SECTION 1. SHORT TITLE; REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Appalachian 
Regional Development Act Amendments of 1997''.
    (b) References.--Except as otherwise expressly provided, whenever 
in this Act an amendment is expressed in terms of an amendment to a 
section or other provision, the reference shall be considered to be 
made to a section or other provision of the Appalachian Regional 
Development Act of 1965 (40 U.S.C. App. 1 et seq.).

SEC. 2. FINDINGS AND PURPOSES.

    (a) Elimination of Growth Center Requirement.--Section 2 (40 U.S.C. 
App. 2) is amended by deleting the sixth sentence of subsection (a).
    (b) 1997 Statement of Purpose.--Section 2 (40 U.S.C. App. 2) is 
further amended by deleting subsection (b) and substituting the 
following:
    ``(b) The Congress further finds and declares that, while 
substantial progress had been made in fulfilling many of the objectives 
of this Act, rapidly changing national and global economies over the 
past decade have created new challenges for rural areas throughout the 
Nation and especially for the Appalachian region. It is, therefore, 
also the purpose of this Act to assist Appalachia to become a region 
with an educated and trained work force, healthy people, a sound 
physical infrastructure, a dynamic economic base, and the local and 
regional capacity to be economically self-sustaining. In carrying out 
this Act, the Commission shall be an advocate for and partner with the 
people of Appalachia and shall seek to achieve a viable and self-
sustaining economy for the region in accordance with the following 
principles:
            ``(1) The most valuable investment that can be made in the 
        region is in its people.
            ``(2) Entrepreneurial economies that focus on high-value-
        added goods and services offer the best future for many parts 
        of the region.
            ``(3) Strategies and objectives should take into 
        consideration participation in the global economy.
            ``(4) Economic development should be community-based and 
        should emphasize local decision making.
            ``(5) Commission investments should take advantage of 
        technology and telecommunications applications.
            ``(6) The Commission shall promote an atmosphere of open 
        and productive communication among all stakeholders in the 
        Region.
            ``(7) The Commission shall focus special attention on the 
        areas of greatest need.''.

SEC. 3. MEETINGS.

    (a) Annual Meeting Requirement.--Section 101(a) (40 U.S.C. App. 
101(a)) is amended by adding at the end the following: ``The Commission 
shall conduct at least one meeting each year with the Federal Co-
Chairman and at least a majority of the State members present.''.
    (b) Additional Meetings by Electronic Means.--Section 101 (40 
U.S.C. App. 101) is amended as follows:
            (1) In subsection (a), as amended by subsection (a) of this 
        section, by adding at the end the following: ``The Commission 
        may conduct such additional meetings by electronic means as the 
        Commission considers advisable, including meetings to decide 
        matters requiring an affirmative vote.''
            (2) In subsection (c) by striking ``to be present'' at the 
        end of the fourth sentence.
    (c) Decisions Requiring a Quorum.--Section 101(b) (40 U.S.C. App. 
101(b)) is amended by striking the third sentence and inserting the 
following: ``No decision involving Commission policy, approval of 
State, regional, or subregional development plans or implementing 
investment programs, any modification or revision of the Appalachian 
Regional Commission Code, any allocation of funds among the States, or 
the criteria for the designation of counties as distressed or 
economically strong under section 226 may be made without a quorum of 
State members.''.

SEC. 4. AUTHORIZATIONS FOR ADMINISTRATIVE EXPENSES.

    Section 105(b) (40 U.S.C. App. 105(b)) is amended to read as 
follows:
    ``(b) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section $3,645,000 for fiscal year 1998 and 
        such sums as may be necessary for each of fiscal years 1999 
        through 2002. Such sums shall remain available until expended.
            ``(2) Expenses of the federal co-chairman.--Of the amounts 
        appropriated pursuant to paragraph (1), not to exceed 
        $1,225,000 for fiscal year 1998 and such sums as may be 
        necessary for each of fiscal years 1999 through 2002 shall be 
        available for expenses of the Federal Co-Chairman, the Federal 
        Co-Chairman's alternate, and the Federal Co-Chairman's 
        staff.''.

SEC. 5. COMPENSATION OF EMPLOYEES.

    Section 106(2) (40 U.S.C. App. 106(2)) is amended by striking ``the 
salary of the alternate to the Federal Co-Chairman on the Commission as 
provided in section 101'' and inserting ``the maximum rate for the 
Senior Executive Service under section 5382 of title 5, United States 
Code, including any applicable locality-based comparability payment 
that may be authorized under section 5304(h)(2)(c) of such title 5.''.

SEC. 6. EXTENSION OF LEASE TERMS.

    Section 106(7) (40 U.S.C. App. 106(7)) is amended by striking 
``1982'' and inserting ``2002''.

SEC. 7. HIGHWAY SYSTEM.

    (a) Authorization of Appropriations.--Section 201(g) (40 U.S.C. 
App. 201(g)) is amended to read as follows:
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $90,000,000 for fiscal year 1998 
and such sums as may be necessary for each of fiscal years 1999 through 
2002. Such sums shall remain available until expended.''.
    (b) Cost Sharing--General Rule.--Section 201(h)(1) (40 U.S.C. App. 
201(h)(1)) is amended by striking ``70 per centum'' and inserting ``80 
percent''.

SEC. 8. SUPPLEMENTS TO FEDERAL GRANT-IN-AID PROGRAMS; FUNDING 
              LIMITATION.

    (a) Availability of Amounts.--The first sentence of section 214(a) 
(40 U.S.C. App. 214(a)) is amended by striking ``the President is 
authorized to provide funds to the Federal Co-Chairman to be used'' and 
inserting in lieu thereof ``the Federal Co-Chairman may use amounts 
made available to carry out this Act''.
    (b) Federal Grant-in-Aid Programs Defined.--The first sentence of 
section 214(c) (40 U.S.C. App. 214(c)) is amended by striking ``on or 
before December 31, 1980,''.
    (c) Limitation on Covered Road Projects.--The second sentence of 
section 214(c) is amended by inserting ``authorized by title 23, United 
States Code'' after ``road construction''.

SEC. 9. PROGRAM DEVELOPMENT CRITERIA.

    (a) Considerations.--Section 224(a) (40 U.S.C. App. 224(a)) is 
amended by inserting before the semicolon at the end of paragraph (1) 
the following: ``or in a severely and persistently distressed and 
underdeveloped county or area''.
    (b) Outcome Measurements.--Section 224(a) is further amended by 
striking the period at the end of paragraph (5) and inserting in lieu 
thereof a semicolon and adding the following: ``and (6) the extent to 
which the project design provides for detailed outcome measurements by 
which grant expenditures may be evaluated.''.
    (c) Removal of Limitations.--Section 224(b) (40 U.S.C. App. 224(b)) 
is amended to read as follows:
    ``(b) Limitation.--No financial assistance made available under 
this Act may be used to assist establishments relocating from one area 
to another.''.

SEC. 10. DISTRESSED AND ECONOMICALLY STRONG COUNTIES.

    Part C of title II (40 U.S.C. App. 221-225) is amended by adding at 
the end the following:

``SEC. 226. DISTRESSED AND ECONOMICALLY STRONG COUNTIES.

    ``(a) Designations.--Not later than 90 days after the effective 
date of the Appalachian Regional Development Act Amendments of 1997, 
and annually thereafter, the Commission, in accordance with such 
criteria as the Commission may establish, shall--
            ``(1) designate as `distressed counties' those counties in 
        the region that are the most severely and persistently 
        distressed and underdeveloped; and
            ``(2) designate two categories of economically strong 
        counties, as follows:
                    ``(A) `competitive counties' which shall be those 
                counties in the region which are approaching economic 
                parity with the rest of the Nation; and
                    ``(B) `attainment counties' which shall be those 
                counties in the region which have attained or exceeded 
                economic parity with the rest of the Nation.
    ``(b) Distressed Counties.--In program and project development and 
implementation and in the allocation of appropriations made available 
to carry out this Act, the Commission shall give special consideration 
to the needs of those counties for which a distressed designation is in 
effect under this section.
    ``(c) Funding Prohibition for Projects Located in Economically 
Strong Counties.--
            ``(1) Competitive counties.--Except as provided by 
        paragraphs (3) and (4), assistance under this Act will be 
        limited to no more than 30 percent of project cost for a 
        project located in a county for which a competitive county 
        designation is in effect under this section.
            ``(2) Attainment counties.--Except as provided by 
        paragraphs (3) and (4), no funds may be provided under this Act 
        for a project located in a county for which an attainment 
        county designation is in effect under this section.
            ``(3) Exceptions.--The prohibitions established by 
        paragraphs (1) and (2) shall not apply to--
                    ``(A) projects on the Appalachian development 
                highway system authorized by section 201;
                    ``(B) local development district administrative 
                projects authorized by section 302(a)(1); or
                    ``(C) a multicounty project that includes a county 
                or counties designated as `competitive' or `attainment' 
                under this section provided all participating counties 
                share in the costs and benefits of the project.
            ``(4) Waiver.--The prohibitions established by paragraphs 
        (1) and (2) may be waived by the Commission for a particular 
        project upon a showing of one or more of the following:
                    ``(A) The existence of a significant pocket of 
                distress in the part of the county in which the project 
                is located.
                    ``(B) A significant decline in economic conditions 
                affecting the county which is not reflected in current 
                designation data.
                    ``(C) The existence of a significant potential 
                benefit from the project in areas of the region outside 
                the designated county.''.

SEC. 11. GRANTS FOR ADMINISTRATIVE EXPENSES AND DEMONSTRATION PROJECTS; 
              AVAILABILITY OF AMOUNTS.

    Section 302(a) (40 U.S.C. App. 302(a)) is amended--
            (1) by striking ``The President'' and inserting ``The 
        Commission''; and
            (2) in paragraphs (1), (2), and (3) by striking ``to the 
        Commission'' each place it appears.

SEC. 12. AUTHORIZATION OF APPROPRIATIONS FOR GENERAL PROGRAM.

    Section 401 (40 U.S.C. App. 401) is amended to read as follows:

``SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

    ``In addition to the appropriations authorized by section 105 for 
administrative expenses and by section 201(g) for the Appalachian 
development highway system and local access roads, there is authorized 
to be appropriated to the Commission to carry out this Act $71,355,000 
for fiscal year 1998 and such sums as may be necessary for each of 
fiscal years 1999 through 2002. Such sums shall remain available until 
expended.''.

SEC. 13. EXTENSION OF TERMINATION DATE.

    Section 405 (40 U.S.C. App. 405) is amended by striking ``1982'' 
and inserting ``2002''.

SEC. 14. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect 
October 1, 1997.
Appalachian Regional Development Act Amendments of 1997 - Amends the Appalachian Regional Development Act of 1965 to repeal a requirement that public investments made in the Appalachian region under the Act be concentrated in areas with a significant potential for future growth and where the expected return on public dollars invested will be the greatest. 
Modifies the Act's purpose to include:  (1) assisting Appalachia to become a region with an educated and trained work force, healthy people, a sound physical infrastructure, a dynamic economic base, and the capacity to be economically self-sustaining; and (2) directing the Appalachian Regional Commission to be an advocate for and partner with the Appalachian people and to seek to achieve a viable, self- sustaining economy for the region. 
(Sec. 3) Requires the Commission to conduct at least one meeting each year with the Federal Co-Chairman and at least a majority of the State members present.  Authorizes the Commission to conduct additional meetings by electronic means.  Prohibits decisions involving the criteria for the designation of counties as distressed or economically strong from being made without a quorum of State members. 
(Sec. 4) Reauthorizes appropriations for:  (1) administrative expenses; and (2) the Appalachian development highway system (and increases the Federal cost share). 
(Sec. 5) Revises provisions regarding:  (1) compensation to authorize the Commission to appoint and fix the compensation of an executive director and other specified personnel at a rate not to exceed the maximum for the Senior Executive Service, including any applicable locality-based comparability payment that may be authorized (and extends the Commission's authorization to lease office space); and (2) supplements to Federal grant-in-aid programs to authorize the Federal Co-Chairman to use sums available to carry out the Act (current law authorizes the President to provide funds to the Co-Chairman to be used to carry out the Act) and to revise the definition of "Federal grant-in-aid programs" to remove the provision limitating such programs to those authorized on or before December 31, 1980. 
(Sec. 9) Adds specified criteria and measurements to be considered when determining programs and projects to be given assistance. 
(Sec. 10) Directs the Commission to:  (1) designate as distressed counties those that are the most severely and persistently distressed and underdeveloped and two categories of economically strong counties (competitive counties are those approaching, and attainment counties are those having attained or exceeded, economic parity with the rest of the country); and (2) give special consideration to the needs of distressed counties. Limits or prohibits funds for projects in a competitive or attainment county, with exceptions and waivers. 
(Sec. 11) Empowers the Commission (currently, the President) to make grants for administrative expenses and research and development projects. 
(Sec. 12) Extends through FY 2002 the authorization of appropriations and termination date under the Act.
Appalachian Regional Development Act Amendments of 1997