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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3196 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                H. R. 3196

   To amend title 40, United States Code, to provide a comprehensive 
  regional approach to economic and infrastructure development in the 
            most severely distressed regions in the Nation.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 29, 2003

  Mr. Oberstar (for himself and Ms. Norton) 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 amend title 40, United States Code, to provide a comprehensive 
  regional approach to economic and infrastructure development in the 
            most severely distressed regions in the Nation.

    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 ``Regional Economic and Infrastructure 
Development Act of 2003''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) between January 2001 and September 2003, the number of 
        unemployed workers in the United States increased from 
        5,900,000 to 8,900,000, an increase of 50 percent;
            (2) people living in economically distressed, 
        underdeveloped regions are among the most affected by the 
        economic downturn;
            (3) certain regions of the Nation, including Appalachia, 
        the Mississippi Delta Region, the Northern Great Plains Region, 
        the Southeast Crescent Region, the Southwest Border Region, and 
        rural Alaska, have suffered from chronic distress far above the 
        national average;
            (4) an economically distressed region can suffer 
        unemployment and poverty at a rate that is 150 percent of the 
        national average; and
            (5) regional commissions are unique Federal-State 
        partnerships that can provide targeted resources to alleviate 
        pervasive economic distress.
    (b) Purposes.--The purposes of this Act are--
            (1) to provide a comprehensive regional approach to 
        economic and infrastructure development in the most severely 
        distressed regions in the Nation; and
            (2) to ensure that the most severely distressed regions in 
        the Nation have the necessary tools to develop the basic 
        building blocks for economic development, such as 
        transportation and basic public infrastructure, job skills 
        training, and business development.

SEC. 3. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT.

    (a) In General.--Title 40, United States Code, is amended--
            (1) by redesignating subtitle V as subtitle VI; and
            (2) by inserting after subtitle IV the following:

     ``SUBTITLE V--REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT

``Chapter                                                          Sec.
``151. GENERAL PROVISIONS...................................      15101
``153. REGIONAL COMMISSIONS.................................      15301
``155. FINANCIAL ASSISTANCE.................................      15501
``157. ADMINISTRATIVE PROVISIONS............................      15701

                   ``CHAPTER 151--GENERAL PROVISIONS

``Sec.
``15101. Definitions.
``Sec. 15101. Definitions
    ``In this subtitle, the following definitions apply:
            ``(1) Commission.--The term `Commission' means a Commission 
        established under section 15301.
            ``(2) Local development district.--The term `local 
        development district' means an entity that--
                    ``(A)(i) is an economic development district that 
                is--
                            ``(I) in existence on the date of enactment 
                        of this chapter; and
                            ``(II) located in the region; or
                    ``(ii) if an entity described in clause (i) does 
                not exist--
                            ``(I) is organized and operated in a manner 
                        that ensures broad-based community 
                        participation and an effective opportunity for 
                        local officials, community leaders, and the 
                        public to contribute to the development and 
                        implementation of programs in the region;
                            ``(II) is governed by a policy board with 
                        at least a simple majority of members 
                        consisting of--
                                    ``(aa) elected officials; or
                                    ``(bb) designees or employees of a 
                                general purpose unit of local 
                                government that have been appointed to 
                                represent the unit of local government; 
                                and
                            ``(III) is certified by the Governor or 
                        appropriate State officer as having a charter 
                        or authority that includes the economic 
                        development of counties, portions of counties, 
                        or other political subdivisions within the 
                        region; and
                    ``(B) has not, as certified by the Federal 
                Cochairperson--
                            ``(i) inappropriately used Federal grant 
                        funds from any Federal source; or
                            ``(ii) appointed an officer who, during the 
                        period in which another entity inappropriately 
                        used Federal grant funds from any Federal 
                        source, was an officer of the other entity.
            ``(3) Federal grant program.--The term `Federal grant 
        program' means a Federal grant program to provide assistance in 
        carrying out economic and community development activities.
            ``(4) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(5) Nonprofit entity.--The term `nonprofit entity' means 
        any entity with tax-exempt or nonprofit status, as defined by 
        the Internal Revenue Service, that has been formed for the 
        purpose of economic development.
            ``(6) Region.--The term `region' means the area covered by 
        a Commission as described in subchapter II of chapter 157.

                  ``CHAPTER 153--REGIONAL COMMISSIONS

``Sec.
``15301. Establishment, membership, and employees.
``15302. Decisions.
``15303. Functions.
``15304. Administrative powers and expenses.
``15305. Meetings.
``15306. Personal financial interests.
``15307. Tribal representation on Northern Great Plains Regional 
                            Commission.
``15308. Tribal participation.
``15309. Annual report.
``Sec. 15301. Establishment, membership, and employees
    ``(a) Establishment.--There are established the following regional 
Commissions:
            ``(1) The Delta Regional Commission.
            ``(2) The Northern Great Plains Regional Commission.
            ``(3) The Southeast Crescent Regional Commission.
            ``(4) The Southwest Border Regional Commission.
    ``(b) Membership.--
            ``(1) Federal and state members.--Each Commission shall be 
        composed of the following members:
                    ``(A) A Federal Cochairperson, to be appointed by 
                the President, by and with the advice and consent of 
                the Senate.
                    ``(B) The Governor of each participating State in 
                the region of the Commission.
            ``(2) Alternate members.--
                    ``(A) Alternate federal cochairperson.--The 
                President shall appoint an alternate Federal 
                Cochairperson for each Commission. The alternate 
                Federal Cochairperson, when not actively serving as an 
                alternate for the Federal Cochairperson, shall perform 
                such functions and duties as are delegated by the 
                Federal Cochairperson.
                    ``(B) State alternates.--The State member of a 
                participating State may have a single alternate, who 
                shall be appointed by the Governor of the State from 
                among the members of the Governor's cabinet or personal 
                staff.
                    ``(C) Voting.--An alternate member shall vote in 
                the case of the absence, death, disability, removal, or 
                resignation of the Federal or State member for which 
                the alternate member is an alternate.
            ``(3) Cochairpersons.--A Commission shall be headed by--
                    ``(A) the Federal Cochairperson, who shall serve as 
                a liaison between the Federal Government and the 
                Commission; and
                    ``(B) a State Cochairperson, who shall be a 
                Governor of a participating State in the region and 
                shall be elected by the State members for a term of not 
                less than 1 year.
            ``(4) Consecutive terms.--A State member may not be elected 
        to serve as State Cochairperson for more than 2 consecutive 
        terms.
    ``(c) Compensation.--
            ``(1) Federal cochairpersons.--Each Federal Cochairperson 
        shall be compensated by the Federal Government at level III of 
        the Executive Schedule as set out in section 5314 of title 5.
            ``(2) Alternate federal cochairpersons.--Each Federal 
        Cochairperson's alternate shall be compensated by the Federal 
        Government at level V of the Executive Schedule as set out in 
        section 5316 of title 5.
            ``(3) State members and alternates.--Each State member and 
        alternate shall be compensated by the State that they represent 
        at the rate established by the laws of that State.
    ``(d) Executive Director and Staff.--
            ``(1) In general.--A Commission shall appoint and fix the 
        compensation of an executive director and such other personnel 
        as are necessary to enable the Commission to carry out its 
        duties. Compensation under this paragraph may not exceed the 
        maximum rate of basic pay established for the Senior Executive 
        Service under section 5382 of title 5, including any applicable 
        locality-based comparability payment that may be authorized 
        under section 5304(h)(2)(C) of that title.
            ``(2) Executive director.--The executive director shall be 
        responsible for carrying out the administrative duties of the 
        Commission, directing the Commission staff, and such other 
        duties as the Commission may assign.
    ``(e) No Federal Employee Status.--No member, alternate, officer, 
or employee of a Commission (other than the Federal Cochairperson, the 
alternate Federal Cochairperson, staff of the Federal Cochairperson, 
and any Federal employee detailed to the Commission) shall be 
considered to a Federal employee for any purpose.
``Sec. 15302. Decisions
    ``(a) Requirements for Approval.--Except as provided in section 
15304(c)(3), decisions by the Commission shall require the affirmative 
vote of the Federal Cochairperson and a majority of the State members 
(exclusive of members representing States delinquent under section 
15304(c)(3)(C)).
    ``(b) Consultation.--In matters coming before the Commission, the 
Federal Cochairperson shall, to the extent practicable, consult with 
the Federal departments and agencies having an interest in the subject 
matter.
    ``(c) Quorums.--A Commission shall determine what constitutes a 
quorum for Commission meetings; except that--
            ``(1) any quorum shall include the Federal Cochairperson or 
        the alternate Federal Cochairperson; and
            ``(2) a State alternate member shall not be counted toward 
        the establishment of a quorum.
    ``(d) Projects and Grant Proposals.--The approval of project and 
grant proposals shall be a responsibility of each Commission and shall 
be carried out in accordance with section 15503.
``Sec. 15303. Functions
    ``A Commission shall--
            ``(1) assess the needs and assets of its region based on 
        available research, demonstration projects, investigations, 
        assessments, and evaluations of the region prepared by Federal, 
        State, and local agencies, universities, local development 
        districts, and other nonprofit groups;
            ``(2) develop, on a continuing basis, comprehensive and 
        coordinated economic and infrastructure development strategies 
        to establish priorities and approve grants for the economic 
        development of its region, giving due consideration to other 
        Federal, State, and local planning and development activities 
        in the region;
            ``(3) not later than 1 year after the date of enactment of 
        this section, and after taking into account State plans 
        developed under section 15502, establish priorities in an 
        economic and infrastructure development plan for its region, 
        including 5-year regional outcome targets;
            ``(4)(A) enhance the capacity of, and provide support for, 
        local development districts in its region; or
            ``(B) if no local development district exists in an area in 
        a participating State in the region, foster the creation of a 
        local development district;
            ``(5) encourage private investment in industrial, 
        commercial, and other economic development projects in its 
        region;
            ``(6) cooperate with and assist State governments with the 
        preparation of economic and infrastructure development plans 
        and programs for participating States;
            ``(7) formulate and recommend to the Governors and 
        legislatures of States that participate in the Commission forms 
        of interstate cooperation and, where appropriate, international 
        cooperation; and
            ``(8) work with State and local agencies in developing 
        appropriate model legislation to enhance local and regional 
        economic development.
``Sec. 15304. Administrative powers and expenses
    ``(a) Powers.--In carrying out its duties under this subtitle, a 
Commission may--
            ``(1) hold such hearings, sit and act at such times and 
        places, take such testimony, receive such evidence, and print 
        or otherwise reproduce and distribute a description of the 
        proceedings and reports on actions by the Commission as the 
        Commission considers appropriate;
            ``(2) authorize, through the Federal or State Cochairperson 
        or any other member of the Commission designated by the 
        Commission, the administration of oaths if the Commission 
        determines that testimony should be taken or evidence received 
        under oath;
            ``(3) request from any Federal, State, or local agency such 
        information as may be available to or procurable by the agency 
        that may be of use to the Commission in carrying out the duties 
        of the Commission;
            ``(4) adopt, amend, and repeal bylaws and rules governing 
        the conduct of business and the performance of duties by the 
        Commission;
            ``(5) request the head of any Federal agency, State agency, 
        or local government to detail to the Commission such personnel 
        as the Commission requires to carry out its duties, each such 
        detail to be without loss of seniority, pay, or other employee 
        status;
            ``(6) provide for coverage of Commission employees in a 
        suitable retirement and employee benefit system by making 
        arrangements or entering into contracts with any participating 
        State government or otherwise providing retirement and other 
        employee coverage;
            ``(7) accept, use, and dispose of gifts or donations or 
        services or real, personal, tangible, or intangible property;
            ``(8) enter into and perform such contracts, cooperative 
        agreements, or other transactions as are necessary to carry out 
        Commission duties, including any contracts or cooperative 
        agreements with a department, agency, or instrumentality of the 
        United States, a State (including a political subdivision, 
        agency, or instrumentality of the State), or a person, firm, 
        association, or corporation; and
            ``(9) maintain a government relations office in the 
        District of Columbia and establish and maintain a central 
        office at such location in its region as the Commission may 
        select.
    ``(b) Federal Agency Cooperation.--A Federal agency shall--
            ``(1) cooperate with a Commission; and
            ``(2) provide, to the extent practicable, on request of the 
        Federal Cochairperson, appropriate assistance in carrying out 
        this subtitle, in accordance with applicable Federal laws 
        (including regulations).
    ``(c) Administrative Expenses.--
            ``(1) In general.--Subject to paragraph (2), the 
        administrative expenses of a Commission shall be paid--
                    ``(A) by the Federal Government, in an amount equal 
                to 50 percent of the administrative expenses of the 
                Commission; and
                    ``(B) by the States participating in the 
                Commission, in an amount equal to 50 percent of the 
                administrative expenses.
            ``(2) Expenses of the federal cochairperson.--All expenses 
        of the Federal Cochairperson, including expenses of the 
        alternate and staff of the Federal Cochairperson, shall be paid 
        by the Federal Government.
            ``(3) State share.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                share of administrative expenses of a Commission to be 
                paid by each State of the Commission shall be 
                determined by a unanimous vote of the State members of 
                the Commission.
                    ``(B) No federal participation.--The Federal 
                Cochairperson shall not participate or vote in any 
                decision under subparagraph (A).
                    ``(C) Delinquent states.--During any period in 
                which a State is more than 1 year delinquent in payment 
                of the State's share of administrative expenses of the 
                Commission under this subsection--
                            ``(i) no assistance under this subtitle 
                        shall be provided to the State (including 
                        assistance to a political subdivision or a 
                        resident of the State) for any project not 
                        approved as of the date of the commencement of 
                        the delinquency; and
                            ``(ii) no member of the Commission from the 
                        State shall participate or vote in any action 
                        by the Commission.
            ``(4) Effect on assistance.--A State's share of 
        administrative expenses of a Commission under this subsection 
        shall not be taken into consideration when determining the 
        amount of assistance provided to the State under this subtitle.
``Sec. 15305. Meetings
    ``(a) Initial Meeting.--Each Commission shall hold an initial 
meeting not later than 180 days after the date of enactment of this 
section.
    ``(b) Annual Meeting.--Each Commission shall conduct at least 1 
meeting each year with the Federal Cochairperson and at least a 
majority of the State members present.
    ``(c) Additional Meetings.--Each Commission shall conduct 
additional meetings at such times as it determines and may conduct such 
meetings by electronic means.
``Sec. 15306. Personal financial interests
    ``(a) Conflicts of Interest.--
            ``(1) No role allowed.--Except as permitted by paragraph 
        (2), an individual who is a State member or alternate, or an 
        officer or employee of a Commission, shall not participate 
        personally and substantially as a member, alternate, officer, 
        or employee of the Commission, through decision, approval, 
        disapproval, recommendation, request for a ruling, or other 
        determination, contract, claim, controversy, or other matter in 
        which, to the individual's knowledge, any of the following has 
        a financial interest:
                    ``(A) The individual.
                    ``(B) The individual's spouse, minor child, or 
                partner.
                    ``(C) An organization (except a State or political 
                subdivision of a State) in which the individual is 
                serving as an officer, director, trustee, partner, or 
                employee.
                    ``(D) Any person or organization with whom the 
                individual is negotiating or has any arrangement 
                concerning prospective employment.
            ``(2) Exception.--Paragraph (1) shall not apply if the 
        individual, in advance of the proceeding, application, request 
        for a ruling or other determination, contract, claim 
        controversy, or other particular matter presenting a potential 
        conflict of interest--
                    ``(A) advises the Commission of the nature and 
                circumstances of the matter presenting the conflict of 
                interest;
                    ``(B) makes full disclosure of the financial 
                interest; and
                    ``(C) receives a written decision of the Commission 
                that the interest is not so substantial as to be 
                considered likely to affect the integrity of the 
                services that the Commission may expect from the 
                individual.
            ``(3) Violation.--An individual violating this subsection 
        shall be fined under title 18, imprisoned for not more than 1 
        year, or both.
    ``(b) State Member or Alternate.--A State member or alternate 
member may not receive any salary, or any contribution to, or 
supplementation of, salary, for services on a Commission from a source 
other than the State of the member or alternate.
    ``(c) Detailed Employees.--
            ``(1) In general.--No person detailed to serve a Commission 
        shall receive any salary, or any contribution to, or 
        supplementation of, salary, for services provided to the 
        Commission from any source other than the State, local, or 
        intergovernmental department or agency from which the person 
        was detailed to the Commission.
            ``(2) Violation.--Any person that violates this subsection 
        shall be fined under title 18, imprisoned not more than 1 year, 
        or both.
    ``(d) Federal Cochairman, Alternate to Federal Cochairman, and 
Federal Officers and Employees.--The Federal Cochairman, the alternate 
to the Federal Cochairman, and any federal officer or employee detailed 
to duty with the Commission are not subject to this section but remain 
subject to sections 202 through 209 of title 18.
    ``(e) Rescission.--A Commission may declare void any contract, 
loan, or grant of or by the Commission in relation to which the 
Commission determines that there has been a violation of any provision 
under subsection (a)(1), (b), or (c), or any of the provisions of 
sections 202 through 209 of title 18.
``Sec. 15307. Tribal representation on Northern Great Plains Regional 
              Commission
    ``(a) Tribal Cochairperson.--
            ``(1) Appointment.--In addition to the members specified in 
        section 15301(b)(1), the membership of the Northern Great 
        Plains Regional Commission shall include a Tribal 
        Cochairperson, to be appointed by the President, by and with 
        the advice and consent of the Senate. The Tribal Cochairperson 
        shall be a member of an Indian tribe in the Commission's 
        region.
            ``(2) Duties.--In addition to the Federal Cochairperson and 
        State Cochairperson, the Commission shall be headed by the 
        Tribal Cochairperson, who shall serve as a liaison between the 
        governments of Indian tribes in the region and the Commission.
    ``(b) Alternate Tribal Cochairperson.--
            ``(1) Appointment.--The President shall appoint an 
        alternate to the Tribal Cochairperson.
            ``(2) Duties.--The alternate Tribal Cochairperson, when not 
        actively serving as an alternate for the Tribal Cochairperson, 
shall perform such functions and duties as are delegated by the Tribal 
Cochairperson.
            ``(3) Voting.--The alternate Tribal Cochairperson shall 
        vote in the case of the absence, death, disability, removal, or 
        resignation of the Tribal Cochairperson.
    ``(c) Compensation.--
            ``(1) Tribal cochairperson.--The Tribal Cochairperson shall 
        be compensated by the Federal Government at level III of the 
        Executive Schedule as set out in section 5314 of title 5.
            ``(2) Alternate tribal cochairperson.--The Tribal 
        Cochairperson's alternate shall be compensated by the Federal 
        Government at level V of the Executive Schedule as set out in 
        section 5316 of title 5.
    ``(d) Expenses of Tribal Cochairperson.--All expenses of the Tribal 
Cochairperson, including expenses of the alternate and staff of the 
Tribal Cochairperson, shall be paid by the Federal Government.
    ``(e) Duties and Privileges.--Except as provided in subsections (c) 
and (d), the Tribal Cochairperson shall have the same duties and 
privileges as the State Cochairperson.
``Sec. 15308. Tribal participation
    ``Governments of Indian tribes in the region of the Northern Great 
Plains Regional Commission or the Southwest Border Regional Commission 
shall be allowed to participate in matters before that Commission in 
the same manner and to the same extent as State agencies and 
instrumentalities in the region.
``Sec. 15309. Annual report
    ``(a) In General.--Not later than 90 days after the last day of 
each fiscal year, each Commission shall submit to the President and 
Congress a report on the activities carried out by the Commission under 
this subtitle in the fiscal year.
    ``(b) Contents.--The report shall include--
            ``(1) a description of the criteria used by the Commission 
        to designate counties under section 15702 and a list of the 
        counties designated in each category;
            ``(2) an evaluation of the progress of the Commission in 
        meeting the goals identified in the Commission's economic and 
        infrastructure development plan under section 15303 and State 
        economic and infrastructure development plans under section 
        15502;
            ``(3) any policy recommendations approved by the 
        Commission.

                  ``CHAPTER 155--FINANCIAL ASSISTANCE

``Sec.
``15501. Economic and infrastructure development grants.
``15502. Comprehensive economic and infrastructure development plans.
``15503. Approval of applications for assistance.
``15504. Program development criteria.
``15505. Local development districts and organizations.
``15506. Supplements to Federal grant programs.
``Sec. 15501. Economic and infrastructure development grants
    ``(a) In General.--A Commission may make grants to States and local 
governments, Indian tribes, and public and nonprofit organizations for 
projects, approved in accordance with section 15503--
            ``(1) to develop the transportation infrastructure of its 
        region;
            ``(2) to develop the basic public infrastructure of its 
        region;
            ``(3) to develop the telecommunications infrastructure of 
        its region;
            ``(4) to assist its region in obtaining job skills 
        training, skills development and employment-related education, 
        entrepreneurship, technology, and business development;
            ``(5) to provide assistance to severely distressed and 
        underdeveloped areas of its region that lack financial 
        resources for improving basic health care and other public 
        services; and
            ``(6) to otherwise achieve the purposes of this subtitle.
    ``(b) Allocation of Funds.--A Commission shall allocate at least 50 
percent of any grant amounts provided by the Commission in a fiscal 
year for projects described in paragraphs (1) through (3) of subsection 
(a).
    ``(c) Sources of Grants.--Grant amounts may be provided entirely 
from appropriations to carry out this subtitle, in combination with 
amounts available under other Federal grant programs, or from any other 
source.
    ``(d) Maximum Commission Contributions.--
            ``(1) In general.--Subject to paragraphs (2) and (3), the 
        Commission may contribute not more than 50 percent of a project 
        or activity cost eligible for financial assistance under this 
        section from amounts appropriated to carry out this subtitle.
            ``(2) Distressed counties.--The maximum Commission 
        contribution for a project or activity to be carried out in a 
        county for which a distressed county designation is in effect 
        under section 15702 may be increased to 80 percent.
            ``(3) Special rule for regional projects.--A Commission may 
        increase to 60 percent under paragraph (1) and 90 percent under 
        paragraph (2) the maximum Commission contribution for a project 
        or activity if the Commission determines in accordance with 
        section 15302(a) that the project or activity will bring 
        significant interstate or multicounty benefits to a region.
    ``(e) Maintenance of Effort.--Funds may be provided by a Commission 
for a program or project in a State under this section only if the 
Commission determines that the level of Federal or State financial 
assistance provided under a law other than this subtitle, for the same 
type of program or project in the same area of the State within region, 
will not be reduced as a result of funds made available by this 
subtitle.
    ``(f) No Relocation Assistance.--Financial assistance authorized by 
this section may not be used to assist a person or entity in relocating 
from one area to another.
``Sec. 15502. Comprehensive economic and infrastructure development 
              plans
    ``(a) State Plans.--In accordance with policies established by a 
Commission, each State member of the Commission shall submit a 
comprehensive economic and infrastructure development plan for the area 
of the region represented by the State member.
    ``(b) Content of Plan.--A State economic and infrastructure 
development plan shall reflect the goals, objectives, and priorities 
identified in any applicable economic and infrastructure development 
plan developed by a Commission under section 15303.
    ``(c) Consultation With Interested Local Parties.--In carrying out 
the development planning process (including the selection of programs 
and projects for assistance), a State shall--
            ``(1) consult with local development districts, local units 
        of government, and local colleges and universities; and
            ``(2) take into consideration the goals, objectives, 
        priorities, and recommendations of the entities described in 
        paragraph (1).
    ``(d) Public Participation.--
            ``(1) In general.--A Commission and applicable State and 
        local development districts shall encourage and assist, to the 
        maximum extent practicable, public participation in the 
        development, revision, and implementation of all plans and 
        programs under this subtitle.
            ``(2) Guidelines.--A Commission shall develop guidelines 
        for providing public participation, including public hearings.
``Sec. 15503. Approval of applications for assistance
    ``(a) Evaluation by State Member.--An application to a Commission 
for a grant or any other assistance for a project under this subtitle 
shall be made through, and evaluated for approval by, the State member 
of the Commission representing the applicant.
    ``(b) Certification.--An application to a Commission for a grant or 
other assistance for a project under this subtitle shall be eligible 
for assistance only on certification by the State member of the 
Commission representing the applicant that the application for the 
project--
            ``(1) describes ways in which the project complies with any 
        applicable State economic and infrastructure development plan;
            ``(2) meets applicable criteria under section 15504;
            ``(3) adequately ensures that the project will be properly 
        administered, operated, and maintained; and
            ``(4) otherwise meets the requirements for assistance under 
        this subtitle.
    ``(c) Votes for Decisions.--On certification by a State member of a 
Commission of an application for a grant or other assistance for a 
specific project under this section, an affirmative vote of the 
Commission under section 15302 shall be required for approval of the 
application.
``Sec. 15504. Program development criteria
    ``(a) In General.--In considering programs and projects to be 
provided assistance by a Commission under this subtitle, and in 
establishing a priority ranking of the requests for assistance provided 
to the Commission, the Commission shall follow procedures that ensure, 
to the maximum extent practicable, consideration of--
            ``(1) the relationship of the project or class of projects 
        to overall regional development;
            ``(2) the per capita income and poverty and unemployment 
        and outmigration rates in an area;
            ``(3) the financial resources available to the applicants 
        for assistance seeking to carry out the project, with emphasis 
        on ensuring that projects are adequately financed to maximize 
        the probability of successful economic development;
            ``(4) the importance of the project or class of projects in 
        relation to the other projects or classes of projects that may 
        be in competition for the same funds;
            ``(5) the prospects that the project for which assistance 
        is sought will improve, on a continuing rather than a temporary 
        basis, the opportunities for employment, the average level of 
        income, or the economic development of the area to be served by 
        the project; and
            ``(6) the extent to which the project design provides for 
        detailed outcome measurements by which grant expenditures and 
        the results of the expenditures may be evaluated.
``Sec. 15505. Local development districts and organizations
    ``(a) Grants to Local Development Districts.--Subject to the 
requirements of this section, a Commission may make grants to a local 
development district to assist in the payment of development planning 
and administrative expenses.
    ``(b) Conditions for Grants.--
            ``(1) Maximum amount.--The amount of a grant awarded under 
        this section may not exceed 80 percent of the administrative 
        and planning expenses of the local development district 
        receiving the grant.
            ``(2) Maximum period for state agencies.--In the case of a 
        State agency certified as a local development district, a grant 
        may not be awarded to the agency under this section for more 
        than 3 fiscal years.
            ``(3) Local share.--The contributions of a local 
        development district for administrative expenses may be in cash 
        or in kind, fairly evaluated, including space, equipment, and 
        services.
    ``(c) Duties of Local Development Districts.--A local development 
district shall--
            ``(1) operate as a lead organization serving multicounty 
        areas in the region at the local level;
            ``(2) assist the Commission in carrying out outreach 
        activities for local governments, community development groups, 
        the business community, and the public;
            ``(3) serve as a liaison between State and local 
        governments, nonprofit organizations (including community-based 
        groups and educational institutions), the business community, 
        and citizens; and
            ``(4) assist the individuals and entities described in 
        paragraph (3) in identifying, assessing, and facilitating 
        projects and programs to promote the economic development of 
        the region.
``Sec. 15506. Supplements to Federal grant programs
    ``(a) Finding.--Congress finds that certain States and local 
communities of the region, including local development districts, may 
be unable to take maximum advantage of Federal grant programs for which 
the States and communities are eligible because--
            ``(1) they lack the economic resources to provide the 
        required matching share; or
            ``(2) there are insufficient funds available under the 
        applicable Federal law with respect to a project to be carried 
        out in the region.
    ``(b) Federal Grant Program Funding.--A Commission, with the 
approval of the Federal Cochairperson, may use amounts made available 
to carry out this subtitle--
            ``(1) for any part of the basic Federal contribution to 
        projects or activities under the Federal grant programs 
        authorized by Federal laws; and
            ``(2) to increase the Federal contribution to projects and 
        activities under the programs above the fixed maximum part of 
        the cost of the projects or activities otherwise authorized by 
        the applicable law.
    ``(c) Certification Required.--For a program, project, or activity 
for which any part of the basic Federal contribution to the project or 
activity under a Federal grant program is proposed to be made under 
subsection (b), the Federal contribution shall not be made until the 
responsible Federal official administering the Federal law authorizing 
the Federal contribution certifies that the program, project, or 
activity meets the applicable requirements of the Federal law and could 
be approved for Federal contribution under that law if amounts were 
available under the law for the program, project, or activity.
    ``(d) Limitations in Other Laws Inapplicable.--Amounts provided 
pursuant to this subtitle are available without regard to any 
limitations on areas eligible for assistance or authorizations for 
appropriation in any other law.
    ``(e) Federal Share.--The Federal share of the cost of a project or 
activity receiving assistance under this section shall not exceed 80 
percent.
    ``(f) Maximum Commission Contribution.--Section 15501(d), relating 
to limitations on Commission contributions, shall apply to a program, 
project, or activity receiving assistance under this section.

                ``CHAPTER 157--ADMINISTRATIVE PROVISIONS

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``Sec.
``15701. Consent of States.
``15702. Distressed counties and areas.
``15703. Counties eligible for assistance in more than one region.
``15704. Inspector General; Records.
``15705. Biannual meetings of representatives of all commissions.
``15706. Relationship to other laws.
                ``SUBCHAPTER II--DESIGNATION OF REGIONS

``15731. Delta Regional Commission.
``15732. Northern Great Plains Regional Commission.
``15733. Southeast Crescent Regional Commission.
``15734. Southwest Border Regional Commission.
           ``SUBCHAPTER III--AUTHORIZATION OF APPROPRIATIONS

``15751. Authorization of appropriations.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``Sec. 15701. Consent of States
    ``This subtitle does not require a State to engage in or accept a 
program under this subtitle without its consent.
``Sec. 15702. Distressed counties and areas
    ``(a) Designations.--Not later than 90 days after the date of 
enactment of this section, and annually thereafter, each Commission 
shall make the following designations:
            ``(1) Distressed counties.--The Commission shall designate 
        as distressed counties those counties in its region that are 
        the most severely and persistently distressed and 
        underdeveloped and have high rates of poverty, unemployment, or 
        outmigration.
            ``(2) Transitional counties.--The Commission shall 
        designate as transitional counties those counties in its region 
        that are distressed and underdeveloped or have recently 
        suffered high rates of poverty, unemployment, or outmigration.
            ``(3) Attainment counties.--The Commission shall designate 
        as attainment counties, those counties in its region that are 
        not designated as distressed or transitional counties under 
        this subsection.
            ``(4) Isolated areas of distress.--The Commission shall 
        designate as isolated areas of distress, areas located in 
        counties designated as attainment counties under paragraph (3) 
        that have high rates of poverty, unemployment, or outmigration.
    ``(b) Allocation.--A Commission shall allocate at least 50 percent 
of the appropriations made available to the Commission to carry out 
this subtitle for programs and projects designed to serve the needs of 
distressed counties and isolated areas of distress in the region.
    ``(c) Attainment Counties.--
            ``(1) In general.--Except as provided in paragraph (2), 
        funds may not be provided under this subtitle for a project 
        located in a county designated as an attainment county under 
        subsection (a).
            ``(2) Exceptions.--
                    ``(A) Administrative expenses of local development 
                districts.--The funding prohibition under paragraph (1) 
                shall not apply to grants to fund the administrative 
                expenses of local development districts under section 
                15505.
                    ``(B) Multicounty and other projects.--A Commission 
                may waive the application of the funding prohibition 
                under paragraph (1) with respect to--
                            ``(i) a multicounty project that includes 
                        participation by an attainment county; and
                            ``(ii) any other type of project, if a 
                        Commission determines that the project could 
                        bring significant benefits to areas of the 
                        region outside an attainment county.
            ``(3) Isolated areas of distress.--For a designation of an 
        isolated area of distress to be effective, the designation 
        shall be supported--
                    ``(A) by the most recent Federal data available; or
                    ``(B) if no recent Federal data are available, by 
                the most recent data available through the government 
                of the State in which the isolated area of distress is 
                located.
``Sec. 15703. Counties eligible for assistance in more than one region
    ``(a) Limitation.--A political subdivision of a State may not 
receive assistance under this subtitle in a fiscal year from more than 
one Commission.
    ``(b) Selection of Commission.--A political subdivision included in 
the region of more than one Commission shall select the Commission with 
which it will participate by notifying, in writing, the Federal 
Cochairperson and the appropriate State member of that Commission.
    ``(c) Changes in Selections.--The selection of a Commission by a 
political subdivision shall apply in the fiscal year in which the 
selection is made, and shall apply in each subsequent fiscal year 
unless the political subdivision, at least 90 days before the first day 
of the fiscal year, notifies the Cochairpersons of another Commission 
in writing that the political subdivision will participate in that 
Commission and also transmits a copy of such notification to the 
Cochairpersons of the Commission in which the political subdivision is 
currently participating.
    ``(d) Inclusion of Appalachian Regional Commission.--In this 
section, the term `Commission' includes the Appalachian Regional 
Commission established under chapter 143.
``Sec. 15704. Inspector General; Records
    ``(a) Appointment of Inspector General.--There shall be an 
Inspector General for the Commissions appointed in accordance with 
section 3(a) of the Inspector General Act of 1978 (5 U.S.C. App.). All 
of the Commissions shall be subject to a single Inspector General.
    ``(b) Records of a Commission.--
            ``(1) In general.--A Commission shall maintain accurate and 
        complete records of all its transactions and activities.
            ``(2) Availability.--All records of a Commission shall be 
        available for audit and examination by the Inspector General 
        (including authorized representatives of the Inspector 
        General).
    ``(c) Records of Recipients of Commission Assistance.--
            ``(1) In general.--A recipient of funds from a Commission 
        under this subtitle shall maintain accurate and complete 
        records of transactions and activities financed with the funds 
        and report to the Commission on the transactions and 
        activities.
            ``(2) Availability.--All records required under paragraph 
        (1) shall be available for audit by the Commission and the 
        Inspector General (including authorized representatives of the 
        Commission and the Inspector General).
    ``(d) Annual Audit.--The Inspector General shall audit the 
activities, transactions, and records of each Commission on an annual 
basis.
``Sec. 15705. Biannual meetings of representatives of all commissions
    ``(a) In General.--Representatives of each Commission, the 
Appalachian Regional Commission, and the Denali Commission shall meet 
biannually to discuss issues confronting regions suffering from chronic 
and contiguous distress and successful strategies for promoting 
regional development.
    ``(b) Chair of Meetings.--The chair of each meeting shall rotate 
among the Commissions, with the Appalachian Regional Commission and the 
Denali Commission to host the first and second meetings, respectively.
``Sec. 15706. Relationship to other laws
    ``Projects receiving assistance under this subtitle shall be 
treated in the manner provided in section 602 of the Public Works and 
Economic Development Act of 1965 (42 U.S.C. 3212).

                ``SUBCHAPTER II--DESIGNATION OF REGIONS

``Sec. 15731. Delta Regional Commission
    ``The Delta Regional Commission shall consist of the following 
political subdivisions:
            ``(1) Alabama.--The counties of Barbour, Bullock, Butler, 
        Choctaw, Clarke, Conecuh, Dallas, Escambia, Greene, Hale, 
        Lowndes, Macon, Marengo, Monroe, Perry, Pickens, Russell, 
        Sumter, Washington, and Wilcox in the State of Alabama.
            ``(2) Arkansas.--The counties of Arkansas, Ashley, Baxter, 
        Bradley, Calhoun, Chicot, Clay, Cleveland, Craighead, 
        Crittenden, Cross, Dallas, Desha, Drew, Fulton, Grant, Greene, 
        Independence, Izard, Jackson, Jefferson, Lawrence, Lee, 
        Lincoln, Lonoke, Marion, Mississippi, Monroe, Ouachita, 
        Phillips, Poinsett, Prairie, Pulaski, Randolph, St. Francis, 
        Searcy, Sharp, Stone, Union, Van Buren, White, and Woodruff in 
        the State of Arkansas.
            ``(3) Illinois.--The counties of Alexander, Franklin, 
        Gallatin, Hamilton, Hardin, Jackson, Johnson, Massac, Perry, 
        Pope, Pulaski, Randolph, Saline, Union, White, and Woodruff in 
        the State of Illinois.
            ``(4) Kentucky.--The counties of Ballard, Caldwell, 
        Calloway, Carlisle, Christian, Crittenden, Fulton, Graves, 
        Henderson, Hickman, Hopkins, Livingston, Lyon, Marshall, 
        McCracken, McLean, Muhlenberg, Todd, Trigg, Union, and Webster 
        in the State of Kentucky.
            ``(5) Louisiana.--The parishes of Acadia, Allen, Ascension, 
        Assumption, Avoyelles, Caldwell, Catahoula, Concordia, E. Baton 
        Rouge, E. Carroll, E. Feliciana, Evangeline, Franklin, Grant, 
        Iberia, Iberville, Jackson, Jefferson, Lafourche, La 
Salle, Lincoln, Livingston, Madison, Morehouse, Natchitoches, Orleans, 
Ouachita, Plaquemines, Pointe Coupee, Rapides, Richland, St. Bernard, 
St. Charles, St. Helena, St. James, St. John the Baptist, St. Landry, 
St. Martin, Tangipahoa, Tensas, Union, Washington, W. Baton Rouge, W. 
Carroll, W. Feliciana, and Winn in the State of Louisiana.
            ``(6) Mississippi.--The counties of Adams, Amite, Attala, 
        Benton, Bolivar, Carroll, Claiborne, Coahoma, Copiah, 
        Covington, Desoto, Franklin, Grenada, Hinds, Holmes, Humphreys, 
        Issaquena, Jefferson, Jefferson Davis, Lafayette, Lawrence, 
        Leflore, Lincoln, Madison, Marion, Marshall, Montgomery, 
        Panola, Pike, Quitman, Rankin, Sharkey, Simpson, Sunflower, 
        Tallahatchie, Tate, Tippah, Tunica, Union, Walthall, Warren, 
        Washington, Wilkinson, Yalobusha, and Yazoo in the State of 
        Mississippi.
            ``(7) Missouri.--The counties Bollinger, Butler, Cape 
        Girardeau, Carter, Crawford, Dent, Douglas, Dunklin, Howell, 
        Iron, Madison, Mississippi, New Madrid, Oregon, Ozark, 
        Pemiscott, Perry, Phelps, Reynolds, Ripley, Ste. Genevieve, St. 
        Francois, Scott, Shannon, Stoddard, Texas, Washington, Wayne, 
        and Wright in the State of Missouri.
            ``(8) Tennessee.--The counties of Benton, Carroll, Chester, 
        Crockett, Decatur, Dyer, Fayette, Gibson, Hardeman, Hardin, 
        Haywood, Henderson, Henry, Lake, Lauderdale, McNairy, Madison, 
        Obion, Shelby, Tipton, and Weakley in the State of Tennessee.
``Sec. 15732. Northern Great Plains Regional Commission
    ``The Northern Great Plains Regional Commission, shall consist of 
all counties of the States of Iowa, Minnesota, Nebraska, North Dakota, 
and South Dakota.
``Sec. 15733. Southeast Crescent Regional Commission
    ``The Southeast Crescent Regional Commission shall consist of all 
counties of the States of Virginia, North Carolina, South Carolina, 
Georgia, Alabama, Mississippi, and Florida not already served by the 
Appalachian Regional Commission or the Delta Regional Commission.
``Sec. 15734. Southwest Border Regional Commission
    ``The Southwest Border Regional Commission shall consist of the 
following political subdivisions:
            ``(1) Arizona.--The counties of Cochise, Gila, Graham, 
        Greenlee, La Paz, Maricopa, Pima, Pinal, Santa Cruz, and Yuma 
        in the State of Arizona.
            ``(2) California.--The counties of Imperial, Los Angeles, 
        Orange, Riverside, San Bernardino, San Diego, and Ventura in 
        the State of California.
            ``(3) New mexico.--The counties of Catron, Chaves, Dona 
        Ana, Eddy, Grant, Hidalgo, Lincoln, Luna, Otero, Sierra, and 
        Socorro in the State of New Mexico.
            ``(4) Texas.--The counties of Atascosa, Bandera, Bee, 
        Bexar, Brewster, Brooks, Cameron, Coke, Concho, Crane, 
        Crockett, Culberson, Dimmit, Duval, Ector, Edwards, El Paso, 
        Frio, Gillespie, Glasscock, Hidalgo, Hudspeth, Irion, Jeff 
        Davis, Jim Hogg, Jim Wells, Karnes, Kendall, Kenedy, Kerr, 
        Kimble, Kinney, Kleberg, La Salle, Live Oak, Loving, Mason, 
        Maverick, McMullen, Medina, Menard, Midland, Nueces, Pecos, 
        Presidio, Reagan, Real, Reeves, San Patricio, Shleicher, 
        Sutton, Starr, Sterling, Terrell, Tom Green Upton, Uvalde, Val 
        Verde, Ward, Webb, Willacy, Wilson, Winkler, Zapata, and Zavala 
        in the State of Texas.

           ``SUBCHAPTER III--AUTHORIZATION OF APPROPRIATIONS

``Sec. 15751. Authorization of appropriations
    ``(a) In General.--There is authorized to be appropriated to each 
Commission to carry out this subtitle--
            ``(1) $30,000,000 for fiscal year 2004;
            ``(2) $35,000,000 for fiscal year 2005;
            ``(3) $40,000,000 for fiscal year 2006;
            ``(4) $45,000,000 for fiscal year 2007; and
            ``(5) $50,000,000 for fiscal year 2008.
    ``(b) Administrative Expenses.--Not more than 10 percent of the 
funds made available to a Commission in a fiscal year under this 
section may be used for administrative expenses.''.
    (b) Conforming Amendment.--The table of subtitles for chapter 40, 
United States Code, is amended by striking the item relating to 
subtitle V and inserting the following:

``V. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT.......     15101 
``VI. MISCELLANEOUS.........................................  17101.''.

SEC. 4. CONFORMING AMENDMENTS.

    (a) Repeals.--Subtitles F and G of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2009aa-2009bb-13) are repealed.
    (b) Inspector General Act.--Section 11 of the Inspector General Act 
of 1978 (5 U.S.C. App.) is amended--
            (1) in paragraph (1) by striking ``or the President of the 
        Export-Import Bank;'' and inserting ``the President of the 
        Export-Import Bank; or the Federal Cochairpersons of the 
        Commissions established under section 15301 of title 40, United 
        States Code;''; and
            (2) in paragraph (2) by striking ``or the Export-Import 
        Bank,'' and inserting ``the Export-Import Bank, or the 
        Commissions established under section 15301 of title 40, United 
        States Code,''.

SEC. 5. TRANSFERS OF AUTHORITY AND SAVINGS PROVISIONS.

    (a) Transfers of Authority.--Subject to the requirements of this 
Act (including the amendments made by this Act)--
            (1) all of the functions of the Delta Regional Authority 
        are transferred to the Delta Regional Commission; and
            (2) all of the functions of the Northern Great Plains 
        Regional Authority are transferred to the Northern Great Plains 
        Regional Commission.
    (b) Legal Documents.--All orders, determinations, rules, 
regulations, grants, loans, contracts, and agreements--
            (1) that have been issued, made, granted, or allowed to 
        become effective by the Delta Regional Authority or the 
        Northern Great Plains Regional Authority in the performance of 
        any function that is transferred by this section, and
            (2) that are in effect on the effective date of such 
        transfer (or become effective after such date pursuant to their 
        terms as in effect on such effective date),
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
an authorized official, a court of competent jurisdiction, or operation 
of law.
    (c) Transfer of Assets and Personnel.--
            (1) Delta regional commission.--There shall be transferred 
        to the Delta Regional Commission such assets, funds, personnel, 
        records, and other property of the Delta Regional Authority 
        relating to the functions of the Authority as the Commission 
        determines appropriate.
            (2) Northern great plains regional commission.--There shall 
        be transferred to the Northern Great Plains Regional Commission 
        such assets, funds, personnel, records, and other property of 
        the Northern Great Plains Regional Authority as the Commission 
        determines appropriate.

SEC. 6. EFFECTIVE DATE.

    This Act, and the amendments made by this Act, shall take effect on 
the first day of the first fiscal year beginning after the date of 
enactment of this Act.
                                 <all>
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