RURAL INDUSTRIALIZATION ASSISTANCE.

SEC. 747. RURAL INDUSTRIALIZATION ASSISTANCE. (a) In General.— Section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) is amended— (1) in the first sentence of subsection (a)— (A) by striking “and” at the end of clause (2); and (B) by inserting before the period the following: “, and (4) to facilitate economic opportunity for industries undergoing adjustment from terminated Federal agricultural price and income support programs or increased competition from foreign trade”; (2) in subsection (b), by striking “(b)(1)” and all that follows through “(2) The” and inserting the following: “(b) Solid Waste Management Grants.— The”; (3) in subsection (c)— (A) by striking “(c)(1) The” and inserting the following: “(c) Rural Business Enterprise Grants.— “(1) In general.— The”; (B) in paragraph (1), by inserting “(including nonprofit entities)” after “private business enterprises”; (C) in paragraph (2)— (i) by striking “(2) The” and inserting the following: “(2) Passenger transportation services or facilities.— The”; and (ii) by striking “make grants” and inserting “award grants on a competitive basis”; and (D) by adding at the end the following: “(3) Grants to aid industries in adjusting to terminated federal agricultural programs or increased foreign competition.— The Secretary may make grants under this section to facilitate economic opportunity for industries 110 STAT. 1126undergoing adjustment from terminated Federal agricultural price and income support programs or increased competition from foreign trade.”; (4) by striking subsection (e) and inserting the following: “(e) Rural Cooperative Development Grants.— “(1) Definitions.— In this subsection: “(A) Nonprofit institution.— The term ‘nonprofit institution’ means any organization or institution, including an accredited institution of higher education, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual. “(B) United states.— The term ‘United States’ means the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the other territories and possessions of the United States. “(2) Grants.— The Secretary shall make grants under this subsection to nonprofit institutions for the purpose of enabling the institutions to establish and operate centers for rural cooperative development. “(3) Goals.— The goals of a center funded under this subsection shall be to facilitate the creation of jobs in rural areas through the development of new rural cooperatives, value added processing, and rural businesses. “(4) Application.— Any nonprofit institution seeking a grant under paragraph (2) shall submit to the Secretary an application containing a plan for the establishment and operation by the institution of a center or centers for cooperative development. The Secretary may approve the application if the plan contains the following: “(A) A provision that substantiates that the center will effectively serve rural areas in the United States. “(B) A provision that the primary objective of the center will be to improve the economic condition of rural areas through cooperative development. “(C) A description of the activities that the center will carry out to accomplish the objective. The activities may include the following: “(i) Programs for applied research and feasibility studies that may be useful to individuals, cooperatives, small businesses, and other similar entities in rural areas served by the center. “(ii) Programs for the collection, interpretation, and dissemination of information that may be useful to individuals, cooperatives, small businesses, and other similar entities in rural areas served by the center. “(iii) Programs providing training and instruction for individuals, cooperatives, small businesses, and other similar entities in rural areas served by the center. “(iv) Programs providing loans and grants to individuals, cooperatives, small businesses, and other similar entities in rural areas served by the center. “(v) Programs providing technical assistance, research services, and advisory services to individuals, cooperatives, small businesses, and other similar entities in rural areas served by the center. 110 STAT. 1127 “(vi) Programs providing for the coordination of services and sharing of information among the center. “(D) A description of the contributions that the activities are likely to make to the improvement of the economic conditions of the rural areas for which the center will provide services. “(E) Provisions that the center, in carrying out the activities, will seek, where appropriate, the advice, participation, expertise, and assistance of representatives of business, industry, educational institutions, the Federal Government, and State and local governments. “(F) Provisions that the center will take all practicable steps to develop continuing sources of financial support for the center, particularly from sources in the private sector. “(G) Provisions for— “(i) monitoring and evaluating the activities by the nonprofit institution operating the center; and “(ii) accounting for money received by the institution under this section. “(5) Awarding grants.— Grants made under paragraph (2) shall be made on a competitive basis. In making grants under paragraph (2), the Secretary shall give preference to grant applications providing for the establishment of centers for rural cooperative development that— “(A) demonstrate a proven track record in administering a nationally coordinated, regionally or State-wide operated project; “(B) demonstrate previous expertise in providing technical assistance in rural areas; “(C) demonstrate the ability to assist in the retention of businesses, facilitate the establishment of cooperatives and new cooperative approaches, and generate employment opportunities that will improve the economic conditions of rural areas; “(D) demonstrate the ability to create horizontal linkages among businesses within and among various sectors in rural areas of the United States and vertical linkages to domestic and international markets; “(E) commit to providing technical assistance and other services to underserved and economically distressed areas in rural areas of the United States; and “(F) commit to providing greater than a 25 percent matching contribution with private funds and in-kind contributions. “(6) 1-year grants; authority to approve grant for 1 additional year without application.— The Secretary shall make grants under this subsection for a period of 1 year. The Secretary shall evaluate programs receiving assistance under this subsection. If the Secretary determines it to be in the best interest of the program, the Secretary may award an additional grant to the program for the immediately succeeding year without application for the grant. “(7) Technical assistance to prevent excessive unemployment or underemployment.— In carrying out this subsection, the Secretary may provide technical assistance to alleviate or prevent conditions of excessive unemployment, 110 STAT. 1128underemployment, outmigration, or low employment growth in economically distressed rural areas that the Secretary determines have a substantial need for the assistance. The assistance may include planning and feasibility studies, management and operational assistance, and studies evaluating the need for development potential of projects that increase employment and improve economic growth in the areas. “(8) Grants to defray administrative costs.— The Secretary may make grants to defray not to exceed 75 percent of the costs incurred by organizations and public bodies to carry out projects for which grants or loans are made under this subsection. For purposes of determining the non-Federal share of the costs, the Secretary shall consider contributions in cash and in kind, fairly evaluated, including premises, equipment, and services. “(9) Authorization of appropriations.— There are authorized to be appropriated to carry out this subsection $50,000,000 for each of fiscal years 1996 through 2002.”; (5) by striking subsections (f), (g), (h), and (i); (6) by redesignating subsection (j) as subsection (f); and (7) by adding at the end the following: “(g) Loan Guarantees for the Purchase of Cooperative Stock.— “(1) Definition of farmer.— In this subsection, the term ‘farmer’ means any farmer that the Secretary determines is a family farmer. “(2) Loan guarantees.— The Secretary may guarantee loans under this section to individual farmers for the purpose of purchasing start-up capital stock of a farmer cooperative established for the purpose of processing an agricultural commodity. “(3) Eligibility.— To be eligible for a loan guarantee under this subsection, a farmer must produce the agricultural commodity that will be processed by the cooperative.”. (b) Conforming Amendments.— (1) Clause (iii) of section 307(a)(6)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(6)(B)) (as redesignated by section 661(a)(2)) is amended by striking “subsections (d) and (e) of section 310B” and inserting “section 310B(d)”. (2) Section 232(c)(2) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6942(c)(2)) is amended— (A) by striking “310B(b)(2)” and inserting “310B(b)”; and (B) by striking “1932(b)(2)” and inserting “1932(b)”. (3) Section 233(b) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6943(b)) is amended— (A) by striking paragraph (2); and (B) by redesignating paragraph (3) as paragraph (2).