by law or as the 
Secretary or a designee of the Secretary may specify.



Sec. 7.23  Chairperson of the county committee duties.

    The chairperson of the county committee or the person acting as the 
chairperson shall preside at meetings of the county committee, certify 
such documents as may require the chairperson's certification, and 
perform such other duties as may be prescribed by the State committee.



Sec. 7.24  Chairperson of the community committee duties.

    The chairperson of the community committee or the person acting as 
the chairperson shall preside at meetings of the community committee, 
and perform such other duties as may be assigned by the county 
committee.



Sec. 7.25  County executive director duties.

    (a) The county executive director shall execute the policies 
established by the county committee and be responsible for the day-to-
day operations of the county office.
    (b) The county executive director shall:
    (1) In accordance with standards and qualifications furnished by the 
State committee, employ the personnel of the county office to serve at 
the pleasure of the county executive director. There shall be no 
employment discrimination due to race, religion, color, sex, age, or 
national origin. An employee may not be removed under this paragraph for 
advocating or carrying out the Department's policy on equal opportunity 
and civil rights, including the equal employment policy. In the event it 
is claimed that the dismissal is for such reason, the dismissal shall 
not become effective until the State committee and the Deputy 
Administrator have determined that dismissal was not because of such 
reason;
    (2) Receive, dispose of, and account for all funds, negotiable 
instruments, or property coming into the custody of the county 
committee;
    (3) Serve as counselor to the local administrative area and county 
convention chairperson on election procedures; and
    (4) Supervise, under the direction of the county committee, the 
activities of the communitiy committees elected in the county.



Sec. 7.26  Private business activity and conflicts of interest.

    (a) No county committee member, community committee member, 
delegate, alternate to any such office, or county office employee shall 
at any time use such office or employment to promote any private 
business interest.
    (b) County committee members, community committee members, 
delegates, or alternates, and any person employed in the county office 
shall be subject to the official instructions issued with respect to 
conflicts of interest and proper conduct.



Sec. 7.27  Political activity.

    (a) No person may be a member of the county governing body or hold a 
Federal, State, or county office filled by an election held pursuant to 
law or be employed by any such office and also hold office as a county 
committee member, community committee member, delegate, alternate to 
such office, or be employed in any capacity, except, that members of 
school boards, soil

[[Page 305]]

conservation district boards, weed control district boards, or of 
similar boards are not ineligible to hold office or employment under 
this paragraph solely because of membership on such boards.
    (b) No person may be a candidate for membership on the county 
governing body or for any Federal, State, or county office filled by an 
election held pursuant to law and hold office as a county committee 
member, community committee member, delegate, alternate to any such 
office, or be employed in any capacity, except, that candidates for 
school boards, soil conservation district boards, irrigation district 
boards, drainage district boards, weed control district boards, or for 
similar boards are not ineligible to hold office or employment under 
this subsection solely because of candidacy for such boards.
    (c) No person may be an officer, employee, or delegate to a 
convention of any political party or political organization and hold 
office as a county committee member, community committee member, 
delegate, alternate to any such office, or be employed in any capacity.
    (d) The tenure of office of any county committee member, community 
committee member, delegate, alternate to any such office, or the 
employment of any employee, shall be automatically terminated as soon as 
any such person becomes ineligible for office of employment under the 
provisions of paragraph (a), (b), or (c) of this section.
    (e) No county committee member, community committee member, 
delegate, or alternate to any such office, or any employee shall at any 
time engage in the following political activities:
    (1) Solicit or receive any contributions (including the sale of 
tickets) for political party organizations or for a candidate for 
political office or for any other political purpose in any room or 
building used for the transaction of any Federal official business, or 
at any place from any other county committee member, community committee 
member, delegate, or alternate to any such office or employee.
    (2) Use official authority or influence to discharge, remove, 
demote, or promote any employee, or threaten or promise to so do, for 
withholding or giving contributions (including the buying or the refusal 
to buy tickets) for political purposes, or for supporting or opposing 
any candidate or any political organization in any primary, general, or 
special election for political office.
    (3) Use or direct or permit the use of any official space, 
equipment, materials, supplies, or personal services either to support 
or oppose any political office holder, candidate or party, or for any 
other political purpose.
    (f) A county committee member or alternate to such office, an 
employee on any day when entitled to receive pay for services in 
performance of duties, or an employee who serves during a continuous 
period of 90 days or more and has a regular tour of duty established in 
advance at any time, shall not solicit, collect, receive, disburse, or 
otherwise handle contributions of money, pledges, gifts, or anything of 
value (including the sale of tickets) made for:
    (1) Political party organizations;
    (2) A candidate for political office in any primary, general, or 
special election, but excluding such activities on behalf of individual 
candidates in township and municipal elections; or
    (3) Any other political purpose.

[52 FR 48512, Dec. 23, 1987; 53 FR 1441, Jan. 19, 1988]



Sec. 7.28  Removal from office or employment for cause.

    (a) Any county committee member, community committee member, 
delegate to the local administrative area convention or the county 
convention, an alternate to any such office, county executive director, 
or any other county employee who: Fails to perform the duties of office; 
commits or attempts, or conspires to commit fraud; is incompetent; 
impedes the effectiveness of any program administered in the county; 
violates the provisions of Sec. 7.27 (e) or (f) of this part; refuses to 
carry out or fails to comply with the equal opportunity and civil 
rights, including the equal employment policy, or who interferes with 
others in carrying out such policy; or violates official instructions, 
shall be suspended from office or employment. Any person who is under

[[Page 306]]

formal investigation for any of the above-cited reasons may be 
suspended. The suspension action may be taken by the county executive 
director with respect to any other employee, or by the county committee 
or State committee with respect to the county executive director or any 
other county employee and by the State committee with respect to any 
county committee member, community committee member, delegate to the 
local administrative area convention or the county convention, or any 
alternate to any such office. Any person suspended shall be given a 
written statement of the reasons for such action and be allowed 15 days 
from the date of mailing of the notice of suspension in which to advise 
the county committee, or the State committee if it made the suspension, 
in writing, in person, or both, why such person should be restored to 
duty.
    (b) The county committee or the county executive director, or the 
State committee if it made the suspension, following such further 
investigation as is deemed necessary shall restore to duty or remove the 
suspended person. The county committee or county executive director may 
not restore a suspended person to duty without prior written approval of 
the State committee, and, if such approval is denied, shall promptly 
remove such person. Upon refusal or failure of the county committee or 
the county executive director to remove promptly the suspended person, 
the State committee shall remove such person. In the event further 
investigation develops reasons for the action taken, in addition to 
those disclosed in the suspension notice, the suspended person shall be 
given written notification of such additional reasons and allowed 15 
days from the date of mailing of the notice of additional reasons for 
the suspension in which to advise why such person should be restored to 
duty. In the event a person under suspension submits a resignation, 
acceptance thereof shall not prevent a determination by the county 
committee or State committee that such person would have been removed 
had the person remained in the position. Such determination shall 
constitute removal within the meaning of Secs. 7.27 (e) and 7.28(c) of 
this part. The person so removed shall be given written notification of 
any such determination and the reasons therefor.
    (c) Any incumbent or former county committee member, community 
committee member, delegate to the local administrative area convention 
or the county convention, an alternate to any such office, county 
executive director, or any other county employee who during a term of 
employment: Fails or failed to perform the duties of employment; 
committed, attempted, or conspired to commit fraud; was incompetent; 
impeded the effectiveness of any program administered in the county; 
violated the provisions of Sec. 7.27 (e) or (f) of this part; refused to 
carry out or failed to comply with the Department's policy relating to 
equal opportunity and civil rights, including the equal employment 
policy; or violated official instructions, may be disqualified for 
future service or employment by the State committee. Before any such 
disqualification determination is made, the State committee shall 
undertake such investigation as it deems necessary, after which the 
State committee shall give the affected person a written statement of 
the determination for the proposed disqualification action. Such person 
shall have 15 days from the date of receipt of such determination to 
advise in writing, in person or both, why the action should not be 
taken. If any further investigation develops substantial additional 
reasons for disqualification, the person involved shall be given a 
written statement of such reasons and 15 days from the date of mailing 
in which to respond. The State committee may remove the disqualification 
for future service or employment only with prior approval of the Deputy 
Administrator.
    (d) Any county committee member, community committee member, 
delegate to the local administrative area convention or the county 
convention, or any alternate to any such office, county executive 
director, or any other county employee, who, prior to taking such 
persons's present office: Committed, or attempted or conspired to commit 
fraud; or impeded the effectiveness of any program administered in the 
county, may be suspended. Any such

[[Page 307]]

person who is under formal investigation for any reason set forth in 
this section may be suspended. The proceedings under this paragraph 
shall be applied the same as provided in paragraph (a) of this section.
    (e) If in the event of suspensions or vacancies there are less than 
two members, including alternates, available to serve on the county 
committee, the State committee shall designate a person to administer 
the programs in the county pending the exoneration or removal of those 
persons under investigation and, if removed, pending the election of new 
county committee members and alternates. Such person may be the 
remaining member or alternate member of the committee if available. Any 
person named by the State committee to serve in such capacity shall have 
full authority to perform all duties regularly performed by a duly 
elected county committee.



Sec. 7.29  Delegation of authority to Deputy Administrator.

    Notwithstanding the authority vested by this part in a State 
committee, a county committee, and the county executive director, the 
Deputy Administrator shall have authority to suspend and/or remove or 
disqualify for future service or employment, any county committee 
member, community committee member, delegate to the local administrative 
area convention or the county convention, an alternate to any such 
office, county executive director, or other county employee, for any and 
all of the reasons and causes authorizing such suspension, removal, and 
disqualification by the State committee, the county committee, or the 
county executive director. Any person suspended, removed or disqualified 
pursuant to this section shall be given a written statement of the 
reason for such action and shall be advised of the right of review as 
provided in Sec. 7.30 of this part.



Sec. 7.30  Right of review.

    Any person dissatisfied with a determination of the county committee 
or county executive director may appeal in writing or in person or both, 
such determination to the State committee. Any person dissatisfied with 
a determination of the State committee may appeal such determination in 
writing to the Deputy Administrator. Any person dissatisfied with the 
determination of the Deputy Administrator made under Sec. 7.29 of this 
part may request a reconsideration of such determination by the Deputy 
Administrator. Any such appeal or request for reconsideration shall be 
made within 15 days from the date of the mailing of the determination 
with respect to which the appeal or request is filed. Except as provided 
in Sec. 7.31 of this part, such appeals and requests for reconsideration 
shall be determined on an informal basis. The person filing the appeal 
or request for reconsideration may present reasons, in writing or in 
person, or both, why the determination should be reversed or modified. 
Within 60 days after the reasons have been presented, such person shall 
be notified of the determination on appeal or reconsideration. The 
notification shall clearly set forth the basis for the determination. 
The determination of the Deputy Administrator is final and not subject 
to further administrative review.



Sec. 7.31  Hearing in connection with appeals and requests for reconsideration to Deputy Administrator.

    Any person (the ``appellant'') filing an appeal with the Deputy 
Administrator, or a request for reconsideration of a determination made 
by the Deputy Administrator under Sec. 7.29 of this part, is entitled, 
at such person's election, to a hearing in connection therewith. If the 
appellant does not request a hearing, the appeal or reconsideration 
shall be handled in accordance with Sec. 7.30 of this part. If the 
appellant desires a hearing, such person shall so advise the Deputy 
Administrator. The hearing shall be conducted by the Deputy 
Administrator, or a designee of the Deputy Administrator, who shall 
serve as a hearing officer. The hearing shall be held at the time and 
place designated by the hearing officer. The appellant may appear 
personally or through or accompanied by a representative. The hearing 
officer shall conduct the hearing so as to bring out pertinent facts, 
including the production of pertinent documents. Rules of evidence shall 
not

[[Page 308]]

be applied strictly, but the hearing officer shall exclude irrelevant or 
unduly repetitious evidence. Information having a bearing on the issues 
shall be received in evidence. Both the appellant and the agency 
representatives are entitled to produce witnesses and the appellant and 
agency representative shall be given an opportunity to cross-examine 
witnesses. The hearing officer shall inform the witnesses that they are 
subject to a fine of not more than $10,000 or imprisonment for not more 
than 5 years, or both, for making any false statements (18 U.S.C. 1001). 
The hearing officer shall cause a transcript to be made of the hearing 
and it shall be made available to the appellant at actual costs.



Sec. 7.32  Findings, analysis, and recommendations of hearing officer.

    If the hearing has been conducted by a designee of the Deputy 
Administrator, the hearing officer shall, within 60 days from date of 
receipt of the transcript transmit to the Deputy Administrator:
    (a) The record of the hearing;
    (b) The findings and analysis of the hearing officer; and
    (c) A recommended determination.



Sec. 7.33  Determination of the Deputy Administrator.

    Within 30 days after receipt of the findings, analysis, and 
recommendations of the hearing officer that are made under Sec. 7.32 of 
this part, or within 60 days from the date of receipt of the transcript 
prepared under such section if the Deputy Administrator conducted the 
hearing, the Deputy Administrator shall make a final determination. The 
notification shall clearly set forth the basis for the determination. 
The determination of the Deputy Administrator is final and not subject 
to further administrative review.



Sec. 7.34  Custody and use of books, records, and documents.

    (a) All books, records, and documents of or used by the county 
committee in the administration of programs assigned to it, or in the 
conduct of elections, shall be the property of the Commodity Credit 
Corporation or the United States Department of Agriculture, as 
applicable, and shall be maintained in good order in the county office.
    (b) For polling and mail type elections, ballots shall remain in 
sealed boxes until the prescribed date for counting. Following the 
counting of ballots in all types of elections, the ballots shall be 
placed in sealed containers and retained for 30 days unless otherwise 
determined by the State committee.
    (c) The books, records, and documents referred to in paragraph (a) 
shall be available for use and examination:
    (1) At all times by authorized representatives of the Secretary; the 
Administrator, or a designee of the Administrator.
    (2) By state, county, and community committee members, and 
authorized employees of the State and county office in the performance 
of duties assigned to them under this part, subject to instructions 
issued by the Deputy Administrator;
    (3) At any reasonable time to any program participant insofar as 
such person's interests under the programs administered by the county 
committee may be affected, subject to instructions issued by the Deputy 
Administrator; and
    (4) To any other person only in accordance with instructions issued 
by the Deputy Administrator.



Sec. 7.35  Administrative operations.

    The administrative operations of county committees including but not 
limited to the following, shall be conducted, except as otherwise 
provided in these regulations, in accordance with official instructions 
issued: annual, sick, and other types of employee leave; location and 
use of the county committee office; the calling, and conduct of 
elections; and the maintenance of records of county and local committee 
meetings.



Sec. 7.36  Implementation.

    Unless specifically provided in this part, the Deputy Administrator, 
State and County Operations, or the Deputy Administrator, Management, 
ASCS, is authorized to issue the instructions and procedures referred to 
herein which implement the provisions of this part.

[[Page 309]]



Sec. 7.37  Applicability.

    This part shall apply to each State of the United States.



Sec. 7.38  Retention of authority.

    Nothing in this part shall preclude the Secretary, the 
Administrator, or the Deputy Administrator from administering any or all 
programs or exercising other functions delegated to the community 
committee, county committee, State committee, or any employee of such 
committees. In exercising this authority, the Secretary, the 
Administrator, or the Deputy Administrator may designate for such period 
of time as deemed necessary a person or persons of their choice to be in 
charge will full authority to carry on the programs or other functions 
without regard to the normal duties of such committees or employees.



PART 8--4-H CLUB NAME AND EMBLEM--Table of Contents




Sec.
8.1  Policy.
8.2  Delegation of authority.
8.3  Definitions.
8.4  Basic premises.
8.5  Revocation of present authorizations.
8.6  Authorization for use.
8.7  Continued use.
8.8  Use by public informational services.
8.9  Use in 4-H fund raising.

    Authority: 5 U.S.C. 301; 18 U.S.C. 707.

    Source: 50 FR 31582, Aug. 2, 1985, unless otherwise noted.



Sec. 8.1  Policy.

    The Cooperative Extension Service, of which the 4-H Club program is 
a part, invites and appreciates the cooperation of all organizations, 
agencies, and individuals whose interest, products, or services will 
contribute to the educational effort of the Cooperative Extension 
Service as conducted through the 4-H Club program.



Sec. 8.2  Delegation of authority.

    The Administrator of the Cooperative State Research, Education, and 
Extension Service, United States Department of Agriculture, may 
authorize the use of the 4-H Club Name and Emblem in accordance with the 
regulations in this part.

[50 FR 31582, Aug. 2, 1985, as amended at 60 FR 52293, Oct. 6, 1995]



Sec. 8.3  Definitions.

    4-H Club Name and Emblem as used in this part means the emblem 
consisting of a green four-leaf clover with stem and the letter ``H'' in 
white or gold on each leaflet, or any insignia in colorable imitation 
thereof, or the words, ``4-H Club,'' ``4-H Clubs'' or any combination of 
these or other words or characters in colorable imitation thereof.
    Cooperative Extension Service, as used in this part includes the 
entire Cooperative Extension System consisting of the Cooperative State 
Research, Education, and Extension Service, United States Department of 
Agriculture; the State Cooperative Extension Services; and the County 
Cooperative Extension Services.
    Cooperative State Research, Education, and Extension Service, United 
States Department of Agriculture as used in this part means the Federal 
agency within the United States Department of Agriculture which 
administers Federal agricultural cooperative extension programs.
    County Cooperative Extension Service as used in this part refers to 
a county Extension office or equivalent Extension office operating under 
a State Cooperative Extension Service.
    State Cooperative Extension Service as used in this part means an 
organization established at the land-grant college or university under 
the Smith-Lever Act of May 8, 1914, as amended (7 U.S.C. 341-349); 
section 209(b) of the Act of October 26, 1974, as amended (D.C. Code, 
through section 31-1719(b)); or section 1444 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977, as 
amended (7 U.S.C. 3221).

[50 FR 31582, Aug. 2, 1985, as amended at 52 FR 8432, Mar. 17, 1987; 52 
FR 47660, Dec. 15, 1987; 60 FR 52293, Oct. 6, 1995]



Sec. 8.4  Basic premises.

    (a) The 4-H Club Name and Emblem are held in trust by the Secretary 
of

[[Page 310]]

Agriculture of the United States Department of Agriculture for the 
educational and character-building purposes of the 4-H program and can 
be used only as authorized by the statute and according to the 
authorization of the Secretary or designated representative.
    (b) The 4-H Club Name and Emblem may be used by authorized 
representatives of the United States Department of Agriculture, the 
Cooperative Extension Services, the land-grant institutions, and the 
National 4-H Council, according to these regulations, for serving the 
educational needs and interests of 4-H youth.
    (c) Any use of the 4-H Club Name and Emblem is forbidden if it 
exploits the 4-H programs, its volunteer leaders or 4-H youth 
participants or the United States Department of Agriculture, the 
Cooperative Extension Services, or the land-grant institutions, or their 
employees.
    (d) The 4-H Club Name and Emblem shall not be used to imply 
endorsement of commercial firms, products, or services.



Sec. 8.5  Revocation of present authorizations.

    Effective September 16, 1985, authorization permits for the use of 
the 4-H Club Name and Emblem presently in effect will be revoked. 
However, such authorizations may be renewed upon written request.



Sec. 8.6  Authorization for use.

    (a) The Administrator of the Cooperative State Research, Education, 
and Extension Service may grant authorization for use of the 4-H Club 
Name and Emblem:
    (1) For educational or informational uses which the Cooperative 
Extension Service deems to be in the best interests of the 4-H program 
and which can be properly controlled by the Cooperative Extension 
Service.
    (2) For services to youth which the Cooperative Extension Service 
determines it is not in a position itself to perform.
    (b) Authorizations, when issued, will be valid for specified 
purposes and periods of time only. Application forms for requesting 
authorization to use the 4-H Club Name and Emblem may be obtained from 
the Administrator of the Cooperative State Research, Education, and 
Extension Service, United States Department of Agriculture, Washington, 
D.C. 20250.
    (c) Granting an authorization to an individual, organization, or 
institution for a specific use does not preclude granting a similar 
authorization to another individual, organization, or institution for 
the same or a similar purpose.
    (d) All uses of the 4-H Club Name or Emblem shall be consistent with 
the educational purposes, character-building objectives, and dignity of 
the 4-H program and the 4-H Club Name or Emblem shall be given a 
position of prominence. It is not permissible to superimpose any letter, 
design, or object on the 4-H Club Emblem, or to materially alter its 
intended shape.
    (e) Specific authorization is not required to use the 4-H Club Name 
or Emblem in media such as newspapers, periodicals, and radio and 
television programs when such use is primarily for educational or 
informational purposes. Likewise, specific authorization is not required 
to use the 4-H Club Name or Emblem in those exhibits, displays, etc., 
which are designed primarily to pay tribute to or salute the 4-H program 
and are in keeping with the policies enunciated herein.
    (f) Authorization must be obtained for use of the 4-H Club Name or 
Emblem by other than representatives of the Cooperative Extension 
Services, the land-grant institutions, and the National 4-H Council in 
connection with contests and awards, books, booklets, charts, posters, 
and all other forms of publications; all calendars regardless of origin 
or use; theatrical and nontheatrical motion pictures; slides, slide 
films, and other visual and audio-visual materials; supplies (whether to 
be sold or provided without charge); and titles of persons.
    (g) Any authorization or permission for use of the 4-H Club Name and 
Emblem may be revoked at any time after written notice.

[50 FR 31582, Aug. 2, 1985, as amended at 60 FR 52293, Oct. 6, 1995]

[[Page 311]]



Sec. 8.7  Continued use.

    (a) The Cooperative Extension Services, land-grant institutions, 
local 4-H Clubs and groups and other officially affiliated 4-H 
organziations recognized by the Secretary of Agriculture and the 
Cooperative Extension Service are authorized to use the 4-H Club Name or 
Emblem:
    (1) For their own educational or informational purposes according to 
these regulations;
    (2) On materials which are originated, requested, purchased, 
distributed, or sold by them for use in their respective geographical 
areas of responsibilities;
    (3) Except as specifically authorized by the above-named 
organizations for use within the respective geographic boundaries 
specified (club or group, county, area, State) and as provided for in 
paragraph (a)(4) of this section, manufacturers, wholesalers, jobbers, 
retailers, purchasers or others cannot manufacture, sell, or distribute 
materials bearing the 4-H Club Name or Emblem.
    (4) Any proposal for distribution on an interstate, regional, or 
nationwide basis of materials, supplies, and similar items bearing the 
4-H Club Name or Emblem which originates with an organization or 
individual not affiliated with the Cooperative Extension Service shall 
be brought to the attention of the Administrator of the Cooperative 
State Research, Education, and Extension Service, United States 
Department of Agriculture, for approval.

[50 FR 31582, Aug. 2, 1985, as amended at 60 FR 52293, Oct. 6, 1995]



Sec. 8.8  Use by public informational services.

    (a) In any advertisement, display, exhibit, visual and audio-visual 
material, news release, publication in any form, radio and television 
program devoted in whole or in part to 4-H, the 4-H message or salute 
must be distinctly set apart from any commercial product message or 
reference.
    (b) Advertisements, news releases, publications in any form, visuals 
and audio-visuals, or displays in any form must not include actual or 
implied testimonials or endorsements of business firms, commercial 
products or services, either by 4-H Clubs, other 4-H organizations and 
affiliated groups, 4-H youth participants, volunteer 4-H leaders, the 
Cooperative Extension Services, the land-grant institutions, USDA, or by 
any employees associated with any of the foregoing. Statements that a 
product is used or preferred to the exclusion of similar products are 
not permitted.
    (c) The granting of an authorization to a non-Extension affiliated 
agency, organization or individual, for production of films, visual and 
audio-visual materials, books, publications in any form, etc., is 
contingent upon approval of the initial proposal and subject to review 
of the script of the visual or audio-visual or draft of the publication 
when the draft is in the final working form.



Sec. 8.9  Use in 4-H fund raising.

    (a) Fund-raising programs using the 4-H Name or Emblem may be 
carried out for specific educational purposes. Such fund-raising 
programs and use of the 4-H name and emblem on, or associated with, 
products, and services for such purposes must have the approval of 
appropriate Cooperative Extension office, as follows:
    (1) Approval of the County Cooperative Extension Service, or the 
appropriate land-grant institution, if the fund-raising program is 
confined to the area served by the County Cooperative Extension Service.
    (2) Approval of the State Cooperative Extension Service, or the 
appropriate land-grant institution, if the fund-raising program is 
multi-county or Statewide.
    (3) Approval of the Administrator of the Cooperative State Research, 
Education, and Extension Service, United States Department of 
Agriculture, or a designee, if the fund-raising program is multi-State 
or Nationwide.
    (b) When used to promote 4-H educational programs, the 4-H Club name 
and emblem, subject to obtaining authorization as provided in these 
regulations, may be used on or associated with products and services 
sold in connection with 4-H fund-raising programs

[[Page 312]]

so long as no endorsement or the appearance of an endorsement of a 
commercial firm, product or service is either intended or effected. 
Tributes to 4-H contained on or associated with commerical products or 
services, when such products or services are used for the fund-raising 
activities, are subject to the requirements of this paragraph. All 
moneys received from 4-H fund-raising programs, except those necessary 
to pay reasonable expenses, must be expended to further the 4-H 
educational programs.

[52 FR 8432, Mar. 17, 1987, as amended at 60 FR 52293, Oct. 6, 1995]



PARTS 9-10 [RESERVED]






PART 11--NATIONAL APPEALS DIVISION RULES OF PROCEDURE--Table of Contents




Sec.
11.1  Definitions.
11.2  General statement.
11.3  Applicability.
11.4  Inapplicability of other laws and regulations.
11.5  Informal review of adverse decisions.
11.6  Director review of agency determination of appealability and right 
          of participants to Division hearing.
11.7  Ex parte communications.
11.8  Division hearings.
11.9  Director review of determinations of Hearing Officers.
11.10  Basis for determinations.
11.11  Reconsideration of Director determinations.
11.12  Effective date and implementation of final determinations of the 
          Division.
11.13  Judicial review.
11.14  Filing of appeals and computation of time.

    Authority: 5 U.S.C. 301; Title II, Subtitle H, Pub. L. 103-354, 108 
Stat. 3228 (7 U.S.C. 6991 et seq.); Reorganization Plan No. 2 of 1953 (5 
U.S.C. App.).

    Source: 60 FR 67308, Dec. 29, 1995, unless otherwise noted.



Sec. 11.1  Definitions.

    For purposes of this part:
    Adverse decision means an administrative decision made by an 
officer, employee, or committee of an agency that is adverse to a 
participant. The term includes a denial of equitable relief by an agency 
or the failure of an agency to issue a decision or otherwise act on the 
request or right of the participant within timeframes specified by 
agency program statutes or regulations or within a reasonable time if 
timeframes are not specified in such statutes or regulations. The term 
does not include a decision over which the Board of Contract Appeals has 
jurisdiction.
    Agency means:
    (1) The Agricultural Stabilization and Conservation Service (ASCS);
    (2) The Commodity Credit Corporation (CCC);
    (3) The Farm Service Agency (FSA);
    (4) The Farmers Home Administration (FmHA);
    (5) The Federal Crop Insurance Corporation (FCIC);
    (6) The Natural Resources Conservation Service (NRCS);
    (7) The Rural Business-Cooperative Service (RBS);
    (8) The Rural Development Administration (RDA);
    (9) The Rural Housing Service (RHS);
    (10) The Rural Utilities Service (RUS) (but not for programs 
authorized by the Rural Electrification Act of 1936 and the Rural 
Telephone Bank Act, 7 U.S.C. 901 et seq.);
    (11) The Soil Conservation Service (SCS);
    (12) A State, county, or area committee established under section 
8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590h(b)(5)); and
    (13) Any successor agency to the above-named agencies, and any other 
agency or office of the Department which the Secretary may designate.
    Agency record means all the materials maintained by an agency 
related to an adverse decision which are submitted to the Division by an 
agency for consideration in connection with an appeal under this part, 
including all materials prepared or reviewed by the agency during its 
consideration and decision-making process, but shall not include records 
or information not related to the adverse decision at issue. All 
materials contained in the agency record submitted to the Division shall 
be deemed admitted as evidence for purposes of a hearing or a record 
review under Sec. 11.8.
    Agency representative means any person, whether or not an attorney, 
who is authorized to represent the agency in

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an administrative appeal under this part.
    Appeal means a written request by a participant asking for review by 
the National Appeals Division of an adverse decision under this part.
    Appellant means any participant who appeals an adverse decision in 
accordance with this part. Unless separately set forth in this part, the 
term ``appellant'' includes an authorized representative.
    Authorized representative means any person, whether or not an 
attorney, who is authorized in writing by a participant, consistent with 
Sec. 11.6(c), to act for the participant in an administrative appeal 
under this part. The authorized representative may act on behalf of the 
participant except when the provisions of this part require action by 
the participant or appellant personally.
    Case record means all the materials maintained by the Secretary 
related to an adverse decision. The case record includes both the agency 
record and the hearing record.
    Days means calendar days unless otherwise specified.
    Department means the United States Department of Agriculture (USDA).
    Director means the Director of the Division or a designee of the 
Director.
    Division means the National Appeals Division established by this 
part.
    Equitable relief means relief which is authorized under section 326 
of the Food and Agriculture Act of 1962 (7 U.S.C. 1339a) and other laws 
administered by the agency.
    Ex parte communication means an oral or written communication to any 
officer or employee of the Division with respect to which reasonable 
prior notice to all parties is not given, but it shall not include 
requests for status reports, or inquiries on Division procedure, in 
reference to any matter or proceeding connected with the appeal 
involved.
    Hearing, except with respect to Sec. 11.5, means a proceeding before 
the Division to afford a participant the opportunity to present 
testimony or documentary evidence or both in order to have a previous 
determination reversed and to show why an adverse determination was in 
error.
    Hearing Officer means an individual employed by the Division who 
conducts the hearing and determines appeals of adverse decisions by any 
agency.
    Hearing record means all documents, evidence, and other materials 
generated in relation to a hearing under Sec. 11.8.
    Implement means the taking of action by an agency of the Department 
in order fully and promptly to effectuate a final determination of the 
Division.
    Participant means any individual or entity who has applied for, or 
whose right to participate in or receive, a payment, loan, loan 
guarantee, or other benefit in accordance with any program of an agency 
to which the regulations in this part apply is affected by a decision of 
such agency. With respect to guaranteed loans made by FSA, both the 
borrower and the lender jointly must appeal an adverse decision except 
that the denial or reduction of a final loss payment to a lender shall 
be appealed by the lender only. The term does not include persons whose 
claim(s) arise under:
    (1) Programs subject to various proceedings provided for in 7 CFR 
part 1;
    (2) Programs governed by Federal contracting laws and regulations 
(appealable under other rules and to other forums, including to the 
Department's Board of Contract Appeals under 7 CFR part 24);
    (3) The Freedom of Information Act (appealable under 7 CFR part 1, 
subpart A);
    (4) Suspension and debarment disputes, including, but not limited 
to, those falling within the scope of 7 CFR parts 1407 and 3017;
    (5) Export programs administered by the Commodity Credit 
Corporation;
    (6) Disputes between reinsured companies and the Federal Crop 
Insurance Corporation;
    (7) Tenant grievances or appeals prosecutable under the provisions 
of 7 CFR part 1944, subpart L, under the multi-family housing program 
carried out by RHS;
    (8) Personnel, equal employment opportunity, and other similar 
disputes with any agency or office of the Department which arise out of 
the employment relationship;

[[Page 314]]

    (9) The Federal Tort Claims Act, 28 U.S.C. 2671 et seq., or the 
Military Personnel and Civilian Employees Claims Act of 1964, 31 U.S.C. 
3721; or
    (10) Discrimination complaints prosecutable under the 
nondiscrimination regulations at 7 CFR parts 15, 15a, 15b, and 15e.
    Record review means an appeal considered by the Hearing Officer in 
which the Hearing Officer's determination is based on the agency record 
and other information submitted by the appellant and the agency, 
including information submitted by affidavit or declaration.
    Secretary means the Secretary of Agriculture.



Sec. 11.2  General statement.

    (a) This part sets forth procedures for proceedings before the 
National Appeals Division within the Department. The Division is an 
organization within the Department, subject to the general supervision 
of and policy direction by the Secretary, which is independent from all 
other agencies and offices of the Department, including Department 
officials at the state and local level. The Director of the Division 
reports directly to the Secretary of Agriculture. The authority of the 
Hearing Officers and the Director of the Division, and the 
administrative appeal procedures which must be followed by program 
participants who desire to appeal an adverse decision and by the agency 
which issued the adverse decision, are included in this part.
    (b) Pursuant to section 212(e) of the Federal Crop Insurance Reform 
and Department of Agriculture Reorganization Act of 1994, Public Law 
103-354 (the Act), 7 U.S.C. 6912(e), program participants shall seek 
review of an adverse decision before a Hearing Officer of the Division, 
and may seek further review by the Director, under the provisions of 
this part prior to seeking judicial review.



Sec. 11.3  Applicability.

    (a) Subject matter. The regulations contained in this part are 
applicable to adverse decisions made by an agency, including, for 
example, those with respect to:
    (1) Denial of participation in, or receipt of benefits under, any 
program of an agency;
    (2) Compliance with program requirements;
    (3) The making or amount of payments or other program benefits to a 
participant in any program of an agency; and
    (4) A determination that a parcel of land is a wetland or highly 
erodible land.
    (b) Limitation. The procedures contained in this part may not be 
used to seek review of statutes or USDA regulations issued under Federal 
law.



Sec. 11.4  Inapplicability of other laws and regulations.

    The provisions of the Administrative Procedure Act generally 
applicable to agency adjudications (5 U.S.C. 554, 555, 556, 557, & 3105) 
are not applicable to proceedings under this part. The Equal Access to 
Justice Act, as amended, 5 U.S.C. 504, does not apply to these 
proceedings. The Federal Rules of Evidence, 28 U.S.C. App., shall not 
apply to these proceedings.



Sec. 11.5  Informal review of adverse decisions.

    (a) Required informal review of FSA adverse decisions. A participant 
must seek an informal review of an adverse decision issued at the field 
service office level by an officer or employee of FSA, or by any 
employee of a county or area committee established under section 8(b)(5) 
of the Soil Conservation and Domestic Allotment Act, 16 U.S.C. 
590h(b)(5), before NAD will accept an appeal of an FSA adverse decision. 
Such informal review shall be done by the county or area committee with 
responsibility for the adverse decision at issue. The procedures for 
requesting such an informal review before FSA are found in 7 CFR part 
780. After receiving a decision upon review by a county or area 
committee, a participant may seek further informal review by the State 
FSA committee or may appeal directly to NAD under Sec. 11.6(b).
    (b) Optional informal review. With respect to adverse decisions 
issued at the State office level of FSA and adverse

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decisions of all other agencies, a participant may request an agency 
informal review of an adverse decision of that agency prior to appealing 
to NAD. Procedures for requesting such an informal review are found at 7 
CFR part 780 (FSA), 7 CFR part 614 (NRCS), 7 CFR part 1900, subpart B 
(RUS), 7 CFR part 1900, subpart B (RBS), and 7 CFR part 1900, subpart B 
(RHS).
    (c) Mediation. A participant also shall have the right to utilize 
any available alternative dispute resolution (ADR) or mediation program, 
including any mediation program available under title V of the 
Agriculture Credit Act of 1987, 7 U.S.C. 5101 et seq., in order to 
attempt to seek resolution of an adverse decision of an agency prior to 
a NAD hearing. If a participant:
    (1) Requests mediation or ADR prior to filing an appeal with NAD, 
the participant stops the running of the 30-day period during which a 
participant may appeal to NAD under Sec. 11.6(b)(1), and will have the 
balance of days remaining in that period to appeal to NAD once mediation 
or ADR has concluded.
    (2) Requests mediation or ADR after having filed an appeal to NAD 
under Sec. 11.6(b), but before the hearing, the participant will be 
deemed to have waived his right to have a hearing within 45 days under 
Sec. 11.8(c)(1) but shall have the right to have a hearing within 45 
days after conclusion of mediation or ADR.



Sec. 11.6  Director review of agency determination of appealability and right of participants to Division hearing.

    (a) Director review of agency determination of appealability. (1) 
Not later than 30 days after the date on which a participant receives a 
determination from an agency that an agency decision is not appealable, 
the participant must submit a written request to the Director to review 
the determination in order to obtain such review by the Director.
    (2) The Director shall determine whether the decision is adverse to 
the individual participant and thus appealable or is a matter of general 
applicability and thus not subject to appeal, and will issue a final 
determination notice that upholds or reverses the determination of the 
agency. This final determination is not appealable. If the Director 
reverses the determination of the agency, the Director will notify the 
participant and the agency of that decision and inform the participant 
of his or her right to proceed with an appeal.
    (3) The Director may delegate his or her authority to conduct a 
review under this subsection to any subordinate official of the Division 
other than a Hearing Officer. In any case in which such review is 
conducted by such a subordinate official, the subordinate official's 
determination shall be considered to be the determination of the 
Director and shall be final and not appealable.
    (b) Appeals of adverse decisions. (1) To obtain a hearing under 
Sec. 11.8, a participant personally must request such hearing not later 
than 30 days after the date on which the participant first received 
notice of the adverse decision or after the date on which the 
participant receives notice of the Director's determination that a 
decision is appealable. In the case of the failure of an agency to act 
on the request or right of a recipient, a participant personally must 
request such hearing not later than 30 days after the participant knew 
or reasonably should have known that the agency had not acted within the 
timeframes specified by agency program regulations, or, where such 
regulations specify no timeframes, not later than 30 days after the 
participant reasonably should have known of the agency's failure to act.
    (2) A request for a hearing shall be in writing and personally 
signed by the participant, and shall include a copy of the adverse 
decision to be reviewed, if available, along with a brief statement of 
the participant's reasons for believing that the decision, or the 
agency's failure to act, was wrong. The participant also shall send a 
copy of the request for a hearing to the agency, and may send a copy of 
the adverse decision to be reviewed to the agency, but failure to do 
either will not constitute grounds for dismissal of the appeal. Instead 
of a hearing, the participant may request a record review.

[[Page 316]]

    (c) If a participant is represented by an authorized representative, 
the authorized representative must file a declaration with NAD, executed 
in accordance with 28 U.S.C. 1746, stating that the participant has duly 
authorized the declarant in writing to represent the participant for 
purposes of a specified adverse decision or decisions, and attach a copy 
of the written authorization to the declaration.



Sec. 11.7  Ex parte communications.

    (a)(1) At no time between the filing of an appeal and the issuance 
of a final determination under this part shall any officer or employee 
of the Division engage in ex parte communications regarding the merits 
of the appeal with any person having any interest in the appeal pending 
before the Division, including any person in an advocacy or 
investigative capacity. This prohibition does not apply to:
    (i) Discussions of procedural matters related to an appeal; or
    (ii) Discussions of the merits of the appeal where all parties to 
the appeal have been given notice and an opportunity to participate.
    (2) In the case of a communication described in paragraph (a)(1)(ii) 
of this section, a memorandum of any such discussion shall be included 
in the hearing record.
    (b) No interested person shall make or knowingly cause to be made to 
any officer or employee of the Division an ex parte communication 
relevant to the merits of the appeal.
    (c) If any officer or employee of the Division receives an ex parte 
communication in violation of this section, the one who receives the 
communication shall place in the hearing record:
    (1) All such written communications;
    (2) Memoranda stating the substance of all such oral communications; 
and
    (3) All written responses to such communications, and memoranda 
stating the substance of any oral responses thereto.
    (d) Upon receipt of a communication knowingly made or knowingly 
caused to be made by a party in violation of this section the Hearing 
Officer or Director may, to the extent consistent with the interests of 
justice and the policy of the underlying program, require the party to 
show cause why such party's claim or interest in the appeal should not 
be dismissed, denied, disregarded, or otherwise adversely affected on 
account of such violation.



Sec. 11.8  Division hearings.

    (a) General rules. (1) The Director, the Hearing Officer, and the 
appellant shall have access to the agency record of any adverse decision 
appealed to the Division for a hearing. Upon request by the appellant, 
the agency shall provide the appellant a copy of the agency record.
    (2) The Director and Hearing Officer shall have the authority to 
administer oaths and affirmations, and to require, by subpoena, the 
attendance of witnesses and the production of evidence. A Hearing 
Officer shall obtain the concurrence of the Director prior to issuing a 
subpoena.
    (i) A subpoena requiring the production of evidence may be requested 
and issued at any time while the case is pending before the Division.
    (ii) An appellant or an agency, acting through any appropriate 
official, may request the issuance of a subpoena requiring the 
attendance of a witness by submitting such a request in writing at least 
14 days before the scheduled date of a hearing. The Director or Hearing 
Officer shall issue a subpoena at least 7 days prior to the scheduled 
date of a hearing.
    (iii) A subpoena shall be issued only if the Director or a Hearing 
Officer determines that:
    (A) For a subpoena of documents, the appellant or the agency has 
established that production of documentary evidence is necessary and is 
reasonably calculated to lead to information which would affect the 
final determination or is necessary to fully present the case before the 
Division; or
    (B) For a subpoena of a witness, the appellant or the agency has 
established that either a representative of the Department or a private 
individual possesses information that is pertinent and necessary for 
disclosure of all relevant facts which could impact the final 
determination, that the information cannot be obtained except through 
testimony of the person, and that the testimony cannot be obtained 
absent issuance of a subpoena.

[[Page 317]]

    (iv) The party requesting issuance of a subpoena shall arrange for 
service. Service of a subpoena upon a person named therein may be made 
by registered or certified mail, or in person. Personal service shall be 
made by personal delivery of a copy of the subpoena to the person named 
therein by any person who is not a party and who is not less than 18 
years of age. Proof of service shall be made by filing with the Hearing 
Officer or Director who issued the subpoena a statement of the date and 
manner of service and of the names of the persons served, certified by 
the person who made the service in person or by return receipts for 
certified or registered mail.
    (v) A party who requests that a subpoena be issued shall be 
responsible for the payment of any reasonable travel and subsistence 
costs incurred by the witness in connection with his or her appearance 
and any fees of a person who serves the subpoena in person. The 
Department shall pay the costs associated with the appearance of a 
Department employee whose role as a witness arises out of his or her 
performance of official duties, regardless of which party requested the 
subpoena. The failure to make payment of such charges on demand may be 
deemed by the Hearing Officer or Director as sufficient ground for 
striking the testimony of the witness and the evidence the witness has 
produced.
    (vi) If a person refuses to obey a subpoena, the Director, acting 
through the Office of the General Counsel of the Department and the 
Department of Justice, may apply to the United States District Court in 
the jurisdiction where that person resides to have the subpoena enforced 
as provided in the Federal Rules of Civil Procedure (28 U.S.C. App.).
    (3) Testimony required by subpoena pursuant to paragraph (a)(2) of 
this section may, at the discretion of the Director or a Hearing 
Officer, be presented at the hearing either in person or telephonically.
    (b) Hearing procedures applicable to both record review and 
hearings. (1) Upon the filing of an appeal under this part of an adverse 
decision by any agency, the agency promptly shall provide the Division 
with a copy of the agency record. If requested by the appellant prior to 
the hearing, a copy of such agency record shall be provided to the 
appellant by the agency within 10 days of receipt of the request by the 
agency.
    (2) The Director shall assign the appeal to a Hearing Officer and 
shall notify the appellant and agency of such assignment. The notice 
also shall advise the appellant and the agency of the documents required 
to be submitted under paragraph (c)(2) of this section, and notify the 
appellant of the option of having a hearing by telephone.
    (3) The Hearing Officer will receive evidence into the hearing 
record without regard to whether the evidence was known to the agency 
officer, employee, or committee making the adverse decision at the time 
the adverse decision was made.
    (c) Procedures applicable only to hearings. (1) Upon a timely 
request for a hearing under Sec. 11.6(b), an appellant has the right to 
have a hearing by the Division on any adverse decision within 45 days 
after the date of receipt of the request for the hearing by the 
Division.
    (2) The Hearing Officer shall set a reasonable deadline for 
submission of the following documents:
    (i) By the appellant:
    (A) A short statement of why the decision is wrong;
    (B) A copy of any document not in the agency record that the 
appellant anticipates introducing at the hearing; and
    (C) A list of anticipated witnesses and brief descriptions of the 
evidence such witnesses will offer.
    (ii) By the agency:
    (A) A copy of the adverse decision challenged by the appellant;
    (B) A written explanation of the agency's position, including the 
regulatory or statutory basis therefor;
    (C) A copy of any document not in the agency record that the agency 
anticipates introducing at the hearing; and
    (D) A list of anticipated witnesses and brief descriptions of the 
evidence such witnesses will offer.
    (3) Not less than 14 days prior to the hearing, the Division must 
provide the appellant, the authorized representative, and the agency a 
notice of hearing

[[Page 318]]

specifying the date, time, and place of the hearing. The hearing will be 
held in the State of residence of the appellant, as determined by the 
Hearing Officer, or at a location that is otherwise convenient to the 
appellant, the agency, and the Division. The notice also shall notify 
all parties of the right to obtain an official record of the hearing.
    (4) Pre-hearing conference. Whenever appropriate, the Hearing 
Officer shall hold a pre-hearing conference in order to attempt to 
resolve the dispute or to narrow the issues involved. Such pre-hearing 
conference shall be held by telephone unless the Hearing Officer and all 
parties agree to hold such conference in person.
    (5) Conduct of the hearing. (i) A hearing before a Hearing Officer 
will be in person unless the appellant agrees to a hearing by telephone.
    (ii) The hearing will be conducted by the Hearing Officer in the 
manner determined by the Division most likely to obtain the facts 
relevant to the matter or matters at issue. The Hearing Officer will 
allow the presentation of evidence at the hearing by any party without 
regard to whether the evidence was known to the officer, employee, or 
committee of the agency making the adverse decision at the time the 
adverse decision was made. The Hearing Officer may confine the 
presentation of facts and evidence to pertinent matters and exclude 
irrelevant, immaterial, or unduly repetitious evidence, information, or 
questions. Any party shall have the opportunity to present oral and 
documentary evidence, oral testimony of witnesses, and arguments in 
support of the party's position; controvert evidence relied on by any 
other party; and question all witnesses. When appropriate, agency 
witnesses requested by the appellant will be made available at the 
hearing. Any evidence may be received by the Hearing Officer without 
regard to whether that evidence could be admitted in judicial 
proceedings.
    (iii) An official record shall be made of the proceedings of every 
hearing. This record will be made by an official tape recording by the 
Division. In addition, either party may request that a verbatim 
transcript be made of the hearing proceedings and that such transcript 
shall be made the official record of the hearing. The party requesting a 
verbatim transcript shall pay for the transcription service, shall 
provide a certified copy of the transcript to the Hearing Officer free 
of charge, and shall allow any other party desiring to purchase a copy 
of the transcript to order it from the transcription service.
    (6) Absence of parties. (i) If at the time scheduled for the hearing 
either the appellant or the agency representative is absent, and no 
appearance is made on behalf of such absent party, or no arrangements 
have been made for rescheduling the hearing, the Hearing Officer has the 
option to cancel the hearing unless the absent party has good cause for 
the failure to appear. If the Hearing Officer elects to cancel the 
hearing, the Hearing Officer may:
    (A) Treat the appeal as a record review and issue a determination 
based on the agency record as submitted by the agency and the hearing 
record developed prior to the hearing date;
    (B) Accept evidence into the hearing record submitted by any party 
present at the hearing, and then issue a determination; or
    (C) Dismiss the appeal.
    (ii) When a hearing is cancelled due to the absence of a party, the 
Hearing Officer will add to the hearing record any additional evidence 
submitted by any party present, provide a copy of such evidence to the 
absent party or parties, and allow the absent party or parties 10 days 
to provide a response to such additional evidence for inclusion in the 
hearing record.
    (iii) Where an absent party has demonstrated good cause for the 
failure to appear, the Hearing Officer shall reschedule the hearing 
unless all parties agree to proceed without a hearing.
    (7) Post-hearing procedure. The Hearing Officer will leave the 
hearing record open after the hearing for 10 days, or for such other 
period of time as the Hearing Officer shall establish, to allow the 
submission of information by the appellant or the agency, to the extent 
necessary to respond to new facts, information, arguments, or evidence 
presented or raised at the hearing. Any such new information will be 
added by the Hearing Officer to the

[[Page 319]]

hearing record and sent to the other party or parties by the submitter 
of the information. The Hearing Officer, in his or her discretion, may 
permit the other party or parties to respond to this post-hearing 
submission.
    (d) Interlocutory review. Interlocutory review by the Director of 
rulings of a Hearing Officer are not permitted under the procedures of 
this part.
    (e) Burden of proof. The appellant has the burden of proving that 
the adverse decision of the agency was erroneous by a preponderance of 
the evidence.
    (f) Timing of issuance of determination. The Hearing Officer will 
issue a notice of the determination on the appeal to the named 
appellant, the authorized representative, and the agency not later than 
30 days after a hearing or the closing date of the hearing record in 
cases in which the Hearing Officer receives additional evidence from the 
agency or appellant after a hearing. In the case of a record review, the 
Hearing Officer will issue a notice of determination within 45 days of 
receipt of the appellant's request for a record review. Upon the Hearing 
Officer's request, the Director may establish an earlier or later 
deadline. A notice of determination shall be accompanied by a copy of 
the procedures for filing a request for Director review under Sec. 11.9. 
If the determination is not appealed to the Director for review under 
Sec. 11.9, the notice provided by the Hearing Officer shall be 
considered to be a notice of a final determination under this part.



Sec. 11.9  Director review of determinations of Hearing Officers.

    (a) Requests for Director review. (1) Not later than 30 days after 
the date on which an appellant receives the determination of a Hearing 
Officer under Sec. 11.8, the appellant must submit a written request, 
signed personally by the named appellant, to the Director to review the 
determination in order to be entitled to such review by the Director. 
Such request shall include specific reasons why the appellant believes 
the determination is wrong.
    (2) Not later than 15 business days after the date on which an 
agency receives the determination of a Hearing Officer under Sec. 11.8, 
the head of the agency may make a written request that the Director 
review the determination. Such request shall include specific reasons 
why the agency believes the determination is wrong, including citations 
of statutes or regulations that the agency believes the determination 
violates. Any such request may be made by the head of an agency only, or 
by a person acting in such capacity, but not by any subordinate officer 
of such agency.
    (3) A copy of a request for Director review submitted under this 
paragraph (a) shall be provided simultaneously by the submitter to each 
party to the appeal.
    (b) Notification of parties. The Director promptly shall notify all 
parties of receipt of a request for review.
    (c) Responses to request for Director review. Other parties to an 
appeal may submit written responses to a request for Director review 
within 5 business days from the date of receipt of a copy of the request 
for review.
    (d) Determination of Director. (1) The Director will conduct a 
review of the determination of the Hearing Officer using the agency 
record, the hearing record, the request for review, any responses 
submitted under paragraph (c) of this section, and such other arguments 
or information as may be accepted by the Director, in order to determine 
whether the decision of the Hearing Officer is supported by substantial 
evidence. Based on such review, the Director will issue a final 
determination notice that upholds, reverses, or modifies the 
determination of the Hearing Officer. The Director's determination upon 
review of a Hearing Officer's decision shall be considered to be the 
final determination under this part and shall not be appealable. 
However, if the Director determines that the hearing record is 
inadequate or that new evidence has been submitted, the Director may 
remand all or a portion of the determination to the Hearing Officer for 
further proceedings to complete the hearing record or, at the option of 
the Director, to hold a new hearing.
    (2) The Director will complete the review and either issue a final 
determination or remand the determination not later than--

[[Page 320]]

    (i) 10 business days after receipt of the request for review, in the 
case of a request by the head of an agency; or
    (ii) 30 business days after receipt of the request for review, in 
the case of a request by an appellant.
    (3) In any case or any category of cases, the Director may delegate 
his or her authority to conduct a review under this section to any 
Deputy or Associate Directors of the Division. In any case in which such 
review is conducted by a Deputy or Associate Director under authority 
delegated by the Director, the Deputy or Associate Director's 
determination shall be considered to be the determination of the 
Director under this part and shall be final and not appealable.
    (e) Equitable relief. In reaching a decision on an appeal, the 
Director shall have the authority to grant equitable relief under this 
part in the same manner and to the same extent as such authority is 
provided an agency under applicable laws and regulations.



Sec. 11.10  Basis for determinations.

    (a) In making a determination, the Hearing Officers and the Director 
are not bound by previous findings of facts on which the agency's 
adverse decision was based.
    (b) In making a determination on the appeal, Hearing Officers and 
the Director shall ensure that the decision is consistent with the laws 
and regulations of the agency, and with the generally applicable 
interpretations of such laws and regulations.
    (c) All determinations of the Hearing Officers and the Director must 
be based on information from the case record, laws applicable to the 
matter at issue, and applicable regulations published in the Federal 
Register and in effect on the date of the adverse decision or the date 
on which the acts that gave rise to the adverse decision occurred, 
whichever date is appropriate under the applicable agency program laws 
and regulations.



Sec. 11.11  Reconsideration of Director determinations.

    (a) Reconsideration of a determination of the Director may be 
requested by the appellant or the agency within 10 days of receipt of 
the determination. The Director will not consider any request for 
reconsideration that does not contain a detailed statement of a material 
error of fact made in the determination, or a detailed explanation of 
how the determination is contrary to statute or regulation, which would 
justify reversal or modification of the determination.
    (b) The Director shall issue a notice to all parties as to whether a 
request for reconsideration meets the criteria in paragraph (a) of this 
section. If the request for reconsideration meets such criteria, the 
Director shall include a copy of the request for reconsideration in the 
notice to the non-requesting parties to the appeal. The non-requesting 
parties shall have 5 days from receipt of such notice from the Director 
to file a response to the request for reconsideration with the Director.
    (c) The Director shall issue a decision on the request for 
reconsideration within 5 days of receipt of responses from the non-
requesting parties. If the Director's decision upon reconsideration 
reverses or modifies the final determination of the Director rendered 
under Sec. 11.9(d), the Director's decision on reconsideration will 
become the final determination of the Director under Sec. 11.9(d) for 
purposes of this part.



Sec. 11.12  Effective date and implementation of final determinations of the Division.

    (a) On the return of a case to an agency pursuant to the final 
determination of the Division, the head of the agency shall implement 
the final determination not later than 30 days after the effective date 
of the notice of the final determination.
    (b) A final determination will be effective as of the date of filing 
of an application, the date of the transaction or event in question, or 
the date of the original adverse decision, whichever is applicable under 
the applicable agency program statutes or regulations.



Sec. 11.13  Judicial review.

    (a) A final determination of the Division shall be reviewable and 
enforceable by any United States District Court of competent 
jurisdiction in accordance with chapter 7 of title 5, United States 
Code.

[[Page 321]]

    (b) An appellant may not seek judicial review of any agency adverse 
decision appealable under this part without receiving a final 
determination from the Division pursuant to the procedures of this part.



Sec. 11.14  Filing of appeals and computation of time.

    (a) An appeal, a request for Director review, or any other document 
will be considered ``filed'' when delivered in writing to the Division, 
when postmarked, or when a complete facsimile copy is received by the 
Division.
    (b) Whenever the final date for any requirement of this part falls 
on a Saturday, Sunday, Federal holiday, or other day on which the 
Division is not open for the transaction of business during normal 
working hours, the time for filing will be extended to the close of 
business on the next working day.
    (c) The time for filing an appeal, a request for Director review, or 
any other document expires at 5:00 p.m. local time at the office of the 
Division to which the filing is submitted on the last day on which such 
filing may be made.



PART 12--HIGHLY ERODIBLE LAND AND WETLAND CONSERVATION--Table of Contents




                      Subpart A--General Provisions

Sec.
12.1  General.
12.2  Definitions.
12.3  Applicability.
12.4  Determination of ineligibility.
12.5  Exemption.
12.6  Administration.
12.7  Certification of compliance.
12.8  Affiliated persons.
12.9  Landlords and tenants.
12.10  Scheme or device.
12.11  Action based upon advice or action of USDA.
12.12  Appeals.

              Subpart B--Highly Erodible Land Conservation

12.20  NRCS responsibilities regarding highly erodible land.
12.21  Identification of highly erodible lands criteria.
12.22  Highly erodible field determination criteria.
12.23  Conservation plans and conservation systems.

                     Subpart C--Wetland Conservation

12.30  NRCS responsibilities regarding wetlands.
12.31  On-site wetland identification criteria.
12.32  Converted wetland identification criteria.
12.33  Use of wetland and converted wetland.
12.34  Paperwork Reduction Act assigned number.

    Authority: 16 U.S.C. 3801 et seq.

    Source: 61 FR 47025, Sept. 6, 1996, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 12.1  General.

    (a) Scope. This part sets forth the terms and conditions under which 
a person who produces an agricultural commodity on highly erodible land 
or designates such land for conservation use, plants an agricultural 
commodity on a converted wetland, or converts a wetland shall be 
determined to be ineligible for certain benefits provided by the United 
States Department of Agriculture (USDA) and agencies and 
instrumentalities of USDA.
    (b) Purpose. The purpose of the provisions of this part are to 
remove certain incentives for persons to produce agricultural 
commodities on highly erodible land or converted wetland and to 
thereby--
    (1) Reduce soil loss due to wind and water erosion;
    (2) Protect the Nation's long-term capability to produce food and 
fiber;
    (3) Reduce sedimentation and improve water quality; and
    (4) Assist in preserving the functions and values of the Nation's 
wetlands.



Sec. 12.2   Definitions.

    (a) General. The following definitions shall be applicable for the 
purposes of this part:
    Agricultural commodity means any crop planted and produced by annual 
tilling of the soil, including tilling by one-trip planters, or 
sugarcane.
    CCC means the Commodity Credit Corporation, a wholly-owned 
government corporation within USDA organized under the provisions of 15 
U.S.C. 714 et seq.

[[Page 322]]

    Conservation District (CD) means a subdivision of a State or local 
government organized pursuant to the applicable law to develop and 
implement soil and water conservation activities or programs.
    Conservation plan means the document that--
    (1) Applies to highly erodible cropland;
    (2) Describes the conservation system applicable to the highly 
erodible cropland and describes the decisions of the person with respect 
to location, land use, tillage systems, and conservation treatment 
measures and schedules; and
    (3) Is approved by the local soil conservation district in 
consultation with the local committees established under section 8(b)(5) 
of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590h(b)(5)) and the Natural Resources Conservation Service (NRCS) for 
purposes of compliance with this part.
    Conservation system means a combination of one or more conservation 
measures or management practices that are--
    (1) Based on local resource conditions, available conservation 
technology, and the standards and guidelines contained in the NRCS field 
office technical guides (available from NRCS State offices); and
    (2) Designed for purposes of this part to achieve, in a cost-
effective and technically practicable manner, a substantial reduction in 
soil erosion or a substantial improvement in soil conditions on a field 
or group of fields containing highly erodible cropland when compared to 
the level of erosion or soil conditions that existed before the 
application of the conservation measures and management practices.
    Conservation use or set aside means cropland that is designated as 
conservation-use acreage, set aside, or other similar designation for 
the purpose of fulfilling provisions under any acreage-limitation or 
land-diversion program administered by the Secretary of Agriculture 
requiring that the producer devote a specified acreage to conservation 
or other non-crop production uses.
    Creation of a wetland means the development of the hydrologic, 
geochemical, and biological components necessary to support and maintain 
a wetland where a wetland did not previously exist. Any wetland 
established on a non-hydric soil will be considered a created wetland.
    CSREES means the Cooperative State Research, Education, and 
Extension Service, an agency of USDA which is generally responsible for 
coordinating the information and educational programs of USDA.
    Department means the United States Department of Agriculture (USDA).
    Enhancement of a wetland means the alteration of an existing wetland 
to increase its specific functions and values. Enhancement actions 
include new capabilities, management options, structures, or other 
actions to influence one or several functions and values.
    Erodibility index means a numerical value that expresses the 
potential erodibility of a soil in relation to its soil loss tolerance 
value without consideration of applied conservation practices or 
management.
    FSA means the Farm Service Agency, an agency of USDA which is 
generally responsible for administering commodity production adjustment 
and certain conservation programs of USDA.
    Field means a part of a farm that is separated from the balance of 
the farm by permanent boundaries such as fences, roads, permanent 
waterways, or other similar features. At the option of the owner or 
operator of the farm, croplines may also be used to delineate a field if 
farming practices make it probable that the croplines are not subject to 
change. Any highly erodible land on which an agricultural commodity is 
produced after December 23, 1985, and is not exempt under Sec. 12.5(a), 
shall be considered part of the field in which the land was included on 
December 23, 1985, unless, to carry out this title, the owner and FSA 
agree to modify the boundaries of the field.
    Highly erodible land means land that has an erodibility index of 8 
or more.
    Hydric soils means soils that, in an undrained condition, are 
saturated, flooded, or ponded long enough during a growing season to 
develop an anaerobic condition that supports the growth and regeneration 
of hydrophytic vegetation.

[[Page 323]]

    Hydrophytic vegetation means plants growing in water or in a 
substrate that is at least periodically deficient in oxygen during a 
growing season as a result of excessive water content.
    Landlord means a person who rents or leases farmland to another 
person.
    Local FSA office means the county office of the Farm Service Agency 
serving the county or a combination of counties in the area in which a 
person's land is located for administrative purposes.
    NRCS means the Natural Resources Conservation Service, an agency 
within USDA which is generally responsible for providing technical 
assistance in matters of natural resources conservation and for 
administering certain conservation programs of USDA.
    Operator means the person who is in general control of the farming 
operations on the farm during the crop year.
    Owner means a person who is determined to have legal ownership of 
farmland and shall include a person who is purchasing farmland under 
contract.
    Person means an individual, partnership, association, corporation, 
cooperative, estate, trust, joint venture, joint operation, or other 
business enterprise or other legal entity and, whenever applicable, a 
State, a political subdivision of a State, or any agency thereof, and 
such person's affiliates as provided in Sec. 12.8 of this part.
    Restoration of a wetland means the re-establishment of wetland 
conditions, including hydrologic condition or native hydrophytic 
vegetation, to an area where a wetland had previously existed.
    Secretary means the Secretary of USDA.
    Sharecropper means a person who performs work in connection with the 
production of a crop under the supervision of the operator and who 
receives a share of such crop for such labor.
    Soil map unit means an area of the landscape shown on a soil map 
which consists of one or more soils.
    State means each of the 50 states, the District of Columbia, the 
Commonwealth of Puerto Rico, Guam, the Virgin Islands of the United 
States, American Samoa, the Commonwealth of the Northern Mariana 
Islands, or the Trust Territory of the Pacific Islands.
    Tenant means a person usually called a ``cash tenant'', ``fixed-rent 
tenant'', or ``standing rent tenant'' who rents land from another for a 
fixed amount of cash or a fixed amount of a commodity to be paid as 
rent; or a person (other than a sharecropper) usually called a ``share 
tenant'' who rents land from another person and pays as rent a share of 
the crops or proceeds therefrom. A tenant shall not be considered the 
farm operator unless the tenant is determined to be the operator 
pursuant to this part and 7 CFR part 718.
    Wetland, except when such term is a part of the term ``converted 
wetland'', means land that--
    (1) Has predominance of hydric soils;
    (2) Is inundated or saturated by surface or groundwater at a 
frequency and duration sufficient to support a prevalence of hydrophytic 
vegetation typically adapted for life in saturated soil conditions; and
    (3) Under normal circumstances does support a prevalence of such 
vegetation, except that this term does not include lands in Alaska 
identified as having a high potential for agricultural development and a 
predominance of permafrost soils.
    Wetland determination means a decision regarding whether or not an 
area is a wetland, including identification of wetland type and size. A 
wetland determination may include identification of an area as one of 
the following types of wetland--
    (1) Artificial wetland is an area that was formerly non-wetland, but 
now meets wetland criteria due to human activities, such as:
    (i) An artificial lake or pond created by excavating or diking land 
that is not a wetland to collect and retain water that is used primarily 
for livestock, fish production, irrigation, wildlife, fire control, 
flood control, cranberry growing, or rice production, or as a settling 
pond; or
    (ii) A wetland that is temporarily or incidentally created as a 
result of adjacent development activity;
    (2) Commenced-conversion wetland is a wetland, farmed wetland, 
farmed-wetland pasture, or a converted wetland on

[[Page 324]]

which conversion began, but was not completed, prior to December 23, 
1985.
    (3) Converted wetland is a wetland that has been drained, dredged, 
filled, leveled, or otherwise manipulated (including the removal of 
woody vegetation or any activity that results in impairing or reducing 
the flow and circulation of water) for the purpose of or to have the 
effect of making possible the production of an agricultural commodity 
without further application of the manipulations described herein if:
    (i) Such production would not have been possible but for such 
action, and
    (ii) Before such action such land was wetland, farmed wetland, or 
farmed-wetland pasture and was neither highly erodible land nor highly 
erodible cropland;
    (4) Farmed wetland is a wetland that prior to December 23, 1985, was 
manipulated and used to produce an agricultural commodity, and on 
December 23, 1985, did not support woody vegetation and met the 
following hydrologic criteria:
    (i) Is inundated for 15 consecutive days or more during the growing 
season or 10 percent of the growing season, whichever is less, in most 
years (50 percent chance or more), or
    (ii) If a pothole, playa, or pocosion, is ponded for 7 or more 
consecutive days during the growing season in most years (50 percent 
chance of more) or is saturated for 14 or more consecutive days during 
the growing season in most years (50 percent chance or more);
    (5) Farmed-wetland pasture is wetland that was manipulated and 
managed for pasture or hayland prior to December 23, 1985, and on 
December 23, 1985, met the following hydrologic criteria:
    (i) Inundated or ponded for 7 or more consecutive days during the 
growing season in most years (50) percent chance or more), or
    (ii) Saturated for 14 or more consecutive days during the growing 
season in most years (50 percent chance or more);
    (6) Not-inventoried land, is an area for which no evaluation of 
soils, vegetation, or hydrology has been conducted to determine if 
wetland criteria are met;
    (7) Non-wetland is;
    (i) Land that under natural conditions does not meet wetland 
criteria, or
    (ii) Is converted wetland the conversion of which occurred prior to 
December 23, 1985, and on that date, the land did not meet wetland 
criteria but an agricultural commodity was not produced and the area was 
not managed for pasture or hay;
    (8) Prior-converted cropland is a converted wetland where the 
conversion occurred prior to December 23, 1985, an agricultural 
commodity had been produced at least once before December 23, 1985, and 
as of December 23, 1985, the converted wetland did not support woody 
vegetation and met the following hydrologic criteria:
    (i) Inundation was less than 15 consecutive days during the growing 
season or 10 percent of the growing season, whichever is less, in most 
years (50 percent chance or more); and
    (ii) If a pothole, playa or pocosin, ponding was less than 7 
consecutive days during the growing season in most years (50 percent 
chance or more) and saturation was less than 14 consecutive days during 
the growing season most years (50 percent chance or more); or
    (9) Wetland, as defined above in this section.
    Wetland delineation means outlining the boundaries of a wetland 
determination on aerial photography, digital imagery, other graphic 
representation of the area, or on the land.
    (b) Terms for FSA operations. In the regulations in this part, and 
in all instructions, forms, and documents in connection therewith, all 
other words and phrases specifically relating to FSA operations shall, 
unless required by the subject matter or the specific provisions of this 
part, have the meanings assigned to them in the regulations at part 718 
of this title that govern reconstitutions of farms, allotments, and 
bases and any subsequent amendment thereto.

[61 FR 47025, Sept. 6, 1996; 61 FR 53491, Oct. 11, 1996]



Sec. 12.3  Applicability.

    (a) Geographic scope. The provisions of this part shall apply to all 
land, including Indian tribal land, in the fifty States, the District of 
Columbia, the

[[Page 325]]

Commonwealth of Puerto Rico, Guam, the Virgin Island of the United 
States, American Samoa, the Commonwealth of the Northern Mariana 
Islands, and the Federated States of Micronesia, the Republic of Palau, 
and the Republic of the Marshall Islands.
    (b) Effective date. The provisions of this part apply to all actions 
taken after July 3, 1996, and to determinations made after or pending on 
July 3, 1996, except to the extent that Sec. 12.5(a)(5) and 12.5 (b)(4) 
through (b)(8) specify retroactive application on December 23, 1985, and 
November 28, 1990, for certain actions and determinations regarding 
wetlands and converted wetlands. Actions taken and determinations made 
prior to July 3, 1996, are subject to regulations set forth in this part 
as of July 2, 1996, except as otherwise provided in this part. Further, 
to the extent that a person may be eligible for an exemption for an 
action taken before July 3, 1996, the action is subject to the 
provisions of this part.



Sec. 12.4  Determination of ineligibility.

    (a) Actions. Except as provided in Sec. 12.5, a person shall be 
ineligible for all or a portion of USDA program benefits listed in this 
section if:
    (1) The person produces an agricultural commodity on a field in 
which highly erodible land is predominant, or designates such a field 
for conservation use;
    (2) The person produces an agricultural commodity on wetland that 
was converted after December 23, 1985; or
    (3) After November 28, 1990, the person converts a wetland by 
draining, dredging, filling, leveling, removing woody vegetation, or 
other means for the purpose, or to have the effect, of making the 
production of an agricultural commodity possible.
    (b) Highly erodible land. A person determined to be ineligible under 
paragraph (a)(1) of this section may be ineligible for all program 
benefits listed in (d) and (e) of this section.
    (c) Wetland conservation. A person determined to be ineligible under 
paragraph (a)(2) of this section shall be ineligible for all or a 
portion of the USDA program benefits listed in paragraph (d) of this 
section for which the person otherwise would have been eligible during 
the crop year of the commodity that was planted on the converted 
wetland. A person determined to be ineligible under paragraph (a)(3) of 
this section for the conversion of a wetland shall be ineligible for all 
or a portion of the USDA program benefits listed in paragraph (d) of 
this section for which the person otherwise would have been eligible 
during the crop year which is equal to the calendar year during which 
the violation occurred and each subsequent crop year until the converted 
wetland is restored or the loss of wetland functions and values have 
been mitigated prior to the beginning of such calendar year in 
accordance with Sec. 12.5(b)(4)(i) (A) and (C) through (F) of this part. 
Ineligibility under paragraph (a)(2) or (a)(3) of this section may be 
reduced, in lieu of the loss of all benefits specified under paragraph 
(d) of this section for such crop year, based on the seriousness of the 
violation, as determined by the FSA Deputy Administrator for Farm 
Programs or designee upon recommendation by the FSA County Committee. 
Factors such as the information that was available to the affected 
person prior to the violation, previous land use patterns, the existence 
of previous wetland violations under this part or under other Federal, 
State, or local wetland provisions, the wetland functions and values 
affected, the recovery time for full mitigation of the wetland functions 
and values, and the impact that a reduction in payments would have on 
the person's ability to repay a USDA farm loan shall be considered to 
making this determination.
    (d) Programs subject to either highly erodible land or wetland 
conservation. USDA program benefits covered by a determination of 
ineligibility under this rule are:
    (1) Contract payments under a production flexibility contract, 
marketing assistance loans, and any type of price support or payment 
made available under the Agricultural Market Transition Act, the 
Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.), or any 
other Act;
    (2) A farm credit program loan made or guaranteed under the 
Consolidated Farm and Rural Development Act (7

[[Page 326]]

U.S.C. 1921 et seq.) or any other provision of law administered by FSA 
if the Secretary determines that the proceeds of such loan will be used 
for a purpose that contributes to the conversion of wetlands that would 
make production of an agricultural commodity possible or for a purpose 
that contributes to excessive erosion of highly erodible land (i.e., 
production of an agricultural commodity or highly erodible land without 
a conservation plan or conservation system as required by this part);
    (3) A payment made pursuant to a contract entered into under the 
Environmental Quality Incentives Program under chapter 4 of subtitle D 
of the Food Security Act of 1985, as amended; or a payment under any 
other provision of Subtitle D of that Act;
    (4) A payment made under section 401 or 402 of the Agricultural 
Credit Act of 1978 (16 U.S.C. 2201 or 2202);
    (5) A payment, loan, or other assistance under section 3 or 8 of the 
Watershed Protection and Flood Prevention Act (16 U.S.C. 1003 or 1006a).
    (e) Programs subject to highly erodible land only. In addition to 
programs listed in paragraph (d) of this section, a person determined to 
be ineligible under paragraph (a)(1) of this section shall be ineligible 
as determined by FSA for the following USDA program benefits for which 
the person otherwise would have been eligible during the crop year for 
which the determination applies:
    (1) A farm storage facility loan made under section 4(h) of the 
Commodity Credit Corporation Charter Act (15 U.S.C. 714b(h));
    (2) A disaster payment made under the Federal Agricultural 
Improvement and Reform Act, Pub. L. 104-127, or any other act; and
    (3) A payment made under section 4 or 5 of the Commodity Credit 
Corporation Charter Act (15 U.S.C. 714b or 714c) for the storage of an 
agricultural commodity acquired by the Commodity Credit Corporation.
    (f) Prior loans. The provisions of paragraphs (a), (b), and (c) of 
this section do not apply to any loan described in paragraphs (d) or (e) 
of this section that was made prior to December 23, 1985.
    (g) Determination of ineligibility. For the purpose of paragraph (a) 
of this section, a person shall be determined to have produced an 
agricultural commodity on a field in which highly erodible land is 
predominant or to have designated such a field for conservation use, to 
have produced an agricultural commodity on converted wetland, or to have 
converted a wetland if:
    (1) NRCS has determined that--
    (i) Highly erodible land is predominant in such field, or
    (ii) All or a portion of the field is converted wetland; and
    (2) FSA has determined that the person is or was the owner or 
operator of the land, or entitled to share in the crops available from 
the land, or in the proceeds thereof; and
    (3) With regard to the provisions of paragraph (a)(1) and (a)(2) of 
this section, FSA has determined that the land is or was planted to an 
agricultural commodity or was designated as conservation use during the 
year for which the person is requesting benefits.
    (h) Intent to participate in USDA programs. Persons who wish to 
participate in any of the USDA programs described in paragraph (d) or 
(e) of this section are responsible for contacting the appropriate 
agency of USDA well in advance of the intended participated date so that 
Form AD-1026 can be completed. This contact will help assure that the 
appropriate determinations regarding highly erodible land or wetland, 
and conservation plans or conservation systems are scheduled in a timely 
manner. A late contact may not allow sufficient time for USDA to service 
the request and could result in a substantial delay in receiving a USDA 
determination of eligibility or ineligibility.

[61 FR 47025, Sept. 6, 1996; 61 FR 53491, Oct. 11, 1996]



Sec. 12.5  Exemption.

    (a) Exemptions regarding highly erodible land--(1) Highly erodible 
cropland in production or in USDA programs during 1981 through 1985 crop 
years. During the period beginning on December 23, 1985, and ending on 
the later of January 1, 1990, or the date that is two years after the 
date the cropland on which an agricultural commodity is produced was

[[Page 327]]

surveyed by NRCS to determine if such land is highly erodible, no person 
shall be determined to be ineligible for benefits as provided in 
Sec. 12.4 as the result of the production of an agricultural commodity 
on any highly erodible land:
    (i) That was planted to an agricultural commodity in any year 1981 
through 1985; or
    (ii) That was set aside, diverted, or otherwise not cultivated in 
any such crop years under a program administered by the Secretary for 
any such crops to reduce production of an agricultural commodity.
    (2) Compliance with a conservation plan or conservation system. As 
further specified in this part, no person shall be ineligible for the 
program benefits described in Sec. 12.4 as the result of production of 
an agricultural commodity on highly erodible land or the designation of 
such land for conservation use if such production or designation is in 
compliance with a conservation plan or conservation system approved 
under paragraph (a)(2)(i) or (a)(2)(ii) of this section. A person shall 
not be ineligible for program benefits under Sec. 12.4 as the result of 
the production of an agricultural commodity on highly erodible land or 
as the result of designation of such land as conservation use if the 
production or designation is:
    (i) In an area within a CD, under a conservation system that has 
been approved by the CD after the CD determines that the conservation 
system is in conformity with technical standards set forth in the NRCS 
field office technical guide for such district; or
    (ii) In an area not within a CD, under a conservation system that 
has been approved by NRCS to be adequate for the production of such 
agricultural commodity on highly erodible land or for the designation of 
such land as conservation use.
    (3) Reliance upon NRCS determination for highly erodible land. A 
person may be relieved from ineligibility for program benefits as the 
result of the production of an agricultural commodity which was produced 
on highly erodible land or for the designation of such land as 
conservation use in reliance on a determination by NRCS that such land 
was not highly erodible land, except that this paragraph shall not apply 
to any agricultural commodity that was planted on highly erodible land, 
or for the designation of highly erodible land as conservation use after 
NRCS determines that such land is highly erodible land, and the person 
is notified of such determinations.
    (4) Areas of 2 acres or less. No person shall be determined to be 
ineligible under Sec. 12.4 for noncommercial production of agricultural 
commodities on highly erodible land on an area of 2 acres or less if it 
is determined by FSA that such production is not intended to circumvent 
the conservation requirements otherwise applicable under this part.
    (5) Good faith. (i) No person shall become ineligible under 
Sec. 12.4 as a result of the failure of such person to apply a 
conservation system on highly erodible land that was converted from 
native vegetation, i.e. rangeland or woodland, to crop production before 
December 23, 1985, if FSA determines such person has acted in good faith 
and without the intent to violate the provisions of this part and if 
NRCS determines that the person complies with paragraph (a)(5)(ii) of 
this section.
    (ii) A person is who determined to meet the requirements of 
paragraph (a)(5)(i) of this section shall be allowed a reasonable period 
of time, as determined by NRCS, but not to exceed one year, during which 
to implement the measures and practices necessary to be considered 
applying the person's conservation plan. If a person does not take the 
required corrective actions, the person may be determined to be 
ineligible for the crop year during which such actions were to be taken 
as well as any subsequent crop years. Notwithstanding the good-faith 
requirements of paragraph (a)(5)(i) of this section, if NRCS observes a 
possible compliance deficiency while providing on-site technical 
assistance, NRCS shall provide to the responsible person, not later than 
45 days after observing the possible violation, information regarding 
actions needed to comply with the plan and this subtitle. NRCS shall 
provide this information in lieu of reporting the observation as a 
violation, if the responsible person attempts to correct the 
deficiencies as soon as practicable, as determined by NRCS, after 
receiving the

[[Page 328]]

information, and if the person takes corrective action as directed by 
NRCS not later than one year after receiving the information. If a 
person does not take the required corrective actions, the person may be 
determined to be ineligible for the crop year during which the 
compliance deficiencies occurred as well as any subsequent crop years.
    (iii) No person shall become ineligible under Sec. 12.4 as a result 
of failure to apply a conservation system with respect to highly 
erodible cropland that was converted from native vegetation, i.e., 
rangeland or woodland, to crop production after December 23, 1985, if 
such person has acted in good faith and without an intent to violate the 
provisions of this part. The person shall, in lieu of the loss of all 
benefits specified under Sec. 12.4 (d) and (e) for such crop year, be 
subject to a reduction in benefits of not less than $500 nor more than 
$5,000 depending upon the seriousness of the violation, as determined by 
FSA. The dollar amount of the reduction will be determined by FSA and 
may be based on the number of acres and the degree of erosion hazard for 
the area in violation, as determined by NRCS, or upon such other factors 
as FSA deems appropriate.
    (iv) Any person whose benefits are reduced in a crop year under 
paragraph (a)(5) of this section may be eligible for all of the benefits 
specified under Sec. 12.4 (d) and (e) for any subsequent crop year if 
NRCS determines that such person is applying a conservation plan 
according to the schedule set forth in the plan on all highly erodible 
land planted to an agricultural commodity or designated as conservation 
use.
    (6) Allowable variances. (i) Notwithstanding any other provisions of 
this part, no person shall be determined to be ineligible for benefits 
as a result of the failure of such person to apply a conservation system 
if NRCS determines that--
    (A) The failure is technical and minor in nature and that such 
violation has little effect on the erosion control purposes of the 
conservation plan applicable to the land on which the violation has 
occurred; or
    (B) The failure is due to circumstances beyond the control of the 
person; or
    (C) NRCS grants a temporary variance from the practices specified in 
the plan for the purpose of handling a specific problem, including 
weather, pest, and disease problems, which NRCS determines cannot 
reasonably be addressed except through such variance.
    (ii) If the person's request for a temporary variance involves the 
use of practices or measures to address weather, pest, or disease 
problems, NRCS shall make a decision on whether to grant the variance 
during the 30-day period beginning on the date of receipt of the 
request. If NRCS fails to render a decision during the period, the 
temporary variance shall be considered granted unless the person seeking 
the variance had reason to know that the variance would not be granted. 
In determining whether to grant a variance for natural disasters such as 
weather, pest, or disease problems, NRCS will consider such factors as:
    (A) The percent of a stand damaged or destroyed by the event;
    (B) The percent of expected crop production compared to normal 
production for that crop;
    (C) The documented invasion of non-native insects, weeds, or 
diseases for which no recognized treatment exists;
    (D) Whether an event is severe or unusual based on historical 
weather records; and
    (E) Other specific circumstances caused by a natural event that 
prevented the implementation of conservation practices or systems, 
installation of structures, or planting of cover crops.
    (b) Exemptions for wetlands and converted wetlands--(1) General 
exemptions. A person shall not be determined to be ineligible for 
program benefits under Sec. 12.4 as the result of the production of an 
agricultural commodity on converted wetland or the conversion of wetland 
if:
    (i) The land is a prior-converted cropland and meets the definition 
of a prior-converted cropland as of the date of a wetland determination 
by NRCS;
    (ii) The land has been determined by NRCS to be a prior-converted 
cropland and such determination has been certified, and NRCS determines 
that the wetland characteristics returned after

[[Page 329]]

the date of the wetland certification as a result of--
    (A) The lack of maintenance of drainage, dikes, levees, or similar 
structures,
    (B) The lack of management of the lands containing the wetland, or
    (C) Circumstances beyond the control of the person;
    (iii) The land was determined by NRCS to be a farmed wetland or a 
farmed-wetland pasture and--
    (A) Such land meets wetland criteria through a voluntary 
restoration, enhancement, or creation action after that determination,
    (B) The technical determinations regarding the baseline site 
conditions and the restoration, enhancement, or creation action have 
been adequately documented by NRCS,
    (C) The proposed conversion action is documented by the NRCS prior 
to implementation, and
    (D) The extent of the proposed conversion is limited so that the 
conditions will be at least equivalent to the wetland functions and 
values that existed at the time of implementation of the voluntary 
wetland restoration, enhancement, or creation action;
    (iv) NRCS has determined that the conversion if for a purpose that 
does not make the production of an agricultural commodity possible, such 
as conversions for fish production, trees, vineyards, shrubs, 
cranberries, agricultural waste management structures, livestock ponds, 
fire control, or building and road construction and no agricultural 
commodity is produced on such land;
    (v) NRCS has determined that the actions of the person with respect 
to the conversion of the wetland or the combined effect of the 
production of an agricultural commodity on a wetland converted by the 
person or by someone else, individually and in connection with all other 
similar actions authorized by NRCS in the area, would have only a 
minimal effect on the wetland functions and values of wetlands in the 
area;
    (vi) (A) After December 23, 1985, the Army Corps of Engineers issued 
an individual permit pursuant to section 404 of the Clean Water Act, 33 
U.S.C. 1344, authorizing such action and the permit required mitigation 
that adequately replaced the functions and values of the wetlands 
converted, as determined by NRCS, or
    (B) After December 23, 1985, the action is encompassed under section 
404 of the Clean Water Act, 33 U.S.C. 1344, by an Army Corps of 
Engineers nationwide or regional general permit and the wetland 
functions and values were adequately mitigated, as determined by NRCS; 
or
    (vii) The land is determined by NRCS to be--
    (A) An artificial wetland,
    (B) A wet area created by a water delivery system, irrigation, 
irrigation system, or application of water for irrigation,
    (C) A nontidal drainage or irrigation ditch excavated in non-
wetland, or
    (D) A wetland converted by actions of persons other than the person 
applying for USDA program benefits or any of the person's predecessors 
in interest after December 23, 1985, if such conversion was not the 
result of a scheme or device to avoid compliance with this part. Further 
drainage improvement on such land is not permitted without loss of 
eligibility for USDA program benefits, unless NRCS determines under 
paragraph (b)(1)(v) of this section that further drainage activities 
applied to such land would have minimal effect on the wetland functions 
and values in the area. In applying this paragraph, a converted wetland 
shall be presumed to have been converted by the person applying for USDA 
program benefits unless the person can show that the conversion was 
caused by a third party with whom the person was not associated through 
a scheme or device as described under Sec. 12.10 of this part. In this 
regard, activities of a water resource district, drainage district, or 
similar entity will be attributed to all persons within the jurisdiction 
of the district or other entity who are assessed for the activities of 
the district or entity. Accordingly, where a person's wetland is 
converted due to the actions of the district or entity, the person shall 
be considered to have caused or permitted the drainage. Notwithstanding 
the provisions of the preceding sentences and as determined by FSA to be 
consistent

[[Page 330]]

with the purposes of this part, the activities of a drainage district or 
other similar entity will not be attributed to a person to the extent 
that the activities of the district or entity were beyond the control of 
the person and the wetland converted is not used by the person for the 
production of an agricultural commodity or a forage crop for harvest by 
mechanical means or mitigation for the converted wetland occurs in 
accordance with this part.
    (2) Commenced conversion wetlands.
    (i) The purpose of a determination of a commenced conversion made 
under this paragraph is to implement the legislative intent that those 
persons who had actually started conversion of a wetland or obligated 
funds for conversion prior to December 23, 1985, would be allowed to 
complete the conversion so as to avoid unnecessary economic hardship.
    (ii) All persons who believed they had a wetland or converted 
wetland for which conversion began but was not completed prior to 
December 23, 1985, must have requested by September 19, 1988, FSA to 
make a determination of commencement in order to be considered exempt 
under this section.
    (iii) Any conversion activity considered by FSA to be commenced 
under this section lost its exempt status if such activity as not 
completed on or before January 1, 1995. For purposes of this part, land 
on which such conversion activities were completed by January 1, 1995, 
shall be evaluated by the same standards and qualify for the same 
exemptions as prior-converted croplands. For purposes of this part, land 
on which such conversion activities were not completed by January 1, 
1995, shall be evaluated by the same standards and qualify for the same 
exemptions as wetlands or farmed wetlands, as applicable.
    (iv) Only those wetlands for which the construction had begun, or to 
which the contract or purchased supplies and materials related, 
qualified for a determination of commencement. However, in those 
circumstances where the conversion of wetland did not meet the specific 
requirements of this paragraph, the person could have requested a 
commencement of conversion determination from the FSA Deputy 
Administrator for Farm Programs, upon a showing that undue economic 
hardship would have resulted because of substantial financial 
obligations incurred prior to December 23, 1985, for the primary and 
direct purpose of converting the wetland.
    (3) Wetlands farmed under natural conditions. A person shall not be 
determined to be ineligible for program benefits under Sec. 12.4 of this 
part as a result of the production of an agricultural commodity on a 
wetland on which the owner or operator of a farm or ranch uses normal 
cropping or ranching practices to produce agricultural commodities in a 
manner that is consistent for the area, where such production is 
possible as a result of natural conditions, such as drought, and is 
without action by the producer that alters the hydrology or removes 
woody vegetation.
    (4) Mitigation. (i) No person shall be determined to be ineligible 
under Sec. 12.4 for any action associated with the conversion of a 
wetland if the wetland functions and values are adequately mitigated, as 
determined by NRCS, through the restoration of a converted wetland, the 
enhancement of an existing wetland, or the creation of a new wetland, if 
the mitigation--
    (A) Is in accordance with a mitigation plan approved by NRCS;
    (B) Is in advance of, or concurrent with, the wetland conversion or 
the production of an agricultural commodity, as applicable;
    (C) Is not at the expense of the federal government in either 
supporting the direct or indirect costs of the restoration activity or 
costs associated with acquiring or securing mitigation sites, except if 
conducted under a mitigation banking pilot program established by USDA;
    (D) Occurs on lands in the same general area of the local watershed 
as the converted wetlands, provided that for purposes of this paragraph, 
lands in the same general area of the local watershed may include 
regional mitigation banks;
    (E) Is on lands for which the owner has granted an easement to USDA, 
recorded the easement on public land

[[Page 331]]

records, and has agreed to the maintenance of the restored, created, or 
enhanced wetland for as long as the converted wetland for which the 
mitigation occurred remains in agricultural use or is not returned to 
its original wetland classification with equivalent functions and 
values; and
    (F) Provides the equivalent functions and values that will be lost 
as a result of the wetland conversion.
    (ii) A mitigation plan is a record of decisions that document the 
actions necessary to compensate for the loss of wetland functions and 
values that result from converting a wetland. The mitigation plan may be 
a component of a larger natural resources conservation plan.
    (iii) The State Conservationist, in consultation with the State 
Technical Committee, may name certain types or classes of wetland not 
eligible for exemption under paragraph (b)(4)(i) of this section where 
the State Conservationist determines that mitigation will not achieve 
equivalent replacement of wetland functions and values within a 
reasonable time frame or for other reasons identified by the State 
Conservationist. Any type or class of wetland that a State 
Conservationist identifies as not eligible for exemption under paragraph 
(b)(4)(i) of this section will be published in the Federal Register for 
inclusion in this part.
    (5) Good Faith Violations. (i) A person who is determined under 
Sec. 12.4 to be ineligible for benefits as the result of the production 
of an agricultural commodity on a wetland converted after December 23, 
1985, or as the result of the conversion of a wetland after November 28, 
1990, may regain eligibility for benefits if--
    (A) FSA determines that such person acted in good faith and without 
the intent to violate the wetland provisions of this part, and
    (B) NRCS determines that the person within an agreed to period, not 
to exceed 1 year, is implementing all practices in a mitigation plan.
    (ii) In determining whether a person acted in good faith under 
paragraph (b)(5)(i)(A) of this section, the FSA shall consider such 
factors as whether--
    (A) The characteristics of the site were such that the person should 
have been aware that a wetland existed on the subject land,
    (B) NRCS had informed the person about the existence of a wetland on 
the subject land,
    (C) The person did not convert the wetland, but planted an 
agricultural commodity on converted wetland when the person should have 
known that a wetland previously existed on the subject land,
    (D) The person has a record of violating the wetland provisions of 
this part or other Federal, State, or local wetland provisions, or
    (E) There exists other information that demonstrates that the person 
acted with the intent to violate the wetland provisions of this part.
    (iii) After the requirements of paragraph (b)(5)(i) of this section 
are met, USDA may waive applying the ineligibility provisions of 
Sec. 12.4.
    (6) Reliance upon NRCS wetland determination. (i) A person shall not 
be ineligible for program benefits as a result of taking an action in 
reliance on a previous certified wetland determination by NRCS.
    (ii) A person who may be ineligible for program benefits as the 
result of the production of an agricultural commodity on converted 
wetland or for the conversion of a wetland may seek relief under 
Sec. 12.11 of this part if such action was taken in reliance on an 
incorrect technical determination by NRCS as to the status of such land. 
If the error caused the person to make a substantial financial 
investment, as determined by the NRCS, for the conversion of a wetland, 
the person may be relieved of ineligibility for actions related to that 
portion of the converted wetland for which the substantial financial 
investment was expended in conversion activities. The relief available 
under this paragraph shall not apply to situations in which the person 
knew or reasonably should have known that the determination was in error 
because the characteristics of the site were such that the person should 
have been aware that a wetland existed on the subject land, or for other 
reasons.

[[Page 332]]

    (7) Responsibility to provide evidence. It is the responsibility of 
the person seeking an exemption related to converted wetlands under this 
section to provide evidence, such as receipts, crop-history data, 
drawings, plans or similar information, for purposes of determining 
whether the conversion or other action is exempt in accordance with this 
section.

[61 FR 47025, Sept. 6, 1996; 61 FR 53491, Oct. 11, 1996]



Sec. 12.6  Administration.

    (a) General. A determination of ineligibility for benefits in 
accordance with the provisions of this part shall be made by the agency 
of USDA to which the person has applied for benefits. All determinations 
required to be made under the provisions of this part shall be made by 
the agency responsible for making such determinations, as provided in 
this section.
    (b) Administration by FSA. (1) The provisions of this part which are 
applicable to FSA will be administered under the general supervision of 
the Administrator, FSA, and shall be carried out in the field in part by 
State FSA committees and county FSA committees (COC).
    (2) The FSA Deputy Administrator for Farm Programs may determine any 
question arising under the provisions of this part which are applicable 
to FSA and may reverse or modify any determination of eligibility with 
respect to programs administered by FSA made by a State FSA committee or 
COC or any other FSA office or FSA official (except the Administrator) 
in connection with the provisions of this part.
    (3) FSA shall make the following determinations which are required 
to be made in accordance with this part:
    (i) Whether a person produced an agricultural commodity on a 
particular field as determined under Sec. 12.5(a)(1);
    (ii) The establishment of field boundaries;
    (iii) Whether land was planted to an agricultural commodity in any 
of the years, 1981 through 1985, for the purposes of Sec. 12.5(a)(1);
    (iv) Whether land was set aside, diverted, or otherwise not 
cultivated under a program administered by the Secretary for any crop to 
reduce production of an agricultural commodity under Sec. 12.4(g) and 
Sec. 12.5(a)(1);
    (v) Whether for the purposes of Sec. 12.9, the production of an 
agricultural commodity on highly erodible land or converted wetland by a 
landlord's tenant or sharecropper is required under the terms and 
conditions of the agreement between the landlord and such tenant or 
sharecropper;
    (vi) Whether the conversion of a particular wetland was commenced 
before December 23, 1985, for the purposes of Sec. 12.5(b)(3);
    (vii) Whether the conversion of a wetland was caused by a third 
party under Sec. 12.5(b)(1)(vii)(D);
    (viii) Whether certain violations were made in good faith under 
Secs. 12.5(a)(5) or 12.5(b)(5);
    (ix) The determination of the amount of reduction in benefits based 
on the seriousness of the violation, based on technical information 
provided by NRCS;
    (x) The determination of whether the application of the producer's 
conservation system would impose an undue economic hardship on the 
producer; and
    (xi) Whether the proceeds of a farm loan made, insured, or 
guaranteed by FSA will be used for a purpose that will contribute to 
excessive erosion of highly erodible land or to the conversion of 
wetland.
    (4) A representative number of farms selected in accordance with 
instructions issued by the Deputy Administrator shall be inspected by an 
authorized representative of FSA to determine compliance with any 
requirement specified in this part as a prerequisite for obtaining 
program benefits.
    (5) FSA may consult with U.S. Fish and Wildlife Service on third-
party determinations.
    (c) Administration by NRCS. (1) The provisions of this part that are 
applicable to NRCS shall be administered under the general supervision 
of the Deputy Chief for Natural Resources Conservation Programs, and 
shall be carried out in the field by the regional conservationist, state 
conservationist, area conservationist, and district conservationist or 
other NRCS representative.

[[Page 333]]

    (2) An NRCS representative shall make the following determinations 
which are required to be made in accordance with this part:
    (i) Whether land is highly erodible or has a wetland type or a 
converted wetland identified in accordance with the provisions of this 
part;
    (ii) Whether highly erodible land is predominant on a particular 
field under Sec. 12.22;
    (iii) Whether the conservation plan that a person is applying is 
based on the local NRCS field office technical guide and is approved 
by--
    (A) The CD and NRCS, or
    (B) By NRCS;
    (iv) Whether the conservation system that a person is using has been 
approved by the CD under Sec. 12.5(a)(2) or, in an area not within a CD, 
a conservation system approved by NRCS to be adequate for the production 
of an agricultural commodity on highly erodible land;
    (v) Whether the actions of a person(s) with respect to the 
conversion of a wetland or production of an agricultural commodity on 
converted wetland would have only a minimal effect on the functions and 
values of wetlands in the area;
    (vi) Whether an approved conservation plan is being applied on 
highly erodible fields in accordance with the schedule specified therein 
or whether a failure to apply the plan is technical and minor in nature, 
due to circumstances beyond the control of the person, or whether a 
temporary variance form the requirements of the plan should be granted;
    (vii) Whether an approved conservation system is being used on a 
highly erodible field;
    (viii) Whether the conversion of a wetland is for the purpose or has 
the effect of making the production of an agricultural commodity 
possible;
    (ix) Whether a farmed wetland or farmed-wetland pasture is 
abandoned;
    (x) Whether the planting of an agricultural commodity on a wetland 
is possible under natural conditions;
    (xi) Whether maintenance of existing drainage of a wetland described 
in Sec. 12.33 exceeds the scope and effect of the original drainage;
    (xii) Whether a plan for the mitigation of a converted wetland will 
be approved and whether the mitigation of a converted wetland is 
accomplished according to the approved mitigation plan;
    (xiii) Whether all technical information relating to the 
determination of a violation and severity of a violation has been 
provided to FSA for making payment-reduction determinations; and
    (xiv) Whether or not a commenced-conversion activity was completed 
by January 1, 1995.
    (3) NRCS may provide such other technical assistance for 
implementation of the provisions of this part as is determined to be 
necessary.
    (4) A person may obtain a highly erodible land or a wetland scope-
and-effect determination by making a written request on Form AD-1026. 
The determination will be made in writing, and a copy will be provided 
to the person.
    (5) A determination of whether or not an area meets the highly 
erodible land criteria or whether wetland criteria, identified in 
accordance with the current Federal wetland delineation methodology in 
use at the time of the determination and that are consistent with 
current mapping conventions, may be made by the NRCS representative 
based upon existing records or other information and without the need 
for an on-site determination. This determination will be made by the 
NRCS representative as soon as possible following a request for such a 
determination.
    (6) An on-site determination as to whether an area meets the 
applicable criteria shall be made by an NRCS representative if the 
person has disagreed with the determination made under paragraph (c)(5) 
of this section, or if adequate information is not otherwise available 
to an NRCS representative on which to make an off-site determination.
    (7) An on-site determination, where applicable, will be made by the 
NRCS representative as soon as possible following a request for such a 
determination, but only when site conditions are favorable for the 
evaluation of soils, hydrology, or vegetation.

[[Page 334]]

    (8) With regard to wetland determinations, if an area is 
continuously inundated or saturated for long periods of time during the 
growing season to such an extent that access by foot to make a 
determination of predominance of hydric soils or prevalence of 
hydrophytic vegetation is not feasible, the area will be determined to 
be a wetland.
    (9) Persons who are adversely affected by a determination made under 
this section and believe that the requirements of this part were 
improperly applied may appeal, under Sec. 12.12 of this part, any 
determination by NRCS.
    (d) Administration by CSREES. The CSREES shall coordinate the 
related information and education program for USDA concerning 
implementation of this rule.
    (e) Assistance of other Federal agencies. If NRCS determines, 
through agreement or otherwise, that the purposes of this part would be 
furthered by the assistance of other Federal agencies with wetland 
responsibilities, NRCS may accept such assistance and adopt any or all 
such actions by these agencies as an action by an NRCS representative 
under this part.

[61 FR 47025, Sept. 6, 1996; 61 FR 53491, Oct. 11, 1996]



Sec. 12.7  Certification of compliance.

    (a) Self-certification. In order for a person to be determined to be 
eligible for any of the benefits specified in Sec. 12.4:
    (1) It must be determined by USDA whether any field in which the 
person applying for the benefits has an interest and intends to produce 
an agricultural commodity contains highly erodible land;
    (2) The person applying for or receiving the benefits must certify 
in writing on Form AD-1026 that such person will not produce an 
agricultural commodity on highly erodible land, or designate such land 
for conservation use; or plant an agricultural commodity on a converted 
wetland; or convert a wetland to make possible the production of an 
agricultural commodity during the crop year in which the person is 
seeking such benefits, unless such actions are exempt, under Sec. 12.5, 
from the provisions of Sec. 12.4 of this part;
    (3) A person may certify application of practices required by the 
person's conservation plan. NRCS shall permit a person who makes such a 
certification with respect to a conservation plan to revise the 
conservation plan in any manner, if the same level of conservation 
treatment provided for by the conservation system under the person's 
conservation plan is maintained. NRCS may not revise the person's 
conservation plan without the concurrence of the person;
    (4) The person applying for a FSA direct or guaranteed farm credit 
program loan must certify that such person shall not use the proceeds of 
the loan for a purpose that will contribute to excessive erosion on 
highly erodible land or to conversion of wetlands for the purpose, or to 
have the effect, of making the production of an agricultural commodity 
possible; and
    (5) The person applying for the benefits must authorize and provide 
representatives of USDA access to all land in which such person has an 
interest for the purpose of verifying any such certification.
    (b) Availability to other agencies. Each agency of USDA shall make 
all certifications of compliance received by such agency and the results 
of investigations concerning such certifications of compliance available 
to other agencies.
    (c) Compliance. A certification made in accordance with this section 
does not relieve any person from compliance with provisions of this 
part.



Sec. 12.8  Affiliated persons.

    (a) Ineligibility of affiliated persons. Ineligibility of an 
individual or entity under this part for benefits shall also be an 
ineligibility for benefits for ``affiliated persons'' as defined in this 
section.
    (b) Affiliated persons of an individual. If the person requesting 
benefits is an individual, the affiliated persons are:
    (1) The spouse and minor child of such person or guardian of such 
child; except that spouses who establish to the satisfaction of the COC 
that operations of the husband and wife are maintained separately and 
independently shall not be considered affiliates;
    (2) Any partnership, joint venture, or other enterprise in which the 
person or

[[Page 335]]

any person listed in paragraphs (b)(1) has an ownership interest or 
financial interest; unless such interest is held indirectly through 
another business enterprise; or
    (3) Any trust in which the individual, business enterprise, or any 
person listed in paragraph (b)(1) is a beneficiary or has a financial 
interest, unless such interest is held indirectly through another 
business enterprise.
    (c) Affiliated persons of an entity. If the person who has requested 
benefits from USDA is a corporation, partnership, or other joint 
venture, the affiliated persons are any participant or stockholder 
therein of the corporation, partnership, or other joint venture, except 
for persons who have an indirect interest through another business 
enterprise in such corporation, partnership, or other joint venture or 
persons with a 20 percent or less share in a corporation.
    (d) Limitation. Any reduction in payments which results only from 
the application of the affiliation provisions of this section to a 
partnership, joint venture, trust, or other enterprise shall be limited 
to the extent of interest held in such partnership, joint venture, 
trust, or other enterprise by the person or business enterprise that 
committed the violation. However, for violations for which the business 
enterprise is considered directly responsible under the provisions of 
this part, the business enterprise shall be subject to a full loss of 
benefits, including those instances in which the business enterprise has 
an interest in the land where the violation occurred or where the 
business enterprise had an interest in the crops produced on the land.
    (e) Avoidance of this part. Limitations on affiliation shall not 
apply as needed to correct for any action that would otherwise tend to 
defeat the purposes of this part.



Sec. 12.9  Landlords and tenants.

    (a) Landlord eligibility. (1) Except as provided in paragraph (a)(2) 
of this section, the ineligibility of a tenant or sharecropper for 
benefits (as determined under Sec. 12.4) shall not cause a landlord to 
be ineligible for USDA program benefits accruing with respect to land 
other than those in which the tenant or sharecropper has an interest.
    (2) The provisions of paragraph (a)(1) of this section shall not be 
applicable to a landlord if the production of an agricultural commodity 
on highly erodible land or converted wetland by the landlord's tenant or 
sharecropper is required under the terms and conditions of the agreement 
between the landlord and such tenant or sharecropper and such agreement 
was entered into after December 23, 1985, or if the landlord has 
acquiesced in such activities by the tenant or sharecropper.
    (b) Tenant or renter eligibility. (1) The ineligibility of a tenant 
or renter may be limited to the program benefits listed in Sec. 12.4(c) 
accruing with respect to only the farm on which the violation occurred 
if:
    (i) The tenant or renter shows that a good-faith effort was made to 
comply by developing an approved conservation plan for the highly 
erodible land in a timely manner and prior to any violation of the 
provisions of this part; and
    (ii) The owner of such farm refuses to apply such a plan and 
prevents the tenant or renter from implementing certain practices that 
are a part of the approved conservation plan; and
    (iii) FSA determines that the lack of compliance is not a part of a 
scheme or device as described in Sec. 12.10.
    (2) If relief is granted under paragraph (b)(1) of this section, the 
tenant or renter must actively apply those conservation treatment 
measures that are determined to be within the control of the tenant or 
renter.



Sec. 12.10  Scheme or device.

    All or any part of the benefits listed in Sec. 12.4 otherwise due a 
person from USDA may be withheld or required to be refunded if the 
person adopts or participates in adopting any scheme or device designed 
to evade, or which has the effect of evading, the provisions of this 
part. Such acts shall include, but are not limited to, concealing from 
USDA any information having a bearing on the application of the 
provisions of this part or submitting false information to USDA or 
creating entities for the purpose of concealing the interest of a person 
in a farming operation

[[Page 336]]

or to otherwise avoid compliance with the provisions of this part. Such 
acts shall also include acquiescence in, approval of, or assistance to 
acts which have the effect of, or the purpose of, circumventing these 
regulations.



Sec. 12.11  Action based upon advice or action of USDA.

    The provisions of part 718 of this Title, as amended, relating to 
performance based upon the action or advice of a County Committee (COC) 
or State FSA Committee shall be applicable to the provisions of this 
part. In addition, if it is determined by the appropriate USDA agency 
that the action of a person which would form the basis of any 
ineligibility under this part was taken by such person in good-faith 
reliance on erroneous advice, information, or action of any other 
authorized representative of USDA, the appropriate agency may make such 
benefits available to the extent that similar relief would be allowed 
under 7 CFR part 718.



Sec. 12.12  Appeals.

    Any person who has been or who would be denied program benefits in 
accordance with Sec. 12.4 as the result of any determination made in 
accordance with the provisions of this part may obtain a review of such 
determination in accordance with the administrative appeals procedures 
of the agency which rendered such determination. Agency appeal 
procedures are contained in the Code of Federal Regulations as follows: 
FSA, part 780 of this title; NRCS, part 614 of this title; Rural 
Utilities Service, part 1900, subpart B of this title.



              Subpart B--Highly Erodible Land Conservation



Sec. 12.20  NRCS responsibilities regarding highly erodible land.

    In implementing the provisions of this part, NRCS shall, to the 
extent practicable:
    (a) Develop and maintain criteria for identifying highly erodible 
lands;
    (b) Prepare and make available to the public lists of highly 
erodible soil map units;
    (c) Make soil surveys for purposes of identifying highly erodible 
land; and
    (d) Provide technical guidance to conservation districts which 
approve conservation plans and systems, in consultation with local 
county FSA committees, for the purposes of this part.



Sec. 12.21  Identification of highly erodible lands criteria.

    (a) Basis for identification as highly erodible. Soil map units and 
an erodibility index will be used as the basis for identifying highly 
erodible land. The erodibility index for a soil is determined by 
dividing the potential average annual rate of erosion for each soil by 
its predetermined soil loss tolerance (T) value. The T value represents 
the maximum annual rate of soil erosion that could occur without causing 
a decline in long-term productivity. The equation for measuring erosion 
is described below.
    (1) The potential average annual rate of sheet and rill erosion is 
estimated by multiplying the following factors of the Universal Soil 
Loss Equation (USLE):
    (i) Rainfall and runoff (R);
    (ii) The degree to which the soil resists water erosion (K); and
    (iii) The function (LS), which includes the effects of slope length 
(L) and steepness (S).
    (2) The potential average annual rate of wind erosion is estimated 
by multiplying the following factors of the Wind Erosion Equation (WEQ): 
Climatic characterization of windspeed and surface soil moisture (C) and 
the degree to which soil resists wind erosion (I).
    (3) The USLE is explained in the U.S. Department of Agriculture 
Handbook 537, ``Predicting Rainfall Erosion Losses.'' The WEQ is 
explained in the paper by Woodruff, N.P., and F. H. Siddaway, 1965, ``A 
Wind Erosion Equation,'' Soil Science Society of America Proceedings, 
Vol. 29. No. 5, pages 602-608. Values for all the factors used in these 
equations are contained in the NRCS field office technical guide and the 
references which are a part of the guide. The Universal Soil Loss 
Equation, the Revised Universal Soil Loss Equation, and the Wind Erosion 
Equation and the rules under which NRCS

[[Page 337]]

uses the equations are published at Secs. 610.11 through 610.15 of this 
title.
    (b) Highly erodible. A soil map unit shall be determined to be 
highly erodible if either the RKLS/T or the CI/T value for the map unit 
equals or exceeds 8.
    (c) Potentially highly erodible. Whenever a soil map unit 
description contains a range of a slope length and steepness 
characteristics that produce a range of LS values which result in RKLS/T 
quotients both above and below 8, the soil map unit will be entered on 
the list of highly erodible soil map units as ``potentially highly 
erodible.'' The final determination of erodibility for an individual 
field containing these soil map unit delineations will be made by an on-
site investigation.

[61 FR 47025, Sept. 6, 1996; 61 FR 53491, Oct. 11, 1996]



Sec. 12.22  Highly erodible field determination criteria.

    (a) Predominance. Highly erodible land shall be considered to be 
predominant on a field if either:
    (1) 33.33 percent or more of the total field acreage is identified 
as soil map units which are highly erodible; or
    (2) 50 or more acres in such field are identified as soil map units 
which are highly erodible.
    (b) Modification of field boundaries. A person may request the 
modification of field boundaries for the purpose of excluding highly 
erodible land from a field. Such a request must be submitted to, and is 
subject to the approval of, FSA. FSA shall use the technical 
determination of NRCS in approving this request.
    (c) Impact of changing field boundaries. When field boundaries are 
changed to include areas of land that were included in a field that was 
previously determined to be predominately highly erodible according to 
paragraph (a) of this section, such areas shall continue to be subject 
to the requirements for predominately highly erodible fields, except as 
provided in paragraph (b) of this section.
    (d) Small area of noncropland. Small areas of noncropland within or 
adjacent to the boundaries of existing highly erodible crop fields such 
as abandoned farmsteads, areas around filled or capped wells, rock 
piles, trees, or brush which are converted to cropland are considered to 
meet the requirement of Sec. 12.5(a)(2) if they are included in an 
approved conservation plan for the entire highly erodible field.

[61 FR 47025, Sept. 6, 1996; 61 FR 53491, Oct. 11, 1996]



Sec. 12.23  Conservation plans and conservation systems.

    (a) Use of field office technical guide. A conservation plan or 
conservation system developed for the purposes of Sec. 12.5(a) must be 
based on, and to the extent practicable conform with, the NRCS field 
office technical guide in use at the time the plan is developed or 
revised. For highly erodible croplands which were used to produce 
agricultural commodities prior to December 23, 1985, the applicable 
conservation systems in the field office technical guide are designed to 
achieve substantial reductions in soil erosion. Conservation systems 
shall be technically and economically feasible; based on local resource 
conditions and available conservation technology; cost-effective; and 
shall not cause undue economic hardship on the person applying the 
conservation system. Any conservation plans or systems that were 
approved prior to July 3, 1996, are deemed to be in compliance with this 
paragraph.
    (b) Substantial reduction in soil erosion. For the purpose of 
determining whether there is a substantial reduction in soil erosion on 
a field containing highly erodible cropland which was used to produce an 
agricultural commodity prior to December 23, 1985, the measurement of 
erosion reduction achieved by applying a conservation plan or system 
shall be based on a comparison of the estimated annual level of erosion 
that is expected to occur on that portion of the field for which a 
conservation plan or system was developed and is being applied, to the 
estimated annual level of erosion that existed on that same portion of 
the field before the application of a conservation plan or system. On a 
field that is converted from native vegetation after July 3, 1996, and 
where any crop production will result in increased erosion, in no

[[Page 338]]

case will the required conservation plan or system permit a substantial 
increase in erosion.
    (c) Field trials. NRCS may allow a person to include in the person's 
conservation plan or a conservation system under the plan, on a field-
trial basis, practices that are not currently approved but that NRCS 
considers have a reasonable likelihood of success. These trials must 
have prior approval by NRCS, and must be documented in the person's 
conservation plan specifying the limited time period during which the 
field trial is in effect. If, at the end of the conservation field trial 
period, NRCS finds that the practice does not meet conservation 
compliance requirements, the person will not be ineligible for USDA 
program benefits during the period of the field trial.
    (d) Highly erodible land previously under a Conservation Reserve 
Program contract. Any person who owns or operates highly erodible land 
that was under a Conservation Reserve Program contract as authorized by 
section 1231 of the Food Security Act of 1985, as amended, shall have 2 
years after the expiration of termination of the contract to fully apply 
a conservation system if the conservation plan for such land requires 
the installation of structural measures for the production of an 
agricultural commodity. NRCS officials may extend this period one 
additional year for circumstances beyond the control of the person. The 
person shall not be required to meet a higher conservation standard than 
the standard applied to other highly erodible cropland located within 
the area served by the field office technical guide for the area in 
which the field is located.
    (e) Information regarding conservation options. NRCS, in providing 
assistance to a person for the preparation or revision of a conservation 
plan under this part, will provide such person with information 
concerning cost-effective and applicable erosion control alternatives, 
crop flexibility, or other conservation assistance options that may be 
available.
    (f) Timely request for assistance. Persons who require NRCS 
assistance for the development of a conservation plan or the 
installation of a conservation system are encouraged to request this 
assistance well in advance of deadline dates for compliance; otherwise 
the person may not be able to comply with these provisions and maintain 
eligibility for USDA program benefits.
    (g) Action by conservation districts. Conservation districts approve 
or disapprove conservation plans or conservation systems after NRCS 
determines that the plans or systems conform to the NRCS field office 
technical guide. If a conservation district fails, without due cause, to 
act on a request for conservation plan or conservation system approval 
within 45 days, or if no conservation district exists, NRCS will approve 
or disapprove, as appropriate, the conservation plan or system in 
question.
    (h) Application of a conservation plan or system. A person is 
considered to be applying a conservation plan for purposes of 
Sec. 12.5(a) if the conservation system or plan being applied achieves 
or exceeds the substantial reduction in soil erosion as described in 
paragraph (b) which the conservation system or plan was designed to 
achieve. It is the responsibility of the person to:
    (1) Certify that the conservation plan or system is being applied; 
and
    (2) Arrange for a revision of the conservation plan with NRCS, if 
changes are made in land use, crop rotation or management, conservation 
practices, or in the original schedule of practice installation that 
would affect the achievement of substantial reduction in soil erosion in 
a given crop year.
    (i) Appeal to FSA. Persons who are adversely affected by the 
determinations made under this subpart and believe that the requirements 
of this subpart were improperly applied may appeal the decision to FSA 
under Sec. 12.12.
    (j) Undue economic hardship. After a technical determination has 
been made, the FSA county committee shall, if a person asserts that the 
application of the person's conservation system would impose an undue 
economic hardship on the person, make a recommendation to the State FSA 
Committee as to whether or not the application of the conservation 
system would impose an undue economic hardship. The State FSA Committee 
may provide the person with a variance on the basis of the hardship. 
Under this

[[Page 339]]

variance, and any conditions that may be required in the variance, the 
person will be considered to be in compliance with the applicable 
provisions of this part. The State FSA Committee will consider relevant 
factors, such as the cost of installation of required conservation 
practices and benefits earned through programs subject to compliance 
with this part, and the person's general economic situation.



                     Subpart C--Wetland Conservation



Sec. 12.30  NRCS responsibilities regarding wetlands.

    (a) Technical and coordination responsibilities. In carrying out the 
provisions of this part, NRCS shall:
    (1) Oversee the development and application of criteria to identify 
hydric soils in consultation with the National Technical Committee for 
Hydric Soils and make available to the public an approved county list of 
hydric soil map units, which is based upon the National List of Hydric 
Soils;
    (2) Coordinate with the U.S. Fish and Wildlife Service and others in 
updating the National List of Plant Species that Occur in Wetlands;
    (3) Make or approve wetland determinations, delineations and 
certifications, functional assessments, mitigation plans, categorical 
minimal effects, and other technical determinations relative to the 
implementation of the wetland conservation provisions of this part;
    (4) Develop and utilize off-site and on-site wetland identification 
procedures;
    (5) Assure quality of service and determinations through procedures 
developed by NRCS in consultation with other Federal agencies that have 
wetland responsibilities;
    (6) Investigate complaints and make technical determinations 
regarding potential violations;
    (7) Develop a process at the state level, in coordination with the 
U.S. Fish and Wildlife Service, to ensure that these provisions are 
carried out in a technically defensible and timely manner, seek 
assistance as appropriate, and annually review the progress being made 
on implementation; and
    (8) Conduct reviews of implementation and provide the Army Corps of 
Engineers, Environmental Protection Agency, and the U.S. Fish and 
Wildlife Service an opportunity to participate in this review.
    (b) Technical assistance from others In carrying out the provisions 
of this part, NRCS may request technical assistance from the U.S. Fish 
and Wildlife Service, State or local agencies, conservation districts, 
or qualified private entities when NRCS determines that additional staff 
resources or technical expertise are needed to address adequately the 
requirements of this part or to enhance the quality of implementation of 
this part.
    (c) Certification of wetland determinations and wetland 
delineations. (1) Certification of a wetland determination means that 
the wetland determination is of sufficient quality to make a 
determination of ineligibility for program benefits under Sec. 12.4 of 
this part. Certification of a wetland determination shall be completed 
according to delineation procedures agreed to by the Army Corps of 
Engineers, the Environmental Protection Agency, the U.S. Fish and 
Wildlife Service and NRCS. NRCS may certify a wetland determination 
without making a field investigation. NRCS will notify the person 
affected by the certification and provide an opportunity to appeal the 
certification prior to the certification becoming final. All wetland 
determinations made after July 3, 1996, will be done on a tract basis 
and will be considered certified wetland determinations. A not-
inventoried designation within a certified wetland is subject to change 
when the soil, hydrology, and vegetation evaluation is completed and 
identified as to type of wetland or as a non-wetland. This change from a 
not-inventoried designation to an approved wetland designation will be 
done at the request of the landowner or during a formal investigation of 
a potential violation.
    (2) The wetland determination and wetland delineation shall be 
certified as final by the NRCS official 30 days after providing the 
person notice of certification or, if an appeal is filed with USDA, 
after the administrative appeal procedures are exhausted.

[[Page 340]]

    (3) In the case of an appeal, NRCS will review and certify the 
accuracy of the determination of all lands subject to the appeal to 
ensure that the subject lands have been accurately delineated. Prior to 
a decision being rendered on the appeal, NRCS will conduct an on-site 
investigation of the subject land.
    (4) Before any benefits are withheld, an on-site investigation of a 
potential wetland violation will be made by NRCS. The affected person 
will be provided an opportunity to appeal the on-site determination to 
USDA if the on-site determination differs from the original 
determination. Such action by NRCS shall be considered a review of the 
prior determination and certification of the delineation. If the prior 
determination was a certified wetland determination, an appeal of the 
NRCS on-site determination shall be limited to the determination that 
the wetland was converted in violation of this part.
    (5) A copy of the information from the final certified wetland 
determination and the wetland delineation shall be recorded on official 
USDA aerial photography, digital imagery, or other graphic 
representation of the area.
    (6) As long as the affected person is in compliance with the wetland 
conservation provision of this part, and as long as the area is devoted 
to the use and management of the land for production of food, fiber, or 
horticultural crops, a certification made under this section will remain 
valid and in effect until such time as the person affected by the 
certification requests review of the certification by NRCS. A person may 
request review of a certification only if a natural event alters the 
topography or hydrology of the subject land to the extent that the final 
certification is no longer a reliable indication of site conditions, or 
if NRCS concurs with an affected person that an error exists in the 
current wetland determination

[61 FR 47025, Sept. 6, 1996; 61 FR 53491, Oct. 11, 1996]



Sec. 12.31  On-site wetland identification criteria.

    (a) Hydric soils. (1) NRCS shall identify hydric soils through the 
use of published soil maps which reflect soil surveys completed by NRCS 
or through the use of on-site reviews. If a published soil map is 
unavailable for a given area, NRCS may use unpublished soil maps which 
were made according to the specifications of the National Cooperative 
Soil Survey or may conduct an on-site evaluation of the land.
    (2) NRCS shall determine whether an area of a field or other parcel 
of land has a predominance of hydric soils that are inundated or 
saturated as follows:
    (i) If a soil map unit has hydric soil as all or part of its name, 
that soil map unit or portion of the map unit related to the hydric soil 
shall be determined to have a predominance of hydric soils;
    (ii) If a soil map unit is named for a miscellaneous area that meets 
the criteria for hydric soils (i.e., riverwash, playas, beaches, or 
water) the soil map unit shall be determined to have a predominance of 
hydric soils; or
    (iii) If a soil map unit contains inclusions of hydric soils, that 
portion of the soil map unit identified as hydric soil shall be 
determined to have a predominance of hydric soils.
    (3) List of hydric soils. (i) Hydric soils are those soils which 
meet criteria set forth in the publication ``Hydric Soils of the United 
States 1985'' which was developed by the National Technical Committee 
for Hydric Soils and which is incorporated by reference. This 
publication may be obtained upon request by writing NRCS at U.S. 
Department of Agriculture, P.O. Box 2890, Washington, DC 20013, and is 
available for inspection at the Office of the Federal Register 
Information Center, 800 North Capitol Street NW., Suite 700, Washington, 
DC 20408. Incorporation of this publication by reference was approved by 
the Director of the Federal Register on June 24, 1986. The materials are 
incorporated as they exist on the date of the approval and a notice of 
any change in these materials will be published in the Federal Register.
    (ii) An official list of hydric soil map units shall be maintained 
at the local NRCS office and shall include--
    (A) All soils from the National List of Hydric Soils that can be 
found in that field office area, and
    (B) Any soil map units or areas which the state conservationist 
determines to meet such hydric soil criteria.

[[Page 341]]

    (iii) Any deletions of a hydric soil unit from the hydric soil map 
unit list must be made according to the established procedure contained 
in the publication ``Hydric Soils of the United States 1985'' for adding 
or deleting soils from the National List of Hydric Soils.
    (b) Hydrophytic vegetation. Hydrophytic vegetation consists of 
plants growing in water or in a substrate that is at least periodically 
deficient in oxygen during a growing season as a result of excessive 
water content.
    (1) A plant shall be considered to be a plant species that occurs in 
wetland if such plant is listed in the National List of Plant Species 
that Occur in Wetlands. The publication may be obtained upon request 
from the U.S. Fish and Wildlife Service at National Wetland Inventory, 
Monroe Bldg. Suite 101, 9720 Executive Center Drive, St. Petersburg, 
Florida 33702.
    (2) For the purposes of the definition of ``wetland'' in Sec. 12.2 
of this part, land shall be determined to have a prevalence of 
hydrophytic vegetation if:
    (i) NRCS determines through the criteria specified in paragraph 
(b)(3) of this section that under normal circumstances such land 
supports a prevalence of hydrophytic vegetation. The term ``normal 
circumstances'' refers to the soil and hydrologic conditions that are 
normally present, without regard to whether the vegetation has been 
removed; or
    (ii) In the event the vegetation on such land has been altered or 
removed, NRCS will determine if a prevalence of hydrophytic vegetation 
typically exists in the local area on the same hydric soil map unit 
under non-altered hydrologic conditions.
    (3) The determination of prevalence of hydrophytic vegetation will 
be made in accordance with the current Federal wetland delineation 
methodology in use by NRCS at the time of the determination.
    (c) Mitigation wetlands. Notwithstanding the provisions of this 
section, wetlands which are created in order to mitigate the loss of 
other wetlands as a result of irrigation, recreation, municipal water, 
flood control, or other similar projects shall not be considered to be 
artificial wetland for the purposes of Sec. 12.5(b)(1)(vii)(A) of this 
part.
    (d) Minimal effect determination. For the purposes of 
Sec. 12.5(b)(1)(v) of this part, NRCS shall determine whether the effect 
of any action of a person associated with the conversion of a wetland, 
the conversion of wetland and the production of an agricultural 
commodity on converted wetland, or the combined effect of the production 
of an agricultural commodity on a wetland converted by someone else has 
a minimal effect on the functions and values of wetlands in the area. 
Such determination shall be based upon a functional assessment of 
functions and values of the wetland under consideration and other 
related wetlands in the area, and will be made through an on-site 
evaluation. A request for such determination will be made prior to the 
beginning of activities that would convert the wetland. If a person has 
converted a wetland and then seeks a determination that the effect of 
such conversion on wetland was minimal, the burden will be upon the 
person to demonstrate to the satisfaction of NRCS that the effect was 
minimal.

The production of an agricultural commodity on any portion of a 
converted wetland in conformance with a minimal-effect determination by 
NRCS is exempt under Sec. 12.5(b)(1)(v) of this part. However, any 
additional action of a person that will change the functions and values 
of a wetland for which a minimal-effect determination has been made 
shall be reported to NRCS for a determination of whether the effect 
continues to be minimal. The loss of a minimal effect determination will 
cause a person who produces an agricultural commodity on the converted 
wetland after such change in status to be ineligible, under Sec. 12.4, 
for certain program benefits. In situations where the wetland functions 
and values are replaced by the restoration, enhancement or creation of a 
wetland in accordance with a mitigation plan approved by NRCS, the 
exemption provided by the determination will be effective after NRCS 
determines that all practices in a mitigation plan are being 
implemented.
    (e) Categorical Minimal Effect Exemptions. (1) The state 
conservationist, in

[[Page 342]]

consultation with the state technical committee established under 16 
U.S.C. 3861, shall identify any categories of conversion activities and 
conditions which are routinely determined by NRCS to have minimal effect 
on wetland functions and values, as described in paragraph (d) of this 
section, and recommend to the Chief, NRCS, or a designee, inclusion on a 
list of categorical minimal effect exemptions.
    (2) The Chief, or designee, shall evaluate the conversion practices 
recommended by the state conservationists in the region to ensure 
consistency across State and regional lines, and to determine whether 
any categories of conversion activities identified pursuant to paragraph 
(e)(1) of this section, if such activities were exempt from the 
ineligibility provisions of Sec. 12.4, would only have a minimal effect 
on wetland functions and values in a wetland system within the region.
    (3) Any categories of conversion activities which meet the criteria 
of paragraph (e)(2) of this section will be published in the Federal 
register for inclusion in this part and shall be exempt under 
Sec. 12.5(b)(1)(v) of this part.
    (4) The NRCS local field office shall maintain a list of any 
activities and conditions which are determined by the Chief, or 
designee, exempt pursuant to this section and will provide the list to a 
person upon request.



Sec. 12.32  Converted wetland identification criteria.

    (a) Converted wetland shall be identified by determining whether the 
wetland was altered so as to meet the definition of converted wetland. 
In making this determination, the following factors are to be 
considered:
    (1) Where hydric soils have been used for production of an 
agricultural commodity and the effect of the drainage or other altering 
activity is not clearly discernible, NRCS will compare the site with 
other sites containing the same hydric soils in a natural condition to 
determine if the hydric soils can or cannot be used to produce an 
agricultural commodity under natural conditions. If the soil on the 
comparison site could not produce an agricultural commodity under 
natural conditions, the subject wetland will be considered to be 
converted wetland.
    (2) Where woody hydrophytic vegetation has been removed from hydric 
soils for the purpose of or permitting the production of an agricultural 
commodity, the area will be considered to be converted wetland.
    (b) A wetland shall not be considered to be converted if:
    (1) Production of an agricultural commodity on such land is possible 
as a result of a natural condition, such as drought, and it is 
determined that the actions of the person producing such agricultural 
commodity does not permanently alter or destroy natural wetland 
characteristics. Destruction of herbaceous hydrophytic vegetation (i.e., 
plants other than woody shrubs or trees) as a result of the production 
of an agricultural commodity shall not be considered as altering or 
destroying natural wetland characteristic if such vegetation could 
return following cessation of the natural condition which made 
production of the agricultural commodity possible; or
    (2) Such land is correctly identified as farmed wetland or farmed-
wetland pasture.



Sec. 12.33  Use of wetland and converted wetland.

    (a) The provisions of Sec. 12.32(b)(2) are intended to protect 
remaining functions and values of the wetlands described therein. 
Persons may continue to farm such wetlands under natural conditions or 
as they did prior to December 23, 1985. However, no action can be taken 
to increase effects on the water regime beyond that which existed on 
such lands on or before December 23, 1985, unless NRCS determines the 
effect on losing remaining wetland values would be minimal under 
Sec. 12.5(b)(1)(v). If, after December 23, 1985, changes due to human 
activity occurred in the watershed and resulted in an increase in the 
water regime on a person's land, the person may be allowed to adjust the 
existing drainage system to accommodate the increased water regime on 
the condition that the person affected by this additional water provides 
NRCS with appropriate documentation of the increased water regime, the 
causes thereof, and the

[[Page 343]]

planned changes in the existing drainage system. In order to maintain 
program eligibility, a person must provide sufficient documentation and 
receive approval from NRCS prior to making any changes that will have 
the effect of increasing the capacity of the existing drainage systems.
    (b) Unless otherwise provided in this part, the production of an 
agricultural commodity on land determined by NRCS to be prior-converted 
cropland is exempted by law from these regulations for the area which 
was converted. Maintenance or improvement of drainage systems on prior-
converted croplands are not subject to this rule so long as the prior-
converted croplands are used for the production of food, forage, or 
fiber and as long as such actions do not alter the hydrology of nearby 
wetlands or do not make possible the production of an agricultural 
commodity on these other wetlands. Other wetlands under this section 
means any natural wetland, farmed wetland, farmed-wetland pasture, or 
any converted wetland that is not exempt under Sec. 12.5 of this part.
    (c) Abandonment is the cessation for five consecutive years of 
management or maintenance operations related to the use of a farmed 
wetland or a farmed-wetland pasture. Unless the criteria for receiving 
an exemption under Sec. 12.5(b)(1)(iii) are met, such land is considered 
to be abandoned when the land meets the wetland criteria of Sec. 12.31. 
In order for documentation of site conditions to be considered adequate 
under Sec. 12.5(b)(1)(iii), the affected person must provide to NRCS 
available information concerning the extent of hydrological 
manipulation, the extent of woody vegetation, and the history of use. In 
accordance with Sec. 12.5(b)(1)(iii), participation in a USDA approved 
wetland restoration, set-aside, diverted acres, or similar programs 
shall not be deemed to constitute abandonment.
    (d) The maintenance of the drainage capacity or any alteration or 
manipulation, including the maintenance of a natural waterway operated 
and maintained as a drainage outlet, that affects the circulation and 
flow of water made to a farmed wetland or farmed-wetland pasture would 
not cause a person to be determined to be ineligible under this part, 
provided that the maintenance does not exceed the scope and effect of 
the original alteration or manipulation, as determined by NRCS, and 
provided that the area is not abandoned. Any resultant conversion of 
wetlands is to be at the minimum extent practicable, as determined by 
NRCS.



Sec. 12.34  Paperwork Reduction Act assigned number.

    The information collection requirements contained in this regulation 
(7 CFR part 12) have been approved by the Office of Management and 
Budget under provisions of 44 U.S.C. chapter 35 and have been assigned 
OMB Number 0560-0004.



PART 13 [RESERVED]






PART 14--DETERMINING THE PRIMARY PURPOSE OF CERTAIN PAYMENTS FOR FEDERAL TAX PURPOSES--Table of Contents




Sec.
14.1  Purpose.
14.2  Applicability.
14.3  Objective.
14.4  Policy.
14.5  Procedure.
14.6  Criteria for determining the primary purpose of payments with 
          respect to potential exclusion from gross income.
14.7  Non-Federal programs and payments.

    Authority: Sec. 543, Pub. L. 95-600; as amended by sec. 105, Pub. L. 
96-222; 26 U.S.C. 126, 1255 and 5 U.S.C. 301.

    Source: 45 FR 58507, Sept. 4, 1980, unless otherwise noted.



Sec. 14.1  Purpose.

    (a) Part 14 sets forth criteria to be used by the Secretary of 
Agriculture in determining the primary purpose of certain payments 
received by persons under applicable programs. Determining the primary 
purpose for which applicable payments are made is one step toward the 
exclusion of all or part of the payments from gross income for Federal 
income tax purposes.
    (b) The criteria set forth in part 14 apply only to the 
determinations to be made by the Secretary of Agriculture.

[[Page 344]]



Sec. 14.2  Applicability.

    (a) Part 14 applies only to payments received under the programs 
listed in paragraphs (a)(1) through (10) of this section. Payments 
received under programs not listed in paragraphs (a)(1) through (10) of 
this section, are not considered eligible for exclusion from gross 
income under this part.
    (1) The rural clean water program authorized by section 208(j) of 
the Federal Water Pollution Control Act (33 U.S.C. 1288(j)).
    (2) The rural abandoned mine program authorized by section 406 of 
the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1236).
    (3) The water bank program authorized by the Water Bank Act (16 
U.S.C. 1301 et seq.).
    (4) The emergency conservation measures program authorized by title 
IV of the Agricultural Credit Act of 1978 (16 U.S.C. 2201 et seq.).
    (5) The agricultural conservation program authorized by the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590a).
    (6) The Great Plains conservation program authorized by section 16 
of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590p(b)).
    (7) The resource conservation and development program authorized by 
the Bankhead-Jones Farm Tenant Act and by the Soil Conservation and 
Domestic Allotment Act (7 U.S.C. 1010; 16 U.S.C. 590a et seq.).
    (8) The forestry incentives program authorized by section 4 of the 
Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103).
    (9) Any small watershed program administered by the Secretary of 
Agriculture that is determined by the Secretary of the Treasury or his 
delegate to be substantially similar to the type of programs described 
in paragraphs (a)(1) through (8) of this section.
    (10) Any program of a State, a possession of the United States, a 
political subdivision of a State or a possession of the United States, 
the District of Columbia, or a combination of any of the foregoing under 
which payments are made primarily for the purpose of conserving soil and 
water resources, protecting or restoring the environment, improving 
forests, or providing a habitat for wildlife.
    (b) The criteria set forth in Sec. 14.5 for determining the primary 
purpose of payments with respect to their eligibility for exclusion from 
gross income shall also be used to determine the applicability of this 
part to payments received under non-Federal programs as provided in 
Sec. 14.2(a)(10).



Sec. 14.3  Objective.

    The objective of the determinations made under part 14 is to provide 
maximum conservation, environmental, forestry improvement, and wildlife 
benefits to the general public from the operation of applicable 
programs.



Sec. 14.4  Policy.

    Federal tax, conservation, natural resource, and environmental 
policies should complement rather than conflict with one another. 
Therefore, the Federal income tax liability on applicable payments 
should be reduced or eliminated to the extent that the payments yield 
conservation, environmental, forestry improvement, or wildlife benefits 
to the general public beyond the benefits that accrue to those who 
receive the payments.



Sec. 14.5  Procedure.

    (a) The portion of an applicable payment that may be excluded from 
gross income under part 14 shall be that portion or all, as appropriate, 
that--
    (1) Is determined to be made primarily for the purpose of conserving 
soil and water resources, protecting or restoring the environment, 
improving forests, or providing wildlife habitat; and
    (2) Is determined by the Secretary of the Treasury as not increasing 
substantially the annual income derived from the property associated 
with the payment.
    (b) Primary purpose means the principal, fundamental, predominant, 
or independent objective for which a payment is made. The following 
shall be considered in determining the primary purpose of a payment:
    (1) Single-purpose payments shall be considered as having that 
purpose as their primary purpose.

[[Page 345]]

    (2) Multiple-purpose payments. If a payment is made for several 
purposes, it may be considered as having soil and water conservation, 
environmental protection or restoration, forestry improvement, or 
providing wildlife habitat as its primary purpose to the extent of the 
portion of the payment that is made for one or more of such purposes.
    (3) Where a purpose of a payment, or portion thereof, is in doubt, 
the following sources should be considered--
    (i) Authorizing legislation, legislative history, administrative 
regulation, administrative history, interpretive case law, and the 
administrative policies and procedures under which the applicable 
program operates and the payment is made; and
    (ii) Agreements or other documentation accompanying the transfer of 
the payment;
    (iii) Use made of the payment by the recipient.



Sec. 14.6  Criteria for determining the pri- mary purpose of payments with respect to potential exclusion from gross income.

    (a) Soil conservation. (1) Payments shall be considered to be made 
primarily for the purpose of soil conservation if they are intended to 
finance activities, measures, or practices to reduce soil deterioration.
    (2) Soil deterioration refers to impairments of the physical or 
chemical properties of soil that are largely irreversible and that can 
be expected to result in a long-term or permanent reduction in the 
productive capacity of the resource regardless of the level of 
technology available or applied. Erosion by water and wind and the 
associated changes that result in permanent or long-term reductions in 
the productive capacity of the soil are forms of soil deterioration.
    (b) Water conservation. (1) Water conservation includes actions 
that, for a given level of water supply, reduce the demand for or use of 
water by--
    (i) Improving efficiency in use;
    (ii) Reducing loss and waste;
    (iii) Increasing the recycling or reuse of water, thereby making 
existing supplies available for other current or future uses; or
    (iv) Improving land management practices for the purpose of reducing 
water use, loss, waste, increasing the efficiency of water use, or 
increasing the recycling or reuse of water.
    (2) Payments shall be considered to be made primarily for the 
purpose of water conservation if they are intended to finance actions, 
measures, or practices that can be expected to result in water 
conservation as defined in paragraph b(1) of this section.
    (c) Protecting the environment. (1) Payments shall be considered to 
be made primarily for the purpose of protecting the environment if they 
are intended to finance actions, measures, or practices undertaken to 
prevent man-caused or man-induced reductions or degradations in the 
quantity or quality of the natural external or extrinsic conditions 
directly or indirectly affecting people.
    (2) External or extrinsic conditions refer to the complex of natural 
conditions or circumstances, including but not limited to those 
affecting public health and safety, in which people reside or otherwise 
carry out their lives.
    (d) Restoring the environment. (1) Payments shall be considered to 
be made primarily for the purpose of restoring the environment if they 
are intended to finance actions, measures, or practices undertaken to 
reestablish, return, or enhance the quantity or quality of the natural 
external or extrinsic conditions directly or indirectly affecting people 
that existed before the man-caused or man-induced degradation.
    (2) External or extrinsic conditions have the same meaning with 
respect to restoring the environment as they do for protecting the 
environment.
    (e) Improving forests. (1) Payments shall be considered to be made 
primarily for the purpose of improving forests if they are intended to 
finance actions, measures, or practices undertaken for the direct or 
indirect conservation or enhancement of the quantity or quality of 
timber resources.
    (2) Improving forests includes the generation and regeneration of 
timber stands as well as the silvicultural improvement of such timber 
stands but excludes harvest cuttings not undertaken primarily for 
silvicultural improvement.

[[Page 346]]

    (f) Providing habitat for wildlife. (1) Payments shall be considered 
to be made primarily for the purpose of providing habitat for wildlife 
if they are intended to finance actions, measures, or practices leading 
directly to the establishment of those physical and biological 
conditions or resources that can be expected to support primarily 
noncultivated and nondomesticated animal and plant life. The animal and 
plant life must be of value to the public in their natural state apart 
from any value that may be realized from them as private economic gain.
    (2) Wildlife includes but is not limited to species of terrestrial 
or aquatic animals and plants.
    (3) Habitat includes, but is not limited to, the food supply, water 
supply, and nesting and escape cover necessary to support populations of 
wildlife species. Included in the definition of wildlife habitat are 
domestic crops raised for the primary purpose of providing food supply 
or cover for specific wildlife species.



Sec. 14.7  Non-Federal programs and payments.

    (a) Definition of non-Federal programs. Non-Federal program means 
any program of a State, a possession of the United States, a political 
subdivision of any State or possession of the United States, the 
District of Columbia, or a combination of any of the foregoing.
    (b) Applicability. Payments received through non-Federal programs 
under which payments are made primarily for the purpose of conserving 
soil and water resources, protecting or restoring the environment, 
improving forests, or providing a habitat for wildlife may be considered 
for exclusion from gross income under part 14.
    (c) Determining the primary purpose of non-Federal payments. The 
determination of the primary purpose for which non-Federal payments are 
made with respect to their potential for exclusion from gross income 
shall be made by using the criteria set forth in part 14 for determining 
the primary purpose of Federal payments.
    (d) Procedure for determining the primary purpose of payments made 
under non-Federal programs. (1) To initiate the process of determining 
the applicability of this part to payments received through non-Federal 
programs and the primary purpose of the payments for potential exclusion 
from gross income, the non-Federal official responsible for the program 
through which the payments are made should provide six copies of the 
following materials relating to the program to the Secretary of 
Agriculture--
    (i) Authorizing legislation;
    (ii) Rules or regulations;
    (iii) Current policies and procedures under which payments are made 
and used;
    (iv) A description of all practices or measures for which payments 
are made and used; and
    (v) Any other information that may be helpful in determining the 
purpose for which payments, or portions thereof, are made and used.
    (2) Any changes in the supporting documentation listed in paragraphs 
(d)(1)(i) through (d)(1)(iv) of this section, should be reported to the 
Secretary within 30 days of the date they become final.



PART 15--NONDISCRIMINATION--Table of Contents




   Subpart A--Nondiscrimination in Federally-Assisted Programs of the 
Department of Agriculture--Effectuation of Title VI of the Civil Rights 
                               Act of 1964

Sec.
15.1  Purpose and application of part.
15.2  Definitions.
15.3  Discrimination prohibited.
15.4  Assurances required.
15.5  Compliance.
15.6  Complaints.
15.7  Intimidatory or retaliatory acts prohibited.
15.8  Procedure for effecting compliance.
15.9  Hearings.
15.10  Decisions and notices.
15.11  Judicial review.
15.12  Effect on other regulations; forms and instructions.

Appendix to Subpart A--List of USDA-Assisted Programs

    Subpart B--Nondiscrimination--Direct USDA Programs and Activities

15.50  Applicability.
15.51  Discrimination prohibited.
15.52  Complaints.

Appendix to Subpart B--USDA Direct Programs and Activities

[[Page 347]]

 Subpart C--Rules of Practice and Procedure for Hearings, Decisions and 
        Administrative Review Under the Civil Rights Act of 1964

                           General Information

15.60  Scope of rules.
15.61  Records to be public.
15.62  Definitions.
15.63  Computation of time.
15.64  Parties.
15.65  Appearance.
15.66  Complainants not parties.
15.67  Intervener.
15.68  Ex parte communications.

            Form, Execution, Filing and Service of Documents

15.71  Form of documents to be filed.
15.72  Filing.
15.73  Service.
15.74  Date of service.

                       Initial Notice and Response

15.81  How proceedings are commenced.
15.82  Notice of hearing and response thereto.
15.83  Notice of opportunity to request a hearing and response thereto.
15.84  Answer.
15.85  Amendment of notice or answer.
15.86  Consolidated or joint hearings.

                             Hearing Officer

15.91  Who presides.
15.92  Designation of hearing officer.
15.93  Time and place of hearing.
15.94  Disability of hearing officer.
15.95  Responsibilities and duties of hearing officer.

                                 Motions

15.101  Form and content.
15.102  Responses to motions.
15.103  Disposition of motions.

                           Hearing Procedures

15.110  Prehearing conferences.
15.111  Purpose of hearing.
15.112  Statement of position and brief.
15.113  Testimony.
15.115  Affidavits.
15.116  Depositions.
15.117  Evidence.
15.118  Cross-examination.
15.119  Objections.
15.120  Exceptions to rulings of hearing officer unnecessary.
15.121  Official notice.
15.122  Offer of proof.
15.123  Appeals from ruling of hearing officer.
15.124  Admissions as to facts and documents.

                               The Record

15.131  Official transcript.
15.132  Record for decision.

                         Posthearing Procedures

15.135  Posthearing briefs.
15.136  Decisions and notices.
15.137  Exceptions to initial or proposed decision.
15.138  Review of initial decision.
15.139  Oral argument.
15.140  Service of decisions.
15.141  Contents of decision.
15.142  Content of orders.
15.143  Decision where financial assistance affected.

    Authority: 5 U.S.C. 301; 29 U.S.C. 794.



   Subpart A--Nondiscrimination in Federally-Assisted Programs of the 
Department of Agriculture--Effectuation of Title VI of the Civil Rights 
                               Act of 1964

    Source: 29 FR 16274, Dec. 4, 1964; 29 FR 16966, Dec. 11, 1964, 
unless otherwise noted.



Sec. 15.1  Purpose and application of part.

    (a) The purpose of the regulations in this part is to effectuate the 
provisions of title VI of the Civil Rights Act of 1964 (hereinafter 
referred to as the ``Act'') to the end that no person in the United 
States shall, on the ground of race, color, or national origin, be 
excluded from participation in, be denied the benefits of, or be 
otherwise subjected to discrimination under any program or activity of 
an applicant or recipient receiving Federal financial assistance from 
the Department of Agriculture or any Agency thereof.
    (b) The regulations in this part apply to any program or activity of 
an applicant or recipient for which Federal financial assistance is 
authorized under a law administered by the Department including, but not 
limited to, the Federal financial assistance listed in the appendix to 
this part. They apply to money paid, property transferred, or other 
Federal financial assistance extended to an applicant or recipient for 
its program or activity after the effective date of these regulations 
pursuant to an application approved or statutory or other provision made 
therefor prior to such effective date. The regulations

[[Page 348]]

in this part do not apply to (1) any Federal financial assistance by way 
of insurance or guaranty contract, (2) money paid, property transferred, 
or other assistance extended prior to the effective date of the 
regulations in this part, (3) any assistance to an applicant or 
recipient who is an ultimate beneficiary under any such program, or (4) 
except as provided in Sec. 15.3(c), any employment practice of any 
employer, employment agency or labor organization. The fact that a 
specific kind of Federal financial assistance is not listed in the 
appendix, shall not mean, if title VI of the Act is otherwise 
applicable, that such Federal financial assistance is not covered. Other 
Federal financial assistance under statutes now in force or hereinafter 
enacted may be added to this list by notice approved and issued by the 
Secretary and published in the Federal Register.

[29 FR 16274, Dec. 4, 1964, as amended at 38 FR 17925, July 5, 1973]



Sec. 15.2  Definitions.

    (a) Department means the Department of Agriculture, and includes 
each of its operating agencies and other organizational units.
    (b) Agency means any service, bureau, agency, office, 
administration, instrumentality of or corporation within the U.S. 
Department of Agriculture extending Federal financial assistance to any 
program or activity, or any officer or employee of the Department to 
whom the Secretary delegates authority to carry out any of the functions 
or responsibilities of an agency under this part.
    (c) Secretary means the Secretary of Agriculture or any officer or 
employee of the Department to whom the Secretary has heretofore 
delegated, or to whom the Secretary may hereafter delegate, the 
authority to act in his stead under the regulations in this part.
    (d) Hearing Officer means a hearing examiner appointed pursuant to 5 
U.S.C. 3105, and designated to hold hearings under the regulations in 
this part or any person authorized to hold a hearing and make a final 
decision under the regulations in this part.
    (e) Recipient means any State, political subdivision of any State, 
or instrumentality of any State or political subdivision, any public or 
private agency, institution, or organization, or other entity or any 
individual in any State, to whom Federal financial assistance is 
extended, directly or through another recipient, for any program, 
including any successor, assignee, or transferee thereof, but such term 
does not include any ultimate beneficiary under any such program.
    (f) Primary recipient includes any recipient which is authorized or 
required to extend Federal financial assistance to another recipient for 
the purpose of carrying out a program.
    (g) Federal financial assistance or financial assistance includes 
(1) grants and loans of Federal funds, (2) the grant or donation of 
Federal property and interests in property, (3) the detail of Federal 
personnel, (4) the sale and lease of, and the permission to use (on 
other than a casual or transient basis), Federal property or any 
interest in such property or the furnishing of services without 
consideration or at a nominal consideration, or at a consideration which 
is reduced for the purpose of assisting the recipient, or in recognition 
of the public interest to be served by such sale, lease or furnishing of 
services to the recipient, and (5) any Federal agreement, arrangement, 
or other contract which has as one of its purposes the provision of 
assistance.
    (h) Grant, loan or contract includes any grant, loan agreement or 
commitment to loan, contract or agreement to provide financial 
assistance or any other arrangement between the Department or any Agency 
and a recipient of financial assistance.
    (i) United States means the States of the United States, the 
District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, 
Guam, Wake Island, the Canal Zone, and the territories and possessions 
of the United States, and the term State means any one of the foregoing.
    (j) Applicant means one who submits an application, request, or plan 
required to be approved by an Agency, or by a primary recipient, as a 
condition to eligibility for Federal financial assistance, and 
application means such an application, request, or plan.
    (k) Program includes any program, project, or activity for the 
provision of

[[Page 349]]

services, financial aid, or other benefits to individuals (whether 
provided through employees of the recipient of Federal financial 
assistance or provided by others through contracts or other arrangements 
with the recipient, and including work opportunities and cash or loan or 
other assistance to individuals), for the provision of facilities for 
furnishing services, financial aid or other benefits to individuals. The 
services, financial aid, or other benefits provided under a program 
receiving Federal financial assistance shall be deemed to include any 
services, financial aid, or other benefits provided with the aid of 
Federal financial assistance or with the aid of any non-Federal funds, 
property, or other resources required to be expended or made available 
for the program to meet matching requirements or other conditions which 
must be met in order to receive the Federal financial assistance, and to 
include any services, financial aid, or other benefits provided in or 
through a facility provided with the aid of Federal financial assistance 
or such non-Federal resources.
    (l) Facility includes all or any portion of structures, equipment, 
or other real or personal property or interests therein, and the 
provision of facilities includes the construction, expansion, 
renovation, remodeling, alteration or acquisition of facilities.

[29 FR 16274, Dec. 4, 1964, as amended at 36 FR 3411, Feb. 24, 1971; 38 
FR 17925, July 5, 1973]



Sec. 15.3  Discrimination prohibited.

    (a) General. No person in the United States shall, on the ground of 
race, color, or national origin, be excluded from participation in, be 
denied the benefits of, or be otherwise subjected to discrimination 
under any program or activity of the applicant or recipient to which 
these regulations apply. These regulations apply, but are not 
restricted, to unequal treatment in priority, quality, quantity, methods 
or charges for service, use, occupancy or benefit, participation in the 
service or benefit available, or in the use, occupancy or benefit of any 
structure, facility, or improvement.
    (b) Specific discriminatory actions prohibited. (1) A recipient 
under any program to which the regulations in this part apply may not, 
directly or through contractual or other arrangements on the ground of 
race, color, or national origin:
    (i) Deny an individual any service, financial aid, or other benefit 
provided under the program;
    (ii) Provide any service, financial aid, or other benefit, to an 
individual which is different, or is provided in a different manner, 
from that provided to others under the program;
    (iii) Subject an individual to segregation or separate treatment in 
any matter related to his receipt of any service, financial aid, or 
other benefit under the program;
    (iv) Restrict an individual in any way in the enjoyment of any 
advantage or privilege, enjoyed by others receiving any service, 
financial aid, or other benefit under the program;
    (v) Treat an individual differently from others in determining 
whether he satisfies any admission, enrollment, quota, eligibility, 
membership or other requirement or condition which individuals must meet 
in order to be provided any service, financial aid, or other benefit 
provided under the program;
    (vi) Deny an individual an opportunity to participate in the program 
through the provisions of services or otherwise or afford him an 
opportunity to do so which is different from that afforded others under 
the program (including the opportunity to participate in the program as 
an employee but only to the extent set forth in paragraph (c) of this 
section).
    (vii) Deny a person the opportunity to participate as a member of a 
planning or advisory body which is an integral part of the program.
    (2) A recipient, in determining the types of services, financial 
aid, or other benefits, or facilities which will be provided under any 
such program, or the class of individuals to whom, or the situations in 
which, such services, financial aid, other benefits, or facilities will 
be provided under any such program or the class of individuals to be 
afforded an opportunity to participate in any such program, may not, 
directly or through contractual or other arrangements, utilize criteria 
or methods

[[Page 350]]

of administration which have the effect of subjecting individuals to 
discrimination because of their race, color, or national origin, or have 
the effect of defeating or substantially impairing accomplishment of the 
objectives of the program as respects individuals of a particular race, 
color, or national origin.
    (3) In determining the site or location of facilities, an applicant 
or recipient may not make selections with the purpose or effect of 
excluding individuals from, denying them the benefits of, or subjecting 
them to discrimination under any of its activities or programs to which 
the regulations in this part apply, on the grounds of race, color, or 
national origin; or with the purpose or effect of defeating or 
substantially impairing the accomplishment of the objectives of the Act 
and the regulations in this part.
    (4) As used in this section, the services, financial aid, or other 
benefit provided under a program or activity of an applicant or 
recipient receiving Federal financial assistance shall be deemed to 
include any and all services, financial aid, or other benefit provided 
in or through a facility provided or improved in whole or part with the 
aid of Federal financial assistance.
    (5) The enumeration of specific forms of prohibited discrimination 
in these regulations does not limit the applicability of the provisions 
of paragraph (a) of this section.
    (6)(i) In administering a program regarding which the recipient has 
previously discriminated against persons on the ground of race, color, 
or national origin, the recipient must take affirmative action to 
overcome the effects of prior discrimination.
    (ii) Even in the absence of such prior discrimination, a recipient 
in administering a program may take affirmative action to overcome the 
effects of conditions which resulted in limiting participation by 
persons of a particular race, color or national origin.
    (c) Employment practices. Where a primary objective of the Federal 
financial assistance to a program to which the regulations in this part 
apply is to provide employment, a recipient may not, directly or through 
contractual or other arrangements, subject an individual to 
discrimination on the ground of race, color, or national origin in its 
employment practices under the program including recruitment or 
recruitment advertising, employment, layoff or termination, upgrading, 
demotion, or transfer, rates of pay or other forms of compensation, and 
use of facilities. This paragraph applies to programs where a primary 
objective of the Federal financial assistance is (1) to reduce 
unemployment, (2) to assist individuals in meeting expenses incident to 
the commencement or continuation of their education or training, or (3) 
to provide work experience which contributes to education or training. 
Where a primary objective of the Federal financial assistance is not to 
provide employment, but discrimination on the grounds of race, color, or 
national origin in the employment practices of the recipient or other 
persons subject to the regulations in this part, tends, on the grounds 
of race, color, or national origin, to exclude individuals from 
participation in, to deny them the benefits of, or to subject them to 
discrimination under any program or activity of the applicant or 
recipient to which these regulations apply, the foregoing provisions of 
this Sec. 15.3(c) shall apply to the employment practices of the 
recipient or other persons subject to these regulations, to the extent 
necessary to assure equality of opportunity to, and nondiscriminatory 
treatment of, beneficiaries. The requirements applicable to construction 
employment under any program or activity of the applicant or recipient 
shall be those specified in or pursuant to part III of Executive Order 
11246 or any Executive order which supersedes it.
    (d) Examples. In order that all parties may have a clear 
understanding of the applicability of the regulations in this part to 
their activities, there are listed in this section programs and 
activities together with illustrations, by way of example only, of types 
of activity covered by the regulations in this part. These illustrations 
and examples, however, are not intended to be all inclusive. The fact 
that a particular program is not listed does not, of course, indicate 
that it is not covered by the regulations in this part. Moreover, the 
examples set forth with respect to any

[[Page 351]]

particular listed program are not limited to that program alone and the 
prohibited actions described may also be prohibited in other programs or 
activities whether or not listed below.
    (1) Cooperative agricultural extension program. (i) Discrimination 
in making available or in the manner of making available instructions, 
demonstrations, information, and publications offered by or through the 
Cooperative Extension Service;
    (ii) Discrimination in the use in any program or activity of the 
Cooperative Extension Service of any facility, including offices, 
training facilities, lecture halls, or other structures or improvements; 
or
    (iii) Discrimination in training activities, admission to or 
participation in fairs, competitions, field days, and encampments, 
conducted or sponsored by, or in which the Cooperative Extension Service 
participates.
    (2) Rural electrification and rural telephone programs. (i) Refusal 
or failure by a borrower to accept applications for membership or 
applications to purchase shares of stock, or discrimination by a 
borrower in the terms and conditions of membership or stock ownership, 
where such membership or stock ownership is a condition prerequisite to 
the furnishing of electric or telephone service by the borrower, or to 
the receipt of any benefits or advantages related to such service;
    (ii) Refusal or failure by a borrower to extend, or discrimination 
by a borrower in the extension of, electric or telephone service to 
unserved persons;
    (iii) Denial by a borrower to any person of the benefits of 
improvement, expansion or upgrading, or discrimination by a borrower 
among consumers or subscribers in improving, expanding or upgrading, of 
electric or telephone service;
    (iv) Discrimination by a borrower in respect of rates, or terms or 
conditions of, service among consumers or subscribers;
    (v) Exclusion by a borrower of any member or stockholder, if the 
borrower is a cooperative or mutual type of corporation, from 
participation in any meeting of members or stockholders of the borrower, 
discrimination among its members or stockholders in respect of the 
exercise of any of their rights as members or stockholders, or in the 
manner of the exercise of such rights; or
    (vi) Exclusion by a borrower of any consumer or subscriber from, 
denial by a borrower to any consumer or subscriber of the use of, or 
discrimination by a borrower against any consumer or subscriber in his 
use of, any of the borrower's facilities.
    (3) Direct distribution program. (i) Exclusion of an otherwise 
eligible recipient agency (school, summer camp for children, 
institution, welfare agency or disaster organization) or person from 
participation in the direct distribution program.
    (ii) Discrimination in the allocation of food to eligible persons.
    (iii) Discrimination in the manner in which or the place or times at 
which foods donated under the program are distributed by recipient 
agencies to eligible persons.
    (iv) Segregation of persons served in different meal periods or by 
different seating or serving or different food or different size 
portions by recipient agencies serving prepared meals containing donated 
foods.
    (4) National school lunch program. (i) Discrimination by a State 
agency in the selection of schools to participate in the program or in 
the assignment to schools of rates of reimbursement.
    (ii) Exclusion of any child from participation in the program.
    (iii) Discrimination by school officials in the selection of 
children to receive free or reduced-price lunches.
    (iv) Segregation of participating children in different lunch 
periods or different seating, and discrimination by serving different 
food or different size portions.
    (v) Failure to offer free and reduced-price lunches, on an equitable 
basis in schools of a school district in which children are assigned to 
schools on the basis of race, color, or national origin.
    (5) Food stamp program. (i) Discrimination by a State agency in 
certifying households as eligible for the program.
    (ii) Segregation or other discrimination in the manner in which or 
the times at which eligible households are issued food coupons.

[[Page 352]]

    (6) Special milk program for children. (i) Discrimination by a State 
agency in the selection of schools and child-care institutions to 
participate in the program.
    (ii) Discrimination by a State agency in the selection of needy 
schools to receive reimbursement for milk served free.
    (iii) Discrimination by a State agency in the assignment of 
reimbursement rates to schools and child-care institutions or in the 
adjustment of such rates, or in fixing allowable distribution costs.
    (iv) Exclusion of any child from participation in the program and 
segregation of participating children in different serving periods or 
different places of service.
    (v) Discrimination by school officials or child-care institutions in 
the selection of children to receive free milk.
    (7) Price support programs carried out through producer associations 
or cooperatives or through persons who are required to provide specified 
benefits to producers. (i) Denial of the benefits of price support for a 
producers commodity.
    (ii) Denial of membership or stock ownership to any producer by any 
association or cooperative.
    (iii) Discrimination among producers in the manner of making or 
paying any price support advances, loans, or payments.
    (iv) Discrimination in the fees or charges collected from or in the 
net gains distributed to producers.
    (v) Discrimination in the use of facilities and services generally 
made available to members or patrons under the price support program.
    (8) Forest service programs. (i) Refusal or failure by a recipient 
of a permit or lease to provide to any person the benefits from the use 
of land administered by the Forest Service, the resources therefrom, or 
improvements thereon.
    (ii) Refusal or failure by any recipient to provide to any person 
the benefits from Federal payments based on a share of the receipts from 
lands administered by the Forest Service.
    (iii) Refusal or failure by any recipient to provide to any person 
the benefits from Federal assistance in cooperative programs for the 
protection, development, management, and use of forest resources.
    (iv) Refusal or failure by any cooperator or other recipient to 
provide to any person the benefits from Federal assistance through 
grants or advances of funds for research.
    (9) Farmers Home Administration programs--(i) Direct soil and water 
loans to association. (a) A borrower's denial of, or discrimination in 
furnishing, services under a program or activity financed wholly or 
partially with the aid of the loan, as in the case of a water supply 
system.
    (b) A borrower's denial of, or discrimination or segregation in 
permitting, the use of facilities which are part of a project financed 
wholly or partially with the aid of the loan, as in the case of a golf 
course, swimming pool, tennis courts, parking areas, lounges, dining 
rooms, and rest rooms of a recreation association.
    (c) Discrimination by a borrower in the terms and conditions of 
membership or stock ownership, or refusal or failure of a borrower to 
accept applications for membership or for purchase of shares of stock, 
or discrimination by a borrower in acting or failing to act upon such 
applications, where such membership or stock ownership is a prerequisite 
to the participation in services furnished by, or the use of facilities 
of, the borrower which are financed wholly or partially with the aid of 
the loan or to the receipt of any benefits or advantages related to such 
services or the use of such facilities.
    (d) Denial or impairment by a borrower of any person's rights as a 
member or stockholder of the borrower, or borrower's discrimination 
against or segregation of persons in the exercise of their rights as 
members or stockholders of the borrower.
    (ii) Direct senior citizens rental housing loans to private 
nonprofit corporations and consumer cooperatives. (a) A borrower's 
exclusion of any person from, discrimination in the terms and conditions 
of eligibility for, or discrimination against or segregation of any 
person in, the use and occupancy of the housing and related facilities 
financed wholly or partially with the aid of the loan.

[[Page 353]]

    (b) Discrimination by a borrower in the terms and conditions of 
membership or stock ownership, or refusal or failure of a borrower to 
accept applications for membership or for purchase of shares of stock, 
or discrimination by a borrower in acting or failing to act upon such 
applicattions, where such membership or stock ownership is a condition 
of eligibility for use and occupancy of the housing and related 
facilities financed wholly or partially with the aid of the loan or to 
the receipt of any benefits or advantages related to such housing or 
facilities.
    (c) Denial or impairment by a borrower of any person's rights as a 
member or stockholder of the borrower, or a borrower's discrimination 
against or segregation of persons in the exercise of their rights as 
members or stockholders of the borrower.
    (10) Cooperative State research programs. (i) Discrimination in 
making available information whether published or provided through 
public or private statement, correspondence, demonstration or field day.
    (ii) Discrimination in participation in any cooperative research 
program or project.
    (iii) Discrimination in the use of any facility, including offices, 
laboratories, or other structures, or research plots or fields.
    (iv) Discrimination in employment of graduate students to conduct 
research when such students receive substantial research training 
benefits as a result of such employment.

[29 FR 16274, Dec. 4, 1964, as amended at 35 FR 18383, Dec. 3, 1970; 38 
FR 17925, July 5, 1973]



Sec. 15.4  Assurances required.

    (a) General. (1) Every application for Federal financial assistance 
to carry out a program to which these regulations apply, except a 
program to which paragraph (b) of this section applies, and every 
application for Federal financial assistance to provide a facility, 
shall as a condition to its approval and the extension of any Federal 
financial assistance pursuant to the application, contain or be 
accompanied by an assurance that the applicant's program or activity 
will be conducted or the facility operated in compliance with all 
requirements imposed by or pursuant to the Act and the regulations in 
this part. In the case where the Federal financial assistance is to 
provide or is in the form of personal property, or real property or 
interest therein, or structures thereon, the assurance shall obligate 
the recipient, or, in the case of a subsequent transfer, the transferee, 
for the period during which the property is used for the purpose for 
which the Federal financial assistance is extended or for another 
purpose involving the provision of similar services and benefits or for 
as long as the recipient retains ownership or possession of the 
property, whichever is longer. In all other cases, the assurance shall 
obligate the recipient for the period during which Federal financial 
assistance is extended pursuant to the application. The Agency shall 
specify the form of the foregoing assurances and the extent to which 
like assurances will be required of subgrantees, contractors, and 
subcontractors, successors in interest and other participants. Any such 
assurance shall include provisions which give the United States a right 
to seek its judicial enforcement.
    (2) In the case of real property, structures, or improvements 
thereon, or interests therein, which was acquired through Federal 
financial assistance, or in the case where Federal financial assistance 
is provided in the form of a transfer of real property or interest 
therein from the Federal Government, the instrument effecting or 
recording the transfer shall contain a covenant running with the land 
assuring nondiscrimination for the period during which the real property 
is used for a purpose for which the Federal financial assistance is 
extended or for another purpose involving the provision of similar 
services or benefits, or for as long as the recipient retains ownership 
or possession of the property, whichever is longer. Where no transfer of 
property is involved, but property is improved through Federal financial 
assistance, the recipient shall agree to include such a covenant in any 
subsequent transfer of such property. Where the property is obtained 
from the Federal Government, such covenant may also include a condition 
coupled with a right to be reserved by the Agency to

[[Page 354]]

revert title to the property in the event of a breach of the covenant 
where, in the discretion of the Agency concerned, such a condition and 
right of reverter is appropriate to the purposes of the Federal 
financial assistance under which the real property is obtained and to 
the nature of the grant and the grantee. In such event, if a transferee 
of real property proposes to mortgage or otherwise encumber the real 
property as security for financing construction of new, or improvement 
of existing, facilities on such property for the purposes for which the 
property was transferred, the Agency may agree, upon request of the 
transferee and if necessary to accomplish such financing, and upon such 
conditions as it deems appropriate to forbear the exercise of such right 
to revert title for so long as the lien of such mortgage or other 
encumbrance remains effective.
    (3) Transfers of surplus property are subject to regulations issued 
by the Administrator of General Services (41 CFR 101-6.2).
    (b) Every application by a State or a State Agency, including a 
State Extension Service, but not including an application for aid to an 
institution of higher education, to carry out its program or activity 
involving continuing Federal financial assistance to which the 
regulations in this part apply shall as a condition to its approval and 
the exension of any Federal financial assistance pursuant to the 
application (1) contain or be accompanied by a statement that the 
program is (or, in the case of a new program, will be) conducted in 
compliance with all requirements imposed by or pursuant to this part, 
and (2) provide or be accompanied by provision for such methods of 
administration for the program as are found by the Agency to give 
reasonable assurance that the applicant and all recipients of Federal 
financial assistance under such program will comply with all 
requirements imposed by or pursuant to the regulations in this part: 
Provided, That where no application is required prior to payment, the 
State or State Agency, including a State Extension Service, shall, as a 
condition to the extension of any Federal financial assistance, submit 
an assurance complying with the requirements of paragraphs (b)(1) and 
(2) of this section.
    (c) Assurances from institutions. The assurance required with 
respect to an institution of higher education, or any other institution, 
insofar as the assurance relates to the institution's practices with 
respect to admission or other treatment of individuals or to the 
opportunity to participate in the provision of services or other 
benefits to such individuals, shall be applicable to the entire 
institution unless the applicant establishes, to the satisfaction of the 
Agency, that the institution's practices in designated parts or programs 
of the institution will in no way affect its practices in the program of 
the institution for which Federal financial assistance is sought, or the 
beneficiaries of or participants in such program. If in any such case 
the assistance sought is for the construction of a facility or part of a 
facility, the assurance shall in any event extend to the entire facility 
and to facilities operated in connection therewith.
    (d) Recipients other than applicants. Each recipient not required to 
submit an application for Federal financial assistance, shall furnish, 
as a condition to the extension of any such assistance, an assurance or 
statement as is required of applicants under paragraphs (a), (b)(1) and 
(2) of this section.
    (e) Elementary and secondary schools. The requirements of paragraphs 
(a), (b), or (d) of this section with respect to any elementary or 
secondary school or school system shall be deemed to be satisfied if 
such school or school system (1) is subject to a final order of a court 
of the United States for the desegregation of such school or school 
system, and provides an assurance that it will comply with such order, 
including any future modification of such order, or (2) submits a plan 
for the desegregation of such school or school system which the 
responsible official of the Department of Health, Education, and Welfare 
determines is adequate to accomplish the purposes of the Act and this 
part, and provides reasonable assurance that it will carry out such 
plan; in any case of continuing Federal financial assistance the said 
responsible official of the Department of

[[Page 355]]

Health, Education, and Welfare may reserve the right to redetermine, 
after such period as may be specified by him, the adequacy of the plan 
to accomplish the purposes of the Act and this part within the earliest 
practical time. In any case in which a final order of a court of the 
United States for the desegregation of such school or school system is 
entered after submission of such a plan, such plan shall be revised to 
conform to such final order, including any future modification of such 
order.

[29 FR 16274, Dec. 4, 1964, as amended at 32 FR 3967, Mar. 11, 1967; 35 
FR 18383, Dec. 3, 1970; 38 FR 17926, July 5, 1973]



Sec. 15.5  Compliance.

    (a) Cooperation and assistance. Each Agency shall to the fullest 
extent practicable seek the cooperation of recipients in obtaining 
compliance with the regulations and this part and shall provide 
assistance and guidance to recipients to help them comply voluntarily 
with the regulations in this part. As a normal part of the 
administration of programs covered by the regulations in this part, 
designated personnel will in their program reviews and other activities 
or as specifically directed by the Agency, review the activities of 
recipients to determine whether they are complying with the regulations 
in this part. Reports by such personnel shall include statements 
regarding compliance and instances, if any, of noncompliance. In the 
event of noncompliance, the Agency shall seek to secure voluntary 
compliance by all appropriate means.
    (b) Compliance reports. Each recipient shall keep such records and 
submit to the Agency timely, complete and accurate compliance reports at 
such times, and in such form and containing such information, as the 
Agency may determine to be necessary to ascertain whether the recipient 
has complied or is complying with the regulations in this part. In the 
case of any program under which a primary recipient extends Federal 
financial assistance to any other recipient, such other recipient shall 
also submit such compliance reports to the primary recipient as may be 
necessary to enable the primary recipient to carry out its obligations 
under the regulations in this part. In general, recipients should have 
available for the Agency racial and ethnic data showing the extent to 
which members of minority groups are beneficiaries of federally assisted 
programs.
    (c) Access to sources of information. Each recipient shall permit 
access by authorized employees of this Department during normal business 
hours to such of its books, records, accounts, and other sources of 
information, and its facilities as may be pertinent to ascertain 
compliance with the regulations in this part. Where any information 
required of a recipient is in the exclusive possession of any other 
agency, institution or person and this agency, institution or person 
shall fail or refuse to furnish this information, the recipient shall so 
certify in its report and shall set forth what efforts it has made to 
obtain the information.
    (d) Information to beneficiaries and participants. Each recipient 
shall make available to participants, beneficiaries, and other 
interested persons such information regarding the provisions of the 
regulations in this part and their applicability to the program under 
which the recipient receives Federal financial assistance, and make such 
information available to them in such manner, as the Department or its 
Agencies finds necessary to apprise such persons of the protections 
against discrimination assured them by the Act and the regulations in 
this part.

[29 FR 16274, Dec. 4, 1964, as amended at 29 FR 16966, Dec. 11, 1964; 38 
FR 17926, July 5, 1973]



Sec. 15.6  Complaints.

    Any person who believes himself/herself or any specific class of 
individuals to be subjected to discrimination prohibited by the 
regulations in this part may by himself/herself or by an authorized 
representative file with the Secretary or any Agency a written 
complaint. A complaint must be filed not later than 180 days from the 
date of the alleged discrimination, unless the time for filing is 
extended by the Agency or by the Secretary. Such complaint shall be 
promptly referred to the Assistant Secretary for Administration. The 
complaint shall be investigated in the

[[Page 356]]

manner determined by the Assistant Secretary for Administration and such 
further action taken by the Agency or the Secretary as may be warranted.

[50 FR 25687, June 21, 1985]



Sec. 15.7  Intimidatory or retaliatory acts prohibited.

    No recipient or other person shall intimidate, threaten, coerce, or 
discriminate against any individual for the purpose of interfering with 
any right or privilege secured by section 601 of the Act or the 
regulations in this part, or because he has made a complaint, testified, 
assisted, or participated in any manner in an investigation, proceeding, 
or hearing under the regulations in this part. The identity of 
complainants shall be kept confidential except to the extent necessary 
to carry out the purposes of the regulations in this part, including the 
conduct of any hearing or judicial proceeding arising thereunder.



Sec. 15.8  Procedure for effecting compliance.

    (a) General. If there appears to be a failure or threatened failure 
to comply with the regulations in this part, and if the noncompliance or 
threatened noncompliance cannot be corrected by informal means, 
compliance with the regulations in this part may be effected by the 
suspension or termination of or refusal to grant or to continue Federal 
financial assistance, upon a finding, in accordance with the procedure 
hereinafter prescribed, or by any other means authorized by law. Such 
other means may include, but are not limited to, (1) a reference to the 
Department of Justice with a recommendation that appropriate proceedings 
be brought to enforce any rights of the United States under any law of 
the United States (including other titles of the Act), or any assurance 
or other contractual undertaking, and (2) any applicable proceeding 
under State or local law.
    (b) Noncompliance with Sec. 15.4. If an applicant fails or refuses 
to furnish an assurance required under Sec. 15.4 or otherwise fails or 
refuses to comply with the requirements imposed by or pursuant to that 
section, Federal financial assistance may be refused in accordance with 
the procedures of paragraph (c) of this section. The Department shall 
not be required to provide assistance in such a case during the pendency 
of the administrative proceedings under such paragraph, except that the 
Department shall continue assistance during the pendency of such 
proceedings where such assistance is due and payable pursuant to an 
application therefor approved prior to the effective date of the 
regulations in this part.
    (c) Termination of or refusal to grant or to continue Federal 
financial assistance. No order suspending, terminating, or refusing to 
grant or to continue Federal financial assistance shall become effective 
until (1) the Agency has advised the applicant or recipient of his 
failure to comply and has determined that compliance cannot be secured 
by voluntary means, (2) there has been an express finding on the record, 
after opportunity for hearing, of a failure by the applicant or 
recipient to comply with the requirement imposed by or pursuant to the 
regulations in this part, (3) the action has been approved by the 
Secretary pursuant to Sec. 15.10(e), and (4) the expiration of 30 days 
after the Secretary has filed with the committee of the House and the 
committee of the Senate, having legislative jurisdiction over the 
program involved, a full written report of the circumstances and the 
grounds for such action. Any action to suspend or terminate or to refuse 
to grant or to continue Federal financial assistance shall be limited to 
the particular political entity, or part thereof, or other applicant or 
recipient as to whom such a finding has been made and shall be limited 
in its effect to the particular program, or part thereof, in which such 
noncompliance has been so found.
    (d) Other means authorized by law. No action to effect compliance by 
any other means authorized by law shall be taken until (1) the Secretary 
has determined that compliance cannot be secured by voluntary means, (2) 
the recipient or other person has been notified of its failure to comply 
and of the action to be taken to effect compliance, and (3) the 
expiration of at least ten days from the mailing of such notice to the 
recipient or other person. During this period of at least ten days, 
additional efforts shall be made to persuade the recipient or other 
person to

[[Page 357]]

comply with the regulations in this part and to take such corrective 
action as may be appropriate.



Sec. 15.9  Hearings.

    (a) Opportunity for hearing. Whenever an opportunity for a hearing 
is required under the regulations in this part, reasonable notice shall 
be given by registered or certified mail, return receipt requested, to 
the affected applicant or recipient. This notice shall advise the 
applicant or recipient of the action proposed to be taken, the specific 
provision under which the proposed action against it is to be taken, and 
the matters of fact or law asserted as the basis for this action, and 
either (1) fix a date not less than 20 days after the date of such 
notice within which the applicant or recipient may request of the 
Secretary or the Agency that the matter be scheduled for hearing or (2) 
advise the applicant or recipient that the matter in question has been 
set down for hearing at a stated place and time. The time and place so 
fixed shall be reasonable and shall be subject to change for cause. The 
complainant, if any, shall be advised of the time and place of the 
hearing. An applicant or recipient may waive a hearing and submit 
written information and argument for the record. The failure of an 
applicant or recipient to request a hearing under this subsection or to 
appear at a hearing for which a date has been set shall be deemed to be 
a waiver of the right to a hearing under section 602 of the Act and the 
regulations in this part and consent to the making of a decision on the 
basis of such information as is available.
    (b) Time and place of hearing. Hearings shall be held at the offices 
of the Department in Washington, DC, at a time fixed by the hearing 
officer or by the Secretary unless it is determined that the convenience 
of the applicant or recipient or of the Department requires that another 
place be selected. Hearings shall be held before a hearing officer.
    (c) Right to counsel. In all proceedings under this section, the 
applicant or recipient and the Department shall have the right to be 
represented by counsel.
    (d) Procedures, evidence, and record. (1) The hearing, decision, and 
any administrative review thereof shall be conducted in conformity with 
5 U.S.C. 554-557, and in accordance with such rules of procedure 
promulgated by the Secretary as not inconsistent with this section, 
relating to the conduct of the hearing, giving of notices subsequent to 
those provided for in paragraph (a) of this section, taking of 
testimony, exhibits, arguments and briefs, requests for findings, and 
other related matters. Both the Department, and the applicant or 
recipient shall be entitled to introduce all relevant evidence on the 
issues as stated in the notice for hearing or as determined by the 
hearing officer conducting the hearing at the outset of or during the 
hearing.
    (2) Technical rules of evidence shall not apply to hearings 
conducted pursuant to these regulations in this part, but rules or 
principles designed to assure production of the most credible evidence 
available and to subject testimony to test by cross-examination shall be 
applied where reasonably necessary by the hearing officer. The hearing 
officer may exclude irrelevant, immaterial, or unduly repetitious 
evidence. All documents and other evidence offered or taken for the 
record shall be open to examination by the parties and opportunity shall 
be given to refute facts and arguments advanced on either side of the 
issues. A transcript shall be made of the oral evidence except to the 
extent the substance thereof is stipulated for the record. All decisions 
shall be based upon the hearing record and written findings shall be 
made.
    (e) Consolidated or joint hearings. In cases in which the same or 
related facts are asserted to constitute noncompliance with these 
regulations with respect to two or more programs to which the 
regulations in this part apply, or noncompliance with the regulations in 
this part and the regulations of one or more other Federal Departments 
or Agencies issued under title VI of the Act, the Secretary may, by 
agreement with such other Departments or Agencies, where applicable 
provide for the conduct of consolidated or joint hearings, and for the 
application to such hearings of rules of procedure not inconsistent with 
the regulations in this part. Final decisions in

[[Page 358]]

such cases, insofar as the regulations in this part are concerned, shall 
be made in accordance with Sec. 15.10.

[29 FR 16274, Dec. 4, 1964, as amended at 35 FR 18384, Dec. 3, 1970; 38 
FR 17926, July 5, 1973]



Sec. 15.10  Decisions and notices.

    (a) Decision by hearing officer or Secretary. (1) The hearing 
officer shall either make an initial decision, if so authorized, or 
certify the entire record including his recommended findings, and 
proposed decision to the Secretary for a final decision, and a copy of 
such initial decision or certification shall be mailed to the applicant 
or recipient. The applicant or recipient may within 30 days of the 
mailing of such notice of initial decision file with the Secretary his 
exceptions to the initial decision, with his reasons therefor.
    (2) In the absence of exceptions, the Secretary may on his own 
motion within 45 days after the initial decision serve on the applicant 
or recipient a notice that he will review the decision. Upon the filing 
of such exceptions or of such notice of review the Secretary shall 
review the initial decision and issue his own decision thereon including 
the reasons therefor. In the absence of either exceptions or a notice of 
review the initial decision shall constitute the final decision of the 
Secretary.
    (b) Decisions on record or review. Whenever a record is certified to 
the Secretary for decision or he reviews the decision of a hearing 
officer pursuant to paragraph (a), the applicant or recipient shall be 
given reasonable opportunity to file with him briefs or other written 
statements of its contentions, and a copy of the final decision of the 
Secretary shall be given in writing to the applicant or recipient, and 
to the complainant, if any.
    (c) Decisions on record where a hearing is waived. Whenever a 
hearing is waived pursuant to Sec. 15.9(a), a decision shall be made by 
the Secretary on the record and a copy of such decision shall be given 
in writing to the applicant or recipient, and to the complainant, if 
any.
    (d) Rulings required. Each decision of a hearing officer shall set 
forth his ruling on each finding, conclusion, or exception presented, 
and shall identify the requirement or requirements imposed by or 
pursuant to the regulations in this part with which it is found that the 
applicant or recipient has failed to comply.
    (e) Decision by Secretary. The Secretary shall make any final 
decision which provides for the suspension or termination of, or the 
refusal to grant or continue Federal financial assistance, or the 
imposition of any other sanction available under the regulations in this 
part or the Act.
    (f) Content of orders. The final decision may provide for suspension 
or termination of, or refusal to grant or continue Federal financial 
assistance, in whole or in part, under the program involved, and may 
contain such terms, conditions, and other provisions as are consistent 
with and will effectuate the purposes of the Act and the regulations in 
this part, including provisions designed to assure that no Federal 
financial assistance will thereafter be extended under such program to 
the applicant or recipient determined by such decision to be in default 
in its performance of an assurance given by it pursuant to the 
regulations in this part, or to have otherwise failed to comply with the 
regulations in this part, unless and until it corrects its noncompliance 
and satisfies the Agency that it will fully comply with the regulations 
in this part.
    (g) Post termination proceedings. (1) An applicant or recipient 
adversely affected by an order issued under paragraph (f) of this 
section shall be restored to full eligibilty to receive Federal 
financial assistance if it satisfies the terms and conditions of that 
order for such eligibility or if it brings itself into compliance with 
the Act and the regulations in this part and provides reasonable 
assurance that it will fully comply therewith. An elementary or 
secondary school or school system which is unable to file an assurance 
of compliance with Sec. 15.4 (a), (b), or (d) shall be restored to full 
eligibility to receive Federal financial assistance if it complies with 
the requirements of a Sec. 15.4(e) and is otherwise in compliance with 
the Act and the regulations in this part.
    (2) Any applicant or recipient adversely affected by an order 
entered

[[Page 359]]

pursuant to paragraph (f) of this section may at any time request the 
Secretary to restore fully its eligibility to receive Federal financial 
assistance. Any such request shall be supported by information showing 
that the applicant or recipient has met the requirements of paragraph 
(g)(1) of this section. If the Secretary determines that those 
requirements have been satisfied, he shall restore such eligibility.
    (3) If the Secretary denies any such request, the applicant or 
recipient may submit a request for a hearing in writing, specifying why 
it believes the denial to have been in error. It shall thereupon be 
given an expeditious hearing, with a decision on the record, in 
accordance with rules of procedure set forth in subpart C of this part. 
The applicant or recipient will be restored to such eligibility if it 
proves at such a hearing, that it has satisfied the requirements of 
paragraph (g)(1) of this section. While proceedings under this paragraph 
are pending, the sanctions imposed by the order issued under paragraph 
(f) of this section shall remain in effect.

[29 FR 16274, Dec. 4, 1964, as amended at 35 FR 18384, Dec. 3, 1970; 38 
FR 17926, July 5, 1973]



Sec. 15.11  Judicial review.

    Action taken pursuant to section 602 of the Act is subject to 
judicial review as provided in section 603 of the Act.



Sec. 15.12  Effect on other regulations; forms and instructions.

    (a) Effect on other regulations. All regulations, orders, or like 
directions heretofore issued by any officer of the Department which 
impose requirements designed to prohibit any discrimination against 
individuals on the ground of race, color, or national origin under any 
program to which the regulations in this part apply, and which authorize 
the suspension or termination of or refusal to grant or to continue 
Federal financial assistance to any applicant for or recipient of such 
assistance under such program for failure to comply with such 
requirements, are hereby superseded to the extent that such 
discrimination is prohibited by the regulations in this part, except 
that nothing in the regulations in this part shall be deemed to relieve 
any person of any obligation assumed or imposed under any such 
superseded regulation, order, instruction, or like direction prior to 
the effective date of the regulations in this part. Nothing in these 
regulations, however, shall be deemed to supersede any of the following 
including future amendments thereof:
    (1) Executive Order 11246 and regulations issued thereunder; or
    (2) Executive Order 11063 and regulations issued thereunder or any 
other regulations or instructions insofar as they prohibit 
discrimination on the ground of race, color, or national origin in any 
program or situation to which the regulations in this part are 
inapplicable, or prohibit discrimination on any other ground.
    (b) Forms and instructions. Each Agency shall issue and promptly 
make available forms and such implementing instructions and procedures 
consistent with the regulations in this part as may be necessary. Each 
Agency in making available Federal financial assistance to any program 
or activity may utilize contractual commitments in obtaining compliance 
with the regulations in this part, including obtaining compliance by 
recipients other than the contracting recipient.
    (c) Supervision and coordination. The Secretary may from time to 
time assign to officials of other Departments or Agencies of the 
Government with the consent of such Department or Agency, 
responsibilities in connection with the effectuation of the purposes of 
title VI of the Act and the regulations in this part (other than 
responsibility for final decision as provided in Sec. 15.10) including 
the achievement of effective coordination and maximum uniformity within 
the Department and within the Executive Branch of the Government in the 
application of title VI and these regulations to similar programs and in 
similar situations. Any action taken, determination made, or requirement 
imposed by an official of another Department or Agency acting under this 
paragraph shall have the same effect as though such action had been 
taken by

[[Page 360]]

the Secretary or any Agency of this Department.

[29 FR 16274, Dec. 4, 1964, as amended at 38 FR 17927, July 5, 1973]


          APPENDIX TO SUBPART A--LIST OF USDA-ASSISTED PROGRAMS

----------------------------------------------------------------------------------------------------------------
                                   Program                                                 Authority            
----------------------------------------------------------------------------------------------------------------
                              Administered by the Agricultural Cooperative Service                              
                                                                                                                
----------------------------------------------------------------------------------------------------------------
1. Cooperative Development..................................................  Cooperative Marketing Act of 1926,
                                                                               7 U.S.C. 451 et seq. Agricultural
                                                                               Marketing Act of 1946, as        
                                                                               amended, 7 U.S.C. 1621 et seq.   
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                               Administered by the Agricultural Marketing Service                               
                                                                                                                
----------------------------------------------------------------------------------------------------------------
2. Federal-State marketing improvement program..............................  Agricultural Marketing Act of     
                                                                               1946, Section 204b, 7 U.S.C.     
                                                                               1623(b).                         
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                Administered by the Agricultural Research Service                               
                                                                                                                
----------------------------------------------------------------------------------------------------------------
3. Soil and Water Conservation..............................................  7 CFR 3015.205(b); Department of  
                                                                               Agriculture Organic Act of 1862  
                                                                               (7 U.S.C. 2201); the Agricultural
                                                                               Marketing Act of 1946, as        
                                                                               amended, (7 U.S.C. 427, 1621) and
                                                                               the Food Security Act of 1985 (7 
                                                                               U.S.C. 1281 et seq).             
4. Animal Productivity......................................................  7 CFR 3015.205(b); Department of  
                                                                               Agriculture Organic Act of 1862; 
                                                                               (7 U.S.C. 2201); the Agricultural
                                                                               Marketing Act of 1946, as        
                                                                               amended, (7 U.S.C. 427, 1621) and
                                                                               the Food Security Act of 1985 (7 
                                                                               U.S.C. 1281 et seq).             
5. Plant Productivity.......................................................  7 CFR 3015.205(b); Department of  
                                                                               Agriculture Organic Act of 1862, 
                                                                               (7 U.S.C. 2201); the Agricultural
                                                                               Marketing Act of 1946, as        
                                                                               amended, (7 U.S.C. 427, 1621) and
                                                                               the Food Security Act of 1985 (7 
                                                                               U.S.C. 1281 et seq).             
6. Commodity Conversion and Delivery........................................  7 CFR 3015.205(b); Department of  
                                                                               Agriculture Organic Act of 1862  
                                                                               (7 U.S.C. 2201); the Agricultural
                                                                               Marketing Act of 1946, as        
                                                                               amended, (7 U.S.C. 427, 1621) and
                                                                               the Food Security Act of 1985 (7 
                                                                               U.S.C. 1281 et seq).             
7. Human Nutrition..........................................................  7 CFR 3015.205(b); Department of  
                                                                               Agriculture Organic Act of 1862  
                                                                               (7 U.S.C. 2201); the Agricultural
                                                                               Marketing Act of 1946, as        
                                                                               amended, (7 U.S.C. 427, 1621) and
                                                                               the Food Security Act of 1985 (7 
                                                                               U.S.C. 1281 et seq).             
8. Integration of Agricultural Systems......................................  7 CFR 3015.205(b); Department of  
                                                                               Agriculture Organic Act of 1862  
                                                                               (7 U.S.C. 2201); the Agricultural
                                                                               Marketing Act of 1946, as        
                                                                               amended, (7 U.S.C. 427, 1621) and
                                                                               the Food Security Act of 1985 (7 
                                                                               U.S.C. 1281 et seq).             
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                     Administered by the Agricultural Stabilization and Conservation Service                    
                                                                                                                
----------------------------------------------------------------------------------------------------------------
9. Price support programs operating through producer associations,            Agricultural Adjustment Act of    
 cooperatives and other recipients in which the recipient is required to       1938, 7 U.S.C. 1301-1393; Pub. L.
 furnish specified benefits to producers (e.g. tobacco, peanuts, cotton,       73-430; Commodity Credit         
 rice, honey, dry edible beans, tung oil, naval stores and soybeans price      Corporation Charter Act, 15      
 support programs).                                                            U.S.C. 714 et. seq.; Agricultural
                                                                               Act of 1949, as amended; 7 U.S.C.
                                                                               1421, et seq.; Pub. L. 81-439, as
                                                                               amended; Agriculture and Food Act
                                                                               of 1961; Pub. L. 97-98; Dairy and
                                                                               Tobacco Adjustment Act of 1983;  
                                                                               Pub. L. 98-180; Agricultural     
                                                                               Programs Adjustment Act of 1984; 
                                                                               Pub. L. 98-258; Food Security Act
                                                                               of 1985; Pub. L. 99-198.         
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                               Administered by Cooperative State Research Service                               
                                                                                                                
----------------------------------------------------------------------------------------------------------------
10. 1890 Research Facilities................................................  Sec. 1433 of the National         
                                                                               Agricultural Research, Extension 
                                                                               and Teaching Policy Act of 1977, 
                                                                               Pub. L. 95-113, as amended; 7    
                                                                               U.S.C. 3195.                     
11. Payments to 1890 Land-Grant Colleges and Tuskegee Institute.............  Sec. 1445 of the National         
                                                                               Agricultural Research, Extension 
                                                                               and Teaching Policy Act of 1977; 
                                                                               Pub. L. 85-113, as amended; 7    
                                                                               U.S.C. 3222.                     

[[Page 361]]

                                                                                                                
12. Cooperative Forestry Research (McIntire-Stennis Act)....................  Cooperative Forestry Research Act 
                                                                               of October 10, 1962; Pub. L. 87- 
                                                                               788; 16 U.S.C. 582a-582q-7.      
13. Payments to Agricultural Experiment Stations under Hatch Act............  Hatch Act of 1887, as amended; 7  
                                                                               U.S.C. 361a-361i.                
14. Grants for Agricultural Research Competitive Research Grants............  Sec. 2(b) of Pub. L. 89-106; 7    
                                                                               U.S.C. 450i(b), as amended.      
15. Grants for Agricultural Research, Special Research Grants...............  Sec. 2(c) of Pub. L. 89-106; 7    
                                                                               U.S.C. 450i(c), as amended.      
16. Animal Health and Disease Research......................................  National Agricultural Research,   
                                                                               Extension and Teaching Policy Act
                                                                               of 1977, Sec. 1433, Pub. L. 95-  
                                                                               113, as amended; 7 U.S.C. 3195.  
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                        Administered by Extension Service                                       
                                                                                                                
----------------------------------------------------------------------------------------------------------------
17. Home Economics..........................................................  Smith-Lever Act, as amended; 7    
                                                                               U.S.C. 341-349; District of      
                                                                               Columbia Post-secondary Education
                                                                               Reorganization Act, D.C. Code,   
                                                                               Sec. 31-1518; Title V, Rural     
                                                                               Development Act of 1972, as      
                                                                               amended; 7 U.S.C. 2661, et. seq. 
                                                                               Sec. 14, Title 14, National      
                                                                               Agricultural Research, Extension 
                                                                               and Teaching Policy Act of 1977; 
                                                                               Pub. L. 95-113, as amended.      
18. 4-H Youth Development...................................................  Smith-Lever Act, as amended; 7    
                                                                               U.S.C. 341-349; District of      
                                                                               Columbia Public Postsecondary    
                                                                               Education Reorganization Act,    
                                                                               D.C. Code, Sec. 31-1518; Title   
                                                                               VI, Rural Development Act of     
                                                                               1972, as amended; 7 U.S.C. 2661, 
                                                                               et seq.; Sections 1425 and 1444, 
                                                                               National Agricultural Research,  
                                                                               Extension and Teaching Policy Act
                                                                               of 1977; Pub. L. 95-113, as      
                                                                               amended; 7 U.S.C. 3221, 3175;    
                                                                               Pub. L. 96-374, Sec. 1361(c); 7  
                                                                               U.S.C. 301 note; Pub. L. 97-98,  
                                                                               Agriculture and Food Act of 1981,
                                                                               sec. 1401.                       
19. Agricultural and Natural Resources......................................  Smith-Lever Act, as amended; 7    
                                                                               U.S.C. 341-349; District of      
                                                                               Columbia Public Postsecondary    
                                                                               Education Reorganization Act,    
                                                                               D.C. Code, Sec. 31-1518; Title V,
                                                                               Rural Development Act of 1972, as
                                                                               amended; 7 U.S.C. 2661, et seq.; 
                                                                               Sec. 14, National Agricultural   
                                                                               Research, Extension and Teaching 
                                                                               Policy Act of 1977; Pub. L. 95-  
                                                                               113, as amended; 7 U.S.C. 3101,  
                                                                               et seq.                          
20. Community Resource Development..........................................  Smith-Lever Act, as amended; 7    
                                                                               U.S.C. 341-349; District of      
                                                                               Columbia Public Postsecondary    
                                                                               Reorganization Act, D.C. Code 31-
                                                                               1518; Title V, Rural Development 
                                                                               Act of 1972, as amended; 7 U.S.C.
                                                                               2661, et. seq.; National         
                                                                               Agricultural Research, Extension 
                                                                               and Teaching Policy Act of 1977; 
                                                                               Pub. L. 95-113, as amended; 7    
                                                                               U.S.C. 3101, et seq; Renewable   
                                                                               Resources Extension Act of 1978; 
                                                                               16 U.S.C. 1671-1676.             
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                               Administered by Federal Crop Insurance Corporation                               
                                                                                                                
----------------------------------------------------------------------------------------------------------------
21. Crop Insurance..........................................................  Federal Crop Insurance Act, as    
                                                                               amended; 7 U.S.C. 1501-1520;     
                                                                               Title V of the Agricultural      
                                                                               Adjustment Act of 1938; 52 Stat. 
                                                                               31 and Federal Crop Insurance Act
                                                                               of 1980; Pub. L. 96-385 (Sept.   
                                                                               26, 1980); 94 Stat. 1312-1319.   
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                   Administered by Farmers Home Administration                                  
                                                                                                                
----------------------------------------------------------------------------------------------------------------
22. Farm Ownership Loans to install or improve recreational facilities or     Section 302 of the Consolidated   
 other nonfarm enterprises.                                                    Farm and Rural Development Act,  
                                                                               as amended; 7 U.S.C. 1923.       
23. Farm Operating Loans to install or improve recreational facilities or     Sec. 312 of the Consolidated Farm 
 other nonfarm enterprises.                                                    and Rural Development Act, as    
                                                                               amended; 7 U.S.C. 1942.          
24. Community Facility Loans................................................  Sec. 306 of the Consolidated Farm 
                                                                               and Rural Development Act, as    
                                                                               amended; 7 U.S.C. 1926.          
25. Rural Rental Housing and related facilities for elderly persons and       Sec. 515, Title V, Housing Act of 
 families of low income.                                                       1949, as amended; 42 U.S.C. 1485.
26. Rural Cooperative Housing...............................................  Sec. 515, Title V, Housing Act of 
                                                                               1949, as amended; 42 U.S.C. 1485.
27. Rural Housing Site Loans................................................  Sec. 524, Title V, Housing Act of 
                                                                               1949, as amended; 42 U.S.C.      
                                                                               1490d.                           
28. Farm and Labor Housing Loans............................................  Sec. 514, Title V, Housing Act of 
                                                                               1949, as amended; 42 U.S.C. 1484.
29. Farm Labor Housing Grants...............................................  Sec. 516, Title V, Housing Act of 
                                                                               1949, as amended; 42 U.S.C. 1486.
30. Mutual self-help housing grants. (Technical assistance grants)..........  Sec. 523, Title V, Housing Act of 
                                                                               1949, as amended; 42 U.S.C.      
                                                                               1490c.                           

[[Page 362]]

                                                                                                                
31. Technical and supervisory assistance grants.............................  Sec. 525, Title V, Housing Act of 
                                                                               1949, as amended; 42 U.S.C.      
                                                                               1490e.                           
32. Individual Recreation Loans.............................................  Sec. 304 of the Consolidated Farm 
                                                                               and Rural Development Act, as    
                                                                               amended; 7 U.S.C. 1924.          
33. Recreation Association Loans............................................  Sec. 306 of the Consolidated Farm 
                                                                               and Rural Development Act, as    
                                                                               amended; 7 U.S.C. 1926.          
34. Private enterprise grants...............................................  Sec. 310(B)(c) of the Consolidated
                                                                               Farm and Rural Development Act,  
                                                                               as amended; 7 U.S.C. 1932(c).    
35. Indian Tribal Land Acquisition Loans....................................  Pub. L. 91-229, approved April 11,
                                                                               1970; 25 U.S.C. 488.             
36. Grazing Association Loans...............................................  Sec. 306 of the Consolidated Farm 
                                                                               and Rural Development Act, as    
                                                                               amended; 7 U.S.C. 1926.          
37. Irrigation and Drainage Associations....................................  Sec. 306 of the Consolidated Farm 
                                                                               and Rural Development Act, as    
                                                                               amended; 7 U.S.C. 1926.          
38. Area development assistance planning grant program......................  Sec. 306(a)(11) of the            
                                                                               Consolidated Farm and Rural      
                                                                               Development Act, as amended; 7   
                                                                               U.S.C. 1926(a)(11).              
39. Resource conservation and development loans.............................  Sec. 32(e) of Title III, the      
                                                                               Bankhead-Jones Farm Tenant Act; 7
                                                                               U.S.C. 1011(e).                  
40. Rural Industrial Loan Program...........................................  Sec. 310B of the Consolidated Farm
                                                                               and Rural Development Act, as    
                                                                               amended; 7 U.S.C. 1932.          
41. Rural renewal and resource conservation development, land conservation    Sec. 31-35, Title III, Bankhead-  
 and land utilization.                                                         Jones Farm Tenant Act; 7 U.S.C.  
                                                                               1010-1013a.                      
42. Soil and water conservation, recreational facilities, uses; pollution     Sec. 304 of the Consolidated Farm 
 abatement facilities loans.                                                   and Rural Development Act, as    
                                                                               amended; 7 U.S.C. 1924.          
43. Watershed protection and flood prevention program.......................  Sec. 1-12 of the Watershed        
                                                                               Protection and Flood Prevention  
                                                                               Act, as amended; 16 U.S.C. 1001- 
                                                                               1008.                            
44. Water and Waste Facility Loans and Grants...............................  Sec. 306 of the Consolidated Farm 
                                                                               and Rural Development Act, as    
                                                                               amended; 7 U.S.C. 1926.          
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                   Administered by Food and Nutrition Service                                   
                                                                                                                
----------------------------------------------------------------------------------------------------------------
45. Food Stamp Program......................................................  The Food Stamp Act of 1977, as    
                                                                               amended; 7 U.S.C. 2011-2029.     
46. Nutrition Assistance Program for Puerto Rico. This is the Block Grant     The Food Stamp Act of 1977, as    
 signoff of the Food Stamp Program for Puerto Rico.                            amended; Sec. 19, 7 U.S.C. 2028. 
47. Food Distribution (Food Donation Program). (Direct Distribution Program)  Sec. 32, Pub. L. 74-320, 49 Stat. 
                                                                               744 (7 U.S.C. 612c); Pub. L. 75- 
                                                                               165. 50 Stat. 323 (15 U.S.C.     
                                                                               713c); secs. 6, 9, 60 Stat. 231, 
                                                                               233, Pub. L. 79-396 (42 U.S.C.   
                                                                               1755, 1758); sec. 416, Pub. L. 81-
                                                                               439, 63 Stat. 1058 (7 U.S.C.     
                                                                               1431); sec. 402, Pub. L. 91-665, 
                                                                               68 Stat. 843 (22 U.S.C. 1922);   
                                                                               sec. 210, Pub. L. 84-540, 70     
                                                                               Stat. 202 (7 U.S.C. 1859); sec.  
                                                                               9, Pub. L. 85-931, 72 Stat. 1792 
                                                                               (7 U.S.C. 1431b); Pub. L. 86-756,
                                                                               74 Stat. 899 (7 U.S.C. 1431      
                                                                               note); sec. 709, Pub. L. 89-321, 
                                                                               79 Stat. 1212 (7 U.S.C. 1446a-1);
                                                                               sec. 3, Pub. L. 90-302, 82 Stat. 
                                                                               117 (42 U.S.C. 1761); secs. 409, 
                                                                               410, Pub. L. 93-288, 88 Stat. 157
                                                                               (42 U.S.C. 5179, 5189); sec. 2,  
                                                                               Pub. L. 93-326, 88 Stat. 286 (42 
                                                                               U.S.C. 1762a); sec. 16, Pub. L.  
                                                                               94-105, 89 Stat. 522 (42 U.S.C.  
                                                                               1766); sec. 1304(a), Pub. L. 95- 
                                                                               113, 91 Stat. 980 (7 U.S.C. 612  
                                                                               note); sec. 311, Pub. L. 95-478, 
                                                                               92 Stat. 1533 (42 U.S.C. 3030a); 
                                                                               sec. 10, Pub. L. 95-627, 92 Stat.
                                                                               3623 (42 U.S.C. 1760); Pub. L. 98-
                                                                               8, 97 Stat. 35 (7 U.S.C. 612c    
                                                                               note); (5 U.S.C. 301).           
48. Food Distribution Program Commodities on Indian Reservations............  The Food Stamp Act of 1977, as    
                                                                               amended, Section 4(b), 7 U.S.C.  
                                                                               2013(b).                         
49. National School Lunch Program...........................................  National School Lunch Act, as     
                                                                               amended; 42 U.S.C. 1751-1760.    
50. Special Milk Program for Children (School Milk Program).................  Child Nutrition Act of 1966, Sec. 
                                                                               3, as amended, 42 U.S.C. 1772.   
51. School Breakfast Program................................................  Child Nutrition Act of 1966, Sec. 
                                                                               4, as amended; 42 U.S.C. 1773.   
52. Summer Food Service Program for Children................................  National School Lunch Act, Sec.   
                                                                               13, as amended; 42 U.S.C. 1761.  
53. Child Care Food Program.................................................  National School Lunch Act, Sec.   
                                                                               17, as amended; 42 U.S.C. 1766.  
54. Nutrition Education and Training Program................................  Child Nutrition Act of 1966, Sec. 
                                                                               19, 42 U.S.C. 1788.              
55. Special Supplemental Food Program for Women, Infants and Children.......  Child Nutrition Act of 1966, Sec. 
                                                                               17, 42 U.S.C. 1786.              
56. Commodity Supplemental Food Program.....................................  Agriculture and Consumer          
                                                                               Protection Act of 1973, as       
                                                                               amended; 7 U.S.C. 612c note.     
57. Temporary Emergency Food Assistance Program.............................  Temporary Emergency Food          
                                                                               Assistance Act of 1983, as       
                                                                               amended; 7 U.S.C. 612c note.     
58. State Administrative Expenses for Child Nutrition.......................  Child Nutrition Act of 1966, Sec. 
                                                                               7, as amended; 42 U.S.C. 1776.   

[[Page 363]]

                                                                                                                
59. Nutrition Assistance Program for the Commonwealth of the North Mariana    Trust Territory of the Pacific    
 Islands. (This is the Block Grant spin-off of the Food Stamp Program for      Island, 48 U.S.C. 1681 note.     
 CNMI).                                                                                                         
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                         Administered by Forest Service                                         
                                                                                                                
----------------------------------------------------------------------------------------------------------------
60. Permits for use of National Forests and National Grasslands by other      Act of June 4, 1897, as amended,  
 than individuals at a nominal or no charge.                                   16 U.S.C. 551; Sec. 501 of the   
                                                                               Federal Land Policy Management   
                                                                               Act of 1976, 43 U.S.C. 1761; Term
                                                                               Permit Act of March 4, 1915, as  
                                                                               amended, 16 U.S.C. 4971, Secs. 3 
                                                                               and 4 of the American Antiquities
                                                                               Act of June 8, 1906, 16 U.S.C.   
                                                                               432; Sec. 32 of the Bankhead-    
                                                                               Jones Farm Tenant Act, as        
                                                                               amended, 7 U.S.C. 1011.          
61. Youth Conservation Corps................................................  Act of August 13, 1970, as        
                                                                               amended, 16 U.S.C. 1701-1706.    
                                                                               Note: This is a Federally        
                                                                               financed and conducted program on
                                                                               National Forest land providing   
                                                                               summer employment to teen-age    
                                                                               youth doing conservation work    
                                                                               while learning about their       
                                                                               natural environment and heritage.
                                                                               Recruitment of recipient youth is
                                                                               without regard to economic,      
                                                                               social or racial classification. 
                                                                               Policy requires that random      
                                                                               selection from the qualified     
                                                                               applicant pool be made in a      
                                                                               public forum.                    
62. Job Corps...............................................................  29 U.S.C. 1691-1701. Note: This is
                                                                               a Federally financed and         
                                                                               conducted program providing      
                                                                               education and skills training to 
                                                                               young men and women. The U.S.    
                                                                               Department of Labor is entirely  
                                                                               responsible for recruiting of    
                                                                               recipient youth.                 
63. Permits for disposal of common varieties of mineral material from lands   Secs. 1-4 of the Act of July 31,  
 under the Forest Service jurisdiction for use by other individuals at a       1947, as amended, 30 U.S.C. 601- 
 nominal or no charge.                                                         603, 611.                        
64. Use of Federal land for airports........................................  Airport and Airway Improvement Act
                                                                               of 1982, as amended, 49 U.S.C.   
                                                                               2202, 2215. National Forest lands
                                                                               are exempt, Sec. 2215(c).        
65. Conveyance of land to States or political subdivisions for widening       Act of October 13, 1964, 78 Stat. 
 highways, streets and alleys.                                                 1089. Forest Road and Trail Act, 
                                                                               codified at 16 U.S.C. 532-538.   
66. Payment of 25 percent of National Forest receipts to States for schools   Act of May 23, 1908, as amended,  
 and roads.                                                                    16 U.S.C. 500.                   
67. Payment to Minnesota from National Forest receipts of a sum based on a    Sec. 5 of the Act of June 22,     
 formula.                                                                      1948, as amended, 16 U.S.C. 577 g-
                                                                               l.                               
68. Payment of 25 percent of net revenues from Title III, Bankhead-Jones      Sec. 33 of the Bankhead-Jones Farm
 Farm Tenant Act lands to Counties for school and road purposes.               Tenant Act, as amended, 7 U.S.C. 
                                                                               1012.                            
69. Cooperative action to protect, develop, manage and utilize forest         Cooperative Forestry Assistance   
 resources on State and private lands.                                         Act of 1976, 16 U.S.C. 2101-2111.
70. Advance of funds for cooperative research...............................  Sec. 20 of the Granger-Thye Act of
                                                                               April 24, 1950, 16 U.S.C. 581-1. 
71. Grants for support of scientific research...............................  Forest and Rangeland Renewable    
                                                                               Resources Planning Act of 1974,  
                                                                               as amended, 16 U.S.C. 1600 et    
                                                                               seq.                             
72. Research Cooperation....................................................  Forest and Rangeland Renewable    
                                                                               Resources Research Planning Act  
                                                                               of 1974, as amended, 16 U.S.C.   
73. Grants to Maine, Vermont and New Hampshire for the purpose of assisting   Older American Act of 1965, as    
 economically disadvantaged citizens over 55 years of age.                     amended, 42 U.S.C. 3056.         
74. Senior Community Service Employment, develop, manage and utilize forest   Older American Act of 1965, as    
 resources on State and private lands.                                         amended, 42 U.S.C. 3056.         
75. Cooperative Law Enforcement.............................................  16 U.S.C. 551a and 553.           
76. Forest Utilization and Marketing........................................  Cooperative Forestry Assistance   
                                                                               Act of 1978, Pub. L. 95-313, 16  
                                                                               U.S.C. 1606, 2101-2111.          
77. Fire prevention and suppression.........................................  Cooperative Forestry Assistance   
                                                                               Act of 1978, Pub. L. 95-313, Sec.
                                                                               7, 16 U.S.C. 2106.               
78. Assistance to States for tree planting..................................  Cooperative Forestry Assistance   
                                                                               Act of 1978, Pub. L. 95-313,     
                                                                               Secs. 3, 6, 16 U.S.C. 2102, 2105.
79. Technical assistance forest management..................................  Cooperative Forestry Assistance   
                                                                               Act of 1978, Pub. L. 95-313, Sec.
                                                                               8, 16 U.S.C. 2107.               
80. Extramural Research (Cooperative Agreements and Grants).................  Range Renewable Resources Act of  
                                                                               1978; Rangeland and Latest       
                                                                               Renewable Resources Research Act;
                                                                               16 U.S.C. 1641-1647.             
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                               Administered by Food Safety and Inspection Service                               
                                                                                                                
----------------------------------------------------------------------------------------------------------------
81. Federal-State Cooperative Agreements and Talmadge-Aiken Agreements......  Federal Meat Inspection Act; 21   
                                                                               U.S.C. 601 et seq. Talmadge-Aiken
                                                                               Act; 7 U.S.C. 450. Poultry       
                                                                               Products Inspection Act; 21      
                                                                               U.S.C. 451 et seq.               
                                                                                                                
----------------------------------------------------------------------------------------------------------------

[[Page 364]]

                                                                                                                
                       Administered by Office of International Cooperation and Development                      
                                                                                                                
----------------------------------------------------------------------------------------------------------------
82. Technical Assistance....................................................  7 U.S.C. 3291; 22 U.S.C. 2357; 22 
                                                                               U.S.C. 2392.                     
83. International Training..................................................  7 U.S.C. 3291; 22 U.S.C. 2357; 22 
                                                                               U.S.C. 2392.                     
84. Scientific and Technical Exchanges......................................  7 U.S.C. 3291.                    
85. International Research..................................................  7 U.S.C. 3291.                    
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                    Administered by Soil Conservation Service                                   
                                                                                                                
----------------------------------------------------------------------------------------------------------------
86. Conservation Technical Assistance to Landusers..........................  Sec. 1-6 and 17 of the Soil       
                                                                               Conservation and Domestic        
                                                                               Allotment Act, 16 U.S.C. 590a-   
                                                                               590f, 590g.                      
87. Plant Materials Conservation............................................  Soil Conservation Act of 1935,    
                                                                               Pub. L. 74-46; 49 Stat. 163, 16  
                                                                               U.S.C. 590(a-f).                 
88. Technical and financial assistance in Watershed Protection and flood      Watershed Protection and Flood    
 prevention.                                                                   Protection Act, as amended, 16   
                                                                               U.S.C. 1001-1005, 1007-1008;     
                                                                               Flood Control Act, as amended and
                                                                               supplemented; 33 U.S.C. 701; 16  
                                                                               U.S.C. 1606(a) and Sec. 403-405  
                                                                               of the Agriculture Credit Act of 
                                                                               1978; 16 U.S.C. 2203-2205. Flood 
                                                                               Prevention: Pub. L. 78-534; 58   
                                                                               Stat. 905; 33 U.S.C. 701(b)(1);  
                                                                               Pub. L. 81-516.                  
89. Technical and financial assistance in Watershed Protection and flood      Emergency Operation (216); 68     
 prevention.                                                                   Stat. 184; 33 U.S.C. 701(b)(1).  
                                                                               Watershed Operation: Pub. L. 83- 
                                                                               566; 68 Stat. 666:16 U.S.C. 1001 
                                                                               et. seq.                         
90. Soil Survey.............................................................  Sec. 1-6 and 17 of the Soil       
                                                                               Conservation and Domestic        
                                                                               Allotment Act, as amended, 16    
                                                                               U.S.C. 590a-590f, 590g.          
91. Rural Abandoned Mine Program............................................  Surface Mining Control and        
                                                                               Reclamation Act of 1977, Sec.    
                                                                               406; Pub. L. 95-87, 30 U.S.C.    
                                                                               1236, 91 Stat. 460.              
92. Resource Conservation and Development...................................  Soil Conservation Act of 1935;    
                                                                               Pub. L. 74-46; Bankhead-Jones    
                                                                               Farm Tenant Act; Pub. L. 75-210, 
                                                                               as amended, Pub. L. 89-796; Pub. 
                                                                               L. 87-703; Pub. L. 91-343; Pub.  
                                                                               L. 92-419; Pub. L. 97-98; 95     
                                                                               Stat. 1213; 16 U.S.C. 590a-590f, 
                                                                               590g.                            
93. Great Plains Conservation...............................................  Soil Conservation and Domestic    
                                                                               Allotment Act, Pub. L. 74-46, as 
                                                                               amended by the Great Plains Act  
                                                                               of August 7, 1956; Pub. L. 84-   
                                                                               1021, Pub. L. 86-793 approved    
                                                                               September 14, 1980. Pub. L. 91-  
                                                                               118 approved November 1, 1969;   
                                                                               Pub. L. 96-263 approved June 6,  
                                                                               1980; 16 U.S.C. 590a-590f, 590g. 
----------------------------------------------------------------------------------------------------------------

[53 FR 48506, Dec. 1, 1988]



    Subpart B--Nondiscrimination--Direct USDA Programs and Activities

    Authority: Sec. 602, 78 Stat. 252; 5 U.S.C. 301; 42 U.S.C. 2000d-1.



Sec. 15.50  Applicability.

    The regulations in this subpart complement Subpart A of this part 
and cover those programs and activities of the Department not subject 
thereto in which the Department or any agency thereof makes available 
any benefit directly to persons under such programs and activities.

[29 FR 16966, Dec. 11, 1964]



Sec. 15.51  Discrimination prohibited.

    (a) No agency, officer, or employee of the United States Department 
of Agriculture, shall exclude from participation in, deny the benefits 
of, or subject to discrimination any person in the United States on the 
ground of race, color, religion, sex, age, handicap, or national origin 
under any program or activity administered by such agency, officer, or 
employee.
    (b) No agency, officer, or employee of the Department shall on the 
ground of race, color, religion, sex, handicap, age, or national origin 
deny to any person in the United States: (1) Equal access to buildings, 
facilities, structures, or lands under the control of any agency in this 
Department, equal opportunity for employment, for participation in 
meetings, demonstrations, training activities or programs, fairs, 
awards, field days, encampments, for receipt of information disseminated 
by publication, news, radio, and other media, for obtaining contracts, 
grants, loans, or other financial assistance or for selection to assist 
in the administration of programs or activities of this Department.

[47 FR 25458, June 11, 1982]

[[Page 365]]



Sec. 15.52  Complaints.

    (a) Any person who believes himself or any specific class of 
individuals to be subjected to discrimination prohibited by this subpart 
may by himself or by an authorized representative file a written 
complaint based on the ground of such discrimination. No particular form 
of complaint shall be required. The complaint must be filed within 180 
days from the date the person knew or should have known of the alleged 
discrimination unless the Director, Office of Advocacy and Enterprise, 
extends the time for filing for good cause. Any person who complains of 
discrimination under this subpart shall be advised of his rights to file 
a complaint as herein provided. Each agency of the Department dealing 
with the public shall post in conspicuous places in its offices and 
other facilities notice of the right to file a complaint under this 
subpart.
    (b) All complaints under this subpart must be filed with the Office 
of Advocacy and Enterprise, which will investigate the complaints. The 
Director, Office of Advocacy and Enterprise, will make determinations as 
to the merits of complaints under this subpart and as to corrective 
actions required to resolve the complaints.

[54 FR 31164, July 27, 1989]


       APPENDIX TO SUBPART B--USDA DIRECT PROGRAMS AND ACTIVITIES

----------------------------------------------------------------------------------------------------------------
                                   Program                                                 Authority            
----------------------------------------------------------------------------------------------------------------
                               Administered by the Agricultural Marketing Service                               
                                                                                                                
----------------------------------------------------------------------------------------------------------------
1. Agricultural Fair Practice Act...........................................  7 U.S.C. 2301-2306.               
2. Commodity Credit Corporation's Dairy Collection Program..................  Omnibus Budget Reconciliation Act 
                                                                               of 1982; Dairy and Tobacco       
                                                                               Adjustment Act of 1983 (7 U.S.C. 
                                                                               4501-4513); Food Security        
                                                                               Improvements Act of 1986.        
3. Commodity Purchases......................................................  Section 32 (7 U.S.C. 612c); Sec.  
                                                                               6a, 6c and 14 of the National    
                                                                               School Lunch Act; Sec. 4(a) of   
                                                                               the Agriculture and Consumer     
                                                                               Protection Act of 1973; 7 U.S.C. 
                                                                               612(c); Older Americans Act (42  
                                                                               U.S.C. 1751, 1755, 1758 and 1761.
4. Commodity Research and Promotion.........................................  Agricultural Marketing Act of 1946
                                                                               (7 U.S.C. 1621 Act); (7 U.S.C.   
                                                                               2101-2119); Egg Research and     
                                                                               Consumer Information Act (7      
                                                                               U.S.C. 2701-2718); Export Apple  
                                                                               and Pear Act (7 U.S.C. 581-590); 
                                                                               Export Grape and Plum Act (7     
                                                                               U.S.C. 591-599); Federal Seed Act
                                                                               (7 U.S.C. 1551-1611); National   
                                                                               Wool Act of 1954, as amended; (7 
                                                                               U.S.C. 1781-1787); Plant Variety 
                                                                               Protection Act (7 U.S.C. 2321-   
                                                                               2331, 2351-2357, 2371-2372, 2401-
                                                                               2404, 2421-2417, 2441-2442, 2461-
                                                                               2463, 2481-2486, 2501-2504, 2531-
                                                                               2532, 2541-2545, 2561-2569, 2581-
                                                                               2583); Floral Research, Education
                                                                               and Consumer Information Act of  
                                                                               1981 (7 U.S.C. 4301-4319); Wheat 
                                                                               and Wheat Foods Research and     
                                                                               Nutrition Education Act of 1977  
                                                                               (7 U.S.C. 3401-3417); Cotton     
                                                                               Research and Promotion Act of    
                                                                               1966, as amended, (7 U.S.C. 2101-
                                                                               2119); Dairy and Tobacco         
                                                                               Adjustment Act of 1983 (7 U.S.C. 
                                                                               4501-4513); Agricultural         
                                                                               Marketing Act of 1946 (7 U.S.C.  
                                                                               1621-1627); Agricultural Fair    
                                                                               Practices Act (7 U.S.C. 2301-    
                                                                               2306); Capper Volstead Act (7    
                                                                               U.S.C. 291-292); Potato Research 
                                                                               and Promotion Act of 1971 (7     
                                                                               U.S.C. 2611-2627); Beef Promotion
                                                                               and Research Act of 1985; the    
                                                                               Pork Promotion Research and      
                                                                               Consumer Information Act of 1985.
5. Federal Seed Act Administration..........................................  Federal Seed Act (7 U.S.C. 1551-  
                                                                               1575 and 1591-1611); Agricultural
                                                                               Marketing Act of 1946 (7 U.S.C.  
                                                                               1621-1627).                      
6. Governmentwide Food Quality Assurance....................................  Federal Property and              
                                                                               Administrative Services Act of   
                                                                               1949 (63 Stat. 377).             

[[Page 366]]

                                                                                                                
7. Inspection Grading and Standardization...................................  Agricultural Marketing Act of 1946
                                                                               (7 U.S.C. 1621-1627); Cotton     
                                                                               Statistics and Estimates Act (7  
                                                                               U.S.C. 471-476); U.S. Cotton     
                                                                               Futures Act (7 U.S.C. 15b); U.S. 
                                                                               Cotton Standards Act (7 U.S.C. 51-
                                                                               65); Naval Stores Act (7 U.S.C.  
                                                                               91-99); Tobacco Inspection Act (7
                                                                               U.S.C. 511-511q); Wool Standards 
                                                                               Act (7 U.S.C. 415b-d); Egg       
                                                                               Products Inspection Act 1970,    
                                                                               Pub. L. 91-597; 21 U.S.C. 1031-  
                                                                               1056; Omnibus Budget             
                                                                               Reconciliation Act of 1981, Pub. 
                                                                               L. 97-35; Dairy and Tobacco      
                                                                               Adjustment Act of 1983 (7 U.S.C. 
                                                                               4501-4513); Tobacco Statistics of
                                                                               1929 (7 U.S.C. 501-508); Tobacco 
                                                                               Inspection Act of 1983 (7 U.S.C. 
                                                                               511r).                           
8. Market Assistance and Analysis...........................................  Agricultural Marketing Act of 1946
                                                                               (7 U.S.C. 1621-1627); Export     
                                                                               Apple and Pear Act of 1933 (7    
                                                                               U.S.C. 581-590); Export Grape and
                                                                               Plum Act of 1960 (7 U.S.C. 591-  
                                                                               599); Tobacco Seed and Plant     
                                                                               Exportation Act (7 U.S.C. 516-   
                                                                               517).                            
9. Marketing Agreements and Orders..........................................  Agricultural Marketing Agreement  
                                                                               Act of 1937, as amended; 7 U.S.C.
                                                                               601, 602, 608a-e, 612, 614, 624, 
                                                                               671-674; Dairy and Tobacco       
                                                                               Adjustment Act of 1983 (7 U.S.C. 
                                                                               4501-4513).                      
10. Marketing Research......................................................  Agricultural Marketing Act of     
                                                                               1946; Food and Agriculture Act of
                                                                               1977.                            
11. Market News.............................................................  Cotton Statistics and Estimates   
                                                                               Act (7 U.S.C. 471-473, 473b, 475-
                                                                               476; Tobacco Inspection Act of   
                                                                               1935 (7 U.S.C. 511-511a);        
                                                                               Agricultural Marketing Act of    
                                                                               1946 (7 U.S.C. 1621-1627);       
                                                                               Tobacco Statistics Act (7 U.S.C. 
                                                                               501-508); Naval Stores Act (7    
                                                                               U.S.C. 91-99); U.S. Cotton       
                                                                               Futures Act (7 U.S.C. 15b);      
                                                                               Peanut Statistics (7 U.S.C. 951- 
                                                                               957); Turpentine and Rosin       
                                                                               Statistics (7 U.S.C. 2248);      
                                                                               Agriculture and Food Act of 1981 
                                                                               (7 U.S.C. 2242A).                
12. Perishable Agricultural Commodities Act.................................  Perishable Agricultural           
                                                                               Commodities Act of 1930, as      
                                                                               amended (7 U.S.C. 499a-499s);    
                                                                               Produce Agency Act (7 U.S.C. 491-
                                                                               497).                            
13. Plant Variety Protection................................................  U.S. Plant Variety Protection Act 
                                                                               of 1970, 84 Stat. 1542, 7 U.S.C. 
                                                                               2321 et seq.                     
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                           Administered by Animal and Plant Health Inspection Service                           
                                                                                                                
----------------------------------------------------------------------------------------------------------------
14. Animal and Animal Products (Veterinary Services)........................  7 U.S.C. 429, 430, 450, 1622,     
                                                                               1624, 2131-2147, 2149-2155, 3374,
                                                                               2260, 3801-3812, 15 U.S.C. 1821- 
                                                                               1831; 19 U.S.C. 1202, Sch. 1,    
                                                                               part 1, item 100.01 and 1306; 21 
                                                                               U.S.C. 102-135; 151-158, 612-614 
                                                                               and 618; 45 U.S.C. 71-74; 46     
                                                                               U.S.C. 3901-3902; 49 U.S.C. 1741;
                                                                               50 U.S.C. App. 2061 et seq.;     
                                                                               Executive Order 11987.           
15. Plant and Plant Products. Inspection Programs (Plant Protection and       7 U.S.C. 147a, 147b, 148, 148a-   
 Quarantine).                                                                  148f, 149, 150-150g, 150aa-150,  
                                                                               151-164-a, 166, 167, 281-286,    
                                                                               450, 1581-1612, 1651-1656, 2260, 
                                                                               2801-2813; 49 U.S.C. 1741; 50    
                                                                               U.S.C. 2061 et. seq.; 2251 et.   
                                                                               seq. 87 Stat. 884; Executive     
                                                                               Order 11987.                     
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                    Administered by the Agricultural Stabilization and Conservation Service                     
                                                                                                                
----------------------------------------------------------------------------------------------------------------
16. Agricultural Conservation Program.......................................  The Soil Conservation and Domestic
                                                                               Allotment Act of 1936, Secs. 7 to
                                                                               15, 16(a), 16(f) and 17, as      
                                                                               amended and supplemented (16     
                                                                               U.S.C. 590g-590o, 590p(a),       
                                                                               590(q); secs. 1001-1008 and 1010 
                                                                               of the Agricultural Act of 1970, 
                                                                               as added by the Agriculture and  
                                                                               Consumer Protection Act of 1973  
                                                                               (16 U.S.C. 1501-1508 and 1510),  
                                                                               Sec. 1501 of the Food and        
                                                                               Agriculture Act of 1977; Sec. 259
                                                                               of the Energy Security Act of    
                                                                               1980 (Pub. L. 96-294).           
17. Conservation Reserve Program............................................  Food Security Act of 1985.        
18. Cotton Program..........................................................  Commodity Credit Corporation      
                                                                               Charter Act, Pub. L. 80-89;      
                                                                               Agricultural Act of 1949, as     
                                                                               amended, 7 U.S.C. 1444; Extra    
                                                                               Long Staple Cotton Act of 1983,  
                                                                               Pub. L. 98-88; Food Security Act 
                                                                               of 1985, Pub. L. 99-198.         
19. Dairy Indemnity Payment Program.........................................  Pub. L. 90-484, as amended; the   
                                                                               Agricultural Act of 1970, Title  
                                                                               II, Sec. 204, 7 U.S.C. 450j-450l.
                                                                               Pub. L. 91-524; Agriculture and  
                                                                               Consumer Protection Act of 1973; 
                                                                               Pub. L. 93-86; Food and          
                                                                               Agriculture Act of 1977; Pub. L. 
                                                                               95-113; Food and Agriculture Act 
                                                                               of 1981, Pub. L. 97-98.          
20. Dairy Termination Program...............................................  Agricultural Act of 1949, as      
                                                                               amended by the Food Security Act 
                                                                               of 1985.                         
21. Emergency Conservation Program..........................................  Agricultural Credit Act of 1978,  
                                                                               Title IV, Pub. L. 95-334, 16     
                                                                               U.S.C. 2201-2205.                
22. Emergency Feed Assistance Program.......................................  Agricultural Act of 1949, Sec.    
                                                                               407.                             

[[Page 367]]

                                                                                                                
23. Farm Facility Loan Program..............................................  Agricultural Act of 1949, as      
                                                                               amended; 12 U.S.C. 1134(c), Pub. 
                                                                               L. 81-439; Commodity Credit      
                                                                               Corporation Charter Act, as      
                                                                               amended; 15 U.S.C. 714 (b) and   
                                                                               (c); Food and Agriculture Act of 
                                                                               1977, 15 U.S.C. 714(b). Pub. L.  
                                                                               95-113; Pub. L. 96-234;          
                                                                               Agriculture and Food Act of 1981,
                                                                               Pub. L. 97-98.                   
24. Feed Grain Donation Program.............................................  Agricultural Act of 1949, Sec.    
                                                                               407.                             
25. Feed Grain Program......................................................  Commodity Credit Corporation      
                                                                               Charter Act, Pub. L. 80-89;      
                                                                               Agricultural Act of 1949, as     
                                                                               amended, 7 U.S.C. 1421, Pub. L.  
                                                                               81-439; Federal Crop Insurance   
                                                                               Act of 1980; Pub. L. 96-365, Food
                                                                               Security Act of 1985, Pub. L. 99-
                                                                               198.                             
26. Forestry Incentives Program.............................................  Cooperative Forestry Assistance   
                                                                               Act of 1978; Pub. L. 95-313.     
27. Grain Reserve Program...................................................  Agricultural Act of 1949; 7 U.S.C.
                                                                               1445; Pub. L. 81-439; Commodity  
                                                                               Credit Corporation Charter Act,  
                                                                               15 U.S.C. 714, Pub. L. 80-806;   
                                                                               Agriculture and Food Act of 1981,
                                                                               Pub. L. 97-98; Food Security Act 
                                                                               of 1985, Pub. L. 99-198.         
28. Herd Preservation Program...............................................  Agricultural Act of 1949, Sec.    
                                                                               407.                             
29. Indian Acute Distress Donation Program..................................  Agricultural Act of 1949, Sec.    
                                                                               407; Executive Order 11336.      
30. Programs which do not operate through producers, associations,            Agricultural Adjustment Act of    
 cooperatives or other recipients.                                             1938; 7 U.S.C. 1301-1393, Pub. L.
                                                                               73-430; Commodity Credit         
                                                                               Corporation Charter Act, 15      
                                                                               U.S.C. 714, et seq.; Agricultural
                                                                               Act of 1949; as amended; 7 U.S.C.
                                                                               1421, et seq. Pub. L. 81-439; as 
                                                                               amended; Agriculture and Food Act
                                                                               of 1961; Pub. L. 97-98; Dairy and
                                                                               Tobacco Adjustment Act of 1983;  
                                                                               Pub. L. 98-180; Agricultural     
                                                                               Programs Adjustment Act of 1984; 
                                                                               Pub. L. 98-258; Food Security Act
                                                                               of 1985; Pub. L. 99-198.         
31. Rice Program............................................................  Commodity Credit Corporation      
                                                                               Charter Act; Pub. L. 80-89;      
                                                                               Agricultural Act of 1949, as     
                                                                               amended, 7 U.S.C. 1441, Pub. L.  
                                                                               81-439; Food Security Act of     
                                                                               1985, Pub. L. 99-198.            
32. Rural Clean Water Program...............................................  Agricultural, Rural Development   
                                                                               and Related Agencies             
                                                                               Appropriations Act of 1980, Pub. 
                                                                               L. 96-108; 93 Stat. 821, 835 and 
                                                                               Pub. L. 96-528; 94 Stat. 3095,   
                                                                               3111.                            
33. Water Bank Program......................................................  Water Bank Act; Pub. L. 91-559;   
                                                                               Pub. L. 96-182.                  
34. Wheat Program...........................................................  Commodity Credit Corporation      
                                                                               Charter Act; Pub. L. 80-89;      
                                                                               Agricultural Act of 1949, as     
                                                                               amended, 7 U.S.C. 1445; Pub. L.  
                                                                               81-439; Food Security Act of     
                                                                               1985; Pub. L. 99-198.            
35. Wool and Mohair Incentive Payment Program...............................  National Wool Act of 1954, as     
                                                                               amended; 7 U.S.C. 1781-1787; Pub.
                                                                               L. 83-690; Agriculture and Food  
                                                                               Act of 1981; Pub. L. 97-98; Food 
                                                                               Security Act of 1985; Pub. L. 99-
                                                                               198.                             
36. Colorado River Salinity Control Program.................................  Sec. 202(c), Pub. L. 93-920, 88   
                                                                               Stat. 271, as amended, (43 U.S.C.
                                                                               1592).                           
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                  Administered by the Economic Research Service                                 
                                                                                                                
----------------------------------------------------------------------------------------------------------------
37. Rural Economics Research Division.......................................  Agricultural Marketing Act of     
                                                                               1946, 7 U.S.C. 1621-1627.        
38. International Economics Division........................................  Agricultural Marketing Act of     
                                                                               1946, 7 U.S.C. 1621-1627.        
39. National Resource Economics Division....................................  Agricultural Marketing Act of     
                                                                               1946, 7 U.S.C. 1621-1627.        
40. National Economics Division.............................................  Agricultural Marketing Act of     
                                                                               1946, 7 U.S.C. 1621-1627.        
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                               Administered by Federal Crop Insurance Corporation                               
                                                                                                                
----------------------------------------------------------------------------------------------------------------
41. Crop Insurance..........................................................  Federal Crop Insurance Act, as    
                                                                               amended, 7 U.S.C. 1501-1520;     
                                                                               Title V of the Agricultural      
                                                                               Adjustment Act of 1938; 52 Stat. 
                                                                               31 and Federal Crop Insurance Act
                                                                               of 1980, Pub. L. 96-385          
                                                                               (September 26, 1980), 94 Stat.   
                                                                               1312-1319.                       
42. Standardization Activities..............................................  Sec. 203(c) of the Agricultural   
                                                                               Marketing Act of 1946, as        
                                                                               amended; 7 U.S.C. 1622(c).       
43. Inspection Activities...................................................  Sec. 7 of the United States Grain 
                                                                               Standards Act, as amended, 7     
                                                                               U.S.C. 79.                       
44. Compliance Activities...................................................  Sec. 203(h) of the Agricultural   
                                                                               Marketing Act of 1946, as        
                                                                               amended, 7 U.S.C. 1622(h).       
45. Research and Development................................................  Sec. 203 of the Agricultural      
                                                                               Marketing Act of 1946, as        
                                                                               amended, 7 U.S.C. 1622.          
46. Weighing Activities.....................................................  Sec. 7A of the United States Grain
                                                                               Standards Act, as amended, 7     
                                                                               U.S.C. 79a.                      
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                  Administered by Farmers Home Administration                                   
                                                                                                                
----------------------------------------------------------------------------------------------------------------
47. Emergency Loans.........................................................  Sec. 321-330 of the Consolidated  
                                                                               Farm and Rural Development Act,  
                                                                               as amended; 7 U.S.C. 1968.       
48. Farm Operating Loans....................................................  Sec. 311, Title I of the Rural    
                                                                               Development Act, as amended, 7   
                                                                               U.S.C. 1941.                     

[[Page 368]]

                                                                                                                
49. Farm Ownership Loans....................................................  Sec. 302 of the Consolidated Farm 
                                                                               and Rural Development Act, as    
                                                                               amended, 7 U.S.C. 1922.          
50. Section 502 Rural Housing Loans.........................................  Sec. 502, Title V, Housing Act of 
                                                                               1949, as amended, 42 U.S.C. 1471.
51. Rural Housing Loans and Grants (Section 504 repair loan and grant)......  Sec. 504, Title V, Housing Act of 
                                                                               1949, as amended, 42 U.S.C. 1471.
52. Soil and Water Loans....................................................  Sec. 304 of the Consolidated Farm 
                                                                               and Rural Development Act, as    
                                                                               amended, 7 U.S.C. 1924.          
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                       Administered by the Forest Service                                       
                                                                                                                
----------------------------------------------------------------------------------------------------------------
53. Permits for use of National Forests and National Grasslands by other      Act of June 4, 1897, as amended,  
 than individuals at a nominal or no charge to any group.                      16 U.S.C. 551; Sec. 501 of the   
                                                                               Federal Land Policy Management   
                                                                               Act of 1976, 43 U.S.C. 1761; Term
                                                                               Permit Act of March 4, 1915, as  
                                                                               amended, 16 U.S.C. 497; Secs. 3  
                                                                               and 4 of the American Antiquities
                                                                               Act of June 8, 1906, 16 U.S.C.   
                                                                               432; Sec. 32 of the Bankhead-    
                                                                               Jones Farm Tenant Act, as        
                                                                               amended, 7 U.S.C. 1011.          
54. Timber granted free or at nominal cost to any group.....................  Sec. 1 of the Act of June 4, 1897,
                                                                               as amended, 16 U.S.C. 551; Sec.  
                                                                               32 of the Bankhead-Jones Farm    
                                                                               Tenant Act, as amended, 7 U.S.C. 
                                                                               1011.                            
55. Forest seedling production and distribution.............................  Cooperative Forestry Assistance   
                                                                               Act of 1978, Pub. L. 95-313, 28  
                                                                               U.S.C. 2102.                     
56. Control of White Pine Blister Rust......................................  Cooperative Forestry Assistance   
                                                                               Act of 1978, Pub. L. 95-313, 16  
                                                                               U.S.C. Sec. 2104 (Insect and     
                                                                               disease control, White Pine      
                                                                               Blister Rust not specifically    
                                                                               mentioned).                      
57. Protection of Forest Resources from insects, pests and diseases.........  Cooperative Forestry Assistance   
                                                                               Act of 1978, Pub. L. 95-313, 16  
                                                                               U.S.C. 2104.                     
58. Job Corps...............................................................  29 U.S.C. 1691-1701. Note: This is
                                                                               a Federally-financed and         
                                                                               conducted program providing      
                                                                               education and skills training to 
                                                                               young men and women. The U.S.    
                                                                               Department of Labor is entirely  
                                                                               responsible for recruiting of    
                                                                               recipient youth.                 
59. Youth Conservation Corps................................................  Act of August 13, 1970, as        
                                                                               amended, 16 U.S.C. 1701-1706.    
                                                                               Note: This is a Federally        
                                                                               financed and conducted program on
                                                                               National Forest land providing   
                                                                               summer employment to teen-age    
                                                                               youth doing conservation work    
                                                                               while learning about their       
                                                                               natural environment and heritage.
                                                                               Recruitment of recipient youth is
                                                                               without regard to economic,      
                                                                               social or racial classification. 
                                                                               Policy requires that random      
                                                                               selection from the qualified     
                                                                               applicant pool be made in a      
                                                                               public forum.                    
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                               Administered by Food Safety and Inspection Service                               
                                                                                                                
----------------------------------------------------------------------------------------------------------------
60. Meat and Poultry. Inspection Operations Program.........................  Federal Meat Inspection Act; Pub. 
                                                                               L. 90-201; 21 U.S.C. 601, et seq.
                                                                              Poultry Products Inspection Act;  
                                                                               Pub. L. 90-492; 21 U.S.C. 601, et
                                                                               seq.                             
                                                                              Humane Slaughter Act; Pub. L. 85- 
                                                                               765; 7 U.S.C. 1901, et seq.      
                                                                              Federal Meat Inspection Act; 21   
                                                                               U.S.C. 601, et seq.              
                                                                              Poultry Products Inspection Act;  
                                                                               21 U.S.C. 451, et seq.           
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                               Administered by Human Nutrition Information Service                              
                                                                                                                
----------------------------------------------------------------------------------------------------------------
61. Nutrient Data Research..................................................  National Agriculture Research     
                                                                               Extension and Teaching Policy Act
                                                                               of 1977, Sec. 1428; 7 U.S.C.     
                                                                               3178a.                           
62. Guidance and Education Research.........................................  National Agriculture Research     
                                                                               Extension and Teaching Policy Act
                                                                               of 1977, Sec. 1428; 7 U.S.C.     
                                                                               3178a.                           
63. Food Consumption Research...............................................  National Agriculture Research     
                                                                               Extension and Teaching Policy Act
                                                                               of 1977, Sec. 1428; 7 U.S.C.     
                                                                               3178a.                           
64. Diet Appraisal Research.................................................  National Agriculture Research     
                                                                               Extension and Teaching Policy Act
                                                                               of 1977, Sec. 1428; 7 U.S.C.     
                                                                               3178a.                           
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                            Administered by National Agricultural Statistics Service                            
                                                                                                                
----------------------------------------------------------------------------------------------------------------
65. Crop and Livestock Estimates............................................  7 U.S.C. 292, 411a, 411b, 427,    
                                                                               471, 475, 476, 501, 951, 953,    
                                                                               955, 956, 957. Agricultural      
                                                                               Marketing Act of 1946; 7 U.S.C.  
                                                                               1621-1627; 7 U.S.C. 2201, 2202,  
                                                                               2248, 3103, 3291, 3311, 3504; 22 
                                                                               U.S.C. 3101; 44 U.S.C. 3501-3511;
                                                                               50 U.S.C. 2061, et seq. 50 U.S.C.
                                                                               2251, et seq.                    
66. Statistical Research....................................................  Agricultural Marketing Act of     
                                                                               1946; 7 U.S.C. 1621.             
                                                                                                                
----------------------------------------------------------------------------------------------------------------

[[Page 369]]

                                                                                                                
                                  Administered by the Office of Transportation                                  
                                                                                                                
----------------------------------------------------------------------------------------------------------------
67. Rural Transportation Development........................................  Sec. 201 of the Agricultural      
                                                                               Adjustment Act of 1938; 7 U.S.C. 
                                                                               1291; Sec. 203(j) of the         
                                                                               Agricultural Marketing Act of    
                                                                               1946, as amended; 7 U.S.C.       
                                                                               1662(j). International Carriage  
                                                                               of Perishable Foodstuffs Act, 7  
                                                                               U.S.C. 4401, et seq.             
68. Foreign Market Development..............................................  Sec. 201 of the Agricultural      
                                                                               Adjustment Act of 1938; 7 U.S.C. 
                                                                               1291 and Sec. 203(j) of the      
                                                                               Agricultural Marketing Act of    
                                                                               1946, as amended; 7 U.S.C.       
                                                                               1661(j). International Carriage  
                                                                               of Perishable Foodstuffs Act, 7  
                                                                               U.S.C. 4401, et seq.             
69. Economic Analysis.......................................................  Sec. 201 of the Agricultural      
                                                                               Adjustment Act of 1938; 7 U.S.C. 
                                                                               1291 and Sec. 203(j) of the      
                                                                               Agricultural Marketing Act of    
                                                                               1946, as amended; 7 U.S.C.       
                                                                               1662(j).                         
70. Facilities Research and Development.....................................  Sec. 201 of the Agricultural      
                                                                               Adjustment Act of 1938, 7 U.S.C. 
                                                                               1291 and Sec. 203(j) of the      
                                                                               Agricultural Marketing Act of    
                                                                               1946, as amended; 7 U.S.C.       
                                                                               1662(j). International Carriage  
                                                                               of Perishable Foodstuffs Act, 7  
                                                                               U.S.C. 4401, et seq.             
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                              Administered by Rural Electrification Administration                              
                                                                                                                
----------------------------------------------------------------------------------------------------------------
71. Rural Electrification Loans and Loan Guarantees.........................  Titles I and II of the Rural      
                                                                               Electrification Act of 1936, as  
                                                                               amended; 7 U.S.C. 901-916, 931-  
                                                                               940 (1982).                      
72. Rural Telephone, Loans and Loan Guarantees..............................  Titles II and III of the Rural    
                                                                               Electrification Act of 1936, as  
                                                                               amended; 7 U.S.C. 922-924, 931-  
                                                                               940 (1982).                      
73. Rural Telephone, Bank Loans.............................................  Title IV of the Rural             
                                                                               Electrification Act of 1936, as  
                                                                               amended; 7 U.S.C. 941-950b       
                                                                               (1982).                          
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                   Administered by Soil Conservation Service                                    
                                                                                                                
----------------------------------------------------------------------------------------------------------------
74. Snow Survey and Water Supply Forecasting................................  Soil Conservation and Domestic    
                                                                               Allotment Act, Pub. L. 74-46; 16 
                                                                               U.S.C. 590a-590f, 590g.          
75. Inventory and Monitoring................................................  Secs. 1-6 and 17 of the Soil      
                                                                               Conservation and Domestic        
                                                                               Allotment Act, as amended; 16    
                                                                               U.S.C. 590a-590f, 590g, Sec. 502 
                                                                               of the Rural Development Act of  
                                                                               1972, 7 U.S.C. 1010a.            
76. River Basin Surveys and Investigations..................................  Watershed Protection and Flood    
                                                                               Prevention Act; Pub. L. 83-566,  
                                                                               as amended, Sec. 6, 16 U.S.C.    
                                                                               1006.                            
----------------------------------------------------------------------------------------------------------------


[53 FR 48509, Dec. 1, 1988]



 Subpart C--Rules of Practice and Procedure for Hearings, Decisions and 
        Administrative Review Under the Civil Rights Act of 1964

    Authority: Sec. 602, 78 Stat. 252; 42 U.S.C. 2000d-1; sec. 15.9(d) 
of subpart A to 7 CFR, part 15, and laws referred to in the appendix to 
subpart A, part 15, title 7 CFR.

    Source: 30 FR 14355, Nov. 17, 1965, unless otherwise noted.

                           General Information



Sec. 15.60   Scope of rules.

    The rules of practice and procedure in this subpart supplement 
Secs. 15.9 and 15.10 of subpart A of this part and govern the practice 
for hearings, decisions, and administrative review conducted by the 
Department of Agriculture, pursuant to title VI of the Civil Rights Act 
of 1964, section 602 (78 Stat. 252) and this part, title 7, CFR, except 
these rules shall not apply to any stage of a proceeding which has 
occurred prior to the effective date hereof.



Sec. 15.61   Records to be public.

    All documents and papers filed in any proceeding under this part may 
be inspected and copied in the Office of the Department Hearing Clerk.



Sec. 15.62   Definitions.

    All terms used in this subpart shall, unless the context otherwise 
requires, have the same meaning as defined in subpart A of this part.



Sec. 15.63   Computation of time.

    A period of time begins with the day following the act or event and 
includes the last day of the period, unless it is a Saturday, Sunday, or 
legal holiday

[[Page 370]]

observed in the District of Columbia, in which case it shall be the 
following workday. When the period of time prescribed or allowed is less 
than 7 days, intermediate Saturdays, Sundays, and legal holidays shall 
be excluded from the computation.



Sec. 15.64   Parties.

    The term ``party'' shall include an applicant or recipient with 
respect to whom the agency has issued a notice of hearing or opportunity 
to request a hearing in accordance with subpart A of this part and 
Sec. 15.81. The agency shall be deemed a party to all proceedings.



Sec. 15.65   Appearance.

    Any party may appear in person or by counsel or authorized 
representative and participate fully in any proceeding.



Sec. 15.66   Complainants not parties.

    A person submitting a complaint pursuant to Sec. 15.6 is not a party 
to the proceedings governed by this subpart, but may petition, after 
proceedings have been commenced, to become an intervener.



Sec. 15.67   Intervener.

    Any interested person or organization may file a petition to 
intervene which will include a statement of position and a statement of 
what petitioner expects to contribute to the hearing, and a copy of the 
petition will be served on all parties. Such petition should be filed 
prior to the prehearing conference, or if none is held, before the 
commencement of the hearing, unless the petitioner shows good cause for 
filing the petition later. The hearing officer may grant the petition if 
he believes that such participation will not unduly delay a hearing and 
will contribute materially to the proceeding. An intervener is not a 
party and may not introduce evidence at a hearing, or propound questions 
to a witness, unless the hearing officer determines that the proposed 
additional evidence is relevant and will clarify the facts. The 
intervener may submit and serve on all parties a brief in support or 
opposition to any brief of a party. All service and notice required by 
and upon a party shall apply to an intervener.



Sec. 15.68   Ex parte communications.

    (a) General. After proceedings have been commenced, any 
communication or discussion ex parte, as regards the merits of the 
proceeding or a factually related proceeding, between an employee of the 
Department involved in the decisional process and a person not employed 
by the Department, and any such communication or discussion between any 
employee of the Department, who is or has been engaged in any way in the 
investigation or prosecution of the proceeding or a factually related 
proceeding, and an employee of the Department who is involved or may be 
involved in the decisional process of a proceeding, except at a 
conference, hearing or review proceeding under these rules is improper 
and prohibited.
    (b) Request for information. A request for information about the 
status of a proceeding without discussing issues or expressing points of 
view and inquiries with respect to procedural matters or an emergency 
request for an extension of time are not deemed ex parte communications. 
When practical all parties should be notified of any request for an 
extension of time. Communication between an applicant or recipient and 
the agency or the Secretary with respect to securing voluntary 
compliance with any requirement of subpart A of this part is not 
prohibited.
    (c) Unsponsored written material. Letters expressing views or urging 
action and other unsponsored written material regarding matters in issue 
in a proceeding will be placed in the correspondence section of the 
docket of the proceeding. Such are not deemed part of the evidence or 
record.

            Form, Execution, Filing and Service of Documents



Sec. 15.71   Form of documents to be filed.

    All copies of documents filed in a proceeding shall be dated, signed 
in ink, shall show the address and position or title of the signatory, 
and shall show the docket number and title of the proceeding on the 
front page.



Sec. 15.72   Filing.

    All documents relating to a proceeding under this subpart shall be 
filed in

[[Page 371]]

an original and two copies of such document with the Office of the 
Hearing Clerk at Room 112, Administration Building, Department of 
Agriculture, Washington, D.C., 20250, during regular business hours. 
Regular business hours are every Monday through Friday (legal holidays 
in the District of Columbia excepted) from 9 a.m. to 5:30 p.m., eastern 
standard or daylight saving time, whichever is effective in the District 
of Columbia at the time.



Sec. 15.73   Service.

    Service shall be made by the Hearing Clerk by personal delivery of 
one copy to each person to be served or by mailing by first-class mail, 
or air mail if more than 300 miles, properly addressed with postage 
prepaid. When a party or intervener has appeared by attorney or 
representative, service upon such attorney or representative will be 
deemed proper service. The initial notice of hearing, opportunity to 
request a hearing, or notice setting a date for a hearing shall be by 
certified mail, return receipt requested.



Sec. 15.74   Date of service.

    The date of service shall be the day when the matter is deposited in 
the U.S. mail or is delivered in person, except that the date of service 
of the initial notice a hearing or notice of opportunity to request a 
hearing or notice setting a date for a hearing shall be the date of its 
delivery, or of its attempted delivery if delivery is refused.

                       Initial Notice and Response



Sec. 15.81   How proceedings are commenced.

    Proceedings are commenced by mailing a notice to an applicant or 
recipient of alleged noncompliance with the Act and the Secretary's 
regulations thereunder. The notice will be signed by the interested 
agency head or by the Secretary and shall be filed with the hearing 
clerk for proper service by the hearing clerk according to the rules of 
this subpart. The notice shall include either a notice of hearing or 
notice of opportunity to request a hearing as determined by the 
Secretary and shall comply with the requirements of Sec. 15.9(a).



Sec. 15.82   Notice of hearing and response thereto.

    A notice of hearing shall fix a date not less than 30 days from the 
date of service of the notice of a hearing on matters alleged in the 
notice. If the applicant or recipient does not desire a hearing, he 
should so state in writing, in which case the applicant or recipient 
shall have the right to submit written information and argument for the 
record, and the additional right to further participate in the 
proceeding. Failure to appear at the time set for a hearing, without 
good cause, shall be deemed a waiver of the right to a hearing under 
section 602 of the Act and the regulations in this part and consent to 
the making of a decision on such information as is available which may 
be presented for the record.



Sec. 15.83   Notice of opportunity to request a hearing and response thereto.

    A notice of opportunity to request a hearing shall set a date not 
less than 20 days from service of said notice within which the applicant 
or recipient may file a request for a hearing, or may wiave a hearing 
and submit written information and argument for the record, in which 
case, the applicant or recipient shall have the right to further 
participate in the proceeding. When the applicant or recipient elects to 
file a request for a hearing, a time shall be set for the hearing at a 
date not less than 20 days from the date applicant or recipient is 
notified of the date set for the hearing. Failure of the applicant or 
recipient to request a hearing or to appear at the date set shall be 
deemed a waiver of the right to a hearing, under section 602 of the Act 
and the regulations in this part and consent to the making of a decision 
on such information as is available which may be presented for the 
record.



Sec. 15.84   Answer.

    In any case covered by Sec. 15.82 or Sec. 15.83 the applicant or 
recipient shall file an answer. Said answer shall admit or deny each 
allegation of the notice, unless the applicant or recipient is without 
knowledge, in which case the answer shall so state, and the statement 
will be considered a denial. Failure to

[[Page 372]]

file an answer shall be deemed an admission of all allegations of fact 
in the notice. Allegations of fact in the notice not denied or 
controverted by answer shall be deemed admitted. Matters intended to be 
offered as affirmative defenses must be stated as a separate part of the 
answer. The answer under Sec. 15.82 shall be filed within 20 days from 
the date of service of the notice of hearing. The answer under 
Sec. 15.83 shall be filed within 20 days of service of the notice of 
opportunity to request a hearing.



Sec. 15.85   Amendment of notice or answer.

    The notice of hearing or notice of opportunity to request a hearing 
may be amended once as a matter of course before an answer thereto is 
served, and each applicant or recipient may amend his answer once as a 
matter of course not later than 10 days before the date fixed for 
hearing but in no event later than 20 days from the date of service of 
his original answer. Otherwise a notice or answer may be amended only by 
leave of the hearing officer. An applicant or recipient shall file his 
answer to an amended notice within the time remaining for filing the 
answer to the original notice or within 10 days after service of the 
amended notice, whichever period may be the longer, unless the hearing 
officer otherwise orders.



Sec. 15.86   Consolidated or joint hearings.

    Two or more proceedings against the same respondent, or against 
different respondents in which the same or related facts are asserted to 
constitute noncompliance, may be consolidated for hearing or decision or 
both by the agency head, if he has the principal responsibility within 
the Department for the administration of all the laws extending the 
Federal financial assistance involved. If laws administered by more than 
one agency head are involved, such officials may by agreement order 
consolidation for hearing. The Secretary may order proceedings in the 
Department consolidated for hearing with proceedings in other Federal 
Departments or agencies, by agreement with such other Departments or 
agencies. All parties to any proceeding consolidated subsequently to 
service of the notice of hearing or notice of opportunity to request a 
hearing shall be promptly served with notice of such consolidation.

                             Hearing Officer



Sec. 15.91   Who presides.

    A hearing officer shall preside over all proceedings held under this 
part. The hearing officer shall be a hearing examiner qualified under 
section 11 of the Administrative Procedure Act (5 U.S.C. 1001 et seq.), 
and designated to hold hearings under the regulations in this subpart or 
any person authorized to hold a hearing and make a final decision. The 
hearing officer will serve until he has made an initial decision, 
certified the record to the Secretary, or made a final decision if so 
authorized.



Sec. 15.92   Designation of hearing officer.

    Unless otherwise provided by an order of the Secretary at the time 
the notice of alleged noncompliance provided in Sec. 15.81 is filed with 
the Office of the Hearing Clerk, the hearing shall be held before a 
hearing examiner, who shall be appointed by the Chief Hearing Examiner, 
Office of Hearing Examiners within five days after the filing of such 
notice. Unless otherwise provided, the hearing examiner shall certify 
the entire record with his recommended findings and proposed decision to 
the Secretary for final decision.



Sec. 15.93   Time and place of hearing.

    When a notice of hearing is sent to an applicant or recipient, the 
time and place of hearing shall be fixed by the Secretary, and when the 
applicant or recipient requests a hearing, the time and place shall be 
set by the hearing officer and in either case in conformity with 
Sec. 15.9(b). The complainant, if any, shall be advised of the time and 
place of the hearing.



Sec. 15.94   Disability of hearing officer.

    In the case of death, illness, disqualification, or unavailability 
of the designated hearing officer, another hearing officer may be 
designated by the Secretary to take his place. If such death, illness, 
disqualification or unavailability occurs during the course of

[[Page 373]]

a hearing, the hearing will be either continued under a substitute 
hearing officer, or terminated and tried de novo in the discretion of 
the Secretary. In the absence of the designated hearing officer any 
hearing examiner may rule on motions and other interlocutory papers.



Sec. 15.95   Responsibilities and duties of hearing officer.

    The hearing officer shall have the duty to conduct a fair hearing, 
to take all necessary action to avoid delay, and to maintain order. He 
shall have all powers necessary to these ends, including (but not 
limited to) the power to:
    (a) Arrange and issue notice of the date, time and place of 
hearings, or, upon due notice to the parties, to change the date, time 
and place of hearings previously set.
    (b) Hold conferences to settle, simplify, or fix the issues in a 
proceeding, or to consider other matters that may aid in the expeditious 
disposition of the proceeding.
    (c) Require parties and interveners to state their position with 
respect to the various issues in the proceeding.
    (d) Administer oaths and affirmations.
    (e) Rule on motions, and other procedural items on matters pending 
before him.
    (f) Regulate the course of the hearing and conduct of parties 
therein.
    (g) Examine witnesses and direct witnesses to testify.
    (h) Receive, rule on, exclude or limit evidence.
    (i) Fix the time for filing motions, petitions, briefs, or other 
items in matters pending before him.
    (j) In accordance with his authority issue an initial decision, or 
recommended findings and proposed decision, or final decision.
    (k) Take any other action a hearing officer is authorized to take 
under these rules or subpart A of this part.

                                 Motions



Sec. 15.101   Form and content.

    (a) General. Motions shall state the relief sought and the authority 
relied upon. If made before or after the hearing, the motion shall be in 
writing and filed with the hearing clerk with a copy to all parties. If 
made at the hearing, they should be stated orally but the hearing 
officer may require that any motion be reduced to writing and filed and 
served on all parties in the same manner as a formal motion.
    (b) Extension of time or postponement. A request for an extention of 
time should be filed and served on all parties and should set forth the 
reasons for the request and may be granted upon a showing of good cause. 
Answers to such requests are permitted, if made promptly.



Sec. 15.102   Responses to motions.

    Within 8 days or such reasonable time as may be fixed by the hearing 
officer, or Secretary, if the motion is properly addressed to him, any 
party may file a response to the motion, unless the motion is made at a 
hearing in which case an immediate response may be required. The hearing 
officer may dispose of motions at a prehearing conference.



Sec. 15.103   Disposition of motions.

    The hearing officer may not sustain or grant a motion prior to 
expiration of the time for filing responses thereto, but may overrule or 
deny such motion without waiting on a response: Provided, however, That 
prehearing conferences, hearings, and decisions need not be delayed 
pending disposition of motions. Oral motions may be ruled on 
immediately. Motions submitted to the hearing officer not disposed of in 
separate rulings or in his decision will be deemed denied. Oral argument 
shall not be held on written motions unless expressly ordered. 
Interlocutory appeals from rulings on motions shall be governed by 
Sec. 15.123.

                           Hearing Procedures



Sec. 15.110   Prehearing conferences.

    (a) In any case in which it appears that such procedure will 
expedite the proceeding, the hearing officer may, prior to the 
commencement of the hearing, request the parties to meet with him or to 
correspond with him regarding any of the following:
    (1) Simplification and clarification of the issues;

[[Page 374]]

    (2) Necessity or desirability of amendments to the pleadings;
    (3) Stipulations, admissions of fact and of the contents and 
authenticity of documents;
    (4) Matters of which official notice will be taken;
    (5) Limitation of the number of experts or other witnesses;
    (6) Disposal of all motions; and
    (7) Such other matters as may expedite and aid in the disposition of 
the proceeding.
    (b) The hearing officer shall enter in the record a written summary 
of the results of the conference or correspondence with the parties.



Sec. 15.111   Purpose of hearing.

    (a) The hearing is directed to receiving factual evidence and expert 
opinion testimony related to the issues in the proceeding. Argument will 
not be received in evidence; rather it should be presented in 
statements, memoranda or briefs, as determined by the hearing officer. 
Brief opening statements, which shall be limited to a statement of the 
party's position and what he intends to prove, may also be made at 
hearings.
    (b) Hearings for the reception of evidence will be held only in 
cases where issues of fact must be resolved in order to determine 
whether the respondent has failed to comply with one or more applicable 
requirements of subpart A of this part. In any case where it appears 
from the answer of the applicant or recipient to the notice of hearing 
or notice of opportunity to request a hearing, from his failure timely 
to answer, or from his admissions or stipulations in the record that 
there are no matters of material fact in dispute, the hearing officer 
may enter an order so finding, and fixing the time for the submission of 
evidence by the Government for the record. Thereafter, the proceedings 
shall go to conclusion in accordance with subpart A of this part and the 
rules of this subpart. An appeal from such order may be allowed in 
accordance with the rules for interlocutory appeal in Sec. 15.123.



Sec. 15.112   Statement of position and brief.

    The hearing officer may require all parties and any intervener to 
file a written statement of position or brief prior to the beginning of 
a hearing.



Sec. 15.113   Testimony.

    (a) Testimony shall be given orally under oath or affirmation by 
witnesses at the hearing, but the hearing officer, in his discretion, 
may require or permit that the testimony of any witness be prepared in 
writing and served on all parties in advance of the hearing. Such 
testimony may be adopted by the witness at the hearing and filed as part 
of the record thereof. Unless authorized by the hearing officer, 
witnesses will not be permitted to read prepared testimony into the 
record. Except as provided in Secs. 15.115 and 15.116, witnesses shall 
be available at the hearing for cross-examination.
    (b) Proposed exhibits shall be exchanged either at a prehearing 
conference, or otherwise prior to the hearing. Proposed exhibits not so 
exchanged may be denied admission as evidence unless good cause is shown 
why they were not exchanged. The authenticity of all proposed exhibits 
exchanged prior to hearing will be deemed admitted unless written 
objection thereto is filed prior to the hearing or unless good cause is 
shown at the hearing for failure to file such written objection.



Sec. 15.115   Affidavits.

    An affidavit, intended to be used as evidence without cross-
examination of the affiant, will be filed and served on the parties at 
least 15 days prior to the hearing; and not less than seven days prior 
to hearing a party may file and serve written objections to any 
affidavit on the ground that he believes it necessary to test the truth 
of assertions therein by cross-examination. In such event, the affidavit 
objected to will not be received in evidence unless the affiant is made 
available for cross-examination at the hearing or otherwise as 
prescribed by the hearing officer. In absence of an objection being

[[Page 375]]

filed within the time specified, such affidavit will be received in 
evidence.



Sec. 15.116   Depositions.

    Upon such terms as may be just, the hearing officer, in his 
discretion, may authorize the testimony of any witness to be taken by 
deposition.



Sec. 15.117   Evidence.

    Irrelevant, immaterial, unreliable, and unduly repetitious evidence 
will be excluded, and technical rules of evidence shall not apply but 
rules or principles designed to assure the most credible evidence 
available and to subject testimony to test by cross-examination shall 
apply.



Sec. 15.118   Cross-examination.

    Cross-examination will be limited to the scope of direct examination 
and matters at issue in the hearing.



Sec. 15.119   Objections.

    Objections to evidence shall be timely and briefly state the ground 
relied upon. The ruling of the hearing officer will be part of the 
record. Argument in support of the objection will not be part of the 
record.



Sec. 15.120   Exceptions to rulings of hearing officer unnecessary.

    Exceptions to rulings of the hearing officer are unnecessary. It is 
sufficient that a party, at the time the ruling of the hearing officer 
is sought, makes known the action which he desires the hearing officer 
to take, or his objection to an action taken, and his grounds therefor.



Sec. 15.121   Official notice.

    A public document, or part thereof, such as an official report 
decision, opinion, or published scientific or economic statistical data 
issued by any branch of the Federal or a State Government which has been 
shown to be reasonably available to the public, may be offered for 
official notice and accepted in the record without further proof of 
authenticity. Where official notice is to be taken, any party, on timely 
request, shall have an opportunity to show the contrary.



Sec. 15.122   Offer of proof.

    An offer of proof made in connection with an objection taken to any 
ruling of the hearing officer rejecting or excluding proposed oral 
testimony shall consist of a statement for the record of the substance 
of the evidence which counsel contends would be adduced by such 
testimony; and, if the excluded evidence consists of evidence in 
documentary or written form or of reference to documents or records, a 
copy of such evidence shall be marked for identification and shall 
accompany the record as an offer of proof.



Sec. 15.123   Appeals from ruling of hearing officer.

    A ruling of the hearing officer may not be appealed to the Secretary 
prior to consideration of the entire proceeding by the hearing officer 
except with the consent of the hearing officer and where he certifies on 
the record or in writing that the allowance of an interlocutory appeal 
is clearly necessary to prevent exceptional delay, expense, or prejudice 
to any part or substantial detriment to the public interest. If an 
appeal is allowed, any party may file a brief with the Secretary within 
such period as the hearing officer directs. Oral argument will be heard 
in the discretion of the Secretary.



Sec. 15.124   Admissions as to facts and documents.

    Not later than 15 days prior to the scheduled date of the hearing 
except for good cause shown, or prior to such earlier date as the 
hearing officer may order, any party may serve upon an opposing party a 
written request for the admission of the genuineness and authenticity of 
any relevant documents described in and exhibited with the request, or 
for the admission of the truth of any relevant matters of fact stated in 
the request. Each of the matters of which an admission is requested 
shall be deemed admitted, unless within a period designated in the 
request (not less than 10 days after service thereof, or within such 
further time as the hearing officer may allow upon motion and notice) 
the party to whom the request is directed serves upon the requesting 
party a sworn statement either denying specifically the matters

[[Page 376]]

of which an admission is requested or setting forth in detail the 
reasons why he cannot truthfully either admit or deny such matters. 
Copies of requests for admission and answers thereto shall be served on 
all parties. Any admission made by a party to such request is only for 
the purposes of the pending proceeding, or any proceeding or action 
instituted for the enforcement of any order entered therein, and shall 
not constitute an admission by him for any other purpose or be used 
against him in any other proceeding or action.

[31 FR 8586, June 21, 1966]

                               The Record



Sec. 15.131   Official transcript.

    The hearing clerk will designate the official reporter for all 
hearings. The official transcript of testimony taken, together with any 
affidavits, exhibits, depositions, briefs, or memoranda of law shall be 
filed with the hearing clerk. Transcripts of testimony in hearings will 
be supplied by the official reporter to the parties and to the public at 
rates not to exceed the maximum rates fixed by the contract between the 
Department and the reporter. Upon notice to all parties, the hearing 
officer may authorize corrections to the transcript which involve 
matters of substance.



Sec. 15.132   Record for decision.

    The transcript of testimony, exhibits, affidavits, depositions, 
briefs, memoranda of law, and all pleadings, motions, papers, and 
requests filed in the proceeding, except the correspondence section of 
the docket, including rulings, and any recommended findings and proposed 
decision, or initial decision shall constitute the exclusive record for 
final decision.

                         Posthearing Procedures



Sec. 15.135   Posthearing briefs.

    The hearing officer shall fix a reasonable time for filing 
posthearing briefs, which may contain proposed findings of fact and 
conclusions of law, and, if permitted, reply briefs. Briefs should 
include a summary of the evidence relied upon together with references 
to exhibit numbers and pages of the transcript, with citations of the 
authorities relied upon. Briefs shall be filed in the Office of the 
Hearing Clerk with a copy to all parties.



Sec. 15.136   Decisions and notices.

    When the time for submission of posthearing briefs has expired the 
hearing officer shall either make an initial decision or final decision, 
if so authorized, or certify the entire record including his recommended 
findings and proposed decision to the Secretary for a final decision and 
a copy of such initial, or final decision or certification shall be 
mailed to the applicant or recipient and other parties by the hearing 
clerk.



Sec. 15.137   Exceptions to initial or proposed decision.

    Within 30 days of the mailing of such notice of initial or 
recommended findings and proposed decision, the applicant or recipient 
and other parties may file with the hearing clerk for consideration by 
the Secretary exceptions to the initial or recommended findings and 
proposed decision, with reasons therefor. Each party will be given 
reasonable opportunity to file briefs or other written statements of 
contentions in which the party may request that the decision be 
modified, reversed, affirmed or adopted.



Sec. 15.138   Review of initial decision.

    In the absence of exceptions to an initial decision, the Secretary 
may on his own motion within 45 days after an initial decision serve 
upon the parties a notice that he will review the decision and will give 
the parties reasonable opportunity to file briefs or other written 
statements of contentions. At the expiration of said time for filing 
briefs, the Secretary will review the initial decision and issue a final 
decision thereon. In the absence of either exceptions to an initial 
decision or a notice or review, the initial decision shall constitute 
the final decision of the Secretary.



Sec. 15.139   Oral argument.

    If any party desires to argue orally before the Secretary on the 
review of

[[Page 377]]

recommended findings and proposed decision, or an initial decision, he 
shall so state at the time he files his exceptions or brief. The 
Secretary may grant such request in his discretion. If granted, he will 
serve notice of oral argument on all parties and will set forth the 
order of presentation and the amount of time allotted, and the time and 
place of argument.



Sec. 15.140   Service of decisions.

    All final decisions shall be promptly served on all parties and the 
complainant.



Sec. 15.141   Contents of decision.

    Each decision of a hearing officer shall set forth his ruling on 
each finding, conclusion, or exception presented, and shall identify the 
requirement or requirements imposed by or pursuant to the regulations in 
this part with which it is found that the applicant or recipient has 
failed to comply.



Sec. 15.142   Content of orders.

    The final decision may provide for suspension or termination of, or 
refusal to grant or continue Federal financial assistance, in whole or 
in part, under the program involved, and may contain such terms, 
conditions, and other provisions as are consistent with and will 
effectuate the purposes of the Act and the regulations in this part, 
including provisions designed to assure that no Federal financial 
assistance will thereafter be extended under such program to the 
applicant or recipient determined by such decision to be in default in 
its performance of an assurance given by it pursuant to the regulations 
in this part, or to have otherwise failed to comply with the regulations 
in this part, unless and until it corrects its noncompliance and 
satisfies the Agency that it will fully comply with the regulations in 
this part.



Sec. 15.143   Decision where financial assistance affected.

    The Secretary shall make any final decision which provides for the 
suspension or termination of, or the refusal to grant or continue 
Federal financial assistance, or the imposition of any other sanction 
available under the regulations in this part or the Act.



PART 15a--EDUCATION PROGRAMS OR ACTIVITIES RECEIVING OR BENEFITTING FROM FEDERAL FINANCIAL ASSISTANCE--Table of Contents




                         Subpart A--Introduction

Sec.
15a.1  Purpose and effective date.
15a.2  Definitions.
15a.3  Remedial and affirmative action and self-evaluation.
15a.4  Assurance required.
15a.5  Effect of other requirements.
15a.6  Effect of employment opportunities.
15a.7  Designation of responsible employee and adoption of grievance 
          procedures.
15a.8  Dissemination of policy.

                           Subpart B--Coverage

15a.11  Application.
15a.12  Educational institutions controlled by religious organizations.
15a.13  Military and merchant marine educational institution.
15a.14  Membership practices of certain organizations.
15a.15  Exempt activities.
15a.16  Admission.
15a.17  Education institutions eligible to submit transition plans.
15a.18  Transition plans.

     Subpart C--Discrimination on the Basis of Sex in Admission and 
                         Recruitment Prohibited

15a.21  Admission.
15a.22  Preference in admission.
15a.23  Recruitment.

Subpart D--Discrimination on the Basis of Sex in Education Programs and 
                          Activities Prohibited

15a.31  Education programs and activities.
15a.32  Housing.
15a.33  Comparable facilities.
15a.34  Access to course offerings.
15a.35  Access to schools operated by L.E.A.s.
15a.36  Counseling and use of appraisal and counseling materials.
15a.37  Financial assistance.
15a.38  Employment assistance to students.
15a.39  Health and insurance benefits and services.
15a.40  Marital or parental status.
15a.41  Athletics.
15a.42  Textbooks and curricular material.

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Subpart E--Discrimination on the Basis of Sex in Employment in Education 
                   Programs and Activities Prohibited

15a.51  Employment.
15a.52  Employment criteria.
15a.53  Recruitment.
15a.54  Compensation.
15a.55  Job classification and structure.
15a.56  Fringe benefits.
15a.57  Marital or parental status.
15a.58  Effect of State or local law or other requirements.
15a.59  Advertising.
15a.60  Pre-employment inquiries.
15a.61  Sex as a bona-fide occupational qualification.

                     Subpart F--Procedures (Interim)

15a.71  Interim procedures.

Appendix

    Authority: Title IX of the Education Amendments of 1972, Pub. L. 92-
318, as amended by sec. 3 of Pub. L. 93-568, 88 Stat. 1855 and sec. 412 
of Pub. L. 94-482, 90 Stat. 2234 (except secs. 904 and 906 thereof); 20 
U.S.C. 1681, 1682, 1683, 1685, 1686.

    Source: 44 FR 21610, April 11, 1979, unless otherwise noted.



                         Subpart A--Introduction



Sec. 15a.1  Purpose and effective date.

    The purpose of this part is to effectuate title IX of the Education 
Amendments of 1972, as amended by Public Law 93-568, 88 Stat. 1855 and 
Public Law 94-482, 90 Stat. 2234 (except sections 904 and 906 of those 
Amendments) which is designed to eliminate (with certain exceptions) 
discrimination on the basis of sex in any education program or activity 
receiving Federal financial assistance, whether or not such program or 
activity is offered or sponsored by an educational institution as 
defined in this part.



Sec. 15a.2  Definitions.

    As used in this part, the term:
    (a) Title IX means title IX of the Education Amendments of 1972, 
Public Law 92-318, as amended by section 3 of Public Law 93-568, 88 
Stat. 1855 and section 412 of Public Law 94-482, 90 Stat. 2234 (except 
sections 904 and 906 thereof); 20 U.S.C. 1681, 1682, 1683, 1685, 1686.
    (b) Department means the Department of Agriculture, and includes 
each of its operating agencies and other organizational units.
    (c) Secretary means the Secretary of Agriculture or any officer or 
employees of the Department to whom the Secretary has heretofore 
delegated, or to whom the Secretary may hereafter delegate, the 
authority to act for the Secretary under the regulations in this part.
    (d) Federal financial assistance means any of the following, when 
authorized or extended under a law administered by the Department:
    (1) A grant or loan of Federal financial assistance, including
    (i) The acquisition, construction, renovation, restoration, or 
repair of a building or facility or any portion thereof; and
    (ii) Scholarships, loans, grants, wages or other funds extended to 
any entity for payment to or on behalf of students admitted to that 
entity, or extended directly to such students for payment to that 
entity.
    (2) A grant of Federal real or personal property or any interest 
therein, including surplus property, and the proceeds of the sale or 
transfer of such property, if the Federal share of the fair market value 
of the property is not, upon such sale or transfer, properly accounted 
for to the Federal Government.
    (3) Provision of the services of Federal personnel.
    (4) Sale or lease of Federal property of any interest therein at 
nominal consideration, or at consideration reduced for the purpose of 
assisting the recipient, or in recognition of public interest to served 
thereby, or permission to use Federal property or any interest therein 
without consideration.
    (5) Any other contract, agreement, or arrangement which has as one 
of its purposes the provision of assistance to any education program or 
activity, except a contract of insurance or guaranty.
    (e) Recipient means the State or political subdivision thereof, of 
any instrumentality of a State or political subdivision thereof, any 
public or private agency, institution, or organization, or other entity, 
or any person, to whom

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Federal financial assistance is extended directly or through another 
recipient and which operates an education program or activity which 
receives or benefits from such assistance, including any subunit, 
successor, assignee, or transferee thereof.
    (f) Applicant means one who submits an application, request, or plan 
required to be approved by a Department official, or by a recipient, as 
a condition to becoming a recipient.
    (g) Educational institution means a local educational agency 
(L.E.A.) as defined by section 801(f) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 881), a preschool, a private elementary 
or secondary school, or an applicant or recipient of the type defined by 
paragraph (h), (i), (j), or (k) of this section.
    (h) Institution of graduate higher education means an institution 
which:
    (1) Offers academic study beyond the bachelor of arts or bachelor of 
science degree, whether or not leading to a certificate of any higher 
degree in the liberal arts and sciences; or
    (2) Awards any degree in a professional field beyond the first 
professional degree (regardless of whether the first professional degree 
in such field is awarded by an institution of undergraduate higher 
education or professional education); or
    (3) Awards no degree and offers no further academic study, but 
operates ordinarily for the purpose of facilitating research by persons 
who have received the highest graduate degree in any field of study.
    (i) Institution of undergraduate higher education means:
    (1) An institution offering at least two but less than four years of 
college level study beyond the high school level, leading to a diploma 
or an associate degree, or wholly or principally creditable toward a 
baccalaureate degree; or
    (2) An institution offering academic study leading to a 
baccalaureate degree; or
    (3) An agency or body which certifies credentials or offers degrees, 
but which may or may not offer academic study.
    (j) Institution of professional education means an institution 
(except any institution of undergraduate higher education) which offers 
a program of academic study that leads to a first professional degree in 
a field for which there is a national specialized accrediting agency 
recognized by the United States Commissioner of Education.
    (k) Institution of vocational education means a school or 
institution (except an institution of professional or graduate or 
undergraduate higher education) which has as its primary purpose 
preparation of students to pursue a technical, skilled, or semiskilled 
occupation or trade, or to pursue study in a technical field, whether or 
not the school or institution offers certificates, diplomas, or degrees 
and whether or not it offers fulltime study.
    (l) Administratively separate unit means a school, department or 
college of an educational institution (other than a local educational 
agency) admission to which is independent of admission to any other 
component of such institution.
    (m) Admission means selection for part-time, full-time, special, 
associate, transfer, exchange, or any other enrollment, membership, 
participation, or matriculation in or at an education program or 
activity operated by a recipient.
    (n) Student means a person who has gained admission.
    (o) Transition plan means a plan subject to the approval of the 
United States Commissioner of Education pursuant to section 901(a) of 
the Education Amendments of 1972, under which an educational institution 
operates in making the transition from being an educational institution 
which admits only students of one sex to being one which admits students 
of both sexes without discrimination.
    (p) Educational recipient means an educational institution as 
defined in Sec. 15a.2(g) and every other recipient which has education 
as a significant purpose.
    (q) Education program or activity means:
    (1) Every program or activity operated by an educational recipient; 
and
    (2) Every program or activity operated by other recipients where a 
significant purpose of the finanical assistance is education,

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    (r) United States means the States of the United States, the 
District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, 
Guam, Wake Island, the Canal Zone, and the territories and possessions 
of the United States, and the term State means any one of the foregoing.



Sec. 15a.3  Remedial and affirmative action and self-evaluation.

    (a) Remedial action. If the Secretary finds that a recipient has 
discriminated against persons on the basis of sex in an education 
program or activity, such recipient shall take such remedial action as 
the Secretary deems necessary to overcome the effects of such 
discrimination.
    (b) Affirmative action. In the absence of a finding of 
discrimination on the basis of sex in an education program or activity, 
a recipient may take affirmative action to overcome the effects of 
conditions which resulted in limited participation therein by persons of 
a particular sex. Nothing herein shall be interpreted to alter any 
affirmative action obligations which a recipient may have under 
Executive Order 11246.
    (c) Self-evaluation. Each recipient shall, within one year of the 
effective date of this part:
    (1) Evaluate in terms of the requirements of this part, its current 
policies and practices and the effects thereof concerning admission of 
students, treatment of students, and employment of both academic and 
non-academic personnel working in connection with the recipient's 
education program or activity;
    (2) Modify any of these policies and practices which do not or may 
not meet the requirements of this part; and
    (3) Take appropriate remedial steps to eliminate the effects of any 
discrimination which resulted or may have resulted from adherence to 
these policies and practices.
    (d) Availability of self-evaluation and related materials. 
Recipients shall maintain on file for at least three years following the 
effective date of this part or completion of the evaluation required 
under paragraph (c) of this section, whichever is longer, and shall 
provide to the Secretary upon request, a description of any 
modifications made pursuant to paragraph (c)(1) of this section and of 
any remedial steps taken pursuant to paragraph (c)(3) of this section.



Sec. 15a.4  Assurance required.

    (a) General. Every application for Federal financial assistance for 
any education program or activity shall as condition of its approval 
contain or be accompanied by an assurance from the applicant or 
recipient, satisfactory to the Secretary, that each education program or 
activity operated by the applicant or recipient and to which this part 
applies will be operated in compliance with this part. An assurance of 
compliance with this part shall not be satisfactory to the Secretary if 
the applicant or recipient to whom such assurance applies fails to 
commit itself to take whatever remedial action is necessary in 
accordance with Sec. 15a.3(a) to eliminate existing discrimination on 
the basis of sex or to eliminate the effects of past discrimination 
whether occurring prior or subsequent to the submission to the Secretary 
of such assurance.
    (b) Transfers of property. If a recipient sells or otherwise 
transfers property financed in whole or in part with Federal financial 
assistance to a transferee which operates any education program or 
activity, and the Federal share of the fair market value of the property 
is not upon such sale or transfer properly accounted for to the Federal 
Government both the transferor and the transferee shall be deemed to be 
recipients, subject to the provisions of subpart B.
    (c) Duration of obligation. (1) In the case of Federal financial 
assistance extended to provide real property or structures thereon, such 
assurance shall obligate the recipient or, in the case of a subsequent 
transfer, the transferee, for the period during which the real property 
or structures are used to provide an education program or activity.
    (2) In the case of Federal financial assistance extended to provide 
personal property, such assurances shall obligate the recipient for the 
period during which it retains ownership or possession of the property.

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    (3) In all other cases such assurance shall obligate the recipient 
for the period during which Federal financial assistance is extended.
    (d) Form. The Secretary will specify the form of the assurances 
required by paragraph (a) of this section and the extent to which such 
assurances will be required of the applicant's or recipient's 
subgrantees, contractors, subcontractors, transferees, or successors in 
interest.



Sec. 15a.5  Effect of other requirements.

    (a) Effect of other Federal provisions. The obligations imposed by 
this part are independent of, and do not alter, obligations not to 
discriminate on the basis of sex imposed by Executive Order 11246, as 
amended; title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et 
seq.); the Equal Pay Act (29 U.S.C. 206 and 206(d); and any other act of 
Congress or Federal regulation.
    (b) Effect of State or local law or other requirements. The 
obligation to comply with this part is not obviated or alleviated by any 
State or local law or other requirement which would render any applicant 
or student ineligible, or limit the eligibility of any applicant or 
student, on the basis of sex to practice any occupation or profession.
    (c) Effect of rules or regulations of private organizations. The 
obligation to comply with this part is not obviated or alleviated by any 
rule or regulation of any organization, club, athletic or other league, 
or association which would render any applicant or student ineligible to 
participate or limit the eligibility or participation of any applicant 
or student, on the basis of sex, in any education program or activity 
operated by a recipient and which receives or benefits from Federal 
financial assistance.
    (d) Effect of compliance with HEW regulations. If a recipient is 
covered by the title IX regulations issued by HEW, 45 CFR part 86, and 
has already complied with the HEW requirements corresponding to 
Secs. 15a.3(c), 15a.4(a), 15a.7 (a) and (b), and 15a.8 (a) and (b), then 
the requirements of those sections need not be duplicated in order to 
comply with this part. However, if the requirements have not been 
applied to all programs funded by this Department, then the requirements 
will have to be met as to those programs.



Sec. 15a.6  Effect of employment opportunities.

    The obligation to comply with this part is not obviated or 
alleviated because employment opportunities in any occupation or 
profession are or may be more limited for members of one sex than for 
members of the other sex.



Sec. 15a.7  Designation of responsible employee and adoption of grievance procedures.

    (a) Designation of responsible employee. Each recipient shall 
designate at least one employee to coordinate its efforts to comply with 
and carry out its responsibilities under this part, including any 
investigation of any complaint communicated to such recipient alleging 
its noncompliance with this part or alleging any actions which would be 
prohibited by this part. The recipient shall notify all its students and 
employees of the name, office address and telephone number of the 
employee or employees appointed pursuant to this paragraph.
    (b) Complaint procedure of recipient. A recipient shall adopt and 
publish grievance procedures providing for prompt, and equitable 
resolution of student and employee complaints alleging any action which 
would be prohibited by this part.



Sec. 15a.8  Dissemination of policy.

    (a) Notification of policy. (1) Each recipient shall implement 
specific and continuing steps to notify applicants for admission and 
employment, students and parents of elementary and secondary school 
students, employees, sources of referral of applicants for admission and 
employment and all unions or professional organizations holding 
collective bargaining or professional agreements with the recipient, 
that it does not discriminate on the basis of sex in the educational 
programs or activities which it operates, and that it is required by 
title IX and this part not to discriminate in such a manner. Such 
notification shall contain such information, and be made in such manner, 
as the Secretary finds necessary to apprise such persons of

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the protections against discrimination assured them by title IX and this 
part, but shall state at least that the requirement not to discriminate 
in education programs and activities extends to employment therein and 
to admission thereto unless subpart C does not apply to the recipient, 
and that inquiries concerning the application of title IX and this part 
to such recipient may be referred to the employee designated pursuant to 
Sec. 15a.7 or to the Secretary.
    (2) Each recipient shall make the initial notification required by 
paragraph (a)(1) of this section within 90 days of the effective date of 
this part or of the date this part first applies to such recipient, 
whichever comes later, which notification shall include publication in: 
(i) Local newspapers, (ii) newspapers and magazines operated by such 
recipient or by student, alumnae, or alumni groups for or in connection 
with such recipient; and (iii) memoranda or other written communications 
distributed to every student and employees of such recipient.
    (b) Publications. (1) Each recipient shall prominently include a 
statement of the policy described in paragraph (a) of this section in 
each announcement, bulletin, catalog, or application form which it makes 
available to any person of a type described in paragraph (a) of this 
section, or which is otherwise used in connection with the recruitment 
of students or employees.
    (2) A recipient shall not use or distribute a publication of the 
type described in this paragraph which suggests, by text or 
illustration, that such recipient treats applicants, students, employees 
differently on the basis of sex except as such treatment is permitted by 
this part.
    (c) Distribution. Each recipient shall distribute without 
discrimination on the basis of sex each publication described in 
paragraph (b) of this section, and shall apprise each of its admission 
and employment recruitment representatives of the policy of 
nondiscrimination described in paragraph (a) of this section, and 
require such representatives to adhere to such policy.



                           Subpart B--Coverage



Sec. 15a.11  Application.

    Except as provided in this subpart, this part 15a applies to every 
recipient and to each education program or activity operated by such 
recipient which receives or benefits from Federal financial assistance.



Sec. 15a.12  Educational institutions controlled by religious organizations.

    (a) Application. This part does not apply to an educational 
institution which is controlled by a religious organization to the 
extent application of this part would not be consistent with the 
religious tenets of such organization.
    (b) Exemption. An educational institution which wishes to claim the 
exemption set forth in paragraph (a) of this section shall do so by 
submitting in writing to the Secretary a statement by the highest 
ranking official of the institution identifying the provisions of this 
part which conflict with a specific tenet of the religious organization.



Sec. 15a.13  Military and merchant marine educational institution.

    This part does not apply to an educational institution whose primary 
purpose is the training of individuals for a military service of the 
United States or for the merchant marines.



Sec. 15a.14  Membership practices of certain organizations.

    (a) Social fraternities and sororities. This part does not apply to 
the membership sororities which are exempt from taxation under section 
501(a) of the Internal Revenue Code of 1954, the active membership of 
which consists primarily of students in attendance at institutions of 
higher education.
    (b) YMCA, YWCA, Girl Scouts, Boy Scouts and Camp Fire Girls. This 
part does not apply to the membership practices of the Young Men's 
Christian Association, the Young Women's Christian Association, the Girl 
Scouts, the Boy Scouts and Camp Fire Girls.
    (c) Voluntary youth service organizations. This part does not apply 
to the membership practices of voluntary youth service organizations 
which are

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exempt from taxation under section 501(a) of the Internal Revenue Code 
of 1954 and the membership of which has been traditionally limited to 
members of one sex and principally to persons of less than nineteen 
years of age.



Sec. 15a.15  Exempt activities.

    (a) These regulations shall not apply to:
    (1) Any program or activity of the American Legion undertaken in 
connection with the organization or operation of any Girls State 
Conference, Girls Nation Conference, Boys State Conference, Boys Nation 
Conference, or
    (2) The selection of students to attend any such conference.
    (b) These regulations shall not preclude father-son or mother-
daughter activities at an educational institution, but if such 
activities are provided for students of one sex, opportunities for 
reasonably comparable activities shall be provided for students of the 
other sex.
    (c) These regulations shall not apply with respect to any 
scholarship or other financial assistance awarded by an institution of 
higher education to any individual because such individual has received 
such award in any pageant in which the attainment of such award is based 
upon a combination of factors related to the personal appearance, poise, 
and talent of such individual and in which participation is limited to 
individuals of one sex only, so long as such pageant is in compliance 
with other nondiscrimination provisions of Federal law.



Sec. 15a.16  Admission.

    (a) Admission to educational institutions prior to June 24, 1973, 
are not covered by this part.
    (b) Administratively separate units. For the purpose only of this 
section, Secs. 15a.17 and 15a.18, and subpart C, each administratively 
separate unit shall be deemed to be an educational institution.
    (c) Application of subpart C. Except as provided in paragraphs (c) 
and (d) of this section, subpart C applies to each recipient. A 
recipient to which subpart C applies shall not discriminate on the basis 
of sex in admission or recruitment in violation of that subpart.
    (d) Educational institutions. Except as provided in paragraph (e) of 
this section as to recipients which are educational institutions, 
subpart C applies only to institutions of vocational education, 
professional education, graduate higher education, and public 
institutions of undergraduate higher education.
    (e) Public institutions of undergraduate higher education. Subpart C 
does not apply to any public institution of undergraduate higher 
education which traditionally and continually from its establishment has 
had a policy of admitting only students of one sex.



Sec. 15a.17  Education institutions eligible to submit transition plans.

    (a) Applications. This section applies to each educational 
institution to which subpart C applies which:
    (1) Admitted only students of one sex as regular students as of June 
23, 1972; or
    (2) Admitted only students of one sex as regular students as of June 
23, 1965, but thereafter admitted as regular students, students of the 
sex not admitted prior to June 23, 1965.
    (b) Provision for transition plans. An educational institution to 
which this section applies shall not discriminate on the basis of sex in 
admission or recruitment in violation of subpart C unless it is carrying 
out a transition plan approved by the United States Commissioner of 
Education as described in Sec. 15a.18, which plan provides for the 
elimination of such discrimination by the earliest practicable date but 
in no event later than June 23, 1979.



Sec. 15a.18  Transition plans.

    (a) Submission of plans. An institution to which Sec. 15a.17 applies 
and which is composed of more than one administratively separate unit 
may submit either a single transition plan applicable to all such units, 
or a separate transition plan applicable to each such unit.
    (b) Content of plans. In order to be approved by the United States 
Commissioner of Education, a transition plan shall:
    (1) State the name, address, and Federal Interagency Committee on 
Education (FICE) Code of the educational institution submitting such 
plan, the

[[Page 384]]

administratively separate units to which the plan is applicable, and the 
name, address, and telephone number of the person to whom questions 
concerning the plan may be addressed. The person who submits the plan 
shall be the chief administrator or president of the institution, or 
another individual legally authorized to bind the institution to all 
actions set forth in the plan.
    (2) State whether the educational institution or administratively 
separate unit admits students of both sexes, as regular students and, if 
so, when it began to do so.
    (3) Identify and describe with respect to the educational 
institution or administratively separate unit any obstacles to admitting 
students without discrimination on the basis of sex.
    (4) Describe in detail the steps necessary to eliminate as soon as 
practicable each obstacle so identified and indicate the schedule for 
taking these steps and the individual directly responsible for their 
implementation.
    (5) Include estimates of the number of students, by sex, expected to 
apply for, be admitted to, and enter each class during the period 
covered by the plan.
    (c) Nondiscrimination. No policy or practice of a recipient to which 
Sec. 15a.17 applies shall result in treatment of applicants to or 
students of such recipient in violation of subpart C unless such 
treatment is necessitated by an obstacle identified in paragraph (b)(3) 
of this section and a schedule for eliminating that obstacle has been 
provided as required by paragraph (b)(4) of this section.
    (d) Effects of past exclusion. To overcome the effects of past 
exclusion of students on the basis of sex, each educational institution 
to which Sec. 15a.17 applies shall include in its transition plan, and 
shall implement, specific steps designed to encourage individuals of the 
previously excluded sex to apply for admission to such institution. Such 
steps shall include instituting recruitment programs which emphasize the 
institution's commitment to enrolling students of the sex previously 
excluded.



     Subpart C--Discrimination on the Basis of Sex in Admission and 
                         Recruitment Prohibited



Sec. 15a.21  Admission.

    (a) General. No person shall, on the basis of sex, be denied 
admission, or be subjected to discrimination in admission, by any 
recipient to which this subpart applies, except as provided in 
Secs. 15a.17 and 15a.18.
    (b) Specific prohibitions. (1) In determining whether a person 
satisfies any policy or criterion for admission, or in making any offer 
of admission, a recipient to which this subpart applies shall not:
    (i) Give preference to one person over another on the basis of sex, 
by ranking applicants separately on such basis, or otherwise,
    (ii) Apply numerical limitations upon the number or proportion of 
persons of either sex who may be admitted; or
    (iii) Otherwise treat one individual differently from another on the 
basis of sex.
    (2) A recipient shall not administer or operate any test or other 
criterion for admission which has a disproportionately adverse effect on 
persons on the basis of sex unless the use of such test or criterion is 
shown to predict validly success in the education program or activity in 
question and alternative tests or criteria which do not have such a 
disproportionately adverse effect are shown to be unavailable.
    (c) Prohibitions relating to marital or parental status. In 
determining whether a person satisfies any policy or criterion for 
admission, or in making any offer of admission, a recipient to which 
this subpart applies:
    (1) Shall not apply any rule concerning the actual or potential 
parental, family, or marital status of a student or applicant which 
treats persons differently on the basis of sex;
    (2) Shall not discriminate against or exclude any person on the 
basis of pregnancy, childbirth, termination of pregnancy, or recovery 
therefrom, or establish or follow any rule or practice which so 
discriminates or excludes;
    (3) Shall treat disabilities related to pregnancy, childbirth, 
termination of pregnancy, or recovery therefrom in the same manner and 
under the same

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policies as any other temporary disability or physical condition; and
    (4) Shall not make pre-admission inquiry as to the marital status of 
an applicant for admission, including whether such applicant is ``Miss'' 
or ``Mrs.'' A recipient may make pre-admission inquiry as to the sex of 
an applicant for admission, but only if such inquiry is made equally of 
such applicants of both sexes and if the results of such inquiry are not 
used in connection with discrimination prohibited by this part.



Sec. 15a.22  Preference in admission.

    A recipient to which the subpart applies shall not give preference 
to applicants for admission, on the basis of attendance at any 
educational institution or other school or entity which admits as 
students only or predominantly members of one sex, if the giving of such 
preference has the effect of discriminating on the basis of sex in 
violation of this subpart.



Sec. 15a.23  Recruitment.

    (a) Nondiscriminatory recruitment. A recipient to which this subpart 
applies shall not discriminate on the basis of sex in the recruitment 
and admission of students. A recipient may be required to undertake 
additional recruitment efforts for one sex as remedial action pursuant 
to Sec. 15a.3(a), and may choose to undertake such efforts as 
affirmative action pursuant to Sec. 15a.3(b).
    (b) Recruitment at certain institutions. A recipient to which this 
subpart applies shall not recruit primarily or exclusively at education 
institutions, schools or entities which admit as students only or 
predominantly members of one sex, if such actions have the effect of 
discriminating on the basis of sex in violation of this subpart.



Subpart D--Discrimination on the Basis of Sex in Education Programs and 
                          Activities Prohibited



Sec. 15a.31  Education programs and activities.

    (a) General. Except as provided elsewhere in the part, no person 
shall, on the basis of sex, be excluded from participation in, be denied 
the benefits of, or be subjected to discrimination under any academic, 
extracurricular, research, occupational training, or other education 
program or activity operated by a recipient which receives or benefits 
from Federal financial assistance. This subpart does not apply to 
actions of a recipient in connection with admission of its students to 
an education program or activity of (1) a recipient to which subpart C 
does not apply, or (2) an entity, not a recipient, to which subpart C 
would not apply if the entity were a recipient.
    (b) Specific prohibitions. Except as provided in this subpart, in 
providing any aid, benefit, or service to a student, a recipient shall 
not, on the basis of sex:
    (1) Treat one person differently from another in determining whether 
such person satisfies any requirement or condition for the provision of 
such aid, benefit, or service;
    (2) Provide different aid, benefits, or services or provide aid, 
benefits, or services in a different manner;
    (3) Deny any person any such aid, benefit, or service;
    (4) Subject any person to separate or different rules or behavior, 
sanctions, or other treatment;
    (5) Discriminate against any person in the application of any rules 
of appearance;
    (6) Apply any rule concerning the domicile or residence of a 
student, or applicant, including eligibility for in-State fees and 
tuitions;
    (7) Aid or perpetuate discrimination against any person by providing 
significant assistance to any agency, organization, or person which 
discriminates on the basis of sex in providing any aid, benefit or 
service to students or employees;
    (8) Otherwise limit any person in the enjoyment of any right, 
privilege, advantage, or opportunity.
    (c) Assistance administered by a recipient educational institution 
to study at a foreign institution. A recipient educational institution 
may administer or assist, in the administration of scholarships, 
fellowships, or other awards established by foreign or domestic wills, 
trusts, or similar legal instruments, or by acts of foreign governments 
and restricted to members of one sex, which are designed to provide

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opportunities to study abroad, and which are awarded to students who are 
already matriculating at or who are graduates of the recipient 
institution, provided a recipient educational institution which 
administers or assists in the administration of such scholarships, 
fellowships, or other awards which are restricted to members of one sex 
provides, or otherwise makes available reasonable opportunities for 
similar studies for members of the other sex. Such opportunities may be 
derived from either domestic or foreign sources.
    (d) Programs not operated by recipient. (1) This paragraph applies 
to any recipient which requires participation by any applicant, student, 
or employee in any education program or activity not operated wholly by 
such recipient, or which facilitates, permits, or considers such 
participation as part of or equivalent to an education program or 
activity operated by such recipient, including participation in 
education consortia and cooperative employment and student-teaching 
assignments.
    (2) Such recipient: (i) Shall develop and implement a procedure 
designed to assure itself that the operator or sponsor of such other 
education program or activity takes no action affecting any applicant, 
student or employee of such recipient which this part would prohibit 
such recipient from taking; and (ii) shall not facilitate, require, 
permit, or consider such participation if such action occurs.



Sec. 15a.32  Housing.

    (a) General. A recipient shall not, on the basis of sex, apply 
different rules or regulations, impose different fees or requirements, 
or offer different services or benefits related to housing, except as 
provided in this section (including housing provided only to married 
students).
    (b) Housing provided by recipient. (1) A recipient may provide 
separate housing on the basis of sex.
    (2) Housing provided by a recipient to students of one sex, when 
compared to that provided to students of the other sex, shall be as a 
whole:
    (i) Proportionate in quantity to the number of students of that sex 
applying for such housing; and
    (ii) Comparable in quality and cost to the student.
    (c) Other housing. (1) A recipient shall not on the basis of sex, 
administer different policies or practices concerning occupancy by its 
students of housing other than provided by such recipient.
    (2) A recipient which through solicitation, listing, approval of 
housing, or otherwise, assists any agency, organization, or person in 
making housing available to any of its students, shall take such 
reasonable action as may be necessary to assure itself that such housing 
as provided to students of one sex, when compared to that provided to 
students of the other sex, is as a whole: (i) Proportionate in quantity 
and (ii) comparable in quality and cost to the student. A recipient may 
render such assistance to any agency, organization, or person which 
provides all or part of such housing to students only of one sex.



Sec. 15a.33  Comparable facilities.

    A recipient may provide separate toilet, locker room, and shower 
facilities on the basis of sex, but such facilities provided for 
students of one sex shall be comparable to such facilities provided for 
students of the other sex.



Sec. 15a.34  Access to course offerings.

    A recipient shall not provide any course or otherwise carry out any 
of its education program or activity separately on the basis of sex, or 
require or refuse participation therein by any of its students on such 
basis, including health, physical education, industrial, business, 
vocational, technical, home economics, music and adult education 
courses.
    (a) With respect to classes and activities in physical education at 
the elementary school level, the recipient shall comply fully with this 
section as expeditiously as possible but in no event later than one year 
from the effective date of this regulation. With respect to physical 
education classes and activities at the secondary and post-secondary 
levels, the recipient shall comply fully with this section as 
expeditiously as possible but in no event later than three years from 
the effective date of this regulation.

[[Page 387]]

    (b) This section does not prohibit grouping of students in physical 
education classes and activities by ability as assessed by objective 
standards of individual performance developed and applied without regard 
to sex.
    (c) This section does not prohibit separation of students by sex 
within physical education classes or activities during participation in 
wrestling, boxing, rugby, ice hockey, football, basketball and other 
sports, the purpose or major activity of which involves bodily contact.
    (d) Where use of a single standard of measuring skill or progress in 
a physical education class has an adverse effect on members of one sex, 
the recipient shall use appropriate standards which do not have such 
effect.
    (e) Portions of classes in elementary and secondary schools which 
deal exclusively with human sexuality may be conducted in separate 
sessions for boys and girls.
    (f) Recipients may make requirements based on vocal range or quality 
which may result in a chorus or choruses of one or predominantly one 
sex.



Sec. 15a.35  Access to schools operated by L.E.A.s.

    A recipient which is a local educational agency shall not, on the 
basis of sex, exclude any person from admission to:
    (a) Any institution of vocational education operated by such 
recipient; or
    (b) Any other school or educational unit operated by such recipient, 
unless such recipient otherwise makes available to such person, pursuant 
to the same policies and criteria of admission, courses, services, and 
facilities comparable to each course, service, and facility offered in 
or through such schools.



Sec. 15a.36  Counseling and use of appraisal and counseling materials.

    (a) Counseling. A recipient shall not discriminate against any 
person on the basis of sex in the counseling or guidance of students or 
applicants for admission.
    (b) Use of appraisal and counseling materials. A recipient which 
uses testing or other materials for appraising or counseling students 
shall not use different materials for students on the basis of their sex 
or use materials which permit or require different treatment of students 
on such basis unless such different materials cover the same occupations 
and interest areas and the use of such different materials is shown to 
be essential to eliminate sex bias. Recipients shall develop and use 
internal procedures for ensuring that such materials do not discriminate 
on the basis of sex. Where the use of a counseling test or other 
instrument results in a substantially disproportionate number of members 
of one sex in any particular course of study or classification, the 
recipient shall take such action as is necessary to assure itself that 
such disproportion is not the result of discrimination in the instrument 
or its application.
    (c) Disproportion in classes. Where a recipient finds that a 
particular class contains a substantially disproportionate number of 
individuals of one sex, the recipient shall take such action as is 
necessary to assure itself that such disproportion is not the result of 
discrimination on the basis of sex in counseling or appraisal materials 
or by counselors.



Sec. 15a.37  Financial assistance.

    (a) General. Except as provided in paragraphs (b) and (c) of this 
section, in providing financial assistance to any of its students, a 
recipient shall not:
    (1) On the basis of sex, provide different amounts or types of such 
assistance, limit eligibility for such assistance which is of any 
particular type or source, apply different criteria or otherwise 
discriminate;
    (2) Through solicitation, listing, approval, provision of facilities 
or other services, assist any foundation, trust, agency, organization, 
or person which provides assistance to any of such recipient's students 
in a manner which discriminates on the basis of sex; or
    (3) Apply any rule or assist in application of any rule concerning 
eligibility for such assistance which treats persons of one sex 
differently from persons of the other sex with regard to marital or 
parental status.
    (b) Financial aid established by certain legal instruments. (1) A 
recipient may

[[Page 388]]

administer or assist in the administration of scholarships, fellowships, 
or other forms of financial assistance established pursuant to domestic 
or foreign wills, trusts, bequests or similar legal instruments or by 
acts of a foreign government which require that awards be made to 
members of a particular sex specified therein: Provided, That the 
overall effect of the award of such sex-restricted scholarships, 
fellowships and other forms of financial assistance does not 
discriminate on the basis of sex.
    (2) To ensure nondiscriminatory awards of assistance as required in 
paragraph (b)(1) of this section, recipients shall develop and use 
procedures under which:
    (i) Students are selected for award of financial assistance on the 
basis of nondiscriminatory criteria and not on the basis of availability 
of funds restricted to members of a particular sex;
    (ii) An appropriate sex-restricted scholarship, fellowship, or other 
form of financial assistance is allocated to each student selected under 
paragraph (b)(2)(i) of this section; and
    (iii) No student is denied the award for which he or she was 
selected under paragraph (b)(2)(i) of this section because of the 
absence of a scholarship, fellowship, or other form of financial 
assistance designed for a member of that student's sex.
    (c) Athletic scholarships. (1) To the extent that a recipient awards 
athletic scholarships or grants-in-aids, it must provide reasonable 
opportunities for such awards for members of each sex in proportion to 
the number of students of each sex participating in interscholastic or 
intercollegiate athletics.
    (2) Separate athletic scholarships or grants-in-aid for members of 
each sex may be provided as part of separate athletic teams for members 
of each sex to the extent consistent with this paragraph and 
Sec. 15a.41.



Sec. 15a.38  Employment assistance to students.

    (a) Assistance by recipient in making available outside employment. 
A recipient which assists any agency, organization or person in making 
employment available to any of its students:
    (1) Shall assure itself that such employment is made available 
without discrimination on the basis of sex; and
    (2) Shall not render such services to any agency, organization, or 
person which discriminates on the basis of sex in its employment 
practices.
    (b) Employment of students by recipients. A recipient which employs 
any of its students shall not do so in a manner which violates subpart 
E.



Sec. 15a.39  Health and insurance benefits and services.

    In providing a medical, hospital, accident, or life insurance 
benefit, service, policy, or plan to any of its students, a recipient 
shall not discriminate on the basis of sex, or provide such benefit, 
service, policy, or plan in a manner which would violate subpart E if it 
were provided to employees of the recipient. This section shall not 
prohibit a recipient from providing any benefit or service which may be 
used by a different proportion of students of one sex than of the other, 
including family planning services. However, any recipient which 
provides full coverage health service shall provide gynecological care.



Sec. 15a.40  Marital or parental status.

    (a) Status generally. A recipient shall not apply any rule 
concerning a student's actual or potential parental, family, or marital 
status which treats students differently on the basis of sex.
    (b) Pregnancy and related conditions. (1) A recipient shall not 
discriminate against any student, or exclude any student from its 
education program or activity, including any class or extracurricular 
activity on the basis of such student's pregnancy, childbirth, false 
pregnancy, termination of pregnancy or recovery therefrom, unless the 
student requests voluntarily to participate in a separate portion of the 
program or activity of the recipient.
    (2) A recipient may require such a student to obtain the 
certification of a physician that the student is physically and 
emotionally able to continue participation in the normal education 
program or activity so long as such a certification is required of all 
students

[[Page 389]]

for other physical or emotional conditions requiring the attention of a 
physician.
    (3) A recipient which operates a portion of its education program or 
activity separately for pregnant students, admittance to which is 
completely voluntary on the part of the student as provided in paragraph 
(b)(1) of this section shall ensure that the instructional program in 
the separate program is comparable to that offered to non-pregnant 
students.
    (4) A recipient shall treat pregnancy, childbirth, false pregnancy, 
termination of pregnancy and recovery therefrom in the same manner and 
under the same policies as any other temporary disability with respect 
to any medical or hospital benefit, service, plan or policy which such 
recipient administers, operates, offers, or participates in with respect 
to students admitted to the recipient's educational program or activity.
    (5) In the case of a recipient which does not maintain a leave 
policy for its students, or in the case of a student who does not 
otherwise qualify for leave under such a policy, a recipient shall treat 
pregnancy, childbirth, false pregnancy, termination of pregnancy and 
recovery therefrom as a justification for a leave of absence for so long 
a period of time as is deemed medically necessary by the student's 
physician, at the conclusion of which the student shall be reinstated to 
the status which she held when the leave began.



Sec. 15a.41  Athletics.

    (a) General. No person shall, on the basis of sex, be excluded from 
participation in, be denied the benefits of, be treated differently from 
another person or otherwise be discriminated against in any 
interscholastic, intercollegiate, club or intramural athletics, offered 
by the recipient, and no recipient shall provide any such athletics 
separately on such basis.
    (b) Separate teams. Notwithstanding the requirements of paragraph 
(a) of this section, a recipient may operate or sponsor separate teams 
for members of each sex where selection for such teams is based upon 
competitive skill or the activity involved is a contact sport. However, 
where a recipient operates or sponsors a team in a particular sport for 
members of one sex but operates or sponsors no such team for members of 
the other sex, and athletic opportunities for members of that sex have 
previously been limited, members of the excluded sex must be allowed to 
try-out for the team offered unless the sport involved is a contact 
sport. For the purposes of this part, contact sports include boxing, 
wrestling, rugby, ice hockey, football, basketball, and other sports the 
purpose or major activity of which involves bodily contact.
    (c) Equal opportunity. A recipient which operates or sponsors 
interscholastic, intercollegiate, club or intramural athletics shall 
provide equal athletic opportunity for members of both sexes. In 
determining whether equal opportunities are available the Secretary will 
consider, among other factors:
    (1) Whether the selection of sports and levels of competition 
effectively accommodate the interests and abilities of members of both 
sexes;
    (2) The provision of equipment and supplies;
    (3) Scheduling of games and practice time;
    (4) Travel and per diem allowance;
    (5) Opportunity to receive coaching and academic tutoring;
    (6) Assignment and compensation of coaches and tutors;
    (7) Provision of locker rooms, practice and competitive facilities;
    (8) Provision of medical and training facilities and services;
    (9) Provision of housing and dining facilities and services;
    (10) Publicity.

Unequal aggregate expenditures for members of each sex or unequal 
expenditures for male and female teams if a recipient operates or 
sponsors separate teams will not constitute noncompliance with this 
section, but the Secretary may consider the failure to provide necessary 
funds for teams for one sex in assessing equality of opportunity for 
members of each sex.
    (d) Adjustment period. A recipient which operates or sponsors 
interscholastic, intercollegiate, club or intramural athletics at the 
elementary school level shall comply fully with the section as 
expeditiously as possible but

[[Page 390]]

in no event later than one year from the effective date of this 
regulation. A recipient which operates or sponsors interscholastic, 
intercollegiate, club or intramural athletics at the secondary or post-
secondary school level shall comply fully with this section as 
expeditiously as possible but in no event later than three years from 
the effective date of this regulation.



Sec. 15a.42  Textbooks and curricular material.

    Nothing in this regulation shall be interpreted as requiring or 
prohibiting or abridging in any way the use of particular textbooks or 
curricular materials.



Subpart E--Discrimination on the Basis of Sex in Employment in Education 
                   Programs and Activities Prohibited



Sec. 15a.51  Employment.

    (a) General. (1) No person shall, on the basis of sex, be excluded 
from participation in, be denied the benefits of, or be subjected to 
discrimination in employment, or recruitment, consideration, or 
selection therefor, whether full-time or part-time, under any education 
program or activity operated by a recipient which receives or benefits 
from Federal financial assistance.
    (2) A recipient shall make all employment decisions in any education 
program or activity operated by such recipient in a nondiscriminatory 
manner and shall not limit, segregate, or classify applicants or 
employees in any way which could adversely affect any applicant's or 
employee's employment opportunities or status because of sex.
    (3) A recipient shall not enter into any contractual or other 
relationship which directly or indirectly has the effect of subjecting 
employees or students to discrimination prohibited by this subpart, 
including relationships with employment and referral agencies, with 
labor unions, and with organizations providing or administering fringe 
benefits to employees of the recipient.
    (4) A recipient shall not grant preferences to applicants for 
employment on the basis of attendance at any educational institution or 
entity which admits as students only or predominantly members of one 
sex, if the giving of such preferences has the effect of discriminating 
on the basis of sex in violation of this part.
    (b) Application. The provisions of this subpart apply to:
    (1) Recruitment, advertising, and the process of application for 
employment;
    (2) Hiring, upgrading, promotion, consideration for and award of 
tenure, demotion, transfer, layoff, termination, application of nepotism 
policies, right of return from layoff, and rehiring;
    (3) Rates of pay or any other form of compensation, and changes in 
compensation;
    (4) Job assignments, classifications and structure, including 
position descriptions, lines of progression, and seniority lists;
    (5) The terms of any collective bargaining agreement;
    (6) Granting and return from leaves of absence, leave for pregnancy, 
childbirth, false pregnancy, termination of pregnancy, leave for persons 
of either sex to care for children or dependents, or any other leave;
    (7) Fringe benefits available by virtue of employment, whether or 
not administered by the recipient;
    (8) Selection and financial support for training, including 
apprenticeship, professional meetings, conferences, and other related 
activities, selection for tuition assistance, selection for sabbaticals 
and leaves of absence to pursue training;
    (9) Employer-sponsored activities, including social or recreational 
programs; and
    (10) Any other term, condition, or privilege of employment.



Sec. 15a.52  Employment criteria.

    A recipient shall not administer or operate any test or other 
criterion for any employment opportunity which has a disproportionately 
adverse effect on persons on the basis of sex unless:
    (a) Use of such test or other criterion is shown to predict validly 
successful performance in the position in question; and
    (b) Alternative tests or criteria for such purpose, which do not 
have such

[[Page 391]]

disproportionately adverse effect, are shown to be unavailable.



Sec. 15a.53  Recruitment.

    (a) Nondiscriminatory recruitment and hiring. A recipient shall not 
discriminate on the basis of sex in the recruitment and hiring of 
employees. Where a recipient has been found to be presently 
discriminating on the basis of sex in the recruitment or hiring of 
employees, or has been found to have in the past so discriminated, the 
recipient shall recruit members of the sex so discriminated against so 
as to overcome the effects of such past or present discrimination.
    (b) Recruitment patterns. A recipient shall not recruit primarily or 
exclusively at entities which furnish as applicants only or 
predominantly members of one sex if such actions have the effect of 
discriminating on the basis of sex in violation of this subpart.



Sec. 15a.54  Compensation.

    A recipient shall not make or enforce any policy or practice which, 
on the basis of sex:
    (a) Makes distinctions in rates of pay or other compensation;
    (b) Results in the payment of wages to employees of one sex at a 
rate less than that paid to employees of the opposite sex for equal work 
on jobs the performance of which requires equal skill, effort, and 
responsibility, and which are performed under similar working 
conditions.



Sec. 15a.55  Job classification and structure.

    A recipient shall not:
    (a) Classify a job as being for males or for females;
    (b) Maintain or establish separate lines of progression, seniority 
lists, career ladders, or tenure systems based on sex; or
    (c) Maintain or establish separate lines of progression, seniority 
systems, career ladders, or tenure systems for similar jobs, position 
descriptions, or job requirements which classify persons on the basis of 
sex, unless sex is a bona-fide occupational qualification for the 
positions in question as set forth in Sec. 15a.61.



Sec. 15a.56  Fringe benefits.

    (a) ``Fringe benefits'' defined. For purposes of this part, fringe 
benefits means: Any medical, hospital, accident, life insurance or 
retirement benefit, service, policy or plan, any profit-sharing or bonus 
plan, leave and any other benefit or service of employment not subject 
to the provision of Sec. 15a.54.
    (b) Prohibitions. A recipient shall not:
    (1) Discriminate on the basis of sex with regard to making fringe 
benefits available to employees or make fringe benefits available to 
spouses, families, or dependents of employees differently upon the basis 
of the employee's sex;
    (2) Administer, operate, offer, or participate in a fringe benefit 
plan which does not provide either for equal periodic benefits for 
members of each sex or for equal contributions to the plan by such 
recipient for members of each sex; or
    (3) Administer, operate, offer, or participate in a pension or 
retirement plan which establishes different optional or compulsory 
retirement ages based on sex or which otherwise discriminates in 
benefits on the basis of sex.



Sec. 15a.57  Marital or parental status.

    (a) General. A recipient shall not apply any policy or take any 
employment action:
    (1) Concerning the potential marital, parental, or family status of 
an employee or applicant for employment which treats persons differently 
on the basis of sex; or
    (2) Which is based upon whether an employee or applicant for 
employment is the head of household or principal wage earner in such 
employee's or applicant's family unit.
    (b) Pregnancy. A recipient shall not discriminate against or exclude 
from employment any employee or applicant for employment on the basis of 
pregnancy, childbirth, false pregnancy, termination of pregnancy, or 
recovery therefrom.
    (c) Pregnancy as a temporary disability. A recipient shall treat 
pregnancy, childbirth, false pregnancy, termination of pregnancy, and 
recovery therefrom and any temporary disability resulting therefrom as 
any other temporary disability for all job-related purposes, including 
commencement,

[[Page 392]]

duration and extensions of leave, payment of disability income, accrual 
of seniority and any other benefit or service, and reinstatement, and 
under any fringe benefit offered to employees by virtue of employment.
    (d) Pregnancy leave. In the case of a recipient which does not 
maintain a leave policy for its employees, or in the case of an employee 
with insufficient leave or accrued employment time to qualify for leave 
under such a policy, a recipient shall treat pregnancy, childbirth, 
false pregnancy, termination of pregnancy and recovery therefrom as a 
justification for a leave of absence without pay for a reasonable period 
of time, at the conclusion of which the employee shall be reinstated to 
the status which she held when the leave began or to a comparable 
position, without decrease in rate of compensation or loss of 
promotional opportunities, or any other right or privilege of 
employment.



Sec. 15a.58  Effect of State or local law or other requirements.

    (a) Prohibitory requirements. The obligation to comply with this 
subpart is not obviated or alleviated by the existence of any State or 
local law or other requirement which imposes prohibitions or limits upon 
employment of members of one sex which are not imposed upon members of 
the other sex.
    (b) Benefits. A recipient which provides any compensation service, 
or benefit to members of one sex pursuant to a State or local law or 
other requirement shall provide the same compensation, service, or 
benefit to members of the other sex.



Sec. 15a.59  Advertising.

    A recipient shall not in any advertising related to employment 
indicate preference, limitation, specification, or discrimination based 
on sex unless sex is a bona-fide occupational qualification for the 
particular job in question.



Sec. 15a.60  Pre-employment inquiries.

    (a) Marital status. A recipient shall not make pre-employment 
inquiry as to the marital status of an applicant for employment, 
including whether such applicant is ``Miss or Mrs.''
    (b) Sex. A recipient may make pre-employment inquiry as to the sex 
of an applicant for employment, but only if such inquiry is made equally 
of such applicants of both sexes and if the results of such inquiry are 
not used in connection with discrimination prohibited by this part.



Sec. 15a.61  Sex as a bona-fide occupational qualification.

    A recipient may take action otherwise prohibited by this subpart 
provided it is shown that sex is a bona fide occupational qualification 
for that action, such that consideration of sex with regard to such 
action is essential to successful operation of the employment function 
concerned. A recipient shall not take action pursuant to this section 
which is based upon alleged comparative employment characteristics or 
stereotyped characterizations of one or the other sex, or upon 
preference based on sex of the recipient, employees, students, or other 
persons, but nothing contained in this section shall prevent a recipient 
from considering an employee's sex in relation to employment in a locker 
room or toilet facility used only by members of one sex.



                     Subpart F--Procedures (Interim)



Sec. 15a.71  Interim procedures.

    For the purposes of implementing this part during the period between 
its effective date and the final issuance by the Department of a 
consolidated procedural regulation applicable to title IX and other 
civil rights authorities administered by the Department, the procedural 
provisions applicable to title VI of the Civil Rights Act of 1964 are 
hereby adopted and incorporated herein by reference. These procedures 
may be found at 7 CFR 15.5--15.11 and 7 CFR 15.60 et seq.

                                Appendix

    Programs covered by Title IX include, but are not limited to, the 
following:
    1. Community Facilities Program. 7 U.S.C. 1926(a)(1).
    2. Permits for use of National Forests. 16 U.S.C. 497; 16 U.S.C. 
432; 7 U.S.C. 1011(c), (d).
    3. Permits for use of Government-owned improvements and land used 
therewith by

[[Page 393]]

other than individuals at a nominal charge. 16 U.S.C. 580d.
    4. Revenue sharing payment to States: (a) Payment of 25 percent of 
National Forest receipts to States for schools and roads. 16 U.S.C. 500. 
(b) Payment to New Mexico and Arizona of proportion of National Forest 
receipts for common-school fund. Sections 6 and 24, Act of June 20, 
1910. 36 Stat. 557, 562, 573. (c) Payment of 25 percent of net revenues 
from Title III, Bankhead-Jones Farm Tenant Act, lands to counties for 
school and road purposes. 7 U.S.C. 1012.
    5. Technical assistance in forest management. 16 U.S.C. 568c, 568d.
    6. General forestry assistance. Annual Appropriation Acts commencing 
with the Department Appropriation Act of 1905; Organic Act of 1862, 7 
U.S.C. 2201.
    7. Financial assistance to private timber organizations to carry out 
timber development programs. 40 U.S.C. 204.
    8. Advance of funds for cooperative research. 16 U.S.C. 581i-l.
    9. Research cooperation. 16 U.S.C. 581 et seq.
    10. Grants for research. 7 U.S.C. 450i.
    11. Food Distribution Program. 7 U.S.C. 612c, 1431; 42 U.S.C. 1755, 
1758, 1761; 42 U.S.C. 1777.
    12. National School Lunch Program. 42 U.S.C. 1751 et seq.
    13. Special Milk Program. 42 U.S.C. 1772.
    14. School Breakfast Program. 42 U.S.C. 1773.
    15. Special Food Service Program for Children. 42 U.S.C. 1761.
    16. Special Supplemental Food Program for Women, Infants, and 
Children. 42 U.S.C. 1786.
    17. Cash grants to States for nutrition education. 42 U.S.C. 1787, 
1788.
    18. Advisory services studies for farmers cooperatives. 7 U.S.C. 
451-457.
    19. Cooperative Agricultural Extension Service. 7 U.S.C. 341-349; 
D.C. Code 31-1609.
    20. Resource Conservation and Development Program. 16 U.S.C. 590a.
    21. Educational Aspects of Agricultural Marketing Act, 7 U.S.C. 
1623-1624.
    22. Hatch Act research programs. 7 U.S.C. 361a-i.
    23. Experiment Station Research Facilities. 7 U.S.C. 390a-k.
    24. McIntire-Stennis Cooperative Forestry Research Program. 16 
U.S.C. 582a-582a-7.
    25. Rural Development and Small Farm Research and Education Program, 
7 U.S.C. 2661 et seq.
    26. Youth Conservation Corps. 16 U.S.C. 1701 et seq.
    27. Young Adult Conservation Corps. 29 U.S.C. 993 et seq.
    28. Agricultural Research and Education Grants Program. 7 U.S.C. 
3151 et seq.
    29. National Food and Human Nutrition Research and Extension 
Program. 7 U.S.C. 3171 et seq.
    30. Animal Health and Disease Research Program. 7 U.S.C. 3191 et 
seq.
    31. The 1890 Land-Grant College Funding Program. 7 U.S.C. 3221 et 
seq.
    32. Solar Energy Research and Development Program. 7 U.S.C. 3241, 
3261-62, 3271.



PART 15b--NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS AND ACTIVITIES RECEIVING FEDERAL FINANCIAL ASSISTANCE--Table of Contents




                      Subpart A--General Provisions

Sec.
15b.1  Purpose.
15b.2  Applicability.
15b.3  Definitions.
15b.4  Discrimination prohibited.
15b.5  Assurances required.
15b.6  Designation of responsible employee and adoption of grievance 
          procedures.
15b.7  Notice of nondiscrimination and accessible services.
15b.8  Remedial action, voluntary action, and self-evaluation.
15b.9  Effect of State or local law or other requirements, and effect of 
          employment opportunities.
15b.10  Effect of compliance with regulations of other Federal agencies.

                     Subpart B--Employment Practices

15b.11  Applicability.
15b.12  Discrimination prohibited.
15b.13  Reasonable accommodation.
15b.14  Employment criteria.
15b.15  Preemployment inquiries.

                    Subpart C--Program Accessibility

15b.16  Applicability.
15b.17  Discrimination prohibited.
15b.18  Existing facilities.
15b.19  New construction.

   Subpart D--Preschool, Elementary, Secondary, Adult, and Extension 
                                Education

15b.20  Applicability
15b.21  Location and notification.
15b.22  Free appropriate public education.
15b.23  Educational setting.
15b.24  Evaluation and placement.
15b.25  Procedural safeguards.
15b.26  Nonacademic services.
15b.27  Extension education.
15b.28  Private education programs.

                   Subpart E--Postsecondary Education

15b.29  Applicability.
15b.30  Admissions and recruitment.
15b.31  Treatment of students.

[[Page 394]]

15b.32  Academic adjustments.
15b.33  Housing.
15b.34  Financial and employment assistance to students.
15b.35  Nonacademic services.

                Subpart F--Other Programs and Activities

15b.36  Applicability.
15b.37  Auxiliary aids.
15b.38  Health care facilities.
15b.39  Education of institutionalized persons.
15b.40  Food services.
15b.41  Multi-family rental housing.

                          Subpart G--Procedures

15b.42  Procedures.

Appendix A to Part 15b--List of USDA-Assisted Programs

    Authority: 29 U.S.C. 794.

    Source: 47 FR 25470, June 11, 1982, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 15b.1  Purpose.

    The purpose of this part is to implement section 504 of the 
Rehabilitation Act of 1973, as amended, to the end that no otherwise 
qualified handicapped individual in the United States shall solely by 
reason of his or her handicap be excluded from the participation in, be 
denied the benefits of, or be subjected to discrimination under any 
program or activity receiving Federal financial assistance.



Sec. 15b.2  Applicability.

    This part applies to all programs and activities that receive 
Federal financial assistance extended by the Department of Agriculture 
after the effective date of this part whether or not the assistance was 
approved after the effective date. Subparts A, B, and C are of general 
applicability. Subparts D, E, and F are tailored to specific programs. 
Subpart G is procedural.

[47 FR 25470, June 11, 1982, as amended at 55 FR 52139, Dec. 19, 1990]



Sec. 15b.3  Definitions.

    As used in this part, the term or phrase:
    (a) The Act means the Rehabilitation Act of 1973, Public Law 93-112, 
87 Stat. 390 (1973), as amended by the Rehabilitation Act Amendments of 
1974, Public Law 93-651, 89 Stat. 2 (1974) and Public Law 93-516, 88 
Stat. 1617 (1974) and the Rehabilitation, Comprehensive Services and 
Developmental Disabilities Amendments of 1978, Public Law 95-602, 92 
Stat. 2955 (1978). The Act appears at 29 U.S.C. 701-794.
    (b) Section 504 means section 504 of the Act, 29 U.S.C. 794.
    (c) Education of the Handicapped Act means the Education of the 
Handicapped Act, Public Law 92-230, Title VI, 84 Stat. 175 (1970), as 
amended by the Education of the Handicapped Amendments of 1974, Public 
Law 93-380, Title VI, 88 Stat. 576 (1974), the Education for All 
Handicapped Children Act of 1975, Public Law 94-142, 89 Stat. 773 
(1975), and the Education of the Handicapped Amendments of 1977, Public 
Law 95-49, 91 Stat. 230 (1977). The Education of the Handicapped Act 
appears at 20 U.S.C. 1401-1461.
    (d) Department means the Department of Agriculture and includes each 
of its operating agencies and other organizational units.
    (e) Secretary means the Secretary of Agriculture or any officer or 
employee of the Department to whom the Secretary has delegated or may 
delegate the authority to act under the regulations of this part.
    (f) Recipient means any State or its political subdivision, any 
instrumentality of a State or its political subdivision, any public or 
private agency, institution, organization, or other entity, or any 
person to which Federal financial assistance is extended directly or 
through another recipient, including any successor, assignee, or 
transferee of a recipient, but excluding the ultimate beneficiary of the 
assistance.
    (g) Federal financial assistance or assistance means any grant, 
contract (other than a procurement contract or a contract of insurance 
or guaranty), cooperative agreement, formula allocation, loan, or any 
other arrangement by which the Department provides or otherwise makes 
available assistance in the form of:
    (1) Funds;
    (2) Services of Federal personnel;
    (3) Real and personal Federal property or any interest in Federal 
property, including:

[[Page 395]]

    (i) A sale, transfer, lease or use (on other than a casual or 
transient basis) of Federal property for less than fair market value, 
for reduced consideration or in recognition of the public nature of the 
recipient's program or activity; and
    (ii) Proceeds from a subsequent sale, transfer or lease of Federal 
property if the Federal share of its fair market value is not returned 
to the Federal Government.
    (4) Any other thing of value.
    (h) Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, or other real or personal 
property or interest in such property.
    (i) Handicapped person means any person who has a physical or mental 
impairment which substantially limits one or more major life activities, 
has a record of such an impairment, or is regarded as having such an 
impairment.
    (j) Physical or mental impairment means (1) any physiological 
disorder or condition, cosmetic disfigurement, or anatomical loss 
affecting one or more of the following body systems: Neurological; 
musculoskeletal; special sense organs; respiratory, including speech 
organs; cardiovascular; reproductive; digestive; genitourinary; hemic 
and lymphatic; skin; and endocrine; or (2) any mental or psychological 
disorder, such as mental retardation, organic brain syndrome, emotional 
or mental illness, and specific learning disabilities. The term physical 
or mental impairment includes, but is not limited to, such diseases and 
conditions as orthopedic, visual, speech, and hearing impairments; 
cerebral palsy; epilepsy; muscular dystrophy; multiple sclerosis, 
cancer; heart disease; diabetes; mental retardation; emotional illness; 
and drug addiction and alcoholism.
    (k) Major life activities means functions such as caring for one's 
self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning and working.
    (l) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (m) Is regarded as having an impairment means (1) has a physical or 
mental impairment that does not substantially limit major life 
activities but that is treated by a recipient as constituting such a 
limitation; (2) has a physical or mental impairment that substantially 
limits major life activities only as a result of the attitudes of others 
towards such impairments, or (3) has none of the impairments defined in 
paragraph (j) of this section but is treated by a recipient as having 
such an impairment.
    (n) Qualified handicapped person (used synonymously with otherwise 
qualified handicapped individual) means:
    (1) With respect to employment, a handicapped person who, with 
reasonable accommodation, can perform the essential functions of the job 
in question, but the term does not include any individual who is an 
alcoholic or drug abuser whose current use of alcohol or drugs prevents 
such individual from performing the duties of the job in question or 
whose employment, by reason of such current alcohol or drug abuse, would 
constitute a direct threat to property or the safety of others;
    (2) With respect to public preschool, elementary, secondary, or 
adult educational services, a handicapped person, (i) of an age during 
which non-handicapped persons are provided such services, (ii) of an age 
during which it is mandatory under State law to provide such services to 
handicapped persons, or (iii) to whom a State is required to provide a 
free appropriate public education under section 612 of the Education of 
the Handicapped Act; and
    (3) With respect to postsecondary and vocational education services, 
a handicapped person who meets all academic and technical standards 
requisite to admission or participation in the recipient's education 
program or activity;
    (4) With respect to other services, a handicapped person who meets 
the essential eligibility requirements for the receipt of such services.
    (o) Handicap means any condition or characteristic that renders a 
person a handicapped person as defined in paragraph (i) of this section.

[[Page 396]]

    (p) For purposes of Sec. 15b.18(d), Historic preservation programs 
means programs receiving Federal financial assistance that has 
preservation of historic properties as a primary purpose.
    (q) For purposes of Sec. 15b.18(e), Historic properties means those 
buildings or facilities that are eligible for listing in the National 
Register of Historic Places, or such properties designated as historic 
under a statute of the appropriate State or local government body.
    (r) For purposes of Sec. 15b.18(d), Substantial impairment means a 
significant loss of the integrity of finished materials, design quality 
or special character which loss results from a permanent alteration.

[47 FR 25470, June 11, 1982, as amended at 55 FR 52139, Dec. 19, 1990]



Sec. 15b.4  Discrimination prohibited.

    (a) General. No qualified handicapped person shall, on the basis of 
handicap, be excluded from participation in, be denied the benefits of, 
or otherwise be subjected to discrimination under any program or 
activity receiving assistance from this Department.
    (b) Discriminatory actions prohibited. (1) A recipient, in providing 
any aid, benefit or service, may not, directly or through contractual, 
licensing, or other arrangements, on the basis of handicap:
    (i) Deny a qualified handicapped person the opportunity to 
participate in or benefit from the aid, benefit or services;
    (ii) Afford a qualified handicapped person an opportunity to 
participate in or benefit from the aid, benefit or services that is not 
equal to that afforded others;
    (iii) Provide a qualified handicapped person with an aid, benefit or 
service that is not as effective in affording equal opportunity to 
obtain the same result, to gain the same benefit or to reach the same 
level of achievement in the most integrated setting appropriate as that 
provided to others;
    (iv) Provide a different or separate aid, benefit or service to 
handicapped persons or to any class of handicapped persons unless such 
action is necessary to provide qualified handicapped persons with an 
aid, benefit or service that are as effective as those provided to 
others;
    (v) Aid or perpetuate discrimination against a qualified handicapped 
person by providing significant assistance to an agency, organization, 
or person that discriminates on the basis of handicap in providing any 
aid, benefit or service to beneficiaries of the recipient's program;
    (vi) Deny a qualified handicapped person the opportunity to 
participate as a member of planning or advisory boards; or
    (vii) Otherwise limit a qualified handicapped person in the 
enjoyment of any rights, privilege, advantage, or opportunity enjoyed by 
others receiving an aid, benefit or service.
    (2) For purposes of this part, aids, benefits and services, to be 
equally effective, are not required to produce the identical result or 
level of achievement for handicapped and nonhandicapped persons, but 
must afford handicapped persons equal opportunity to obtain the same 
result, to gain the same benefit, or to reach the same level of 
achievement, in the most integrated setting appropriate to the person's 
needs.
    (3) Despite the existence of separate or different programs or 
activities provided in accordance with this part, a recipient may not 
deny a qualified handicapped person the opportunity to participate in 
such programs or activities that are not separate or different.
    (4) A recipient may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration (i) that 
have the effect of subjecting qualified handicapped persons to 
discrimination on the basis of handicap, (ii) that have the purpose or 
effect of defeating or substantially impairing accomplishment of the 
objectives of the recipient's program with respect to handicapped 
persons, or (iii) that perpetuate the discrimination of another 
recipient if both recipients are subject to common administrative 
control or are agencies of the same State.
    (5) In determining the site or location of a facility, an applicant 
for assistance or a recipient may not make

[[Page 397]]

selections (i) that have the effect of excluding handicapped persons, 
from denying them the benefits of, or otherwise subjecting them to 
discrimination under any program or activity that receives or benefits 
from Federal financial assistance or (ii) that have the purpose or 
effect of defeating or substantially impairing the accomplishment of the 
objectives of the program or activity with respect to handicapped 
persons.
    (6) As used in this section, an aid, benefit or service provided 
under a program or activity receiving or benefiting from Federal 
financial assistance includes any aid, benefit or service provided in or 
through a facility that has been constructed, expanded, altered, leased 
or rented, or otherwise acquired, in whole or in part, with Federal 
financial assistance.
    (c) Programs limited by Federal law. The exclusion of nonhandicapped 
persons from the benefits of a program limited by Federal statute or 
executive order to handicapped persons or the exclusion of a specific 
class of handicapped persons from a program limited by Federal statute 
or executive order to a different class of handicapped persons is not 
prohibited by this part.
    (d) Communications. Recipients shall take appropriate steps to 
ensure that communications with their applicants, employees, and 
beneficiaries are available to persons with impaired vision and hearing.



Sec. 15b.5  Assurances required.

    (a) Assurances. An applicant for Federal financial assistance for a 
program or activity to which this part applies shall submit an 
assurance, on a form specified by the Secretary, that the program will 
be operated in compliance with this part. An applicant may incorporate 
these assurances by reference in subsequent applications to the 
Department.
    (b) Duration of obligation. (1) In the case of Federal financial 
assistance extended in the form of real property or to provide real 
property or structures on the property, the assurance will obligate the 
recipient, or, in the case of a subsequent transfer, the transferee, for 
the period during which the real property or structures are used for the 
purpose for which Federal financial assistance is extended or for 
another purpose involving the provision of similar services or benefits.
    (2) In the case of Federal financial assistance extended to provide 
personal property, the assurance will obligate the recipient for the 
period during which it retains ownership or possession of the property.
    (3) In all other cases, the assurance will obligate the recipient 
for the period during which Federal financial assistance is extended.
    (c) Covenants. (1) Where Federal financial assistance is provided in 
the form of real property or interest in the property from the 
Department, the instrument effecting or recording this transfer shall 
contain a covenant running with the land to assure nondiscrimination for 
the period during which the real property is used for the purpose for 
which the Federal financial assistance is extended or for another 
purpose involving the provision of similar services or benefits.
    (2) Where no transfer of property is involved but property is 
purchased or improved with Federal financial assistance, the recipient 
shall agree to include the covenant described in paragraph (c)(1) of 
this section in the instrument effecting or recording any subsequent 
transfer of the property.
    (3) Where Federal financial assistance is provided in the form of 
real property or interest in the property from the Department, the 
covenant shall also include a condition coupled with a right to be 
reserved by the Department to revert title to the property in the event 
of a breach of the covenant. If a transferee of real property proposes 
to mortgage or otherwise encumber the real property as security for 
financing construction of new, or improvement of existing, facilities on 
the property for the purposes for which the property was transferred, 
the Secretary may, upon request of the transferee and if necessary to 
accomplish such financing and upon such conditions as the Secretary 
deems appropriate, agree to forebear the exercise of such right to 
revert title for so long as the lien of such mortgage or other 
encumbrance remains effective.

[[Page 398]]



Sec. 15b.6  Designation of responsible employee and adoption of grievance procedures.

    (a) Designation of responsible employee. A recipient that employs 
fifteen or more persons shall designate at least one person to 
coordinate its efforts to comply with this part.
    (b) Adoption of grievance procedures. A recipient that employs 
fifteen or more persons shall adopt grievance procedures that 
incorporate appropriate due process standards and that provide for the 
prompt and equitable resolution of complaints alleging any action 
prohibited by this part. Such procedures need not be established with 
respect to complaints from applicants for employment or from applicants 
for admission to postsecondary educational institutions.
    (c) The Secretary may require any recipient with fewer than fifteen 
employees to designate a responsible employee and adopt grievance 
procedures when the Secretary finds a violation of this part or finds 
that complying with these administrative requirements will not 
significantly impair the ability of the recipient to provide benefits or 
services.



Sec. 15b.7  Notice of nondiscrimination and accessible services.

    (a) A recipient shall take appropriate initial and continuing steps 
to notify participants, beneficiaries, applicants, and employees, 
including those with impaired vision or hearing, and unions or 
professional organizations holding collective bargaining or professional 
agreements with the recipient that it does not discriminate on the basis 
of handicap in violation of section 504 and this part. The notification 
shall state, where appropriate, that the recipient does not discriminate 
in admission or access to, or treatment or employment in, its programs 
and activities. The recipient shall also identify the responsible 
employee designated pursuant to Sec. 15b.6(a), and identify the 
existence and location of accessible services, activities, and 
facilities. A recipient shall make the initial notification required by 
this paragraph within 90 days of the effective date of this part. 
Methods of initial and continuing notification may include but are not 
limited to the posting of notices, placement of notices in the 
recipient's publications, radio announcements, and the use of other 
visual and aural media.
    (b) If a recipient publishes or uses recruitment materials or 
publications containing general information that it makes available to 
participants, beneficiaries, applicants or employees, it shall include 
in those materials or publications a statement of the policy described 
in paragraph (a) of this section. A recipient may meet the requirement 
of this paragraph either by including appropriate inserts in existing 
materials and publications or by revising and reprinting the materials 
and publications.



Sec. 15b.8  Remedial action, voluntary action, and self-evaluation.

    (a) Remedial action. (1) If the Secretary finds that a recipient has 
discriminated against persons on the basis of handicap in violation of 
section 504 or this part, the recipient shall take such remedial action 
as the Secretary deems necessary to overcome the effects of the 
discrimination.
    (2) Where a recipient is found to have discriminated against persons 
on the basis of handicap in violation of section 504 or this part and 
where another recipient exercises control over the recipient that has 
discriminated, the Secretary, where appropriate, may require either or 
both recipients to take remedial action.
    (3) The Secretary may, where necessary to overcome the effects of 
discrimination in violation of section 504 or this part, require a 
recipient to take remedial action (i) with respect to handicapped 
persons who are no longer participants in the recipient's program but 
who were participants in the program when such discrimination occurred 
or (ii) with respect to handicapped persons who would have been 
participants in the program had the discrimination not occurred, or 
(iii) with respect to handicapped persons presently in the program, but 
not receiving full benefits or equal and integrated treatment within the 
program.
    (b) Voluntary action. A recipient may take steps, in addition to any 
action

[[Page 399]]

that is required by this part, to overcome the effects of conditions 
that resulted in limited participation in the recipient's program or 
activity by qualified handicapped persons.
    (c) Self-evaluation. (1) A recipient shall, within one year of the 
effective date of this part:
    (i) Evaluate, with the assistance of interested persons, including 
handicapped persons or organizations representing handicapped persons, 
its current policies and practices and the effects thereof that do not 
or may not meet the requirements of this part.
    (ii) Modify, after consultation with interested persons, including 
handicapped persons or organizations representing handicapped persons, 
any policies and practices that do not meet the requirements of this 
part; and
    (iii) Take, after consultation with interested persons, including 
handicapped persons or organizations representing handicapped persons, 
appropriate remedial steps to eliminate the effects of any 
discrimination that resulted from adherence to these policies and 
practices.
    (2) A recipient shall, for at least three years following completion 
of the evaluation required under paragraph (c)(1) of this section, 
maintain on file, make available for public inspection, and provide to 
the Secretary upon request: (i) A list of the interested persons 
consulted, (ii) a description of areas examined and any problems 
identified, and (iii) a description of any modifications made and of any 
remedial steps taken.



Sec. 15b.9  Effect of State or local law or other requirements, and effect of employment opportunities.

    (a) The obligation to comply with this part is not obviated or 
alleviated by the existence of any State or local law or other 
requirement that, on the basis of handicap, imposes prohibitions or 
limits upon the eligibility of qualified handicapped persons to receive 
services or to practice any occupation or profession.
    (b) The obligation to comply with this part is not obviated or 
alleviated because employment opportunities in any occupation or 
profession are or may be more limited for handicapped persons than for 
nonhandicapped persons.



Sec. 15b.10  Effect of compliance with regulations of other Federal agencies.

    A recipient that has designated a responsible official and 
established a grievance procedure, provided notice, completed a self-
evaluation, or prepared a transition plan in the course of complying 
with regulations issued by other Federal agencies under section 504 will 
be in compliance with Sec. 15b.6, Sec. 15b.7, Sec. 15b.8(c), or 
Sec. 15b.18(f), respectively, if all requirements of those sections have 
been met in regard to programs assisted by this Department.



                     Subpart B--Employment Practices



Sec. 15b.11  Applicability.

    This subpart applies to all programs and activities that receive 
Federal financial assistance provided by the Department of Agriculture 
after the effective date of this part.

[47 FR 25470, June 11, 1982, as amended at 55 FR 52139, Dec. 19, 1990]



Sec. 15b.12  Discrimination prohibited.

    (a) General. (1) No qualified handicapped person shall, on the basis 
of handicapped, be subjected to discrimination in employment under any 
program or activity receiving assistance from this Department.
    (2) A recipient shall make all decisions concerning employment in a 
manner which ensures that discrimination on the basis of handicap does 
not occur and may not limit, segregate, or classify applicants or 
employees in any way that adversely affects their opportunities or 
status because of handicap.
    (3) A recipient may not participate in a contractural or other 
relationship that has the effect of subjecting qualified handicapped 
applicants or employees to discrimination prohibited by this subpart. 
This includes relationships with employment and referral agencies, with 
labor unions with organizations providing or administering fringe 
benefits to employees of the recipient, and with organizations providing 
training and apprenticeship programs.

[[Page 400]]

    (4) All provisions of this subpart pertaining to employment, apply 
equally to volunteer service.
    (b) Specific activities. The provisions of this subpart apply to:
    (1) Recruitment, advertising, and the processing of applications for 
employment;
    (2) Hiring, upgrading, promotion, award of tenure, demotion, 
transfer, layoff, termination, right to return from layoff, and 
rehiring;
    (3) Rates of pay or any other form of compensation and changes in 
compensation;
    (4) Job assignments, job classifications, organizational structures, 
position descriptions, lines of progression, and seniority lists;
    (5) Leaves of absence, sick leave, or any other leave;
    (6) Fringe benefits available by virtue of employment, whether or 
not administered by the recipient;
    (7) Selection and financial support for training, including 
apprenticeship, professional meetings, conferences, and other related 
activities, and selection for leaves of absence to pursue training;
    (8) Employer sponsored activities, including social or recreational 
programs; and
    (9) Any other term, condition, or privilege of employment.
    (c) A recipient's obligation to comply with this subpart is not 
affected by any inconsistent term of any collective bargaining agreement 
to which it is a party.



Sec. 15b.13  Reasonable accommodation.

    (a) A recipient shall make reasonable accommodation to the known 
physical or mental limitations of an otherwise qualified handicapped 
applicant or employee unless the recipient can demonstrate that the 
accommodation would impose an undue hardship on the operation of its 
program.
    (b) Reasonable accommodation may include (1) Making facilities used 
by employees readily accessible to and useable by handicapped persons, 
and
    (2) Job restructuring, part-time or modified work schedules, 
acquisition or modification of equipment or devices, the provisions of 
readers or interpreters, and other similar actions.
    (c) In determining pursuant to paragraph (a) of this section whether 
an accommodation would impose an undue hardship on the operation of a 
recipient's programs, factors to be considered include:
    (1) The overall size of the recipient's program with respect to 
number of employees, number and type of facilities, and size of budget;
    (2) The type of the recipient's operation, including the composition 
and structure of recipient's workforce;
    (3) The nature and cost of the accommodation needed.
    (d) A recipient may not deny any employment opportunity to a 
qualified handicapped employee or applicant if the basis for the denial 
is the need to make reasonable accommodation to the physical or mental 
limitations of the employee or applicant.



Sec. 15b.14  Employment criteria.

    (a) A recipient may not make use of any employment test or other 
selection criterion that screens out or tends to screen out handicapped 
persons or any class of handicapped persons unless:
    (1) The recipient shows that the test score or other selection 
criterion, as used by the recipient, is job-related for the position in 
question, and (2) the Secretary cannot show that alternative job-related 
tests or criteria are available that do not screen out or tend to screen 
out as many handicapped persons.
    (b) A recipient shall select and administer tests concerning 
employment so as best to ensure that, when administered to an applicant 
or employee who has a handicap that impairs sensory, manual, or speaking 
skills, the test results accurately reflect the applicant's or 
employee's job skills, aptitude, or whatever other factor the test 
purports to measure, rather than reflecting the applicant's or 
employee's impaired sensory, manual, or speaking skills (except where 
those skills are the factors that the test purports to measure).



Sec. 15b.15  Preemployment inquiries.

    (a) Except as provided in paragraphs (b) and (c) of this section, a 
recipient may not conduct a preemployment medical examination or may not 
make

[[Page 401]]

preemployment inquiry of an applicant as to whether the applicant is a 
handicapped person or as to the nature or severity of a handicap. A 
recipient may, however, make preemployment inquiry into an applicant's 
ability to perform job-related functions.
    (b) When a recipient is taking remedial action to correct the 
effects of past discrimination pursuant to Sec. 15b.8(a), when a 
recipient is taking voluntary action to overcome the effects of 
conditions that resulted in limited participation in its federally 
assisted program or activity pursuant to Sec. 15b.8(b), or when a 
recipient is taking affirmative action pursuant to section 503 of the 
Act, the recipient may invite applicants for employment to indicate 
whether and to what extent they are handicapped: Provided, That (1) the 
recipient states clearly on any written questionnaire used for this 
purpose or makes clear orally if no written questionnaire is used that 
the information requested is intended for use solely in connection with 
its remedial action obligations or its voluntary affirmative action 
efforts; and (2) the recipient states clearly that the information is 
being requested on a voluntary basis, that it will be kept confidential 
as provided in paragraph (d) of this section, that refusal to provide it 
will not subject the applicant or employee to any adverse treatment, and 
that it will be used only in accordance with this part.
    (c) Nothing in this section shall prohibit a recipient for 
conditioning an offer of employment on the results of a medical 
examination conducted prior to the employee's entrance on duty: 
Provided, That (1) all entering employees are subjected to such an 
examination regardless of handicap; and (2) the results of such an 
examination are used only in accordance with the requirements of this 
part.
    (d) Information obtained in accordance with this section as to the 
medical condition or history of the applicant shall be collected and 
maintained on separate forms that shall be accorded the same 
confidentiality as medical records except that:
    (1) Supervisors and managers may be informed regarding restrictions 
on the work or duties of handicapped persons and regarding necessary 
accommodations;
    (2) First aid and safety personnel may be informed, where 
appropriate, if the condition might require emergency treatment; and
    (3) Governement officials investigating compliance with the Act 
shall be provided relevant information upon request.



                    Subpart C--Program Accessibility



Sec. 15b.16  Applicability.

    This subpart applies to all programs and activities that receive 
Federal financial assistance provided by the Department of Agriculture 
after the effective date of this part.

[47 FR 25470, June 11, 1982, as amended at 55 FR 52139, Dec. 19, 1990]



Sec. 15b.17  Discrimination prohibited.

    No qualified handicapped person shall, because a recipient's 
facilities are inaccessible to or unusuable by handicapped persons, be 
denied the benefits of, be excluded from participation in, or otherwise 
be subjected to discrimination under any program or activity receiving 
assistance from this Department.



Sec. 15b.18  Existing facilities.

    (a) Program accessibility. A recipient shall operate each assisted 
program or activity so that the program or activity, when viewed in its 
entirety, is readily accessible to and usable by qualified handicapped 
persons. This paragraph does not necessarily require a recipient to make 
each of its existing facilities or every part of an existing facility 
accessible to and usable by qualified handicapped persons.
    (b) Method. A recipient may comply with the requirements of 
paragraph (a) of this section through such means as redesign of 
equipment, reassignment of classes or other services to accessible 
buildings, assignment of aides to beneficiaries, home visits, delivery 
of services at alternate accessible sites, alteration of exiting 
facilities and construction of new facilities in conformance with the 
requirements of Sec. 15b.19, or any other method that results in making 
its program or activity accessible

[[Page 402]]

to qualified handicapped persons. A recipient is not required to make 
structural changes in existing facilities where other methods are 
effective in achieving compliance with paragraph (a) of this section. In 
choosing among available methods for meeting the requirement of 
paragraph (a) of this section, a recipient shall give priority to those 
methods that offer programs and activities to qualified handicapped 
persons in the most intergrated setting appropriate to obtain the full 
benefits of the program.
    (c) Small providers. If a recipient with fewer than fifteen 
employees finds, after consultation with a handicapped person seeking 
its services, that there is no method of complying with paragraph (a) of 
this section other than by making a significant alteration in its 
existing facilities, the recipient may, as an alternative, refer the 
handicapped person to other providers of those services that are 
accessible at no additional cost to handicapped persons.
    (d) Application for modification of requirements. Recipients that 
determine after a self-evaluation conducted according to the 
requirements of Sec. 15b.8(c), that program accessibility can only be 
accomplished through substantial modifications which would result in a 
fundamental alteration in the nature of the program, may apply to the 
Secretary for a modification of the requirements of this section.
    (e) Historic preservation programs. Application for waiver of 
program accessibility requirements. (1) In the case of historic 
preservation programs, program accessibility means that, when viewed in 
its entirety, a program is readily accessible to and usable by 
handicapped persons. This paragraph does not necessarily require a 
recipient to make each of its existing historic properties or every part 
of an historic property accessible to and usable by handicapped persons. 
Methods of achieving program accessibility include:
    (i) Making physical alterations which enable handicapped persons to 
have access to otherwise inaccessible areas or features of historic 
properties;
    (ii) Using audio-visual materials and devices to depict otherwise 
inaccessible areas or features of historic properties;
    (iii) Assigning persons to guide handicapped persons into or through 
otherwise inaccessible portions of historic properties;
    (iv) Adopting other innovative methods to achieve program 
accessibility. Because the primary benefit of an historic preservation 
program is the experience of the historic property itself, in taking 
steps to achieve program accessibility, recipients shall give priority 
to those means which make the historic property, or portions thereof 
physicially accessible to handicapped individuals.
    (2) Where program accessibility cannot be achieved without causing a 
substantial impairment of significant historic features, the Secretary 
may grant a waiver of the program accessibility requirement. In 
determining whether program accessibility can be achieved without 
causing a substantial impairment, the Secretary shall consider the 
following factors:
    (i) Scale of property, reflecting its ability to absorb alterations;
    (ii) Use of the property, whether primarily for public or private 
purpose;
    (iii) Importance of the historic features of the property to the 
conduct of the program; and,
    (iv) Cost of alterations in comparison to the increase in 
accessibility.

The Secretary shall periodically review any waiver granted under this 
section and may withdraw it if technological advances or other changes 
so warrant.
    (3) Where the property is federally owned or where Federal funds may 
be used for alterations, the comments of the Advisory Council on 
Historic Preservation shall be obtained when required by section 106 of 
the National Historic Preservation Act of 1966, as amended (16 U.S.C. 
470), and 36 CFR part 800, prior to effectuation of structural 
alterations.
    (f) Time period. A recipient shall comply with the requirements of 
paragraph (a) of this section within sixty days of the effective date of 
this part except that where structural changes in facilities are 
necessary, such changes shall be made within three years of the 
effective date of this part and as expeditiously as possible.

[[Page 403]]

    (g) Transition plan. In the event that structural changes to 
facilities are necessary to meet the requirement of paragraph (a) of 
this section, a recipient shall develop, within one year of the 
effective date of this part, a transition plan setting forth the steps 
necessary to complete such changes. The plan shall be developed with the 
assistance of interested persons, including handicapped persons or 
organizations representing handicapped persons. A copy of the transition 
plan shall be made available for public inspection. The plan shall, at a 
minimum:
    (1) Identify physical obstacles in the recipient's facilities that 
limit the accessibility of its program or activity to handicapped 
persons;
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
full program accessibility and if the time period of the transition plan 
is longer than one year, identify steps that will be taken during each 
year of the transition period; and
    (4) Identify the person responsible for implementation of the plan.



Sec. 15b.19  New construction.

    (a) Design and construction. Each facility or part of a facility 
constructed by, on behalf of, or for the use of a recipient shall be 
designed and constructed in such manner that the facility or part of the 
facility is readily accessible to and usable by handicapped persons, if 
the construction is commenced after the effective date of this part.
    (b) Alteration. Each facility or part of a facility which is altered 
by, on behalf of, or for the use of a recipient after the effective date 
of this part in a manner that affects or could affect the usability of 
the facility or part of the facility shall to the maximum extent 
feasible, be altered in such manner that the altered portion of the 
facility is readily accessible to and usable by handicapped persons.
    (c) Conformance with Uniform Federal Accessibility Standards. (1) 
Effective as of January 18, 1991, design, construction, or alteration of 
buildings in conformance with sections 3-8 of the Uniform Federal 
Accessibility Standards (USAF) (appendix A to 41 CFR subpart 101-19.6) 
shall be deemed to comply with the requirements of this section with 
respect to those buildings. Departures from particular technical and 
scoping requirements of UFAS by the use of other methods are permitted 
where substantially equivalent or greater access to and usability of the 
building is provided.
    (2) For purposes of this section, section 4.1.6(1)(g) of UFAS shall 
be interpreted to exempt from the requirements of UFAS only mechanical 
rooms and other spaces that, because of their intended use, will not 
require accessibility to the public or beneficiaries or result in the 
employment or residence therein of persons with physical handicaps.
    (3) This section does not require recipients to make building 
alterations that have little likelihood of being accomplished without 
removing or altering a load-bearing structural member.
    (d) Compliance with the Architectural Barriers Act of 1968. Nothing 
in this section of Sec. 15b.18 relieves recipients, whose facilities are 
covered by the Architectural Barriers Act of 1968, as amended (42 U.S.C. 
4151-4157) from their responsibility of complying with the requirements 
of that Act and any implementing regulations.

[47 FR 25470, June 11, 1982, as amended at 55 FR 52138, 52139, Dec. 19, 
1990]



   Subpart D--Preschool, Elementary, Secondary, Adult, and Extension 
                                Education



Sec. 15b.20  Applicability.

    Except as otherwise noted, this subpart applies to public and 
private schools, elementary, secondary, adult, and extension education 
programs and activities that receive Federal financial assistance 
provided by the Department of Agriculture after the effective date of 
this part and to recipients that operate, or that receive Federal 
financial assistance for the operation of, such programs or activities.

[47 FR 25470, June 11, 1982, as amended at 55 FR 52139, Dec. 19, 1990]

[[Page 404]]



Sec. 15b.21  Location and notification.

    A recipient that operates a public elementary or secondary education 
program shall annually:
    (a) Undertake to identify and locate every qualified handicapped 
person residing in the recipient's jurisdiction who is not receiving a 
public education; and
    (b) Take appropriate steps to notify handicapped persons and their 
parents or guardians of the recipient's duty under this subpart.



Sec. 15b.22  Free appropriate public education.

    (a) General. A recipient that operates a public elementary or 
secondary education program shall provide a free appropriate public 
education to each qualified handicapped person who is in the recipient's 
jurisdiction, regardless of the nature or severity of the person's 
handicap.
    (b) Appropriate education. (1) For the purpose of this subpart, the 
provision of an appropriate education is the provision of regular or 
special education and related aids and services that (i) are designed to 
meet individual educational needs of handicapped persons as adequately 
as the needs of nonhandicapped persons are met and (ii) are based upon 
adherence to procedures that satisfy the requirements of Sec. 15b.23, 
Sec. 15b.24, and Sec. 15b.25.
    (2) Implementation of an individualized education program developed 
in accordance with the Education of the Handicapped Act is one means of 
meeting the standard established in paragraph (b)(1)(i) of this section.
    (3) A recipient may place a handicapped person in or refer such 
person to a program other than the one that it operates as its means of 
carrying out the requirements of this subpart. If so, the recipient 
remains responsible for ensuring that the requirements of this subpart 
are met with respect to any handicapped person so placed or referred.
    (c) Free education--(1) General. For the purpose of this section, 
the provision of a free education is the provision of educational and 
related services without cost to handicapped persons or their parents or 
guardians, except for those fees that are imposed on nonhandicapped 
persons or their parents or guardians. It may consist either of the 
provision of free services or, if a recipient places a handicapped 
person in or refers such person to a program not operated by the 
recipient as its means of carrying out the requirements of this subpart, 
payment for the costs of the program. Funds available from any public or 
private agency may be used to meet the requirements of this subpart. 
Nothing in this section shall be construed to relieve an insurer or 
similar third party from an otherwise valid obligation to provide or pay 
for services provided to a handicapped person.
    (2) Transportation. If a recipient places a handicapped person in or 
refers such person to a program not operated by the recipient as its 
means of carrying out the requirements of this subpart, the recipient 
shall ensure that adequate transportation to and from the program is 
provided at no greater cost than would be incurred by the person or his 
or her parents or guardian if the person were placed in the program 
operated by the recipient.
    (3) Residential placement. If placement in a public or private 
residential program is necessary to provide a free appropriate public 
education to a handicapped person because of their handicap, the 
program, including nonmedical care and room and board, shall be provided 
at no cost to the person or his or her parents or guardian.
    (4) Placement of handicapped persons by parents. If a recipient has 
made available in conformance with the requirements of this section and 
Sec. 15b.23, a free appropriate public education to a handicapped person 
and the person's parents or guardian choose to place the person in a 
private school, the recipient is not required to pay for the person's 
education in the private school. Disagreements between a parent or 
guardian and a recipient regarding whether the recipient has made such a 
program available or otherwise regarding the question of financial 
responsibility are subject to the due process procedures of Sec. 15b.25.
    (d) Compliance. A recipient may not exclude any qualified 
handicapped person from a public elementary or secondary education after 
the effective date of this regulation. A recipient

[[Page 405]]

that is not, on the effective date of this regulation, in full 
compliance with the other requirements of the preceding paragraphs of 
this section shall meet such requirements at the earliest practicable 
time but in no event later than September 1, 1982.



Sec. 15b.23  Educational setting.

    (a) Academic setting. A recipient to which this subpart applies 
shall educate, or shall provide for the education of each qualified 
handicapped person in its jurisdiction with persons who are not 
handicapped to the maximum extent appropriate to the needs of the 
handicapped person. A recipient shall place a handicapped person in the 
regular educational environment operated by the recipient unless it is 
demonstrated by the recipient that the education of the person in the 
regular environment with the use of supplementary aids and services 
cannot be achieved satisfactorily. Whenever a recipient places a person 
in a setting other than the regular educational environment pursuant to 
this paragraph, it shall take into account the proximity of the 
alternate setting to the person's home.
    (b) Nonacademic setting. In providing or arranging for the provision 
of nonacademic and extracurricular services and activities, including 
meals, recess periods, and the services and activities set forth in 
Sec. 15b.26(a)(2), a recipient shall ensure that handicapped persons 
participate with nonhandicapped persons in such activities and services 
to the maximum extent appropriate to the needs of the handicapped person 
in question.
    (c) Comparable facilities. If a recipient, in compliance with 
paragraph (a) of this section, operates a facility that is identifiable 
as being for handicapped persons, the recipient shall ensure that the 
facility and the services and activities provided therein are comparable 
to the other facilities, services, and activities of the recipient.



Sec. 15b.24  Evaluation and placement.

    (a) Placement evaluation. A recipient that operates a public 
elementary or secondary education program shall conduct an evaluation in 
accordance with the requirements of paragraph (b) of this section of any 
person who, because of handicap, needs or is believed to need special 
education or related services before taking any action with respect to 
the initial placement of the person in a regular or special education 
program and any subsequent significant change in placement.
    (b) Evaluation procedures. A recipient to which this section applies 
shall establish standards and procedures for the evaluation and 
placement of persons who, because of handicap, need or are believed to 
need special education or related services which ensure that:
    (1) Tests and other evaluation materials have been validated for the 
specific purpose for which they are used and are administered by trained 
personnel in conformance with the instructions provided by their 
producer;
    (2) Tests and other evaluation materials include those tailored to 
assess specific areas of educational need and not merely those which are 
designed to provide a single general intelligence quotient; and
    (3) Tests are selected and administered so as best to ensure that, 
when a test is administered to a student with impaired sensory, manual, 
or speaking skills, the test results accurately reflect the student's 
aptitude or achievement level or whatever other factor the test purports 
to measure, rather than reflecting the student's impaired sensory, 
manual or speaking skills (except where those skills are the factors 
that the test purports to measure).
    (c) Placement procedures. In interpreting evaluation data and in 
making placement decisions, a recipient shall (1) draw upon information 
from a variety of sources, including aptitude and achievement tests, 
teacher recommendations, physical conditions, social or cultural 
background, and adaptive behavior, (2) establish procedures to ensure 
that information obtained from all such sources is documented and 
carefully considered, (3) ensure that the placement decision is made by 
a group of persons, including persons knowledgeable about the child, the 
meaning of the evaluation data, and the placement options, and (4) 
ensure that the placement decision is made in conformity with 
Sec. 15b.23.

[[Page 406]]

    (d) Reevaluation. A recipient to which this section applies shall 
establish procedures, in accordance with paragraph (b) of this section, 
for periodic reevaluation of students who have been provided special 
education and related services. A reevaluation procedure consistent with 
the Education for the Handicapped Act is one means of meeting this 
requirement.



Sec. 15b.25  Procedural safeguards.

    A recipient that operates a public elementary or secondary education 
program shall establish and implement, with respect to action regarding 
the identification, evaluation, or educational placement of persons who, 
because of handicap, need or are believed to need special instruction or 
related services, a system of procedural safeguards that includes 
notice, an opportunity for the parents or guardian of the person to 
examine relevant records, an impartial hearing with opportunity for 
participation by the person's parents or guardian and representation by 
counsel, and a review procedure. Compliance with the procedural 
safeguards of section 615 of the Education of the Handicapped Act is one 
means of meeting this requirement.



Sec. 15b.26  Nonacademic services.

    (a) General. (1) Recipients to which this subpart applies shall 
provide nonacademic and extracurricular services and activities in such 
a manner as is necessary to afford handicapped students an equal 
opportunity for participation in such services and activities.
    (2) Nonacademic and extracurricular services and activities may 
include counseling services, physical education and athletics, food 
services, transportation, health services, recreational activities, 
special interest groups or clubs sponsored by the recipient, referrals 
to agencies which provide assistance to handicapped persons, and 
assistance in obtaining outside employment.
    (b) Counseling services. A recipient to which this subpart applies 
that provides personal, academic, or vocational counseling, guidance, or 
placement services to its students shall provide these services without 
discrimination on the basis of handicap. The recipient shall ensure that 
qualified handicapped students are not counseled toward more restrictive 
career objectives than are nonhandicapped students with similar 
interests and abilities.
    (c) Physical education and athletics. (1) In providing physical 
education courses and athletics and similar programs and activities to 
any of its students, a recipient to which this subpart applies may not 
discriminate on the basis of handicap. A recipient that offers physical 
education courses or that operates or sponsors interscholastic, club, or 
intramural athletics shall provide to qualified handicapped students an 
equal opportunity for participation in these activities.
    (2) A recipient may offer handicapped students physical education 
and athletic activities that are separate or different from those 
offered to nonhandicapped students only if separation or differentiation 
is consistent with requirements of Sec. 15b.23, and only if no qualified 
handicapped student is denied the opportunity to compete for teams or to 
participate in courses that are not separate or different.
    (d) Food services. In providing food services to any of its 
students, a recipient to which this subpart applies may not discriminate 
on the basis of handicap.
    (1) Recipients shall serve special meals, at no extra charge, to 
students whose handicap restricts their diet. Recipients may require 
students to provide medical certification that special meals are needed 
because of their handicap.
    (2) Where existing food service facilities are not completely 
accessible and usable, recipients may provide aides or use other equally 
effective methods to serve food to handicapped persons. Recipients shall 
provide all food services in the most intergrated setting appropriate to 
the needs of handicapped persons as required by Sec. 15b.23(b).



Sec. 15b.27  Extension education.

    (a) General. A recipient to which this subpart applies that operates 
an extension education program or activity receiving assistance from 
this Department may not, on the basis of handicap, exclude qualified 
handicapped persons from the program or activity. A

[[Page 407]]

recipient shall take into account the needs of such persons in 
determining the benefits or services to be provided under the program or 
activity.
    (b) Program delivery sites. (1) Where existing extension office 
facilities are inaccessible, recipients may make program services 
normally provided at those sites available to qualified handicapped 
persons through other methods which are equally effective. These methods 
may include meetings in accessible locations, home visits, written or 
telephonic communications, and other equally effective alternatives.
    (2) For program services delivered at other publicly-owned 
facilities, recipients shall select accessible facilities wherever 
possible. If accessible facilities cannot be selected because they are 
unavailable or infeasible due to the nature of the activity, recipients 
shall use other methods to deliver program benefits to qualified 
handicapped persons. These methods may include the redesign of 
activities or some sessions of activities, the provision of aides, home 
visits, or other equally effective alternatives.
    (3) For program services delivered at privately-owned facilities, 
such as homes and farm buildings, recipients shall use accessible 
facilities whenever qualified handicapped persons requiring such 
accessibility are participating, have expressed an interest in 
participating, or are likely to participate. If accessible facilities 
cannot be selected because they are unavailable or infeasible due to the 
nature of the activity, recipients shall use other methods to deliver 
program benefits to qualified handicapped persons. These methods may 
include the redesign of activities or some sessions of activities, the 
provision of aides, home visits, or other equally effective 
alternatives.
    (4) Recipients shall make camping activities accessible to qualified 
handicapped persons. Recipients are not required to make every existing 
camp, all existing camp facilities, or all camp sessions accessible, but 
recipients who operate more than one camp or session may not limit 
qualified handicapped persons to one camp or session.
    (c) Program materials. Recipients shall make program materials 
accessible to qualified handicapped persons with sensory or mental 
impairments. Commonly-used materials shall be readily available in 
alternate forms such as Braille or tape. Upon request, recipients shall 
make other materials available through appropriate means such as 
Braille, tape, readers, large print formats, simplified versions, 
written scripts, or interpreters. Recipients need not provide 
individually prescribed devices, readers for personal use or study, or 
other devices or services of a personal nature.



Sec. 15b.28  Private education programs.

    (a) A recipient that operates a private elementary or secondary 
education program receiving assistance from this Department may not, on 
the basis of handicap, exclude a qualified handicapped person from such 
program if the person can, with minor adjustments, be provided an 
appropriate education, as defined by Sec. 15b.22(b)(1)(i). Each 
recipient to which this section applies is also subject to the 
provisions of Sec. 15b.23 and Sec. 15b.26.
    (b) A recipient to which this section applies may not charge more 
for the provision of an appropriate education to handicapped persons 
than to nonhandicapped persons except to the extent that any additional 
charge is justified by a substantial increase in cost to the recipient.



                   Subpart E--Postsecondary Education



Sec. 15b.29  Applicability.

    Subpart E applies to public and private postsecondary education 
programs and activities, including postsecondary vocational education 
programs and activities, that receive Federal financial assistance 
provided by the Department of Agriculture after the effective date of 
this part.

[47 FR 25470, June 11, 1982, as amended at 55 FR 52139, Dec. 19, 1990]



Sec. 15b.30  Admissions and recruitment.

    (a) General. Qualified handicapped persons may not, on the basis of 
handicap, be denied admission or be subjected to discrimination in 
admission

[[Page 408]]

or recruitment by a recipient to which this subpart applies.
    (b) Admissions. In administering its admission policies, a recipient 
to which this subpart applies:
    (1) May not apply limitations upon the number or proportion of 
handicapped persons who may be admitted;
    (2) May not make use of any test or criterion for admission that has 
a disproportionate, adverse effect on handicapped persons or any class 
of handicapped persons unless (i) the test or criterion, as used by the 
recipient, has been validated as a predictor of success in the education 
program or activity in question and (ii) alternate tests or criteria 
that have a less disproportionate, adverse effect are not shown by the 
Secretary to be available.
    (3) Shall assure itself that (i) admissions tests are selected and 
administered so as best to ensure that, when a test is administered to 
an applicant who has a handicap that impairs sensory, manual, or 
speaking skills, the test results accurately reflect the applicant's 
aptitude or achievement level or whatever other factor the test purports 
to measure, rather than reflecting the applicant's impaired sensory, 
manual, or speaking skills (except where those skills are the factors 
that the test purports to measure); (ii) admissions tests that are 
designed for persons with impaired sensory, manual, or speaking skills 
are offered as often and in as timely a manner as are other admissions 
tests; and (iii) admissions tests are administered in facilities that, 
on the whole, are accessible to handicapped persons; and
    (4) Except as provided in paragraph (c) of this section, may not 
make preadmission inquiry as to whether an applicant for admission is a 
handicapped person but, after admission, may take inquiries on a 
confidential basis as to handicaps that may require accommodation.
    (c) Preadmission inquiry exception. When a recipient is taking 
remedial action to correct the effects of past discrimination pursuant 
to Sec. 15b.8(a) or when a recipient is taking voluntary action to 
overcome the effects of conditions that resulted in limited 
participation in its federally assisted program or activity pursuant to 
Sec. 15b.8(b), the recipient may invite applicants for admissions to 
indicate whether and to what extent they are handicapped: Provided, That 
(1) the recipient states clearly on any written questionnaire used for 
this purpose or makes clear orally if no written questionnaire is used 
that the information requested is intended for use solely in connection 
with its remedial action obligations or its voluntary action efforts; 
and (2) the recipient states clearly that the information is being 
requested on a voluntary basis, that it will be kept confidential, that 
refusal to provide it will not subject the applicant to any adverse 
treatment, and that it will be used only in accordance with this part.
    (d) Validity studies. For the purpose of paragraph (b)(2) of this 
section, a recipient may base prediction equations on first year grades, 
but shall conduct periodic validity studies against the criterion of 
overall success in the education program or activity in question in 
order to monitor the general validity of the test scores.



Sec. 15b.31  Treatment of students.

    (a) General. No qualified handicapped student shall, on the basis of 
handicap, be excluded from participation in, be denied the benefits of, 
or otherwise be subjected to discrimination under any academic, 
research, occupational training, housing, health, insurance, counseling, 
financial aid, physical education, athletics, recreation, 
transportation, other extracurricular, other postsecondary education 
program or activity to which this subpart applies.
    (b) A recipient to which this subpart applies that considers 
participation by students in education programs or activities not 
operated wholly by the recipient as part of, or equivalent to, an 
education program or activity operated by the recipient shall assure 
itself that the other education program or activity, as a whole, 
provides an equal opportunity for the participation of qualified 
handicapped persons.
    (c) A recipient to which this subpart applies may not, on the basis 
of handicap, exclude any qualified handicapped student from any course, 
course of study, or other part of its education program or activity.

[[Page 409]]

    (d) A recipient to which this subpart applies shall operate its 
programs and activities in the most integrated setting appropriate.



Sec. 15b.32  Academic adjustments.

    (a) Academic requirements. A recipient to which this subpart applies 
shall make such modifications to its academic requirements as are 
necessary to ensure that such requirements do not discriminate or have 
the effect of discriminating on the basis of handicap, against a 
qualified handicapped applicant or student. Academic requirements that 
the recipient can demonstrate are essential to the program or 
instruction being pursued by such student or to any directly related 
licensing requirement will not be regarded as discriminatory within the 
meaning of this section. Modifications may include changes in the length 
of time permitted for the completion of degree requirements, 
substitution of specific courses required for the completion of degree 
requirements, and adaptation of the manner in which specific courses are 
conducted.
    (b) Other rules. A recipient to which this subpart applies may not 
impose upon handicapped students other rules, such as the prohibition of 
tape recorders in classrooms or of dog guides in campus buildings, that 
have the effect of limiting the participation of handicapped students in 
the recipient's education program or activity.
    (c) Course examinations. In its course examinations or other 
procedures for evaluating students' academic achievement in its program, 
a recipient to which this subpart applies shall provide such methods for 
evaluating the achievement of students who have a handicap that impairs 
sensory, manual, or speaking skills as will best ensure that the results 
of the evaluation represent the students' achievements in the course, 
rather than reflecting the students' impaired sensory, manual, or 
speaking skills (except where such skills are the factors that the test 
purports to measure).
    (d) Auxiliary aids. (1) A recipient to which this subpart applies 
shall take such steps as are necessary to ensure that no handicapped 
student is denied the benefits of, excluded from participation in, or 
otherwise subjected to discrimination under the education program or 
activity operated by the recipient because of the absence of educational 
auxiliary aids for students with impaired sensory, manual, or speaking 
skills.
    (2) Auxiliary aids may include taped texts, interpreters or other 
effective methods of making orally delivered materials available to 
students with hearing impairments, readers in libraries for students 
with visual impairments, classroom equipment adapted for use by students 
with manual impairments, and other similar services and actions. 
Recipients need not provide attendants, individually prescribed devices, 
readers for personal use or study, or other devices or services of a 
personal nature.



Sec. 15b.33  Housing.

    (a) Housing provided by the recipient. A recipient that provides 
housing to its nonhandicapped students shall provide comparable, 
convenient, and accessible housing to handicapped students at the same 
cost as to others. At the end of the transition period provided for in 
subpart C, such housing shall be available in sufficient quantity and 
variety so that the scope of handicapped students' choice of living 
accommodations is, as a whole, comparable to that of nonhandicapped 
students.
    (b) Other housing. A recipient that assists any agency, 
organization, or person in making housing available to any of its 
students shall take such action as may be necessary to assure itself 
that such housing is, as a whole, made available in a manner that does 
not result in discrimination on the basis of handicap.



Sec. 15b.34  Financial and employment assistance to students.

    (a) Provision of financial assistance. (1) In providing financial 
assistance to qualified handicapped persons, a recipient to which this 
subpart applies may not, (i) on the basis of handicap, provide less 
assistance than is provided to nonhandicapped persons, limit eligibility 
for assistance, or otherwise discriminate or (ii) assist any entity or 
person that provides assistance to any of the recipient's students in a 
manner

[[Page 410]]

that discriminates against qualified handicapped persons on the basis of 
handicap.
    (2) A recipient may administer or assist in the administration of 
scholarships, fellowships, or other forms of financial assistance 
established under wills, trusts, bequests, or similar legal instruments 
that require awards to be made on the basis of factors that discrimate 
or have the effect of discriminating on the basis of handicap only if 
the overall effect of the award of scholarships, fellowships, and other 
forms of financial assistance is not discriminatory on the basis of 
handicap.
    (b) Assistance in making available outside employment. A recipient 
that assists any agency, organization, or person in providing employment 
opportunities to any of its students shall assure itself that such 
employment opportunities, as a whole, are made available in a manner 
that would not violate subpart B if they were provided by the recipient.
    (c) Employment of students by recipients. A recipient that employs 
any of its students may not do so in a manner that violates subpart B.



Sec. 15b.35  Nonacademic services.

    (a) Physical education and athletics. (1) In providing physical 
education courses and athletics and similar programs and activities to 
any of its students, a recipient to which this subpart applies may not 
discriminate on the basis of handicap. A recipient that offers physical 
education courses or that operates or sponsors intercollegiate, club, or 
intramural athletics shall provide to qualified handicapped students an 
equal opportunity for participation in these activities.
    (2) A recipient may offer to handicapped students physical education 
and athletic activities that are separate or different only if 
separation or differentiation is consistent with the requirements of 
Sec. 15b.31(d) and only of no qualified handicapped student is denied 
the opportunity to compete for teams or to participate in courses that 
are not separate or different.
    (b) Counseling and placement services. A recipient to which this 
subpart applies that provides personal, academic, or vocational 
counseling, guidance, or placement services to its students shall 
provide these services without discrimination on the basis of handicap. 
The recipient shall ensure that qualified handicapped students are not 
counseled toward more restrictive career objectives than are 
nonhandcapped students with similar interests and abilities. This 
requirement does not preclude a recipient from providing factual 
information about licensing and certification requirements that may 
present obstacles to handicapped persons in their pursuit of particular 
careers.
    (c) Social organizations. A recipient that provides significant 
assistance to fraternities, sororities, or similar organizations shall 
assure itself that the membership practices of such organizations do not 
permit discrimination otherwise prohibited by this subpart.



                Subpart F--Other Programs and Activities



Sec. 15b.36  Applicability.

    Subpart F applies to programs and activities, other than those 
covered by subparts D and E, that receive Federal financial assistance 
provided by the Department of Agriculture after the effective date of 
this part.

[47 FR 25470, June 11, 1982, as amended at 55 FR 52139, Dec. 19, 1990]



Sec. 15b.37  Auxiliary aids.

    (a) A recipient to which this subpart applies that employs fifteen 
or more persons shall provide appropriate auxiliary aids to persons with 
impaired sensory, manual, or speaking skills, where necessary to afford 
such persons an equal opportuntiy to benefit from the service in 
question.
    (b) The Secretary may require recipients with fewer than fifteen 
employees to provide auxiliary aids where the provision of aids would 
not significantly impair the ability of the recipient to provide its 
benefits or services.
    (c) For the purpose of this section, auxiliary aids may include 
Brailled and taped material, interpreters, and other aids for persons 
with impaired hearing or vision.

[[Page 411]]



Sec. 15b.38  Health care facilities.

    (a) Communications. A recipient that provides notice concerning 
benefits or services or written material concerning waivers of rights or 
consent to treatment shall take such steps as are necessary to ensure 
that qualified handicapped persons, including those with impaired 
sensory or speaking skills, are not denied effective notice because of 
their handicap.
    (b) Emergency treatment for the hearing impaired. A recipient 
hospital that provides health services or benefits shall establish a 
procedure for effective communication with persons with impaired hearing 
for the purpose of providing emergency health care.
    (c) Drug and alcohol addicts. A recipient to which this subpart 
applies that operates a general hospital or outpatient facility may not 
discriminate in admission or treatment against a drug or alcohol abuser 
or alcoholic who is suffering from a medical condition, because of the 
person's drug or alcohol abuse or alcoholism.



Sec. 15b.39  Education of institutionalized persons.

    A recipient to which this subpart applies that operates or 
supervises a program or activity for persons who are institutionalized 
because of handicap shall ensure that each qualified handicapped person, 
as defined in Sec. 15b.3(n)(2), in its program, or activity is provided 
an appropriate education, as defined in Sec. 15b.22(b). Nothing in this 
section shall be interpreted as altering in any way the obligations of 
recipients under subpart D.



Sec. 15b.40  Food services.

    (a) Recipients which operate food service programs assisted by this 
Department shall serve special meals, at no extra charge, to persons 
whose handicap restricts their diet. Recipients may require handicapped 
persons to provide medical certification that special meals are needed 
because of their handicap.
    (b) Where existing food service facilities are not completely 
accessible and usable, recipients may provide aides or use other equally 
effective methods to serve food to handicapped persons. Recipients shall 
provide all food services in the most integrated setting appropriate to 
the needs of handicapped persons.



Sec. 15b.41  Multi-family rental housing.

    (a) General. No qualified handicapped person shall, on the basis of 
handicap, be excluded from participation in, be denied the benefits of, 
or otherwise be subjected to discrimination in a multi-family rental 
housing program.
    (b) New construction. (1) Recipients receiving assistance from the 
Department for multi-family rental housing projects constructed after 
the effective date of this part shall construct at least five percent of 
the units in the project or one unit, whichever is greater, to be 
accessible to or adaptable for physically handicapped persons. The 
requirement that five percent of the units in the project or at least 
one unit, whichever is greater, be accessible or adaptable may be 
modified if a recipient shows, through a market survey approved by the 
Department, that a different percentage of accessible or adaptable units 
is appropriate for a particular project and its service area.
    (i) The variety of units accessible to or adaptable for physically 
handicapped persons shall be comparable to the variety of units 
available in the project as a whole.
    (ii) No extra charge may be made for use of accessible or adaptable 
units.
    (iii) A recipient that operates multi-family rental housing projects 
on more than one site may not locate all accessible or adaptable units 
at one site unless only one accessible or adaptable unit is required.
    (2) Standards for accessibility are contained in subpart C and in 
appropriate program regulations.
    (c) Existing facilities. Recipients receiving assistance from the 
Department for multi-family rental housing projects constructed prior to 
the effective date of this part shall assure that their facilities 
comply with the program accessibility requirements established in 
Sec. 15b.18 if a qualified handicapped person applies for admission. 
Necessary physical alterations made pursuant to such requirements shall 
be completed within a reasonable amount of time after the unit becomes 
available for occupancy by the qualified

[[Page 412]]

handicapped person. Subject to the availability of funds and fulfillment 
by the recipient of all program eligibility requirements, the Department 
may assist recipients to comply with program accessibility requirements 
through methods such as (1) consideration of subsequent loan 
applications for purposes of making existing facilities accessible or 
for the construction of additional units which are accessbile and (2) 
consideration of approval to commit project reserve account funds for 
minor modifications in order to make existing facilities accessible.



                          Subpart G--Procedures



Sec. 15b.42  Procedures.

    The procedural provisions applicable to title VI of the Civil Rights 
Act of 1964 apply to this part. These procedures are found in 7 CFR 
15.5--15.11 and 15.60--15.143.


         APPENDIX A TO PART 15B--LIST OF USDA-ASSISTED PROGRAMS

    Programs administered by the U.S. Department of Agriculture in which 
Federal financial assistance is rendered, include but are not limited to 
the following:

                                                                        
------------------------------------------------------------------------
               Program                             Authority            
------------------------------------------------------------------------
          Administered by the Agricultural Cooperative Service          
                                                                        
------------------------------------------------------------------------
1. Technical assistance for            Cooperative Marketing Act of     
 agricultural cooperatives.             1926, 7 U.S.C., Secs. 451-457.  
                                                                        
------------------------------------------------------------------------
           Administered by the Agricultural Marketing Service           
                                                                        
------------------------------------------------------------------------
2. Federal-State marketing             Sec. 204(b) of the Agricultural  
 improvement program.                   Marketing Act of 1946, 7 U.S.C. 
                                        1623(b).                        
3. Market news service...............  Sec. 203(g) of the Agricultural  
                                        Marketing Act of 1946, 7 U.S.C. 
                                        1622(g); the Cotton Statistics  
                                        and Estimates Act, as amended, 7
                                        U.S.C. 471-476; the Tobacco     
                                        Statistics Act, as amended, 7   
                                        U.S.C. 501-508; the Tobacco     
                                        Inspection Act, 7 U.S.C. 511-   
                                        511(q); the Naval Stores Act, 7 
                                        U.S.C. 91-99; the Turpentine and
                                        Rosin Statistics Act, 7 U.S.C.  
                                        2248; the United States Cotton  
                                        Futures Act, 7 U.S.C. 15b; and  
                                        the Peanut Statistics Act as    
                                        amended, 7 U.S.C. 951-957.      
                                                                        
------------------------------------------------------------------------
            Administered by the Agricultural Research Service           
                                                                        
------------------------------------------------------------------------
4. Agriculture research grants.......  Secs. 1 and 10 of the Act of June
                                        29, 1935, as amended, 7 U.S.C.  
                                        427 and 427i; and 202-208 of the
                                        Agricultural Marketing Act of   
                                        1946, as amended, 7 U.S.C. 1621-
                                        1627.                           
                                                                        
------------------------------------------------------------------------
   Administered by the Agricultural Stabilization Conservation Service  
                                                                        
------------------------------------------------------------------------
5. Price support programs operating    Agricultural Act of 1949, as     
 through producer associations,         amended; 7 U.S.C. 1421-1447.    
 cooperatives, and other recipients                                     
 in which the recipient is required                                     
 to furnish specified benefits to                                       
 producers (e.g., tobacco, peanuts,                                     
 sugar, cotton, rice, honey and                                         
 soybeans price support programs).                                      
6. Disaster feed donation programs...  Section 407 of the Agricultural  
                                        Act of 1949, as amended, 7      
                                        U.S.C. 1427.                    
                                                                        
------------------------------------------------------------------------
         Administered by the Cooperative State Research Service         
                                                                        
------------------------------------------------------------------------
7. Payments under the Hatch Act......  Hatch Act of 1887, as amended, 7 
                                        U.S.C. 361a-361i.               
8. McIntire-Stennis cooperative        Act of October 10, 1962, as      
 forestry research.                     amended, 16 U.S.C. 582a-582a-7. 
9. Payments to 1890 colleges and       Sec. 1445 of the Food and        
 Tuskegee Institute for research.       Agriculture Act of 1977, as     
                                        amended, 7 U.S.C. 3222.         
10. Native latex research............  Native Latex Commercialization   
                                        and Economic Development Act of 
                                        1978, 7 U.S.C. 178 et seq.      

[[Page 413]]

                                                                        
11. Alcohol Fuels research...........  Sec. 1419 of the Food and        
                                        Agriculture Act of 1977, as     
                                        amended, 7 U.S.C. 3154.         
12. Animal Health Research...........  Sec. 1433 of the Food and        
                                        Agriculture Act of 1977, as     
                                        amended, 7 U.S.C. 3195.         
13. Competitive research grants......  Sec. 2(b) of the Act of August 4,
                                        1965, as amended, 7 U.S.C.      
                                        450i(b).                        
14. Experiment station research        Act of July 22, 1963, as amended,
 facilities.                            7 U.S.C. 390-390j.              
15. Special research grants..........  Sec. 2(c) of the Act of August 4,
                                        1965, as amended, 7 U.S.C.      
                                        450i(c).                        
16. Rural development research.......  Title V of the Rural Development 
                                        Act of 1972, as amended, 7      
                                        U.S.C. 2661 et. seq.            
                                                                        
------------------------------------------------------------------------
                    Administered by Extension Service                   
                                                                        
------------------------------------------------------------------------
17. Cooperative extension work.......  Smith-Lever Act, as amended, 7   
                                        U.S.C. 341-349; District of     
                                        Columbia Public Postsecondary   
                                        Education Reorganization Act,   
                                        D.C. Code Secs. 31-1719; Rural  
                                        Development Act of 1972, as     
                                        amended, 7 U.S.C. 2661 et. seq.;
                                        Sec. 1444 of the Food and       
                                        Agriculture Act of 1977, 7      
                                        U.S.C. 3221.                    
                                                                        
------------------------------------------------------------------------
               Administered by Farmers Home Administration              
                                                                        
------------------------------------------------------------------------
18. Farm ownership loans to install    Sec. 303 of the Consolidated Farm
 or improve recreational facilities     and Rural Development Act, as   
 or other nonfarm enterprises.          amended, 7 U.S.C. 1923.         
19. Operating loans to install or      Sec. 312 of the Consolidated Farm
 improve recreational facilities or     and Rural Development Act, as   
 other nonfarm enterprises.             amended, 7 U.S.C. 1942.         
20. Soil and water conservation,       Sec. 304 of the Consolidated Farm
 (including pollution abatement         and Rural Development Act, as   
 facilities), and recreational          amended, 7 U.S.C. 1924.         
 facilities.                                                            
21. Financial and other assistance to  Sec. 203 of the Appalachian      
 landowners, operators, or occupiers    Regional Development Act of     
 to carry out land uses and             1965, as amended, 40 U.S.C. App.
 conservation.                          203.                            
22. Rural renewal, resource,           Secs. 31-35 of the Bankhead-Jones
 conservation development, land         Farm Tenant Act, as amended, 7  
 conservation and utilization.          U.S.C. 1010-1035.               
23. Watershed protection and flood     Watershed Protection and Flood   
 prevention program.                    Prevention Act, as amended, 16  
                                        U.S.C. 1001-1008.               
24. Resource conservation and          Sec. 32(e) of the Bankhead-Jones 
 development loans.                     Farm Tenant Act, as amended, 7  
                                        U.S.C. 1011(e).                 
25. Farm labor housing loans.........  Sec. 514 of the Housing Act of   
                                        1949, 42 U.S.C. 1484.           
26. Farm labor housing grants........  Sec. 516 of the Housing Act of   
                                        1949, as amended, 42 U.S.C.     
                                        1486.                           
27. Rural rental housing for the       Sec. 515 of the Housing Act of   
 elderly and families of low and        1949, as amended, 42 U.S.C.     
 moderate income persons.               1485.                           
28. Rural cooperative housing........  Sec. 515 of the Housing Act of   
                                        1949, as amended, 42 U.S.C.     
                                        1485.                           
29. Rural housing site loans.........  Sec. 524 of the Housing Act of   
                                        1949, as amended, 42 U.S.C.     
                                        1490d.                          
30. Technical and supervisory          Sec. 525 of the Housing Act of   
 assistance grants.                     1949, as amended, 42 U.S.C.     
                                        1490e.                          
31. Technical assistance grants......  Sec. 523 of the Housing Act of   
                                        1949, as amended, 42 U.S.C.     
                                        1490c.                          
32. Rural housing self-help site       Sec. 523 of the Housing Act of   
 loans.                                 1949, as amended, 42 U.S.C.     
                                        1490c.                          
33. Mutual self-help housing.........  Sec. 523 of the Housing Act of   
                                        1949, as amended, 42 U.S.C.     
                                        1490c.                          
34. Water and waste facility loans     Sec. 306 of the Consolidated Farm
 and grants and community facility      and Rural Development Act, as   
 loans and grants.                      amended, 7 U.S.C. 1926.         
35. Rural and industrial loan program  Sec. 310(a) of the Consolidated  
                                        Farm and Rural Development Act, 
                                        as amended, 7 U.S.C. 1932(a).   
36. Private business enterprise        Sec. 310(c) of the Consolidated  
 grants.                                Farm and Rural Development Act, 
                                        as amended, 7 U.S.C. 1932(c).   
37. Area development assistance        Sec. 306(a)(11) of the           
 planning grant program.                Consolidated Farm and Rural     
                                        Development Act, as amended, 7  
                                        U.S.C. 1926(a)(11).             
38. Energy impacted area development   Sec. 601 of the Power Plant and  
 assistance program.                    Industrial Fuel Use Act of 1978,
                                        42 U.S.C. 8401.                 
                                                                        
------------------------------------------------------------------------
          Administered by the Federal Grain Inspection Service          
                                                                        
------------------------------------------------------------------------
39. Inspection administration and      U.S. Grain Standards Act, as     
 supervision.                           amended, 7 U.S.C. 71-87; and,   
                                        Sec. 203(h) of the Agricultural 
                                        Marketing Act of 1946, 7 U.S.C. 
                                        1621-1630.                      
                                                                        
------------------------------------------------------------------------
             Administered by the Food and Nutrition Service             
                                                                        
------------------------------------------------------------------------
40. Food stamp program...............  Food Stamp Act of 1964, as       
                                        amended, 7 U.S.C. 2011-2027.    
41. Special supplemental food program  Sec. 17 of the Child Nutrition   
 for women, infants, and children       Act of 1966, as amended, 42     
 (WIC).                                 U.S.C. 1786.                    

[[Page 414]]

                                                                        
42. Commodity supplemental food        Sec. 32 of the Act of August 24, 
 program.                               1935, as amended, 7 U.S.C. 612c;
                                        Sec. 416 of the Agricultural Act
                                        of 1949, as amended, 7 U.S.C.   
                                        1431.                           
43. Food distribution program........  Sec. 416 of the Agricultural Act 
                                        of 1949, as amended, 7 U.S.C.   
                                        1431; Sec. 32 of the Act of     
                                        August 24, 1935, as amended, 7  
                                        U.S.C. 612c; Secs. 6, 13 and 17 
                                        of the National School Lunch    
                                        Act, as amended, 42 U.S.C. 1755,
                                        1761, 1766; Sec. 8 of the Child 
                                        Nutrition Act of 1966, 42 U.S.C.
                                        1777; Sec. 709 of the Food and  
                                        Agriculture Act of 1965, as     
                                        amended, 7 U.S.C. 1446a-1.      
44. National school lunch program....  National School Lunch Act, as    
                                        amended, 42 U.S.C. 1751-1769a.  
45. School breakfast program.........  Sec. 4 of the Child Nutrition Act
                                        of 1966, as amended, 42 U.S.C.  
                                        1773.                           
46. Special milk program.............  Sec. 3 of the Child Nutrition Act
                                        of 1966, as amended, 42 U.S.C.  
                                        1772.                           
47. Food service equipment assistance  Sec. 5 of the Child Nutrition Act
                                        of 1966, as amended, 42 U.S.C.  
                                        1774; Sec. 5 of the National    
                                        School Lunch Act, as amended, 42
                                        U.S.C. 1754.                    
48. Summer food service program......  Sec. 13 of the National School   
                                        Lunch Act, as amended, 42 U.S.C.
                                        1761.                           
49. Child care food program..........  Sec. 17 of the National School   
                                        Lunch Act, as amended, 42 U.S.C.
                                        1766.                           
50. Nutrition education and training   Secs. 18 and 19 of the Child     
 program.                               Nutrition Act of 1966, 42 U.S.C.
                                        1787, 1788.                     
                                                                        
------------------------------------------------------------------------
         Administered by the Food Safety and Inspection Service         
                                                                        
------------------------------------------------------------------------
51. Payments to States for the         Egg Products Inspection Act, 21  
 inspection of egg handlers to insure   U.S.C. 1031-1056.               
 that they are properly disposing of                                    
 restricted eggs.                                                       
52. Financial and technical            Federal Meat Inspection Act, as  
 assistance to States for meat          amended, 21 U.S.C. 601-695.     
 inspection activities.                                                 
53. Financial and technical            Poultry Products Inspection Act, 
 assistance to States for poultry       as amended, 21 U.S.C. 451-470.  
 inspection activities.                                                 
54. Financial and technical            Talmadge-Aiken Act, 7 U.S.C. 450.
 assistance to States for meat and                                      
 poultry inspection activities.                                         
                                                                        
------------------------------------------------------------------------
                   Administered by the Forest Service                   
                                                                        
------------------------------------------------------------------------
55. Permits for use of National        Act of June 4, 1897, as amended, 
 Forests and National Grasslands by     16 U.S.C. 551; Sec. 501 of the  
 other than individuals at a nominal    Federal Land Policy Management  
 or no charge.                          Act of 1976, 43 U.S.C. 1761;    
                                        Term Permit Act of March 4,     
                                        1915; as amended, 16 U.S.C. 497;
                                        Secs. 3 and 4 of the American   
                                        Antiquities Act of June 8, 1906,
                                        16 U.S.C. 432; Sec. 32 of the   
                                        Bankhead-Jones Farm Tenant Act, 
                                        as amended, 7 U.S.C. 1011.      
56. Permit for land use of Government- Sec. 7 of the Granger-Thye Act of
 owned improvements by other than       April 24, 1950, 16 U.S.C. 580d. 
 individuals at a nominal charge.                                       
57. Permits for disposal of common     Secs. 1-4 of the Act of July 31, 
 varieties of mineral materials from    1947, as amended, 30 U.S.C. 601-
 lands under the Forest Service         603, 611.                       
 jurisdiction for use by other than                                     
 individuals at a nominal or no                                         
 charge.                                                                
58. Easements for use of National      Sec. 32 of the Bankhead-Jones    
 Forests and Grasslands by other than   Farm Tenant Act, as amended, 7  
 individuals at a nominal or no         U.S.C. 1011; Sec. 501 of the    
 charge.                                Federal Land Policy and         
                                        Management Act of 1976, 43      
                                        U.S.C. 1761.                    
59. Easements for road rights-of-way   Sec. 2 of the Act of October 13, 
 over lands administered by the         1964, 16 U.S.C. 533.            
 Forest Service.                                                        
60. Road rights-of-way...............  Federal Highway Act of 1958, 23  
                                        U.S.C. 107, 317.                
61. Rights-of-ways for wagon roads or  Sec. 501 of the Act of March 3,  
 railroads.                             1899, 16 U.S.C. 525.            
62. Timber granted free or at nominal  Sec. 1 of the Act of June 4,     
 cost to any group.                     1897, as amended, 16 U.S.C. 551;
                                        Sec. 32 of the Bankhead-Jones   
                                        Farm Tenant Act, as amended, 7  
                                        U.S.C. 1011.                    
63. Transfer for fire-lookout towers,  Sec. 5 of the Act of June 20,    
 improvements and land to States        1958, 16 U.S.C. 565b.           
 political subdivisions.                                                
64. Payment of 25 percent of National  Act of May 23, 1908, as amended, 
 Forest receipts to States for          16 U.S.C. 500.                  
 schools and roads.                                                     
65. Payment to Minnesota from          Sec. 5 of the Act of June 22,    
 National Forest receipts of a sum      1948, as amended, 16 U.S.C.     
 based on a formula.                    577g, 577g-1.                   
66. Payment of 25 percent of net       Sec. 33 of the Bankhead-Jones    
 revenues from Title III, Bankhead-     Farm Tenant Act, as amended, 7  
 Jones Farm Tenant Act lands to         U.S.C. 1012.                    
 counties for schools and road                                          
 purposes.                                                              
67. Cooperative action to protect,     Cooperative Forestry Assistance  
 develop, manage, and utilize forest    Act of 1978, 16 U.S.C. 2101-    
 resources on State and private lands.  2111.                           
68. Advance of funds for cooperative   Sec. 20 of the Granger-Thye Act  
 research.                              of April 24, 1950, 16 U.S.C.    
                                        581i-1.                         
69. Grants for support of scientific   Act of September 6, 1958, 42     
 research.                              U.S.C. 1891-1893.               
70. Research cooperation.............  Forest and Rangeland Renewable   
                                        Resources Research Planning Act 
                                        of 1974, as amended, 16 U.S.C.  
                                        1600-1614.                      

[[Page 415]]

                                                                        
71. Youth conservation corps State     Act of August 13, 1970, as       
 grant program.                         amended, 16 U.S.C. 1701-1706.   
72. Young adult conservation corps     Secs. 801-809 of the             
 State grant program.                   Comprehensive Employment and    
                                        Training Act, as amended, 29    
                                        U.S.C. 991-999.                 
73. Grants to Maine, Vermont, and New  Older Americans Act of 1965, as  
 Hampshire for the purpose of           amended, 42 U.S.C. 3001-3057g.  
 assisting economically disadvantaged                                   
 citizens over 55 years of age.                                         
74. Senior community service           Sec. 902(b)(2) of Title IX of the
 employment program (SCSEP).            Older Americans Amendments of   
                                        1975, 42 U.S.C.                 
                                                                        
------------------------------------------------------------------------
        Administered by the Rural Electrification Administration        
                                                                        
------------------------------------------------------------------------
75. Rural electrification and rural    Rural Electrification Act of     
 telephone programs.                    1963, as amended, 7 U.S.C. 901- 
                                        950b.                           
76. CATV, community facilities         Secs. 306 and 310B of the        
 program.                               Consolidated Farm and Rural     
                                        Development Act of 1979, 7      
                                        U.S.C. 1926, 1932.              
                                                                        
------------------------------------------------------------------------
           Administered by Science and Education Program Staff          
                                                                        
------------------------------------------------------------------------
77. Higher education.................  Sec. 22 of the Act of June 29,   
                                        1935, as amended, 7 U.S.C. 329; 
                                        Sec. 1417 of the Food and       
                                        Agriculture Act of 1977, 7      
                                        U.S.C. 3152.                    
                                                                        
------------------------------------------------------------------------
              Administered by the Soil Conservation Service             
                                                                        
------------------------------------------------------------------------
78. Soil and water conservation......  Secs. 1-6 and 17 of the Soil     
                                        Conservation and Domestic       
                                        Allotment Act, as amended, 16   
                                        U.S.C. 590a-590f, 590q.         
79. Plant materials for conservation.  Secs. 1-6 and 17 of the Soil     
                                        Conservation and Domestic       
                                        Allotment Act, as amended, 16   
                                        U.S.C. 590a-590f, 590q.         
80. Resource, conservation and         Secs. 31 and 32 of the Bankhead- 
 development.                           Jones Farm Tenant Act, as       
                                        amended, 7 U.S.C. 1010, 1111;   
                                        Secs. 1-6 and 17 of the Soil    
                                        Conservation and Domestic       
                                        Allotment Act, as amended, 16   
                                        U.S.C. 590a-590f, 590q.         
81. Watershed protection and flood     Watershed Protection and Flood   
 prevention.                            Prevention Act, as amended, 16  
                                        U.S.C. 1001-1008.               
82. Great plains conservation........  Secs. 1-6 and 17 of the Soil     
                                        Conservation and Domestic       
                                        Allotment Act, as amended, 16   
                                        U.S.C. 590a-590f, 590q.         
83. Soil survey......................  Secs. 1-6 and 17 of the Soil     
                                        Conservation and Domestic       
                                        Allotment Act, as amended, 16   
                                        U.S.C. 590a-590f, 590q.         
84. River basin surveys and            Sec. 6 of the Watershed          
 investigations.                        Protection and Flood Prevention 
                                        Act, 16 U.S.C. 1006.            
85. Snow survey and water supply       Secs. 1-6 and 17 of the Soil     
 forecasting.                           Conservation and Domestic       
                                        Allotment Act, as amended, 16   
                                        U.S.C. 590a-590f, 590q.         
86. Land inventory and monitoring....  Secs. 1-6 and 17 of the Soil     
                                        Conservation and Domestic       
                                        Allotment Act, as amended, 16   
                                        U.S.C. 590a-590f, 590q; Sec. 302
                                        of the Rural Development Act of 
                                        1972, 7 U.S.C. 1010a.           
87. Resource appraisal and program     Soil and Water Resources         
 development.                           Conservation Act of 1977, 16    
                                        U.S.C. 2001-2009.               
88. Rural clean water program........  Clean Water Act, 33 U.S.C. 1251- 
                                        1376.                           
89. Rural abandoned mine program.....  Secs. 406-413 of the Surface     
                                        Mining Control and Reclamation  
                                        Act of 1977, 30 U.S.C. 1236-    
                                        1243.                           
90. Emergency watershed protection...  Sec. 7 of the Act of June 28,    
                                        1938, as amended, 33 U.S.C. 701b-
                                        1; Sec. 403, Agriculture Credit 
                                        Act of 1978, 16 U.S.C. 2203.    
91. Eleven authorized watershed        Sec. 13 of the Act of December   
 projects.                              22, 1944, 58 Stat. 905.         
                                                                        
------------------------------------------------------------------------
              Administered by the Office of Transportation              
                                                                        
------------------------------------------------------------------------
92. Transportation services..........  Sec. 201 of the Agricultural     
                                        Adjustment Act of 1938, 7 U.S.C.
                                        1291; Sec. 203(j) of the        
                                        Agricultural Marketing Act of   
                                        1946, as amended, 7 U.S.C.      
                                        1622(l); Sec. 104 of the        
                                        Agricultural Trade Development  
                                        and Assistance Act of 1954, as  
                                        amended, 7 U.S.C. 1704.         
------------------------------------------------------------------------


[[Page 416]]



PART 15e--ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS OR ACTIVITIES CONDUCTED BY THE UNITED STATES DEPARTMENT OF AGRICULTURE--Table of Contents




Sec.
15e.101  Purpose.
15e.102  Application.
15e.103  Definitions.
15e.104-15e.109  [Reserved]
15e.110  Self-evaluation.
15e.111  Notice.
15e.112-15e.129  [Reserved]
15e.130  General prohibitions against discrimination.
15e.131-15e.139  [Reserved]
15e.140  Employment.
15e.141-15e.148  [Reserved]
15e.149  Program accessibility: Discrimination prohibited.
15e.150  Program accessibility: Existing facilities.
15e.151  Program accessibility: New construction and alterations.
15e.152-15e.159  [Reserved]
15e.160  Communications.
15e.161-15e.169  [Reserved]
15e.170  Compliance procedures
15e.171-15e.999  [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 58 FR 57697, 57699, Oct. 26, 1993, unless otherwise noted.



Sec. 15e.101  Purpose.

    The purpose of this part is to effectuate section 119 of the 
Rehabilitation, Comprehensive Services, and Developmental Disabilities 
Amendments of 1978, which amended section 504 of the Rehabilitation Act 
of 1973 to prohibit discrimination on the basis of handicap in programs 
or activities conducted by Executive agencies or the United States 
Postal Service.



Sec. 15e.102  Application.

    This part (Secs. 15e.101--15e.170) applies to all programs or 
activities conducted by the agency, except for programs or activities 
conducted outside the United States that do not involve individuals with 
handicaps in the United States.



Sec. 15e.103  Definitions.

    For purposes of this part, the term--
    Assistant Attorney General means the Assistant Attorney General, 
Civil Rights Division, United States Department of Justice.
    Auxiliary aids means services or devices that enable persons with 
impaired sensory, manual, or speaking skills to have an equal 
opportunity to participate in, and enjoy the benefits of, programs or 
activities conducted by the agency. For example, auxiliary aids useful 
for persons with impaired vision include readers, Brailled materials, 
audio recordings, and other similar services and devices. Auxiliary aids 
useful for persons with impaired hearing include telephone handset 
amplifiers, telephones compatible with hearing aids, telecommunication 
devices for deaf persons (TTD's), interpreters, notetakers, written 
materials, and other similar services and devices.
    Complete complaint means a written statement that contains the 
complainant's name and address and describes the agency's alleged 
discriminatory action in sufficient detail to inform the agency of the 
nature and date of the alleged violation of section 504. It shall be 
signed by the complainant or by someone authorized to do so on his or 
her behalf. Complaints filed on behalf of classes or third parties shall 
describe or identify (by name, if possible) the alleged victims of 
discrimination.
    Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, rolling stock or other 
conveyances, or other real or personal property.
    Historic preservation programs means programs conducted by the 
agency that have preservation of historic properties as a primary 
purpose.
    Historic properties means those properties that are listed or 
eligible for listing in the National Register of Historic Places or 
properties designated as historic under a statute of the appropriate 
State or local government body.
    Individual with handicaps means any person who has a physical or 
mental impairment that substantially limits one or more major life 
activities, has a record of such an impairment, or is regarded as having 
such an impairment. As used in this definition, the phrase:
    (1) Physical or mental impairment includes--

[[Page 417]]

    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
Neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term ``physical or mental 
impairment'' includes, but is not limited to, such diseases and 
conditions as orthopedic, visual, speech, and hearing impairments, 
cerebral palsy, epilepsy, muscular dystrophy, multiple sclerosis, 
cancer, heart disease, diabetes, mental retardation, emotional illness, 
HIV disease (whether symptomatic or asymptomatic), and drug addiction 
and alcoholism.
    (2) Major life activities include functions such as caring for one's 
self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by the agency as constituting 
such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in paragraph (1) of this 
definition but is treated by the agency as having such an impairment.
    Qualified individual with handicaps means--
    (1) With respect to preschool, elementary, or secondary education 
services provided by the agency, an individual with handicaps who is a 
member of a class of persons otherwise entitled by statute, regulation, 
or agency policy to receive education services from the agency;
    (2) With respect to any other agency program or activity under which 
a person is required to perform services or to achieve a level of 
accomplishment, an individual with handicaps who meets the essential 
eligibility requirements and who can achieve the purpose of the program 
or activity without modifications in the program or activity that the 
agency can demonstrate would result in a fundamental alteration in its 
nature;
    (3) With respect to any other program or activity, an individual 
with handicaps who meets the essential eligibility requirements for 
participation in, or receipt of benefits from, that program or activity; 
and
    (4) Qualified handicapped person as that term is defined for 
purposes of employment in 29 CFR 1614.203(a)(6), which is made 
applicable to this part by Sec. 15e.140.
    Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended. As used in 
this part, section 504 applies only to programs or activities conducted 
by Executive agencies and not to federally assisted programs.
    Substantial impairment means a significant loss of the integrity of 
finished materials, design quality, or special character resulting from 
a permanent alteration.
Secs. 15e.104--15e.109  [Reserved]



Sec. 15e.110  Self-evaluation.

    (a) The agency shall, by November 28, 1994, evaluate its current 
policies and practices, and the effects thereof, that do not or may not 
meet the requirements of this part and, to the extent modification of 
any such policies and practices is required, the agency shall proceed to 
make the necessary modifications.
    (b) The agency shall provide an opportunity to interested persons, 
including individuals with handicaps or organizations representing 
individuals with handicaps, to participate in the self-evaluation 
process by submitting comments (both oral and written).
    (c) The agency shall, for at least three years following completion 
of the

[[Page 418]]

self-evaluation, maintain on file and make available for public 
inspection:
    (1) A description of areas examined and any problems identified; and
    (2) A description of any modifications made.



Sec. 15e.111  Notice.

    The agency shall make available to employees, applicants, 
participants, beneficiaries, and other interested persons such 
information regarding the provisions of this part and its applicability 
to the programs or activities conducted by the agency, and make such 
information available to them in such manner as the head of the agency 
finds necessary to apprise such persons of the protections against 
discrimination assured them by section 504 and this part.
Secs. 15e.112--15e.129  [Reserved]



Sec. 15e.130  General prohibitions against discrimination.

    (a) No qualified individual with handicaps shall, on the basis of 
handicap, be excluded from participation in, be denied the benefits of, 
or otherwise be subjected to discrimination under any program or 
activity conducted by the agency.
    (b)(1) The agency, in providing any aid, benefit, or service, may 
not, directly or through contractual, licensing, or other arrangements, 
on the basis of handicap--
    (i) Deny a qualified individual with handicaps the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualified individual with handicaps an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
    (iii) Provide a qualified individual with handicaps with an aid, 
benefit, or service that is not as effective in according equal 
opportunity to obtain the same result, to gain the same benefit, or to 
reach the same level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
individuals with handicaps or to any class of individuals with handicaps 
than is provided to others unless such action is necessary to provide 
qualified individuals with handicaps with aid, benefits, or services 
that are as effective as those provided to others;
    (v) Deny a qualified individual with handicaps the opportunity to 
participate as a member of planning or advisory boards;
    (vi) Otherwise limit a qualified individual with handicaps in the 
enjoyment of any right, privilege, advantage, or opportunity enjoyed by 
others receiving the aid, benefit, or service.
    (2) The agency may not deny a qualified individual with handicaps 
the opportunity to participate in programs or activities that are no 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (3) The agency may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration the purpose 
or effect of which would--
    (i) Subject qualified individuals with handicaps to discrimination 
on the basis of handicap; or
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to individuals with handicaps.
    (4) The agency may not, in determining the site or location of a 
facility, make selections the purpose or effect of which would--
    (i) Exclude individuals with handicaps from, deny them the benefits 
of, or otherwise subject them to discrimination under any program or 
activity conducted by the agency; or
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to individuals with 
handicaps.
    (5) The agency, in the selection of procurement contractors, may not 
use criteria that subject qualified individuals with handicaps to 
discrimination on the basis of handicap.
    (6) The agency may not administer a licensing or certification 
program in a manner that subjects qualified individuals with handicaps 
to discrimination on the basis of handicap, nor may the agency establish 
requirements for the programs or activities of licensees or certified 
entities that subject qualified

[[Page 419]]

individuals with handicaps to discrimination on the basis of handicap. 
However, the programs or activities of entities that are licensed or 
certified by the agency are not, themselves, covered by this part.
    (c) The exclusion of nonhandicapped persons from the benefits of a 
program limited by Federal statute or Executive order to individuals 
with handicaps or the exclusion of a specific class of individuals with 
handicaps from a program limited by Federal statute or Executive order 
to a different class of individuals with handicaps is not prohibited by 
this part.
    (d) The agency shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified individuals 
with handicaps.
Secs. 15e.131--15e.139  [Reserved]



Sec. 15e.140  Employment.

    No qualified individual with handicaps shall, on the basis of 
handicap, be subjected to discrimination in employment under any program 
or activity conducted by the agency. The definitions, requirements, and 
procedures of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 
791), as established by the Equal Employment Opportunity Commission in 
29 CFR part 1614, shall apply to employment in federally conducted 
programs or activities.
Secs. 15e.141--15e.148  [Reserved]



Sec. 15e.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec. 15e.150, no qualified 
individual with handicaps shall, because the agency's facilities are 
inaccessible to or unusable by individuals with handicaps, be denied the 
benefits of, be excluded from participation in, or otherwise be 
subjected to discrimination under any program or activity conducted by 
the agency.



Sec. 15e.150  Program accessibility: Existing facilities.

    (a) General. The agency shall operate each program or activity so 
that the program or activity, when viewed in its entirety, is readily 
accessible to and usable by individuals with handicaps. This paragraph 
does not--
    (1) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by individuals with handicaps;
    (2) In the case of historic preservation programs, require the 
agency to take any action that would result in a substantial impairment 
of significant historic features of an historic property; or
    (3) Require the agency to take any action that it can demonstrate 
would result in a fundamental alteration in the nature of a program or 
activity or in undue financial and administrative burdens. In those 
circumstances where agency personnel believe that the proposed action 
would fundamentally alter the program or activity or would result in 
undue financial and administrative burdens, the agency has the burden of 
proving that compliance with Sec. 15e.150(a) would result in such 
alteration or burdens. The decision that compliance would result in such 
alteration or burdens must be made by the agency head or his or her 
designee after considering all agency resources available for use in the 
funding and operation of the conducted program or activity, and must be 
accompanied by a written statement of the reasons for reaching that 
conclusion. If an action would result in such an alteration or such 
burdens, the agency shall take any other action that result in such an 
alteration or such burdens but would nevertheless ensure that 
individuals with handicaps receive the benefits and services of the 
program or activity.
    (b) Methods.--(1) General. The agency may comply with the 
requirements of this section through such means as redesign of 
equipment, reassignment of services to accessible buildings, assignment 
of aides to beneficiaries, home visits, delivery of services at 
alternate accessible sites, alteration of existing facilities and 
construction of new facilities, use of accessible rolling stock, or any 
other methods that result in making its programs or activities readily 
accessible to and usable by individuals with handicaps. The agency is 
not required to make structural changes in existing facilities where 
other methods are effective in achieving compliance with this section. 
The agency, in making alterations to existing buildings,

[[Page 420]]

shall meet accessibility requirements to the extent compelled by the 
Architectural Barriers Act of 1968, as amended (42 U.S.C. 4151-4157), 
and any regulations implementing it. In choosing among available methods 
for meeting the requirements of this section, the agency shall give 
priority to those methods that offer programs and activities to 
qualified individuals with handicaps in the most integrated setting 
appropriate.
    (2) Historic preservation programs. In meeting the requirements of 
Sec. 15e.150(a) in historic preservation programs, the agency shall give 
priority to methods that provide physical access to individuals with 
handicaps. In cases where a physical alteration to an historic property 
is not required because of Sec. 15e.150(a)(2) or (a)(3), alternative 
methods of achieving program accessibility include--
    (i) Using audio-visual materials and devices to depict those 
portions of an historic property that cannot otherwise be made 
accessible;
    (ii) Assigning persons to guide individuals with handicaps into or 
through portions of historic properties that cannot otherwise be made 
accessible; or
    (iii) Adopting other innovative methods.
    (c) Time period for compliance. The agency shall comply with the 
obligations established under this section by January 24, 1994, except 
that where structural changes in facilities are undertaken, such changes 
shall be made by November 26, 1996, but in any event as expeditiously as 
possible.
    (d) Transition plan. In the event that structural changes to 
facilities will be undertaken to achieve program accessibility, the 
agency shall develop, by May 26, 1994, a transition plan setting forth 
the steps necessary to complete such changes. The agency shall provide 
an opportunity to interested persons, including individuals with 
handicaps or organizations representing individuals with handicaps, to 
participate in the development of the transition plan by submitting 
comments (both oral and written). A copy of the transition plan shall be 
made available for public inspection. The plan shall, at a minimum--
    (1) Identify physical obstacles in the agency's facilities that 
limit the accessibility of its programs or activities to individuals 
with handicaps;
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
compliance with this section and, if the time period of the transition 
plan is longer than one year, identify steps that will be taken during 
each year of the transition period; and
    (4) Indicate the official responsible for implementation of the 
plan.



Sec. 15e.151  Program accessibility: New construction and alterations.

    Each building or part of a building that is constructed or altered 
by, on behalf of, or for the use of the agency shall be designed, 
constructed, or altered so as to be readily accessible to and usable by 
individuals with handicaps. The definitions, requirements, and standards 
of the Architectural Barriers Act (42 U.S.C. 4151-4157), as established 
in 41 CFR 101-19.600 to 101-19.607, apply to buildings covered by this 
section.
Secs. 15e.152--15e.159  [Reserved]



Sec. 15e.160  Communications.

    (a) The agency shall take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (1) The agency shall furnish appropriate auxiliary aids where 
necessary to afford an individual with handicaps an equal opportunity to 
participate in, and enjoy the benefits of, a program or activity 
conducted by the agency.
    (i) In determining what type of auxiliary aid is necessary, the 
agency shall give primary consideration to the requests of the 
individual with handicaps.
    (ii) The agency need not provide individually prescribed devices, 
readers for personal use or study, or other devices of a personal 
nature.
    (2) Where the agency communicates with applicants and beneficiaries 
by telephone, telecommunication devices

[[Page 421]]

for deaf persons (TDD's) or equally effective telecommunication systems 
shall be used to communicate with persons with impaired hearing.
    (b) The agency shall ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The agency shall provide signage at a primary entrance to each 
of its inaccessible facilities, directing users to a location at which 
they can obtain information about accessible facilities. The 
international symbol for accessibility shall be used at each primary 
entrance of an accessible facility.
    (d) This section does not require the agency to take any action that 
it can demonstrate would result in a fundamental alteration in the 
nature of a program or activity or in undue financial and administrative 
burdens. In those circumstances where agency personnel believe that the 
proposed action would fundamentally alter the program or activity or 
would result in undue financial and administrative burdens, the agency 
has the burden of proving that compliance with Sec. 15e.160 would result 
in such alteration or burdens. The decision that compliance would result 
in such alteration or burdens must be made by the agency head or his or 
her designee after considering all agency resources available for use in 
the funding and operation of the conducted program or activity and must 
be accompanied by a written statement of the reasons for reaching that 
conclusion. If an action required to comply with this section would 
result in such an alteration or such burdens, the agency shall take any 
other action that would not result in such an alteration or such burdens 
but would nevertheless ensure that, to the maximum extent possible, 
individuals with handicaps receive the benefits and services of the 
program or activity.
Secs. 15e.161--15e.169  [Reserved]



Sec. 15e.170  Compliance procedures.

    (a) Except as provided in paragraph (b) of this section, this 
section applies to all allegations of discrimination on the basis of 
handicap in programs and activities conducted by the agency.
    (b) The agency shall process complaints alleging violations of 
section 504 with respect to employment according to the procedures 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1614 pursuant to section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791).
    (c) The Director, Office of Advocacy and Enterprise, shall be 
responsible for coordinating implementation of this section and shall 
make the determinations described in paragraph (g) of this section. 
Complaints may be sent to Office of Advocacy and Enterprise, U.S. 
Department of Agriculture, Washington, DC 20250.
    (d) The agency shall accept and investigate all complete complaints 
for which it has jurisdiction. All complete complaints must be filed 
within 180 days of the alleged act of discrimination. The agency may 
extend this time period for good cause.
    (e) If the agency receives a complaint over which it does not have 
jurisdiction, it shall promptly notify the complainant and shall make 
reasonable efforts to refer the complaint to the appropriate Government 
entity.
    (f) The agency shall notify the Architectural and Transportation 
Barriers Compliance Board upon receipt of any complaint alleging that a 
building or facility that is subject to the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157), is not readily accessible to 
and usable by individuals with handicaps.
    (g) Within 180 days of the receipt of a complete complaint for which 
it has jurisdiction, the agency shall notify the complainant of the 
results of the investigation in a letter containing--
    (1) Findings of fact and conclusions of law;
    (2) A description of a remedy for each violation found; and
    (3) A notice of the right to appeal.
    (h) Appeals of the findings of fact and conclusions of law or 
remedies must be filed by the complainant within 90 days of receipt from 
the agency of the letter required by Sec. 15e.170(g). The agency may 
extend this time for good cause.

[[Page 422]]

    (i) Timely appeals shall be accepted and processed by the head of 
the agency.
    (j) The head of the agency shall notify the complainant of the 
results of the appeal within 60 days of the receipt of the request. If 
the head of the agency determines that additional information is needed 
from the complainant, he or she shall have 60 days from the date of 
receipt of the additional information to make his or her determination 
on the appeal.
    (k) The time limits cited in paragraphs (g) and (j) of this section 
may be extended with the permission of the Assistant Attorney General.
    (l) The agency may delegate its authority for conducting complaint 
investigations to other Federal agencies, except that the authority for 
making the final determination may not be delegated to another agency.

[58 FR 57697, 57699, Oct. 26, 1993, as amended at 58 FR 57697, Oct. 26, 
1993]
Secs. 15e.171--15e.999  [Reserved]



PART 16 [RESERVED]






PART 17--SALES OF AGRICULTURAL COMMODITIES MADE AVAILABLE UNDER TITLE I OF THE AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954, AS AMENDED--Table of Contents




 Subpart A--Regulations Governing the Financing of Commercial Sales of 
                        Agricultural Commodities

17.1  General.
17.2  Definition of terms.
17.3  Eligible commodities.
17.4  Purchase authorizations.
17.5  Agents of the participant or importer.
17.6  Contracts between commodity suppliers and importers.
17.7  Eligibility of suppliers and selling agents.
17.8  Fees, discounts, commissions, brand names.
17.9  Notice of sale procedures (tobacco and cotton).
17.10  Notice of sale procedures (commodities other than tobacco and 
          cotton).
17.11  Commodity price provisions.
17.12  Reports required from suppliers of commodities and ocean 
          transportation.
17.13  Refund to CCC by the participant for failure to comply.
17.14  Ocean transportation.
17.15  Letter of commitment method of financing.
17.16  Reimbursement method of financing.
17.17  Adjustment refunds and insurance.
17.18  Documentation.
17.19  Documents in support of drafts drawn on CCC by banking 
          institutions.
17.20  Responsibilities of banking institutions for transactions under 
          letters of commitment.
17.21  FSA Offices.
17.22  Supplier's records.

Appendix A to Part 17--Contracting Requirements
Appendix B to Part 17--Documentary Requirements

    Authority: 7 U.S.C. 1701-1705, 1736a, 1736c, 5676; E.O. 12220, 45 FR 
44245.

    Source: 51 FR 47409, Dec. 31, 1986, unless otherwise noted.

    Editorial Note: Nomenclature changes affecting part 17 appear at 60 
FR 62706, Dec. 7, 1995.



 Subpart A--Regulations Governing the Financing of Commercial Sales of 
                        Agricultural Commodities



Sec. 17.1  General.

    (a) What this subpart covers. This subpart contains the regulations 
governing the financing of the sale and exportation of agricultural 
commodities by the Commodity Credit Corporation, through private trade 
channels to the maximum extent practicable, under the authority of title 
I of the Agricultural Trade Development and Assistance Act of 1954, as 
amended (hereinafter called ``the Act'').
    (b) Agricultural commodities agreements. (1) Under the Act, the 
Government of the United States enters into Agricultural Commodities 
Agreements with governments of friendly foreign countries or with 
private trade entities. These agreements cover financing of the sale and 
exportation of agricultural commodities, including certain ocean 
transportation costs.
    (2)(i) Government-to-government Agricultural Commodities Agreements 
may provide for (A) sales for dollars on credit terms, (B) sales for 
foreign currencies on credit terms which permit conversion to dollars, 
and (C) sales for foreign currencies.

[[Page 423]]

    (ii) Agreements with private trade entities are limited to sales for 
dollars on credit terms.
    (c) Purchase authorizations. These regulations cover, among other 
things, the issuance by the General Sales Manager of purchase 
authorizations which authorize the participant to (1) purchase 
agricultural commodities and (2) procure ocean transportation therefor.
    (d) Financing. Following issuance of a purchase authorization, and 
on application, the Controller, Commodity Credit Corporation, will issue 
letters of commitment to banking institutions designated by the 
participant and acceptable to CCC, unless the participant elects to 
procure the commodities under the reimbursement method of financing. The 
cost of ocean freight or ocean freight differential will be financed by 
CCC only when specifically provided for in the purchase authorization.
    (1) Under the letter of commitment method of financing, the U.S. 
supplier of agricultural commodities will receive payment as provided in 
the regulations in this subpart under irrevocable letters of credit 
issued, confirmed or advised by a banking institution for the 
commodities and, when authorized in the purchase authorization and 
included as a part of the commodity cost, for the ocean freight or the 
ocean freight differential, and marine insurance.
    (2) Notwithstanding any other provision of these regulations, if 
authorized by the purchase authorization, ocean freight or ocean freight 
differential shall be financed by CCC under the letter of commitment 
method of financing in cases where ocean freight is not included as a 
part of the commodity cost, subject to the applicable provisions of 
these regulations and such other provisions as may be specified in the 
purchase authorization. In such case, the supplier of ocean freight will 
receive payment for ocean freight or ocean freight differential as 
provided in these regulations and the purchase authorization under 
irrevocable letters of credit issued, confirmed or advised by a banking 
institution.
    (3) Under the reimbursement method of financing, the U.S. supplier 
will obtain payment from the participant or its assignee as provided in 
the regulations in this subpart for the cost of commodities and, when 
authorized in the purchase authorization and included as a part of the 
commodity cost, for the ocean freight or the ocean freight differential, 
and marine insurance. When ocean freight or ocean freight differential 
is approved for financing on Form CCC-106 and is to be financed 
separately from the commodity cost, the supplier of ocean transportation 
will obtain payment from the participant or its assignee.
    (4) To the extent provided in the regulations in this subpart, CCC 
will reimburse banking institutions for payments made under letters of 
commitment and CCC will reimburse the participant or its assignee for 
ocean freight or ocean freight differential financed separately from the 
commodity and for the commodities procured under the reimbursement 
method of financing.
    (e) Advice of amount financed. Under the letter of commitment method 
of financing, the banking institutions will forward documents and advice 
of the amount financed by CCC to the approved applicant or to the bank 
or agency authorized by the approved applicant to open related letters 
of credit. Under the reimbursement method of financing, CCC will forward 
advice of payment to the participant or its assignee.
    (f) Where information is available. The Foreign Agricultural Service 
issues a press release whenever a purchase authorization is issued. 
General information about purchase authorizations and operations under 
these regulations is available from the Director, Public Law 480 
Operations Division, Foreign Agricultural Service, U.S. Department of 
Agriculture, Washington, DC 20250-1033. Information about financing 
operations under these regulations, including forms prescribed for use 
thereunder, is available from the Controller, Commodity Credit 
Corporation, U.S. Department of Agriculture, P.O. Box 2415, Washington, 
DC 20013. A copy of each press release is made available to the Small 
Business Administration to assist small business firms to have an

[[Page 424]]

adequate and a fair opportunity to participate as suppliers.

[51 FR 47409, Dec. 31, 1986, as amended at 54 FR 21931, May 22, 1989; 60 
FR 62705, Dec. 7, 1995]



Sec. 17.2  Definition of terms.

    Terms used in the regulations in this subpart are defined or 
identified as follows, subject to amplification in subsequent sections:
    (a) Terms relating to the United States, its agencies and officials.
    AMS means the Agricultural Marketing Service, U.S. Department of 
Agriculture.
    CCC means the Commodity Credit Corporation, U.S. Department of 
Agriculture.
    Controller means the Controller, Commodity Credit Corporation, or 
the Controller's designee.
    FAS means the Foreign Agricultural Service, U.S. Department of 
Agriculture.
    FGIS means the Federal Grain Inspection Service, U.S. Department of 
Agriculture.
    FSA means the Farm Service Agency, U.S. Department of Agriculture.
    FSA Offices means the FSA offices listed in Sec. 17.21 and any other 
offices or agencies which may succeed to the functions of these offices.
    General Sales Manager and GSM mean the General Sales Manager, FAS, 
or the General Sales Manager's designee.
    Secretary means the Secretary of Agriculture of the United States, 
or the Secretary's designee.
    USDA means the U.S. Department of Agriculture and includes all or 
any of the agencies mentioned in this paragraph (a).
    United States means the 50 States, the District of Columbia, and 
Puerto Rico.
    (b) Terms relating to ocean transportation.
    Dry bulk carrier means a non-common carrier vessel, other than a 
tanker, commonly referred to as a ``tramp.'' Rates are negotiated 
covering the movement of a specific quantity of a specific commodity, at 
a specific time from a specific port or ports to a specific destination 
port or ports.
    Dry cargo liners and liners are interchangeable terms meaning 
regularly scheduled vessels on specific trade routes.
    Form CCC-106 means the various forms entitled ``Advice of Vessel 
Approval,'' and refers to either the Form CCC-106-1 (Supplier of 
Commodity); Form CCC-106-2 (Ocean Carrier); Form CCC-106-3 (Cotton); or 
any or all of them, as applicable.
    Notice of arrival means a written notice or copy of a cablegram in 
accordance with Sec. 17.14(g) stating that the vessel has arrived at the 
first port of discharge.
    Ocean bill of lading means
    (1) In the case of cargo carried on a vessel other than LASH or 
Seabee barges: An ``on-board'' bill of lading, or a bill of lading with 
an ``on-board'' endorsement, which is dated and signed or initialed on 
behalf of the carrier, or
    (2) In the case of cargo carried in a LASH or Seabee barge:
    (i) For the purpose of financing commodity price, an ``on-board'' 
bill of lading showing the date the commodity was loaded on board 
barges, which is dated and signed or initialed on behalf of the carrier, 
or a bill of lading or a LASH or Seabee barge bill of lading with an 
``on-board barge'' endorsement which is dated and signed or initialed on 
behalf of the carrier.
    (ii) For the purpose of financing ocean freight or ocean freight 
differential, (A) an ``on-board'' bill of lading which is dated and 
signed or initialed on behalf of the carrier indicating that the barge 
containing the cargo was placed aboard the vessel named in the Form CCC-
106 not later than eight (8) running days after the last LASH or Seabee 
barge loading date (contract layday) specified in the Form CCC-106, or 
(B) a bill of lading or a LASH or Seabee barge bill of lading with an 
``on-board ocean vessel'' endorsement which is dated and signed or 
initialed on behalf of the carrier indicating that the barge containing 
the cargo was placed aboard the vessel named in the Form CCC-106 not 
later than eight (8) running days after the last LASH or Seabee barge 
loading date (contract layday) specified in the Form CCC-106.
    (3) Documentary requirements for a copy of an ``ocean bill of 
lading'' refer to a non-negotiable copy thereof.

[[Page 425]]

    Ocean transportation means and is interchangeable with the term 
``ocean freight''.
    Tanker means a vessel which is designed to carry full cargoes of 
liquids. Because of compartmentation, tankers can carry a combination of 
cargoes, including bulk grain. Rates are negotiated in the same manner 
as with dry bulk carriers.
    (c) Other terms.
    Affiliate and associated company mean any legal entity which owns or 
controls, or is owned or controlled by, another legal entity. For a 
corporation, ownership of the voting stock is the controlling criterion. 
A legal entity is considered to own or control a second legal entity 
if--
    (1) The legal entity owns an interest of 50 percent or more in the 
second legal entity, or
    (2) The legal entity and one or more other legal entities, in which 
it owns an interest of 50 percent or more, together own an interest of 
50 percent or more in the second legal entity, or
    (3) The legal entity owns an interest of 50 percent or more in 
another legal entity which in turn owns an interest of 50 percent or 
more in the second legal entity.
    Approved applicant means the bank in the importing country, or other 
agency acceptable to CCC, designated by the participant and named in a 
letter of commitment issued to a banking institution. This term includes 
any agent authorized to act on behalf of the approved applicant.
    Banking institution means a banking institution organized under the 
laws of the United States, any State, or the District of Columbia.
    Commodity means an agricultural commodity produced in the United 
States, or product thereof produced in the United States, as specified 
in the applicable purchase authorization.
    Copy means a photocopy or other type of copy of an original document 
showing all data shown on the original, including signature or the name 
of the person signing the original, or, if the signature or name is not 
shown on the copy, a statement that the original was signed.
    Delivery means the transfer to or for the account of an importer of 
custody and right of possession of the commodity at U.S. ports or 
Canadian transshipment points in accordance with the delivery terms of 
the contract and purchase authorization. For purposes of financing, 
delivery is deemed to occur as of the on-board date shown on the ocean 
bill of lading.
    Destination country means the foreign country to which the commodity 
is exported.
    Expediting services means services provided to the vessel owner at 
the discharge port in order to facilitate the discharge and sailing of 
the vessel; this may include assisting with paperwork, obtaining permits 
and inspections, supervision and consultation.
    Foreign currency and local currency are interchangeable terms and 
mean the currency of the importing country.
    Foreign currency sale means a sale for the currency of the importing 
country.
    Form CCC-329 means the signed original of Form CCC-329, ``Supplier's 
Certificate.''
    Importer means the person which contracts with the supplier for the 
importation of the commodity. The importer may be the participant or any 
person to which a participant has issued a subauthorization.
    Importing country means any nation with which an agreement has been 
signed under the Act.
    Invitation for bids and IFB mean a publicly advertised request for 
offers.
    Legal entity includes, but is not limited to, an individual (except 
that an individual and his or her spouse and their minor children are 
considered as one legal entity), partnership, association, company, 
corporation and trust.
    Letter of credit means an irrevocable commercial letter of credit 
issued, confirmed, or advised by a banking institution on behalf of an 
approved applicant.
    Long-term credit sale is the collective term used to denote either 
or both of the following: (i) Sales to an importing country or a private 
trade entity for dollars on credit terms or (ii) sales to an importing 
country for local currency on credit terms and on terms which permit 
conversion to dollars.
    Ocean transportation brokerage means services provided by shipping 
agents related to their engagement to arrange

[[Page 426]]

ocen transportation and services provided by ships brokers related to 
their engagement to arrange employment of vessels.
    Ocean transportation-related services means furninshing the 
following services: lightening, stevedoring, and bagging (whether these 
services are performed at load or discharge), and inland transportation, 
i.e., transportation from the discharge port to the designated inland 
point of entry in the destination country, if the discharge port is not 
located in the destination country.
    Participant is the collective term used to denote the importing 
country or the private trade entity with which an agreement has been 
negotiated under the Act.
    Person means an individual or other legal entity.
    Purchase authorization means Form FAS-480 (Commodity), 
``Authorization to Purchase Agricultural Commodities,'' issued to a 
participant under these regulations.
    Purchasing agent means any person engaged by a participant to 
procure agricultural commodities.
    Private trade entity means the individual or other nongovernmental 
legal entity with which an agreement has been negotiated under the Act.
    Selling agent means any person who operates as a bona fide 
representative for the supplier of the commodity and who is not employed 
by or otherwise connected with the importer or the importing country.
    Shipping agent means any person engaged by a participant to arrange 
ocean transportation.
    Ships broker means any person engaged by a supplier of ocean 
transportation to arrange employment of vessels.
    Supplier means any person who sells a commodity to an importer under 
the terms of a purchase authorization, or who sells ocean transportation 
to an importer or supplier of the commodity under the terms of a 
purchase authorization.

[51 FR 47409, Dec 31, 1986; 52 FR 1623, Jan. 15, 1987, as amended at 54 
FR 21931, May 22, 1989; 60 FR 62705, Dec. 7, 1995; 61 FR 17823, Apr. 23, 
1996]



Sec. 17.3  Eligible commodities.

    (a) General. Commodities eligible for financing are those 
commodities determined by the Secretary to be available for disposition 
under the Act.
    (b) Commodity description and specification. The commodity and 
quantity thereof to be financed shall be as described and specified in 
the relevant purchase authorization.
    (c) Cotton textiles. (1) Except as provided in paragraph (c)(2) of 
this section, financing of textiles under these regulations is limited 
to cotton yarns and fabrics processed up to and including the dyed and 
printed state, and preshrinking. Any processing of such yarns and 
fabrics beyond this stage will be at the expense of the participant.
    (2) Purchase authorizations may permit cotton textiles processed 
beyond the stage described in paragraph (c)(1) of this section to be 
purchased, but the maximum financing by CCC is limited to the equivalent 
value of the cotton yarns and fabrics described in paragraph (c)(1) of 
this section, contained in the textiles, plus eligible ocean 
transportation costs.
    (3) Financing is available only for textiles manufactured entirely 
of U.S. cotton in the United States. The General Sales Manager will not 
issue a purchase authorization for a textile of a specification not 
produced in the United States, but may issue a purchase authorization 
for the financing of a textile produced in the United States which has a 
specification reasonably close to that requested by the participant.



Sec. 17.4  Purchase authorizations.

    (a) Request. For each purchase authorization, the participant shall 
submit to the General Sales Manager a written request for issuance, 
specifying the commodity and including any other information required by 
the General Sales Manager.
    (b) Issuance of purchase authorization. When the request has been 
approved by the General Sales Manager, the GSM shall issue a purchase 
authorization to the participant. The form used is Form FAS-480 
(Commodity), ``Authorization to Purchase Agricultural Commodities.''

[[Page 427]]

    (c) Purchase authorizations. Each purchase authorization includes 
the following information:
    (1) The commodity to be purchased, approximate quantity and maximum 
dollar value;
    (2) Contracting requirements in addition to or in lieu of those in 
appendix A of this subpart, if any;
    (3) The contracting period, during which suppliers and importers 
must enter into contracts; and the delivery period, during which the 
commodity must be delivered;
    (4) The terms of delivery to the importer;
    (5) Documentation required in support of drafts presented to banks 
by suppliers in addition to or in lieu of the documentation specified in 
appendix B of this subpart;
    (6) Provisions relating to payment to CCC, if applicable;
    (7) The FSA office which administers the financing operation on 
behalf of CCC;
    (8) The method of financing;
    (9) Any limitation relating to financing by CCC in addition to or in 
lieu of those specified in these regulations;
    (10) Authorization to procure ocean transportation, and provisions 
relating to the financing of ocean freight or ocean freight 
differential, as applicable;
    (11) Any other provisions considered necessary by the General Sales 
Manager.
    (d) Applicability of this subpart. In addition to the provisions of 
a particular purchase authorization, each purchase authorization, unless 
otherwise provided, is subject to the provisions of this subpart to the 
same extent as if the provisions were fully set forth in the purchase 
authorization.
    (e) Modification or revocation. The General Sales Manager reserves 
the right at any time for any reason or cause whatsoever to supplement, 
modify, or revoke any purchase authorization, including the termination 
of deliveries, if it is determined to be in the interest of the U.S. 
Government. CCC shall reimburse suppliers who would otherwise be 
entitled to be financed by CCC for costs which were incurred as a result 
of such action by the General Sales Manager in connection with firm 
sales or shipping contracts, and which were not otherwise recovered by 
the supplier after a reasonable effort to minimize such costs: Provided, 
however, That such reimbursement shall not be made to a supplier if the 
General Sales Manager determines that the GSM's action was taken because 
the supplier failed to comply with the requirements of the regulations 
in this subpart or the applicable purchase authorization; Provided 
further, That reimbursement to suppliers of ocean transportation shall 
not exceed the ocean freight differential when the purchase 
authorization provides only for financing the differential.
    (f) Extension of delivery period in a purchase authorization. The 
General Sales Manager will consider a request for extension of the 
delivery period in a purchase authorization only if the participant 
submits the request. The request should be submitted as soon as the 
participant knows that delivery may not be completed, or was not 
completed, within the period specified in the purchase authorization. 
The request for extension must establish to the satisfaction of the GSM 
that failure to complete delivery was due to a cause other than the 
fault or negligence of the importer or the supplier. The GSM may also 
approve the request for extension if the GSM determines that an 
extension would be in the interest of the U.S. Government.
    (g) Subauthorizations. (1) The participant may issue 
subauthorizations to importers consistent with the terms of the 
applicable purchase authorization. The participant, in subauthorizing, 
shall instruct importers to use the applicable purchase authorization 
number in placing orders, and shall specify to importers all the 
provisions of the applicable purchase authorization which apply to the 
subauthorization.
    (2) Each importer granted a subauthorization shall inform the 
supplier that the transaction is to be financed under the provisions of 
the regulations in this subpart. The importer shall also provide the 
supplier with the applicable purchase authorization number. The importer 
shall inform the supplier of any special provisions which affect the 
supplier in carrying out the transaction.

[[Page 428]]

    (h) Letter of conditional reimbursement. The General Sales Manager 
may choose to issue a letter of conditional reimbursement to an 
importing country or private trade entity with which an Agricultural 
Commodities Agreement is being considered. This letter authorizes the 
importing country or private trade entity to apply for a purchase 
authorization under which it may obtain reimbursement for certain costs 
it incurs in the procurement of the commodity and ocean freight before 
the Agricultural Commodities Agreement is signed. The reimbursement is 
conditioned on the signing of an Agricultural Commodities Agreement with 
the participant, providing for the financing of the commodity and ocean 
freight, and on the participant's complying with the terms and 
conditions set forth in the agreement, the letter of conditional 
reimbursement, and the purchase authorization.



Sec. 17.5  Agents of the participant or importer.

    (a) General. (1) A participant or importer is not required to use a 
purchasing agent or shipping agent, or employ the services of any other 
agent, broker, consultant or other representative (hereafter ``agent'') 
in connection with arranging the purchase of agricultural commodities 
under title I of the Act and arranging ocean transportation for such 
commodities; however, if an agent is to be used, the participant shall 
submit the nomination of the agent to the GSM in writing along with a 
copy of the proposed agreement between the participant or importer and 
such agent. The written nomination shall also specify the period of time 
to be covered by the nomination. A person may not act as agent for a 
participant or importer unless the Deputy Administrator, Export Credits 
has provided a written statement that the nomination is accepted in 
accordance with the provisions of this section.
    (2) See Sec. 17.8(c) regarding commissions, fees, or other 
compensation of any kind to agents, brokers, consultants or other 
representatives of a participant or importer.
    (3) [Reserved]
    (4) A freight agent employed by the Agency for International 
Development under titles II and III and is not eligible to act as an 
agent for the participant or importer during the period of such 
employment. A subcontractor of such freight agent is not eligible to act 
as an agent for the participant or importer during the period of its 
subcontract.
    (5) A shipping agent may not take any action which would give a 
competitive advantage to any supplier of commodities or ocean 
transportation. This includes, but is not limited to, providing advance 
notice of IFB's or amendments, or selectively enforcing IFB or contract 
requirements.
    (b) Affiliate defined. For purposes of this section, the term 
affiliate has the meaning provided in Sec. 17.2(c) and, in addition, 
persons will also be considered to be affiliates if any of the following 
conditions are met:
    (1) There are any common officers or directors.
    (2) There is any investment by approved commodity suppliers, selling 
agents, or persons engaged in furnishing ocean transportation or ocean 
transportation-related services for commodities provided under any title 
of the Act, section 416(b) of the Agricultural Act of 1949, or the Food 
for Progress Act of 1985, whether or not any part of the ocean 
transportation is financed by the U.S. Government, or by agents, 
brokers, consultants or other representatives of such persons; or their 
officers or directors, in the agent of the participant or importer.
    (3) There is any investment by the agent of the participant or 
importer, or its officers or directors, in approved commodity suppliers; 
selling agents; or persons engaged in furnishing ocean transportation or 
ocean transportation-related services for commodities provided under any 
title of the Act, section 416(b) of the Agricultural Act of 1949, or the 
Food for Progress Act of 1985, whether or not any part of the ocean 
transportation is financed by the U.S. Government, or in agents, 
brokers, consultants or other representatives of such persons.

These conditions include those cases in which investment has been 
concealed by the utilization of any scheme or device to circumvent the 
purposes of this

[[Page 429]]

section but does not include investment in any mutual fund.
    (c) Information to be furnished. A person nominated to act as an 
agent of the participant or importer, and any independent contractor 
that may be hired as such a person to perform functions of a shipping 
agent, shall furnish to the Deputy Administrator, Export Credits, the 
following information or documentation as may be applicable:
    (1) The names of all incorporators;
    (2) The names and titles of all officers and directors;
    (3) The names of all affiliates, including the names and titles of 
all officers and directors of each affiliate, and a description of the 
type of business in which the affiliate is engaged;
    (4) The names and proportionate share interest of all stockholders;
    (5) If beneficial interest in stock is held by other than the named 
shareholders, the names of the holders of the beneficial interest and 
the proportionate share of each;
    (6) The amount of the subscribed capital;
    (7) For USDA acceptance of a nomination covering services provided 
during U.S. fiscal year 1996 (October 1-September 30) and each U.S. 
fiscal year thereafter, a written statement signed by such person:
    (i) Certifying that, during the U.S. fiscal year covered by USDA's 
acceptance of nomination, the person has not engaged in, and will not 
engage in, supplying commodities under any title of the Act of the Food 
for Progress Act of 1985 or furnishing ocean transportation or ocean 
transportation-related services for commodities provided under any title 
of the Act, section 416(b) of the Agricultural Act of 1949, or the Food 
for Progress Act of 1985, whether any part of the ocean transportation 
is financed by the U.S. Government; and that the person has not served 
and will not serve as as agent, broker, consultant or other 
reporesentative of firms engaged in providing such commodities, ocean 
transportation and ocean transportation-related services;
    (ii) Certifying that, for ocen transportation brokerage services 
provided during the U.S. fiscal year covered by USDA's acceptance of the 
nomination, the person has not shared and will not share freight 
commissions with the participant, the importer, or any agent, broker, 
consultant or other reporesentative of the participant or the importer, 
whether CCC finances any part of the ocean freight. CCC will consider as 
sharing a commission a situation where the agent forgoes part or all of 
a commission and the supplier of ocean transportation pays a commission 
directly to the participant, the importer, or any other person on behalf 
of the participant or the importer. (See Also Sec. 17.8(c)(8), which 
prohibits address commissions or payments); and
    (iii) Undertaking that, during the U.S. fiscal year covered by 
USDA's acceptance of the nomination, affiliates of such person have not 
engaged in and will not engage in the activities or actions prohibited 
in paragraph (c)(7).
    (8) A certification that neither the person nor any affiliates has 
arranged to give or receive any payment, kickback, or illegal benefit in 
connection with the person's selection as agent of the pericipant or 
importer.
    (d) USDA acceptance. (1) USDA will consider accepting the nomination 
of a person to act as an agent of the participant or importer when the 
documents required to be submitted by this section are received by the 
Deputy Administrator, Export Credits. Action on such nomination may be 
withheld for a period not to exceed 30 calendar days pending completion 
of any further inquiry considered appropriate.
    (2) Acceptance of such nomination shall remain in effect for the 
period of time requested by the participant or such shorter period as 
the Deputy Administrator, Export Credits may determine. Generally, the 
Deputy Administrator, Export Credits' acceptance of such nomination will 
not extend beyond the supply period of the current title I agreement. 
U.S.D.A. will withdraw such acceptance if the agent of the participant 
or importer, or any of the affiliates of such agent, violated the 
certifications or undertakings made pursuant to paragraph (c)(7) of this 
section.
    (e) Notification. The Deputy Administrator, Export Credits shall 
promptly notify persons nominated as agents of the participant or 
importer of the determination or of the need for further

[[Page 430]]

inquiry. If USDA will not accept the nomination, the notification shall 
state the reasons therefor. The determination of the Deputy 
Administrator, Export Credits is effective immediately and continues in 
effect pending the result of any appeal to the General Sales Manager.
    (f) Objection or withdrawal. If USDA does not accept the nomination 
of a person, or if acceptance has been withdrawn pursuant to the 
provisions of this section, the person may, within 30 calendar days, 
present to the General Sales Manager, orally or in writing, any reasons 
as to why such action should not stand. Nothing herein shall be 
construed as to prohibit a person whose nomination has not been accepted 
or whose acceptance has been withdrawn by USDA from being nominated at a 
later time.
    (g) No USDA written acceptance. (1) If, in the procurement of 
commodities made available under title I, Public Law 480, a participant 
or importer uses an agent whose nomination has not been accepted in 
writing by the Deputy Administrator, Export Credits, USDA may withhold 
sales approval.
    (2) If, in the shipping of commodities made available under title I, 
Public Law 480, a participant or importer uses an agent whose nomination 
has not been accepted in writing by the Deputy Administrator, Export 
Credits, USDA may withhold vessel approval or may deduct from the ocean 
freight differential to be paid, the amount of any commission to the 
agent in connection with the shipment.

[56 FR 3968, Feb. 1, 1991; 56 FR 9273, Mar. 6, 1991; 60 FR 62705, Dec. 
7, 1995]



Sec. 17.6  Contracts between commodity suppliers and importers.

    (a) Contracts--eligibility for financing. To be eligible for 
financing, commodity contracts must comply with the following 
requirements unless otherwise specified in the purchase authorization.
    (1) Commodity contracts between suppliers and importers are 
considered to be conditioned on the approval by USDA of the supplier; 
the selling agent, if any; the contract price; conformance of the sale 
to the provisions of the purchase authorization; and responsiveness of 
the offer to IFB terms.
    (2) Importers and suppliers must enter into contracts within the 
contracting period specified in the purchase authorization. The 
contracts must provide for deliveries to the importer in accordance with 
the delivery terms and during the delivery period specified in the 
purchase authorization, or any amendment or modification thereto. (See 
Sec. 17.4(f).)
    (3) Contracts for a commodity, under a purchase authorization which 
limits contracting to f.o.b. or f.a.s. terms, must be separate and apart 
from the contracts for ocean transportation of the commodity.
    (4) The contracted price may not be on a cost plus a percentage-of-
cost basis.
    (b) Contracting procedures. (1) Purchasing--general. (i) Importers 
must purchase commodities on the basis of Invitations for Bids (IFB's).
    (ii) The participant shall maintain a record of all offers received 
from suppliers until the expiration of three years after final payment 
under contracts awarded under the purchase authorization. The GSM may 
examine these records or request specific information in connection with 
the offers.
    (2) Invitations for bids. The following conditions shall apply on 
all purchases of commodities on the basis of IFB's:
    (i) The General Sales Manager must approve the terms of the IFB 
before it is issued by the importer.
    (ii) The importer shall issue the IFB in the United States and shall 
open all offers in public in the United States at the time and place 
specified in the IFB.
    (iii) The IFB must permit submission of offers from all suppliers 
who meet the requirements of the regulations.
    (iv) The IFB may not preclude offers for shipment from any United 
States port(s) unless the purchase authorization provides for 
exportation only from certain ports.
    (v) The IFB may not establish minimum quantities to be offered or 
which will be considered.
    (vi) The IFB must be in compliance with the regulations, the 
purchase authorization, and sound commercial standards.
    (3) Contract awards. (i) The importer shall consider only offers 
which are responsive to the IFB and shall make

[[Page 431]]

awards either on the basis of the lowest commodity price(s) offered or 
on the basis of lowest landed cost, except as provided in paragraph 
(b)(3)(ii) of this section.
    (ii) For purposes of this section, lowest commodity price(s) means 
the lowest commodity price(s) offered for loading onto the type of 
vessel (dry bulk carrier, tanker, tween-deck, etc.) to be utilized to 
carry the commodity purchased. When vessels offered under the flag of 
the participant or importing country or vessels controlled by the 
participant or importing country are to be used, the participant must 
purchase commodities for shipment on such vessels only on the basis of 
the lowest commodity price(s) offered. This limitation may, however, be 
waived by the GSM:
    (A) When the lowest commodity price(s) offered are in locations 
where vessels cannot reasonably be made available without a substantial 
increase in freight costs to the participant;
    (B) For small quantities offered at additional loading points (in 
aggregate not more than 15 percent of the total tonnage offered by a 
vessel); or
    (C) Where this limitation would conflict with the purposes of the 
program.
    (iii) For purposes of this section, lowest landed cost means the 
combination of commodity price and ocean freight rate resulting in the 
lowest total cost to deliver the commodity to the importing country, 
considering the quantity which must be shipped on privately owned U.S.-
flag commercial vessels, as determined by the offices specified in 
Sec. 17.14(c). Lowest landed cost may be defined on either a foreign 
flag or U.S. flag basis. Awards may not be made on the lowest landed 
cost basis unless IFB's are issued for commodity and ocean freight so 
that all commodity and ocean freight offers are reviewed simultaneously.
    (iv) Participants are encouraged to purchase commodities on the 
basis of lowest landed cost when U.S. flag vessels are to be used. If 
such commodity purchases are not made on the basis of lowest landed cost 
(U.S. flag), ocean freight differential payments will nonetheless be 
calculated on the rates of U.S. flag vessels which would represent the 
lowest landed cost. Participants are therefore cautioned to review the 
provisions in the purchase authorization relating to the method of 
computing ocean freight differential.
    (v) Announcement of awards shall be made in the United States. The 
importer shall promptly submit to the Public Law 480 Operations 
Division, FAS, USDA, copies of all offers received with a copy of the 
IFB which was issued. No sale can be approved for financing until this 
information has been received by FAS. The decision of the GSM shall be 
final regarding the responsiveness of offers to IFB terms in the 
awarding of contracts.
    (c) Contract quantity eligible for financing. The quantity eligible 
for financing in the contract between the supplier and the importer may 
not exceed that quantity approved by the Public Law 480 Operations 
Division, FAS, including any approved contract tolerance.
    (d) Contract disputes. Contracts between suppliers and importers 
should stipulate the responsibility of each party for payment of any 
costs not eligible for financing by CCC. Ouestions as to payment of 
ineligible costs should be resolved between the contracting parties.
    (e) Special contracting provisions. The general provisions for 
contracting set forth in this section are supplemented by special 
contracting provisions in appendix A applicable to individual 
commodities. Each purchase authorization, unless otherwise provided, is 
subject to the special provisions of appendix A for the specific 
commodity named in the purchase authorization as though such special 
provisions were fully set forth in the purchase authorization. Each 
contract entered into for financing under these regulations is deemed to 
include all terms and conditions required by the regulations in this 
subpart.
    (f) Export Trade Act (Webb-Pomerene Law). A supplier who is a member 
of a Webb-Pomerene association and who enters into contracts with 
importers as a member of such an association shall so indicate in a 
statement on, or attached to, the copy of the supplier's detailed 
invoice referred to in Sec. 17.18(c)(2).

[[Page 432]]

    (g) Shipment before letter of credit. If the supplier of the 
commodity permits shipment, or the supplier of ocean transportation 
accepts the commodity, before receipt of an acceptable letter of credit 
from a bank, the supplier takes such action at its own risk. This action 
in itself does not affect eligibility for CCC financing provided 
acceptable documentation is presented within the time limitations 
prescribed in the regulations in this subpart.

[51 FR 47409, Dec. 31, 1986, as amended at 56 FR 3969, Feb. 1, 1991]



Sec. 17.7  Eligibility of suppliers and selling agents.

    (a) Suppliers of ocean transportation (requirements). The supplier 
must be engaged in the business of furnishing ocean transportation from 
the United States and must have a person, principal or agent, on whom 
service of judicial process may be had in the United States.
    (b) Commodity suppliers (requirements). (1) The commodity supplier 
must be engaged in the business of selling agricultural commodities for 
export from the United States.
    (2) The commodity supplier must maintain a bona fide business office 
in the United States, and shall have a person, principal or agent, on 
whom service of judicial process may be had in the United States.
    (3) A legal entity which is more than 50 percent owned by a foreign 
government, or which is controlled by a foreign government, may not act 
as a commodity supplier.
    (c) Commodity suppliers (approval). (1) Commodity suppliers must be 
approved by USDA as eligible under the Public Law 480, Title I program 
in order for their contracts to be eligible for CCC financing.
    (2) Persons who wish to participate as commodity suppliers may be 
required to submit the following information to USDA, which will 
determine their eligibility:
    (i) A current financial statement of the person as evidence of 
financial responsibility.
    (ii) A statement containing general background information about the 
person, with particular reference to experience as an exporter of U.S. 
agricultural commodities, and any other information requested relating 
to whether the person is a responsible person and able to perform its 
obligations under this subpart and the purchase authorization.
    (3) A commodity supplier's sales will not be approved unless the 
supplier has submitted a statement listing name, address and chief 
executive officers of all legal entities, foreign and domestic, which 
the supplier owns or controls and similar information for all legal 
entities which own or control the supplier and for all legal entities 
which are owned or controlled by any legal entity which owns or controls 
the supplier.
    (i) The term chief executive officers includes:
    (A) The president, or if no president, the chairman of the board of 
directors, and
    (B) The vice president, but in cases of multiple vice presidents 
only the principal vice president, and then only if one is so 
designated, and
    (C) Any other person who is designated as, or who acts in the 
capacity of, a chief executive officer.
    (ii) If a person has been approved as an eligible supplier, the 
statement required in (c)(3) of this section must be kept current; that 
is, all changes must be reported within three months after they have 
occurred. If an approved supplier does not keep this statement current, 
USDA may disapprove the supplier's sales.
    (iii) A statement filed by a subsidiary is considered complete as to 
the legal entities which it owns or controls and any other legal 
entities owned or controlled by the parent (including the chief 
executive officers for all such companies) if the subsidiary certifies 
thereon that such information has been furnished to USDA in a separate 
statement filed by the parent.
    (4) The supplier shall submit the information required in this 
section to the appropriate office listed below:
    (i) For all commodities except tobacco and cotton, to the Director, 
Public Law 480 Operations Division, FAS, USDA, Washington, DC 20250-
1033.
    (ii) For tobacco, to the Director, Tobacco and Peanuts Division, 
FSA,

[[Page 433]]

USDA, P.O. Box 2415, Washington, DC 20013.
    (iii) For cotton, to the Director, FSA Commodity Office, U.S. 
Department of Agriculture, P.O. Box 419205, Kansas City, Missouri 64141-
6205.
    (5) The General Sales Manager, FAS, is responsible for approval of 
suppliers of all commodities except tobacco and cotton. The 
Administrator, FSA, is responsible for approval of suppliers of tobacco 
and cotton.
    (6) USDA may permit a person to act as a commodity supplier only on 
submission of acceptable performance security in the form of a letter of 
credit which will assure that the person and the person's selling agents 
will perform the obligations required under this subpart and the 
purchase authorization. Such performance security shall be in addition 
to the amount of the standard performance security required of all 
offerors in the Invitation for Bids. This additional performance 
security shall conform to the requirements in the Invitation for Bids 
for the performance security, and may be combined with the standard 
performance security into a single performance security. Upon successful 
completion of one or more contracts by the supplier, CCC may remove the 
requirement for the additional performance security.
    (d) Selling agents (requirements). If, at the time the commodity 
supplier reports the sale for price approval, it is determined that an 
agent employed or engaged by a commodity supplier to obtain a contract 
is not a selling agent as defined in Sec. 17.2(c), the sale will not be 
eligible for financing. (See Sec. 17.8(c) regarding commissions to 
selling agents.)
    (e) Disapproval; approval under certain conditions. USDA shall 
notify promptly a prospective supplier or a selling agent who is not 
approved, or who is approved under certain conditions established under 
these regulations. The notification will state the reasons for the 
action taken or conditions established. The prospective supplier or 
selling agent may appeal the action to a designated USDA official and 
submit further information, orally or in writing, bearing on the 
determination.

(Approved by the Office of Management and Budget under control number 
0551-0005)

[51 FR 47409, Dec 31, 1986; 52 FR 1623, Jan. 15, 1987, as amended at 54 
FR 21931, May 22, 1989; 56 FR 3969, Feb. 1, 1991; 60 FR 62705, 62706, 
Dec. 7, 1995]



Sec. 17.8  Fees, discounts, commissions, brand names.

    (a) Consular fees. CCC will not finance consular fees imposed for 
the issuance or legalization of consular invoices or certificates in 
connection with the importation of commodities into a foreign country.
    (b) Discounts. If a contract provides for one or more discounts 
(including but not limited to trade or quantity discounts and discounts 
for prompt payment) whether expressed as such or as ``commissions'' to 
the importer, only the invoice amount after discount (supplier's 
contracted price less all discounts) is eligible for financing.
    (c) Commissions, fees and payments. The term payment means a 
commission, fee, or other compensation of any kind. The term other 
compensation of any kind means anything given in return for any 
consideration, services, or benefits received or to be received.
    (1) A payment to a selling agent as defined in Sec. 17.2(c), 
employed or engaged by the supplier to obtain a contract, is prohibited.
    (i) Any act by a person on behalf of a commodity supplier, which 
would influence or tend to influence a buyer to award a contract to the 
supplier, or which may result in the supplier's having a competitive 
advantage in relation to other potential suppliers, constitutes an act 
``to obtain a contract.'' Furthermore, any act by a person on behalf of 
a commodity supplier to influence USDA to approve a contract for 
financing constitutes an act ``to obtain a contract.''
    (ii) Services on behalf of a supplier which are purely ministerial 
in nature and do not require the exercise of personal influence, 
judgment, or discretion, such as attending bid openings or presenting 
offers at bid openings, would not in themselves be considered acts ``to 
obtain a contract.''

[[Page 434]]

    (iii) Services to implement a contract after it has been entered 
into by the parties thereto, such as handling documentation problems or 
contract disputes, would not constitute acts ``to obtain a contract.''
    (iv) Payments of any kind to a person who has acted as a selling 
agent to obtain a contract, including payments for services that may be 
performed in connection with such contract which in themselves are not 
services to obtain a contract, are prohibited.
    (2) A commission paid or to be paid to any agency, including a 
corporation, owned or controlled by the participant or the government of 
the destination country is not eligible for financing.
    (3) A payment made to any agent, broker, consultant or other 
representative of the participant or importer is not eligible for 
financing. This limitation applies to ocean transportation brokerage 
commissions which exceed 2\1/2\ percent of the freight financed.
    (4) For ocean transportation, in addition to this paragraph, see 
also Sec. 17.14(j).
    (5) If a payment is made in violation of paragraph (c) of this 
section, CCC may demand dollar refund of the entire amount financed by 
CCC under the contract.
    (6) For supplier reporting requirements, see also Sec. 17.12.
    (7) A payment to any agent of a participant or importer is 
prohibited in the purchasing of commodities.
    (8) An address commission or payment is prohibited.
    (d) Brand names. Brand names are not required to be shown on 
packaged commodities. If, however, a brand name is used, it must be a 
bona fide U.S. brand. The container or attached labeI must show the name 
and U.S. business address of the supplier or the manufacturer. Any 
reference on the container or attached label to foreign addresses of 
suppliers or foreign brand names is prohibited and will make the sale 
ineligible for financing. If the markings on the shipping container 
include a brand name, such brand name must be identical with the brand 
name on the unit container.

[51 FR 47409, Dec. 31, 1989, as amended at 54 FR 21931, May 22, 1989; 56 
FR 3970, Feb. 1, 1991; 56 FR 50809, Oct. 9, 1991]



Sec. 17.9  Notice of sale procedures (tobacco and cotton).

    The notice of sale procedures for tobacco and cotton are contained 
in appendix A of the regulations and the purchase authorization.



Sec. 17.10  Notice of sale procedures (commodities other than tobacco and cotton).

    (a) Submission of notice of sale. The supplier shall, immediately 
upon making a firm sale, telephone a notice of sale to Public Law 480 
Operations Division, FAS, (202) 720-5780.
    (1) A sale is considered firm under the regulations when the 
supplier has been notified by the importer of an award, even though the 
contract is conditioned on approval by FAS of the price; the supplier; 
the selling agent, if any; conformance of the sale to the provisions of 
the purchase authorization; and responsiveness of the offer to the IFB 
terms.
    (2) The supplier shall not withhold the notice of sale because of 
the existence of contract provisions which make a contract conditional 
on the occurrence of certain events, i.e., on approval of the price by 
FAS, on the receipt of acceptable letter(s) of credit, or receipt of 
delivery instructions.
    (3) Each notice of sale shall cover only a single sale contract. If 
a sale is made under two or more purchase authorizations, separate 
notices of sale shall be submitted for each purchase authorization.
    (4) If the supplier fails to furnish a notice of sale within 5 
calendar days after the date of sale, CCC has the right to refuse to 
finance the sale.
    (5) The following information must be included in the notice of 
sale. (Contracts containing options for the items listed in this 
paragraph (a)(5) are acceptable only as provided in paragraph 
(a)(5)(vii) or the purchase authorization.)
    (i) Purchase authorization number.
    (ii) Name and address of supplier.
    (iii) Date and time of sale. (See Sec. 17.11(b)(2).)
    (iv) Country to which export is to be made (destination).
    (v) Name of importer.
    (vi) Contract quantity expressed in the contract unit and in the 
quantity

[[Page 435]]

unit in which the commodity normally trades.
    (vii) Contract tolerance, if any, expressed in percentage, but not 
in excess of 5 percent more or less. This tolerance must be at buyer's 
option and must include any loading tolerance. If the contract does not 
provide a tolerance, show ``No tolerance.''
    (viii) Price per contract unit and per quantity unit in which the 
commodity normally trades.
    (ix) Coast or port of export (e.g., East coast, West coast, Gulf 
coast, Great Lakes port) or Canadian transshipment point in the case of 
bulk grain.
    (x) Delivery period specified in the contract.
    (xi) Delivery terms (f.o.b., f.a.s., etc.).
    (xii) Complete commodity description.
    (xiii) Complete packaging description and packaging material 
specifications if export is other than in bulk.
    (xiv) Supplier's contract number, sale number, or order number, if 
any.
    (xv) Name and address of selling agent (supplier's agent) if any. If 
none, show ``None.''
    (xvi) Import license number when required by the purchase 
authorization.
    (xvii) Any other terms of the contract between the supplier and 
importer not specifically provided for in this paragraph (a)(5) which 
would affect the delivery of the commodity to be exported.
    (xviii) Any additional information requested by the purchase 
authorization.
    (b) Sale approval. (1) Public Law 480 Operations Division, FAS, will 
notify the supplier by telephone as to whether it has been determined on 
the basis of the information submitted in the notice of sale:
    (i) That the price is approved for financing;
    (ii) That the supplier and the selling agent, if any, are approved 
under the program;
    (iii) That the sale conforms to the provisions of the purchase 
authorization; and
    (iv) That the offer is responsive to the terms of the IFB.
    (2) The supplier shall prepare Form FAS-359 (or CCC-359), 
``Declaration of Sale,'' and shall mail or otherwise deliver it to 
Public Law 480 Operations Division, FAS, promptly as soon as FAS has 
provided the CCC Registration Number to the supplier.
    (3) The supplier shall enter on the Declaration of Sale form the 
same information as provided in paragraph (a)(5) of this section. Each 
Declaration of Sale form covers only a single sale contract. The 
supplier shall submit the Declaration of Sale form in an original and 4 
copies, and it must be signed by the supplier or the supplier's 
authorized representative.
    (4) USDA will return two copies of the Declaration of Sale form to 
the supplier, signed for the General Sales Manager by an authorized 
official, confirming the telephonic approval given as provided in 
paragraph (b)(1) of this section.
    (5) Declaration of Sale forms are available from Public Law 480 
Operations Division, FAS, USDA, Washington, DC 20250-1033. Telephone 
(202) 720-5780.
    (c) Sale disapproval. (1) Public Law 480 Operations Division, FAS, 
will notify the supplier by telephone and telegraph when a sale is 
disapproved for financing. The related contract between the supplier and 
importer shall, for purposes of financing, be considered null and void.
    (2) On receipt of a notice of disapproval, the supplier shall 
promptly notify the importer.
    (d) Contract delivery period. Price approval is limited to exports 
made during the delivery period stated in the notice of sale or any 
amendment thereto submitted to Public Law 480 Operations Division, FAS, 
even though the purchase authorization may authorize a final delivery 
date later than that stated in the sale. If the supplier cannot complete 
delivery on or before the terminal delivery date of the contract 
delivery period, the supplier shall submit a notice of contract 
amendment as provided in paragraph (e) of this section. If the supplier 
fails to comply, Sec. 17.17(d) of the regulations shall apply.
    (e) Contract amendments. (1) The supplier shall submit a notice of 
each contract amendment to the Director, Public Law 480 Operations 
Division, FAS/EC, by telephone or telegraph immediately after the 
amendment to the contract is made. This includes not

[[Page 436]]

only any change in the contract delivery period or any other terms and 
conditions of the contract as provided in the information given in the 
original notice of sale or any amendment thereto, but also any change in 
any other terms and conditions of the contract.
    (2) If a notice of an amendment is made by telephone, the supplier 
shall confirm immediately in writing (by telegraph).
    (3) The supplier shall include only amended items pertaining to a 
single sale in one amendment notice.
    (4) The notice of contract amendment must contain the following:
    (i) A request that USDA approve an amendment to the specifically 
identified sale contract between the Government of (country) and 
(commodity supplier).
    (ii) A statement of what the amendment consists of (as, extension of 
delivery period through (date)) and a detailed explanation of the 
reasons for the amendment.
    (iii) A statement that the contract amendment has been agreed to by 
both buyer and seller.
    (5) Any amendment to a contract for which FAS has given price 
approval subjects the terms of the contract, as amended, to 
reexamination by FAS for the purpose of financing under Public Law 480.
    (6) Public Law 480 Operations Division, FAS, will notify the 
supplier by telegraph and telephone as to whether the amendment is 
approved or disapproved.
    (7) Any amendment must be consistent with the provisions of the 
purchase authorization and the regulations and must otherwise be 
acceptable to Public Law 480 Operations Division, FAS.
    (8) The supplier shall furnish a copy of the USDA telegraphic 
approval of the amendment with other documentation submitted to obtain 
payment.
    (9) If the supplier fails to furnish notice of a contract amendment 
to Public Law 480 Operations Division, FAS, within 5 calendar days after 
the date of such amendment, CCC has the right to refuse to finance the 
sale or to finance such portion of the contract price or contract 
quantity as it may determine to be in the interest of the U.S. 
Government.

(Approved by the Office of Management and Budget under control number 
0551-0005)

[51 FR 47409, Dec. 31, 1986, as amended at 54 FR 21931, May 22, 1989; 60 
FR 62705, 62706, Dec. 7, 1995]



Sec. 17.11  Commodity price provisions.

    (a) USDA price approval. In order for a sale to be eligible for CCC 
financing, the commodity price must be approved by USDA. (See Secs. 17.9 
and 17.10).
    (b) Maximum price. (1) The supplier's sales price may not exceed the 
prevailing range of export market prices as applied to the terms of sale 
at the time of sale, as determined by USDA.
    (2) The ``time of sale,'' unless otherwise defined for specific 
commodities in appendix A of this subpart or the purchase authorization, 
means
    (i) For commodities purchased under an Invitation for Bids, the date 
and time specified in the IFB for submission of offers; or
    (ii) For all other commodities, the date as of which the sales price 
is established in or under the contract between the importer and the 
suppler.
    (iii) For contract amendments for all commodities, the ``time of 
sale'' means the date of any amendment if the amendment in any manner 
affects the sale price as determined by USDA.
    (3) If USDA is unable to ascertain the prevailing range of export 
market prices for a specific commodity, USDA will determine a maximum 
export market price, representing the top of the range of export market 
prices, for the commodity at the time of sale for the time and place of 
delivery provided for in the contract. In so determining a maximum 
export market price USDA will use, as needed, available domestic or 
export market information for the same or other quality descriptions, 
packagings, locations, and dates; will apply appropriate market 
differentials and other factors as wouId be reflected in the export 
market price at the time of sale for the time and place of delivery; and 
will take into account CCC export sale prices when appropriate.
    (4) When the purchase authorization provides for a maximum price, 
expressed in dollars and cents or computed on a stated basis, the 
supplier's

[[Page 437]]

sales price may not exceed this maximum price.
    (c) Refund of excess price. If the sale has been financed and the 
sales price is determined to exceed the maximum price permissible under 
this section, the supplier shall refund the amount of the excess in 
accordance with Sec. 17.17(d).



Sec. 17.12  Reports required from suppliers of commodities and ocean transportation.

    (a) General. Suppliers of--
    (1) Agricultural commodities financed under the Act, and
    (2) Vessels on which such commodities are transported, if ocean 
freight or ocean freight differential with respect thereto is financed 
by CCC, shall report to the General Sales Manager any commission, fee or 
other compensation of any kind which in connection with the supplying of 
such commodities or vessels is paid or to be paid by the supplier to any 
agent, broker, consultant or other representative of the importer or 
participant; to the participant; or to any agency, including a 
corporation owned or controlled by the importer or participant, to which 
the supplier furnishes such commodities or vessels. This includes, but 
is not limited to, payments to such entities for services such as 
lightening, stevedoring, discharging, and bagging if such services are 
included in the ocean freight contract as being for the account of the 
vessel owner; freight commissions; address commissions; bank 
commissions; inward freight commissions; agency fees; consular fees; 
stevedoring overtime; brokerage fees; dispatcher's fees; outport agent's 
services; freight forwarding fees; supervision fees and payments for 
expediting services.
    (3) Suppliers shall report any such payment delivered to an agent, 
broker, or other representative of the importer or importing country 
even if the payment in not designated for the agent.
    (b) Compensation. The term ``other compensation of any kind'' in 
paragraph (a) of this section means anything given in return for any 
consideration, services, or benefits received or to be received by the 
supplier in connection with the supplying of commodities or vessels 
financed under the Act.
    (c) Reporting. The supplier shall report in writing as soon as the 
supplier knows that a payment as described in paragraph (a) of this 
section is made or to be made. Suppliers shall submit reports to the 
General Sales Manager, Foreign Agricultural Service, U.S. Department of 
Agriculture, Washington, DC 20250-1001.
    (d) Information to report. The supplier shall include in the report 
the following information with respect to each payment reported under 
paragraph (a) of this section:
    (1) The name and address of the person to whom the payment was made 
or is to be made, and the person's relationship to the importer or 
importing country.
    (2) The date payment was made or the approximate date when payment 
is to be made, and the amount or the approximate amount of payment.
    (3) An explanation of the transaction in connection with which the 
payment was made or is to be made.
    (4) The number(s) of the purchase authorization(s) providing for the 
financing under the Act of the sale of agricultural commodities to the 
importer or importing country to whose agent, broker or other 
representative the payment was made or is to be made.
    (e) Knowledge imputed. Knowledge of any fact material to obligations 
under this section shall be imputed to the supplier if the supplier 
should reasonably have known that such fact existed.
    (f) Information available for public inspection. The information in 
reports filed hereunder will be available for public inspection by 
contacting the General Sales Manager, FAS, USDA, at the address given in 
paragraph (c) of this section.
    (g) Failure to file a report or filing a false report. Failure to 
file a required report or the filing of a false report hereunder 
constitutes a cause for debarment. Whenever the GSM believes, or has 
reason to believe, that a supplier has failed to file a report as 
required by this section or has filed a false report thereunder, the GSM 
is authorized to institute suspension or debarment proceedings against 
the supplier in accordance with the provisions of 7 CFR part 1407.

[[Page 438]]

    (h) Debarment. If a final determination has been made that a 
supplier has failed to file a report as required by this section or has 
filed a false report thereunder, the supplier shall be debarred, for a 
period of not to exceed five years from the date of such final 
determination, from furnishing--directly or indirectly--commodities 
financed under the Act or vessels on which such commodities are to be 
transported if ocean freight or ocean freight differential is to be 
financed by CCC with respect thereto. Such supplier may also be debarred 
(in accordance with 7 CFR part 1407) from participating in other 
programs administered or financed by CCC.

(Approved by the Office of Management and Budget under control number 
0551-0005)

[51 FR 47409, Dec. 12, 1986, as amended at 56 FR 3970, Feb. 1, 1991; 60 
FR 62706, Dec. 7, 1995]



Sec. 17.13  Refund to CCC by the participant for failure to comply.

    The participant shall pay in U.S. dollars promptly to CCC on demand 
by the General Sales Manager the entire amount financed by CCC (or such 
lesser amount as the GSM may demand) whenever the GSM determines that 
the participant has failed to comply with any agreement or commitment 
made by the participant in connection with the transaction financed.



Sec. 17.14   Ocean transportation.

    (a) General. (1) This section applies to the financing of ocean 
freight or ocean freight differential. Ocean freight will be financed by 
CCC only to the extent specifically provided for in the purchase 
authorization. The purchase authorization may provide requirements in 
addition to or in lieu of those specified in this section.
    (2) The offices specified in paragraph (c) of this section shall 
determine the quantity of the commodity which must be shipped on 
privately owned U.S.-flag commercial vessels.
    (3) The supplier of ocean transportation shall release copies of the 
ocean bills of lading to the supplier of the commodity promptly upon 
completion of loading of the vessel.
    (4) When commodities are required to be transported in a U.S.-flag 
vessel, the government of the importing country must ensure that an 
operable irrevocable letter of credit has been opened in favor of the 
supplier of ocean transportation prior to the vessel's presentation for 
loading. The letter of credit shall provide for sight payment or 
acceptance of a draft, payable in U.S. dollars, for 100 percent of the 
ocean freight on the basis of the quantities and rates specified in the 
applicable charter party or liner booking contract.
    (b) Contracting procedures. (1) Invitations for Bids (IFB's). (i) 
Public freight ``Invitations for Bids'' are required in the solicitation 
of freight offers from all U.S. and non-U.S. flag vessels when CCC is 
financing any portion of the ocean freight.
    (ii) For non-U.S. flag vessels when CCC is not financing any portion 
of the ocean freight, public freight IFB's are also required unless 
otherwise authorized by the Director, Public Law 480 Operations 
Division, Foreign Agricultural Service (FAS) or in the case of cotton 
shipments, by the Director, Kansas City FSA Commodity Office 
(hereinafter referred to as ``the Director'' as applicable) except that 
IFB's for such non-U.S. flag vessels are not required if the participant 
requires the use of vessels under its flag or other non-U.S. flag 
vessels under its control. Vessels considered to be under the control of 
the participant include vessels under time charters, bare boat charters, 
consecutive voyage charters, or other contractual arrangements for the 
carriage of commodities which provide guaranteed access to vessels.
    (iii) Prior to release to the trade, all freight IFB's must be 
submitted to the Director for approval. Freight IFB's for both U.S. and 
non-U.S. flag vessels, except controlled vessels, must be issued by 
means of the Transportation News Ticker, New York, plus at least one 
other means of communication, to assure the broadest possible market 
coverage with adequate notice to interested parties.
    (iv) All freight IFBs must:
    (A) Specify a closing time for the submission of offers and state 
that late offers will not be considered;
    (B) Provide that offers are required to have a canceling date (last 
contract layday) no later than the last contract

[[Page 439]]

layday specified in the IFB, and that vessels which are offered with a 
canceling date beyond the laydays specified in the IFB will not be 
considered;
    (C) Provide the same deadline for submission of offers from both 
U.S. flag vessels and non-U.S. flag vessels.

Vessels which are submitted for approval following offers which do not 
comply with the above IFB requirements will not be approved by the 
Director.
    (2) Competitive bidding. When CCC is financing any portion of the 
freight all offers shall be opened in public in the United States at the 
time and place specified in the IFB. Offers shall be publicly opened at 
such time prior to the time for receipt of offers for the sale of 
commodities as the Director determines appropriate. Only offers which 
are responsive to the IFB may be considered, and no negotiation, 
clarification, or submission of additional information shall be 
permitted.
    (3) Records of offers. Copies of all offers received must be 
promptly furnished to the Director, and the Director may require the 
participant, or its shipping agent, to submit a written certification to 
the General Sales Manager that all offers received (with the times of 
receipt designated thereon) were transmitted to the Department. For 
purposes of this paragraph ``time of receipt'' shall be the time a hand 
carried offer, mailed offer, or telegram was received at the designated 
location for presentation or, if transmitted electronically, the time 
the offer was received, as supported by evidence satisfactory to the 
Director.
    (4) Re-tenders. The Director may permit or require a participant to 
refuse any and all bids, and in such case a participant may conduct a 
re-tender with the approval of the Director. The Director shall not 
approve or require freight re-tenders unless they will increase the 
likelihood of meeting U.S. flag cargo preference requirements, will 
permit the desired quantity to be shipped, will likely result in reduced 
CCC expenditures, or are otherwise determined to be in the best 
interests of the program. Any re-tendering will be governed by the same 
requirements as the original tenders.
    (c) Request for vessel approval. The pertinent terms of all proposed 
charters (whether single voyage charters, consecutive voyage charters, 
or time charters) and all proposed liner bookings, regardless of whether 
any portion of ocean freight is financed by CCC must be submitted to the 
appropriate USDA office for review and approval before fixture of the 
vessel. Tentative advance vessel approvals may be obtained by telephone 
or telegram provided Form CCC-105, Ocean Shipment Data--Pub. L. 480 
(Request for Vessel Approval), is furnished promptly confirming the 
information supplied by telephone or telegram. To obtain approval of 
proposed vessel charters and liner bookings the Form CCC-105 shall be 
submitted in duplicate to the office indicated:
    (1) For cotton. Form CCC-105 (Cotton), Ocean Shipment Data--Pub. L. 
480 Request for Vessel Approval, shall be submitted to the Director, FSA 
Commodity Office, U.S. Department of Agriculture, P.O. Box 419205, 
Kansas City, Missouri 64141-6205.
    (2) For commodities other than cotton. Form CCC-105, Ocean Shipment 
Data--Pub. L. 480 Request for Vessel Approval, shall be submitted to the 
Director, Pub. L. 480 Operations Division, Foreign Agricultural Service, 
U.S. Department of Agriculture, Washington, DC 20250-1033.
    (d) Advice of vessel approval. USDA will give written approval of 
charters and liner bookings on Form CCC-106, Advice of Vessel Approval. 
Th Form CCC-106 will state whether the vessel is approved as a dry cargo 
liner, dry bulk carrier, or tanker, and whether CCC will finance any 
part of the ocean freight. If CCC agrees to finance any portion of the 
ocean freight, the importing country or its agent shall forward a copy 
of the charter party of liner booking note immeidately after execution 
to the Director, P.L. 480 Operations Division, FAS (or the Director, 
Kansas City FSA Commodity Office, for cotton), for review and approval 
prior to issuance of Form CCC-106-2. CCC may also require the supplier 
of ocean transportation to submit copies of lightening, stevedoring, or 
bagging contracts for any voyage for which CCC finances ocean freight or

[[Page 440]]

ocean freight differential. USDA will issue Form CCC-106, Advise of 
Vessel Approval, as follows:
    (1) For cotton. Form CCC-106-3, signed for the Director, Kansas City 
FSA Commodity Office, will be issued only to the supplier of the cotton 
on sales made on a c.i.f. or cost and freight basis. If CCC finances any 
part of the ocean freight when cotton is shipped on an f.a.s. basis, a 
signed original copy of this form will be issued to the ocean carrier.
    (2) For commodities other than cotton. Form CCC-106, signed for the 
Director, Pub. L. 480 Operations Division, FAS, will be issued as 
follows:
    (i) For shipments to be made on an f.o.b. or f.a.s. basis, when CCC 
finances any part of the cost of ocean freight, the original of Form 
CCC-106-2 will be issued to the ocean carrier.
    (ii) For shipments to be made on a c.i.f. or cost and freight basis, 
the original of Form CCC-106-1 will be issued to the supplier of the 
commodity.
    (e) When CCC finances any part of the ocean freight for commodities 
booked on charter terms, a copy of the charter party shall be forwarded 
immediately after its execution to the Director, Pub. L. 480 Operations 
Division, FAS, for review and approval prior to issuance of Form CCC-
106-2. In the event of any conflict between the provisions of the 
regulations in this subpart and the charter party or ocean bills of 
lading issued pursuant thereto, the provisions of the regulations in 
this subpart shall prevail. The charter party shall contain or, for the 
purpose of financing pursuant to the regulations in this subpart, be 
deemed to contain the following provisions:
    (1) That if there is any failure in the part of hte supplier of 
ocean transportation to perform the charter party after the vessel has 
tendered at the loading port, the charterer shall be entitled to incur 
all expenses which in the judgement of the General Sales Manager are 
required to enable the vessel to undertake and carry out her obligations 
under the charter party including, but not limited to, expenses for 
lifting any liens asserted against the vessels.
    (2) That, notwithstanding any prior assignments of freight made by 
the owner or operator, the expenses authorized in paragraph (e)(1) of 
this section may be deducted from the freight earned under the charter 
party.
    (3) The ocean freight is earned and that 100 percent thereof is 
payable by the charterers when the vessel and cargo arrive at the first 
port of discharge, subject to paragraph (e)(4) of this section, and to 
the further condition that if a force majeure as described in paragraph 
(l)(7) of this section results in the loss of part of the vessel's 
cargo, 100 percent of the ocean freight is payable on the part so lost. 
This provision does not relieve the carrier of the obligation to carry 
to other points of discharge if so required by the charter party.
    (4) That if a force majeure as described in paragraph (l)(7) of this 
section prevents the vessel's arrival at the first port of discharge, 
not to exceed 100 percent of the freight shall be payable by the 
charterer at the time the General Sales Manager determines that such 
force majeure was the cause of nonarrival.
    (5) That in a dispute involving any rights and obligations of CCC, 
including rights and obligations as successor or assignee, which cannot 
be settled by agreement, the dispute shall not be subject to 
arbitration.
    (f) Special charter party information required when any part of 
ocean freight is financed by CCC. When CCC finances any part of the 
ocean freight for commodities booked on charter terms, the charter party 
shall contain the following information:
    (1) The name of each party participating in the ocean freight 
brokerage commission, if any, and the percentage thereof payable to each 
party;
    (2) The name of the vessel and the name of the substitute vessel, if 
any.
    (g) Notice of arrival. Each Form CCC-106-2 will indicate whether a 
notice of arrival is required. A notice of arrival, when required, must 
be furnished promptly by the participant or its designated agent or 
other source acceptable to CCC (excluding the carrier or his agent) and 
must include the name

[[Page 441]]

of the vessel, the purchase authorization number, the first port of 
discharge, and the date of arrival. The notice of arrival of the vessel 
also constitutes prima facie evidence of arrival of the cargo.
    (h) Foreign flag vessels. The cost of ocean transportation will be 
financed by CCC on non-U.S. flag vessels only when, and to the extent, 
specifically provided in the applicable purchase authorization.
    (i) U.S.-flag vessels.When a commodity is required to be shipped on 
privately owned U.S.-flag commercial vessel, Form CCC-106 will set 
forth:
    (1) The rate of the ocean freight differential, if any, which the 
Director, Pub. L. 480 Operations Division, FAS (or Director, Kansas City 
FSA Commodity Office, for cotton), determines to exist between the 
prevailing foreign-flag vessel rate and the U.S.-flag vessel rate; and
    (2) The approximate tonnage for which CCC will authorize 
reimbursement of ocean freight or ocean freight differential, as 
appropriate.
    (j) Items not eligible for CCC financing. The following costs will 
not be financed either separately or as part of the commodity contract 
price:
    (1) Loading, trimming, and other related shipping expenses unless 
included in the ocean freight rate;
    (2) Discharge costs except when in accordance with trade custom;
    (3) The cost of ``dead freight'';
    (4) Cargo dues and taxes assessed by the country of import;
    (5) Surcharges assessed by steamship conferences or carriers, unless 
specifically authorized by the Director, Pub. L. 480 Operations 
Division, FAS.
    (6) General average contributions;
    (7) Stevedoring overtime and vessel crew overtime;
    (8) Ship's disbursements;
    (9) Brokerage commissions in excess of 2\1/2\ percent of the 
freight;
    (10) Any payments prohibited in Sec. 17.8(c); and
    (11) Detention.
    (k) General financing provisions. When any part of ocean freight 
will be financed either separately or as part of the commodity contract 
price, the following shall apply:
    (1) Charters and liner booking contracts must show the ocean freight 
rate from one loading port to one discharge port. A charter or liner 
booking contract may provide for an increase in rate for an additional 
port of loading or discharge, any alternate route or other option; CCC, 
however, will finance initially the lowest such rate or ocean freight 
differential, as appropriate. Increased amounts (if any) due because of 
the exercise of such option will be financed only after receipt of 
evidence that an option was exercised. If an option is exercised 
conclusively before the issuance of an ocean bill of lading, as shown 
thereon, CCC will finance the ocean freight or ocean freight 
differential, as appropriate, applicable to the option so exercised 
without further evidence that the option was exercised.
    (2) If CCC finances ocean freight or ocean freight differential and 
transshipment to a foreign flag vessel occurs, CCC will finance the 
ocean freight or ocean freight differential, as appropriate, only to the 
point of transshipment, at a rate determined by the General Sales 
Manager, and no part of the ocean freight beyond the point of 
transshipment will be financed by CCC unless specifically approved by 
the General Sales Manager. If the commodity was transported from a U.S. 
port and was transshipped at another U.S. port, CCC will not finance, 
without prior approval of the General Sales Manager, any part of the 
ocean freight incurred before transshipment.
    (3) The ocean freight rate eligible for CCC financing and the rate 
used for the U.S.-flag vessel in calculating ocean freight differential 
shall not exceed the following rates for the category of the vessel 
concerned:
    (i) For commodities covered by published tariff rates--the published 
conference contract rate;
    (ii) For other commodities (bulk commodities and other commodities 
for which no tariff rates are currently effective, whether carried on 
liners, dry bulk carriers, or tankers)--the market rate prevailing at 
the time of request for approval as determined by the Director, Pub. L. 
480 Operations Division, FAS (or for cotton by the Director, Kansas City 
FSA Commodity Office), but in any event not in excess of rates

[[Page 442]]

charged other shippers (irrespective of booking dates) for like 
commodities on the voyage concerned.
    (4) Reimbursement will be made for ocean freight or ocean freight 
differential as appropriate, from loading points to discharge points at 
rates approved by the Director, Pub. L. 480 Operations Division, FAS (or 
for cotton, by the Director, Kansas City FSA Commodity Office), on Form 
CCC-106 in conformity with the preceding paragraph (k)(3) of this 
section.
    (5) Freight for a vessel designated on Form CCC-106 as a U.S. flag 
vessel shall not be eligible for financing, unless such vessel complies 
with the provisions of Pub. L. 87-266. The bank is required to obtain a 
certification from the carrier that the provision has been complied with 
but is not responsible for the truth or accuracy of the certification.
    (6) For cost and freight, c.i.f., and f.a.s. sales of cotton when 
the financing of ocean freight differential is authorized on Form CCC-
106-3 and such differential is not financed by a banking institution 
under a letter of credit the supplier may obtain payment for the 
differential on application to the Kansas City FSA Commodity Office.
    (7) Charter parties and liner booking contracts must specify that 
the participant shall be liable for detention of the vessel for loading 
delays attributable solely to the decision of the supplier of ocean 
transportation or the supplier of commodity not to commence loading 
because of the failure of the participant to establish an operable 
irrevocable ocean freight or commodity letter of credit. However, 
charter parties and liner booking contracts may not contain a specified 
detention rate. The ocean transportation supplier shall be entitled to 
reimbursement for detention costs for all time so lost, for each 
calendar day or any part of the calendar day, including Saturdays, 
Sundays and holidays. The period of such delay shall not commence 
earlier than upon presentation of the vessel at the designated loading 
port within the laydays specified in the charter party or booking 
contract, and upon notification of the vessel's readiness to load in 
accordance with the terms of the applicable charter party or booking 
contract. The period of such delay shall end at the time that operable 
irrevocable letters or credit have been established for commodity and 
ocean freight or the time the vessel begins loading, whichever is 
earlier. Time calculated as detention shall not count as laytime. 
Reimbursement for such detention shall be payable no later than upon the 
vessel's arrival at the first port of discharge.
    (l) Reimbursement for ocean freight or ocean freight differential 
separately financed. (1) When the Form CCC-106 states that a notice of 
arrival is not required CCC will reimburse 100 percent of the ocean 
freight or ocean freight differential, as appropriate, on presentation 
of required documents.
    (2) When the Form CCC-106 indicates that a notice of arrival is 
required, CCC will reimburse up to 100 percent of the ocean freight or 
ocean freight differential, as appropriate, before the vessel arrives at 
the first port of discharge if the supplier has furnished CCC, as 
security, a letter of credit, acceptable in amount and form to CCC and 
issued by a U.S. bank.
    (3)-(4) [Reserved]
    (5) The amount of security required by CCC under paragraph (2) of 
this section may be computed as follows: 100 percent of the ocean 
freight or ocean freight differential, as appropriate, on the basis of 
either:
    (i) The tonnage stated in the charter party (without tolerance), if 
hte supplier does not furnish to CCC a copy of the ocean bill of lading, 
or
    (ii) The tonnage shown on the ocean bill of lading, times the ocean 
freight rate or ocean freight differential rate, as appropriate, shown 
on the related Form CCC-106, if the supplier furnishes to CCC a copy of 
the ocean bill of lading.
    (6) On receipt of an acceptable letter of credit, the Controller 
will waive the notice of arrival requirement established by 
Sec. 17.18(d)(2).
    (7) The General Sales Manager will waive the requirement for the 
notice of arrival required by Form CCC-106-2 by a written notice to the 
supplier of ocean transportation on the receipt of evidence satisfactory 
to the General Sales Manager that the vessel is lost or unable to 
proceed to destination after

[[Page 443]]

completion of loading as a result of one or more of the following 
causes: Damage caused by perils of the sea or other waters; collisions; 
wrecks; stranding without the fault of the carrier; jettison; fire from 
any cause; Act of God; public enemies or pirates; arrest or restraint of 
princes, rulers, or peoples without the fault of the supplier of ocean 
transportation; wars; public disorders; captures; or detention by public 
authority in the interest of public safety. Such waiver may be 
substituted for the notice of arrival and in such cases reimbursement 
will be made for 100 percent of the ocean freight or ocean freight 
differential, as appropriate, or if the General Sales Manager determines 
that less than 100 percent of the ocean freight is payable to the 
carrier, reimbursement will be made for a corresponding percentage of 
the ocean freight or ocean freight differential, as appropriate, as 
provided in paragraph (l)(8) of this section.
    (8) When the General Sales Manager determines that a force majeure 
has occurred, as specified in paragraph (l)(7) of this section, not to 
exceed 100 percent of the ocean freight or ocean freight differential, 
as appropriate, shall be eligible for reimbursement by CCC.
    (9) The determination of a force majeure by the General Sales 
Manager shall not relieve the participant from its obligation under the 
Agricultural Commodities Agreement to pay CCC, when due, the dollar 
amount of ocean freight, plus interest (exclusive of ocean freight 
differential), financed by CCC pursuant to paragraph (l)(8) of this 
section.
    (m) Demurrage/Despatch. CCC will not finance demurrage and CCC will 
not share in despatch earnings. Owners and commodity suppliers will 
settle laytime accounts at load port(s) and owners and charterers will 
settle laytime accounts at discharge port(s). Under no circumstances 
shall CCC be responsible for resolving disputes involving calculation of 
laytime or the payment of demurrafe or despatch.
    (n) [Reserved]
    (o) Eligibility of ocean freight contracts for financing. USDA will 
not approve ocean freight contracts if the supplier of ocean 
transportation is also the supplier of the commodity or is an affiliate 
of such supplier of the commodity, unless the supplier of ocean 
transportation (1) is the owner of the vessel named in the Form CCC-106 
or (2) is the operator of such vessel by time charter or bareboat 
charter and the ocean freight rate used in determining the amount of 
ocean freight or ocean freight differential, as appropriate, for which 
reimbursement is claimed is not in excess of the contract rate under 
such charter.
    (p) Ocean freight included in the commodity contract price. (1) For 
cost and freight or c.i.f. contracts the ocean freight, or the ocean 
freight differential, as appropriate, will be financed only to the 
extent specifically provided in the applicable purchase authorization.
    (2) For cost and freight or c.i.f, contracts when the Form CCC-106 
provides that CCC will not finance ocean freight or ocean freight 
differential, as appropriate, the supplier's detailed invoice covering 
the commodity shall show a deduction for the full cost of ocean freight.

[31 FR 16818, Dec. 31, 1966]

    Editorial Note: For Federal Register citations affecting Sec. 17.14 
see the List of CFR Sections Affected in the Finding Aids section of 
this volume.



Sec. 17.15   Letter of commitment method of financing.

    (a) General. (1) The banking institution to which a letter of 
commitment is issued by the Controller will be designated by the 
participant, and must be acceptable to CCC. The letter of commitment 
will assure reimbursement to the banking institution in accordance with 
the terms of such letter of commitment, not in excess of the amount 
specified in the letter of commitment, for payments made or drafts 
accepted under letters of credit for the account of the approved 
applicant.
    (2) Each letter of commitment will name the Federal Reserve Bank to 
which drafts shall be presented by the banking institution to obtain 
reimbursement of amounts paid under the letters of credit and will name 
the FSA Office which will administer the financing operations under the 
letter of commitment on behalf of CCC.

[[Page 444]]

    (b) Application. (1) Original application. The participant shall 
apply for a letter or commitment by submitting the signed original of 
the Application for Letter of Commitment or Amendment, Form CCC-327, to 
the Controller. This form will designate the banking institution to 
receive the letter of commitment, will identify the approved applicant, 
and will show the maximum amount to be financed under the letter of 
commitment.
    (2) Amendment. The participant shall submit the signed original of 
Form CCC-327 to the Controller to request a change in a letter of 
commitment, except for reduction in amount which may be made by the 
banking institution in accordance with paragaph (f) of this section.
    (c) Issuance. On approval of the application for a letter of 
commitment, the Controller will issue the original and one copy of Form 
CCC-328, Letter of Commitment, to the designated banking institution. On 
approval of an application for an amendment of a letter of commitment, 
the Controller will issue the original and one copy of Form CCC-328-1, 
Amendment to Letter of Commitment, to the designated banking 
institution.
    (d) Acceptance by banking institution. Each letter of commitment and 
any amendment issued in accordance with paragraph (c) of this section, 
except an amendment which increases the amount of the letter of 
commitment, shall be accepted or rejected by the banking institution. 
The banking institution shall promptly return to CCC the copy of Form 
CCC-328 or Form CCC-328-1, indicating acceptance or rejection.
    (e) Advice to participant. The Controller will send to the 
appropriate office of the participant a copy of each letter of 
commitment or amendment accepted by the banking institution, including 
any amendment increasing the amount of a letter of commitment.
    (f) Reduction by banking institution. The amount of a letter of 
commitment may be reduced by a banking institution, when so requested by 
the participant, by issuing a Notice of Reduction of Letter of 
Commitment, Form CCC 328-2. Instructions to the banking institution for 
the preparation and distribution of this form are contained on the form. 
The request of the participant to the banking institution may be made by 
letter or telegram or other method acceptable to the banking 
institution.
    (g) Successors. The letter of commitment shall inure to the benefit 
of the banking institution's legal successors and assigns.
    (h) Issuance of letters of credit. In issuing, confirming, or 
advising a letter of credit pursuant to a letter of commitment, the 
banking institution shall observe the following:
    (1) General. The application or request for, and any agreement 
relating to, any letter of credit issued, confirmed, or advised in 
connection with a letter of commitment to a banking institution, may 
contain such provisions as the approved applicant and the banking 
institution may agree on, and the approved applicant and the banking 
institution may agree to any extension of the life of, or any other 
modification of, or variation from, the provisions of any such letter of 
credit: Provided, That such provisions and any such extension, 
modification or variance shall be in no respect inconsistent with or 
contrary to the provisions of the letter of commitment; in the event of 
any such inconsistency or conflict, the provisions of the letter of 
commitment shall prevail with respect to CCC financing: And provided 
further, That when a letter of credit provides for acceptance of time 
drafts, such letter of credit (or application therefor) shall specify 
that the discount and acceptance fees shall be for the account of the 
importer: And provided further, That commodity letters of credit must 
allow payment to the commodity supplier even if the bill of lading 
states that the vessel owner has placed a lien on the cargo. Every 
application for a letter of credit shall provide or shall be deemed to 
provide for submision to the banking institution of the documentation 
required by this regulation and by the purchase authorization.
    (2) Identification. Each letter of credit, modification, or 
extension shall contain the number of the applicable purchase 
authorization and, if possible, of the letter of commitment.

[[Page 445]]

    (3) Commodity description. The commodity description in a letter of 
credit and the supplier's detailed invoice must correspond with the 
description as shown on page one of the purchase authorization. In 
making payment or accepting a time draft under a letter of credit, the 
banking institution shall, on the basis of the information contained in 
the required documents, act in accordance with good commercial practice.
    (4) Time drafts. Immediately after acceptance of a time draft, the 
banking institution shall forward the documents required by Sec. 17.18, 
to the FSA Office named in the letter of commitment. Each draft drawn by 
the banking institution on CCC under a letter of commitment shall be 
presented to the Federal Reserve Bank and shall be supported by Form 
CCC-339, ``Advice of Receipt of Documents,'' if such documents were 
submitted to CCC before presentation of the draft.
    (5) Deferred opening of letter of credit. CCC may refuse to finance 
a transaction under any arrangement to delay opening of a letter of 
credit; but in any event interest or carrying charges incurred as a 
result of a delay in opening a letter of credit shall not be eligible 
for CCC financing. The banking institution will nevertheless be 
reimbursed for payments made under such letters of credit.
    (6) Delay in presenting documents. No transaction wherein a letter 
of credit provides for deferred presentation of documentation required 
by CCC shall be eligible for financing.
    (i) Availability of information to CCC. The banking institution 
shall make available to CCC, upon request, a copy of each letter of 
credit issued, confirmed, or advised by it, and of any extension or 
modification thereof; a copy of each application and agreement relating 
to such letter of credit; a copy of each document in its possession 
received by it under the letter of credit; and detailed advice of the 
interest, commissions, expenses, or other items charged by it in 
connection with each such letter of credit.
    (j) Acceptability of documents. Acceptance by the banking 
institution of any document in the ordinary course of business in good 
faith as being genuine and valid and sufficient in the premises, and the 
delivery thereof to the Federal Reserve Bank or the FSA Office as 
required, shall constitute full compliance by the banking institution 
with any provisions of this subpart, the purchase authorization, or the 
letter of commitment requiring delivery of a document of the sort that 
the document actually delivered purports to be. The banking institution 
shall be entitled to receive and retain reimbursement of the amount of 
all payments made or acceptances by it against documents so accepted, 
notwithstanding that such payments or acceptances may be made in 
connection with a sale at a price in excess of the maximum specified in 
Sec. 17.11 except to the extent provided in Sec. 17.20(b)(7).
    (k) Truth or accuracy of supplier's statements. The banking 
institution shall have no responsibility for the truth or accuracy of 
the statements contained in the Form CCC-329 ``Supplier's Certificate.'' 
The rights of the banking institution under the letter of commitment 
will not be affected by the fact that such Form CCC-329 may be 
incomplete, or may indicate noncompliance with any provision of these 
regulations, or of the purchase authorization or of the letter of 
commitment, or may be inconsistent with other required documents.
    (l) Notice of supplement, modification, or revocation. A supplement, 
modification, or revocation of any purchase authorization or letter of 
commitment shall become effective as to a banking institution on the 
receipt by it from the Controller of a written notice of such 
supplement, modification, or revocation, except that such supplement, 
modification, or revocation shall in no event affect or impair the right 
of the banking institution to obtain reimbursement to the extent of any 
payments made or drafts accepted or irrevocable obligations incurred in 
reliance on the letter of commitment before receipt of such notice, 
under a letter of credit issued, confirmed or advised by the banking 
institution, and for which the banking institution has not been repaid 
by the approved applicant. The banking institution, however, is under

[[Page 446]]

no obligation to obtain such repayment. The term ``purchase 
authorization'' as used in a letter of commitment shall be deemed to 
include each such supplement or modification from and after receipt by 
the banking institution from the Controller of written notice thereof, 
subject always, however, to the foregoing terms and provisions 
preserving the banking institution's right of reimbursement.
    (m) Compliance with changes in purchase authorizations. If the 
General Sales Manager revokes a purchase authorization or supplement, or 
modifies its requirements with regard to the disposition of any 
document(s), and the Controller gives the banking institution written 
notice thereof, the banking institution shall in all respects comply 
with the instruction of the Controller to the extent it may do so 
without impairing or affecting any irrevocable obligation or liability 
theretofore incurred by it under any letter of credit issued or 
confirmed by it. The banking institution shall be reimbursed by CCC for 
the costs, expenses, and liabilities paid or incurred by it as a result 
of compliance with such instruction. Such reimbursement shall be made by 
CCC on application filed with the FSA Office named in the letter of 
commitment and supported by an itemized statement of the costs, 
expenses, and liabilities certified to by an officer of the banking 
institution. The banking institution shall have no obligation whatsoever 
to the approved applicant for anything done or omitted to be done by it 
pursuant to such instruction of the Controller.
    (n) Payments in anticipation of letter of commitment. Payments made 
or time drafts accepted by a banking institution in anticipation of a 
letter of commitment, and falling within the scope of payments 
authorized by such letter of commitment when issued, will be deemed to 
be payments to be reimbursed thereunder.
    (o) Deposit of foreign currency. When the deposit of local currency 
is required by the terms of the purchase authorization, the importing 
country shall provide, as hereinafter stated, for the deposit of its 
local currency in an amount equivalent to the dollars disbursed by the 
banking institutions or by CCC except that local currency shall not be 
deposited for the amount of ocean freight differential stated on Form 
CCC-106 for the tonnage involved in the shipment. Each deposit shall be 
at the rate of exchange for U.S. dollars provided in the applicable 
Agricultural Commodities Agreement. Documentation for each such deposit 
shall be furnished in duplicate to the U.S. Ambassador's designee, and 
shall show the number of the purchase authorization, the date and amount 
of the dollar disbursement, the exchange rate applicable to the deposit, 
and the amount of local currency deposited. The times and circumstances 
under which a deposit shall be effected are as follows:
    (1) When a time draft is accepted under a letter of credit, deposit 
shall be made on the date of maturity of each such draft or on an 
earlier date on which CCC disburses the amount of the draft to the 
banking institution.
    (2) For any other payment under a letter of credit, deposit shall be 
made immediately after receipt by the approved applicant of 
documentation showing the amount of dollar disbursement to the supplier 
by the banking institution under such a letter of credit. Receipt of 
such documentation by banks in the importing country or other agents 
designated for this purpose by the approved applicant shall be deemed to 
be receipt by the approved applicant.
    (p) Final date for submission of drafts. A draft drawn by a banking 
institution on CCC shall be supported by documents required for 
reimbursement. Such draft shall be presented not later than 210 days 
after the expiration of the delivery period specified in the applicable 
purchase authorization or any extension of such 210-day period granted 
by the General Sales Manager, except that the draft may be presented 
subsequent to that date if accompanied by a statement by the banking 
institution that the documents were received within the 210-day period 
and that payment to the supplier was made in due course.

[31 FR 16818, Dec. 31, 1966, as amended at 32 FR 5977, Apr. 14, 1967; 33 
FR 5137, Mar. 29, 1968. Redesignated and amended at 51 FR 47409, 47417, 
Dec. 31, 1986; 60 FR 62707, Dec. 7, 1995]

[[Page 447]]



Sec. 17.16  Reimbursement method of financing.

    (a) General. When a purchase authorization provides for the 
reimbursement method of financing, CCC will reimburse the participant or 
assignee for dollar payments to suppliers on submission of the documents 
required by Sec. 17.18 (c) and (d). Letters of commitment will not be 
issued under reimbursement type purchase authorizations.
    (b) [Reserved]
    (c) Assignment. (1) The right to receive reimbursement under a 
reimbursement type purchase authorization may be assigned by the 
participant to any bank, trust company or other financing institution in 
the United States by sending a completed Instrument of Assignment, Form 
CCC-335, in an original and one copy, to the assignee.
    (2) If the assignee accepts the assignment, the original and two 
copies of the Notice of Assignment, Form CCC-334, should be prepared by 
the assignee and together with one copy of the signed Instrument of 
Assignment, Form CCC-335, filed with the Controller. The copy of the 
signed Instrument of Assignment submitted with the Notice of Assignment 
must contain all of the signatures, seals, acknowledgements, etc., which 
appear on the original. The Controller will acknowledge receipt of the 
assignment.
    (d) Limitation on assignment. The assignment may be made only to a 
bank, trust company, or other financing institution in the United 
States. The assignment shall cover all amounts payable under the 
purchase authorization and not already paid, shall not be made to more 
than one party, and shall not be subject to further assignment, except 
that any such assignment may be made to one party as agent or trustee 
for two or more parties participating in the financing. Unless otherwise 
provided by the purchase authorization, the right of any such assignee 
to obtain reimbursement shall not be contingent on the deposit of 
currency by the importing country.
    (e) Protection of assignee. A supplement, modification, or 
revocation of a reimbursement type purchase authorization shall become 
effective as to the assignee on receipt by the assignee from the 
Controller of written notice of such supplement, modification, or 
revocation except that such supplement, modification, or revocation 
shall in no event affect or impair the right to obtain reimbursement to 
the extent of any payments made in reliance on the assignment by such 
assignee before receipt of such notice, or any irrevocable obligations 
incurred before receipt of such notice under a letter of credit issued 
or confirmed by such assignee in reliance on such assignment, for which 
the assignee has not been repaid by the participant (there shall be no 
obligation on the assignee's part to obtain such repayment). The term 
``purchase authorization'', as used in any assignment of the right to 
receive reimbursement under a reimbursement type purchase authorization 
shall be deemed to include each such supplement or modification from and 
after receipt by the assignee from the Controller of written notice of 
the same, subject always, however, to the foregoing provisions 
preserving rights of reimbursement on behalf of the assignee.
    (f) Requests for reimbursement. All requests for reimbursement, 
supported by the required documentation, shall be submitted to the FSA 
Office named in the reimbursement type purchase authorization or to the 
bank, trust company, or other financing institution in the United States 
holding an assignment acknowledged by CCC, not later than 210 days after 
expiration of the delivery period specified in such purchase 
authorization or any extension of such 210-day period granted by the 
General Sales Manager. When the request for reimbursement is submitted 
by a bank to CCC, a statement by the bank that the documents had been 
received within the 210-day period, and that payment to the supplier was 
authorized within such 210-day period, shall satisfy the requirements of 
this paragraph even though submission to CCC is made subsequent to the 
210-day period.
    (g) Setoff of overpayments. Amounts improperly paid to any assignee 
by CCC may be set off against amounts due the assignee under the same 
reimbursement type purchase authorization. Such overpayments may also be

[[Page 448]]

set off against amounts due the same assignee under other reimbursement 
type purchase authorizations issued to the same participant, provided 
such assignee is notified of the amount to be set off at the time 
receipt of the assignment is acknowledged by CCC.
    (h) Deposit of foreign currency. When the deposit of foreign 
currency is required by the terms of the purchase authorization, the 
importing country shall provide, as hereinafter stated, for the deposit 
of foreign currency equivalent to dollars disbursed by CCC, except that 
foreign currency shall not be deposited for the amount of ocean freight 
differential. Deposits shall be at the rate of exchange for U.S. dollars 
provided in the applicable Agricultural Commodities Agreement. 
Documentation for each such deposit shall be furnished to the U.S. 
Ambassador's designee in the importing country and shall show the number 
of the purchase authorization, the date and amount of the related dollar 
disbursement, the exchange rate applicable to the deposit, and the 
amount of foreign currency deposited. Deposit shall be made immediately 
after receipt by the importing country or its designee of documentation 
showing the date and net amount of dollar reimbursement (after deduction 
of ocean freight differential, if any) by CCC to the importing country, 
or to its assignee if the right to receive reimbursement under the 
purchase authorization has been assigned.
    (i) Special provisions. Requirements for special documentation, and 
other provisions not otherwise specified in the regulations in this 
subpart for reimbursement type purchase authorizations will be set forth 
in the purchase authorizations.

[31 FR 16818, Dec. 31, 1966, as amended at 34 FR 8963, June 6, 1969. 
Redesignated and amended at 51 FR 47409, 47417, Dec. 31, 1986]



Sec. 17.17  Adjustment refunds and insurance.

    (a) Adjustment refunds. All claims by importers for adjustment 
refunds arising out of terms of the contract or out of the normal 
customs of the trade, including arbitration and appeal awards, 
allowances, and claims for overpayment of ocean transportation, if such 
refunds relate to amounts financed by CCC, shall be settled by payment 
in U.S. dollars and such payment shall be remitted by the supplier to 
the CCC except refunds on cotton contracts. Such refunds on cotton 
contracts shall be made as provided in appendix A. The remittance shall 
be identified with the date and amount of the original payment, the 
commercial letter of credit number, and the applicable purchase 
authorization number.
    (b) Insurance on c.i.f. sales for account of importer. The 
provisions of this paragraph (b) apply only to transactions under 
purchase authorizations that specifically authorize c.i.f. sales in 
which the cost of insurance is included in the net c.i.f. invoice price 
of the commodity financed. When the supplier furnishes insurance in 
favor of or for the account of the importer, the policies of 
certificates of insurance shall include a loss payable clause which 
provides that all claims shall be paid in U.S. dollars to the Controller 
except for insurance claims on cotton which shall be paid as provided in 
appendix A. Such payments shall be accompanied by advice of the purchase 
authorization number, the names and addresses of the supplier and 
importer, the nature of the claim, the quantity of the commodity 
involved in the claim, the date of shipment, the bill of lading number, 
and the name of the vessel. CCC will credit the account of the 
participant or will refund local currency in accordance with paragraph 
(e) of this section.
    (c) Violation of agricultural commodities agreements. Whenever the 
General Sales Manager determines that the participant has failed to 
comply with any agreement or committment made by it in connection with 
the Agricultural Commodities Agreement between the United States and the 
participant pursuant to which the importation took place, the 
participant shall pay in U.S. dollars to CCC promptly on demand by the 
General Sales Manager the entire amount financed by CCC or such lesser 
amount as the General Sales Manager shall demand.
    (d) Refund of ineligible amounts. If a sale has been financed and 
CCC determines that the sales price exceeds the maximum price 
permissible under Sec. 17.11 or that the sale is otherwise in

[[Page 449]]

whole or in part, ineligible for financing, the supplier shall refund in 
dollars such ineligible amount to CCC promptly on demand. If not 
promptly refunded, such amount may be set off by CCC against monies it 
owes to the supplier. The making of any such refund to CCC, or any such 
setoff by CCC shall not prejudice the right of the supplier to challenge 
such determination in a court action brought against CCC for recovery of 
the amount refunded or set off.
    (e) Refund of local currency or reduction of amount due. Immediately 
after receipt by CCC of U.S. dollar payment from suppliers or from or 
for the account of the participant under this section, CCC will provide 
for payment to the importing country of the local currency equivalent of 
dollars received, if such local currency has been deposited for the 
particular transaction or will credit the participant's account as 
follows:
    (1) For payments under this section, except paragraph (c), the local 
currency refunded will be at the exchange rate agreed to by the 
Government of the United States and the government of the importing 
country in effect at the time the local currency is paid to or for the 
account of the importer except that if there has been a change in the 
exchange system or structure of the importing country, such payment 
shall be made at the agreed exchange rate which was in effect on the 
date of dollar disbursement for the transaction financed, and except 
further that local currency shall not be paid when the dollars are to be 
reauthorized for replacement of the commodity.
    (2) For payment under paragraph (c) of this section, the local 
currency refunded will be at the agreed exchange rate in effect on the 
date of the dollar disbursement for the transaction financed: Provided, 
That local currency will not be refunded to the extent that deposits of 
such currency have been made available to the importing country on a 
grant basis.
    (3) For refunds received by CCC under long-term credit agreements 
the participant's account shall be credited with the dollar amount 
refunded or otherwise recovered, and the participant notified 
accordingly.

[31 FR 16818, Dec. 31, 1966, as amended at 34 FR 8963, June 6, 1969. 
Redesignated and amended at 51 FR 47409, 47417, Dec. 31, 1986]



Sec. 17.18  Documentation.

    (a) General. A request for payment submitted to a banking 
institution by a supplier and a request submitted to CCC for 
reimbursement of commodity or ocean transportation payment, or both, 
shall be supported, except as otherwise provided in the purchase 
authorization, by the documents required by this section, the purchase 
authorization, the letter of commitment, and appendix B unless such 
documents were previously submitted to CCC. Such documents, however, 
need not be submitted when and to the extent that the Controller 
determines that the intended purpose of a document is served by 
documents otherwise available to or under the control of CCC or by 
alternate documents specified in such determination. The documents 
required herein are in addition to any other documents the supplier may 
be required to submit to a bank under the applicable letter of credit. 
The supplier must present documentation required by CCC to the banking 
institution for immediate payment or acceptance of a time draft.
    (b) Identification. (1) The following documents must be identified 
with the appropriate purchase authorization numbers or be readily 
identifiable therewith:
    (i) Documents submitted by a supplier to a bank with request for 
payment of commodity price (including ocean freight or ocean freight 
differential, as appropriate, and insurance when covered by the 
commodity price) and such documents when submitted to CCC for 
reimbursement.
    (ii) Documents submitted to CCC to obtain reimbursement under a 
purchase authorization which provides financing for ocean freight, or 
ocean freight differential.
    (2) The supplier must put the appropriate purchase authorization 
number on all documents specified in this section which are prepared 
under his control. He should arrange for the appropriate purchase 
authorization number

[[Page 450]]

to be put on all other required documents at the time of their 
preparation.
    (c) Documents required for financing commodity price. A detailed 
list of all documents required for each commodity is contained in 
appendix B. Any additions, deletions or other changes will be stated in 
the purchase authorization or letter of commitment. General provisions 
relating to such documents are as follows:
    (1) Supplier's certificates. Signed originals of Form CCC-329 
``Supplier's Certificate'' are required for each request for payment as 
follows:
    (i) When ocean freight, or any portion of it, is financed by CCC, a 
Form CCC-329 is required from:
    (a) The supplier of the commodity covering the net invoice price for 
the commodity; and
    (b) The supplier of ocean freight covering the ocean freight or 
ocean freight differential, as appropriate, including any ocean freight 
financed on c. & f. or c.i.f. sales.
    (ii) When no part of the ocean freight is being financed by CCC, 
only one Form CCC-329 is required covering the supplier's net invoice 
price for the commodity.
    (2) Supplier's detailed invoice (2 copies). The copies of the 
supplier's detailed invoice submitted pursuant to appendix B shall show 
quantity, description, contracted price, net total invoice price 
expressed in dollars, the amount for which financing is requested from 
CCC, the amount not eligible for financing by CCC, and basis of delivery 
(e.g. f.o.b. Vessel, c. & f.) of the commodity. For the reimbursement 
method of financing the invoice shall also be marked ``paid''. Whenever 
the Form CCC-106 provides for an ocean freight rate differential on a 
cost and freight or c.i.f. sale and authorizes financing of any portion 
of ocean freight by CCC, the supplier's detailed invoice shall show a 
computation of the dollar amount of ocean freight differential. In 
arriving at the net invoice price there shall be deducted:
    (i) The ocean freight, or portion thereof which is not being 
financed by CCC when ocean freight is included in the contracted price;
    (ii) All discounts from the supplier's contracted price through 
payments, credits, or other allowances made or to be made to the 
importer, his agent or consignee;
    (iii) All purchasing agents' commissions;
    (iv) All other amounts not eligible for financing.
    (3) Additional payment. A request for an additional payment 
submitted for a transaction for which all or part of the required 
documents have been previously submitted to the bank, shall be supported 
by the following documents as applicable:
    (i) A Form CCC-329 ``Supplier's Certificate'' and the supplier's 
detailed invoice, covering the additional amount requested. The 
supplier's invoice must show the date, serial number and the amount of 
the original invoice and the basis for the additional amount claimed;
    (ii) A statement signed by the ship's master or owner (or agent of 
either of them) showing exercise of the higher-rated option, if the 
payment is stated to be due because of the exercise of a higher-rated 
option provided in a liner booking contract or charter party.
    (4) Weight certificate. Whenever a copy of a weight certificate is 
required by these regulations in this subpart or the applicable purchase 
authorization, the supplier shall submit a weight certificate issued by 
or on authority of a State or other governmental weighing department, 
Chamber of Commerce, Board of Trade, Grain Exchange, or other 
independent organization or firm providing public weighing services. 
Such organization or firm must have (i) qualified, impartial, paid 
employees who are stationed at the port facility or, if authorized under 
the applicable purchase authorization, other facility where weights 
customarily are determined, one of whom performed the weighing covered 
by the certificate, or (ii) qualified, independent, impartial, 
supervised, weighmasters stationed at the port facility or, if 
authorized under the applicable purchase authorization, other facility 
where weights are customarily determined, one of whom supervised the 
employee of such a facility in the performance of the weighing covered 
by the certificate.
    (5) Federal appeal inspection certificate. A Federal appeal 
inspection certificate,

[[Page 451]]

when included in the documents presented for payment, shall supersede 
any other inspection certificate required by this subpart, the 
applicable purchase authorization, or the letter of commitment. Appendix 
B or the applicable purchase authorization will specify the particulars 
of any required inspection certificate.
    (6) Notice of price approval. (i) The document required for each 
commodity to show that the price is approved for financing (see appendix 
B) shall be submitted to the bank with the documents covering the first 
transaction under the contract. The unit price shown on the supplier's 
invoice must not exceed the approved unit price shown on the price 
approval document.
    (ii) For subsequent transactions under the same contract, the 
supplier shall certify on the CCC copy of the detailed invoice as 
follows:

    I hereby certify that the applicable signed copy of the notice of 
price approval was submitted to (name of bank) with documents covering 
Invoice No. __________________ dated __________________ for $____.

    (7) Transshipment, certification required on invoice. If the Form 
CCC-106 requires grain to be exported from a Canadian transshipment 
point in a U.S.-flag vessel, and if it authorizes financing of ocean 
freight or ocean freight differential by CCC, the following 
certification is required on the supplier's invoice:

    The undersigned hereby certifies that an equivalent quantity of the 
same kind of grain covered by this invoice has been shipped in U.S.-flag 
vessels from U.S. Great Lakes ports via the St. Lawrence Seaway and 
received by the undersigned at Canadian transshipment points and such 
quantity was not previously applied by the undersigned to any government 
program to which the provisions of Pub. L. 664, 83d Congress are 
applicable.

``Kind of grain'' as used in the above certification is defined as the 
same kind of grain covered by the invoice without regard to grade or 
class.
    (8) Other required documents. The other required documents are as 
follows:
    (i) Four copies of the ocean bill of lading.
    (ii) Signed original of Form CCC-106-1 or 106-3 for c. & f. or 
c.i.f. sales.
    (iii) One nonnegotiable copy of the insurance certificate or policy 
where the cost of insurance is included in the price of the commodity to 
be financed by CCC.
    (d) Documents required for reimbursement of ocean freight financed 
separately from commodity price. To obtain reimbursement for ocean 
freight, or for ocean freight differential for any portion thereof which 
is financed separately from the commodity price, the following 
documentation shall be submitted:
    (1) Signed original of Form CCC-329, ``Supplier's Certificate'', to 
be executed by the carrier or its agent, covering the dollar cost of 
ocean freight or ocean freight differential.
    (2) One copy of the ocean bill of lading and, if required by the 
related Form CCC 106-2, a notice of arrival at the first port of 
discharge of the vessel named in the Form CCC 106-2. In lieu of a notice 
of arrival the carrier may present a waiver of the notice of arrival 
signed by the General Sales Manager or Controller.
    (3) One copy of the carrier's invoice marked ``paid'' which shows 
the total freight costs paid, the amount not eligible for financing by 
CCC, and the amount for which financing is requested from CCC. If the 
invoice relates to a U.S.-flag vessel, such invoice shall contain the 
following typed or stamped certification, executed by the supplier:

    The undersigned hereby certifies that the vessel named herein and 
for which ocean freight is claimed, qualifies as a privately owned U.S.-
flag commercial vessel within the requirements of Pub. L. 87-266 and is 
an eligible U.S.-flag vessel for the purposes of Pub. L. 664, 83rd 
Congress.

    (4) Signed original of Form CCC 106-2 (or Form CCC-106-3 in the case 
of cotton).
    (5) One copy of the charter party for shipment by dry bulk carrier 
or tanker.
    (6) A request for payment of any amounts claimed because of the 
exercise of a higher rated option following payment of a lower rated 
option pursuant to Sec. 17.14(k)(1) shall be supported by the following 
documents:
    (i) One copy of the carrier's invoice as described in paragraph 
(d)(3) of this

[[Page 452]]

section except for the certification required therein.
    (ii) The Form CCC-329, Supplier's Certificate, for the balance 
claimed.
    (iii) A statement signed by the ship's master, owner, or owner's 
agent, and signed laytime statements or other written concurrence of 
charterer or his agent showing the exercise of the higher rated option.
    (e) Documentary requirements. In addition to the general 
requirements set forth in paragraphs (a) through (c) of this section, 
each purchase authorization or letter of commitment (1) will refer to a 
specific section of appendix B for documentary requirements for the 
commodity, and (2) will specify any additions to or changes from 
appendix B.

[31 FR 16818, Dec. 31, 1966; 32 FR 921, Jan. 26, 1967, as amended at 32 
FR 5978, Apr. 14, 1967; 33 FR 5138, Mar. 29, 1968; 33 FR 10005, July 12, 
1968; 35 FR 592, Jan. 16, 1970; 50 FR 2950, Jan. 23, 1985; 51 FR 2742, 
Jan. 17, 1986. Redesignated and amended at 51 FR 47409, 47417, Dec. 31, 
1986; 54 FR 21931, May 22, 1989; 56 FR 33370, July 22, 1991; 60 FR 
62707, Dec. 7, 1995; 61 FR 17823, Apr. 23, 1996]



Sec. 17.19  Documents in support of drafts drawn on CCC by banking institutions.

    Drafts drawn on CCC by banking institutions under letter of 
commitment for reimbursement of amount disbursed to suppliers shall be 
supported by the following documents:
    (a) Documents obtained from suppliers. Documents specified in 
Sec. 17.18 and such additional or substitute documents as may be 
required with respect to any particular transaction as specified in the 
purchase authorization or in the letter of commitment. A banking 
institution holding a letter of commitment is not required by CCC to 
obtain any other documents from suppliers.
    (b) Documents originated by banking institutions. (1) Form CCC-331 
``Advice of Payment or Acceptance of Draft'' in duplicate, the original 
containing an authorized signature for the banking institution.
    (2) A copy of the advice of payment for ocean freight differential 
when required by Sec. 17.20(a)(7).
    (c) Documents originated by FSA Offices. Form CCC-339, Advice of 
Receipt of Documents, signed for CCC when documentation was previously 
submitted to and acknowledged by CCC.

[31 FR 16818, Dec. 31, 1966, as amended at 32 FR 5978, Apr. 14, 1967; 33 
FR 10005, July 12, 1968. Redesignated and amended at 51 FR 47409, 47417, 
Dec. 31, 1986]



Sec. 17.20  Responsibilities of banking institutions for transactions under letters of commitment.

    The responsibilities of banking institutions under the regulations 
in this subpart for transactions under letters of commitment are limited 
to the responsibilities stated under paragraphs (a) and (b) of this 
section and as stated in Secs. 17.15 and 17.19.
    (a) Full responsibilities. The banking institution shall have full 
responsibility for the following:
    (1) Delivery of documents. The banking institution shall deliver to 
the Federal Reserve Bank named in the letter of commitment, documents 
required by the regulations in this subpart, the letter of commitment, 
and the purchase authorization. In addition to the general documentation 
requirements set forth in Sec. 17.18 each purchase authorization or 
letter of commitment will (i) refer to specific sections of appendix B 
for documentation requirements and (ii) specify any additions to or 
changes from the provisions of appendix B.
    (2) Advice to approved applicant. The banking institution shall 
airmail advice of the amount of dollar disbursement or the dollar amount 
and maturity date of time drafts accepted to the approved applicant or 
to the bank or agency authorized by the approved applicant to open 
related letters of credit. If documents and advice of payment are sent 
to such bank or agency, another advice of payment shall be airmailed to 
the approved applicant. The transmittal shall include one of the 
following:
    (i) When the purchase authorization is for sales on long-term credit 
there shall be included a request that the approved applicant or the 
bank or agency authorized by the approved applicant to open related 
letters of credit notify the participant that ``the net amount of the 
supplier's invoice financed by CCC under the transaction is $____''.
    (ii) When the purchase authorization is for sales for foreign 
currency there

[[Page 453]]

shall be included a request that the local currency equivalent of dollar 
disbursements be deposited immediately in the account of the U.S. 
Disbursing Officer, or that the local currency equivalent of the dollar 
amount of time drafts being financed by CCC be deposited in the account 
of the U.S. Disbursing Officer at maturity.
    (3) Examination of documents. The banking institution shall examine 
the required documents in accordance with good commercial practice.
    (4) Delivery date. The banking institution shall ascertain that the 
ocean bills of lading bear a date within the delivery period specified 
in the purchase authorization, or any extension thereof granted by the 
Administrator.
    (5) Destination. The banking institution shall ascertain that the 
required documents are consistent, under good commercial practice with 
shipment, transshipment, or reshipment to the country required by the 
purchase authorization.
    (6) Description. Section 17.15(h)(3) provides that the commodity 
description in letters of credit and on the supplier's detailed invoice 
must correspond with the description on page 1 of the purchase 
authorization. In making payment or accepting time drafts under letters 
of credit, the banking institution shall, on the basis of the 
description contained in the required documents (other than Form CCC-
329) act in accordance with good commercial practice.
    (7) Verification of computation of ocean freight differential and 
notification to approved applicant. When Form CCC-106 provides for an 
ocean freight rate differential on a cost and freight or c.i.f. sale, 
and authorizes financing of any part of ocean freight by CCC, and the 
transaction is financed by the bank under a letter of credit, the 
banking institution shall:
    (i) Determine that the supplier's detailed invoice shows a 
computation of the dollar amount of ocean freight differential;
    (ii) Verify the computation of such amount of differential, using 
the rate stated in Form CCC-106 and the gross weight shown on the 
supplier's detailed invoice or the ocean bill of lading, whichever is 
less; and
    (iii) Include with the advice of dollar disbursement or time draft 
accepted under the letter of credit, advice of whichever of the 
following is applicable:
    (a) Under long-term credit sales the net dollar amount for which the 
participant is indebted to the Government of the United States. Such 
notice shall be in substantially the following language:

    The amount of $____ paid to the beneficiary includes an ocean 
freight differential of $____. The participant is indebted to the 
Government of the United States for the net amount of $____.

    (b) Under sales for foreign currency, the net dollar amount for 
which the equivalent in local currency is to be deposited immediately or 
at maturity of a time draft as provided in Sec. 17.15(o). This advice 
shall specify that deposit of local currency is not required for the 
value of the ocean freight differential. Such advice shall be in 
substantially the following language:

    The amount of $____ paid to the beneficiary includes an ocean 
freight differential of $____ according to the provisions of the 
attached copy of Form CCC-106, Advice of Vessel Approval. You are 
requested to deposit only the local currency equivalent to the net 
amount of $____.

A copy of such advice, when the amount paid includes such differential, 
shall be sent with the other required documents to the FSA Office named 
in the letter of commitment.
    (8) Reimbursement of CCC for losses. On demand by CCC, the banking 
institution shall promptly reimburse CCC for the amounts of any losses 
sustained as a direct result of failure on the part of the banking 
institution to carry out its responsibilities as required by the 
regulations in this subpart and shall pay to CCC interest on the amount 
of such losses at a per annum rate equal to the Federal Reserve Bank of 
New York's discount rate in effect on the date that CCC makes demand 
upon the banking institution, computed from and including the date of 
the original payment by or reimbursement by CCC to but not including the 
date that the banking institution reimburses CCC for the amounts of such 
losses.
    (9) Adjustment refunds. (i) The banking institution shall at the end 
of each

[[Page 454]]

calendar month, report to the Controller the total amount of any 
adjustment refunds for cotton sales received during the month pursuant 
to sections (D) and (E) of appendix A which were remitted to the 
approved applicant or agent for the account of the importer.
    (ii) A copy of each advice sent to approved applicants or agents 
shall accompany each monthly report. The banking institution has no 
other responsibility under Sec. 17.17.
    (10) Purchase authorization number. The banking institution shall 
examine required documents to determine that they bear the appropriate 
purchase authorization number or are readily identifiable therewith.
    (11) Additional requirements. Any additional particulars for which 
the banking institution is to be responsible will be specified in the 
purchase authorization or letter of commitment as (i) additional 
required documents, (ii) additional statements to be contained in the 
required documents, or (iii) additional actions to be performed.
    (b) Limited responsibilities. The banking institution shall have 
limited responsibility for transactions under letters of commitment as 
follows:
    (1) Contracting. Section 17.6 provides that contracts must meet 
certain specific requirements to be eligible for financing. The banking 
institution is responsible only to the extent of ascertaining that the 
required documents show delivery terms as required by the purchase 
authorization (f.o.b., f.a.s., cost and freight, or c.i.f.). The banking 
institution has no other responsibility under Sec. 17.6.
    (2) Vessel approval. The banking institution shall not make payment 
under the letter of credit unless the name of the vessel shown on Form 
CCC-106 agrees with the name of the vessel shown on the ocean bill of 
lading. The banking institution is not required to verify the signature 
appearing on Form CCC-106 or to make an independent inquiry as to the 
correctness of the information shown thereon.
    (3) Discounts, purchasing agents' commissions and consular fees. The 
banking institution is not required to make independent inquiry as to 
whether the net invoice price includes either discounts (whether 
expressed as such or as ``commissions'' to the importer, or made or to 
be made through payments, credits to other allowances to the buyer or 
consignee), commissions payable to purchasing agents, or consular fees 
but shall not honor any such items when disclosed by required documents 
other than Form CCC-329. The provisions of Sec. 17.8(c) regarding 
commissions are intended primarily for the instruction of suppliers, and 
banking institutions are not responsible for compliance therewith except 
to the extent set forth above.
    (4) Weight certificate. The banking institution is responsible for 
ascertaining that a weight certificate is included in the documentation 
when required by the purchase authorization or appendix B, and that the 
quantity invoiced does not exceed the weight shown on the certificate. 
The banking institution is not responsible for ascertaining that the 
weight certificate meets the requirements of Sec. 17.18(c)(4).
    (5) Insurance. The banking institution is responsible only for 
ascertaining that a copy of the policy or certificate of insurance 
accompanies the required documents whenever the cost of insurance is 
included in the commodity price under a purchase authorization which 
specifically authorized contracting on a c.i.f. basis.
    (6) Deduction for ocean freight on cost and freight or c.i.f. 
invoices. (i) If Form CCC-106 provides that ocean freight is not to be 
financed by CCC, the banking institution shall not make payment or 
accept time drafts under the letter of credit unless a deduction for 
ocean freight is shown on the CCC copy of the supplier's detailed 
invoice. The banking institution is not responsible for the accuracy of 
such deduction.
    (ii) If the Form CCC-106 provides for ocean freight differential 
financing by CCC, the banking institution shall not make payment or 
accept a time draft unless a deduction is shown on the invoice for that 
part of the cost of ocean freight not being financed by CCC. See also 
paragraph (b)(8) of this section. The banking institution is not 
responsible for the accuracy of the deduction.
    (7) Price. The banking institution is responsible for verifying that 
the unit price stated in the supplier's invoice does not exceed the unit 
price stated in

[[Page 455]]

the document showing price approval by USDA when such document is 
required, but is not responsible for the price provisions set forth in 
Sec. 17.11.
    (8) Ocean transportation. The banking institution is responsible for 
provisions relating to ocean transportation as set forth in Sec. 17.14 
only to the extent specified in paragraphs (a)(5) and (7), and (b)(2) 
and (6) of this section.
    (9) Information from other sources. The right of reimbursement for 
payments made or drafts accepted by a banking institution in accordance 
with good commercial practice will not be affected, except for those 
particulars set forth in paragraphs (a) and (b) of this section, by the 
fact that the documents received by the banking institution or 
information or notice received from any other source indicates 
noncompliance with any provisions of the regulations in this subpart or 
of the purchase authorization or the letter of commitment.
    (10) Delivery of documents. The banking institution is not 
responsible for delivery of documents required by the provisions of 
appendix B, except as provided in paragraph (a)(1) of this section.
    (c) No responsibility. For transactions under a letter of 
commitment, the following shall apply:
    (1) Supplier's certification and required certifications or 
statements. The banking institution is not responsible for the truth or 
accuracy of information contained in Form CCC-329, Supplier's 
Certificate, or in any special certification or statement required by 
these regulations, the terms of the purchase authorization or the letter 
of commitment. The banking institution is entitled to rely on such Form, 
certifications and statements and is not responsible for the sufficiency 
or completeness of the information contained therein, or for any 
indication by such information of noncompliance with any provisions of 
such regulations or the purchase authorization, or for any inconsistency 
with other required documents, certifications or statements. The banking 
institution is not responsible for ascertaining compliance with 
Sec. 17.6(f). The provisions of this paragraph shall not supersede or 
alter the provisions of Sec. 17.20 (a) and (b).
    (2) [Reserved]
    (3) Contracting period. The purchase authorization specifies the 
period during which contracts may be entered into by suppliers and 
importers. A banking institution has no responsibility with regard to 
compliance with this requirement.
    (4) Statements in required documents. The banking institution is not 
responsible for the truth or accuracy of the statements, if any, 
contained in the required documents. A banking institution is not 
obligated to look beyond these documents or to make independent 
investigations as to the accuracy of statements made therein. 
Acceptability of documents is described in Sec. 17.15(j).
    (5) Deposit or convertibility of local currency. The banking 
institution is not responsible for the deposit or convertibility of 
local currency or the repayment of long-term obligations.
    (6) Purchase authorizations--Eligible commodities. The banking 
institution is not responsible for ascertaining compliance with the 
provisions of Secs. 17.3 and 17.4, except to the extent specified in 
this section.
    (7) Compliance with contracting provisions. The banking institution 
is not responsible for ascertaining compliance with the provisions of 
appendix A, except as set forth in the purchase authorization or the 
letter of commitment as the responsibility of the banking institution.
    (d) Responsibilities under reimbursement method of financing. No 
letter of commitment is issued for purchase authorizations which provide 
for the reimbursement method of financing.
    (e) This section shall not relieve the banking institutions of the 
responsibilities which they may have assumed under private trade entity 
agreements or guarantees pursuant to private trade entity agreements.

[31 FR 16818, Dec. 31, 1966; 32 FR 3935, Jan. 26, 1967, as amended at 32 
FR 5978, Apr. 14, 1967; 33 FR 5138, Mar. 29, 1968; 33 FR 10005, July 12, 
1968; 33 FR 16381, Nov. 8, 1968. Redesignated and amended at 51 FR 
47409, 47417, Dec. 31, 1986; 61 FR 17824, Apr. 23, 1996]



Sec. 17.21  FSA Offices.

    (a) Kansas City Commodity Office, FSA, U.S. Department of 
Agriculture,

[[Page 456]]

P.O. Box 419205, Kansas City, Missouri 64141-6205.
    (b) Fiscal Management Division, FSA, U.S. Department of Agriculture, 
P.O. Box 2415, Washington, DC 20013.

[60 FR 62707, Dec. 7, 1995]



Sec. 17.22   Supplier's records.

    Suppliers and agents of the participant or importer shall keep 
accurate books, records and accounts with respect to all contracts 
entered intohereunder, including those pertaining to ocean 
transportation-related services and records of all payments by suppliers 
to representatives of the importer or participant, if CCC finances any 
part of the ocean freight. Suppliers and agents shall permit authorized 
representatives of the U.S. Government to have access to their premises 
during regular hours to inspect, examine, audit and make copies of such 
books, records and accounts. Suppliers and agents shall retain such 
records until the expiration of three years after final payment under 
such contracts.

[60 FR 62708, Dec. 7, 1995]

             Appendix A to Part 17--Contracting Requirements

    (A) Wheat in bulk or bags.
    (B) Wheat flour.
    (C) Feed grains in bulk or bags.
    (D) Upland cotton.
    (E) Extra long staple cotton.
    (F) Soybean oil or cottonseed oil.
    (G) Tallow (inedible).
    (H) Rice (milled and brown) bags and bulk.

    In addition to the other provisions of the regulations in part 17, 
Subpart A, and unless otherwise provided in the applicable purchase 
authorizations, the following special provisions apply in the case of 
specific commodities.
    (A) Wheat in bulk or bags.
    (1)--(3) [Reserved]
    (4) Quality description: Contracts shall provide for quality 
description in terms of the Official Grain Standards of the United 
States.
    (5) Transshipment: To the extent that exportation of wheat from 
Canadian transshipment point(s) is required in U.S.-flag vessels, the 
Form CCC-106 will require shipment of an equivalent quantity of U.S. 
wheat from U.S. Great Lakes ports to the Canadian transshipment point(s) 
via the St. Lawrence Seaway in U.S.-flag vessels.
    (6) Weight and grade (bulk): In the case of bulk wheat, the weight 
shall be determined at point of loading to vessel and the grade shall be 
determined by an inspector holding a license under the U.S. Grain 
Standards Act or the Agricultural Marketing Act at point of loading to 
vessel.
    (7) Weight and grade (bags): In the case of wheat in bags, the grade 
shall be determined by an inspector holding a license under the U.S. 
Grain Standards Act or the Agricultural Marketing Act not more than 15 
days prior to loading to vessel while the wheat was at port under the 
supervision of the Port Authority, and the wheat shall be checkloaded by 
the Grain Division, AMS, at the time of loading the wheat for shipment 
to port for export or at time of loading the wheat to vessel.
    (8) Dockage: In determining the quantities to be shown on the 
supplier's invoice, for which the supplier invoices the importer, there 
shall be deducted the amount of any dockage where there is a separate 
percentage for dockage shown on the inspection certificate.
    (B) Wheat flour.
    (1) [Reserved]
    (2) Contract specifications: Contracts for flour shall provide for 
the following quality specifications:
    (a) Protein. Not less than (percentage to be specified in the 
applicable purchase authorization) basis 14 percent moisture. (The 
minimum protein content eligible for financing shall be not more than 
0.5 percent below the protein content specified in the contract.)
    (b) Ash. Not more than 0.48 percent basis 14 percent moisture. (The 
maximum ash content eligible for financing shall be not more than 0.53 
percent.)
    (c) Moisture. Not more than 14 percent (The maximum moisture content 
eligible for financing shall be not more than 0.5 percent above the 
moisture content specified in the contract.)
    The approved price for flour which does not meet the protein, ash or 
moisture content shown on Form CCC-359 or Form FAS-359 Declaration of 
Sale, shall be subject to the discounts provided in paragraph 7 of this 
section.
    (3) Contracts shall state the type and weight of bags required by 
the importer.
    (4)--(5) [Reserved]
    (6) Sampling, Analysis, Checkweighing. Bags and Markings:
    (a) Ten (10) days prior to sampling the supplier must furnish 
contract specifications regarding quality, in duplicate, to the Pub. L. 
480 Operations Division, FAS, USDA, Washington, DC 20250-1033, together 
with the name and address of the persons, firms, or agency that will 
perform the sampling and analysis service and the location of the flour 
and dates available for sampling.
    (b) Sampling: The drawing of samples shall be performed by the 
Inspection Branch, Grain Division, AMS, or by an independent

[[Page 457]]

surveyor mutually acceptable to the importer and the supplier. The 
supplier shall request inspection of the flour upon arrival at port of 
loading to vessel. If the inspection certificate is dated more than 
fifteen (15) days prior to on-board date shown on the ocean bill of 
lading the supplier shall obtain additional inspection within fifteen 
(15) days of the on-board date shown on the ocean bill of lading showing 
that the flour was free of infestation.
    (c) Minimum rates for sampling: The following minimum rate applies 
to any delivery or portions of delivery for which a separate inspection 
has been requested. The minimum rate of sampling shall be one composite 
sample of flour for each 500,000 pounds or part thereof. A composite 
sample shall consist of all the products from 50 probes. Each of the 50 
probes shall be obtained from a different bag of flour selected at 
random. When it is desired to increase the sampling rate because of 
nonuniformity of the flour or for other reasons, it shall be done by 
increasing the number (not size) of composite sample for each 500,000 
pound portion. Each composite sample shall be tested separately in a 
laboratory to determine quality. The result of the analyses of composite 
samples will be averaged (weighted average) and certified on one 
certificate when no individual composite sample deviates from the 
contract specification for any factor by more than the tolerance in the 
following schedule:

  Maximum Deviation of a Sample Result From the Contract Specification

    Minus 0.5 percent protein.
    Plus 0.2 percent moisture.
    Plus 0.02 percent ash.

    If one or more composite samples exceed the tolerance in the above 
schedule for any factor, each of these shall be certified separately. 
The remaining composite samples shall be averaged and certified on one 
certificate.
    (d) Recoopering: Recoopering of bags shall be the responsibility of 
the supplier and performed at his expense.
    (e) Analysis: The quality of the flour exported shall be determined 
by the Inspection Branch, Grain Division, AMS, or by a commercial 
laboratory mutually acceptable to buyer and seller.
    (f) Check sampling and analysis: If the services are performed by 
independent surveyors and commercial laboratories, FAS may at any time 
request the Inspection Branch, Grain Division, AMS, to draw check 
samples and perform check analysis. The cost of such check sampling and 
analyses will be for the account of CCC.
    (g) Checkweighing: The flour to be exported shall be checkweighed at 
the mill at the time of loading to sealed cars or trucks for shipment to 
port of export, or at the port of export while the flour was at port 
under the control of the Port Authority, by the Inspection Branch, Grain 
Division, AMS, or by an independent weighmaster or an independent 
surveyor mutually acceptable to the importer and seller to determine (i) 
gross weight, (ii) net weight, and (iii) tare weight.
    (h) Bag specifications: Compliance with contract specifications and 
suitability of bags for export shall be determined by an independent 
surveyor. Each bag shall be marked with the name of the importing 
country and the purchase authorization number.
    (7) Schedule of Discounts on deficient protein and excess moisture 
or ash and either excess or deficient maltose: (protein, ash and maltose 
will be on the basis of 14% moisture). If the flour exported does not 
meet the contract quality specifications as shown on the Form CCC-359 or 
Form FAS-359, the approved price shall be reduced by the following 
schedule of discounts:

                           Per each 100 pounds                          
------------------------------------------------------------------------
           Excess ash               Excess moisture    Deficient protein
------------------------------------------------------------------------
0.00-0.009-0 cents..............  0.0-0.09-0 cents..  0.0-0.09-0 cents. 
0.01-0.019-2 cents..............  0.1-0.19-2 cents..  0.1-0.19-2 cents. 
0.02-0.29-4 cents...............  0.2-0.29-4 cents..  0.2-0.29-4 cents. 
0.03-0.39-7 cents...............  0.3-0.39-6 cents..  0.3-0.39-6 cents. 
0.04-0.049-11 cents.............  0.4-0.49-8 cents..  0.4-0.49-8 cents. 
0.05-16 cents...................  0.5-12 cents......  0.5-12 cents.     
Over 0.05-16 cents plus 16 cents                                        
 for each 0.01 percent.                                                 
------------------------------------------------------------------------

    Flour with protein deficiency of more than 0.5 percent, excess 
moisture more than 0.5 percent, and ash content more than 0.53 percent 
will not be eligible for financing.
    If specified in the terms of the contract, the approved price shall 
be reduced by the following schedule of discounts:
    Excess or deficient diastatic activity (maltose content) below 300 
or above 400 mg. for each 10 grams per each 100 lbs.

3 cents for 1-25 mg. maltose.
6 cents for 26-50 mg. maltose.
10 cents for 51-75 mg. maltose.
15 cents for 76-100 mg. maltose.

    For each 25 mg. fraction thereof maltose over 100 mg. plus 15 cents.
    (C) Feed grains in bulk or bags.
    (1)--(2) [Reserved]
    (3) Weight and grade (bulk): For feed grains in bulk, the weight 
shall be determined at point of loading to vessel and the grade shall be 
determined by an inspector holding a license under the U.S. Grain 
Standards Act or the Agricultural Marketing Act at point of loading to 
vessel.

[[Page 458]]

    (4) Weight and grade (bags): For feed grains in bags, the grade 
shall be determined by an inspector holding a license under the U.S. 
Grain Standards Act or the Agricultural Marketing Act not more than 15 
days prior to loading to vessel while the feed grain was at port under 
the supervision of the Port Authority, and the feed grains shall be 
checkloaded by the Grain Division, AMS, at the time of loading the feed 
grain for shipment to port for export or at time of loading the feed 
grain to vessel.
    (5) Transshipment: To the extent that exportation of feed grain from 
a Canadian transshipment point is required in U.S.-flag vessels, the 
Form CCC-106 will require shipment of an equivalent quantity of U.S. 
feed grain from U.S. Great Lakes ports to the Canadian transshipment 
point via the St. Lawrence Seaway in U.S.-flag vessels.
    (6) Quality description: Contracts shall provide for quality 
description in terms of the Official Grain Standards of the United 
States.
    (7) Dockage: In determining the quantities to be shown on the 
supplier's invoice, for which the supplier invoices the importer, there 
shall be deducted the amount of any dockage where there is a separate 
percentage for dockage shown on the inspection certificate, except that 
dockage up to 2 percent for barley will not be deductible to the extent 
that the sales contract provides for a specified dockage allowance. 
Sales contracts for barley will not be approved if the dockage allowed 
exceeds 2 percent.
    (D) Upland cotton:
    (1) Notification of sale by the supplier: The supplier shall, within 
5 days from the date of export sale, furnish the Director, FSA Commodity 
Office, U.S. Department of Agriculture, P.O. Box 419205, Kansas City, 
Missouri 64141-6205, with a copy of his sales confirmation, and if the 
supplier fails to do so, CCC shall have the right to refuse to finance 
the sale under the program. The supplier must furnish the name and 
address of the sales agent, if any.
    (2) Price confirmation: The FSA Commodity Office will undertake, on 
behalf of CCC, to check the sales confirmation as to price and to inform 
the supplier, within 3 business days from receipt of the sales 
confirmation whether such price is in conformance with Sec. 17.11 of 
these regulations.
    (a) If the FSA Commodity Office determines that the sales price is 
in conformance with Sec. 17.11 of the regulations, the supplier will be 
informed by telegram of the registration number assigned to the sale by 
CCC. The Commodity Office will mail to the supplier the original and one 
copy of Form KC-467, which will show the unit price approval and, for 
each invoice, the percentage of financing which CCC will provide 
pursuant to the provisions of the purchase authorization.
    (b) Failure by the FSA Commodity Office to so notify the supplier by 
telegram within 5 business days after receipt of the copy of the sales 
confirmation will indicate that the sale price is not acceptable, and 
the sale will not be financed under the program unless the supplier 
satisfies CCC that the sale price is in conformance with Sec. 17.11(b) 
of the regulations.
    (3) Financing: The participant is responsible for opening letters of 
credit in favor of U.S. suppliers for amounts to be financed by CCC, and 
for opening letters of credit or making other acceptable arrangements 
for prompt payment of amounts not being financed by CCC. Such 
arrangements must assure prompt payment of the full contracted price. If 
prompt payment of such amount is not made to a U.S. supplier in dollars 
the entire transaction may be determined by USDA to be ineligible for 
CCC financing, and the participant shall, upon demand, make U.S. dollar 
refund to CCC of the amount financed by CCC. On receipt of such 
remittance, under foreign currency sales CCC will refund equivalent 
local currency to the importing country and for long-term credit sales 
CCC will credit the participant's account.
    (a) Contracts basis Form A Sample Classification Memorandum (USDA 
Form CN-354) or Form R Classification Memorandum (USDA Form CN-358.) 
(Such Forms are hereinafter referred to respectively as Form A, or Form 
R Certificates.) If USDA Form A or Form R Certificates are required for 
all contract quality factors, i.e., grade, staple, micronaire, and 
strength (if strength is required in the contract), CCC will finance 
100% of the f.a.s. invoice value.
    (b) Contracts basis foreign arbitration. For contracts other than 
those which require USDA Form A or Form R for all contract quality 
factors, CCC will finance 98% of the f.a.s. invoice value.
    (c) Reimbursement for ocean freight differential: For sales 
registered as cost and freight, c.i.f., or f.a.s., when the Form CCC 
106-3 authorizes financing ocean freight differential the supplier may 
obtain reimbursement for ocean freight differential not included in 
payment under the letter of credit by application to the Kansas City FSA 
Commodity Office.
    (d) Refunds: The provisions of Sec. 17.17(a) which require 
remittance of refunds to CCC do not apply to refunds arising out of 
cotton sales financed under these regulations unless otherwise provided 
in the purchase authorization or letter of commitment. Such refunds 
shall be remitted by the supplier for the account of the importer 
through the U.S. bank which financed the original transaction. The 
remittance shall be identified with the date and amount of the original 
payment, the commercial letter of credit number, and the purchase 
authorization

[[Page 459]]

number. (For transactions where the supplier is billed by CCC for refund 
of amounts over-financed, the supplier shall remit directly to the 
billing office.) The participant may retain all dollar exchange received 
in connection with the adjustment refunds under a purchase authorization 
which is subject to the regulations. In the case of ineligible cotton, 
the supplier shall remit directly to CCC. CCC will make appropriate 
local currency refunds to importers for dollar recoveries by CCC direct 
from suppliers, or will advise the participant of credit to its account 
as appropriate.
    (e) Insurance: The provisions of Sec. 17.17(b) of the regulations 
with regard to insurance claims which require that claims be paid to the 
Controller do not apply to cotton sales for which c.i.f. financing is 
authorized. The participant may retain all dollar exchange received in 
connection with insurance claims under such c.i.f. financed cotton 
sales.
    (4) U.S. net weight: Net weight shall be determined in the United 
States and certified by a U.S. warehouseman, or it shall be determined 
at the U.S. port of export and certified by an authorized weigher (sales 
basis landed weight, ex-dock and ex-warehouse--consigned stocks--are not 
eligible for financing).
    (5) Quality: Although seller's offers may be on the basis of private 
types, in all invitations for bids the quality shall be described in 
terms of the Official Cotton Standards of the United States. Quality 
shall be specified in contracts between importers and suppliers. A 
contract shall cover only one quality. Quality descriptions in contracts 
shall be in terms of the Official Cotton Standards of the United States, 
except where sales are made on the basis of private types. In the case 
of private-type sales, the supplier must make such private types 
available for classification by AMS no later than the date the sale 
confirmation is furnished the Kansas City FSA Commodity Office.
    (6) Arbitration: Cotton shall be subject to arbitration for quality 
(unless the contract provides for Form A or Form M Certificates) and for 
other terms under rules of an established cotton exchange or association 
agreed upon by the importer and supplier, such established cotton 
exchange or association to be identified in the contract. An importer of 
cotton shall, if requested by CCC, obtain foreign quality arbitration 
under the specified cotton exchange or association rules. If the 
contract provides for Form A or Form M Certificate, CCC will not request 
such arbitration. The arbitration award may be appealed by the supplier 
or the importer and shall be appealed by the importer, upon request by 
CCC, under the applicable rules specified in the contract. If the costs 
paid by the importer for an arbitration or appeal requested by CCC are 
in excess of the award, CCC will reimburse the importer, or other party 
designated by the importer, in an amount equal to such excess, upon 
submission to the Director, FSA Commodity Office, U.S. Department of 
Agriculture, P.O. Box 419205, Kansas City, Missouri 64141-6205, of 
documentation showing the amount of costs incurred by the importer and 
the amount of the award. These provisions shall not alter the rights of 
the importer and the supplier to effect adjustment by arbitration or 
otherwise in accordance with the provisions of the contract or customs 
of the trade for other than quality deficiencies, or for quality 
deficiencies if CCC does not request arbitration.
    (7) Certification as to quality and classification: The supplier's 
invoice (CCC copy only) or a signed attachment thereto shall contain the 
following certification: ``The undersigned hereby represents that he 
believes the quality and classification of the cotton shipped under this 
contract are substantially as stated in the contract. The supplier does 
not guarantee the quality or classification, and agrees to adjust the 
price for any difference in quality or classification determined by 
arbitration as provided in the regulations or the purchase 
authorization''.
    (8) Delayed letter of credit: Interest or carrying charges incurred 
as a result of delays in establishing letters of credit are not eligible 
for financing.
    (9) Sampling, classification, and adjustment of contract price: 
(This provision is applicable to all sales hereunder unless the contract 
provides for Form A or Form M Certificate.)
    (a) Tag lists and sampling: The supplier shall furnish to any 
permanent AMS classing office, of the supplier's choice, a tag list of 
the cotton included in a single export shipment showing the supplier's 
name and address; the CCC registration number; purchase authorization 
number; the supplier's sale number, if any; the name, address and CCC 
code number of the warehouse in which the cotton is stored; and the 
warehouse bale numbers of the cotton to be exported listed in numerical 
sequence. A separate tag list must be submitted for the cotton to be 
shipped from each warehouse. Samples will be required from a minimum of 
10 percent of the bales of cotton (larger percentages will be used on 
small lots). The bales to be sampled will be selected by the chosen AMS 
classing office and entered on a Record Sheet. If the supplier desires a 
larger percentage of samples to be drawn than the minimum required, he 
should indicate such percentage on the tag list. At the time the copy of 
the tag list is furnished the warehouseman by the supplier, he shall 
instruct him to sample the bales of cotton listed on the Record Sheet 
and to handle such samples in accordance with instructions issued by the 
Kansas City FSA Commodity Office. The supplier shall also instruct the 
warehouseman that the cotton must not be shipped until after it has been 
sampled in accordance

[[Page 460]]

with instructions issued by the Kansas City FSA Commodity Office. All 
costs relating to the samples and sampling will be for the account of 
the supplier.
    (b) Submitting private-type for classification: If the sale is made 
on the basis of private-type and if the particular type has not been 
classed under the revised standards effective June 15, 1963, the 
supplier shall submit the private-type for classing directly to the 
Appeal Board of Review Examiners, Cotton Division, AMS, USDA, 4841 
Summer Avenue, Memphis, Tenn. 38117, along with a completed Request for 
Classification (Form CN-357). The type shall be identified by the 
supplier's name and address and private-type name or designation.
    If the sale is made on the basis of private-type classed under the 
revised standards effective June 15, 1963, the supplier shall so advise 
the Kansas City FSA Commodity Office and identify such private-type by 
furnishing the supplier's name and address, the number of the AMS 
classification memorandum, the date of such classification memorandum, 
and the supplier's private-type name or designation.
    The private-type submitted for classification hereunder shall be 
identical in quality with the private-type on which the sale is based 
and the private-type supplied to the arbitration board in connection 
with the contract covering the sale.
    (c) Adjustment of contract price: In addition to the other 
requirements for quality arbitration, the following will also apply:
    (i) When the classification of the cotton is determined by an appeal 
board in connection with an appeal from an arbitration award, the 
contract price shall be reduced by the larger of the following two 
amounts: The award assigned or the amount by which the contract price 
exceeds the prevailing range of export prices at the time of sale as 
determined by CCC on the basis of the classification assigned by the 
appeal board in connection with such appeal.
    (ii) When the classification of the cotton is not determined by an 
appeal board in connection with an appeal from an arbitration award, the 
contract price shall be reduced by the amount of the award assigned.
    (10) Extra copy of invoice: Supplier shall forward, immediately 
after shipment of the cotton, a legible copy of his invoice to the 
Director, FSA Commodity Office, U.S. Department of Agriculture, P.O. Box 
419205, Kansas City, Missouri 64141-6205. Such copy is in addition to 
the copy for CCC to be submitted with other required documents to the 
banking institution.
    (E) Extra Long Staple Cotton:
    (1) Notification of Sale by the Supplier: The supplier shall, within 
5 days from the date of export sale, furnish the Director, FSA Commodity 
Office, U.S. Department of Agriculture, P.O. Box 419205, Kansas City, 
Missouri 64141-6205, with a copy of his sales confirmation, and if the 
supplier fails to do so, CCC shall have the right to refuse to finance 
the sale under the program. The supplier must furnish the name and 
address of the sales agent, if any.
    (2) Price confirmation: The FSA Commodity Office will undertake, on 
behalf of CCC, to check the sales confirmation as to price and to inform 
the supplier, within 3 business days from receipt of the sales 
confirmation, whether such price is in conformance with Sec. 17.11(b) of 
these regulations.
    (a) If the FSA Commodity Office determines that the sale price is in 
conformance with Sec. 17.11 of the regulations, the supplier will be 
informed by telegram of the registration number assigned to the sale by 
CCC. The Commodity Office will mail to the supplier the original and one 
copy of Form KC-467, which will show the unit price approval and, for 
each invoice, the percentage of financing which CCC will provide 
pursuant to the provisions of the purchase authorization.
    (b) Failure by the FSA Commodity Office to so notify the supplier by 
telegram within 5 business days after receipt of the copy of the sales 
confirmation will indicate that the sale price is not acceptable, and 
the sale will not be financed under the program unless the supplier 
satisfies CCC that the sale price is in conformance with Sec. 17.11(b) 
of these regulations.
    (3) Financing: The participant is responsible for opening letters of 
credit in favor of U.S. suppliers for amounts to be financed by CCC, and 
for opening letters of credit or making other acceptable arrangements 
for prompt payment of amounts not being financed by CCC. Such 
arrangements must assure prompt payment of the full contracted price. If 
prompt payment of such amount is not made to a U.S. supplier in dollars 
the entire transaction may be determined by USDA to be ineligible for 
CCC financing, and the participant shall, upon demand, make U.S. dollar 
refund to CCC of the amount financed by CCC. On receipt of such 
remittance, under foreign currency sales CCC will refund equivalent 
local currency to the importing country and for long-term credit sales 
CCC will credit the participant's account.
    (a) Contracts basis Form A Sample Classification Memorandum (USDA 
Form CN-354) or Form R Classification Memorandum (USDA Form CN-358.) 
(Such Forms are hereinafter referred to respectively as Form A, or Form 
R Certificates.) If USDA Form A or Form R Certificates are required for 
all contract quality factors, i.e., grade, staple, micronaire, and 
strength (if strength is required in the contract), CCC will finance 
100% of the f.a.s. invoice value.
    (b) Contracts basis foreign arbitration. For contracts other than 
those which require USDA Form A or Form R for all contract

[[Page 461]]

quality factors, CCC will finance 98% of the f.a.s. invoice value.
    (c) Reimbursement for Ocean Freight Differential: For sales 
registered as cost and freight, c.i.f. or f.a.s., when the Form CCC-106-
3 authorizes financing ocean freight differential the supplier may 
obtain reimbursement for ocean freight differential not included in 
payment under the letter of credit by application to the Kansas City FSA 
Commodity Office.
    (d) Refunds: The provisions of Sec. 17.17(a) which require 
remittance of refunds to CCC do not apply to refunds arising out of 
cotton sales financed under these regulations unless otherwise provided 
in the purchase authorization or letter of commitment. Such refunds 
shall be remitted by the supplier for the account of the importer 
through the U.S. bank which financed the original transaction. The 
remittance shall be identified with the date and amount of the original 
payment, the commercial letter of credit number, and the purchase 
authorization number. (For transactions where the supplier is billed by 
CCC for refund of amounts overfinanced, the supplier shall remit 
directly to the billing office.) The participant may retain all dollar 
exchange received in connection with adjustment refunds under a purchase 
authorization which is subject to these regulations. In the case of 
ineligible cotton, the supplier shall remit directly to CCC. CCC will 
make appropriate local currency refunds to importers for dollar 
recoveries by CCC direct from suppliers, or will advise the participant 
of credit to its account as appropriate.
    (e) Insurance: The provision of Sec. 17.17(b) of these regulations 
with regard to insurance claims which require that claims be paid to the 
Controller do not apply to cotton sales for which c.i.f. financing is 
authorized. The participant may retain all dollar exchange received in 
connection with insurance claims under such c.i.f. financed cotton 
sales.
    (4) U.S. net weight: Net weight shall be determined in the United 
States and certified by a U.S. warehouseman, or it shall be determined 
at the U.S. port of export and certified by other authorized weigher 
(sales basis landed weight, ex-dock and ex-warehouse-consigned stocks 
are not eligible for financing).
    (5) Quality: Although sellers' offers may be on the basis of private 
types, in all invitations for bids the quality shall be described in 
terms of the Official Cotton Standards of the United States. Quality 
shall be specified in contracts between importers and suppliers. A 
contract shall cover only one quality. Quality descriptions in contracts 
shall be in terms of the Official Cotton Standards of the United States, 
except where sales are made on the basis of private types. In the case 
of private-type sales, the supplier must make such private types 
available for classification by AMS no later than the date the sales 
confirmation is furnished the Kansas City FSA Commodity Office.
    (6) Arbitration: Cotton shall be subject to arbitration for quality 
(unless the contract provides for Form A or Form M Certificates) and for 
other terms under rules of an established cotton exchange or association 
agreed upon by the importer and supplier, such association or 
established cotton exchange to be identified in the contract. An 
importer of cotton shall, if requested by CCC, obtain foreign quality 
arbitration under the specified cotton exchange or association rules. If 
the contract provides for USDA Form A or Form M Certificates, CCC will 
not request such arbitration. The arbitration award may be appealed by 
the supplier or the importer and shall be appealed by the importer upon 
request by CCC, under the applicable rules specified in the contract. If 
the costs paid by the importer for an arbitration or appeal requested by 
CCC are in excess of the award, CCC will reimburse the importer, or 
other party designated by the importer, in an amount equal to such 
excess, upon submission to the Director, FSA Commodity Office, U.S. 
Department of Agriculture, P.O. Box 419205, Kansas City, Missouri 64141-
6205 of documentation showing the amount of costs incurred by the 
importer and the amount of the award. These provisions shall not alter 
the rights of the importer and the supplier to effect adjustments by 
arbitration or otherwise in accordance with the provisions of the 
contract or customs of the trade for other than quality deficiencies, or 
for quality deficiencies if CCC does not request arbitration.
    (7) Certification as to quality and classification: The supplier's 
invoice (CCC copy only) or a signed attachment thereto shall contain the 
following certification: ``The undersigned hereby represents that he 
believes the quality and classification of the cotton shipped under this 
contract are substantially as stated in the contract. The supplier does 
not guarantee the quality or classification, and agrees to adjust the 
price for any difference in quality or classification determined by 
arbitration as provided in the regulations or the purchase 
authorization.''
    (8) Delayed letter of credit: Interest or carrying charges incurred 
as a result of delays in establishing letters of credit are not eligible 
for financing hereunder.
    (9) Sampling, classification and adjustment of contract price (This 
provision is applicable to all sales hereunder unless the contract 
provides for Form A or Form M Certificates):
    (a) Tag lists and sampling: The supplier shall furnish to any 
permanent AMS classing office of the supplier's choice a tag list of the 
cotton included in a single export shipment showing the supplier's name 
and address; the CCC registration number; the purchase authorization 
number; the supplier's sale number, if any; the name, address and CCC 
code

[[Page 462]]

number of the warehouse in which the cotton is stored; and the warehouse 
bale number of the cotton to be exported listed in numerical sequence. A 
separate tag list must be submitted for the cotton to be shipped from 
each warehouse. Samples will be required from a minimum of 10 percent of 
the bales of cotton (larger percentages will be used on small lots). The 
bales to be sampled will be selected by the chosen AMS classing office 
and entered on a Record Sheet. If the supplier desires a larger 
percentage of samples to be drawn than the minimum required he should 
indicate such percentage on the tag list. At the time the copy of the 
tag list is furnished the warehouseman by the supplier, he shall 
instruct him to sample the bales of cotton listed on the Record Sheet 
and to handle such samples in accordance with instructions issued by the 
Kansas City FSA Commodity Office. The supplier shall also instruct the 
warehouseman that the cotton must not be shipped until after it has been 
sampled in accordance with instructions issued by the Kansas City FSA 
Commodity Office. All costs relating to the samples and sampling will be 
for the account of the supplier.
    (b) Submitting private-type for classification: If the sale is made 
on the basis of private-type and if the particular type has not been 
submitted on or after August 1, 1962, for classification, the supplier 
shall submit the private-type for classing directly to the Appeal Board 
for Review Examiners, Cotton Division, AMS, Department of Agriculture, 
4841 Summer Avenue, Memphis, Tenn., 38117. The type shall be identified 
by the supplier's name and address and private-type name or designation. 
The classification of any type submitted prior to August 1, 1962, will 
not be acceptable.
    If the sale is made on the basis of a private-type previously 
submitted on or after August 1, 1962, for classification, the supplier 
shall so advise the Kansas City FSA Commodity Office and identify such 
private-type by furnishing the supplier's name and address, the number 
of AMS classification memorandum, the date of such classification 
memorandum, and the supplier's private-type name or designation.
    The private-type submitted for classification hereunder shall be 
identical in quality with the private-type on which the sale is based 
and the private-type supplied to the arbitration board in connection 
with the contract covering the sale.
    (c) Adjustment of contract price: In addition to the other 
requirements for quality arbitration, the following will also apply:
    (i) When the classification of the cotton is determined by an appeal 
board in connection with an appeal from an arbitration award, the 
contract price shall be reduced by the larger of the following two 
amounts: The award assigned or the amount by which the contract price 
exceeds the prevailing range of export prices at the time of sale as 
determined by CCC on the basis of the classification assigned by the 
appeal board in connection with such appeal.
    (ii) When the classification of the cotton is not determined by an 
appeal board in connection with an appeal from an arbitration award, the 
contract price shall be reduced by the amount of the award assigned.
    (10) Extra copy of invoice: The supplier shall forward, immediately 
after shipment of the cotton, a legible copy of his invoice to the 
Director, FSA Commodity Office, U.S. Department of Agriculture, P.O. Box 
419205, Kansas City, Missouri 64141-6205. Such copy is in addition to 
the copy for CCC to be submitted with other required documents to the 
banking institution.
    (F) Soybean oil or cottonseed oil.
    (1)-(2) [Reserved]
    (3) Quality and containers: Contracts for cottonseed and/or soybean 
oil will not be eligible for financing unless the oil meets quality 
specifications as provided in the applicable purchase authorization. If 
the commodity is to be purchased in drums, they must be new or 
reconditioned drums, if in barrels, they must be new barrels, and if in 
bags, the contract must state the type, size and weight of the bags.
    (4) Sampling and analysis:
    (a) Ten (10) days prior to sampling the supplier must furnish 
contract specifications regarding quality, in duplicate, to the Pub. L. 
480 Operations Division, FAS, USDA, Washington, DC 20250-1033, together 
with the name and address of the persons, firms or agency that will 
perform the sampling and analysis service and the location of the oil 
and dates when available for sampling.
    (b) The drawing of samples and laboratory analysis may be performed 
by the Inspection Branch, Grain Division, AMS, or by independent 
surveyor(s) and commercial laboratories mutually agreeable to the 
importer and the supplier. The chemical analysis by commercial 
laboratories must be performed under procedures prescribed in the 
Trading Rules of the National Soybean Processors Association, or in the 
Trading Rules of the National Cottonseed Products Association.
    If the services are performed by independent surveyor(s) and 
commercial laboratories, FAS may at any time request the Inspection 
Branch, Grain Division, AMS, to draw check samples and perform check 
analysis. The cost of such check sampling and analysis will be for the 
account of CCC.
    (c) Bulk oil: For bulk oil, the samples shall be obtained in 
accordance with American Oil Chemists' Society Method C 1-47.
    (d) Oil in drums or barrels: For oil in drums or barrels, samples 
shall be drawn not more than 30 days prior to onboard date shown on the 
ocean bill of lading, while the containers are being filled.

[[Page 463]]

    (e) Flakes in bags: For flakes in bags, samples shall be drawn from 
10 percent of bags selected at random at the time and point of loading 
to vessel.
    (5) Weighing: Determination of weight shall be by an independent 
surveyor or independent weighmaster.
    (a) Bulk oil: The weight shall be determined at the time of loading 
aboard the vessel.
    (b) Oil in drums or barrels: The weight of the oil in drums or 
barrels shall be determined at time of filling the containers.
    (c) Flakes in bags: The weight of flakes in bags shall be determined 
at the time of filling the bags.
    (6) Surveying of containers:
    (a) Bulk oil: Each tank into which the oil is to be loaded shall be 
examined by an independent surveyor prior to loading to determine that 
the tank(s) are clean and otherwise suitable for receipt of the oil.
    (b) Oil in drums: Drums shall be examined, prior to filling, by an 
independent surveyor. The drums shall be new or reconditioned and shall 
be rejected if mechanically unsound, contaminated with previous 
contents, or printed with labels or markings for other commodities. The 
weight of each drum shall be determined at the time of inspection for 
the purpose of establishing the tare and weight.
    (c) Oil in barrels: Barrels must be new and shall be examined prior 
to filling by an independent surveyor. They shall be rejected if 
mechanically unsound, or printed with labels or markings for other 
commodities. The weight of each barrel shall be determined at the time 
of inspection for the purposes of establishing the tare weight.
    (d) Flakes in bags: Suitability of bags for export and compliance 
with contract specifications shall be determined by an independent 
surveyor.
    (7) Markings: Markings requested by the importer shall be stenciled 
on the drums, barrels or bags and shall include the name or symbol of 
the supplier, the purchase authorization number and the name of the 
importing country.
    (8) Drawback. Contracts must provide that the commodity to be 
exported has not been and will not be used as the basis for a claim of a 
refund, as a drawback, pursuant to section 313 of the Tariff Act of 
1930, of any duty, tax, or fee imposed under Federal law on an imported 
commodity or product.
    (G) Tallow (inedible):
    (1)-(2) [Reserved]
    (3) Quality description shall be as defined in the ``Rules of the 
New York Produce Exchange for Animal Oils and Fats'' (Export Contract 
for Bulk Tallows and Greases) that are in effect on the date of the 
contract is entered into. The minimum quality eligible for financing 
shall be ``Special Grade.'' If the contract provides for ``Special 
Grade'' inedible tallow, tolerances and discounts with respect to 
Moisture, Insoluble Impurities, and Unsaponifiable Matter (MIU) only as 
provided in the NYPE rules shall apply. If the contract provides for 
``Prime Grade'' or better, all tolerances and discounts as provided in 
the NYPE rules shall be applicable.
    (4) Sampling and analysis:
    (a) Ten (10) days prior to sampling the supplier must furnish 
contract specifications regarding quality, in duplicate, to the Pub. L. 
480 Operations Division, FAS, together with a citation to the name and 
address of the persons, firms, or agency that will perform the sampling 
and analysis service and the location of the tallow and dates when 
available for sampling.
    (b) The drawing of samples and laboratory analysis may be performed 
by the Meat Grading Branch, Livestock Division, AMS, or by independent 
surveyors and commercial laboratories mutually agreeable to the importer 
and the supplier. If the services are performed by independent 
surveyor(s) and commercial laboratories, FAS may at any time request the 
Meat Grading Branch, Livestock Division, AMS, to draw check samples and 
perform check analysis. The cost of such check sampling and analysis 
will be for the account of CCC.
    (c) Bulk tallow: For bulk tallow, the samples shall be obtained in 
accordance with the American Oil Chemists' Society Method C1-47.
    (d) Tallow in drums. For tallow in drums, samples must be obtained 
at the time of filling drums. Samples shall be drawn from at least 5 
percent of the drums, but in all cases the higher of 10 drums or 5 
percent of the total drums in the lot shall be sampled. The samples from 
each lot shall be composited and a single sample drawn from the 
composited sample for analysis.
    (5) Weighing: Determination of weight shall be by an independent 
weighmaster or independent surveyor or by the Meat Grading Branch, 
Livestock Division, AMS.
    (a) Bulk tallow: The weight shall be determined at the time of 
loading aboard vessel.
    (b) Tallow in drums: The weight of the tallow in drums shall be 
determined at the time of filling drums.
    (6) Kind of drums: The drums must be new or reconditioned.
    (7) Surveying of containers: Suitability of the tanks, holds, or 
drums for export shall be determined by an independent surveyor or by 
the Meat Grading Branch, Livestock Division, AMS.
    (a) Bulk tallow: Each tank or hold into which the tallow is to be 
loaded shall be examined by an independent surveyor or by the Meat 
Grading Branch, Livestock Division, AMS, prior to loading to determine 
that the tanks are clean and in such condition as not to contaminate the 
product and that the tank is otherwise acceptable for receipt of tallow.

[[Page 464]]

    (b) Tallow in drums: Drums shall be examined, prior to filling, by 
an independent surveyor or the Meat Grading Branch, Livestock Division, 
AMS. The drums shall be new or reconditioned and shall be rejected if 
mechanically unsound, contaminated with previous contents, or printed 
with labels or markings for other commodities. The weight of each drum 
shall be determined at the time of inspection for the purpose of 
establishing the tare weight.
    (8) Markings: Markings requested by the importer shall be stenciled 
on the drums, and shall include the name or symbol of the supplier, 
purchase authorization number, the name of the importing country, and 
the word ``inedible.''
    (H) Rice, milled and/or brown in bags and/or bulk:
    (1)-(3) [Reserved]
    (4) Weights and grades:
    (a) Rice in bags: The rice shall be check loaded by or under the 
supervision of the Grain Division, AMS, at time of loading the rice for 
shipment to port for export, or at time of loading of rice to ocean 
vessel as shown on a Commodity Examination Report. Form GR-116.
    Grades shall be determined by lot inspection by or under the 
supervision of the Grain Division, AMS, made not more than 15 days prior 
to loading to ocean vessel while the rice was at port under the 
supervision of the Port Authority.
    (b) Rice in bulk: For rice in bulk, weights shall be obtained at 
point of loading to ocean vessel; or if the supplier has obtained 
approval from the Director, Pub. L. 480 Operations Division, FAS, to 
furnish weights to be taken at point other than at point of loading to 
ocean vessel, weights shall be 99.5 percent of the weight shown on a 
weight certificate (weights to be taken at time of loading to barge less 
a deduction for the weight of any rice loaded onto the barge which was 
not unloaded into the ocean vessel, or to be the difference between 
heavy and light weights of rail car or truck loading direct to ocean 
vessel). The supplier shall obtain a copy of a Commodity Examination 
Report, Form GR-116, issued by or under the supervision of the Grain 
Division, AMS, which shows that the rice was transferred from the 
carrier to ocean vessel in the manner specified in the letter of 
approval from the Director, Pub. L. 480 Operations Division, FAS, and 
containing a notification regarding any rice not so transferred.
    Grades shall be determined by lot inspection by or under the 
supervision of the Grain Division, AMS, at point of loading to ocean 
vessel.

[31 FR 16818, Dec. 31, 1966; 32 FR 921, Jan. 26, 1967, as amended at 32 
FR 5978, Apr. 14, 1967; 33 FR 5138, Mar. 29, 1968; 51 FR 47417, 47418, 
Dec. 31, 1986; 54 FR 21931, May 22, 1989; 56 FR 3970, Feb. 1, 1991; 60 
FR 62705, 62706, Dec. 7, 1995; 61 FR 17824, Apr. 23, 1996]

             Appendix B to Part 17--Documentary Requirements

    (A) Wheat:
    (1) Wheat in bulk.
    (2) Wheat in bags.
    (B) Wheat flour.
    (C) Feed grains:
    (1) Feed grains in bulk.
    (2) Feed grains in bags.
    (D) Upland cotton.
    (E) Extra long staple cotton.
    (F) Soybean oil and cottonseed oil:
    (1) Soybean oil and cottonseed oil in drums, barrels, or bags.
    (2) Soybean oil and cottonseed oil in bulk.
    (G) Tallow (inedible):
    (1) Tallow in drums.
    (2) Tallow in bulk.
    (H) Rice (milled and brown):
    (1) Rice in bags.
    (2) Rice in bulk.

The documentation required for specific commodities is set forth in this 
appendix B pursuant to the provisions of the regulations in part 17, 
subpart A. Any additions, deletions or other changes will be stated in 
the purchase authorization or letter of commitment.
    (A) Wheat:
    (1) Wheat in bulk:
    (a) Two copies of the supplier's invoice.
    (b) Signed original of Form CCC-329, Supplier's Certificate:
    (i) From the supplier of the commodity, and
    (ii) If any part of ocean freight is financed on cost and freight or 
.i.f. sales, also from the supplier of ocean freight.
    (c) Four copies of the ocean bill of lading.
    (d) Signed original of Form CCC-106-1, Advice of Vessel Approval for 
c. & f. or c.i.f. sales.
    (e) One nonnegotiable copy of insurance policy or certificate, if 
c.i.f.
    (f)  [Reserved]
    (g) One copy of Form CCC-359 or Form FAS-359, `Declaration of Sale,' 
signed for the General Sales Manager, by which the supplier was notified 
that the sale was approved for financing.
    (h) One copy of a grain inspection certificate issued by an 
inspector holding a license

[[Page 465]]

under the U.S. Grain Standards Act, covering inspection at point of 
loading to vessel in the United States, or a copy of a Commodity 
Inspection Certificate (Form GR-292) for grain issued by an inspector 
holding a license under the Agricultural Marketing Act, covering 
inspection at point of loading to vessel in Canada.
    (i) One copy of a weight certificate issued at point of loading to 
vessel.
    (2) Wheat in bags:
    (a) Two copies of the supplier's invoice which shall show the size 
and type of bags and whether they are new or used.
    (b) Signed original of Form CCC-329. Supplier's Certificate:
    (i) From the supplier of the commodity, and
    (ii) If any part of ocean freight is financed on cost and freight or 
c.i.f. sales, also from the supplier of ocean freight.
    (c) Four copies of an ocean bill of lading, which shall show the net 
weight of the wheat or the number of bags, and the gross weight of the 
wheat loaded aboard the vessel: Provided, That the weight of the bags is 
either shown on the bill of lading or is evidenced by the following 
certification furnished by the supplier:
    ``The undersigned hereby certifies that the weight of the bags is 
______ pounds.''
    (d) Signed original of Form CCC-106-1. Advice of Vessel Approval for 
c. & f. or c.i.f. sales.
    (e) A nonnegotiable copy of insurance policy or certificate, if 
c.i.f.
    (f)  [Reserved]
    (g) One copy of Form CCC-359 or Form FAS-359, `Declaration of Sale,' 
signed for the General Sales Manager, by which the supplier was notified 
that the sale was approved for financing.
    (h) One copy of a grain inspection certificate issued by an 
inspector holding a license under the U.S. Grain Standards Act, covering 
inspection at port of loading to vessel in the United States, or a copy 
of a Commodity Inspection Certificate (Form GR-292) for grain issued by 
an inspector holding a license under the Agricultural Marketing Act, 
covering the inspection at port of loading to vessel in Canada.
    (i) One copy of a Commodity Examination Report (Form GR-116) issued 
by or under the supervision of the Grain Division, AMS, which shows that 
the bagged wheat was checkloaded.
    (B) Wheat flour:
    (1) Two copies of the supplier's invoice, which shall show the gross 
weight of the flour in bags, the weight of the bags, and the net weight 
of the flour invoiced. The invoice shall also show the size and type of 
bags.
    (2) Signed original of Form CCC-329, Supplier's Certificate:
    (a) From the supplier of the commodity, and
    (b) If any part of ocean freight is financed on cost and freight or 
c.i.f. sales, from the supplier of ocean freight.
    (3) Four copies of an ocean bill of lading, which shall show thereon 
or in a separate listing attached thereto, the identifying lot number(s) 
which appear on the Commodity Inspection Certificate or laboratory 
report (the lot number may be the warehouse number, the railcar number, 
truck license number, or any other number that will accurately identify 
the lot), and shall show the net weight of the flour loaded aboard the 
vessel or shall show the number of bags and gross weight of the flour 
loaded aboard the vessel, provided that the weight of the bags is either 
shown on the bill of lading or is evidenced by the following 
certification furnished by the suppliers:
    ``The undersigned hereby certifies that the weight of the bags is 
______ pounds.''
    (4) Signed original of Form CCC-106-1, Advice of Vessel Approval for 
c. & f. or c.i.f. sales. .
    (5) A nonnegotiable copy of an insurance policy or certificate, if 
c.i.f.
    (6)  [Reserved]
    (7) One copy of Form CCC-359 or Form FAS-359, `Declaration of Sale,' 
signed for the General Sales Manager, by which the supplier was notified 
that the sale was approved for financing.
    (8) One copy of a Commodity Inspection Certificate (Form GR-133) 
issued by the Grain Division, AMS, or
    One copy of a laboratory report issued by a commercial laboratory 
which shall bear the following certification:
    ``The undersigned hereby certifies that the Laboratory Report was 
issued as a result of the analysis of samples received from (name and 
address of independent surveyor) and that the samples were drawn in 
accordance with the requirements of the purchase authorization.''
    Note: In lieu of the above certification, a certification will be 
accepted from the laboratory with which is included a certification by 
the independent surveyor, as follows:
    (From the independent surveyor:) ``The undersigned hereby certifies 
that samples furnished to (name and address of laboratory) were drawn in 
accordance with the provisions of the purchase authorization.''
    (From the laboratory): ``The undersigned hereby certifies that the 
laboratory report was issued as a result of samples received from (name 
and address of independent surveyor).''
    The Commodity Inspection Certificate (Form GR-133) issued by the 
Grain Division, AMS, or the laboratory report issued by a commercial 
laboratory shall show the exact moisture, protein, and ash content of 
the flour delivered under the authorization.

[[Page 466]]

    (9) If the Commodity Inspection Certificate (GR-133) or the 
laboratory report is dated more than fifteen (15) days prior to the on-
board date shown on the ocean bill of lading, the following additional 
documentation is required:
    (a) One copy of a Commodity Examination Report (GR-116) issued by or 
under the supervision of the Grain Division, AMS, dated not more than 15 
days prior to the ``on-board'' date and showing that the flour was free 
from infestation, or
    (b) One copy of an independent surveyor's report dated not more than 
15 days prior to the ``on-board'' date and showing that the flour was 
free from infestation.
    (10) One copy of a Commodity Examination Report (GR-116) issued by 
or under the supervision of the Grain Division, AMS, which shows the 
bagged flour was check-loaded, or
    One copy of a weight certificate issued by an independent 
weighmaster or an independent surveyor.
    (11) One copy of an independent surveyor's report stating that the 
bag markings and brand names or labels meet the requirements of these 
regulations (Sec. 17.8(d)) and section (B)(6)(h) of Appendix A, and the 
bags are suitable for export.
    (C) Feed grains:
    (1) Feed grains in bulk:
    (a) Two copies of the supplier's invoice.
    (b) Signed original of Form CCC-329, Supplier's Certificate:
    (i) From the supplier of commodity, and
    (ii) If any part of ocean freight is financed on cost and freight or 
c.i.f. sales, also from the supplier of ocean freight.
    (c) Four copies of an ocean bill of lading.
    (d) Signed original of Form CCC-106-1, Advice of Vessel Approval for 
c. & f. or c.i.f. sales. .
    (e) A nonnegotiable copy of an insurance policy or certificate, if 
c.i.f.
    (f)  [Reserved]
    (g) One copy of Form CCC-359 or Form FAS-359, `Declaration of Sale,' 
signed for the General Sales Manager, by which the supplier was notified 
that the sale was approved for financing.
    (h) One copy of a weight certificate issued at point of loading to 
vessel.
    (i) One copy of a grain inspection certificate issued by an 
inspector holding a license under the U.S. Grain Standards Act, covering 
inspection at point of loading to vessel in the United States, or
    One Commodity Inspection Certificate (Form GR-292) for grain issued 
by an inspector holding a license under the Agricultural Marketing Act, 
issued at point of loading to vessel in Canada.
    (2) Feed grains in bags:
    (a) Two copies of the supplier's invoice, which shall show the size 
and type of bags and whether they are new or used.
    (b) Signed original of Form CCC-329, Supplier's Certificate:
    (i) From the supplier of the commodity, and
    (ii) If any part of ocean freight is financed on cost and freight or 
c.i.f. sales, also from the supplier of ocean freight.
    (c) Four copies of the ocean bill of lading, which shall show the 
net weight of the feed grain loaded aboard the vessel, or shall show the 
number of bags and the gross weight of the feed grain loaded aboard the 
vessel provided that the weight of the bags is either shown on the bill 
of lading or is evidenced by the following certification furnished by 
the supplier:
    ``The undersigned hereby certifies that the weight of the bags is 
______ pounds.''
    (d) Signed original of Form CCC-106-1. Advice of Vessel Approval for 
c. & f. or c.i.f. sales. .
    (e) A nonnegotiable copy of the insurance policy or certificate, if 
c.i.f.
    (f)  [Reserved]
    (g) One copy of Form CCC-359 or Form FAS-359, `Declaration of Sale,' 
signed for the General Sales Manager, by which the supplier was notified 
that the sale was approved for financing.
    (h) One copy of a grain inspection certificate issued by an 
inspector holding a license under the U.S. Grain Standards Act, covering 
inspection at port of loading to vessel in the United States, or
    One copy of a Commodity Inspection Certificate (Form GR-292) for 
grain issued by an inspector holding a license under the Agricultural 
Marketing Act covering inspection at port of loading to vessel in 
Canada.
    (i) One copy of Commodity Examination Report (Form GR-116) issued by 
or under the supervision of the Grain Division, AMS, which shows that 
the bagged feed grain was checkloaded.
    (D) Upland cotton:
    (1) Two copies of the supplier's invoice, which shall show the 
contracted quality described in terms of the Official Cotton Standards 
of the United States, unless the sale is made against private types. If 
the sale is against private type, show private-type name.
    (2) Signed original of Form CCC-329, Supplier's Certificate:
    (a) From the supplier of the commodity, and
    (b) If any part of the ocean freight is financed on cost and freight 
or c.i.f. sales, also from supplier of ocean freight.
    (3)(a) Four copies of the ocean bill of lading, or
    (b) In lieu of the four copies of the bill of lading required by 
paragraph (3)(a) above there may be substituted four nonnegotiable 
copies (or photostats) of a port or custody bill of lading dated within 
the delivery period specified in the purchase authorization,

[[Page 467]]

with on-board endorsement dated not later than 20 days after the final 
delivery date specified in the purchase authorization.
    (4) Signed original of Form CCC-106-3, Advice of Vessel Approval for 
c. & f. or c.i.f. sales. .
    (5) A nonnegotiable copy of the insurance policy or certificate, if 
c.i.f.
    (6)  [Reserved]
    (7) Signed original of Form KC-467, showing the approved unit price 
and the percentage of financing which CCC will provide.
    (8) One copy (or photostat) of the weight and tare sheets certified 
by a U.S. warehouseman or one copy (or photostat) of a weight 
certificate and tare sheets issued at U.S. port of export by an 
authorized weigher. The certification of the U.S. warehouseman or 
authorized weigher must show markings, supplier's name, CCC Registration 
Number, Purchase Authorization Number, gross weight, type of bagging, 
number of ties, and weight of patches, if any, for each bale and the 
tare. The gross weight minus tare shall constitute net weight. The 
certification must also state that cotton in the shipment was weighed 
after the last sampling and not more than 30 days prior to the date of 
certification.
    (9) All documents shall be identified with the CCC Registration 
Number.
    (E) Extra long staple cotton:
    (1) Two copies of the supplier's invoice, which shall show the 
contracted quality described in terms of the Official Cotton Standards 
of the United States, unless the sale is made against private types. If 
the sale is against private type, show private type name.
    (2) Signed original of Form CCC-329, Supplier's Certificate:
    (a) From the supplier of the commodity, and
    (b) If any part of the ocean freight is financed on cost and freight 
or c.i.f. sales, also from supplier of ocean freight.
    (3)(a) Four copies of the ocean bill of lading, or
    (b) In lieu of the four copies of the bill of lading required in 
paragraph (3)(a) above, there may be substituted four nonnegotiable 
copies (or photostats) of a port or custody bill of lading dated within 
the delivery period specified in the purchase authorization, with on-
board endorsement dated not later than 20 days after the final delivery 
date specified in the purchase authorization.
    (4) Signed original of Form CCC-106-3, Advice of Vessel Approval for 
c. & f. or c.i.f. sales. .
    (5) A nonnegotiable copy of the insurance policy or certificate, if 
c.i.f.
    (6)  [Reserved]
    (7) Signed original of Form KC-467, showing the approved unit price 
and the percentage of financing which CCC will provide.
    (8) One copy (or photostat) of the weight and tare sheets certified 
by a U.S. warehouseman or one copy (or photostat) of a weight 
certificate and tare sheets issued at U.S. port of export by an 
authorized weigher. The certifications of the U.S. warehouseman or 
authorized weigher must show markings, supplier's name, CCC Registration 
Number, Purchase Authorization Number, gross weight, type of bagging, 
number of ties, and weight of patches, if any, for each bale and the 
tare. The gross weight minus tare shall constitute net weight. The 
certification must also state that cotton in the shipment was weighed 
after the last sampling and not more than 30 days prior to the date of 
certification.
    (9) All documents shall be identified with the CCC Registration 
Number.
    (F) Soybean oil and/or cottonseed oil:
    (1) Soybean oil and/or cottonseed oil, in drums, barrels, or bags:
    (a) Two copies of the supplier's invoice, which shall contain the 
following certification: ``The undersigned hereby certifies that this 
commodity has not been, and will not be, used as a basis for a claim of 
a refund, as drawback, pursuant to section 313 of the Tariff Act of 
1930, 19 U.S.C. 1313, of any duty, tax or fee imposed under Federal law 
on an imported commodity or product.''
    (b) Signed original of Form CCC-329, Supplier's Certificate:
    (i) From the supplier of the commodity, and
    (ii) If any part of ocean freight is financed on cost and freight or 
c.i.f. sales, also from the supplier of ocean freight.
    (c) Four copies of the ocean bill of lading.
    (d) Signed original of Form CCC-106-1, Advice of Vessel Approval for 
c. & f. or c.i.f. sales. .
    (e) A nonnegotiable copy of the insurance policy or certificate, if 
c.i.f.
    (f)  [Reserved]
    (g) One copy of Form CCC-359 or Form FAS-359, `Declaration of Sale,' 
signed for the General Sales Manager, by which the supplier was notified 
that the sale was approved for financing.
    (h) One copy of a Commodity Inspection Certificate (Form GR-133) 
issued by the Inspection Branch of the Grain Division, AMS, or
    One copy of a chemical analysis certificate issued by a commercial 
laboratory which shall bear the following certification:
    ``The undersigned hereby certifies that the chemical analysis 
certificate was issued as a result of the analysis of samples taken by 
independent surveyor(s), and that such chemical analysis was performed 
in accordance with the procedure prescribed in the Trading Rules of the 
National Soybean Processors Association, or in the Trading Rules of the 
National Cottonseed Products Association.''

[[Page 468]]

    The Commodity Inspection Certificate (GR-133) or the Chemical 
Analysis Certificate shall state that the oil met the analytical 
requirements of the specifications as provided in the applicable 
purchase authorization, and that markings are in conformance with the 
applicable purchase authorization and shall also show other markings 
appearing thereon.
    (i) One copy of weight certificate.
    (j) One copy of an independent surveyor's certificate stating that 
the barrels were new or the drums were new or reconditioned, or the bags 
were new or used and that the drums, barrels, or bags are suitable for 
export and that the drums, barrels, or bags comply with contract 
specifications.
    (2) Soybean oil and/or cottonseed oil in bulk:
    (a) Two copies of the supplier's invoice, which shall contain the 
following certification: ``The undersigned hereby certifies that this 
commodity has not been, and will not be, used as a basis for a claim of 
a refund, as drawback, pursuant to section 313 of the Tariff Act of 
1930, 19 U.S.C. 1313, of any duty, tax or fee imposed under Federal law 
on an imported commodity or product.''
    (b) Signed original of Form CCC-329 Supplier's Certificate:
    (i) From the supplier of the commodity and
    (ii) If any part of ocean freight is financed on cost and freight or 
c.i.f. sales, also from the supplier of ocean freight.
    (c) Four copies of the ocean bill of lading.
    (d) Signed original of Form CCC-106-1 Advice of Vessel Approval for 
c. & f. or c.i.f. sales. .
    (e) A nonnegotiable copy of the insurance policy or certificate, if 
c.i.f.
    (f)  [Reserved]
    (g) One copy of Form CCC-359 or Form FAS-359, `Declaration of Sale,' 
signed for the General Sales Manager, by which the supplier was notified 
that the sale was approved for financing.
    (h) One copy of a Commodity Inspection Certificate (Form GR-133) 
issued by the Inspection Branch, Grain Division, AMS, USDA, or
    One copy of a chemical analysis certificate issued by a commercial 
laboratory which shall bear the following certification:
    ``The undersigned hereby certifies that the chemical analysis 
certificate was issued as a result of the analysis of samples taken by 
independent surveyor(s), and that such chemical analysis was performed 
in accordance with the procedure prescribed in the Trading Rules of the 
National Soybean Processors Association, or in the Trading Rules of the 
National Cottonseed Products Association.''
    The Commodity Inspection Certificate (GR-133) or the Chemical 
Analysis Certificate shall state that the oil met the analytical 
requirements of the specifications as provided in the applicable 
purchase authorization.
    (i) One copy of a weight certificate or survey report issued by an 
independent weighmaster or by an independent surveyor.
    The weight certificate or survey report shall state that the ship's 
tank was examined and found suitable for receipt of the oil.
    (j) If the chemical analysis on bulk oil is performed by a 
commercial laboratory, one copy of a certificate of the sampler or 
inspector stating that the samples were drawn in accordance with 
American Oil Chemists Society Official Method C 1-47.
    (G) Tallow (inedible):
    (1) Tallow in drums.
    (a) Two copies of the supplier's invoice.
    (b) Signed original of Form CCC-329, Supplier's Certificate:
    (i) From the supplier of commodity, and
    (ii) If any part of ocean freight is financed on cost and freight or 
c.i.f. sales, also from the supplier of ocean freight.
    (c) Four copies of the ocean bill of lading.
    (d) Signed original of Form CCC-106-1, Advice of Vessel Approval for 
c. & f. or c.i.f. sales. .
    (e) A nonnegotiable copy of the insurance policy or certificate, if 
c.i.f.
    (f)  [Reserved]
    (g) One copy of Form CCC-359 or Form FAS-359, `Declaration of Sale,' 
signed for the General Sales Manager, by which the supplier was notified 
that the sale was approved for financing.
    (h) One copy of a weight certificate or survey report, issued by an 
independent surveyor or an independent weighmaster, or a copy of an 
Agricultural Products Certificate (Form LS-5) issued by the Meat Grading 
Branch, Livestock Division, AMS.
    (i) One copy of an Agricultural Products Certificate (Form LS-5) 
issued by the Meat Grading Branch, Livestock Division, AMS, or one copy 
of a laboratory report issued by a commercial laboratory. The 
Agricultural Products Certificate or the laboratory report, shall state 
that the tallow met contract specifications as approved by USDA.
    (j) One copy of an independent surveyor's certificate or one copy of 
an Agricultural Products Certificate (Form LS-5) issued by the Meat 
Grading Branch, Livestock Division, AMS, stating that the drums were 
either new or reconditioned and that the drums were in conformance with 
contract specifications, the provisions of section (G)(7)(b) of Appendix 
A were complied with and that the drum markings are in accordance with 
the contract specifications.
    (2) Tallow in bulk:
    (a) Two copies of the supplier's invoice.
    (b) Signed original of Form CCC-329, Supplier's Certificate:
    (i) From the supplier of commodity, and

[[Page 469]]

    (ii) If any part of ocean freight is financed on cost and freight or 
c.i.f. sales, also from the supplier of ocean freight.
    (c) Four copies of the ocean bill of lading.
    (d) Signed original of Form CCC-106-1, Advice of Vessel Approval for 
c. & f. or c.i.f. sales. .
    (e) A nonnegotiable copy of the insurance policy or certificate, if 
c.i.f.
    (f)  [Reserved]
    (g) One copy of Form CCC-359 or Form FAS-359, `Declaration of Sale,' 
signed for the General Sales Manager, by which the supplier was notified 
that the sale was approved for financing.
    (h) One copy of a weight certificate or survey report, issued by an 
independent surveyor or an independent weighmaster or a copy of an 
Agricultural Products Certificate (Form LS-5) issued by the Meat Grading 
Branch, Livestock Division, AMS.
    (i) One copy of an Agricultural Products Certificate (Form LS-5) 
issued by the Meat Grading Branch, Livestock Division, AMS, or one copy 
of a laboratory report issued by a commercial laboratory. The 
Agricultural Products Certificate or the laboratory report, shall state 
that the tallow met contract specifications as approved by USDA.
    (j) One copy of a Survey Report issued by an independent surveyors 
or an Agricultural Products Certificate (Form LS-5) issued by the Meat 
Grading Branch, Livestock Division, AMS, stating that the ship's tank 
was examined and found suitable for receipt of the tallow.
    (H) Rice (Milled and/or brown):
    (1) Rice in bags:
    (a) Two copies of the supplier's invoice which shall show the kind 
and size of bags and whether they are new or used.
    (b) Signed original of Form CCC-329, Supplier's Certificate:
    (i) From the supplier of the commodity and
    (ii) If any part of ocean freight is financed on cost and freight or 
c.i.f. sales, also from the supplier of ocean freight.
    (c) Four copies of the ocean bill of lading, which shall show the 
net weight of the rice loaded aboard the vessel, or shall show the 
number of bags and the gross weight of the rice loaded aboard the 
vessel, provided that the weight of the bags is either shown on the bill 
of lading or is evidenced by the following certification furnished by 
the supplier:
    ``The undersigned hereby certifies that the weight of the bags is 
______ pounds.''
    (d) Signed original of Form CCC-106-1, Advice of Vessel Approval for 
c. & f. or c.i.f. sales. .
    (e) A nonnegotiable copy of the insurance policy or certificate, if 
c.i.f.
    (f)  [Reserved]
    (g) One copy of Form CCC-359 or Form FAS-359, `Declaration of Sale,' 
signed for the General Sales Manager, by which the supplier was notified 
that the sale was approved for financing.
    (h) One copy of a Rice Inspection Certificate (lot inspection) 
issued by or under the supervision of the Grain Division, AMS, covering 
inspection at port of loading to vessel.
    (i) One copy of Commodity Examination Report (Form GR-116) issued by 
or under the supervision of the Grain Division, AMS, which shows that 
the rice was checkloaded.
    (2) Rice in bulk:
    (a) Two copies of the supplier's invoice.
    (b) Signed original of Form CCC-329, Supplier's Certificate:
    (i) From the supplier of the commodity, and
    (ii) If any part of ocean freight is financed on cost and freight or 
c.i.f. sales, also from the supplier of ocean freight.
    (c) Four copies of the ocean bill of lading.
    (d) Signed original of Form CCC-106-1, Advice of Vessel Approval for 
c. & f. or c.i.f. sales. .
    (e) A nonnegotiable copy of the insurance policy or certificate, if 
c.i.f.
    (f)  [Reserved]
    (g) One copy of Form CCC-359 or Form FAS-359, `Declaration of Sale,' 
signed for the General Sales Manager, by which the supplier was notified 
that the sale was approved for financing.
    (h) One copy of a Rice Inspection Certificate (lot inspection) 
issued by or under the supervision of the Grain Division, AMS, covering 
inspection at point of loading to ocean vessel.
    (i) One copy of a weight certificate issued at point of loading, or
    One copy of a letter signed by the Director, Pub. L. 480 Operations 
Division, FAS, USDA, approving the supplier's request to furnish weights 
taken at a point other than at point of loading to ocean vessel, and
    One copy of a weight certificate, and
    One copy of a Commodity Examination Report (Form GR-116) issued by 
or under the supervision of the Grain Division, AMS, which shows that 
the rice was transferred from the carrier to ocean vessel in the manner 
specified in the letter of approval from the Director, P.L. 480 
Operations Division, FAS, USDA, and contains a notification regarding 
any rice not so transferred.\1\
---------------------------------------------------------------------------

    \1\ The supplier's invoice must show the quantity represented by the 
weight certificate, a reduction identified as 0.5 percent (one-half of 1 
percent) and the reduced weight. The invoice shall show that the value 
was computed by using the reduced weight times contracted price.

[31 FR 16818, Dec. 31, 1966; 32 FR 3935, Mar. 10, 1967, as amended at 33 
FR 5139, Mar. 29, 1968; 35 FR 592, Jan. 16, 1970; 51 FR 47417, 47418, 
Dec. 31, 1986; 56 FR 3971, Feb. 1, 1991; 61 FR 17824, Apr. 23, 1996]

[[Page 470]]



PART 18--EQUAL EMPLOYMENT OPPORTUNITY IN THE STATE COOPERATIVE EXTENSION SERVICES--Table of Contents




Sec.
18.1  Definitions.
18.2  Purpose, applicability and coverage.
18.3  Development and adoption of equal employment opportunity programs.
18.4  Elements of program.
18.5  Formal complaint procedure.
18.6  [Reserved]
18.7  Reports.
18.8  Noncompliance.
18.9  Sanctions.

    Authority: 5 U.S.C. 301, and secs. 1-10, 38 Stat. 372, as amended; 7 
U.S.C. 341-349.

    Source: 33 FR 12173, Aug. 29, 1968, unless otherwise noted.



Sec. 18.1   Definitions.

    For the purpose of this part:
    (a) Secretary means the Secretary of Agriculture of the United 
States or his designee.
    (b) Cooperative Extension Service means the Cooperative Extension 
Service of each Land-Grant University.
    (c) President means the President or chief executive of each Land-
Grant University or his designee.
    (d) Discrimination includes discrimination on the basis of race, 
color, national origin, sex, or religion.
    (e) Employment includes hiring, assignment, transfer, promotion, 
compensation, discipline, and discharge and all other conditions, terms 
and privileges of employment.
    (f) Program means a comprehensive Equal Employment Opportunity plan 
submitted by a President in satisfaction of the requirements of 
Sec. 18.3.



Sec. 18.2   Purpose, applicability and coverage.

    (a) Purpose. This part provides a cooperative procedure involving 
the President and Secretary to assure that the Cooperative Extension 
Service provides equal opportunity in employment to each individual 
without regard to race, color, national origin, sex, or religion.
    (b) Applicability. The regulations in this part apply to every Land-
Grant University operating a Cooperative Extension Service.
    (c) Coverage. This part applies to all positions in all units of the 
Cooperative Extension Service but does not apply to employees provided 
by county and other political subdivisions in support of Cooperative 
Extension Service programs.

[33 FR 12173, Aug. 29, 1968, as amended at 38 FR 14154, May 8, 1973]



Sec. 18.3   Development and adoption of equal employment opportunity programs.

    (a) Submission. Within 90 days after the effective date of this 
part, the President shall furnish to the Secretary a positive continuing 
program to assure that employment is provided without discrimination.
    (b) Development. The President and the Secretary may consult with 
each other at any time regarding the development and evaluation of the 
program in order to better effectuate the purpose of this part. The 
program may be a part of a general program establishing employment 
procedures for employees of the university and may cover other rights 
and privileges of employees.
    (c) Concurrence. The Secretary may concur with the program proposed 
by the President. If the Secretary does not concur with the proposed 
program, he shall inform the President and make suggestions for 
improvement. The President will have 30 days thereafter to furnish a 
satisfactory proposal.
    (d) Amendment. After concurrence has been obtained on the program, 
the President may make recommendations to amend the program to improve 
its effectiveness and furnish them to the Secretary for concurrence. If 
the Secretary, at any time finds that a program, as implemented, does 
not achieve the purposes described in Sec. 18.2, he shall confer with 
the President concerning needed improvements and changes. The President 
will furnish a satisfactory amendment to the Secretary within 30 days 
for concurrence.
    (e) Effective date. The program or amendments to it shall be made 
effective by the President not later than 30 days from the date of 
concurrence.



Sec. 18.4   Elements of program.

    A satisfactory program shall include:

[[Page 471]]

    (a) A statement of policy prohibiting discrimination in employment;
    (b) An administrative procedure enforcing that policy;
    (c) A positive affirmative action plan designed to assure equal 
opportunity in employment;
    (d) A procedure for identifying and eliminating employment practices 
tending to create or continue discrimination in employment;
    (e) A procedure for evaluating the success of the program;
    (f) Adequate provision for publicizing the program including 
dissemination of information to all those covered by these regulations;
    (g) A procedure for prompt processing of complaints assuring no less 
than minimum rights prescribed in Sec. 18.5;
    (h) Adequate provisions for the protection of complainants, 
employees, witnesses, and representatives from interference, harassment, 
intimidation and reprisal;
    (i) A procedure for the informal resolution of complaints; and,
    (j) A procedure for recording receipt and disposition of all 
complaints. A report of the receipt and a report of the disposition of 
all formal complaints will be sent promptly to the Secretary.



Sec. 18.5   Formal complaint procedure.

    A procedure shall be provided for the filing of a formal written 
complaint if a complainant is not satisfied with the result of informal 
procedure or if the complainant does not desire to follow the informal 
procedure. A complaint procedure shall contain the following minimum 
provisions for the processing of formal complaints.
    (a) Elements of the formal complaint. The formal complaint shall be 
in writing and state the name and address of the complainant; the basis 
of the claim; and indicate whether the alleged discrimination was based 
on race, color, national origin, sex, or religion.
    (b) Time limits for processing. The procedure will include time 
limits for the orderly processing of complaints.
    (c) Who may file. A complaint may be filed by an employee, a former 
employee, or an applicant for employment who believes that 
discrimination in employment has been practiced against him or that an 
employment practice in the Cooperative Extension Service has or will 
result in discrimination in employment against him. An employee, a 
former employee, or an applicant for employment, or an organization may 
file a complaint of general discriminatory practices: Provided, however, 
That upon request of the President, the complainant shall furnish to him 
names of individuals who are adversely affected by those practices.
    (d) Right of representation. A complainant may designate in writing, 
an individual or an organization to represent him in the processing of 
his complaint, and is entitled to the advice of counsel at his expense 
at all stages of the proceeding. If the representative designated by the 
complainant is an employee of the U.S. Department of Agriculture, or of 
a Cooperative Extension Service, such employee, as well as an employee-
complainant, shall have a reasonable amount of official time with pay, 
if he is in a pay status, for the purpose of appearing at any hearing on 
the complaint or conciliation effort. The rights and privileges set 
forth in this paragraph shall also be available to any person whose 
alleged conduct is the cause of the complaint.
    (e) Where filed. The procedure shall clearly state the persons, and 
their locations, with whom complaints may be filed. It shall also state 
that complaints may be filed with the Secretary. Complaints filed with 
the Secretary shall be promptly forwarded to the President or his 
designee for processing.
    (f) When filed. A complaint shall be submitted within 90 days of the 
conduct giving rise to the complaint. The President may extend the 
prescribed time limit for good cause shown by the complainant.
    (g) Hearing. A complainant or the President may request a hearing 
which shall be transcribed or recorded. The hearing shall be conducted 
promptly during regular working hours in the county where the alleged 
discrimination occurred or at a time and place agreed to by the 
President and the complainant. The President, the complainant and any 
person whose alleged conduct is the cause of the complaint shall have 
the right to call and cross-examine witnesses under oath. The

[[Page 472]]

hearing shall be provided by the President, and shall be conducted by an 
impartial board or hearing officer who shall promptly submit a proposed 
decision including findings of fact, conclusions, and recommendations 
for action to the President.
    (h) Decision by the President. The President shall review the entire 
file on the complaint, including the record of the hearing if a hearing 
was held, and shall promptly:
    (1) Remand to the hearing board or officer for further action; or
    (2) Make a decision on the complaint; or
    (3) Otherwise dispose of the complaint.

The President shall notify the complainant of his decision or 
disposition.

[33 FR 12173, Aug. 29, 1968, as amended at 38 FR 14154, May 30, 1973]
Sec. 18.6  [Reserved]



Sec. 18.7   Reports.

    Within 6 months of the program going into effect and thereafter at 
least annually, the President shall submit a summary report to the 
Secretary on implementation and operation of the program. The Secretary 
may request additional reports as he deems advisable.



Sec. 18.8   Noncompliance.

    A university conducting a Cooperative Extension Service will be in 
violation of this part:
    (a) If the President fails to file a program in which the Secretary 
concurs under Sec. 18.3, or fails to file an appropriate amendment in 
accordance with Sec. 18.3(d);
    (b) If after concurrence in the President's program the Secretary 
finds that a university has failed to administer such program according 
to its terms;
    (c) If the Secretary finds that any officer of the university has 
intimidated, coerced, or improperly pressured a complainant, employee, 
representative, or witness exercising the rights given him by this part 
or any program adopted pursuant thereto, and that corrective action has 
not been taken.

[33 FR 12173, Aug. 29, 1968, as amended at 38 FR 14154, May 30, 1973]



Sec. 18.9   Sanctions.

    (a) When the Secretary finds that any noncompliance with this part 
has occurred, he may initiate action to refuse to authorize payment of 
funds for the Cooperative Extension Service, or take other appropriate 
action provided by law.
    (b) The remedies available to the Secretary under this part, and 
remedies made available to any person under a program adopted pursuant 
to this part do not exclude any others which may be available under law.



PART 19 [RESERVED]






PART 20--EXPORT SALES REPORTING REQUIREMENTS--Table of Contents




Sec.
20.1  General.
20.2  Administration.
20.3  Delegation of authority.
20.4  Definitions.
20.5  Announcements.
20.6  Submission of reports.
20.7  Confidentiality of reports.
20.8  Failure to report.
20.9  Records.
20.10  Place of submission of reports.
20.11  Additional reports and information.
20.12  OMB control number assigned pursuant to Paperwork Reduction Act.

Appendix I to Part 20--Commodities Subject to Reports, Units of Measure 
          to Be Used in Reporting, and Beginning and Ending Dates of 
          Marketing Years

    Authority: 7 U.S.C. 5712.

    Source: Rev. 2, 40 FR 23839, June 3, 1975, unless otherwise noted.



Sec. 20.1  General.

    The regulations of this part 20 are issued under section 404 of the 
Agricultural Trade Act of 1978, as amended, to implement the export 
sales reporting requirements of section 602 of the Agricultural Trade 
Act of 1978, as amended.

[56 FR 32951, July 18, 1991]

[[Page 473]]



Sec. 20.2  Administration.

    The regulations of this part will be administered by the Foreign 
Agricultural Service (FAS) under the general supervision of the 
Administrator, FAS. Information pertaining to these regulations may be 
obtained from the office specified in Sec. 20.10.

[Amdt. 3, 45 FR 8562, Feb. 8, 1980]



Sec. 20.3  Delegation of authority.

    Authority has been delegated to the Administrator to promulgate 
amendments and revisions to the regulations in this part.

[Amdt. 3, 45 FR 8562, Feb. 8, 1980]



Sec. 20.4   Definitions.

    As used in these regulations and in all instructions, forms, and 
documents pertaining hereto, the words and phrases defined in this 
section shall have the meaning assigned to them as follows:
    (a) Administrator.The Administrator, Foreign Agricultural Service, 
U.S. Department of Agriculture.
    (b) Buy-back contract. A transaction under which a reporting 
exporter having sold a commodity for export to a foreign buyer 
liquidates the export sale contract by making an offsetting purchase of 
the same kind of commodity from the same foreign buyer.
    (c) Commodity. Wheat and wheat flour, feed grains, oilseeds, cotton, 
and products thereof and any other agricultural commodity the Secretary 
may designate. ``Commodity'' shall also mean a commodity having 
identifying characteristics as described in any announcement issued 
pursuant to Sec. 20.5 such as class(es) of wheat, or staple length(s) of 
cotton. Mixed wheat shall be considered to be the predominant wheat 
class of the blend. This definition excludes commodities to be used for 
seed which have been treated in such a manner that their use is limited 
to seed for planting purposes or on which a certificate has been issued 
by a recognized seed testing laboratory setting forth variety, 
germination and purity.
    (d) Country of destination. (1) Any country outside the United 
States or (2) any territory or possession of the United States. Country 
of destination shall be the ultimate destination.
    (e) Export. A shipment of a commodity from the United States 
destined to a country specified in paragraph (d) of this section. The 
commodity shall be deemed to have been exported on the date of the 
applicable export carrier onboard bill of lading or the date the 
commodity is received for shipment, as specified on the bill of lading, 
in the case of a commodity received for shipment in a lash barge or 
containerized van if a through on-board bill of lading is issued for 
shipment to a country specified in paragraph (d) of this section.
    (f) Export carrier. The vessel on which a commodity is exported from 
the United States to a country specified in paragraph (d) of this 
section, or if export is by railcar, truck, or airplane, ``export 
carrier'' means such railcar, truck, or airplane.
    (g) Exports for exporter's own account. A transaction involving 
shipments made by the reporting exporter which are unsold at the time of 
export, shipments on consignment to selling agents of the reporting 
exporter for subsequent sale for the account of the reporting exporter, 
shipments by the reporting exporter that have not been allocated to any 
outstanding export sale, and shipments from the United States to Canada 
in bond for subsequent shipment to a third country.
    (h) Export sale. A transaction entered into between a reporting 
exporter and a foreign buyer. The transaction must be represented by a 
written document evidencing that (1) the exporter agrees to export the 
commodity, (2) the foreign buyer agrees to receive the commodity, (3) a 
fixed price or an agreed upon mechanism by which such a price can be 
determined is established, and (4) payment will be made to or for the 
account of the reporting exporter by or on the behalf of the foreign 
buyer for delivery of the commodity. The quantity of ``outstanding 
export sale'' means the quantity not yet exported under an export sale. 
The terms of delivery specified in the written agreement, such as FAS 
vessel, FOB vessel, C&F, CIF, etc., do not determine whether a 
transaction is an export sale which must be reported. A transaction

[[Page 474]]

which otherwise meets this definition and is subject to the posting of 
an exporter performance bond or letter of credit from the foreign buyer 
is included in this definition and such a transaction shall be reported 
under these regulations. However, a transaction which becomes operative 
only upon the imposition of export controls is excluded from this 
definition of ``export sale'' and such a transaction shall not be 
reported under these regulations.
    (i) Foreign buyer and foreign seller. A person whose place of doing 
business with respect to the transaction is outside the United States. 
Foreign buyer or foreign seller includes a person who maintains a place 
of doing business outside the United States even though the transaction 
is concluded in the United States by his agent who has a place of 
business in the United States or by his employee who does not maintain a 
place of doing business in the United States. (If such employee 
maintains a place of doing business in the United States with respect to 
the transaction, the resulting contract is construed to be a domestic 
sale.) Notwithstanding the foregoing, all foreign governments, agencies 
and instrumentalities are considered foreign buyers or foreign sellers 
even though transactions are concluded by their employees in the United 
States or they maintain a place of business with respect to the 
transaction in the United States.
    (j) Marketing year. The reporting period specified for a commodity 
in appendix 1.
    (k) Optional origin contracts. A transaction involving an export 
sale contract between a reporting exporter and a foreign buyer under 
which the reporting exporter has the option of exporting the commodity 
from the United States or from one or more other exporting countries or 
an export sale contract under which no origin is specified.
    (l) Person. An individual, partnership, corporation, association or 
other legal entity.
    (m) Purchases from foreign sellers. A transaction involving the 
purchase of a commodity from a seller whose place of business with 
respect to the transaction is outside the United States.
    (n) Quantity. The actual contract quantity (exclusive of any upward 
or downward tolerance) specified in the agreement between the reporting 
exporter and foreign buyer or seller.
    (o) Reporting exporter. A person who enters into a transaction 
referred to in this section whose place of doing business with respect 
to such transaction is in the United States. A reporting exporter shall 
include any person who sells a commodity to a foreign buyer irrespective 
of whether or not such person may appear as the shipper on the export 
documentation or whether or not such person is required to file a 
Shipper's Export Declaration. A reporting exporter would not normally 
include agents of either the reporting exporter or foreign buyer, 
brokers, or freight forwarders unless such agents, brokers or freight 
forwarders are acting in the capacity of a principal. (See examples 
Sec. 20.6(c).)
    (p) United States. All of the 50 States, the District of Columbia 
and Puerto Rico.

[Rev. 2, 40 FR 23839, June 3, 1975, as amended by Amdt. 1, 41 FR 19950, 
May 14, 1976; Amdt. 3, 45 FR 8562, Feb. 8, 1980; Amdt. 4, 45 FR 24104, 
Apr. 9, 1980]



Sec. 20.5   Announcements.

    Commodities for which reports are required under these regulations 
are set forth in appendix 1 to this part. Any change therein will be 
made by publication in the Federal Register of an amendment thereto, 
and, in addition, announcement of such change will be made through the 
press and ticker service. The unit of measure to be used in reporting 
the commodity, the beginning and ending dates of the marketing year for 
each commodity, and any other information deemed necessary to be 
included in the report will be specified in appendix 1 to this part and 
amendments thereto and in the announcements through press and ticker 
service.



Sec. 20.6  Submission of reports.

    (a) Weekly reports. For each commodity for which reports are 
required under these regulations, the reporting exporter shall file 
weekly with the office specified in Sec. 20.10 and not later than the 
time specified in paragraph

[[Page 475]]

(k) of this section, a report by marketing year on the applicable forms 
contained in appendix 2 (FAS-97, ``Report of Optional Origin Sales,'' 
FAS-98, ``Report of Export Sales and Exports,'' and on FAS-100, ``Report 
of Exports for Exporter's Own Account''), setting forth the following 
information and that required by such forms. Information for each 
applicable item on the respective form shall be reported. If the 
reporting exporter determines that the report forms cannot be received 
in the office specified in Sec. 20.10 by the time specified in paragraph 
(k) of this section, the exporter shall make an initial report by 
transmitting the information contained in the report forms by the use of 
telephone or electronic transmission. The required form must be 
subsequently submitted in accordance with Sec. 20.6(k)(2).
    (1) United States origin sales only. (i) Total quantity of 
outstanding export sales from the previous report by country of 
destination.
    (ii) Quantity of export sales made during the week expressed in the 
specified unit of measure (do not include any tolerance). Include the 
quantity of any optional original export sale for which an option was 
exercised during the week to export the commodity from the United 
States.
    (iii) Quantity of any purchases of the same kind of commodity made 
from foreign sellers during the week.
    (iv) Quantity of export sales cancelled and quantity of buyback 
contracts made during the week.
    (v) Changes in destination during the week for export sales 
previously reported.
    (vi) Changes in the marketing year during the week for export sales 
previously reported.
    (vii) Exports made against export sales during the week.
    (viii) Total outstanding balance of export sales at the close of 
business for the current report.
    (2) Optional origin sales (United States and other countries). (i) 
Total quantity of outstanding export sales from the previous report by 
country of destination.
    (ii) Quantity of export sales made during the week expressed in the 
specified unit of measure (do not include any tolerance) by country of 
destination.
    (iii) Quantity of export sales for which an option was exercised 
during the week which would determine the origin of the commodity to be 
exported with the origin indicated as the United States or other than 
the United States.
    (iv) Quantity of optional export sales cancelled and the quantity of 
optional buy-back contracts made during the week.
    (v) Changes in destination during the week for sales previously 
reported.
    (vi) Changes in the marketing year during the week for sales 
previously reported.
    (vii) Total outstanding balance of optional export sales for which 
an option has not been exercised at the time of compiling the report.
    (3) Exports for exporter's own account. (i) Total outstanding 
balance of exports for exporter's own account that has been shipped from 
the United States as shown on the previous report by country where 
located or, if in transit, by country of intermediate destination.
    (ii) Quantity of exports for exporter's own account exported during 
the week.
    (iii) Quantity of previously reported exports for exporter's own 
account that was applied to outstanding or new export sales during the 
week.
    (iv) Quantity of previously reported exports for exporter's own 
account sold to other U.S. exporters during the week.
    (v) Changes in destination during the week for exports previously 
reported.
    (vi) The total outstanding balance of exports for exporter's own 
account at the close of business for the current report.
    (b) Monthly reports. The information described in paragraph (a) of 
this section shall be reported monthly when specified by an announcement 
issued pursuant to Sec. 20.5. The forms specified in paragraph (a) of 
this section shall be utilized to furnish the information required to be 
reported monthly and such information shall be filed in the manner and 
at the time required by Sec. 20.6(k).
    (c) Exporters who are required to report. The reporting exporter has 
the sole responsibility of reporting any and

[[Page 476]]

all information required by these regulations. The following are 
examples of who shall be considered the reporting exporter for the 
purpose of these regulations. (Firm A in each example is a firm whose 
place of doing business with respect to the transaction is in the United 
States, and the commodity to be delivered under the purchase contract is 
subject to these regulations. See Sec. 20.4(i) for definition of a 
foreign buyer and foreign seller.)
    (1) Firm A makes an export sale to Firm B whose place of doing 
business with respect to the transaction is also in the United States. 
Firm B has made or will make an export sale to a foreign buyer. In this 
case Firm A cannot report the sale to Firm B since Firm B's place of 
doing business with respect to the transaction is located in the United 
States. In this example, Firm B is required to report the sale to the 
foreign buyer.
    (2) Firm A makes an export sale to a foreign buyer through the 
foreign buyer's agent and the agent's place of doing business with 
respect to the transaction is in the United States. In this example Firm 
A is required to report the export sale since the resulting contract is 
between Firm A and the foreign buyer.
    (3) Firm A consigns an export to his agent (other than an employee 
of Firm A). When the agent makes a sale to a foreign buyer, Firm A is 
required to report the sale. If the agent makes the sale to a firm whose 
place of doing business with respect to the transaction is in the United 
States, Firm A will not report the sale.
    (4) Firm A makes a purchase from a foreign seller. In this example, 
Firm A is required to report the purchase.
    (5) Firm A makes a purchase from an agent of a foreign seller and 
the agent's place of doing business with respect to the transaction is 
in the United States. In this example, Firm A is required to report the 
purchase. The agent is not a principal party in interest in the contract 
and cannot report the sale to Firm A. The foreign seller is not a 
reporting exporter and is not required to make a report of the sale.
    (6) Firm A, the agent of the foreign buyer, whose place of doing 
business with respect to the transaction is in the United States, 
purchases commodities domestically at interior warehouses and arranges 
for exportation to its principal, the foreign buyer. In this example, 
Firm A is required to report the sale and export.
    (7) If a reporting exporter has a transaction not described in 
paragraphs (1) through (6) of this paragraph (c) and is in doubt whether 
a transaction should be reported, the exporter should request a decision 
from the office specified in Sec. 20.10.
    (d) Contract terms. Reports of contract terms shall be filed when 
requested in accordance with Sec. 20.11. The report showing contract 
terms shall be filed on FAS-99, ``Contract Terms Supporting Export Sales 
and Foreign Purchases,'' and shall include the following:
    (1) Reporting exporter's contract number.
    (2) Date of export sale or purchase.
    (3) Name of foreign buyer or foreign seller.
    (4) Delivery period specified in the export sale or purchase.
    (5) Delivery terms specified in the export sale or purchase (F.O.B., 
C. & F., etc.).
    (6) Actual quantity of the export sale or purchase.
    (7) Quantity not exported against the sale or foreign purchase (do 
not include any tolerance).
    (8) Country of destination.
    (9) On purchases from foreign sellers, show separately from export 
sales all items of this paragraph (d).
    (e) Reporting of destination. The reporting exporters shall report 
the country of destination specified in the export sale contract or 
otherwise declared in writing by the foreign buyer. (Where a government, 
or agency of such government, is the sole importer of the commodity in a 
country, the exporter shall report that country as the country of 
destination only if the exporter or foreign buyer has made a direct sale 
to that foreign government or agency.) If the country of destination is 
not so specified or declared, the exporter shall report the destination 
as ``unknown.'' If by the time of exportation the exporter has not so 
ascertained the country of destination, the name of the country reported 
to

[[Page 477]]

the Bureau of Customs of the Shipper's Export Declaration for such 
export shipment should be reported, even though it may be an 
intermediate destination. The reporting exporter is not expected to 
report destination changes made after reporting the export on FAS-98, 
``Report of Export Sales and Exports.''
    (f) Optional class or kind of commodity. If the export sale provides 
for an option as to the class or kind of commodity to be delivered under 
the export sale, the reporting exporter should report the particular 
class or kind of commodity expected to be exported.
    (g) Range in contract quantity. If the export sale provides for a 
range in quantity (e.g. 10,000 metric tons to 12,000 metric tons with or 
without a loading tolerance) with the reporting exporter or buyer having 
the option to declare a firm quantity at a later date, the reporting 
exporter shall report the maximum export sale quantity (exclusive of any 
loading tolerance). If an option is exercised for a lesser quantity at a 
later date, the reporting exporter shall report the reduction as an 
amendment to an export sale previously reported.
    (h) Transfer of unexported balances from one marketing year to the 
next marketing year. If exports against an export sale are not complete 
by the end of the marketing year in which the commodity is being 
reported for export, the reporting exporter shall transfer the quantity 
not exported against the export sale to the next marketing year on the 
first report submitted after the beginning of the new marketing year.
    (i) Errors on previous reports. Whenever an exporter discovers an 
error or is advised by the office specified in Sec. 20.10 of an error on 
a prior report, the error shall be corrected in the current weekly 
report to reflect the proper outstanding export sales and exports. The 
exporter shall also furnish a complete written explanation of such 
reporting error.
    (j) When reports are required. (1) A reporting exporter shall submit 
reports for those commodities for which there are new export sales, 
outstanding export sales, exports for exporter's own account for which 
an offsetting export sale has not been made and reported, or purchases 
from foreign sellers.
    (2) A reporting exporter may discontinue reporting for a commodity 
only when actual exports and other required reporting of changes have 
reduced to zero all export sales, exports for exporter's own account and 
purchases from foreign sellers. The reporting exporter shall report a 
zero balance prior to discontinuing reporting for the commodity 
involved.
    (3) If a reporting exporter discontinues making reports because a 
zero balance has been reached for a particular commodity, the exporter 
shall be responsible to commence reporting again once a new export sale, 
a new export for exporter's own account, or a new purchase from a 
foreign seller for that commodity is made.
    (k) Manner and time of reporting--(1) Manner. An original of all 
report forms must be filed with the office specified in Sec. 20.10. Each 
report form shall contain the full business name, address and telephone 
number of the reporting exporter and the name and original signature of 
the person submitting the report form on behalf of the reporting 
exporter. Computer generated printouts may be used in lieu of standard 
reporting forms when approved by the office specified in Sec. 20.10.
    (2) Time of filing reports. Information required to be reported 
weekly must be received in the office specified in Sec. 20.10 no later 
than 5:00 p.m., Eastern time, on each Monday, or such other time as may 
be approved in advance by that office. Such weekly report must set forth 
the required information as to export sales transactions made during the 
seven day period ending the preceding Thursday, midnight. If Friday or 
Monday is a national holiday, the due date shall be Tuesday. If 
information is transmitted by other than use of forms specified in 
Sec. 20.6(a) (such as by use of telephone or electronic transmission) 
the required forms containing such information shall be transmitted by 
first class mail the next business day. It is the responsibility of the 
reporting exporter to arrange the most efficient and expeditious manner 
for the office specified in Sec. 20.10 to receive the reported 
information. Information required to be reported monthly must be

[[Page 478]]

received in the office specified in Sec. 20.10 no later than 5:00 p.m., 
Eastern time, the fourth business day following the end of the reporting 
month, or such other time as may be approved in advance by that office, 
setting forth the required information as to export sales transactions 
made during the reporting month ending midnight the last day of such 
month.

[Rev. 2, 40 FR 23839, June 3, 1975, as amended by Amdt. 3, 45 FR 8562, 
Feb. 8, 1980; Amdt. 4, 45 FR 24104, Apr. 9, 1980; 45 FR 24439, Apr. 10, 
1980; Amdt. 5, 45 FR 24439, Apr. 10, 1980; 47 FR 746, Jan. 7, 1982]



Sec. 20.7  Confidentiality of reports.

    A reporting exporter's individual reports shall remain confidential 
and subject to examination only by designatees of the Administrator. 
Information from reports filed by exporters on a weekly basis will be 
compiled and published in compilation form each week following the week 
of reporting. Information from daily reports filed by exporters will be 
compiled and made available to the public daily. Information from 
monthly reports filed by exporters will be compiled and published in 
compilation form in the weekly report no later than the week following 
the time of filing specified in Sec. 20.6(k).

[43 FR 5497, Feb. 9, 1978, as amended by Amdt. 3, 45 FR 8562, Feb. 8, 
1980; Amdt. 5, 45 FR 24440, Apr. 10, 1980]



Sec. 20.8   Failure to report.

    Any person who knowingly fails to report export sales pursuant to 
the requirements of these regulations shall be fined not more than 
$25,000 or imprisoned not more than one year, or both.



Sec. 20.9   Records.

    Each reporting exporter shall establish and maintain accurate 
records as to all export sales of commodities subject to these 
regulations. Such records shall include, but shall not be limited to, 
export sales contracts or other agreements with the foreign buyer or 
foreign seller pursuant to which any export has or will be made; bills 
of lading or delivery documents evidencing all such exports and 
inspection and weight certificates relating thereto. Such records shall 
be available during regular business hours for inspection and audit by 
authorized employees of the United States Department of Agriculture and 
shall be preserved for three years after the date of export to which 
they relate.



Sec. 20.10  Place of submission of reports.

    Weekly reports and information required to be submitted in 
connection therewith shall be addressed to or delivered to the following 
office:

    Foreign Agricultural Service, Export Sales Reporting Division, U.S. 
Department of Agriculture, Washington, DC 20250.

[Amdt. 4, 45 FR 8562, Feb. 8, 1980]



Sec. 20.11   Additional reports and information.

    (a) Daily reports. The reporting exporter shall report daily to the 
Administrator information with respect to sales of agricultural 
commodities as requested. Daily reports shall be made by telephone no 
later than 3 p.m., E.s.t., on the next business day following the 
calendar day of the sale.
    (b) Additional information. The reporting exporter shall furnish 
such other additional reports and information, including price data, as 
may be requested with respect to export sales of agricultural 
commodities.

[Rev. 2, 40 FR 23839, June 3, 1975, as amended by Amdt. 3, 45 FR 8562, 
Feb. 8, 1980]



Sec. 20.12  OMB control number assigned pursuant to Paperwork Reduction Act.

    The information collection requirements contained in these 
regulations have been approved by the Office of Management and Budget 
(OMB) under the provisions of 44 U.S.C. chapter 35 and have been 
assigned OMB control number 0551-0007.

[51 FR 30203, Aug. 25, 1986]

[[Page 479]]



 Appendix I to Part 20--Commodities Subject to Reports, Units of Measure To Be Used in Reporting, and Beginning 
                                       and Ending Dates of Marketing Years                                      
----------------------------------------------------------------------------------------------------------------
                                         Unit of measure to be    Beginning of marketing                        
       Commodity to be reported            used in reporting               year            End of marketing year
----------------------------------------------------------------------------------------------------------------
Wheat, hard red winter................  Metric tons............  June 1.................  May 31.               
Wheat, soft red winter................      do.................    do...................    Do.                 
Wheat, hard red spring................      do.................    do...................    Do.                 
Wheat, white..........................      do.................    do...................    Do.                 
Wheat, durum..........................      do.................    do...................    Do.                 
Wheat products, all wheat flours            do.................    do...................    Do.                 
 (including clears), bulgur, semolina,                                                                          
 farina, and rolled, cracked, and                                                                               
 crushed wheat.                                                                                                 
Barley, unmilled......................      do.................    do...................    Do.                 
Corn, unmilled........................      do.................  Sept. 1................  Aug. 31.              
Rye, unmilled.........................      do.................  June 1.................  May 31.               
Oats, unmilled........................      do.................    do...................    Do.                 
Grain sorghums, unmilled..............      do.................  Sept. 1................  Aug. 31.              
Soybeans..............................      do.................  Sept. 1................  Aug. 31.              
Soybean oil cake and meal.............      do.................  Oct. 1.................  Sept. 30.             
Soybean oil, including, crude               do.................    do...................    Do.                 
 (including degummed), once refined,                                                                            
 soybean salad oil (including refined                                                                           
 and further processed by bleaching,                                                                            
 deodorizing, or winterizing),                                                                                  
 hydrogenated.                                                                                                  
Flaxseed..............................      do.................  June 1.................  May 31.               
Linseed oil, including raw, boiled....      do.................    do...................    Do.                 
Cottonseed............................      do.................  Aug. 1.................  July 31.              
Cottonseed oil cake and meal..........      do.................  Oct. 1.................  Sept. 30.             
Cottonseed oil, including: crude, once      do.................    do...................    Do.                 
 refined, cottonseed salad oil                                                                                  
 (refined and further processed by                                                                              
 bleaching, deodorizing, or                                                                                     
 winterizing), hydrogenated.                                                                                    
Cotton, American pima, raw, extra long  Running bales..........  Aug. 1.................  July 31.              
 staple.                                                                                                        
Cotton, upland, raw, staple length 1\1/     do.................    do...................    Do.                 
 16\ in and over.                                                                                               
Cotton, upland, raw, staple length 1        do.................    do...................    Do.                 
 in up to 1\1/16\ in.                                                                                           
Cotton, upland, raw, staple length          do.................    do...................    Do.                 
 under 1 in.                                                                                                    
Rice, long grain, brown (including      Metric tons............    do...................    Do.                 
 parboiled).                                                                                                    
Rice, medium, short and other classes,      do.................    do...................    Do.                 
 brown (including parboiled).                                                                                   
Rice, long grain, milled (including         do.................    do...................    Do.                 
 parboiled).                                                                                                    
Rice, medium, short and other classes,      do.................    do...................    Do.                 
 milled (including parboiled).                                                                                  
Cattle hides and skins--Whole cattle    Pieces.................  Jan. 1.................  Dec. 31.              
 hides, excluding wet blues.                                                                                    
Cattle hides and skins--Whole calf      Pieces.................  Jan. 1.................  Dec. 31.              
 skins, excluding wet blues.                                                                                    
Cattle hides and skins--Whole kip       Pieces.................  Jan. 1.................  Dec. 31.              
 skins, excluding wet blues.                                                                                    
Cattle hides and skins--Cattle, calf    Number.................  Jan. 1.................  Dec. 31.              
 and kip, excluding wet blues, cut                                                                              
 into croupons, crops, dossets, sides,                                                                          
 butts or butt bends (hide equivalent).                                                                         
Cattle hides and skins--Cattle, calf    Pounds.................  Jan. 1.................  Dec. 31.              
 and kip, excluding wet blues, in cuts                                                                          
 not otherwise specified.                                                                                       
Cattle, calf and kip, wet blues--       Number.................  Jan. 1.................  Dec. 31.              
 unsplit (whole or sided) hide                                                                                  
 equivalent.                                                                                                    
Cattle, calf and kip, wet blues--grain  Number.................  Jan. 1.................  Dec. 31.              
 splits (whole or sided) hide                                                                                   
 equivalent.                                                                                                    
Cattle, calf and kip, wet blues--       Pounds.................  Jan. 1.................  Dec. 31.              
 splits, excluding grain splits.                                                                                
----------------------------------------------------------------------------------------------------------------

[Amdt. 1, 41 FR 19951, May 14, 1976, as amended by Amdt. 5, 45 FR 24440, 
Apr. 10, 1980; Amdt. 6, 45 FR 83192, Dec. 18, 1980; 46 FR 32228, June 
22, 1981; 48 FR 13955, Apr. 1, 1983; 51 FR 30203, Aug. 25, 1986]



PART 21--UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION FOR FEDERAL AND FEDERALLY ASSISTED PROGRAMS--Table of Contents




    Authority: Sec. 231, Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970, Pub. L. 91-646, 84 Stat. 1894 (42 
U.S.C. 4601) as amended by the Surface Transportation and Uniform 
Relocation Assistance Act of 1987, title IV of Pub. L. 100-17, 101 Stat. 
246-256 (42 U.S.C. 4601 note).



Sec. 21.1  Uniform relocation assistance and real property acquisition.

    Regulations and procedures for complying with the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 (Pub. L. 
91-646, 84 Stat. 1894, 42 U.S.C. 4601) as amended by the Surface 
Transportation and Uniform Relocation Assistance Act of 1987

[[Page 480]]

(title IV of Pub. L. 100-17, 101 Stat. 246-256, 42 U.S.C 4601 note) are 
set forth in 49 CFR part 24.

[52 FR 48017, Dec. 17, 1987 and 54 FR 8912, 8913, Mar. 2, 1989]



PART 22--RURAL DEVELOPMENT COORDINATION--Table of Contents




                           Subpart A--General

Sec.
22.101  The Rural Development Act of 1972 (Pub. L. 92-419).
22.102  Summary of authorities.
22.103  Purpose.
22.104  General policy.

       Subpart B--Roles and Responsibilities of Federal Government

22.201  Coordination.
22.202  Federal unit responsibilities.
22.203  Major responsibilities under title VI, Sec. 603.
22.204  Rural development committees.
22.205  Allocation of loan and grant funds.

       Subpart C--Roles and Responsibilities of State Governments

22.301  Selection and designation.
22.302  Area eligibility.
22.303  Cooperation with Federal Regional Councils.
22.304  Multiyear planning and programming.
22.305  Conformance with OMB Circular No. A-95.
22.306  Financing rural development planning.
22.307  Program evaluation.
22.308  Project approval.
22.309  Seeking Federal review.

    Authority: Sec. 301, 80 Stat. 379, 5 U.S.C. 301 and delegations of 
authority by the Secretary of Agriculture, 38 FR 14944-14948, 7 CFR 
2.23, as amended by 38 FR 24633.

    Source: 38 FR 29020, Oct. 18, 1973, unless otherwise noted.



                           Subpart A--General



Sec. 22.101   The Rural Development Act of 1972 (Pub. L. 92-419).

    The Rural Development Act of 1972 (Pub. L. 92-419), herein called 
the Act consists of six titles designed to facilitate the development of 
rural communities through a series of authorizations including grants, 
loans, and administrative provisions. This Act adds new statutory rural 
development coordination responsibilities to certain Federal departments 
and agencies to be carried out under the leadership of the Secretary of 
Agriculture.



Sec. 22.102   Summary of authorities.

    The purpose of this section is to give notice that certain 
authorities have been delegated by the Secretary of USDA agencies for 
implementation. New Secretarial delegations covering the Rural 
Development Act were effective May 31, 1973, and were published in the 
Federal Register June 7, 1973 (38 FR 14944-14953). These are as follows:
    (a) Title I (38 FR 14948). Responsibility delegated to the Assistant 
Secretary for Rural Development. The responsibility for administering 
loan and grant authorities is redelegated to the Farmers Home 
Administration, except the responsibility for administering loan 
authorities with respect to rural electrification and telephone 
facilities and service which has been redelegated to the Rural 
Electrification Administration.
    (b) Titles II (38 FR 14945-14948), III (38 FR 14945-14948), and V 
(38 FR 14945-14948. Responsibility delegated to the Assistant Secretary 
for Conservation, Research and Education and redelegated as follows:
    (1) Titles II (38 FR 14951-14952) and III (38 FR 14951-14952) to the 
Administrator, Soil Conservation Service.
    (2) Title V (38 FR 14949-14950) to the Administrators, Cooperative 
State Research Service and the Extension Service respectively.
    (c) Title IV (38 FR 14945-14948). Responsibility delegated to the 
Assistant Secretary for Conservation, Research and Education and 
redelegated (38 FR 14950-14951) to the Chief of the Forest Service.
    (d) Title VI, section 603 (38 FR 14948). Responsibility delegated to 
Assistant Secretary for Rural Development and redelegated (38 FR 14953) 
to the Administrator, Rural Development Service.

The Rural Development Act recognizes that many Federal departments and 
agencies of the executive branch of government administer programs and 
provide services which are applicable to the needs of rural communities. 
Section 603 of the Rural Development Act

[[Page 481]]

charges the Secretary of Agriculture with providing governmentwide 
leadership for, and with coordinating a nationwide rural development 
program. In such coordination, the Secretary shall seek measures that 
will achieve effective integration of relevant Federal services in rural 
areas as provided by Agriculture agencies and other Departments and 
agencies. This section also requires that the Secretary shall establish 
goals and report to the Congress on progress in complying with specified 
purposes of the Act. The Federal Regional Council will play a major role 
in coordination at the field level. An organic Act of the Department (7 
U.S.C. 2201) has been amended to require the Secretary to add Rural 
Development to those purposes for which he is authorized to acquire and 
diffuse useful information.



Sec. 22.103   Purpose.

    The purpose of these regulations is to establish the policies, 
procedures, and responsibilities required by section 603 of the Rural 
Development Act.



Sec. 22.104   General policy.

    Federal implementation of the Act will be consistent with the 
President's policy of decentralized decisionmaking and administrative 
responsibility which gives fullest possible consideration to State and 
local rural development goals and priorities. As a result of section 
817(4) of the Agriculture and Consumer Protection Act of 1973 (Pub. L. 
93-86) which prohibits prior approval by any State officials of any loan 
or grant under any program authorized by title I of the Rural 
Development Act of 1972 (Pub. L. 92-419), it has been necessary to 
substantially modify the planned administration of programs under 
section 603 of the Rural Development Act.



       Subpart B--Roles and Responsibilities of Federal Government



Sec. 22.201   Coordination.

    The following identifies types and levels of coordination:
    (a) Washington level interdepartmental and interagency coordination 
for purposes of the Act.
    (b) Coordination for purposes of the Act among agencies within the 
U.S. Department of Agriculture.
    (c) Coordination among and between the field operations of Federal 
agencies for purposes of the Act.
    (d) Coordination for purposes of the Act between levels of field 
operations of the Federal government and State governments.



Sec. 22.202   Federal unit responsibilities.

    The following Federal units have major responsibilities in 
implementing the Act.
    (a) Rural Development policy questions requiring resolution by the 
Committee on Community Development of the President's Domestic Council 
may be so referred by the Secretary of Agriculture, who will sit as a 
member and as Chairman of the Rural Development Committee.
    (b) The Under Secretary of Agriculture will represent the Secretary 
in matters pertaining to rural development policy when such matters are 
of mutual concern to the Under Secretaries' Group for Regional 
Operations (Executive Order 11647 as amended by E.O. 11731) and the 
Federal Regional Councils, or at such other times that he or the 
Secretary may deem appropriate.
    (c) The Assistant Secretary of Agriculture for Rural Development 
will chair an Assistant Secretaries' Working Group consisting of 
interdepartmental and interagency members from Agriculture, Health, 
Education, and Welfare, Housing and Urban Development, Defense, Labor, 
Commerce, Transportation, Environmental Protection Agency, Small 
Business Administration and others as appropriate. This working group 
will operate under the aegis of the Rural Development Committee of the 
Domestic Council. The purpose of this working group is:
    (1) To develop and recommend rural development policy applicable to 
more than one executive department or agency.
    (2) To develop cooperative procedures between and among executive 
departments and agencies in matters pertaining to rural development.
    (3) To devise effective rural development strategies and to bring 
Federal

[[Page 482]]

resources and services to bear toward their realization.
    (4) To advise the Under Secretaries' Group on involvement of Federal 
Regional Councils in rural development activities.

The Secretary of Agriculture may utilize the services of the Assistant 
Secretaries' Working Group in performing his rural development functions 
for the Rural Development Committee of the Domestic Council.
    (d) The Administrator, Rural Development Service, under the policy 
direction of the Assistant Secretary for Rural Development shall 
coordinate rural development activities under section 603 of the Rural 
Development Act as directed by the Secretary. In the fulfillment of such 
responsibilities, he is authorized to communicate directly with other 
Federal department and agency officials of corresponding levels of 
authority and with State and Federal Regional Council officials.
    (e) The Federal Regional Councils shall have primary responsibility 
for interagency program coordination at the field level and will provide 
assistance to and liaison with States in promoting rural development. 
Federal attention to this type of cooperation and coordination will be 
emphasized. In addition, the Federal Regional Councils, operating within 
policy determined at the Washington level, shall be responsible for 
performing an oversight function to assess how well the machinery is 
working in carrying out the Rural Development Act authorities. Each 
Federal Regional Council shall create an appropriate management 
structure to accomplish the foregoing. This may include the creation of 
a Rural Development Committee. The Department of Agriculture will chair 
such Rural Development Committees or otherwise assume the lead in 
managing rural development activities of the Federal Regional Councils.
    (1) Procedures for the coordination of rural development activities 
will be consistent with the policies expressed herein and with any 
specific Federal guideline based on these regulations or on Executive 
Order 11647, as amended by Executive Order 11731.
    (2) Councils shall exercise authority under Executive Order 11647, 
as amended by Executive Order 11731, to promote in rural areas 
integrated program and funding plans involving several Federal agencies.



Sec. 22.203   Major responsibilities under title VI, Sec. 603.

    (a) Title VI, section 603(b). (1) Section 603(b) of the Rural 
Development Act charges the Secretary of Agriculture with providing 
leadership in the development of a nationwide rural development program. 
Included in this program would be pertinent Federal departments and 
agencies which might contribute to this rural development mission. In 
carrying out his responsibilities, the Secretary shall report annually, 
prior to September 1, to the Congress on rural development goals for 
employment, income, population, housing, and quality of community 
services and facilities. To carry out the provisions of the Act 
specified above, the following major responsibilities are identified:
    (i) The Rural Development Committee of the Domestic Council will 
assume responsibility for interdepartmental policy formulation and 
resolution of issues pertaining to this section of the Act as determined 
by the Secretary of Agriculture. This committee consists of members of 
the Community Development Committee of the Domestic Council, to wit: The 
Secretary of Agriculture, Chairman of the Rural Development Committee; 
the Secretary of HUD, Chairman of the Urban Development Committee; the 
Secretary of Transportation, Chairman of the Transportation Policy 
Development Committee; the Secretaries of Treasury, Commerce, and Labor 
and the Director of OMB.
    (ii) The Secretary of Agriculture shall be responsible for 
Washington level coordination pursuant to this section of the Act.
    (iii) At the regional level, the Federal Regional Councils shall 
develop and implement procedures designed to identify and facilitate 
access to Federal resources appropriate for rural development purposes 
within States. Such procedures will be consistent with policies 
expressed or endorsed by the Under Secretaries' Group. The Councils 
shall also be responsible for

[[Page 483]]

monitoring the effectiveness with which the Rural Development Act is 
implemented within their respective regions.
    (2) The Secretary of Agriculture is also authorized to initiate or 
expand research and development efforts related to solution of rural 
development problems including problems of rural water supply, rural 
sewage and solid waste management, and rural industrialization.
    (3) The Rural Development Service will operate a rural development 
research program and may also participate in rural development research 
in cooperation with Federal, State, and private research units.
    (b) Title VI, section 603(c) of the Rural Development Act. (1) Under 
guidance by the Under Secretaries' Group, and under the leadership of 
the U.S. Department of Agriculture member on each of the Federal 
Regional Councils, the Rural Development Committees of the Federal 
Regional Councils or other Federal Regional Council mechanisms assigned 
to work with rural development, shall be responsible for proposing to 
the appropriate Federal and State agencies actions in such areas as:
    (i) Adjustment, where appropriate, of administrative boundaries used 
by field staffs of Federal and federally supported agencies to conform 
with boundaries of multicounty jurisdictions. ``Multicounty 
jurisdictions'' as used means substate planning districts or other 
combinations of county jurisdictions as designated by States for State 
planning purposes.
    (ii) Co-location of field units of Federal agencies and 
consolidation of offices in the vicinity of principal centers of local 
government administration (including multicounty jurisdictional 
administration), to encourage increased cooperation within and among 
different governmental levels.
    (iii) Exchange of personnel between Federal and State agencies under 
the Intergovernmental Personnel Act (Pub. L. 91-648), to supplement and 
broaden staffs administering rural development programs, and provide 
specific technical expertise for certain projects.
    (iv) Interchange of personnel among Federal agencies for the 
purposes expressed in paragraph (b)(1)(ii) of this section.
    (2) In addition, the U.S. Department of Agriculture member on the 
Federal Regional Councils shall, by July 31, of each year, report to the 
Assistant Secretary for Rural Development who shall in turn report to 
the Under Secretaries' Group and the Congress on progress made in 
carrying out the programs outlined in paragraphs (b)(1)(ii) through (iv) 
of this section and plans for programs to be implemented during the 
following fiscal year. The first report will be due to the Assistant 
Secretary by July 31, 1974.



Sec. 22.204   Rural development committees.

    State rural development committees, consisting of USDA agency 
members and, in most instances, State governments and other Federal 
agency representatives are available to assist States in accomplishing 
their rural development objectives. Such assistance if requested by the 
State can take the form of technical assistance and cooperative services 
to States in carrying out their rural development priorities.



Sec. 22.205   Allocation of loan and grant funds.

    (a) Title I grant funds and approved loan funding levels will be 
allocated among States by a formula designed to ensure equitable 
treatment. This applies to amounts made available for business and 
industrial loans, water, sewer and other community facilities except 
electrical and telephone facilities provided by or through the Rural 
Electrification Administration.
    (b) During the second half of the fiscal year, the Secretary of 
Agriculture shall review State and multicounty jurisdictional rural 
development programs and projects so that unused allocations may be 
shifted from one State to another so as to enable the obligation of all 
available funds prior to the end of the fiscal year.
    (c) The formula used for fund allocation will ensure that a minimum 
loan and grant level is established so that no State receives an amount 
too small

[[Page 484]]

to serve the purposes of the Act. A percentage of total loan and grant 
authority will be withheld from initial allocation to allow subsequent 
appropriate technical adjustments in amounts allocated to individual 
States.
    (d) Title V funds shall be distributed by the Secretary under the 
formula specified in the Act. Title V activities will be consistent with 
the principle that States and multicounty jurisdictions have 
responsibility for the rural development planning and priority setting 
functions.



       Subpart C--Roles and Responsibilities of State Governments



Sec. 22.301   Selection and designation.

    Procedures for implementing the Act are designed to give the fullest 
possible consideration to planning and development goals and strategies 
at the State and multicounty jurisdictional levels. The governing bodies 
of multicounty organizations should include representatives of local 
governments contained within the respective multicounty jurisdictions. 
State development strategies and priorities shall be fully considered in 
the Federal administration of Rural Development Act authorities.



Sec. 22.302   Area eligibility.

    Eligibility for programs under the Act will be based on the criteria 
of community size and location of population as specified in the Act. 
State designations of eligible areas will be duly considered by the 
Federal government in the determination of eligibility for loan and 
grant assistance.



Sec. 22.303   Cooperation with Federal Regional Councils.

    States are urged to establish and maintain close and cooperative 
relationships with the Federal Regional Councils which will be in a 
position to assist the States and multicounty jurisdictions in the 
identification and application of available resources. States may 
authorize direct communications and liaison between the Regional 
Councils and multicounty jurisdictions within States.



Sec. 22.304   Multiyear planning and programming.

    State and multicounty jurisdictions are encouraged to adopt 
multiyear planning and development programs. As administrative 
procedures for implementing the Act support the feasibility of such a 
process, these programs should consider joint State, Federal, and local 
budget planning factors and be refined to conform to the actual fund 
availability as annual budgets are finalized and allocated. Such 
programs, once initiated, will be extended by the annual addition of a 
new planning year until programs are completed or terminated.



Sec. 22.305   Conformance with OMB Circular No. A-95.

    The State and multicounty jurisdictional rural development planning 
process must conform to the review requirements expressed in OMB 
Circular No. A-95 under parts I, III, and IV as appropriate.



Sec. 22.306   Financing rural development planning.

    States will be required to finance rural development planning 
through their own resources, revenue-sharing allocations, or the 
Department of Housing and Urban Development planning and management 
assistance program or other available Federal planning programs.



Sec. 22.307   Program evaluation.

    The Department of Agriculture is responsible for continuous program 
evaluation to determine if individual projects and the entire program is 
cost effective in terms of reaching rural development goals. As a 
result, USDA is responsible for conducting and reporting an annual 
evaluation of selected rural development projects and the overall rural 
development program. USDA shall include as a part of its evaluation 
Federal Regional Council assessment of the effectiveness of interagency 
coordination and delivery of services within the overall rural 
development program. States and multicounty districts are encouraged to 
participate in the joint preparation of such program evaluations. Copies 
of such evaluations should be supplied to

[[Page 485]]

the Administrator, Rural Development Service, Department of Agriculture 
and to the Federal Regional Councils, in sufficient time so as to arrive 
not later than July 1. The initial evaluation, due July 1, 1974, in 
addition to the requirements listed below, should include a background 
statement and should summarize first year program efforts and results. 
Annual evaluation should:
    (a) Describe the process used in planning, project selection and 
priority setting, and the criteria and process used in evaluating 
program effectiveness.
    (b) Describe the specific objectives of the programs.
    (c) Describe and assess the cost and effectiveness of projects being 
pursued within individual multicounty jurisdictions.
    (d) Express observations, conclusions and recommendations based on 
such evaluations which may contribute to the development of better 
management, coordination and planning procedures.



Sec. 22.308   Project approval.

    State and multicounty jurisdictional planning is a State and local 
prerogative. Federal agencies will be responsive to State rural 
development strategies and priorities. However, determination of 
eligibility and feasibility and final approval of individual projects 
involving Federal funds must remain with the Federal government 
consistent with the Act and implementing regulations.



Sec. 22.309   Seeking Federal review.

    States may, if they elect, submit multicounty development plans and 
proposals to the Federal Regional Councils and to the Rural Development 
Service, USDA, for review and comment. Such review will neither obligate 
the Federal government with respect to such programs nor require States 
to conform with suggestions supplied by the USDA or the Federal Regional 
Council.



PART 23--STATE AND REGIONAL ANNUAL PLANS OF WORK--Table of Contents




                        Subpart A--State Program

Sec.
23.1  General.
23.2  Administration.
23.3  Coordination.
23.4  State Rural Development Advisory Council.
23.5  Availability of funds.
23.6  Plan of Work.

                       Subpart B--Regional Program

23.9  General.
23.10  Administration.
23.11  Board of Directors.
23.12  Availability of funds.
23.13  Plan of work.

    Authority: Sec. 508, 86 Stat. 674 (7 U.S.C. 2668).

    Source: 38 FR 29023, Oct. 18, 1973, unless otherwise noted.



                        Subpart A--State Program



Sec. 23.1   General.

    (a) Title V of the Rural Development Act of 1972 (Pub. L. 92-419) 
hereafter referred to as ``Title V'' is the Research and Education 
component of the Rural Development Act of 1972. Title V provides the 
opportunity to utilize and build upon the research, extension, and 
community service capability of public and private institutions of 
higher education in each State to expand scientific inquiry and 
education backup for rural development. The higher educational and 
research institutions in each State, including the Land Grant 
Institutions of 1890, are authorized to assist in developing and 
disseminating through the most appropriate manner, scientific 
information, technical assistance, and feasibility studies required to 
improve the rural development capability of local citizens, agencies, 
and governments. Programs authorized under title V shall be organized 
and conducted by one or more colleges or universities in each State to 
provide a coordinated program in each State which

[[Page 486]]

will have the greatest impact on accomplishing the objectives of rural 
development in both the short and longer term and the use of these 
studies to support the State's comprehensive program to be supported 
under title V.
    (b) Title V operations will be consonant with the purpose that all 
Federal rural development activities be coordinated with other federally 
assisted rural development activities and with the State's ongoing rural 
development program. To effectuate such purpose, the Assistant Secretary 
for Conservation, Research and Education will implement title V plans 
and activities in close coordination with the Assistant Secretary for 
Rural Development.



Sec. 23.2   Administration.

    (a) Title V will be administered by the Administrators of the 
Extension Service and the Cooperative State Research Service for 
extension and research programs respectively, in cooperation with the 
chief administrative officer of the State Land Grant University who will 
administer the program within his respective State. To assure national 
and State coordination with programs under the Smith-Lever Act of 1914 
and the Hatch Act (as amended), August 11, 1955, the administration of 
the programs shall be in association with the programs conducted under 
the Smith-Lever Act and the Hatch Act as required by section 504(b) of 
the Act.
    (b) Programs authorized under title V shall be conducted as mutually 
agreed upon by the Secretary and the chief administrative officer of the 
State Land Grant University responsible for administering said programs 
in a memorandum of understanding which shall provide for the 
coordination of the programs, coordination of these programs with other 
rural development programs of Federal, State, and local government, and 
such other matters as the Secretary shall determine.



Sec. 23.3   Coordination.

    The chief administrative officer of the administratively responsible 
State Land Grant University will designate an official who will be 
responsible for the overall coordination of the authorized programs for 
the State. The designated official will be responsible for the overall 
coordination of planning, organizing, funding, conducting and evaluating 
programs in association with the person responsible for the 
administration of research programs, the person responsible for the 
administration of the extension programs, and the administrative head of 
agriculture of the University (chairman of the State Rural Development 
Advisory Council).



Sec. 23.4   State Rural Development Advisory Council.

    (a) The chief administrative officer of the administratively 
responsible State Land Grant University will appoint a State Rural 
Development Advisory Council with membership as set forth in section 
504(e) of title V. The function of the Council shall be to review and 
approve annual program plans conducted under title V. The Council will 
also advise the chief administrative officer on all matters pertaining 
to the authorized programs.
    (b) The Chairman of the State Rural Development Advisory Council 
will insure that programs proposed under title V including regional 
programs applicable within the State are not inconsistent with and are, 
to a maximum extent practicable, in consonance with other rural 
development programs and activities approved in that State.
    (c) Those elements of the research and extension plan which would 
impact directly on rural development activities being developed or 
pursued by States will be considered jointly by the State Rural 
Development Advisory Council and appropriate State agencies to assure a 
constructive reinforcement of those State activities.



Sec. 23.5   Availability of funds.

    Funds available under title V for extension and research programs 
shall be allocated to, and following approval of a State Annual Plan of 
Work, paid to the official of the State Land Grant University designated 
to receive funds under the Smith-Lever and Hatch Acts respectively. 
Funds will be available for State programs for expenditures authorized 
by section 503(c) of title V, in the fiscal year for which the funds 
were appropriated and the next fiscal year.

[[Page 487]]



Sec. 23.6   Plan of Work.

    (a) A State Annual Plan of Work for carrying out the programs 
authorized under title V shall be prepared. The Plan of Work should 
include:
    (1) Identification of major problems and needs which can be met by 
each related extension and research program in the geographic or problem 
area.
    (2) The relationship of this program to ongoing planning and 
development efforts.
    (3) The organizational structure for planning, conducting, and 
evaluating each pilot program, including the names and title of the 
members of the Rural Development Advisory Council and the composition of 
major committees and work groups.
    (4) A separate concise statement describing specific extension 
projects to be funded under each program. The statement should contain 
the following elements: Title, objectives, organization and operational 
procedures, probable duration, personnel, institutions involved, and 
relation to the research effort. In addition, a brief description of 
each regular or special extension project which is complementary and 
supports the title V pilot program, but which is funded from other 
sources shall be included.
    (5) A separate concise statement describing specific research 
projects to be funded under each program. The statement should contain 
the following elements: Title, objectives, organization, and operational 
procedures, probable duration, personnel, institutions involved, and 
relation to the extension effort. In addition, a brief description of 
each regular or special research project which is complementary and 
supports the title V program, but which is funded from other sources, 
shall be included.
    (6) A plan for evaluating the impact of each program on the 
development of the area, including the effectiveness of the extension 
and research program techniques, and organizational structure for 
planning and conducting each program. Appraisals by community leaders in 
the area should be included in the evaluation.
    (7) Provisions for making an annual progress report to the Assistant 
Secretary for Conservation, Research, and Education which will document 
achievements pertaining to the goals and objectives as stated in the 
Plan of Work.
    (8) A budget statement for each program to be submitted on forms 
provided by the Assistant Secretary for Conservation, Research, and 
Education.
    (b) The Plan of Work shall include plans for all programs to be 
conducted with funds authorized under section 503(b)(3) and (4) of title 
V. The Plan of Work shall include plans for the programs to be conducted 
by each cooperating and participating university or college and such 
other information as included in these guidelines. Each State program 
must include research and extension activities directed toward 
identification of programs which are likely to have the greatest impact 
upon accomplishing the objectives of rural development in both the short 
and longer terms and the use of these studies to support the State's 
comprehensive program to be supported under section 505(b) of title V. 
In addition, all other rural development extension and research efforts 
funded from other sources that contribute directly to the proposed 
programs shall be described in the Plan of Work.
    (c) Since the appropriation authorization for title V is limited to 
a three-year period the Plan of Work should be developed to demonstrate 
extension and research program techniques and organizational structures 
for providing essential knowledge to assist and support rural 
development efforts within that time.
    (1) In accordance with the above criteria, the Plan of Work should:
    (i) Concentrate on limited geographic or problem areas where title V 
efforts would be expected to have high impact within the three-year 
authorization.
    (ii) Give emphasis to rural areas, including towns and cities with 
populations of less than 50,000.
    (iii) Involve the administratively responsible Land Grant University 
and other public or private colleges and universities, as appropriate, 
in meeting with high priority extension and research needs of the 
area(s).

[[Page 488]]

    (iv) Give priority to education and research assistance leading to 
increasing job and income opportunities, improving quality of life, 
improving essential community services and facilities, improving housing 
and home improvements, and enhancing those social processes necessary to 
achieve these goals.
    (v) Be consistent with Statewide comprehensive planning and 
development efforts and objectives. Procedures set forth under 
Sec. 23.4(c) are designed to achieve attainment of this requirement.
    (d) Four copies of the Plan of Work approved by the State Rural 
Development Advisory Council shall be submitted by the person 
responsible for the overall coordination of the title V programs in the 
State to the Assistant Secretary for Conservation, Research and 
Education, U.S. Department of Agriculture, Washington, DC 20250, within 
60 days after enactment of the annual Appropriation Act for the 
Department of Agriculture.
    (e) Plans of Work not meeting the above criteria will not be 
approved by the Assistant Secretary for Conservation, Research and 
Education.



                       Subpart B--Regional Program



Sec. 23.9   General.

    (a) Section 503(b)(2), title V, of the Rural Development Act of 1972 
(Pub. L. 92-419) hereafter referred to as ``Title V'' authorizes funds 
to finance work authorized under title V which serve two or more States; 
in which universities in two or more States cooperate; or which is 
conducted by one University serving two or more States. The authorized 
funding under section 503(b)(2) is hereafter referred to as the 
``Regional Programs.''
    (b) The Regional Programs shall develop and provide knowledge 
essential to assist and support rural development in the region, and 
shall provide for technical consultation and personnel development for 
the research and extension staff in the several States of the region to 
help them to be more responsive to rural development needs and 
activities.
    (c) The Regional Programs will concentrate on the high priority 
knowledge, training, and personnel needs required for the research and 
extension staff in the several States to conduct effective rural 
development research and extension to carry out the provisions of title 
V. These efforts may include personnel development and consultation; 
synthesis of existing research knowledge and the interpretation of this 
knowledge for rural development program and policy purposes; the 
development of strategies and procedures on high priority rural 
development problems of regional significance; as funds permit, the 
conduct of research on one of two high priority problems for which 
information is lacking but is urgently needed for rural development, and 
the evaluation of rural development programs and policies.
    (d) Regional Programs will be consonant with all rural development 
activities under the Act and other pertinent Federal development 
programs. To effectuate such purpose, the Assistant Secretary for 
Conservation, Research and Education will implement title V plans and 
activities in close cooperation with the Assistant Secretary for Rural 
Development. In order to insure such consonance, the Director of each 
Regional Center will insure that regional programs having an impact 
within one or more States are brought to the attention of the 
appropriate State overall coordinator for consideration pursuant to 
procedures in Sec. 23.4(c).



Sec. 23.10   Administration.

    (a) The Regional Programs will be administered through four Regional 
Rural Development Centers hereafter referred to as ``Regional Centers'' 
in cooperation with the Extension Service and the Cooperative State 
Research Service. The Director of each Regional Center shall be 
responsible for compliance with all appropriate provisions of title V 
and the regulations of this subpart. Regions as delineated for purposes 
under section 503(b)(2) will be coterminous with the regional 
delineation by the National Association of State Universities and Land 
Grant Colleges. Each Regional Center will be established by the regional 
association of State Agricultural Experiment Station

[[Page 489]]

Directors and the regional organization of Cooperative Extension 
Directors in the region to be served by the Regional Center. These 
associations and organizations will designate the location of the 
Regional Center.
    (b) Although the Regional Center will administer the program, it is 
also expected that it will draw on expertise from outside the Regional 
Center. The Director of each Regional Center shall seek advice and 
assistance from regional and subregional committees, groups or persons 
who can contribute to the Regional Center's program.



Sec. 23.11   Board of Directors.

    (a) For each Regional Center there shall be a Board of Directors 
selected by the Regional Association of Agricultural Experiment Station 
Directors and the Regional Organization of Cooperative State Extension 
Directors. Membership on the Board of Directors shall include 
representatives from State Cooperative Extension Services and State 
Agricultural Experiment Stations from the States in the region and/or 
other State administrators of programs carried out under title V in the 
region.
    (b) The Director of each Regional Center will be responsible to the 
Board of Directors for the Regional Program conducted at that Regional 
Center. The Regional Annual Plan of Work will be developed by the 
Director and reviewed and approved by the Board of Directors.



Sec. 23.12   Availability of funds.

    Available funds will be allocated equally and following approval of 
a Regional Annual Plan of Work paid to the Directors of the four 
Regional Centers. Funds will be available for Regional Programs for 
expenditures authorized by section 503(c) of title V, in the fiscal year 
for which the funds were appropriated and the next fiscal year.



Sec. 23.13   Plan of work.

    (a) A Regional Plan of Work for carrying out the programs authorized 
to be funded under section 503(b)(2) of title V shall be prepared. The 
Plan of Work should include:
    (1) A brief narrative statement including identification of high 
priority knowledge, skill, and organization needs for rural development 
program and policy purposes in the region and identification of 
technical consultation, training, and personnel needs of research and 
extension workers in support of rural development programs.
    (2) A statement indicating: (i) The types of personnel to be 
trained, technical consultation to be conducted, the estimated number of 
participants, the location or locations where the program will be 
conducted, and the staff who will conduct the work;
    (ii) The types of topical areas of rural development for which the 
synthesis of available research knowledge for rural development purposes 
is planned;
    (iii) The type of high priority rural development research which 
will be undertaken as funds permit and the staff which would do the 
research;
    (iv) The type of evaluation studies which will be made and the staff 
which will do the evaluation; and
    (v) The relationship of the Plan of Work to priorities activated 
under subpart A of this part, which in turn support State development 
strategies.
    (3) A concise statement of the organization structure for planning 
and conducting the program funded under section 503(b)(2).
    (4) A plan for evaluating the usefulness of the program and the 
effectiveness of the organizational structure.
    (5) Provision for making an annual progress report to the Assistant 
Secretary for Conservation, Research and Education which will document 
achievements pertaining to the goals and objectives as stated in the 
Plan of Work.
    (6) A budget statement to be submitted on forms provided by the 
Assistant Secretary for Conservation, Research and Education.
    (b) The Plan of Work shall be coordinated with the work program of 
other pertinent multi-State organizations or bodies for those activities 
of the Regional Rural Development Centers which go beyond direct 
assistance to individual State programs conducted under title V.
    (c) The Director of the Center will forward four copies of the Plan 
of Work to the Assistant Secretary for Conservation, Research and 
Education,

[[Page 490]]

U.S. Department of Agriculture, Washington, D.C. 20250, by a time to be 
specified by the Assistant Secretary for Conservation, Research and 
Education.
    (d) Regional Annual Plans of Work not meeting the above criteria 
will not be approved by the Assistant Secretary for Conservation, 
Research and Education.



PART 24--BOARD OF CONTRACT APPEALS, DEPARTMENT OF AGRICULTURE--Table of Contents




                  Subpart A--Organization and Functions

Sec.
24.1  General.
24.2  Composition of the Board.
24.3  Presiding Administrative Judge.
24.4  Jurisdiction.
24.5  Time for filing notice of appeal.
24.6  Board location and address.
24.7  Public information.
24.8  Rules of procedure.
24.9  Definitions.

                      Subpart B--Rules of Procedure

24.21  Rules of Procedure of Agriculture Board of Contract Appeals--
          AGBCA.

Appendix

    Authority: 5 U.S.C. 301; 15 U.S.C. 714b, 714g, and 714h; 16 U.S.C. 
551; 40 U.S.C. 486(c); 41 U.S.C. 601-613.

    Source: 60 FR 56207, Nov. 7, 1995, unless otherwise noted.



                  Subpart A--Organization and Functions



Sec. 24.1  General.

    The Board of Contract Appeals, United States Department of 
Agriculture (referred to as the ``Board'') is an agency of the 
Department established by the Secretary of Agriculture in accordance 
with the requirements of the Contract Disputes Act of 1978 (41 U.S.C. 
601-613). The provisions of 5 U.S.C. 551-559 (Administrative Procedure 
Act) are not applicable to proceedings before the Board except for the 
requirements under 5 U.S.C. 552 respecting public information, agency 
rules, opinions, orders, and records.



Sec. 24.2  Composition of the Board.

    The Board consists of a Chair, Vice Chair, and other members, all of 
whom are attorneys at law duly licensed by a state, commonwealth, 
territory, or the District of Columbia. The Board members are designated 
Administrative Judges. The Chair shall manage the business and 
operations of the Board, assign cases to members, and establish panels 
for cases. Except as provided in Rule 12.2, the Small Claims (Expedited) 
Procedure, and Rule 12.3, the Accelerated procedure, decisions of the 
Board will be rendered by a panel of three Administrative Judges, and 
the decision of the majority of the panel will constitute the decision 
of the Board. The Vice Chair shall perform the functions of the Chair 
upon request of the Chair or in the event of absence or unavailability 
of the Chair to act.



Sec. 24.3  Presiding Administrative Judge.

    The Chair acts as presiding Administrative Judge, or designates a 
member of the Board or an examiner to so act, in each proceeding. The 
Presiding Administrative Judge or the examiner has power to:
    (a) Rule upon motions and request;
    (b) Adjourn the hearing from time to time and change the time and 
place of hearing;
    (c) Administer oaths and affirmations and take affidavits;
    (d) Receive evidence;
    (e) Order the taking of depositions;
    (f) Admit or exclude evidence;
    (g) Hear oral argument on facts or law;
    (h) Consolidate appeals filed by two or more appellants; and
    (i) Do all acts and take all measures necessary for the maintenance 
of order at the hearing and the efficient conduct of the proceeding.

In cases considered by the Board under Sec. 24.4(b), (c), and (d) the 
Chair is hereby delegated authority to request subpoenas pursuant to 5 
U.S.C. 304.



Sec. 24.4  Jurisdiction.

    (a) Contract Disputes Act. Pursuant to the Contract Disputes Act of 
1978 (41 U.S.C. 601-613), the Board shall consider and determine appeals 
from decisions of contracting officers relating to contracts entered 
into on or after March 1, 1979, and, at the contractor's election, 
contracts entered into prior to March 1, 1979, with respect to claims

[[Page 491]]

pending before the contracting officer on March 1, 1979, or initiated 
thereafter. For purposes of this paragraph (a) the term ``contracts'' 
shall mean express or implied contracts made by the Department of 
Agriculture, agencies of the Department, or by any other executive 
agency when such agency or the Administrator for Federal Procurement 
Policy has designated the Board to decide the appeal, for:
    (1) The procurement of property, other than real property in being;
    (2) The procurement of services;
    (3) The procurement of construction, alternation, repair, or 
maintenance of real property; or
    (4) The disposal of personal property.
    (b) Federal Crop Insurance Corporation. The Board shall have 
jurisdiction of appeals of final administrative determinations of the 
Corporation pertaining to standard reinsurance agreements under 7 CFR 
400.169(d). Decisions of the Board shall be final within the Corporation 
and the Department.
    (c) Suspension and debarment. (1) The Board shall have jurisdiction 
to hear and determine the issue of suspension or debarment, and the 
period thereof, on an appeal by a person suspended or debarred by:
    (i) An authorized official of the Department of Agriculture under 48 
CFR 409.470; or
    (ii) An authorized official of the Commodity Credit Corporation 
under 7 CFR part 1407.
    (2) In addition, the Board shall have jurisdiction to hear and 
determine the issue of debarment, and the period thereof, on an appeal 
by a timber purchaser debarred by an authorized official of the Forest 
Service under 36 CFR 223.138.
    (3) Decisions of the Board shall be final within the Department.
    (d) Contract Work Hours and Safety Standards Act. The Board shall 
have jurisdiction to act for the head of the agency in appeals of the 
administrative determinations of liquidated damages under the Contract 
Work Hours and Safety Standards Act (40 U.S.C. 327-333), 40 U.S.C. 330.



Sec. 24.5  Time for filing notice of appeal.

    A notice of appeal under Sec. 24.4(a), (c)(1)(i), or (c)(1)(ii) 
shall be filed within 90 days from the date of receipt of a contracting 
officer's or suspending or debarring official's decision. A notice of 
appeal under Sec. 24.4(b) shall be filed within 90 days from the date of 
receipt of the Corporation's final determination. A notice of appeal 
under Sec. 24.4(c)(2) shall be filed within 30 days from the date of 
receipt of the debarring official's decision. A notice of appeal under 
Sec. 24.4(d) shall be filed within 60 days from the date of withholding 
of liquidated damages. The time for filing a notice of appeal shall not 
be extended by the Board.



Sec. 24.6  Board location and address.

    The Board of Contract Appeals is located in Washington, DC. All 
correspondence and all documents to be filed with the Board should be 
addressed to the Board of Contract Appeals, United States Department of 
Agriculture, Washington, DC 20250-0600. The Board's telephone number is 
202-720-7023; the Board's facsimile number is 202-720-3059.



Sec. 24.7  Public information.

    (a) The records of the Board are open to the public for inspection 
and copying at the Office of the Board. Decisions and rulings of the 
Board shall be published from time to time and copies made available to 
the public upon request at cost of duplication except that the Board 
shall, in its discretion, have authority to make copies of decisions and 
rulings available at no charge in accordance with Department policy, 
appendix A to 7 CFR part 1, subpart A. Hearings before the Board shall 
be open to the public.
    (b) Information that is to be made available for public inspection 
and copying under provisions of 5 U.S.C. 552(a)(2) and 7 CFR 1.5 may be 
obtained at the office of the Board. The address of the Board is set 
forth in Sec. 24.6. Except for such information as is generally 
available to the public, requests should be in writing and submitted in 
accordance with 7 CFR 1.6 and paragraphs (c) and (d) of this Sec. 24.7.
    (c) Facilities for copying are available at the office of the Board.
    (d) Facilities for inspection and copying are available during 
established office hours for the Board, usually 8:30

[[Page 492]]

a.m. to 5:00 p.m. Monday through Friday. The Department of Agriculture 
has established a schedule of fees for copies of information. The Board 
charges for copies of records in accordance with the Department fee 
schedule, appendix A to 7 CFR part 1, subpart A.
    (e) The Vice Chair is authorized to receive requests for records 
submitted in accordance with 7 CFR 1.6(a), and to make determinations 
regarding whether to grant or deny requests for records exempt from 
mandatory disclosure under the provisions of 5 U.S.C. 552(b). This 
official is authorized to
    (1) Extend the ten-day administrative deadline for reply pursuant to 
7 CFR 1.14,
    (2) Make discretionary releases pursuant to 7 CFR 1.17(b) of records 
except from mandatory disclosure, and
    (3) Make determinations regarding the charging of fees.
    (f) Appeals from denials of request submitted under paragraph (e) of 
this section shall be submitted in accordance with 7 CFR 1.6(e) to the 
Chair, Board of Contract Appeals, United States Department of 
Agriculture, Washington, DC 20250-0600. The Chair shall determine 
whether to grant or deny the appeal and shall also make all necessary 
determinations relating to an extension of the twenty-day administrative 
deadline for reply pursuant to 7 CFR 1.14, discretionary release 
pursuant to 7 CFR 1.17(b) of records exempt from mandatory disclosure 
under 5 U.S.C. 552(b), and the charging of appropriate fees.



Sec. 24.8  Rules of procedure.

    The Chair of the Board shall prescribe its Rules of Procedure and 
publish such Rules in subpart B of this part 24 and may prescribe and so 
publish amendments from time to time. The Rules of Procedure and any 
amendments thereto shall be consistent with this subpart.



Sec. 24.9  Definitions.

    Board means the Board of Contract Appeals established under this 
subpart.
    Contract means any agreement entered into by the Department or its 
agencies or authorized officials with any person having the legal effect 
of a contract between the Department and such person.
    Contracting officer means any person who, by appointment in 
accordance with applicable regulations, has the authority to enter into 
and administer contracts and make determinations and findings with 
respect thereto and includes the authorized representative of the 
contracting officer, acting within the limits of his/her authority.
    Days means calendar days. Except as otherwise provided by law, in 
computing any period of time prescribed by the rules in this part or any 
order of the Board, the day of the event from which the designated 
period of time begins to run shall not be included, but the last day of 
the period shall be included unless it is a Saturday, Sunday, or a legal 
holiday, in which even the period shall run to the end of the next 
business day. If mailing is required, the date of the postmark shall be 
treated as the date action was taken.
    Department means the United States Department of Agriculture.
    Government attorney means the attorney of the Department designated 
to handle a particular appeal on behalf of the contracting officer.
    Person means any individual, partnership, public or private 
corporation, association, agency or other legal entity.



                      Subpart B--Rules of Procedure



Sec. 24.21  Rules of Procedure of Agriculture Board of Contract Appeals--AGBCA.

    (a) Preface to Rules. Time, computation and extensions. All time 
limitations specified for various procedural actions are computed as 
maximums and are not to be fully exhausted if the action described can 
be accomplished in a lesser period. Where appropriate and justified, 
however, extensions of time will be granted. All requests for extensions 
of time by either party shall be in writing and state good cause for the 
requested extension. The Board may grant such extensions on good cause 
shown except that the Board shall not extend the time prescribed under 
Sec. 24.5 for taking an appeal.
    (b) Ex parte communications. No member of the Board or of the 
Board's staff

[[Page 493]]

shall entertain, nor shall any person directly or indirectly involved in 
an appeal submit to the Board or the Board's staff, off the record, any 
evidence, explanation, analysis, or advice, whether written or oral, 
regarding any matter at issue in an appeal. This provision does not 
apply to consultation among Board members or to ex parte communication 
concerning the Board's administrative functions or procedures.

                Appendix to Subpart B--Rules of Procedure

                                  Index

                         Preliminary Procedures

Rule 1. Appeals, How and When Taken.
Rule 2. Notice of Appeal, Contents of.
Rule 3. Docketing of Appeals.
Rule 4. Preparation, Content, Organization, Forwarding, and Status of 
          Appeal File.
Rule 5. Dismissal for Lack of Jurisdiction.
Rule 6. Pleadings.
Rule 7. Amendments of Pleadings or Record.
Rule 8. Hearing Election.
Rule 9. Prehearing Briefs.
Rule 10. Prehearing or Presubmission Conference.
Rule 11. Submission Without a Hearing.
Rule 12. Optional SMALL CLAIMS (EXPEDITED) and ACCELERATED Procedures.
Rule 12.1. Elections to Utilize SMALL CLAIMS (EXPEDITED) and ACCELERATED 
          Procedures.
Rule 12.2. The SMALL CLAIMS (EXPEDITED) Procedure.
Rule 12.3. The ACCELERATED Procedure.
Rule 12.4. Motions for Reconsideration in Rule 12 cases.
Rule 13. Settling the Record.
Rule 14. Discovery--Depositions.
Rule 15. Interrogatories to Parties, Admission of Facts, and Production 
          and Inspection of Documents.
Rule 16. Service of Papers other than Subpoenas.

                                Hearings

Rule 17. Where and When Held.
Rule 18. Notice of Hearings.
Rule 19. Unexcused Absence of a Party.
Rule 20. Hearings: Nature; Examination of Witnesses.
Rule 21. Subpoenas for CDA Appeals.
Rule 21.1. Subpoenas for Non-CDA Appeals.
Rule 22. Copies of Papers.
Rule 23. Posthearing Briefs.
Rule 24. Transcript of Proceedings.
Rule 25. Withdrawal of Exhibits.

                             Representation

Rule 26. The Appellant.
Rule 27. The Government.

                              Miscellaneous

Rule 28. Decisions.
Rule 29. Motion for Reconsideration.
Rule 30. Dismissal Without Prejudice.
Rule 31. Dismissal for Failure to Prosecute or Defend.
Rule 32. Remand from Court.
Rule 33. Sanctions.
Rule 34. Alternative Dispute Resolution.
Rule 35. Application for Attorneys' Fees and Expenses Under the Equal 
          Access to Justice Act.

                      Rules--Preliminary Procedures

                   Rule 1. Appeals, How and When Taken

    (a) Notice of Appeal--90 days. Notice of an appeal shall be in 
writing and mailed or otherwise furnished to the Board within 90 days 
from the date of receipt of a contracting officer's decision. A copy of 
the notice of appeal shall be furnished to the contracting officer from 
whose decision the appeal is taken.
    (b) Failure to Issue CO Decision--60 days--$100,000 or less. Where 
the contractor has submitted a claim of $100,000 or less to the 
contracting officer and has requested a written decision within 60 days 
from receipt of the request, and the contracting officer has not done 
so, the contractor may file a notice of appeal as provided in paragraph 
(a) of this Rule 1, citing the failure of the contracting officer to 
issue a decision.
    (c) Failure to Issue CO Decision--Reasonable Time--More than 
$100,000. Where the contractor has submitted a certified claim in excess 
of $100,000 to the contracting officer and the contracting officer has 
failed to issue a decision within a reasonable time, the contractor may 
file a notice of appeal as provided in paragraph (a) of this Rule 1, 
citing the failure to issue a decision.
    (d) Stay Pending Final CO Decision. Upon docketing of appeals filed 
pursuant to paragraphs (b) or (c) of this Rule 1, the Board may, at its 
option, stay further proceedings pending issuance of a final decision by 
the contracting officer within such period of time as is determined by 
the Board.

                  Rule 2. Notice of Appeal. Contents of

    A notice of appeal should indicate that an appeal is being taken and 
should identify the contract (by number), the department and agency or 
bureau involved in the dispute, the decision from which the appeal is 
taken, and the amount in dispute, if known. The notice of appeal should 
be signed by the appellant (the contractor making the appeal), or by the 
appellant's duly authorized representative or attorney. The Complaint 
referred to in Rule 6 may be filed with the notice of appeal, or the 
appellant may designate the notice of appeal as a Complaint.

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                      Rule 3. Docketing of Appeals

    When a notice of appeal in any form has been received by the Board, 
it shall be docketed promptly. Notice in writing shall be given to the 
appellant, with a copy of these rules and information on Alternative 
Dispute Resolution. Notice in writing shall be given also to the 
contracting officer and to the Office of the General Counsel.

 Rule 4. Preparation, Content, Organization, Forwarding, and Status of 
                               Appeal File

    (a) Duties of Contracting Officer. Within 30 days of receipt of a 
letter from the Board transmitting the Complaint, the contracting 
officer shall assemble and transmit to the Board through agency channels 
and appeal file, and shall transmit copies thereof to the appellant and 
the Government attorney. The appeal file shall consist of all documents 
pertinent to the appeal, including:
    (1) The decision from which the appeal is taken;
    (2) The contract, including specifications and pertinent amendments, 
plans, and drawings;
    (3) All correspondence between the parties relevant to the appeal; 
including the letter or letters of claim in response to which the 
decision was issued;
    (4) Transcripts of any testimony taken during the course of 
proceedings, and affidavits or statements of any witnesses on the matter 
in dispute made prior to the filing of the notice of appeal with the 
Board; and
    (5) Any additional information considered relevant to the appeal.
    (b) Duties of the Appellant. Within 30 days after receipt of a copy 
of the appeal file assembled by the contracting officer, the appellant 
shall transmit to the Board any documents not contained therein which 
the appellant considers relevant to the appeal, and shall transmit 
copies of such documents to the Government attorney and the contracting 
officer.
    (c) Organization of Appeal File. Documents in the appeal file may be 
originals or legible facsimiles or authenticated copies, and shall be 
arranged in chronological order where practicable, numbered 
sequentially, tabbed, and indexed to identify the contents of the file.
    (d) Lengthy Documents. Upon request by either party, the Board may 
waive the requirement to furnish to the other party copies of bulky, 
lengthy, or out-of-size documents in the appeal file when inclusion 
would be burdensome. At the time a party files with the Board a document 
as to which such a waiver has been granted such party shall notify the 
other party that the document or a copy is available for inspection at 
the offices of the Board or of the party filing same.
    (e) Status of Documents in Appeal File. Documents contained in the 
appeal file are considered, without further action by the parties, as 
part of the record upon which the Board will render its decision. 
However, a party may object, for reasons stated, to consideration of a 
particular document or documents reasonably in advance of hearing, or if 
there is no hearing, of settling the record. If such objection is made 
the Board shall remove the document or documents from the appeal file 
and permit the party offering the document to move its admission as 
evidence either prior to hearing or prior to closing the record if there 
is no hearing, in accordance with Rules 13 and 20.
    (f) Dispensing with Appeal File Requirements. Notwithstanding the 
foregoing, the filing of the Rule 4 (a) and (b) documents may be 
dispensed with by the Board either upon request of the appellant in the 
notice of appeal or thereafter upon stipulation of the parties.

               Rule 5. Dismissal for Lack of Jurisdiction

    Any motion addressed to the jurisdiction of the Board shall be 
promptly filed. Hearing on the motion shall be afforded on application 
of either party. However, the Board may defer its decision on the motion 
pending hearing on both the merits and the motion. The Board shall have 
the right to any time and on its own initiative to raise the issue of 
its jurisdiction to proceed with a particular case, and shall do so by 
an appropriate order, affording the parties an opportunity to be heard 
thereon.

                            Rule 6. Pleadings

    (a) Appellant--Complaint. Except as provided in Rule 12.2(b) and 
Rule 12.3(b), within 30 days after receipt of notice of docketing of the 
appeal, the appellant shall file with the Board an original and two 
copies of a Complaint setting forth simple, concise and direct 
statements of each of its claims. Appellant shall also set forth the 
basis, with appropriate reference to contract provisions, of each claim 
and the dollar amount claimed, to the extent known. This pleading shall 
fulfill the generally recognized requirements of a Complaint, although 
no particular form is required. Upon receipt of the Complaint, the Board 
shall serve a copy of it upon the Government and the contracting 
officer. Should the Complaint not be filed within 30 days, appellant's 
claim and appeal may, if in the opinion of the Board the issues before 
the Board are sufficiently defined, be deemed to set forth its Complaint 
and the Government shall be so notified.
    (b) Government--Answer. Within 30 days from receipt of the 
Complaint, or the aforesaid notice from the Board, the Government shall 
prepare and file with the Board an original and one copy of an Answer 
thereto. The Answer shall set forth simple, concise, and direct 
statements of Government's defenses to each claim asserted by appellant,

[[Page 495]]

including any affirmative defenses available, and shall be served on the 
appellant and the contracting officer. Should the Answer not be filed 
within 30 days, the Board may, in its discretion, enter a general denial 
on behalf of the Government, and the appellant shall be so notified.

                Rule 7. Amendments of Pleadings or Record

    The Board upon its own initiative or upon application by a party may 
order a party to make a more definite statement of the Complaint or 
Answer, or to reply to an Answer. The Board may, in its discretion, and 
within the proper scope of the appeal, permit either party to amend its 
pleading upon conditions fair to both parties. When issues within the 
proper scope of the appeal, but not raised by the pleadings, are tried 
by express or implied consent of the parties, or by permission of the 
Board, they shall be treated in all respects as if they had been raised 
therein. In such instances, motions to amend the pleadings to conform to 
the proof may be entered, but are not required. If evidence is objected 
to at a hearing on the ground that it is not within the issues raised by 
the pleadings, it may be admitted within the proper scope of the appeal, 
provided, however, that the objecting party may be granted a continuance 
if necessary to enable it to meet such evidence.

                        Rule 8. Hearing Election

    After filing of the Government's Answer or notice from the Board 
that it has entered a general denial on behalf of the Government, each 
party shall advise whether it desires a hearing as prescribed in Rules 
17 through 25, or whether it elects to submit its case on the record 
without a hearing, as prescribed in Rule 11.

                        Rule 9. Prehearing Briefs

    Based on an examination of the pleadings, and its determination of 
whether the arguments and authorities addressed to the issues are 
adequately set forth therein, the Board may, in its discretion, require 
the parties to submit prehearing briefs in any case in which a hearing 
has been elected pursuant to Rule 8. If the Board does not require 
prehearing briefs either party may, in its discretion and upon 
appropriate and sufficient notice to the other party, furnish a 
prehearing brief to the Board. In any case where a prehearing brief is 
submitted, it shall be furnished so as to be received by the Board at 
least 15 days prior to the date set for hearing, and a copy shall 
simultaneously be furnished to the other party as previously arranged.

             Rule 10. Prehearing or Presubmission Conference

    (a) Conference. Whether the case is to be submitted pursuant to Rule 
11, or heard pursuant to Rules 17 through 25, the Board may upon its own 
initiative, or upon the application of either party, arrange a telephone 
conference or call upon the parties to appear before an Administrative 
Judge or examiner of the Board of a conference to consider:
    (1) Simplification, clarification, or severing of the issues;
    (2) The possibility of obtaining stipulations, admissions, 
agreements and rulings on admissibility of documents, understandings on 
matters already of record, or similar agreements that will avoid 
unnecessary proof;
    (3) Agreements and rulings to facilitate discovery;
    (4) Limitation of the number of expert witnesses, or avoidance of 
similar cumulative evidence;
    (5) The possibility of agreement disposing of any or all of the 
issues in dispute; and
    (6) Such other matters as may aid in the disposition of the appeal.
    (b) Written Results of Conference. The Administrative Judge or 
examiner of the Board shall make such rulings and orders as may be 
appropriate to achieve settlement by agreement of the parties or to aid 
in the disposition of the appeal. The results of pretrial conferences, 
including any rulings and orders, shall be reduced to writing by the 
Administrative Judge or examiner and this writing shall thereafter 
constitute a part of the record.

                  Rule 11. Submission Without a Hearing

    Either party may elect to waive a hearing and to submit its case 
upon the record before the Board, as settled pursuant to Rule 13. 
Submission of a case without hearing does not receive the parties from 
the necessity of proving the facts supporting their allegations or 
defenses. Affidavits, depositions, admissions, answer to 
interrogatories, and stipulations may be employed to supplement other 
documentary evidence in the Board record. The Board may permit such 
submission to be supplemented by oral argument (transcribed if 
requested), and by briefs arranged in accordance with Rule 23.

  Rule 12. Optional SMALL CLAIMS (EXPEDITED) and ACCELERATED Procedures

    Notwithstanding any other provisions of these Rules of Procedure, 
the SMALL CLAIMS (EXPEDITED) and ACCELERATED procedures shall be 
available solely at the election of the appellant.

[[Page 496]]

Rule 12.1. Elections to Utilize SMALL CLAIMS (EXPEDITED) and ACCELERATED 
                               Procedures

    (a) SMALL CLAIMS (EXPEDITED)--$50,000 or less. In appeals where the 
amount in dispute is $50,000 or less, the appellant may elect to have 
the appeal processed under a SMALL CLAIMS (EXPEDITED) procedure 
requiring decision of the appeal, whenever possible, within 120 days 
after the Board receives written notice of the appellant's election. The 
details of this procedure appear in Rule 12.2.
    (b) ACCELERATED--$100,000 or less. In appeals where the amount in 
dispute is $100,000 or less, the appellant may elect to have the appeal 
processed under an ACCELERATED procedure requiring decision of the 
appeal, whenever possible, within 180 days after the Board receives 
written notice of the appellant's election. The details of this 
procedure appear in Rule 12.3.
    (c) Time for Election. The appellant's election of either the SMALL 
CLAIMS (EXPEDITED) procedure or the ACCELERATED procedure may be made by 
written notice within 60 days after receipt of notice of docketing the 
appeal unless such period is extended by the Board for good cause. The 
election may not be withdrawn except with permission of the Board and 
for good cause.
    (d) Board Determines Amount in Dispute. In deciding whether the 
SMALL CLAIMS (EXPEDITED) procedure or the ACCELERATED procedure is 
applicable to a given appeal, the Board shall determine the amount in 
dispute.

            Rule 12.2. The SMALL CLAIMS (EXPEDITED) Procedure

    (a) Time Periods for Proceedings. In cases proceeding under the 
SMALL CLAIMS (EXPEDITED) procedure, the following time periods shall 
apply: (1) Within ten days from the Government's first receipt from 
either the appellant or the Board of a copy of the appellant's notice of 
election of the SMALL CLAIMS (EXPEDITED) procedure, the Government shall 
send the Board a copy of the contract, the contracting officer's final 
decision, and the appellant's claim letter or letters, if any; remaining 
documents required under Rule 4 shall be submitted in accordance with 
times specified in that rule unless the Board otherwise directs;
    (2) Within 15 days after the Board has acknowledged receipt of 
appellant's notice of election, the assigned Administrative Judge shall 
take the following actions, if feasible, in an informal meeting or a 
telephone conference with both parties: (i) Identify and simplify the 
issues; (ii) establish a simplified procedure appropriate to the 
particular appeal involved; (iii) determine whether the appellant wants 
a hearing, and if so, fix a time and place therefore; (iv) require the 
Government to furnish all the additional documents relevant to the 
appeal, and (v) establish an expedited schedule for resolution of the 
appeal.
    (b) Decisions--120 Days). Pleadings, discovery and other prehearing 
activity will be allowed only as consistent with the requirement to 
conduct the hearing on the date scheduled, or if no hearing is 
scheduled, to close the record on a date that will allow decisions 
within the 120-day limit. The Board, in its discretion, may impose 
shortened time periods for any actions prescribed or allowed under these 
rules, as necessary to enable the Board to decide the appeal within the 
120-day limit, allowing whatever time, up to 30 days, that the Board 
considers necessary for the preparation of the decision after closing 
the record and the filing of briefs, if any.
    (c) Form of Decisions. Written decision by the Board in cases 
processed under the SMALL CLAIMS (EXPEDITED) procedure will be short and 
contain only summary findings of fact and conclusions. Decisions will be 
rendered for the Board by a single Administrative Judge. If there has 
been a hearing, the Administrative Judge presiding at the hearing may, 
in the Judge's discretion, at the conclusion of the hearing and after 
entertaining such oral arguments as deemed appropriate, render on the 
record oral summary findings of fact, conclusions, and a decision of the 
appeal. Whenever such an oral decision is rendered, the Board will 
subsequently furnish the parties a typed copy of such oral decision for 
record and payment purposes and to establish the starting date for the 
period for filing a motion for reconsideration under Rule 29.
    (d) No Precedent--Not Appealable. A decision against the Government 
or the contractor shall have no value as precedent, and in the absence 
of fraud shall be final and conclusive and may not be appealed or set 
aside.

                  Rule 12.3. The ACCELERATED Procedure

    (a) Time Periods for Proceedings. In cases proceeding under the 
ACCELERATED procedure, the parties are encouraged, to the extent 
possible consistent with adequate presentation of their factual and 
legal positions, to waive pleadings, discovery, and briefs. The Board, 
in its discretion, may shorten time periods prescribed elsewhere in 
these Rules, including Rule 4, as necessary to enable the Board to 
decide the appeal within 180 days after the Board has received the 
appellant's notice of election of the ACCELERATED procedure, any may 
reserve 30 days for preparation of the decision.
    (b) Decisions--180 Days. Pleadings, discovery and other prehearing 
activity will be allowed only as consistent with the requirement to 
conduct the hearing on the dates scheduled, or if no hearing is 
scheduled, to close the record on a date that will allow decision within 
the 180-day limit. The Board, in its discretion, may impose shortened 
time

[[Page 497]]

periods for any actions prescribed or allowed under these rules, as 
necessary to enable the Board to decide the appeal within the 180-day 
limit, allowing whatever time, up to 30 days, that the Board considers 
necessary for the preparation of the decision after closing the record 
and the filing of briefs, if any.
    (c) Form of Decisions. Written decisions by the Board in cases 
processed under the ACCELERATED procedure will normally be short and 
contain only summary findings of fact and conclusions. Decisions will be 
rendered for the Board by a single Administrative Judge with the 
concurrence of the Chair or a Vice Chair or other designated 
Administrative Judge, or by a majority among these two and an additional 
designated member in case of disagreement. Alternatively, in cases where 
the amount in dispute is $50,000 or less as to which the ACCELERATED 
procedure has been elected and in which there has been a hearing, the 
single Administrative Judge presiding at the hearing may, with the 
concurrence of both parties, at the conclusion of the hearing and after 
entertaining such oral arguments as deemed appropriate, render on the 
record oral summary findings of fact, conclusions, and a decision of the 
appeal. Whenever such an oral decision is rendered, the Board will 
subsequently furnish the parties a typed copy of such oral decision for 
record and payment purposes and to establish the starting date for the 
period for filing a motion for reconsideration under Rule 29.

         Rule 12.4. Motions for Reconsideration in Rule 12 Cases

    Motions for Reconsideration of cases decided under either the SMALL 
CLAIMS (EXPEDITED) procedure or the ACCELERATED procedure need not be 
decided within the original 120-day or 180-day limit, but all such 
motions shall be processed and decided rapidly so as to fulfill the 
intent of this Rule.

                      Rule 13. Settling the Record

    (a) Components of the Record. The record upon which the Board's 
decision will be rendered consists of the documents furnished under 
Rules 4 and 12, to the extent admitted in evidence, and the following 
items, if any: pleadings, prehearing conference memoranda or orders, 
prehearing briefs, depositions or interrogatories received in evidence, 
admissions, stipulations, transcripts of conferences and hearings, 
hearings exhibits, posthearing briefs, and documents which the Board has 
specifically designated be made a part of the record. The record will, 
at all reasonable times, be available for inspection by the parties at 
the office of the Board.
    (b) Closing Dates for Inclusion of Material. Except as the Board may 
otherwise order in its discretion, no proof shall be received in 
evidence after completion of an oral hearing or, in cases submitted on 
the record, after notification by the Board that the case is ready for 
decision.
    (c) Weight Given to Evidence. The weight to be attached to any 
evidence of record will rest within the sound discretion of the Board. 
The Board may in any case require either party, with appropriate notice 
to the other party, to submit additional evidence on any matter relevant 
to the appeal.

                     Rule 14. Discovery--Depositions

    (a) General Policy and Protective Orders. The parties are encouraged 
to engage in voluntary discovery procedures. In connection with any 
deposition or other discovery procedure, the Board may make any order 
required to protect a party or person from annoyance, embarrassment, or 
undue burden or expense. Those orders may include limitations on the 
scope, method, time and place for discovery, and provisions for 
protecting the secrecy of confidential information or documents.
    (b) When Depositions Permitted. After an appeal has been docketed 
and Complaint filed, the parties may mutually agree, or the Board may, 
upon application of either party, order the taking of testimony of any 
person by deposition upon oral examination or written interrogatories 
before any officer authorized to administer oaths at the place of 
examination, for use as evidence or for purpose of discovery. The 
application for order shall specify whether the purpose of the 
deposition is discovery or for use as evidence.
    (c) Orders on Depositions. The time, place, and manner of taking 
depositions shall be as mutually agreed by the parties, or failing such 
agreement, governed by order of the Board.
    (d) Use as Evidence. No testimony taken by depositions shall be 
considered as part of the evidence in the hearing of an appeal until 
such testimony is offered and received in evidence at such hearing. It 
will not ordinarily be received in evidence if the deponent is present 
and can testify at the hearing. In such instances, however, the 
deposition may be used to contradict or impeach the testimony of the 
deponent given at the hearing. In cases submitted on the record, the 
Board may, in its discretion, receive depositions to supplement the 
record.
    (e) Expenses. Each party shall bear its own expenses associated with 
the taking of any deposition.
    (f) Subpoenas. Where appropriate, a party may request the issuance 
of a subpoena under the provisions of Rule 21.

Rule 15. Interrogatories to Parties, Admission of Facts, and Production 
                       and Inspection of Documents

    After an appeal has been docketed and Complaint filed with the 
Board, a party may

[[Page 498]]

serve on the other party: (a) Written interrogatories to be answered 
separately in writing, signed under oath and answered or objected to 
within 30 days; (b) a request for the admission of specified facts and 
the authenticity of any documents, to be answered or objected to within 
30 days after service (the factual statements and the authenticity of 
the documents to be deemed admitted upon failure of a party to respond 
to the request); and (c) a request for the production, inspection and 
copying of any documents or objects not privileged, which reasonably may 
lead to the discovery of admissible evidence. Any discovery engaged in 
under this Rule shall be subject to the provisions of Rule 14(a) with 
respect to general policy and protective orders and of Rule 33 with 
respect to sanctions.

             Rule 16. Service of Papers Other Than Subpoenas

    (a) Service of Papers. Papers shall be served personally or by 
certified mail, return receipt requested, addressed to the Board or to 
the party upon whom service is to be made. Parties shall furnish three 
copies of Complaints directly to the Board. Parties shall furnish two 
copies of Answers and briefs directly with the Board, with one copy 
being served on the opposing party and the Board's copies containing a 
notation to that effect. The party filing any other paper with the Board 
shall send a copy thereof to the opposing party, noting on the paper 
filed with the Board that a copy has been so furnished. Subpoenas shall 
be served as provided in Rule 21.
    (b) Facsimle Transmissions. Facsimile transmissions to the Board and 
the parties are permitted. Parties are expected to submit their 
facsimile machine numbers with their filings. The Board's facsimile 
number is (202) 720-3059. The filing of a document by facsimile 
transmission occurs upon receipt by the Board of the entire printed 
submission. Parties are specifically cautioned that deadlines for the 
filing of appeals will not be extended merely because the Board's 
facsimile machine is busy or otherwise unavailable at the time the 
filing is due. A document submitted by facsimile should be followed by a 
copy of the document sent by U.S. Postal Service or other delivery 
method.

                                Hearings

                      Rule 17. Where and When Held

    Hearings will be held at such places determined by the Board to best 
serve the interests of the parties and the Board. Hearings will be 
scheduled at the discretion of the Board with due consideration to the 
regular order of appeals, Rule 12 requirements, and other pertinent 
factors. On request on motion by either party and for good cause, the 
Board may, in its discretion, adjust the date of a hearing.

                       Rule 18. Notice of Hearings

    The parties shall be given at least 15 days notice of the time and 
place set for hearings. In scheduled hearings, the Board will consider 
the desires of the parties and the requirement for just and inexpensive 
determination of appeals without unnecessary delay.

                  Rule 19. Unexcused Absence of a Party

    The unexcused absence of a party at the time and place set for 
hearing will not be occasion for delay. In the event of such absence, 
the hearing will proceed and the case will be regarded as submitted by 
the absent party as provided in Rule 11.

           Rule 20. Hearings: Nature; Examination of Witnesses

    (a) Nature of Hearings. Hearings shall be as informal as may be 
reasonable and appropriate under the circumstances. Appellant and the 
Government may offer such evidence as they deem appropriate and as would 
be admissible under the Federal Rules of Evidence. Stipulations of fact 
agreed upon by the parties may be regarded and used as evidence at the 
hearing. The parties may stipulate the testimony that would be given by 
a witness if the witness were present. The Board may require evidence in 
addition to that offered by the parties.
    (b) Examination of Witnesses. Witnesses before the Board will be 
examined orally under oath or affirmation, unless the presiding 
Administrative Judge or examiner shall otherwise order. If the testimony 
of a witness is not given under oath, the Board may advise the witness 
that his statements may be subject to the provisions of 18 U.S.C. 287 
and 1001, and any other provision of law imposing penalties for 
knowingly making false representations in connection with claims against 
the United States or in any matter within the jurisdiction of any 
department or agency thereof.

                   Rule 21. Subpoenas for CDA Appeals

    (a) General. For appeals under Sec. 24.4(a), upon written request of 
either party filed with the recorder, or on the initiative of the 
Administrative Judge to whom a case is assigned, or who is otherwise 
designated by the Chair, such Administrative Judge may issue a subpoena 
requiring:
    (1) Testimony at a deposition--the deposing of a witness in the city 
or county where such witness resides or is employed or transacts 
business in person, or at another location convenient for such witness 
that is specifically determined by the Board;

[[Page 499]]

    (2) Testimony at a hearing--the attendance of a witness for the 
purpose of taking testimony at a hearing; and
    (3) Production of books and papers--in addition to (1) or (2), the 
production by the witness at the deposition or hearing of books and 
papers designated in the subpoena.
    (b) Voluntary Cooperation. Each party is expected (1) to cooperate 
and make available witnesses and evidence under its control as requested 
by the other party, without issuance of a subpoena, and (2) to secure 
voluntary attendance of desired third-party witnesses and production of 
desired third-party books, papers, documents, or tangible things 
whenever possible.
    (c) Requests for Subpoenas.
    (1) A request for a subpoena shall normally be filed at least:
    (i) 15 days before a scheduled deposition where the attendance of a 
witness at a deposition is sought;
    (ii) 30 days before a scheduled hearing where the attendance of a 
witness at a hearing is sought.
    In its discretion the Board may honor requests for subpoenas not 
made within these time limitations.
    (2) A request for a subpoena shall state the reasonable scope and 
general relevance to the case of the testimony and of any books and 
papers sought.
    (d) Requests to Quash or Modify. Upon written request by the person 
subpoenaed or by a party, made within 10 days after service but in any 
event not later than the time specified in the subpoena for compliance, 
the Board may (1) quash or modify the subpoena if it is unreasonable and 
oppressive or for other good cause shown, or (2) require the person in 
whose behalf the subpoena was issued to advance the reasonable cost of 
producing subpoenaed books and papers. Where circumstances require, the 
Board may act upon such a request at any time after a copy has been 
served upon the opposing party.
    (e) Form; Issuance.
    (1) Every subpoena shall state the name of the Board and the title 
of the appeal, and shall command each person to whom it is directed to 
attend and give testimony, and if appropriate, to produce specified 
books and papers at a time and place therein specified. In issuing a 
subpoena to a requesting party, the Administrative Judge shall sign the 
subpoena and may, in the Judge's discretion, enter the name of the 
witness and otherwise leave it blank. The party to whom the subpoena is 
issued shall complete the subpoena before service.
    (2) Where the witness is located in a foreign country, a letter 
rogatory or subpoena may be issued and served under the circumstances 
and in the manner provided in 28 U.S.C. 1781-1784.
    (f) Service.
    (1) The party requesting issuance of a subpoena shall arrange for 
service.
    (2) A subpoena requiring the attendance of a witness at a deposition 
or hearing may be served at any place. A subpoena may be served by a 
United States marshal or deputy marshal, or by any other person who is 
not a party and not less than 18 years of age. Service of a subpoena 
upon a person named therein shall be made by personally delivering a 
copy to that person and tendering the fees for one day's attendance and 
the mileage provided by 28 U.S.C. 1821 or other applicable law; however, 
where the subpoena is issued on behalf of the Government, money payments 
need not be tendered in advance of attendance.
    (3) The party at whose instance a subpoena is issued shall be 
responsible for the payment of fees and mileage of the witness and of 
the officer who serves the subpoena. The failure to make payment of such 
charges on demand may be deemed by the Board as sufficient ground for 
striking the testimony of the witness and the evidence the witness has 
produced.
    (g) Contumacy or Refusal to Obey a Subpoena. In case of contumacy or 
refusal to obey a subpoena by a person who resides, is found, or 
transacts business within the jurisdiction of a United States District 
Court, the Board will apply to the Court through the Attorney General of 
the United States for an order requiring the person to appear before the 
Board or a member thereof to give testimony or produce evidence or both. 
Any failure of any such person to obey the order of the Court may be 
punished by the Court as a contempt thereof.

                Rule 21.1. Subpoenas for Non-CDA Appeals

    For appeals under Secs. 24.4(b), (c), and (d), the Chair has 
authority by delegation from the Secretary to request the appropriate 
United States Attorney to apply to the appropriate United States 
District Court for the issuance of subpoenas pursuant to 5 U.S.C. 304.

                        Rule 22. Copies of Papers

    When books, records, papers, or documents have been received in 
evidence, a true copy thereof or of such part thereof as may be material 
or relevant may be substituted therefor, during the hearing or at the 
conclusion thereof.

                       Rule 23. Posthearing Briefs

    Posthearing briefs may be submitted upon such terms as may be agreed 
upon by the parties and the presiding Administrative Judge or examiner 
at the conclusion of the hearing.

[[Page 500]]

                   Rule 24. Transcript of Proceedings

    Testimony and argument at hearings shall be reported verbatim, 
unless the Board otherwise orders. Waiver of transcript may be 
especially suitable for hearings under Rule 12.2. Transcripts or copies 
of the proceedings shall be made available by the Board to the 
Government attorney. Appellant may order transcripts of the proceedings 
from the contract reporter at the hearing.

                     Rule 25. Withdrawal of Exhibits

    After a decision has become final, the Board may, upon request and 
after notice to the other party, in its discretion permit the withdrawal 
of original exhibits, or any part thereof, by the party entitled 
thereto. The substitution of true copies of exhibits or any part thereof 
may be required by the Board in its discretion as a condition of 
granting permission for such withdrawal.

                             Representation

                         Rule 26. The Appellant

    An individual appellant may appear before the Board in person; a 
corporation by one of its officers; and a partnership or joint venture 
by one of its members; or any of these by an attorney at law duly 
licensed in any state, commonwealth, territory, the District of 
Columbia, or in a foreign country. An attorney representing an appellant 
shall file a written notice of appearance with the Board.

                         Rule 27. The Government

    Government counsel may, in accordance with their authority, 
represent the interest of the Government before the Board. They shall 
file notices of appearance with the Board, and notice thereof will be 
given appellant or appellant's attorney in the form specified by the 
Board from time to time. Whenever appellant and the Government counsel 
are in agreement as to disposition of the controversy, the Board may 
suspend further processing of the appeal. However, if the Board is 
advised thereafter by either party that the controversy has not been 
disposed of by agreement, the case shall be restored to the Board's 
calendar without loss of position.

                              Miscellaneous

                           Rule 28. Decisions

    Decisions of the Board will be made in writing and authenticated 
copies of the decision will be forwarded simultaneously to both parties. 
The rules of the Board and all final orders and decisions (except those 
required for good cause to be held confidential and not cited as 
precedents) shall be open for public inspection at the offices of the 
Board in Washington, D.C. Decisions of the Board will be made solely 
upon the record, as described in Rule 13.

                   Rule 29. Motion for Reconsideration

    A motion for reconsideration may be filed by either party. It shall 
set forth specifically the grounds relied upon to sustain the motion. 
The motion shall be filed within 30 days from the date of the receipt of 
a copy of the decision of the Board by the party filing the motion.

                  Rule 30. Dismissal Without Prejudice

    In certain cases, appeals docketed before the Board are required to 
be placed in a suspense status and the Board is unable to proceed with 
disposition thereof for reasons not within the control of the Board. 
Where the suspension has continued, or may continue, for an inordinate 
length of time, the Board may, in its discretion, dismiss such appeals 
from its docket without prejudice to their restoration when the cause 
for suspension has been removed. Unless either party or the Board acts 
within three years, or such shorter time as ordered by the Board, to 
reinstate any appeal dismissed without prejudice, the dismissal shall be 
deemed with prejudice.

          Rule 31. Dismissal for Failure to Prosecute or Defend

    Whenever a record discloses the failure of either party to file 
documents required by these rules, respond to notices of correspondence 
from the Board, comply with orders of the Board or otherwise indicates 
an intention not to continue the prosecution of defense of an appeal, 
the Board may, in the case of a default by the appellant, issue an order 
to show cause why the appeal should not be dismissed or, in the case of 
a default by the Government, issue an order to show cause why the Board 
should not act thereon pursuant to Rule 33. If good cause is not shown, 
the Board may take appropriate action.

                       Rule 32. Remand From Court

    Whenever any court remands a case to the Board for further 
proceedings, each of the parties shall, within 20 days of such remand, 
submit a report to the Board recommending procedures to be followed so 
as to comply with the court's order. The Board shall consider the 
reports and enter special orders governing the handling of the remanded 
case. To the extent the court's directive and tie limitations permit, 
such orders shall conform to these rules.

                           Rule 33. Sanctions

    If any party fails or refuses to obey an order issued by the Board, 
the Board may then make such order as it considers necessary to the just 
and expeditious conduct of the appeal.

[[Page 501]]

                 Rule 34. Alternative Dispute Resolution

    Upon joint motion or with the consent of both parties, the Board may 
permit the use of methods of Alternative Dispute Resolution (ADR). The 
Board shall notify parties of the availability of ADR methods by 
transmitting information with its notice of docketing (Rule 3).

 Rule 35. Application for Attorneys' Fees and Expenses Under the Equal 
                          Access to Justice Act

    The Equal Access to Justice Act (EAJA), 5 U.S.C. 504, allows payment 
of attorneys' fees and expenses to certain prevailing parties in 
administrative adjudications with the Government unless the Government's 
position was substantially justified. Rules governing applications for 
fees and expenses under EAJA can be found in 7 CFR 1.180 et seq.



PART 25--RURAL EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES--Table of Contents




                      Subpart A--General Provisions

25.1  Applicability and scope.
25.2  Objective and purpose.
25.3  Definitions.
25.4  Secretarial review and designation.
25.5  Waivers.

                      Subpart B--Area Requirements

25.100  Eligibility requirements and data usage.
25.101  Data utilized for eligibility determinations.
25.102  Tests of pervasive poverty, unemployment and general distress.
25.103  Poverty rate.

                     Subpart C--Nomination Procedure

25.200  Nominations by State and local governments.
25.201  Evaluating the strategic plan.
25.202  Submission of nominations for designation.

                     Subpart D--Designation Process

25.300  USDA action and review of nominations for designation.
25.301  Selection factors for designation of nominated rural areas.
25.302  Number of Rural Empowerment Zones and Enterprise Communities.

                Subpart E--Post-Designation Requirements

25.400  Reporting.
25.401  Periodic performance reviews.
25.402  Validation of designation.
25.403  Revocation of designation.

                        Subpart F--Special Rules

25.500  Indian reservations.
25.501  Governments.
25.502  Nominations by economic development corporations.
25.503  Use of census data.
25.504  Rural areas.

    Authority: 5 U.S.C. 301; 26 U.S.C. 1391 et seq.

    Source: 60 FR 6950, Feb. 6, 1995, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 25.1  Applicability and scope.

    (a) Applicability. This part establishes policies and procedures 
applicable to rural Empowerment Zones and Enterprise Communities, 
authorized under the Omnibus Budget Reconciliation Act of 1993, title 
XIII, subchapter C, part I (Pub. L. 103-66, approved August 10, 1993), 
which amended the Internal Revenue Code by adding a new subchapter U, 
relating to the designation and treatment of Empowerment Zones and 
Enterprise Communities.
    (b) Scope. This part contains provisions relating to area 
requirements, the nomination process for rural Empowerment Zones and 
rural Enterprise Communities, and the designation of these Zones and 
Communities by USDA. Provisions dealing with the nominations and 
designation of urban Empowerment Zones and Enterprise Communities are 
promulgated by the United States Department of Housing and Urban 
Development (HUD). USDA and HUD will consult in all cases in which 
nominated areas possess both rural and urban characteristics and will 
utilize a flexible approach in determining the appropriate designation.



Sec. 25.2  Objective and purpose.

    The purpose of this part is to provide for the establishment of 
Empowerment Zones and Enterprise Communities in rural areas, to 
stimulate the creation of new jobs, particularly for the disadvantaged 
and long-term unemployed, and to promote revitalization of economically 
distressed areas, primarily by providing or encouraging:
    (a) Coordination of economic, human, community, and physical 
development plans and related activities at the local level;

[[Page 502]]

    (b) Local partnerships fully involving affected communities and 
local institutions and organizations in developing and implementing a 
strategic plan for any nominated rural Empowerment Zone or Enterprise 
Community;
    (c) Tax incentives and credits; and
    (d) Empowerment Zone/Enterprise Community Social Service Block Grant 
(EZ/EC SSBG) funds.



Sec. 25.3  Definitions.

    As used in this part--
    Applicant means the lead entity that has prepared and will implement 
the community's strategic plan, pursuant to the provisions of 
Sec. 25.200(c) of this part, for comprehensive economic, human, 
community, and physical development within the area; such an entity may 
include, but is not limited to, state governments, local governments, 
regional planning agencies, non-profit organizations, community-based 
organizations, or a partnership of community members and other entities.
    Designation means the process by which the Secretary designates 
rural areas as Empowerment Zones or Enterprise Communities eligible for 
tax incentives and credits established by subchapter U of the Internal 
Revenue Code (26 U.S.C. 1391 et seq.), EZ/EC SSBGS as established by the 
Department of Health and Human Services (HHS), and for consideration for 
programs of Federal assistance.
    Empowerment Zone means a rural area so designated by the Secretary 
pursuant to this part. Up to three such zones may be designated.
    Enterprise Community means a rural area so designated by the 
Secretary pursuant to this part. Up to 30 such communities may be 
designated.
    EZ/EC SSBG Funds means grants made by the Secretary of HHS to States 
containing Empowerment Zones and Enterprise Communities whose strategic 
plans are qualified plans as defined in section 13761 of the Omnibus 
Budget Reconciliation Act of 1993.
    Indian reservation means a reservation as defined in section 3(d) of 
the Indian Financing Act of 1974 (25 U.S.C. 1452(d)) or section 4(10) of 
the Indian Child Welfare Act of 1978 (25 U.S.C. 1903(10)).
    Local government means any county, city, town, township, parish, 
village, or other general purpose political subdivision of a State, and 
any combination of these political subdivisions which is recognized by 
the Secretary.
    Nominated area means an area which is nominated by one or more local 
governments and the State or States in which it is located for 
designation pursuant to this part.
    Population census tract means a census tract, or, if census tracts 
are not defined for the area, a block numbering area (BNA).
    Poverty means the number of persons listed as being in poverty in 
the 1990 Census.
    Revocation of designation means the process by which the Secretary 
may revoke the designation of an area as an Empowerment Zone or 
Enterprise Community pursuant to Sec. 25.403 of this part.
    Rural area means any area defined pursuant to Sec. 25.504 of this 
part.
    Secretary means the Secretary of Agriculture.
    State means any State in the United States.
    Strategic plan means a strategy developed by the applicant, with the 
participation and commitment of local governments, State government(s), 
private sector, community members and others, pursuant to the provisions 
of Sec. 25.200(c) of this part. The plan must include written 
commitments from the local governments and State(s) that they will 
adhere to the strategy.
    USDA means the U.S. Department of Agriculture.



Sec. 25.4  Secretarial review and designation.

    (a) Designation. The Secretary will review applications for the 
designation of nominated rural areas to determine the effectiveness of 
the strategic plans submitted by applicants in accordance with 
Sec. 25.200 of this part. The Secretary will designate up to three rural 
Empowerment Zones and up to 30 rural Enterprise Communities.
    (b) Period of designation. The designation of a rural area as an 
Empowerment Zone or Enterprise Community shall remain in full effect 
during the period beginning on the date of

[[Page 503]]

designation and ending on the earliest of:
    (1) The close of the tenth calendar year beginning or after the date 
of designation;
    (2) The termination date designated by the State and local 
governments in their application for nomination; or
    (3) The date the Secretary revokes or modifies the designation, in 
accordance with Sec. 25.402 or Sec. 25.403 of this part.



Sec. 25.5  Waivers.

    The Secretary may waive any provision of this part in any particular 
case subject only to statutory limitations, for good cause, where it is 
determined that application of the requirement would produce a result 
adverse to the purpose and objectives of this part.



                      Subpart B--Area Requirements



Sec. 25.100  Eligibility requirements and data usage.

    Eligibility Criteria. A nominated rural area may be eligible for 
designation pursuant to this part only if the area:
    (a) Has a maximum population of 30,000;
    (b) Is one of pervasive poverty, unemployment, and general distress, 
as described in Sec. 25.102 of this part;
    (c) Does not exceed one thousand square miles in total land area;
    (d) Be located entirely within no more than three contiguous States; 
if it is located in more than one State, the area must have one 
continuous boundary; if located in only one State, the area may consist 
of up to three noncontiguous parcels;
    (e) Is located entirely within the jurisdiction of the unit or units 
of general local government making the nomination;
    (f) Does not include any portion of a central business district, as 
this term is used in the most recent Census of Retail Trade, unless the 
individual poverty rate of each population census tract in the district 
is not less than 35 percent for an Empowerment Zone and 30 percent for 
an Enterprise Community; and
    (g) Does not include any area within an Indian reservation.



Sec. 25.101  Data utilized for eligibility determinations.

    (a) Source of data. The data to be employed in determining 
eligibility pursuant to the criteria described in Sec. 25.102 of this 
part shall be based on the 1990 Census, and from information published 
by the Bureau of Census and the Bureau of Labor Statistics. The data 
shall be comparable in point or period of time and methodology employed.
    (b) Use of statistics on boundaries. The boundary of a rural area 
nominated for designation as an Empowerment Zone or Enterprise Community 
must coincide with the boundaries of census tracts, or, where tracts are 
not defined, with block numbering areas.



Sec. 25.102  Tests of pervasive poverty, unemployment and general distress.

    (a) Pervasive poverty. Conditions of poverty must be reasonably 
distributed throughout the entire nominated area. The degree of poverty 
shall be demonstrated by citing available statistics on low-income 
population and levels of public assistance. Poverty is demonstrated by 
poverty data from the 1990 census.
    (b) Unemployment. The degree of unemployment shall be demonstrated 
by the provision of information on the number of persons unemployed, 
underemployed (those with only a seasonal or part-time job) or 
discouraged workers (those capable of working but who have dropped out 
of the labor market--hence are not counted as unemployed), increase in 
unemployment rate, job loss, plant or military base closing, or other 
relevant unemployment indicators having a direct effect on the nominated 
area.
    (c) General distress. General distress shall be evidenced by 
describing adverse conditions within the nominated area other than those 
of pervasive poverty and unemployment. Below average or decline in per 
capita income, earnings per worker, per capita property tax base, 
average years of school completed; outmitigration and population decline 
from 1980-1990, and a high or rising incidence of crime, narcotics use, 
abandoned housing, deteriorated infrastructure, school dropouts and 
illiteracy are examples of appropriate

[[Page 504]]

indicators of general distress. The data and methods used to produce 
such indicators that are used to describe general distress must all be 
stated.



Sec. 25.103  Poverty rate.

    (a) General. Eligibility of an area on the basis of poverty shall be 
established in accordance with the following criteria:
    (1) In each census tract within a nominated area, the poverty rate 
shall be not less than 20 percent; and
    (2) For at least 90 percent of the population census tracts within 
the nominated area, the poverty rate shall not be less than 25 percent; 
and
    (3) For at least 50 percent of the population census tracts within 
the nominated area, the poverty rate shall be not less than 35 percent.
    (b) Special rules relating to the determination of poverty rate. (1) 
Census tracts with no population. Census tracts with no population shall 
be treated as having a poverty rate that meets the standards of 
paragraphs (a)(1) and (a)(2) of this section, but shall be treated as 
having a zero poverty rate for purposes of applying paragraph (a)(3) of 
this section.
    (2) Census tracts with populations of less than 2,000. A population 
census tract with a population of less than 2,000 shall be treated as 
having a poverty rate that meets the requirements of paragraphs (a)(1) 
and (a)(2) of this section if more than 75 percent of the tract is zone 
for commercial or industrial use.
    (3) Adjustment of poverty rates for Enterprise Communities. For 
Enterprise Communities only, the Secretary has the discretion to reduce 
by 5 percentage points one of the following thresholds for not more than 
10 percent of the census tracts, or, if fewer, five population census 
tracts in the nominated area:
    (i) The 20 percent threshold in paragraph (a)(1) of this section;
    (ii) The 25 percent threshold in paragraph (a)(2) of this section; 
and
    (iii) The 35 percent threshold in paragraph (a)(3) of this section;

Provided that, the Secretary may in the alternative reduce the 35 
percent threshold by 10 percentage points for three population census 
tracts.
    (4) Rounding up of percentages. In making the calculations required 
by this section, the Secretary shall round all fractional percentages of 
one-half percentage point or more up to the next highest whole 
percentage point figure.
    (c) Noncontiguous areas. There can be no more than 3 noncontiguous 
areas if the nominated area is located within one state; noncontiguous 
areas are not allowed in the multistate area. Each such parcel must 
separately meet the poverty criteria set forth in this section.
    (d) Areas not within census tracts. In the case of an area that does 
not have population census tracts, the block numbering area shall be 
used for purposes of determining poverty rates.



                     Subpart C--Nomination Procedure



Sec. 25.200  Nominations by State and local governments.

    (a) Nomination criteria. One or more local governments and the State 
or States in which an area is located must nominate such area for 
designation as an Empowerment Zone or Enterprise Community, if:
    (1) The rural area meets the requirements for eligibility described 
in Sec. 25.100 and Sec. 25.103 of this part;
    (2) The rural area is entirely within the jurisdiction of the 
nominating State or States and local government(s); such governments 
must have the authority to nominate the area for designation and provide 
written assurances satisfactory to the Secretary that the strategic plan 
described in paragraph (c) of this section will be implemented;
    (3) All information furnished by the nominating State(s) and local 
government(s) is determined by the Secretary to be reasonably accurate; 
and
    (4) The State(s) and local government(s) certify that no portion of 
the area nominated is already included in an Empowerment Zone or 
Enterprise Community under this Act or in an area otherwise nominated to 
be designated under this section.
    (b) Nomination for designation. No rural area may be considered for 
designation pursuant to subpart D of this

[[Page 505]]

part unless the application for designation:
    (1) Demonstrates that the nominated rural area satisfies the 
eligibility criteria set forth at Sec. 25.100 of this part;
    (2) Includes a strategic plan, as described in paragraph (c) of this 
section; and
    (3) Includes such other information as may be required by USDA in a 
Notice Inviting Applications, to be published in the Federal Register.
    (c) Strategic plan. Each application for designation must be 
accompanied by a strategic plan, which must be developed in accordance 
with four key principles that will be utilized to evaluate the plan. 
These key principles are:
    (1) Economic opportunity, including job creation within the 
community and throughout the region, entrepreneurial initiatives, small 
business expansion, and training for jobs that offer upward mobility;
    (2) Sustainable community development, to advance the creation of 
livable and vibrant communities through comprehensive approaches that 
coordinate economic, physical, environmental, community and human 
development;
    (3) Community-based partnerships, involving the participation of all 
segments of the community, including the political and governmental 
leadership, community groups, health and social service groups, 
environmental groups, religious organizations, the private and non-
profit sectors, centers of learning, and other community institutions 
and individual citizens; and
    (4) Strategic vision for change, which identifies what the community 
will become and a strategic map for revitalization. The vision should 
build on assets and coordinate a response to community needs in a 
comprehensive fashion. It should also set goals and performance 
benchmarks for measuring progress and establish a framework for 
evaluating and adjusting the revitalization plan.
    (d) Elements of strategic plan. The strategic plan should:
    (1) Indicate and briefly describe the specific groups, 
organizations, and individuals participating in its production, and 
describe the history of these groups in the community;
    (2) Explain how participants were selected and provide evidence that 
the participants, taken as a whole, are broadly representative of the 
entire community;
    (3) Describe the role of the participants in the creation and 
development of the plan and indicate how they will participate in its 
implementation;
    (4) Identify two or three topics addressed in the plan that caused 
the most serious disagreements among participants and describe how those 
disagreements were resolved;
    (5) Explain how the community participated in choosing the area to 
be nominated and why the area was nominated;
    (6) Provide evidence that key participants have the capacity to 
implement the plan;
    (7) Provide a brief explanation of the community's vision for 
revitalizing the area;
    (8) Explain how the vision creates economic opportunity, encourages 
self-sufficiency and promotes community development;
    (9) Identify key community goals and the barriers that restrict the 
community from achieving such goals, including a description of poverty 
and general distress, barriers to economic opportunity and development, 
and barriers to human development;
    (10) Discuss how the vision is related to the assets and needs of 
the area as well as to the surrounding community;
    (11) Describe the ways in which the community's approaches to 
economic development, social/human services, transportation, housing, 
community development, public safety, drug abuse prevention and 
educational and environmental concerns will be addressed in a 
coordinated fashion; and explain how these linkages support the 
community's vision;
    (12) Indicate how all EZ/EC SSBG funds for the designated 
Empowerment Zone or Enterprise Community will be utilized.
    (i) In doing so, the strategic plan shall provide the following 
information:
    (A) A commitment by the applicant, as well as by the nominating 
state-

[[Page 506]]

chartered economic development corporation or State government(s), and 
local government(s), that the EZ/EC SSBG funds will be used to 
supplement, not replace, other Federal or non-Federal funds available 
for financing services or activities which can be used to achieve or 
maintain the goals outlined in paragraph (d)(12)(ii) of this section;
    (B) a description of the entities that will administer the EZ/EC 
SSBG funds;
    (C) a certification by such entities that they will provide periodic 
reports on the use of the EZ/EC SSBG funds; and
    (D) a detailed description of all the activities to be financed with 
the EZ/EC SSBG funds and how all such funds will be allocated.
    (ii) The EZ/EC SSBG funds must be used to achieve or maintain the 
following goals through undertaking one of the below specified program 
options. The goals may be achieved by undertaking one or more of the 
following program options:
    (A) The goal of economic self-support to prevent, reduce or 
eliminate dependencies, through one of the following program options:
    (1) Funding community and economic development services focused on 
disadvantaged adults and youths, including skills training, 
transportation services and job, housing, business, and financial 
management counseling;
    (2) Supporting programs that promote home ownership, education or 
other routes to economic independence for low-income families, youths, 
and other individuals;
    (3) Assisting in the provision of emergency and transitional shelter 
for disadvantaged families, youths, and other individuals;
    (B) The goal of self-sufficiency, including reduction or prevention 
of dependencies, through one of the following program options:
    (1) Providing assistance to non-profit organizations and/or 
community and junior colleges that provide disadvantaged individuals 
with opportunities for short-term training courses in entrepreneurial, 
self employment, and other skills that promote individual self-
sufficiency, and the interest of the community;
    (2) Funding programs to provide training and employment for 
disadvantaged adults and youths in construction, rehabilitation or 
improvement of affordable housing, public infrastructure and community 
facilities; and,
    (C) The goal of prevention or amelioration of the neglect, abuse, or 
exploitation of children and/or adults unable to protect themselves; 
and, where appropriate, the goal of preservation or rehabilitation of 
families, through one or more of the following program options:
    (1) Providing support for residential or non-residential drug and 
alcohol prevention and treatment programs that offer comprehensive 
services for pregnant women, and mothers, and their children;
    (2) Establishing programs that provide activities after school 
hours, including keeping school buildings open during evenings and 
weekends for mentor and study programs.
    (iii) Designated Empowerment Zones and Enterprise Communities may 
work to achieve or maintain the goals outlined in paragraphs 
(d)(12)(ii)(A) and (B) of this section by using EZ/EC SSBG funds to 
capitalize revolving or micro-enterprise loan funds which benefit low-
income residents of the designated Empowerment Zones or Enterprise 
Communities. Similarly, grantees may work to achieve or maintain the 
goals outlined in paragraphs (d)(12)(ii)(A) and (B) of this section by 
using the EZ/EC SSBG funds to create jobs and promote economic 
opportunity for low-income families and individuals through matching 
grants, loans, or investments in community development financial 
institutions.
    (iv) If the applicant intends to use the EZ/EC SSBG funds for 
program options not included in paragraph (d)(12) of this section, the 
strategic plan must indicate how the proposed activities meet the goals 
set forth in paragraph (d)(12)(ii)(B) of this section, and the reasons 
the any approved program options were not pursued.
    (v) To the extent that the EZ/EC SSBG funds are used for the program 
options included in paragraph (d)(12)(ii)(B) of this section, the 
applicant may use EZ/EC SSBG funds for the following activities, in 
addition to

[[Page 507]]

those activities permitted by Sec. 2005 of the Social Security Act (42 
USC 1397d):
    (A) To purchase or improve land or facilities;
    (B) To make cash payments to individuals for subsistence or room and 
board;
    (C) To make wage payments to individuals as a social service;
    (D) To make cash payments for medical care; and
    (E) To provide social services to institutionalized persons.
    (vi) The State must obligate the EZ/EC SSBG funds to in accordance 
with the strategic plan within 2 years from the date of payment to the 
state, or remit the unobligated funds to the Secretary of Health and 
Human Services (HHS).
    (vii) The Strategic Plan must indicate how the EZ/EC SSBG funds will 
be invested and used for the 10 year period of designation. The EZ/EC 
SSBG funds may be used to promote economic independence for low-income 
residents, such as capitalizing revolving or micro-enterprise loan funds 
for the benefit of residents. The EZ/EC SSBG funds may also be used to 
create jobs and promote economic opportunity for low-income families and 
individuals through matching grants, loans, or investments in community 
development financial institutions.
    (viii) The strategic plan must indicate how all the EZ/EC SSBG funds 
will be used or invested for the period of designation of the 
Empowerment Zone or Enterprise Community.
    (ix) The strategic plan must provide for periodic reporting of 
information by the relevant State.
    (13) Indicate how tax benefits for designated zones and communities, 
State and local resources, existing Federal resources available to the 
locality and additional Federal resources believed necessary to 
implement the strategic plan will be utilized within the Empowerment 
Zone or Enterprise Community;
    (14) Indicate a level of commitment necessary to ensure that these 
resources will be available to the area upon designation;
    (15) Identify the Federal resources applied for or for which 
applications are planned;
    (16) Identify private resources and support, including assistance 
from businesses, non-profit organizations, and foundations, which are 
available to be leverage with public resources; and provide assurances 
that these resources will be made available to the area upon 
designation.
    (17) Identify changes requested in Federal rules and regulations 
necessary to implement the plan, including specific paperwork or other 
Federal program requirements that must be altered to permit effective 
implementation of the strategic plan;
    (18) Identify specific regulatory and other impediments to 
implementing the strategic plan for which waivers are requested, with 
appropriate citations and an indication whether waivers can be 
accomplished administratively or require statutory changes;
    (19) Demonstrate how State and local governments will reinvent 
themselves to help implement the plan, by identifying changes that will 
be made in State and local organizations, processes and procedures, 
including laws and ordinances;
    (20) Explain how different agencies in State and local governments 
will work together in new responsive ways to implement the strategic 
plan;
    (21) Identify the specific tasks necessary to implement the plan;
    (22) Described the partnerships that will be established to carry 
out the plan;
    (23) Explain how the plan will be regularly revised to reflect new 
information and opportunities; and
    (24) Identify baselines, benchmarks and goals that will be used in 
evaluating performance in implementing the plan.
    (e) Prohibition against business relocation. The strategic plan may 
not include any action to assist any establishment in relocating from an 
area outside the nominated area to the nominated area, except that 
assistance for the expansion of an existing business entity through the 
establishment of a new branch, affiliate, or subsidiary is permitted, 
if:
    (1) The establishment of a new branch affiliate or subsidiary will 
not result in a decrease in employment in the area of original location 
or in any

[[Page 508]]

other area where the existing business entity conducts business 
operations, and
    (2) There is no reason to believe that the new branch, affiliate, or 
subsidiary is being established with the intention of closing down the 
operations of the existing business entity conducts business operations.
    (f) Implementation of strategic plan. The strategic plan may be 
implemented by the State government(s), local governments, regional 
planning agencies, non-profit organizations, community-based 
organizations, and/or other nongovernmental entities. Activities 
included in the plan may be funded from any source, Federal, State, 
local, or private, which agrees to provide assistance to the nominated 
area.
    (g) Elements of the strategic plan. A strategic plan may include, 
but is not limited to, activities that address:
    (1) Economic problems, through measures designed to create 
employment opportunities; support business startup or expansion; or 
development of community institutions;
    (2) Human concerns, through the provision of social services, such 
as rehabilitation and treatment programs or the provision of training, 
education or other services within the affected areas;
    (3) Community needs, such as the expansion of housing stock and 
homeownership opportunities, efforts to reduce homelessness, to promote 
fair housing and equal opportunity, to reduce and prevent crime and 
improve security in the area; and
    (4) Physical improvements, such as the provision or improvement of 
public infrastructure, or the provision or improvement of recreational, 
transportation, or other public services within the affected area.



Sec. 25.201  Evaluating the strategic plan.

    The strategic plan will be evaluated for effectiveness as part of 
the designation process for nominated rural areas described in 
Sec. 25.301 of this part. On the basis of this evaluation, USDA may 
request additional information pertaining to the plan and the proposed 
area and may, as part of that request, suggest modifications to the 
plan, proposed area, or term that would enhance its effectiveness. The 
effectiveness of the strategic plan will be determined in accordance 
with the four key principles set forth in Sec. 25.200(c) of this part. 
USDA will review each plan submitted in terms of the four equally 
weighted key principles, and of such other elements of these key 
principles as are appropriate to address the opportunities and problems 
of each nominated area, which may include:
    (a) Economic opportunity. (1) The extent to which businesses, jobs, 
and entrepreneurship will increase within the zone or community;
    (2) The extent to which residents will achieve a real economic stake 
in the zone or community;
    (3) The extent to which residents will be employed in the process of 
implementing the plan and in all phases of economic and community 
development;
    (4) The extent to which residents will be linked with employers and 
jobs throughout the entire area and the way in which residents will 
receive training, assistance, and family support to become economically 
self-sufficient;
    (5) The extent to which economic revitalization in the zone or 
community interrelates with the broader regional economies; and
    (6) The extent to which lending and investment opportunities will 
increase within the zone or community through the establishment of 
mechanisms to encourage community investment and to create new economic 
growth.
    (b) Sustainable community development. (1) Consolidated planning. 
The extent to which the plan is part of a larger strategic community 
development plan for the nominating localities and is consistent with 
broader regional development strategies;
    (2) Public safety. The extent to which strategies such as community 
policing will be used to guarantee the basic safety and security of 
persons and property within the zone or community;
    (3) Amenities and design. The extent to which the plan considers 
issues of design and amenities that will foster a sustainable community, 
such as open spaces, recreational areas, cultural institutions, 
transportation, energy, land

[[Page 509]]

and water uses, waste management, environmental protection and the 
vitality of life of the community;
    (4) Sustainable development. The extent to which economic 
development will be achieved in a manner consistent that protects pubic 
health and the environment;
    (5) Supporting families. The extent to which the strengths of 
families will be supported so that parents can succeed at work, provide 
nurture in the home, and contribute to the life of the community;
    (6) Youth development. The extent to which the development of 
children, youth, and young adults into economically productive and 
socially responsible adults will be promoted, and the extent to which 
young people will be provided with the opportunity to take 
responsibility for learning the skills, discipline, attitude, and 
initiative to make work rewarding.
    (7) Education goals. The extent to which schools, religious 
organizations, non-profit organizations, for-profit enterprises, local 
governments and families will work cooperatively to provide all 
individuals with he fundamental skills and knowledge they need to become 
active participants and contributors to their community, and to succeed 
in an increasingly competitive global economy;
    (8) Affordable housing. The extent to which a housing component, 
providing for adequate safe housing and ensuring that all residents will 
have equal access to that housing is contained in the strategic plan;
    (9) Drug abuse. The extent to which the plan addresses levels of 
drug abuse and drug-related activity through the expansion of drug 
treatment services, drug law enforcement initiatives, and community-
based drug abuse education programs; and
    (10) Equal opportunity. The extent to which the plan offers an 
opportunity for diverse residents to participate in the rewards and 
responsibilities of work and service. The extent to which the plan 
ensures that no business within a nominated zone or community will 
directly or through contractual or other arrangements subject a person 
to discrimination on the basis of race, color, national origin, gender, 
handicap or age in its employment practices, including recruitment, 
recruitment advertising, employment, layoff, termination, upgrading, 
demotion, transfer, rates of pay or the forms of compensation, or use of 
facilities. Applicants must comply with the provisions of Title VI of 
the Civil Rights Act of 1964, section 504 of the Rehabilitation Act of 
1973, and the Age Discrimination Act of 1975, as implemented by USDA.
    (c) Community-based partnerships. (1) Community partners. The extent 
to which residents of the strategic plan and their commitment to 
implementing it. The extent to which community-based organizations in 
the nominated area have participated in the development of the nominated 
area have participated in the development of the plan, and their record 
of success measured by their achievements and support for undertakings 
within the nominated area:
    (2) Private and non-profit organizations as partners. The extent to 
which partnership arrangements include commitments from private and non-
profit organizations, including corporations, utilities, banks and other 
financial institutions, and educational institutions supporting 
implementation of the strategic plan;
    (3) State and local government partners. The extent to which 
State(s) and local governments are committed to providing support to the 
strategic plan, including their commitment to ``reinventing'' their 
roles and coordinating programs to implement the strategic plan; and
    (4) Permanent implementation and evaluation structure. The extent to 
which a responsible and accountable implementation structure or process 
has been created to ensure that the plan is successfully carried out and 
that improvements are made throughout the period of the zone or 
community's designation.
    (d) Strategic vision for change. (1) Goals and coordinated strategy. 
The extent to which the strategic plan reflects a projection for the 
community's revitalization which links economic, human, physical, 
community development and other activities in a mutually reinforcing, 
synergistic way to achieve ultimate goals;

[[Page 510]]

    (2) Creativity and innovation. The extent to which the activities 
proposed in the plan are creative, innovative and promising and will 
promote the civic spirit necessary to revitalize the nominated area;
    (3) Building on assets. The extent to which the vision for 
revitalization realistically addresses the needs of the nominated area 
in a way that takes advantage of its assets; and
    (4) Benchmarks and learning. The extent to which the plan includes 
performance benchmarks for measuring progress in its implementation, 
including an on-going process for adjustments, corrections and building 
on what works.



Sec. 25.202  Submission of nominations for designation.

    (a) General. A separate nomination for designation as an Empowerment 
Zone and/or Enterprise Community must be submitted for each rural area 
for which such designation is requested. The nomination shall be 
submitted in a form to be prescribed by USDA in the Notice Inviting 
Applications published in the Fedeal Register, and must contain complete 
and accurate information.
    (b) Certifications. Certifications must be submitted by the State(s) 
and local government(s) requesting designation stating that:
    (1) The nominated area satisfies the boundary tests of 
Sec. 25.100(d) of this part;
    (2) The nominated area is one of pervasive poverty, unemployment, 
and general distress, as described by Sec. 25.102 of this part;
    (3) The nominated area satisfies the poverty rate criteria set forth 
in Sec. 25.103 of this part;
    (4) The nominated rural area contains no portion of an area that is 
either already designated as an Empowerment Zone and/or Enterprise 
Community or is otherwise included in any other area nominated for 
designation as a Empowerment Zone and/or Enterprise Community;
    (5) Each nominating governmental entity has the authority to:
    (i) Nominate the rural area for designation as an Empowerment Zone 
and/or Enterprise Community;
    (ii) Make the State and local commitments required by Sec. 25.200(d) 
of this part; and
    (iii) Provide written assurances satisfactory to the Secretary that 
these commitments will be met;
    (6) Provide assurances the amounts provided to the State for the 
area under section 2007 of Title XX of the Social Security Act will not 
be used to supplant Federal or non-Federal funds for sevices and 
activities which promote the purposes of section 2007;
    (7) Provide that the nominating governments or corporations agree to 
make available all information requested by USDA to aid in the 
evaluation of progress in implementing the strategic plan and reporting 
on the use of EZ/EC SSBG funds; and
    (8) Provide assurances that the nominating State(s) agrees to 
distribute the EZ/EC SSBG funds in accordance with the strategic plan 
submitted for the designated zone or community.
    (c) Maps and area description. Maps and a general description of the 
nominated area shall accompany the nomination request.



                     Subpart D--Designation Process



Sec. 25.300  USDA action and review of nominations for designation.

    (a) Establishment of submission procedures. USDA will establish a 
time period and procedure for the submission of application as 
Empowerment Zones or Enterprise Communities, including submission 
deadlines and addresses, in a Notice Inviting Applications, to be 
published in the Federal Register.
    (b) Acceptance for processing. USDA will accept for processing those 
applications as Empowerment Zones or Enterprise Communities which USDA 
determines have met the criteria required under this part. USDA will 
notify the State(s) and local government(s) whether or not the 
nomination has been accepted for processing. The criteria for acceptance 
for processing is that the application as an Empowerment Zone or 
Enterprise Community must be received by USDA on or before the close of 
business on the date established by the Notice Inviting Applications 
published in the Federal Register. The applications must be

[[Page 511]]

complete and must be accompanied by a strategic plan, as required by 
Sec. 25.200(c) of this part and the certifications required by 
Sec. 25.202(b) of this part.
    (c) Evaluation of applications. In the process of reviewing each 
application accepted for processing, USDA may undertake a site visit(s) 
to any nominated area to aid in the process of evaluation.
    (d) Modification of the strategic plan, boundaries of nominated 
rural areas, and/or period during which designation is in effect. 
Subject to the limitations imposed by Sec. 25.100 of this part, USDA may 
request additional information pertaining to the plan and proposed area 
and may, as a part of that request, suggest modifications to the plan 
that would enhance its effectiveness.
    (e) Publication of designations. Final determination of the 
boundaries of areas and the term for which the designations will remain 
in effect will be made by the Secretary. Announcements of those 
nominated areas designated as Empowerment Zones of Enterprise 
Communities will be made by publication of a Notice in the Federal 
Register.



Sec. 25.301  Selection factors for designation of nominated rural areas.

    In choosing among nominated rural areas eligible for designation, 
the Secretary shall consider:
    (a) The effectiveness of the Strategic plan, in accordance with the 
key principles set out in Sec. 25.201 of this part.
    (b) The effectiveness of the assurances made pursuant to 
Sec. 25.200(a)(2) of this part that the strategic plan will be 
implemented.
    (c) The extent to which an application proposes activities that are 
creative and innovative.
    (d) Such other factors as established by the Secretary, which 
include the degree of need demonstrated by the nominated area for 
assistance under this part and the diversity within and among the 
nominated areas. If other factors are established by USDA, a Federal 
Register Notice will be published identifying such factors, along with 
an extension of the application due date if necessary.



Sec. 25.302  Number of Rural Empowerment Zones and Enterprise Communities.

    The Secretary may designate up to three rural Empowerment Zones and 
up to thirty rural Enterprise Communities.



                Subpart E--Post-Designation Requirements



Sec. 25.400  Reporting.

    USDA will require periodic reports for the Empowerment Zones and 
Enterprise Communities and other applicants designated pursuant to this 
part. These reports will identify the community, local government and 
State actions which have been taken in accordance with the strategic 
plan. In addition to these reports, such other information relating to 
designated Empowerment Zones and Enterprise Communities as USDA shall 
request from time to time shall be submitted promptly. On the basis of 
this information and of on-site reviews, USDA will prepare and issue 
periodic reports on the effectiveness of the Empowerment Zones/
Enterprise Communities Program.



Sec. 25.401  Periodic performance reviews.

    USDA will regularly evaluate the progress in implementing the 
strategic plan in each designated Empowerment Zone and Enterprise 
Community on the basis of performance reviews to be conducted on site 
and using other information submitted. USDA may also commission 
evaluations of the Empowerment Zone program as a whole by an impartial 
third party. Where not prevented by State law, nominating State 
governments must provide the timely release of data requested by USDA 
for the purposes of monitoring and assisting the success of Empowerment 
Zones and Enterprise Communities. The implementing entity for 
Empowerment Zones/Enterprises Communities will be responsible for EZ/EC 
program activities and fiscal management of the EZ/EC funds. They

[[Page 512]]

must demonstrate continual involvement of all segments of the community, 
including low income/disadvantaged residents, in the implementation of 
the Strategic Plan.



Sec. 25.402  Validation of designation.

    (a) Reevaluation of designations. On the basis of the performance 
review described in Sec. 25.401 of this part, and subject to the 
provisions relating to the revocation of designation appearing at 
Sec. 25.403 of this part, USDA will make findings as to the continuing 
eligibility for the validity of the designation of any Empowerment Zone 
or Enterprise Community. Determinations of whether any designated 
Empowerment Zone or Enterprise Community remains in good standing shall 
be promptly communicated to all Federal agencies providing assistance or 
administering programs under which assistance can be made available in 
such Zone or community.
    (b) Modification of designation. Based on a rural Zone or 
community's success in carrying out its strategic plan, and subject to 
the provisions relating to revocation of designation appearing at 
Sec. 25.403 of this part and the requirements as to the number, maximum 
population and other characteristics of rural Empowerment Zones set 
forth in Sec. 25.100 of this part, the Secretary may modify designations 
by reclassifying rural Empowerment Zones as Enterprise Communities or 
Enterprise Communities as Empowerment Zones.



Sec. 25.403  Revocation of designation.

    (a) Basis for revocation. The Secretary may revoke the designation 
of a rural area as an Empowerment Zone or Enterprise Community if the 
Secretary determines on the basis of the periodic monitoring and 
assessments described in Sec. 25.401 of this part, that the applicant or 
the State(s) or local government(s) in which the rural area is located:
    (1) Has modified the boundaries of the area;
    (2) Has failed to make satisfactory progress in achieving the 
benchmarks set forth in the strategic plan; or
    (3) Has not complied substantially with the strategic plan.
    (b) Warning letter. Before revoking the designation of a rural area 
as an Empowerment Zone or Enterprise Community, the Secretary will issue 
a letter of warning to the applicant and the nominating State(s) and 
local government(s):
    (1) Advising that the Secretary has determined that the applicant 
and/or the nominating local government(s) and/or State(s) has:
    (i) Modified the boundaries of the area; or
    (ii) Is not complying substantially with, or has failed to make 
satisfactory progress in achieving the benchmarks set forth in the 
strategic plan prepared pursuant to Sec. 25.200(d) of this part; and
    (2) Requesting a reply from all involved parties within 90 days of 
the receipt of this letter of warning.
    (c) Notice of revocation. After allowing 90 days from the date of 
receipt of the letter of warning for response, and after making a 
determination pursuant to paragraph (a) of this section, the Secretary 
may issue a final notice of revocation of the designation of the rural 
area as an Empowerment Zone or Enterprise Community.
    (d) Notice to affected Federal agencies. USDA will notify all 
affected Federal agencies providing assistance in a rural Empowerment 
Zone or Enterprise Community of its determination to revoke any 
designation pursuant to this section or to modify a designation pursuant 
to Sec. 25.402 of this part.



                        Subpart F--Special Rules



Sec. 25.500  Indian reservations.

    No rural Empowerment Zone or Enterprise Community may include any 
area within an Indian reservation.



Sec. 25.501  Governments.

    If more than one State or local government seeks to nominate an area 
under this part, any reference to or requirement of this part shall 
apply to all such governments.



Sec. 25.502  Nominations by economic development corporations.

    Any rural area nominated by an economic development corporation 
chartered by a State and qualified to do

[[Page 513]]

business in the State in which it is located, shall be treated as 
nominated by a State and local governments.



Sec. 25.503  Use of census data.

    Population and poverty rate data shall be determined by the 1990 
Census Data.



Sec. 25.504  Rural areas.

    (a) What constitutes ``rural''. A rural area may consist of any area 
that lies outside the boundaries of a Metropolitan Area, as designated 
by the Office of Management and Budget, or, as an area that is primarily 
rural and has at least 50 percent of the population of the nominated 
area residing outside of a Metropolitan Area.
    (b) Exceptions to the definition. On a case by case basis, the 
Secretary will grant requests for waiver from the definition of 
``rural'' stated in paragraph (a) of this section upon a showing of good 
cause. Applicants seeking to apply for a rural designation who do not 
satisfy the definition in paragraph (a) of this section must submit a 
request for waiver in writing to the Rural Business and Cooperative 
Development Service, Empowerment Zone Office, Department of Agriculture, 
AG Box 3202, 14th Street and Independence Avenue, SW, Washington, DC 
20250-3200. Requests must include:
    (1) The name, address and daytime phone number of the contact person 
for the applicant seeking the waiver; and
    (2) Sufficient information regarding the area that would support the 
infrequent exception from the definition.
    (c) The waiver process. The Secretary, in consultation with the 
Department of Commerce, will have discretion to permit rural 
applications for communities that do not meet the above rural criteria.



PART 26 [RESERVED]




[[Page 515]]



                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.

  Material Approved for Incorporation by Reference
  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected

[[Page 517]]

            Material Approved for Incorporation by Reference

                     (Revised as of January 1, 1997)

  The Director of the Federal Register has approved under 5 U.S.C. 
552(a) and 1 CFR Part 51 the incorporation by reference of the following 
publications. This list contains only those incorporations by reference 
effective as of the revision date of this volume. Incorporations by 
reference found within a regulation are effective upon the effective 
date of that regulation. For more information on incorporation by 
reference, see the preliminary pages of this volume.


7 CFR SUBTITLE A (PARTS 0-26)

OFFICE OF THE SECRETARY OF AGRICULTURE


Soil Conservation Service, U.S. Department of Agriculture

  P.O. Box 2890, Washington, DC 20013
``Hydric Soils of the United States, 1985''.......           12.31(a)(3)


                                                                    Chap.

[[Page 519]]



                    Table of CFR Titles and Chapters



                     (Revised as of January 1, 1997)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                          Title 2--[Reserved]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  General Accounting Office (Parts 1--99)
        II  Federal Claims Collection Standards (General 
                Accounting Office--Department of Justice) (Parts 
                100--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
        IV  Advisory Committee on Federal Pay (Parts 1400--1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
       VII  Advisory Commission on Intergovernmental Relations 
                (Parts 1700--1799)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Part 2100)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Part 3202)
     XXIII  Department of Energy (Part 3301)

[[Page 520]]

      XXIV  Federal Energy Regulatory Commission (Part 3401)
      XXVI  Department of Defense (Part 3601)
    XXVIII  Department of Justice (Part 3801)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Part 4301)
      XXXV  Office of Personnel Management (Part 4501)
        XL  Interstate Commerce Commission (Part 5001)
       XLI  Commodity Futures Trading Commission (Part 5101)
      XLII  Department of Labor (Part 5201)
     XLIII  National Science Foundation (Part 5301)
       XLV  Department of Health and Human Services (Part 5501)
      XLVI  Postal Rate Commission (Part 5601)
     XLVII  Federal Trade Commission (Part 5701)
    XLVIII  Nuclear Regulatory Commission (Part 5801)
         L  Department of Transportation (Part 6001)
       LII  Export-Import Bank of the United States (Part 6201)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Part 6401)
      LVII  General Services Administration (Part 6701)
     LVIII  Board of Governors of the Federal Reserve System (Part 
                6801)
       LIX  National Aeronautics and Space Administration (Part 
                6901)
        LX  United States Postal Service (Part 7001)
      LXII  Equal Employment Opportunity Commission (Part 7201)
     LXIII  Inter-American Foundation (Part 7301)
       LXV  Department of Housing and Urban Development (Part 
                7501)
      LXVI  National Archives and Records Administration (Part 
                7601)
      LXIX  Tennessee Valley Authority (Part 7901)
      LXXI  Consumer Product Safety Commission (Part 8101)
     LXXIV  Federal Mine Safety and Health Review Commission (Part 
                8401)
     LXXVI  Federal Retirement Thrift Investment Board (Part 8601)
    LXXVII  Office of Management and Budget (Part 8701)

                          Title 6--[Reserved]

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Consumer Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)

[[Page 521]]

        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy, Department of Agriculture (Parts 
                2900--2999)
       XXX  Office of Finance and Management, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  [Reserved]
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)

[[Page 522]]

    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Immigration and Naturalization Service, Department of 
                Justice (Parts 1--499)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Meat and Poultry 
                Inspection, Department of Agriculture (Parts 300--
                599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
        XI  United States Enrichment Corporation (Parts 1100--
                1199)
        XV  Office of the Federal Inspector for the Alaska Natural 
                Gas Transportation System (Parts 1500--1599)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)

[[Page 523]]

        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Thrift Depositor Protection Oversight Board (Parts 
                1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700-1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Export Administration, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements

[[Page 524]]

        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  United States Customs Service, Department of the 
                Treasury (Parts 1--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)

[[Page 525]]

        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training, Department of Labor 
                (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development, International 
                Development Cooperation Agency (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  United States Information Agency (Parts 500--599)
        VI  United States Arms Control and Disarmament Agency 
                (Parts 600--699)
       VII  Overseas Private Investment Corporation, International 
                Development Cooperation Agency (Parts 700--799)
        IX  Foreign Service Grievance Board Regulations (Parts 
                900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Board for International Broadcasting (Parts 1300--
                1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

[[Page 526]]

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs and Section 202 Direct Loan Program) 
                (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--999)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Part 1001)

[[Page 527]]

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--799)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Bureau of Alcohol, Tobacco and Firearms, Department of 
                the Treasury (Parts 1--299)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--199)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Programs, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Pension and Welfare Benefits Administration, 
                Department of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)

[[Page 528]]

       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
        VI  Bureau of Mines, Department of the Interior (Parts 
                600--699)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)
      XXIX  Presidential Commission on the Assignment of Women in 
                the Armed Forces (Part 2900)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)

[[Page 529]]

        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799)
        XI  National Institute for Literacy (Parts 1100-1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                        Title 35--Panama Canal

         I  Panama Canal Regulations (Parts 1--299)

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
       XIV  Assassination Records Review Board (Parts 1400-1499)

             Title 37--Patents, Trademarks, and Copyrights

         I  Patent and Trademark Office, Department of Commerce 
                (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)

[[Page 530]]

        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Rate Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--799)
         V  Council on Environmental Quality (Parts 1500--1599)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans 
                Employment and Training, Department of Labor 
                (Parts 61-1--61-999)
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System
       201  Federal Information Resources Management Regulation 
                (Parts 201-1--201-99) [Reserved]
            Subtitle F--Federal Travel Regulation System
       301  Travel Allowances (Parts 301-1--301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Parts 303-1--303-2)
       304  Payment from a Non-Federal Source for Travel Expenses 
                (Parts 304-1--304-99)

[[Page 531]]

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Health Care Financing Administration, Department of 
                Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10005)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services, 
                General Administration (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  ACTION (Parts 1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)

[[Page 532]]

       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
      XXII  Christopher Columbus Quincentenary Jubilee Commission 
                (Parts 2200--2299)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Department of Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)

[[Page 533]]

        19  United States Information Agency (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        35  Panama Canal Commission (Parts 3500--3599)
        44  Federal Emergency Management Agency (Parts 4400--4499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399)
        54  Defense Logistics Agency, Department of Defense (Part 
                5452)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Research and Special Programs Administration, 
                Department of Transportation (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Highway Administration, Department of 
                Transportation (Parts 300--399)
        IV  Coast Guard, Department of Transportation (Parts 400--
                499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)

[[Page 534]]

         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            Acts Requiring Publication in the Federal Register
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR



[[Page 535]]





           Alphabetical List of Agencies Appearing in the CFR



                     (Revised as of January 1, 1997)

                                                  CFR Title, Subtitle or
                     Agency                               Chapter

ACTION                                            45, XII
Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Commission on Intergovernmental          5, VII
     Relations
Advisory Committee on Federal Pay                 5, IV
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Research Service                       7, XXXVII
  Energy, Office of                               7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Finance and Management, Office of               7, XXX
  Food and Consumer Service                       7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Alaska Natural Gas Transportation System, Office  10, XV
     of the Federal Inspector
Alcohol, Tobacco and Firearms, Bureau of          27, I
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
Animal and Plant Health Inspection Service        7, III; 9, I

[[Page 536]]

Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Arms Control and Disarmament Agency, United       22, VI
     States
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Assassination Records Review Board                36, XIV
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Board for International Broadcasting              22, XIII
Census Bureau                                     15, I
Central Intelligence Agency                       32, XIX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Christopher Columbus Quincentenary Jubilee        45, XXII
     Commission
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Commerce Department                               44, IV
  Census Bureau                                   15, I`
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Export Administration, Bureau of                15, VII
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office                     37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                5, LXXI; 16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Customs Service, United States                    19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Intelligence Agency                     32, I

[[Page 537]]

  Defense Logistics Agency                        32, I, XII; 48, 54
  Defense Mapping Agency                          32, I
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 2
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Mapping Agency                            32, I
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Enrichment Corporation, United States             10, XI
Environmental Protection Agency                   5, LIV; 40, I
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                25, III, LXXVII; 48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export Administration, Bureau of                  15, VII
Export-Import Bank of the United States           5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I

[[Page 538]]

  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               4, II
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
  Federal Acquisition Regulation                  48, 44
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II; 49, III
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Inspector for the Alaska Natural Gas      10, XV
     Transportation System, Office of
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Pay, Advisory Committee on                5, IV
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Property Management Regulations System    41, Subtitle C
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Finance and Management, Office of                 7, XXX
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Food and Drug Administration                      21, I
Food and Consumer Service                         7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Accounting Office                         4, I, II
General Services Administration                   5, LVII
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Property Management Regulations System  41, 101, 105
  Federal Travel Regulation System                41, Subtitle F
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
     of Certain Employees
[[Page 539]]

  Relocation Allowances                           41, 302
  Travel Allowances                               41, 301
Geological Survey                                 30, IV
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Great Lakes Pilotage                              46, III
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          5, XLV; 45, Subtitle A
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Health Care Financing Administration            42, IV
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Health Care Financing Administration              42, IV
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Human Development Services, Office of             45, XIII
Immigration and Naturalization Service            8, I
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Information Agency, United States                 22, V
  Federal Acquisition Regulation                  48, 19
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Intergovernmental Relations, Advisory Commission  5, VII
     on
Interior Department
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II
  Mines, Bureau of                                30, VI

[[Page 540]]

  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, Agency for             22, II
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
  International Development, Agency for           22, II; 48, 7
  Overseas Private Investment Corporation         5, XXXIII; 22, VII
International Fishing and Related Activities      50, III
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                5, XXVIII; 28, I
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             4, II
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration and Naturalization Service          8, I
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  Benefits Review Board                           20, VII
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Relations and Cooperative      29, II
       Programs, Bureau of
  Labor-Management Programs, Office of            29, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Pension and Welfare Benefits Administration     29, XXV
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training, Office of    41, 61; 20, IX
       the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Relations and Cooperative        29, II
     Programs, Bureau of
Labor-Management Programs, Office of              29, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II
Management and Budget, Office of                  5, III, LXXVII; 48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II

[[Page 541]]

Micronesian Status Negotiations, Office for       32, XXVII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II
Mines, Bureau of                                  30, VI
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
National Aeronautics and Space Administration     5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National Archives and Records Administration      5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Bureau of Standards                      15, II
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National and Community Service, Corporation for   45, XXV
National Council on Disability                    34, XII
National Credit Union Administration              12, VII
National Drug Control Policy, Office of           21, III
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Labor Relations Board                    29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
National Weather Service                          15, IX
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Panama Canal Commission                           48, 35
Panama Canal Regulations                          35, I
Patent and Trademark Office                       37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension and Welfare Benefits Administration       29, XXV
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
     Acquisition Regulation
[[Page 542]]

  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Postal Rate Commission                            5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Commission on the Assignment of      32, XXIX
     Women in the Armed Forces
Presidential Documents                            3
Prisons, Bureau of                                28, V
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Regional Action Planning Commissions              13, V
Relocation Allowances                             41, 302
Research and Special Programs Administration      49, I
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                17, II
Selective Service System                          32, XVI
Small Business Administration                     13, I
Smithsonian Institution                           36, V
Social Security Administration                    20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  22, I
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Depositor Protection Oversight Board       12, XV
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  Coast Guard                                     33, I; 46, I; 49, IV
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II; 49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 49, V
  Research and Special Programs Administration    49, I
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X

[[Page 543]]

Transportation, Office of                         7, XXXIII
Travel Allowances                                 41, 301
Treasury Department                               5, XXI; 17, IV
  Alcohol, Tobacco and Firearms, Bureau of        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs Service, United States                  19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, Office of             31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
United States Enrichment Corporation              10, XI
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training, Office of the  41, 61; 20, IX
     Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 545]]



List of CFR Sections Affected


All changes in this volume of the Code of Federal Regulations which were 
made by documents published in the Federal Register since January 1, 
1986, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 1986, see the ``List of CFR Sections 
Affected, 1949-1963, 1964-1972, and 1973-1985'' published in seven 
separate volumes.

                                  1986

7 CFR
                                                                   51 FR
                                                                    Page
Subtitle A
1.1--1.19 (Subpart A)  Revised.....................................32191
2.17  (b)(38) added.................................................7544
    (e)(3) added...................................................22795
    (a)(3)(xxxviii) through (xliii) added..........................31757
    (b)(39) added..................................................35203
2.21  (a)(9) and (10) added........................................29201
2.23  (b)(14) revised..............................................24807
    (a)(16) added..................................................34579
2.27  (a)(6) revised...............................................17167
2.28  (a)(2) revised...............................................17167
2.30  (a)(40) republished; (a)(79) and (80) added..................34945
2.50  (a)(3)(xxxix) through (xliv) added; (b)(1) and (2) revised 
                                                                   31758
2.51  (a)(41) added.................................................7544
    (a)(42) added..................................................35203
2.56  (a)(3) added.................................................22795
2.64  (a)(9) and (10) added........................................29201
2.70  (a)(31) added................................................34579
2.71  Removed......................................................24807
2.85  Heading, (a) introductory text and (1) revised...............17167
2.106  (a)(40) republished; (a)(46) and (47) added.................34945
2.107  (a)(19) republished; (a)(23) added..........................34946
2.108  (a)(20) republished; (a)(24) added..........................34946
2.109  (a)(14) republished; (a)(17) added..........................34946
3.51--3.68 (Subpart C)  Added.......................................8995
6.20--6.32 (Subpart)  Authority citation revised; section 
        authority citations removed.................................8999
6.20--6.32 (Subpart)  Appendix 2 amended; interim...................8999
6.91  (a)(2) revised; interim......................................45295
12  Added; interim.................................................23502
    Comment time extended..........................................30835
12.6  Correctly revised............................................29901
12.32  (a) introductory text correctly revised; (b)(2) corrected 
                                                                   29902
17  Authority citation revised.....................................47408
    Nomenclature change............................................47417
17.1  (c)(1) amendment confirmed....................................2472
    Revised........................................................47409
17.2  Revised......................................................47409
17.3  Revised......................................................47411
17.4  Revised......................................................47411
17.5  Revised......................................................47412
17.6  (a)(5) revision confirmed.....................................2472
    Revised........................................................47412
17.7  Revised......................................................47414
17.8  (f)(1) and (7) revision confirmed.............................2472
    Revised........................................................47414
17.9  (g) revision and (j)(2) and (5) amendments confirmed..........2472
    Redesignated as 17.14..........................................47409
    Added..........................................................47415
17.10  Redesignated as 17.15.......................................47409
    Added..........................................................47415
17.11  Redesignated as 17.16.......................................47409
    Added..........................................................47416

[[Page 546]]

17.12  Redesignated as 17.17.......................................47409
    Added..........................................................47416
17.13  (d)(3) introductory text amendment confirmed.................2472
    Redesignated as 17.18..........................................47409
    Added..........................................................47417
17.14  Redesignated as 17.19; new 17.14 redesignated from 17.9.....47409
    (a)(1), (b)(1), (c)(1), (d)(4), (h)(1), (j)(1), (3)(ii), (4), 
and (6), and (k)(6) and (9) amended; (k)(8) revised................47417
17.15  Redesignated as 17.20; new 17.15 redesignated from 17.10....47409
    (h)(4) and (j) amended.........................................47417
17.16  Redesignated as 17.21; new 17.16 redesignated from 17.11....47409
    (a) heading revised; (a) text amended; (b) removed.............47417
17.17  Redesignated as 17.22; new 17.17 redesignated from 17.12....47409
    (d) amended....................................................47417
17.18  Redesignated as 17.23; new 17.18 redesignated from 17.13....47409
    (b)(1)(ii) revised; (d)(6) and (7) amended.....................47417
17.19  Redesignated from 17.14.....................................47409
    (a) and (b)(2) amended.........................................47417
17.20  Redesignated from 17.15.....................................47409
    Introductory text, (a)(1), (6), and (9)(ii), (b)(4), (7), and 
(8), and (c)(1), (4), and (6) amended..............................47417
17.21  Redesignated from 17.16.....................................47409
    Revised........................................................47418
17.22  Redesignated from 17.17.....................................47409
    OMB number.....................................................47418
17.23  Redesignated from 17.18.....................................47409
    Revised........................................................47418
17  Appendixes A and B amended.....................................47418
20  Authority citation revised.....................................30203
20.12  Added.......................................................30203
20  Appendix I amended.............................................30203
21  Revised...................................................7008, 7022
25  Removed........................................................17611
25a  Removed.......................................................17611
26  Added..........................................................20644
26.10--26.12 (Subpart B)  Added....................................28801

                                  1987

7 CFR
                                                                   52 FR
                                                                    Page
Subtitle A
1.1--1.23 (Subpart A)  Revised; eff. 2-1-88........................49386
1d  Added..........................................................20376
2.15  (b)(6) revised; (b)(7) added.................................21493
2.17  (a)(3)(xvi) and (4) removed....................................235
2.19  (d)(22), (f)(11) and (12) added................................235
    (d)(23) added..................................................17539
    (d)(5), (6), and (18) revised; (d)(24) through (26) added......24131
    (d)(27) and (28) added.........................................33571
2.21  (b), (d)(20) and (32) revised..................................236
2.25  (c)(8)(ix) removed; (c)(8) introductory text and (xiii) and 
        (e)(15) revised; (c)(8)(xiv) through (xvi) and (h)(23) 
        added; (k) and (l) redesignated as (l) and (m); new (k) 
        added.......................................................2507
    (c)(9) added...................................................18687
    (i) revised....................................................21494
2.27  (a)(16) and (17) added........................................2666
2.29  (c)(11) added.................................................2099
    (c)(4) and (5) revised.........................................37435
2.30  (a)(81) and (82) added.........................................237
    (a)(76) removed.................................................2507
    (a)(83) through (85) added.....................................17540
    (a)(86) and (87) added.........................................21931
2.33  (c) removed..................................................18687
2.50  (a)(3)(xvi) and (4) removed....................................237
2.60  (a)(24) added..................................................238
    (a)(25) added..................................................17540
    (a)(5) and (6) revised; (a)(26) through (28) added.............24132
    (a)(29) and (30) added.........................................33571
2.62  (a)(14) and (15) added.........................................238
2.65  (a) revised....................................................238
2.68  (a)(25) and (35) revised.......................................239
2.75  (a)(17) removed...............................................2507
2.76  (a)(1)(ii), (10) introductory text and (xiii) revised; 
        (a)(10)(ix) removed; (a)(10)(xiv) through (xvi) added.......2507
    (a)(11) added..................................................18687
2.78  (a)(27) revised...............................................2508
2.79  Removed.......................................................2508
2.80  Heading and (a) introductory text revised; (a)(19) through 
        (21) added..................................................2508
    (a)(19) revised................................................21494
2.84  (a)(10) and (11) added........................................2666

[[Page 547]]

2.85  (a)(5) and (6) added..........................................2666
2.87  (a)(1)(i) revised.............................................2666
2.92  (a)(6) revised; (a)(7) added.................................21493
2.106  (a)(33) added.................................................240
    (a)(34) added..................................................17540
2.107  (a)(24) and (25) added......................................21931
    (a)(26) through (34) added.....................................31373
2.108  (a)(25) and (26) added........................................240
    (a)(27) added..................................................21931
2.110  (a)(7) removed...............................................2508
    Removed........................................................31373
4  Removed.........................................................21651
6.20--6.33 (Subpart)  Authority citation correctly revised.........32529
6.21  (m) amended..................................................19463
6.25  (b)(4) amended...............................................26937
    (b)(4) correctly revised.......................................32529
6.26  (c)(2) introductory text and (3) introdutory text revised....19463
6.28  OMB number removed...........................................19463
6.34  Added........................................................19463
6.20--6.34 (Subpart)  Appendixes 1 and 2 amended...................19463
6.91  (a)(2) revised...............................................48079
7  Revised; interim................................................48512
8.3  Amended........................................................8432
    Corrected......................................................47660
8.9  Revised........................................................8432
12  Revised........................................................35200
12.5  (b)(2) revised; (b)(3) removed; interim......................24133
16.4  Revised......................................................45141
16.5  Revised......................................................45141
17.2  (b)(2)(ii) added..............................................1623
17.7  (d) and (e) correctly designated..............................1623
17.21  Corrected....................................................1623
21  Authority citation revised.....................................48016
    Revised; interim; eff. 4-2-89..................................48017
21.1  Heading revised; (a) and (b) redesignated as (a)(1) and (2); 
        introductory text designated as new (a) introductory text; 
        new (a) heading and (b) added; interim; eff. 1-19-88.......48016

                                  1988

7 CFR
                                                                   53 FR
                                                                    Page
Subtitle A
1.123  List revised.................................................5969
1.130--1.151 (Subpart H)  Authority citation revised...............1001,
                                                             7177, 35296
1.131  (a) amended..................................................1001
    (a) amended; authority citation removed........................35296
1.142  (a)(1) and (3), (b) and (c) revised..........................7177
1.180--1.203 (Subpart J)  Revised..................................36949
1d  Retained.......................................................50375
1d.7  Revised......................................................28628
1d.10  Revised.....................................................31639
2  Authority citation corrected.............................11636, 23167
2.19  Revised......................................................18254
2.20  Removed......................................................18254
2.23  (a)(17) added.................................................7877
    (a)(17) corrected..............................................11636
    (a)(18) added..................................................46429
2.25  (b)(23) added................................................32029
2.27  (a)(12) removed; (a)(2), (3), (5) through (11), and (13) 
        through (17) redesignated as (a)(1) through (14); new 
        (a)(11), (c), (d)(2)(i) and (3), (e)(1), (f)(4), and 
        (g)(3)(iv) amended; (a) heading and new (2) revised; (h) 
        added......................................................21977
2.29  (c)(8) revised...............................................22466
2.30  (a)(88) added.................................................6783
    (f) added......................................................15013
2.42  Added........................................................18254
    (b) introductory text corrected................................26217
    (p) revised....................................................45257
2.43  Added........................................................18256
    (b) and (f) corrected..........................................26217
    (a) revised....................................................45257
2.44  Added........................................................18256
2.45  Added........................................................18258
2.59 (Subpart G)  Revised..........................................18258
2.60  Removed......................................................18258
2.62  Removed......................................................18258
2.70  (a)(32) added.................................................7877
    (a)(32) corrected..............................................11636
    (a)(33) added..................................................46429
2.75  (a)(24) added................................................32029
2.84  (a)(6) removed; (a)(7) through (11) redesignated as (a)(6) 
        through (10); (a)(1), (4), and (6) introductory text and 
        (iii) amended; (a)(2) revised..............................21978

[[Page 548]]

2.86  (a) introductory text, (3)(iii) and (iv), and (4)(iii) 
        amended; (a)(4)(ii)(a), (b) and (c) redesignated as 
        (a)(4)(ii)(A), (B), and (C); (a)(5) added..................21978
2.88  (a) introductory text amended; (a)(5) added..................21978
2.89  (a) introductory text amended................................21978
2.107  (a)(35) added................................................6783
2.108  (a)(28) added................................................6783
6.2--6.34 Subpart) amended; interim................................49547
6.25  (c)(3) added; interim........................................49546
6.90--6.93 (Subpart)  Authority citation revised............28181, 51089
6.91  (a)(2) revised; interim......................................28181
    (a)(2) revised.................................................51089
6  Appendix 2 amended; interim.....................................49547
7.9  (d) and (e) revised...........................................23749
7.11  (a) revised..................................................23750
7.27  (a) corrected.................................................1441
12.1  (b)(3) corrected..............................................3999
12.2  (a)(28) corrected.............................................3999
12.5  (c) amended...................................................3999
12.23  (a) revised..................................................3999
12.31  (d)(3)(i) amended............................................3999
13  Authority citation revised.....................................50202
13.5  (b) revised..................................................50202
13.6  (c) revised; (d) removed; (e) and (f) redesignated as (d) 
        and (e); new (e)(5) added..................................50202
15.1--15.12 (Subpart A)  Appendix revised eff. 1-3-89..............48506
15.50--15.52 (Subpart B)  Added eff. 1-3-89........................48509
16.4  Revised......................................................40717
16.5  Revised...............................................40717, 48897
26.3  (b) introductory text republished; (b)(1) and (e)(1) 
        revised; (c) introductory text and (e)(2)(ii) amended; 
        (e)(4) removed; interim....................................31641
    Confirmed......................................................47657

                                  1989

7 CFR
                                                                   54 FR
                                                                    Page
Subtitle A
1.122  Added.......................................................39517
1.123  Amended......................................................5073
1d.7  Revised......................................................21399
2.5  Revised.......................................................16097
2.7a  Added........................................................38643
2.17  (a)(4) added..................................................3405
    (b)(2) revised.................................................13505
    (k) added......................................................14043
2.21  (g) added....................................................14043
2.23  (i) added....................................................14044
    (a)(19) added..................................................23949
    (a)(20) added..................................................42467
2.25  (c)(1)(ix) revised; (n) added................................14044
    (f)(1)(vii) added..............................................18641
    (h)(12) revised................................................31163
2.30  (g) added....................................................14045
    (a)(89) added..................................................30711
2.33  (b) revised; new (c) added...................................35315
2.42  (q) added....................................................13506
    (p) redesignated as (r); new (p) and (q) added.................14045
    (s) correctly designated.......................................28665
2.44  (q) added....................................................14046
2.50  (a)(4) added..................................................3405
2.51  (a)(2) revised...............................................13506
    (a) introductory text revised; (a)(43) added...................14046
2.55  (a) introductory text revised; (a)(3) added..................14047
2.65  (a) introductory text revised; (a)(41) added.................14047
2.70  (a) introductory text revised; (a)(32) added.................14048
    (a)(34) added..................................................23950
    (a)(35) correctly designated...................................28665
    (a)(36) added..................................................42467
2.72  (a) introductory text revised; (a)(4) added..................14048
2.76  (a) introductory text and (a)(1)(ix) revised; (a)(12) added 
                                                                   14049
2.80  (a)(12) revised..............................................31163
2.81  (a)(20) added................................................18641
2.106  (a) introductory text revised; (a)(48) added................14049
2.108  (a)(29) added...............................................30711
11  Removed........................................................37783
15  Authority citation revised.....................................31163
15.52  Revised.....................................................31164
17.1  (f) amended..................................................21931
17.2  (b) amended..................................................21931
17.7  (c)(3)(ii), (4)(i) and (iii) amended.........................21931
17.8  (c)(4) amended...............................................21931
17.10  (b)(5) amended..............................................21931
17.14  (b) through (o) redesignated as (c) through (p); new (b) 
        added......................................................14201

[[Page 549]]

    (a)(2), (c)(1), (2), (e)(2) through (4), (k)(4), (l)(5), and 
(7) through (9) amended............................................21931
17.18  (d)(6) and (7) amended......................................21931
17.21  Amended.....................................................21931
17  Appendix A amended.............................................21931
21  Regulations at 52 FR 48017 confirmed; see regulation codified 
        at 49 CFR 24................................................8912
21.1  Regulations at 52 FR 48016 confirmed; see regulation 
        codified at 49 CFR 24.......................................8912
26.1--26.3 (Subpart A)  Authority citation revised.................41239
26.2  Revised.......................................................5922
26.3  (b)(1), (c), and (e)(2) revised...............................5922
    (a) and (b) introductory text revised; (b)(4) added............41239

                                  1990

7 CFR
                                                                   55 FR
                                                                    Page
Subtitle A
1.21  Removed......................................................42347
1.52  Regulation at 50 FR 7722 confirmed...........................38662
1.123  Amended.....................................................41179
1.132  (j) and (k) added...........................................30673
1.143  (d) amended.................................................30673
1.147  (b) revised; (c), (d), and (e) redesignated as (f), (g), 
        and (h); new (c), (d), and (e) added.......................30674
1.148  (d)(2) amended..............................................30674
1.149  (a) amended; (b) revised....................................30674
1.210--1.218 (Subpart K)  Added....................................42347
1d.7  Revised......................................................48831
1e  Added............................................................117
1e.20  Amended (OMB number)........................................14232
1e.30  Amended (OMB number)........................................14232
2.25  (c)(3)(ix) added.............................................39591
2.27  (i) added....................................................31033
2.30  (h) added....................................................28369
2.69a  Added.......................................................18097
2.76  (a)(3)(ix) added.............................................39591
2.106  (a) introductory text revised; (a)(49) added................28369
3  Regulation at 50 FR 7722 confirmed..............................38662
3.1--3.10 (Subpart A)  Regulation at 50 FR 7722 confirmed..........38662
3.2  (b) revised............................................18591, 38662
3.5  Amended.......................................................18591
3.6  Amended.......................................................38662
3.9  Amended.......................................................38662
3.10  Amended...............................................18591, 38662
3.21--3.36 (Subpart B)  Regulation at 50 FR 7722 confirmed.........38662
3.21  (b) revised..................................................38662
3.22  (e) revised..................................................38662
3.23  (a) and (d) amended; (b)(4) added............................38662
3.25  (a) amended..................................................38662
3.27  Amended......................................................38662
3.29  Heading, (c), (d), and (f)(2) revised........................38662
3.30  (a)(1) amended...............................................38663
3.32  (a) designation and (b) removed..............................38663
3.34  (e) redesignated as (d) and amended..........................38663
3.35  (a) amended; (b) revised.....................................38663
3.36  Revised......................................................38663
3.51--3.68 (Subpart C)  Regulation at 50 FR 7726 confirmed.........38662
3.81--3.82 (Subpart D)  Regulation at 50 FR 7726 confirmed.........38662
6.90--6.93 (Subpart)  Removed; interim.............................41502
6.100--6.302 (Subpart)  Heading revised; interim...................41502
6.100--6.102 (Subpart)  Authority citation and sections 
        redesignated from 6.300--6.302; interim....................41502
6.100--6.113  Undesignated center heading and sections removed; 
        interim....................................................41502
6.300--6.302  Undesignated center heading removed; sections and 
        authority citation redesignated as 6.100--6.102 (Subpart); 
        interim....................................................41502
13  Removed........................................................18591
15b  Authority citation and heading revised; eff. 1-18-91..........52139
15b.2  Amended; eff. 1-18-91.......................................52139
15b.3  (q) revised; eff. 1-18-91...................................52139
15b.11  Amended; eff. 1-18-91......................................52139
15b.16  Amended; eff. 1-18-91......................................52139
15b.19  (c) revised; eff. 1-18-91...........................52139, 52138
15b.20  Amended; eff. 1-18-91......................................52139
15b.29  Amended; eff. 1-18-91......................................52139
15b.36  Amended; eff. 1-18-19......................................52139

[[Page 550]]

                                  1991

7 CFR
                                                                   56 FR
                                                                    Page
Subtitle A
1.130--1.151 (Subpart H)  Authority citation revised...............22106
1.131  (a) amended.................................................22106
1.301--1.346 (Subpart K)  Added.....................................9582
1c  Added...................................................28012, 28018
1c.101  (b)(5) introductory text corrected.........................29756
1c.103  (f) corrected..............................................29756
2.17  (b)(40) added................................................15979
    (b)(41) added..................................................25998
    (a)(3), (4) and (5) redesignated as (a)(8), (9) and (10); new 
(a)(3) through (7), (a)(8)(xliv) through (liv) and (g)(2)(v) 
added; new (a)(8)(xxxvi) amended; (d) removed......................48724
2.18  (a)(3) added.................................................48724
2.19  Revised......................................................27889
2.20  Revised......................................................27893
2.21  (d)(33) and (34) added.......................................14837
    (d)(23) revised................................................32951
2.23  (a)(21) added................................................42921
2.24  (a) added....................................................42921
2.27  (a)(4) revised...............................................42682
2.30  (h) revised..................................................43689
2.31--2.45 (Subpart D)  Heading revised............................27893
2.41  (c) added....................................................14010
2.42  Removed......................................................27893
2.43  Removed......................................................27893
2.44  Removed......................................................27893
2.45  Removed......................................................27893
2.50  (a)(3) through (7) redesignated as (a)(8) through (12); new 
        (a)(3) through (7) and (8)(xlv) through (lv) added; (b)(1) 
        and (2) revised............................................48724
    (a)(8)(xxxvii) amended.........................................48725
2.51  (a)(44) added................................................15979
    (a)(45) and (b) added..........................................25998
2.52  Removed......................................................48725
2.55  Heading revised; (a)(4) added................................48725
2.59--2.62 (Subpart G)  Revised....................................27893
2.68  (a)(36) and (37) added.......................................14837
    (a)(15) revised................................................32951
2.70  (a)(37) added................................................42921
2.85  (a)(1) revised...............................................42682
2.106  Heading and (a)(49) amended.................................43690
12  Authority citation revised.....................................18635
12.1  (a) revised..................................................18635
    (a) corrected..................................................23735
12.2  (a)(1) amended; (a)(7) through (28) redesignated as (a)(8) 
        through (29); new (a)(7) added; new (a)(29) revised........18636
12.3  (b) revised..................................................18636
12.4  Revised......................................................18636
12.5  (b)(2) removed; (a) through (c) redesignated as (a)(1) 
        through (3) and revised; (a)(4) through (6) added; (d) 
        introductory text redesignated as (b) introductory text 
        and revised; (d)(1) introductory text through (v) 
        redesignated as (b)(1) introductory text through (iv)(C) 
        and revised................................................18637
    (d)(1)(vi) redesignated as (b)(1)(iv)(D) and amended; (d)(2) 
through (5)(iv) redesignated as (b)(2) through (5)(iv); 
nomenclature change; new (b)(5)(i) amended; (e) and (f) removed; 
(b)(6) through (8) added; (g) redesignated as (b)(9)...............18638
    (b)(6)(i) introductory text corrected..........................23735
12.6  (b)(3) introductory text revised; (b)(3)(vi) removed; 
        (b)(3)(vii) through (ix) redesignated as (b)(3)(vi) 
        through (viii); (c)(1) revised; (b)(3)(ix), (x), (6) and 
        (c)(2)(vii) through (xiv) added; (b)(3)(i), (ii), (v), 
        (vii), and (viii) and (c)(2)(iv) amended...................18639
12.7  (a)(2) and (3) revised.......................................18639
12.9  (a) and (b) redesignated as (a)(1) and (2); new (a) heading 
        added; new (a)(1) revised; new (a)(2) amended; (b) added 
                                                                   18639
12.10  Amended.....................................................18640
12.11  Amended.....................................................18640
12.22  (c) amended.................................................18640
12.23  (a) and (d) introductory text amended; (b) through (e) 
        redesignated as (d) through (g); new (b) and (c) added.....18640
12.30  Introductory text and (a) through (e) redesignated as (a) 
        introductory text and (1) through (5); new (a)(3) amended; 
        new (b), (c) and (d) added.................................18640

[[Page 551]]

12.31  (b)(2) introductory text, (c)(1), (2) and (d) amended.......18640
12.33  (a) and (b) amended.........................................18640
12.34  Added.......................................................18641
16.2  Revised......................................................64187
16.3  Revised......................................................64187
16.4  Revised......................................................64188
16.5  Revised......................................................64188
17  Authority citation revised........................3968, 33370, 50809
17.5  Revised; interim..............................................3968
    (c)(8) correctly revised; interim...............................9273
    Regulations at 3968 and 9273 confirmed.........................64939
17.6  (b)(2) removed; (b)(3) and (4) redesignated as (b)(2) and 
        (3); (a)(1), (b)(1) and new (b)(3)(i) revised; (b)(3)(iii) 
        amended; interim............................................3969
    Regulation at 56 FR 3969 confirmed.............................64939
17.7  (d) amended; interim..........................................3969
    Regulation at 56 FR 3969 confirmed.............................64939
17.8  (c) revised; interim..........................................3970
    (c) introductory text amended; (c)(2) revised..................50809
    Regulations at 56 FR 3970 and 50809 confirmed..................64939
17.12  (a) revised; (g) and (h) amended; interim....................3970
    Regulation at 56 FR 3970 confirmed.............................64939
17.14  (b)(1)(i) and (j)(8) revised; (b)(1)(ii) redesignated as 
        (b)(1)(iv); new (b)(1)(ii), (iii), (j)(9) and (10) added; 
        interim.....................................................3970
    (b)(1)(iii) and (iv) correctly designated; interim..............9273
    (e)(3), (4), (l)(2), (3), (4), (5)(ii), (6), (7), (8) and (n) 
amended; (a)(4), (j)(11), (k)(7) and (8) added; (j)(9) and (10) 
revised............................................................33370
    Regulations at 56 FR 3970 and 9273 confirmed...................64939
17.18  (d)(6) introductory text and (ii) amended; (d)(6)(iii) 
        revised....................................................33370
17  Appendix A amended; interim.....................................3970
    Appendix B amended; interim.....................................3971
    Regulations at 56 FR 3970 and 3971 confirmed...................64939
20  Authority citation revised.....................................32951
20.1  Revised......................................................32951
24  Authority citation revised.....................................54531
24.2  Amended......................................................54531
24.3  Introductory text revised....................................54532
24.4  (d) revised..................................................54532
24.5  Revised......................................................54532
24.6  Amended......................................................54532
24.21  (b) redesignated as appendix A; (a) designation removed; 
        (a)(1) and (2) redesignated as (a) and (b); new (b) 
        revised; new appendix A amended; new appendix A 
        redesignated in part as appendix B.........................54532

                                  1992

7 CFR
                                                                   57 FR
                                                                    Page
Subtitle A
1.301--1.346 (Subpart K)  Correctly redesignated as subpart L.......3909
1d.7  Revised......................................................11906
2.17  Heading revised; (l) added...................................19792
2.19  Heading and (g) revised; (h) added...........................19793
2.21  Heading revised; (h) added...................................19793
    (d)(35) added..................................................40829
2.23  Heading, (a)(11) and (b) revised; (a)(1) amended; (a)(4), 
        (5), (6), (10), (14), (16), (18), (20) and (21) removed.....2217
    Heading revised; (j) added.....................................19794
    Heading revised; (a)(4) added..................................57647
2.30  Revised.......................................................9649
2.30a  Revised......................................................9654
2.35  (a) revised..................................................11261
2.41  (a) revised; (c) removed.....................................11261
2.50  (a)(13) added................................................19794
2.51  Heading revised; (a)(46) added...............................19794
2.53  (a)(2) added.................................................19794
2.55  Heading revised; (a)(5) added................................19795
2.60  (a)(40) revised; (a)(42), (43) and (44) added................19795
2.62  (a)(19) added................................................19796
2.65  Heading revised; (a)(42) added........................19796, 40829

[[Page 552]]

2.68  (a) introductory text revised; (a)(38) added.................40829
2.70  Heading and (a)(11) revised; (a)(1) amended; (a)(4), (5), 
        (6), (10), (28), (29), (31), (33), (36), (37) and (b)(2) 
        removed.....................................................2219
    Heading revised; (a)(37) added.................................19796
    Heading revised; (a)(4) added..................................57647
2.71  Added.........................................................2219
2.72  Heading revised; (a)(5) added................................19797
2.105  Revised......................................................9654
2.106  Revised......................................................9654
    (a)(49) revised................................................19797
2.107  Revised......................................................9656
2.108  Revised......................................................9658
    (a)(57) and (58) added.........................................58961
2.109  Revised......................................................9659
16  Authority citation revised.....................................44077
16.4  Revised......................................................44077
16.5  Revised........................................44077, 53015, 58125

                                  1993

7 CFR
                                                                   58 FR
                                                                    Page
Subtitle A
1.142  (a)(2) reinstated; CFR correction...........................30696
1.219  Added.......................................................62495
    (a) introductory text corrected................................64353
2.17  (g)(3) and (4) added.........................................42841
2.19  (c)(13) revised..............................................60541
2.23  Heading revised; (a)(5) added................................35359
2.25  (b)(2)(iv) and (5)(x) added..................................11955
    (b)(24) added..................................................11956
2.27  (a)(11) revised...............................................4570
2.30  (a)(34) removed..............................................35359
    Heading revised; (a)(34) added.................................51211
2.32  Added........................................................26679
2.55  Heading and (a)(5) revised; (a)(6) added.....................42841
2.62  (a)(13) revised..............................................60541
2.70  (a)(15) added................................................35359
2.74  (a)(1) revised...............................................11956
2.74a  Added.......................................................11956
2.75  (a)(2)(v) and (6)(xiv) added.................................11955
    (a)(2)(i), (6)(i), (ii), (vi), (ix) and (x) removed; 
(a)(2)(ii), (iii) and (iv) redesignated as (a)(2)(i), (ii) and 
(iii), (a)(6)(iii), (iv) and (v) redesignated as (a)(6)(i), (ii) 
and (iii), (a)(6)(vii) and (viii) redesignated as (a)(6)(iv) and 
(v), and (a)(6)(xi), (xii) and (xiii) redesignated as (a)(6)(vi), 
(vii) and (viii)...................................................11957
2.84  (a)(6) revised................................................4570
2.85  (a)(7) added..................................................4570
2.106  Heading revised; (a)(64) added..............................51211
2.108  (a)(6) removed..............................................35359
15e  Added..................................................57697, 57699
15e.170  (c) revised...............................................57697
16.4  Revised......................................................18143
16.5  Revised......................................................18143

                                  1994

7 CFR
                                                                   59 FR
                                                                    Page
Subtitle A
1.91--1.94 (Subpart  F) Removed....................................36019
1.410--1.429 (Subpart  M) Added.....................................8824
2.15  Heading revised; (b) removed.................................36020
2.19  (b)(38) added................................................18709
2.21  (b)(1), (6), (8), (10), (11), (13), (14), (15), (19), (20), 
        (21), (24), (31), (36) and (39) revised; (b)(40) through 
        (43) added.................................................14084
2.23  (b)(32) added.................................................2725
2.25  (e)(17) added................................................21917
    (e)(16)  added.................................................31917
2.30  (h) added....................................................36020
2.35  (a) amended...................................................8830
2.60  (a)(45) added................................................18709
2.65  (a)(1), (6), (9), (11), (12), (14), (15), (16), (20), (21), 
        (22), (25), (32), (37) and (40) revised; second (a)(42) 
        redesignated as (a)(43); (a)(44) through (47) added........14084
2.71  (a)(33) added.................................................2725
2.92  Removed......................................................36021
2.106  (a)(65) through (69) added..................................36021
7.15  (b)(11) revised..............................................15827
16  Authority citation revised......................................3981
16.4  Revised.......................................................3981
16.5  Revised.......................................................3981

[[Page 553]]

25  Added; interim..................................................2689

                                  1995

7 CFR
                                                                   60 FR
                                                                    Page
Subtitle A
0  Authority citation revised.......................................8454
0.735-11  (b)(6) amended............................................8454
    (b)(7) amended..................................................8455
1.20  Revised; interim; eff. 1-16-96...............................67308
1.26  (a), (b)(2) and (3) amended; (c) removed; eff. 1-22-96.......66480
1.27  Revised; eff. 1-22-96........................................66480
1.28  Amended; eff. 1-22-96........................................66480
1.29  (a) revised; (b)(1)(iii), (2) and (3) amended; eff. 1-22-96 
                                                                   66481
1.41  Amended; eff. 1-22-96........................................66481
1.130--1.151 (Subpart H)  Authority citation revised.........8455, 33329
1.131  (a) amended...........................................8455, 33329
1.132  Amended......................................................8455
1.133  (a)(1) amended...............................................8455
1.140  Heading and (c) revised; (a)(1) and (b) amended..............8455
1.141  (e) and (g)(7) amended; (g) and (h) redesignated as (h) and 
        (i); (b) and new (i) revised; new (g) added.................8455
1.142  (a) heading, (1), (2), (3) and (c)(2) amended................8456
1.144  (c)(2) revised; (c)(9) and (10) redesignated as (c)(13) and 
        (14); new (c)(9) through (12) added.........................8456
1.145  (a) and (c) amended..........................................8456
1.147  (c)(2) and (d) amended.......................................8456
1.148  (b) revised; (f) heading, (1), (2) and (3) amended...........8456
1.149  (b) amended..................................................8457
1.160--1.175 (Subpart I)  Authority citation revised................8457
1.161  Amended......................................................8457
1.162  (b) amended..................................................8457
1.164  (a) amended..................................................8457
1.167  Revised......................................................8457
1.168  (e)(1), (2) and (6) amended; (b) through (e) redesignated 
        as (c), (d), (e) and (g); new (b), new (f) and new (h) 
        added.......................................................8457
1.169  (a) heading revised; (1), (2), (3) and (c) amended...........8458
1.170  (a), (c) and (i) amended.....................................8458
1.171  Amended......................................................8458
1.172  (a) amended..................................................8458
1.173  (b)(1), (2), (d) introductory text and (e) amended; (d)(2) 
        revised; (d)(7) redesignated as (d)(9); new (d)(7) and new 
        (8) added...................................................8458
1.174  (c) amended..................................................8459
1b  Authority citation revised.....................................66481
1b.1  (a) and (b) amended; eff. 1-22-96............................66481
1b.2  (a) removed; (c), (d) and (e) amended; (b) through (e) 
        redesignated as (a) through (d); eff. 1-22-96..............66481
1b.3  (c) amended; eff. 1-22-96....................................66481
1b.4  Revised; eff. 1-22-96........................................66481
2  Revised.........................................................56393
    Authority citation revised.....................................66713
2.15--2.24 (Subpart C)  Nomenclature change........................66713
2.26--2.36 (Subpart D)  Nomenclature change........................66713
2.40--2.43 (Subpart F)  Nomenclature change........................66713
2.45--2.49 (Subpart G)  Nomenclature change........................66713
2.59--2.61 (Subpart J)  Nomenclature change........................66713
6.20--6.34  (Subpart) Heading revised; interim......................1990
    Authority citation revised...............................1990, 47454
6.20  Revised; interim..............................................1990
6.21  Revised; interim..............................................1990
6.22  (a) revised; interim..........................................1991
6.23  Revised; interim..............................................1991
6.24  Revised; interim..............................................1991
6.25  (a), (c)(1) introductory text, (ii), (iii), (2) and (3) 
        revised; interim............................................1992
    (c)(2) amended; interim........................................21426
    (c)(2) removed; (c)(3) redesignated as (c)(2); (b)(4) and new 
(c)(2)(ii) revised; interim........................................47454
6.26  (a)(3) through (6), (b)(5) and (f) removed; (b)(1) table, 
        (c) introductory text and (3) introductory text revised; 
        (d) and (e) redesignated as (e) and (f); new (d) added; 
        interim.....................................................1992
    (c)(3)(ii) amended; (d)(2), (3)(i) and (ii) revised; interim 
                                                                   21426
6.27  (f) and (h) amended; interim..................................1993
6.28  Amended; interim..............................................1993
6.29  (b)(3) amended; interim.......................................1993

[[Page 554]]

6.30  (a) introductory text amended; (a)(1) and (2) removed; 
        interim.....................................................1993
6.34  Removed; interim..............................................1993
6.20--6.34  (Subpart) appendix 1 revised; interim...................1993
    Appendix 2 revised; interim.....................................1994
    Appendix 3 added; interim.......................................1995
6  Appendixes 1 and 2 amended; appendix 3 revised; interim.........21427
    Appendix 3 revised; interim....................................47455
8  Nomenclature change.............................................52293
11  Added; interim; eff. 1-16-96...................................67308
11.9  Eff. 12-29-95................................................67308
12.12  Revised; interim; eff. 1-16-96..............................67313
17  Nomenclature change............................................62706
    Regulation at 60 FR 62706 eff. date corrected to 1-8-96........63576
17.1  (f) amended..................................................62705
    Regulation at 60 FR 62705 eff. date corrected to 1-8-96........63576
17.2  (a) and (c) amended..........................................62705
    Regulation at 60 FR 62705 eff. date corrected to 1-8-96........63576
17.5  (a)(1), (b)(2), (3), (d)(1), (2), (e), (g)(1) and (2) 
        amended; (a)(3) removed; (a)(4), (c) introductory text, 
        (7) and (8) revised; (a)(5) added..........................62706
    Regulation at 60 FR 62706 eff. date corrected to 1-8-96........63576
17.7  (c)(4)(i) amended............................................62705
    (c)(4)(iii) and (6) amended....................................62706
    Regulations at 60 FR 62705, 62706 eff. date corrected to 1-8-
96.................................................................63576
17.10  (b)(5) amended..............................................62705
    (a) introductory text and (b)(5) amended.......................62706
    Regulations at 60 FR 62705, 62706 eff. date corrected to 1-8-
96.................................................................63576
17.12  (a) revised; (c) amended....................................62706
    Regulation at 60 FR 62706 eff. date corrected to 1-8-96........63576
17.14  (d) introductory text, (e)(3), (l) heading, (1), (2), (5), 
        (6) and (m) revised; (e) introductory text, (4), (l)(7) 
        and (8) amended; (e)(5), (k)(8), (l)(3), (4), and (n) 
        removed; (e)(6) redesignated as (e)(5).....................62707
    (c)(2) amended.................................................62705
    (c)(1) amended.................................................62706
    Regulations at 60 FR 62705-62707 eff. date corrected to 1-8-96
                                                                   63576
17.15  (h)(1) amended..............................................62707
    Regulation at 60 FR 62707 eff. date corrected to 1-8-96........63576
17.18  (d)(6) removed; (d)(7) redesignated as (d)(6)...............62707
    Regulation at 60 FR 62707 eff. date corrected to 1-8-96........63576
17.21  Revised.....................................................62707
    Regulation at 60 FR 62707 eff. date corrected to 1-8-96........63576
17.22  Revised.....................................................62708
    Regulation at 60 FR 62708 eff. date corrected to 1-8-96........63576
17.23  Removed.....................................................62708
    Regulation at 60 FR 62708 eff. date corrected to 1-8-96........63576
17  Appendix A amended......................................62705, 62706
    Regulations at 60 FR 62705, 62796 eff. date corrected to 1-8-
96.................................................................63576
24  Revised........................................................56207
25  Revised.........................................................6950

                                  1996

7 CFR
                                                                   61 FR
                                                                    Page
Subtitle A
1.51  Revised......................................................57577
1.131  (a) amended.................................................11503
1.132  Amended.....................................................11503
1.133  (b) heading revised; (b)(2) redesignated as (b)(3); new 
        (b)(2) added...............................................11503
1.135  Heading revised; existing text designated as (a); new (a) 
        heading and (b) added......................................11503
1.136  (a) amended.................................................11504
1.137  Revised.....................................................11504
1.141  (a) amended; (e) redesignated as (e)(1); (e)(2) added.......11504
1d  Removed.........................................................2659
1e  Removed.........................................................2660
2  Authority citation revised......................................37552
2.16  (a)(1)(xi) removed; (a)(3)(x) revised........................25775
    (a)(1)(xxiv) added; (a)(3)(xxix) and (xxx) removed.............37552

[[Page 555]]

2.22  (a)(1)(viii)(H), (FF), (GG), (II), (PP), (UU) and (VV) 
        revised; (a)(1)(viii)(V) removed; (a)(1)(viii)(WW) added 
                                                                   25776
    (a)(2)(xlv) added..............................................68541
2.31  (a) revised..................................................49237
2.42  (a)(13) removed..............................................25776
    (a)(43) amended; (a)(44) added.................................37552
2.43  (a)(24) revised..............................................25776
    (a)(29) and (30) removed.......................................37552
2.79  (a)(8)(ix), (xl), (xli), (xliii), (l), (lv), (lvi) revised; 
        (a)(8)(xxix) removed; (a)(8)(lvii) added...................25776
2.80  (a)(50) added................................................68541
6.20--6.34  (Subpart) Appendix 3 amended............................6305
6.20--6.36  (Subpart) Revised......................................53007
6.50--6.59  (Subpart) Removed......................................28723
6.71--6.75  (Subpart) Removed......................................28723
6.100--6.102  (Subpart) Removed....................................28723
9  Removed.........................................................42773
10  Removed........................................................30495
12  Revised; interim...............................................47025
12.2  (a) corrected................................................53491
12.4  (a)(2), (g)(3) and (h) corrected.............................53491
12.5  (a)(1)(i), (2), (b)(2)(iii) and (7) corrected................53491
12.6  (c) corrected................................................53491
12.21  (a) designation corrected...................................53491
12.22  (c) designation corrected...................................53491
12.30  (b) and (c)(6) corrected....................................53491
16  Removed........................................................37199
17.2  (b) amended..................................................17823
17.14  (d)(1) and (2)(ii) amended; (d)(2)(i) revised...............17823
17.18  (c)(8)(ii) amended..........................................17823
17.20  (a)(9)(i) amended...........................................17824
17  Appendixes A and B amended.....................................17824
19  Removed........................................................42371
26  Removed........................................................40145