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[House Report 110-321]
[From the U.S. Government Publishing Office]

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.

SEC. 3. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT.

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

     ``Subtitle V--Regional Economic and Infrastructure Development

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

                   ``CHAPTER 151--GENERAL PROVISIONS

``Sec.
``15101. Definitions.

``Sec. 15101. Definitions

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

                  ``CHAPTER 153--REGIONAL COMMISSIONS

``Sec.
``15301. Establishment, membership, and employees.
``15302. Decisions.
``15303. Functions.
``15304. Administrative powers and expenses.
``15305. Meetings.
``15306. Personal financial interests.
``15307. Tribal representation on Northern Great Plains Regional 
Commission.
``15308. Tribal participation.
``15309. Annual report.

``Sec. 15301. Establishment, membership, and employees

  ``(a) Establishment.--There are established the following regional 
Commissions:
          ``(1) The Delta Regional Commission.
          ``(2) The Northern Great Plains Regional Commission.
          ``(3) The Southeast Crescent Regional Commission.
          ``(4) The Southwest Border Regional Commission.
          ``(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.

``Sec. 15302. Decisions

  ``(a) Requirements for Approval.--Except as provided in section 
15304(c)(3), decisions by the Commission shall require the affirmative 
vote of the Federal Cochairperson and a majority of the State members 
(exclusive of members representing States delinquent under section 
15304(c)(3)(C)).
  ``(b) Consultation.--In matters coming before the Commission, the 
Federal Cochairperson shall, to the extent practicable, consult with 
the Federal departments and agencies having an interest in the subject 
matter.
  ``(c) Quorums.--A Commission shall determine what constitutes a 
quorum for Commission meetings; except that--
          ``(1) any quorum shall include the Federal Cochairperson or 
        the alternate Federal Cochairperson; and
          ``(2) a State alternate member shall not be counted toward 
        the establishment of a quorum.
  ``(d) Projects and Grant Proposals.--The approval of project and 
grant proposals shall be a responsibility of each Commission and shall 
be carried out in accordance with section 15503.

``Sec. 15303. Functions

  ``A Commission shall--
          ``(1) assess the needs and assets of its region based on 
        available research, demonstration projects, investigations, 
        assessments, and evaluations of the region prepared by Federal, 
        State, and local agencies, universities, local development 
        districts, and other nonprofit groups;
          ``(2) develop, on a continuing basis, comprehensive and 
        coordinated economic and infrastructure development strategies 
        to establish priorities and approve grants for the economic 
        development of its region, giving due consideration to other 
        Federal, State, and local planning and development activities 
        in the region;
          ``(3) not later than 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.

``Sec. 15304. Administrative powers and expenses

  ``(a) Powers.--In carrying out its duties under this subtitle, a 
Commission may--
          ``(1) hold such hearings, sit and act at such times and 
        places, take such testimony, receive such evidence, and print 
        or otherwise reproduce and distribute a description of the 
        proceedings and reports on actions by the Commission as the 
        Commission considers appropriate;
          ``(2) authorize, through the Federal or State Cochairperson 
        or any other member of the Commission designated by the 
        Commission, the administration of oaths if the Commission 
        determines that testimony should be taken or evidence received 
        under oath;
          ``(3) request from any Federal, State, or local agency such 
        information as may be available to or procurable by the agency 
        that may be of use to the Commission in carrying out the duties 
        of the Commission;
          ``(4) adopt, amend, and repeal bylaws and rules governing the 
        conduct of business and the performance of duties by the 
        Commission;
          ``(5) request the head of any Federal agency, State agency, 
        or local government to detail to the Commission such personnel 
        as the Commission requires to carry out its duties, each such 
        detail to be without loss of seniority, pay, or other employee 
        status;
          ``(6) provide for coverage of Commission employees in a 
        suitable retirement and employee benefit system by making 
        arrangements or entering into contracts with any participating 
        State government or otherwise providing retirement and other 
        employee coverage;
          ``(7) accept, use, and dispose of gifts or donations or 
        services or real, personal, tangible, or intangible property;
          ``(8) enter into and perform such contracts, cooperative 
        agreements, or other transactions as are necessary to carry out 
        Commission duties, including any contracts or cooperative 
        agreements with a department, agency, or instrumentality of the 
        United States, a State (including a political subdivision, 
        agency, or instrumentality of the State), or a person, firm, 
        association, or corporation; and
          ``(9) maintain a government relations office in the District 
        of Columbia and establish and maintain a central office at such 
        location in its region as the Commission may select.
  ``(b) Federal Agency Cooperation.--A Federal agency shall--
          ``(1) cooperate with a Commission; and
          ``(2) provide, to the extent practicable, on request of the 
        Federal Cochairperson, appropriate assistance in carrying out 
        this subtitle, in accordance with applicable Federal laws 
        (including regulations).
  ``(c) Administrative Expenses.--
          ``(1) In general.--Subject to paragraph (2), the 
        administrative expenses of a Commission shall be paid--
                  ``(A) by the Federal Government, in an amount equal 
                to 50 percent of the administrative expenses of the 
                Commission; and
                  ``(B) by the States participating in the Commission, 
                in an amount equal to 50 percent of the administrative 
                expenses.
          ``(2) Expenses of the federal cochairperson.--All expenses of 
        the Federal Cochairperson, including expenses of the alternate 
        and staff of the Federal Cochairperson, shall be paid by the 
        Federal Government.
          ``(3) State share.--
                  ``(A) In general.--Subject to subparagraph (B), the 
                share of administrative expenses of a Commission to be 
                paid by each State of the Commission shall be 
                determined by a unanimous vote of the State members of 
                the Commission.
                  ``(B) No federal participation.--The Federal 
                Cochairperson shall not participate or vote in any 
                decision under subparagraph (A).
                  ``(C) Delinquent states.--During any period in which 
                a State is more than 1 year delinquent in payment of 
                the State's share of administrative expenses of the 
                Commission under this subsection--
                          ``(i) no assistance under this subtitle shall 
                        be provided to the State (including assistance 
                        to a political subdivision or a resident of the 
                        State) for any project not approved as of the 
                        date of the commencement of the delinquency; 
                        and
                          ``(ii) no member of the Commission from the 
                        State shall participate or vote in any action 
                        by the Commission.
          ``(4) Effect on assistance.--A State's share of 
        administrative expenses of a Commission under this subsection 
        shall not be taken into consideration when determining the 
        amount of assistance provided to the State under this subtitle.

``Sec. 15305. Meetings

  ``(a) Initial Meeting.--Each Commission shall hold an initial meeting 
not later than 180 days after the date of enactment of this section.
  ``(b) Annual Meeting.--Each Commission shall conduct at least 1 
meeting each year with the Federal Cochairperson and at least a 
majority of the State members present.
  ``(c) Additional Meetings.--Each Commission shall conduct additional 
meetings at such times as it determines and may conduct such meetings 
by electronic means.

``Sec. 15306. Personal financial interests

  ``(a) Conflicts of Interest.--
          ``(1) No role allowed.--Except as permitted by paragraph (2), 
        an individual who is a State member or alternate, or an officer 
        or employee of a Commission, shall not participate personally 
        and substantially as a member, alternate, officer, or employee 
        of the Commission, through decision, approval, disapproval, 
        recommendation, request for a ruling, or other determination, 
        contract, claim, controversy, or other matter in which, to the 
        individual's knowledge, any of the following has a financial 
        interest:
                  ``(A) The individual.
                  ``(B) The individual's spouse, minor child, or 
                partner.
                  ``(C) An organization (except a State or political 
                subdivision of a State) in which the individual is 
                serving as an officer, director, trustee, partner, or 
                employee.
                  ``(D) Any person or organization with whom the 
                individual is negotiating or has any arrangement 
                concerning prospective employment.
          ``(2) Exception.--Paragraph (1) shall not apply if the 
        individual, in advance of the proceeding, application, request 
        for a ruling or other determination, contract, claim 
        controversy, or other particular matter presenting a potential 
        conflict of interest--
                  ``(A) advises the Commission of the nature and 
                circumstances of the matter presenting the conflict of 
                interest;
                  ``(B) makes full disclosure of the financial 
                interest; and
                  ``(C) receives a written decision of the Commission 
                that the interest is not so substantial as to be 
                considered likely to affect the integrity of the 
                services that the Commission may expect from the 
                individual.
          ``(3) Violation.--An individual violating this subsection 
        shall be fined under title 18, imprisoned for not more than 1 
        year, or both.
  ``(b) State Member or Alternate.--A State member or alternate member 
may not receive any salary, or any contribution to, or supplementation 
of, salary, for services on a Commission from a source other than the 
State of the member or alternate.
  ``(c) Detailed Employees.--
          ``(1) In general.--No person detailed to serve a Commission 
        shall receive any salary, or any contribution to, or 
        supplementation of, salary, for services provided to the 
        Commission from any source other than the State, local, or 
        intergovernmental department or agency from which the person 
        was detailed to the Commission.
          ``(2) Violation.--Any person that violates this subsection 
        shall be fined under title 18, imprisoned not more than 1 year, 
        or both.
  ``(d) Federal Cochairman, Alternate to Federal Cochairman, and 
Federal Officers and Employees.--The Federal Cochairman, the alternate 
to the Federal Cochairman, and any Federal officer or employee detailed 
to duty with the Commission are not subject to this section but remain 
subject to sections 202 through 209 of title 18.
  ``(e) Rescission.--A Commission may declare void any contract, loan, 
or grant of or by the Commission in relation to which the Commission 
determines that there has been a violation of any provision under 
subsection (a)(1), (b), or (c), or any of the provisions of sections 
202 through 209 of title 18.

``Sec. 15307. Tribal representation on Northern Great Plains Regional 
                    Commission

  ``(a) Tribal Cochairperson.--
          ``(1) Appointment.--In addition to the members specified in 
        section 15301(b)(1), the membership of the Northern Great 
        Plains Regional Commission shall include a Tribal 
        Cochairperson, to be appointed by the President, by and with 
        the advice and consent of the Senate. The Tribal Cochairperson 
        shall be a member of an Indian tribe in the Commission's 
        region.
          ``(2) Duties.--In addition to the Federal Cochairperson and 
        State Cochairperson, the Commission shall be headed by the 
        Tribal Cochairperson, who shall serve as a liaison between the 
        governments of Indian tribes in the region and the Commission.
  ``(b) Alternate Tribal Cochairperson.--
          ``(1) Appointment.--The President shall appoint an alternate 
        to the Tribal Cochairperson.
          ``(2) Duties.--The alternate Tribal Cochairperson, when not 
        actively serving as an alternate for the Tribal Cochairperson, 
        shall perform such functions and duties as are delegated by the 
        Tribal Cochairperson.
          ``(3) Voting.--The alternate Tribal Cochairperson shall vote 
        in the case of the absence, death, disability, removal, or 
        resignation of the Tribal Cochairperson.
  ``(c) Compensation.--
          ``(1) Tribal cochairperson.--The Tribal Cochairperson shall 
        be compensated by the Federal Government at level III of the 
        Executive Schedule as set out in section 5314 of title 5.
          ``(2) Alternate tribal cochairperson.--The Tribal 
        Cochairperson's alternate shall be compensated by the Federal 
        Government at level V of the Executive Schedule as set out in 
        section 5316 of title 5.
  ``(d) Expenses of Tribal Cochairperson.--All expenses of the Tribal 
Cochairperson, including expenses of the alternate and staff of the 
Tribal Cochairperson, shall be paid by the Federal Government.
  ``(e) Duties and Privileges.--Except as provided in subsections (c) 
and (d), the Tribal Cochairperson shall have the same duties and 
privileges as the State Cochairperson.

``Sec. 15308. Tribal participation

  ``Governments of Indian tribes in the region of the Northern Great 
Plains Regional Commission or the Southwest Border Regional Commission 
shall be allowed to participate in matters before that Commission in 
the same manner and to the same extent as State agencies and 
instrumentalities in the region.

``Sec. 15309. Annual report

  ``(a) In General.--Not later than 90 days after the last day of each 
fiscal year, each Commission shall submit to the President and Congress 
a report on the activities carried out by the Commission under this 
subtitle in the fiscal year.
  ``(b) Contents.--The report shall include--
          ``(1) a description of the criteria used by the Commission to 
        designate counties under section 15702 and a list of the 
        counties designated in each category;
          ``(2) an evaluation of the progress of the Commission in 
        meeting the goals identified in the Commission's economic and 
        infrastructure development plan under section 15303 and State 
        economic and infrastructure development plans under section 
        15502; 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.

``Sec. 15501. Economic and infrastructure development grants

  ``(a) In General.--A Commission may make grants to States and local 
governments, Indian tribes, and public and nonprofit organizations for 
projects, approved in accordance with section 15503--
          ``(1) to develop the transportation infrastructure of its 
        region;
          ``(2) to develop the basic public infrastructure of its 
        region;
          ``(3) to develop the telecommunications infrastructure of its 
        region;
          ``(4) to assist its region in obtaining job skills training, 
        skills development and employment-related education, 
        entrepreneurship, technology, and business development;
          ``(5) to provide assistance to severely 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.

``Sec. 15502. Comprehensive economic and infrastructure development 
                    plans

  ``(a) State Plans.--In accordance with policies established by a 
Commission, each State member of the Commission shall submit a 
comprehensive economic and infrastructure development plan for the area 
of the region represented by the State member.
  ``(b) Content of Plan.--A State economic and infrastructure 
development plan shall reflect the goals, objectives, and priorities 
identified in any applicable economic and infrastructure development 
plan developed by a Commission under section 15303.
  ``(c) Consultation With Interested Local Parties.--In carrying out 
the development planning process (including the selection of programs 
and projects for assistance), a State shall--
          ``(1) consult with local development districts, local units 
        of government, and local colleges and universities; and
          ``(2) take into consideration the goals, objectives, 
        priorities, and recommendations of the entities described in 
        paragraph (1).
  ``(d) Public Participation.--
          ``(1) In general.--A Commission and applicable State and 
        local development districts shall encourage and assist, to the 
        maximum extent practicable, public participation in the 
        development, revision, and implementation of all plans and 
        programs under this subtitle.
          ``(2) Guidelines.--A Commission shall develop guidelines for 
        providing public participation, including public hearings.

``Sec. 15503. Approval of applications for assistance

  ``(a) Evaluation by State Member.--An application to a Commission for 
a grant or any other assistance for a project under this subtitle shall 
be made through, and evaluated for approval by, the State member of the 
Commission representing the applicant.
  ``(b) Certification.--An application to a Commission for a grant or 
other assistance for a project under this subtitle shall be eligible 
for assistance only on certification by the State member of the 
Commission representing the applicant that the application for the 
project--
          ``(1) describes ways in which the project complies with any 
        applicable State economic and infrastructure development plan;
          ``(2) meets applicable criteria under section 15504;
          ``(3) adequately ensures that the project will be properly 
        administered, operated, and maintained; and
          ``(4) otherwise meets the requirements for assistance under 
        this subtitle.
  ``(c) Votes for Decisions.--On certification by a State member of a 
Commission of an application for a grant or other assistance for a 
specific project under this section, an affirmative vote of the 
Commission under section 15302 shall be required for approval of the 
application.

``Sec. 15504. Program development criteria

  ``(a) In General.--In considering programs and projects to be 
provided assistance by a Commission under this subtitle, and in 
establishing a priority ranking of the requests for assistance provided 
to the Commission, the Commission shall follow procedures that ensure, 
to the maximum extent practicable, consideration of--
          ``(1) the relationship of the project or class of projects to 
        overall regional development;
          ``(2) the per capita income and poverty and unemployment and 
        outmigration rates in an area;
          ``(3) the financial resources available to the applicants for 
        assistance seeking to carry out the project, with emphasis on 
        ensuring that projects are adequately financed to maximize the 
        probability of successful economic development;
          ``(4) the importance of the project or class of projects in 
        relation to the other projects or classes of projects that may 
        be in competition for the same funds;
          ``(5) the prospects that the project for which assistance is 
        sought will improve, on a continuing rather than a temporary 
        basis, the opportunities for employment, the average level of 
        income, or the economic development of the area to be served by 
        the project; and
          ``(6) the extent to which the project design provides for 
        detailed outcome measurements by which grant expenditures and 
        the results of the expenditures may be evaluated.

``Sec. 15505. Local development districts and organizations

  ``(a) Grants to Local Development Districts.--Subject to the 
requirements of this section, a Commission may make grants to a local 
development district to assist in the payment of development planning 
and administrative expenses.
  ``(b) Conditions for Grants.--
          ``(1) Maximum amount.--The amount of a grant awarded under 
        this section may not exceed 80 percent of the administrative 
        and planning expenses of the local development district 
        receiving the grant.
          ``(2) Maximum period for state agencies.--In the case of a 
        State agency certified as a local development district, a grant 
        may not be awarded to the agency under this section for more 
        than 3 fiscal years.
          ``(3) Local share.--The contributions of a local development 
        district for administrative expenses may be in cash or in kind, 
        fairly evaluated, including space, equipment, and services.
  ``(c) Duties of Local Development Districts.--A local development 
district shall--
          ``(1) operate as a lead organization serving multicounty 
        areas in the region at the local level;
          ``(2) assist the Commission in carrying out outreach 
        activities for local governments, community development groups, 
        the business community, and the public;
          ``(3) serve as a liaison between State and local governments, 
        nonprofit organizations (including community-based groups and 
        educational institutions), the business community, and 
        citizens; and
          ``(4) assist the individuals and entities described in 
        paragraph (3) in identifying, assessing, and facilitating 
        projects and programs to promote the economic development of 
        the region.

``Sec. 15506. Supplements to Federal grant programs

  ``(a) Finding.--Congress finds that certain States and local 
communities of the region, including local development districts, may 
be unable to take maximum advantage of Federal grant programs for which 
the States and communities are eligible because--
          ``(1) they lack the economic resources to provide the 
        required matching share; or
          ``(2) there are insufficient funds available under the 
        applicable Federal law with respect to a project to be carried 
        out in the region.
  ``(b) Federal Grant Program Funding.--A Commission, with the approval 
of the Federal Cochairperson, may use amounts made available to carry 
out this subtitle--
          ``(1) for any part of the basic Federal contribution to 
        projects or activities under the Federal grant programs 
        authorized by Federal laws; and
          ``(2) to increase the Federal contribution to projects and 
        activities under the programs above the fixed maximum part of 
        the cost of the projects or activities otherwise authorized by 
        the applicable law.
  ``(c) Certification Required.--For a program, project, or activity 
for which any part of the basic Federal contribution to the project or 
activity under a Federal grant program is proposed to be made under 
subsection (b), the Federal contribution shall not be made until the 
responsible Federal official administering the Federal law authorizing 
the Federal contribution certifies that the program, project, or 
activity meets the applicable requirements of the Federal law and could 
be approved for Federal contribution under that law if amounts were 
available under the law for the program, project, or activity.
  ``(d) Limitations in Other Laws Inapplicable.--Amounts provided 
pursuant to this subtitle are available without regard to any 
limitations on areas eligible for assistance or authorizations for 
appropriation in any other law.
  ``(e) Federal Share.--The Federal share of the cost of a project or 
activity receiving assistance under this section shall not exceed 80 
percent.
  ``(f) Maximum Commission Contribution.--Section 15501(d), relating to 
limitations on Commission contributions, shall apply to a program, 
project, or activity receiving assistance under this section.

                ``CHAPTER 157--ADMINISTRATIVE PROVISIONS

                   ``subchapter i--general provisions

``Sec.
``15701. Consent of States.
``15702. Distressed counties and areas.
``15703. Counties eligible for assistance in more than one region.
``15704. Inspector General; records.
``15705. Biannual meetings of representatives of all Commissions.
``15706. Relationship to other laws.

                 ``subchapter ii--designation of regions

``15731. Delta Regional Commission.
``15732. Northern Great Plains Regional Commission.
``15733. Southeast Crescent Regional Commission.
``15734. Southwest Border Regional Commission.
``15735. Northern Border Regional Commission.

            ``subchapter iii--authorization of appropriations

``15751. Authorization of appropriations.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``Sec. 15701. Consent of States

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

``Sec. 15702. Distressed counties and areas

  ``(a) Designations.--Not later than 90 days after the date of 
enactment of this section, and annually thereafter, each Commission 
shall make the following designations:
          ``(1) Distressed counties.--The Commission shall designate as 
        distressed counties those counties in its region that are the 
        most severely and persistently 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.

``Sec. 15703. Counties eligible for assistance in more than one region

  ``(a) Limitation.--A political subdivision of a State may not receive 
assistance under this subtitle in a fiscal year from more than one 
Commission.
  ``(b) Selection of Commission.--A political subdivision included in 
the region of more than one Commission shall select the Commission with 
which it will participate by notifying, in writing, the Federal 
Cochairperson and the appropriate State member of that Commission.
  ``(c) Changes in Selections.--The selection of a Commission by a 
political subdivision shall apply in the fiscal year in which the 
selection is made, and shall apply in each subsequent fiscal year 
unless the political subdivision, at least 90 days before the first day 
of the fiscal year, notifies the Cochairpersons of another Commission 
in writing that the political subdivision will participate in that 
Commission and also transmits a copy of such notification to the 
Cochairpersons of the Commission in which the political subdivision is 
currently participating.
  ``(d) Inclusion of Appalachian Regional Commission.--In this section, 
the term `Commission' includes the Appalachian Regional Commission 
established under chapter 143.

``Sec. 15704. Inspector General; records

  ``(a) Appointment of Inspector General.--There shall be an Inspector 
General for the Commissions appointed in accordance with section 3(a) 
of the Inspector General Act of 1978 (5 U.S.C. App.). All of the 
Commissions shall be subject to a single Inspector General.
  ``(b) Records of a Commission.--
          ``(1) In general.--A Commission shall maintain accurate and 
        complete records of all its transactions and activities.
          ``(2) Availability.--All records of a Commission shall be 
        available for audit and examination by the Inspector General 
        (including authorized representatives of the Inspector 
        General).
  ``(c) Records of Recipients of Commission Assistance.--
          ``(1) In general.--A recipient of funds from a Commission 
        under this subtitle shall maintain accurate and complete 
        records of transactions and activities financed with the funds 
        and report to the Commission on the transactions and 
        activities.
          ``(2) Availability.--All records required under paragraph (1) 
        shall be available for audit by the Commission and the 
        Inspector General (including authorized representatives of the 
        Commission and the Inspector General).
  ``(d) Annual Audit.--The Inspector General shall audit the 
activities, transactions, and records of each Commission on an annual 
basis.

``Sec. 15705. Biannual meetings of representatives of all Commissions

  ``(a) In General.--Representatives of each Commission, the 
Appalachian Regional Commission, and the Denali Commission shall meet 
biannually to discuss issues confronting regions suffering from chronic 
and contiguous distress and successful strategies for promoting 
regional development.
  ``(b) Chair of Meetings.--The chair of each meeting shall rotate 
among the Commissions, with the Appalachian Regional Commission to host 
the first meeting.

``Sec. 15706. Relationship to other laws

  ``Projects receiving assistance under this subtitle shall be treated 
in the manner provided in section 602 of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3212).

                ``SUBCHAPTER II--DESIGNATION OF REGIONS

``Sec. 15731. Delta Regional Commission

  ``The 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, Tangipahoa, Tensas, Union, 
        Washington, W. Baton Rouge, W. Carroll, W. Feliciana, and Winn 
        in the State of Louisiana.
          ``(6) Mississippi.--The counties of Adams, Amite, Attala, 
        Benton, Bolivar, Carroll, Claiborne, Coahoma, Copiah, 
        Covington, DeSoto, Franklin, Grenada, Hinds, Holmes, Humphreys, 
        Issaquena, Jefferson, Jefferson Davis, Lafayette, Lawrence, 
        Leflore, Lincoln, Madison, Marion, Marshall, Montgomery, 
        Panola, Pike, Quitman, Rankin, Sharkey, Simpson, Sunflower, 
        Tallahatchie, Tate, Tippah, Tunica, Union, Walthall, Warren, 
        Washington, Wilkinson, Yalobusha, and Yazoo in the State of 
        Mississippi.
          ``(7) Missouri.--The counties Bollinger, Butler, Cape 
        Girardeau, Carter, Crawford, Dent, Douglas, Dunklin, Howell, 
        Iron, Madison, Mississippi, New Madrid, Oregon, Ozark, 
        Pemiscott, Perry, Phelps, Reynolds, Ripley, Ste. Genevieve, St. 
        Francois, Scott, Shannon, Stoddard, Texas, Washington, Wayne, 
        and Wright in the State of Missouri.
          ``(8) Tennessee.--The counties of Benton, Carroll, Chester, 
        Crockett, Decatur, Dyer, Fayette, Gibson, Hardeman, Hardin, 
        Haywood, Henderson, Henry, Lake, Lauderdale, McNairy, Madison, 
        Obion, Shelby, Tipton, and Weakley in the State of Tennessee.

``Sec. 15732. Northern Great Plains Regional Commission

  ``The 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.

``Sec. 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.

``Sec. 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.

``Sec. 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

``Sec. 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.

                  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 deployment, 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 
Crescent 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 economic 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 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 otherwise 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 inter-state 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 development; 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 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 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, 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 subtitle. 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 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.

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 training, 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.

                      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.
      FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES...................101
     * * * * * * *
      MISCELLANEOUS...............................................17101]
  V. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT.............15101 
17101 SCELLANEOUS...............................................

           *       *       *       *       *       *       *

      Subtitle V--Regional Economic and Infrastructure Development

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

                    CHAPTER 151--GENERAL PROVISIONS

Sec.
15101. Definitions.

Sec. 15101. Definitions

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

                   CHAPTER 153--REGIONAL COMMISSIONS

Sec.
15301. Establishment, membership, and employees.
15302. Decisions.
15303. Functions.
15304. Administrative powers and expenses.
15305. Meetings.
15306. Personal financial interests.
15307. Tribal representation on Northern Great Plains Regional 
          Commission.
15308. Tribal participation.
15309. Annual report.

Sec. 15301. Establishment, membership, and employees

  (a) Establishment.--There are established the following 
regional Commissions:
          (1) The Delta Regional Commission.
          (2) The Northern Great Plains Regional Commission.
          (3) The Southeast Crescent Regional Commission.
          (4) The Southwest Border Regional Commission.
          (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.

Sec. 15302. Decisions

  (a) Requirements for Approval.--Except as provided in section 
15304(c)(3), decisions by the Commission shall require the 
affirmative vote of the Federal Cochairperson and a majority of 
the State members (exclusive of members representing States 
delinquent under section 15304(c)(3)(C)).
  (b) Consultation.--In matters coming before the Commission, 
the Federal Cochairperson shall, to the extent practicable, 
consult with the Federal departments and agencies having an 
interest in the subject matter.
  (c) Quorums.--A Commission shall determine what constitutes a 
quorum for Commission meetings; except that--
          (1) any quorum shall include the Federal 
        Cochairperson or the alternate Federal Cochairperson; 
        and
          (2) a State alternate member shall not be counted 
        toward the establishment of a quorum.
  (d) Projects and Grant Proposals.--The approval of project 
and grant proposals shall be a responsibility of each 
Commission and shall be carried out in accordance with section 
15503.

Sec. 15303. Functions

  A Commission shall--
          (1) assess the needs and assets of its region based 
        on available research, demonstration projects, 
        investigations, assessments, and evaluations of the 
        region prepared by Federal, State, and local agencies, 
        universities, local development districts, and other 
        nonprofit groups;
          (2) develop, on a continuing basis, comprehensive and 
        coordinated economic and infrastructure development 
        strategies to establish priorities and approve grants 
        for the economic development of its region, giving due 
        consideration to other Federal, State, and local 
        planning and development activities in the region;
          (3) not later than 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.

Sec. 15304. Administrative powers and expenses

  (a) Powers.--In carrying out its duties under this subtitle, 
a Commission may--
          (1) hold such hearings, sit and act at such times and 
        places, take such testimony, receive such evidence, and 
        print or otherwise reproduce and distribute a 
        description of the proceedings and reports on actions 
        by the Commission as the Commission considers 
        appropriate;
          (2) authorize, through the Federal or State 
        Cochairperson or any other member of the Commission 
        designated by the Commission, the administration of 
        oaths if the Commission determines that testimony 
        should be taken or evidence received under oath;
          (3) request from any Federal, State, or local agency 
        such information as may be available to or procurable 
        by the agency that may be of use to the Commission in 
        carrying out the duties of the Commission;
          (4) adopt, amend, and repeal bylaws and rules 
        governing the conduct of business and the performance 
        of duties by the Commission;
          (5) request the head of any Federal agency, State 
        agency, or local government to detail to the Commission 
        such personnel as the Commission requires to carry out 
        its duties, each such detail to be without loss of 
        seniority, pay, or other employee status;
          (6) provide for coverage of Commission employees in a 
        suitable retirement and employee benefit system by 
        making arrangements or entering into contracts with any 
        participating State government or otherwise providing 
        retirement and other employee coverage;
          (7) accept, use, and dispose of gifts or donations or 
        services or real, personal, tangible, or intangible 
        property;
          (8) enter into and perform such contracts, 
        cooperative agreements, or other transactions as are 
        necessary to carry out Commission duties, including any 
        contracts or cooperative agreements with a department, 
        agency, or instrumentality of the United States, a 
        State (including a political subdivision, agency, or 
        instrumentality of the State), or a person, firm, 
        association, or corporation; and
          (9) maintain a government relations office in the 
        District of Columbia and establish and maintain a 
        central office at such location in its region as the 
        Commission may select.
  (b) Federal Agency Cooperation.--A Federal agency shall--
          (1) cooperate with a Commission; and
          (2) provide, to the extent practicable, on request of 
        the Federal Cochairperson, appropriate assistance in 
        carrying out this subtitle, in accordance with 
        applicable Federal laws (including regulations).
  (c) Administrative Expenses.--
          (1) In general.--Subject to paragraph (2), the 
        administrative expenses of a Commission shall be paid--
                  (A) by the Federal Government, in an amount 
                equal to 50 percent of the administrative 
                expenses of the Commission; and
                  (B) by the States participating in the 
                Commission, in an amount equal to 50 percent of 
                the administrative expenses.
          (2) Expenses of the federal cochairperson.--All 
        expenses of the Federal Cochairperson, including 
        expenses of the alternate and staff of the Federal 
        Cochairperson, shall be paid by the Federal Government.
          (3) State share.--
                  (A) In general.--Subject to subparagraph (B), 
                the share of administrative expenses of a 
                Commission to be paid by each State of the 
                Commission shall be determined by a unanimous 
                vote of the State members of the Commission.
                  (B) No federal participation.--The Federal 
                Cochairperson shall not participate or vote in 
                any decision under subparagraph (A).
                  (C) Delinquent states.--During any period in 
                which a State is more than 1 year delinquent in 
                payment of the State's share of administrative 
                expenses of the Commission under this 
                subsection--
                          (i) no assistance under this subtitle 
                        shall be provided to the State 
                        (including assistance to a political 
                        subdivision or a resident of the State) 
                        for any project not approved as of the 
                        date of the commencement of the 
                        delinquency; and
                          (ii) no member of the Commission from 
                        the State shall participate or vote in 
                        any action by the Commission.
          (4) Effect on assistance.--A State's share of 
        administrative expenses of a Commission under this 
        subsection shall not be taken into consideration when 
        determining the amount of assistance provided to the 
        State under this subtitle.

Sec. 15305. Meetings

  (a) Initial Meeting.--Each Commission shall hold an initial 
meeting not later than 180 days after the date of enactment of 
this section.
  (b) Annual Meeting.--Each Commission shall conduct at least 1 
meeting each year with the Federal Cochairperson and at least a 
majority of the State members present.
  (c) Additional Meetings.--Each Commission shall conduct 
additional meetings at such times as it determines and may 
conduct such meetings by electronic means.

Sec. 15306. Personal financial interests

  (a) Conflicts of Interest.--
          (1) No role allowed.--Except as permitted by 
        paragraph (2), an individual who is a State member or 
        alternate, or an officer or employee of a Commission, 
        shall not participate personally and substantially as a 
        member, alternate, officer, or employee of the 
        Commission, through decision, approval, disapproval, 
        recommendation, request for a ruling, or other 
        determination, contract, claim, controversy, or other 
        matter in which, to the individual's knowledge, any of 
        the following has a financial interest:
                  (A) The individual.
                  (B) The individual's spouse, minor child, or 
                partner.
                  (C) An organization (except a State or 
                political subdivision of a State) in which the 
                individual is serving as an officer, director, 
                trustee, partner, or employee.
                  (D) Any person or organization with whom the 
                individual is negotiating or has any 
                arrangement concerning prospective employment.
          (2) Exception.--Paragraph (1) shall not apply if the 
        individual, in advance of the proceeding, application, 
        request for a ruling or other determination, contract, 
        claim controversy, or other particular matter 
        presenting a potential conflict of interest--
                  (A) advises the Commission of the nature and 
                circumstances of the matter presenting the 
                conflict of interest;
                  (B) makes full disclosure of the financial 
                interest; and
                  (C) receives a written decision of the 
                Commission that the interest is not so 
                substantial as to be considered likely to 
                affect the integrity of the services that the 
                Commission may expect from the individual.
          (3) Violation.--An individual violating this 
        subsection shall be fined under title 18, imprisoned 
        for not more than 1 year, or both.
  (b) State Member or Alternate.--A State member or alternate 
member may not receive any salary, or any contribution to, or 
supplementation of, salary, for services on a Commission from a 
source other than the State of the member or alternate.
  (c) Detailed Employees.--
          (1) In general.--No person detailed to serve a 
        Commission shall receive any salary, or any 
        contribution to, or supplementation of, salary, for 
        services provided to the Commission from any source 
        other than the State, local, or intergovernmental 
        department or agency from which the person was detailed 
        to the Commission.
          (2) Violation.--Any person that violates this 
        subsection shall be fined under title 18, imprisoned 
        not more than 1 year, or both.
  (d) Federal Cochairman, Alternate to Federal Cochairman, and 
Federal Officers and Employees.--The Federal Cochairman, the 
alternate to the Federal Cochairman, and any Federal officer or 
employee detailed to duty with the Commission are not subject 
to this section but remain subject to sections 202 through 209 
of title 18.
  (e) Rescission.--A Commission may declare void any contract, 
loan, or grant of or by the Commission in relation to which the 
Commission determines that there has been a violation of any 
provision under subsection (a)(1), (b), or (c), or any of the 
provisions of sections 202 through 209 of title 18.

Sec. 15307. Tribal representation on Northern Great Plains Regional 
                    Commission

  (a) Tribal Cochairperson.--
          (1) Appointment.--In addition to the members 
        specified in section 15301(b)(1), the membership of the 
        Northern Great Plains Regional Commission shall include 
        a Tribal Cochairperson, to be appointed by the 
        President, by and with the advice and consent of the 
        Senate. The Tribal Cochairperson shall be a member of 
        an Indian tribe in the Commission's region.
          (2) Duties.--In addition to the Federal Cochairperson 
        and State Cochairperson, the Commission shall be headed 
        by the Tribal Cochairperson, who shall serve as a 
        liaison between the governments of Indian tribes in the 
        region and the Commission.
  (b) Alternate Tribal Cochairperson.--
          (1) Appointment.--The President shall appoint an 
        alternate to the Tribal Cochairperson.
          (2) Duties.--The alternate Tribal Cochairperson, when 
        not actively serving as an alternate for the Tribal 
        Cochairperson, shall perform such functions and duties 
        as are delegated by the Tribal Cochairperson.
          (3) Voting.--The alternate Tribal Cochairperson shall 
        vote in the case of the absence, death, disability, 
        removal, or resignation of the Tribal Cochairperson.
  (c) Compensation.--
          (1) Tribal cochairperson.--The Tribal Cochairperson 
        shall be compensated by the Federal Government at level 
        III of the Executive Schedule as set out in section 
        5314 of title 5.
          (2) Alternate tribal cochairperson.--The Tribal 
        Cochairperson's alternate shall be compensated by the 
        Federal Government at level V of the Executive Schedule 
        as set out in section 5316 of title 5.
  (d) Expenses of Tribal Cochairperson.--All expenses of the 
Tribal Cochairperson, including expenses of the alternate and 
staff of the Tribal Cochairperson, shall be paid by the Federal 
Government.
  (e) Duties and Privileges.--Except as provided in subsections 
(c) and (d), the Tribal Cochairperson shall have the same 
duties and privileges as the State Cochairperson.

Sec. 15308. Tribal participation

  Governments of Indian tribes in the region of the Northern 
Great Plains Regional Commission or the Southwest Border 
Regional Commission shall be allowed to participate in matters 
before that Commission in the same manner and to the same 
extent as State agencies and instrumentalities in the region.

Sec. 15309. Annual report

  (a) In General.--Not later than 90 days after the last day of 
each fiscal year, each Commission shall submit to the President 
and Congress a report on the activities carried out by the 
Commission under this subtitle in the fiscal year.
  (b) Contents.--The report shall include--
          (1) a description of the criteria used by the 
        Commission to designate counties under section 15702 
        and a list of the counties designated in each category;
          (2) an evaluation of the progress of the Commission 
        in meeting the goals identified in the Commission's 
        economic and infrastructure development plan under 
        section 15303 and State economic and infrastructure 
        development plans under section 15502; 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.

Sec. 15501. Economic and infrastructure development grants

  (a) In General.--A Commission may make grants to States and 
local governments, Indian tribes, and public and nonprofit 
organizations for projects, approved in accordance with section 
15503--
          (1) to develop the transportation infrastructure of 
        its region;
          (2) to develop the basic public infrastructure of its 
        region;
          (3) to develop the telecommunications infrastructure 
        of its region;
          (4) to assist its region in obtaining job skills 
        training, skills development and employment-related 
        education, entrepreneurship, technology, and business 
        development;
          (5) to provide assistance to severely 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.

Sec. 15502. Comprehensive economic and infrastructure development plans

  (a) State Plans.--In accordance with policies established by 
a Commission, each State member of the Commission shall submit 
a comprehensive economic and infrastructure development plan 
for the area of the region represented by the State member.
  (b) Content of Plan.--A State economic and infrastructure 
development plan shall reflect the goals, objectives, and 
priorities identified in any applicable economic and 
infrastructure development plan developed by a Commission under 
section 15303.
  (c) Consultation With Interested Local Parties.--In carrying 
out the development planning process (including the selection 
of programs and projects for assistance), a State shall--
          (1) consult with local development districts, local 
        units of government, and local colleges and 
        universities; and
          (2) take into consideration the goals, objectives, 
        priorities, and recommendations of the entities 
        described in paragraph (1).
  (d) Public Participation.--
          (1) In general.--A Commission and applicable State 
        and local development districts shall encourage and 
        assist, to the maximum extent practicable, public 
        participation in the development, revision, and 
        implementation of all plans and programs under this 
        subtitle.
          (2) Guidelines.--A Commission shall develop 
        guidelines for providing public participation, 
        including public hearings.

Sec. 15503. Approval of applications for assistance

  (a) Evaluation by State Member.--An application to a 
Commission for a grant or any other assistance for a project 
under this subtitle shall be made through, and evaluated for 
approval by, the State member of the Commission representing 
the applicant.
  (b) Certification.--An application to a Commission for a 
grant or other assistance for a project under this subtitle 
shall be eligible for assistance only on certification by the 
State member of the Commission representing the applicant that 
the application for the project--
          (1) describes ways in which the project complies with 
        any applicable State economic and infrastructure 
        development plan;
          (2) meets applicable criteria under section 15504;
          (3) adequately ensures that the project will be 
        properly administered, operated, and maintained; and
          (4) otherwise meets the requirements for assistance 
        under this subtitle.
  (c) Votes for Decisions.--On certification by a State member 
of a Commission of an application for a grant or other 
assistance for a specific project under this section, an 
affirmative vote of the Commission under section 15302 shall be 
required for approval of the application.

Sec. 15504. Program development criteria

  (a) In General.--In considering programs and projects to be 
provided assistance by a Commission under this subtitle, and in 
establishing a priority ranking of the requests for assistance 
provided to the Commission, the Commission shall follow 
procedures that ensure, to the maximum extent practicable, 
consideration of--
          (1) the relationship of the project or class of 
        projects to overall regional development;
          (2) the per capita income and poverty and 
        unemployment and outmigration rates in an area;
          (3) the financial resources available to the 
        applicants for assistance seeking to carry out the 
        project, with emphasis on ensuring that projects are 
        adequately financed to maximize the probability of 
        successful economic development;
          (4) the importance of the project or class of 
        projects in relation to the other projects or classes 
        of projects that may be in competition for the same 
        funds;
          (5) the prospects that the project for which 
        assistance is sought will improve, on a continuing 
        rather than a temporary basis, the opportunities for 
        employment, the average level of income, or the 
        economic development of the area to be served by the 
        project; and
          (6) the extent to which the project design provides 
        for detailed outcome measurements by which grant 
        expenditures and the results of the expenditures may be 
        evaluated.

Sec. 15505. Local development districts and organizations

  (a) Grants to Local Development Districts.--Subject to the 
requirements of this section, a Commission may make grants to a 
local development district to assist in the payment of 
development planning and administrative expenses.
  (b) Conditions for Grants.--
          (1) Maximum amount.--The amount of a grant awarded 
        under this section may not exceed 80 percent of the 
        administrative and planning expenses of the local 
        development district receiving the grant.
          (2) Maximum period for state agencies.--In the case 
        of a State agency certified as a local development 
        district, a grant may not be awarded to the agency 
        under this section for more than 3 fiscal years.
          (3) Local share.--The contributions of a local 
        development district for administrative expenses may be 
        in cash or in kind, fairly evaluated, including space, 
        equipment, and services.
  (c) Duties of Local Development Districts.--A local 
development district shall--
          (1) operate as a lead organization serving 
        multicounty areas in the region at the local level;
          (2) assist the Commission in carrying out outreach 
        activities for local governments, community development 
        groups, the business community, and the public;
          (3) serve as a liaison between State and local 
        governments, nonprofit organizations (including 
        community-based groups and educational institutions), 
        the business community, and citizens; and
          (4) assist the individuals and entities described in 
        paragraph (3) in identifying, assessing, and 
        facilitating projects and programs to promote the 
        economic development of the region.

Sec. 15506. Supplements to Federal grant programs

  (a) Finding.--Congress finds that certain States and local 
communities of the region, including local development 
districts, may be unable to take maximum advantage of Federal 
grant programs for which the States and communities are 
eligible because--
          (1) they lack the economic resources to provide the 
        required matching share; or
          (2) there are insufficient funds available under the 
        applicable Federal law with respect to a project to be 
        carried out in the region.
  (b) Federal Grant Program Funding.--A Commission, with the 
approval of the Federal Cochairperson, may use amounts made 
available to carry out this subtitle--
          (1) for any part of the basic Federal contribution to 
        projects or activities under the Federal grant programs 
        authorized by Federal laws; and
          (2) to increase the Federal contribution to projects 
        and activities under the programs above the fixed 
        maximum part of the cost of the projects or activities 
        otherwise authorized by the applicable law.
  (c) Certification Required.--For a program, project, or 
activity for which any part of the basic Federal contribution 
to the project or activity under a Federal grant program is 
proposed to be made under subsection (b), the Federal 
contribution shall not be made until the responsible Federal 
official administering the Federal law authorizing the Federal 
contribution certifies that the program, project, or activity 
meets the applicable requirements of the Federal law and could 
be approved for Federal contribution under that law if amounts 
were available under the law for the program, project, or 
activity.
  (d) Limitations in Other Laws Inapplicable.--Amounts provided 
pursuant to this subtitle are available without regard to any 
limitations on areas eligible for assistance or authorizations 
for appropriation in any other law.
  (e) Federal Share.--The Federal share of the cost of a 
project or activity receiving assistance under this section 
shall not exceed 80 percent.
  (f) Maximum Commission Contribution.--Section 15501(d), 
relating to limitations on Commission contributions, shall 
apply to a program, project, or activity receiving assistance 
under this section.

                 CHAPTER 157--ADMINISTRATIVE PROVISIONS

                     subchapter i--general provisions

Sec.
15701. Consent of States.
15702. Distressed counties and areas.
15703. Counties eligible for assistance in more than one region.
15704. Inspector General; records.
15705. Biannual meetings of representatives of all Commissions.
15706. Relationship to other laws.

                  subchapter ii--designation of regions

15731. Delta Regional Commission.
15732. Northern Great Plains Regional Commission.
15733. Southeast Crescent Regional Commission.
15734. Southwest Border Regional Commission.
15735. Northern Border Regional Commission.

             subchapter iii--authorization of appropriations

15751. Authorization of appropriations.

                    SUBCHAPTER I--GENERAL PROVISIONS

Sec. 15701. Consent of States

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

Sec. 15702. Distressed counties and areas

  (a) Designations.--Not later than 90 days after the date of 
enactment of this section, and annually thereafter, each 
Commission shall make the following designations:
          (1) Distressed counties.--The Commission shall 
        designate as distressed counties those counties in its 
        region that are the most severely and persistently 
        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.

Sec. 15703. Counties eligible for assistance in more than one region

  (a) Limitation.--A political subdivision of a State may not 
receive assistance under this subtitle in a fiscal year from 
more than one Commission.
  (b) Selection of Commission.--A political subdivision 
included in the region of more than one Commission shall select 
the Commission with which it will participate by notifying, in 
writing, the Federal Cochairperson and the appropriate State 
member of that Commission.
  (c) Changes in Selections.--The selection of a Commission by 
a political subdivision shall apply in the fiscal year in which 
the selection is made, and shall apply in each subsequent 
fiscal year unless the political subdivision, at least 90 days 
before the first day of the fiscal year, notifies the 
Cochairpersons of another Commission in writing that the 
political subdivision will participate in that Commission and 
also transmits a copy of such notification to the 
Cochairpersons of the Commission in which the political 
subdivision is currently participating.
  (d) Inclusion of Appalachian Regional Commission.--In this 
section, the term ``Commission'' includes the Appalachian 
Regional Commission established under chapter 143.

Sec. 15704. Inspector General; records

  (a) Appointment of Inspector General.--There shall be an 
Inspector General for the Commissions appointed in accordance 
with section 3(a) of the Inspector General Act of 1978 (5 
U.S.C. App.). All of the Commissions shall be subject to a 
single Inspector General.
  (b) Records of a Commission.--
          (1) In general.--A Commission shall maintain accurate 
        and complete records of all its transactions and 
        activities.
          (2) Availability.--All records of a Commission shall 
        be available for audit and examination by the Inspector 
        General (including authorized representatives of the 
        Inspector General).
  (c) Records of Recipients of Commission Assistance.--
          (1) In general.--A recipient of funds from a 
        Commission under this subtitle shall maintain accurate 
        and complete records of transactions and activities 
        financed with the funds and report to the Commission on 
        the transactions and activities.
          (2) Availability.--All records required under 
        paragraph (1) shall be available for audit by the 
        Commission and the Inspector General (including 
        authorized representatives of the Commission and the 
        Inspector General).
  (d) Annual Audit.--The Inspector General shall audit the 
activities, transactions, and records of each Commission on an 
annual basis.

Sec. 15705. Biannual meetings of representatives of all Commissions

  (a) In General.--Representatives of each Commission, the 
Appalachian Regional Commission, and the Denali Commission 
shall meet biannually to discuss issues confronting regions 
suffering from chronic and contiguous distress and successful 
strategies for promoting regional development.
  (b) Chair of Meetings.--The chair of each meeting shall 
rotate among the Commissions, with the Appalachian Regional 
Commission to host the first meeting.

Sec. 15706. Relationship to other laws

  Projects receiving assistance under this subtitle shall be 
treated in the manner provided in section 602 of the Public 
Works and Economic Development Act of 1965 (42 U.S.C. 3212).

                 SUBCHAPTER II--DESIGNATION OF REGIONS

Sec. 15731. Delta Regional Commission

  The 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, 
        Tangipahoa, Tensas, Union, Washington, W. Baton Rouge, 
        W. Carroll, W. Feliciana, and Winn in the State of 
        Louisiana.
          (6) Mississippi.--The counties of Adams, Amite, 
        Attala, Benton, Bolivar, Carroll, Claiborne, Coahoma, 
        Copiah, Covington, DeSoto, Franklin, Grenada, Hinds, 
        Holmes, Humphreys, Issaquena, Jefferson, Jefferson 
        Davis, Lafayette, Lawrence, Leflore, Lincoln, Madison, 
        Marion, Marshall, Montgomery, Panola, Pike, Quitman, 
        Rankin, Sharkey, Simpson, Sunflower, Tallahatchie, 
        Tate, Tippah, Tunica, Union, Walthall, Warren, 
        Washington, Wilkinson, Yalobusha, and Yazoo in the 
        State of Mississippi.
          (7) Missouri.--The counties Bollinger, Butler, Cape 
        Girardeau, Carter, Crawford, Dent, Douglas, Dunklin, 
        Howell, Iron, Madison, Mississippi, New Madrid, Oregon, 
        Ozark, Pemiscott, Perry, Phelps, Reynolds, Ripley, Ste. 
        Genevieve, St. Francois, Scott, Shannon, Stoddard, 
        Texas, Washington, Wayne, and Wright in the State of 
        Missouri.
          (8) Tennessee.--The counties of Benton, Carroll, 
        Chester, Crockett, Decatur, Dyer, Fayette, Gibson, 
        Hardeman, Hardin, Haywood, Henderson, Henry, Lake, 
        Lauderdale, McNairy, Madison, Obion, Shelby, Tipton, 
        and Weakley in the State of Tennessee.

Sec. 15732. Northern Great Plains Regional Commission

  The 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.

Sec. 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.

Sec. 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.

Sec. 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

Sec. 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.

SUBTITLE [V] 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''.

           *       *       *       *       *       *       *

                 [Subtitle F--Delta Regional Authority

[SEC. 382A. DEFINITIONS.

  [In this subtitle:
          [(1) Authority.--The term ``Authority'' means the 
        Delta Regional Authority established by section 382B.
          [(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)).
          [(3) Federal grant program.--The term ``Federal grant 
        program'' means a Federal grant program to provide 
        assistance in--
                  [(A) acquiring or developing land;
                  [(B) constructing or equipping a highway, 
                road, bridge, or facility; or
                  [(C) carrying out other economic development 
                activities.

[SEC. 382B. DELTA REGIONAL AUTHORITY.

  [(a) Establishment.--
          [(1) In general.--There is established the Delta 
        Regional Authority.
          [(2) Composition.--The Authority shall be composed 
        of--
                  [(A) a Federal member, to be appointed by the 
                President, with the advice and consent of the 
                Senate; and
                  [(B) the Governor (or a designee of the 
                Governor) of each State in the region that 
                elects to participate in the Authority.
          [(3) Cochairpersons.--The Authority shall be headed 
        by--
                  [(A) the Federal member, who shall serve--
                          [(i) as the Federal cochairperson; 
                        and
                          [(ii) as a liaison between the 
                        Federal Government and the Authority; 
                        and
                  [(B) a State cochairperson, who--
                          [(i) shall be a Governor of a 
                        participating State in the region; and
                          [(ii) shall be elected by the State 
                        members for a term of not less than 1 
                        year.
  [(b) Alternate Members.--
          [(1) State alternates.--The State member of a 
        participating State may have a single alternate, who 
        shall be--
                  [(A) a resident of that State; and
                  [(B) appointed by the Governor of the State.
          [(2) Alternate federal cochairperson.--The President 
        shall appoint an alternate Federal cochairperson.
          [(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.
          [(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--
                  [(A) who is not an Authority member; or
                  [(B) who is not entitled to vote in Authority 
                meetings.
  [(c) Voting.--
          [(1) In general.--
                  [(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.
                  [(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.
          [(2) Quorum.--A quorum of State members shall be 
        required to be present for the Authority to make any 
        policy decision, including--
                  [(A) a modification or revision of an 
                Authority policy decision;
                  [(B) approval of a State or regional 
                development plan; and
                  [(C) any allocation of funds among the 
                States.
          [(3) Project and grant proposals.--The approval of 
        project and grant proposals shall be--
                  [(A) a responsibility of the Authority; and
                  [(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.
  [(d) Duties.--The Authority shall--
          [(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;
          [(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);
          [(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 local agencies, universities, local 
        development districts, and other nonprofit groups;
          [(4) formulate and recommend to the Governors and 
        legislatures of States that participate in the 
        Authority forms of interstate cooperation;
          [(5) work with State and local agencies in developing 
        appropriate model legislation;
          [(6)(A) enhance the capacity of, and provide support 
        for, local development districts in the 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;
          [(7) encourage private investment in industrial, 
        commercial, and other economic development projects in 
        the region; and
          [(8) cooperate with and assist State governments with 
        economic development programs of participating States.
  [(e) Administration.--In carrying out subsection (d), the 
Authority 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 Authority as the Authority considers 
        appropriate;
          [(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;
          [(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;
          [(4) adopt, amend, and repeal bylaws, rules, and 
        regulations governing the conduct of Authority business 
        and the performance of Authority duties;
          [(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;
          [(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;
          [(7) provide for coverage of Authority employees in a 
        suitable retirement and employee benefit system by--
                  [(A) making arrangements or entering into 
                contracts with any participating State 
                government; or
                  [(B) otherwise providing retirement and other 
                employee benefit coverage;
          [(8) accept, use, and dispose of gifts or donations 
        of services or real, personal, tangible, or intangible 
        property;
          [(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--
                  [(A) any department, agency, or 
                instrumentality of the United States;
                  [(B) any State (including a political 
                subdivision, agency, or instrumentality of the 
                State); or
                  [(C) any person, firm, association, or 
                corporation; and
          [(10) establish and maintain a central office and 
        field offices at such locations as the Authority may 
        select.
  [(f) Federal Agency Cooperation.--A Federal agency shall--
          [(1) cooperate with the Authority; and
          [(2) provide, on request of the Federal 
        cochairperson, appropriate assistance in carrying out 
        this subtitle, in accordance with applicable Federal 
        laws (including regulations).
  [(g) Administrative Expenses.--
          [(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--
                  [(A) by the Federal Government, in an amount 
                equal to 50 percent of the administrative 
                expenses; and
                  [(B) by the States in the region 
                participating in the Authority, in an amount 
                equal to 50 percent of the administrative 
                expenses.
          [(2) State share.--
                  [(A) In general.--The share of administrative 
                expenses of the Authority to be paid by each 
                State shall be determined by the Authority.
                  [(B) No federal participation.--The Federal 
                cochairperson shall not participate or vote in 
                any decision under subparagraph (A).
                  [(C) Delinquent states.--If a State is 
                delinquent in payment of the State's share of 
                administrative expenses of the Authority under 
                this subsection--
                          [(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
                          [(ii) no member of the Authority from 
                        the State shall participate or vote in 
                        any action by the Authority.
  [(h) Compensation.--
          [(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.
          [(2) Alternate federal cochairperson.--The alternate 
        Federal cochairperson--
                  [(A) shall be compensated by the Federal 
                Government at level V of the Executive Schedule 
                described in paragraph (1); and
                  [(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.
          [(3) State members and alternates.--
                  [(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.
                  [(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.
          [(4) Detailed employees.--
                  [(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--
                          [(i) any source other than the State, 
                        local, or intergovernmental department 
                        or agency from which the person was 
                        detailed; or
                          [(ii) the Authority.
                  [(B) Violation.--Any person that violates 
                this paragraph shall be fined not more than 
                $5,000, imprisoned not more than 1 year, or 
                both.
                  [(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.
          [(5) Additional personnel.--
                  [(A) Compensation.--
                          [(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.
                          [(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.
                  [(B) Executive director.--The executive 
                director shall be responsible for--
                          [(i) the carrying out of the 
                        administrative duties of the Authority;
                          [(ii) direction of the Authority 
                        staff; and
                          [(iii) such other duties as the 
                        Authority may assign.
                  [(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.
  [(i) Conflicts of Interest.--
          [(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 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--
                  [(A) the member, alternate, officer, or 
                employee;
                  [(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
                  [(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.
          [(2) Disclosure.--Paragraph (1) shall not apply if 
        the State member, alternate, officer, or employee--
                  [(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;
                  [(B) makes full disclosure of the financial 
                interest; and
                  [(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.
          [(3) Violation.--Any person that violates this 
        subsection shall be fined not more than $10,000, 
        imprisoned not more than 2 years, or both.
  [(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.

[SEC. 382C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.

  [(a) In General.--The Authority may approve grants to States 
and public and nonprofit entities for projects, approved in 
accordance with section 382I--
          [(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);
          [(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;
          [(3) to provide assistance to severely distressed and 
        underdeveloped areas that lack financial resources for 
        improving basic public services;
          [(4) to provide assistance to severely distressed and 
        underdeveloped areas that lack financial resources for 
        equipping industrial parks and related facilities; and
          [(5) to otherwise achieve the purposes of this 
        subtitle.
  [(b) Funding.--
          [(1) In general.--Funds for grants under subsection 
        (a) may be provided--
                  [(A) entirely from appropriations to carry 
                out this section;
                  [(B) in combination with funds available 
                under another Federal or Federal grant program; 
                or
                  [(C) from any other source.
          [(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:
                  [(A) Basic public infrastructure in 
                distressed counties and isolated areas of 
                distress.
                  [(B) Transportation infrastructure for the 
                purpose of facilitating economic development in 
                the region.
                  [(C) Business development, with emphasis on 
                entrepreneurship.
                  [(D) Job training or employment-related 
                education, with emphasis on use of existing 
                public educational institutions located in the 
                region.

[SEC. 382D. 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) the States or communities lack the economic 
        resources to provide the required matching share; or
          [(2) there are insufficient funds available under the 
        applicable Federal law authorizing the Federal grant 
        program to meet pressing needs of the region.
  [(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--
          [(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
          [(2) shall use amounts made available to carry out 
        this subtitle to pay the increased Federal share.
  [(c) Certifications.--
          [(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--
                  [(A) meets (except as provided in subsection 
                (b)) the applicable requirements of the 
                applicable Federal grant program; and
                  [(B) could be approved for Federal 
                contribution under the Federal grant program if 
                funds were available under the law for the 
                project.
          [(2) Certification by authority.--
                  [(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--
                          [(i) shall be controlling; and
                          [(ii) shall be accepted by the 
                        Federal agencies.
                  [(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.

[SEC. 382E. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND 
                    ADMINISTRATIVE EXPENSES.

  [(a) Definition of Local Development District.--In this 
section, the term ``local development district'' means an 
entity that--
          [(1) is--
                  [(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
                  [(B) where an entity described in 
                subparagraph (A) does not exist--
                          [(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;
                          [(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;
                          [(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--
                                  [(I) by the Governor of each 
                                State in which the entity is 
                                located; or
                                  [(II) by the State officer 
                                designated by the appropriate 
                                State law to make the 
                                certification; and
                  [(iv)(I) a nonprofit incorporated body 
                organized or chartered under the law of the 
                State in which the entity is located;
                  [(II) a nonprofit agency or instrumentality 
                of a State or local government;
                  [(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
                  [(IV) a nonprofit association or combination 
                of bodies, agencies, and instrumentalities 
                described in subclauses (I) through (III); and
          [(2) has not, as certified by the Federal 
        cochairperson--
                  [(A) inappropriately used Federal grant funds 
                from any Federal source; or
                  [(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.
  [(b) Grants to Local Development Districts.--
          [(1) In general.--The Authority shall make grants for 
        administrative expenses under this section.
          [(2) Conditions for grants.--
                  [(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.
                  [(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.
                  [(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.
  [(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; and
          [(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--
                  [(A) are involved in multijurisdictional 
                planning;
                  [(B) provide technical assistance to local 
                jurisdictions and potential grantees; and
                  [(C) provide leadership and civic development 
                assistance.

[SEC. 382F. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED COUNTIES.

  [(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--
          [(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;
          [(2) as nondistressed counties, counties in the 
        region that are not designated as distressed counties 
        under paragraph (1); and
          [(3) as isolated areas of distress, areas located in 
        nondistressed counties (as designated under paragraph 
        (2)) that have high rates of poverty or unemployment.
  [(b) Distressed Counties.--
          [(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.
          [(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.
  [(c) Nondistressed Counties.--
          [(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).
          [(2) Exceptions.--
                  [(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).
                  [(B) Multicounty projects.--The Authority may 
                waive the application of the funding 
                prohibition under paragraph (1) to--
                          [(i) a multicounty project that 
                        includes participation by a 
                        nondistressed county; or
                          [(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.
                  [(C) Isolated areas of distress.--For a 
                designation of an isolated area of distress for 
                assistance to be effective, the designation 
                shall be supported--
                          [(i) by the most recent Federal data 
                        available; or
                          [(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.
  [(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).

[SEC. 382G. DEVELOPMENT PLANNING PROCESS.

  [(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.
  [(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).
  [(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--
          [(1) consult with--
                  [(A) local development districts; and
                  [(B) local units of government; and
          [(2) take into consideration the goals, objectives, 
        priorities, and recommendations of the entities 
        described in paragraph (1).
  [(d) Public Participation.--
          [(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.
          [(2) Regulations.--The Authority shall develop 
        guidelines for providing public participation described 
        in paragraph (1), including public hearings.

[SEC. 382H. PROGRAM DEVELOPMENT CRITERIA.

  [(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--
          [(1) the relationship of the project or class of 
        projects to overall regional development;
          [(2) the per capita income and poverty and 
        unemployment 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 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 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.
  [(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.
  [(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.

[SEC. 382I. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.

  [(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.
  [(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.
  [(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--
          [(1) describes ways in which the project complies 
        with any applicable State development plan;
          [(2) meets applicable criteria under section 382H;
          [(3) provides adequate assurance that the proposed 
        project will be properly administered, operated, and 
        maintained; and
          [(4) otherwise meets the requirements of this 
        subtitle.
  [(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.

[SEC. 382J. CONSENT OF STATES.

  [Nothing in this subtitle requires any State to engage in or 
accept any program under this subtitle without the consent of 
the State.

[SEC. 382K. RECORDS.

  [(a) Records of the Authority.--
          [(1) In general.--The Authority shall maintain 
        accurate and complete records of all transactions and 
        activities of the Authority.
          [(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).
  [(b) Records of Recipients of Federal Assistance.--
          [(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.
          [(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).
  [(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.

[SEC. 382L. ANNUAL REPORT.

  [Not 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.

[SEC. 382M. AUTHORIZATION OF APPROPRIATIONS.

  [(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.
  [(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.

[SEC. 382N. TERMINATION OF AUTHORITY.

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

         [Subtitle G--Northern Great Plains Regional Authority

[SEC. 383A. DEFINITIONS.

  [In this subtitle:
          [(1) Authority.--The term ``Authority'' means the 
        Northern Great Plains Regional Authority established by 
        section 383B.
          [(2) Federal grant program.--The term ``Federal grant 
        program'' means a Federal grant program to provide 
        assistance in--
                  [(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);
                  [(B) acquiring or developing land;
                  [(C) constructing or equipping a highway, 
                road, bridge, or facility;
                  [(D) carrying out other economic development 
                activities; or
                  [(E) conducting research activities related 
                to the activities described in subparagraphs 
                (A) through (D).
          [(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).
          [(4) Region.--The term ``region'' means the States of 
        Iowa, Minnesota, Nebraska, North Dakota, and South 
        Dakota.

[SEC. 383B. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

  [(a) Establishment.--
          [(1) In general.--There is established the Northern 
        Great Plains Regional Authority.
          [(2) Composition.--The Authority shall be composed 
        of--
                  [(A) a Federal member, to be appointed by the 
                President, by and with the advice and consent 
                of the Senate;
                  [(B) the Governor (or a designee of the 
                Governor) of each State in the region that 
                elects to participate in the Authority; and
                  [(C) a member of an Indian tribe, who shall 
                be a chairperson of an Indian tribe in the 
                region or a designee of such a chairperson, to 
                be appointed by the President, by and with the 
                advice and consent of the Senate.
          [(3) Cochairpersons.--The Authority shall be headed 
        by--
                  [(A) the Federal member, who shall serve--
                          [(i) as the Federal cochairperson; 
                        and
                          [(ii) as a liaison between the 
                        Federal Government and the Authority;
                  [(B) a State cochairperson, who--
                          [(i) shall be a Governor of a 
                        participating State in the region; and
                          [(ii) shall be elected by the State 
                        members for a term of not less than 1 
                        year; and
                  [(C) the member of an Indian tribe, who shall 
                serve--
                          [(i) as the tribal cochairperson; and
                          [(ii) as a liaison between the 
                        governments of Indian tribes in the 
                        region and the Authority.
  [(b) Alternate Members.--
          [(1) Alternate federal cochairperson.--The President 
        shall appoint an alternate Federal cochairperson.
          [(2) State alternates.--
                  [(A) In general.--The State member of a 
                participating State may have a single 
                alternate, who shall be--
                          [(i) a resident of that State; and
                          [(ii) appointed by the Governor of 
                        the State.
                  [(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.
          [(3) Alternate tribal cochairperson.--The President 
        shall appoint an alternate tribal cochairperson, by and 
        with the advice and consent of the Senate.
          [(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--
                  [(A) a member of the Authority; or
                  [(B) entitled to vote in Authority meetings.
  [(c) Voting.--
          [(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.
          [(2) Quorum.--A quorum of State members shall be 
        required to be present for the Authority to make any 
        policy decision, including--
                  [(A) a modification or revision of an 
                Authority policy decision;
                  [(B) approval of a State or regional 
                development plan; and
                  [(C) any allocation of funds among the 
                States.
          [(3) Project and grant proposals.--The approval of 
        project and grant proposals shall be--
                  [(A) a responsibility of the Authority; and
                  [(B) conducted in accordance with section 
                383I.
          [(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.
  [(d) Duties.--The Authority shall--
          [(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;
          [(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);
          [(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;
          [(4) formulate and recommend to the Governors and 
        legislatures of States that participate in the 
        Authority forms of interstate cooperation;
          [(5) work with State, tribal, and local agencies in 
        developing appropriate model legislation;
          [(6)(A) enhance the capacity of, and provide support 
        for, local development districts in the 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;
          [(7) encourage private investment in industrial, 
        commercial, and other economic development projects in 
        the region; and
          [(8) cooperate with and assist State governments with 
        economic development programs of participating States.
  [(e) Administration.--In carrying out subsection (d), the 
Authority 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 Authority as the Authority considers 
        appropriate;
          [(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;
          [(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;
          [(4) adopt, amend, and repeal bylaws and rules 
        governing the conduct of business and the performance 
        of duties of the Authority;
          [(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;
          [(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;
          [(7) provide for coverage of Authority employees in a 
        suitable retirement and employee benefit system by--
                  [(A) making arrangements or entering into 
                contracts with any participating State 
                government or tribal government; or
                  [(B) otherwise providing retirement and other 
                employee benefit coverage;
          [(8) accept, use, and dispose of gifts or donations 
        of services or real, personal, tangible, or intangible 
        property;
          [(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--
                  [(A) any department, agency, or 
                instrumentality of the United States;
                  [(B) any State (including a political 
                subdivision, agency, or instrumentality of the 
                State);
                  [(C) any Indian tribe in the region; or
                  [(D) any person, firm, association, or 
                corporation; and
          [(10) establish and maintain a central office and 
        field offices at such locations as the Authority may 
        select.
  [(f) Federal Agency Cooperation.--A Federal agency shall--
          [(1) cooperate with the Authority; and
          [(2) provide, on request of the Federal 
        cochairperson, appropriate assistance in carrying out 
        this subtitle, in accordance with applicable Federal 
        laws (including regulations).
  [(g) Administrative Expenses.--
          [(1) Federal share.--The Federal share of the 
        administrative expenses of the Authority shall be--
                  [(A) for fiscal year 2002, 100 percent;
                  [(B) for fiscal year 2003, 75 percent; and
                  [(C) for fiscal year 2004 and each fiscal 
                year thereafter, 50 percent.
          [(2) Non-federal share.--
                  [(A) In general.--The non-Federal share of 
                the administrative expenses of the Authority 
                shall be paid by non-Federal sources in the 
                States that participate in the Authority.
                  [(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.
                  [(C) No federal participation.--The Federal 
                cochairperson shall not participate or vote in 
                any decision under subparagraph (B).
                  [(D) Delinquent states.--If a State is 
                delinquent in payment of the State's share of 
                administrative expenses of the Authority 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); and
                          [(ii) no member of the Authority from 
                        the State shall participate or vote in 
                        any action by the Authority.
  [(h) Compensation.--
          [(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.
          [(2) Alternate federal and tribal cochairpersons.--
        The alternate Federal cochairperson and the alternate 
        tribal cochairperson--
                  [(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
                  [(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.
          [(3) State members and alternates.--
                  [(A) In general.--A State shall compensate 
                each member and alternate representing the 
                State on the Authority at the rate established 
                by State law.
                  [(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.
          [(4) Detailed employees.--
                  [(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--
                          [(i) any source other than the State, 
                        tribal, local, or intergovernmental 
                        agency from which the person was 
                        detailed; or
                          [(ii) the Authority.
                  [(B) Violation.--Any person that violates 
                this paragraph shall be fined not more than 
                $5,000, imprisoned not more than 1 year, or 
                both.
                  [(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.
          [(5) Additional personnel.--
                  [(A) Compensation.--
                          [(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.
                          [(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.
                  [(B) Executive director.--The executive 
                director shall be responsible for--
                          [(i) the carrying out of the 
                        administrative duties of the Authority;
                          [(ii) direction of the Authority 
                        staff; and
                          [(iii) such other duties as the 
                        Authority may assign.
                  [(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.
  [(i) Conflicts of Interest.--
          [(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--
                  [(A) the member, alternate, officer, or 
                employee;
                  [(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
                  [(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.
          [(2) Disclosure.--Paragraph (1) shall not apply if 
        the State member, Indian tribe member, alternate, 
        officer, or employee--
                  [(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;
                  [(B) makes full disclosure of the financial 
                interest; and
                  [(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.
          [(3) Violation.--Any person that violates this 
        subsection shall be fined not more than $10,000, 
        imprisoned not more than 2 years, or both.
  [(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.

[SEC. 383C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.

  [(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--
          [(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);
          [(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;
          [(3) to provide assistance to severely distressed and 
        underdeveloped areas that lack financial resources for 
        improving basic public services;
          [(4) to provide assistance to severely distressed and 
        underdeveloped areas that lack financial resources for 
        equipping industrial parks and related facilities; and
          [(5) to otherwise achieve the purposes of this 
        subtitle.
  [(b) Funding.--
          [(1) In general.--Funds for grants under subsection 
        (a) may be provided--
                  [(A) entirely from appropriations to carry 
                out this section;
                  [(B) in combination with funds available 
                under another Federal grant program; or
                  [(C) from any other source.
          [(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:
                  [(A) Basic public infrastructure in 
                distressed counties and isolated areas of 
                distress.
                  [(B) Transportation and telecommunication 
                infrastructure for the purpose of facilitating 
                economic development in the region.
                  [(C) Business development, with emphasis on 
                entrepreneurship.
                  [(D) Job training or employment-related 
                education, with emphasis on use of existing 
                public educational institutions located in the 
                region.

[SEC. 383D. 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 authorizing the Federal grant 
        program to meet pressing needs of the region.
  [(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--
          [(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
          [(2) shall use amounts made available to carry out 
        this subtitle to pay the increased Federal share.
  [(c) Certifications.--
          [(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--
                  [(A) meets (except as provided in subsection 
                (b)) the applicable requirements of the 
                applicable Federal grant program; and
                  [(B) could be approved for Federal 
                contribution under the Federal grant program if 
                funds were available under the law for the 
                project.
          [(2) Certification by authority.--
                  [(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--
                          [(i) shall be controlling; and
                          [(ii) shall be accepted by the 
                        Federal agencies.
                  [(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.

[SEC. 383E. LOCAL DEVELOPMENT DISTRICTS AND ORGANIZATIONS AND NORTHERN 
                    GREAT PLAINS INC.

  [(a) Definition of Local Development District.--In this 
section, the term ``local development district'' means an 
entity--
          [(1) that--
                  [(A) is 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
                  [(B) is--
                          [(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;
                          [(ii) governed by a policy board with 
                        at least a simple majority of members 
                        consisting of--
                                  [(I) elected officials or 
                                employees of a general purpose 
                                unit of local government who 
                                have been appointed to 
                                represent the government; or
                                  [(II) individuals appointed 
                                by the general purpose unit of 
                                local government to represent 
                                the government;
                          [(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--
                                  [(I) by the Governor of each 
                                State in which the entity is 
                                located; or
                                  [(II) by the State officer 
                                designated by the appropriate 
                                State law to make the 
                                certification; and
                          [(iv)(I) a nonprofit incorporated 
                        body organized or chartered under the 
                        law of the State in which the entity is 
                        located;
                          [(II) a nonprofit agency or 
                        instrumentality of a State or local 
                        government;
                          [(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
                          [(IV) a nonprofit association or 
                        combination of bodies, agencies, and 
                        instrumentalities described in 
                        subclauses (I) through (III); and
          [(2) that has not, as certified by the Federal 
        cochairperson--
                  [(A) inappropriately used Federal grant funds 
                from any Federal source; or
                  [(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.
  [(b) Grants to Local Development Districts.--
          [(1) In general.--The Authority may make grants for 
        administrative expenses under this section.
          [(2) Conditions for grants.--
                  [(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.
                  [(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.
                  [(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.
  [(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; and
          [(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--
                  [(A) are involved in multijurisdictional 
                planning;
                  [(B) provide technical assistance to local 
                jurisdictions and potential grantees; and
                  [(C) provide leadership and civic development 
                assistance.
  [(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)--
          [(1) shall serve as an independent, primary resource 
        for the Authority on issues of concern to the region;
          [(2) shall advise the Authority on development of 
        international trade;
          [(3) may provide research, education, training, and 
        other support to the Authority; and
          [(4) may carry out other activities on its own behalf 
        or on behalf of other entities.

[SEC. 383F. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED COUNTIES.

  [(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--
          [(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;
          [(2) as nondistressed counties, counties in the 
        region that are not designated as distressed counties 
        under paragraph (1); and
          [(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.
  [(b) Distressed Counties.--
          [(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.
          [(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 residents of 1 or more distressed 
        counties or isolated areas of distress in the region.
  [(c) Nondistressed Counties.--
          [(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).
          [(2) Exceptions.--
                  [(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).
                  [(B) Multicounty projects.--The Authority may 
                waive the application of the funding 
                prohibition under paragraph (1) to--
                          [(i) a multicounty project that 
                        includes participation by a 
                        nondistressed county; or
                          [(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.
                  [(C) Isolated areas of distress.--For a 
                designation of an isolated area of distress for 
                assistance to be effective, the designation 
                shall be supported--
                          [(i) by the most recent Federal data 
                        available; or
                          [(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.
  [(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).

[SEC. 383G. DEVELOPMENT PLANNING PROCESS.

  [(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.
  [(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).
  [(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--
          [(1) consult with--
                  [(A) local development districts; and
                  [(B) local units of government; and
          [(2) take into consideration the goals, objectives, 
        priorities, and recommendations of the entities 
        described in paragraph (1).
  [(d) Public Participation.--
          [(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.
          [(2) Regulations.--The Authority shall develop 
        guidelines for providing public participation described 
        in paragraph (1), including public hearings.

[SEC. 383H. PROGRAM DEVELOPMENT CRITERIA.

  [(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--
          [(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 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.
  [(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.
  [(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.

[SEC. 383I. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.

  [(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.
  [(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.
  [(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--
          [(1) describes ways in which the project complies 
        with any applicable State development plan;
          [(2) meets applicable criteria under section 383H;
          [(3) provides adequate assurance that the proposed 
        project will be properly administered, operated, and 
        maintained; and
          [(4) otherwise meets the requirements of this 
        subtitle.
  [(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.

[SEC. 383J. CONSENT OF STATES.

  [Nothing in this subtitle requires any State to engage in or 
accept any program under this subtitle without the consent of 
the State.

[SEC. 383K. RECORDS.

  [(a) Records of the Authority.--
          [(1) In general.--The Authority shall maintain 
        accurate and complete records of all transactions and 
        activities of the Authority.
          [(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).
  [(b) Records of Recipients of Federal Assistance.--
          [(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.
          [(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).
  [(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.

[SEC. 383L. ANNUAL REPORT.

  [Not 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.

[SEC. 383M. AUTHORIZATION OF APPROPRIATIONS.

  [(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.
  [(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.
  [(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--
          [(1) the aggregate amount of grants under this 
        subtitle for the fiscal year; and
          [(2) the ratio that--
                  [(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
                  [(B) the population of the region (as so 
                determined).

[SEC. 383N. TERMINATION OF AUTHORITY.

  [The authority provided by this subtitle terminates effective 
October 1, 2007.]

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                              ----------                              

            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; 
        [or 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 Regulatory 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, [or 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;

           *       *       *       *       *       *       *

                                  
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