I 

110TH CONGRESS 

1ST SESSION H. R. 2068 

To establish the Southwest Regional Border Authority. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 26, 2007 

Mr. REYES (for himself, Mr. HINOJOSA, Mr. FILNER, Mr. ORTIZ, Mr. 

CUELLAR, Mr. RODRIGUEZ, Ms. GIFFORDS, Mr. GRIJALVA, and Mrs. 

DAVIS of California) introduced the following bill; which was referred to 

the Committee on Transportation and Infrastructure, and in addition to 

the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To establish the Southwest Regional Border Authority. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Southwest Regional Border Authority Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings and purposes. 

Sec. 3. Definitions. 


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TITLE I—SOUTHWEST REGIONAL BORDER AUTHORITY 

Sec. 101. Membership and voting. 

Sec. 102. Duties and powers. 

Sec. 103. Authority personnel matters. 

TITLE II—GRANTS AND DEVELOPMENT PLANNING 

Sec. 201. Infrastructure development and improvement. 

Sec. 202. Technology development. 

Sec. 203. Community development and entrepreneurship. 

Sec. 204. Education and workforce development. 

Sec. 205. Funding. 

Sec. 206. Supplements to Federal grant programs. 

Sec. 207. Demonstration projects. 

Sec. 208. Local development districts; certification and administrative expenses. 

Sec. 209. Distressed counties and areas and economically strong counties. 

Sec. 210. Development planning process. 

TITLE III—ADMINISTRATION 

Sec. 301. Program development criteria. 

Sec. 302. Approval of development plans and projects. 

Sec. 303. Consent of States. 

Sec. 304. Records. 

Sec. 305. Annual report. 

Sec. 306. Authorization of appropriations. 

Sec. 307. Termination of authority. 

1 SEC. 2. FINDINGS AND PURPOSES. 

2 (a) FINDINGS.—Congress finds that— 

3 (1) a rapid increase in population in the South4 west border region is placing a significant strain on 

5 the infrastructure of the region, including transpor6 tation, water and wastewater, public health, and 

7 telecommunications; 

8 (2) 20 percent of the residents of the region 

9 have incomes below the poverty level; 

10 (3) unemployment rates in counties in the re11 gion are up to 5 times the national unemployment 

12 rate; 


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1 (4) per capita personal income in the region is 

2 significantly below the national average and much of 

3 the income in the region is distributed through wel4 fare programs, retirement programs, and unemploy5 ment payments; 

6 (5) a lack of adequate access to capital in the 

7 region— 

8 (A) has created economic disparities be9 tween communities in the region and commu10 nities outside the region; and 

11 (B) has made it difficult for businesses to 

12 start up in the region; 

13 (6) it has been difficult for displaced workers in 

14 the region to find employment because many work15 ers— 

16 (A) have limited English language pro17 ficiency; and 

18 (B) lack adequate English language and 

19 job training; 

20 (7) many residents of the region live in commu21 nities referred to as ‘‘colonias’’ that lack basic neces22 sities, including running water, sewers, storm drain23 age, and electricity; 

24 (8) many of the problems that exist in the re25 gion could be solved or ameliorated by technology 


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1 that would contribute to economic development in 

2 the region; 

3 (9) while numerous Federal, State, and local 

4 programs target financial resources to the region, 

5 those programs are often uncoordinated, duplicative, 

6 and, in some cases, unavailable to eligible border 

7 communities because those communities cannot af8 ford the required funding match; 

9 (10) Congress has established several regional 

10 economic development commissions, including the 

11 Appalachian Regional Commission, the Delta Re12 gional Authority, and the Denali Commission, to im13 prove the economies of those areas of the United 

14 States that experience the greatest economic dis15 tress; and 

16 (11) many of the counties in the region are 

17 among the most economically distressed in the 

18 United States and would benefit from a regional eco19 nomic development commission. 

20 (b) PURPOSES.—The purposes of this Act are— 

21 (1) to establish a regional economic develop22 ment authority for the Southwest Border region to 

23 address critical issues relating to the economic 

24 health and well-being of the residents of the region; 


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1 (2) to provide funding to communities in the re2 gion to stimulate and foster infrastructure develop3 ment, technology development, community develop4 ment and entrepreneurship, and education and 

5 workforce development in the region; 

6 (3) to increase the total amount of Federal 

7 funding available for border economic development 

8 projects by coordinating with and reducing duplica9 tion of other Federal, State, and local programs; and 

10 (4) to empower the people of the region through 

11 the use of local development districts and State and 

12 regional development plans that reflect State and 

13 local priorities. 

14 SEC. 3. DEFINITIONS. 

15 In this Act, the following definitions apply: 

16 (1) ATTAINMENT COUNTY.—The term ‘‘attain17 ment county’’ means an economically strong county 

18 that is not a distressed county or a competitive 

19 county. 

20 (2) AUTHORITY.—The term ‘‘Authority’’ means 

21 the Southwest Regional Border Authority estab22 lished by section 101(a)(1). 

23 (3) BINATIONAL REGION.—The term ‘‘bina24 tional region’’ means the area in the United States 

25 and Mexico that is within 150 miles of the interVerDate Aug 31 2005 21:39 Apr 27, 2007 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2068.IH H2068

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1 national border between the United States and Mex2 ico. 

3 (4) BUSINESS INCUBATOR SERVICE.—The term 

4 ‘‘business incubator service’’ means— 

5 (A) a legal service, including aid in pre6 paring a corporate charter, partnership agree7 ment, or contract; 

8 (B) a service in support of the protection 

9 of intellectual property through a patent, a 

10 trademark, or any other means; 

11 (C) a service in support of the acquisition 

12 or use of advanced technology, including the 

13 use of Internet services and Web-based services; 

14 and 

15 (D) consultation on strategic planning, 

16 marketing, or advertising. 

17 (5) COMPETITIVE COUNTY.—The term ‘‘com18 petitive county’’ means an economically strong coun19 ty that meets at least 1, but not all, of the criteria 

20 for a distressed county specified in paragraph (5). 

21 (6) DISTRESSED COUNTY.—The term ‘‘dis22 tressed county’’ means a county in the region that— 

23 (A)(i) has a poverty rate that is at least 

24 150 percent of the poverty rate of the United 

25 States; 


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1 (ii) has a per capita market income that is 

2 not more than 67 percent of the per capita 

3 market income of the United States; and 

4 (iii) has a 3-year unemployment rate that 

5 is at least 150 percent of the unemployment 

6 rate of the United States; or 

7 (B)(i) has a poverty rate that is at least 

8 200 percent of the poverty rate of the United 

9 States; and 

10 (ii)(I) has a per capita market income that 

11 is not more than 67 percent of the per capita 

12 market income of the United States; or 

13 (II) has a 3-year unemployment rate that 

14 is at least 150 percent of the unemployment 

15 rate of the United States. 

16 (7) ECONOMICALLY STRONG COUNTY.—The 

17 term ‘‘economically strong county’’ means a county 

18 in the region that is not a distressed county. 

19 (8) FEDERAL GRANT PROGRAM.—The term 

20 ‘‘Federal grant program’’ means a Federal grant 

21 program to provide assistance in— 

22 (A) acquiring or developing land; 

23 (B) constructing or equipping a highway, 

24 road, bridge, or facility; or 


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1 (C) carrying out other economic develop2 ment activities. 

3 (9) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

4 has the meaning given the term in section 4 of the 

5 Indian Self-Determination and Education Assistance 

6 Act (25 U.S.C. 450b). 

7 (10) ISOLATED AREA OF DISTRESS.—The term 

8 ‘‘isolated area of distress’’ means an area located in 

9 an economically strong county that has a high rate 

10 of poverty, unemployment, or outmigration, as deter11 mined by the Authority. 

12 (11) LOCAL DEVELOPMENT DISTRICT.—The 

13 term ‘‘local development district’’ means an entity 

14 that— 

15 (A)(i) is an economic development district 

16 that is— 

17 (I) in existence on the date of enact18 ment of this Act; and 

19 (II) recognized by the Economic De20 velopment Administration; and 

21 (III) located in the region; or 

22 (ii) if an entity described in clause (i) does 

23 not exist— 

24 (I) is organized and operated in a 

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1 nity participation and an effective oppor2 tunity for local officials, community lead3 ers, and the public to contribute to the de4 velopment and implementation of programs 

5 in the region; 

6 (II) is governed by a policy board with 

7 at least a simple majority of members con8 sisting of designees or employees of a gen9 eral purpose unit of local government that 

10 have been appointed to represent the unit 

11 of local government or elected officials; and 

12 (III) is certified by the Governor or 

13 appropriate State officer as having a char14 ter or authority that includes the economic 

15 development of counties, portions of coun16 ties, or other political subdivisions within 

17 the region; and 

18 (B) has not, as certified by the Federal co19 chairperson— 

20 (i) inappropriately used Federal grant 

21 funds from any Federal source; or 

22 (ii) appointed an officer who, during 

23 the period in which another entity inappro24 priately used Federal grant funds from any 


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1 Federal source, was an officer of the other 

2 entity. 

3 (12) REGION.—The term ‘‘region’’ means— 

4 (A) the counties of Cochise, Gila, Graham, 

5 Greenlee, La Paz, Maricopa, Pima, Pinal, 

6 Santa Cruz, and Yuma in the State of Arizona; 

7 (B) the counties of Imperial, Los Angeles, 

8 Orange, Riverside, San Bernardino, San Diego, 

9 and Ventura in the State of California; 

10 (C) the counties of Catron, Chaves, Don ̃a 

11 Ana, Eddy, Grant, Hidalgo, Lincoln, Luna, 

12 Otero, Sierra, and Socorro in the State of New 

13 Mexico; and 

14 (D) the counties of Atascosa, Bandera, 

15 Bee, Bexar, Brewster, Brooks, Cameron, Coke, 

16 Concho, Crane, Crockett, Culberson, Dimmit, 

17 Duval, Ector, Edwards, El Paso, Frio, Gil18 lespie, Glasscock, Hidalgo, Hudspeth, Irion, 

19 Jeff Davis, Jim Hogg, Jim Wells, Karnes, Ken20 dall, Kenedy, Kerr, Kimble, Kinney, Kleberg, 

21 La Salle, Live Oak, Loving, Mason, Maverick, 

22 McMullen, Medina, Menard, Midland, Nueces, 

23 Pecos, Presidio, Reagan, Real, Reeves, San 

24 Patricio, Shleicher, Sutton, Starr, Sterling, 

25 Terrell, Tom Green, Upton, Uvalde, Val Verde, 


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1 Ward, Webb, Willacy, Wilson, Winkler, Zapata, 

2 and Zavala in the State of Texas. 

3 (13) SMALL BUSINESS.—The term ‘‘small busi4 ness’’ has the meaning given the term ‘‘small busi5 ness concern’’ in section 3(a) of the Small Business 

6 Act (15 U.S.C. 632(a)). 

7 TITLE I—SOUTHWEST REGIONAL 

8 BORDER AUTHORITY 

9 SEC. 101. MEMBERSHIP AND VOTING. 

10 (a) ESTABLISHMENT.— 

11 (1) IN GENERAL.—There is established the 

12 Southwest Regional Border Authority. 

13 (2) COMPOSITION.—The Authority shall be 

14 composed of— 

15 (A) a Federal member, to be appointed by 

16 the President, by and with the advice and con17 sent of the Senate; and 

18 (B) State members, who shall consist of 

19 the Governor (or a designee of the Governor) of 

20 each State in the region that elects to partici21 pate in the Authority. 

22 (3) COCHAIRPERSONS.—The Authority shall be 

23 headed by— 

24 (A) the Federal member, who shall serve— 

25 (i) as the Federal cochairperson; and 


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1 (ii) as a liaison between the Federal 

2 Government and the Authority; and 

3 (B) a State cochairperson, who shall— 

4 (i) be a Governor of a State described 

5 in paragraph (2)(B); 

6 (ii) be elected by the State members 

7 for a term of not more than 2 years; and 

8 (iii) serve only 1 term during any 4 

9 year period. 

10 (b) ALTERNATE MEMBERS.— 

11 (1) STATE ALTERNATES.—The State member 

12 of a State described in paragraph (2)(B) may have 

13 a single alternate, who shall be— 

14 (A) a resident of that State; and 

15 (B) appointed by the Governor of the 

16 State, from among the members of the cabinet 

17 or personal staff of the Governor. 

18 (2) ALTERNATE FEDERAL COCHAIRPERSON.— 

19 The President shall appoint an alternate Federal co20 chairperson. 

21 (3) QUORUM.—Subject to subsection (d)(4), a 

22 State alternate member shall not be counted toward 

23 the establishment of a quorum of the members of 

24 the Authority in any case in which a quorum of the 

25 State members is required to be present. 


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1 (4) DELEGATION OF POWER.—No power or re2 sponsibility of the Authority specified in paragraph 

3 (2) or (3) of subsection (d), and no voting right of 

4 any member of the Authority, shall be delegated to 

5 any person who is not— 

6 (A) a member of the Authority; or 

7 (B) entitled to vote at meetings of the Au8 thority. 

9 (c) MEETINGS.— 

10 (1) INITIAL MEETING.—The initial meeting of 

11 the Authority shall be conducted not later than the 

12 date that is the earlier of— 

13 (A) 180 days after the date of enactment 

14 of this Act; or 

15 (B) 60 days after the date on which the 

16 Federal cochairperson is appointed. 

17 (2) OTHER MEETINGS.—The Authority shall 

18 hold meetings at such times as the Authority deter19 mines, but not less often than semiannually. 

20 (3) LOCATION.—Meetings of the Authority shall 

21 be conducted, on a rotating basis, at a site in the 

22 region in each of the States of Arizona, California, 

23 New Mexico, and Texas. 

24 (d) VOTING.— 


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1 (1) IN GENERAL.—To be effective, a decision by 

2 the Authority shall require the approval of the Fed3 eral cochairperson and not less than 60 percent of 

4 the State members of the Authority (not including 

5 any member representing a State that is delinquent 

6 under section 102(d)(2)(D)). 

7 (2) QUORUM.— 

8 (A) IN GENERAL.—A majority of the State 

9 members shall constitute a quorum. 

10 (B) REQUIRED FOR POLICY DECISION.—A 

11 quorum of State members shall be required to 

12 be present for the Authority to make any policy 

13 decision, including— 

14 (i) a modification or revision of a pol15 icy decision of the Authority; 

16 (ii) approval of a State or regional de17 velopment plan; and 

18 (iii) any allocation of funds among the 

19 States. 

20 (3) PROJECT AND GRANT PROPOSALS.—The ap21 proval of project and grant proposals shall be— 

22 (A) a responsibility of the Authority; and 

23 (B) conducted in accordance with section 

24 302. 


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1 (4) VOTING BY ALTERNATE MEMBERS.—An al2 ternate member shall vote in the case of the absence, 

3 death, disability, removal, or resignation of the Fed4 eral or State member for which the alternate mem5 ber is an alternate. 

6 SEC. 102. DUTIES AND POWERS. 

7 (a) DUTIES.—The Authority shall— 

8 (1) develop comprehensive and coordinated 

9 plans and programs to establish priorities and ap10 prove grants for the economic development of the re11 gion, giving due consideration to other Federal, 

12 State, and local planning and development activities 

13 in the region; 

14 (2) conduct and sponsor investigations, re15 search, and studies, including an inventory and anal16 ysis of the resources of the region, using, in part, 

17 the materials compiled by the Interagency Task 

18 Force on the Economic Development of the South19 west Border established by Executive Order No. 

20 13122 (64 Fed. Reg. 29201); 

21 (3) sponsor demonstration projects under sec22 tion 207; 

23 (4)(A) enhance the capacity of, and provide 

24 support for, local development districts in the region; 

25 or 


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1 (B) if there is no local development district de2 scribed in clause (i) of section 3(11)(A) for a portion 

3 of the region, foster the creation of a local develop4 ment district; 

5 (5) review and study Federal, State, and local 

6 public and private programs and, as appropriate, 

7 recommend modifications or additions to increase 

8 the effectiveness of the programs; 

9 (6) formulate and recommend, as appropriate, 

10 interstate and international compacts and other 

11 forms of interstate and international cooperation; 

12 (7) encourage private investment in industrial, 

13 commercial, and recreational projects in the region; 

14 (8) provide a forum for consideration of the 

15 problems of the region and any proposed solutions to 

16 those problems; 

17 (9) establish and use, as appropriate, citizens, 

18 special advisory counsels, and public conferences; 

19 and 

20 (10) provide a coordinating mechanism to avoid 

21 duplication of efforts among the border programs of 

22 the Federal agencies and the programs established 

23 under the North American Free Trade Agreement 

24 entered into by the United States, Mexico, and Can25 ada on December 17, 1992. 


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1 (b) POWERS.—In carrying out subsection (a), the Au2 thority may— 

3 (1) hold such hearings, sit and act at such 

4 times and places, take such testimony, receive such 

5 evidence, and print or otherwise reproduce and dis6 tribute a description of the proceedings of, and re7 ports on actions by, the Authority as the Authority 

8 considers appropriate; 

9 (2) request from any Federal, State, or local 

10 agency such information as may be available to or 

11 procurable by the agency that may be of use to the 

12 Authority in carrying out the duties of the Author13 ity; 

14 (3) maintain an accurate and complete record 

15 of all transactions and activities of the Authority, to 

16 be available for audit and examination by the Comp17 troller General of the United States; 

18 (4) adopt, amend, and repeal bylaws and rules 

19 governing the conduct of business and the perform20 ance of duties of the Authority; 

21 (5) request the head of any Federal agency to 

22 detail to the Authority, for a specified period of 

23 time, such personnel as the Authority requires to 

24 carry out duties of the Authority, each such detail 


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1 to be without loss of seniority, pay, or other em2 ployee status; 

3 (6) request the head of any State department 

4 or agency or local government to detail to the Au5 thority, for a specified period of time, such personnel 

6 as the Authority requires to carry out the duties of 

7 the Authority, each such detail to be without loss of 

8 seniority, pay, or other employee status; 

9 (7) make recommendations to the President re10 garding— 

11 (A) the expenditure of funds at the Fed12 eral, State, and local levels under this Act; and 

13 (B) additional Federal, State, and local 

14 legislation that may be necessary to further the 

15 purposes of this Act; 

16 (8) provide for coverage of Authority employees 

17 in a suitable retirement and employee benefit system 

18 by— 

19 (A) making arrangements or entering into 

20 contracts with any participating State govern21 ment; or 

22 (B) otherwise providing retirement and 

23 other employee benefit coverage; 


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1 (9) accept, use, and dispose of gifts or dona2 tions of services or real, personal, tangible, or intan3 gible property; 

4 (10) enter into and perform such contracts, 

5 leases, cooperative agreements, or other transactions 

6 as are necessary to carry out the duties of the Au7 thority; 

8 (11) establish and maintain— 

9 (A) a headquarters for the Authority, to be 

10 located at a site that is not more than 100 kilo11 meters from the international border between 

12 the United States and Mexico; and 

13 (B) at least 1 field office in each of the 

14 States of Arizona, California, New Mexico, and 

15 Texas, to be located at appropriate sites in the 

16 region that are not more than 100 kilometers 

17 from the international border between the 

18 United States and Mexico; and 

19 (12) provide for an appropriate level of rep20 resentation in Washington, D.C. 

21 (c) FEDERAL AGENCY COOPERATION.—A Federal 

22 agency shall— 

23 (1) cooperate with the Authority; and 

24 (2) provide, on request of the Federal cochair25 person, appropriate assistance in carrying out this 


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1 Act, in accordance with applicable Federal laws (in2 cluding regulations). 

3 (d) ADMINISTRATIVE EXPENSES.— 

4 (1) IN GENERAL.— 

5 (A) ADMINISTRATIVE EXPENSES.—Subject 

6 to paragraph (2), administrative expenses of the 

7 Authority shall be paid— 

8 (i) by the Federal Government, in an 

9 amount equal to 60 percent of the admin10 istrative expenses; and 

11 (ii) by the States in the region that 

12 elect to participate in the Authority, in an 

13 amount equal to 40 percent of the admin14 istrative expenses. 

15 (B) EXPENSES OF FEDERAL CHAIR16 PERSON.—All expenses of the Federal cochair17 person, including expenses of the alternate and 

18 staff of the Federal cochairperson, shall be paid 

19 by the Federal Government. 

20 (2) STATE SHARE.— 

21 (A) IN GENERAL.—Subject to subpara22 graph (C), the share of administrative expenses 

23 of the Authority to be paid by each State shall 

24 be determined by a unanimous vote of the State 

25 members of the Authority. 


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1 (B) NO FEDERAL PARTICIPATION.—The 

2 Federal cochairperson shall not participate or 

3 vote in any decision under subparagraph (A). 

4 (C) LIMITATION.—A State shall not pay 

5 less than 10 nor more than 40 percent of the 

6 share of administrative expenses of the Author7 ity determined under paragraph (1)(A)(ii). 

8 (D) DELINQUENT STATES.—During any 

9 period in which a State is more than 1 year de10 linquent in payment of the State’s share of ad11 ministrative expenses of the Authority under 

12 this subsection (as determined by the Sec13 retary)— 

14 (i) no assistance under this Act shall 

15 be provided to the State (including assist16 ance to a political subdivision or a resident 

17 of the State) for any project not approved 

18 as of the date of the commencement of the 

19 delinquency; and 

20 (ii) no member of the Authority from 

21 the State shall participate or vote in any 

22 action by the Authority. 

23 (E) EFFECT ON ASSISTANCE.—A State’s 

24 share of administrative expenses of the Author25 ity under this subsection shall not be taken into 


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1 consideration in determining the amount of as2 sistance provided to the State under title II. 

3 SEC. 103. AUTHORITY PERSONNEL MATTERS. 

4 (a) COMPENSATION OF MEMBERS.— 

5 (1) FEDERAL COCHAIRPERSON.—The Federal 

6 cochairperson shall be compensated by the Federal 

7 Government at the annual rate of basic pay pre8 scribed for level III of the Executive Schedule in 

9 subchapter II of chapter 53 of title 5, United States 

10 Code. 

11 (2) ALTERNATE FEDERAL COCHAIRPERSON.— 

12 The alternate Federal cochairperson— 

13 (A) shall be compensated by the Federal 

14 Government at the annual rate of basic pay 

15 prescribed for level V of the Executive Schedule 

16 described in paragraph (1); and 

17 (B) when not actively serving as an alter18 nate for the Federal cochairperson, shall per19 form such functions and duties as are delegated 

20 by the Federal cochairperson. 

21 (3) STATE MEMBERS AND ALTERNATES.— 

22 (A) IN GENERAL.—A State shall com23 pensate each member and alternate member 

24 representing the State on the Authority at the 

25 rate established by State law. 


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1 (B) NO ADDITIONAL COMPENSATION.—No 

2 State member or alternate member shall receive 

3 any salary, or any contribution to or sup4 plementation of salary, from any source other 

5 than the State for services provided by the 

6 member or alternate member to the Authority. 

7 (b) DETAILED EMPLOYEES.— 

8 (1) IN GENERAL.—No person detailed to serve 

9 the Authority under section 102(b)(6) shall receive 

10 any salary, or any contribution to or supplemen11 tation of salary, for services provided to the Author12 ity from— 

13 (A) any source other than the State, local, 

14 or intergovernmental department or agency 

15 from which the person was detailed; or 

16 (B) the Authority. 

17 (2) VIOLATION.—Any person that violates this 

18 subsection shall be fined not more than $5,000, im19 prisoned not more than 1 year, or both. 

20 (c) ADDITIONAL PERSONNEL.— 

21 (1) COMPENSATION.— 

22 (A) IN GENERAL.—The Authority may ap23 point and fix the compensation of an executive 

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1 essary to enable the Authority to carry out the 

2 duties of the Authority. 

3 (B) EXCEPTION.—Compensation under 

4 subparagraph (A) shall not exceed the max5 imum rate of basic pay established for the Sen6 ior Executive Service under section 5382 of title 

7 5, United States Code, including any applicable 

8 locality-based comparability payment that may 

9 be authorized under section 5304(h)(2)(C) of 

10 that title. 

11 (2) EXECUTIVE DIRECTOR.—The executive di12 rector shall be responsible for— 

13 (A) carrying out the administrative duties 

14 of the Authority; 

15 (B) directing the Authority staff; and 

16 (C) carrying out such other duties as the 

17 Authority may assign. 

18 (3) NO FEDERAL EMPLOYEE STATUS.—No 

19 member, alternate, officer, or employee of the Au20 thority (other than the Federal cochairperson, the 

21 alternate Federal cochairperson, staff of the Federal 

22 cochairperson, and any Federal employee detailed to 

23 the Authority under subsection (b)) shall be consid24 ered to be a Federal employee for any purpose. 

25 (d) CONFLICTS OF INTEREST.— 


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1 (1) IN GENERAL.—Except as provided under 

2 paragraph (2), no State member, State alternate, of3 ficer, employee, or detailee of the Authority shall 

4 participate personally and substantially as a mem5 ber, alternate, officer, employee, or detailee of the 

6 Authority, through decision, approval, disapproval, 

7 recommendation, the rendering of advice, investiga8 tion, or otherwise, in any proceeding, application, re9 quest for a ruling or other determination, contract, 

10 claim, controversy, or other matter in which the 

11 member, alternate, officer, employee, or detailee has 

12 a financial interest. 

13 (2) DISCLOSURE.—Paragraph (1) shall not 

14 apply if the State member, State alternate, officer, 

15 employee, or detailee— 

16 (A) immediately advises the Authority of 

17 the nature and circumstances of the proceeding, 

18 application, request for a ruling or other deter19 mination, contract, claim, controversy, or other 

20 particular matter presenting a potential conflict 

21 of interest; 

22 (B) makes full disclosure of the financial 

23 interest; and 

24 (C) before the proceeding concerning the 

25 matter presenting the conflict of interest, reVerDate Aug 31 2005 21:39 Apr 27, 2007 Jkt 059200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H2068.IH H2068

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1 ceives a written determination by the Authority 

2 that the interest is not so substantial as to be 

3 likely to affect the integrity of the services that 

4 the Authority may expect from the State mem5 ber, State alternate, officer, employee, or 

6 detailee. 

7 (3) VIOLATION.—Any person that violates this 

8 subsection shall be fined not more than $10,000, im9 prisoned not more than 2 years, or both. 

10 (e) VALIDITY OF CONTRACTS, LOANS, AND

11 GRANTS.—The Authority may declare void any contract, 

12 loan, or grant of or by the Authority in relation to which 

13 the Authority determines that there has been a violation 

14 of subsection (b), subsection (d), or any of sections 202 

15 through 209 of title 18, United States Code. 

16 (f) APPLICABLE LABOR STANDARDS.— 

17 (1) IN GENERAL.—All laborers and mechanics 

18 employed by contractors or subcontractors in the 

19 construction, alteration, or repair, including painting 

20 and decorating, of projects, buildings, and works 

21 funded by the United States under this Act, shall be 

22 paid wages at not less than the prevailing wages on 

23 similar construction in the locality as determined by 

24 the Secretary of Labor in accordance with sections 


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1 3141–3144, 3146, and 3147 of title 40, United 

2 States Code. 

3 (2) AUTHORITY.—With respect to the deter4 mination of wages under paragraph (1), the Sec5 retary of Labor shall have the authority and func6 tions set forth in Reorganization Plan No. 14 of 

7 1950 (64 Stat. 1267) and section 3145 of title 40, 

8 United States Code. 

9 TITLE II—GRANTS AND 

10 DEVELOPMENT PLANNING 

11 SEC. 201. INFRASTRUCTURE DEVELOPMENT AND IMPROVE12 MENT. 

13 The Authority may approve grants to States, local 

14 governments, Indian tribes, and public and nonprofit orga15 nizations in the region for projects, approved in accord16 ance with section 302, to develop and improve the trans17 portation, water and wastewater, public health, and tele18 communications infrastructure of the region. 

19 SEC. 202. TECHNOLOGY DEVELOPMENT AND DEPLOYMENT. 

20 The Authority may approve grants to small busi21 nesses, universities, national laboratories, and nonprofit 

22 organizations in the region to research, develop, dem23 onstrate, and deploy technology that addresses— 

24 (1) water quality; 

25 (2) water quantity; 


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1 (3) pollution; 

2 (4) transportation; 

3 (5) energy consumption; 

4 (6) public health; 

5 (7) border and port security; and 

6 (8) any other related matter that stimulates job 

7 creation or enhances economic development in the 

8 region, as determined by the Authority. 

9 SEC. 203. COMMUNITY DEVELOPMENT AND ENTREPRE10 NEURSHIP. 

11 The Authority may approve grants to States, local 

12 governments, Indian tribes, small businesses, and public 

13 or nonprofit entities for projects, approved in accordance 

14 with section 302— 

15 (1) to create dynamic local economies by— 

16 (A) recruiting businesses to the region; 

17 and 

18 (B) increasing and expanding international 

19 trade to other countries; 

20 (2) to foster entrepreneurship by— 

21 (A) supporting the advancement of, and 

22 providing entrepreneurial training and edu23 cation for, youths, students, and 

24 businesspersons; 


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1 (B) improving access to debt and equity 

2 capital by facilitating the establishment of de3 velopment venture capital funds and other ap4 propriate means; 

5 (C) providing aid to communities in identi6 fying, developing, and implementing develop7 ment strategies for various sectors of the econ8 omy; and 

9 (D)(i) developing a working network of 

10 business incubators; and 

11 (ii) supporting entities that provide busi12 ness incubator services; and 

13 (3) to promote civic responsibility and leader14 ship through activities that include— 

15 (A) the identification and training of 

16 emerging leaders; 

17 (B) the encouragement of citizen participa18 tion; and 

19 (C) the provision of assistance for strategic 

20 planning and organization development. 

21 SEC. 204. EDUCATION AND WORKFORCE DEVELOPMENT. 

22 The Authority, in coordination with State and local 

23 workforce development boards, may approve grants to 

24 States, local governments, Indian tribes, small businesses, 


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1 and public or nonprofit entities for projects, approved in 

2 accordance with section 302— 

3 (1) to assist the region in obtaining the job 

4 training, employment-related education, and busi5 ness development (with an emphasis on entrepre6 neurship) that are needed to build and maintain 

7 strong local economies; and 

8 (2) to supplement in-plant training programs 

9 offered by State and local governments to attract 

10 new businesses to the region. 

11 SEC. 205. FUNDING. 

12 (a) IN GENERAL.—Funds for grants under sections 

13 201 through 204 may be provided— 

14 (1) entirely from appropriations to carry out 

15 this Act; 

16 (2) in combination with funds available under 

17 another Federal grant program or other Federal 

18 program; or 

19 (3) in combination with funds from any other 

20 source, including— 

21 (A) State and local governments, nonprofit 

22 organizations, and the private sector in the 

23 United States; 

24 (B) the federal and local government of, 

25 and private sector in, Mexico; and 


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1 (C) the North American Development 

2 Bank. 

3 (b) PRIORITY OF FUNDING.— 

4 (1) IN GENERAL.—Subject to paragraph (2), 

5 the Authority shall award funding to each State in 

6 the region for activities in accordance with an order 

7 of priority to be determined by the State. 

8 (2) FUNDING FOR BORDER COUNTIES.—For 

9 each fiscal year, the Authority shall allocate at least 

10 60 percent of the amounts made available under sec11 tion 306 for programs and projects designed to serve 

12 the needs of— 

13 (A) distressed counties located along the 

14 international border between the United States 

15 and Mexico; and 

16 (B) isolated areas of distress located with17 in counties along the international border be18 tween the United States and Mexico. 

19 (c) BINATIONAL PROJECTS.— 

20 (1) PROHIBITION ON PROVISION OF FUNDING

21 TO NON-UNITED STATES ENTITIES.—The Authority 

22 shall not award funding to any entity that is not in23 corporated in the United States. 

24 (2) FUNDING OF BINATIONAL PROJECTS.—The 

25 Authority may award funding to a project in which 


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1 an entity that is incorporated outside the United 

2 States participates if, for any fiscal year, the entity 

3 matches with an equal amount, in cash or in-kind, 

4 the assistance received under this Act for the fiscal 

5 year. 

6 SEC. 206. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS. 

7 (a) FINDING.—Congress finds that certain States 

8 and local communities of the region, including local devel9 opment districts, may be unable to take maximum advan10 tage of Federal grant programs for which the States and 

11 communities are eligible because— 

12 (1) they lack the economic resources to provide 

13 the required matching share; or 

14 (2) there are insufficient funds available under 

15 the Federal law authorizing the Federal grant pro16 gram to meet pressing needs of the region. 

17 (b) FEDERAL GRANT PROGRAM FUNDING.—Not18 withstanding any provision of law limiting the Federal 

19 share, the areas eligible for assistance, or the authoriza20 tions of appropriations, under any Federal grant program, 

21 and in accordance with subsection (c), the Authority, with 

22 the approval of the Federal cochairperson and with respect 

23 to a project to be carried out in the region, may— 

24 (1) increase the Federal share of the costs of a 

25 project under any Federal grant program to not 


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1 more than 90 percent (except as provided in section 

2 209(b)); and 

3 (2) use amounts made available to carry out 

4 this Act to pay all or a portion of the increased Fed5 eral share. 

6 (c) CERTIFICATIONS.— 

7 (1) IN GENERAL.—In the case of any project 

8 for which all or any portion of the basic Federal 

9 share of the costs of the project is proposed to be 

10 paid under this section, no Federal contribution 

11 shall be made until the Federal official admin12 istering the Federal law that authorizes the Federal 

13 grant program certifies that the project— 

14 (A) meets (except as provided in subsection 

15 (b)) the applicable requirements of the applica16 ble Federal grant program; and 

17 (B) could be approved for Federal con18 tribution under the Federal grant program if 

19 funds were available under the law for the 

20 project. 

21 (2) CERTIFICATION BY AUTHORITY.— 

22 (A) IN GENERAL.—The certifications and 

23 determinations required to be made by the Au24 thority for approval of projects under this Act 

25 in accordance with section 302— 


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1 (i) shall be controlling; and 

2 (ii) shall be accepted by the Federal 

3 agencies. 

4 (B) ACCEPTANCE BY FEDERAL COCHAIR5 PERSON.—In the case of any project described 

6 in paragraph (1), any finding, report, certifi7 cation, or documentation required to be sub8 mitted with respect to the project to the head 

9 of the department, agency, or instrumentality of 

10 the Federal Government responsible for the ad11 ministration of the Federal grant program 

12 under which the project is carried out shall be 

13 accepted by the Federal cochairperson. 

14 SEC. 207. DEMONSTRATION PROJECTS. 

15 (a) IN GENERAL.—For each fiscal year, the Author16 ity may approve not more than 10 demonstration projects 

17 to carry out activities described in sections 201 through 

18 204, of which not more than 3 shall be carried out in any 

19 1 State. 

20 (b) REQUIREMENTS.—A demonstration project car21 ried out under this section shall— 

22 (1) be carried out on a multistate or multi23 county basis; and 

24 (2) be developed in accordance with the regional 

25 development plan prepared under section 210(d). 


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1 SEC. 208. LOCAL DEVELOPMENT DISTRICTS; CERTIFI2 CATION AND ADMINISTRATIVE EXPENSES. 

3 (a) GRANTS TO LOCAL DEVELOPMENT DISTRICTS.— 

4 (1) IN GENERAL.—The Authority shall make 

5 grants to local development districts to pay the ad6 ministrative expenses of the local development dis7 tricts. 

8 (2) CONDITIONS FOR GRANTS.— 

9 (A) MAXIMUM AMOUNT.—The amount of 

10 any grant awarded under paragraph (1) shall 

11 not exceed 80 percent of the administrative ex12 penses of the local development district receiv13 ing the grant. 

14 (B) MAXIMUM PERIOD.—No grant de15 scribed in paragraph (1) shall be awarded for a 

16 period greater than 3 years to a State agency 

17 certified as a local development district. 

18 (C) LOCAL SHARE.—The contributions of 

19 a local development district for administrative 

20 expenses may be in cash or in kind, fairly evalu21 ated, including space, equipment, and services. 

22 (b) DUTIES OF LOCAL DEVELOPMENT DISTRICTS.— 

23 A local development district shall— 

24 (1) operate as a lead organization serving 

25 multicounty areas in the region at the local level; 


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1 (2) assist the Authority in carrying out out2 reach activities for local governments, community 

3 development groups, the business community, and 

4 the public; 

5 (3) serve as a liaison between State and local 

6 governments, nonprofit organizations (including 

7 community-based groups and educational institu8 tions), the business community, and citizens; and 

9 (4) assist the individuals and entities described 

10 in paragraph (3) in identifying, assessing, and facili11 tating projects and programs to promote the eco12 nomic development of the region. 

13 SEC. 209. DISTRESSED COUNTIES AND AREAS AND ECO14 NOMICALLY STRONG COUNTIES. 

15 (a) DESIGNATIONS.—At the initial meeting of the 

16 Authority and annually thereafter, the Authority, in ac17 cordance with such criteria as the Authority may establish, 

18 shall designate— 

19 (1) distressed counties; 

20 (2) economically strong counties; 

21 (3) attainment counties; 

22 (4) competitive counties; and 

23 (5) isolated areas of distress. 

24 (b) DISTRESSED COUNTIES.— 


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1 (1) IN GENERAL.—For each fiscal year, the Au2 thority shall allocate at least 50 percent of the 

3 amounts made available under section 306 for pro4 grams and projects designed to serve the needs of 

5 distressed counties and isolated areas of distress in 

6 the region. 

7 (2) FUNDING LIMITATIONS.—The funding limi8 tations under section 206(b) shall not apply to a 

9 project to provide transportation or basic public 

10 services to residents of 1 or more distressed counties 

11 or isolated areas of distress in the region. 

12 (c) ECONOMICALLY STRONG COUNTIES.— 

13 (1) ATTAINMENT COUNTIES.—Except as pro14 vided in paragraph (3), the Authority shall not pro15 vide funds for a project located in a county des16 ignated as an attainment county under subsection 

17 (a)(3). 

18 (2) COMPETITIVE COUNTIES.—Except as pro19 vided in paragraph (3), the Authority shall not pro20 vide more than 30 percent of the total cost of any 

21 project carried out in a county designated as a com22 petitive county under subsection (a)(2)(B). 

23 (3) EXCEPTIONS.— 

24 (A) IN GENERAL.—The funding prohibi25 tion under paragraph (1) and the funding limiVerDate Aug 31 2005 21:39 Apr 27, 2007 Jkt 059200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\H2068.IH H2068

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1 tation under paragraph (2) shall not apply to 

2 grants to fund the administrative expenses of 

3 local development districts under section 

4 208(a). 

5 (B) MULTICOUNTY PROJECTS.—If the Au6 thority determines that a project could bring 

7 significant benefits to areas of the region out8 side an attainment or competitive county, the 

9 Authority may waive the application of the 

10 funding prohibition under paragraph (1) and 

11 the funding limitation under paragraph (2) 

12 to— 

13 (i) a multicounty project that includes 

14 participation by an attainment or competi15 tive county; or 

16 (ii) any other type of project. 

17 (4) ISOLATED AREAS OF DISTRESS.—For a des18 ignation of an isolated area of distress for assistance 

19 to be effective, the designation shall be supported— 

20 (A) by the most recent Federal data avail21 able; or 

22 (B) if no recent Federal data are available, 

23 by the most recent data available through the 

24 government of the State in which the isolated 

25 area of distress is located. 


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1 SEC. 210. DEVELOPMENT PLANNING PROCESS. 

2 (a) STATE DEVELOPMENT PLAN.—In accordance 

3 with policies established by the Authority, each State 

4 member shall submit an annual development plan for the 

5 area of the region represented by the State member to 

6 assist the Authority in determining funding priorities 

7 under section 205(b). 

8 (b) CONSULTATION WITH INTERESTED PARTIES.— 

9 In carrying out the development planning process (includ10 ing the selection of programs and projects for assistance), 

11 a State shall— 

12 (1) consult with— 

13 (A) local development districts; and 

14 (B) local units of government; 

15 (2) take into consideration the goals, objectives, 

16 priorities, and recommendations of the entities de17 scribed in paragraph (1); and 

18 (3) solicit input on and take into consideration 

19 the potential impact of the State development plan 

20 on the binational region. 

21 (c) PUBLIC PARTICIPATION.— 

22 (1) IN GENERAL.—The Authority and applica23 ble State and local development districts shall en24 courage and assist, to the maximum extent prac25 ticable, public participation in the development, reviVerDate Aug 31 2005 21:39 Apr 27, 2007 Jkt 059200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H2068.IH H2068

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1 sion, and implementation of all plans and programs 

2 under this Act. 

3 (2) REGULATIONS.—The Authority shall de4 velop guidelines for providing public participation 

5 described in paragraph (1), including public hear6 ings. 

7 (d) REGIONAL DEVELOPMENT PLAN.—The Author8 ity shall prepare an annual regional development plan 

9 that— 

10 (1) is based on State development plans sub11 mitted under subsection (a); 

12 (2) takes into account— 

13 (A) the input of the private sector, aca14 demia, and nongovernmental organizations; and 

15 (B) the potential impact of the regional de16 velopment plan on the binational region; 

17 (3) establishes 5-year goals for the development 

18 of the region; 

19 (4) identifies and recommends to the States— 

20 (A) potential multistate or multicounty 

21 projects that further the goals for the region; 

22 and 

23 (B) potential development projects for the 

24 binational region; and 


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1 (5) identifies and recommends to the Authority 

2 for funding demonstration projects under section 

3 207. 

4 TITLE III—ADMINISTRATION 

5 SEC. 301. PROGRAM DEVELOPMENT CRITERIA. 

6 (a) IN GENERAL.—In considering programs and 

7 projects to be provided assistance under this Act, and in 

8 establishing a priority ranking of the requests for assist9 ance provided to the Authority, the Authority shall follow 

10 procedures that ensure, to the maximum extent prac11 ticable, consideration of— 

12 (1) the relationship of the project or class of 

13 projects to overall regional development; 

14 (2) the per capita income and poverty and un15 employment rates in an area; 

16 (3) the financial resources available to the ap17 plicants for assistance seeking to carry out the 

18 project, with emphasis on ensuring that projects are 

19 adequately financed to maximize the probability of 

20 successful economic development; 

21 (4) the socioeconomic importance of the project 

22 or class of projects in relation to other projects or 

23 classes of projects that may be in competition for 

24 the same funds; 


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1 (5) the prospects that the project for which as2 sistance is sought will improve, on a continuing rath3 er than a temporary basis, the opportunities for em4 ployment, the average level of income, or the eco5 nomic development of the area to be served by the 

6 project; and 

7 (6) the extent to which the project design pro8 vides for detailed outcome measurements by which 

9 grant expenditures and the results of the expendi10 tures may be evaluated. 

11 (b) NO RELOCATION ASSISTANCE.—No financial as12 sistance authorized by this Act shall be used to assist a 

13 person or entity in relocating from 1 area to another, ex14 cept that financial assistance may be used as otherwise 

15 authorized by this Act to attract businesses from outside 

16 the region to the region. 

17 (c) MAINTENANCE OF EFFORT.—Funds may be pro18 vided for a program or project in a State under this Act 

19 only if the Authority determines that the level of Federal 

20 or State financial assistance provided under a law other 

21 than this Act, for the same type of program or project 

22 in the same area of the State within the region, will not 

23 be reduced as a result of funds made available by this Act. 


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1 SEC. 302. APPROVAL OF DEVELOPMENT PLANS AND 

2 PROJECTS. 

3 (a) IN GENERAL.—A State or regional development 

4 plan or any multistate subregional plan that is proposed 

5 for development under this Act shall be reviewed by the 

6 Authority. 

7 (b) EVALUATION BY STATE MEMBER.—An applica8 tion for a grant or any other assistance for a project under 

9 this Act shall be made through and evaluated for approval 

10 by the State member of the Authority representing the 

11 applicant. 

12 (c) CERTIFICATION.—An application for a grant or 

13 other assistance for a project shall be approved only on 

14 certification by the State member that the application for 

15 the project— 

16 (1) describes ways in which the project complies 

17 with any applicable State development plan; 

18 (2) meets applicable criteria under section 301; 

19 (3) provides adequate assurance that the pro20 posed project will be properly administered, oper21 ated, and maintained; and 

22 (4) otherwise meets the requirements of this 

23 Act. 

24 (d) VOTES FOR DECISIONS.—On certification by a 

25 State member of the Authority of an application for a 

26 grant or other assistance for a specific project under this 


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1 section, an affirmative vote of the Authority under section 

2 101(d) shall be required for approval of the application. 

3 SEC. 303. CONSENT OF STATES. 

4 Nothing in this Act requires any State to engage in 

5 or accept any program under this Act without the consent 

6 of the State. 

7 SEC. 304. RECORDS. 

8 (a) RECORDS OF THE AUTHORITY.— 

9 (1) IN GENERAL.—The Authority shall main10 tain accurate and complete records of all trans11 actions and activities of the Authority. 

12 (2) AVAILABILITY.—All records of the Author13 ity shall be available for audit and examination by 

14 the Comptroller General of the United States (in15 cluding authorized representatives of the Comp16 troller General). 

17 (b) RECORDS OF RECIPIENTS OF FEDERAL ASSIST18 ANCE.— 

19 (1) IN GENERAL.—A recipient of Federal funds 

20 under this Act shall, as required by the Authority, 

21 maintain accurate and complete records of trans22 actions and activities financed with Federal funds 

23 and report to the Authority on the transactions and 

24 activities. 


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1 (2) AVAILABILITY.—All records required under 

2 paragraph (1) shall be available for audit by the 

3 Comptroller General of the United States and the 

4 Authority (including authorized representatives of 

5 the Comptroller General and the Authority). 

6 (c) ANNUAL AUDIT.—The Comptroller General of the 

7 United States shall audit the activities, transactions, and 

8 records of the Authority on an annual basis. 

9 SEC. 305. ANNUAL REPORT. 

10 (a) IN GENERAL.—Not later than 180 days after the 

11 end of each fiscal year, the Authority shall submit to the 

12 President and to Congress a report describing the activi13 ties carried out under this Act. 

14 (b) CONTENTS.— 

15 (1) IN GENERAL.—The report shall include— 

16 (A) an evaluation of the progress of the 

17 Authority— 

18 (i) in meeting the goals set forth in 

19 the regional development plan and the 

20 State development plans; and 

21 (ii) in working with other Federal 

22 agencies and the border programs adminis23 tered by the Federal agencies; 

24 (B) examples of notable projects in each 

25 State; 


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1 (C) a description of all demonstration 

2 projects funded under section 306(b) during the 

3 fiscal year preceding submission of the report; 

4 and 

5 (D) any policy recommendations approved 

6 by the Authority. 

7 (2) INITIAL REPORT.—In addition to the con8 tents specified in paragraph (1), the initial report 

9 submitted under this section shall include— 

10 (A) a determination as to whether the cre11 ation of a loan fund to be administered by the 

12 Authority is necessary; and 

13 (B) if the Authority determines that a loan 

14 fund is necessary— 

15 (i) a request for the authority to es16 tablish a loan fund; and 

17 (ii) a description of the eligibility cri18 teria and performance requirements for the 

19 loans. 

20 SEC. 306. AUTHORIZATION OF APPROPRIATIONS. 

21 (a) IN GENERAL.—There are authorized to be appro22 priated to the Authority to carry out this Act, to remain 

23 available until expended— 

24 (1) $50,000,000 for fiscal year 2009; 

25 (2) $75,000,000 for fiscal year 2010; 


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1 (3) $90,000,000 for fiscal year 2011; 

2 (4) $92,000,000 for fiscal year 2012; and 

3 (5) $94,000,000 for fiscal year 2013. 

4 (b) DEMONSTRATION PROJECTS.—Of the funds 

5 made available under subsection (a), $5,000,000 for each 

6 fiscal year shall be available to the Authority to carry out 

7 section 207. 

8 SEC. 307. TERMINATION OF AUTHORITY. 

9 The authority provided by this Act terminates effec10 tive October 1, 2013. 

Æ 


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