Rural Utility Cooperative Law Blog

The Farm Credit Administration has issued an updated informational memorandum for the purposes of providing Farm Credit System institutions with updated guidance on the Paycheck Protection Program. Follow this link for the memorandum:  https://ww3.fca.gov/readingrm/infomemo/Lists/InformationMemorandums/Attachments/269/PaycheckProtectionProgramInfoMemoJuly2020.pdf  The memorandum explains,  Does the Farm Credit Act

The USDA Rural Development Division and Cooperative Services Branch of the US Department of Agriculture reported that in 2019 co-ops sold $53.2 billion in farm supplies including $18.9 billion in petroleum and energy products (36% of total net farm supplies

October is National Cooperative Month. The USDA is holding a webinar about the resources available to support cooperative development in rural America, including updates on cooperative development resources, an overview of RD funding opportunities, and information on ownership conversions. To register

The New Hampshire Electric Cooperative, serving 115 mostly rural towns, is trying again to add delivering broadband internet to its core mission of delivering electricity. A special election has been called on the issue and would change the co-op’s bylaws.

In a lawsuit brought against a nonprofit, member-owned electric cooperative corporation, the plaintiff-members (“Plaintiffs”) alleged that Southwest Mississippi Electric Cooperative (the “Cooperative”) unlawfully failed to return to its members patronage capital totaling more than $13M.[1]  The trial court granted the

Legislation SB 373 was introduced to the Georgia General Assembly in early February 2020. The bill was fashioned after legislation in 2018 that established gross negligence as the standard of care for director or officer actions and decisions in for-profit

The CARES Act included economic stimulus packages of $349 billion for Paycheck Protection Program (PPP) Loans and modified the existing Economic Injury Disaster Loan (EID) program for companies impacted by COVID-19. Further, in addition to small businesses that continued to

In order to help to help rural residents, businesses, and communities affected by the COVID-19 outbreak, the USDA Rural Development office has taken a number of steps. Rural Development will keep customers, partners, and stakeholders updated as more actions are taken to

On April 2, 2020, the FCC adopted a new telehealth program. This is a $200 million program that will provide immediate support to healthcare providers and patients across the country in direct response to the ongoing COVID-19 pandemic. This Telehealth

On March 27, 2020, the President signed into law the Coronavirus, Aid, Relief, and Economic Security Act (CARES ACT). The CARES Act provided an economic stimulus package of $349 billion dollars for Paycheck Protection Loans and modified the existing provisions

In some rural areas, including in Georgia, residents and businesses lack quality internet access. As technology continues to develop, it is becoming increasingly needed by people. Lack of access to high-speed internet in a world that revolves around technology leads

Many businesses are giving consumers a break, including many electric and telephone cooperatives. Utility cooperatives are offering free services or waiving fees and pledging not to disconnect as COVID-19 disrupts life for students, workers, families, businesses and communities. For more

In 1998 the Digital Millennium Copyright ACT (“DMCA”) was designed to respond to the growing issue of file sharing websites and digital piracy of copyrighted material. The DMCA aims to protect copyright owners and provide a process by which copyright

The FCC is seeking more than $200 Million in fines from “one or more” cellphone carriers, among them AT&T and T-Mobile.  Officials found the companies apparently violated federal law by failing to safeguard information about customers’ real-time locations. The following

A recent IRS private letter ruling addresses whether a cooperative’s gain on sale of stock resulted in patronage or non-patronage income. This particular ruling follows many others that focus on the reason for acquiring the asset. In Year 1, CORP

McKenzie Electric Cooperative recently filed a lawsuit seeking damages from its supplier Upper Missouri G&T Electric Cooperative and electricity generator Basin Electric Cooperative.  McKenzie Electric is claiming that rate increases since 2016 violate state law and breaches contractual agreements.  The dispute arises out of a synthetic fuels

The Rural Utilities Service (RUS) has transitioned from forms-based data submission to digital submission.  RUS has created a short guide explaining the change for electric and telephone borrowers.  From RUS: All RUS year-end financial and operating reports for Electric Borrowers

David Cook will be speaking at the upcoming NTCA’s RTIME conference.   The conference will be held on February 16 – 19 in Phoenix, AZ.  The conference will bring together more than 2,200 thought leaders in the Rural Broadband industry who are ready to push the

The IRS has provided guidance on how exempt taxpayers, like Section 501(c)(12) cooperatives, can claim a refund after the repealed provisions concerning qualified transportation fringes.  You can visit the IRS site for more information.  The Taxpayer Certainty and Disaster Tax Relief Act of 2019

On August 1, 2019, the Federal Communications Commission proposed closing the rural digital divide by establishing the Rural Digital Opportunity Fund, which would direct up to $20.4 billion to expand broadband in unserved rural areas.  When the FCC finalizes its proposed rules, many rural homes and small businesses would

On October 30, 2019, the Georgia Court of Appeals vacated, reversed, and remanded the denial of a cooperative bank's summary judgment motion on fiduciary duty and other claims from prospective borrowers in AgSouth Farm Credit, ACA v. West.  Borrowers brought action against an agricultural cooperative bank. They alleged the bank's failure to extend loans caused

cThese proposed regulations provide guidance to cooperatives to which sections 1381 through 1388 of the Internal Revenue Code (Code) apply (Cooperatives) and their patrons regarding the deduction for qualified business income (QBI) under section 199A(a) of the Code as well

Tax Problem for Utility Cooperatives’ Grants

Notice 2019-43 updates and clarifies timeframes when an energy property must be in service, which is the end of a calendar year no more than four years after the calendar year which construction began. Specifically, the notice provides that the