109TH CONGRESS

2D SESSION S. 2832

AN ACT

To reauthorize and improve the program authorized by the

Appalachian Regional Development Act of 1965.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Appalachian Regional

5 Development Act Amendments of 2006’’.
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1 SEC. 2. LIMITATION ON AVAILABLE AMOUNTS; MAXIMUM

2 COMMISSION CONTRIBUTION.

3 (a) GRANTS AND OTHER ASSISTANCE.—Section

4 14321(a) of title 40, United States Code, is amended—

5 (1) in paragraph (1)(A), by striking clause (i)

6 and inserting the following:

7 ‘‘(i) the amount of the grant shall not

8 exceed—

9 ‘‘(I) 50 percent of administrative

10 expenses;

11 ‘‘(II) at the discretion of the

12 Commission, if the grant is to a local

13 development district that has a char14 ter or authority that includes the eco15 nomic development of a county or a

16 part of a county for which a dis17 tressed county designation is in effect

18 under section 14526, 75 percent of

19 administrative expenses; or

20 ‘‘(III) at the discretion of the

21 Commission, if the grant is to a local

22 development district that has a char23 ter or authority that includes the eco24 nomic development of a county or a

25 part of a county for which an at-risk

26 county designation is in effect under
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1 section 14526, 70 percent of adminis2 trative expenses;’’; and

3 (2) in paragraph (2), by striking subparagraph

4 (A) and inserting the following:

5 ‘‘(A) IN GENERAL.—Except as provided in

6 subparagraph (B), of the cost of any activity el7 igible for financial assistance under this section,

8 not more than—

9 ‘‘(i) 50 percent may be provided from

10 amounts appropriated to carry out this

11 subtitle;

12 ‘‘(ii) in the case of a project to be car13 ried out in a county for which a distressed

14 county designation is in effect under sec15 tion 14526, 80 percent may be provided

16 from amounts appropriated to carry out

17 this subtitle; or

18 ‘‘(iii) in the case of a project to be

19 carried out in a county for which an at20 risk county designation is in effect under

21 section 14526, 70 percent may be provided

22 from amounts appropriated to carry out

23 this subtitle.’’.

24 (b) DEMONSTRATION HEALTH PROJECTS.—Section

25 14502 of title 40, United States Code, is amended—
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1 (1) in subsection (d), by striking paragraph (2)

2 and inserting the following:

3 ‘‘(2) LIMITATION ON AVAILABLE AMOUNTS.—

4 Grants under this section for the operation (includ5 ing initial operating amounts and operating deficits,

6 which include the cost of attracting, training, and

7 retaining qualified personnel) of a demonstration

8 health project, whether or not constructed with

9 amounts authorized by this section, may be made for

10 up to—

11 ‘‘(A) 50 percent of the cost of that oper12 ation;

13 ‘‘(B) in the case of a project to be carried

14 out in a county for which a distressed county

15 designation is in effect under section 14526, 80

16 percent of the cost of that operation; or

17 ‘‘(C) in the case of a project to be carried

18 out for a county for which an at-risk county

19 designation is in effect under section 14526, 70

20 percent of the cost of that operation.’’; and

21 (2) in subsection (f), by adding at the end the

22 following:

23 ‘‘(3) AT-RISK COUNTIES.—The maximum Com24 mission contribution for a project to be carried out

25 in a county for which an at-risk county designation
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1 is in effect under section 14526 may be increased to

2 the lesser of—

3 ‘‘(A) 70 percent; or

4 ‘‘(B) the maximum Federal contribution

5 percentage authorized by this section.’’.

6 (c) ASSISTANCE FOR PROPOSED LOW- AND MIDDLE7 INCOME HOUSING PROJECTS.—Section 14503 of title 40,

8 United States Code, is amended—

9 (1) in subsection (d), by striking paragraph (1)

10 and inserting the following:

11 ‘‘(1) LIMITATION ON AVAILABLE AMOUNTS.—A

12 loan under subsection (b) for the cost of planning

13 and obtaining financing (including the cost of pre14 liminary surveys and analyses of market needs, pre15 liminary site engineering and architectural fees, site

16 options, application and mortgage commitment fees,

17 legal fees, and construction loan fees and discounts)

18 of a project described in that subsection may be

19 made for up to—

20 ‘‘(A) 50 percent of that cost;

21 ‘‘(B) in the case of a project to be carried

22 out in a county for which a distressed county

23 designation is in effect under section 14526, 80

24 percent of that cost; or
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1 ‘‘(C) in the case of a project to be carried

2 out for a county for which an at-risk county

3 designation is in effect under section 14526, 70

4 percent of that cost.’’; and

5 (2) in subsection (e), by striking paragraph (1)

6 and inserting the following:

7 ‘‘(1) IN GENERAL.—A grant under this section

8 for expenses incidental to planning and obtaining fi9 nancing for a project under this section that the

10 Secretary considers to be unrecoverable from the

11 proceeds of a permanent loan made to finance the

12 project shall—

13 ‘‘(A) not be made to an organization estab14 lished for profit; and

15 ‘‘(B) except as provided in paragraph (2),

16 not exceed—

17 ‘‘(i) 50 percent of those expenses;

18 ‘‘(ii) in the case of a project to be car19 ried out in a county for which a distressed

20 county designation is in effect under sec21 tion 14526, 80 percent of those expenses;

22 or

23 ‘‘(iii) in the case of a project to be

24 carried out in a county for which an at25 risk county designation is in effect under
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1 section 14526, 70 percent of those ex2 penses.’’.

3 (d) TELECOMMUNICATIONS AND TECHNOLOGY INI4 TIATIVE.—Section 14504 of title 40, United States Code,

5 is amended by striking subsection (b) and inserting the

6 following:

7 ‘‘(b) LIMITATION ON AVAILABLE AMOUNTS.—Of the

8 cost of any activity eligible for a grant under this section,

9 not more than—

10 ‘‘(1) 50 percent may be provided from amounts

11 appropriated to carry out this section;

12 ‘‘(2) in the case of a project to be carried out

13 in a county for which a distressed county designa14 tion is in effect under section 14526, 80 percent

15 may be provided from amounts appropriated to

16 carry out this section; or

17 ‘‘(3) in the case of a project to be carried out

18 in a county for which an at-risk county designation

19 is in effect under section 14526, 70 percent may be

20 provided from amounts appropriated to carry out

21 this section.’’.

22 (e) ENTREPRENEURSHIP INITIATIVE.—Section

23 14505 of title 40, United States Code, is amended by

24 striking subsection (c) and inserting the following:
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1 ‘‘(c) LIMITATION ON AVAILABLE AMOUNTS.—Of the

2 cost of any activity eligible for a grant under this section,

3 not more than—

4 ‘‘(1) 50 percent may be provided from amounts

5 appropriated to carry out this section;

6 ‘‘(2) in the case of a project to be carried out

7 in a county for which a distressed county designa8 tion is in effect under section 14526, 80 percent

9 may be provided from amounts appropriated to

10 carry out this section; or

11 ‘‘(3) in the case of a project to be carried out

12 in a county for which an at-risk county designation

13 is in effect under section 14526, 70 percent may be

14 provided from amounts appropriated to carry out

15 this section.’’.

16 (f) REGIONAL SKILLS PARTNERSHIPS.—Section

17 14506 of title 40, United States Code, is amended by

18 striking subsection (d) and inserting the following:

19 ‘‘(d) LIMITATION ON AVAILABLE AMOUNTS.—Of the

20 cost of any activity eligible for a grant under this section,

21 not more than—

22 ‘‘(1) 50 percent may be provided from amounts

23 appropriated to carry out this section;

24 ‘‘(2) in the case of a project to be carried out

25 in a county for which a distressed county designa-
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1 tion is in effect under section 14526, 80 percent

2 may be provided from amounts appropriated to

3 carry out this section; or

4 ‘‘(3) in the case of a project to be carried out

5 in a county for which an at-risk county designation

6 is in effect under section 14526, 70 percent may be

7 provided from amounts appropriated to carry out

8 this section.’’.

9 (g) SUPPLEMENTS TO FEDERAL GRANT PRO10 GRAMS.—Section 14507(g) of title 40, United States

11 Code, is amended by adding at the end the following:

12 ‘‘(3) AT-RISK COUNTIES.—The maximum Com13 mission contribution for a project to be carried out

14 in a county for which an at-risk county designation

15 is in effect under section 14526 may be increased to

16 70 percent.’’.

17 SEC. 3. DISTRESSED, AT-RISK, AND ECONOMICALLY

18 STRONG COUNTIES.

19 Section 14526(a)(1) of title 40, United States Code,

20 is amended—

21 (1) by redesignating subparagraph (B) as sub22 paragraph (C);

23 (2) in subparagraph (A), by striking ‘‘and’’ at

24 the end; and
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1 (3) by inserting after subparagraph (A) the fol2 lowing:

3 ‘‘(B) designate as ‘at-risk counties’ those

4 counties in the Appalachian region that are

5 most at risk of becoming economically dis6 tressed; and’’.

7 SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

8 Section 14703 of title 40, United States Code, is

9 amended by striking subsection (a) and inserting the fol10 lowing:

11 ‘‘(a) IN GENERAL.—In addition to amounts made

12 available under section 14501, there are authorized to be

13 appropriated to the Appalachian Regional Commission to

14 carry out this subtitle—

15 ‘‘(1) $95,200,000 for fiscal year 2007;

16 ‘‘(2) $98,600,000 for fiscal year 2008;

17 ‘‘(3) $102,000,000 for fiscal year 2009;

18 ‘‘(4) $105,700,000 for fiscal year 2010; and

19 ‘‘(5) $109,400,000 for fiscal year 2011.’’.

20 SEC. 5. TERMINATION.

21 Section 14704 of title 40, United States Code, is

22 amended by striking ‘‘2006’’ and inserting ‘‘2011’’.
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1 SEC. 6. EFFECTIVE DATE.

2 The amendments made by this Act take effect on Oc3 tober 1, 2006.

Passed the Senate July 25, 2006.

Attest:

Secretary.
109TH CONGRESS

2D SESSION S. 2832

AN ACT

To reauthorize and improve the program authorized

1965.by the Appalachian Regional Development Act of