< Back to H.R. 3790 (103rd Congress, 1993–1994)

Text of the Rural Consumer Protection Act of 1994

This bill was introduced on February 3, 1994, in a previous session of Congress, but was not enacted. The text of the bill below is as of Feb 3, 1994 (Introduced).

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HR 3790 IH

103d CONGRESS

2d Session

H. R. 3790

To protect rural electric borrowers.

IN THE HOUSE OF REPRESENTATIVES

February 3, 1994

Ms. LONG (for herself, Mr. SKELTON, and Mr. GUNDERSON) introduced the following bill; which was referred to the Committee on Agriculture


A BILL

To protect rural electric borrowers.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Rural Consumer Protection Act of 1994’.

SEC. 2. PROTECTION OF RURAL ELECTRIC BORROWERS.

    The Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) is amended by inserting after section 16 the following:

‘SEC. 17. PROHIBITION AGAINST CURTAILMENT OR LIMITATION OF SERVICES OF ELECTRIC BORROWERS.

    ‘(a) IN GENERAL- Except as provided in subsection (b) of this section, section 306(b) of the Consolidated Farm and Rural Development Act shall apply to a borrower of an electric loan made or guaranteed under this Act in the same manner in which such section applies to an association referred to in such section.

    ‘(b) EXCEPTIONS-

      ‘(1) WAIVER BY THE BORROWER- A borrower of an electric loan made or guaranteed under this Act may agree to waive part or all of the protection afforded by subsection (a).

      ‘(2) PUBLIC INTEREST-

        ‘(A) IMPARTIAL FINDING- A municipality may curtail or limit the ability of a borrower of a loan made or guaranteed under this Act to provide electric service if an independent third party, pursuant to this paragraph, determines that the curtailment or limitation--

          ‘(i) is in the public interest;

          ‘(ii) will benefit consumers residing in the area in which the curtailment or limitation is to be imposed; and

          ‘(iii) will not adversely impact consumers residing outside the area.

        ‘(B) USE OF INDEPENDENT THIRD PARTY- If a borrower of a loan made or guaranteed under this Act does not agree to a request of a municipality to curtail or limit the ability of the borrower to provide electric service, the municipality may request the Governor of the State to select an independent third party to make the determination described in subparagraph (A).

        ‘(C) SELECTION OF INDEPENDENT THIRD PARTY- Upon receipt of a request under subparagraph (B), the Governor shall select as the independent third party--

          ‘(i) the public utility commission of the State if the public utility commission is authorized under State law to make the requested determination; or

          ‘(ii) any entity (including the public utility commission of the State) qualified to make the requested determination if the Governor determines that the public utility commission is not authorized under State law to make the requested determination.

        ‘(D) DETERMINATION OF INDEPENDENT THIRD PARTY IS BINDING- Any determination made by an independent third party selected in accordance with subparagraph (C) with respect to a request of a municipality to curtail or limit the ability of a borrower to provide electric service shall be binding upon the borrower and the municipality.

    ‘(c) INTERPRETIVE RULE- Subsection (a) shall not be construed to prevent a municipality from imposing a usual, customary, and nondiscriminatory fee on a borrower of a loan made or guaranteed under this Act.’.