
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC5906]

 
                          TITLE 7--AGRICULTURE
 
                          CHAPTER 88--RESEARCH
 
 SUBCHAPTER VI--ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
 
Sec. 5906. General rules regarding provision of assistance


(a) Notice of receipt of applications

    Not later than 30 days before the start of each period established 
by the Corporate Board for receipt of applications for financial 
assistance under section 5904 or 5905 of this title, the Corporate Board 
shall publish in the Federal Register a notice that it will receive such 
applications.

(b) Monitoring

    The Corporate Board shall monitor the progress of projects that 
receive financial assistance under this subchapter. Such monitoring may 
include on-site reviews by representatives of the Corporate Board or a 
Regional Center, the requirement of written reports by recipients of 
assistance, and supportive business and technical counseling as needed 
by the recipient.

(c) Auditing and accountability

                            (1) Required

        The Corporate Board shall establish a thorough and effective 
    system of auditing and accountability to ensure that funds paid 
    under section 5904 or 5905 of this title are used by recipients only 
    for the purposes for which those funds are provided by the 
    Corporation.

                     (2) Demonstrated compliance

        The Corporate Board may require that recipients of financial 
    assistance demonstrate that the use of financial assistance is in 
    compliance with the agreement by which that assistance is provided.

(d) Information exempt from disclosure

    With respect to research, development, demonstration, or 
commercialization projects carried out with the participation of private 
research institutions or commercial companies, information received by 
the Corporation incident thereto shall be exempt from disclosure under 
section 552 of title 5 and shall not be made available publicly except--
        (1) with the approval of the person providing the information; 
    or
        (2) in a judicial or administrative proceeding in which such 
    information is subject to protective order.

(e) Overhead and administrative costs

    The Corporate Board shall require that applications or responses to 
requests for proposals issued by the Corporation for grants, contracts, 
or cooperative agreements include detailed estimates of project overhead 
and administrative costs. In selecting such applications or proposals 
for awards, the Corporation shall give preference to those with the 
lowest effective costs.

(f) Prohibition on certain uses of assistance

    No grant may be awarded, or contract or cooperative agreement 
entered into under this subchapter, for the acquisition or construction 
of a building or a facility.

(g) Reports

                           (1) Preparation

        As soon as practicable after the end of each fiscal year, the 
    Corporate Board shall prepare and submit to the Secretary a report 
    on the activities, progress, and accomplishments of the Corporation 
    during such fiscal year. The report shall include--
            (A) a description of the progress, activities, and 
        accomplishments of the Corporation during that fiscal year and 
        the expenditures by the Corporation for its information and 
        other service activities; and
            (B) a copy of the operating plan prepared by the Corporate 
        Board under section 5903(c)(6) \1\ of this title.
---------------------------------------------------------------------------
    \1\ See References in Text note below.
---------------------------------------------------------------------------

                           (2) Transmittal

        The Secretary shall transmit each report received under 
    paragraph (1) to the President and Congress not later than 30 days 
    after the date on which the Secretary receives the report.

(Pub. L. 101-624, title XVI, Sec. 1662, Nov. 28, 1990, 104 Stat. 3764; 
Pub. L. 104-127, title VII, Sec. 726, Apr. 4, 1996, 110 Stat. 1119.)

                       References in Text

    Section 5903 of this title, referred to in subsec. (g)(1)(B), was 
amended generally by Pub. L. 104-127, title VII, Sec. 723(a), Apr. 4, 
1996, 110 Stat. 1115, and, as so amended, subsec. (c) of section 5903 no 
longer contains a par. (6). See section 5903(c)(1)(E) of this title.


                               Amendments

    1996--Subsec. (a). Pub. L. 104-127, Sec. 726(2), substituted 
``Corporate Board'' for ``Board'' in two places.
    Subsec. (b). Pub. L. 104-127, Sec. 726(2), (3), in first sentence, 
substituted ``The Corporate Board'' for ``The Board'', in second 
sentence, substituted ``Corporate Board or a Regional Center'' for 
``Board, a Regional Center, or the Advisory Council'' and struck out at 
end ``The Board may use the Advisory Council appointed under section 
5905 of this title to assist in such monitoring.''
    Subsecs. (c) to (e), (g). Pub. L. 104-127, Sec. 726(1), (2), 
substituted ``Corporation'' for ``Center'' and ``Corporate Board'' for 
``Board'' wherever appearing.
