110 STAT. 1150 PUBLIC LAW 104-127—APR. 4, 1996 7 USC 917. Regulations. (2) in the second sentence, by striking ": Provided further, That all" and all the': follows through "loan: And provided further, That" and inserting ", except that"; and (3) in the third sentence, by striking "and section 5". SEC. 774. LOANS FOR ELECTRICAL AND PLUMBING EQUIPMENT. (a) IN GENERAL.—Section 5 of the Rural Electrification Act of 1936 (7 U.S.C. 905) is repealed. (b) CONFORMING AMENDMENTS.— Section 12(a) of the Rural Electrification Act of 1936 (7 U.S.C. 912(a)) is amended— (1) by striking ": Provided, however, That" and inserting ", except that,"; and (2) by striking ", and with respect to any loan made under section 5," and all that follows through "section 3". SEC. 775. TESTIMONY ON BUDGET REQUESTS. Section 6 of the Rural Electrification Act of 1936 (7 U.S.C. 906) is amended by striking the second sentence. SEC. 776. TRANSFER OF FUNCTIONS OF ADMINISTRATION CREATED BY EXECUTIVE ORDER. Section 8 of the Rural Electrification Act of 1936 (7 U.S.C. 908) is repealed. SEC. 777. ANNUAL REPORT. Section 10 of the Rural Electrification Act of 1936 (7 U.S.C. 910) is repealed. SEC. 778. PROHIBITION ON RESTRICTING WATER AND WASTE FACILITY SERVICES TO ELECTRIC CUSTOMERS. The Rural Electrification Act of 1936 is amended by inserting after section 16 (7 U.S.C. 916) the following: "SEC. 17. PROHIBITION ON RESTRICTING WATER AND WASTE FACILITY SERVICES TO ELECTRIC CUSTOMERS. "(a) PROHIBITION.— Assistance under any rural development program administered by the Secretary or any agency of the Department of Agriculture shall not be conditioned on any requirement that the recipient of the assistance accept or receive electric service from any particular utility, supplier, or cooperative. "(b) ENSURING COMPLIANCE.— The Secretary shall establish, by regulation, adequate safeguards to ensure that assistance under any rural development program is not subject to such a condition. The safeguards shall include periodic certifications and audits, and appropriate measures and sanctions against any person violating, or attempting to violate subsection (a). "(c) DEFINITION OF RURAL DEVELOPMENT PROGRAMS.— In this section, the term 'rural development program' means the following: "(1) Sections 304(b), 306, 306A, 306C, 306D, 310B, and 375 and subtitle E of the Consolidated Farm and Rural Development Act (7 U.S.C. 1924(b), 1926, 1926a, 1926c, 1926d, and 1932). "(2) Subtitle G of title XVI and sections 2281, 2333, and 2381 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5901-5908, 5177a, 950aaa-2, and 3125b). "(3) Subtitle C of title IX of the Food, Agriculture, Conservation, and Trade Act Amendments of 1991 (Public Law 102- 237; 7 U.S.C. 5930 note).
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