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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 300 Introduced in House (IH)]

104th CONGRESS
  1st Session
                                H. R. 300

To reauthorize economic development programs under the Public Works and 
  Economic Development Act of 1965 for fiscal years 1994 and 1995, to 
 reenact the Public Works and Economic Development Act of 1965 as the 
Economic Development and Financing Act of 1994, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 1995

Mr. Kanjorski introduced the following bill; which was referred to the 
Committee on Transportation and Infrastructure and, in addition, to the 
   Committees on Banking and Financial Services, the Judiciary, and 
 Science 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 economic development programs under the Public Works and 
  Economic Development Act of 1965 for fiscal years 1994 and 1995, to 
 reenact the Public Works and Economic Development Act of 1965 as the 
Economic Development and Financing Act of 1994, and for other purposes.

    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 ``Economic Development Reauthorization 
Act of 1995''.

SEC. 2. REAUTHORIZATION OF THE PUBLIC WORKS AND ECONOMIC DEVELOPMENT 
              ACT OF 1965.

    The Public Works and Economic Development Act of 1965 (42 U.S.C. 
3121, et seq.) is amended to read as follows:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This Act may be cited as the `Economic 
Development and Financing Act of 1995''.
    ``(b) Table of Contents.--

        ``Sec. 1. Short title; table of contents.
        ``Sec. 2. Congressional findings and Statement of purpose.
     ``TITLE I--GRANTS FOR PUBLIC WORKS AND DEVELOPMENT FACILITIES

        ``Sec. 101. Direct and supplementary grants.
        ``Sec. 102. Limitation of funds expended in any 1 State.
        ``Sec. 103. Authorization of appropriations.
        ``Sec. 104. Financial assistance for sewer facilities.
        ``Sec. 105. Construction cost increases.
        ``Sec. 106. Use of funds in projects constructed under 
                            projected cost.
        ``Sec. 107. Changed project circumstances.
``TITLE II--LOANS, LOAN GUARANTEES, AND ECONOMIC DEVELOPMENT REVOLVING 
                                  FUND

        ``Sec. 201. Public works and development facility loans.
        ``Sec. 202. Business loans and loan guarantees.
        ``Sec. 203. Economic development liquidating fund.
 ``TITLE III--STRATEGIC PLANNING, RESEARCH, INFORMATION, AND TECHNICAL 
                               ASSISTANCE

 ``Subtitle A--Strategic Economic Development Planning, Research, and 
                              Information

        ``Sec. 301. Office of Strategic Economic Development Planning 
                            and Policy.
        ``Sec. 302. Office of Economic Development Information.
        ``Sec. 303. Uniform grant application form.
  ``Subtitle B--Technical Assistance and Economic Development Planning

        ``Sec. 311. Technical assistance.
        ``Sec. 312. Economic development planning.
        ``Sec. 313. Business outreach center demonstration project.
        ``Sec. 314. Authorization of appropriations.
           ``TITLE IV--ELIGIBILITY AND INVESTMENT STRATEGIES

        ``Sec. 401. Area eligibility.
        ``Sec. 402. Investment strategy.
        ``Sec. 403. Definition.
        ``Sec. 404. Funding.
                       ``TITLE V--ADMINISTRATION

        ``Sec. 501. Appointment of Assistant Secretary of Commerce and 
                            Administrator for Economic Development; 
                            compensation.
        ``Sec. 502. Consultation of Secretary with other persons and 
                            agencies.
        ``Sec. 503. Administration, operation, and maintenance.
        ``Sec. 504. Expedited processing of applications.
        ``Sec. 505. Performance evaluations of grant recipients.
                       ``TITLE VI--MISCELLANEOUS

        ``Sec. 601. Powers of Secretary.
        ``Sec. 602. Saving provisions.
        ``Sec. 603. Transfer of functions of area redevelopment 
                            administration.
        ``Sec. 604. Separability.
        ``Sec. 605. Definition of State.
        ``Sec. 606. Annual report to Congress.
        ``Sec. 607. Use of other facilities.
        ``Sec. 608. Authorization of appropriations.
        ``Sec. 609. Penalties.
        ``Sec. 610. Employment of expediters and administrative 
                            employees.
        ``Sec. 611. Labor standards; rate of wages; assurance of 
                            maintenance of standards; enforcement.
        ``Sec. 612. Maintenance of records of approved applications for 
                            financial assistance; public inspection.
        ``Sec. 613. Records and audit.
        ``Sec. 614. Prohibition against a statutory construction which 
                            might cause diminution in other Federal 
                            assistance.
        ``Sec. 615. Acceptance of applicants' certifications.
        ``Sec. 616. Supervision of regional counsels.
  ``TITLE VII--SPECIAL ECONOMIC DEVELOPMENT AND ADJUSTMENT ASSISTANCE

             ``Subtitle A--Grants and Adjustment Assistance

        ``Sec. 701. Statement of purpose.
        ``Sec. 702. Eligible recipient defined.
        ``Sec. 703. Grants by Secretary.
        ``Sec. 704. Annual reports by recipient and Secretary.
        ``Sec. 705. Authorization of appropriations.
              ``Subtitle B--Economic Development Financing

        ``Sec. 711. Guaranteed loan program.
        ``Sec. 712. Pilot equity finance program.
        ``Sec. 713. Treatment of revolving loan funds.
        ``Sec. 714. Sale of financial instruments in revolving loan 
                            funds.
        ``Sec. 715. Economic development challenge grants demonstration 
                            project.
             ``Subtitle C--Business Development Assistance

        ``Sec. 721. Findings, purposes, and definitions.
        ``Sec. 722. Consolidation of information on technologies.
        ``Sec. 723. Business development and technology 
                            commercialization corporation.
        ``Sec. 724. Assistance to businesses in securing financing.
        ``Sec. 725. Technical assistance for lenders and borrowers.

``SEC. 2. CONGRESSIONAL FINDINGS AND STATEMENT OF PURPOSE.

    ``(a) Findings.--The Congress finds that the maintenance of the 
national economy at a high level is vital to the best interests of the 
United States, but that some of our regions, counties, and communities 
are suffering substantial and persistent unemployment and 
underemployment; that such unemployment and underemployment cause 
hardship to many individuals and their families, and waste invaluable 
human resources; that to overcome this problem the Federal Government, 
in cooperation with the States, should help areas and regions of 
substantial and persistent unemployment and underemployment to take 
effective steps in planning and financing their public works, business 
development, industrial retention, and economic development; that 
Federal financial assistance, including grants for public works and 
development facilities to communities, industries, enterprises, and 
individuals in areas needing development should enable such areas to 
help themselves achieve lasting improvement and enhance the domestic 
prosperity by the establishment of stable and diversified local 
economies and improved local conditions, provided that such assistance 
is preceded by and consistent with sound, long-range economic planning; 
and that under the provisions of this Act new employment opportunities 
should be created by developing and expanding new and existing public 
works and other facilities and resources, financing business 
development, and promoting industrial retention.
    ``(b) Declaration.--The Congress declares that, in furtherance of 
maintaining the national economy at a high level--
            ``(1) the assistance authorized by this Act should be made 
        available to both rural and urban areas;
            ``(2) such assistance be available for planning for 
        economic development prior to the actual occurrences of 
        economic distress in order to avoid such condition; and
            ``(3) that such assistance be used for long-term economic 
        rehabilitation in areas where long-term economic deterioration 
        has occurred or is taking place.

     ``TITLE I--GRANTS FOR PUBLIC WORKS AND DEVELOPMENT FACILITIES

``SEC. 101. DIRECT AND SUPPLEMENTARY GRANTS.

    ``(a) In General.--Upon the application of any State, or political 
subdivision thereof, Indian tribe, or private or public nonprofit 
organization or association, the Secretary of Commerce (hereafter in 
this Act referred to as the `Secretary') may--
            ``(1) make direct grants for the acquisition or development 
        of land and improvements for public works, public service, or 
        development facility usage, and the acquisition, design and 
        engineering, construction, rehabilitation, alteration, 
        expansion, or improvement of such facilities, including related 
        machinery and equipment if the Secretary finds that--
                    ``(A) the project for which financial assistance is 
                sought will directly or indirectly--
                            ``(i) tend to improve the opportunities, in 
                        the area where such project is or will be 
                        located, for the successful establishment or 
                        expansion of industrial or commercial plants or 
                        facilities,
                            ``(ii) otherwise assist in the creation of 
                        additional long-term employment opportunities 
                        for such area, or
                            ``(iii) primarily benefit the long-term 
                        unemployed and members of low-income families 
                        or otherwise substantially further the 
                        objectives of the Economic Opportunity Act of 
                        1964;
                    ``(B) the project for which a grant is requested 
                will fulfill a pressing need of the area, or part 
                thereof, in which it is, or will be, located;
                    ``(C) the area for which a project is to be 
                undertaken has an approved investment strategy and such 
                project is consistent with such strategy; and
                    ``(D) in the case of an area described in section 
                401(a)(4), the project to be undertaken will provide 
                immediate useful work to unemployed and underemployed 
                persons in that area; and
            ``(2) make supplementary grants in order to enable the 
        States and other entities to take maximum advantage of 
        designated Federal grant-in-aid programs (as hereinafter 
        defined), direct grants-in-aid authorized under this section, 
        and Federal grant-in-aid programs authorized by the Watershed 
        Protection and Flood Prevention Act and the 11 watersheds 
        authorized by the Flood Control Act of December 22, 1944, for 
        which they are eligible but for which, because of their 
        economic situation, they cannot supply the required matching 
        share.
    ``(b) Maximum Proportion of Direct Grant Funds to Total Project 
Cost.--Subject to subsection (c), the amount of any direct grant under 
this section for any project shall not exceed 50 percent of the cost of 
such project.
    ``(c) Proportion of Supplementary Grant Funds to Total Project 
Cost; Rules and Regulations; Maximum Grants; Required Non-Federal 
Share.--The amount of any supplementary grant under this section for 
any project shall not exceed the applicable percentage established by 
regulations promulgated by the Secretary, but in no event shall the 
non-Federal share of the aggregate cost of any such project (including 
assumptions of debt) be less than 20 percent of such cost, except that 
in the case of a grant to an Indian tribe, the Secretary may reduce the 
non-Federal share below such percentage or may waive the non-Federal 
share. In the case of any State or political subdivision thereof which 
the Secretary determines has exhausted its effective taxing and 
borrowing capacity, the Secretary shall reduce the non-Federal share 
below such percentage or shall waive the non-Federal share in the case 
of such a grant for a project in an area described in section 
401(a)(4). In the case of any community development corporation which 
the Secretary determines has exhausted its effective borrowing 
capacity, the Secretary may reduce the non-Federal share below such 
percentage or waive the non-Federal share in the case of such a grant 
for a project in an area described in section 401(a)(4). Supplementary 
grants shall be made by the Secretary, in accordance with such 
regulations as the Secretary shall prescribe, by increasing the amounts 
of direct grants authorized under this section or by the payment of 
funds appropriated under this Act to the heads of the departments, 
agencies, and instrumentalities of the Federal Government responsible 
for the administration of the applicable Federal programs. 
Notwithstanding any requirement as to the amount or sources of non-
Federal funds that may otherwise be applicable to the Federal program 
involved, funds provided under this subsection shall be used for the 
sole purpose of increasing the Federal contribution to specific 
projects under such programs above the fixed maximum portion of the 
cost of such project otherwise authorized by the applicable law. The 
term `designated Federal grant-in-aid programs,' as used in this 
subsection, means such existing or future Federal grant-in-aid programs 
assisting in the construction or equipping of facilities as the 
Secretary may, in furtherance of the purposes of this Act, designate as 
eligible for allocation of funds under this section. In determining the 
amount of any supplementary grant available to any project under this 
section, the Secretary shall take into consideration the relative needs 
of the area and the nature of the project to be assisted.
    ``(d) Regulations; Factors To Be Considered in Prescribing 
Regulations.--The Secretary shall prescribe regulations and procedures 
to carry out this section which will assure that adequate consideration 
is given to the relative needs of eligible areas. In prescribing such 
rules, regulations, and procedures the Secretary shall consider among 
other relevant factors--
            ``(1) the severity of the rates of unemployment in the 
        eligible areas and the duration of such unemployment, and
            ``(2) the income levels of families and the extent of 
        underemployment in eligible areas.
    ``(e) Review and Comment Upon Projects by Local Governmental 
Authorities.--The Secretary shall prescribe regulations which will 
assure that appropriate local governmental authorities have been given 
a reasonable opportunity to review and comment upon proposed projects 
under this section.

``SEC. 102. LIMITATION OF FUNDS EXPENDED IN ANY 1 STATE.

    ``Not more than 15 percent of the appropriations made pursuant to 
this title may be expended in any 1 State unless the Secretary 
determines that expenditures in excess of such limitation are necessary 
by reason of the occurrence of a major natural disaster in such State.

``SEC. 103. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this title 
$195,000,000 for fiscal year 1995 and $130,924,000 for fiscal year 
1996. Such sums shall remain available until expended.

``SEC. 104. FINANCIAL ASSISTANCE FOR SEWER FACILITIES.

    ``No financial assistance shall be extended under this Act for 
sewer or other waste disposal facilities unless the appropriate agency 
of the State in which the project is located certifies that such 
facilities meet applicable Federal, State, interstate, or local water 
quality standards.

``SEC. 105. CONSTRUCTION COST INCREASES.

    ``In any case where a grant (including a supplemental grant) has 
been made under this title for a project and after such grant has been 
made but before completion of the project, the cost of such project 
based upon the designs and specifications which were the basis of the 
grant has been increased because of increases in costs, the amount of 
such grant may be increased by an amount equal to the percentage 
increase, as determined by the Secretary, in such costs.

``SEC. 106. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.

    ``In any case where a grant (including a supplemental grant) has 
been made under this title for a project and after such grant has been 
made but before completion of the project, the cost of such project 
based upon the designs and specifications which were the basis of the 
grant has decreased because of decreases in costs, such underrun funds 
may be used to improve the project either directly or indirectly as 
determined by the Secretary.

``SEC. 107. CHANGED PROJECT CIRCUMSTANCES.

    ``In any case where a grant (including a supplemental grant) has 
been made under this title for a project and after such grant has been 
made but before completion of the project, the purpose or scope of such 
project based upon the designs and specifications which were the basis 
of the grant has changed, the Secretary may approve the use of grant 
funds on such changed project if the Secretary determines such changes 
are necessary to enhance economic development in the area.

``TITLE II--LOANS, LOAN GUARANTEES, AND ECONOMIC DEVELOPMENT REVOLVING 
                                  FUND

``SEC. 201. PUBLIC WORKS AND DEVELOPMENT FACILITY LOANS.

    ``(a) In General.--Subject to subsection (b) and section 401, upon 
the application of any State, any political subdivision of any State, 
any Indian tribe, or any private or public nonprofit organization or 
association, the Secretary may purchase evidences of indebtedness and 
make loans to assist in financing--
            ``(1) the purchase or development of land and improvements 
        for public works, public service, or development facility 
        usage, including public works, public service, and development 
        facility usage, to be provided by agencies of the Federal 
        Government pursuant to legislation requiring that non-Federal 
        entities bear some part of the cost of providing such works, 
        service, or usage; and
            ``(2) the acquisition, construction, rehabilitation, 
        alteration, expansion, or improvement of such facilities, 
        including related machinery and equipment.
    ``(b) Conditions.--The Secretary may provide financial assistance 
under subsection (a) only if the Secretary finds that--
            ``(1) the project for which financial assistance is sought 
        will directly or indirectly--
                    ``(A) tend to improve the opportunities, in the 
                area where such project is or will be located, for the 
                successful establishment or expansion of industrial or 
                commercial plants or facilities,
                    ``(B) otherwise assist in the creation of 
                additional long-term employment opportunities for such 
                area, or
                    ``(C) primarily benefit the long-term unemployed 
                and members of low-income families or otherwise 
                substantially further the objectives of the Economic 
                Opportunity Act of 1964;
            ``(2) the funds requested for such project are not 
        otherwise available from private lenders or from other Federal 
        agencies on terms which in the opinion of the Secretary will 
        permit the accomplishment of the project;
            ``(3) the amount of the loan plus the amount of other 
        available funds for such project are adequate to ensure the 
        completion of the project;
            ``(4) there is a reasonable expectation of repayment; and
            ``(5) such area has an approved investment strategy under 
        section 402 and the project for which financial assistance is 
        sought is consistent with such strategy.
    ``(c) Loan Terms; Interest Rates.--
            ``(1) Maximum term of maturity.--Subject to section 601, no 
        loan, including renewals or extensions of any loan, shall be 
        made under this section for a period exceeding 40 years, and no 
        evidence of indebtedness maturing more than 40 years from the 
        date of purchase shall be purchased under this section.
            ``(2) Interest.--Loans under this section shall bear 
        interest at a rate not less than a rate determined by the 
        Secretary of the Treasury taking into consideration the current 
        average market yield on outstanding marketable obligations of 
        the United States with remaining periods to maturity comparable 
        to the average maturities of such loans, adjusted to the 
        nearest \1/8\ of 1 percent, minus not to exceed \1/2\ of 1 
        percent per annum.
    ``(d) Authorization of Appropriations.--There are hereby authorized 
to be appropriated such sums as may be necessary to carry out the 
provisions of this section and section 202.
    ``(e) Regulations.--The Secretary shall prescribe regulations which 
will assure that appropriate local governmental authorities have been 
given a reasonable opportunity to review and comment upon proposed 
projects under this section.

``SEC. 202. BUSINESS LOANS AND LOAN GUARANTEES.

    ``(a) In General.--
            ``(1) Financial assistance authorized.--Subject to section 
        401, the Secretary may assist in the financing the purchase or 
        development of land and facilities (including machinery and 
        equipment) for industrial or commercial usage, including the 
        construction of new buildings, the rehabilitation of abandoned 
        or unoccupied buildings, and the alteration, conversion, or 
        enlargement of existing buildings by--
                    ``(A) purchasing evidences of indebtedness;
                    ``(B) making loans (which for purposes of this 
                section shall include participation in loans); and
                    ``(C) guaranteeing loans made to private borrowers 
                by private lending institutions, for any of the 
                purposes referred to in this paragraph upon application 
                of such institution and upon such terms and conditions 
                as the Secretary may prescribe, except that no such 
                guarantee shall at any time exceed 90 percent of the 
                amount of the outstanding unpaid balance of such loan.
            ``(2) Interest subsidy.--
                    ``(A) Authorization.--In addition to any other 
                financial assistance under this subchapter, the 
                Secretary may, in the case of any loan guarantee under 
                authority of paragraph (1) of this section, pay to or 
                on behalf of the private borrower an amount sufficient 
                to reduce up to 4 percentage points the interest paid 
                by such borrower on such guaranteed loans.
                    ``(B) Maximum amount of buy-down.--No payment under 
                this paragraph shall result in the interest rate being 
                paid by a borrower on such a guaranteed loan being less 
                than the rate of interest for such a loan if the loan 
                were made under section 201.
                    ``(C) Frequency of payment.--Payments made to or on 
                behalf of such borrower shall be made no less often 
                than annually.
            ``(3) Working capital loans and guarantees.--The Secretary 
        may assist in financing any industrial or commercial activity 
        by--
                    ``(A) making working capital loans;
                    ``(B) guaranteeing working capital loans made to 
                private borrowers by private lending institutions upon 
                application of such institution and upon such terms and 
                conditions as the Secretary may prescribe, except that 
                no such guarantee shall at any time exceed 90 percent 
                of the amount of the outstanding unpaid balance of such 
                loan;
                    ``(C) guaranteeing rental payments of leases for 
                buildings and equipment, except that no such guarantee 
                shall exceed 90 percent of the remaining rental 
                payments required by the lease;
                    ``(D) paying those debts with respect to which a 
                lien against property has been legally obtained 
                (including the refinancing of any such debt) in any 
                case where the Secretary determines that the payment is 
                essential in order to--
                            ``(i) save employment in a designated area;
                            ``(ii) avoid a significant rise in 
                        unemployment; or
                            ``(iii) create new or increased employment.
    ``(b) Terms and Conditions.--Financial assistance under this 
section shall be on such terms and conditions as the Secretary 
determines, subject to the following restrictions and limitations:
            ``(1) Such financial assistance shall not be extended to 
        assist establishments relocating from 1 area to another or to 
        assist subcontractors whose purpose is to divest, or whose 
        economic success is dependent upon divesting, other contractors 
        or subcontractors of contracts theretofore customarily 
        performed by them, except that this limitation shall not be 
        construed as prohibiting assistance for the expansion of an 
        existing business entity through the establishment of a new 
        branch, affiliate, or subsidiary of such entity if the 
        Secretary finds that the establishment of such branch, 
        affiliate, or subsidiary will not result in an increase in 
        unemployment of the area of original location or in any other 
        area where such entity conducts business operations, unless the 
        Secretary has reason to believe that such branch, affiliate, or 
        subsidiary is being established with the intention of closing 
        down the operations of the existing business entity in the area 
        of the business entity's original location or in any other area 
        where the entity conducts such operations.
            ``(2) Such assistance shall be extended only to applicants, 
        both private and public (including Indian tribes), which have 
        been approved for such assistance by an agency or 
        instrumentality of the State or political subdivision thereof 
        in which the project to be financed is located, and which 
        agency or instrumentality is directly concerned with problems 
        of economic development in such State or subdivision.
            ``(3) The project for which financial assistance is sought 
        shall be reasonably calculated to provide more than a temporary 
        alleviation of unemployment or underemployment within the area 
        in which the project is or will be located.
            ``(4) No loan or guarantee may be extended under this 
        section unless the financial assistance applied for is not 
        otherwise available from private lenders or from other Federal 
        agencies on terms which in the opinion of the Secretary will 
        permit the accomplishment of the project.
            ``(5) The Secretary may not make any loan without a 
        participation unless the Secretary determines that the loan 
        cannot be made on a participation basis.
            ``(6) No evidences of indebtedness may be purchased and no 
        loans may be made or guaranteed unless the Secretary is 
        determined that there is reasonable assurance of repayment.
            ``(7) Subject to section 601(a)(5), no loan or guarantee, 
        including any renewal or extension of a loan or guarantee, may 
        be made under this section for a term to maturity of more than 
        25 years and no evidences of indebtedness which matures more 
        than 25 years after the date of purchase may be purchased under 
        this section, except that this paragraph not apply to 
        securities or obligations received by the Secretary as a 
        claimant in bankruptcy or equitable reorganization or as a 
        creditor in other proceedings attendant upon insolvency of the 
        obligor.
            ``(8) Loans made and evidences of indebtedness purchased 
        under this section shall bear interest at a rate not less than 
        a rate determined by the Secretary of the Treasury taking into 
        consideration the current average market yield on outstanding 
        marketable obligations of the United States with remaining 
        periods to maturity comparable to the average maturities of 
        such loans, adjusted to the nearest \1/8\ of 1 percent, plus an 
        additional charge, if any, toward covering other costs of the 
        program as the Secretary may determine to be consistent with 
        the purpose of this section.
            ``(9) Loan assistance (other than for a working capital 
        loan) shall not exceed 65 percent of the aggregate cost to the 
        applicant (excluding all other Federal aid in connection with 
        the undertaking) of acquiring or developing land and facilities 
        (including machinery and equipment), and of constructing, 
        altering, converting, rehabilitating, or enlarging the building 
        or buildings of the particular project, and shall, among 
        others, be on the condition that--
                    ``(A) other funds are available in an amount which, 
                together with the assistance provided under this 
                section, shall be sufficient to pay such aggregate 
                cost;
                    ``(B) not less than 15 percent of such aggregate 
                cost be supplied as equity capital or as a loan 
                repayable in no shorter period of time and at no faster 
                an amortization rate than the Federal financial 
                assistance extended under this section is being repaid, 
                and if such a loan is secured, the security for the 
                loan shall be subordinate and inferior to the lien or 
                liens securing such Federal financial assistance;
                    ``(C) except with respect to projects involving 
                financial participation by Indian tribes, not less than 
                5 percent of such aggregate cost shall be supplied by 
                the State or any agency, instrumentality, or political 
                subdivision of a State, or by a community or area 
                organization which is nongovernmental in character, 
                unless the Secretary shall determine in accordance with 
                objective standards prescribed by regulation that all 
                or part of such funds are not reasonably available to 
                the project because of the economic distress of the 
                area or for other good cause, in which case the 
                Secretary may waive the requirement of this provision 
                to the extent of such unavailability, and allow the 
                funds required by this subsection to be supplied by the 
                applicant or by such other non-Federal source as may 
                reasonably be available to the project; and
                    ``(D) to the extent the Secretary finds such action 
                necessary to encourage financial participation in a 
                particular project by other lenders and investors, and 
                except as otherwise provided in subparagraph (B), any 
                Federal financial assistance extended under this 
                section may be repayable only after other loans made in 
                connection with such project have been repaid in full, 
                and the security, if any, for such Federal financial 
                assistance may be subordinate and inferior to the lien 
                or liens securing other loans made in connection with 
                the same project.

``SEC. 203. ECONOMIC DEVELOPMENT LIQUIDATING FUND.

    ``The Economic Development Revolving Fund established before the 
date of the enactment of the Economic Development and Financing Act of 
1995 shall continue to be available to the Secretary as a liquidating 
account as defined under section 502 of the Federal Credit Reform Act 
of 1990 for payment of obligations and costs in connection with 
financial assistance extended under this Act before October 1, 1991.

 ``TITLE III--STRATEGIC PLANNING, RESEARCH, INFORMATION, AND TECHNICAL 
                               ASSISTANCE

 ``Subtitle A--Strategic Economic Development Planning, Research, and 
                              Information

``SEC. 301. OFFICE OF STRATEGIC ECONOMIC DEVELOPMENT PLANNING AND 
              POLICY.

    ``(a) Establishment.--The Secretary shall establish an Office of 
Strategic Economic Development Planning and Policy (hereafter in this 
section referred to as `the Office').
    ``(b) Duties.--The duties of the administrator of the Office are as 
follows:
            ``(1) Research, evaluation and demonstration.--To support 
        research, evaluation and demonstration projects to study and 
        assess best practices in economic development and to examine 
        trends and changes in economic conditions that effect regional 
        development.
            ``(2) Policy development.--To develop recommendations on 
        both short- and long-term policies regarding economic 
        development issues and programs, to help foster the diffusion 
        of innovative, best practices in economic development 
        throughout the Department of Commerce.
            ``(3) Coordination.--To take a leading role in developing 
        and promoting means for greater coordination among States, 
        regions and local communities in the design and implementation 
        of economic development strategies, and shall work in 
        conjunction with Federal agencies on developing and 
        implementing means for reducing fragmentation and increase 
        coordination among Federal programs that provide economic 
        development assistance.
            ``(4) Information dissemination.--To sponsor and support 
        conferences, workshops, and other forums to bring together the 
        best scholars and practitioners in the field to effectively 
        disseminate knowledge of the state-of-the-art in economic 
        development to Federal, State, and local development 
        organizations. It shall also disseminate information on all 
        aspects of economic development through electronic and printed 
        media, making such information widely accessible.
    ``(c) Research in Causes of Long-Term Economic Deterioration.--
            ``(1) In general.--To assist in the long-range 
        accomplishment of the purposes of this Act, the Secretary, in 
        cooperation with other agencies having similar functions, shall 
        establish and conduct a continuing program of study, training, 
        and research to--
                    ``(A) assist in determining the causes of 
                unemployment, underemployment, underdevelopment, and 
                chronic depression in the various areas and regions of 
                the Nation,
                    ``(B) assist in the formulation and implementation 
                of national, State, and local programs which will raise 
                income levels and otherwise produce solutions to the 
                problems resulting from these conditions, and
                    ``(C) assist in providing the personnel needed to 
                conduct such programs.
            ``(2) Manner of providing study, assistance.--The program 
        of study, training, and research may be conducted by the 
        Secretary through--
                    ``(A) members of the Secretary's staff;
                    ``(B) the payment of funds authorized for this 
                section to other departments or agencies of the Federal 
                Government;
                    ``(C) the employment of private individuals, 
                partnerships, firms, corporations, or suitable 
                institutions;
                    ``(D) contracts entered into for such purposes;
                    ``(E) grants to such individuals, organizations, or 
                institutions as the Secretary determines to be 
                appropriate; or
                    ``(F) conferences and similar meetings organized 
                for such purposes.
            ``(3) Availability of results of research.--The Secretary 
        shall make available to interested individuals and 
        organizations the results of such research.
            ``(4) Annual report of secretary.--The Secretary shall 
        include in the annual report under section 606 a detailed 
        statement concerning the study and research conducted under 
        this section together with the Secretary's findings and 
        conclusions and such recommendations for legislative and other 
        action as the Secretary may consider appropriate.
    ``(d) Geographic Analysis Tool.--
            ``(1) In general.--The Secretary shall, in cooperation with 
        other appropriate Federal agencies develop a computerized 
        geographic analysis tool that all Federal departments and 
        agencies and grant recipients may use to evaluate the success 
        of these programs.
            ``(2) Report.--Not later than 6 months after the date of 
        the enactment of the Economic Development and Financing Act of 
        1995, the Secretary shall transmit to Congress a report on use 
        of the computerized geographic analysis tool developed pursuant 
        to paragraph (1) by Federal departments and agencies.
    ``(e) Independent Advisory Committee.--The Secretary shall 
establish an advisory committee made up of representatives from major 
State, local, and nonprofit economic development organizations as well 
as nationally recognized experts on innovative approaches to economic 
development to advise and make recommendations to the Office.
    ``(f) Federal Coordinating Council for Economic Development.--
            ``(1) In general.--The Secretary shall establish a Federal 
        Coordinating Council for Economic Development (hereafter in 
        this section referred to as the `Council').
            ``(2) Composition of council.--The Council shall be 
        composed of representatives from the Federal agencies involved 
        in matters that affect regional economic development.
            ``(3) Duties.--The council shall assist in providing a 
        unifying framework for economic and regional development 
        efforts and develop a governmentwide strategic plan for 
        economic development.
    ``(g) Grants and Contracts for Demonstration Projects; Purposes.--
The Secretary may make grants, enter into contracts, or otherwise 
provide funds for any demonstration project in an eligible area which 
the Secretary determines is designed to foster regional productivity 
and growth, prevent outmigration, and otherwise carry out the purposes 
of this Act.

``SEC. 302. OFFICE OF ECONOMIC DEVELOPMENT INFORMATION.

    ``(a) Establishment.--The Secretary shall establish the Office of 
Economic Development Information (hereafter in this section referred to 
as the `Office') within the Office of Strategic Economic Development 
Planning and Policy.
    ``(b) Duties.--The duties of the administrator of the Office shall 
be to--
            ``(1) serve as a central information clearinghouse on 
        matters relating to economic development, economic adjustment, 
        industrial retention, disaster recovery, and defense conversion 
        programs and activities of the Federal and State governments, 
        including political subdivisions of the States; and
            ``(2) help potential and actual applicants for economic 
        development, economic adjustment, disaster recovery, industrial 
        retention, and defense conversion assistance under Federal, 
        State and local laws in locating and applying for such 
        assistance, including financial and technical assistance.
    ``(c) Information Data Bases.--
            ``(1) Uses.--The Office shall develop information data 
        bases for use by Federal departments and agencies, State and 
        local governmental agencies, public and private entities, and 
        individuals to assist such agencies, entities, and individuals 
        in the process of identifying and applying for assistance and 
        resources under economic development, economic adjustment, 
        disaster recovery, industrial retention, and defense conversion 
        programs and activities of the Federal, State, and local 
        governments.
            ``(2) Specific kinds of information required to be 
        included.--The data bases shall include the following kinds of 
        information:
                    ``(A) A comprehensive compilation of all relevant 
                information concerning available economic development, 
                economic adjustment, disaster recovery, industrial 
                retention, and defense conversion programs of the 
                Federal Government, including key contact people, 
                descriptions of the application process, eligibility 
                requirements and criteria, selection and followup 
                procedures, and other such relevant information.
                    ``(B) A compilation of major State and local 
                governmental economic development, economic adjustment, 
                disaster relief, industrial retention, and defense 
                conversion assistance programs, including lists of 
                appropriate offices, officers, and contact personnel 
                connected with, or involved in, such programs.
                    ``(C) A compilation of relevant economic data and 
                trends, including information about the national, 
                regional and local impacts of trade agreements, defense 
                spending and downsizing, technological change, and 
                other sources of substantial economic dislocation.
                    ``(D) A compilation of case studies and `best 
                practices' in economic development, adjustment and 
                conversion.
                    ``(E) A compilation of technology development, 
                deployment, diffusion, and commercialization programs, 
                assistance and resources provided by Federal agencies, 
                including listings of patents, licenses, and 
                technologies, and processes owned, or held in part, by 
                the Federal Government, and other such information as 
                referred to in section 722 and any other relevant 
                information, such as major State and local programs, to 
                assist technology development, deployment and 
                commercialization in economic development, adjustment 
                and conversion efforts.
                    ``(F) A compilation of published works (books, 
                reports, articles, videos, and tapes), and selected 
                texts of such works, related to all facets of economic 
                development, economic adjustment and defense 
                conversion.
                    ``(G) A compilation of information on case studies 
                on early warning and intervention efforts.
            ``(3) Points of public access.--
                    ``(A) In general.--The Office shall establish 
                several mechanisms to assure easy, access by the public 
                and others to such data bases, and to assure that the 
                data bases be as accessible, user-friendly, culturally 
                neutral, and affordable as possible.
                    ``(B) Outreach.--The Office shall conduct an 
                extensive outreach to States and communities, and to a 
                wide range of constituencies, including State and local 
                government officials, chambers of commerce, industrial 
                organizations, labor unions, and community-based 
                organizations, to publicize the existence of the data 
                banks and other assistance and services provided under 
                this section, and how to acquire such assistance and 
                services, and access such data banks.
                    ``(C) Means of access.--Access to the Office's data 
                services shall include the following means:
                            ``(i) A toll-free nationwide telephone 
                        number to provide direct phone access to the 
                        public.
                            ``(ii) On-line electronic access through 
                        existing computer network services and publicly 
                        available computer data base access facilities, 
                        such as at repository libraries and by direct 
                        call-in via modem.
                            ``(iii) Printed manuals and orientation 
                        materials.
                            ``(iv) Periodic orientation workshops 
                        available to the public.
                            ``(v) On-call information specialists to 
                        address special problems requiring person-to-
                        person assistance.
    ``(d) Consultative Meetings.--The Office shall conduct, on an 
annual basis, consultative meetings and briefings with constituencies 
from several different types of distressed areas and regions, drawn 
from local and State governments, economic development districts, 
Indian tribes, business, labor, community and public interest 
organizations and academic institutions. Such meetings and briefings 
shall be held in these different areas to introduce the Office's 
programs and receive comments and recommendations concerning the 
Office's services and how to expand and improve them.
    ``(e) Interagency Coordination.--The Secretary shall enter into 
such agreements and understandings as may be necessary with other 
Federal departments and agencies to coordinate the accomplishment of 
the objectives of this section.

``SEC. 303. UNIFORM GRANT APPLICATION FORM.

    ``(a) Development.--The Secretary shall, in cooperation with the 
heads of appropriate Federal departments and agencies, develop a 
general, simplified application form for grant assistance under this 
Act which may be used by all Federal departments and agencies which 
provide grant assistance.
    ``(b) Report.--Not later than 6 months after the date of the 
enactment of this section, the Secretary shall transmit to Congress a 
report on use of the form developed pursuant to subsection (a) by 
Federal departments and agencies.

  ``Subtitle B--Technical Assistance and Economic Development Planning

``SEC. 311. TECHNICAL ASSISTANCE.

    ``(a) In General.--In carrying out the duties of the Secretary 
under this Act, the Secretary may provide technical assistance which 
would be useful in alleviating or preventing conditions of excessive 
unemployment or underemployment to areas which the Secretary finds have 
substantial need for such assistance, including assistance for project 
planning and feasibility studies, management and operational 
assistance, and studies evaluating the needs of, and developing 
potentialities for, economic growth of such areas.
    ``(b) Procedures and Terms.--
            ``(1) Manner of providing assistance.--Assistance may be 
        provided by the Secretary through--
                    ``(A) members of the Secretary's staff;
                    ``(B) the payment of funds authorized for this 
                section to other departments or agencies of the Federal 
                Government;
                    ``(C) the employment of private individuals, 
                partnerships, firms, corporations, or suitable 
                institutions;
                    ``(D) contracts entered into for such purposes; or
                    ``(E) grants-in-aid to appropriate public or 
                private nonprofit State, area, district, or local 
                organizations.
            ``(2) Repayment terms.--The Secretary, in the Secretary's 
        discretion, may require the repayment of assistance provided 
        under this subsection and prescribe the terms and conditions of 
        such repayment.
    ``(c) Grants Covering Administrative Expenses.--
            ``(1) In general.--The Secretary may make grants to defray 
        not to exceed 75 percent of the administrative expenses of 
        organizations which he determines to be qualified to receive 
        grants-in-aid under subsection (a), except that in the case of 
        a grant under this subsection to an Indian tribe the Secretary 
        is authorized to defray up to 100 percent of such expenses.
            ``(2) Determination of non-federal share.--In determining 
        the amount of the non-Federal share of administrative costs or 
        expenses, the Secretary shall give due consideration to all 
        contributions both in cash and in kind, fairly evaluated, 
        including space, equipment, and services.
            ``(3) Use of grants with planning grants.--Where 
        practicable, grants-in-aid authorized under this subsection 
        shall be used in conjunction with other available planning 
        grants, such as urban planning grants authorized under the 
        Housing Act of 1954 and highway planning and research grants 
        authorized under the Federal Aid Highway Act of 1962, to assure 
        adequate and effective planning and economical use of funds.
    ``(d) Availability of Technical Information; Federal Procurement.--
The Secretary shall aid areas by furnishing to interested individuals, 
communities, industries, and enterprises within such areas any 
assistance, technical information, market research, or other forms of 
assistance, information, or advice which would be useful in alleviating 
or preventing conditions of excessive unemployment or underemployment 
within such areas. The Secretary may furnish the procurement divisions 
of the various departments, agencies, and other instrumentalities of 
the Federal Government with a list containing the names and addresses 
of business firms which are desirous of obtaining Government contracts 
for the furnishing of supplies or services, and designating the 
supplies and services such firms are engaged in providing.

``SEC. 312. ECONOMIC DEVELOPMENT PLANNING.

    ``(a) Direct Grants.--
            ``(1) In general.--The Secretary may, upon application of 
        any State, or city, or other political subdivision of a State, 
        or sub-State planning and development organization (including 
        an economic development district or any area described in 
        section 401(a)(4)), to make direct grants to such State, city, 
        other political subdivision, or organization pay up to 80 
        percent of the cost for economic development planning.
            ``(2) Planning projects specifically included.--The 
        planning for cities, other political subdivisions, and sub-
        State planning and development organizations (including an 
        economic development district or an area described in section 
        401(a)(4)) assisted under this section shall include systematic 
        efforts to reduce unemployment and increase incomes.
            ``(3) Planning process.--The planning shall be a continuous 
        process involving public officials and private citizens in 
        analyzing local economies, defining development goals, 
        determining project opportunities, and formulating and 
        implementing a development program.
            ``(4) Cooperative development of investment strategy.--Any 
        State investment strategy prepared with assistance under this 
        section shall be prepared cooperatively by the State, the 
        political subdivisions of the State, and the economic 
        development districts and areas described in section 401(a)(4) 
        located in whole or in part within such State.
            ``(5) State certification.--Upon completion of any such 
        strategy, the State shall certify to the Secretary that--
                    ``(A) in the preparation of such State investment 
                strategy, the local and economic development district 
                strategies were considered and, to the fullest extent 
                possible, such State strategy is consistent with such 
                local and economic development district strategies; and
                    ``(B) such State strategy is consistent with such 
                local and economic development district strategies, or, 
                if such State strategy is not consistent with such 
                local and economic development district strategies, all 
                of the inconsistencies of the State strategy with the 
                local and economic development district strategies, and 
                the justification for each of these inconsistencies.
            ``(6) Comprehensive planning process.--The development of 
        any State investment strategy shall be a part of a 
        comprehensive planning process that shall consider the 
        provisions of public works to--
                    ``(A) stimulate and channel development, economic 
                opportunities, and choices for individuals;
                    ``(B) support sound land use;
                    ``(C) enhance and protect the environment including 
                the conservation and preservation of open spaces and 
                environmental quality;
                    ``(D) provide public services; and
                    ``(E) balance physical and human resources through 
                the management and control of physical development.
            ``(7) Coordination of assistance under 311(c).--The 
        assistance available under this section may be provided in 
        addition to assistance available under section 311(c) but shall 
        not supplant such assistance.
            ``(8) Annual report by recipient.--Each State receiving 
        assistance under this subsection shall submit to the Secretary 
        an annual report on the planning process assisted under this 
        subsection.
    ``(b) Compliance With Review Procedure.--The planning assistance 
authorized under this title shall be used in conjunction with any other 
available Federal planning assistance to assure adequate and effective 
planning and economical use of funds.

``SEC. 313. BUSINESS OUTREACH CENTER DEMONSTRATION PROJECT.

    ``(a) In General.--The Secretary shall conduct a project in each of 
fiscal years 1995 through 1997 with funds made available under this 
title for the purpose of demonstrating methods of assisting isolated 
small businesses to access small business services provided by Federal, 
State, and local governments.
    ``(b) Establishment of Centers.--In conducting the demonstration 
project under this section, the Secretary shall establish 3 business 
outreach centers.
    ``(c) Purpose of Centers.--It shall be the purpose of each business 
outreach center established under this section--
            ``(1) to provide a one-stop clearinghouse to assist 
        isolated small businesses in accessing small business services 
        provided by Federal, State, and local governments; and
            ``(2) to improve efficiency in the delivery of such 
        services.
    ``(d) Services To Be Provided.--Each business outreach center 
established under this section shall provide the following services:
            ``(1) Outreach to isolated small businesses.
            ``(2) Assessment of the need of isolated small businesses 
        for assistance services.
            ``(3) Referral of isolated small businesses to small 
        business assistance agencies.
            ``(4) Preparation of materials required by isolated small 
        businesses for participation in small business assistance 
        programs.
            ``(5) Case management to assure follow up and quality 
        control of business services.
            ``(6) Coordination of networking among isolated small 
        businesses.
            ``(7) Quality control of small business assistance 
        services.
    ``(e) Isolated Small Business Defined.--For the purposes of this 
section, the term `isolated small business' means a small business that 
is unable to effectively access small business services provided by 
Federal, State, and local governments due to linguistic, cultural, or 
geographic barriers.

``SEC. 314. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this title 
$37,524,000 for fiscal year 1995 and $50,000,000 for fiscal year 1996. 
Such sums shall remain available until expended.

           ``TITLE IV--ELIGIBILITY AND INVESTMENT STRATEGIES

``SEC. 401. AREA ELIGIBILITY.

    ``(a) Certification.--In order to be eligible for assistance under 
title I or II, an applicant seeking assistance to undertake a project 
shall certify, as part of an application for such assistance, that, as 
of the date of submission of such application, the area in which the 
project is located meets 1 or more of the following criteria:
            ``(1) The area has a per capita income of 80 percent or 
        less of the national average.
            ``(2) The area has an unemployment rate 1 percent above the 
        national average percentage for the most recent 24-month period 
        for which statistics are available.
            ``(3) The area has experienced or is about to experience a 
        sudden economic dislocation resulting in job loss that is 
        significant both in terms of the number of jobs eliminated and 
        the effect upon the employment rate of the area.
            ``(4) The area is a community or neighborhood (defined 
        without regard to political or other subdivisions or 
        boundaries) which the Secretary determines has 1 or more of the 
        following conditions:
                    ``(A) A large concentration of low-income persons.
                    ``(B) Rural areas having substantial outmigration.
                    ``(C) Substantial unemployment.
    ``(b) Documentation.--A certification made under subsection (a) 
shall be supported by Federal data, when available, and in other cases 
by data available through the State government. Such documentation 
shall be accepted by the Secretary unless it is determined to be 
inaccurate. The most recent statistics available shall be used.
    ``(c) Special Rule.--No area which meets the criteria of subsection 
(a) shall be subject to the requirements of subparagraphs (A) and (C) 
of section 101(a)(1).
    ``(d) Prior Designations.--Any designation of a redevelopment area 
under this title made before the date of the enactment of the Economic 
Development and Financing Act of 1995 shall not be effective after such 
date of enactment.
    ``(e) Definition.--For purposes of this Act, the term `large 
concentration of low-income persons' means an area with a median family 
income of not more than 80 percent of the national median family 
income.

``SEC. 402. INVESTMENT STRATEGY.

    ``The Secretary may provide assistance under this Act to an 
applicant for a project to be undertaken in an area only if the 
applicant submits to the Secretary, as part of an application for such 
assistance, and the Secretary approves an investment strategy which--
            ``(1) identifies the economic development problems to be 
        addressed using such assistance;
            ``(2) identifies past, present, and projected future 
        economic development investments in such area and public and 
        private participants and sources of funding for such 
        investments;
            ``(3) sets forth a strategy for addressing the economic 
        problems identified pursuant to paragraph (1) and describes how 
        the strategy will solve such problems;
            ``(4) provides a description of the project necessary to 
        implement the strategy, estimates of costs and time tables; and
            ``(5) provides a summary of public and private resources 
        expected to be available for such project.

``SEC. 403. DEFINITION.

    ``For purposes of this Act, the term `economic development 
district' means--
            ``(1) an economic development district designated before 
        the date of enactment of the Economic Development and Financing 
        Act of 1995 under section 403(a) of the Public Works and 
        Economic Development Act of 1965, as in effect on the day 
        before such date; and
            ``(2) any district within a State which--
                    ``(A) is designated by the Secretary;
                    ``(B) is of sufficient size or population and 
                contains sufficient resources to foster economic 
                development on a scale involving more than 1 county; 
                and
                    ``(C) does not contain within its boundaries any 
                part of another economic development district 
                designated under subparagraph (A).

``SEC. 404. FUNDING.

    ``Amounts authorized to be appropriated under other sections of 
this Act shall be available for the purposes of carrying out this 
title.

                       ``TITLE V--ADMINISTRATION

``SEC. 501. APPOINTMENT OF ASSISTANT SECRETARY OF COMMERCE AND 
              ADMINISTRATOR FOR ECONOMIC DEVELOPMENT; COMPENSATION.

    ``(a) Administration of Act.--The Secretary shall administer this 
Act and, with the assistance of an Assistant Secretary of Commerce, in 
addition to those already provided for, shall supervise and direct the 
Administrator appointed pursuant to subsection (c).
    ``(b) Appointment of Assistant Secretary.--
            ``(1) In general.--The Assistant Secretary whose position 
        is established under subsection (a) shall be appointed by the 
        President, by and with the advice and consent of the Senate.
            ``(2) Duties.--The Assistant Secretary appointed under 
        paragraph (1) shall perform such functions as the Secretary may 
        prescribe.
    ``(c) Administrator for Economic Development.--There shall be 
appointed by the President, by and with the advice and consent of the 
Senate, an Administrator for Economic Development who--
            ``(1) shall be compensated at the rate provided for level V 
        of the Federal Executive Salary Schedule under section 5316 of 
        title 5, United States Code; and
            ``(2) shall perform such duties as are assigned by the 
        Secretary.

``SEC. 502. CONSULTATION OF SECRETARY WITH OTHER PERSONS AND AGENCIES.

    ``(a) Consultation on Problems Relating to Unemployment.--The 
Secretary may, from time to time, call together and confer with any 
persons, including representatives of labor, management, agriculture, 
and government, who can assist in meeting the problems of area and 
regional unemployment or underemployment.
    ``(b) Consultation on Administration of Act.--The Secretary may 
make provision for such consultation with interested departments and 
agencies as he may deem appropriate in the performance of the functions 
vested in him by this Act.

``SEC. 503. ADMINISTRATION, OPERATION, AND MAINTENANCE.

    ``No Federal assistance shall be approved under this Act unless the 
Secretary is satisfied that the project for which Federal assistance is 
granted will be properly and efficiently administered, operated, and 
maintained.

``SEC. 504. EXPEDITED PROCESSING OF APPLICATIONS.

    ``(a) Guidelines.--Not later than 60 days after the date of the 
enactment of the Economic Development and Financing Act of 1995, the 
Assistant Secretary for Economic Development shall--
            ``(1) publish guidelines to expedite the processing of 
        applications for assistance under this Act; and
            ``(2) transmit to the Committee on Public Works and 
        Transportation and the Committee on Banking, Finance and Urban 
        Affairs of the House of Representatives and the Committee on 
        Environment and Public Works and the Committee on Banking, 
        Housing, and Urban Affairs of the Senate a report containing 
        such guidelines.
    ``(b) Contents.--Guidelines to be published under subsection (a) 
shall, at a minimum, provide for the following:
            ``(1) Increased reliance on self-certification by 
        applicants to establish compliance with other Federal laws.
            ``(2) Greater use of uniform application forms and 
        procedures.
            ``(3) Delegation of decisionmaking authority to regional 
        offices.
            ``(4) Reduction in the time and number of reviews conducted 
        by other offices of the Department of Commerce.

``SEC. 505. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

    ``(a) In General.--At least once every 2 years, the Secretary shall 
conduct an evaluation of each university center and economic 
development district receiving grant assistance under this Act to 
assess the recipient's performance and contribution toward job 
creation.
    ``(b) Criteria.--
            ``(1) Establishment.--The Secretary shall establish 
        criteria for use in conducting evaluations under subsection 
        (a).
            ``(2) Criteria for university centers.--The criteria for 
        evaluation of a university center shall, at a minimum, provide 
        for an assessment of the center's contribution to providing 
        technical assistance, conducting applied research, and 
        disseminating results of the center's activities.
            ``(3) Criteria for economic development districts.--The 
        criteria for evaluation of an economic development district 
        shall, at a minimum, provide for an assessment of management 
        standards, financial accountability, and program performance.
    ``(c) Peer Review.--In conducting an evaluation of a university 
center under subsection (a), the Secretary shall provide for the 
participation of at least 1 other university center on a cost-
reimbursement basis.

                       ``TITLE VI--MISCELLANEOUS

``SEC. 601. POWERS OF SECRETARY.

    ``(a) In General.--In performing the duties of the Secretary under 
this Act, the Secretary may--
            ``(1) adopt, alter, and use a seal, which shall be 
        judicially noticed;
            ``(2) hold such hearings, sit and act at such times and 
        places, and take such testimony, as the Secretary may deem 
        advisable;
            ``(3) request directly from any executive department, 
        bureau, agency, board, commission, office, independent 
        establishment, or instrumentality information, suggestions, 
        estimates, and statistics needed to carry out the purposes of 
        this Act; and each department, bureau, agency, board, 
        commission, office, establishment or instrumentality is 
        authorized to furnish such information, suggestions, estimates, 
        and statistics directly to the Secretary;
            ``(4) under regulations prescribed by the Secretary, assign 
        or sell at public or private sale, or otherwise dispose of for 
        cash or credit, in the Secretary's discretion and upon such 
        terms and conditions and for such consideration as the 
        Secretary determines to be reasonable, any evidence of debt, 
        contract, claim, personal property, or security assigned to or 
        held by the Secretary in connection with grants or loans made 
        or evidences of indebtedness purchased under this Act, and 
        collect or compromise all obligations assigned to or held by 
        him in connection with such grants, loans, or evidences of 
        indebtedness until such time as such obligations may be 
        referred to the Attorney General for suit or collection;
            ``(5) further extend the maturity of or renew any loan made 
        or evidence of indebtedness purchased under this Act, beyond 
        the periods stated in such loan or evidence of indebtedness or 
        in this Act, for additional periods not to exceed 10 years, if 
        such extension or renewal will aid in the orderly liquidation 
        of such loan or evidence of indebtedness;
            ``(6) deal with, complete, renovate, improve, modernize, 
        insure, rent, or sell for cash or credit, upon such terms and 
        conditions and for such consideration as the Secretary 
        determines to be reasonable, any real or personal property 
        conveyed to, or otherwise acquired by, the Secretary in 
        connection with grants or loans made or evidences of 
        indebtedness purchased under this Act;
            ``(7) pursue to final collection, by way of compromise or 
        other administrative action, prior to reference to the Attorney 
        General, all claims against 3d parties assigned to the 
        Secretary in connection with grants or loans made or evidences 
        of indebtedness purchased under this Act;
            ``(8) acquire, in any lawful manner, any property (real, 
        personal, or mixed, tangible or intangible), whenever necessary 
        or appropriate to the conduct of activities under section 201, 
        202, 311, or 411;
            ``(9) in addition to any powers, functions, privileges, and 
        immunities otherwise vested in the Secretary, take any action, 
        including the procurement of the services of attorneys by 
        contract, determined by the Secretary to be necessary or 
        desirable in making, purchasing, servicing, compromising, 
        modifying, liquidating, or otherwise administratively dealing 
        with or realizing on loans made or evidences of indebtedness 
        purchased under this Act;
            ``(10) employ experts and consultants or organizations as 
        authorized by section 3109 of title 5, compensate individuals 
        so employed at rates not in excess of $100 per diem, including 
        travel time, and allow them, while away from their homes or 
        regular places of business, travel expenses (including per diem 
        in lieu of subsistence) as authorized by section 5703 of title 
        5 for persons in the Government service employed 
        intermittently, while so employed, except that contracts for 
        such employment may be renewed annually;
            ``(11) sue and be sued in any court of record of a State 
        having general jurisdiction or in any United States district 
        court, and jurisdiction is conferred upon such district court 
        to determine such controversies without regard to the amount in 
        controversy; but no attachment, injunction, garnishment, or 
        other similar process, mesne or final, shall be issued against 
        the Secretary or his property; and
            ``(12) establish such regulations and procedures as the 
        Secretary may deem appropriate in carrying out the provisions 
        of this Act.
    ``(b) Deficiency Judgments.--The authority under paragraph (7) of 
subsection (a) to pursue claims shall include the authority to obtain 
deficiency judgments or otherwise in the case of mortgages assigned to 
the Secretary.
    ``(c) Inapplicability of Certain Other Requirements.--Section 3709 
of the Revised Statutes of the United States shall not apply to any 
contract of hazard insurance or to any purchase or contract for 
services or supplies on account of property obtained by the Secretary 
as a result of grants or loans made or evidences of indebtedness 
purchased under this Act if the premium for the insurance or the amount 
of the insurance does not exceed $1,000.
    ``(d) Powers of Conveyance and Execution.--The power to convey and 
to execute, in the name of the Secretary, deeds of conveyance, deeds of 
release, assignments and satisfactions of mortgages, and any other 
written instrument relating to real or personal property or any 
interest therein acquired by the Secretary pursuant to the provisions 
of this Act may be exercised by the Secretary, or by any officer or 
agent appointed by the Secretary for such purpose, without the 
execution of any express delegation of power or power of attorney.
    ``(e) Rule of Construction.--No provision of this section shall be 
construed to except the activities under this Act from the application 
of sections 507(b), 517 and 2679 of title 28.

``SEC. 602. SAVING PROVISIONS.

    ``(a) Effect of Adoption of Act on Other Actions.--No suit, action, 
or other proceeding lawfully commenced by or against the Administrator 
or any other officer of the Area Redevelopment Administration in the 
Administrator's or officer's official capacity or in relation to the 
discharge of the Administrator's official duties under the Area 
Redevelopment Act shall abate by reason of the taking effect of the 
provisions of this Act, but the court may, on motion or supplemental 
petition filed at any time within 12 months after such taking effect, 
showing a necessity for the survival of such suit, action, or other 
proceeding to obtain a settlement of the questions involved, allow the 
same to be maintained by or against the Secretary or the Administrator 
or such other officer of the Department of Commerce as may be 
appropriate.
    ``(b) Treatment of Powers and Duties.--Except as may be otherwise 
expressly provided in this Act, all powers and authorities conferred by 
this Act shall be cumulative and additional to and not in derogation of 
any powers and authorities otherwise existing.
    ``(c) Continued Effectiveness of Prior Regulations, Etc.--All 
rules, regulations, orders, authorizations, delegations, or other 
actions duly issued, made, or taken by or pursuant to applicable law, 
prior to August 26, 1965, by any agency, officer, or office pertaining 
to any functions, powers, and duties under the Area Redevelopment Act 
shall continue in full force and effect after August 26, 1965, until 
modified or rescinded by the Secretary or such other officer of the 
Department of Commerce as, in accordance with applicable law, may be 
appropriate.

``SEC. 603. TRANSFER OF FUNCTIONS OF AREA REDEVELOPMENT ADMINISTRATION.

    ``The functions, powers, duties, and authorities and the assets, 
funds, contracts, loans, liabilities, commitments, authorizations, 
allocations, and records which are vested in or authorized to be 
transferred to the Secretary of the Treasury under section 29(b) of the 
Area Redevelopment Act, and all functions, powers, duties, and 
authorities under section 29(c) of such Act are hereby vested in the 
Secretary.

``SEC. 604. SEPARABILITY.

    ``Notwithstanding any other evidence of the intent of Congress, it 
is hereby declared to be the intent of Congress that if any provision 
of this Act or the application thereof to any persons or circumstances 
shall be adjudged by any court of competent jurisdiction to be invalid, 
such judgment shall not affect, impair, or invalidate the remainder of 
this Act or its application to other persons and circumstances, but 
shall be confined in its operation to the provision of this Act or the 
application thereof to the persons and circumstances directly involved 
in the controversy in which such judgment shall have been rendered.

``SEC. 605. DEFINITION OF STATE.

    ``For purposes of this Act, the terms `State' and `United States' 
include the several States, the District of Columbia, the Commonwealth 
of Puerto Rico, the Virgin Islands, Guam, and American Samoa.

``SEC. 606. ANNUAL REPORT TO CONGRESS.

    ``The Secretary shall make a comprehensive and detailed annual 
report to the Congress of his operations under this Act for each fiscal 
year beginning with the fiscal year ending June 30, 1966. Such report 
shall be printed and shall be transmitted to the Congress not later 
than April 1 of the year following the fiscal year with respect to 
which such report is made.

``SEC. 607. USE OF OTHER FACILITIES.

    ``(a) Delegation of Functions to Other Federal Departments and 
Agencies.--The Secretary may delegate to the heads of other departments 
and agencies of the Federal Government any of the Secretary's 
functions, powers, and duties under this Act as he may deem 
appropriate, and to authorize the redelegation of such functions, 
powers, and duties by the heads of such departments and agencies.
    ``(b) Department and Agency Execution of Delegated Authority.--
Departments and agencies of the Federal Government shall exercise their 
powers, duties, and functions in such manner as will assist in carrying 
out the objectives of this Act.
    ``(c) Transfer of Funds.--
            ``(1) Transfer between departments.--Funds authorized to be 
        appropriated under this Act may be transferred between 
        departments and agencies of the Government, if such funds are 
        used for the purposes for which they are specifically 
        authorized and appropriated.
            ``(2) Transfer for other purposes under this act.--Funds 
        authorized to be appropriated under this Act may be transferred 
        between functions established under different titles of this 
        Act, if such funds are used for the purposes for which they are 
        specifically authorized and appropriated. Such transferred 
        funds shall remain available until expended, and may be 
        transferred to and merged with the appropriations under the 
        heading `salaries and expenses' by the Secretary to the extent 
        that the total amount of such transfer and merger shall not 
        exceed 5 percent of such transferred funds.
    ``(d) Funds Transferred From Other Departments and Agencies.--In 
order to carry out the objectives of this Act, the Secretary may accept 
transfers of funds from other departments and agencies of the Federal 
Government if the funds are used for the purposes for which (and in 
accordance with the terms under which) the funds are specifically 
authorized and appropriated.

``SEC. 608. AUTHORIZATION OF APPROPRIATIONS.

    ``There are hereby authorized to be appropriated such sums as may 
be necessary to carry out those provisions of the Act for which 
specific authority for appropriations is not otherwise provided in this 
Act except that there are hereby authorized to be appropriated to carry 
out those provisions of the Act for which specific authority for 
appropriations is not otherwise provided in this Act not to exceed 
$36,000,000 for the fiscal year ending September 30, 1996. 
Appropriations authorized under this Act shall remain available until 
expended unless otherwise provided by appropriations Acts. Amounts 
authorized to be appropriated under this section may be used to support 
a personnel level of up to 375 full-time equivalents and to `buy-out' 
existing employees without the loss of the full-time equivalent 
positions filled by such employees. Funds appropriated to carry out the 
purposes of this Act are authorized to be expended for the payment of 
all obligations and expenditures arising from actions to protect the 
Government's interest in grant property.

``SEC. 609. PENALTIES.

    ``(a) False Statements; Security Overvaluation.--Whoever makes any 
statement knowing it to be false, or whoever willfully overvalues any 
security, for the purpose of obtaining for such person or for any 
applicant any financial assistance under section 101, 201, 202, or 411 
or any extension of any such assistance by renewal, deferment, or 
action, or otherwise, or the acceptance, release, or substitution of 
security for such assistance, or for the purpose of influencing in any 
way the action of the Secretary, or for the purpose of obtaining money, 
property, or anything of value, under this Act, shall be punished by a 
fine under title 18, United States Code, imprisoned for not more than 5 
years, or both.
    ``(b) Embezzlement and Fraud-Related Crimes.--Whoever, being 
connected in any capacity with the Secretary, in the administration of 
this Act--
            ``(1) embezzles, abstracts, purloins, or willfully 
        misapplies any moneys, funds, securities, or other things of 
        value, whether belonging to such person or pledged or otherwise 
        entrusted to such person;
            ``(2) with intent to defraud the Secretary or any other 
        body politic or corporate, or any individual, or to deceive any 
        officer, auditor, or examiner, makes any false entry in any 
        book, report, or statement of or to the Secretary, or without 
        being duly authorized draws any order or issues, puts forth, or 
        assigns any note, debenture, bond, or other obligation, or 
        draft, bill of exchange, mortgage, judgment, or decree thereof;
            ``(3) with intent to defraud participates or shares in or 
        receives directly or indirectly any money, profit, property, or 
        benefit through any transaction, loan, grant, commission, 
        contract, or any other act of the Secretary; or
            ``(4) gives any unauthorized information concerning any 
        future action or plan of the Secretary which might affect the 
        value of securities, or having such knowledge invests or 
        speculates, directly or indirectly, in the securities or 
        property of any company or corporation receiving loans, grants, 
        or other assistance from the Secretary,
shall be fined under title 18, United States Code, imprisoned for not 
more than 5 years, or both.

``SEC. 610. EMPLOYMENT OF EXPEDITERS AND ADMINISTRATIVE EMPLOYEES.

    ``No financial assistance shall be extended by the Secretary under 
section 101, 201, 202, or 411 to any business enterprise unless the 
owners, partners, or officers of such business enterprise--
            ``(1) certify to the Secretary the names of any attorneys, 
        agents, and other persons engaged by or on behalf of such 
        business enterprise for the purpose of expediting applications 
        made to the Secretary for assistance of any sort, under this 
        Act, and the fees paid or to be paid to any such person; and
            ``(2) execute an agreement binding such business 
        enterprise, for a period of 2 years after such assistance is 
        rendered by the Secretary to such business enterprise, to 
        refrain from employing, tendering any office or employment to, 
        or retaining for professional services, any person who, on the 
        date such assistance or any part thereof was rendered, or 
        within the 1-year period ending on such date, shall have served 
        as an officer, attorney, agent, or employee, occupying a 
        position or engaging in activities which the Secretary 
        determines involves discretion with respect to the granting of 
        assistance under this Act.

``SEC. 611. LABOR STANDARDS; RATE OF WAGES; ASSURANCE OF MAINTENANCE OF 
              STANDARDS; ENFORCEMENT.

    ``All laborers and mechanics employed by contractors or 
subcontractors on projects assisted by the Secretary under this Act 
shall be paid wages at rates not less than those prevailing on similar 
construction in the locality as determined by the Secretary of Labor in 
accordance with the Act of March 3, 1931, known as the Davis-Bacon Act. 
The Secretary shall not extend any financial assistance under section 
101, 201, 202, 411, or 703 for such a project without first obtaining 
adequate assurance that these labor standards will be maintained upon 
the construction work. The Secretary of Labor shall have, with respect 
to the labor standards specified in this provision, the authority and 
functions set forth in Reorganization Plan Numbered 14 of 1950 and 
section 2 of the Act of June 13, 1934 (Chapter 482; 48 Stat. 948).

``SEC. 612. MAINTENANCE OF RECORDS OF APPROVED APPLICATIONS FOR 
              FINANCIAL ASSISTANCE; PUBLIC INSPECTION.

    ``(a) Maintenance of Record Required.--The Secretary shall maintain 
as a permanent part of the records of the Department of Commerce a list 
of applications approved for financial assistance under section 3131, 
3141, 3142, or 3171 of this title, which shall be kept available for 
public inspection during the regular business hours of the Department 
of Commerce.
    ``(b) Posting to List.--The following information shall be posted 
in such list as soon as each application is approved:
            ``(1) The name of the applicant and, in the case of 
        corporate applications, the names of the officers and directors 
        of the corporation.
            ``(2) The amount and duration of the loan or grant for 
        which application is made.
            ``(3) The purposes for which the proceeds of the loan or 
        grant are to be used.
            ``(4) A general description of the security offered in the 
        case of a loan.

``SEC. 613. RECORDS AND AUDIT.

    ``(a) Recordkeeping and Disclosure Requirements.--Each recipient of 
assistance under this Act shall keep such records as the Secretary 
shall prescribe, including records which fully disclose the amount and 
the disposition by such recipient of the proceeds of such assistance, 
the total cost of the project or undertaking in connection with which 
such assistance is given or used, and the amount and nature of that 
portion of the cost of the project or undertaking supplied by other 
sources, and such other records as will facilitate an effective audit.
    ``(b) Access to Books for Examination and Audit.--The Secretary and 
the Comptroller General of the United States, or any of their duly 
authorized representatives, shall have access for the purpose of audit 
and examination to any books, documents, papers, and records of the 
recipient that are pertinent to assistance received under this Act.

``SEC. 614. PROHIBITION AGAINST A STATUTORY CONSTRUCTION WHICH MIGHT 
              CAUSE DIMINUTION IN OTHER FEDERAL ASSISTANCE.

    ``All financial and technical assistance authorized under this Act 
shall be in addition to any Federal assistance previously authorized, 
and no provision hereof shall be construed as authorizing or permitting 
any reduction or diminution in the proportional amount of Federal 
assistance to which any State or any other entity eligible under this 
Act would otherwise be entitled under the provisions of any other Act.

``SEC. 615. ACCEPTANCE OF APPLICANTS' CERTIFICATIONS.

    ``The Secretary may accept, when deemed appropriate, the 
applicants' certifications to meet the requirements of this Act.

``SEC. 616. SUPERVISION OF REGIONAL COUNSELS.

    ``The Secretary shall take such actions as may be necessary to 
ensure that individuals serving as Regional Counsels of the Economic 
Development Administration report directly to their respective Regional 
Director.

  ``TITLE VII--SPECIAL ECONOMIC DEVELOPMENT AND ADJUSTMENT ASSISTANCE

             ``Subtitle A--Grants and Adjustment Assistance

``SEC. 701. STATEMENT OF PURPOSE.

    ``The purpose of this title is to provide special economic 
development and adjustment assistance programs to help State and local 
areas meet special needs arising from actual or threatened severe 
unemployment arising from economic dislocation, including unemployment 
arising from actions of the Federal Government and from compliance with 
environmental requirements which remove economic activities from a 
locality, and economic adjustment problems resulting from severe 
changes in economic conditions (including long-term economic 
deterioration), and to encourage cooperative intergovernmental action 
to prevent or solve economic adjustment problems. Nothing in this title 
is intended to replace the efforts of the economic adjustment program 
of the Department of Defense.

``SEC. 702. ELIGIBLE RECIPIENT DEFINED.

    ``As used in this title, the term `eligible recipient' means an 
economic development district (as defined in section 411), an Indian 
tribe, a State, a city or other political subdivision of a State, or a 
consortium of such political subdivisions, or a public or private 
nonprofit organization or association.

``SEC. 703. GRANTS BY SECRETARY.

    ``(a) In General.--
            ``(1) Direct grants.--The Secretary may make grants 
        directly to any eligible recipient in an area which--
                    ``(A) the Secretary has determined has experienced, 
                or may reasonably be foreseen to be about to 
                experience, a special need to meet an expected rise in 
                unemployment, or other economic adjustment problems 
                (including those caused by any action or decision of 
                the Federal Government); or
                    ``(B) the Secretary determines has demonstrated 
                long-term economic deterioration, to carry out or 
                develop a plan which--
                            ``(i) meets the requirements of subsection 
                        (b); and
                            ``(ii) is approved by the Secretary to use 
                        such grants for any of the following:
                                    ``(I) Public facilities.
                                    ``(II Public services.
                                    ``(III) Business development.
                                    ``(IV) Industrial retention.
                                    ``(V) Planning.
                                    ``(VI) Research.
                                    ``(VII Technical assistance.
                                    ``(VIII) Administrative expenses.
                                    ``(IX) Training.
                                    ``(X) Relocation of individuals and 
                                businesses.
                                    ``(XI) Assistance to business 
                                through trade adjustment assistance 
                                centers.
                                    ``(XII) Other assistance which 
                                demonstrably furthers the economic 
                                development and adjustment objectives 
                                of this title.
            ``(2) Direct expenditure or redistribution by recipient.--
        Grants under paragraph (1) may be used in direct expenditures 
        by the eligible recipient or through redistribution by it to 
        public and private entities in grants, loans, loan guarantees, 
        payments to reduce interest on loan guarantees, or other 
        appropriate assistance, but no grant shall be made by an 
        eligible recipient to a private profitmaking entity.
            ``(3) Research and technical assistance.--The Secretary may 
        conduct research or provide technical assistance for purposes 
        of this title directly through members of the Secretary's staff 
        or through the payment of funds to other departments or 
        agencies of the Federal Government.
    ``(b) Criteria for Approval of Plan.--No plan shall be approved by 
the Secretary under this section unless the plan--
            ``(1) identifies each economic development and adjustment 
        need of the area for which assistance is sought under this 
        title;
            ``(2) describes each activity planned to meet each such 
        need;
            ``(3) explains the details of the method of carrying out 
        each such planned activity;
            ``(4) contains assurances satisfactory to the Secretary 
        that the proceeds from the repayment of loans made by the 
        eligible recipient with funds granted under this title will be 
        used for economic development or adjustment; and
            ``(5) be in such form and contain such additional 
        information as the Secretary shall prescribe.
    ``(c) Coordination of Activities With Other Federal Programs, 
Regional Commissions, States, Etc.--The Secretary to the extent 
practicable shall coordinate the activities relating to the 
requirements for plans and making grants and loans under this title 
with other Federal programs, regional commissions, States, economic 
development districts and other appropriate planning and development 
organizations.
    ``(d) Prioritizing Needs and Selection Criteria for Assistance.--
            ``(1) In general.--The Secretary shall prescribe 
        regulations and procedures to carry out this title which 
        establish a method to prioritize applications and award funding 
        in a manner which takes into consideration the relative needs 
        of eligible areas and the capacity of the applicant 
        organizations.
            ``(2) Factors to be considered.--In prescribing such 
        regulations and procedures the Secretary shall consider among 
        other relevant factors--
                    ``(A) the severity of the current and anticipated 
                rates of unemployment in the eligible areas and the 
                current and anticipated duration of such unemployment;
                    ``(B) the income levels of families and the extent 
                of underemployment in eligible areas;
                    ``(C) the economic development records of the 
                applicant organization, including the organization's 
                prior experience and its capacity to leverage or 
                attract funding from the private sector;
                    ``(D) the ability of the applicant organization to 
                raise funds necessary to meet any matching requirements 
                applicable to the assistance provided under this title;
                    ``(E) how the applicant organization will 
                coordinate or create partnerships with other 
                organizations in the community and the extent to which 
                the applicant will increase the resources for economic 
                development activities through such coordination or by 
                forging partnerships with private financial 
                institutions; and
                    ``(F) the applicant organization's record in 
                targeting assistance to economically distressed 
                communities.
    ``(e) Base Closings and Realignments.--
            ``(1) Location of projects.--In any case in which the 
        Secretary determines a need for assistance under subsection (a) 
        due to the closure or realignment of a military installation, 
        the Secretary may make such assistance available for projects 
        to be carried out on the military installation and for projects 
        to be carried out in communities adversely affected by the 
        closure or realignment.
            ``(2) Interest in property.--Notwithstanding any other 
        provision of law, the Secretary may provide to an eligible 
        recipient any assistance available under this Act for a project 
        to be carried out on a military installation that is closed or 
        scheduled for closure or realignment without requiring that the 
        eligible recipient have title to the property or a leasehold 
        interest in the property for any specified term.

``SEC. 704. ANNUAL REPORTS BY RECIPIENT AND SECRETARY.

    ``(a) Recipient's Report.--Each eligible recipient which receives 
assistance under this title shall annually during the period such 
assistance continues make a full and complete report to the Secretary, 
in such manner as the Secretary shall prescribe, and such report shall 
contain an evaluation of the effectiveness of the economic assistance 
provided under this title in meeting the need it was designed to 
alleviate and the purposes of this title.
    ``(b) Secretary's Report.--The Secretary shall include in the 
annual report pursuant to section 3217 of this title a consolidated 
report with his recommendations, if any, on the assistance authorized 
under this title, in a form which he deems appropriate.

``SEC. 705. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There is authorized to be appropriated to carry 
out this title $175,000,000 for fiscal year 1995 and $175,000,000 for 
fiscal year 1996. Such sums shall remain available until expended.
    ``(b) Set-Aside for Defense Conversion Activities.--Of amounts 
appropriated pursuant to subsection (a) for fiscal year 1995, not less 
than $100,000,000 shall be available for purposes of assisting eligible 
recipients in activities related to defense conversion.
    ``(c) Additional Amounts.--In addition to the appropriations 
authorized by subsection (a), there is authorized to be appropriated to 
carry out this title such sums as may be necessary to provide 
assistance for defense conversion activities and to provide assistance 
in the case of a natural disaster. Such sums shall remain available 
until expended.

              ``Subtitle B--Economic Development Financing

``SEC. 711. GUARANTEED LOAN PROGRAM.

    ``(a) In General.--To the extent the Secretary deems it appropriate 
to carry out the purposes of this title, the Secretary may guarantee 
loans made to private borrowers by private lending institutions, 
community development financial institutions, and other lenders as the 
Secretary considers appropriate.
    ``(b) Eligible Activities.--Activities for which loans may be 
guaranteed under this title include the development of land and 
facilities (including machinery and equipment) for industrial or 
commercial usage (such as the construction of new buildings and the 
rehabilitation of abandoned or unoccupied buildings, and alterations, 
conversion, or enlargement of existing buildings), or for the provision 
of working capital.
    ``(c) Terms and Conditions.--
            ``(1) In general.--The Secretary may make such guarantees 
        upon application of the lenders and upon such terms and 
        conditions as the Secretary may prescribe, except that no such 
        guarantee shall at any time exceed 90 percent of the amount of 
        the outstanding unpaid balance of such loans.
            ``(2) Presumption of validity.--Guarantees under paragraph 
        (1) shall be conclusive evidence that the guarantee has been 
        properly obtained, that the underlying loan qualifies for such 
        guarantee, and that, but for fraud or material 
        misrepresentation by the holder, such guarantee will be 
        presumed to be valid, legal, and enforceable.
            ``(3) Full faith and credit of u.s.--Guarantees under 
        paragraph (1) shall have the full faith and credit of the 
        United States Government.
            ``(4) Lender responsibilities.--No guarantee may be 
        provided unless the lender is responsible and makes adequate 
        provision for servicing the loan on reasonable terms and for 
        protecting the financial interest of the United States.
            ``(5) Prohibition on certain loan guarantees.--No loan may 
        be guaranteed if the proceeds of such loan are excluded from 
        gross income for the purposes of Chapter 1 of the Internal 
        Revenue Code of 1986 or if the guarantee provides sufficient 
        collateral or security, as determined by the Secretary, for 
        other obligations the income from which is so excluded.
    ``(d) Preferred Lender Preference.--To the extent feasible, the 
Secretary shall conduct the guarantee program established under this 
subsection on a preferred lender basis and authorize lenders, in 
accordance with agreements entered into between the Secretary and such 
lenders, to take such actions on the Secretary's behalf as the 
Secretary deems appropriate, including, but not limited to, the 
determination of eligibility and credit worthiness and loan monitoring, 
collection and liquidation.

``SEC. 712. PILOT EQUITY FINANCE PROGRAM.

    ``(a) In General.--In order to study the feasibility and 
desirability of a program of equity financing, the Secretary shall 
establish a 5-year pilot program under which the Secretary may, either 
directly or through grants made to eligible recipients (as defined in 
section 702), purchase or commit to purchase nonvoting equity 
instruments, with or without equity warrants or commit to guarantee the 
payment of up to 50 percent of the redemption price of, and dividends 
on, such equity instruments of private United States businesses or 
nonprofit organizations and associations for the purpose of providing 
capital for any project which is consistent with the provisions of this 
title.
    ``(b) Establishment of Fund.--For purposes of conducting the pilot 
program provided under subsection (a), the Secretary shall establish an 
Equity Investment Revolving Fund to carry out the purposes of this 
section.
    ``(c) Disposal of Equity Instruments.--The Secretary shall endeavor 
to dispose of any equity instruments purchased or guaranteed under this 
section within the 10-year period beginning on the date of the 
acquisition of such interest.
    ``(d) Use of Payments.--
            ``(1) Use of payments to the secretary.--Amounts received 
        by the Secretary from the payment of dividends and the 
        redemption of equity instruments shall be deposited in the 
        Equity Investment Revolving Fund and shall be available to make 
        or guarantee additional equity investments consistent with this 
        section.
            ``(2) Use of payments to eligible recipient 
        intermediaries.--Of the amounts received by eligible recipient 
        intermediaries from the payment of dividends and the redemption 
        of equity instruments--
                    ``(A) up to 50 percent may be retained by such 
                organizations to make or guarantee additional equity 
                investments consistent with this section; and
                    ``(B) no less than 50 percent shall be returned to 
                the Secretary to be deposited into the Fund established 
                under subsection (b) to make or guarantee additional 
                equity investments consistent with this section.
    ``(e) Investment of Excess Funds.--If the Secretary determines that 
the amount of money in the Fund exceeds the current requirements of the 
Fund, the Secretary may direct the Secretary of the Treasury to invest 
such amounts in obligations of the United States, in obligations 
guaranteed by the United States Government, or in such other 
obligations or securities of the United States as the Secretary of the 
Treasury deems appropriate.
    ``(f) Authorization of Appropriations.--In addition to the funds 
authorized to be appropriated under section 705, there are authorized 
to be appropriated $10,000,000 for fiscal year 1996, to carry out this 
section. Such sums shall remain available until expended.

``SEC. 713. TREATMENT OF REVOLVING LOAN FUNDS.

    ``(a) In General.--Amounts from grants under this title which are 
used by an eligible recipient to establish a revolving loan fund shall 
not be treated, except as provided by subsection (b), as amounts 
derived from Federal funds for the purposes of any Federal law after 
such amounts are loaned from the fund to a borrower and repaid to the 
fund.
    ``(b) Exception.--Amounts described in subsection (a) which are 
loaned from a revolving loan fund to a borrower and repaid to the 
fund--
            ``(1) may only be used for projects which are consistent 
        with the purposes of this title; and
            ``(2) shall be subject to the financial management, 
        accounting, reporting, and auditing standards which were 
        originally applicable to such amounts.
    ``(c) Regulations.--Not later than 30 days after the enactment of 
this section, the Secretary shall issue regulations to carry out 
subsection (a).
    ``(d) Public Review and Comment.--Before issuing any final 
guidelines or administrative manuals governing the operation of 
revolving loan funds established using amounts from grants under this 
title, the Secretary shall provide reasonable opportunity for public 
review of and comment on such guidelines and administrative manuals.

``SEC. 714. SALE OF FINANCIAL INSTRUMENTS IN REVOLVING LOAN FUNDS.

    ``Any loan, loan guarantee, equity, or other financial instrument 
in the portfolio of a Revolving Loan Fund may be sold, at the 
discretion of the administrator of the Fund, to a third party provided 
that the proceeds of the sale--
            ``(1) shall be deposited in the Fund and only used for 
        projects which are consistent with the purposes of this title, 
        and
            ``(2) shall be subject to the financial management, 
        accounting, reporting, and auditing standards which were 
        originally applicable to the financial instrument.

``SEC. 715. ECONOMIC DEVELOPMENT CHALLENGE GRANTS DEMONSTRATION 
              PROJECT.

    ``(a) In General.--In order to study the feasibility and 
desirability of using challenge grants to generate new pools of 
investment capital in areas suffering from long-term economic 
deterioration, the Secretary shall establish a multiyear demonstration 
project under which the Secretary shall provide grants to selected 
recipients, to be matched by the recipients 1 dollar for every 2 
Federal dollars, for the purpose of establishing substantially 
leveraged financing for business development and other innovative 
economic development efforts.
    ``(b) Federal and Community Contributions.--
            ``(1) In general.--The Secretary shall grant 2 dollars for 
        every 1 dollar raised by each selected recipient, up to 
        $10,000,000 per year per selected recipient.
            ``(2) Use of other federal funds in conjunction with 
        challenge grant.--Funds from other Federal programs may be used 
        in conjunction or merged with the challenge grant and matching 
        funds to form a larger investment fund.
    ``(c) Establishment and Use of Funds.--
            ``(1) Establishment.--For purposes of this Act, an 
        investment fund established by a selected recipient consists 
        of--
                    ``(A) the economic development challenge grant 
                received by the selected recipient;
                    ``(B) the matching funds required under subsection 
                (b); and
                    ``(C) any such other funds that may be derived from 
                other sources, including other Federal funds.
            ``(2) Use.--An investment fund shall be used by the 
        selected recipients for the purposes of generating long-term 
        sustainable economic development and job growth in areas 
        identified by the selected recipients, pursuant to the 
        requirements and limitations of eligibility and performance in 
        subsections (d), (e), (f), (g) and (h).
    ``(d) Eligible Recipients.--The Secretary shall make grants to any 
eligible recipients for use in an area which must meet 1 or more of the 
following criteria:
            ``(1) The area has a per capita income of 80 percent or 
        less of the national average.
            ``(2) The area has an unemployment rate 1 percent above the 
        national average percentage for the more recent 24-month period 
        for which statistics are available.
            ``(3) The area has been determined by the Secretary to have 
        at least 1 of the following conditions:
                    ``(A) A large concentration of low-income persons 
                (as defined in section 401(e)).
                    ``(B) Areas having substantial outmigration.
                    ``(C) Substantial underemployment or unemployment.
An eligible recipient may include any local government or group of 
local governments, economic development district, Indian tribe, public 
or private nonprofit organization or association, community-based 
organization, business or worker organization, or any consortium of 
such entities, that is able to demonstrate to the satisfaction of the 
Secretary that they can carry out the objectives of this program 
pursuant to the criteria and requirements established in this section.
    ``(e) Selection of Demonstration Projects.--
            ``(1) In general.--The Secretary shall make grants to 
        selected recipients from 3 to 5 areas suffering from long-term 
        economic distress.
            ``(2) Distribution.--At least 1 selected recipient shall be 
        from a rural area, 1 from a declining industrial area, and 1 
        from an area that is a combination of rural, small 
        metropolitan, and suburban communities.
            ``(3) Industrial retention strategy requirement.--Of the 3 
        recipients described in paragraph (2), at least 1 of the 
        projects selected shall include an industrial retention 
        strategy.
    ``(f) Grant Selection Process.--
            ``(1) National competition.--The Secretary shall select 
        recipients of the challenge grants through a nationally 
        competitive process.
            ``(2) Eligibility requirement.--Each selected recipient 
        must submit a comprehensive strategy for generating sustained, 
        long-term economic growth and for both preserving and creating 
        high-quality jobs.
            ``(3) Preference for certain projects.--The Secretary shall 
        give preference to eligible recipients which--
                    ``(A) utilize Federal the grant plus matching funds 
                to further leverage private and public capital to 
                create an even larger economic development investment 
                fund;
                    ``(B) represent consortia or partnerships comprised 
                of at least 2 or more of the groups identified in 
                subsection (d); or
                    ``(C) intend to use their investment funds to 
                finance or leverage financing for new business 
                development and startups, industrial services, 
                industrial modernization of local-based firms or 
                industrial retention (including employee stock 
                ownership plans and worker or management buyouts), or 
                other economic development strategies that illustrate 
                `best practices' in economic development.
            ``(4) Broad-based participation to be encouraged.--The 
        Secretary shall strongly encourage broad-based participation of 
        public and private entities within an area in the development 
        and implementation of the challenge grant proposals submitted 
        by eligible recipients.
    ``(g) Limitations.--The investment funds established by the 
selected recipients shall--
            ``(1) not be used to permit units of State and local 
        government to offer tax inducements to attract businesses to 
        locate in the area; and
            ``(2) be subject to the same conditions described in 
        section 202(b)(1).
No area may receive an economic development challenge grant if it has 
been designated an empowerment or enterprise community under section 
13301 of the Omnibus Budget Reconciliation Act of 1993.
    ``(h) Performance Evaluations; Report to Congress.--
            ``(1) Evaluation of effectiveness.--The Secretary shall 
        conduct performance evaluations of the demonstration challenge 
        grant project to assess the effectiveness of this kind of 
        program in generating sustained economic growth and job 
        creation in areas of the Nation experiencing long-term economic 
        distress.
            ``(2) Report.--Based on the evaluations conducted pursuant 
        to paragraph (1), the Secretary shall submit an annual report 
        to Congress with recommendations for expansion, modification or 
        termination of the program.
    ``(i) Authorization of Appropriations.--In addition to the funds 
authorized to be appropriated under section 705, there is authorized to 
be appropriated $30,000,000 for fiscal year 1996 to carry out this 
section. Such sums shall remain available until expended.

             ``Subtitle C--Business Development Assistance

``SEC. 721. FINDINGS, PURPOSES, AND DEFINITIONS.

    ``(a) Findings.--The Congress hereby finds the following:
            ``(1) Through its support and funding of research and 
        development in this Nation's Federal agencies, laboratories, 
        and educational institutions, the Federal Government has 
        fostered the creation of thousands of patents, licenses, 
        technologies, and processes owned, or held in whole or part, by 
        the Federal Government.
            ``(2) If commercialized, these patents, licenses, 
        technologies, and processes owned, or held in whole or part, by 
        the Federal Government hold the potential to be a significant 
        tool to foster economic development and to create significant 
        numbers of new jobs at good wages for American workers.
            ``(3) The Federal Government has not been sufficiently 
        effective in encouraging the commercialization of these 
        patents, licenses, technologies, and processes owned, or held 
        in whole or part, by the Federal Government.
            ``(4) The Federal Government does not have an effective 
        mechanism to encourage the commercialization of these patents, 
        licenses, technologies, and processes by businesses located in 
        parts of the Nation in need of economic development.
            ``(5) Throughout the Federal Government, there is no single 
        inventory or source of information on patents, licenses, 
        technologies, and processes owned, or held in whole or part, by 
        the Federal Government.
            ``(6) Information on patents, licenses, technologies, and 
        processes owned, or held in whole or part, by the Federal 
        Government is not standardized in form or content, is 
        separately maintained by numerous Federal agencies and 
        departments, and is not easily accessible by the public.
            ``(7) Businesses and entrepreneurs in areas in need of 
        economic development are largely unaware of the existence of 
        these patents, licenses, technologies, and processes, and 
        largely unaware of the possibilities for obtaining the rights 
        to these patents, licenses, technologies, and processes for the 
        purpose of commercialization.
            ``(8) It is in the economic interest of the United States 
        to facilitate the private sector commercialization of patents, 
        licenses, technologies, and processes by United States 
        businesses located in areas in need of economic development.
            ``(9) Greater effectiveness will be achieved through the 
        utilization of the private sector corporate structure and 
        profit incentives in facilitating the commercialization of 
        patents, licenses, technologies, and processes than can 
        reasonably be expected by the Federal Government performing 
        this function.
    ``(b) Purposes.--The purposes of this subtitle are as follows:
            ``(1) To provide assistance to private-sector United States 
        businesses, located in areas in need of economic development, 
        to commercialize patents, licenses, technologies, and processes 
        owned, or held in whole or part, by the Federal Government.
            ``(2) To create new employment opportunities by 
        facilitating the commercialization of patents, licenses, 
        technologies, and processes by United States businesses and 
        entrepreneurs in areas in need of economic development.
            ``(3) To develop a single, comprehensive data base of 
        information on patents, licenses, technologies, and processes 
        owned, or held in whole or part, by the Federal Government, 
        which is standardized and easily accessible.
            ``(4) To heighten the awareness of United States businesses 
        and entrepreneurs of the availability for commercialization of 
        patents, licenses, technologies, and processes owned, or held 
        in whole or part, by the Federal Government.
    ``(c) Definitions.--For purposes of this subtitle, the following 
definitions shall apply:
            ``(1) Secretary.--The term `Secretary' means the Secretary 
        of Commerce.
            ``(2) Corporation.--The term `Corporation' means the 
        Business Development and Technology Commercialization 
        Corporation established under this subtitle.
            ``(3) Board.--The term `Board' means the Board of Directors 
        of the Business Development and Technology Commercialization 
        Corporation.
            ``(4) Qualified concern.--The term `qualified concern' 
        means a United States-based consortium, a private United States 
        business, or an educational institution participating in a 
        joint project with 1 or more private United States businesses, 
        for the development and commercialization of patents, licenses, 
        processes, and technologies--
                    ``(A) owned or held in whole or part by Federal 
                departments, agencies, or government-controlled 
                corporations;
                    ``(B) developed in Federal laboratories;
                    ``(C) arising in the course of federally funded 
                research at educational institutions, other units of 
                government, or with private concerns; or
                    ``(D) which are made available to the Federal 
                Government by private concerns.

``SEC. 722. CONSOLIDATION OF INFORMATION ON TECHNOLOGIES.

    ``(a) Establishment of Data.--The Secretary shall establish and 
maintain an integrated, comprehensive data base describing all patents, 
licenses, technologies, and processes owned, or held in whole or part, 
by the Federal Government, or which originated in the course of 
federally funded research in which the Federal Government has an 
interest.
    ``(b) Standardization and Accessibility of Information.--The 
Secretary shall take such steps as are necessary to ensure that the 
information contained in the data base established under subsection (a) 
is in a standardized form, is accessible and usable in a manner as 
simple and easy to use as possible, recognizing the needs of small- and 
medium-sized businesses.
    ``(c) Responsibilities.--In carrying out this section, the 
Secretary shall--
            ``(1) consult with and, to the extent practicable, utilize 
        the capabilities of other executive agencies, as appropriate, 
        to ensure the efficient and effective implementation of this 
        section; and
            ``(2) explore, with other executive agencies, ways to avoid 
        duplication of effort by consolidating the administration of 
        the program established by this section with any other similar 
        Federal program, and as part of such consolidation may delegate 
        administrative functions, as necessary and appropriate, to 
        another executive agency.
    ``(d) Other Federal Agencies.--Other executive agencies shall 
provide such information, and in such form, as determined by the 
Secretary and shall cooperate with the Secretary in carrying out this 
section.
    ``(e) Access to the Data Base.--
            ``(1) Access to the data base by the corporation.--Except 
        as provided in paragraph (3), the Secretary shall provide 
        unlimited access to the data base established under this 
        section to the Business Development and Technology 
        Commercialization Corporation established under this part, 
        without fee, to assist the Corporation in meeting its 
        responsibilities under this Part.
            ``(2) Access to the data base by the public.--Except as 
        provided in paragraph (3), the Secretary shall, by regulation, 
        develop and implement procedures providing for access to the 
        data base established under this section to members of the 
        general public.
            ``(3) Restrictions.--If, in consultation with the heads of 
        other executive agencies, the Secretary determines that access 
        by the Corporation or any other person to information contained 
        in the data base established under this section would--
                    ``(A) threaten national security;
                    ``(B) violate the proprietary rights of any private 
                interest; or
                    ``(C) be otherwise inappropriate,
        the Secretary shall take such steps as the Secretary may 
        determine to be appropriate to limit access to the information 
        in the data base described in subparagraph (A), (B), or (C) to 
        the Corporation or any other person.
    ``(f) Review of Current Federal Technology Transfer Efforts.--
            ``(1) In general.--The Secretary shall conduct a review of 
        all technology transfer and commercialization activities within 
        all Federal departments, agencies, and laboratories, or which 
        are otherwise supported by federal funds. This review shall 
        identify those activities which may overlap or duplicate the 
        technology transfer and commercialization activities provided 
        for under this subtitle.
            ``(2) Reports.--Before the end of the 1-year period 
        beginning on the date of the enactment of the Economic 
        Development and Financing Act of 1995, the Secretary shall 
        issue a report to the Congress describing in detail--
                    ``(A) the findings of the review directed under 
                paragraph (1),
                    ``(B) the funding levels of each existing federal 
                technology transfer and commercialization activities, 
                and
                    ``(C) recommendations for the modification or 
                elimination of any existing federal technology transfer 
                and commercialization activities which he finds to be 
                duplicative of the activities provided for under this 
                subtitle.

``SEC. 723. BUSINESS DEVELOPMENT AND TECHNOLOGY COMMERCIALIZATION 
              CORPORATION.

    ``(a) Establishment of Corporation.--
            ``(1) In general.--There shall be established a Business 
        Development and Technology Commercialization Corporation 
        (hereafter in this section referred to as the `Corporation').
            ``(2) Purpose.--The Corporation shall be operated for the 
        purpose of fostering economic growth, assisting in the creation 
        of new employment opportunities, and strengthening the 
        industrial base of the United States by providing credit for 
        businesses and by facilitating the transfer and 
        commercialization of patents, licenses, processes, and 
        technologies--
                    ``(A) owned or held in whole or part by Federal 
                departments, agencies, or government controlled 
                corporations;
                    ``(B) developed in Federal laboratories;
                    ``(C) arising in the course of federally funded 
                research at educational institutions, other units of 
                government, or with private concerns; and
                    ``(D) which are made available by private concerns.
            ``(3) Corporation not an establishment of the united 
        states.--The Corporation shall not be an agency or 
        establishment of the United States.
    ``(b) Process of Organization.--
            ``(1) Incorporation.--
                    ``(A) In general.--The Secretary of Commerce, the 
                Secretary of Labor, and the Administrator of the Small 
                Business Administration shall serve as the 
                incorporators of the Business Development and 
                Technology Commercialization Corporation and as the 
                initial members of the Board of Directors established 
                under subsection (c)(1) until their successors are 
                elected and qualified.
                    ``(B) Necessary action authorized.--The 
                incorporators referred to in subparagraph (A) shall 
                take such other actions as may be necessary to 
                establish the Corporation, including the filing of 
                articles of incorporation.
            ``(2) Ownership of the corporation.--
                    ``(A) Retention of federal government interest.--
                The Federal Government shall retain a 60 percent 
                nonvoting equity ownership of the Corporation, except 
                as otherwise provided under this subtitle.
                    ``(B) Solicitation of proposals for equity 
                investment and management.--Before the end of the 6-
                month period beginning on the date of the enactment of 
                the Economic Development and Financing Act of 1995, the 
                Secretary of Commerce shall solicit proposals for the 
                sale of the remaining 40 percent of the equity 
                ownership in the Corporation to a United States private 
                entity or consortium which will assume the management 
                and operation of the Corporation.
                    ``(C) Deadline for transfer.--The sale of the 
                equity ownership interests pursuant to paragraph (3) 
                shall be completed before the end of the 6-month period 
                beginning on the date of the enactment of the Economic 
                Development and Financing Act of 1995.
                    ``(D) Subsequent stock offering.--Any subsequent 
                stock offering in the Corporation will be managed in 
                such a manner that 60 percent of such offering is 
                conveyed as nonvoting equity ownership, without cost, 
                to the Federal Government.
            ``(3) Selection criteria and procedures for the sale of 40 
        percent of the equity in the corporation.--
                    ``(A) In general.--The President, in consultation 
                with the Secretary of Commerce, shall make the final 
                selection of a proposal for the sale of 40 percent of 
                the equity in the Corporation, as provided under this 
                subsection.
                    ``(B) Criteria for selecting a proposal to 
                recommend to the president.--In selecting a proposal to 
                recommend to the President for the sale of 40 percent 
                of the equity in the Corporation, as described in 
                subparagraph (A), the Secretary of Commerce shall take 
                into consideration the following factors--
                            ``(i) the quality of the operational plan;
                            ``(ii) the soundness of the financing of 
                        the organization and of the operational plan;
                            ``(iii) the qualifications of, and the 
                        diversity of talents and skills represented by, 
                        the submitters of the proposal, including the 
                        extent to which a combination of organizations 
                        is submitting a joint proposal;
                            ``(iv) whether a State government, or unit 
                        of a State government, is participating 
                        financially with the organization submitting a 
                        proposal;
                            ``(v) the intentions of the submitters of 
                        the proposal to locate the headquarters of the 
                        Corporation in an area which is not located in 
                        the 50 largest Metropolitan Statistical Areas, 
                        based on the 1990 Census; and
                            ``(vi) such other factors as the 
                        incorporators determine to be appropriate in 
                        meeting the objectives of this Act.
                    ``(C) Procedures for selecting a proposal to 
                recommend to the president.--In selecting a proposal to 
                recommend to the President for the sale of 40 percent 
                of the equity in the Corporation, as described in 
                subparagraph (A), the Secretary of Commerce shall 
                ensure that in the selection process--
                            ``(i) not less than 3 proposals are 
                        identified as proposals to receive further 
                        consideration, as provided in clauses (ii) and 
                        (iii), except that, if fewer than 3 proposals 
                        are received, each of them shall receive 
                        further consideration;
                            ``(ii) a review procedure is implemented 
                        under which the sponsors of the proposals 
                        identified in clause (i) are provided an 
                        opportunity to make personal presentations of 
                        their proposals to the Secretary or the 
                        Secretary's designee; and
                            ``(iii) individual negotiations for the 
                        revision of proposals identified in clause (i) 
                        may be entered into.
            ``(4) Conversion of nonvoting equity to voting equity.--
        Before the solicitation for proposals in accordance with 
        paragraph (2)(B), the Secretary shall prescribe regulations 
        setting forth the circumstances under which the Federal 
        Government's 60 percent nonvoting equity ownership may be 
        converted into voting equity ownership in order to meet the 
        objectives of this Act or otherwise protect the interests of 
        the American taxpayers.
    ``(c) Directors, Officers, and Employees.--
            ``(1) Board of directors.--
                    ``(A) Appointment and number.--The Corporation 
                shall be under the management of a Board of Directors 
                (hereafter in this section referred to as the `Board') 
                consisting of individuals who are citizens of the 
                United States, of whom 1 shall be elected by the Board 
                to serve as chairperson.
                    ``(B) Term.--The members of the Board shall be 
                elected annually by the stockholders of the 
                Corporation.
                    ``(C) Prohibition on conflicts of interest.--
                            ``(i) In general.--A director may not 
                        participate in the deliberations on, or vote 
                        on, a matter regarding an application, claim, 
                        or other matter pending before the Corporation 
                        if, to the director's knowledge, the director, 
                        the director's spouse, minor child, parent, 
                        sibling, or partner, or any organization, other 
                        than the Corporation, in which the director is 
                        serving as an officer, director, trustee, 
                        partner, or employee, or any person with whom 
                        the director is negotiating or has any 
                        arrangement concerning perspective employment, 
                        has a financial interest in the matter.
                            ``(ii) Consequence of violation.-- A 
                        director who violates this subparagraph shall 
                        be subject to removal from the Board, but such 
                        a violation shall not impair, nullify, or 
                        otherwise affect the validity of any otherwise 
                        lawful action by the Corporation in which such 
                        director participated.
                    ``(D) Compensation of the board.--
                            ``(i) Amount.--The rate of compensation of 
                        members of the Board shall be fixed by the 
                        stockholders of the Corporation.
                            ``(ii) Funds.--Funds for such compensation 
                        shall be drawn from the capital and earnings of 
                        the Corporation.
                    ``(E) Bylaws.--The Board may adopt and amend bylaws 
                governing the operation of the Corporation in a manner 
                consistent with the provisions of this title and the 
                articles of incorporation of the Corporation.
            ``(2) Officers and employees.--
                    ``(A) Appointment.--The Board shall appoint a chief 
                executive officer, who shall have the authority to 
                appoint such other officers and employees as the 
                officer determines to be necessary to carry out the 
                provisions of this section and the functions of the 
                Corporation.
                    ``(B) Prohibition on conflicts of interest.--
                            ``(i) In general.--An officer or employee 
                        may not participate in a matter regarding an 
                        application, claim, or other matter pending 
                        before the Corporation if, to such person's 
                        knowledge, the person, the person's spouse, 
                        minor child, parent, sibling, or partner, or an 
                        organization, other than the Corporation, in 
                        which the person is serving as an officer, 
                        director, trustee, partner, or employee, or any 
                        person with whom the person is negotiating or 
                        has any arrangement concerning perspective 
                        employment, has a financial interest in the 
                        matter.
                            ``(ii) Consequence of violation.--An 
                        officer or employee who violates this 
                        subparagraph shall be subject to termination, 
                        but such a violation shall not impair, nullify, 
                        or otherwise affect the validity of any 
                        otherwise lawful action by the Corporation in 
                        which such officer or employee participated.
                    ``(C) Compensation of officers and employees.--
                            ``(i) In general.--Subject to clause (i), 
                        the rate of compensation of the chief executive 
                        officer, and all officers and employees, of the 
                        Corporation shall be fixed by the Board.
                            ``(ii) Delegation to c.e.o.--At the 
                        discretion of the Board, the Board may delegate 
                        to the chief executive officer, subject to the 
                        provisions of subparagraph (B), the authority 
                        to fix the rate of compensation for other 
                        officers and employees.
                    ``(D) Source of funds for compensation.--Funds for 
                compensation for the chief executive officer, and for 
                all officers and employees, shall be drawn from the 
                capital and earnings of the Corporation.
                    ``(E) Tenure.--Officers and employees shall serve 
                at the pleasure of the Board.
    ``(d) General Powers.--The Corporation shall have the power to do 
the following:
            ``(1) Have succession in the name of the Corporation.
            ``(2) Adopt, alter, and use a corporate seal.
            ``(3) Sue and be sued in the name of the Corporation.
            ``(4) Make and carry out contracts.
            ``(5) Exercise such other incidental powers not 
        inconsistent with this section that are necessary or 
        appropriate to carry out the purposes and functions of the 
        Corporation, including the usual powers conferred upon a 
        corporation by the District of Columbia Business Corporation 
        Act.
            ``(6) Modify the name of the Corporation.
    ``(e) Promotion of Technologies.--
            ``(1) Marketing of technologies.--The Corporation shall 
        undertake an aggressive, multifaceted outreach program to 
        increase awareness of the availability of patents, licenses, 
        processes, and technologies to qualified concerns under this 
        subtitle. This program shall emphasize the use of new 
        information technologies, including the utilization of cable 
        television and the modern electronic media, and the data base 
        established under this subtitle.
            ``(2) Utilization of cable television.--
                    ``(A) In general.--In implementing the outreach 
                program provided under paragraph (1), the Corporation 
                shall enter into contracts for the establishment of a 
                cable television network devoted to marketing efforts 
                for the commercialization of patents, licenses, 
                processes, and technologies--
                            ``(i) owned or held in whole or part by 
                        Federal departments, agencies, or government 
                        controlled corporations,
                            ``(ii) developed in Federal laboratories,
                            ``(iii) arising in the course of federally 
                        funded research at educational institutions, 
                        other units of government or with private 
                        concerns; and
                            ``(iv) which are otherwise made available 
                        to the government by private concerns.
                    ``(B) Promotional fees.--Under terms negotiated 
                between the Secretary and the Corporation, the 
                Secretary is authorized to make payments to the 
                Corporation for promotional fees for the production of 
                segments for broadcast over cable television, or other 
                appropriate media, which identify--
                            ``(i) the technologies described in 
                        paragraph (A);
                            ``(ii) their potential commercial 
                        applications; and
                            ``(iii) methods available for obtaining 
                        additional information on the technologies.
            ``(3) Technical assistance.--
                    ``(A) In general.--The Corporation shall, upon 
                request, provide technical assistance and services, as 
                appropriate and needed, to qualified concerns under 
                this subtitle.
                    ``(B) Fees.--The Corporation may--
                            ``(i) charge fees for technical assistance 
                        and services provided under this section in 
                        amounts sufficient to cover the reasonable cost 
                        of such assistance and services; and
                            ``(ii) waive such fees on a case-by-case 
                        basis.
            ``(4) Outreach to specific areas.--The Corporation shall 
        seek to ensure that qualified concerns located in areas 
        determined by the Secretary of Commerce to have a depressed 
        economy or chronically high unemployment are notified of the 
        availability assistance through the program established under 
        this section and, to the extent practicable, to encourage and 
        facilitate the participation of such qualified concerns in such 
        program.
    ``(f) Authority to Represent the Government.--
            ``(1) In general.--In accordance with regulations 
        prescribed by the Secretary, the Corporation shall act as an 
        agent, and represent the interests, of the Federal Government 
        in facilitating the transfer of patents, licenses, processes, 
        and technologies to qualified concerns under this Act.
            ``(2) Rights of qualified concerns.--In accordance with 
        regulations promulgated by the Secretary, the Corporation is 
        authorized to convey, to qualified concerns, under terms and 
        conditions to be negotiated between the Corporations and 
        qualified concerns, title, exclusive license, nonexclusive 
        license, or other rights which may be necessary and appropriate 
        to facilitate the commercialization of patents, licenses, 
        processes, and technologies as provided under this Act.
            ``(3) Minimum rights of the federal government.--In the 
        conveyance of rights to qualified concerns as provided for 
        under paragraph (2), the Corporation shall ensure the 
        following:
                    ``(A) The conveyance agreement contains language 
                providing for the right of the Corporation to revoke 
                the rights provided under paragraph (2) if--
                            ``(i) the qualified concern does not 
                        demonstrate that it is undertaking a good faith 
                        effort to achieve the commercialization of the 
                        patent, license, process, or technology; or
                            ``(ii) the Secretary certifies that the 
                        interests of national security or the general 
                        welfare of the American people necessitates the 
                        revocation of such rights.
                    ``(B) The Federal Government retains a license to 
                such patents, processes, and technologies for its own 
                use.
                    ``(C) The Federal Government receives in 
                compensation for the conveyance of such rights--
                            ``(i) royalty fees;
                            ``(ii) partial equity ownership in the 
                        qualified concerns to whom such rights are 
                        conveyed;
                            ``(iii) the right to share in the earnings 
                        of the qualified entity proportionate to the 
                        value of the rights so conveyed; or
                            ``(iv) a sum of money or other compensation 
                        that the Corporation determines to be 
                        appropriate.
    ``(g) Financing of Corporation.--
            ``(1) Capital stock.--The Corporation may issue and have 
        outstanding, in such amounts as it shall determine, shares of 
        capital stock, without par value, which shall carry voting 
        rights and be eligible for dividends.
            ``(2) Nonvoting security issues and certificates of 
        indebtedness.--The Corporation may issue, in addition to the 
        stock authorized by paragraph (1) of this section, nonvoting 
        securities, bonds, debentures, and other certificates of 
        indebtedness as it may determine.
    ``(h) Consultation with Federal Agencies, and With Private 
Parties.--
            ``(1) Consultation with federal agencies.--In carrying out 
        this title, the Board and the Corporation shall consult 
        frequently with the Secretary of Commerce, and such Federal 
        agencies and departments as is appropriate, to ensure 
        coordination and the maximum utilization of all related Federal 
        resources to promote technology transfer and commercialization.
            ``(2) Consultation with private parties.--In carrying out 
        this section, the Board and the Corporation shall solicit 
        comments from private parties, including representatives of 
        finance, industry, and organized labor on the role of the 
        Corporation and the needs of private parties.
    ``(i) Audit by Comptroller General.--The Comptroller General of the 
United States may audit the financial transactions of the Corporation. 
For the purposes of carrying out such an audit, the Comptroller General 
shall have access to all books, records, and property belonging to, or 
in the possession of, the Corporation. In the case of a person or 
entity which has entered into a financial relationship with the 
Corporation, the Comptroller General shall have access only to those 
books, records, and property belonging to, or in the possession of, the 
person or entity which pertain to the Corporation and which are 
necessary to carry out the audit. The Comptroller General shall make a 
report of each such audit to the Congress and the President.
    ``(j) Administration.--
            ``(1) Hearings.--The Board may hold such hearings, sit and 
        act at such times and places, take such testimony, receive such 
        evidence, and publish or otherwise distribute so much of its 
        proceedings and reports as it may deem advisable.
            ``(2) Office space and equipment.--The Board may acquire, 
        furnish, and equip such office space as it determines 
        necessary.
            ``(3) Necessary expenses.--The Board may incur such 
        necessary expenses and exercise such powers as are consistent 
        and reasonably required to perform its functions.
            ``(4) Records.--To the extent permitted by law, all 
        appropriate records and papers of the Board shall be made 
        available for public inspection.
            ``(5) Aid from federal agencies.--Upon the request of the 
        Board, the head of a Federal department or agency is authorized 
        to--
                    ``(A) furnish to the Board such information as the 
                Board deems necessary for carrying out its functions 
                and as is available to the agency; and
                    ``(B) detail for temporary duty, on a reimbursable 
                basis, such personnel as the Board deems necessary to 
                carry out its functions.
    ``(k) Miscellaneous Provisions.--
            ``(1) Jurisdiction.--
                    ``(A) In general.--Whenever the Corporation is a 
                party to any civil action under this title, such action 
                shall be deemed to arise under the laws of the United 
                States. No attachment or execution may be issued 
                against the Corporation, or any property thereof, prior 
                to entry of final judgment.
                    ``(B) Citizenship of corporation.--The Corporation 
                shall be deemed to be a citizen only of the District of 
                Columbia for the purpose of determining the original 
                jurisdiction of the district courts of the United 
                States in civil actions to which the Corporation is a 
                party.
            ``(2) Business activity and qualification.--The Corporation 
        shall be deemed to be qualified to do business in each State in 
        which it performs any activity authorized under this title.

``SEC. 724. ASSISTANCE TO BUSINESSES IN SECURING FINANCING.

    ``(a) Information Clearinghouse.--The Corporation established under 
this subtitle shall act as a one-stop clearinghouse for information to 
assist qualified concerns identify sources of business development and 
technology commercialization financing available through the Federal 
Government as well as through applicable State and local government 
programs and through private sources.
    ``(b) Agent of the Federal Government.--The Corporation may act as 
an agent of the Federal Government for purposes of accepting 
applications for financial assistance and their submission to the 
appropriate Federal agency on behalf of a qualified concern.

``SEC. 725. TECHNICAL ASSISTANCE FOR LENDERS AND BORROWERS.

    ``(a) In General.--The Corporation shall, upon request, provide 
technical assistance and services, as appropriate and needed, to 
lenders and borrowers under this title, and shall ensure that such 
lenders and borrowers have ready access to appropriate assistance in 
order to aid such lenders and borrowers in achieving the purposes of 
this subtitle.
    ``(b) Fees.--The Corporation may--
            ``(1) charge fees for technical assistance and services 
        provided under this section in amounts sufficient to cover the 
        reasonable cost of such assistance and services; and
            ``(2) waive such fees on a case-by-case basis.''.

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