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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2454 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                H. R. 2454

 To reauthorize and improve the program authorized by the Public Works 
                 and Economic Development Act of 1965.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2003

Mr. LaTourette (for himself, Mr. Young of Alaska, Mr. Oberstar, and Ms. 
   Norton) (all by request) introduced the following bill; which was 
referred to the Committee on Transportation and Infrastructure, and in 
  addition to the Committee on Financial Services, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL

 
 To reauthorize and improve the program authorized by the Public Works 
                 and Economic Development Act of 1965.

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

SECTION 1. SHORT TITLE.

     Short Title.--This Act may be cited as the ``Economic Development 
Administration Reauthorization Act of 2003''.

SEC. 2. FINDINGS AND DECLARATIONS.

    Section 2 of the Public Works and Economic Development Act of 1965, 
as amended (``PWEDA'') (42 U.S.C. 3121), is revised to read as follows:

``SEC. 2. FINDINGS AND DECLARATIONS.

    ``(a) Findings.--Congress finds that--
            ``(1) while the fundamentals for growth in the American 
        economy remain strong, there continue to be areas experiencing 
        chronic high unemployment, underemployment, low per capita 
        incomes, and outmigration as well as areas facing sudden and 
        severe economic dislocations due to structural economic 
        changes, changing trade patterns, certain Federal actions 
        (including environmental requirements that result in the 
        removal of economic activities from a locality), and natural 
        disasters;
            ``(2) sustained economic growth in our Nation, States, 
        cities and rural areas is produced by expanding free enterprise 
        through trade and enhanced competitiveness of regions;
            ``(3) the goal of Federal economic development programs is 
        to raise the standard of living for all citizens and increase 
        the wealth and overall rate of growth of the economy by 
        encouraging local and regional communities to develop a more 
        competitive and diversified economic base by:
                    ``(A) promoting job creation through increased 
                innovation, productivity, and entrepreneurship; and
                    ``(B) empowering local and regional communities 
                experiencing chronic high unemployment and low per 
                capita income to attract substantially increased 
                private-sector capital investment;
            ``(4) while economic development is an inherently local 
        process, the Federal Government should work in partnership with 
        public and private local, regional, tribal and State 
        organizations to maximize the impact of existing resources and 
        enable regions, communities, and citizens to participate more 
        fully in the American dream and national prosperity;
            ``(5) in order to avoid wasteful duplication of effort and 
        achieve meaningful, long-lasting results, Federal, State, 
        tribal and local economic development activities should have a 
        clear focus, improved coordination, a comprehensive approach, 
        common measures of success, and simplified and consistent 
        requirements; and
            ``(6) Federal economic development efforts will be more 
        effective if they are coordinated with, and build upon, the 
        trade, workforce investment, and technology programs of the 
        United States.
    ``(b) Declarations.--Congress declares that, in order to promote a 
strong and growing economy throughout the United States:
            ``(1) assistance under this Act should be made available to 
        both rural and urban distressed communities;
            ``(2) local communities should work in partnership with 
        neighboring communities, Indian tribes, the States, and the 
        Federal Government to increase their capacity to develop and 
        implement comprehensive economic development strategies to 
        enhance regional competitiveness in the global economy and 
        support long-term development of regional economies; and
            ``(3) whether suffering from long-term distress or a sudden 
        dislocation, distressed communities should be encouraged to 
        focus on strengthening entrepreneurship and competitiveness, 
        and to take advantage of the development opportunities afforded 
        by technological innovation and expanding and newly opened 
        global markets.''.

SEC. 3. DEFINITIONS.

    Section 3 of PWEDA (42 U.S.C. 3122) is amended as follows:
            (1) Subparagraph (4)(A) of this section is amended by 
        striking subparagraph (i) and redesignating successive 
        subparagraphs (ii) through (vii) as (i) through (vi) and 
        revising subparagraph (iv) as re-designated to read as follows:
                            ``(iv) a city or other political 
                        subdivision of a State, including a special 
                        purpose unit of State or local government, or a 
                        consortium of political subdivisions;''.
            (2) Subparagraph (4)(B) is amended by adding at the end 
        thereof a new sentence: ``The requirement under subparagraph 
        (A)(vi) that the nonprofit organization or association is 
        ``acting in cooperation with officials of a political 
        subdivision of a State'' does not apply in the case of 
        research, training and technical assistance grants under 
        section 207 that are national or regional in scope.''.
            (3) Paragraphs (8), (9) and (10) are amended by re-
        designating them as paragraphs (9), (10), and (11) and a new 
        paragraph (8) is added as follows:
            ``(8) Regional commissions.--The term `Regional 
        Commissions' as used in section 403 of this Act refers to the 
        regional economic development authorities: the Delta Regional 
        Authority (Public Law No. 106-554, sec. 1(a)(4) [div. B, title 
        VI], 114 Stat. 2763A-268) (7 U.S.C. 2009aa et seq.), the Denali 
        Commission (Public Law No. 105-277, div. C, title III, 112 
        Stat. 2681-637) (42 U.S.C. 3121 note), and the Northern Great 
        Plains Regional Authority (Public Law No. 107-171, 116 Stat. 
        375) (7 U.S.C. 2009bb et seq.).''.
            (4) A new paragraph (12) is added at the end to read as 
        follows:
            ``(12) University center.--The term `university center' 
        refers to a University Center for Economic Development 
        established pursuant to the authority of section 207(a)(2)(D) 
        of this Act.''.

SEC. 4. WORKING WITH NONPROFIT ORGANIZATIONS IN ESTABLISHMENT OF 
              ECONOMIC DEVELOPMENT PARTNERSHIPS.

    Section 101 of PWEDA (42 U.S.C. 3131) is amended as follows:
            (1) In subsection (b) strike ``and multi-State regional 
        organizations'' and insert in lieu thereof ``multi-State 
        regional organizations, and nonprofit organizations''.
            (2) In subsection (d), strike ``adjoining'' each time it 
        occurs.

SEC. 5. SUB-GRANTS IN CONNECTION WITH PUBLIC WORKS PROJECTS.

    Section 201 of PWEDA (42 U.S.C. 3141) is amended by adding a new 
subsection (d) as follows:
    ``(d) Sub-Grants.--
            ``(1) Subject to paragraph (2), a recipient of a grant 
        under this section may directly expend the grant funds or may 
        redistribute the funds in the form of a sub-grant to other 
        recipients eligible to receive assistance under this section to 
        fund required components of the scope of work approved for the 
        project.
            ``(2) Under paragraph (1), a recipient may not redistribute 
        grant funds to a for-profit entity.''.

SEC. 6. CLARIFICATION OF GRANTS FOR STATE PLANNING.

    Section 203 of PWEDA (42 U.S.C. 3143) is amended as follows:
            (1) Revise paragraph (1) of subsection (d) to read as 
        follows:
            ``(1) Development.--Any State plan developed with 
        assistance under this section shall, to the maximum extent 
        practicable, take into consideration regional economic 
        development strategies.'';
            (2) Strike paragraph (3) of subsection (d) in its entirety 
        and re-designate paragraphs (4) and (5) as (3) and (4);
            (3) Revise re-designated paragraph (3) of subsection (d) by 
        striking ``and'' at the end of subparagraph (C) and re-
        designating current subparagraph (D) as (E) and adding a new 
        subparagraph (D) to read as follows:
                    ``(D) assist in carrying out state's workforce 
                investment strategy (as outlined in the State plan 
                required under section 112 of the Workforce Investment 
                Act of 1998 (29 U.S.C. 2822)); and'';
            (4) Add a new subsection (e) at the end thereof as follows:
    ``(e) Sub-Grants.--
            ``(1) Subject to paragraph (2), a recipient of a grant 
        under this section may directly expend the grant funds or may 
        redistribute the funds in the form of a sub-grant to other 
        recipients eligible to receive assistance under this section to 
        fund required components of the scope of work approved for the 
        project.
            ``(2) Under paragraph (1), a recipient may not redistribute 
        grant funds to a for-profit entity.''.

SEC. 7. SIMPLIFICATION OF DETERMINATION OF GRANT RATES.

    Sections 204 and 205 of PWEDA (42 U.S.C. 3144, 3145) are amended to 
read as follows:

``SEC. 204. COST SHARING.

    ``(a) Federal Share.--The Secretary shall issue regulations to 
establish the applicable grant rates for projects based on the relative 
needs of the areas in which the projects are located. Except as 
provided in subsection (c) below, the amount of a grant for a project 
under this title may not exceed 80 percent of the cost of the project.
    ``(b) Non-Federal Share.--In determining the amount of the non-
Federal share of the cost of a project, the Secretary may provide 
credit toward the non-Federal share for all contributions both in cash 
and in-kind, fairly evaluated, including contributions of space, 
equipment, and services, and assumptions of debt.
    ``(c) Increase in Federal Share.--
            ``(1) Indian tribes.--In the case of a grant to an Indian 
        tribe, the Secretary may increase the Federal share above the 
        percentage specified in subsection (a) up to 100 percent of the 
        cost of the project.
            ``(2) Certain states, political subdivisions, and nonprofit 
        organizations.--In the case of a grant to a State (or a 
        political subdivision of a State), that the Secretary 
        determines has exhausted its effective taxing and borrowing 
        capacity, or in the case of a grant to a nonprofit organization 
        that the Secretary determines has exhausted its effective 
        borrowing capacity, the Secretary may increase the Federal 
        share above the percentage specified in subsection (a) up to 
        100 percent of the cost of the project.

``SEC. 205. GRANTS SUPPLEMENTING OTHER AGENCY GRANTS (42 U.S.C. 3145).

    ``(a) Definition of Designated Federal Grant Program.--In this 
section, the term `designated Federal grant program' means any Federal 
grant program that--
            ``(1) provides assistance in the construction or equipping 
        of public works, public service, or development facilities;
            ``(2) is designated as eligible for an allocation of funds 
        under this section by the Secretary; and
            ``(3) assists projects that are--
                    ``(A) eligible for assistance under this title; and
                    ``(B) consistent with a comprehensive economic 
                development strategy.
    ``(b) Supplementary Grants.--Subject to subsection (c) below, in 
order to assist eligible recipients to take advantage of designated 
Federal grant programs, on the application of an eligible recipient, 
the Secretary may make a supplementary grant for a project for which 
the eligible recipient is eligible but, because of the recipient's 
economic situation, for which the eligible recipient cannot provide the 
required non-Federal share.
    ``(c) Requirements Applicable to Supplementary Grants.--
            ``(1) Amount of supplementary grants.--The share of the 
        project cost supported by a supplementary grant under this 
        section may not exceed the applicable grant rate under section 
        204.
            ``(2) Form of supplementary grants.--The Secretary shall 
        make supplementary grants by--
                    ``(A) the payment of funds made available under 
                this Act to the heads of the Federal agencies 
                responsible for carrying out the applicable Federal 
                programs; or
                    ``(B) the award of funds under this Act which will 
                be combined with funds transferred from other Federal 
                agencies in projects administered by the Secretary.
            ``(3) Federal share limitations specified in other laws.--
        Notwithstanding any requirement as to the amount or source of 
        non-Federal funds that may be applicable to a Federal program, 
        funds provided under this section may be used to increase the 
        Federal share for specific projects under the program that are 
        carried out in areas described in section 301(a) above the 
        Federal share of the cost of the project authorized by the law 
        governing the program.''.

SEC. 8. REGULATIONS ON ALLOCATIONS TO ENSURE JOB CREATION POTENTIAL.

    Subsection 206 of PWEDA (42 U.S.C. 3146) is amended by striking 
``and'' at the end of subparagraph (1)(C), inserting ``and'' at the end 
of paragraph (2), and adding a new paragraph (3) at the end thereof to 
read as follows:
            ``(3) allocations of assistance under this title promote 
        job creation through increased innovation, productivity, and 
        entrepreneurship, and financial assistance extended pursuant to 
        such allocations will have a high probability of meeting or 
        exceeding applicable performance requirements established in 
        connection with extension of the assistance.''.

SEC. 9. INCREASED FLEXIBILITY IN GRANTS FOR TRAINING, RESEARCH, AND 
              TECHNICAL ASSISTANCE.

    (a) Section 207 of PWEDA (42 U.S.C. 3147) is amended by striking 
``and'' at the end of subparagraph (2)(F) of subsection (a), re-
designating current subparagraph (G) as (H), and adding a new 
subparagraph (G) to read as follows:
                    ``(G) studies that evaluate the effectiveness of 
                collaborations between projects funded under this Act 
                with projects funded under the Workforce Investment Act 
                of 1998 (29 U.S.C. 2801 et seq.); and''.
    (b) Section 207 is further amended by adding a new subsection (c) 
to read as follows:
    ``(c) Sub-Grants.--A recipient of a grant under this section may 
directly expend the grant funds or may redistribute the funds in the 
form of a sub-grant to other recipients eligible to receive assistance 
under this section to fund required components of the scope of work 
approved for the project.''.

SEC. 10. REMOVAL OF SECTION.

    Section 208 of PWEDA (42 U.S.C. 3148) is stricken in its entirety 
and insert in lieu thereof:

``SEC. 208. [REPEALED].''.

SEC. 11. IMPROVEMENTS IN ADMINISTRATION GRANTS FOR ECONOMIC ADJUSTMENT 
              INVOLVING REVOLVING LOAN FUND PROJECTS.

    (a) Subsection (d) of section 209 of PWEDA (42 U.S.C. 3149) is 
amended by striking ``an eligible'' in each case it occurs in 
paragraphs (1) and (2) and inserting in lieu thereof ``a recipient''.
    (b) Section 209 of PWEDA (42 U.S.C. 3149) is amended by adding a 
new subsection (e) at the end thereof as follows:
    ``(e) Special Provisions Relating to Revolving Loan Fund Grants.--
The Secretary shall promulgate regulations to ensure the proper 
operation and financial integrity of revolving loan funds established 
by recipients with assistance under this section.
            ``(1) Efficient administration.--In order to improve the 
        ability to manage and administer the Federal interest in 
        revolving loan funds and in accordance with regulations issued 
        for such purposes, the Secretary may amend and consolidate 
        grant agreements governing revolving loan funds to provide 
        flexibility with respect to lending areas and borrower 
        criteria. In addition, the Secretary may assign or transfer 
        assets of a revolving loan fund to a third party for the 
        purpose of liquidation and a third party may retain assets of 
        the fund to defray costs related to liquidation. The Secretary 
        may also take such other actions with respect to management and 
        administration as the Secretary determines to be appropriate to 
        carry out the purposes of this Act, including actions to enable 
        revolving loan funds operators to sell or securitize loans to 
        the secondary market (except that such actions may not include 
        issuance of a Federal guaranty by the Secretary).
            ``(2) Release of federal interests.--The Secretary may 
        release, in whole or in part, any property interest in 
        connection with a revolving loan fund grant after the date that 
        is 20 years after the date on which the grant was awarded, 
        provided that the recipient--
                    ``(A) is in compliance with the terms of its grant 
                and operating the fund at an acceptable level of 
                performance as determined by the Secretary; and
                    ``(B) reimburses the government prior to the 
                release for the amount of the Secretary's investment in 
                the fund or the pro-rata share of the fund at the time 
                of the release, whichever is less.
Any action taken by the Secretary pursuant to this subsection with 
respect to a revolving loan fund shall not constitute a new obligation 
provided that all grant funds associated with the original grant award 
have been disbursed to the recipient.''.

SEC. 12. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.

    Section 211 of PWEDA (42 U.S.C. 3151) is amended to read as 
follows:

``SEC. 211. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.

    ``In any case in which the Secretary has made a grant for a 
construction project under sections 201 or 209 of this title, and 
before closeout of the project, the Secretary determines that the cost 
of the project based on the designs and specifications that were the 
basis of the grant has decreased because of decreases in costs--
            ``(1) without further appropriations action, the Secretary 
        may approve the use of the excess funds or a portion of the 
        funds to improve the project; and
            ``(2) any amount of excess funds remaining after 
        application of paragraph (1) may be used for other investments 
        authorized for support under this Act.
In addition to paragraphs (1) and (2) of this section, in the event of 
construction underruns in projects utilizing funds transferred from 
other Federal agencies pursuant to section 604 of this Act, the 
Secretary may utilize these funds in conjunction with paragraphs (1) or 
(2) with the approval of the originating agency or will return the 
funds to the originating agency.''.

SEC. 13. SPECIAL IMPACT AREAS.

    Title II of PWEDA is further amended by adding a new section 214 as 
follows:

``SEC. 214. SPECIAL IMPACT AREAS.

    ``The Secretary is authorized to make grants, enter into contracts 
and provide technical assistance for projects and programs that the 
Secretary finds will fulfill a pressing need of the area and be useful 
in alleviating or preventing conditions of excessive unemployment or 
underemployment or assist in providing useful employment opportunities 
for the unemployed or underemployed residents in the area. In extending 
assistance under this section, the Secretary may waive, in whole or in 
part, as appropriate, the provisions of section 302 of this Act 
provided that the Secretary determines that such assistance will carry 
out the purposes of the Act.''.

SEC. 14. PERFORMANCE INCENTIVES.

    Title II of PWEDA is further amended by adding a new section 215 as 
follows:

``SEC. 215. PERFORMANCE INCENTIVES.

    ``(a) In accordance with regulations issued for such purposes, the 
Secretary may award transferable performance credits in an amount that 
does not exceed 10 percent of the grant amount awarded under sections 
201 or 209 of this Act on or after the effective date of this 
amendment. The Secretary shall base such performance incentives on the 
extent to which a recipient meets or exceeds performance requirements 
established in connection with extension of the assistance.
    ``(b) A recipient awarded a transferable performance credit under 
this section may redeem the credit to increase the Federal share of a 
subsequent grant funded under sections 201 and 209 of this Act above 
the maximum Federal share allowable under section 204 up to 80 percent 
of the project cost. A performance credit must be redeemed within 5 
years of its issue date.
    ``(c) An original recipient may also sell or transfer the credit in 
its entirety to another eligible recipient for use in connection with a 
grant approved by the Secretary under this Act without reimbursement to 
the Secretary for redemption in accordance with subsection (b) above.
    ``(d) The Secretary shall attach such terms and conditions or 
limitations as the Secretary deems appropriate in issuing a performance 
credit. Performance credits shall be paid out of appropriations for 
economic development assistance programs made available in the year of 
redemption to the extent of availability.
    ``(e) The Secretary shall include information regarding issuance of 
performance credits in the annual report under section 603 of this 
Act.''.

SEC. 15. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.

    Subparagraph (a)(3)(A) of section 302 of PWEDA (42 U.S.C. 3162) is 
amended by adding ``maximizes effective development and use of the 
workforce (consistent with any applicable state and local workforce 
investment strategy under the Workforce Investment Act of 1998 (29 
U.S.C. 2801 et seq.),'' between ``access,'' and ``enhances''.

SEC. 16. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS.

    Subparagraph (a)(3)(B) of section 401 of PWEDA (42 U.S.C. 3171) is 
amended by striking ``by each affected State and''.

SEC. 17. DISTRICT INCENTIVES.

    Section 403 of PWEDA (42 U.S.C. 3173) is amended by striking it in 
its entirety and redesignating sections 404 and 405 as sections 403 and 
404. Section 403 as re-designated is amended by adding at the end the 
following new sentence: ``If any part of an economic development 
district is in a region covered by one or more other Regional 
Commissions as defined in section 3(8) of this Act, the economic 
development district shall ensure that a copy of the comprehensive 
economic development strategy of the district is provided to the 
affected regional commission.''.

SEC. 18. ECONOMIC DEVELOPMENT INFORMATION CLEARINGHOUSE.

    Section 502 of PWEDA (42 U.S.C. 3192) is amended to read as 
follows:

``SEC. 502. ECONOMIC DEVELOPMENT INFORMATION CLEARINGHOUSE.

    ``In carrying out this Act, the Secretary shall--
            ``(1) maintain a central information clearinghouse on the 
        Internet with information on economic development, economic 
        adjustment, disaster recovery, defense conversion, and trade 
        adjustment programs and activities of the Federal Government, 
        links to State economic development organizations, and links to 
        other appropriate economic development resources;
            ``(2) assist potential and actual applicants for economic 
        development, economic adjustment, disaster recovery, defense 
        conversion, and trade adjustment assistance under Federal and 
        State laws in locating and applying for the assistance;
            ``(3) assist areas described in section 301(a) and other 
        areas by providing to interested persons, communities, 
        industries, and businesses in the areas any technical 
        information, market research, or other forms of assistance, 
        information, or advice that would be useful in alleviating or 
        preventing conditions of excessive unemployment or 
        underemployment in the areas; and
            ``(4) obtain appropriate information from other Federal 
        agencies needed to carry out the duties under this Act.''.

SEC. 19. REMOVAL OF UNUSED AUTHORITY.

    Section 505 of PWEDA (42 U.S.C. 3195) is amended by striking it in 
its entirety and sections 506 and 507 are re-designated as sections 505 
and 506.

SEC. 20. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

    Section 505 of PWEDA (42 U.S.C. 3196) as re-designated is amended 
as follows:
            (1) In subsection (c), strike ``after the effective date of 
        the Economic Development Administration Reform Act of 1998''.
            (2) In paragraph (d)(2), strike ``and'' before 
        ``disseminating results'' and insert ``, and measuring the 
        outcome-based results of the university centers' activities'' 
        before the period at the end thereof.
            (3) In paragraph (d)(3) of section 506, insert before the 
        period at the end thereof ``as evidenced by outcome-based 
        results, including the number of jobs created or retained, and 
        amount of private-sector funds leveraged''.
            (4) In subsection (e) of section 506, strike ``university 
        center or'' each occasion it occurs.

SEC. 21. CITATION CORRECTIONS.

    Section 602 PWEDA (42 U.S.C. 3212) is amended by striking the 
citations to ``40 U.S.C. 276A--276A-5'' and ``section 276c'' and 
inserting in lieu thereof, ``40 U.S.C. 3141 et seq.'' and ``section 
3154'', respectively.

SEC. 22. DELETION OF UNNECESSARY PROVISION.

    Section 609 of PWEDA (42 U.S.C. 3219) is amended by striking 
subsection (a) in its entirety and striking the subsection designation 
``(b)''.

SEC. 23. GENERAL AUTHORIZATION OF APPROPRIATIONS.

    Section 701 of PWEDA (42 U.S.C. 3231) is amended to read as 
follows:

``SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Economic Development Assistance Programs.--There are 
authorized to be appropriated for economic development assistance 
programs to carry out this Act $331,027,000 for fiscal year 2004, and 
such sums as may be necessary for fiscal years 2005, 2006, 2007, and 
2008, to remain available until expended.
    ``(b) Salaries and Expenses.--There are authorized to be 
appropriated for salaries and expenses of administering this Act 
$33,377,000 for fiscal year 2004, and such sums as may be necessary for 
each of the fiscal years from 2005 through 2008, to remain available 
until expended.''.
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