§2008a. State rural economic development review panel

(a) In general

In order for a State to become or remain an eligible State, the State must have a State rural economic development review panel that meets all of the requirements of this section.

(b) Duties

The panel must be required to advise the Secretary on the desirability of funding applications for funding from designated rural development programs, and, in developing such advice, the panel must have the following duties:

(1) Review rural development plans of local areas

To review each area plan submitted by a local or regional area.

(2) Evaluate area plans and applications for assistance

(A) Area plans

To evaluate, pursuant to a written policy and criteria, each area plan submitted by a local or regional area and either-

(i) accept any area plan that is technically and economically adequate, feasible, and likely to succeed in meeting the stated goals of the plan, unless the plan is incompatible with any other area plan for that area that has been accepted by the panel; or

(ii) return any plan that is technically or economically inadequate, infeasible, unlikely to be successful, or incompatible with any other area plan for that area that has been accepted by the panel, with an explanation of the reasons for the return with suggested alternative proposals.

In evaluating area plans under this subparagraph, the panel must give great weight to the area plans or other comments submitted by intergovernmental development councils, or similar organizations made up of local elected officials, charged with the responsibility for rural or regional development.

(B) Applications for assistance

To evaluate each application for assistance to determine whether the project to be carried out in any area is compatible with the area plan for the area in which the project described in the application is proposed, and either-

(i) accept any application that the panel determines to be compatible with such area plan; or

(ii) return to the Rural Development Administration any application that the panel determines to be incompatible with such area plan.

(3) Review and rank applications for assistance under designated rural development programs from areas with accepted area plans

To review applications for assistance, that have been accepted pursuant to paragraph (2)(B), for projects to be carried out in any area the area plan for which has been accepted pursuant to paragraph (2)(A), taking into account the sources of assistance and related activities identified pursuant to section 2008(b)(4)(A) of this title, and to rank such applications, subject to paragraphs (4) and (5), pursuant to a written policy and criteria, in an order that takes into account-

(A) in the case of business projects described in the application-

(i) the extent to which a project would-

(I) stimulate rural development by creating new jobs of a permanent nature or retaining existing jobs by enabling new small businesses to be started, or existing businesses to be expanded by local or regional area residents who own and operate the businesses,

(II) contribute to the enhancement and the diversification of the local or regional area economy,

(III) generate or retain jobs for local or regional area residents,

(IV) be carried out by persons with sufficient managerial capability,

(V) be likely to become financially viable, and

(VI) assist a local or regional area in overcoming severe economic distress;

(ii) the distribution of assistance to projects in as many areas as possible in the State, with sensitivity to geographical distribution;

(iii) the technical aspect of the projects;

(iv) the market potential and marketing arrangements for the projects; and

(v) the potential of such project to promote the growth of a rural community by improving the ability of the community to increase the number of persons residing therein and by improving the quality of life of such persons; and

(B) in the case of infrastructure and community facility projects described in the applications the extent to which a project would-

(i) have the potential to promote the growth of a rural community by improving the quality of life for local or regional area residents;

(ii) affect the health and safety of local or regional area residents;

(iii) affect business productivity and efficiency;

(iv) enhance commercial business activity;

(v) have the potential to promote long-term growth, including by increasing the number of persons residing in a rural community;

(vi) address a severe loss or lack of water quality or quantity;

(vii) bring a community into compliance with Federal or State water or waste water standards; and

(viii) consolidate water and waste systems and utilize management efficiencies in new systems.

(4) Priority ranking for projects addressing health emergencies

To give priority in reviewing and ranking, notwithstanding the criteria established in paragraph (3), to applications for projects designed to address a health emergency declared to be such by the appropriate Federal or State government agency.

(5) Priority based on need

If in ranking applications pursuant to paragraphs (3) and (4), 2 or more applications are determined to have comparable strengths in their feasibility and potential for growth, to give priority to the applications for projects for which there is the greatest need.

(6) Transmit list of ranked applications

To transmit to the State coordinator a list of all applications received and indicate on the list-

(A) for all applications accepted, the rank of such applications in accordance with paragraphs (3), (4) and (5); and

(B) for all applications returned, the fact that the application was returned pursuant to paragraph (2) and instruct the State coordinator to transmit the list to the Secretary.

(7) Availability of list of ranked applications

To make available to the public the list of ranked applications submitted under paragraph (6) and to provide a brief explanation and justification of why the project applications received their prioritization.

(8) Establishment and review of written policy and criteria for evaluating and ranking applications

To establish and annually review the written policy and criteria used by the panel in evaluating and ranking applications in accordance with this subsection to ensure that the policy and criteria are consistent with current rural developmental needs, and to provide for public input during the development of the initial policy and criteria.

(c) Membership

(1) Voting members

The panel must be composed of not more than sixteen voting members who are representatives of rural areas-

(A) one of whom is the Governor of the State or the person designated by the Governor to serve on the panel on behalf of the Governor for that year;

(B) one of whom is the director of the State agency responsible for economic and community development or the person designated by the director to serve on the panel on behalf of the director for that year;

(C) one of whom is appointed by a statewide association of banking organizations;

(D) one of whom is appointed by a statewide association of investor-owned utilities;

(E) one of whom is appointed by a statewide association of rural telephone cooperatives;

(F) one of whom is appointed by a statewide association of noncooperative telephone companies;

(G) one of whom is appointed by a statewide association of rural electric cooperatives;

(H) one of whom is appointed by a statewide association of health care organizations;

(I) one of whom is appointed by a statewide association of existing local government-based planning and development organizations;

(J) one of whom is appointed by the Governor of the State from either a statewide rural development organization or a statewide association of publicly-owned electric utilities, neither of which is described in any of subparagraphs (C) through (I);

(K) one of whom is appointed by a statewide association of counties;

(L) one of whom is appointed by a statewide association of towns and townships, or by a statewide association of municipal leagues, as determined by the Governor;

(M) one of whom is appointed by a statewide association of rural water districts;

(N) the State director of the Federal small business development center (or, if there is no small business development center in place with respect to the State, the director of the State office of the Small Business Administration);

(O) the representative for that State of the Economic Development Administration of the Department of Commerce; and

(P) one of whom is appointed by the Secretary from among the officers and employees of the Federal Government.

(2) Nonvoting members

The panel must have not more than four nonvoting members who must serve in an advisory capacity and are representatives of rural areas-

(A) one of whom is appointed by the Governor, from names submitted by the dean, or the equivalent official, of each school or college of business of the colleges and universities in the State;

(B) one of whom is appointed by the Governor, from names submitted by the dean, or the equivalent official, of each school or college of engineering of the colleges and universities in the State;

(C) one of whom is appointed by the Governor, from names submitted by the dean, or the equivalent official, of each school or college of agriculture of the colleges or universities in the State; and

(D) the director of the State agency responsible for extension services for the State.

(3) Appointment of representatives of statewide organizations by the Governor in certain cases

(A) No statewide organization

If there is no statewide association or organization described in subparagraph (C), (D), (E), (F), (G), (H), (I), (K), (L), or (M) of paragraph (1) of the entities described in such subparagraph, the Governor of the State will appoint an individual to fill the position or positions, as the case may be, described in the applicable subparagraph from among nominations submitted by local groups of such entities.

(B) Multiple statewide organizations

If there is more than one of the statewide associations or organizations described in subparagraph (C), (D), (E), (F), (G), (H), (I), (K), (L), or (M) of paragraph (1) of the entities described in such subparagraph, the Governor must select which organization is to name a member. The Governor must rotate such selection among such associations or organizations such that a representative of the selected association or organization serves no more than two years before another such association or organization is selected by the Governor.

(4) Failure to appoint panel members

The failure of the Governor, the Secretary of Agriculture, or an association or organization described in subparagraph (C), (D), (E), (F), (G), (H), (I), (K), (L), or (M) of paragraph (1) to appoint a member to the panel as required under this subsection shall not prevent a State from being determined to be an eligible State.

(d) Notification

Each statewide organization that selects an individual to represent the organization on the panel must have notified the Governor of the State of the selection.

(e) Qualifications of panel members appointed by Governor

Each individual appointed to the panel by the Governor of the State will be specially qualified to serve on the panel by virtue of the individual's technical expertise in business and community development.

(f) Vacancies

A vacancy on the panel must be filled in the manner in which the original appointment was made.

(g) Chairperson and vice chairperson

The panel must have selected two members of the panel who are not officers or employees of the United States to serve as the chairperson and vice chairperson of the panel for a term of one year.

(h) No compensation for Federal members

Except as provided in section 2008(c)(6) of this title, each member of the panel who is an officer or employee of the Federal Government may not receive any compensation or benefits, in addition to that which such officer or employee receives for performance of such officer's or employee's regular employment, by reason of service on the panel.

(i) Rules governing panel meetings

(1) Quorum

A majority of the members of the panel must constitute a quorum for the purpose of conducting business of the panel.

(2) Frequency of meetings

The panel must meet not less frequently than quarterly.

(3) First meeting

The State coordinator must schedule the first panel meeting.

(4) Records of meetings

The panel must keep records of the minutes of the meetings, deliberations, and evaluations of the panel, in sufficient detail to enable the panel to provide to interested persons the reasons for its actions.

(Pub. L. 87 128, title III, §366, as added Pub. L. 101 624, title XXIII, §2316(a), Nov. 28, 1990, 104 Stat. 4004; amended Pub. L. 102 237, title VII, §701(f), Dec. 13, 1991, 105 Stat. 1879.)

Amendments

1991-Subsec. (h). Pub. L. 102 237 substituted "of such officer's" for "of such officer".

Effective Date of 1991 Amendment

Amendment by Pub. L. 102 237 effective as if included in the provision of the Food, Agriculture, Conservation, and Trade Act of 1990, Pub. L. 101 624, to which the amendment relates, see section 1101(b)(6) of Pub. L. 102 237, set out as a note under section 1421 of this title.

Effective Date

Section effective Oct. 1, 1991, see section 2007(d) of this title.

Section Referred to in Other Sections

This section is referred to in sections 1932, 2007, 2008, 2008b, 2008c, 6943 of this title.