7 U.S.C. § 5101 — Qualifying States

Page 1738 TITLE 7—AGRICULTURE § 5101 Sec. 5105. Report. 5106. Authorization of appropriations. § 5101. Qualifying States (a) In general A State is a qualifying State if the Secretary of Agriculture (hereinafter in this chapter re- ferred to as the ‘‘Secretary’’) determines that the State has in effect a mediation program that meets the requirements of subsection (c). (b) Determination by Secretary Within 15 days after the Secretary receives from the Governor of a State a description of the mediation program of the State and a state- ment certifying that the State has met all of the requirements of subsection (c), the Sec- retary shall determine whether the State is a qualifying State. (c) Requirements of State mediation programs (1) Issues covered (A) In general To be certified as a qualifying State, the mediation program of the State must pro- vide mediation services to persons described in paragraph (2) that are involved in agricul- tural loans (regardless of whether the loans are made or guaranteed by the Secretary or made by a third party). (B) Other issues The mediation program of a qualifying State may provide mediation services to per- sons described in paragraph (2) that are in- volved in one or more of the following issues: (i) Wetlands determinations. (ii) Compliance with farm programs, in- cluding conservation programs and the na- tional organic program established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.). (iii) Agricultural credit. (iv) Rural water loan programs. (v) Grazing on National Forest System land. (vi) Pesticides. (vii) Lease issues, including land leases and equipment leases. (viii) Family farm transition. (ix) Farmer-neighbor disputes. (x) Such other issues as the Secretary or the head of the department of agriculture of each participating State considers ap- propriate for better serving the agricul- tural community and persons eligible for mediation. (C) Mediation services Funding provided for the mediation pro- gram of a qualifying State may also be used to provide credit counseling to persons de- scribed in paragraph (2)— (i) prior to the initiation of any medi- ation involving the Department of Agri- culture; or (ii) unrelated to any ongoing dispute or mediation in which the Department of Ag- riculture is a party. (2) Persons eligible for mediation (A) In general Subject to subparagraph (B), the persons referred to in paragraph (1) include— (i) agricultural producers; (ii) creditors of producers (as applicable); (iii) persons directly affected by actions of the Department of Agriculture; and (iv) any other persons involved in an issue for which mediation services are pro- vided by a mediation program described in paragraph (1)(B). (B) Voluntary participation (i) In general Subject to clause (ii) and section 5103 of this title, a person may not be compelled to participate in mediation services pro- vided under this Act. (ii) State laws Clause (i) shall not affect a State law re- quiring mediation before foreclosure on agricultural land or property. (3) Certification conditions The Secretary shall certify a State as a qualifying State with respect to the issues proposed to be covered by the mediation pro- gram of the State if the mediation program— (A) provides for mediation services that, if decisions are reached, result in mediated, mutually agreeable decisions between the parties to the mediation; (B) is authorized or administered by an agency of the State government or by the Governor of the State; (C) provides for the training of mediators; (D) provides that the mediation sessions shall be confidential; (E) ensures, in the case of agricultural loans, that all lenders and borrowers of agri- cultural loans receive adequate notification of the mediation program; and (F) ensures, in the case of other issues cov- ered by the mediation program, that— (i) the Department of Agriculture re- ceives adequate notification of those issues; and (ii) persons directly affected by actions of the Department of Agriculture receive adequate notification of the mediation program. (d) Definition of mediation services In this section, the term ‘‘mediation services’’, with respect to mediation or a request for medi- ation, may include all activities related to— (1) the intake and scheduling of cases; (2) the provision of background and selected information regarding the mediation process; (3) financial advisory and counseling serv- ices (as appropriate) performed by a person other than a State mediation program medi- ator; and (4) the mediation session. (Pub. L. 100–233, title V, § 501, Jan. 6, 1988, 101 Stat. 1662; Pub. L. 100–399, title V, § 501, Aug. 17, 1988, 102 Stat. 1005; Pub. L. 103–354, title II, § 282(a), Oct. 13, 1994, 108 Stat. 3233; Pub. L. 106–472, title III, § 306(a), Nov. 9, 2000, 114 Stat. Page 1739 TITLE 7—AGRICULTURE § 5102 2072; Pub. L. 115–334, title V, § 5402(a), Dec. 20, 2018, 132 Stat. 4674.) Editorial Notes REFERENCES IN TEXT The Organic Foods Production Act of 1990, referred to in subsec. (c)(1)(B)(ii), is title XXI of Pub. L. 101–624, Nov. 28, 1990, 104 Stat. 3935, which is classified generally to chapter 94 (§ 6501 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 6501 of this title and Tables. This Act, referred to in subsec. (c)(2)(B)(i), is Pub. L. 100–233, Jan. 6, 1988, 101 Stat. 1568, known as the Agri- cultural Credit Act of 1987. Provisions relating to medi- ation services are contained in title V of the Act, which is classified principally to this chapter. For complete classification of this Act to the Code, see Tables. AMENDMENTS 2018—Subsec. (c)(1)(B). Pub. L. 115–334, § 5402(a)(1)(A)(i), struck out ‘‘under the jurisdiction of the Department of Agriculture’’ after ‘‘the following issues’’ in introductory provisions. Subsec. (c)(1)(B)(ii). Pub. L. 115–334, § 5402(a)(1)(A)(ii), inserted ‘‘and the national organic program established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.)’’ before period at end. Subsec. (c)(1)(B)(vii) to (x). Pub. L. 115–334, § 5402(a)(1)(A)(iii), added cls. (vii) to (x) and struck out former cl. (vii) which read as follows: ‘‘Such other issues as the Secretary considers appropriate.’’ Subsec. (c)(1)(C). Pub. L. 115–334, § 5402(a)(1)(B), added subpar. (C). Subsec. (c)(2)(A)(iv). Pub. L. 115–334, § 5402(a)(2), added cl. (iv). Subsec. (c)(3)(F). Pub. L. 115–334, § 5402(a)(3), inserted dash after ‘‘program, that’’ and cl. (ii) designation be- fore ‘‘persons’’ and added cl. (i). 2000—Subsec. (c)(1), (2). Pub. L. 106–472, § 306(a)(1), added pars. (1) and (2) and struck out former pars. (1) and (2), which required State mediation program to provide services for producers, their creditors, and other persons involved in agricultural loans, or in- volved in agricultural loans and such issues as wetlands determinations, compliance with farm programs, agri- cultural credit, rural water loan programs, grazing on National Forest System lands, pesticides, or such other issues considered appropriate. Subsec. (d). Pub. L. 106–472, § 306(a)(2), added subsec. (d). 1994—Subsec. (a). Pub. L. 103–354, § 282(a)(1), sub- stituted ‘‘a mediation program’’ for ‘‘an agricultural loan mediation program’’. Subsec. (b). Pub. L. 103–354, § 282(a)(2), struck out ‘‘ag- ricultural loan’’ before ‘‘mediation program’’. Subsec. (c). Pub. L. 103–354, § 282(a)(3), added subsec. (c) and struck out heading and text of former subsec. (c). Text read as follows: ‘‘Within 15 days after the Sec- retary receives a description of a State agricultural loan mediation program, the Secretary shall certify the State as a qualifying State if the State program— ‘‘(1) provides for mediation services to be provided to producers, and their creditors, that, if decisions are reached, result in mediated, mutually agreeable decisions between parties under an agricultural loan mediation program; ‘‘(2) is authorized or administered by an agency of the State government or by the Governor of the State; ‘‘(3) provides for the training of mediators; ‘‘(4) provides that the mediation sessions shall be confidential; and ‘‘(5) ensures that all lenders and borrowers of agri- cultural loans receive adequate notification of the mediation program.’’ 1988—Subsec. (b). Pub. L. 100–399 struck out comma after ‘‘Governor of a State’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–399 effective as if enacted immediately after enactment of Pub. L. 100–233, which was approved Jan. 6, 1988, see section 1001(a) of Pub. L. 100–399, set out as a note under section 2002 of Title 12, Banks and Banking. SHORT TITLE OF 2010 AMENDMENT Pub. L. 111–233, § 1, Aug. 16, 2010, 124 Stat. 2493, pro- vided that: ‘‘This Act [amending section 5106 of this title] may be cited as the ‘Agricultural Credit Act of 2010’.’’ § 5102. Matching grants to States (a) Matching grants Within 60 days after the Secretary certifies the State as a qualifying State under section 5101(b) of this title, the Secretary shall provide financial assistance to the State, in accordance with subsection (b), for the operation and ad- ministration of the mediation program. (b) Amount of grant (1) In general Subject to paragraph (2), the Secretary shall pay to a State under subsection (a) not more than 70 percent of the cost of the operation and administration of the mediation program within the State. (2) Maximum amount The Secretary shall not pay more than $500,000 per year to a single State under sub- section (a). (c) Use of grant (1) In general Each State that receives an amount paid under subsection (a) shall use that amount only for the operation and administration of the mediation program of the State with re- spect to which the amount was paid. (2) Operation and administration expenses For purposes of paragraph (1), operation and administration expenses for which a grant may be used include— (A) salaries; (B) reasonable fees and costs of mediators; (C) office rent and expenses, such as utili- ties and equipment rental; (D) office supplies; (E) administrative costs, such as workers’ compensation, liability insurance, the em- ployer’s share of Social Security, and nec- essary travel; (F) education and training; (G) security systems necessary to ensure the confidentiality of mediation sessions and records of mediation sessions; (H) costs associated with publicity and promotion of the mediation program; (I) preparation of the parties for medi- ation; and (J) financial advisory and counseling serv- ices for parties requesting mediation. (d) Penalty If the Secretary determines that a State has not complied with subsection (c), such State