107TH CONGRESS

2D SESSION S. 1206

AN ACT

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 2002’’.
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1 SEC. 2. PURPOSES.

2 (a) THIS ACT.—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 (b) APPALACHIAN REGIONAL DEVELOPMENT ACT OF

11 1965.—Section 2 of the Appalachian Regional Develop12 ment Act of 1965 (40 U.S.C. App.) is amended—

13 (1) in subsection (b), by inserting after the

14 third sentence the following: ‘‘Consistent with the

15 goal described in the preceding sentence, the Appa16 lachian region should be able to take advantage of

17 eco-industrial development, which promotes both em18 ployment and economic growth and the preservation

19 of natural resources.’’; and

20 (2) in subsection (c)(2)(B)(ii), by inserting ‘‘,

21 including eco-industrial development technologies’’

22 before the semicolon.

23 SEC. 3. FUNCTIONS OF THE COMMISSION.

24 Section 102(a) of the Appalachian Regional Develop25 ment Act of 1965 (40 U.S.C. App.) is amended—
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1 (1) in paragraph (5), by inserting ‘‘, and sup2 port,’’ after ‘‘formation of’’;

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

4 end;

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

6 the end and inserting a semicolon; and

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

8 ‘‘(9) encourage the use of eco-industrial devel9 opment technologies and approaches; and

10 ‘‘(10) seek to coordinate the economic develop11 ment activities of, and the use of economic develop12 ment resources by, Federal agencies in the region.’’.

13 SEC. 4. INTERAGENCY COORDINATING COUNCIL ON APPA14 LACHIA.

15 Section 104 of the Appalachian Regional Develop16 ment Act of 1965 (40 U.S.C. App.) is amended—

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

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

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

20 ‘‘(b) INTERAGENCY COORDINATING COUNCIL ON AP21 PALACHIA.—

22 ‘‘(1) ESTABLISHMENT.—In carrying out sub23 section (a), the President shall establish an inter24 agency council to be known as the ‘Interagency Co25 ordinating Council on Appalachia’.
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1 ‘‘(2) MEMBERSHIP.—The Council shall be com2 posed of—

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

4 serve as Chairperson of the Council; and

5 ‘‘(B) representatives of Federal agencies

6 that carry out economic development programs

7 in the region.’’.

8 SEC. 5. TELECOMMUNICATIONS AND TECHNOLOGY INITIA9 TIVE.

10 Title II of the Appalachian Regional Development

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

12 after section 202 the following:

13 ‘‘SEC. 203. TELECOMMUNICATIONS AND TECHNOLOGY INI14 TIATIVE.

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

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

17 otherwise provide funds to persons or entities in the region

18 for projects—

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

20 telecommunications, entrepreneurship, and manage21 ment technologies or applications in the region;

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

23 use of telecommunications and technology;
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1 ‘‘(3) to develop programs to increase the readi2 ness of industry groups and businesses in the region

3 to engage in electronic commerce; or

4 ‘‘(4) to support entrepreneurial opportunities

5 for businesses in the information technology sector.

6 ‘‘(b) SOURCE OF FUNDING.—

7 ‘‘(1) IN GENERAL.—Assistance under this sec8 tion may be provided—

9 ‘‘(A) exclusively from amounts made avail10 able to carry out this section; or

11 ‘‘(B) from amounts made available to

12 carry out this section in combination with

13 amounts made available under any other Fed14 eral program or from any other source.

15 ‘‘(2) FEDERAL SHARE REQUIREMENTS SPECI16 FIED IN OTHER LAWS.—Notwithstanding any provi17 sion of law limiting the Federal share under any

18 other Federal program, amounts made available to

19 carry out this section may be used to increase that

20 Federal share, as the Commission determines to be

21 appropriate.

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

23 50 percent (or 80 percent in the case of a project to be

24 carried out in a county for which a distressed county des25 ignation is in effect under section 226) of the costs of any
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1 activity eligible for a grant under this section may be pro2 vided from funds appropriated to carry out this section.’’.

3 SEC. 6. ENTREPRENEURSHIP INITIATIVE.

4 Title II of the Appalachian Regional Development

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

6 after section 203 (as added by section 5) the following:

7 ‘‘SEC. 204. ENTREPRENEURSHIP INITIATIVE.

8 ‘‘(a) DEFINITION OF BUSINESS INCUBATOR SERV9 ICE.—In this section, the term ‘business incubator service’

10 means a professional or technical service necessary for the

11 initiation and initial sustainment of the operations of a

12 newly established business, including a service such as—

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

14 a corporate charter, partnership agreement, or basic

15 contract;

16 ‘‘(2) a service in support of the protection of in17 tellectual property through a patent, a trademark, or

18 any other means;

19 ‘‘(3) a service in support of the acquisition and

20 use of advanced technology, including the use of

21 Internet services and Web-based services; and

22 ‘‘(4) consultation on strategic planning, mar23 keting, or advertising.

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

25 may provide technical assistance, make grants, enter into
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1 contracts, or otherwise provide funds to persons or entities

2 in the region for projects—

3 ‘‘(1) to support the advancement of, and pro4 vide, entrepreneurial training and education for

5 youths, students, and businesspersons;

6 ‘‘(2) to improve access to debt and equity cap7 ital by such means as facilitating the establishment

8 of development venture capital funds;

9 ‘‘(3) to aid communities in identifying, devel10 oping, and implementing development strategies for

11 various sectors of the economy; and

12 ‘‘(4)(A) to develop a working network of busi13 ness incubators; and

14 ‘‘(B) to support entities that provide business

15 incubator services.

16 ‘‘(c) SOURCE OF FUNDING.—

17 ‘‘(1) IN GENERAL.—Assistance under this sec18 tion may be provided—

19 ‘‘(A) exclusively from amounts made avail20 able to carry out this section; or

21 ‘‘(B) from amounts made available to

22 carry out this section in combination with

23 amounts made available under any other Fed24 eral program or from any other source.
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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 ‘‘(d) COST SHARING FOR GRANTS.—Not more than

9 50 percent (or 80 percent in the case of a project to be

10 carried out in a county for which a distressed county des11 ignation is in effect under section 226) of the costs of any

12 activity eligible for a grant under this section may be pro13 vided from funds appropriated to carry out this section.’’.

14 SEC. 7. REGIONAL SKILLS PARTNERSHIPS.

15 Title II of the Appalachian Regional Development

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

17 after section 204 (as added by section 6) the following:

18 ‘‘SEC. 205. REGIONAL SKILLS PARTNERSHIPS.

19 ‘‘(a) DEFINITION OF ELIGIBLE ENTITY.—In this sec20 tion, the term ‘eligible entity’ means a consortium that—

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

22 in a specified geographic area; and

23 ‘‘(2) consists of representatives of—

24 ‘‘(A) businesses (or a nonprofit organiza25 tion that represents businesses);
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1 ‘‘(B) labor organizations;

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

3 ‘‘(D) educational institutions.

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

5 may provide technical assistance, make grants, enter into

6 contracts, or otherwise provide funds to eligible entities

7 in the region for projects to improve the job skills of work8 ers for a specified industry, including projects for—

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

10 needs for the industry;

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

12 methods, including, in appropriate cases, electronic

13 learning or technology-based training;

14 ‘‘(3)(A) the identification of training providers;

15 and

16 ‘‘(B) the development of partnerships between

17 the industry and educational institutions, including

18 community colleges;

19 ‘‘(4) the development of apprenticeship pro20 grams;

21 ‘‘(5) the development of training programs for

22 workers, including dislocated workers; and

23 ‘‘(6) the development of training plans for busi24 nesses.
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1 ‘‘(c) ADMINISTRATIVE COSTS.—An eligible entity

2 may use not more than 10 percent of the funds made

3 available to the eligible entity under subsection (b) to pay

4 administrative costs associated with the projects described

5 in subsection (b).

6 ‘‘(d) SOURCE OF FUNDING.—

7 ‘‘(1) IN GENERAL.—Assistance under this sec8 tion may be provided—

9 ‘‘(A) exclusively from amounts made avail10 able to carry out this section; or

11 ‘‘(B) from amounts made available to

12 carry out this section in combination with

13 amounts made available under any other Fed14 eral program or from any other source.

15 ‘‘(2) FEDERAL SHARE REQUIREMENTS SPECI16 FIED IN OTHER LAWS.—Notwithstanding any provi17 sion of law limiting the Federal share under any

18 other Federal program, amounts made available to

19 carry out this section may be used to increase that

20 Federal share, as the Commission determines to be

21 appropriate.

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

23 50 percent (or 80 percent in the case of a project to be

24 carried out in a county for which a distressed county des25 ignation is in effect under section 226) of the costs of any
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1 activity eligible for a grant under this section may be pro2 vided from funds appropriated to carry out this section.’’.

3 SEC. 8. PROGRAM DEVELOPMENT CRITERIA.

4 (a) ELIMINATION OF GROWTH CENTER CRITERIA.—

5 Section 224(a)(1) of the Appalachian Regional Develop6 ment Act of 1965 (40 U.S.C. App.) is amended by striking

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

8 potential for growth or’’.

9 (b) ASSISTANCE TO DISTRESSED COUNTIES AND

10 AREAS.—Section 224 of the Appalachian Regional Devel11 opment Act of 1965 (40 U.S.C. App.) is amended by add12 ing at the end the following:

13 ‘‘(d) ASSISTANCE TO DISTRESSED COUNTIES AND

14 AREAS.—For fiscal year 2003 and each fiscal year there15 after, not less than 50 percent of the amount of grant

16 expenditures approved by the Commission shall support

17 activities or projects that benefit severely and persistently

18 distressed counties and areas.’’.

19 SEC. 9. GRANTS FOR ADMINISTRATIVE EXPENSES OF

20 LOCAL DEVELOPMENT DISTRICTS.

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

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

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

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

25 district that has a charter or authority that includes the
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1 economic development of a county or part of a county for

2 which a distressed county designation is in effect under

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

4 SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

5 Section 401 of the Appalachian Regional Develop6 ment Act of 1965 (40 U.S.C. App.) is amended to read

7 as follows:

8 ‘‘SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

9 ‘‘(a) IN GENERAL.—In addition to amounts author10 ized by section 201 and other amounts made available for

11 the Appalachian development highway system program,

12 there are authorized to be appropriated to the Commission

13 to carry out this Act—

14 ‘‘(1) $88,000,000 for each of fiscal years 2002

15 through 2004;

16 ‘‘(2) $90,000,000 for fiscal year 2005; and

17 ‘‘(3) $92,000,000 for fiscal year 2006.

18 ‘‘(b) TELECOMMUNICATIONS AND TECHNOLOGY INI19 TIATIVE.—Of the amounts made available under sub20 section (a), the following amounts may be made available

21 to carry out section 203:

22 ‘‘(1) $10,000,000 for fiscal year 2002.

23 ‘‘(2) $8,000,000 for fiscal year 2003.

24 ‘‘(3) $5,000,000 for each of fiscal years 2004

25 through 2006.
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1 ‘‘(c) AVAILABILITY.—Sums made available under

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

3 SEC. 11. ADDITION OF COUNTIES TO APPALACHIAN RE4 GION.

5 Section 403 of the Appalachian Regional Develop6 ment Act of 1965 (40 U.S.C. App.) is amended—

7 (1) in the third undesignated paragraph (relat8 ing to Kentucky)—

9 (A) by inserting ‘‘Edmonson,’’ after ‘‘Cum10 berland,’’;

11 (B) by inserting ‘‘Hart,’’ after ‘‘Harlan,’’;

12 and

13 (C) by striking ‘‘Montogomery,’’ and in14 serting ‘‘Montgomery,’’; and

15 (2) in the fifth undesignated paragraph (relat16 ing to Mississippi)—

17 (A) by inserting ‘‘Montgomery,’’ after

18 ‘‘Monroe,’’; and

19 (B) by inserting ‘‘Panola,’’ after

20 ‘‘Oktibbeha,’’.

21 SEC. 12. TERMINATION.

22 Section 405 of the Appalachian Regional Develop23 ment Act of 1965 (40 U.S.C. App.) is amended by striking

24 ‘‘2001’’ and inserting ‘‘2006’’.
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1 SEC. 13. TECHNICAL AND CONFORMING AMENDMENTS.

2 (a) Section 101(b) of the Appalachian Regional De3 velopment Act of 1965 (40 U.S.C. App.) is amended in

4 the third sentence by striking ‘‘implementing investment

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

6 (b) Section 106(7) of the Appalachian Regional De7 velopment Act of 1965 (40 U.S.C. App.) is amended by

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

9 (c) Sections 202, 214, and 302(a)(1)(C) of the Appa10 lachian Regional Development Act of 1965 (40 U.S.C.

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

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

13 (d) Section 202(a) of the Appalachian Regional De14 velopment Act of 1965 (40 U.S.C. App.) is amended in

15 the second sentence by striking ‘‘title VI of the Public

16 Health Service Act (42 U.S.C. 291–291o), the Mental Re17 tardation Facilities and Community Mental Health Cen18 ters Construction Act of 1963 (77 Stat. 282),’’ and insert19 ing ‘‘title VI of the Public Health Service Act (42 U.S.C.

20 291 et seq.), the Developmental Disabilities Assistance

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

22 seq.),’’.

23 (e) Section 207(a) of the Appalachian Regional De24 velopment Act of 1965 (40 U.S.C. App.) is amended by

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

26 8 of the United States Housing Act of 1937, section 515
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1 of the Housing Act of 1949,’’ and inserting ‘‘section 221

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

3 8 of the United States Housing Act of 1937 (42 U.S.C.

4 1437f), section 515 of the Housing Act of 1949 (42

5 U.S.C. 1485),’’.

6 (f) Section 214 of the Appalachian Regional Develop7 ment Act of 1965 (40 U.S.C. App.) is amended—

8 (1) in the section heading, by striking ‘‘GRANT9 IN-AID’’ and inserting ‘‘GRANT’’;

10 (2) in subsection (a)—

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

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

13 (B) in the first sentence, by striking

14 ‘‘grant-in-aid Acts’’ and inserting ‘‘Acts’’;

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

16 each place it appears and inserting ‘‘grant pro17 gram’’; and

18 (D) by striking the third sentence;

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

20 following:

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

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

23 ‘Federal grant program’ means any Federal grant

24 program authorized by this Act or any other Act

25 that provides assistance for—
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1 ‘‘(A) the acquisition or development of

2 land;

3 ‘‘(B) the construction or equipment of fa4 cilities; or

5 ‘‘(C) any other community or economic de6 velopment or economic adjustment activity.

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

8 ‘Federal grant program’ includes a Federal grant

9 program such as a Federal grant program author10 ized by—

11 ‘‘(A) the Consolidated Farm and Rural

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

13 ‘‘(B) the Land and Water Conservation

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

15 ‘‘(C) the Watershed Protection and Flood

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

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

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

19 2301 et seq.);

20 ‘‘(E) the Federal Water Pollution Control

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

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

23 Act (42 U.S.C. 291 et seq.);
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1 ‘‘(G) sections 201 and 209 of the Public

2 Works and Economic Development Act of 1965

3 (42 U.S.C. 3141, 3149);

4 ‘‘(H) title I of the Housing and Commu5 nity Development Act of 1974 (42 U.S.C. 5301

6 et seq.); or

7 ‘‘(I) part IV of title III of the Communica8 tions Act of 1934 (47 U.S.C. 390 et seq.).

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

10 ‘Federal grant program’ does not include—

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

12 Appalachian development highway system au13 thorized by section 201;

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

15 road construction authorized by title 23, United

16 States Code; or

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

18 any other Act to the extent that a form of fi19 nancial assistance other than a grant is author20 ized.’’; and

21 (4) by striking subsection (d).

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

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

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

25 capita market income’’.
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1 (h) Section 225 of the Appalachian Regional Develop2 ment Act of 1965 (40 U.S.C. App.)—

3 (1) in subsection (a)(3), by striking ‘‘develop4 ment program’’ and inserting ‘‘development strate5 gies’’; and

6 (2) in subsection (c)(2), by striking ‘‘develop7 ment programs’’ and inserting ‘‘development strate8 gies’’.

9 (i) Section 303 of the Appalachian Regional Develop10 ment Act of 1965 (40 U.S.C. App.) is amended—

11 (1) in the section heading, by striking ‘‘INVEST12 MENT PROGRAMS’’ and inserting ‘‘STRATEGY STATE13 MENTS’’;

14 (2) in the first sentence, by striking ‘‘imple15 menting investments programs’’ and inserting

16 ‘‘strategy statements’’; and

17 (3) by striking ‘‘implementing investment pro18 gram’’ each place it appears and inserting ‘‘strategy

19 statement’’.

20 (j) Section 403 of the Appalachian Regional Develop21 ment Act of 1965 (40 U.S.C. App.) is amended in the

22 next-to-last undesignated paragraph by striking ‘‘Com-
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1 mittee on Public Works and Transportation’’ and insert2 ing ‘‘Committee on Transportation and Infrastructure’’.

Passed the Senate February 8, 2002.

Attest:

Secretary.

107TH CONGRESS

2D SESSION S. 1206

AN ACT

To reauthorize the Appalachian Regional

Development Act of 1965, and for other purposes.