Creating Jobs Through Cooperatives Act - Directs the Secretary of Housing and Urban Development (HUD) to establish a National Cooperative Development Program to create jobs and increase economic development in eligible project areas by promoting cooperative development.
Defines "eligible project areas" as those located within:
Defines "cooperative development" as specified technical assistance for the establishment of cooperative organizations, which are autonomous associations of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.
Authorizes the Secretary, through a competitive process, to make one- to -five-year grants to local cooperative development centers.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2437 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2437
To authorize the Secretary of Housing and Urban Development to
establish a national program to create jobs and increase economic
development by promoting cooperative development.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 19, 2013
Mr. Fattah introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To authorize the Secretary of Housing and Urban Development to
establish a national program to create jobs and increase economic
development by promoting cooperative development.
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 ``Creating Jobs Through Cooperatives
Act''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--The Congress finds the following:
(1) That Federal policy can promote cooperative
development, which demonstrably has the following benefits for
communities located in such areas:
(A) Advancing local economic stability.
(B) Increasing local circulation of capital,
thereby increasing economic multipliers and the impact
of community investment to spur locally oriented
economic growth.
(C) Developing, attracting, and anchoring new
productive capital in low-income communities.
(D) Expanding investment opportunities and asset
creation for low- and moderate-income Americans.
(2) Cooperatives operate in all 50 States and across all
sectors of the United States economy, including industries such
as energy, telecommunications, food distribution, insurance,
credit unions, agriculture, health, housing, and wholesale and
retail purchasing and distribution
(3) There are 29,000 cooperatives in the United States that
account for more than $3 trillion in assets, over $500 billion
in total revenue, $25 billion in wages and benefits, and nearly
two million jobs
(b) Purpose.--The purpose of this Act is to establish a Federal
program that will create jobs and increase economic development by
promoting cooperative development.
SEC. 3. DEFINITIONS.
In this Act:
(1) Cooperative development.--The term ``cooperative
development'' means technical assistance provided for the
purpose of--
(A) providing financial forecasting, feasibility
analysis, business planning, and other preparatory
activity to ensure that a cooperative organization, or
organizations that are in the process of establishing
such an organization, are grounded in sound business
practices;
(B) assisting with establishing incorporation
documents, bylaws, and policies that ensure that
cooperative organizations--
(i) adhere to legal obligations of a local
or State government or the Federal Government;
and
(ii) are governed by transparent and
agreed-upon rules;
(C) educating, with respect to how cooperative
organizations function--
(i) board members, management, and
employees of cooperative organizations;
(ii) local communities affected by such
organizations and the general public; and
(iii) professionals involved in cooperative
development;
(D) providing organizational planning for
cooperative organizations, including board meetings and
board development, and strategic planning;
(E) hosting networking activities and conferences
involving cooperative organizations, entities that work
with such organizations, and professional organizations
that engage in cooperative development;
(F) providing professional development of
professionals involved in cooperative development by
offering training focused on cooperative development;
and
(G) providing administrative and operational set-up
of cooperative organizations.
(2) Cooperative organization.--The term ``cooperative
organization'' means an autonomous association of persons
united voluntarily to meet their common economic, social, and
cultural needs and aspirations through a jointly-owned and
democratically-controlled enterprise.
(3) Eligible project area.--
(A) In general.--The term ``eligible project area''
means an area located within--
(i) a census tract that is defined as low-
or moderate-income by the Bureau of the Census
of the Department of Commerce;
(ii) a population census tract that is
treated as a low-income community under section
45D(e) of the Internal Revenue Code of 1986; or
(iii) subject to subparagraph (B), an area
that--
(I) is adjacent or close to an area
that meets the requirements of either
clause (i) or (ii); and
(II) is given special approval by
the Secretary to be classified as an
eligible project area.
(B) Limitation.--The Secretary shall limit the
number of projects funded under this Act that are
located in an area described in subparagraph (A)(iii).
(4) Local cooperative development center.--The term ``local
cooperative development center'' means a nonprofit
organization, college, or university, or a group of such
organizations, colleges, or universities, with expertise in
establishing and developing cooperative organizations.
(5) Program.--The term ``program'' means the National
Cooperative Development Program established under section 4.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development, or the Secretary's designee.
SEC. 4. NATIONAL COOPERATIVE DEVELOPMENT PROGRAM.
(a) Establishment.--The Secretary of Housing and Urban Development
shall establish a program to be known as the National Cooperative
Development Program to carry out the purpose described in section 2(b).
(b) Assistance for Cooperative Development.--
(1) Uses.--The Secretary shall use amounts made available
for the program for--
(A) providing grants to local cooperative
development centers, to carry out activities that
promote cooperative development, that are selected for
such grants under paragraph (3)(B);
(B) partnering with one or more financial
institutions to--
(i) establish a revolving loan program that
will provide loans to cooperative organizations
to undertake cooperative development; and
(ii) develop other loan programs and
financial products that can be accessed by
cooperative organizations; and
(C) carrying out any other activities that the
Secretary deems necessary to the furtherance of the
purposes of this Act.
(2) Allocation of amounts.--The Secretary shall allocate
not less than 50 percent of the amounts made available for the
program for grants under paragraph (1)(A) to local cooperative
development centers.
(3) Grants to local cooperative development centers.--
(A) Grants.--The Secretary may make grants,
pursuant to paragraph (1)(A)(i), to local development
centers selected under this paragraph, and shall enter
into grant agreements with such centers selected and
provide grants in accordance with such agreements. Each
grant agreement for a local development center shall
provide for a grant for at least one fiscal year and
may provide for grants for a period not to exceed 3
fiscal years.
(B) Selection.--The Secretary shall select, through
a competitive process, local cooperative development
centers to receive grants pursuant to paragraph
(1)(A)(i).
(C) Criteria for selection.--In selecting local
cooperative development centers to receive such grants,
the Secretary shall take into consideration the
following:
(i) The technical capacity of the center to
carry out eligible projects.
(ii) The ability of the center to deliver
technical assistance.
(iii) The capacity and commitment of the
center to offering cooperative development.
(iv) Whether the center can provide
matching funding of at least 15 percent of
grant amounts provided under the program to the
center.
(v) The record of the center in developing
successful cooperative organizations.
(vi) The ability of the center to have a
positive economic impact on an area through job
creation or retention, affordable housing
creation, or wealth creation.
(vii) Such other considerations as the
Secretary may consider appropriate.
(4) Failure to meet performance targets.--If the Secretary
determines that an entity awarded funds under the program has
not met the performance targets established pursuant to
subsection (e), is not making reasonable progress toward
meeting such measures, or is otherwise in violation of a grant
agreement entered into pursuant to paragraph (3)(C) of this
subsection, the Secretary may--
(A) withhold financial assistance under this Act
until the performance measures are met; or
(B) in the case of a grant made pursuant to
paragraph (1)(A), terminate the grant agreement.
(c) Other Activities.--Under the program, the Secretary shall--
(1) develop and provide technical assistance, educational,
and other materials to assist local cooperative development
centers that are receiving funds under the program to develop
cooperative organizations;
(2) monitor and evaluate the performance of such local
centers;
(3) provide guidance, information on best practices, and
technical assistance to communities seeking to establish
cooperative organizations;
(4) establish the eligibility criteria for projects to be
carried out using assistance provided under this Act; and
(5) develop program and reporting guidelines.
(d) Performance Targets.--The Secretary shall establish performance
targets for the program, which shall include, at a minimum, a
requirement that a significant percentage of projects funded under the
program shall involve cooperative organizations that are women- or
minority-owned.
SEC. 5. REPORTS.
(a) By Local Cooperative Development Centers and Financial
Institutions.--For each grant that a local cooperative development
center or financial institution receives pursuant to section
4(b)(1)(A), the local center or institution shall submit to the
Secretary, not later than the expiration of the 12-month period after
initial receipt of such grant amounts, a report that includes--
(1) identification of the total amount of such grant
amounts that have been expended;
(2) a description of the activities undertaken by such
local center or institution with such grant amounts; and
(3) other information as the Secretary may require.
(b) By the Secretary.--Not later than 3 years after the date of the
enactment of this Act, and annually thereafter for each year assistance
is provided under this Act, the Secretary shall submit to the Congress
a report that includes--
(1) identification of the number of cooperative
organizations created using amounts made available under this
Act;
(2) best practices from the local cooperative development
centers that are awarded grants under this Act and the economic
benefits to the local communities that such centers serve
resulting from such use of funds;
(3) an evaluation of compliance with the performance
targets established pursuant to section 4(d);
(4) case studies featuring select cooperative development
organizations that benefitted from the program; and
(5) any additional information, including statistics, that
would help promote future cooperative development.
SEC. 6. REGULATIONS.
Not later than 180 days after the date of the enactment of this
Act, the Secretary shall issue regulations necessary to carry out this
Act.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary to carry
out the National Cooperative Development Program, to remain available
until expended, $25,000,000 for each of fiscal years 2013 through 2017.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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