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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 12 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 12

  To authorize the Secretary of Commerce to make grants to States and 
  local governments for the construction of projects in areas of high 
                 unemployment, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

             January 21 (legislative day, January 5), 1993

   Mr. Biden introduced the following bill; which was read twice and 
       referred to the Committee on Environment and Public Works

_______________________________________________________________________

                                 A BILL

 
  To authorize the Secretary of Commerce to make grants to States and 
  local governments for the construction of projects in areas of high 
                 unemployment, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Infrastructure Growth and Employment 
Act of 1993''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) the national economy has failed for several years to 
        maintain sufficient levels of economic growth;
            (2) the current inadequate levels of economic activity and 
        job creation are anticipated to persist into the foreseeable 
        future;
            (3) this prospect will mean continued high rates of 
        business failures and unemployment, increased Federal spending 
        and reduced revenues, thereby deepening the Federal deficit;
            (4) recovery of the economy and reduction of the Federal 
        deficit depend on the creation of higher levels of employment 
        and economic activity;
            (5) in recent years all levels of government have neglected 
        to add to or maintain existing public infrastructure essential 
        to economic efficiency and the future prosperity of the 
        country; and
            (6) economic growth rates and the future efficiency and 
        competitiveness of the national economy will be substantially 
        enhanced by a program of Federal Government assistance to State 
        and local governments to construct and rehabilitate the 
        Nation's economic infrastructure.

SEC. 3. DIRECT GRANTS.

    (a) Construction.--The Secretary is authorized to make grants to 
any State or local government for the construction (including 
demolition and other site preparation activities), renovation, repair, 
or other improvement of local public works projects, including those 
public works projects of State and local governments for which Federal 
financial assistance is authorized under provisions of law other than 
this Act. To the extent appropriate, the Secretary may coordinate with 
other Federal agencies in assessing grant request and in providing 
appropriate levels of support.
    (b) Federal Share.--The Federal share of any project for which a 
grant is made under this section shall be no more than 80 percent of 
the cost of the project.
    (c) Termination of Grants.--No new grants shall be made pursuant to 
this Act after the expiration of any 3-consecutive-month period during 
which the national unemployment rate remained below 6 percent for each 
such month, or after September 30, 1994, whichever first occurs.

SEC. 4. ALLOCATION OF FUNDS; PREFERENCES.

    (a) Allocation of Funds.--The Secretary shall allocate funds 
appropriated pursuant to section 8 of this Act as follows:
            (1) Indian tribes.--Three-quarters of one percent of such 
        funds shall be set aside and shall be expended only for grants 
        for public works projects under this Act to Indian tribes and 
        Alaska Native villages. None of the remainder of such funds 
        shall be expended for such grants to such tribes and villages.
            (2) Others.--After the set-aside required by paragraphs 
        (1), (3) and (4) of this subsection, 60 percent of such funds 
        shall be allocated among the States on the basis of the ratio 
        that the number of unemployed persons in each State bears to 
        the total number of unemployed persons in all the States and 40 
        percent of such funds shall be allocated among those States 
        with an average unemployment rate for the preceding 6-month 
        period in excess of 6 percent on the basis of the relative 
        severity of unemployment in each such State, except that no 
        State shall be allocated less than three-quarters of one 
        percent or more than twelve and one-half percent of such funds 
        for local public works projects within such State, except that 
        in the case of Guam, the Virgin Islands, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and the Trust 
        Territory of the Pacific Islands, not less than one-half of one 
        percent in the aggregate shall be granted for such projects in 
        all 4 of such territories.
            (3) Set-aside.--Not less than 10 percent of each State's 
        allocations shall be set aside and shall be expended only for 
        grants for public work projects under this Act for local units 
        of general government with populations under 10,000.
            (4) Development and administration.--Up to three-quarters 
        of one percent of the total grant award will be available for 
        project development and preparation, and for ongoing project 
        administration. This allocation will be available for local 
        units of government defined as nonentitlement under the Housing 
        and Urban Development Community Development Block Grant 
        Program. Such allocation shall not exceed $15,000 for any 
        single grant award.
    (b) Preferences.--
            (1) Local government projects.--In making grants under this 
        Act, the Secretary shall give priority and preference to public 
        works projects of local governments.
            (2) Locally endorsed projects.--In making grants under this 
        Act, the Secretary shall also give priority and preference to 
        any public works project requested by a State or by a special 
        purpose unit of local government which is endorsed by a general 
        purpose local government within such State.
            (3) School district projects.--A project requested by a 
        school district shall be accorded the full priority and 
        preference to public works projects of local governments 
        provided in this subsection.
            (4) Applied industrial research projects.--A project that 
        creates or adds to an applied research facility at an 
        institution of higher education, and that facility is intended 
        to promote the development of new products and processes, or 
        that the Secretary determines will improve the competitiveness 
        of American industry shall be accorded full priority and 
        preference. For projects under this section, matching funds 
        requirements shall be waived if the company or companies and 
        school involved commit, in the Secretary's determination, to 
        undertake all future equipment and maintenance expenses.
    (c) High Unemployment Rates.--
            (1) Priority.--In making grants under this Act, if for the 
        12 most recent consecutive months, the average national 
        unemployment rate is equal to or exceeds 6 percent, the 
        Secretary shall (A) expedite and give priority to applications 
        submitted by States or local governments having unemployment 
        rates for the 12 most recent consecutive months in excess of 
        the national unemployment rate, and (B) shall give priority 
        thereafter to applications submitted by States or local 
        governments having average unemployment rates for the 12 most 
        recent consecutive months in excess of 6 percent, but less than 
        the national unemployment rate.
            (2) Information regarding unemployment rates.--Information 
        regarding unemployment rates may be furnished either by the 
        Federal Government, or by States or local governments, provided 
        the Secretary (A) determines that the unemployment rates 
        furnished by States or local governments are accurate, and (B) 
        shall provide assistance to States or local governments in the 
        calculation of such rates to ensure validity and 
        standardization.
            (3) Limitation on applicability.--Paragraph (1) of this 
        subsection shall not apply to any State which receives a 
        minimum allocation pursuant to paragraph (2) of subsection (a) 
        of this section.
    (d) State and Local Prioritization of Applications.--Whenever a 
State or local government submits applications for grants under this 
Act for 2 or more projects, such State or local government shall submit 
as part of such applications its priority for each such project.
    (e) Localization of Unemployment Determinations.--The unemployment 
rate of a local government may, for the purposes of this Act, and upon 
request of the applicant, be based upon the unemployment rate of any 
community or neighborhood (defined without regard to political or other 
subdivisions or boundaries) within the jurisdiction of such local 
government.

SEC. 5. RULES, REGULATIONS, AND PROCEDURES.

    (a) In General.--The Secretary shall, not later than 30 days after 
date of enactment of this Act, prescribe those rules, regulations, and 
procedures (including application forms) necessary to carry out this 
Act. Such rules, regulations, and procedures shall assure that adequate 
consideration is given to the relative needs of various sections of the 
country. The Secretary shall consider among other factors (1) the 
severity and duration of unemployment in proposed project areas, (2) 
the income levels and extent of underemployment in proposed project 
areas, and (3) the extent to which proposed projects will contribute to 
the reduction of unemployment and future economic growth.
    (b) Consideration of Applications.--The Secretary shall make a 
final determination with respect to each application for a grant 
submitted to him under this Act not later than the 60th day after the 
date the Secretary receives such application.
    (c) Consideration of Construction Industry Unemployment.--For 
purposes of this section, in considering the extent of unemployment or 
underemployment, the Secretary shall consider the amount of 
unemployment or underemployment in the construction and construction-
related industries.

SEC. 6. GENERAL LIMITATIONS.

    (a) Acquisition of Land.--No part of any grant made under section 3 
of this Act shall be used for the acquisition of any interest in real 
property.
    (b) Maintenance Costs.--Nothing in this Act shall be construed to 
authorize the payment of routine scheduled maintenance costs in 
connection with any projects constructed (in whole or in part) with 
Federal financial assistance under this Act.
    (c) On-Site Labor.--Grants made by the Secretary under this Act 
shall be made only for projects for which the applicant gives 
satisfactory assurances, in such manner and form as may be required by 
the Secretary and in accordance with such terms and conditions as the 
Secretary may prescribe, that, if funds are available, on-site labor 
work can begin within 90 days of project approval.
    (d) Contracting.--
            (1) Contracting out required.--No part of the construction 
        (including demolition and other site preparation activities), 
        renovation, repair, or other improvement of any public works 
        project for which a grant is made under this Act shall be 
        performed directly by any department, agency, or 
        instrumentality of any State or local government.
            (2) Competitive bidding.--Construction of each project for 
        which a grant is made under this Act shall be performed by 
        contract awarded by competitive bidding, unless the Secretary 
        shall affirmatively find that, under the circumstances relating 
        to such project, an alternative method is in the public 
        interest.
            (3) Lowest responsive bid.--Contracts for the construction 
        of each project for which a grant is made under this Act shall 
        be awarded only on the basis of the lowest responsive bid 
        submitted by a bidder meeting established criteria of 
        responsibility.
            (4) Advertising.--No requirement or obligation shall be 
        imposed as a condition precedent to the award of a contract to 
        a bidder for a project for which a grant is made under this 
        Act, or to the Secretary's concurrence in the award of a 
        contract to such bidder, unless such requirement or obligation 
        is otherwise lawful and is specifically set forth in the 
        advertised specifications.
    (e) Environmental Safeguards.--All local public works projects 
carried out with Federal financial assistance under this Act shall 
comply with all relevant Federal, State, and local environmental laws 
and regulations.
    (f) Buy American.--If a local public works project carried out with 
Federal financial assistance under this Act would be eligible for 
Federal financial assistance under provisions of law other than this 
Act and, under such other provisions of law, would be subject to title 
III of the Act of March 3, 1933, popularly known as the Buy American 
Act, or similar requirements, such project shall be subject to such 
title of such Act of March 3, 1933, or such similar requirements under 
this Act in the same manner and to the same extent as such project 
would be subject to such title of such Act of March 3, 1933, or such 
similar requirements under such other provisions of law.
    (g) Minority Participation.--If a local public works project 
carried out with Federal financial assistance under this Act would be 
eligible for Federal financial assistance under provisions of law other 
than this Act and, under such other provisions of law, would be subject 
to any minority participation requirement, such project shall be 
subject to such requirement under this Act in the same manner and to 
the same extent as such project would be subject to such requirement 
under such other provisions of law.
    (h) Applicability of Laws Regarding Individuals With 
Disabilities.--Sections 504 and 505 of the Rehabilitation Act of 1973 
and the Americans With Disabilities Act of 1990 shall apply to local 
public works projects carried out under this Act.

SEC. 7. PREVAILING RATE OF WAGES.

    If a local public works project carried out with Federal financial 
assistance under this Act would be eligible for Federal financial 
assistance under provisions of law other than this Act and, under such 
other provisions of law, would be subject to the Act of March 3, 1931, 
known as the Davis-Bacon Act (40 U.S.C. 276a-276a-5), or similar 
requirements, such project shall be subject to such Act of March 3, 
1931, or such similar requirements under this Act in the same manner 
and to the same extent as such project would be subject to such Act of 
March 3, 1931, or such similar requirements under such other provisions 
of law.

SEC. 8. FUNDING.

    There is authorized to be appropriated $20,000,000,000 to carry out 
this Act. Moneys appropriated pursuant to this authorization shall 
remain available until expended. Any amounts made available under this 
Act for fiscal year 1992 shall be deemed to be emergency spending under 
section 251(b)(2)(D) of the Balanced Budget and Emergency Deficit 
Control Act of 1985.

SEC. 9. DEFINITIONS.

    As used in this Act, the following definitions apply:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce, acting through the Economic Development 
        Administration.
            (2) Local government.--The term ``local government'' means 
        any city, county, town, parish, or other political subdivision 
        of a State, and any Indian tribe.
            (3) Public works.--The term ``public works'' includes water 
        and sewer lines, streets and roads, water and sewage treatment 
        plants, port facilities, police and fire stations, detention 
        centers, schools, health facilities, and industrial research or 
        development parks, research facilities at institutions of 
        higher education, and other projects the Secretary determines 
        to be appropriate.
            (4) State.--The term ``State'' includes the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, and the Trust Territory of the 
        Pacific Islands.

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