Functional Organization of the Rural Development Mission Area

DEPARTMENT OF AGRICULTURE

Rural Housing Service

Rural Business-Cooperative Service

Rural Utilities Service

Farm Service Agency

7 CFR Part 2003

Functional Organization of the Rural Development Mission Area

AGENCIES: Rural Housing Service; Rural Business-Cooperative Service;

Rural Utilities Service; Farm Service Agency; USDA.

ACTION: Final rule.

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SUMMARY: The issuing agencies amend their regulations to reflect the

reorganization of the Department of Agriculture. The intended effect of

this action is to provide efficient utilization of Department personnel

resources. This publication provides the function statements for

organizational units within the Rural Development mission area, the

Rural Housing Service, Rural Business-Cooperative Service, and the

Rural Utilities Service.

[[Page 67259]]

EFFECTIVE DATE: December 24, 1997.

FOR FURTHER INFORMATION CONTACT: Timothy J. Ryan, Assistant

Administrator for Human Resources, Rural Development, STOP 0730, 1400

Independence Avenue, SW., Washington, DC 20250-0730; Telephone: (202)

690-9860.

SUPPLEMENTARY INFORMATION:

Classification

This action is not subject to the provisions of Executive Order

12866 since it involves only internal Agency management and has no

impact on borrowers or other members of the public. This action is not

published for proposed rulemaking because it involves only internal

Agency management and publication for comment is unnecessary and

contrary to the public interest.

Unfunded Mandates Reform Act

Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub.

L. 104-4, establishes requirements for Federal agencies to assess the

effects of their regulatory actions on State, local, and tribal

governments, and the private sector. Under section 202 of the UMRA, the

agencies generally must prepare a written statement, including a cost-

benefit analysis, for proposed and final rules with ``Federal

mandates'' that may result in expenditures to State, local, or tribal

governments, in the aggregate, or to the private sector, of $100

million or more in any one year. When such a statement is needed for a

rule, section 205 of the UMRA generally requires the agencies to

identify and consider a reasonable number of regulatory alternatives

and adopt the least burdensome alternative that achieves the objectives

of the rule.

This rule contains no Federal mandates (under the regulatory

provisions of Title II of the UMRA) for State, local, and tribal

governments, or the private sector. Thus, the rule is not subject to

the requirements of sections 202 and 205 of the UMRA.

Intergovernmental Consultation

These programs and activities are not subject to the provisions of

Executive Order 12372, which requires intergovernmental consultation

with State and local officials.

Environmental Impact Statement

This final action has been reviewed in accordance with 7 CFR part

1940, subpart G, ``Environmental Program.'' Rural Development has

determined that this final action does not constitute a major Federal

action significantly affecting the quality of human environment, and,

in accordance with the National Environmental Policy Act of 1969, Pub.

L. 91-190, an Environmental Impact Statement is not required.

Background

The Farmers Home Administration (FmHA) was abolished by the

Department of Agriculture Reorganization Act of 1994 (1994 Act). The

Office of the Assistant Administrator, Farmer Programs, and all its

subordinate organizational units have been transferred to the Farm

Service Agency (FSA). The remainder of the FmHA organizational units

have been transferred in accordance with the 1994 Act to one of the

following newly created agencies which make up the Rural Development

mission area (Rural Development): the Rural Housing Service, the Rural

Business-Cooperative Service, and the Rural Utilities Service. The

Rural Utilities Service also includes the organizational units of the

former Rural Electrification Administration.

This rule adopts the organizational structure put into place

following enactment of the 1994 Act on October 13, 1994. The rule only

covers the Rural Development agencies. The functions and

responsibilities delegated by the Under Secretary, Rural Development,

to the Rural Housing Service, Rural Business-Cooperative Service, and

Rural Utilities Service, are published in 7 CFR part 2, subpart G,

Secs. 2.47 through 2.49.

List of Subjects in 7 CFR Part 2003

Organizations and functions (government agencies).

Therefore, chapter XVIII, title 7, Code of Federal Regulations is

amended as follows:

PART 2003--ORGANIZATION

1. The authority citation for part 2003 is revised to read as

follows:

Authority: 5 U.S.C. 301, 7 U.S.C. 901 et seq., 7 U.S.C. 1989, 7

U.S.C. 6941 et seq, 42 U.S.C. 1480, et seq.

2. Subpart A of part 2003 is revised to read as follows:

Subpart A--Functional Organization of the Rural Development Mission

Area

Sec.

2003.1 Definitions.

2003.2 General.

2003.3 [Reserved]

2003.4 [Reserved]

2003.5 Headquarters organization.

2003.6 Office of the Under Secretary.

2003.7-2003.9 [Reserved]

2003.10 Rural Development State Offices.

2003.11-2003.13 [Reserved]

2003.14 Field Offices.

2003.15-2003.16 [Reserved]

2003.17 Availability of information.

2003.18 Functional organization of RHS.

2003.19-2003.21 [Reserved]

2003.22 Functional organization of RUS.

2003.23-2003.25 [Reserved]

2003.26 Functional organization of the RBS.

2003.27-2003.50 [Reserved]

Sec. 2003.1 Definitions.

EEO--the Equal Employment Opportunity Act of 1972, 42 U.S.C.

Sec. 2000e et seq.

O&M--Operations and Management.

P&P--Policy and Planning.

RBS--Rural Business-Cooperative Development Service, USDA, or any

successor agency.

RHS--Rural Housing Service, USDA, or any successor agency.

RTB--Rural Telephone Bank authorized by 7 U.S.C. 944.

Rural Development--Rural Development mission area of USDA.

RUS--Rural Utilities Service, USDA, or any successor agency.

Secretary--the Secretary of USDA.

USDA--the United States Department of Agriculture.

Sec. 2003.2 General.

The Rural Development mission area of the Department of Agriculture

was established as a result of the Department of Agriculture

Reorganization Act of 1994, Title II of Pub.L. 103-354. Rural

Development's basic organization consists of Headquarters in

Washington, D.C. and 47 State Offices. Headquarters maintains overall

planning, coordination, and control of Rural Development agency

programs. Administrators head RHS, RBS, and RUS under the direction of

the Under Secretary for Rural Development. State Directors head the

State Offices and are directly responsible to the Under Secretary for

the execution of all Rural Development agency programs within the

boundaries of their states.

Sec. 2003.3-2003.4 [Reserved]

Sec. 2003.5 Headquarters organization.

(a) The Rural Development Headquarters is comprised of:

(1) The Office of the Under Secretary;

(2) Two Deputy Under Secretaries; and,

3) Three Administrators and their staffs.

(b) The Rural Development Headquarters is located at 1400

Independence Avenue, SW., Washington, DC. 20250-0700

Sec. 2003.6 Office of the Under Secretary.

In accordance with 7 CFR Sec. 2.17 the Secretary has delegated to

the Under Secretary, Rural Development, authority

[[Page 67260]]

to manage and administer programs and support functions of the Rural

Development mission area.

(a) Office of the Deputy Under Secretary for P&P. This office is

headed by the Deputy Under Secretary for P&P. The Under Secretary,

Rural Development, has delegated to the Deputy Under Secretary for P&P,

responsibility for formulation and development of short-and long-range

rural development policies of the Department in accordance with 7 CFR

Sec. 2.45. The Deputy Under Secretary for P&P reports directly to the

Under Secretary, Rural Development, and provides guidance and

supervision for research, policy analysis and development, strategic

planning, partnerships and special initiatives. For budget and

accounting purposes, all of the staff offices under the Deputy Under

Secretary for P&P are housed in RBS.

(1) The Budget Analysis Division assesses potential impacts of

alternative policies on the mission area's programs and operations and

develops recommendations for change. The units are headed by the Chief

Budget Officer, who individually serves as the top policy advisor to

the Under Secretary and Deputy Under Secretary on all matters relating

to mission area budget policy.

(2) The Research, Analysis and Information Division analyzes

information on rural conditions and the strategies and techniques for

promoting rural development. The division performs, or arranges to have

conducted, short-term and major research studies needed to formulate

policy.

(3) The Reinvention and Capacity Building Division coordinates the

mission area's strategic planning initiatives, both at the National

level and in the State Offices. The division assists the Rural

Development agencies in their implementation of the Government

Performance and Results Act (GPRA) and special initiatives of the

Administration, USDA, and the Office of the Under Secretary.

(4) The Rural Initiatives and Partnership Division manages the

mission area's involvement and coordination with other Federal and

state departments and agencies to assess rural issues and develop model

partnerships and initiatives to achieve shared rural development goals.

The division is responsible for managing the National Rural Development

Partnership and providing support and oversight of 37 State Rural

Development Councils.

(b) Office of the Deputy Under Secretary for O&M. In accordance

with 7 CFR 2.45, the Under Secretary, Rural Development, has delegated

to the Deputy Under Secretary for O&M responsibility for providing

leadership in planning, developing, and administering overall

administrative management program policies and operational activities

of the Rural Development mission area. The Deputy Under Secretary for

O&M reports directly to the Under Secretary, Rural Development.

(1) Office of the Deputy Administrator for O&M. Headed by the

Deputy Administrator for O&M, this office reports directly to the

Deputy Under Secretary for O&M, and is responsible for directing and

coordinating the consolidated administrative and financial management

functions for Rural Development. This office provides overall guidance

and supervision for budget and financial management, human resources

management and personnel services, administrative and procurement

services, information resources management and automated data systems.

For budget and accounting purposes, all of the staff offices under the

Deputy Administrator for O&M are housed in RHS.

(i) Office of the Controller. Headed by the Chief Financial

Officer, this office supports the Deputy Administrator for O&M in

executing Rural Development requirements related to compliance with the

Chief Financial Officers Act of 1990 and provides leadership,

coordination, and oversight of all financial management matters and

financial execution of the budget for the Rural Development agencies.

This office also has full responsibility for Rural Development

agencies' accounting, financial, reporting, and internal controls. The

office provides direct oversight to the Headquarters Budget Division,

Financial Management Division, and the Office of the Assistant

Controller, located in St. Louis, Missouri.

(ii) Office of Assistant Administrator for Procurement and

Administrative Services. Headed by the Assistant Administrator for

Procurement and Administrative Services, this office is responsible to

the Deputy Administrator for O&M for overseeing the Procurement

Management Division, the Property and Supply Management Division, and

the Support Services Division:

(A) The Procurement Management Division is responsible for

developing, implementing, and interpreting procurement and contracting

policies for the Rural Development mission area. Major functions

include planning outreach efforts and goals for small and disadvantaged

businesses, providing staff assistance reviews in State and Local

Offices, administering the Contracting Officer Professionalism Warrant

program for Rural Development agencies, and coordinating the

development of Rural Development's acquisition plans.

(B) The Property and Supply Management Division is responsible for

developing office space acquisition and utilization policies, providing

training to field office leasing officers, administering the Leasing

Officer Warrant program, assuring accessibility compliance in Rural

Development's work sites, administering Rural Development's Physical

Security program, and establishing and providing oversight to the

worksite Energy Conservation program. This office operates a nationwide

supply warehousing and distribution program, and oversees a nationwide

Personal Property Management and Utilization Program, manages the U.S.

Department of Agriculture (USDA) Excess Personal Property Program for

field level activities, and provides direct support services to Rural

Development's St. Louis facilities.

(C) The Support Services Division has responsibility for designing,

developing, administering, and controlling Rural Development's

directives management and issuance system, coordinating Rural

Development's Regulatory Agenda and Regulatory Program submissions to

USDA and OMB, serving as Federal Register liaison, and analyzing and

coordinating regulatory work plans for the Under Secretary. This office

submits Paperwork Reduction Act public burden clearances to OMB,

administers all printing programs, manages Rural Development travel

policies and programs, and manages Freedom of Information Act, Privacy

Act and Tort Claims programs.

(iii) Office of Information Resources Management (IRM). Headed by

the Chief Information Officer, this office is responsible to the Deputy

Administrator for O&M for developing Rural Development's IRM policies,

regulations, standards and guidelines. This office provides overall

leadership and direction to activities assigned to the following four

major divisions:

(A) The Customer Services Division is responsible for direct

customer and technical support (hardware and software).

(B) The Management Services Division coordinates all IRM

acquisition, budget, and policy and planning activities in support of

Rural Development automation.

(C) The Information Technology Division provides support technical

[[Page 67261]]

services in the areas of data administration, system integrity

management, research and development, and telecommunications.

(D) The Systems Services Division is responsible for planning,

directing, and controlling activities related to Rural Development's

Automated Information Systems.

(iv) Office of the Assistant Administrator for Human Resources.

Headed by the Assistant Administrator for Human Resources, this office

is responsible to the Deputy Administrator for O&M for the overall

development, implementation, and management, of personnel and human

resources support services for Rural Development. The office provides

direction to the Headquarters Personnel Services, Human Resources

Training and Mission Area Personnel Services Division, and Labor

Relations Staff offices. The office is also responsible for the

establishment of recruitment, retention, and development policies and

programs supporting workforce diversity and affirmative action.

(2) Office of Civil Rights Staff. Headed by a staff director, this

staff has primary responsibility for providing leadership and

administration of the Civil Rights Program for the Rural Development

mission area. The staff conducts on-site reviews of borrowers and

beneficiaries of Federal financial assistance to ensure compliance with

Titles VI and VII of the Civil Rights Act of 1964, as amended, Title

VIII of the Civil Rights Act of 1968, as amended, Section 504 of the

Rehabilitation Act, the Americans with Disabilities Act, and prepares

compliance reports. The staff conducts and evaluates Title VII

compliance visits to insure that EEO programs are adequately

implemented. In addition, the office develops, monitors, and evaluates

Affirmative Employment programs for minorities, women and persons with

disabilities, and coordinates and conducts community outreach

activities at historically black colleges and universities. It also has

oversight of special emphasis programs such as the Federal Women's

Program, Hispanic Emphasis Program, and Black Emphasis Program. The

staff director reports directly to the Deputy Under Secretary for O&M.

(3) Office of Communications. Headed by a director who reports

directly to the Deputy Under Secretary for O&M, this office has primary

responsibility for tracking legislation and development and institution

of policies to provide public communication and information services

related to the Rural Development. The office maintains a constituent

data base and conducts minority outreach efforts and administers a

public information and media center responsible for media inquiries,

news releases, program announcements, media advisories, and information

retrieval. This office also serves as a liaison with Office of

Congressional Relations (OCR), Office of the General Counsel (OGC), and

other Departmental units involved in Congressional relations and public

information. This office drafts testimony, prepares witnesses, and

provides staff for hearings and markups. In addition, the office briefs

Congressional members and staff on the Rural Development matters,

coordinates Rural Development's legislative activities with other USDA

agencies and OMB and develops and implements legislative strategy. The

staff also coordinates development and production of brochures, press

releases, and other public information materials.

Secs. 2003.7--2003.9 [Reserved]

Sec. 2003.10 Rural Development State Offices.

(a) Headed by State Directors, State Offices report directly to the

Under Secretary, Rural Development, and are responsible to the three

Rural Development agency Administrators for carrying out agency program

operations at the State level, ensuring adherence to program plans

approved for the State by the Under Secretary, and rendering staff

advisory and manpower support to Area and Local offices. The Rural

Development State Directors, for budget and accounting purposes, are

housed in the RHS agency.

(b) Program Directors within the State Office provide oversight and

leadership on major program functions. Major program functions include:

Single Family and Multi-Family Housing loans and grants, Community

Facility, Water and Waste Disposal, Business and Cooperative, and the

Empowerment Zones and Enterprise Communities (EZ/EC) programs.

(c) The USDA Rural Development State Office locations are as

follows:

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

State Location

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

Alabama................................... Montgomery, AL

Alaska.................................... Palmer, AK

Arizona................................... Phoenix, AZ

Arkansas.................................. Little Rock, AR

California................................ Woodland, CA

Colorado.................................. Lakewood, CO

Delaware.................................. Camden, DE

Florida................................... Gainesville, FL

Georgia................................... Athens, GA

Hawaii.................................... Hilo, HI

Idaho..................................... Boise, ID

Illinois.................................. Champaign, IL

Indiana................................... Indianapolis, IN

Iowa...................................... Des Moines, IA

Kansas.................................... Topeka, KS

Kentucky.................................. Lexington, KY

Louisiana................................. Alexandria, LA

Maine..................................... Bangor, ME

Massachusetts............................. Amherst, MA

Michigan.................................. East Lansing, MI

Minnesota................................. St. Paul, MN

Mississippi............................... Jackson, MS

Missouri.................................. Columbia, MO

Montana................................... Bozeman, MT

Nebraska.................................. Lincoln, NE

Nevada.................................... Carson City, NV

New Jersey................................ Mt. Holly, NJ

New Mexico................................ Albuquerque, NM

New York.................................. Syracuse, NY

North Carolina............................ Raleigh, NC

North Dakota.............................. Bismarck, ND

Ohio...................................... Columbus, OH

Oklahoma.................................. Stillwater, OK

Oregon.................................... Portland, OR

Pennsylvania.............................. Harrisburg, PA

Puerto Rico............................... Hato Rey, PR

South Carolina............................ Columbia, SC

South Dakota.............................. Huron, SD

Tennessee................................. Nashville, TN

Texas..................................... Austin, TX

Vermont................................... Montpelier, VT

Virginia.................................. Richmond, VA

Washington................................ Olympia, WA

West Virginia............................. Charleston, WV

Wisconsin................................. Stevens Point, WI

Wyoming................................... Casper, WY

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

Secs. 2003.11-2003.13 [Reserved]

Sec. 2003.14 Field Offices.

Rural Development field offices report to their respective State

Director and State Office Program Directors. State Directors may

organizationally structure their offices based on the program workloads

within their respective State. Field offices generally are patterned in

a three or two tier program delivery structure. In a three tier system,

Local offices report to an Area office, that reports to the State

Office. In a two tier system, a ``Local'' or ``Area'' office reports to

the State Office. Locations and telephone numbers of Area and Local

Offices may be obtained from the appropriate Rural Development State

Office.

Secs. 2003.15--2003.16 [Reserved]

Sec. 2003.17 Availability of information.

Information concerning Rural Development programs and agencies may

be obtained from the Office of Communications, Rural Development, U. S.

Department of Agriculture, STOP 0705, 1400 Independence Avenue SW.,

Washington, DC 20250-0705.

Sec. 2003.18 Functional organization of RHS.

(a) General. The Secretary established RHS pursuant to Sec. 233 of

the Department of Agriculture

[[Page 67262]]

Reorganization Act of 1994 (7 U.S.C. 6943).

(b) Office of the Administrator. According to 7 CFR 2.49, the

Administrator has responsibility for implementing programs aimed at

delivering loans and grant assistance to rural Americans and their

communities in obtaining adequate and affordable housing and community

facilities, in accordance with Title V of the Housing Act of 1949 (42

U.S.C. 1471 et seq.) and the Consolidated Farm and Rural Development

Act (7 U.S.C. 1921 et seq.).

(1) Legislative Affairs Staff. The duties and responsibilities of

this staff have now been aligned under the Office of Communication,

headed by a director who reports directly to the Under Secretary for

O&M. The Office of Communication is responsible for providing and

carrying out legislative, public communication, and information

services for the Rural Development mission area.

(2) Office of Program Support Staff. The Program Support Staff is

headed by a staff director who is responsible to the Administrator for

monitoring managerial and technical effectiveness of RHS programs. The

staff coordinates review and analysis of legislation, Executive Orders,

OMB circulars, and Department regulations for their impact on Agency

programs. The staff develops, implements, and reports on architectural

and environmental policies, in cooperation with the Department. Staff

responsibilities also include managing RHS's Hazardous Waste Management

Fund, coordinating the Debarment and Suspension process for RHS,

tracking the use of Program Loan Cost Expense funds, and maintaining

the RHS Internet ``Home Page.''

(3) Office of Deputy Administrator, Single Family Housing. Headed

by the Deputy Administrator, Single Family Housing, this office is

responsible to the Administrator for the development and implementation

of RHS's Single Family Housing programs, which extend supervised

housing credit to rural people of limited resources, for adequate,

modest, decent, safe, and sanitary homes. The office is responsible for

administering and managing sections 502 and 504 Rural Housing direct

and guaranteed loan and grant programs, Rural Housing and Self-Help

Site loans, the Self-Help Technical Assistance grant program, Housing

Application Packaging and Technical and Supervisory Assistance grants,

and Home Improvement and Repaid loans and grants. The office directs

the following three divisions: Single Family Housing Processing

Division, Single Family Housing Servicing and Property Management

Division, and Single Family Housing Centralized Servicing Center in St.

Louis, Mo.

(i) Office of Single Family Housing Processing Division. Headed by

a division director, this division is responsible for development and

nationwide implementation of policies on processing Single Family

Housing direct and guaranteed program loans. In addition, the division

provides direction on the following: the Rural Housing Targeted Area

Set-Aside program, debarments, payment assistance, title clearance and

loan closing, site/subdivision development, Deferred Mortgage Payment

Program; construction defects, credit reports, appraisals, Manufactured

Housing, coordinated assessment reviews, Home Buyer's Counseling/

Education Program, and allocation of loan and grant program funds.

(ii) Office of Single Family Housing Servicing and Property

Management Division. Headed by a division director, this division is

responsible for the development and implementation of nationwide

policies for servicing RHS's multi-billion dollar portfolio of Single

Family Housing loans, and managing and selling Single Family Housing

inventory properties. The division also conducts state program

evaluations, identifies program weaknesses, makes recommendations for

improvements, and identifies corrective actions.

(iii) Office of Single Family Housing Centralized Servicing Center

(CSC)--St. Louis, Missouri. Headed by a director, CSC is responsible

for centrally servicing RHS's multi-billion dollar portfolio of Single

Family Housing loans. CSC provides interest credit or payment

assistance renewals, performs escrow activities for real estate taxes

and property hazard insurance, oversees collection of loan payments,

and grants interest credit, payment assistance, and moratoria.

(4) Office of the Deputy Administrator, Multi-Family Housing

Division. Headed by the Deputy Administrator, Multi-Family Housing,

this office is responsible for the development and nationwide

implementation of RHS's Multi-Family Housing programs, which extend

supervised housing credit to rural residents an opportunity to have

decent, safe, and sanitary rental housing. The following programs are

administered and managed by this office: Section 515 Rural Rental

Housing, Rural Cooperative and Congregate Housing Programs, Section 521

Rental Assistance, Farm Labor Housing loan and grant programs, Housing

Preservation Grants, rural housing vouchers, and Housing Application

Packaging Grants. This office directs the following two divisions:

(i) Multi-Family Housing Processing Division. Headed by a division

director, this division is responsible for the development and

nationwide implementation of policies on processing Multi-Family

Housing program loans. The division manages the following program

areas: elderly and family rental housing, Farm Labor Housing loans and

grants, outreach contacts, congregate facilities, Housing Preservation

Grants, cooperative housing, rural housing vouchers, appraisals,

Congregate Housing Services Grants, Rental Assistance, Housing

Application Packaging Grants, targeted area and nonprofit set asides,

Multi-Family Housing suspensions and debarments, title clearance and

loan closing, allocation and monitoring of loan and grant funds,

adverse decisions and appeals, commercial credit reports, individual

credit reports, and, site development.

(ii) Multi-Family Housing Portfolio Management Division. Headed by

a division director, this division is responsible for the development

and institution of policies on the management and servicing of the

nationwide Multi-Family Housing programs. The Division implements

current and long range plans for servicing Rural Rental Housing loans,

Labor Housing loans and grants, and Rental Assistance or similar tenant

subsidies.

(5) Office of the Deputy Administrator, Community Programs. Headed

by the Deputy Administrator, Community Programs, this office is

responsible for overseeing the administration and management of

Community Facilities loans and grants to hospitals and nursing homes,

police and fire stations, libraries, schools, adult and child care

centers, etc. The office monitors and evaluates the administration of

loan and grant programs on a nationwide basis and provides guidance and

direction for community programs through two divisions, Community

Programs Loan Processing Division and Servicing and Special Authorities

Division.

(i) Community Programs Loan Processing Division. Headed by a

director, this division is responsible for the overall administration,

policy development, fund distribution, and processing of Community

Facilities loans and other loan and grant programs assigned to the

Division.

(ii) Servicing and Special Authorities Division. Headed by a

division director,

[[Page 67263]]

this division is responsible for the overall administration, policy

development, and servicing of the Community Facilities loan and grant

programs. The division conducts program evaluations, identifies program

weaknesses, makes recommendations for improvements, and identifies

corrective actions. The division also administers and services

Nonprofit National Corporation loans and grants.

Secs. 2003.19--2003.21 [Reserved]

Sec. 2003.22 Functional organization of RUS.

(a) General. The Secretary established RUS pursuant to Sec. 232 of

the Department of Agriculture Reorganization Act of 1994 (7 U.S.C.

6942).

(b) Office of the Administrator. According to 7 CFR 2.47, the

Administrator has responsibility for managing and administering the

programs and support functions of RUS to provide financial and

technical support for rural infrastructure to include electrification,

clean drinking water, telecommunications, and water disposal systems,

pursuant to the Consolidated Farm and Rural Development Act, as amended

(7 U.S.C. 1921 et seq.), and the Rural Electrification Act of 1936, as

amended (7 U.S.C. 901 et seq.). The office develops and implements

strategic plans concerning the Rural Electrification Act of 1936, as

amended. The Administrator serves as Governor of the Rural Telephone

Bank (RTB) with a 13-member board of directors, and exercises and

performs all functions, powers, and duties of the RTB in accordance

with 7 U.S.C. 944.

(1) Borrower and Program Support Services. Borrower and Program

Support Services consist of the three following staffs which are

responsible to the Administrator for planning and carrying out a

variety of program and administrative services in support of all RUS

programs, and providing expert advice and coordination for the

Administrator:

(i) Administrative Liaison Staff. Headed by a staff director, this

staff advises the Administrator on management issues and policies

relating to human resources, EEO, labor-management partnership,

administrative services, travel management, automated information

systems, and administrative budgeting and funds control.

(ii) Program Accounting Services Division. Headed by a division

director, this division develops and evaluates the accounting systems

and procedures of Electric, Telecommunications, and Water and

Wastewater borrowers; assures that accounting policies, systems, and

procedures meet regulatory, Departmental, General Accounting Office,

OMB, and Treasury Department requirements; examines borrowers' records

and operations, and reviews expenditures of loans and other funds;

develops audit requirements; and approves Certified Public Accountants

to perform audits of borrowers.

(iii) Program and Financial Services Staff. Headed by a staff

director, this staff evaluates the financial conditions of troubled

borrowers, negotiates settlements of delinquent loans, and makes

recommendations to program Assistant Administrators on ways to improve

the financial health of borrowers.

(2) Office of Assistant Administrator--Electric Program. Headed by

the Assistant Administrator--Electric Program, this office is

responsible to the Administrator for directing and coordinating the

Rural Electrification program of RUS nationwide. This office develops,

maintains, and implements regulations and program procedures on

processing and approving loans and loan-related activities for rural

electric borrowers. The office directs the following three divisions:

(i) Electric Regional Divisions. Headed by division directors,

these two divisions are responsible for administering the Rural

Electrification program in specific geographic areas and serving as the

single point of contact for all distribution borrowers. The divisions

provide guidance to borrowers on RUS loan policies and procedures,

maintain oversight of borrower rate actions, and make recommendations

to the Administrator on borrower applications for RUS financing. The

divisions also assure that power plant, distribution, and transmission

systems and facilities are designed and constructed in accordance with

the terms of the loan and proper engineering practices and

specifications.

(ii) Power Supply Division. Headed by a division director, this

division is responsible for administering the Rural Electrification

program responsibilities with regard to power supply borrowers

nationwide and serves as primary point of contact between RUS and all

such borrowers. The division develops and maintains a loan processing

program for Rural Electrification Act purposes, and develops and

administers engineering and construction policies related to planning,

design, construction, operation, and maintenance for power supply

borrowers.

(iii) Electric Staff Division. Headed by a division director, this

division is responsible for engineering activities related to the

design, construction, and technical operations and maintenance of power

plants; distribution of power; and transmission systems and facilities,

including load management and communications. The division develops

criteria and techniques for evaluating the financing and performance of

electric borrowers and forecasting borrowers' future power needs; and

maintains financial expertise on the distribution and power supply loan

program, and retail and wholesale rates.

(3) Office of Assistant Administrator--Telecommunications Program.

Headed by the Assistant Administrator--Telecommunications Program, this

office is responsible to the Administrator for directing and

coordinating the National Rural Telecommunications, Distance Learning,

and Telemedicine programs of RUS. The Assistant Administrator,

Telecommunications Program, serves as Assistant Governor of the RTB and

is responsible for the day-to-day activities of the RTB. The office

develops, maintains, and implements regulations and program procedures

on the processing and approval of grants, loans, and loan-related

activities for all rural telecommunications borrowers and grant

recipients. The office directs the following three divisions:

(i) Telecommunications Standards Division. Headed by a division

director, this division is responsible for engineering staff activities

related to the design, construction, and technical operation and

maintenance of rural telecommunications systems and facilities. The

office develops engineering practices, policies, and technical data

related to borrowers' telecommunications systems; and evaluates the

application of new communications network technology, including

distance learning and telemedicine, to rural telecommunications

systems.

(ii) Advanced Telecommunications Services Staff. Headed by a staff

director, this staff primarily serves the Assistant Administrator,

Telecommunications Program in the role of the Assistant Governor of the

RTB. The office performs analyses and makes recommendations to the AAT

on issues raised by the RTB Governor, Board of Directors, or RTB

borrowers. This staff maintains official records for the RTB Board and

prepares minutes of RTB Board meetings. The staff director serves as

the Assistant Secretary to the RTB. The staff performs the calculations

necessary to determine the cost of money rate to RTB borrowers and

recommends and develops program-

[[Page 67264]]

wide procedures for loan and grant programs. The office is responsible

for the Telecommunications Program's home page on the Internet.

(iii) Telecommunications Area Offices. Headed by area directors,

these four offices are responsible for administering the

Telecommunications, Distance Learning, and Telemedicine programs for

specific geographic areas, and serving as the single point of contact

for all program applicants and borrowers within their respective areas.

The offices provide guidance to applicants and borrowers on RUS and RTB

loan policies and procedures, and make recommendations to the

Administrator on applications for loans, guarantees, and grants. The

offices assure that borrower systems and facilities are designed and

constructed in accordance with the terms of the loan, acceptable

engineering practices and specifications, and acceptable loan security

standards.

(4) Office of the Assistant Administrator--Water and Environmental

Programs. Headed by the Assistant Administrator, Water and

Environmental Programs, this office is responsible to the Administrator

for directing and coordinating a nationwide Water and Waste Disposal

Program for RUS as authorized under Section 306 of the Consolidated

Farm and Rural Development Act, as amended (7 U.S.C. 1926). The office

oversees administration of RUS policies on making and servicing loans

and grants for water and waste facilities in rural America, and the

development of engineering policies, and practices related to the

construction and operation of community water and waste disposal

systems. This office is responsible for development and coordination of

environmental programs with regard to the Water and Waste Disposal

Program and directs the following two divisions:

(i) Water Programs Division. Headed by the division director, this

division is responsible for administering the Water and Waste Disposal

loan and grant making and servicing and special authorities activities

nationwide. This office also makes allocation of loan and grant funds

to field offices and manages National Office reserves.

(ii) Engineering and Environmental Staff. Headed by a staff

director, this staff is responsible for engineering activities at all

stages of program implementation, including: review of preliminary

engineering plans and specifications, procurement practices, contract

awards, construction monitoring, and system operation and maintenance.

The staff also develops Agency engineering practices, policies, and

technical data related to the construction and operation of community

water and waste disposal systems. The staff is responsible for

coordinating environmental policy and providing technical support in

areas such as: hazardous waste, debarment and suspension, flood

insurance, drug free workplace requirements, and computer program

software.

Secs. 2003.23--2003.25 [Reserved]

Sec. 2003.26 Functional organization of RBS.

(a) General. The Secretary established RBS pursuant to Sec. 234 of

the Department of Agriculture Reorganization Act of 1994 (7 U.S.C.

6944).

(b) Office of the Administrator. According to 7 CFR 2.48, the

Administrator is responsible for managing and administering the

programs and support functions of RBS to provide assistance to

disadvantaged communities through grants and loans and technical

assistance to businesses and communities for rural citizens and

cooperatives, pursuant to the following authorities: the Rural

Electrification Act of 1936, as amended (7 U.S.C. 940c and 950aa et

seq.), the Consolidated Farm and Rural Development Act (7 U.S.C. 1921

et seq.), the Cooperative Marketing Act of 1926 (7 U.S.C. 451-457), the

Agricultural Marketing Act of 1946 (7 U.S.C. 1621-1627), and the Food

Security Act of 1985 (7 U.S.C. 1932). These grants, loans, and

technical assistance improve community welfare by enhancing

organizational and management skills, developing effective economic

strategies, and expanding markets for a wide range of rural products

and services.

(1) Resources Coordination Staff. Headed by the staff director,

this staff is responsible to the Administrator for preparing

legislative initiatives and modifications for program enhancement. The

staff monitors legislative and regulatory proposals that potentially

impact RBS functions. The staff serves as liaison on budgetary and

financial management matters between RBS staff and the Office of the

Controller, and assists the Administrator in presenting and supporting

RBS's budget and program plans. The staff also advises the

Administrator and RBS officials on management issues and policies

related to: human resources, labor relations, civil rights, EEO, space,

equipment, travel, Senior Executive Service and Schedule C activities,

contracting, automated information systems, and accounting. The staff

provides analysis and recommendations on the effectiveness of

administrative and management activities, and performs liaison

functions between RBS and the Office of the Deputy Under Secretary for

O&M on a wide variety of administrative functions.

(2) Office of the Deputy Administrator, Business Programs. Headed

by the Deputy Administrator, Business Programs, this office is

responsible to the Administrator for overseeing and coordinating the

Business and Industry Guaranteed and Direct Loan programs, Intermediary

Relending Program loans, Rural Business Enterprise grants, Rural

Business Opportunity grants, Rural Economic Development loan and grant

programs, and the Rural Venture Capital Demonstration Program. The

office participates in policy planning, and program development and

evaluation. It also directs the following three divisions:

(i) Processing Division. Headed by the division director, this

division is responsible for developing and maintaining loan processing

regulations, and directs the processing and approval of guaranteed and

direct business and industry loans, and the Rural Venture Capital

Demonstration Program. It provides technical assistance to field

employees and borrowers on loan processing and develops approval

criteria and performance standards for loans. The division recommends

plans, programs, and activities related to business loan programs and

provides environmental guidance and support.

(ii) Servicing Division. Headed by the division director, this

office is responsible for developing and maintaining servicing

regulations. It directs and provides technical assistance to field

employees and borrowers on servicing business loans and grants. The

division reviews large, complex, or potentially controversial loan and

grant dockets related to loan servicing and recommends servicing plans,

programs, and activities related to business loan and grant programs.

(iii) Specialty Lenders Division. Headed by the division director,

this office is responsible for directing and developing and maintaining

regulations concerning the processing and approval of Intermediary

Relending loans, Rural Business Enterprise grants, Rural Business

Opportunity grants, and Rural Economic Development loan and grant

programs. The division provides technical assistance to field employees

and borrowers on loan and grant processing and other activities. It

also develops approval criteria and performance standards and

recommends

[[Page 67265]]

plans, programs, and activities related to business loan and grant

programs.

(3) Office of the Deputy Administrator, Cooperative Services

Programs. Headed by the Deputy Administrator, Cooperative Services

Programs, this office is responsible to the Administrator for providing

service to cooperative associations by administering a program of

research and analysis of economic, social, legal, financial, and other

related issues concerning cooperatives. The office administers programs

to assist cooperatives in the organization and management of their

associations and a program for economic research and analysis of the

marketing aspects of cooperatives. The division administers and

monitors activities of the National Sheep Industry Improvement Center

and the Appropriate Technology Transfer to Rural Areas Program, and the

Rural Cooperative Development Grant Program. The office directs the

following three divisions:

(i) Cooperative Marketing Division. Headed by the division

director, this division is responsible for participating in the

formulation of National policies and procedures on cooperative

marketing. The division conducts research and analysis and gives

technical assistance to farmer cooperatives on cooperative marketing of

certain crops, livestock, aquaculture, forestry, poultry, semen, milk,

and dairy products to improve their market performance and economic

position.

(ii) Cooperative Development Division. Headed by the division

director, this division is responsible for participating in the

formulation of National policies and procedures on cooperative

development. The office conducts evaluations and analysis of proposed

new cooperatives to develop plans for implementing feasible operations,

and advises and assists rural resident groups and developing

cooperatives in implementing sound business plans for new cooperatives.

It provides research, analysis, and technical assistance to rural

residents on cooperative development initiatives and strategies to

improve economic conditions through cooperative efforts.

(iii) Cooperative Resource Management Division. Headed by the

division director, this division is responsible for participating in

the formulating of National policies and procedures on cooperative

resource management. The division conducts research and analysis and

gives technical assistance to cooperatives on their overall structure,

strategic management and planning, financial issues, and operational

characteristics to improve their use of resources, financial policies,

and ability to adapt to market conditions. The division conducts

research and analysis of policy, taxation, Federal laws, State

statutes, and common laws that apply to cooperative incorporation,

structure, and operation to assist cooperatives in meeting legal

requirements.

(4) Office of the Deputy Administrator, Community Development.

Headed by the Deputy Administrator, Community Development, this office

is responsible to the Under Secretary, Rural Development, for

coordinating and overseeing all functions in the Community Outreach and

Empowerment Program areas. The office assists in providing leadership

and coordination to National and local rural economic and community

development efforts. For appropriation and accounting purposes, this

office is located under RBS. The office directs the following two

divisions:

(i) Empowerment Program Division. Headed by the division director,

this division is responsible for formulating policies and developing

plans, standards, procedures, and schedules for accomplishing RBS

activities related to ``community empowerment programs'', including EZ/

EC, AmeriCorps, and other initiatives. The office develops

informational materials and provides technical advice and services to

support States on community empowerment programs. It also generates

information about rural conditions and strategies and techniques for

promoting rural economic development for community empowerment

programs.

(ii) Community Outreach Division. Headed by the division director,

this division is responsible for designing and overseeing overall

systems and developing resources to support State and community level

implementation activities for RBS programs. The office designs program

delivery systems and tools, removes impediments to effective community-

level action, supports field offices with specialized skills, and

establishes partnerships with National organizations with grass-roots

membership to assure that programs and initiatives are designed and

implemented in a way that empowers communities. It develops methods for

working with rural business intermediaries to assist them in providing

technical assistance to new, small business, and provides Internet-

based services to 1890 Land-grant universities, EZ/EC, and AmeriCorps

volunteers, linking RBS information support to communities with high

levels of need.

(5) Alternative Agricultural Research and Commercialization

Corporation. Headed by a director, this Corporation is responsible for

providing and monitoring financial assistance for the development and

commercialization of new nonfood and nonfeed products from agricultural

and forestry commodities in accordance with 7 U.S.C. 5901 et seq. The

Corporation acts as a catalyst in forming private and public

partnerships and promotes new uses of agricultural materials. It

expands market opportunities for U.S. farmers through development of

value-added industrial products and promotes environmentally friendly

products. For budget and accounting purposes, this office is assigned

to RBS. The director of the Corporation is responsible to the Office of

the Secretary.

Secs. 2003.27--2003.50 [Reserved]

Dated: November 26, 1997.

Jill Long Thompson,

Under Secretary, Rural Development.

[FR Doc. 97-33588 Filed 12-23-97; 8:45 am]

BILLING CODE 3410-XT-U