I

104TH CONGRESS

1ST SESSION H. R. 2145

To reauthorize and make reforms to programs authorized by the Public

Works and Economic Development Act of 1965 and the Appalachian

Regional Development Act of 1965.

IN THE HOUSE OF REPRESENTATIVES

JULY 31, 1995

Mr. GILCHREST (for himself, Mr. SHUSTER, Mr. MINETA, Mr. WISE, and Mr.

WICKER) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Banking and Financial Services, for a period to be subsequently

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To reauthorize and make reforms to programs authorized

by the Public Works and Economic Development Act

of 1965 and the Appalachian Regional Development Act

of 1965.

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

3 SECTION 1. SHORT TITLE; EFFECTIVE DATE.

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

5 ‘‘Economic Development Partnership Act of 1995’’.
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1 (b) EFFECTIVE DATE.—Except as otherwise ex2 pressly provided, this Act and the amendments made by

3 this Act shall take effect on October 1, 1995.

4 TITLE I—PUBLIC WORKS AND

5 ECONOMIC DEVELOPMENT

6 SEC. 101. REAUTHORIZATION OF PUBLIC WORKS AND ECO7 NOMIC DEVELOPMENT ACT OF 1965.

8 The Public Works and Economic Development Act of

9 1965 (40 U.S.C. 3131 et seq.) is amended by striking all

10 after the first section and inserting the following:

11 ‘‘SEC. 2. FINDINGS AND DECLARATION.

12 ‘‘(a) FINDINGS.—Congress finds that—

13 ‘‘(1) the maintenance of the national economy

14 at a high level is vital to the best interests of the

15 United States, but that some of our regions, coun16 ties, and communities are suffering substantial and

17 persistent unemployment and underemployment that

18 cause hardship to many individuals and their fami19 lies, and waste invaluable human resources;

20 ‘‘(2) to overcome this problem the Federal Gov21 ernment, in cooperation with the States, should help

22 areas and regions of substantial and persistent un23 employment and underemployment to take effective

24 steps in planning and financing their public works

25 and economic development;
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1 ‘‘(3) Federal financial assistance, including

2 grants for public works and development facilities to

3 communities, industries, enterprises, and individuals

4 in areas needing development should enable such

5 areas to help themselves achieve lasting improve6 ment and enhance the domestic prosperity by the es7 tablishment of stable and diversified local economies

8 and improved local conditions, if such assistance is

9 preceded by and consistent with sound, long-range

10 economic planning; and

11 ‘‘(4) under the provisions of this Act, new em12 ployment opportunities should be created by develop13 ing and expanding new and existing public works

14 and other facilities and resources rather than by

15 merely transferring jobs from one area of the United

16 States to another.

17 ‘‘(b) DECLARATION.—Congress declares that, in fur18 therance of maintaining the national economy at a high

19 level—

20 ‘‘(1) the assistance authorized by this Act

21 should be made available to both rural and urban

22 areas;

23 ‘‘(2) such assistance should be made available

24 for planning for economic development prior to the
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1 actual occurrences of economic distress in order to

2 avoid such condition; and

3 ‘‘(3) such assistance should be used for long4 term economic rehabilitation in areas where long5 term economic deterioration has occurred or is tak6 ing place.

7 ‘‘TITLE I—ECONOMIC DEVELOP8 MENT REGIONAL COMMIS9 SIONS

10 ‘‘SEC. 101. ESTABLISHMENT OF REGIONAL COMMISSIONS.

11 ‘‘(a) ESTABLISHMENT.—There is established for each

12 region established by section 105 an Economic Develop13 ment Regional Commission (hereinafter in this Act re14 ferred to as a ‘Regional Commission’).

15 ‘‘(b) MEMBERSHIP.—

16 ‘‘(1) IN GENERAL.—Each Regional Commission

17 shall be composed of 1 Federal member and 1 State

18 member from each participating State in the region

19 represented by the Regional Commission.

20 ‘‘(2) FEDERAL COCHAIRPERSON.—The Federal

21 member of each Regional Commission shall be the

22 Secretary of Commerce (hereinafter in this Act re23 ferred to as the ‘Secretary’). The Secretary shall

24 serve as the Federal Cochairperson of each Regional

25 Commission.
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1 ‘‘(3) STATE MEMBERS.—

2 ‘‘(A) IN GENERAL.—Each State member of

3 a Regional Commission shall be the chief execu4 tive officer of the State. The State members of

5 a Regional Commission shall elect a Cochairper6 son from among such State members for a term

7 of not less than 1 year.

8 ‘‘(B) ALTERNATES.—Each State member

9 of a Regional Commission may have a single al10 ternate, appointed by the Chief Executive Offi11 cer from among members of the Chief Execu12 tive Officer’s cabinet or the Chief Executive Of13 ficer’s personal staff. An alternate shall vote in

14 the event of the absence, death, disability, re15 moval, or resignation of the State representa16 tive for which he or she is an alternate. A State

17 alternate shall not be counted toward the estab18 lishment of a quorum of the Commission in any

19 instance in which a quorum of the State mem20 bers is required to be present.

21 ‘‘(c) DECISIONMAKING.—

22 ‘‘(1) VOTING.—Decisions by a Regional Com23 mission shall require an affirmative vote of the Sec24 retary (or the Secretary’s designee) and of the ma25 jority of the State members.
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1 ‘‘(2) QUORUM.—No decision of a Regional

2 Commission involving Commission policy, developing

3 investment strategies, or allocating funds among

4 States may be made without the Secretary (or the

5 Secretary’s designee) and a quorum of the State

6 members present. For purposes of this Act, the Sec7 retary (or the Secretary’s designee) and a majority

8 of the State members shall constitute a quorum.

9 ‘‘SEC. 102. COOPERATION OF FEDERAL AGENCIES.

10 ‘‘Each Federal department and agency, in accordance

11 with applicable laws and within the limits of available

12 funds, shall cooperate with each Regional Commission in

13 order to assist the Regional Commission in carrying out

14 the functions of the Regional Commission.

15 ‘‘SEC. 103. ADMINISTRATIVE EXPENSES.

16 ‘‘(a) PAYMENT BY STATES.—Fifty percent of the ad17 ministrative expenses of a Regional Commission (other

18 than the expenses of the Secretary) shall be paid by the

19 States in the region represented by the Regional Commis20 sion and the remaining 50 percent of such expenses shall

21 be paid by the Federal Government. The expenses of the

22 Secretary and the Secretary’s staff shall be paid solely by

23 the Federal Government.

24 ‘‘(b) DETERMINATION OF STATE SHARE.—The share

25 of the administrative expenses to be paid by each State
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1 shall be determined by the Regional Commission. The Sec2 retary shall not participate or vote in such determination.

3 ‘‘(c) DELINQUENT PAYMENTS.—No assistance au4 thorized by this Act shall be furnished to any State or

5 to any political subdivision or resident of a State, nor shall

6 the State member of a Regional Commission participate

7 or vote in any determination by the Regional Commission,

8 while such State is delinquent in the payment of such

9 State’s share of the administrative expenses of the Re10 gional Commission.

11 ‘‘SEC. 104. ADMINISTRATIVE POWERS.

12 ‘‘To carry out its duties under this Act, consistent

13 with regulations issued by the Secretary, a Regional Com14 mission may take any of the following actions:

15 ‘‘(1) Adopt, amend, and repeal bylaws and rules

16 governing the conduct of the Regional Commission’s

17 business and the performance of its functions.

18 ‘‘(2) Appoint and fix the pay of an executive di19 rector and such other personnel as may be necessary

20 to enable the Regional Commission to carry out its

21 functions; except that the compensation for any indi22 vidual so appointed shall not exceed the rate of basic

23 pay for level V of the Executive Schedule and no

24 member, officer, or employee of the Regional Com25 mission, other than the Secretary, employees of the
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1 Secretary, and any Federal employees detailed under

2 paragraph (3), shall be deemed a Federal employee

3 for any purpose.

4 ‘‘(3) Request the head of a Federal department

5 or agency to detail to temporary duty with the Re6 gional Commission such personnel within the admin7 istrative jurisdiction of such head as the Regional

8 Commission may need for carrying out its functions,

9 and each such detail shall be without loss of senior10 ity, pay, or other employee status.

11 ‘‘(4) Arrange for the services of personnel from

12 any State or local government or any subdivision or

13 agency thereof, or any intergovernmental agency.

14 ‘‘(5) Make arrangements, including contracts,

15 with any participating State government for inclu16 sion in a suitable retirement and employee benefits

17 system of such of its personnel as may not be eligi18 ble for, or continue in, another governmental retire19 ment or employee benefit system, or otherwise pro20 vide for such coverage of its personnel. The Director

21 of the Office of Personnel Management is authorized

22 to contract with a Regional Commission for contin23 ued coverage of any Regional Commission employee

24 who, on a date in the 6-month period ending on the

25 date of Regional Commission employment, was a
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1 Federal employee, in the retirement program and

2 other employee benefit programs of the Federal Gov3 ernment.

4 ‘‘(6) Accept, use, and dispose of gifts or dona5 tions of services or property, real, personal, or

6 mixed, tangible or intangible.

7 ‘‘(7) Subject to the requirements of the Federal

8 Property and Administrative Services Act of 1949,

9 enter into and perform such contracts, leases, coop10 erative agreements, or other transactions as may be

11 necessary in carrying out the Regional Commission’s

12 functions and on such terms as the Regional Com13 mission may deem appropriate, with any depart14 ment, agency, or instrumentality of the United

15 States, or with any person, firm, association, or cor16 poration.

17 ‘‘(8) Take such other actions and incur such

18 other expenses as may be necessary and appropriate.

19 ‘‘SEC. 105. ESTABLISHMENT OF REGIONS.

20 ‘‘(a) IN GENERAL.—For the purposes of this Act,

21 there are established 8 regions of the United States as

22 follows:

23 ‘‘(1) REGION I.—Region I shall be composed of

24 the States of Alabama, Florida, Georgia, Kentucky,
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1 Mississippi, North Carolina, South Carolina, and

2 Tennessee.

3 ‘‘(2) REGION II.—Region II shall be composed

4 of the States of Arkansas, Louisiana, New Mexico,

5 Oklahoma, and Texas.

6 ‘‘(3) REGION III.—Region III shall be composed

7 of the States of Illinois, Indiana, Michigan, Min8 nesota, Ohio, and Wisconsin.

9 ‘‘(4) REGION IV.—Region IV shall be composed

10 of the States of Colorado, Iowa, Kansas, Missouri,

11 Montana, Nebraska, North Dakota, South Dakota,

12 Utah, and Wyoming.

13 ‘‘(5) REGION V.—Region V shall be composed

14 of the State of California.

15 ‘‘(6) REGION VI.—Region VI shall be composed

16 of the States of Alaska, Arizona, Hawaii, Idaho, Ne17 vada, Oregon, and Washington and American

18 Samoa, Guam, the Marshall Islands, Micronesia,

19 and the Northern Mariana Islands.

20 ‘‘(7) REGION VII.—Region VII shall be com21 posed of the States of Delaware, Maryland, New

22 Jersey, New York, Pennsylvania, Virginia, and West

23 Virginia and the District of Columbia.

24 ‘‘(8) REGION VIII.—Region VIII shall be com25 posed of the States of Connecticut, Maine, Massa-
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1 chusetts, New Hampshire, Rhode Island, and Ver2 mont and Puerto Rico and the Virgin Islands.

3 ‘‘(b) PARTICIPATION NOT REQUIRED.—No State

4 shall be required to participate in any program under this

5 Act.

6 ‘‘TITLE II—GRANTS FOR PUBLIC

7 WORKS AND DEVELOPMENT

8 FACILITIES

9 ‘‘SEC. 201. DIRECT AND SUPPLEMENTARY GRANTS.

10 ‘‘(a) IN GENERAL.—Upon the application of any eli11 gible recipient, a Regional Commission may—

12 ‘‘(1) make direct grants for the acquisition or

13 development of land and improvements for public

14 works, public service, or development facility usage,

15 and the acquisition, design and engineering, con16 struction, rehabilitation, alteration, expansion, or im17 provement of such facilities, including related ma18 chinery and equipment, within an area described in

19 section 502(a), if the Regional Commission finds

20 that—

21 ‘‘(A) the project for which financial assist22 ance is sought will directly or indirectly—

23 ‘‘(i) tend to improve the opportunities,

24 in the area where such project is or will be

25 located, for the successful establishment or
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1 expansion of industrial or commercial

2 plants or facilities;

3 ‘‘(ii) otherwise assist in the creation

4 of additional long-term employment oppor5 tunities for such area; or

6 ‘‘(iii) primarily benefit the long-term

7 unemployed and members of low-income

8 families;

9 ‘‘(B) the project for which a grant is re10 quested will fulfill a pressing need of the area,

11 or part thereof, in which it is, or will be,

12 located;

13 ‘‘(C) the area for which a project is to be

14 undertaken has an approved investment strat15 egy as provided by section 503 and such project

16 is consistent with such strategy; and

17 ‘‘(D) in the case of an area described in

18 section 502(a)(4), the project to be undertaken

19 will provide immediate useful work to unem20 ployed and underemployed persons in that area;

21 and

22 ‘‘(2) make supplementary grants in order to en23 able the States and other entities within areas de24 scribed in section 502(a) to take maximum advan25 tage of designated Federal grant-in-aid programs (as
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1 defined in subsection (c)(4)), direct grants-in-aid au2 thorized under this section, and Federal grant-in-aid

3 programs authorized by the Watershed Protection

4 and Flood Prevention Act (68 Stat. 666), and the

5 11 watersheds authorized by the Flood Control Act

6 of December 22, 1944 (58 Stat. 887), for which

7 they are eligible but for which, because of their eco8 nomic situation, they cannot supply the required

9 matching share.

10 ‘‘(b) COST SHARING.—Subject to subsection (c), the

11 amount of any direct grant under this subsection for any

12 project shall not exceed 50 percent of the cost of such

13 project.

14 ‘‘(c) REQUIREMENTS APPLICABLE TO SUPPLE15 MENTARY GRANTS.—

16 ‘‘(1) AMOUNT OF SUPPLEMENTARY GRANTS.—

17 ‘‘(A) IN GENERAL.—Except as provided by

18 subparagraph (B), the amount of any supple19 mentary grant under this section for any

20 project shall not exceed the applicable percent21 age established by regulations promulgated by

22 the Secretary, but in no event shall the non23 Federal share of the aggregate cost of any such

24 project (including assumptions of debt) be less

25 than 20 percent of such cost.
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1 ‘‘(B) EXCEPTIONS.—Notwithstanding sub2 paragraph (A)—

3 ‘‘(i) in the case of a grant to an In4 dian tribe, a Regional Commission may re5 duce the non-Federal share below the per6 centage specified in subparagraph (A) or

7 may waive the non-Federal share;

8 ‘‘(ii) in the case of any State or a po9 litical subdivision of the State which the

10 Regional Commission determines has ex11 hausted its effective taxing and borrowing

12 capacity, the Regional Commission shall

13 reduce the non-Federal share below the

14 percentage specified in subparagraph (A)

15 or shall waive the non-Federal share in the

16 case of such a grant for a project in an

17 area described in section 502(a)(4); and

18 ‘‘(iii) in case of any community devel19 opment corporation which the Regional

20 Commission determines has exhausted its

21 effective borrowing capacity, the Regional

22 Commission may reduce the non-Federal

23 share below the percentage specified in

24 subparagraph (A) or waive the non-Federal

25 share in the case of such a grant for a
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1 project in an area described in section

2 502(a)(4).

3 ‘‘(2) FORM OF SUPPLEMENTARY GRANTS.—

4 Supplementary grants shall be made by a Regional

5 Commission, in accordance with such regulations as

6 the Secretary may prescribe, by increasing the

7 amounts of direct grants authorized under this sec8 tion or by the payment of funds appropriated under

9 this Act to the heads of the departments, agencies,

10 and instrumentalities of the Federal Government re11 sponsible for the administration of the applicable

12 Federal programs.

13 ‘‘(3) FEDERAL SHARE LIMITATIONS SPECIFIED

14 IN OTHER LAWS.—Notwithstanding any requirement

15 as to the amount or sources of non-Federal funds

16 that may otherwise be applicable to the Federal pro17 gram involved, funds provided under this subsection

18 shall be used for the sole purpose of increasing the

19 Federal contribution to specific projects in areas de20 scribed in section 502(a) under such programs above

21 the fixed maximum portion of the cost of such

22 project otherwise authorized by the applicable law.

23 ‘‘(4) DESIGNATED FEDERAL GRANT-IN-AID

24 PROGRAMS DEFINED.—In this subsection, the term

25 ‘designated Federal grant-in-aid programs’ means
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1 such existing or future Federal grant-in-aid pro2 grams assisting in the construction or equipping of

3 facilities as the Secretary may, in furtherance of the

4 purposes of this Act, designate as eligible for alloca5 tion of funds under this section.

6 ‘‘(5) CONSIDERATION OF RELATIVE NEED IN

7 DETERMINING AMOUNT.—In determining the

8 amount of any supplementary grant available to any

9 project under this section, a Regional Commission

10 shall take into consideration the relative needs of the

11 area and the nature of the projects to be assisted.

12 ‘‘(d) REGULATIONS.—The Secretary shall prescribe

13 rules, regulations, and procedures to carry out this section

14 which will assure that adequate consideration is given to

15 the relative needs of eligible areas. In prescribing such

16 rules, regulations, and procedures the Secretary shall con17 sider among other relevant factors—

18 ‘‘(1) the severity of the rates of unemployment

19 in the eligible areas and the duration of such unem20 ployment; and

21 ‘‘(2) the income levels of families and the extent

22 of underemployment in eligible areas.

23 ‘‘(e) REVIEW AND COMMENT UPON PROJECTS BY

24 LOCAL GOVERNMENTAL AUTHORITIES.—The Secretary

25 shall prescribe regulations which will assure that appro-
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1 priate local governmental authorities have been given a

2 reasonable opportunity to review and comment upon pro3 posed projects under this section.

4 ‘‘SEC. 202. CONSTRUCTION COST INCREASES.

5 ‘‘In any case where a grant (including a supplemental

6 grant) has been made by a Regional Commission under

7 this title for a project and after such grant has been made

8 but before completion of the project, the cost of such

9 project based upon the designs and specifications which

10 were the basis of the grant has been increased because

11 of increases in costs, the amount of such grant may be

12 increased by an amount equal to the percentage increase,

13 as determined by the Regional Commission, in such costs,

14 but in no event shall the percentage of the Federal share

15 of such project exceed that originally provided for in such

16 grant.

17 ‘‘SEC. 203. USE OF FUNDS IN PROJECTS CONSTRUCTED

18 UNDER PROJECTED COST.

19 ‘‘In any case where a grant (including a supplemental

20 grant) has been made by a Regional Commission under

21 this title for a project, and after such grant has been made

22 but before completion of the project, the cost of such

23 project based upon the designs and specifications which

24 were the basis of the grant has decreased because of de25 creases in costs, such underrun funds may be used to im-
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1 prove the project either directly or indirectly as deter2 mined by the Regional Commission.

3 ‘‘SEC. 204. CHANGED PROJECT CIRCUMSTANCES.

4 ‘‘In any case where a grant (including a supplemental

5 grant) has been made by a Regional Commission under

6 this title for a project, and after such grant has been made

7 but before completion of the project, the purpose or scope

8 of such project based upon the designs and specifications

9 which were the basis of the grant has changed, the Re10 gional Commission may approve the use of grant funds

11 on such changed project if the Regional Commission deter12 mines that such changed project meets the requirements

13 of this title and that such changes are necessary to en14 hance economic development in the area.

15 ‘‘TITLE III—SPECIAL ECONOMIC

16 DEVELOPMENT AND ADJUST17 MENT ASSISTANCE

18 ‘‘SEC. 301. STATEMENT OF PURPOSE.

19 ‘‘The purpose of this title to provide special economic

20 development and adjustment assistance programs to help

21 State and local areas meet special needs arising from ac22 tual or threatened severe unemployment arising from eco23 nomic dislocation, including unemployment arising from

24 actions of the Federal Government and from compliance

25 with environmental requirements which remove economic
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1 activities from a locality, and economic adjustment prob2 lems resulting from severe changes in economic conditions

3 (including long-term economic deterioration), and to en4 courage cooperative intergovernmental action to prevent

5 or solve economic adjustment problems. Nothing in this

6 title is intended to replace the efforts of the economic ad7 justment program of the Department of Defense.

8 ‘‘SEC. 302. GRANTS BY REGIONAL COMMISSIONS.

9 ‘‘(a) IN GENERAL.—A Regional Commission is au10 thorized to make grants directly to any eligible recipient

11 in an area which the Regional Commission determines, in

12 accordance with criteria to be established by the Secretary

13 by regulation—

14 ‘‘(1) has experienced, or may reasonably be

15 foreseen to be about to experience, a special need to

16 meet an expected rise in unemployment, or other

17 economic adjustment problems (including those

18 caused by any action or decision of the Federal Gov19 ernment); or

20 ‘‘(2) has demonstrated long-term economic de21 terioration.

22 ‘‘(b) PURPOSES.—Amounts from grants under sub23 section (a) shall be used by an eligible recipient to carry

24 out or develop an investment strategy which—

25 ‘‘(1) meets the requirements of section 503; and
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1 ‘‘(2) is approved by the Regional Commission.

2 ‘‘(c) TYPES OF ASSISTANCE.—In carrying out an in3 vestment strategy using amounts from grants under sub4 section (a), an eligible recipient may provide assistance for

5 any of the following:

6 ‘‘(1) Public facilities.

7 ‘‘(2) Public services.

8 ‘‘(3) Business development.

9 ‘‘(4) Planning.

10 ‘‘(5) Research and technical assistance.

11 ‘‘(6) Administrative expenses.

12 ‘‘(7) Training.

13 ‘‘(8) Relocation of individuals and businesses.

14 ‘‘(9) Other assistance which demonstrably fur15 thers the economic adjustment objectives of this

16 title.

17 ‘‘(d) DIRECT EXPENDITURE OR REDISTRIBUTION BY

18 RECIPIENT.—Amounts from grants under subsection (a)

19 may be used in direct expenditures by the eligible recipient

20 or through redistribution by the eligible recipient to public

21 and private entities in grants, loans, loan guarantees, pay22 ments to reduce interest on loan guarantees, or other ap23 propriate assistance, but no grant shall be made by an

24 eligible recipient to a private profit-making entity.
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1 ‘‘(e) COORDINATION.—A Regional Commission to the

2 extent practicable shall coordinate the activities relating

3 to the requirements for investment strategies and making

4 grants and loans under this title with other Federal pro5 grams, States, economic development districts, and other

6 appropriate planning and development organizations.

7 ‘‘(f) BASE CLOSINGS AND REALIGNMENTS.—

8 ‘‘(1) LOCATION OF PROJECTS.—In any case in

9 which a Regional Commission determines a need for

10 assistance under subsection (a) due to the closure or

11 realignment of a military installation, the Regional

12 Commission may make such assistance available for

13 projects to be carried out on the military installation

14 and for projects to be carried out in communities ad15 versely affected by the closure or realignment.

16 ‘‘(2) INTEREST IN PROPERTY.—Notwithstand17 ing any other provision of law, a Regional Commis18 sion may provide to an eligible recipient any assist19 ance available under this Act for a project to be car20 ried out on a military installation that is closed or

21 scheduled for closure or realignment without requir22 ing that the eligible recipient have title to the prop23 erty or a leasehold interest in the property for any

24 specified term.
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1 ‘‘SEC. 303. ANNUAL REPORTS BY RECIPIENT.

2 ‘‘Each eligible recipient which receives assistance

3 under this title from a Regional Commission shall annu4 ally during the period such assistance continue to make

5 a full and complete report to the Regional Commission,

6 in such manner as the Regional Commission shall pre7 scribe, and such report shall contain an evaluation of the

8 effectiveness of the economic assistance provided under

9 this title in meeting the need it was designed to alleviate

10 and the purposes of this title.

11 ‘‘SEC. 304. SALE OF FINANCIAL INSTRUMENTS IN REVOLV12 ING LOAN FUNDS.

13 ‘‘Any loan, loan guarantee, equity, or other financial

14 instrument in the portfolio of a revolving loan fund, in15 cluding any financial instrument made available using

16 amounts from a grant made before the effective date of

17 the Economic Development Partnership Act of 1995, may

18 be sold, encumbered, or pledged at the discretion of the

19 grantee of the Fund, to a third party provided that the

20 net proceeds of the transaction—

21 ‘‘(1) shall be deposited into the Fund and may

22 only be used for activities which are consistent with

23 the purposes of this title; and

24 ‘‘(2) shall be subject to the financial manage25 ment, accounting, reporting, and auditing standards

26 which were originally applicable to the grant.
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1 ‘‘SEC. 305. TREATMENT OF REVOLVING LOAN FUNDS.

2 ‘‘(a) IN GENERAL.—Amounts from grants made

3 under this title which are used by an eligible recipient to

4 establish a revolving loan fund shall not be treated, except

5 as provided by subsection (b), as amounts derived from

6 Federal funds for the purposes of any Federal law after

7 such amounts are loaned from the fund to a borrower and

8 repaid to the fund.

9 ‘‘(b) EXCEPTIONS.—Amounts described in subsection

10 (a) which are loaned from a revolving loan fund to a bor11 rower and repaid to the fund—

12 ‘‘(1) may only be used for activities which are

13 consistent with the purposes of this title; and

14 ‘‘(2) shall be subject to the financial manage15 ment, accounting, reporting, and auditing standards

16 which were originally applicable to the grant.

17 ‘‘(c) REGULATIONS.—Not later than 30 days after

18 the effective date of the Economic Development Partner19 ship Act of 1995, the Secretary shall issue regulations to

20 carry out subsection (a).

21 ‘‘(d) PUBLIC REVIEW AND COMMENT.—Before issu22 ing any final guidelines or administrative manuals govern23 ing the operation of revolving loan funds established using

24 amounts from grants under this title, the Secretary shall

25 provide reasonable opportunity for public review of and

26 comment on such guidelines and administrative manuals.
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1 ‘‘(e) APPLICABILITY TO PAST GRANTS.—The re2 quirements of this section applicable to amounts from

3 grants made under this title shall also apply to amounts

4 from grants made, before the effective date of the Eco5 nomic Development Partnership Act of 1995, under title

6 I of this Act, as in effect on the day before such effective

7 date.

8 ‘‘TITLE IV—TECHNICAL ASSIST9 ANCE, RESEARCH, AND IN10 FORMATION

11 ‘‘SEC. 401. TECHNICAL ASSISTANCE.

12 ‘‘(a) IN GENERAL.—In carrying out its duties under

13 this Act, a Regional Commission may provide technical as14 sistance which would be useful in alleviating or preventing

15 conditions of excessive unemployment or underem16 ployment to areas which the Regional Commission finds

17 have substantial need for such assistance. Such assistance

18 shall include project planning and feasibility studies, man19 agement and operational assistance, establishment of busi20 ness outreach centers, and studies evaluating the needs

21 of, and development potentialities for, economic growth of

22 such areas.

23 ‘‘(b) PROCEDURES AND TERMS.—
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1 ‘‘(1) MANNER OF PROVIDING ASSISTANCE.—As2 sistance may be provided by a Regional Commission

3 through—

4 ‘‘(A) members of the Regional Commis5 sion’s staff;

6 ‘‘(B) the payment of funds authorized for

7 this section to departments or agencies of the

8 Federal Government;

9 ‘‘(C) the employment of private individ10 uals, partnerships, firms, corporations, or suit11 able institutions under contracts entered into

12 for such purposes; or

13 ‘‘(D) grants-in-aid to appropriate public or

14 private nonprofit State, area, district, or local

15 organizations.

16 ‘‘(2) REPAYMENT TERMS.—A Regional Com17 mission, in its discretion, may require the repayment

18 of assistance provided under this subsection and pre19 scribe the terms and conditions of such repayment.

20 ‘‘(c) GRANTS COVERING ADMINISTRATIVE EX21 PENSES.—

22 ‘‘(1) IN GENERAL.—A Regional Commission

23 may make grants to defray not to exceed 75 percent

24 of the administrative expenses of organizations

25 which the Regional Commission determines to be
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1 qualified to receive grants-in-aid under subsections

2 (a) and (b); except that in the case of a grant under

3 this subsection to an Indian tribe, the Regional

4 Commission is authorized to defray up to 100 per5 cent of such expenses.

6 ‘‘(2) DETERMINATION OF NON-FEDERAL

7 SHARE.—In determining the amount of the non-Fed8 eral share of such costs or expenses, a Regional

9 Commission shall give due consideration to all con10 tributions both in cash and in kind, fairly evaluated,

11 including contributions of space, equipment, and

12 services.

13 ‘‘(3) USE OF GRANTS WITH PLANNING

14 GRANTS.—Where practicable, grants-in-aid author15 ized under this subsection shall be used in conjunc16 tion with other available planning grants to assure

17 adequate and effective planning and economical use

18 of funds.

19 ‘‘(d) AVAILABILITY OF TECHNICAL INFORMATION;

20 FEDERAL PROCUREMENT.—A Regional Commission shall

21 aid areas described in section 502(a) and other areas by

22 furnishing to interested individuals, communities, indus23 tries, and enterprises within such areas any assistance,

24 technical information, market research, or other forms of

25 assistance, information, or advice which would be useful
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1 in alleviating or preventing conditions of excessive unem2 ployment or underemployment within such areas. The Re3 gional Commission may furnish the procurement divisions

4 of the various departments, agencies, and other instru5 mentalities of the Federal Government with a list contain6 ing the names and addresses of business firms which are

7 located in areas described in section 502(a) and which are

8 desirous of obtaining Government contracts for the fur9 nishing of supplies or services, and designating the sup10 plies and services such firms are engaged in providing.

11 ‘‘SEC. 402. ECONOMIC DEVELOPMENT PLANNING.

12 ‘‘(a) DIRECT GRANTS.—

13 ‘‘(1) IN GENERAL.—A Regional Commission

14 may, upon application of any State, or city, or other

15 political subdivision of a State, or sub-State plan16 ning and development organization (including an

17 area described in section 502(a) or an economic de18 velopment district), make direct grants to such

19 State, city, or other political subdivision, or organi20 zation to pay up to 80 percent of the cost for eco21 nomic development planning.

22 ‘‘(2) PLANNING PROJECTS SPECIFICALLY IN23 CLUDED.—The planning for cities, other political

24 subdivisions, and sub-State planning and develop25 ment organizations (including areas described in sec-
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1 tion 502(a) and economic development districts) as2 sisted under this section shall include systematic ef3 forts to reduce unemployment and increase incomes.

4 ‘‘(3) PLANNING PROCESS.—The planning shall

5 be a continuous process involving public officials and

6 private citizens in analyzing local economies, defin7 ing development goals, determining project opportu8 nities, and formulating and implementing a develop9 ment program.

10 ‘‘(4) COORDINATION OF ASSISTANCE UNDER

11 SECTION 401(C).—The assistance available under this

12 section may be provided in addition to assistance

13 available under section 401(c) but shall not supplant

14 such assistance.

15 ‘‘(b) COMPLIANCE WITH REVIEW PROCEDURE.—The

16 planning assistance authorized under this title shall be

17 used in conjunction with any other available Federal plan18 ning assistance to assure adequate and effective planning

19 and economical use of funds.

20 ‘‘TITLE V—ELIGIBILITY AND

21 INVESTMENT STRATEGIES

22 ‘‘PART A—ELIGIBILITY

23 ‘‘SEC. 501. ELIGIBLE RECIPIENT DEFINED.

24 ‘‘In this Act, the term ‘eligible recipient’ means an

25 area described in section 502(a), an economic development
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1 district designated under section 510, an Indian tribe, a

2 State, a city or other political subdivision of a State, or

3 a consortium of such political subdivisions, or a public or

4 private nonprofit organization or association acting in co5 operation with officials of such political subdivisions.

6 ‘‘SEC. 502. AREA ELIGIBILITY.

7 ‘‘(a) CERTIFICATION.—In order to be eligible for as8 sistance under title II, an applicant seeking assistance to

9 undertake a project in an area shall certify, as part of

10 an application for such assistance, that the area on the

11 date of submission of such application meets 1 or more

12 of the following criteria:

13 ‘‘(1) The area has a per capita income of 80

14 percent or less of the national average.

15 ‘‘(2) The area has an unemployment rate 1 per16 cent above the national average percentage for the

17 most recent 24-month period for which statistics are

18 available.

19 ‘‘(3) The area has experienced or is about to

20 experience a sudden economic dislocation resulting

21 in job loss that is significant both in terms of the

22 number of jobs eliminated and the effect upon the

23 employment rate of the area.

24 ‘‘(4) The area is a community or neighborhood

25 (defined without regard to political or other subdivi-
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1 sions or boundaries) which the Secretary determines

2 has one or more of the following conditions:

3 ‘‘(A) A large concentration of low-income

4 persons.

5 ‘‘(B) Rural areas having substantial out6 migration.

7 ‘‘(C) Substantial unemployment.

8 ‘‘(b) DOCUMENTATION.—A certification made under

9 subsection (a) shall be supported by Federal data, when

10 available, and in other cases by data available through the

11 State government. Such documentation shall be accepted

12 by a Regional Commission unless it is determined to be

13 inaccurate. The most recent statistics available shall be

14 used.

15 ‘‘(c) SPECIAL RULE.—An area which a Regional

16 Commission determines has 1 or more of the conditions

17 described in subsection (a)(4)—

18 ‘‘(1) shall not be subject to the requirements of

19 subparagraphs (A) and (C) of section 201(a)(1); and

20 ‘‘(2) shall not be eligible to meet the require21 ments of section 510(a)(1)(B).

22 ‘‘(d) PRIOR DESIGNATIONS.—Any designation of a

23 redevelopment area made before the effective date of the

24 Economic Development Partnership Act of 1995 shall not

25 be effective after such effective date.
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1 ‘‘SEC. 503. INVESTMENT STRATEGY.

2 ‘‘A Regional Commission may provide assistance

3 under titles II and III to an applicant for a project only

4 if the applicant submits to the Regional Commission, as

5 part of an application for such assistance, and the Re6 gional Commission approves an investment strategy

7 which—

8 ‘‘(1) identifies the economic development prob9 lems to be addressed using such assistance;

10 ‘‘(2) identifies past, present, and projected fu11 ture economic development investments in the area

12 receiving such assistance and public and private par13 ticipants and sources of funding for such invest14 ments;

15 ‘‘(3) sets forth a strategy for addressing the

16 economic problems identified pursuant to paragraph

17 (1) and describes how the strategy will solve such

18 problems;

19 ‘‘(4) provides a description of the project nec20 essary to implement the strategy, estimates of costs,

21 and timetables; and

22 ‘‘(5) provides a summary of public and private

23 resources expected to be available for the project.

24 ‘‘SEC. 504. APPROVAL OF PROJECTS.

25 ‘‘Only applications for grants or other assistance

26 under this Act for specific projects shall be approved which
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1 are certified by the State member of the Regional Com2 mission representing such applicant and determined by

3 the Secretary—

4 ‘‘(1) to be included in a State investment strat5 egy approved by the Regional Commission;

6 ‘‘(2) to have adequate assurance that the

7 project will be properly administered, operated, and

8 maintained; and

9 ‘‘(3) to otherwise meet the requirements for as10 sistance under this Act.

11 ‘‘PART B—ECONOMIC DEVELOPMENT DISTRICTS

12 ‘‘SEC. 510. DESIGNATION OF ECONOMIC DEVELOPMENT

13 DISTRICTS AND ECONOMIC DEVELOPMENT

14 CENTERS.

15 ‘‘(a) IN GENERAL.—In order that economic develop16 ment projects of broader geographic significance may be

17 planned and carried out, a Regional Commission may—

18 ‘‘(1) designate appropriate ‘economic develop19 ment districts’ within the United States with the

20 concurrence of the States in which such districts will

21 be wholly or partially located, if—

22 ‘‘(A) the proposed district is of sufficient

23 size or population, and contains sufficient re24 sources, to foster economic development on a
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1 scale involving more than a single area de2 scribed in section 502(a);

3 ‘‘(B) the proposed district contains at least

4 1 area described in section 502(a);

5 ‘‘(C) the proposed district contains 1 or

6 more areas described in section 502(a) or eco7 nomic development centers identified in an ap8 proved district investment strategy as having

9 sufficient size and potential to foster the eco10 nomic growth activities necessary to alleviate

11 the distress of the areas described in section

12 502(a) within the district; and

13 ‘‘(D) the proposed district has a district

14 investment strategy which includes adequate

15 land use and transportation planning and con16 tains a specific program for district cooperation,

17 self-help, and public investment and is approved

18 by the State or States affected and by the Re19 gional Commission;

20 ‘‘(2) designate as ‘economic development cen21 ters’, in accordance with such regulations as the

22 Secretary shall prescribe, such areas as the Regional

23 Commission may deem appropriate, if—

24 ‘‘(A) the proposed center has been identi25 fied and included in an approved district invest-
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1 ment strategy and recommended by the State

2 or States affected for such special designation;

3 ‘‘(B) the proposed center is geographically

4 and economically so related to the district that

5 its economic growth may reasonably be expected

6 to contribute significantly to the alleviation of

7 distress in the areas described in section 502(a)

8 of the district; and

9 ‘‘(C) the proposed center does not have a

10 population in excess of 250,000 according to

11 the most recent Federal census.

12 ‘‘(3) provide financial assistance in accordance

13 with the criteria of this Act, except as may be herein

14 otherwise provided, for projects in economic develop15 ment centers designated under subsection (a)(2),

16 if—

17 ‘‘(A) the project will further the objectives

18 of the investment strategy of the district in

19 which it is to be located;

20 ‘‘(B) the project will enhance the economic

21 growth potential of the district or result in ad22 ditional long-term employment opportunities

23 commensurate with the amount of Federal fi24 nancial assistance requested; and
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1 ‘‘(C) the amount of Federal financial as2 sistance requested is reasonably related to the

3 size, population, and economic needs of the dis4 trict;

5 ‘‘(4) subject to the 20 percent non-Federal

6 share required for any project by section 201(c), in7 crease the amount of grant assistance authorized by

8 section 201 for projects within areas described in

9 section 502(a), by an amount not to exceed 10 per10 cent of the aggregate cost of any such project, in ac11 cordance with such regulations as the Secretary

12 shall prescribe if—

13 ‘‘(A) the area described in section 502(a)

14 is situated within a designated economic devel15 opment district and is actively participating in

16 the economic development activities of the dis17 trict; and

18 ‘‘(B) the project is consistent with an ap19 proved investment strategy.

20 ‘‘(b) AUTHORITIES.—In designating economic devel21 opment districts and approving district investment strate22 gies under subsection (a), a Regional Commission may,

23 under regulations prescribed by the Secretary—
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1 ‘‘(1) invite the several States to draw up pro2 posed district boundaries and to identify potential

3 economic development centers;

4 ‘‘(2) cooperate with the several States—

5 ‘‘(A) in sponsoring and assisting district

6 economic planning and development groups;

7 and

8 ‘‘(B) in assisting such district groups to

9 formulate district investment strategies; and

10 ‘‘(3) encourage participation by appropriate

11 local governmental authorities in such economic de12 velopment districts.

13 ‘‘(c) TERMINATION OR MODIFICATION OF DESIGNA14 TIONS.—The Secretary shall by regulation prescribe

15 standards for the termination or modification of economic

16 development districts and economic development centers

17 designated under the authority of this section.

18 ‘‘(d) DEFINITIONS.—In this Act, the following defini19 tions apply:

20 ‘‘(1) ECONOMIC DEVELOPMENT DISTRICT.—The

21 term ‘economic development district’ refers to any

22 area within the United States composed of cooperat23 ing areas described in section 502(a) and, where ap24 propriate, designated economic development centers

25 and neighboring counties or communities, which has
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1 been designated by a Regional Commission as an

2 economic development district. Such term includes

3 any economic development district designated by the

4 Secretary under section 403 of this Act, as in effect

5 on the day before the effective date of the Economic

6 Development Partnership Act of 1995.

7 ‘‘(2) ECONOMIC DEVELOPMENT CENTER.—The

8 term ‘economic development center’ refers to any

9 area within the United States which has been identi10 fied as an economic development center in an ap11 proved investment strategy and which has been des12 ignated by a Regional Commission as eligible for fi13 nancial assistance under this Act in accordance with

14 the provisions of this section.

15 ‘‘(3) LOCAL GOVERNMENT.—The term ‘local

16 government’ means any city, county, town, parish,

17 village, or other general-purpose political subdivision

18 of a State.

19 ‘‘(e) PARTS OF ECONOMIC DEVELOPMENT DISTRICTS

20 NOT WITHIN AREAS DESCRIBED IN SECTION 502(a).—

21 A Regional Commission is authorized to provide the finan22 cial assistance which is available to an area described in

23 section 502(a) under this Act to those parts of an eco24 nomic development district which are not within an area

25 described in section 502(a), when such assistance will be
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1 of a substantial direct benefit to an area described in sec2 tion 502(a) within such district. Such financial assistance

3 shall be provided in the same manner and to the same

4 extent as is provided in this Act for an area described in

5 section 502(a); except that nothing in this subsection shall

6 be construed to permit such parts to receive the increase

7 in the amount of grant assistance authorized subsection

8 (a)(4).

9 ‘‘TITLE VI—ADMINISTRATION

10 ‘‘PART A—GENERAL PROVISIONS

11 ‘‘SEC. 601. APPOINTMENT OF UNDER SECRETARY.

12 ‘‘(a) IN GENERAL.—The Secretary shall carry out

13 the Secretary’s duties under this Act acting through an

14 Under Secretary of Commerce for Economic Development

15 to be appointed by the President by and with the advice

16 and consent of the Senate .

17 ‘‘(b) AMENDMENT TO TITLE 5, U.S.C.—Section

18 5314 of title 5, United States Code, is amended by insert19 ing ‘Under Secretary of Commerce for Economic Develop20 ment,’ after ‘Under Secretary of Commerce,’.

21 ‘‘SEC. 602. OFFICE OF ECONOMIC DEVELOPMENT.

22 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab23 lish an Office of Economic Development (hereinafter in

24 this section referred to as the ‘Office’) within the Depart25 ment of Commerce.
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1 ‘‘(b) FUNCTIONS.—The head of the Office shall be

2 the Under Secretary of Commerce for Economic Develop3 ment who shall assist the Secretary in carrying out the

4 Secretary’s duties under this Act, including the issuance

5 of rules, regulations, and policies.

6 ‘‘(c) CLEARINGHOUSE.—It shall be a duty of the

7 Under Secretary in administering the Office—

8 ‘‘(1) to serve as a central information clearing9 house on matters relating to economic development,

10 economic adjustment, disaster recovery, and defense

11 conversion programs and activities of the Federal

12 and State governments, including political subdivi13 sions of the States; and

14 ‘‘(2) to help potential and actual applicants for

15 economic development, economic adjustment, disas16 ter recovery, and defense conversion assistance

17 under Federal, State, and local laws in locating and

18 applying for such assistance, including financial and

19 technical assistance.

20 ‘‘SEC. 603. CONSULTATION WITH OTHER PERSONS AND

21 AGENCIES.

22 ‘‘(a) CONSULTATION ON PROBLEMS RELATING TO

23 EMPLOYMENT.—The Secretary is authorized from time to

24 time to call together and confer with any persons, includ25 ing representatives of labor, management, agriculture, and
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1 government, who can assist in meeting the problems of

2 area and regional unemployment or underemployment.

3 ‘‘(b) CONSULTATION ON ADMINISTRATION OF ACT.—

4 The Secretary may make provisions for such consultation

5 with interested departments and agencies as the Secretary

6 may deem appropriate in the performance of the functions

7 vested in the Secretary by this Act.

8 ‘‘SEC. 604. ADMINISTRATION, OPERATION, AND MAINTE9 NANCE.

10 ‘‘No Federal assistance shall be approved under this

11 Act unless the Secretary is satisfied that the project for

12 which Federal assistance is granted will be properly and

13 efficiently administered, operated, and maintained.

14 ‘‘SEC. 605. AUTHORITY TO ESTABLISH INDEPENDENT AGEN15 CY IN EVENT DEPARTMENT OF COMMERCE IS

16 ABOLISHED.

17 ‘‘In the event that the Department of Commerce is

18 abolished by a law enacted after the effective date of the

19 Economic Development Partnership Act of 1995, the

20 President is authorized to establish an independent agency

21 to carry out the duties of the Secretary under this Act.

22 ‘‘SEC. 606. TREATMENT OF ECONOMIC DEVELOPMENT

23 EMPLOYEES.

24 ‘‘In considering applications for employment at Re25 gional Commissions or in the Office of Economic Develop-
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1 ment, preference shall be given to current Economic De2 velopment Administration employees.

3 ‘‘PART B—ABOLISHMENT OF ECONOMIC

4 DEVELOPMENT ADMINISTRATION

5 ‘‘SEC. 610. ABOLISHMENT.

6 ‘‘The Economic Development Administration of the

7 Department of Commerce is abolished.

8 ‘‘SEC. 611. CONCLUSION OF BUSINESS.

9 ‘‘The Secretary shall provide for the conclusion of any

10 outstanding affairs of the Economic Development Admin11 istration, including matters affecting the disposition of

12 personnel.

13 ‘‘SEC. 612. SAVINGS PROVISIONS.

14 ‘‘(a) EXISTING RIGHTS, DUTIES, AND OBLIGATIONS

15 NOT AFFECTED.—This part shall not be construed as af16 fecting the validity of any right, duty, or obligation of the

17 United States or any other person arising under or pursu18 ant to any contract, loan, or other instrument or agree19 ment which was in effect on the day before the effective

20 date of this part.

21 ‘‘(b) CONTINUATION OF SUITS.—No action or other

22 proceeding commenced by or against any officer or em23 ployee of the Economic Development Administration shall

24 abate by reason of the enactment of this part; except that
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1 the Secretary shall be substituted for such officer or em2 ployee as a party to any such action or proceeding.

3 ‘‘SEC. 613. AMENDMENT TO TITLE 5, U.S.C.

4 ‘‘Section 5316 of title 5, United States Code, is

5 amended by striking ‘Administrator for Economic Devel6 opment.’.

7 ‘‘TITLE VII—MISCELLANEOUS

8 ‘‘SEC. 701. POWERS OF SECRETARY.

9 ‘‘(a) IN GENERAL.—In performing the Secretary’s

10 duties under this Act, the Secretary is authorized to—

11 ‘‘(1) adopt, alter, and use a seal, which shall be

12 judicially noticed;

13 ‘‘(2) subject to the civil-service and classifica14 tion laws, select, employ, appoint, and fix the com15 pensation of such personnel as may be necessary to

16 carry out the provisions of this Act;

17 ‘‘(3) hold such hearings, sit and act at such

18 times and places, and take such testimony, as the

19 Secretary may deem advisable;

20 ‘‘(4) request directly from any executive depart21 ment, bureau, agency, board, commission, office,

22 independent establishment, or instrumentality infor23 mation, suggestions, estimates, and statistics needed

24 to carry out the purposes of this Act; and each de25 partment, bureau, agency, board, commission, office,
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1 establishment, or instrumentality is authorized to

2 furnish such information, suggestions, estimates,

3 and statistics directly to the Secretary;

4 ‘‘(5) under regulations prescribed by the Sec5 retary, assign or sell at public or private sale, or oth6 erwise dispose of for cash or credit, in the Sec7 retary’s discretion and upon such terms and condi8 tions and for such consideration as the Secretary de9 termines to be reasonable, any evidence of debt, con10 tract, claim, personal property, or security assigned

11 to or held by the Secretary in connection with assist12 ance extended under this Act, and collect or com13 promise all obligations assigned to or held by the

14 Secretary in connection with such assistance until

15 such time as such obligations may be referred to the

16 Attorney General for suit or collection;

17 ‘‘(6) deal with, complete, renovate, improve,

18 modernize, insure, rent, or sell for cash or credit,

19 upon such terms and conditions and for such consid20 eration as the Secretary determines to be reasonable,

21 any real or personal property conveyed to, or other22 wise acquired by the Secretary in connection with

23 assistance extended under this Act;

24 ‘‘(7) pursue to final collection, by way of com25 promise or other administrative action, prior to ref-
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1 erence to the Attorney General, all claims against

2 third parties assigned to the Secretary in connection

3 with assistance extended this Act;

4 ‘‘(8) acquire, in any lawful manner and in ac5 cordance with the requirements of the Federal Prop6 erty and Administrative Services Act of 1949, any

7 property (real, personal, or mixed, tangible or intan8 gible), whenever necessary or appropriate to the con9 duct of the activities authorized under this Act;

10 ‘‘(9) in addition to any powers, functions, privi11 leges, and immunities otherwise vested in the Sec12 retary, take any action, including the procurement of

13 the services of attorneys by contract, determined by

14 the Secretary to be necessary or desirable in making,

15 purchasing, servicing, compromising, modifying, liq16 uidating, or otherwise administratively dealing with

17 assets held in connection with financial assistance

18 extended under this Act;

19 ‘‘(10) employ experts and consultants or organi20 zations as authorized by section 3109 of title 5,

21 United States Code, compensate individuals so em22 ployed at rates not in excess of $100 per diem, in23 cluding travel time, and allow them, while away from

24 their homes or regular places of business, travel ex25 penses (including per diem in lieu of subsistence) as
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1 authorized by section 5703 of title 5, United States

2 Code, for persons in the Government service em3 ployed intermittently, while so employed, except that

4 contracts for such employment may be renewed an5 nually;

6 ‘‘(11) sue and be sued in any court of record

7 of a State having general jurisdiction or in any

8 United States district court, and jurisdiction is con9 ferred upon such district court to determine such

10 controversies without regard to the amount in con11 troversy; but no attachment, injunction, garnish12 ment, or other similar process, mesne or final, shall

13 be issued against the Secretary or the Secretary’s

14 property;

15 ‘‘(12) make discretionary grants, pursuant to

16 authorities otherwise available to a Regional Com17 mission under this Act and without regard to the re18 quirements of section 504, to implement significant

19 regional initiatives, to take advantage of special de20 velopment opportunities, or to respond to emergency

21 economic distress in the region from the funds with22 held from distribution to the Regional Commissions;

23 except that the aggregate amount of such discre24 tionary grants in any fiscal year may not exceed 10
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1 percent of the amounts appropriated under title VIII

2 for such fiscal year; and

3 ‘‘(13) establish such rules, regulations, and pro4 cedures as the Secretary considers appropriate in

5 carrying out the provisions of this Act.

6 ‘‘(b) DEFICIENCY JUDGMENTS.—The authority

7 under subsection (a)(7) to pursue claims shall include the

8 authority to obtain deficiency judgments or otherwise in

9 the case of mortgages assigned to the Secretary.

10 ‘‘(c) INAPPLICABILITY OF CERTAIN OTHER RE11 QUIREMENTS.—Section 3709 of the Revised Statutes of

12 the United States shall not apply to any contract of haz13 ard insurance or to any purchase or contract for services

14 or supplies on account of property obtained by the Sec15 retary as a result of assistance extended under this Act

16 if the premium for the insurance or the amount of the

17 insurance does not exceed $1,000.

18 ‘‘(d) POWERS OF CONVEYANCE AND EXECUTION.—

19 The power to convey and to execute, in the name of the

20 Secretary, deeds of conveyance, deeds of release, assign21 ments and satisfactions of mortgages, and any other writ22 ten instrument relating to real or personal property or any

23 interest therein acquired by the Secretary pursuant to the

24 provisions of this Act may be exercised by the Secretary,

25 or by any officer or agent appointed by the Secretary for
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1 such purpose, without the execution of any express delega2 tion of power or power of attorney.

3 ‘‘SEC. 702. ALLOCATION OF FUNDS.

4 ‘‘The Secretary shall establish a formula for the equi5 table allocation among the Regional Commissions of

6 amounts appropriated to carry out this Act.

7 ‘‘SEC. 703. PERFORMANCE MEASURES.

8 ‘‘The Secretary shall establish performance measures

9 for grants and other assistance provided under this Act.

10 Such performance measures shall be used to evaluate

11 project proposals and conduct evaluations of projects re12 ceiving such assistance.

13 ‘‘SEC. 704. MAINTENANCE OF STANDARDS.

14 ‘‘The Secretary shall continue to implement and en15 force the provisions of section 712 of this Act, as in effect

16 on the day before the effective date of the Economic Devel17 opment Partnership Act of 1995.

18 ‘‘SEC. 705. TRANSFER OF FUNCTIONS.

19 ‘‘The functions, powers, duties, and authorities and

20 the assets, funds, contracts, loans, liabilities, commit21 ments, authorizations, allocations, and records which are

22 vested in or authorized to be transferred to the Secretary

23 of the Treasury under section 29(b) of the Area Redevel24 opment Act, and all functions, powers, duties, and authori-
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1 ties under section 29(c) of such Act are hereby vested in

2 the Secretary.

3 ‘‘SEC. 706. DEFINITION OF STATE.

4 ‘‘In this Act, the terms ‘State’, ‘States’, and ‘United

5 States’ include the several States and each of the other

6 political entities included in a region established by section

7 105.

8 ‘‘SEC. 707. ANNUAL REPORT TO CONGRESS.

9 ‘‘The Secretary shall transmit a comprehensive and

10 detailed annual report to Congress of the Secretary’s and

11 each Regional Commission’s operations under this Act for

12 each fiscal year beginning with the fiscal year ending Sep13 tember 30, 1996. Such report shall be printed and shall

14 be transmitted to Congress not later than April 1 of the

15 year following the fiscal year with respect to which such

16 report is made.

17 ‘‘SEC. 708. USE OF OTHER FACILITIES.

18 ‘‘(a) DELEGATION OF FUNCTIONS TO OTHER FED19 ERAL DEPARTMENTS AND AGENCIES.—The Secretary

20 may delegate to the heads of other departments and agen21 cies of the Federal Government any of the Secretary’s

22 functions, powers, and duties under this Act as the Sec23 retary may deem appropriate, and to authorize the redele24 gation of such functions, powers, and duties by the heads

25 of such departments and agencies.
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1 ‘‘(b) DEPARTMENT AND AGENCY EXECUTION OF

2 DELEGATED AUTHORITY.—Departments and agencies of

3 the Federal Government shall exercise their powers, du4 ties, and functions in such manner as will assist in carry5 ing out the objectives of this Act.

6 ‘‘(c) TRANSFER BETWEEN DEPARTMENTS.—Funds

7 authorized to be appropriated under this Act may be

8 transferred between departments and agencies of the Gov9 ernment, if such funds are used for the purposes for which

10 they are specifically authorized and appropriated.

11 ‘‘(d) FUNDS TRANSFERRED FROM OTHER DEPART12 MENTS AND AGENCIES.—In order to carry out the objec13 tives of this Act, the Secretary may accept transfers of

14 funds from other departments and agencies of the Federal

15 Government if the funds are used for the purposes for

16 which (and in accordance with the terms under which) the

17 funds are specifically authorized and appropriated. Such

18 transferred funds shall remain available until expended,

19 and may be transferred to and merged with the appropria20 tions under the heading ‘salaries and expenses’ by the Sec21 retary to the extent necessary to administer the program.

22 ‘‘SEC. 709. PENALTIES.

23 ‘‘(a) FALSE STATEMENTS; SECURITY OVER24 VALUATION.—Whoever makes any statement knowing it

25 to be false, or whoever willfully overvalues any security,
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1 for the purpose of obtaining for such person or for any

2 applicant any financial assistance under this Act or any

3 extension of such assistance by renewal, deferment or ac4 tion, or otherwise, or the acceptance, release, or substi5 tution of security for such assistance, or for the purpose

6 of influencing in any way the action of the Secretary or

7 a Regional Commission or for the purpose of obtaining

8 money, property, or anything of value, under this Act,

9 shall be fined under title 18, United States Code, impris10 oned for not more than 5 years, or both.

11 ‘‘(b) EMBEZZLEMENT AND FRAUD-RELATED

12 CRIMES.—Whoever, being connected in any capacity with

13 the Secretary or a Regional Commission, in the adminis14 tration of this Act—

15 ‘‘(1) embezzles, abstracts, purloins, or willfully

16 misapplies any moneys, funds, securities, or other

17 things of value, whether belonging to such person or

18 pledged or otherwise entrusted to such person;

19 ‘‘(2) with intent to defraud the Secretary or a

20 Regional Commission or any other body politic or

21 corporate, or any individual, or to deceive any offi22 cer, auditor, or examiner, makes any false entry in

23 any book, report, or statement of or to the Secretary

24 or a Regional Commission, or without being duly au25 thorized draws any orders or issues, puts forth, or
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1 assigns any note, debenture, bond, or other obliga2 tion, or draft, bill of exchange, mortgage, judgment,

3 or decree thereof;

4 ‘‘(3) with intent to defraud, participates or

5 shares in or receives directly or indirectly any

6 money, profit, property, or benefit through any

7 transaction, loan, grant, commission, contract, or

8 any other act of the Secretary or a Regional Com9 mission; or

10 ‘‘(4) gives any unauthorized information con11 cerning any future action or plan of the Secretary

12 or a Regional Commission which might affect the

13 value of securities, or having such knowledge invests

14 or speculates, directly or indirectly, in the securities

15 or property of any company or corporation receiving

16 loans, grants, or other assistance from the Secretary

17 or a Regional Commission,

18 shall be fined under title 18, United States Code, impris19 oned for not more than 5 years, or both.

20 ‘‘SEC. 710. EMPLOYMENT OF EXPEDITERS AND ADMINIS21 TRATIVE EMPLOYEES.

22 ‘‘No financial assistance shall be extended by a Re23 gional Commission under this Act to any business enter24 prise unless the owners, partners, or officers of such busi25 ness enterprise—
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1 ‘‘(1) certify to the Regional Commission the

2 names of any attorneys, agents, and other persons

3 engaged by or on behalf of such business enterprise

4 for the purpose of expediting applications made to

5 the Regional Commission for assistance of any sort,

6 under this Act, and the fees paid or to be paid to

7 any such person; and

8 ‘‘(2) execute an agreement binding such busi9 ness enterprise, for a period of 2 years after such

10 assistance is rendered by the Regional Commission

11 to such business enterprise, to refrain from employ12 ing, tendering any office or employment to, or re13 taining for professional services, any person who, on

14 the date such assistance or any part thereof was

15 rendered, or within the 1-year period ending on such

16 date, shall have served as an officer, attorney, agent,

17 or employee, occupying a position or engaging in ac18 tivities which the Regional Commission determines

19 involves discretion with respect to the granting of

20 assistance under this Act.

21 ‘‘SEC. 711. PERSONAL FINANCIAL INTERESTS.

22 ‘‘(a) IN GENERAL.—Except as permitted by sub23 section (b), no State member or alternate and no officer

24 or employee of a Regional Commission shall participate

25 personally and substantially as member, alternate, officer,
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1 or employee, through decision, approval, disapproval, rec2 ommendation, the rendering of advice, investigation, or

3 otherwise, in any proceeding, application, request for a

4 ruling or other determination, contract, claim, con5 troversy, or other particular matter in which, to the indi6 vidual’s knowledge, the individual, the individual’s spouse,

7 minor child, partner, organization (other than a State or

8 political subdivision thereof) in which the individual is

9 serving as officer, director, trustee, partner, or employee,

10 or any person or organization with whom the individual

11 is serving as officer, director, trustee, partner, or em12 ployee, or any person or organization with whom the indi13 vidual is negotiating or has any arrangement concerning

14 prospective employment, has a financial interest. Any indi15 vidual who shall violate the provisions of this subsection

16 shall be fined under title 18, United States Code, impris17 oned for not more than 2 years, or both.

18 ‘‘(b) EXCEPTION.—Subsection (a) shall not apply if

19 the State member, alternate, officer, or employee first ad20 vises the Regional Commission of the nature and cir21 cumstances of the proceeding, application, request for a

22 ruling or other determination, contract, claim, con23 troversy, or other particular matter and makes full disclo24 sure of the financial interest and receives in advance a

25 written determination made by the Regional Commission
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1 that the interest is not so substantial as to be deemed like2 ly to affect the integrity of the services which the Regional

3 Commission may expect from such State member, alter4 nate, officer, or employee.

5 ‘‘(c) SALARIES.—No State member or alternate of a

6 Regional Commission shall receive any salary, or any con7 tribution to or supplementation of salary for the individ8 ual’s services on the Regional Commission from any

9 source other than the State of the individual. No individ10 ual detailed to serve the Regional Commission under au11 thority of section 104 shall receive any salary or any con12 tribution to or supplementation of salary for the individ13 ual’s services on the Regional Commission from any

14 source other than the State, local, or intergovernmental

15 department or agency from which he was detailed or from

16 the Regional Commission. Any individual who shall violate

17 the provisions of this subsection shall be fined under title

18 18, United States Code, imprisoned for not more than 1

19 year, or both.

20 ‘‘(d) NONAPPLICABILITY TO FEDERAL OFFICIALS.—

21 Notwithstanding any other provision of this section, the

22 Secretary (or the Secretary’s designee on a Regional Re23 gional Commission) and any Federal officers or employees

24 detailed to duty with a Regional Commission pursuant to

25 section 104 shall not be subject to such provisions but
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1 shall remain subject to sections 202 through 209 of title

2 18, United States Code.

3 ‘‘(e) AUTHORITY TO RESCIND CERTAIN AGREE4 MENTS.—A Regional Commission may, in the Regional

5 Commission’s discretion, declare void and rescind any

6 agreement to extend financial assistance under this Act

7 entered into by the Regional Commission in relation to

8 which the Regional Commission finds that there has been

9 a violation of subsection (a) or (c) of this section or any

10 of the provisions of sections 202 through 209 of title 18,

11 United States Code.

12 ‘‘SEC. 712. MAINTENANCE OF RECORDS OF APPROVED AP13 PLICATIONS FOR FINANCIAL ASSISTANCE;

14 PUBLIC INSPECTION.

15 ‘‘(a) MAINTENANCE OF RECORD REQUIRED.—The

16 Secretary shall maintain as a permanent part of the

17 records of the Department of Commerce a list of applica18 tions approved for financial assistance under this Act,

19 which shall be kept available for public inspection during

20 the regular business hours of the Department of Com21 merce.

22 ‘‘(b) POSTING TO LIST.—The following information

23 shall be posted in such list as soon as each application

24 is approved:
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1 ‘‘(1) The name of the applicant and, in the case

2 of corporate applications, the names of the officers

3 and directors thereof.

4 ‘‘(2) The amount and duration of the financial

5 assistance for which application is made.

6 ‘‘(3) The purposes for which the proceeds of the

7 financial assistance are to be used.

8 ‘‘SEC. 713. RECORDS AND AUDIT.

9 ‘‘(a) RECORDKEEPING AND DISCLOSURE REQUIRE10 MENTS.—Each recipient of assistance under this Act shall

11 keep such records as the Secretary shall prescribe, includ12 ing records which fully disclose the amount and the dis13 position by such recipient of the proceeds of such assist14 ance, the total cost of the project or undertaking in con15 nection with which such assistance is given or used, and

16 the amount and nature of that portion of the cost of the

17 project or undertaking supplied by other sources, and such

18 other records as will facilitate an effective audit.

19 ‘‘(b) ACCESS TO BOOKS FOR EXAMINATION AND

20 AUDIT.—The Secretary and the Comptroller General of

21 the United States, or any of their duly authorized rep22 resentatives, shall have access for the purpose of audit and

23 examination to any books, documents, papers, and records

24 of the recipient that are pertinent to assistance received

25 under this Act.
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1 ‘‘SEC. 714. PROHIBITION AGAINST A STATUTORY CON2 STRUCTION WHICH MIGHT CAUSE DIMINU3 TION IN OTHER FEDERAL ASSISTANCE.

4 ‘‘All financial and technical assistance authorized

5 under this Act shall be in addition to any Federal assist6 ance previously authorized, and no provision of this Act

7 shall be construed as authorizing or permitting any reduc8 tion or diminution in the proportional amount of Federal

9 assistance to which any State or other entity eligible under

10 this Act would otherwise be entitled under the provisions

11 of any other Act.

12 ‘‘SEC. 715. ACCEPTANCE OF APPLICANTS’ CERTIFICATIONS.

13 ‘‘A Regional Commission may accept, when deemed

14 appropriate, the applicants’ certifications to meet the re15 quirements of this Act.

16 ‘‘TITLE VIII—FUNDING

17 ‘‘SEC. 801. AUTHORIZATION OF APPROPRIATIONS

18 ‘‘There is authorized to be appropriated to carry out

19 this Act $340,000,000 per fiscal year for each of fiscal

20 years 1996, 1997, 1998, 1999, and 2000. Such sums shall

21 remain available until expended.

22 ‘‘SEC. 802. DEFENSE CONVERSION ACTIVITIES.

23 ‘‘In addition to the appropriations authorized by sec24 tion 801, there are authorized to be appropriated to carry

25 out this Act such sums as may be necessary to provide

26 assistance for defense conversion activities. Such funding
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1 may include pilot projects for privatization and economic

2 development activities for closed or realigned military in3 stallations. Such sums shall remain available until ex4 pended.’’.

5 TITLE II—APPALACHIAN

6 REGIONAL DEVELOPMENT

7 SEC. 201. AMENDMENT OF APPALACHIAN REGIONAL DE8 VELOPMENT ACT OF 1965.

9 Except as otherwise expressly provided, whenever in

10 this Act an amendment or repeal is expressed in terms

11 of an amendment to, or repeal of, a section or other provi12 sion, the reference shall be considered to be made to a

13 section or other provision of the Appalachian Regional De14 velopment Act of 1965 (40 U.S.C. App. 1 et seq.).

15 SEC. 202. FINDINGS AND PURPOSES.

16 Section 2 (40 U.S.C. App. 2) is amended by adding

17 at the end the following:

18 ‘‘(c) 1995 FINDINGS AND PURPOSES.—The Congress

19 further finds and declares that, while substantial progress

20 has been made in fulfilling many of the objectives of this

21 Act, rapidly changing national and global economies over

22 the past decade have created new problems and challenges

23 for rural areas throughout the Nation and especially for

24 the Appalachian region. It is, therefore, also the purpose

25 of this Act to assist the region in providing the infrastruc-
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1 ture necessary for economic and human resource develop2 ment, in developing its industry, in building entrepreneur3 ial communities, in generating a diversified regional econ4 omy, and in making its industrial and commercial re5 sources more competitive in national and world markets.

6 It is further the purpose of this Act to provide a frame7 work for coordinating Federal, State, and local initiatives

8 to respond to the economic competitive challenge through

9 improving the skills of the region’s workforce, adapting

10 and applying new technologies for the region’s businesses,

11 and improving the access of the region’s businesses to the

12 technical and financial resources necessary to their devel13 opment. Finally, it is the purpose of this Act to address

14 the needs of severely and persistently distressed and un15 derdeveloped areas of the region so as to provide a fairer

16 opportunity for the people of the region to share the qual17 ity of life generally enjoyed by citizens across this Na18 tion.’’.

19 SEC. 203. MEETINGS.

20 (a) ANNUAL MEETING REQUIREMENT.—Section

21 101(a) (40 U.S.C. App. 101(a)) is amended by adding at

22 the end the following: ‘‘The Commission shall conduct at

23 least one meeting each year with the Federal Cochairman

24 and at least a majority of the State members present.’’.
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1 (b) ADDITIONAL MEETINGS BY ELECTRONIC

2 MEANS.—Section 101 (40 U.S.C. App. 101) is amended—

3 (1) in subsection (a), as amended by subsection

4 (a) of this section, by adding at the end the follow5 ing: ‘‘The Commission may conduct such additional

6 meetings by electronic means as the Commission

7 considers advisable, including meetings to decide

8 matters requiring an affirmative vote.’’; and

9 (2) in subsection (c) by striking ‘‘to be present’’

10 at the end of the fourth sentence.

11 (c) DECISIONS REQUIRING A QUORUM.—Section

12 101(b) (40 U.S.C. App. 101(b)) is amended by striking

13 the third sentence and inserting the following: ‘‘No deci14 sion involving Commission policy, approval of State, re15 gional, or subregional development plans or implementing

16 investment programs, any modification or revision of the

17 Appalachian Regional Commission Code, any allocation of

18 funds among the State, or any designation of a distressed

19 county or an economically competitive county may be

20 made without a quorum of State members.’’.

21 SEC. 204. AUTHORIZATIONS FOR ADMINISTRATIVE EX22 PENSES.

23 Section 105(b) (40 U.S.C. App. 105(b)) is amended

24 to read as follows:

25 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—
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1 ‘‘(1) IN GENERAL.—There is authorized to be

2 appropriated to carry out this section $3,645,000

3 per fiscal year for each of fiscal years 1996 through

4 2000. Such sums shall remain available until ex5 pended.

6 ‘‘(2) EXPENSES OF FEDERAL COCHAIRMAN.—

7 Of the amounts appropriated pursuant to paragraph

8 (1), not to exceed $1,245,000 per fiscal year for

9 each of fiscal years 1996 through 2000 shall be

10 available for expenses of the Federal Cochairman,

11 the Federal Cochairman’s alternate, and the Federal

12 Cochairman’s staff.’’.

13 SEC. 205. ADMINISTRATIVE POWERS OF COMMISSION.

14 (a) AUTHORITY TO LEASE.—Section 106(7) (40

15 U.S.C. App. 106(7)) is amended—

16 (1) by inserting ‘‘subject to the requirements of

17 the Federal Property and Administrative Services

18 Act of 1949,’’ after ‘‘(7)’’;

19 (2) by striking ‘‘notwithstanding any other pro20 vision of law,’’; and

21 (3) by striking ‘‘1982’’ and inserting ‘‘2000’’.

22 (b) AUTHORITY TO MAINTAIN TEMPORARY OF23 FICE.—Section 106(8) (40 U.S.C. App. 106(8)) is amend24 ed by inserting ‘‘subject to the requirements of the Fed-
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1 eral Property and Administrative Services Act of 1949,’’

2 after ‘‘(8)’’.

3 SEC. 206. HIGHWAY SYSTEM.

4 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

5 201(g) (40 U.S.C. App. 201(g)) is amended to read as

6 follows:

7 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

8 is authorized to be appropriated to carry out this section

9 $90,000,000 per fiscal year for each of fiscal years 1996

10 through 2000. Such sums shall remain available until ex11 pended.’’.

12 (b) COST SHARING.—

13 (1) IN GENERAL.—Section 201(h)(1) (40

14 U.S.C. App. 201(h)(1)) is amended by striking ‘‘70

15 per centum’’ and inserting ‘‘80 percent’’.

16 (2) APPLICABILITY.—The amendment made by

17 paragraph (1) shall apply to projects approved after

18 March 31, 1979.

19 SEC. 207. COST SHARING OF DEMONSTRATION HEALTH

20 PROJECTS.

21 (a) OPERATION COSTS.—Section 202(c) (40 U.S.C.

22 App. 202(c)) is amended in the first sentence by striking

23 ‘‘100 per centum of the costs thereof’’ and all that follows

24 through the period at the end of the second sentence and

25 inserting ‘‘50 percent of the costs thereof (or 80 percent
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1 of such costs in the case of a project to be carried out

2 in a county for which a distressed county designation is

3 in effect under section 226).’’.

4 (b) COST SHARING.—Section 202 (40 U.S.C. App.

5 202) is amended by adding at the end the following:

6 ‘‘(f) MAXIMUM COMMISSION CONTRIBUTION AFTER

7 SEPTEMBER 30, 1995.—After September 30, 1995, not

8 more than 50 percent of any project cost eligible for finan9 cial assistance under this section may be provided from

10 funds appropriated to carry out this Act; except that such

11 maximum Commission contribution may be increased to

12 80 percent, or to the percentage of the maximum Federal

13 contribution authorized by this section, whichever is less,

14 for a project to be carried out in a county for which a

15 distressed county designation is in effect under section

16 226.’’.

17 SEC. 208. REPEAL OF LAND STABILIZATION, CONSERVA18 TION, AND EROSION CONTROL PROGRAM.

19 Section 203 (40 U.S.C. App. 203) is repealed.

20 SEC. 209. REPEAL OF TIMBER DEVELOPMENT PROGRAM.

21 Section 204 (40 U.S.C. App. 204) is repealed.

22 SEC. 210. REPEAL OF MINING AREA RESTORATION PRO23 GRAM.

24 Section 205 (40 U.S.C. App. 205) is repealed.
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1 SEC. 211. REPEAL OF WATER RESOURCE SURVEY.

2 Section 206 (40 U.S.C. App. 206) is repealed.

3 SEC. 212. COST SHARING OF HOUSING PROJECTS.

4 (a) LOANS.—Section 207(b) (40 U.S.C. App. 207(b))

5 is amended by striking ‘‘80 per centum’’ and inserting ‘‘50

6 percent (or 80 percent in the case of a project to be carried

7 out in a county for which a distressed county designation

8 is in effect under section 226)’’.

9 (b) GRANTS.—Section 207(c)(1) (40 U.S.C.

10 207(c)(1)) is amended by striking ‘‘80 per centum’’ and

11 inserting ‘‘50 percent (or 80 percent in the case of a

12 project to be carried out in a county for which a distressed

13 county designation is in effect under section 226)’’.

14 SEC. 213. REPEAL OF AIRPORT SAFETY IMPROVEMENTS

15 PROGRAM.

16 Section 208 (40 U.S.C. App. 208) is repealed.

17 SEC. 214. COST SHARING OF VOCATIONAL EDUCATION AND

18 EDUCATION DEMONSTRATION PROJECTS.

19 (a) OPERATION COSTS.—Section 211(b)(3) (40

20 U.S.C. App. 211(b)(3)) is amended in the first sentence

21 by striking ‘‘100 per centum of the costs thereof’’ and all

22 that follows through the period at the end of the second

23 sentence and inserting ‘‘50 percent of the costs thereof

24 (or 80 percent of such costs in the case of a project to

25 be carried out in a county for which a distressed county

26 designation is in effect under section 226).’’
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1 (b) COST SHARING.—Section 211 (40 U.S.C. App.

2 211) is amended by adding at the end the following:

3 ‘‘(c) MAXIMUM COMMISSION CONTRIBUTION AFTER

4 SEPTEMBER 30, 1995.—After September 30, 1995, not

5 more than 50 percent of any project cost eligible for finan6 cial assistance under this section may be provided from

7 funds appropriated to carry out this Act; except that such

8 maximum Commission contribution may be increased to

9 80 percent, or to the percentage of the maximum Federal

10 contribution authorized by this section, whichever is less,

11 for a project to be carried out in a county for which a

12 distressed county designation is in effect under section

13 226.’’.

14 SEC. 215. SEWAGE TREATMENT WORKS PROGRAM.

15 Section 212 (40 U.S.C. App. 212) is repealed.

16 SEC. 216. REPEAL OF AMENDMENTS TO HOUSING ACT OF

17 1954.

18 Section 213 (40 U.S.C. App. 213) is repealed.

19 SEC. 217. SUPPLEMENTS TO FEDERAL GRANT-IN-AID PRO20 GRAMS.

21 (a) AVAILABILITY OF AMOUNTS.—The first sentence

22 of section 214(a) (40 U.S.C. App. 214(a)) is amended by

23 striking ‘‘the President is authorized to provide funds to

24 the Federal Cochairman to be used’’ and inserting ‘‘the
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1 Federal Cochairman may use amounts made available to

2 carry out this section’’.

3 (b) COST SHARING.—Section 214(b) (40 U.S.C. App.

4 214(b)) is amended—

5 (1) by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’;

6 and

7 (2) by adding at the end the following:

8 ‘‘(2) After September 30, 1995, not more than 50

9 percent of any project cost eligible for financial assistance

10 under this section may be provided from funds appro11 priated to carry out this Act; except that such maximum

12 Commission contribution may be increased to 80 percent

13 for a project to be carried out in a county for which a

14 distressed county designation is in effect under section

15 226.’’.

16 (c) FEDERAL GRANT-IN-AID PROGRAMS DEFINED.—

17 The first sentence of section 214(c) (40 U.S.C. App.

18 214(c)) is amended by striking ‘‘on or before December

19 31, 1980,’’.

20 (d) LIMITATION ON COVERED ROAD PROJECTS.—

21 The second sentence of section 214(c) is amended by in22 serting ‘‘authorized by title 23, United States Code’’ after

23 ‘‘road construction’’.
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1 SEC. 218. PROGRAM DEVELOPMENT CRITERIA.

2 (a) CONSIDERATIONS.—Section 224(a) (40 U.S.C.

3 App. 224(a)) is amended by inserting before the semicolon

4 at the end of paragraph (1) the following: ‘‘or in a severely

5 and persistently distressed and underdeveloped county or

6 area’’.

7 (b) OUTCOME MEASUREMENTS.—Section 224(a) is

8 further amended—

9 (1) by striking the period at the end of para10 graph (5) and inserting ‘‘; and’’; and

11 (2) by adding at the end the following:

12 ‘‘(6) the extent to which the project design pro13 vides for detailed outcome measurements by which

14 grant expenditures may be justified.’’.

15 (c) REMOVAL OF LIMITATIONS.—Section 224(b) (40

16 U.S.C. App. 224(b)) is amended to read as follows:

17 ‘‘(b) LIMITATION.—No financial assistance made

18 available under this Act may be used to assist establish19 ments relocating from one area to another.’’.

20 SEC. 219. DISTRESSED AND ECONOMICALLY COMPETITIVE

21 COUNTIES.

22 Part C of title II (40 U.S.C. App. 221–225) is

23 amended by adding at the end the following:
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1 ‘‘SEC. 226. DISTRESSED AND ECONOMICALLY COMPETITIVE

2 COUNTIES.

3 ‘‘(a) DESIGNATIONS.—Not later than 90 days after

4 the effective date of the Economic Development Partner5 ship Act of 1995, and annually thereafter, the Commis6 sion, in accordance with such criteria as the Commission

7 may establish, shall—

8 ‘‘(1) designate as ‘distressed counties’ those

9 counties in the region that are the most severely and

10 persistently distressed and underdeveloped; and

11 ‘‘(2) designate as ‘economically competitive

12 counties’ those counties in the region which have at13 tained substantial economic parity with the rest of

14 the Nation.

15 ‘‘(b) PERIOD OF EFFECTIVENESS.—In making an16 nual designations under subsection (a), the Commission

17 may discontinue an existing designation at the discretion

18 of the Commission; except that any designation of a dis19 tressed county shall remain in effect for the 3-year period

20 beginning on the date of the designation.

21 ‘‘(c) FUNDING PROHIBITION FOR PROJECTS LO22 CATED IN ECONOMICALLY COMPETITIVE COUNTIES.—

23 ‘‘(1) IN GENERAL.—Except as provided by

24 paragraph (2), no funds may be provided under this

25 Act for a project located in a county for which an
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1 economically competitive county designation is in ef2 fect under this section.

3 ‘‘(2) EXCEPTIONS.—The prohibition established

4 by paragraph (1) shall not apply to—

5 ‘‘(A) projects on the Appalachian develop6 ment highway system authorized by section

7 201;

8 ‘‘(B) local development district administra9 tive projects authorized by section 302(a)(1); or

10 ‘‘(C) discretionary grants authorized by

11 section 302(a).’’.

12 SEC. 220. GRANTS FOR ADMINISTRATIVE EXPENSES AND

13 COMMISSION PROJECTS.

14 (a) AVAILABILITY OF AMOUNTS.—Section 302(a) (40

15 U.S.C. App. 302(a)) is amended—

16 (1) by striking ‘‘The President’’ and inserting

17 ‘‘The Commission’’; and

18 (2) in paragraphs (1), (2), and (3) by striking

19 ‘‘to the Commission’’ each place it appears.

20 (b) COST SHARING.—Section 302(a) is further

21 amended—

22 (1) in paragraph (1) by striking ‘‘75 per cen23 tum’’ and inserting ‘‘50 percent’’; and

24 (2) by adding at the end the following: ‘‘After

25 September 30, 1995, not more than 50 percent of
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1 the cost of any activity eligible for financial assist2 ance under this section may be provided from funds

3 appropriated to carry out this Act (or 80 percent of

4 such costs in the case of a project to be carried out

5 in a county for which a distressed county designa6 tion is in effect under section 226); except that dis7 cretionary grants by the Commission to implement

8 significant regional initiatives, to take advantage of

9 special development opportunities, or to respond to

10 emergency economic distress in the region may be

11 made without regard to such percentage limitations.

12 The aggregate amount of discretionary grants re13 ferred to in the preceding sentence in any fiscal year

14 shall not exceed 10 percent of the amounts appro15 priated under section 401 for such fiscal year.’’.

16 (c) REPEALS.—Section 302 (40 U.S.C. App. 302) is

17 amended—

18 (1) by striking paragraphs (3) and (4) of sub19 section (b);

20 (2) by striking subsection (d); and

21 (3) by striking subsection (e).

22 SEC. 221. AUTHORIZATION OF APPROPRIATIONS FOR GEN23 ERAL PROGRAM.

24 Section 401 (40 U.S.C. App. 401) is amended to read

25 as follows:
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1 ‘‘SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘In addition to the appropriations authorized by sec3 tion 105 for administrative expenses and by section 201(g)

4 for the Appalachian development highway system and

5 local access roads, there is authorized to be appropriated

6 to the Commission to carry out this Act $88,355,000 per

7 fiscal year for each of fiscal years 1996 through 2000.

8 Such sums shall remain available until expended.’’.

9 SEC. 222. EXTENSION OF TERMINATION DATE.

10 Section 405 (40 U.S.C. App. 405) is amended by

11 striking ‘‘1982’’ and inserting ‘‘2000’’.

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