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[107th Congress Public Law 149]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ149.107]

[[Page 65]]

         APPALACHIAN REGIONAL DEVELOPMENT ACT AMENDMENTS OF 2002

[[Page 116 STAT. 66]]

Public Law 107-149
107th Congress

                                 An Act

 
To reauthorize the Appalachian Regional Development Act of 1965, and for 
          other purposes. <<NOTE: Mar. 12, 2002 -  [S. 1206]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Appalachian Regional 
Development Act Amendments of 2002. 40 USC app. 1 note.>> assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Appalachian Regional Development Act 
Amendments of 2002''.

SEC. 2. PURPOSES.

    (a) This <<NOTE: 40 USC app. 2 note.>> Act.--The purposes of this 
Act are--
            (1) to reauthorize the Appalachian Regional Development Act 
        of 1965 (40 U.S.C. App.); and
            (2) to ensure that the people and businesses of the 
        Appalachian region have the knowledge, skills, and access to 
        telecommunication and technology services necessary to compete 
        in the knowledge-based economy of the United States.

    (b) Appalachian Regional Development Act of 1965.--Section 2 of the 
Appalachian Regional Development Act of 1965 (40 U.S.C. App.) <<NOTE: 40 
USC app. 2.>> is amended--
            (1) in subsection (b), by inserting after the third sentence 
        the following: ``Consistent with the goal described in the 
        preceding sentence, the Appalachian region should be able to 
        take advantage of eco-industrial development, which promotes 
        both employment and economic growth and the preservation of 
        natural resources.''; and
            (2) in subsection (c)(2)(B)(ii), by inserting ``, including 
        eco-industrial development technologies'' before the semicolon.

SEC. 3. FUNCTIONS OF THE COMMISSION.

    Section 102(a) of the Appalachian Regional Development Act of 1965 
(40 U.S.C. App.) <<NOTE: 40 USC app. 102.>> is amended--
            (1) in paragraph (5), by inserting ``, and support,'' after 
        ``formation of'';
            (2) in paragraph (7), by striking ``and'' at the end;
            (3) in paragraph (8), by striking the period at the end and 
        inserting a semicolon; and
            (4) by adding at the end the following:
            ``(9) encourage the use of eco-industrial development 
        technologies and approaches; and
            ``(10) seek to coordinate the economic development 
        activities of, and the use of economic development resources by, 
        Federal agencies in the region.''.

[[Page 116 STAT. 67]]

SEC. 4. INTERAGENCY COORDINATING COUNCIL ON APPALACHIA.

    Section 104 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App.) <<NOTE: 40 USC app. 104.>> is amended--
            (1) by striking ``The President'' and inserting ``(a) In 
        General.--The President''; and
            (2) by adding at the end the following:

    ``(b) Interagency Coordinating Council on Appalachia.--
            ``(1) Establishment.--In carrying out subsection (a), the 
        President shall establish an interagency council to be known as 
        the `Interagency Coordinating Council on Appalachia'.
            ``(2) Membership.--The Council shall be composed of--
                    ``(A) the Federal Cochairman, who shall serve as 
                Chairperson of the Council; and
                    ``(B) representatives of Federal agencies that carry 
                out economic development programs in the region.''.

SEC. 5. TELECOMMUNICATIONS AND TECHNOLOGY INITIATIVE.

    Title II of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App.) is amended by inserting after section 202 the following:

``SEC. 203. TELECOMMUNICATIONS AND TECHNOLOGY <<NOTE: 40 USC app. 
            203.>> INITIATIVE.

    ``(a) In General.--The Commission may provide technical assistance, 
make grants, enter into contracts, or otherwise provide funds to persons 
or entities in the region for projects--
            ``(1) to increase affordable access to advanced 
        telecommunications, entrepreneurship, and management 
        technologies or applications in the region;
            ``(2) to provide education and training in the use of 
        telecommunications and technology;
            ``(3) to develop programs to increase the readiness of 
        industry groups and businesses in the region to engage in 
        electronic commerce; or
            ``(4) to support entrepreneurial opportunities for 
        businesses in the information technology sector.

    ``(b) Source of Funding.--
            ``(1) In general.--Assistance under this section may be 
        provided--
                    ``(A) exclusively from amounts made available to 
                carry out this section; or
                    ``(B) from amounts made available to carry out this 
                section in combination with amounts made available under 
                any other Federal program or from any other source.
            ``(2) Federal share requirements specified in other laws.--
        Notwithstanding any provision of law limiting the Federal share 
        under any other Federal program, amounts made available to carry 
        out this section may be used to increase that Federal share, as 
        the Commission determines to be appropriate.

    ``(c) Cost Sharing for Grants.--Not more than 50 percent (or 80 
percent in the case of a project to be carried out in a county for which 
a distressed county designation is in effect under section 226) of the 
costs of any activity eligible for a grant under this section may be 
provided from funds appropriated to carry out this section.''.

[[Page 116 STAT. 68]]

SEC. 6. ENTREPRENEURSHIP INITIATIVE.

    Title II of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App.) is amended by inserting after section 203 (as added by 
section 5) the following:

``SEC. 204. ENTREPRENEURSHIP <<NOTE: 40 USC app. 204.>> INITIATIVE.

    ``(a) Definition of Business Incubator Service.--In this section, 
the term `business incubator service' means a professional or technical 
service necessary for the initiation and initial sustainment of the 
operations of a newly established business, including a service such 
as--
            ``(1) a legal service, including aid in preparing a 
        corporate charter, partnership agreement, or basic contract;
            ``(2) a service in support of the protection of intellectual 
        property through a patent, a trademark, or any other means;
            ``(3) a service in support of the acquisition and use of 
        advanced technology, including the use of Internet services and 
        Web-based services; and
            ``(4) consultation on strategic planning, marketing, or 
        advertising.

    ``(b) Projects To Be Assisted.--The Commission may provide technical 
assistance, make grants, enter into contracts, or otherwise provide 
funds to persons or entities in the region for projects--
            ``(1) to support the advancement of, and provide, 
        entrepreneurial training and education for youths, students, and 
        businesspersons;
            ``(2) to improve access to debt and equity capital by such 
        means as facilitating the establishment of development venture 
        capital funds;
            ``(3) to aid communities in identifying, developing, and 
        implementing development strategies for various sectors of the 
        economy; and
            ``(4)(A) to develop a working network of business 
        incubators; and
            ``(B) to support entities that provide business incubator 
        services.

    ``(c) Source of Funding.--
            ``(1) In general.--Assistance under this section may be 
        provided--
                    ``(A) exclusively from amounts made available to 
                carry out this section; or
                    ``(B) from amounts made available to carry out this 
                section in combination with amounts made available under 
                any other Federal program or from any other source.
            ``(2) Federal share requirements specified in other laws.--
        Notwithstanding any provision of law limiting the Federal share 
        under any other Federal program, amounts made available to carry 
        out this section may be used to increase that Federal share, as 
        the Commission determines to be appropriate.

    ``(d) Cost Sharing for Grants.--Not more than 50 percent (or 80 
percent in the case of a project to be carried out in a county for which 
a distressed county designation is in effect under section 226) of the 
costs of any activity eligible for a grant under this section may be 
provided from funds appropriated to carry out this section.''.

[[Page 116 STAT. 69]]

SEC. 7. REGIONAL SKILLS PARTNERSHIPS.

    Title II of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App.) is amended by inserting after section 204 (as added by 
section 6) the following:

``SEC. 205. REGIONAL SKILLS <<NOTE: 40 USC app. 205.>> PARTNERSHIPS.

    ``(a) Definition of Eligible Entity.--In this section, the term 
`eligible entity' means a consortium that--
            ``(1) is established to serve 1 or more industries in a 
        specified geographic area; and
            ``(2) consists of representatives of--
                    ``(A) businesses (or a nonprofit organization that 
                represents businesses);
                    ``(B) labor organizations;
                    ``(C) State and local governments; or
                    ``(D) educational institutions.

    ``(b) Projects To Be Assisted.--The Commission may provide technical 
assistance, make grants, enter into contracts, or otherwise provide 
funds to eligible entities in the region for projects to improve the job 
skills of workers for a specified industry, including projects for--
            ``(1) the assessment of training and job skill needs for the 
        industry;
            ``(2) the development of curricula and training methods, 
        including, in appropriate cases, electronic learning or 
        technology-based training;
            ``(3)(A) the identification of training providers; and
            ``(B) the development of partnerships between the industry 
        and educational institutions, including community colleges;
            ``(4) the development of apprenticeship programs;
            ``(5) the development of training programs for workers, 
        including dislocated workers; and
            ``(6) the development of training plans for businesses.

    ``(c) Administrative Costs.--An eligible entity may use not more 
than 10 percent of the funds made available to the eligible entity under 
subsection (b) to pay administrative costs associated with the projects 
described in subsection (b).
    ``(d) Source of Funding.--
            ``(1) In general.--Assistance under this section may be 
        provided--
                    ``(A) exclusively from amounts made available to 
                carry out this section; or
                    ``(B) from amounts made available to carry out this 
                section in combination with amounts made available under 
                any other Federal program or from any other source.
            ``(2) Federal share requirements specified in other laws.--
        Notwithstanding any provision of law limiting the Federal share 
        under any other Federal program, amounts made available to carry 
        out this section may be used to increase that Federal share, as 
        the Commission determines to be appropriate.

    ``(e) Cost Sharing for Grants.--Not more than 50 percent (or 80 
percent in the case of a project to be carried out in a county for which 
a distressed county designation is in effect under section 226) of the 
costs of any activity eligible for a grant under this section may be 
provided from funds appropriated to carry out this section.''.

[[Page 116 STAT. 70]]

SEC. 8. PROGRAM DEVELOPMENT CRITERIA.

    (a) Elimination of Growth Center Criteria.--Section 224(a)(1) of the 
Appalachian Regional Development Act of 1965 (40 U.S.C. App.) <<NOTE: 40 
USC app. 224.>> is amended by striking ``in an area determined by the 
State have a significant potential for growth or''.

    (b) Assistance to Distressed Counties and Areas.--Section 224 of the 
Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is amended 
by adding at the end the following:
    ``(d) Assistance to Distressed Counties and Areas.--For fiscal year 
2003 and each fiscal year thereafter, not less than 50 percent of the 
amount of grant expenditures approved by the Commission shall support 
activities or projects that benefit severely and persistently distressed 
counties and areas.''.
SEC. 9. GRANTS FOR ADMINISTRATIVE EXPENSES OF LOCAL DEVELOPMENT 
                    DISTRICTS.

    Section 302(a)(1)(A)(i) of the Appalachian Regional Development Act 
of 1965 (40 U.S.C. App.) <<NOTE: 40 USC app. 302.>> is amended by 
inserting ``(or, at the discretion of the Commission, 75 percent of such 
expenses in the case of a local development district that has a charter 
or authority that includes the economic development of a county or part 
of a county for which a distressed county designation is in effect under 
section 226)'' after ``such expenses''.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    Section 401 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App.) <<NOTE: 40 USC app. 401.>> is amended to read as follows:

``SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--In addition to amounts authorized by section 201 
and other amounts made available for the Appalachian development highway 
system program, there are authorized to be appropriated to the 
Commission to carry out this Act--
            ``(1) $88,000,000 for each of fiscal years 2002 through 
        2004;
            ``(2) $90,000,000 for fiscal year 2005; and
            ``(3) $92,000,000 for fiscal year 2006.

    ``(b) Telecommunications and Technology Initiative.--Of the amounts 
made available under subsection (a), the following amounts may be made 
available to carry out section 203:
            ``(1) $10,000,000 for fiscal year 2002.
            ``(2) $8,000,000 for fiscal year 2003.
            ``(3) $5,000,000 for each of fiscal years 2004 through 2006.

    ``(c) Availability.--Sums made available under subsection (a) shall 
remain available until expended.''.

SEC. 11. ADDITION OF COUNTIES TO APPALACHIAN REGION.

    Section 403 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App.) <<NOTE: 40 USC app. 403.>> is amended--
            (1) in the third undesignated paragraph (relating to 
        Kentucky)--
                    (A) by inserting ``Edmonson,'' after 
                ``Cumberland,'';
                    (B) by inserting ``Hart,'' after ``Harlan,''; and
                    (C) by striking ``Montogomery,'' and inserting 
                ``Montgomery,''; and
            (2) in the fifth undesignated paragraph (relating to 
        Mississippi)--
                    (A) by inserting ``Montgomery,'' after ``Monroe,''; 
                and
                    (B) by inserting ``Panola,'' after ``Oktibbeha,''.

[[Page 116 STAT. 71]]

SEC. 12. TERMINATION.

    Section 405 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App.) <<NOTE: 40 USC app. 405.>> is amended by striking ``2001'' 
and inserting ``2006''.

SEC. 13. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Section 101(b) of the Appalachian Regional Development Act of 
1965 (40 U.S.C. App.) <<NOTE: 40 USC app. 101.>> is amended in the third 
sentence by striking ``implementing investment program'' and inserting 
``strategy statement''.

    (b) Section 106(7) of the Appalachian Regional Development Act of 
1965 (40 U.S.C. App.) <<NOTE: 40 USC app. 106.>> is amended by striking 
``expiring no later than September 30, 2001''.

    (c) Sections 202, 214, and 302(a)(1)(C) of the Appalachian Regional 
Development Act of 1965 (40 U.S.C. App.) <<NOTE: 40 USC app. 202, 214, 
302.>> are amended by striking ``grant-in-aid programs'' each place it 
appears and inserting ``grant programs''.

    (d) Section 202(a) of the Appalachian Regional Development Act of 
1965 (40 U.S.C. App.) <<NOTE: 40 USC app. 202.>> is amended in the 
second sentence by striking ``title VI of the Public Health Service Act 
(42 U.S.C. 291-291o), the Mental Retardation Facilities and Community 
Mental Health Centers Construction Act of 1963 (77 Stat. 282),'' and 
inserting ``title VI of the Public Health Service Act (42 U.S.C. 291 et 
seq.), the Developmental Disabilities Assistance and Bill of Rights Act 
of 2000 (42 U.S.C. 15001 et seq.),''.

    (e) Section 207(a) of the Appalachian Regional Development Act of 
1965 (40 U.S.C. App.) <<NOTE: 40 USC app. 207.>> is amended by striking 
``section 221 of the National Housing Act, section 8 of the United 
States Housing Act of 1937, section 515 of the Housing Act of 1949,'' 
and inserting ``section 221 of the National Housing Act (12 U.S.C. 
1715l), section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f), section 515 of the Housing Act of 1949 (42 U.S.C. 1485),''.

    (f) Section 214 of the Appalachian Regional Development Act of 1965 
(40 U.S.C. App.) <<NOTE: 40 USC app. 214.>> is amended--
            (1) in the section heading, by striking ``grant-in-aid'' and 
        inserting ``grant'';
            (2) in subsection (a)--
                    (A) by striking ``grant-in-aid Act'' each place it 
                appears and inserting ``Act'';
                    (B) in the first sentence, by striking ``grant-in-
                aid Acts'' and inserting ``Acts'';
                    (C) by striking ``grant-in-aid program'' each place 
                it appears and inserting ``grant program''; and
                    (D) by striking the third sentence;
            (3) by striking subsection (c) and inserting the following:

    ``(c) Definition of Federal Grant Program.--
            ``(1) In general.--In this section, the term `Federal grant 
        program' means any Federal grant program authorized by this Act 
        or any other Act that provides assistance for--
                    ``(A) the acquisition or development of land;
                    ``(B) the construction or equipment of facilities; 
                or
                    ``(C) any other community or economic development or 
                economic adjustment activity.
            ``(2) Inclusions.--In this section, the term `Federal grant 
        program' includes a Federal grant program such as a Federal 
        grant program authorized by--

[[Page 116 STAT. 72]]

                    ``(A) the Consolidated Farm and Rural Development 
                Act (7 U.S.C. 1921 et seq.);
                    ``(B) the Land and Water Conservation Fund Act of 
                1965 (16 U.S.C. 460l-4 et seq.);
                    ``(C) the Watershed Protection and Flood Prevention 
                Act (16 U.S.C. 1001 et seq.);
                    ``(D) the Carl D. Perkins Vocational and Technical 
                Education Act of 1998 (20 U.S.C. 2301 et seq.);
                    ``(E) the Federal Water Pollution Control Act (33 
                U.S.C. 1251 et seq.);
                    ``(F) title VI of the Public Health Service Act (42 
                U.S.C. 291 et seq.);
                    ``(G) sections 201 and 209 of the Public Works and 
                Economic Development Act of 1965 (42 U.S.C. 3141, 3149);
                    ``(H) title I of the Housing and Community 
                Development Act of 1974 (42 U.S.C. 5301 et seq.); or
                    ``(I) part IV of title III of the Communications Act 
                of 1934 (47 U.S.C. 390 et seq.).
            ``(3) Exclusions.--In this section, the term `Federal grant 
        program' does not include--
                    ``(A) the program for construction of the 
                Appalachian development highway system authorized by 
                section 201;
                    ``(B) any program relating to highway or road 
                construction authorized by title 23, United States Code; 
                or
                    ``(C) any other program under this Act or any other 
                Act to the extent that a form of financial assistance 
                other than a grant is authorized.''; and
            (4) by striking subsection (d).

    (g) Section 224(a)(2) of the Appalachian Regional Development Act of 
1965 (40 U.S.C. App.) <<NOTE: 40 USC app. 224.>> is amended by striking 
``relative per capita income'' and inserting ``per capita market 
income''.

    (h) Section 225 of the Appalachian Regional Development Act of 1965 
(40 U.S.C. <<NOTE: 40 USC app. 225.>> App.)--
            (1) in subsection (a)(3), by striking ``development 
        program'' and inserting ``development strategies''; and
            (2) in subsection (c)(2), by striking ``development 
        programs'' and inserting ``development strategies''.

    (i) Section 303 of the Appalachian Regional Development Act of 1965 
(40 U.S.C. App.) <<NOTE: 40 USC app. 303.>> is amended--
            (1) in the section heading, by striking ``investment 
        programs'' and inserting ``strategy statements'';
            (2) in the first sentence, by striking ``implementing 
        investments programs'' and inserting ``strategy statements''; 
        and
            (3) by striking ``implementing investment program'' each 
        place it appears and inserting ``strategy statement''.

[[Page 116 STAT. 73]]

    (j) Section 403 of the Appalachian Regional Development Act of 1965 
(40 U.S.C. App.) <<NOTE: 40 USC app. 403.>> is amended in the next-to-
last undesignated paragraph by striking ``Committee on Public Works and 
Transportation'' and inserting ``Committee on Transportation and 
Infrastructure''.

    Approved March 12, 2002.

LEGISLATIVE HISTORY--S. 1206 (H.R. 2501):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 107-180 accompanying H.R. 2501 (Comm. on 
Transportation and Infrastructure).
SENATE REPORTS: No. 107-132 (Comm. on Environment and Public Works).
CONGRESSIONAL RECORD, Vol. 148 (2002):
            Feb. 8, considered and passed Senate.
            Feb. 26, considered and passed House.

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