59–006 

110TH CONGRESS REPT. 110–321 " ! HOUSE OF REPRESENTATIVES 1st Session Part 1 

REGIONAL ECONOMIC AND INFRASTRUCTURE 

DEVELOPMENT ACT OF 2007 

SEPTEMBER 7, 2007.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. OBERSTAR, from the Committee on Transportation and 

Infrastructure, submitted the following 

R E P O R T 

[To accompany H.R. 3246] 

The Committee on Transportation and Infrastructure, to whom 

was referred the bill (H.R. 3246) to amend title 40, United States 

Code, to provide a comprehensive regional approach to economic 

and infrastructure development in the most severely economically 

distressed regions in the Nation, having considered the same, report favorably thereon with an amendment and recommend that 

the bill as amended do pass. 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Regional Economic and Infrastructure Development 

Act of 2007’’. 

SEC. 2. FINDINGS AND PURPOSES. 

(a) FINDINGS.—Congress finds that— 

(1) certain regions of the Nation, including Appalachia, the Mississippi Delta 

Region, the Northern Great Plains Region, the Southeast Crescent Region, the 

Southwest Border Region, the Northern Border Region, and rural Alaska, have 

suffered from chronic distress far above the national average; 

(2) an economically distressed region can suffer unemployment and poverty 

at a rate that is 150 percent of the national average; and 

(3) 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 economically distressed regions in the 

Nation; and 

(2) to ensure that the most severely economically 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. 


bajohnson on PROD1PC69 with REPORTS
2 

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. 

‘‘§ 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. 


bajohnson on PROD1PC69 with REPORTS
3 

‘‘15308. Tribal participation. 

‘‘15309. Annual report. 

‘‘§ 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. 

‘‘(5) The Northern 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 be a Federal employee for any purpose. 

‘‘§ 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)). 


bajohnson on PROD1PC69 with REPORTS
4 

‘‘(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. 

‘‘§ 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 one 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. 

‘‘§ 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 


bajohnson on PROD1PC69 with REPORTS
5 

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. 

‘‘§ 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. 

‘‘§ 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—


bajohnson on PROD1PC69 with REPORTS
6 

‘‘(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. 

‘‘§ 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. 

‘‘§ 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. 


bajohnson on PROD1PC69 with REPORTS
7 

‘‘§ 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; and ‘‘(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. 

‘‘§ 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 economically distressed and underdeveloped areas of its region that lack financial resources for improving basic 

health care and other public services; 

‘‘(6) to promote resource conservation, tourism, recreation, and preservation 

of open space in a manner consistent with economic development goals; 

‘‘(7) to promote the development of renewable and alternative energy sources; 

and 

‘‘(8) to otherwise achieve the purposes of this subtitle. 

‘‘(b) ALLOCATION OF FUNDS.—A Commission shall allocate at least 40 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—

‘‘(A) the project or activity involves 3 or more counties or more than one 

State; and 

‘‘(B) 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. 


bajohnson on PROD1PC69 with REPORTS
8 

‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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. 


bajohnson on PROD1PC69 with REPORTS
9 

‘‘(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. 

‘‘§ 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. 


bajohnson on PROD1PC69 with REPORTS
10 

‘‘15734. Southwest Border Regional Commission. 

‘‘15735. Northern Border Regional Commission. 

‘‘SUBCHAPTER III—AUTHORIZATION OF APPROPRIATIONS

‘‘15751. Authorization of appropriations. 

‘‘SUBCHAPTER I—GENERAL PROVISIONS 

‘‘§ 15701. Consent of States 

‘‘This subtitle does not require a State to engage in or accept a program under 

this subtitle without its consent. 

‘‘§ 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 

economically 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 economically 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. 

‘‘§ 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 


bajohnson on PROD1PC69 with REPORTS
11 

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. 

‘‘§ 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. 

‘‘§ 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 to host the first meeting. 

‘‘§ 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 

‘‘§ 15731. Delta Regional Commission 

‘‘The region of 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 Williamson 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, LaSalle, 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, 


bajohnson on PROD1PC69 with REPORTS
12 

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. 

‘‘§ 15732. Northern Great Plains Regional Commission 

‘‘The region of the Northern Great Plains Regional Commission shall consist of 

the following: 

‘‘(1) All counties of the States of Iowa, Minnesota, Nebraska, North Dakota, 

and South Dakota. 

‘‘(2) The counties of Andrew, Atchison, Buchanan, Caldwell, Carroll, Chariton, 

Clay, Clinton, Cooper, Daviess, DeKalb, Gentry, Grundy, Harrison, Holt, Howard, Jackson, Linn, Livingston, Mercer, Nodaway, Platte, Putnam, Schuyler, 

Sullivan, and Worth in the State of Missouri. 

‘‘§ 15733. Southeast Crescent Regional Commission 

‘‘The region of 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. 

‘‘§ 15734. Southwest Border Regional Commission 

‘‘The region of 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. 

‘‘§ 15735. Northern Border Regional Commission 

‘‘The region of the Northern Border Regional Commission shall include the following counties: 

‘‘(1) MAINE.—The counties of Androscoggin, Aroostook, Franklin, Hancock, 

Kennebec, Knox, Oxford, Penobscot, Piscataquis, Somerset, Waldo, and Washington in the State of Maine. 

‘‘(2) NEW HAMPSHIRE.—The counties of Carroll, Coos, Grafton, and Sullivan in 

the State of New Hampshire. 

‘‘(3) NEW YORK.—The counties of Cayuga, Clinton, Essex, Franklin, Fulton, 

Hamilton, Herkimer, Jefferson, Lewis, Madison, Oneida, Oswego, Seneca, and 

St. Lawrence in the State of New York. 

‘‘(4) VERMONT.—The counties of Caledonia, Essex, Franklin, Grand Isle, 

Lamoille, and Orleans in the State of Vermont. 


bajohnson on PROD1PC69 with REPORTS
13 

‘‘SUBCHAPTER III—AUTHORIZATION OF APPROPRIATIONS 

‘‘§ 15751. Authorization of appropriations 

‘‘(a) IN GENERAL.—There is authorized to be appropriated to each Commission to 

carry out this subtitle—

‘‘(1) $40,000,000 for fiscal year 2008; 

‘‘(2) $45,000,000 for fiscal year 2009; 

‘‘(3) $50,000,000 for fiscal year 2010; 

‘‘(4) $55,000,000 for fiscal year 2011; and 

‘‘(5) $60,000,000 for fiscal year 2012. 

‘‘(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. 

PURPOSE OF THE LEGISLATION

H.R. 3246 provides a comprehensive regional approach to economic and infrastructure development in the most severely economically distressed regions in the nation. 


bajohnson on PROD1PC69 with REPORTS
14 

BACKGROUND AND NEED FOR LEGISLATION

H.R. 3246, the ‘‘Regional Economic and Infrastructure Development Act of 2007’’, authorizes five regional economic development 

commissions under a common framework of administration and 

management, and provides a structure for economic development 

decision-making and planning. These commissions are designed to 

address problems of systemic poverty and underdevelopment in 

their respective regions. The five commissions are the Delta Regional Commission, the Northern Great Plains Regional Commission, the Southeast Crescent Regional Commission, the Southwest 

Border Regional Commission, and the Northern Border Regional 

Commission. 

This bill models the administrative and management procedures 

for these five commissions after the highly successful Appalachian 

Regional Commission. The bill establishes commission membership, 

voting structure, and staffing; outlines conditions for financial assistance; authorizes grants to local development districts; establishes an Inspector General for the commissions; and other provisions designed to produce a standard administrative framework. By 

providing a uniform set of procedures, this bill provides a consistent method for distributing economic development funds 

throughout the regions most in need of such assistance and ensures 

a comprehensive regional approach to economic and infrastructure 

development in the most severely distressed regions in the country. 

The Delta Regional Commission and the Northern Great Plains 

Regional Commission are existing entities that are reauthorized in 

this legislation. The Southeast Crescent Regional Commission, the 

Southwest Border Regional Commission, and the Northern Border 

Regional Commission have been proposed in legislation introduced 

in this and previous Congresses. 

The Southeastern region of the United States includes the coastal and central portions of the seven Southeastern States from Virginia to Mississippi. Approximately 40 percent of the counties in 

this region have had 20 percent or more of their citizens living in 

poverty, on average, during the last 30 years. Additionally, this region has experienced natural disasters at a rate of two to three 

times greater than any other region of the U.S. The Southeastern 

United States is one of the last areas of the country without a Federal authority dedicated to ending poverty and strengthening communities. The Southeast Crescent Authority will be a valuable tool 

to assist State and local officials, county development organizations, and many others in providing resources and leveraging additional funds to assist communities with the greatest need. 

The Southwest border region includes all counties within 150 

miles of the U.S.-Mexico border. The Interagency Task Force on the 

Economic Development of the Southwest Border found that 20 percent of the residents in this region live below the poverty level. Unemployment rates often reach as high as five times the national 

unemployment rate and a lack of adequate access to capital has 

created economic disparities that have made it difficult for businesses to start up in the region. Border communities have long endured a depressed economy and low-paying jobs. The Southwest 

Border Regional Commission will help foster planning to encourage 

infrastructure development, technology development and deployVerDate Aug 31 2005 05:12 Sep 08, 2007 Jkt 059006 PO 00000 Frm 00014 Fmt 6659 Sfmt 6602 E:\HR\OC\HR321P1.XXX HR321P1

bajohnson on PROD1PC69 with REPORTS
15 

ment, education and workforce development, and community development through entrepreneurship. 

The Northern Border region stretches from Maine to New York. 

While abundant in natural resources and rich in potential, this region lags behind much of the nation in its economic growth. In this 

region, 12.5 percent of the population lives in poverty with the median household income more than $6,500 below the national average. Due to this region’s historic reliance on a few basic industries 

and agriculture, unemployment through layoffs in traditional manufacturing industries is persistent. In addition, this region has experienced virtually no population growth with the population increasing by only 0.6 percent between 1990 and 2000, while the U.S. 

population rose by 13.2 percent. The Northern Border Regional 

Commission will assist in supporting traditional industries while 

fostering new industry in the region. The Commission, in cooperation with appropriate local, State, and Federal officials, is encouraged to initiate a special resource study for northern Maine to examine land use, ownership, and development trends, and to propose options for future management, ownership, conservation, and 

development of land to maximize job creation and ecological value. 

SUMMARY OF THE LEGISLATION

Section 1. Short title 

Section 1 denotes the short title of the bill as the ‘‘Regional Economic and Infrastructure Development Act of 2007’’. 

Section 2. Findings and purposes 

Section 2 lists the findings and purposes of the Act. Economically 

distressed regions can suffer unemployment and poverty at a rate 

that is 150 percent of the national average. Regional commissions 

are unique Federal-State partnerships that can provide targeted 

resources to alleviate pervasive economic distress. The purpose of 

this Act is to provide a regional approach to economic and infrastructure development, and to ensure that the most severely distressed regions have the necessary tools to develop the basic building blocks for economic development, such as transportation and 

basic infrastructure. 

Section 3. Regional economic and infrastructure development 

Section 3(a) amends Title 40, United States Code, by redesignating subtitle V as subtitle VI and inserting after subtitle IV a 

new Subtitle V, ‘‘Regional Economic and Infrastructure’’. The new 

subtitle includes new chapter 151—General Provisions, new chapter 153—Regional Commissions, new chapter 155—Financial Assistance, and new chapter 157—Administrative Provisions. 

CHAPTER 151—GENERAL PROVISIONS

Section 15101 defines several terms, including ‘‘Commission’’, ‘‘Local Development District’’, ‘‘Federal grant program’’, ‘‘Indian 

tribe’’, ‘‘nonprofit entity’’, and ‘‘region’’. 

CHAPTER 153—REGIONAL COMMISSIONS

Section 15301 establishes the Delta Regional Commission, the 

Northern Great Plains Regional Commission, the Southeast CresVerDate Aug 31 2005 05:12 Sep 08, 2007 Jkt 059006 PO 00000 Frm 00015 Fmt 6659 Sfmt 6602 E:\HR\OC\HR321P1.XXX HR321P1

bajohnson on PROD1PC69 with REPORTS
16 

cent Regional Commission, the Southwest Border Regional Commission, and the Northern Border Regional Commission. 

This section also establishes the membership of each Commission. Each Commission includes a Federal Cochairperson, appointed by the President and confirmed by the Senate. The Federal 

Cochairperson will appoint an alternate Federal Cochairperson. 

The membership of the Commission also includes the Governors of 

each State in the region that elects to participate in the Commission. The State Cochairperson is a Governor of a participating 

State in the region. The State Cochairperson will serve for a term 

of not less than a year. 

Each State member may have a single alternate, who is appointed by the Governor of the State from among the Governor’s 

cabinet. The alternate will vote in the event of the absence, death, 

disability, removal, or resignation of the appointing member. 

The Federal Cochairperson will be compensated at level III of the 

Executive Schedule as set out in Section 5314 of Title 5, United 

States Code. The Alternate Federal Cochairperson will be compensated at level V of the Executive Schedule as set out Section 

5316 of Title 5, United States Code. A State will compensate each 

member and alternate on the commission at the rate established by 

State law. 

Each Commission may appoint and fix the compensation of an 

executive director to carry out the duties of the Commission. The 

compensation for the executive director will not exceed the maximum rate for the Senior Executive Service under Section 5382 of 

title 5, United States Code. The executive director will be responsible for carrying out the administrative duties of the Commission, 

directing the Commission staff, and other duties that the Commission assigns to the director. 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 on the Commission) will 

be considered to be a Federal employee for any purpose. 

Section 15302 requires that all approval decisions must receive 

the vote of the Federal Cochairperson and a majority of the State 

members. The Federal Cochairperson shall, to the extent practicable, consult with Federal departments and agencies having an 

interest in the matter. A Commission shall determine what constitutes a quorum for Commission meetings except that any 

quorum shall include the Federal Cochairperson or the alternate 

Federal Cochairperson and a State alternate member shall not be 

counted toward the establishment of a quorum. The approval of 

project and grant proposals shall be a responsibility of each Commission and shall be carried out in accordance with Section 15503. 

Section 15303 requires each State member to submit a development plan for the area of the region represented by the State member. The State development plan will reflect the goals, objectives, 

and priorities in the regional development plan. In carrying out the 

development planning process, a State shall consult with local development districts, local units of government, and universities and 

take into account the goals, objectives, and recommendations of 

these entities. Within one year after the date of enactment of this 

Act and after taking into account State plans developed under section 15502, each Commission shall establish priorities in an ecoVerDate Aug 31 2005 05:12 Sep 08, 2007 Jkt 059006 PO 00000 Frm 00016 Fmt 6659 Sfmt 6602 E:\HR\OC\HR321P1.XXX HR321P1

bajohnson on PROD1PC69 with REPORTS
17 

nomic and infrastructure development plan for its region, including 

five-year regional outcome targets. The Commission shall, to the 

extent practicable, encourage and assist public participation in the 

plans and programs of the Commission. 

Section 15304 authorizes the Commission to hold hearings, take 

testimony under oath, and request information from State and Federal agencies; adopt, amend, and repeal bylaws and rules governing 

the conduct of Commission; request the head of any Federal department or of any State agency or local government to detail to 

the Commission personnel needed to carry out the duties of the 

Commission; provide Commission employees with retirement and 

other benefits; accept, use, and dispose of gifts; enter into contracts 

to carry out Commission duties; establish a central office and field 

offices for the Commission; and provide an appropriate level of representation in Washington, D.C. 

The Federal Government shall pay 50 percent of the administrative expenses of the Commission and the States participating in the 

Commission shall pay 50 percent of such expenses. Each State’s 

share of the administrative expenses shall be determined by a 

unanimous vote of the State members of the Commission. If a State 

is delinquent in payment of it share of administrative expenses, no 

assistance will provided by the Commission, nor will that State be 

allowed to participate or vote in any action by the Commission. 

Federal agencies are required to cooperate with the Commission 

and provide appropriate assistance, in accordance with applicable 

Federal laws. 

Section 15305 requires each Commission to hold an initial meeting no later than 180 days after the date of enactment of this Act. 

Each Commission shall conduct at least one meeting each year 

with the Federal Cochairperson and at least a majority of the State 

members present. Each Commission shall conduct additional meetings at such times as it determines and may conduct such meetings 

by electronic means. 

Section 15306 prohibits any State member, alternate, official, or 

employee of the Commission, their immediate family, organization, 

or organization for which the employee has an arrangement concerning prospective employment, from participating personally or 

substantially in a matter in which the employee has a financial interest. A conflict of interest can be overcome by full disclosure to 

the Commission and a subsequent determination by the Commission that the matter will not substantially affect the integrity of 

the work of the Commission. Any person that violates this subsection is subject to criminal penalties and fines. 

A State will compensate each member and alternate on the Commission at the rate established by State law. No State member or 

alternate member can receive any additional compensation for 

service on the Commission from any other source besides the State. 

No person detailed to serve on the Commission from a State 

agency shall receive any salary or any contribution to or supplementation of salary for services provided to the Commission 

from the Commission or any other source besides the agency from 

which the person was detailed. Any person that violates this provision is subject to criminal penalties. 

Section 15307 specifies that, in addition to the members listed in 

Section 15301(b)(1), the membership of the Northern Great Plains 


bajohnson on PROD1PC69 with REPORTS
18 

Regional Commission shall include a Tribal Cochairperson to be 

appointed by the President and confirmed by the Senate. The Tribal Cochairperson will be a member of an Indian tribe in the Commission’s region. 

In addition to the Federal Cochairperson and State Cochairperson, the Commission shall be headed by the Tribal Cochairperson, who will serve as a liaison between the governments of Indian tribes in the region and the Commission. The President will 

also appoint an alternate to the Tribal Cochairperson. 

The alternate Tribal Cochairperson will vote in case of the absence, death, disability, removal, or resignation of the Tribal Cochairperson. The Tribal Cochairperson will be compensated by the 

Federal Government at level III of the Executive Schedule as set 

out in Section 5314 of Title 5, United States Code. 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. All expenses of the Tribal Cochairperson, the alternate, and staff of the Tribal Cochairperson shall be paid by the 

Federal Government and with exception to compensation and expenses of the Tribal Cochairperson, who will have the same duties 

and privileges as the State Cochairperson. 

Section 15308 requires that governments of Indian tribes in the 

region of the Northern Great Plains Regional Commission or the 

Southwest Border Regional Commission be allowed to participate 

in matters in the same manner and to the same extent as State 

agencies and instrumentalities in the region. 

Section 15309 requires that not less 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 in the past fiscal year. The report shall include a description of the criteria used by the Commission to designate counties under Section 15702, a list of the counties designated in each 

category, an evaluation of the progress of the Commission in meeting the goals identified in the Commission’s economic and infrastructure development plan, and any policy recommendations approved by the Commission. 

CHAPTER 155—FINANCIAL ASSISTANCE

Section 15501 authorizes each Commission to make grants to 

States and local governments, Indian tribes, and public or nonprofit organizations for projects, approved in accordance with Section 15503, to develop infrastructure in the region, including transportation, public, and telecommunications infrastructure; assist the 

region in obtaining job skills training; provide assistance to severely economically distressed and underdeveloped areas that lack 

financial resources for improving basic health care and other public 

services; promote resource conservation; promote the development 

of renewable and alternative energy sources; and other measures 

to achieve the purposes of this subtitle. 

The Commission shall allocate at least 40 percent of any grant 

amounts provided for transportation, public, or telecommunications 

infrastructure for the region. The Commission may use amounts 

appropriated to carry out this Act to fund a project or activity 

under a Federal grant program in the region in an amount that is 

above the fixed maximum portion of the cost of the project otherVerDate Aug 31 2005 05:12 Sep 08, 2007 Jkt 059006 PO 00000 Frm 00018 Fmt 6659 Sfmt 6602 E:\HR\OC\HR321P1.XXX HR321P1

bajohnson on PROD1PC69 with REPORTS
19 

wise authorized by applicable law, but may not exceed 50 percent 

of the costs of the project, except for distressed counties or regional 

projects. The maximum contribution for a project or activity to be 

carried out in a distressed county may be increased to 80 percent. 

A Commission may increase the maximum grant for a project from 

50 percent to 60 percent under the normal criteria of section 15501 

and from 80 percent to 90 percent for a distressed county if the 

project or activity involves three or more counties or more than one 

State and the Commission determines in accordance with Section 

15302(a) that the project or activity will bring significant interstate or multi-county benefits to a region. 

Funds provided by a Commission for a program or activity can 

only be used under this section 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 the region, will not be 

reduced as a result of funds made available by this subtitle. 

Financial assistance authorized by this section may not be used 

to assist a person or entity in relocating from one area to another. 

Section 15502 requires each State member of the Commission to 

submit a comprehensive economic and infrastructure development 

plan for the area of the region represented by the State member. 

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. In carrying out the development 

planning process, a State shall consult with local development districts, local units of government, local colleges and universities and 

then take into consideration the goals, objectives, priorities and recommendations of these entities. 

Each Commission and applicable State and local development 

districts shall encourage and assist in public participation in the 

development, revision and implementation of all plans and programs. Each Commission is also required to develop guidelines for 

providing public participation, including public hearings. 

Section 15503 mandates that an application to a Commission for 

a grant or any other assistance for a project shall be made through, 

and evaluated for approval by, the State member of the Commission representing the applicant. An application to a Commission for 

a grant or project shall be eligible for assistance only on certification by the State member that the application for the project describes ways in which the project complies with any applicable 

State economic and infrastructure development plan, meets applicable criteria under Section 15504, adequately ensures that the 

project will be properly administered, operated, and maintained 

and otherwise meets the requirements for assistance under this 

subtitle. 

Upon 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. 

Section 15504 requires each Commission, in considering programs and projects to be provided assistance and in establishing a 

priority ranking of the requests for assistance, to consider: the relationship of the project or class of projects to overall regional develVerDate Aug 31 2005 05:12 Sep 08, 2007 Jkt 059006 PO 00000 Frm 00019 Fmt 6659 Sfmt 6602 E:\HR\OC\HR321P1.XXX HR321P1

bajohnson on PROD1PC69 with REPORTS
20 

opment; the per capita income and poverty and unemployment and 

out migration rates in an area; the financial resources available to 

the applicants for assistance seeking to carry out the project; the 

importance of the project in relation to the other projects that may 

be in competition for the same funds; the prospects that the project 

will improve opportunities for employment, the average level of income, or the economic development of the area on a continuing 

basis; and 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. 

Section 15505 authorizes the Commission to make grants to a 

local development district to assist in the payment of development 

planning and administrative expenses. 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 three fiscal 

years. The contributions of a local development district for administrative expenses may be in cash or in-kind services including space, 

equipment, and services. 

A local development district shall operate as a lead organization 

serving multi-county areas in the region at the local level and serve 

as a liaison between the State and local governments, nonprofit organizations, the business community, and citizens that are involved 

in multi-jurisdictional planning; provide technical assistance; and 

provide leadership and civic development assistance. 

Section 15506 authorizes supplements to Federal grant programs 

because certain States and local communities, including local development districts, may be unable to take maximum advantage of 

Federal grant programs for which they are eligible because they 

lack the economic resources to provide the required State or local 

matching share. Supplemental funds may also provide necessary 

funds for a projection to be carried out in the region when there 

are insufficient funds available under the applicable Federal law. 

A Commission, with the approval of the Federal Cochairperson, 

may use amounts made available to carry out this section for any 

part of the basic Federal contribution to projects or activities under 

the Federal grant programs authorized by Federal laws and 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. 

For a project 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 this section, 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. 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. 

The Federal share of the cost of a project or activity receiving assistance under this section shall not exceed 80 percent. Section 

15501(d), relating to limitations on Commission contributions, shall 


bajohnson on PROD1PC69 with REPORTS
21 

apply to a program, project, or activity receiving assistance under 

this section. 

CHAPTER 157—ADMINISTRATIVE PROVISIONS

Section 15701 clarifies that a State is not required to engage in 

or accept a program under this Act without its consent. 

Section 15702 establishes the designation of distressed, transitional, and attainment counties and isolated areas of distress in the 

region. Not later than 90 days after the date of enactment of this 

Act, and annually thereafter, each Commission shall designate 

counties under four categories. These categories will include distressed counties, defined as counties that are the most severely and 

persistently economically distressed and underdeveloped and have 

high rates of poverty, unemployment, or out migration; transitional 

counties, defined as counties in its region that are economically distressed and underdeveloped or have recently suffered high rates of 

poverty, unemployment, or out migration; attainment counties, or 

counties in its region that are not designated as distressed or transitional counties; and isolated areas of distress, defined as areas located in counties designated as attainment counties that have high 

rates of poverty, unemployment, or out migration. 

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. 

No funds may be provided for a county designated as an attainment county except for funding the administrative expenses of local 

development districts under section 15505, a multi-county project 

that includes participation of the attainment county, and other 

projects if a Commission determines that the project could bring 

significant benefits to areas of the region outside the attainment 

county. 

For a designation of an isolated area of distress to be effective, 

the designation shall be supported by the most recent Federal data 

available or if no recent Federal data are available, by the most recent data available. 

Section 15703 clarifies that counties are not eligible for assistance in more than one region. 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 the Commission. 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 another Commission in writing that the political subdivision 

will participate in that Commission and also transmits a copy of 

such notification to the Commission in which the political subdivision is currently participating. In this section, the term ‘‘Commission’’ includes the Appalachian Regional Commission. 

Section 15704 establishes an Inspector General for Commissions, 

appointed in accordance with the Inspector General Act of 1978. All 

of the Commissions shall be subject to a single Inspector General. 

Each Commission shall maintain accurate and complete records of 

all transactions and activities of the Commission and make them 


bajohnson on PROD1PC69 with REPORTS
22 

available to the Inspector General for audit and examination. The 

Inspector General shall audit the activities, transactions, and 

records of each Commission on an annual basis. 

Section 15705 requires representatives of each Commission, the 

Appalachian Regional Commission, and the Denali Commission to 

meet biannually to discuss issues confronting regions suffering 

from chronic and contiguous distress and successful strategies for 

promoting regional development. The chair of each meeting shall 

rotate among the Commissions, with the Appalachian Regional 

Commission to host the first meeting. 

Section 15706 requires that 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. 

Section 15731 defines the region of the Delta Regional Commission as consisting 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 Williamson 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, 


bajohnson on PROD1PC69 with REPORTS
23 

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. 

Section 15732 defines the region of Northern Great Plains Regional Commission as consisting of all counties of the States of 

Iowa, Minnesota, Nebraska, North Dakota, and South Dakota, and 

26 counties of Missouri. 

Section 15733 defines the region of the Southeast Crescent Regional Commission as consisting 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. 

Section 15734 defines the region of the Southwest Border Regional Commission as consisting 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, Kennedy, 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. 

Section 15735 defines the region of the Northern Border Regional 

Commission to include the following counties: 

(1) MAINE—The counties of Androscoggin, Aroostook, Franklin, 

Hancock, Kennebec, Knox, Oxford, Penobscot, Piscataquis, Somerset, Waldo, and Washington in the State of Maine. 

(2) NEW HAMPSHIRE—The counties of Carroll, Coos, Grafton, 

and Sullivan in the State of New Hampshire. 

(3) NEW YORK—The counties of Cayuga, Clinton, Essex, Franklin, Fulton, Hamilton, Herkimer, Jefferson, Lewis, Madison, Oneida, Oswego, Seneca, and St. Lawrence in the State of New York. 

(4) VERMONT—The counties of Caledonia, Essex, Franklin, 

Grand Isle, Lamoille, and Orleans in the State of Vermont. 

Section 15751 authorizes $40,000,000 for fiscal year 2008; 

$45,000,000 for fiscal year 2009; $50,000,000 for fiscal year 2010; 

$55,000,000 for fiscal year 2011; and $60,000,000 for fiscal year 

2012 to be appropriated to each Commission to carry out this subVerDate Aug 31 2005 05:12 Sep 08, 2007 Jkt 059006 PO 00000 Frm 00023 Fmt 6659 Sfmt 6602 E:\HR\OC\HR321P1.XXX HR321P1

bajohnson on PROD1PC69 with REPORTS
24 

title. 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. 

Section 4. Conforming amendments 

This section makes necessary and conforming amendments to the 

bill, including repeal of Subtitles F and G of the Consolidated Farm 

and Rural Development Act and amendment of Section 11 of the 

Inspector General Act of 1978. 

Section 5. Transfers of authority and savings provisions 

Section 5 transfers all functions of the Delta Regional Authority 

to the Delta Regional Commission and transfers all functions of the 

Northern Great Plains Regional Authority to the Northern Great 

Plains Regional Commission. 

Any assets, funds, personnel, records, and other property of the 

Delta Regional Authority or the Northern Great Plains Regional 

Authority relating to the functions of the Authorities shall be 

transferred to the Delta Regional Commission and the Northern 

Great Plains Regional Commission, respectively, as the Commissions determine appropriate. 

Section 6. Effective date 

This Act and its amendments shall take effect on the first day 

of the first fiscal year beginning after the date of enactment. 

LEGISLATIVE HISTORY AND COMMITTEE CONSIDERATION

In the 109th Congress, Chairman Oberstar introduced H.R. 1349, 

the ‘‘Regional Economic and Infrastructure Development Act of 

2005’’. 

On January 4, 2007, Representative McIntyre introduced H.R. 

66, the ‘‘Southeast Crescent Authority Act of 2007’’. On March 15, 

2007, Representative Hodes introduced H.R. 1548, the ‘‘Northern 

Border Economic Development Commission Act of 2007’’. On April 

26, 2007, Representative Reyes introduced H.R. 2068, the ‘‘Southwest Regional Border Authority Act’’. 

On July 31, 2007, Chairman Oberstar introduced H.R. 3246, the 

‘‘Regional Economic and Infrastructure Development Act of 2007’’. 

On August 1, 2007, the Subcommittee on Economic Development, 

Public Buildings, and Emergency Management met in open session 

and recommended H.R. 3246 favorably to the Committee on Transportation and Infrastructure. 

On August 2, 2007, the Committee on Transportation and Infrastructure met in open session to consider H.R. 3246, the ‘‘Regional 

Economic and Infrastructure Development Act of 2007’’. Two 

amendments were adopted by voice vote: an amendment to make 

technical corrections to the bill and an amendment to add certain 

counties in Missouri to the Northern Great Plains Regional Commission. The Committee ordered H.R. 3246, as amended, reported 

favorably to the House by voice vote. 

RECORD VOTES

Clause 3(b) of rule XIII of the House of Representatives requires 

each committee report to include the total number of votes cast for 


bajohnson on PROD1PC69 with REPORTS
25 

and against on each record vote on a motion to report and on any 

amendment offered to the measure or matter, and the names of 

those members voting for and against. There were no recorded 

votes taken in connection with any amendment to H.R. 3246 or 

with ordering H.R. 3246, as amended, reported. A motion to order 

H.R. 3246, as amended, reported favorably to the House was 

agreed to by voice vote with a quorum present. 

COMMITTEE OVERSIGHT FINDINGS

With respect to the requirements of clause 3(c)(1) of rule XIII of 

the Rules of the House of Representatives, the Committee’s oversight findings and recommendations are reflected in this report. 

COST OF LEGISLATION

Clause 3(c)(2) of rule XIII of the Rules of the House of Representatives does not apply where a cost estimate and comparison prepared by the Director of the Congressional Budget Office under 

Section 402 of the Congressional Budget Act of 1974 has been timely submitted prior to the filing of the report and is included in the 

report. Such a cost estimate is included in this report. 

COMPLIANCE WITH HOUSE RULE XIII 

1. With respect to the requirement of clause 3(c)(2) of rule XIII 

of the Rules of the House of Representatives, and Section 308(a) of 

the Congressional Budget Act of 1974, the Committee references 

the report of the Congressional Budget Office included in the report. 

2. With respect to the requirement of clause 3(c)(4) of rule XIII 

of the Rules of the House of Representatives, the performance goals 

and objectives of this legislation are to provide a comprehensive regional approach to economic and infrastructure development in the 

most severely economically distressed regions in the nation. 

3. With respect to the requirement of clause 3(c)(3) of rule XIII 

of the Rules of the House of Representatives and Section 402 of the 

Congressional Budget Act of 1974, the Committee has received the 

enclosed cost estimate for H.R. 3246 as amended from the Director 

of the Congressional Budget Office: 

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, August 22, 2007. 

Hon. JAMES L. OBERSTAR, 

Chairman, Committee on Transportation and Infrastructure, House 

of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 3246, the Regional Economic and Infrastructure Development Act of 2007. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Daniel Hoople. 

Sincerely, 

PETER R. ORSZAG, Director. 

Enclosure. 


bajohnson on PROD1PC69 with REPORTS
26 

H.R. 3246—Regional Economic and Infrastructure Development Act 

of 2007 

Summary: H.R. 3246 would authorize the appropriation of $1.25 

billion over the 2008–2012 period to establish five regional commissions that would award grants to state and local governments, Indian tribes, and nonprofit organizations to promote economic and 

infrastructure development among member states. 

Assuming the appropriation of the specified amounts, CBO estimates that implementing H.R. 3246 would cost $655 million over 

the 2008–2012 period. Enacting this bill would not affect direct 

spending or revenues. 

H.R. 3246 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would impose no costs on state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 3246 is shown in the following table. The costs 

of this legislation fall within budget function 450 (community and 

regional development). 

By fiscal year, in millions of dollars— 

2007 2008 2009 2010 2011 2012 

SPENDING SUBJECT TO APPROPRIATION 

Spending for Regional Commissions Under Current Law: 1

Budget Authority .................................................................. 12 0 0 0 0 0 

Estimated Outlays ............................................................... 7 7 6 4 2 1 

Proposed Changes: 

Authorization Level .............................................................. 0 200 225 250 275 300 

Estimated Outlays ............................................................... 0 10 60 145 200 240 

Spending for Regional Commissions Under H.R 3246: 

Authorization Level .............................................................. 12 200 225 250 275 300 

Estimated Outlays ............................................................... 7 17 66 149 202 241 

1 In 2007, the Delta Regional Authority (from which the Delta Regional Commission would be derived) received an appropriation of $12 million. The Northern Great Plains Regional Authority (from which the Northern Great Plains Regional Commission would be derived) received no appropriation in 2007. 

Basis of estimate: For this estimate, CBO assumes that the bill 

will be enacted near the end of fiscal year 2007 and that the 

amounts specified by the bill will be appropriated for each fiscal 

year. 

H.R. 3246 would authorize the appropriation of $1.25 billion over 

the 2008–2012 period to establish the Delta Regional Commission, 

the Northern Great Plains Regional Commission, the Southeast 

Crescent Regional Commission, the Southwest Border Regional 

Commission, and the Northern Border Regional Commission. The 

functions of two existing entities—the Delta Regional Authority 

and the Northern Great Plains Regional Authority—would be 

transferred to the new commissions established by the legislation 

for those regions. In addition, under the bill, the Northern Great 

Plains Region would be expanded to include 26 counties in the 

state of Missouri. 

H.R. 3246 would direct the five regional commissions to award 

grants to state and local governments, Indian tribes, and nonprofit 

organizations to promote economic and infrastructure development. 

At least 40 percent of the authorized funds would be used for 

grants to develop transportation, telecommunications, and other 

basic public infrastructure. Remaining funds would be used for 

other economic development activities, such as providing job trainVerDate Aug 31 2005 05:12 Sep 08, 2007 Jkt 059006 PO 00000 Frm 00026 Fmt 6659 Sfmt 6602 E:\HR\OC\HR321P1.XXX HR321P1

bajohnson on PROD1PC69 with REPORTS
27 

ing, improving public services, and promoting conservation, tourism, and development of renewable and alternative energy projects. 

Based on historical spending patterns of similar regional commissions, CBO estimates that implementing H.R. 3246 would cost 

$655 million over the 2008–2012 period and $595 million after 

2012, assuming appropriation of the specified funds. 

Intergovernmental and private-sector impact: H.R. 3246 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA. Assuming appropriation of the authorized amounts, CBO 

estimates that $655 million would be spent under the bill over the 

2008–2012 period for economic and regional development. Most of 

that amount would be for grants to state, local, and tribal governments. Any costs to those governments would be incurred voluntarily as a condition of receiving federal assistance. 

Estimate prepared by: Federal Costs: Daniel Hoople; Impact on 

State, Local, and Tribal Governments: Melissa Merrell; Impact on 

the Private Sector: Amy Petz. 

Estimate approved by: Peter H. Fontaine, Assistant Director for 

Budget Analysis. 

COMPLIANCE WITH HOUSE RULE XXI 

Pursuant to clause 9 of rule XXI of the Rules of the House of 

Representatives, H.R. 3246, as amended, does not contain any congressional earmarks, limited tax benefits, or limited tariff benefits 

as defined in clause 9(d), 9(e), or 9(f) of rule XXI of the Rules of 

the House of Representatives. 

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, committee reports on a bill or joint resolution 

of a public character shall include a Statement citing the specific 

powers granted to the Congress in the Constitution to enact the 

measure. The Committee on Transportation and Infrastructure 

finds that Congress has the authority to enact this measure pursuant to its powers granted under article I, Section 8 of the Constitution. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to Section 423 of the Unfunded Mandates Reform Act 

(Public Law 104–4). 

PREEMPTION CLARIFICATION

Section 423 of the Congressional Budget Act of 1974 requires the 

report of any Committee on a bill or joint resolution to include a 

Statement on the extent to which the bill or joint resolution is intended to preempt State, local, or tribal law. The Committee states 

that H.R. 3246, as amended, does not preempt any State, local, or 

tribal law. 


bajohnson on PROD1PC69 with REPORTS
28 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of Section 5(b) of the 

Federal Advisory Committee Act are created by this legislation. 

APPLICABILITY TO THE LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of Section 102(b)(3) of the 

Congressional Accountability Act (Public Law 104–1). 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

TITLE 40, UNITED STATES CODE 

SUBTITLE Sec. 

I. FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ............. 101 

* * * * * * * 

øV. MISCELLANEOUS .................................................................................... 17101¿ 

V. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT 15101

VI. MISCELLANEOUS .....................................................................................17101

* * * * * * * 

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. 

§ 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 leadVerDate Aug 31 2005 05:12 Sep 08, 2007 Jkt 059006 PO 00000 Frm 00028 Fmt 6659 Sfmt 6603 E:\HR\OC\HR321P1.XXX HR321P1

bajohnson on PROD1PC69 with REPORTS
29 

ers, 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. 

§ 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. 

(5) The Northern Border Regional Commission. 

(b) MEMBERSHIP.— (1) FEDERAL AND STATE MEMBERS.—Each Commission shall 

be composed of the following members: 


bajohnson on PROD1PC69 with REPORTS
30 

(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. 


bajohnson on PROD1PC69 with REPORTS
31 

(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 be a Federal employee for any purpose. 

§ 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. 

§ 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 one 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; 


bajohnson on PROD1PC69 with REPORTS
32 

(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. 

§ 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 subVerDate Aug 31 2005 05:12 Sep 08, 2007 Jkt 059006 PO 00000 Frm 00032 Fmt 6659 Sfmt 6603 E:\HR\OC\HR321P1.XXX HR321P1

bajohnson on PROD1PC69 with REPORTS
33 

title, 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. 

§ 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. 

§ 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 personVerDate Aug 31 2005 05:12 Sep 08, 2007 Jkt 059006 PO 00000 Frm 00033 Fmt 6659 Sfmt 6603 E:\HR\OC\HR321P1.XXX HR321P1

bajohnson on PROD1PC69 with REPORTS
34 

ally 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. 


bajohnson on PROD1PC69 with REPORTS
35 

§ 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. 

§ 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. 

§ 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; 


bajohnson on PROD1PC69 with REPORTS
36 

(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; and 

(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. 

§ 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 economically distressed 

and underdeveloped areas of its region that lack financial resources for improving basic health care and other public services; 

(6) to promote resource conservation, tourism, recreation, and 

preservation of open space in a manner consistent with economic development goals; 

(7) to promote the development of renewable and alternative 

energy sources; and 

(8) to otherwise achieve the purposes of this subtitle. 

(b) ALLOCATION OF FUNDS.—A Commission shall allocate at least 

40 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 


bajohnson on PROD1PC69 with REPORTS
37 

under paragraph (2) the maximum Commission contribution 

for a project or activity if—

(A) the project or activity involves 3 or more counties or 

more than one State; and 

(B) 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. 

§ 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. 

§ 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—


bajohnson on PROD1PC69 with REPORTS
38 

(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. 

§ 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. 

§ 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. 


bajohnson on PROD1PC69 with REPORTS
39 

(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. 

§ 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. 


bajohnson on PROD1PC69 with REPORTS
40 

(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. 

15735. Northern Border Regional Commission. 

SUBCHAPTER III—AUTHORIZATION OF APPROPRIATIONS

15751. Authorization of appropriations. 

SUBCHAPTER I—GENERAL PROVISIONS 

§ 15701. Consent of States 

This subtitle does not require a State to engage in or accept a program under this subtitle without its consent. 

§ 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 economically 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 economically 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.—


bajohnson on PROD1PC69 with REPORTS
41 

(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. 

§ 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. 

§ 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.—


bajohnson on PROD1PC69 with REPORTS
42 

(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. 

§ 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 to host the first meeting. 

§ 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 

§ 15731. Delta Regional Commission 

The region of 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, PuVerDate Aug 31 2005 05:12 Sep 08, 2007 Jkt 059006 PO 00000 Frm 00042 Fmt 6659 Sfmt 6603 E:\HR\OC\HR321P1.XXX HR321P1

bajohnson on PROD1PC69 with REPORTS
43 

laski, Randolph, Saline, Union, White, and Williamson 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, LaSalle, 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. 

§ 15732. Northern Great Plains Regional Commission 

The region of the Northern Great Plains Regional Commission 

shall consist of the following: 

(1) All counties of the States of Iowa, Minnesota, Nebraska, 

North Dakota, and South Dakota. 

(2) The counties of Andrew, Atchison, Buchanan, Caldwell, 

Carroll, Chariton, Clay, Clinton, Cooper, Daviess, DeKalb, Gentry, Grundy, Harrison, Holt, Howard, Jackson, Linn, Livingston, Mercer, Nodaway, Platte, Putnam, Schuyler, Sullivan, 

and Worth in the State of Missouri. 

§ 15733. Southeast Crescent Regional Commission 

The region of 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. 


bajohnson on PROD1PC69 with REPORTS
44 

§ 15734. Southwest Border Regional Commission 

The region of 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. 

§ 15735. Northern Border Regional Commission 

The region of the Northern Border Regional Commission shall include the following counties: 

(1) MAINE.—The counties of Androscoggin, Aroostook, Franklin, Hancock, Kennebec, Knox, Oxford, Penobscot, Piscataquis, 

Somerset, Waldo, and Washington in the State of Maine. 

(2) NEW HAMPSHIRE.—The counties of Carroll, Coos, Grafton, 

and Sullivan in the State of New Hampshire. 

(3) NEW YORK.—The counties of Cayuga, Clinton, Essex, 

Franklin, Fulton, Hamilton, Herkimer, Jefferson, Lewis, Madison, Oneida, Oswego, Seneca, and St. Lawrence in the State of 

New York. 

(4) VERMONT.—The counties of Caledonia, Essex, Franklin, 

Grand Isle, Lamoille, and Orleans in the State of Vermont. 

SUBCHAPTER III—AUTHORIZATION OF APPROPRIATIONS 

§ 15751. Authorization of appropriations 

(a) IN GENERAL.—There is authorized to be appropriated to each 

Commission to carry out this subtitle—

(1) $40,000,000 for fiscal year 2008; 

(2) $45,000,000 for fiscal year 2009; 

(3) $50,000,000 for fiscal year 2010; 

(4) $55,000,000 for fiscal year 2011; and 

(5) $60,000,000 for fiscal year 2012. 

(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. 


bajohnson on PROD1PC69 with REPORTS
45 

SUBTITLE øV¿ VI—MISCELLANEOUS 

* * * * * * * 

CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT 

* * * * * * * 

TITLE III—AGRICULTURAL CREDIT 

SEC. 301. (a) This title may be cited as the ‘‘Consolidated Farm 

and Rural Development Act’’. 

* * * * * * * 

øSubtitle F—Delta Regional Authority 

øSEC. 382A. DEFINITIONS. 

øIn this subtitle: 

ø(1) AUTHORITY.—The term ‘‘Authority’’ means the Delta Regional Authority established by section 382B. 

ø(2) REGION.—The term ‘‘region’’ means the Lower Mississippi (as defined in section 4 of the Delta Development Act 

(42 U.S.C. 3121 note; Public Law 100–460)). 

ø(3) FEDERAL GRANT PROGRAM.—The term ‘‘Federal grant 

program’’ means a Federal grant program to provide assistance 

in— ø(A) acquiring or developing land; 

ø(B) constructing or equipping a highway, road, bridge, 

or facility; or 

ø(C) carrying out other economic development activities. 

øSEC. 382B. DELTA REGIONAL AUTHORITY. 

ø(a) ESTABLISHMENT.— ø(1) IN GENERAL.—There is established the Delta Regional 

Authority. 

ø(2) COMPOSITION.—The Authority shall be composed of—

ø(A) a Federal member, to be appointed by the President, with the advice and consent of the Senate; and 

ø(B) the Governor (or a designee of the Governor) of 

each State in the region that elects to participate in the 

Authority. 

ø(3) COCHAIRPERSONS.—The Authority shall be headed by—

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

ø(i) as the Federal cochairperson; and 

ø(ii) as a liaison between the Federal Government 

and the Authority; and 

ø(B) a State cochairperson, who—

ø(i) shall be a Governor of a participating State in 

the region; and 

ø(ii) shall be elected by the State members for a 

term of not less than 1 year. 

ø(b) ALTERNATE MEMBERS.—

ø(1) STATE ALTERNATES.—The State member of a participating State may have a single alternate, who shall be—

ø(A) a resident of that State; and 

ø(B) appointed by the Governor of the State. 


bajohnson on PROD1PC69 with REPORTS
46 

ø(2) ALTERNATE FEDERAL COCHAIRPERSON.—The President 

shall appoint an alternate Federal cochairperson. 

ø(3) QUORUM.—A State alternate shall not be counted toward the establishment of a quorum of the Authority in any 

instance in which a quorum of the State members is required 

to be present. 

ø(4) DELEGATION OF POWER.—No power or responsibility of 

the Authority specified in paragraphs (2) and (3) of subsection 

(c), and no voting right of any Authority member, shall be delegated to any person—

ø(A) who is not an Authority member; or 

ø(B) who is not entitled to vote in Authority meetings. 

ø(c) VOTING.—

ø(1) IN GENERAL.—

ø(A) TEMPORARY METHOD.—During the period beginning 

on the date of enactment of this subparagraph and ending 

on December 31, 2008, a decision by the Authority shall 

require the affirmative vote of the Federal cochairperson 

and a majority of the State members (not including any 

member representing a State that is delinquent under subsection (g)(2)(C)) to be effective. 

ø(B) PERMANENT METHOD.—Effective beginning on January 1, 2009, a decision by the Authority shall require a 

majority vote of the Authority (not including any member 

representing a State that is delinquent under subsection 

(g)(2)(C)) to be effective. 

ø(2) QUORUM.—A quorum of State members shall be required to be present for the Authority to make any policy decision, including—

ø(A) a modification or revision of an Authority policy decision; 

ø(B) approval of a State or regional development plan; 

and 

ø(C) any allocation of funds among the States. 

ø(3) PROJECT AND GRANT PROPOSALS.—The approval of 

project and grant proposals shall be—

ø(A) a responsibility of the Authority; and 

ø(B) conducted in accordance with section 382I. 

VOTING BY ALTERNATE MEMBERS.—An alternate member 

shall vote in the case of the absence, death, disability, removal, 

or resignation of the Federal or State representative for which 

the alternate member is an alternate. 

ø(d) DUTIES.—The Authority shall—

ø(1) develop, on a continuing basis, comprehensive and coordinated plans and programs to establish priorities and approve grants for the economic development of the region, giving 

due consideration to other Federal, State, and local planning 

and development activities in the region; 

ø(2) not later than 220 days after the date of enactment of 

this subtitle, establish priorities in a development plan for the 

region (including 5-year regional outcome targets); 

ø(3) assess the needs and assets of the region based on available research, demonstrations, investigations, assessments, 

and evaluations of the region prepared by Federal, State, and 


bajohnson on PROD1PC69 with REPORTS
47 

local agencies, universities, local development districts, and 

other nonprofit groups; 

ø(4) formulate and recommend to the Governors and legislatures of States that participate in the Authority forms of interstate cooperation; 

ø(5) work with State and local agencies in developing appropriate model legislation; 

ø(6)(A) enhance the capacity of, and provide support for, 

local development districts in the region; or 

ø(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; 

ø(7) encourage private investment in industrial, commercial, 

and other economic development projects in the region; and 

ø(8) cooperate with and assist State governments with economic development programs of participating States. 

ø(e) ADMINISTRATION.—In carrying out subsection (d), the Authority may—

ø(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 Authority as the Authority considers appropriate; 

ø(2) authorize, through the Federal or State cochairperson or 

any other member of the Authority designated by the Authority, the administration of oaths if the Authority determines 

that testimony should be taken or evidence received under 

oath; 

ø(3) request from any Federal, State, or local department or 

agency such information as may be available to or procurable 

by the department or agency that may be of use to the Authority in carrying out duties of the Authority; 

ø(4) adopt, amend, and repeal bylaws, rules, and regulations 

governing the conduct of Authority business and the performance of Authority duties; 

ø(5) request the head of any Federal department or agency 

to detail to the Authority such personnel as the Authority requires to carry out duties of the Authority, each such detail to 

be without loss of seniority, pay, or other employee status; 

ø(6) request the head of any State department or agency or 

local government to detail to the Authority such personnel as 

the Authority requires to carry out duties of the Authority, 

each such detail to be without loss of seniority, pay, or other 

employee status; 

ø(7) provide for coverage of Authority employees in a suitable 

retirement and employee benefit system by—

ø(A) making arrangements or entering into contracts 

with any participating State government; or 

ø(B) otherwise providing retirement and other employee 

benefit coverage; 

ø(8) accept, use, and dispose of gifts or donations of services 

or real, personal, tangible, or intangible property; 

ø(9) enter into and perform such contracts, leases, cooperative agreements, or other transactions as are necessary to 


bajohnson on PROD1PC69 with REPORTS
48 

carry out Authority duties, including any contracts, leases, or 

cooperative agreements with— ø(A) any department, agency, or instrumentality of the 

United States; 

ø(B) any State (including a political subdivision, agency, 

or instrumentality of the State); or 

ø(C) any person, firm, association, or corporation; and 

ø(10) establish and maintain a central office and field offices 

at such locations as the Authority may select. 

ø(f ) FEDERAL AGENCY COOPERATION.—A Federal agency shall— ø(1) cooperate with the Authority; and 

ø(2) provide, on request of the Federal cochairperson, appropriate assistance in carrying out this subtitle, in accordance 

with applicable Federal laws (including regulations). 

ø(g) ADMINISTRATIVE EXPENSES.—

ø(1) IN GENERAL.—Administrative expenses of the Authority 

(except for the expenses of the Federal cochairperson, including 

expenses of the alternate and staff of the Federal cochairperson, which shall be paid solely by the Federal Government) 

shall be paid—

ø(A) by the Federal Government, in an amount equal to 

50 percent of the administrative expenses; and 

ø(B) by the States in the region participating in the Authority, in an amount equal to 50 percent of the administrative expenses. 

ø(2) STATE SHARE.— ø(A) IN GENERAL.—The share of administrative expenses 

of the Authority to be paid by each State shall be determined by the Authority. 

ø(B) NO FEDERAL PARTICIPATION.—The Federal cochairperson shall not participate or vote in any decision under 

subparagraph (A). 

ø(C) DELINQUENT STATES.—If a State is delinquent in 

payment of the State’s share of administrative expenses of 

the Authority under this subsection— ø(i) no assistance under this subtitle shall be furnished to the State (including assistance to a political 

subdivision or a resident of the State); and 

ø(ii) no member of the Authority from the State 

shall participate or vote in any action by the Authority. 

ø(h) COMPENSATION.—

ø(1) FEDERAL COCHAIRPERSON.—The Federal cochairperson 

shall be compensated by the Federal Government at level III 

of the Executive Schedule in subchapter II of chapter 53 of title 

5, United States Code. 

ø(2) ALTERNATE FEDERAL COCHAIRPERSON.—The alternate 

Federal cochairperson—

ø(A) shall be compensated by the Federal Government at 

level V of the Executive Schedule described in paragraph 

(1); and 

ø(B) when not actively serving as an alternate for the 

Federal cochairperson, shall perform such functions and 

duties as are delegated by the Federal cochairperson. 

ø(3) STATE MEMBERS AND ALTERNATES.—


bajohnson on PROD1PC69 with REPORTS
49 

ø(A) IN GENERAL.—A State shall compensate each member and alternate representing the State on the Authority 

at the rate established by law of the State. 

ø(B) NO ADDITIONAL COMPENSATION.—No State member 

or alternate member shall receive any salary, or any contribution to or supplementation of salary from any source 

other than the State for services provided by the member 

or alternate to the Authority. 

ø(4) DETAILED EMPLOYEES.— ø(A) IN GENERAL.—No person detailed to serve the Authority under subsection (e)(6) shall receive any salary or 

any contribution to or supplementation of salary for services provided to the Authority from— ø(i) any source other than the State, local, or intergovernmental department or agency from which the 

person was detailed; or 

ø(ii) the Authority. 

ø(B) VIOLATION.—Any person that violates this para- graph shall be fined not more than $5,000, imprisoned not 

more than 1 year, or both. 

ø(C) APPLICABLE LAW.—The Federal cochairperson, the 

alternate Federal cochairperson, and any Federal officer or 

employee detailed to duty on the Authority under subsection (e)(5) shall not be subject to subparagraph (A), but 

shall remain subject to sections 202 through 209 of title 

18, United States Code. 

ø(5) ADDITIONAL PERSONNEL.— ø(A) COMPENSATION.— ø(i) IN GENERAL.—The Authority may appoint and 

fix the compensation of an executive director and such 

other personnel as are necessary to enable the Authority to carry out the duties of the Authority. 

ø(ii) EXCEPTION.—Compensation under clause (i) 

shall not exceed the maximum rate for the Senior Executive Service under section 5382 of title 5, United 

States Code, including any applicable locality-based 

comparability payment that may be authorized under 

section 5304(h)(2)(C) of that title. 

ø(B) EXECUTIVE DIRECTOR.—The executive director shall 

be responsible for— ø(i) the carrying out of the administrative duties of 

the Authority; 

ø(ii) direction of the Authority staff; and 

ø(iii) such other duties as the Authority may assign. 

ø(C) NO FEDERAL EMPLOYEE STATUS.—No member, alternate, officer, or employee of the Authority (except the Federal cochairperson of the Authority, the alternate and staff 

for the Federal cochairperson, and any Federal employee 

detailed to the Authority under subsection (e)(5)) shall be 

considered to be a Federal employee for any purpose. 

ø(i) CONFLICTS OF INTEREST.— ø(1) IN GENERAL.—Except as provided under paragraph (2), 

no State member, alternate, officer, or employee of the Authority shall participate personally and substantially as a member, 

alternate, officer, or employee of the Authority, through deciVerDate Aug 31 2005 05:12 Sep 08, 2007 Jkt 059006 PO 00000 Frm 00049 Fmt 6659 Sfmt 6601 E:\HR\OC\HR321P1.XXX HR321P1

bajohnson on PROD1PC69 with REPORTS
50 

sion, approval, disapproval, recommendation, the rendering of 

advice, investigation, or otherwise, in any proceeding, application, request for a ruling or other determination, contract, 

claim, controversy, or other matter in which, to knowledge of 

the member, alternate, officer, or employee—

ø(A) the member, alternate, officer, or employee; 

ø(B) the spouse, minor child, partner, or organization 

(other than a State or political subdivision of the State) of 

the member, alternate, officer, or employee, in which the 

member, alternate, officer, or employee is serving as officer, director, trustee, partner, or employee; or 

ø(C) any person or organization with whom the member, 

alternate, officer, or employee is negotiating or has any arrangement concerning prospective employment; 

has a financial interest. 

ø(2) DISCLOSURE.—Paragraph (1) shall not apply if the State 

member, alternate, officer, or employee—

ø(A) immediately advises the Authority of the nature 

and circumstances of the proceeding, application, request 

for a ruling or other determination, contract, claim, controversy, or other particular matter presenting a potential 

conflict of interest; 

ø(B) makes full disclosure of the financial interest; and 

ø(C) before the proceeding concerning the matter presenting the conflict of interest, receives a written determination by the Authority that the interest is not so substantial as to be likely to affect the integrity of the services 

that the Authority may expect from the State member, alternate, officer, or employee. 

ø(3) VIOLATION.—Any person that violates this subsection 

shall be fined not more than $10,000, imprisoned not more 

than 2 years, or both. 

ø( j) VALIDITY OF CONTRACTS, LOANS, AND GRANTS.—The Authority may declare void any contract, loan, or grant of or by the Authority in relation to which the Authority determines that there 

has been a violation of any provision under subsection (h)(4), subsection (i), or sections 202 through 209 of title 18, United States 

Code. 

øSEC. 382C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS. 

ø(a) IN GENERAL.—The Authority may approve grants to States 

and public and nonprofit entities for projects, approved in accordance with section 382I—

ø(1) to develop the transportation infrastructure of the region for the purpose of facilitating economic development in the 

region (except that grants for this purpose may only be made 

to a State or local government); 

ø(2) to assist the region in obtaining the job training, employment-related education, and business development (with 

an emphasis on entrepreneurship) that are needed to build and 

maintain strong local economies; 

ø(3) to provide assistance to severely distressed and underdeveloped areas that lack financial resources for improving 

basic public services; 


bajohnson on PROD1PC69 with REPORTS
51 

ø(4) to provide assistance to severely distressed and underdeveloped areas that lack financial resources for equipping industrial parks and related facilities; and 

ø(5) to otherwise achieve the purposes of this subtitle. 

ø(b) FUNDING.—

ø(1) IN GENERAL.—Funds for grants under subsection (a) 

may be provided—

ø(A) entirely from appropriations to carry out this section; 

ø(B) in combination with funds available under another 

Federal or Federal grant program; or 

ø(C) from any other source. 

ø(2) PRIORITY OF FUNDING.—To best build the foundations for 

long-term economic development and to complement other Federal and State resources in the region, Federal funds available 

under this subtitle shall be focused on the activities in the following order or priority: 

ø(A) Basic public infrastructure in distressed counties 

and isolated areas of distress. 

ø(B) Transportation infrastructure for the purpose of facilitating economic development in the region. 

ø(C) Business development, with emphasis on entrepreneurship. 

ø(D) Job training or employment-related education, with 

emphasis on use of existing public educational institutions 

located in the region. 

øSEC. 382D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS. 

ø(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—

ø(1) the States or communities lack the economic resources 

to provide the required matching share; or 

ø(2) there are insufficient funds available under the applicable Federal law authorizing the Federal grant program to meet 

pressing needs of the region. 

ø(b) FEDERAL GRANT PROGRAM FUNDING.—Notwithstanding any 

provision of law limiting the Federal share, the areas eligible for 

assistance, or the authorizations of appropriations of any Federal 

grant program, and in accordance with subsection (c), the Authority, with the approval of the Federal cochairperson and with respect to a project to be carried out in the region—

ø(1) may increase the Federal share of the costs of a project 

under the Federal grant program to not more than 90 percent 

(except as provided in section 382F(b)); and 

ø(2) shall use amounts made available to carry out this subtitle to pay the increased Federal share. 

ø(c) CERTIFICATIONS.—

ø(1) IN GENERAL.—In the case of any project for which all or 

any portion of the basic Federal share of the costs of the 

project is proposed to be paid under this section, no Federal 

contribution shall be made until the Federal official administering the Federal law that authorizes the Federal grant program certifies that the project—


bajohnson on PROD1PC69 with REPORTS
52 

ø(A) meets (except as provided in subsection (b)) the applicable requirements of the applicable Federal grant program; and 

ø(B) could be approved for Federal contribution under 

the Federal grant program if funds were available under 

the law for the project. 

ø(2) CERTIFICATION BY AUTHORITY.—

ø(A) IN GENERAL.—The certifications and determinations 

required to be made by the Authority for approval of 

projects under this Act in accordance with section 382I—

ø(i) shall be controlling; and 

ø(ii) shall be accepted by the Federal agencies. 

ø(B) ACCEPTANCE BY FEDERAL COCHAIRPERSON.—In the 

case of any project described in paragraph (1), any finding, 

report, certification, or documentation required to be submitted with respect to the project to the head of the department, agency, or instrumentality of the Federal Government responsible for the administration of the Federal 

grant program under which the project is carried out shall 

be accepted by the Federal cochairperson. 

øSEC. 382E. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND 

ADMINISTRATIVE EXPENSES. 

ø(a) DEFINITION OF LOCAL DEVELOPMENT DISTRICT.—In this section, the term ‘‘local development district’’ means an entity that—

ø(1) is—

ø(A) a planning district in existence on the date of enactment of this subtitle that is recognized by the Economic 

Development Administration of the Department of Commerce; or 

ø(B) where an entity described in subparagraph (A) does 

not exist—

ø(i) organized and operated in a manner that ensures broad-based community participation and an effective opportunity for other nonprofit groups to contribute to the development and implementation of programs in the region; 

ø(ii) governed by a policy board with at least a simple majority of members consisting of elected officials 

or employees of a general purpose unit of local government who have been appointed to represent the government; 

ø(iii) certified to the Authority as having a charter 

or authority that includes the economic development 

of counties or parts of counties or other political subdivisions within the region—

ø(I) by the Governor of each State in which the 

entity is located; or 

ø(II) by the State officer designated by the appropriate State law to make the certification; and 

ø(iv)(I) a nonprofit incorporated body organized or chartered under the law of the State in which the entity is located; 

ø(II) a nonprofit agency or instrumentality of a State or 

local government; 


bajohnson on PROD1PC69 with REPORTS
53 

ø(III) a public organization established before the date of 

enactment of this subtitle under State law for creation of 

multi-jurisdictional, area-wide planning organizations; or 

ø(IV) a nonprofit association or combination of bodies, 

agencies, and instrumentalities described in subclauses (I) 

through (III); and 

ø(2) has not, as certified by the Federal cochairperson—

ø(A) inappropriately used Federal grant funds from any 

Federal source; or 

ø(B) 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. 

ø(b) GRANTS TO LOCAL DEVELOPMENT DISTRICTS.—

ø(1) IN GENERAL.—The Authority shall make grants for administrative expenses under this section. 

ø(2) CONDITIONS FOR GRANTS.—

ø(A) MAXIMUM AMOUNT.—The amount of any grant 

awarded under paragraph (1) shall not exceed 80 percent 

of the administrative expenses of the local development 

district receiving the grant. 

ø(B) MAXIMUM PERIOD.—No grant described in paragraph (1) shall be awarded to a State agency certified as 

a local development district for a period greater than 3 

years. 

ø(C) 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. 

ø(c) DUTIES OF LOCAL DEVELOPMENT DISTRICTS.—A local development district shall—

ø(1) operate as a lead organization serving multicounty areas 

in the region at the local level; and 

ø(2) serve as a liaison between State and local governments, 

nonprofit organizations (including community-based groups 

and educational institutions), the business community, and 

citizens that—

ø(A) are involved in multijurisdictional planning; 

ø(B) provide technical assistance to local jurisdictions 

and potential grantees; and 

ø(C) provide leadership and civic development assistance. 

øSEC. 382F. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED 

COUNTIES. 

ø(a) DESIGNATIONS.—Not later than 90 days after the date of enactment of this subtitle, and annually thereafter, the Authority, in 

accordance with such criteria as the Authority may establish, shall 

designate—

ø(1) as distressed counties, counties in the region that are 

the most severely and persistently distressed and underdeveloped and have high rates of poverty or unemployment; 

ø(2) as nondistressed counties, counties in the region that 

are not designated as distressed counties under paragraph (1); 

and 


bajohnson on PROD1PC69 with REPORTS
54 

ø(3) as isolated areas of distress, areas located in nondistressed counties (as designated under paragraph (2)) that have 

high rates of poverty or unemployment. 

ø(b) DISTRESSED COUNTIES.—

ø(1) IN GENERAL.—The Authority shall allocate at least 75 

percent of the appropriations made available under section 

382M for programs and projects designed to serve the needs of 

distressed counties and isolated areas of distress in the region. 

ø(2) FUNDING LIMITATIONS.—The funding limitations under 

section 382D(b) shall not apply to a project providing transportation or basic public services to residents of one or more distressed counties or isolated areas of distress in the region. 

ø(c) NONDISTRESSED COUNTIES.—

ø(1) IN GENERAL.—Except as provided in this subsection, no 

funds shall be provided under this subtitle for a project located 

in a county designated as a nondistressed county under subsection (a)(2). 

ø(2) EXCEPTIONS.—

ø(A) IN GENERAL.—The funding prohibition under paragraph (1) shall not apply to grants to fund the administrative expenses of local development districts under section 

382E(b). 

ø(B) MULTICOUNTY PROJECTS.—The Authority may waive 

the application of the funding prohibition under paragraph 

(1) to—

ø(i) a multicounty project that includes participation 

by a nondistressed county; or 

ø(ii) any other type of project; 

if the Authority determines that the project could bring 

significant benefits to areas of the region outside a nondistressed county. 

ø(C) ISOLATED AREAS OF DISTRESS.—For a designation of 

an isolated area of distress for assistance to be effective, 

the designation shall be supported—

ø(i) by the most recent Federal data available; or 

ø(ii) 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. 

ø(d) TRANSPORTATION AND BASIC PUBLIC INFRASTRUCTURE.—The 

Authority shall allocate at least 50 percent of any funds made 

available under section 382M for transportation and basic public 

infrastructure projects authorized under paragraphs (1) and (3) of 

section 382C(a). 

øSEC. 382G. DEVELOPMENT PLANNING PROCESS. 

ø(a) STATE DEVELOPMENT PLAN.—In accordance with policies established by the Authority, each State member shall submit a development plan for the area of the region represented by the State 

member. 

ø(b) CONTENT OF PLAN.—A State development plan submitted 

under subsection (a) shall reflect the goals, objectives, and priorities identified in the regional development plan developed under 

section 382B(d)(2). 


bajohnson on PROD1PC69 with REPORTS
55 

ø(c) CONSULTATION WITH INTERESTED LOCAL PARTIES.—In carrying out the development planning process (including the selection 

of programs and projects for assistance), a State may— ø(1) consult with— ø(A) local development districts; and 

ø(B) local units of government; and 

ø(2) take into consideration the goals, objectives, priorities, 

and recommendations of the entities described in paragraph 

(1). 

ø(d) PUBLIC PARTICIPATION.— ø(1) IN GENERAL.—The Authority 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. 

ø(2) REGULATIONS.—The Authority shall develop guidelines 

for providing public participation described in paragraph (1), 

including public hearings. 

øSEC. 382H. PROGRAM DEVELOPMENT CRITERIA. 

ø(a) IN GENERAL.—In considering programs and projects to be 

provided assistance under this subtitle, and in establishing a priority ranking of the requests for assistance provided by the Authority, the Authority shall follow procedures that ensure, to the maximum extent practicable, consideration of— ø(1) the relationship of the project or class of projects to overall regional development; 

ø(2) the per capita income and poverty and unemployment 

rates in an area; 

ø(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; 

ø(4) the importance of the project or class of projects in relation to other projects or classes of projects that may be in competition for the same funds; 

ø(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 served by the 

project; and 

ø(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. 

ø(b) NO RELOCATION ASSISTANCE.—No financial assistance authorized by this subtitle shall be used to assist a person or entity 

in relocating from one area to another, except that financial assistance may be used as otherwise authorized by this title to attract 

businesses from outside the region to the region. 

ø(c) REDUCTION OF FUNDS.—Funds may be provided for a program or project in a State under this subtitle only if the Authority 

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 the region, 

will not be reduced as a result of funds made available by this subtitle. 


bajohnson on PROD1PC69 with REPORTS
56 

øSEC. 382I. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS. 

ø(a) IN GENERAL.—A State or regional development plan or any 

multistate subregional plan that is proposed for development under 

this subtitle shall be reviewed and approved by the Authority. 

ø(b) EVALUATION BY STATE MEMBER.—An application 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 Authority representing the applicant. 

ø(c) CERTIFICATION.—An application for a grant or other assistance for a project shall be approved only on certification by the 

State member that the application for the project—

ø(1) describes ways in which the project complies with any 

applicable State development plan; 

ø(2) meets applicable criteria under section 382H; 

ø(3) provides adequate assurance that the proposed project 

will be properly administered, operated, and maintained; and 

ø(4) otherwise meets the requirements of this subtitle. 

ø(d) APPROVAL OF GRANT APPLICATIONS.—On certification by a 

State member of the Authority of an application for a grant or 

other assistance for a specific project under this section, an affirmative vote of the Authority under section 382B(c) shall be required 

for approval of the application. 

øSEC. 382J. CONSENT OF STATES. 

øNothing in this subtitle requires any State to engage in or accept any program under this subtitle without the consent of the 

State. 

øSEC. 382K. RECORDS. 

ø(a) RECORDS OF THE AUTHORITY.—

ø(1) IN GENERAL.—The Authority shall maintain accurate 

and complete records of all transactions and activities of the 

Authority. 

ø(2) AVAILABILITY.—All records of the Authority shall be 

available for audit and examination by the Comptroller General of the United States and the Inspector General of the Department of Agriculture (including authorized representatives 

of the Comptroller General and the Inspector General of the 

Department of Agriculture). 

ø(b) RECORDS OF RECIPIENTS OF FEDERAL ASSISTANCE.—

ø(1) IN GENERAL.—A recipient of Federal funds under this 

subtitle shall, as required by the Authority, maintain accurate 

and complete records of transactions and activities financed 

with Federal funds and report on the transactions and activities to the Authority. 

ø(2) AVAILABILITY.—All records required under paragraph (1) 

shall be available for audit by the Comptroller General of the 

United States, the Inspector General of the Department of Agriculture, and the Authority (including authorized representatives of the Comptroller General, the Inspector General of the 

Department of Agriculture, and the Authority). 

ø(c) ANNUAL AUDIT.—The Inspector General of the Department 

of Agriculture shall audit the activities, transactions, and records 

of the Authority on an annual basis. 


bajohnson on PROD1PC69 with REPORTS
57 

øSEC. 382L. ANNUAL REPORT. 

øNot later than 180 days after the end of each fiscal year, the 

Authority shall submit to the President and to Congress a report 

describing the activities carried out under this subtitle. 

øSEC. 382M. AUTHORIZATION OF APPROPRIATIONS. 

ø(a) IN GENERAL.—There is authorized to be appropriated to the Authority to carry out this subtitle $30,000,000 for each of fiscal 

years 2001 through 2007, to remain available until expended. 

ø(b) ADMINISTRATIVE EXPENSES.—Not more than 5 percent of the 

amount appropriated under subsection (a) for a fiscal year shall be 

used for administrative expenses of the Authority. 

øSEC. 382N. TERMINATION OF AUTHORITY. 

øThis subtitle and the authority provided under this subtitle expire on October 1, 2007. 

øSubtitle G—Northern Great Plains 

Regional Authority 

øSEC. 383A. DEFINITIONS. 

øIn this subtitle: 

ø(1) AUTHORITY.—The term ‘‘Authority’’ means the Northern 

Great Plains Regional Authority established by section 383B. 

ø(2) FEDERAL GRANT PROGRAM.—The term ‘‘Federal grant 

program’’ means a Federal grant program to provide assistance 

in—

ø(A) implementing the recommendations of the Northern 

Great Plains Rural Development Commission established 

by the Northern Great Plains Rural Development Act (7 

U.S.C. 2661 note; Public Law 103–318); 

ø(B) acquiring or developing land; 

ø(C) constructing or equipping a highway, road, bridge, 

or facility; 

ø(D) carrying out other economic development activities; 

or 

ø(E) conducting research activities related to the activities described in subparagraphs (A) through (D). 

ø(3) 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). 

ø(4) REGION.—The term ‘‘region’’ means the States of Iowa, 

Minnesota, Nebraska, North Dakota, and South Dakota. 

øSEC. 383B. NORTHERN GREAT PLAINS REGIONAL AUTHORITY. 

ø(a) ESTABLISHMENT.—

ø(1) IN GENERAL.—There is established the Northern Great 

Plains Regional Authority. 

ø(2) COMPOSITION.—The Authority shall be composed of—

ø(A) a Federal member, to be appointed by the President, by and with the advice and consent of the Senate; 

ø(B) the Governor (or a designee of the Governor) of 

each State in the region that elects to participate in the 

Authority; and 

ø(C) a member of an Indian tribe, who shall be a chairperson of an Indian tribe in the region or a designee of 


bajohnson on PROD1PC69 with REPORTS
58 

such a chairperson, to be appointed by the President, by 

and with the advice and consent of the Senate. 

ø(3) COCHAIRPERSONS.—The Authority shall be headed by—

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

ø(i) as the Federal cochairperson; and 

ø(ii) as a liaison between the Federal Government 

and the Authority; 

ø(B) a State cochairperson, who—

ø(i) shall be a Governor of a participating State in 

the region; and 

ø(ii) shall be elected by the State members for a 

term of not less than 1 year; and 

ø(C) the member of an Indian tribe, who shall serve—

ø(i) as the tribal cochairperson; and 

ø(ii) as a liaison between the governments of Indian 

tribes in the region and the Authority. 

ø(b) ALTERNATE MEMBERS.—

ø(1) ALTERNATE FEDERAL COCHAIRPERSON.—The President 

shall appoint an alternate Federal cochairperson. 

ø(2) STATE ALTERNATES.—

ø(A) IN GENERAL.—The State member of a participating 

State may have a single alternate, who shall be—

ø(i) a resident of that State; and 

ø(ii) appointed by the Governor of the State. 

ø(B) QUORUM.—A State alternate member shall not be 

counted toward the establishment of a quorum of the 

members of the Authority in any case in which a quorum 

of the State members is required to be present. 

ø(3) ALTERNATE TRIBAL COCHAIRPERSON.—The President 

shall appoint an alternate tribal cochairperson, by and with 

the advice and consent of the Senate. 

ø(4) DELEGATION OF POWER.—No power or responsibility of 

the Authority specified in paragraphs (2) and (3) of subsection 

(c), and no voting right of any member of the Authority, shall 

be delegated to any person who is not—

ø(A) a member of the Authority; or 

ø(B) entitled to vote in Authority meetings. 

ø(c) VOTING.—

ø(1) IN GENERAL.—A decision by the Authority shall require 

a majority vote of the Authority (not including any member 

representing a State that is delinquent under subsection 

(g)(2)(D)) to be effective. 

ø(2) QUORUM.—A quorum of State members shall be required to be present for the Authority to make any policy decision, including—

ø(A) a modification or revision of an Authority policy decision; 

ø(B) approval of a State or regional development plan; 

and 

ø(C) any allocation of funds among the States. 

ø(3) PROJECT AND GRANT PROPOSALS.—The approval of 

project and grant proposals shall be—

ø(A) a responsibility of the Authority; and 

ø(B) conducted in accordance with section 383I. 


bajohnson on PROD1PC69 with REPORTS
59 

ø(4) VOTING BY ALTERNATE MEMBERS.—An alternate member 

shall vote in the case of the absence, death, disability, removal, 

or resignation of the Federal, State, or Indian tribe member for 

whom the alternate member is an alternate. 

ø(d) DUTIES.—The Authority shall— ø(1) develop, on a continuing basis, comprehensive and coordinated plans and programs to establish priorities and approve grants for the economic development of the region, giving 

due consideration to other Federal, State, tribal, and local 

planning and development activities in the region; 

ø(2) not later than 220 days after the date of enactment of 

this subtitle, establish priorities in a development plan for the 

region (including 5-year regional outcome targets); 

ø(3) assess the needs and assets of the region based on available research, demonstrations, investigations, assessments, 

and evaluations of the region prepared by Federal, State, tribal, and local agencies, universities, local development districts, 

and other nonprofit groups; 

ø(4) formulate and recommend to the Governors and legislatures of States that participate in the Authority forms of interstate cooperation; 

ø(5) work with State, tribal, and local agencies in developing 

appropriate model legislation; 

ø(6)(A) enhance the capacity of, and provide support for, 

local development districts in the region; or 

ø(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; 

ø(7) encourage private investment in industrial, commercial, 

and other economic development projects in the region; and 

ø(8) cooperate with and assist State governments with economic development programs of participating States. 

ø(e) ADMINISTRATION.—In carrying out subsection (d), the Authority may— ø(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 Authority as the Authority considers appropriate; 

ø(2) authorize, through the Federal, State, or tribal cochairperson or any other member of the Authority designated by the 

Authority, the administration of oaths if the Authority determines that testimony should be taken or evidence received 

under oath; 

ø(3) request from any Federal, State, tribal, or local agency 

such information as may be available to or procurable by the 

agency that may be of use to the Authority in carrying out the 

duties of the Authority; 

ø(4) adopt, amend, and repeal bylaws and rules governing 

the conduct of business and the performance of duties of the 

Authority; 

ø(5) request the head of any Federal agency to detail to the 

Authority such personnel as the Authority requires to carry 

out duties of the Authority, each such detail to be without loss 

of seniority, pay, or other employee status; 


bajohnson on PROD1PC69 with REPORTS
60 

ø(6) request the head of any State agency, tribal government, 

or local government to detail to the Authority such personnel 

as the Authority requires to carry out duties of the Authority, 

each such detail to be without loss of seniority, pay, or other 

employee status; 

ø(7) provide for coverage of Authority employees in a suitable 

retirement and employee benefit system by—

ø(A) making arrangements or entering into contracts 

with any participating State government or tribal government; or 

ø(B) otherwise providing retirement and other employee 

benefit coverage; 

ø(8) accept, use, and dispose of gifts or donations of services 

or real, personal, tangible, or intangible property; 

ø(9) enter into and perform such contracts, leases, cooperative agreements, or other transactions as are necessary to 

carry out Authority duties, including any contracts, leases, or 

cooperative agreements with—

ø(A) any department, agency, or instrumentality of the 

United States; 

ø(B) any State (including a political subdivision, agency, 

or instrumentality of the State); 

ø(C) any Indian tribe in the region; or 

ø(D) any person, firm, association, or corporation; and 

ø(10) establish and maintain a central office and field offices 

at such locations as the Authority may select. 

ø(f) FEDERAL AGENCY COOPERATION.—A Federal agency shall—

ø(1) cooperate with the Authority; and 

ø(2) provide, on request of the Federal cochairperson, appropriate assistance in carrying out this subtitle, in accordance 

with applicable Federal laws (including regulations). 

ø(g) ADMINISTRATIVE EXPENSES.—

ø(1) FEDERAL SHARE.—The Federal share of the administrative expenses of the Authority shall be—

ø(A) for fiscal year 2002, 100 percent; 

ø(B) for fiscal year 2003, 75 percent; and 

ø(C) for fiscal year 2004 and each fiscal year thereafter, 

50 percent. 

ø(2) NON-FEDERAL SHARE.—

ø(A) IN GENERAL.—The non-Federal share of the administrative expenses of the Authority shall be paid by nonFederal sources in the States that participate in the Authority. 

ø(B) SHARE PAID BY EACH STATE.—The share of administrative expenses of the Authority to be paid by non-Federal 

sources in each State shall be determined by the Authority. 

ø(C) NO FEDERAL PARTICIPATION.—The Federal cochairperson shall not participate or vote in any decision under 

subparagraph (B). 

ø(D) DELINQUENT STATES.—If a State is delinquent in 

payment of the State’s share of administrative expenses of 

the Authority under this subsection—


bajohnson on PROD1PC69 with REPORTS
61 

ø(i) no assistance under this subtitle shall be provided to the State (including assistance to a political 

subdivision or a resident of the State); and 

ø(ii) no member of the Authority from the State 

shall participate or vote in any action by the Authority. 

ø(h) COMPENSATION.— ø(1) FEDERAL AND TRIBAL COCHAIRPERSONS.—The Federal cochairperson and the tribal cochairperson shall be compensated 

by the Federal Government at the annual rate of basic pay 

prescribed for level III of the Executive Schedule in subchapter 

II of chapter 53 of title 5, United States Code. 

ø(2) ALTERNATE FEDERAL AND TRIBAL COCHAIRPERSONS.—The 

alternate Federal cochairperson and the alternate tribal cochairperson—

ø(A) shall be compensated by the Federal Government at 

the annual rate of basic pay prescribed for level V of the 

Executive Schedule described in paragraph (1); and 

ø(B) when not actively serving as an alternate, shall perform such functions and duties as are delegated by the 

Federal cochairperson or the tribal cochairperson, respectively. 

ø(3) STATE MEMBERS AND ALTERNATES.— ø(A) IN GENERAL.—A State shall compensate each member and alternate representing the State on the Authority 

at the rate established by State law. 

ø(B) NO ADDITIONAL COMPENSATION.—No State member 

or alternate member shall receive any salary, or any contribution to or supplementation of salary from any source 

other than the State for services provided by the member 

or alternate member to the Authority. 

ø(4) DETAILED EMPLOYEES.—

ø(A) IN GENERAL.—No person detailed to serve the Authority under subsection (e)(6) shall receive any salary or 

any contribution to or supplementation of salary for services provided to the Authority from— ø(i) any source other than the State, tribal, local, or 

intergovernmental agency from which the person was 

detailed; or 

ø(ii) the Authority. 

ø(B) VIOLATION.—Any person that violates this paragraph shall be fined not more than $5,000, imprisoned not 

more than 1 year, or both. 

ø(C) APPLICABLE LAW.—The Federal cochairperson, the 

alternate Federal cochairperson, and any Federal officer or 

employee detailed to duty on the Authority under subsection (e)(5) shall not be subject to subparagraph (A), but 

shall remain subject to sections 202 through 209 of title 

18, United States Code. 

ø(5) ADDITIONAL PERSONNEL.— ø(A) COMPENSATION.— ø(i) IN GENERAL.—The Authority may appoint and 

fix the compensation of an executive director and such 

other personnel as are necessary to enable the Authority to carry out the duties of the Authority. 


bajohnson on PROD1PC69 with REPORTS
62 

ø(ii) EXCEPTION.—Compensation under clause (i) 

shall not exceed the maximum rate for the Senior Executive Service under section 5382 of title 5, United 

States Code, including any applicable locality-based 

comparability payment that may be authorized under 

section 5304(h)(2)(C) of that title. 

ø(B) EXECUTIVE DIRECTOR.—The executive director shall 

be responsible for—

ø(i) the carrying out of the administrative duties of 

the Authority; 

ø(ii) direction of the Authority staff; and 

ø(iii) such other duties as the Authority may assign. 

ø(C) NO FEDERAL EMPLOYEE STATUS.—No member, alternate, officer, or employee of the Authority (except the Federal cochairperson of the Authority, the alternate and staff 

for the Federal cochairperson, and any Federal employee 

detailed to the Authority under subsection (e)(5)) shall be 

considered to be a Federal employee for any purpose. 

ø(i) CONFLICTS OF INTEREST.—

ø(1) IN GENERAL.—Except as provided under paragraph (2), 

no State member, Indian tribe member, State alternate, officer, 

or employee of the Authority shall participate personally and 

substantially as a member, alternate, officer, or employee of 

the Authority, through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, in any proceeding, application, request for a ruling or 

other determination, contract, claim, controversy, or other matter in which, to knowledge of the member, alternate, officer, or 

employee—

ø(A) the member, alternate, officer, or employee; 

ø(B) the spouse, minor child, partner, or organization 

(other than a State or political subdivision of the State or 

the Indian tribe) of the member, alternate, officer, or employee, in which the member, alternate, officer, or employee is serving as officer, director, trustee, partner, or 

employee; or 

ø(C) any person or organization with whom the member, 

alternate, officer, or employee is negotiating or has any arrangement concerning prospective employment; 

has a financial interest. 

ø(2) DISCLOSURE.—Paragraph (1) shall not apply if the State 

member, Indian tribe member, alternate, officer, or employee—

ø(A) immediately advises the Authority of the nature 

and circumstances of the proceeding, application, request 

for a ruling or other determination, contract, claim, controversy, or other particular matter presenting a potential 

conflict of interest; 

ø(B) makes full disclosure of the financial interest; and 

ø(C) before the proceeding concerning the matter presenting the conflict of interest, receives a written determination by the Authority that the interest is not so substantial as to be likely to affect the integrity of the services 

that the Authority may expect from the State member, Indian tribe member, alternate, officer, or employee. 


bajohnson on PROD1PC69 with REPORTS
63 

ø(3) VIOLATION.—Any person that violates this subsection 

shall be fined not more than $10,000, imprisoned not more 

than 2 years, or both. 

ø(j) VALIDITY OF CONTRACTS, LOANS, AND GRANTS.—The Authority may declare void any contract, loan, or grant of or by the Authority in relation to which the Authority determines that there 

has been a violation of any provision under subsection (h)(4) or 

subsection (i) of this subtitle, or sections 202 through 209 of title 

18, United States Code. 

øSEC. 383C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS. 

ø(a) IN GENERAL.—The Authority may approve grants to States, 

Indian tribes, local governments, and public and nonprofit organizations for projects, approved in accordance with section 383I—

ø(1) to develop the transportation and telecommunication infrastructure of the region for the purpose of facilitating economic development in the region (except that grants for this 

purpose may be made only to States, Indian tribes, local governments, and nonprofit organizations); 

ø(2) to assist the region in obtaining the job training, employment-related education, and business development (with 

an emphasis on entrepreneurship) that are needed to build and 

maintain strong local economies; 

ø(3) to provide assistance to severely distressed and underdeveloped areas that lack financial resources for improving 

basic public services; 

ø(4) to provide assistance to severely distressed and underdeveloped areas that lack financial resources for equipping industrial parks and related facilities; and 

ø(5) to otherwise achieve the purposes of this subtitle. 

ø(b) FUNDING.—

ø(1) IN GENERAL.—Funds for grants under subsection (a) 

may be provided—

ø(A) entirely from appropriations to carry out this section; 

ø(B) in combination with funds available under another 

Federal grant program; or 

ø(C) from any other source. 

ø(2) PRIORITY OF FUNDING.—To best build the foundations for 

long-term economic development and to complement other Federal, State, and tribal resources in the region, Federal funds 

available under this subtitle shall be focused on the activities 

in the following order or priority: 

ø(A) Basic public infrastructure in distressed counties 

and isolated areas of distress. 

ø(B) Transportation and telecommunication infrastructure for the purpose of facilitating economic development 

in the region. 

ø(C) Business development, with emphasis on entrepreneurship. 

ø(D) Job training or employment-related education, with 

emphasis on use of existing public educational institutions 

located in the region. 


bajohnson on PROD1PC69 with REPORTS
64 

øSEC. 383D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS. 

ø(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— ø(1) they lack the economic resources to provide the required 

matching share; or 

ø(2) there are insufficient funds available under the applicable Federal law authorizing the Federal grant program to meet 

pressing needs of the region. 

ø(b) FEDERAL GRANT PROGRAM FUNDING.—Notwithstanding any 

provision of law limiting the Federal share, the areas eligible for 

assistance, or the authorizations of appropriations, under any Federal grant program, and in accordance with subsection (c), the Authority, with the approval of the Federal cochairperson and with 

respect to a project to be carried out in the region—

ø(1) may increase the Federal share of the costs of a project 

under any Federal grant program to not more than 90 percent 

(except as provided in section 383F(b)); and 

ø(2) shall use amounts made available to carry out this subtitle to pay the increased Federal share. 

ø(c) CERTIFICATIONS.—

ø(1) IN GENERAL.—In the case of any project for which all or 

any portion of the basic Federal share of the costs of the 

project is proposed to be paid under this section, no Federal 

contribution shall be made until the Federal official administering the Federal law that authorizes the Federal grant program certifies that the project—

ø(A) meets (except as provided in subsection (b)) the applicable requirements of the applicable Federal grant program; and 

ø(B) could be approved for Federal contribution under 

the Federal grant program if funds were available under 

the law for the project. 

ø(2) CERTIFICATION BY AUTHORITY.— ø(A) IN GENERAL.—The certifications and determinations 

required to be made by the Authority for approval of 

projects under this Act in accordance with section 383I— ø(i) shall be controlling; and 

ø(ii) shall be accepted by the Federal agencies. 

ø(B) ACCEPTANCE BY FEDERAL COCHAIRPERSON.—In the 

case of any project described in paragraph (1), any finding, 

report, certification, or documentation required to be submitted with respect to the project to the head of the department, agency, or instrumentality of the Federal Government responsible for the administration of the Federal 

grant program under which the project is carried out shall 

be accepted by the Federal cochairperson. 

øSEC. 383E. LOCAL DEVELOPMENT DISTRICTS AND ORGANIZATIONS 

AND NORTHERN GREAT PLAINS INC. 

ø(a) DEFINITION OF LOCAL DEVELOPMENT DISTRICT.—In this section, the term ‘‘local development district’’ means an entity— ø(1) that— ø(A) is a planning district in existence on the date of enactment of this subtitle that is recognized by the Economic 


bajohnson on PROD1PC69 with REPORTS
65 

Development Administration of the Department of Commerce; or 

ø(B) is—ø(i) organized and operated in a manner that ensures broad-based community participation and an effective opportunity for other nonprofit groups to contribute to the development and implementation of programs in the region; 

ø(ii) governed by a policy board with at least a simple majority of members consisting of— ø(I) elected officials or employees of a general 

purpose unit of local government who have been 

appointed to represent the government; or 

ø(II) individuals appointed by the general purpose unit of local government to represent the government; 

ø(iii) certified to the Authority as having a charter 

or authority that includes the economic development 

of counties or parts of counties or other political subdivisions within the region— ø(I) by the Governor of each State in which the 

entity is located; or 

ø(II) by the State officer designated by the appropriate State law to make the certification; and 

ø(iv)(I) a nonprofit incorporated body organized or 

chartered under the law of the State in which the entity is located; 

ø(II) a nonprofit agency or instrumentality of a 

State or local government; 

ø(III) a public organization established before the 

date of enactment of this subtitle under State law for 

creation of multi-jurisdictional, area-wide planning organizations; or 

ø(IV) a nonprofit association or combination of bodies, agencies, and instrumentalities described in subclauses (I) through (III); and 

ø(2) that has not, as certified by the Federal cochairperson—

ø(A) inappropriately used Federal grant funds from any 

Federal source; or 

ø(B) 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. 

ø(b) GRANTS TO LOCAL DEVELOPMENT DISTRICTS.—

ø(1) IN GENERAL.—The Authority may make grants for administrative expenses under this section. 

ø(2) CONDITIONS FOR GRANTS.—

ø(A) MAXIMUM AMOUNT.—The amount of any grant 

awarded under paragraph (1) shall not exceed 80 percent 

of the administrative expenses of the local development 

district receiving the grant. 

ø(B) MAXIMUM PERIOD.—No grant described in paragraph (1) shall be awarded to a State agency certified as 

a local development district for a period greater than 3 

years. 


bajohnson on PROD1PC69 with REPORTS
66 

ø(C) 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. 

ø(c) DUTIES OF LOCAL DEVELOPMENT DISTRICTS.—A local development district shall— ø(1) operate as a lead organization serving multicounty areas 

in the region at the local level; and 

ø(2) serve as a liaison between State, tribal, and local governments, nonprofit organizations (including community-based 

groups and educational institutions), the business community, 

and citizens that— ø(A) are involved in multijurisdictional planning; 

ø(B) provide technical assistance to local jurisdictions 

and potential grantees; and 

ø(C) provide leadership and civic development assistance. 

ø(d) NORTHERN GREAT PLAINS INC.—Northern Great Plains Inc., 

a nonprofit corporation incorporated in the State of Minnesota to 

implement the recommendations of the Northern Great Plains 

Rural Development Commission established by the Northern Great 

Plains Rural Development Act (7 U.S.C. 2661 note; Public Law 

103–318)—

ø(1) shall serve as an independent, primary resource for the 

Authority on issues of concern to the region; 

ø(2) shall advise the Authority on development of international trade; 

ø(3) may provide research, education, training, and other 

support to the Authority; and 

ø(4) may carry out other activities on its own behalf or on 

behalf of other entities. 

øSEC. 383F. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED 

COUNTIES. 

ø(a) DESIGNATIONS.—Not later than 90 days after the date of enactment of this subtitle, and annually thereafter, the Authority, in 

accordance with such criteria as the Authority may establish, shall 

designate—

ø(1) as distressed counties, counties in the region that are 

the most severely and persistently distressed and underdeveloped and have high rates of poverty, unemployment, or 

outmigration; 

ø(2) as nondistressed counties, counties in the region that 

are not designated as distressed counties under paragraph (1); 

and 

ø(3) as isolated areas of distress, areas located in nondistressed counties (as designated under paragraph (2)) that have 

high rates of poverty, unemployment, or outmigration. 

ø(b) DISTRESSED COUNTIES.—

ø(1) IN GENERAL.—The Authority shall allocate at least 75 

percent of the appropriations made available under section 

383M for programs and projects designed to serve the needs of 

distressed counties and isolated areas of distress in the region. 

ø(2) FUNDING LIMITATIONS.—The funding limitations under 

section 383D(b) shall not apply to a project to provide transportation or telecommunication or basic public services to resiVerDate Aug 31 2005 05:12 Sep 08, 2007 Jkt 059006 PO 00000 Frm 00066 Fmt 6659 Sfmt 6601 E:\HR\OC\HR321P1.XXX HR321P1

bajohnson on PROD1PC69 with REPORTS
67 

dents of 1 or more distressed counties or isolated areas of distress in the region. 

ø(c) NONDISTRESSED COUNTIES.— ø(1) IN GENERAL.—Except as provided in paragraph (2), no 

funds shall be provided under this subtitle for a project located 

in a county designated as a nondistressed county under subsection (a)(2). 

ø(2) EXCEPTIONS.— ø(A) IN GENERAL.—The funding prohibition under paragraph (1) shall not apply to grants to fund the administrative expenses of local development districts under section 

383E(b). 

ø(B) MULTICOUNTY PROJECTS.—The Authority may waive 

the application of the funding prohibition under paragraph 

(1) to—

ø(i) a multicounty project that includes participation 

by a nondistressed county; or 

ø(ii) any other type of project; 

if the Authority determines that the project could bring 

significant benefits to areas of the region outside a nondistressed county. 

ø(C) ISOLATED AREAS OF DISTRESS.—For a designation of 

an isolated area of distress for assistance to be effective, 

the designation shall be supported— ø(i) by the most recent Federal data available; or 

ø(ii) 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. 

ø(d) TRANSPORTATION, TELECOMMUNICATION, AND BASIC PUBLIC

INFRASTRUCTURE.—The Authority shall allocate at least 50 percent 

of any funds made available under section 383M for transportation, 

telecommunication, and basic public infrastructure projects authorized under paragraphs (1) and (3) of section 383C(a). 

øSEC. 383G. DEVELOPMENT PLANNING PROCESS. 

ø(a) STATE DEVELOPMENT PLAN.—In accordance with policies established by the Authority, each State member shall submit a development plan for the area of the region represented by the State 

member. 

ø(b) CONTENT OF PLAN.—A State development plan submitted 

under subsection (a) shall reflect the goals, objectives, and priorities identified in the regional development plan developed under 

section 383B(d)(2). 

ø(c) CONSULTATION WITH INTERESTED LOCAL PARTIES.—In carrying out the development planning process (including the selection 

of programs and projects for assistance), a State may—

ø(1) consult with—

ø(A) local development districts; and 

ø(B) local units of government; and 

ø(2) take into consideration the goals, objectives, priorities, 

and recommendations of the entities described in paragraph 

(1). 

ø(d) PUBLIC PARTICIPATION.—

ø(1) IN GENERAL.—The Authority and applicable State and 

local development districts shall encourage and assist, to the 


bajohnson on PROD1PC69 with REPORTS
68 

maximum extent practicable, public participation in the development, revision, and implementation of all plans and programs under this subtitle. 

ø(2) REGULATIONS.—The Authority shall develop guidelines 

for providing public participation described in paragraph (1), 

including public hearings. 

øSEC. 383H. PROGRAM DEVELOPMENT CRITERIA. 

ø(a) IN GENERAL.—In considering programs and projects to be 

provided assistance under this subtitle, and in establishing a priority ranking of the requests for assistance provided to the Authority, the Authority shall follow procedures that ensure, to the maximum extent practicable, consideration of—

ø(1) the relationship of the project or class of projects to overall regional development; 

ø(2) the per capita income and poverty and unemployment 

and outmigration rates in an area; 

ø(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; 

ø(4) the importance of the project or class of projects in relation to other projects or classes of projects that may be in competition for the same funds; 

ø(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 

ø(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. 

ø(b) NO RELOCATION ASSISTANCE.—No financial assistance authorized by this subtitle shall be used to assist a person or entity 

in relocating from one area to another, except that financial assistance may be used as otherwise authorized by this title to attract 

businesses from outside the region to the region. 

ø(c) MAINTENANCE OF EFFORT.—Funds may be provided for a 

program or project in a State under this subtitle only if the Authority 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 the 

region, will not be reduced as a result of funds made available by 

this subtitle. 

øSEC. 383I. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS. 

ø(a) IN GENERAL.—A State or regional development plan or any 

multistate subregional plan that is proposed for development under 

this subtitle shall be reviewed by the Authority. 

ø(b) EVALUATION BY STATE MEMBER.—An application 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 Authority representing the applicant. 

ø(c) CERTIFICATION.—An application for a grant or other assistance for a project shall be approved only on certification by the 

State member that the application for the project—


bajohnson on PROD1PC69 with REPORTS
69 

ø(1) describes ways in which the project complies with any 

applicable State development plan; 

ø(2) meets applicable criteria under section 383H; 

ø(3) provides adequate assurance that the proposed project 

will be properly administered, operated, and maintained; and 

ø(4) otherwise meets the requirements of this subtitle. 

ø(d) VOTES FOR DECISIONS.—On certification by a State member 

of the Authority of an application for a grant or other assistance 

for a specific project under this section, an affirmative vote of the 

Authority under section 383B(c) shall be required for approval of 

the application. 

øSEC. 383J. CONSENT OF STATES. 

øNothing in this subtitle requires any State to engage in or accept any program under this subtitle without the consent of the 

State. 

øSEC. 383K. RECORDS. 

ø(a) RECORDS OF THE AUTHORITY.—

ø(1) IN GENERAL.—The Authority shall maintain accurate 

and complete records of all transactions and activities of the 

Authority. 

ø(2) AVAILABILITY.—All records of the Authority shall be 

available for audit and examination by the Comptroller General of the United States and the Inspector General of the Department of Agriculture (including authorized representatives 

of the Comptroller General and the Inspector General of the 

Department of Agriculture). 

ø(b) RECORDS OF RECIPIENTS OF FEDERAL ASSISTANCE.—

ø(1) IN GENERAL.—A recipient of Federal funds under this 

subtitle shall, as required by the Authority, maintain accurate 

and complete records of transactions and activities financed 

with Federal funds and report to the Authority on the transactions and activities to the Authority. 

ø(2) AVAILABILITY.—All records required under paragraph (1) 

shall be available for audit by the Comptroller General of the 

United States, the Inspector General of the Department of Agriculture, and the Authority (including authorized representatives of the Comptroller General, the Inspector General of the 

Department of Agriculture, and the Authority). 

ø(c) ANNUAL AUDIT.—The Inspector General of the Department 

of Agriculture shall audit the activities, transactions, and records 

of the Authority on an annual basis. 

øSEC. 383L. ANNUAL REPORT. 

øNot later than 180 days after the end of each fiscal year, the 

Authority shall submit to the President and to Congress a report 

describing the activities carried out under this subtitle. 

øSEC. 383M. AUTHORIZATION OF APPROPRIATIONS. 

ø(a) IN GENERAL.—There is authorized to be appropriated to the 

Authority to carry out this subtitle $30,000,000 for each of fiscal 

years 2002 through 2007, to remain available until expended. 

ø(b) ADMINISTRATIVE EXPENSES.—Not more than 5 percent of the 

amount appropriated under subsection (a) for a fiscal year shall be 

used for administrative expenses of the Authority. 


bajohnson on PROD1PC69 with REPORTS
70 

ø(c) MINIMUM STATE SHARE OF GRANTS.—Notwithstanding any 

other provision of this subtitle, for any fiscal year, the aggregate 

amount of grants received by a State and all persons or entities in 

the State under this subtitle shall be not less than 1⁄3 of the product obtained by multiplying— 

ø(1) the aggregate amount of grants under this subtitle for 

the fiscal year; and 

ø(2) the ratio that— 

ø(A) the population of the State (as determined by the 

Secretary of Commerce based on the most recent decennial 

census for which data are available); bears to 

ø(B) the population of the region (as so determined). 

øSEC. 383N. TERMINATION OF AUTHORITY. 

øThe authority provided by this subtitle terminates effective October 1, 2007.¿ 

* * * * * * * 

SECTION 11 OF THE INSPECTOR GENERAL ACT OF 1978 

DEFINITIONS

SEC. 11. As used in this Act— 

(1) the term ‘‘head of the establishment’’ means the Secretary of Agriculture, Commerce, Defense, Education, Energy, 

Health and Human Services, Housing and Urban Development, the Interior, Labor, State, Transportation, Homeland Security, or the Treasury; the Attorney General; the Administrator of the Agency for International Development, Environmental Protection, General Services, National Aeronautics and 

Space, or Small Business, or Veterans’ Affairs; the Director of 

the Federal Emergency Management Agency, or the Office of 

Personnel Management; the Chairman of the Nuclear Regulatory Commission or the Railroad Retirement Board; the 

Chairperson of the Thrift Depositor Protection Oversight 

Board; the Chief Executive Officer of the Corporation for National and Community Service; the Administrator of the Community Development Financial Institutions Fund; the chief executive officer of the Resolution Trust Corporation; the Chairperson of the Federal Deposit Insurance Corporation; the Commissioner of Social Security, Social Security Administration; 

the Board of Directors of the Tennessee Valley Authority; øor 

the President of the Export-Import Bank;¿ the President of the 

Export-Import Bank; or the Federal Cochairpersons of the Commissions established under section 15301 of title 40, United 

States Code; as the case may be; 

(2) the term ‘‘establishment’’ means the Department of Agriculture, Commerce, Defense, Education, Energy, Health and 

Human Services, Housing and Urban Development, the Interior, Justice, Labor, State, Transportation, Homeland Security, 

or the Treasury; the Agency for International Development, the 

Community Development Financial Institutions Fund, the Environmental Protection Agency, the Federal Emergency Management Agency, the General Services Administration, the National Aeronautics and Space Administration, the Nuclear RegVerDate Aug 31 2005 05:12 Sep 08, 2007 Jkt 059006 PO 00000 Frm 00070 Fmt 6659 Sfmt 6601 E:\HR\OC\HR321P1.XXX HR321P1

bajohnson on PROD1PC69 with REPORTS
71 

ulatory Commission, the Office of Personnel Management, the 

Railroad Retirement Board, the Resolution Trust Corporation, 

the Federal Deposit Insurance Corporation, the Small Business 

Administration, the Corporation for National and Community 

Service, or the Veterans’ Administration, the Social Security 

Administration, the Tennessee Valley Authority, øor the Export-Import Bank,¿ the Export-Import Bank, or the Commissions established under section 15301 of title 40, United States 

Code, as the case may be; 

* * * * * * * 

Æ 


bajohnson on PROD1PC69 with REPORTS