[Federal Register Volume 59, Number 247 (Tuesday, December 27, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30999]
[[Page Unknown]]
[Federal Register: December 27, 1994]
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DEPARTMENT OF AGRICULTURE
Rural Housing and Community Development Service
Rural Business and Cooperative Development Service
Rural Utilities Service
Consolidated Farm Service Agency
7 CFR Chapter XVIII and Part 1943
RIN 0575-AB74
Small Farmer Outreach Training and Technical Assistance Program
AGENCIES: Rural Housing and Community Development Service, Rural
Business and Cooperative Development Service, Rural Utilities Service,
and Consolidated Farm Service Agency, USDA.
ACTION: Interim rule with request for comments.
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SUMMARY: The Consolidated Farm Service Agency (CFSA) is the successor
to the Farmers Home Administration pursuant to Section 226 of the
Federal Crop Insurance Reform Act of 1994 (Pub. Law 103-354, 108 stat.
3178, October 13, 1994). The CFSA is establishing a regulation whereby
under the procedures of the Small Farmer Outreach Training and
Technical Assistance Program and the Outreach and Assistance Grants for
Socially Disadvantaged Farmers and Ranchers Program, an 1890 Land Grant
Institution or other eligible educational institution or community-
based organization could enter into a cooperative or other agreement
with CFSA to provide outreach, training, and technical assistance to
small-scale farmers, especially members of socially disadvantaged
groups. This action is necessary to implement the provisions in the
Food, Agriculture, Conservation, and Trade Act of 1990, title XXV,
Section 2501 and the U.S. Department of Agriculture (USDA)
appropriation acts which provide funding for this program. The intended
effect of this action is to assist small farmers and socially
disadvantaged farmers and ranchers by making them aware of programs
available through the USDA. In addition, this rule amends 7 CFR chapter
XVIII to reflect the abolishment of the Farmers Home Administration and
the Rural Development Administration and the establishment of the Rural
Housing and Community Development Service, the Rural Business and
Cooperative Development Service, the Rural Utilities Service, and the
Consolidated Farm Service Agency in the recent Department of
Agriculture reorganization.
DATES: Interim rule effective December 27, 1994. Comments must be
received by February 27, 1995.
ADDRESSES: Submit written comments, in duplicate, to the Office of the
Chief, Regulations Analysis and Control Branch, Rural Economic and
Community Development (RECD), U.S. Department of Agriculture, Room
6348, South Agriculture Building, Washington, D.C. 20250. All written
comments made pursuant to this notice will be available for public
inspection during regular working hours at the above address.
FOR FURTHER INFORMATION CONTACT: John Just-Buddy, National Project
Coordinator, Special Programs Unit, or Geraldine Herring, Program
Analyst, Farmer Programs, Consolidated Farm Service Agency, USDA, room
4929, South Agriculture Building, 14th and Independence Avenue, S.W.,
Washington, D.C. 20250, Telephone (202) 720-1636.
SUPPLEMENTARY INFORMATION:
Classification
This rule has been determined to be not-significant for purposes of
Executive Order 12866 and therefore has not been reviewed by OMB.
Intergovernmental Consultation
For reasons set forth in the final rule related to Notice 7 CFR,
part 3015, subpart V (48 FR 29115, June 24, 1983) and FmHA Instruction
1940-J, this program is not subject to the provisions of Executive
Order 12372 which requires intergovernmental consultation with State
and local officials.
Paperwork Reduction Act
The information collection requirements contained in Sec. 1943.111
have been approved by the Office of Management and Budget (OMB) and
have been assigned OMB control number 0575-0156, under the provisions
of 44 U.S.C. Chapter 35. The remaining information collection and
recordkeeping requirements contained in this regulation will not become
effective until approved by OMB, in accordance with the Paperwork
Reduction Act of 1980. Please send written comments to the Office of
Information Regulatory Affairs, OMB, Attention: Desk Officer for USDA,
Washington, D.C. 20503. Please send a copy of your comments to Jack
Holston, Agency Clearance Officer, USDA, RECD, Ag Box 0743, Washington,
D.C. 20250.
Civil Justice Reform
This document has been reviewed in accordance with Executive Order
(E.O.) 12778. It is the determination of CFSA that this action does not
unduly burden the Federal Court System in that it meets all applicable
standards provided in section 2 of the Executive Order.
Programs Affected
This action affects the following programs as listed in the Catalog
of Federal Domestic Assistance:
10.406--Farm Operating Loans
10.407--Farm Ownership Loans
Environmental Impact Statement
This document has been reviewed in accordance with 7 CFR part 1940,
subpart G, ``Environmental Program.'' It is the determination of CFSA
that this action does not constitute a major Federal action
significantly affecting the quality of the human environment, and, in
accordance with the National Environmental Policy Act of 1969, Public
Law 91-190, an Environmental Impact Statement is not required.
Background
In July 1993, Farmers Home Administration (FmHA) initiated, under
Section 2501 of the Food, Agriculture, Conservation, and Trade Act of
1990, the Outreach and Assistance Grants for Socially Disadvantage
Farmers and Ranchers program. The program was established by an
internal funds transfer, in the amount of $1 million received on August
13, 1993, from Extension Service.
A Notice was published in the Federal Register on July 2, 1993, [58
FR 35911-35914], Outreach and Assistance Grants for Socially
Disadvantaged Farmers and Ranchers, and no adverse comments were
received. The Notice was to solicit recipients and give guidance to
eligible applicants on submitting proposals for the program.
Discussion of Interim Rule
Outreach and Assistance Grants for Socially Disadvantaged Farmers
and Ranchers is authorized under Section 2501 of the Food Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279). Three million
dollars will remain available until expended. It was the intent of
Congress to have funds available to provide outreach and technical
assistance to encourage and assist socially disadvantaged farmers and
ranchers to own and operate farms and ranches and to participate in
agricultural programs. This assistance should enable socially
disadvantaged farmers and ranchers to obtain information on application
and bidding procedures, farm management, and other essential
information to participate in agricultural programs.
The definition of Agricultural programs contained in 1943.104 of
this subpart is based on the programs authorized by the statutes
referenced in Section 2501 (e)(3) of the FACT Act. As authorized by
Section 2501 (e)(3)(G), FmHA has designated additional USDA programs as
Agricultural program based on its belief that the participation of
socially disadvantaged farmers and ranchers in these programs will
serve an important public purpose. The definition of Agricultural
program references many of USDA's programs, however, the list is not
intended to be all inclusive. Rather, the regulation intends to
increase participation by socially disadvantaged farmers and ranchers
in all USDA programs which are agricultural in nature. However, because
the program is carried out by CFSA employees, the outreach efforts by
CFSA personnel to recipients will require the personnel to provide
information about CFSA agricultural loans only until such time as
information on the other USDA agricultural programs becomes available.
Need for the Interim Rule:
To implement, this year, a program that directly addresses
the decline of minority farmers and ranchers.
To immediately put into effect what is a clear and
pressing goal of the Administration. On November 1, 1993, President
Clinton issued Executive Order 12876, that directs the Government to
support Historically Black Colleges and Universities (HBCU's) and to
provide opportunities to participate in and benefit from federal
programs. These institutions are a major beneficiary of this funding.
In addition, under Section 2501, Outreach and Assistance
for Socially Disadvantaged Farmers and Ranchers, non-HBCU's entities,
i.e., Indian Tribal community colleges and Hispanic serving post-
secondary educational institutions will be in the population served.
To allow funds to be used in FY 95 that will provide
assistance in advance of planting and building for the upcoming crop
year.
The application of this program will help in development
of the components in the '95 Farm Bill aimed at stabilizing socially
disadvantaged family farmers.
As services are consolidated and agencies change as a
result of reorganization of USDA, the socially disadvantaged
population, whom these funds are targeted at, will be able to receive
the necessary assistance to understand and gain access to the newly
reorganized USDA.
It is the policy of this Department that rules relating to public
property, loans, grants, benefits, or contracts will be published for
comment not withstanding the exemption of 5 U.S.C. 553. However, the
Department is publishing this rule as an interim rule which will take
effect immediately upon publication in the Federal Register without
securing prior public comment.
The Agency is taking this action because the funds which will be
distributed in the fiscal year 1995 are not being distributed under a
typically new action or proposal which will affect the public. Rather
the funds will go to organizations whose five years' plans were
selected for funding pursuant to the July 2, 1993, Notice so that the
organizations can continue to provide information and assistance to
socially disadvantaged farmers and ranchers. Moreover, since that
Notice provided the criteria for obtaining funding, the organizations
which are affected by this action (which contains similar requirements)
have actual notice of the applicable standards.
Organizations whose proposals were not selected for funding in 1993
and organizations submitting new proposals are not immediately affected
by this action because they will not receive funding in this fiscal
year. Also, these organizations will have the opportunity to comment on
the interim rule because their comments will be considered before any
truly new money could be distributed in the fiscal year 1996. Only
$3,000,000 was appropriated for this program for the fiscal year 1994,
and $2,995,000 for the fiscal year 1995. The same amount may not be
appropriated in subsequent years. However, it is the Agency's
expectation that funds will be appropriated for this program either as
a separate item or as part of the general appropriations for the Agency
in the future years. Therefore, the interim rule establishes guidelines
for administering the program for future years.
Program Description
1. The regulation being developed embodies the content of the
original notice, published on July 2, 1993. The interested parties are
fully aware of the procedures and standards intended for this program.
2. The program's objective is to reverse, through the use of the
Outreach Training and Technical Assistance Program, the decline of
socially disadvantaged farmers and ranchers across the United States.
This outcome will be reached by encouraging and assisting
socially disadvantaged farmers and ranchers to own and operate their
own farms, participate in agricultural programs, and become an integral
part of the agricultural community.
The recipients of these grants will provide services to
socially disadvantaged farmers and ranchers and small farmers through
outreach training and technical assistance in farm and ranch
management, recordkeeping, marketing techniques and in testing
innovative solutions to existing or anticipated issues or problems they
may encounter.
Under the interim rule, CFSA will solicit proposals, and five-year
plans to be funded on a competitive basis. The solicitation is
encouraged from community-based organizations, 1890 Land Grant
colleges, including Tuskegee University, Indian Tribal Community
Colleges and Alaska Native cooperative colleges, Hispanic serving post-
secondary educational institutions, and other post-secondary
educational institutions with demonstrated experience in providing
agriculture education or other agricultural related services to
socially disadvantaged family farmers and ranchers in their region.
The proposals will be evaluated by a panel of Agency technical
experts to determine which proposals are most meritorious. The panel of
Agency technical experts are necessary to evaluate what is expected to
be a variety of very technical proposals. The evaluation panel will
make recommendations to the appropriate Agency official to be forwarded
to the Agency Head, who will consult with, if necessary, the Secretary
of USDA before a final decision on awarding the grants or cooperative
agreements is made.
To assure a consistency in the evaluation process the interim rule
establishes a set of evaluation criteria to assure the proposal is
consistent with the intent of the program and is worth the funds that
are to be spent on the project.
The accounting for the funds awarded for the cooperative or other
agreement will be subject to the normal rules for such agreements
within USDA as given in part 3016 of this title. The proposed
application format is used to assure that sufficient information is
obtained to complete an agreement as given in part 3016 of this title.
In addition, the application format is similar to that used by other
USDA Agencies for their competitive grants programs.
List of Subjects in 7 CFR Part 1943
Credit, Loan Programs--Agriculture.
Accordingly, 7 CFR chapter XVIII and part 1943 are amended as
follows:
1. The heading of 7 CFR chapter XVIII is revised to read as
follows:
CHAPTER XVIII--RURAL HOUSING AND COMMUNITY DEVELOPMENT SERVICE, RURAL
BUSINESS AND COOPERATIVE DEVELOPMENT SERVICE, RURAL UTILITIES SERVICE,
AND CONSOLIDATED FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
2. In 7 CFR chapter XVIII (consisting of parts 1800-2099),
everywhere ``Farmers Home Administration'', ``FmHA'', ``FHA'', ``Rural
Development Administration'', or ``RDA'' are mentioned add the
following immediately thereafter ``or its successor agency under Public
Law 103-354''.
PART 1943--FARM OWNERSHIP, SOIL AND WATER AND RECREATION
3. The authority citation for part 1943 is revised to read as
follows:
Authority: 7 U.S.C. 1989; 42 U.S.C. 1480; 5 U.S.C. 301; 7 CFR
2.23 and 2.70.
4. Subpart C of part 1943 is added to read as follows:
PART 1943--FARM, OWNERSHIP, SOIL AND WATER AND RECREATION
Subpart C--Small Farmer Outreach Training and Technical Assistance
Program
Sec.
1943.101 General.
1943.102 Objectives.
1943.103 Project period.
1943.104 Definitions.
1943.105 Eligible entities.
1943.106-1943.110 [Reserved]
1943.111 Process for consideration.
1943.112-1943.114 [Reserved]
1943.115 Authorized use of funds.
1943.116-1943.125 [Reserved]
1943.126 Other applicable Federal statutes - and regulations that
apply.
1943.127 Fund disbursement.
1943.128 Financial management systems and - reporting requirements.
1943.129-1943.135 [Reserved]
1943.136 Standards of conduct for employees - of recipient.
1943.137 Monitoring compliance and penalty for - noncompliance.
1943.138-1943.140 [Reserved]
1943.141 Nondiscrimination.
1943.142 Environmental requirements.
1943.143-1943.150 [Reserved]
Sec. 1943.101 General.
This subpart provides procedures for administration of the Small
Farmer Outreach Training and Technical Assistance Program whereby an
1890 or other eligible educational institution or community-based
organization as referenced in Sec. 1943.105 of this subpart, also
referred to as the recipient, enters into a grant, cooperative, or
other agreement with the Consolidated Farm Service Agency (CFSA) to
provide outreach, training, and technical assistance to members of
socially disadvantaged groups to own and operate farms and ranches and
to participate in agricultural programs.
Sec. 1943.102 Objectives.
To meet the objectives of the program referenced in paragraphs (a)
and (b) of this section, CFSA will fund grant agreements, cooperative
agreements, or enter into Memorandums of Understanding (MOU) with
recipients as referenced in Sec. 1943.105 of this subpart, for Small
Farmer Outreach Training and Technical Assistance Projects which are
determined to meet the objectives of the program:
(a) The long-term objective of the Small Farmer Outreach Training
and Technical Assistance Program is to keep small farmers, especially
those who are members of socially disadvantaged groups, on the farm and
strengthen the rural economy.
(b) An immediate objective of the Small Farmer Outreach Training
and Technical Assistance Program is to encourage and assist members of
socially disadvantaged groups to own and operate farms and ranches and
to participate in agricultural programs.
Sec. 1943.103 Project period.
A cooperative agreement or other agreement will specify a project
for a period generally of 5 years, with an option for renewal up to the
5-year period, subject to the availability of funds or termination of
the project by mutual agreement or for cause.
Sec. 1943.104 Definitions.
For the purpose of the Small Farmer Outreach Training and Technical
Assistance Program, the following definitions are applicable:
Agricultural programs. Eligible programs shall include, but are not
limited to, one or more of the following programs: Agricultural
conservation program, programs comprising the environmental
conservation acreage reserve program (ECARP), conservation technical
assistance program, emergency conservation program, forestry incentives
program, Great Plains Conservation Program, integrated farm management
option program, price support and production adjustment programs, rural
environmental conservation program, soil survey program, and water bank
program; also the farm loan programs (farm ownership, operating, soil
and water, and emergency loans) of the CFSA.
Awarding official. The Administrator of the CFSA or designee.
Community-based organization. Those nonprofit, nongovernment
organizations with a well defined constituency that includes all or
part of a particular community, e.g., communities consisting of
socially disadvantaged farmers and ranchers. Socially disadvantaged
farmers and ranchers must play a role in the development and
implementation of any program or project undertaken by the
organization.
Cooperative agreement. The same meaning as ``grant,'' except that,
at the time a cooperative agreement is awarded, substantial involvement
is anticipated between CFSA, acting for the Federal Government, and the
recipient during performance under the agreement. (Refer to Exhibit A
of FmHA Instruction 1943-C (available in any State office).)
Grant. For purposes of this regulation, an award by CFSA, acting
for the Federal Government, of money to the recipient with the
following characteristics:
(1) The principal purpose of the award is to accomplish a public
purpose authorized by statute, rather than acquisition, by purchase,
lease, or barter, of property or services for the direct benefit or use
of the Federal Government; and
(2) At the time an award is made, no substantial involvement is
anticipated between CFSA, acting for the Federal Government, and the
recipient.
Memorandum of Understanding (MOU). For purposes of this regulation,
a documented plan between CFSA and the recipient or recipients for
carrying out their separate activities in a project of mutual interest.
When an understanding is reached as to the area of operations and
duties to be performed by the parties concerned, each party directs its
own activities and utilizes its own resources. An MOU is not a fund
obligation document since it does not directly involve a financial
assistance transaction.
Project. The total activities within the scope of the program as
identified in the MOU, grant, cooperative or other agreement.
Project Director. The individual who is responsible for the
project, as designated by the recipient in the project proposal and
approved by the awarding official. The project director will devote
full time to the administration of the project.
Project period. The total time approved by the awarding official
for conducting the proposed project as outlined in an approved project
proposal or the approved portions thereof and as specified in the
cooperative or other agreement.
Recipient. For purposes of this subpart, an entity as defined in
Sec. 1943.105 of this subpart that has entered into an MOU, grant, or
cooperative or other agreement with CFSA.
Socially disadvantaged farmer or rancher. A farmer or rancher who
is a member of a socially disadvantaged group. (For entity applicants,
the majority interest has to be held by socially disadvantaged
individuals.)
Socially disadvantaged group. A group whose members have been
subject to racial, ethnic, or gender prejudice because of their
identity as members of a group without regard to their individual
qualities. Socially disadvantaged groups consist of Women, African-
Americans, Native Americans, Alaskan Natives, Hispanics, Asians, and
Pacific Islanders.
Sec. 1943.105 Eligible Entities.
(a) CFSA will consider proposals only from:
(1) 1890 Land-Grant Colleges, including Tuskegee University.
(2) Indian tribal community colleges.
(3) Alaska native cooperative colleges.
(4) Hispanic-serving post-secondary educational institutions.
(5) Other post-secondary educational institutions with demonstrated
experience in providing agricultural education or other agriculturally-
related services to socially disadvantaged farmers or ranchers in their
region.
(6) Any community-based organization that:
(i) Has demonstrated experience in providing agricultural education
or other agriculturally-related services to socially disadvantaged
farmers and ranchers;
(ii) Provides documentary evidence of its past experience in
working with socially disadvantaged farmers and ranchers during the 2
years preceding its application for assistance; and
(iii) Does not engage in activities prohibited under Section
501(c)(3) of the Internal Revenue Code of 1986.
(b) In addition to those entities referenced in paragraph (a) of
this section, an applicant must:
(1) Have adequate financial resources for performance and the
necessary experience, organizational and technical qualifications, and
facilities or a firm commitment, arrangement, or ability to obtain same
(including any to be obtained through subagreement(s));
(2) Have the ability to comply with the proposed or required
completion schedule for the project;
(3) Have an adequate financial management system and audit
procedures that provide efficient and effective accountability and
control of all funds, property, and other assets;
(4) Have a satisfactory record of performance, including, in
particular, any prior performance under grants, contracts, or
cooperative agreements from the Federal Government; and
(5) Otherwise be qualified and eligible to receive funding for a
grant agreement, cooperative agreement, or other agreement under the
applicable laws and regulations.
Secs. 1943.106-1943.110 [Reserved]
Sec. 1943.111 Process for consideration.
(a) A program solicitation will be published in the Federal
Register and such other publication(s) as deemed appropriate, as early
as practicable every 5 years that funds will be available for new
project use and at other appropriate times.
(b) The project proposal must contain the following information:
(1) Background and need for the project. Explain the circumstances
which necessitate a Small Farmer Outreach Training and Technical
Assistance Project within the State to serve small farmers, especially
members of socially disadvantaged groups.
(2) Objectives and goals proposed to meet the objectives. Clearly
state the objectives of the project, which should be in line with the
objectives of the program stated in Sec. 1943.102 of this subpart, and
explain the goals proposed to meet the objectives.
(3) Statement of Work, including staffing. Describe the plan of
action for meeting the objective of the Small Farmer Outreach Training
and Technical Assistance Program and the necessary staffing.
(4) Proposed budget.
(i) Submit a proposed budget for each of the 5 years, showing line-
by-line cost items for the proposed project. Include any in-kind
contributions to be provided.
(ii) Show all funding sources and itemize costs by the following
line items: personnel costs, equipment, material and supplies, travel,
and all other costs.
(iii) Salaries of project personnel who will be working on the
project may be requested in proportion to the effort that they will
devote to the project.
(iv) Funds may be requested under any of the line items listed
above provided that the item or source for which support is requested
is identified as necessary for successful conduct of the project, is
allowable under the authorizing legislation and applicable Federal cost
principles, and is not prohibited under any applicable Federal statute.
(5) Identification of personnel. Incorporate into the proposal the
resumes of all anticipated personnel, including the Project Director.
Also discuss the experience, qualifications, and availability of all
personnel, including the Project Director, to direct and carry out the
project.
(c) The State Office will review the proposal and forward the
proposal to the National Office Project Manager, within 15 days of
receipt, with the State Office's recommendations.
(d) The National Office will make a preliminary review of the
proposal and reserves the right to return it to the State Office with
any questions or comments to be clarified by the 1890 or other eligible
educational institution or community-based organization. A time period
for resubmission will be specified.
(e) All proposals from entities eligible for funding under
Sec. 1943.105 of this subpart shall be evaluated for funding
consideration. To assist in the evaluation and obtain the best possible
balance of viewpoints for funding consideration, a proposal review
panel will be used. The proposal review panel will be selected and
organized to provide maximum expertise and objective judgment in the
evaluation of proposals. The proposal review panel will use Form FmHA
1943-2, ``EVALUATION--Small Farmer Outreach Training and Technical
Assistance Program,'' to evaluate each proposal. The proposal review
panel will evaluate each proposal against the five criteria using the
following scale: Highly Responsive (5); Fully Responsive (3);
Marginally Responsive (1); and Not Responsive (0). The criteria used by
the proposal review panel and the criteria weights are:
(1) Feasibility and Policy Consistency (3.5). Degree to which the
proposal clearly describes its objective and evidences a high level of
feasibility and consistency with United States Department of
Agriculture (USDA) policy and CFSA mission.
(2) Institutional Commitment (3.5). Degree to which the institution
or organization is committed to the project, as shown by funds, in-kind
services, or historical success in meeting the objectives of the
program.
(3) Number of Counties and Farmers Served (3.5). Degree to which
the proposal reflects collaborative approaches in meeting with other
agencies or organizations to enhance the objectives of the program.
Also, the areas and number of farmers who would benefit from the
services offered.
(4) Socially Disadvantaged Applicants--Outreach (3.5). Degree to
which the proposal contains efforts to reach persons identified as
socially disadvantaged farmers and ranchers in designated counties.
(5) Preparatory Features--Statement of Work (6.0). Degree to which
the proposal reflects special innovative features to attract, interest,
and improve the economical and social conditions of socially
disadvantaged farmers and ranchers.
(f) The final decision to award is at the discretion of the
awarding official. The awarding official shall consider the ranking,
comments, and recommendations from the proposal review panel and any
pertinent information before deciding which applications to approve and
the order of approval. The awarding official will notify in writing
entities whose proposals are rejected. In accordance with Sec. 1900.55
of subpart B of part 1900 of this chapter, appeal rights will be
provided only to those entities identified as eligible under
Sec. 1943.105 of this subpart.
(g) After a decision regarding funding is made, CFSA and the
recipient which is selected will enter into a grant or cooperative
agreement. The awarding official will notify the recipient of approval
and inform them of the necessary documents needed to execute the
agreement. If no funding is involved, CFSA and the recipient will enter
into an MOU.
Secs. 1943.112-1943.114 [Reserved]
Sec. 1943.115 Authorized use of funds. -
Any funds authorized under this subpart will be used solely for the
operation and administration of the Small Farmer Outreach Training and
Technical Assistance Program specifically for the project under the
cooperative or other agreement. There is no other authorized use of the
funds. Eligible costs are limited to those line items specified in
Sec. 1943.111 (b)(4) of this subpart.
Secs. 1943.116-1943.125 [Reserved]
Sec. 1943.126 Other applicable federal statutes and regulations that
apply. -
Several other Federal statutes and regulations apply to proposals
considered for review or cooperative and other agreements awarded under
the program. These include, but are not limited to the following:
(a) 7 CFR part 1b--USDA Implementation of the National
Environmental Policy Act;
(b) 7 CFR part 3--USDA implementation of OMB Circular A-129
regarding debt collection;
(c) 7 CFR part 1.1--USDA implementation of the Freedom of
Information Act;
(d) 7 CFR part 15, Subpart A--USDA implementation of Title VI of
the Civil Rights Act of 1964;
(e) 7 CFR part 3015--USDA Uniform Federal Assistance Regulations,
implementing OMB Directives (i.e., Circular Nos. A-110, A-21, and A-
122) and incorporating provisions of 31 U.S.C. 6301-6308 (formerly, the
Federal Grant and Cooperative Agreement Act of 1977, Public Law No. 95-
224), as well as general policy requirements applicable to recipients
of Departmental financial assistance;
(f) 7 CFR part 3016--USDA Uniform Administrative Requirements for
Grants and Cooperative Agreements to State and Local Governments;
(g) 7 CFR part 3017, as amended--USDA implementation of
Governmentwide Debarment and Suspension (nonprocurement) and
Governmentwide Requirements for Drug-Free Workplace (Grants);
(h) 7 CFR part 3018--USDA implementation of New Restrictions on
Lobbying. Imposes prohibitions and requirements for disclosure and
certification related to lobbying on recipients of Federal contracts,
grants, cooperative agreements, and loans;
(i) 29 U.S.C. 794, Section 504--Rehabilitation Act of 1973, and 7
CFR part 15B (USDA implementation of the statute), prohibiting
discrimination based upon physical or mental handicap in Federally
assisted programs; and
(j) 35 U.S.C. 200 et seq.--Bayh-Dole Act, controlling allocation of
rights to inventions made by employees of small business firms and
domestic nonprofit organizations, including universities, in Federally
assisted programs (implementing regulations are contained 37 CFR part
401).
Sec. 1943.127 Fund disbursement. -
The method of payment will be by reimbursement by Treasury check,
and payment will be requested on Standard Form (SF) 1034, ``Public
Voucher for Purchases and Services Other Than Personal,'' or SF-270,
``Request for Advance or Reimbursement,'' whichever is applicable.
Payments will be processed in accordance with 7 CFR parts 3015 and
3016.
Sec. 1943.128 Financial management systems and reporting requirements.
(a) Recipients must comply with standards for the financial
management and reporting and program performance reporting found in 7
CFR parts 3015 and 3016.
(b) Recipients must provide to the State Office quarterly financial
and program performance reports. The reports are due 30 days after the
reporting period, and an original and two copies of each report will be
submitted. The financial report will be presented on SF-269A,
``Financial Status Report,'' and the financial and program performance
reports will be prepared in accordance with 7 CFR parts 3015 and 3016.
(c) The program performance report should also address progress on
the activities under each of the areas of Outreach, Training, and
Technical Assistance, as stipulated in the cooperative agreement or
other agreement.
(d) Within 30 days after receipt, the State Office will forward the
reports to the National Office Project Manager, with the State Office's
comments and recommendations.
Secs. 1943.129-1943.135 [Reserved]
Sec. 1943.136 Standards of conduct for employees of recipient.
(a) Recipients must establish safeguards to prevent employees,
consultants, or members of governing bodies from using their positions
for purposes that are, or give the appearance of being, motivated by a
desire for private financial gain for themselves or others such as
those with whom they have family, business, or other ties. Therefore,
recipients receiving financial support must have written policy
guidelines on conflict of interest and the avoidance thereof. These
guidelines should reflect State and local laws and must cover financial
interests, gifts, gratuities and favors, nepotism, and other areas such
as political participation and bribery. These rules must also indicate
the conditions under which outside activities, relationships, or
financial interests are proper or improper, and provide for
notification of these kinds of activities, relationships, or financial
interests to a responsible and objective recipient official. For the
requirements of a code of conduct applicable to procurements under
grants and cooperative agreements, see the procurement standards
prescribed by 7 CFR 3015.181.
(b) The rules of conduct must contain a provision for prompt
notification of violations to a responsible and objective recipient
official and must specify the type of administrative action that may be
taken against an individual for violations.
(c) A copy of the rules of conduct must be given to each officer,
employee, board member, and consultant of the recipient who is working
on the CFSA financed project, and the rules must be enforced to the
extent permissible under State and local law or to the extent to which
the recipient determines it has legal and practical enforcement
capacity. The rules need not be formally submitted and approved by the
awarding official; however, they must be made available for review upon
request, for example, during a site visit.
Sec. 1943.137 Monitoring compliance and penalty for noncompliance.
(a) CFSA monitoring. CFSA will monitor compliance of the Small
Farmer Outreach Training and Technical Assistance projects through the
reports received in accordance with Sec. 1943.128 of this subpart,
through information received from field offices and the public, and may
include on-site visits to observe the operation and administration of
the program.
(b) Audits. Recipients are subject to the audit requirements of 7
CFR parts 3015 and 3016. An audit report will be submitted to the State
Office annually in accordance with OMB Circular A-128, A-110, or A-133,
whichever is applicable. The State Office will forward the audit to the
National Office Project Manager, within 30 days after receipt, with the
State Office's comments and recommendations.
(c) Penalty for noncompliance. If the Administrator determines that
a Small Farmer Outreach Training and Technical Assistance project does
not meet or no longer meets the objective of the program, that there
has been a violation of the cooperative or other agreement, that
reporting requirements are not being met, or that funds are not being
used only for the operation and administration of the Small Farmer
Outreach Training and Technical Assistance Program, the awarding
official is authorized to impose any penalties or sanctions established
in 7 CFR parts 3015 and 3016. Penalties may include withholding
payments, suspension of the cooperative agreement or other agreement,
or termination for cause. If a penalty for noncompliance is enforced,
the reason(s) will be stated in a letter to the recipient along with
appeal rights pursuant to subpart B of part 1900 of this chapter.
Sec. Sec. 1943.138-1943.140 [Reserved]
Sec. 1943.141 Nondiscrimination. -
The policies and regulations contained in subpart E of part 1901 of
this chapter apply to grants and other agreements made under this
subpart.
Sec. 1943.142 Environmental requirements.
The policies and regulations contained in subpart G of part 1940 of
this chapter apply to grants and other agreements made under this
subpart.
Sec. Sec. 1943.143-1943.150 [Reserved]
Dated: December 5, 1994.
Eugene Moos, ------
Under Secretary, Farm and Foreign Agricultural Services.
Dated: December 5, 1994.
Bob J. Nash,------
Under Secretary, Rural Economic and Community Development.
[FR Doc. 94-30999 Filed 12-23-94; 8:45 am]
BILLING CODE 3410-07-U
