II

Calendar No. 303

107TH CONGRESS

1ST SESSION S. 1206

[Report No. 107–132]

To reauthorize the Appalachian Regional Development Act of 1965, and

for other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 19, 2001

Mr. VOINOVICH (for himself, Mr. INHOFE, Mr. FRIST, Mr. MCCONNELL, Mr.

WARNER, Mr. BUNNING, Mr. COCHRAN, Mr. MILLER, and Mr. CLELAND)

introduced the following bill; which was read twice and referred to the

Committee on Environment and Public Works

DECEMBER 20 (legislative day, DECEMBER 18), 2001

Reported by Mr. JEFFORDS, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To reauthorize the Appalachian Regional Development Act

of 1965, and for other purposes.

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.

4 This Act may be cited as the ‘‘Appalachian Regional

5 Development Act Amendments of 2001’’.
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1 SEC. 2. PURPOSES.

2 The purposes of this Act are—

3 (1) to reauthorize the Appalachian Regional

4 Development Act of 1965 (40 U.S.C. App.); and

5 (2) to ensure that the people and businesses of

6 the Appalachian region have the knowledge, skills,

7 and access to telecommunication and technology

8 services necessary to compete in the knowledge9 based economy of the United States.

10 SEC. 3. FUNCTIONS OF THE COMMISSION.

11 Section 102(a) of the Appalachian Regional Develop12 ment Act of 1965 (40 U.S.C. App.) is amended—

13 (1) in paragraph (5), by inserting ‘‘, and sup14 port,’’ after ‘‘formation of ’’;

15 (2) in paragraph (7), by striking ‘‘and’’ at the

16 end;

17 (3) in paragraph (8), by striking the period at

18 the end and inserting ‘‘; and’’; and

19 (4) by adding at the end the following:

20 ‘‘(9) seek to coordinate the economic develop21 ment activities of, and the use of economic develop22 ment resources by, Federal agencies in the region.’’.

23 SEC. 4. INTERAGENCY COORDINATING COUNCIL ON APPA24 LACHIA.

25 Section 104 of the Appalachian Regional Develop26 ment Act of 1965 (40 U.S.C. App.) is amended—
3

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

2 ‘‘(a) IN GENERAL.—The President’’; and

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

4 ‘‘(b) INTERAGENCY COORDINATING COUNCIL ON AP5 PALACHIA.—

6 ‘‘(1) ESTABLISHMENT.—In carrying out sub7 section (a), the President shall establish an inter8 agency council to be known as the ‘Interagency Co9 ordinating Council on Appalachia’.

10 ‘‘(2) MEMBERSHIP.—The Council shall be com11 posed of—

12 ‘‘(A) the Federal Cochairman, who shall

13 serve as Chairperson of the Council; and

14 ‘‘(B) representatives of Federal agencies

15 that carry out economic development programs

16 in the region.’’.

17 SEC. 5. TELECOMMUNICATIONS AND TECHNOLOGY INITIA18 TIVE.

19 Title II of the Appalachian Regional Development

20 Act of 1965 (40 U.S.C. App.) is amended by inserting

21 after section 202 the following:

22 ‘‘SEC. 203. TELECOMMUNICATIONS AND TECHNOLOGY INI23 TIATIVE.

24 ‘‘(a) IN GENERAL.—The Commission may provide

25 technical assistance, make grants, enter into contracts, or
4

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1 otherwise provide funds to persons or entities in the region

2 for projects—

3 ‘‘(1) to increase affordable access to advanced

4 telecommunications, entrepreneurship, and manage5 ment technologies or applications in the region;

6 ‘‘(2) to provide education and training in the

7 use of telecommunications and technology;

8 ‘‘(3) to develop programs to increase the readi9 ness of industry groups and businesses in the region

10 to engage in electronic commerce; or

11 ‘‘(4) to support entrepreneurial opportunities

12 for businesses in the information technology sector.

13 ‘‘(b) SOURCE OF FUNDING.—

14 ‘‘(1) IN GENERAL.—Assistance under this sec15 tion may be provided—

16 ‘‘(A) exclusively from amounts made avail17 able to carry out this section; or

18 ‘‘(B) from amounts made available to

19 carry out this section in combination with

20 amounts made available under any other Fed21 eral program or from any other source.

22 ‘‘(2) FEDERAL SHARE REQUIREMENTS SPECI23 FIED IN OTHER LAWS.—Notwithstanding any provi24 sion of law limiting the Federal share under any

25 other Federal program, amounts made available to
5

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1 carry out this section may be used to increase that

2 Federal share, as the Commission determines to be

3 appropriate.

4 ‘‘(c) COST SHARING FOR GRANTS.—Not more than

5 50 percent (or 80 percent in the case of a project to be

6 carried out in a county for which a distressed county des7 ignation is in effect under section 226) of the costs of any

8 activity eligible for a grant under this section may be pro9 vided from funds appropriated to carry out this section.’’.

10 SEC. 6. PROGRAM DEVELOPMENT CRITERIA.

11 (a) ELIMINATION OF GROWTH CENTER CRITERIA.—

12 Section 224(a)(1) of the Appalachian Regional Develop13 ment Act of 1965 (40 U.S.C. App.) is amended by striking

14 ‘‘in an area determined by the State have a significant

15 potential for growth or’’.

16 (b) ASSISTANCE TO DISTRESSED COUNTIES AND

17 AREAS.—Section 224 of the Appalachian Regional Devel18 opment Act of 1965 (40 U.S.C. App.) is amended by add19 ing at the end the following:

20 ‘‘(d) ASSISTANCE TO DISTRESSED COUNTIES AND

21 AREAS.—For each fiscal year, not less than 50 percent

22 of the amount of grant expenditures approved by the Com23 mission shall support activities or projects that benefit se24 verely and persistently distressed counties and areas.’’.
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1 SEC. 7. GRANTS FOR ADMINISTRATIVE EXPENSES OF

2 LOCAL DEVELOPMENT DISTRICTS.

3 Section 302(a)(1)(A)(i) of the Appalachian Regional

4 Development Act of 1965 (40 U.S.C. App.) is amended

5 by inserting ‘‘(or, at the discretion of the Commission, 75

6 percent of such expenses in the case of a local development

7 district that has a charter or authority that includes the

8 economic development of a county or part of a county for

9 which a distressed county designation is in effect under

10 section 226)’’ after ‘‘such expenses’’.

11 SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

12 Section 401 of the Appalachian Regional Develop13 ment Act of 1965 (40 U.S.C. App.) is amended to read

14 as follows:

15 ‘‘SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

16 ‘‘(a) IN GENERAL.—In addition to amounts author17 ized by section 201 and other amounts made available for

18 the Appalachian development highway system program,

19 there are authorized to be appropriated to the Commission

20 to carry out this Act—

21 ‘‘(1) $83,000,000 for fiscal year 2002;

22 ‘‘(2) $86,000,000 for fiscal year 2003;

23 ‘‘(3) $89,000,000 for fiscal year 2004;

24 ‘‘(4) $92,000,000 for fiscal year 2005; and

25 ‘‘(5) $95,000,000 for fiscal year 2006.
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1 ‘‘(b) TELECOMMUNICATIONS AND TECHNOLOGY INI2 TIATIVE.—Of the amounts made available under sub3 section (a), $10,000,000 for each fiscal year shall be made

4 available to carry out section 203.

5 ‘‘(c) AVAILABILITY.—Sums made available under

6 subsection (a) shall remain available until expended.’’.

7 SEC. 9. TERMINATION.

8 Section 405 of the Appalachian Regional Develop9 ment Act of 1965 (40 U.S.C. App.) is amended by striking

10 ‘‘2001’’ and inserting ‘‘2006’’.

11 SEC. 10. TECHNICAL AND CONFORMING AMENDMENTS.

12 (a) Section 101(b) of the Appalachian Regional De13 velopment Act of 1965 (40 U.S.C. App.) is amended in

14 the third sentence by striking ‘‘implementing investment

15 program’’ and inserting ‘‘strategy statement’’.

16 (b) Section 106(7) of the Appalachian Regional De17 velopment Act of 1965 (40 U.S.C. App.) is amended by

18 striking ‘‘expiring no later than September 30, 2001’’.

19 (c) Sections 202, 214, and 302(a)(1)(C) of the Appa20 lachian Regional Development Act of 1965 (40 U.S.C.

21 App.) are amended by striking ‘‘grant-in-aid programs’’

22 each place it appears and inserting ‘‘grant programs’’.

23 (d) Section 202(a) of the Appalachian Regional De24 velopment Act of 1965 (40 U.S.C. App.) is amended in

25 the second sentence by striking ‘‘title VI of the Public
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1 Health Service Act (42 U.S.C. 291–291o), the Mental Re2 tardation Facilities and Community Mental Health Cen3 ters Construction Act of 1963 (77 Stat. 282),’’ and insert4 ing ‘‘title VI of the Public Health Service Act (42 U.S.C.

5 291 et seq.), the Developmental Disabilities Assistance

6 and Bill of Rights Act of 2000 (42 U.S.C. 15001 et

7 seq.),’’.

8 (e) Section 207(a) of the Appalachian Regional De9 velopment Act of 1965 (40 U.S.C. App.) is amended by

10 striking ‘‘section 221 of the National Housing Act, section

11 8 of the United States Housing Act of 1937, section 515

12 of the Housing Act of 1949,’’ and inserting ‘‘section 221

13 of the National Housing Act (12 U.S.C. 1715l), section

14 8 of the United States Housing Act of 1937 (42 U.S.C.

15 1437f), section 515 of the Housing Act of 1949 (42

16 U.S.C. 1485),’’.

17 (f) Section 214 of the Appalachian Regional Develop18 ment Act of 1965 (40 U.S.C. App.) is amended—

19 (1) in the section heading, by striking ‘‘GRANT20 IN-AID’’ and inserting ‘‘GRANT’’;

21 (2) in subsection (a)—

22 (A) by striking ‘‘grant-in-aid Act’’ each

23 place it appears and inserting ‘‘Act’’;

24 (B) in the first sentence, by striking

25 ‘‘grant-in-aid Acts’’ and inserting ‘‘Acts’’;
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1 (C) by striking ‘‘grant-in-aid program’’

2 each place it appears and inserting ‘‘grant pro3 gram’’; and

4 (D) by striking the third sentence;

5 (3) by striking subsection (c) and inserting the

6 following:

7 ‘‘(c) DEFINITION OF FEDERAL GRANT PROGRAM.—

8 ‘‘(1) IN GENERAL.—In this section, the term

9 ‘Federal grant program’ means any Federal grant

10 program authorized by this Act or any other Act

11 that provides assistance for—

12 ‘‘(A) the acquisition or development of

13 land;

14 ‘‘(B) the construction or equipment of fa15 cilities; or

16 ‘‘(C) any other community or economic de17 velopment or economic adjustment activity.

18 ‘‘(2) INCLUSIONS.—In this section, the term

19 ‘Federal grant program’ includes a Federal grant

20 program such as a Federal grant program author21 ized by—

22 ‘‘(A) the Consolidated Farm and Rural

23 Development Act (7 U.S.C. 1921 et seq.);

24 ‘‘(B) the Land and Water Conservation

25 Fund Act of 1965 (16 U.S.C. 460l–4 et seq.);
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1 ‘‘(C) the Watershed Protection and Flood

2 Prevention Act (16 U.S.C. 1001 et seq.);

3 ‘‘(D) the Carl D. Perkins Vocational and

4 Technical Education Act of 1998 (20 U.S.C.

5 2301 et seq.);

6 ‘‘(E) the Federal Water Pollution Control

7 Act (33 U.S.C. 1251 et seq.);

8 ‘‘(F) title VI of the Public Health Service

9 Act (42 U.S.C. 291 et seq.);

10 ‘‘(G) sections 201 and 209 of the Public

11 Works and Economic Development Act of 1965

12 (42 U.S.C. 3141, 3149);

13 ‘‘(H) title I of the Housing and Commu14 nity Development Act of 1974 (42 U.S.C. 5301

15 et seq.); or

16 ‘‘(I) part IV of title III of the Communica17 tions Act of 1934 (47 U.S.C. 390 et seq.).

18 ‘‘(3) EXCLUSIONS.—In this section, the term

19 ‘Federal grant program’ does not include—

20 ‘‘(A) the program for construction of the

21 Appalachian development highway system au22 thorized by section 201;

23 ‘‘(B) any program relating to highway or

24 road construction authorized by title 23, United

25 States Code; or
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1 ‘‘(C) any other program under this Act or

2 any other Act to the extent that a form of fi3 nancial assistance other than a grant is author4 ized.’’; and

5 (4) by striking subsection (d).

6 (g) Section 224(a)(2) of the Appalachian Regional

7 Development Act of 1965 (40 U.S.C. App.) is amended

8 by striking ‘‘relative per capita income’’ and inserting ‘‘per

9 capita market income’’.

10 (h) Section 225 of the Appalachian Regional Develop11 ment Act of 1965 (40 U.S.C. App.)—

12 (1) in subsection (a)(3), by striking ‘‘develop13 ment program’’ and inserting ‘‘development strate14 gies’’; and

15 (2) in subsection (c)(2), by striking ‘‘develop16 ment programs’’ and inserting ‘‘development strate17 gies’’.

18 (i) Section 303 of the Appalachian Regional Develop19 ment Act of 1965 (40 U.S.C. App.) is amended—

20 (1) in the section heading, by striking ‘‘INVEST21 MENT PROGRAMS’’ and inserting ‘‘STRATEGY STATE22 MENTS’’;

23 (2) in the first sentence, by striking ‘‘imple24 menting investments programs’’ and inserting

25 ‘‘strategy statements’’; and
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1 (3) by striking ‘‘implementing investment pro2 gram’’ each place it appears and inserting ‘‘strategy

3 statement’’.

4 (j) Section 403 of the Appalachian Regional Develop5 ment Act of 1965 (40 U.S.C. App.) is amended—

6 (1) in the next-to-last undesignated paragraph,

7 by striking ‘‘Committee on Public Works and Trans8 portation’’ and inserting ‘‘Committee on Transpor9 tation and Infrastructure’’; and

10 (2) by striking the last undesignated paragraph.

11 SECTION 1. SHORT TITLE.

12 This Act may be cited as the ‘‘Appalachian Regional

13 Development Act Amendments of 2001’’.

14 SEC. 2. PURPOSES.

15 (a) THIS ACT.—The purposes of this Act are—

16 (1) to reauthorize the Appalachian Regional De17 velopment Act of 1965 (40 U.S.C. App.); and

18 (2) to ensure that the people and businesses of

19 the Appalachian region have the knowledge, skills,

20 and access to telecommunication and technology serv21 ices necessary to compete in the knowledge-based econ22 omy of the United States.

23 (b) APPALACHIAN REGIONAL DEVELOPMENT ACT OF

24 1965.—Section 2 of the Appalachian Regional Development

25 Act of 1965 (40 U.S.C. App.) is amended—
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1 (1) in subsection (b), by inserting after the third

2 sentence the following: ‘‘Consistent with the goal de3 scribed in the preceding sentence, the Appalachian re4 gion should be able to take advantage of eco-industrial

5 development, which promotes both employment and

6 economic growth and the preservation of natural re7 sources.’’; and

8 (2) in subsection (c)(2)(B)(ii), by inserting ‘‘, in9 cluding eco-industrial development technologies’’ be10 fore the semicolon.

11 SEC. 3. FUNCTIONS OF THE COMMISSION.

12 Section 102(a) of the Appalachian Regional Develop13 ment Act of 1965 (40 U.S.C. App.) is amended—

14 (1) in paragraph (5), by inserting ‘‘, and sup15 port,’’ after ‘‘formation of’’;

16 (2) in paragraph (7), by striking ‘‘and’’ at the

17 end;

18 (3) in paragraph (8), by striking the period at

19 the end and inserting a semicolon; and

20 (4) by adding at the end the following:

21 ‘‘(9) encourage the use of eco-industrial develop22 ment technologies and approaches; and

23 ‘‘(10) seek to coordinate the economic develop24 ment activities of, and the use of economic develop25 ment resources by, Federal agencies in the region.’’.
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1 SEC. 4. INTERAGENCY COORDINATING COUNCIL ON APPA2 LACHIA.

3 Section 104 of the Appalachian Regional Development

4 Act of 1965 (40 U.S.C. App.) is amended—

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

6 ‘‘(a) IN GENERAL.—The President’’; and

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

8 ‘‘(b) INTERAGENCY COORDINATING COUNCIL ON APPA9 LACHIA.—

10 ‘‘(1) ESTABLISHMENT.—In carrying out sub11 section (a), the President shall establish an inter12 agency council to be known as the ‘Interagency Co13 ordinating Council on Appalachia’.

14 ‘‘(2) MEMBERSHIP.—The Council shall be com15 posed of—

16 ‘‘(A) the Federal Cochairman, who shall

17 serve as Chairperson of the Council; and

18 ‘‘(B) representatives of Federal agencies

19 that carry out economic development programs

20 in the region.’’.

21 SEC. 5. TELECOMMUNICATIONS AND TECHNOLOGY INITIA22 TIVE.

23 Title II of the Appalachian Regional Development Act

24 of 1965 (40 U.S.C. App.) is amended by inserting after sec25 tion 202 the following:
15

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1 ‘‘SEC. 203. TELECOMMUNICATIONS AND TECHNOLOGY INI2 TIATIVE.

3 ‘‘(a) IN GENERAL.—The Commission may provide

4 technical assistance, make grants, enter into contracts, or

5 otherwise provide funds to persons or entities in the region

6 for projects—

7 ‘‘(1) to increase affordable access to advanced

8 telecommunications, entrepreneurship, and manage9 ment technologies or applications in the region;

10 ‘‘(2) to provide education and training in the

11 use of telecommunications and technology;

12 ‘‘(3) to develop programs to increase the readi13 ness of industry groups and businesses in the region

14 to engage in electronic commerce; or

15 ‘‘(4) to support entrepreneurial opportunities for

16 businesses in the information technology sector.

17 ‘‘(b) SOURCE OF FUNDING.—

18 ‘‘(1) IN GENERAL.—Assistance under this section

19 may be provided—

20 ‘‘(A) exclusively from amounts made avail21 able to carry out this section; or

22 ‘‘(B) from amounts made available to carry

23 out this section in combination with amounts

24 made available under any other Federal pro25 gram or from any other source.
16

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1 ‘‘(2) FEDERAL SHARE REQUIREMENTS SPECI2 FIED IN OTHER LAWS.—Notwithstanding any provi3 sion of law limiting the Federal share under any

4 other Federal program, amounts made available to

5 carry out this section may be used to increase that

6 Federal share, as the Commission determines to be

7 appropriate.

8 ‘‘(c) COST SHARING FOR GRANTS.—Not more than 50

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

10 out in a county for which a distressed county designation

11 is in effect under section 226) of the costs of any activity

12 eligible for a grant under this section may be provided from

13 funds appropriated to carry out this section.

14 ‘‘(d) BROADBAND STUDY.—

15 ‘‘(1) IN GENERAL.—The Commission shall make

16 a grant, enter into an agreement, or otherwise provide

17 funds for the conduct of a study on—

18 ‘‘(A) the availability of broadband tele19 communications services and access to the Inter20 net through such services in rural and other re21 mote areas;

22 ‘‘(B) the impacts of the availability of those

23 services on those areas; and
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1 ‘‘(C) the means that are available for en2 hancing or facilitating the availability of those

3 services in those areas.

4 ‘‘(2) COMPLETION OF STUDY.—The study under

5 paragraph (1) shall be completed not later than 18

6 months after the date of enactment of the Appa7 lachian Regional Development Act Amendments of

8 2001.’’.

9 SEC. 6. ENTREPRENEURSHIP INITIATIVE.

10 Title II of the Appalachian Regional Development Act

11 of 1965 (40 U.S.C. App.) is amended by inserting after sec12 tion 203 (as added by section 5) the following:

13 ‘‘SEC. 204. ENTREPRENEURSHIP INITIATIVE.

14 ‘‘(a) DEFINITION OF BUSINESS INCUBATOR SERV15 ICE.—In this section, the term ‘business incubator service’

16 means a professional or technical service necessary for the

17 initiation and initial sustainment of the operations of a

18 newly established business, including a service such as—

19 ‘‘(1) a legal service, including aid in preparing

20 a corporate charter, partnership agreement, or basic

21 contract;

22 ‘‘(2) a service in support of the protection of in23 tellectual property through a patent, a trademark, or

24 any other means;
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1 ‘‘(3) a service in support of the acquisition and

2 use of advanced technology, including the use of Inter3 net services and Web-based services; and

4 ‘‘(4) consultation on strategic planning, mar5 keting, or advertising.

6 ‘‘(b) PROJECTS TO BE ASSISTED.—The Commission

7 may provide technical assistance, make grants, enter into

8 contracts, or otherwise provide funds to persons or entities

9 in the region for projects—

10 ‘‘(1) to support the advancement of, and provide,

11 high-quality entrepreneurial training and education

12 for youths, students, and businesspersons;

13 ‘‘(2) to improve access to debt and equity cap14 ital, including the establishment of development ven15 ture capital funds;

16 ‘‘(3) to aid communities in identifying, devel17 oping, and implementing development strategies for

18 various sectors of the economy; and

19 ‘‘(4)(A) to develop a working network of business

20 incubators; and

21 ‘‘(B) to support entities that provide business in22 cubator services.

23 ‘‘(c) SOURCE OF FUNDING.—

24 ‘‘(1) IN GENERAL.—Assistance under this section

25 may be provided—
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1 ‘‘(A) exclusively from amounts made avail2 able to carry out this section; or

3 ‘‘(B) from amounts made available to carry

4 out this section in combination with amounts

5 made available under any other Federal pro6 gram or from any other source.

7 ‘‘(2) FEDERAL SHARE REQUIREMENTS SPECI8 FIED IN OTHER LAWS.—Notwithstanding any provi9 sion of law limiting the Federal share under any

10 other Federal program, amounts made available to

11 carry out this section may be used to increase that

12 Federal share, as the Commission determines to be

13 appropriate.

14 ‘‘(d) COST SHARING FOR GRANTS.—Not more than 50

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

16 out in a county for which a distressed county designation

17 is in effect under section 226) of the costs of any activity

18 eligible for a grant under this section may be provided from

19 funds appropriated to carry out this section.’’.

20 SEC. 7. REGIONAL SKILLS PARTNERSHIPS.

21 Title II of the Appalachian Regional Development Act

22 of 1965 (40 U.S.C. App.) is amended by inserting after sec23 tion 204 (as added by section 6) the following:
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1 ‘‘SEC. 205. REGIONAL SKILLS PARTNERSHIPS.

2 ‘‘(a) DEFINITION OF ELIGIBLE ENTITY.—In this sec3 tion, the term ‘eligible entity’ means a consortium that—

4 ‘‘(1) is established to serve 1 or more industries

5 in a specified geographic area; and

6 ‘‘(2) consists of representatives of—

7 ‘‘(A) businesses (or a nonprofit organization

8 that represents businesses);

9 ‘‘(B) labor organizations;

10 ‘‘(C) State and local governments; or

11 ‘‘(D) educational institutions.

12 ‘‘(b) PROJECTS TO BE ASSISTED.—The Commission

13 may provide technical assistance, make grants, enter into

14 contracts, or otherwise provide funds to eligible entities in

15 the region for projects to improve the job skills of workers

16 in a specified industry, including projects for—

17 ‘‘(1) the assessment of training and job skill

18 needs for the industry;

19 ‘‘(2) the development of curricula and training

20 methods, including, in appropriate cases, electronic

21 learning or technology-based training;

22 ‘‘(3) the purchase, lease, or receipt of donations

23 of training equipment;

24 ‘‘(4)(A) the identification of training providers;

25 and
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1 ‘‘(B) the development of partnerships between the

2 industry and educational institutions, including com3 munity colleges;

4 ‘‘(5) the development of apprenticeship pro5 grams;

6 ‘‘(6) the development of training programs for

7 workers, including dislocated workers; and

8 ‘‘(7) the development of training plans for busi9 nesses.

10 ‘‘(c) ADMINISTRATIVE COSTS.—An eligible entity may

11 use not more than 10 percent of the funds made available

12 to the eligible entity under subsection (b) to pay adminis13 trative costs associated with the projects described in sub14 section (b).

15 ‘‘(d) SOURCE OF FUNDING.—

16 ‘‘(1) IN GENERAL.—Assistance under this section

17 may be provided—

18 ‘‘(A) exclusively from amounts made avail19 able to carry out this section; or

20 ‘‘(B) from amounts made available to carry

21 out this section in combination with amounts

22 made available under any other Federal pro23 gram or from any other source.

24 ‘‘(2) FEDERAL SHARE REQUIREMENTS SPECI25 FIED IN OTHER LAWS.—Notwithstanding any provi-
22

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1 sion of law limiting the Federal share under any

2 other Federal program, amounts made available to

3 carry out this section may be used to increase that

4 Federal share, as the Commission determines to be

5 appropriate.

6 ‘‘(e) COST SHARING FOR GRANTS.—Not more than 50

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

8 out in a county for which a distressed county designation

9 is in effect under section 226) of the costs of any activity

10 eligible for a grant under this section may be provided from

11 funds appropriated to carry out this section.’’.

12 SEC. 8. PROGRAM DEVELOPMENT CRITERIA.

13 (a) ELIMINATION OF GROWTH CENTER CRITERIA.—

14 Section 224(a)(1) of the Appalachian Regional Develop15 ment Act of 1965 (40 U.S.C. App.) is amended by striking

16 ‘‘in an area determined by the State have a significant po17 tential for growth or’’.

18 (b) ASSISTANCE TO DISTRESSED COUNTIES AND

19 AREAS.—Section 224 of the Appalachian Regional Develop20 ment Act of 1965 (40 U.S.C. App.) is amended by adding

21 at the end the following:

22 ‘‘(d) ASSISTANCE TO DISTRESSED COUNTIES AND

23 AREAS.—For each fiscal year, not less than 50 percent of

24 the amount of grant expenditures approved by the Commis-
23

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1 sion shall support activities or projects that benefit severely

2 and persistently distressed counties and areas.’’.

3 SEC. 9. GRANTS FOR ADMINISTRATIVE EXPENSES OF

4 LOCAL DEVELOPMENT DISTRICTS.

5 Section 302(a)(1)(A)(i) of the Appalachian Regional

6 Development Act of 1965 (40 U.S.C. App.) is amended by

7 inserting ‘‘(or, at the discretion of the Commission, 75 per8 cent of such expenses in the case of a local development dis9 trict that has a charter or authority that includes the eco10 nomic development of a county or part of a county for

11 which a distressed county designation is in effect under sec12 tion 226)’’ after ‘‘such expenses’’.

13 SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

14 Section 401 of the Appalachian Regional Development

15 Act of 1965 (40 U.S.C. App.) is amended to read as follows:

16 ‘‘SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

17 ‘‘(a) IN GENERAL.—In addition to amounts author18 ized by section 201 and other amounts made available for

19 the Appalachian development highway system program,

20 there are authorized to be appropriated to the Commission

21 to carry out this Act—

22 ‘‘(1) $88,000,000 for each of fiscal years 2002

23 through 2004;

24 ‘‘(2) $90,000,000 for fiscal year 2005; and

25 ‘‘(3) $92,000,000 for fiscal year 2006.
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1 ‘‘(b) TELECOMMUNICATIONS AND TECHNOLOGY INITIA2 TIVE.—Of the amounts made available under subsection

3 (a), the following amounts may be made available to carry

4 out section 203:

5 ‘‘(1) $10,000,000 for fiscal year 2002.

6 ‘‘(2) $8,000,000 for fiscal year 2003.

7 ‘‘(3) $5,000,000 for each of fiscal years 2004

8 through 2006.

9 ‘‘(c) AVAILABILITY.—Sums made available under sub10 section (a) shall remain available until expended.’’.

11 SEC. 11. STUDIES.

12 (a) STUDY OF REGIONAL CHARACTERISTICS OF UPPER

13 NEW YORK STATE.—Section 403 of the Appalachian Re14 gional Development Act of 1965 (40 U.S.C. App.) is amend15 ed in the second sentence of the last undesignated paragraph

16 by striking ‘‘June 30, 1970’’ and inserting ‘‘September 30,

17 2002’’.

18 (b) STUDY OF IMPACTS OF TERRORIST ATTACKS ON

19 ECONOMY OF NEW YORK.—

20 (1) IN GENERAL.—The Appalachian Regional

21 Commission shall provide for a study to be conducted

22 by an academic institution located within the Appa23 lachian region of New York State—

24 (A) to examine the immediate and potential

25 short-term and long-term economic impacts of
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1 the events of September 11, 2001, on New York

2 City and on other areas of New York State; and

3 (B) to identify mechanisms and resources

4 that could be used to prevent, reduce, and ame5 liorate those impacts.

6 (2) COMPLETION OF STUDY.—The study under

7 paragraph (1) shall be completed not later than 1

8 year after the date of enactment of this Act.

9 (3) AUTHORIZATION OF APPROPRIATIONS.—

10 There is authorized to be appropriated to the Appa11 lachian Regional Commission to carry out this sub12 section $300,000 for fiscal year 2002, to remain

13 available until expended.

14 SEC. 12. TERMINATION.

15 Section 405 of the Appalachian Regional Development

16 Act of 1965 (40 U.S.C. App.) is amended by striking

17 ‘‘2001’’ and inserting ‘‘2006’’.

18 SEC. 13. TECHNICAL AND CONFORMING AMENDMENTS.

19 (a) Section 101(b) of the Appalachian Regional Devel20 opment Act of 1965 (40 U.S.C. App.) is amended in the

21 third sentence by striking ‘‘implementing investment pro22 gram’’ and inserting ‘‘strategy statement’’.

23 (b) Section 106(7) of the Appalachian Regional Devel24 opment Act of 1965 (40 U.S.C. App.) is amended by strik25 ing ‘‘expiring no later than September 30, 2001’’.
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•S 1206 RS

1 (c) Sections 202, 214, and 302(a)(1)(C) of the Appa2 lachian Regional Development Act of 1965 (40 U.S.C. App.)

3 are amended by striking ‘‘grant-in-aid programs’’ each

4 place it appears and inserting ‘‘grant programs’’.

5 (d) Section 202(a) of the Appalachian Regional Devel6 opment Act of 1965 (40 U.S.C. App.) is amended in the

7 second sentence by striking ‘‘title VI of the Public Health

8 Service Act (42 U.S.C. 291–291o), the Mental Retardation

9 Facilities and Community Mental Health Centers Con10 struction Act of 1963 (77 Stat. 282),’’ and inserting ‘‘title

11 VI of the Public Health Service Act (42 U.S.C. 291 et seq.),

12 the Developmental Disabilities Assistance and Bill of

13 Rights Act of 2000 (42 U.S.C. 15001 et seq.),’’.

14 (e) Section 207(a) of the Appalachian Regional Devel15 opment Act of 1965 (40 U.S.C. App.) is amended by strik16 ing ‘‘section 221 of the National Housing Act, section 8 of

17 the United States Housing Act of 1937, section 515 of the

18 Housing Act of 1949,’’ and inserting ‘‘section 221 of the

19 National Housing Act (12 U.S.C. 1715l), section 8 of the

20 United States Housing Act of 1937 (42 U.S.C. 1437f), sec21 tion 515 of the Housing Act of 1949 (42 U.S.C. 1485),’’.

22 (f) Section 214 of the Appalachian Regional Develop23 ment Act of 1965 (40 U.S.C. App.) is amended—

24 (1) in the section heading, by striking ‘‘GRANT25 IN-AID’’ and inserting ‘‘GRANT’’;
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1 (2) in subsection (a)—

2 (A) by striking ‘‘grant-in-aid Act’’ each

3 place it appears and inserting ‘‘Act’’;

4 (B) in the first sentence, by striking ‘‘grant5 in-aid Acts’’ and inserting ‘‘Acts’’;

6 (C) by striking ‘‘grant-in-aid program’’

7 each place it appears and inserting ‘‘grant pro8 gram’’; and

9 (D) by striking the third sentence;

10 (3) by striking subsection (c) and inserting the

11 following:

12 ‘‘(c) DEFINITION OF FEDERAL GRANT PROGRAM.—

13 ‘‘(1) IN GENERAL.—In this section, the term

14 ‘Federal grant program’ means any Federal grant

15 program authorized by this Act or any other Act that

16 provides assistance for—

17 ‘‘(A) the acquisition or development of land;

18 ‘‘(B) the construction or equipment of facili19 ties; or

20 ‘‘(C) any other community or economic de21 velopment or economic adjustment activity.

22 ‘‘(2) INCLUSIONS.—In this section, the term

23 ‘Federal grant program’ includes a Federal grant

24 program such as a Federal grant program authorized

25 by—
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1 ‘‘(A) the Consolidated Farm and Rural De2 velopment Act (7 U.S.C. 1921 et seq.);

3 ‘‘(B) the Land and Water Conservation

4 Fund Act of 1965 (16 U.S.C. 460l–4 et seq.);

5 ‘‘(C) the Watershed Protection and Flood

6 Prevention Act (16 U.S.C. 1001 et seq.);

7 ‘‘(D) the Carl D. Perkins Vocational and

8 Technical Education Act of 1998 (20 U.S.C.

9 2301 et seq.);

10 ‘‘(E) the Federal Water Pollution Control

11 Act (33 U.S.C. 1251 et seq.);

12 ‘‘(F) title VI of the Public Health Service

13 Act (42 U.S.C. 291 et seq.);

14 ‘‘(G) sections 201 and 209 of the Public

15 Works and Economic Development Act of 1965

16 (42 U.S.C. 3141, 3149);

17 ‘‘(H) title I of the Housing and Community

18 Development Act of 1974 (42 U.S.C. 5301 et

19 seq.); or

20 ‘‘(I) part IV of title III of the Communica21 tions Act of 1934 (47 U.S.C. 390 et seq.).

22 ‘‘(3) EXCLUSIONS.—In this section, the term

23 ‘Federal grant program’ does not include—
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1 ‘‘(A) the program for construction of the

2 Appalachian development highway system au3 thorized by section 201;

4 ‘‘(B) any program relating to highway or

5 road construction authorized by title 23, United

6 States Code; or

7 ‘‘(C) any other program under this Act or

8 any other Act to the extent that a form of finan9 cial assistance other than a grant is author10 ized.’’; and

11 (4) by striking subsection (d).

12 (g) Section 224(a)(2) of the Appalachian Regional De13 velopment Act of 1965 (40 U.S.C. App.) is amended by

14 striking ‘‘relative per capita income’’ and inserting ‘‘per

15 capita market income’’.

16 (h) Section 225 of the Appalachian Regional Develop17 ment Act of 1965 (40 U.S.C. App.)—

18 (1) in subsection (a)(3), by striking ‘‘develop19 ment program’’ and inserting ‘‘development strate20 gies’’; and

21 (2) in subsection (c)(2), by striking ‘‘development

22 programs’’ and inserting ‘‘development strategies’’.

23 (i) Section 303 of the Appalachian Regional Develop24 ment Act of 1965 (40 U.S.C. App.) is amended—
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1 (1) in the section heading, by striking ‘‘INVEST2 MENT PROGRAMS’’ and inserting ‘‘STRATEGY STATE3 MENTS’’;

4 (2) in the first sentence, by striking ‘‘imple5 menting investments programs’’ and inserting ‘‘strat6 egy statements’’; and

7 (3) by striking ‘‘implementing investment pro8 gram’’ each place it appears and inserting ‘‘strategy

9 statement’’.

10 (j) Section 403 of the Appalachian Regional Develop11 ment Act of 1965 (40 U.S.C. App.) is amended in the next12 to-last undesignated paragraph by striking ‘‘Committee on

13 Public Works and Transportation’’ and inserting ‘‘Com14 mittee on Transportation and Infrastructure’’.

Calendar No. 303

107TH CONGRESS

1ST SESSION S. 1206

[Report No. 107–132]

A BILL

To reauthorize the Appalachian Regional

Development Act of 1965, and for other purposes.

DECEMBER 20 (legislative day, DECEMBER 18), 2001

Reported with an amendment