NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER

SEC. 816. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER (a) Definitions.—Section 375(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008j(a)) is amended by adding at the end the following: “(5) Intermediary.—The term ‘intermediary’ means a financial institution receiving Center funds for establishing a revolving fund and relending to an eligible entity.”. (b) Revolving Fund.—Section 375(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008j(e)) is amended— (1) in paragraph (3)—113 STAT. 1183 (A) by striking subparagraph (A) and inserting the following: “(A) In general.—The Center may use amounts in the Fund to make direct loans, loan guarantees, cooperative agreements, equity interests, investments, repayable grants, and grants to eligible entities, either directly or through an intermediary, in accordance with a strategic plan submitted under subsection (d).”; (B) in subparagraph (B), by adding at the end the following: “The Fund is intended to furnish the initial capital for a revolving fund that will eventually be privatized for the purposes of assisting the United States sheep and goat industries.”; (C) by striking subparagraph (D); (D) by striking subparagraph (E) and inserting the following: “(E) Administration.—The Center may not use more than 3 percent of the amounts in the portfolio of the Center for each fiscal year for the administration of the Center. The portfolio shall be calculated at the beginning of each fiscal year and shall include a total of— “(i) all outstanding loan balances; “(ii) the Fund balance; “(iii) the outstanding balance to intermediaries; and “(iv) the amount the Center paid for all equity interests.”; (E) in subparagraph (H)— (i) in clause (v), by striking “or” at the end; (ii) in clause (vi), by striking the period at the end and inserting “; or”; and (iii) by adding at the end the following: “(vii) purchase equity interests.”; and (F) by redesignating subparagraphs (E) through (H) as subparagraphs (D) through (G), respectively; and (2) in paragraph (6), by striking subparagraph (D). (c) Board of Directors.—Section 375(f) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008j(f)) is amended— (1) in paragraph (2), by striking subparagraph (B) and inserting the following: “(B) review any contract, direct loan, loan guarantee, cooperative agreement, equity interest, investment, repayable grant, and grant to be made or entered into by the Center and any financial assistance provided to the Center;”; (2) in paragraph (5), by striking subparagraph (C) and inserting the following: “(C) Reappointment.—A voting member may be reappointed for not more than one additional term.”; and (3) in paragraph (6), by striking subparagraph (B) and inserting the following: “(B) Reappointment.—A voting member appointed to fill a vacancy for an unexpired term may be reappointed for one full term.”. (d) Privatization.—Section 375 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008j) is amended by adding at the end the following:113 STAT. 1184 “(j) Privatization.— “(1) In general.—Privatization of a revolving fund for the purposes of assisting the United States sheep and goat industries shall occur on the earlier of— “(A) September 30, 2006; or “(B) the date as of which a total of $30,000,000 has been appropriated for the Center under subsection (e)(6)(C). “(2) Privatization proposal.—On privatization of a revolving fund in accordance with paragraph (1), the Board shall submit to the Secretary, for approval, a privatization proposal that— “(A) delineates a private successor entity to the Center; and “(B) establishes a transition plan. “(3) Private successor entity.—The private successor entity shall— “(A) have the purposes described in subsection (c); “(B) be organized under the laws of one of the States; and “(C) be able to continue the activities of the Center. “(4) Transition plan.—The transition plan shall— “(A) identify any continuing role of the Federal Government with respect to the Center; “(B) provide for the transfer of all Center assets and liabilities to the private successor entity; and “(C) delineate the status of the Board and employees of the Center. “(5) Implementation.— “(A) In general.—On approval by the Secretary of the private successor entity and the transition plan, the Center shall create the private successor entity and implement the transition plan. “(B) Authority.—The Secretary shall have all necessary authority to implement the transition plan. “(6) Transfer of funds.—On creation of the private successor entity, all funds held by the Department of the Treasury pursuant to this section shall be transferred to the private successor entity. “(7) Repeal.—On the date the Secretary publishes notice in the Federal Register that the transition plan is complete, this section is repealed.”.