I 

109TH CONGRESS 

1ST SESSION H. R. 1695

To establish the Northeast Regional Development Commission, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 19, 2005

Mr. MICHAUD (for himself, Mr. ALLEN, Mr. BASS, Mr. BOEHLERT, Mr. 

MCHUGH, and Mr. SANDERS) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on 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 establish the Northeast Regional Development 

Commission, 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; FINDINGS. 

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

5 ‘‘Northeast Regional Development Commission Act of 

6 2005’’. 

7 (b) FINDINGS.—Congress finds the following: 
2

•HR 1695 IH 

1 (1) The northeastern border region of the Na2 tion, while abundant in natural resources and rich in 

3 potential, lags behind much of the Nation in its eco4 nomic growth, and its people have not shared prop5 erly in the Nation’s prosperity. 

6 (2) The region’s historic reliance on a few basic 

7 industries and agriculture has failed to provide an 

8 adequate economic base for vigorous, self-sustaining 

9 growth. 

10 (3) Manufacturing sector losses and out migra11 tion in the region have contributed greatly to the re12 gion’s difficulties in entrepreneurial development and 

13 sustainability. 

14 (4) The region has experienced an unprece15 dented change in land ownership patterns that has 

16 increased real estate speculation and short-term tim17 ber management, placing natural resources and val18 uable economic sectors at risk. 

19 (5) State and local governments and the people 

20 of the region have made progress in addressing the 

21 region’s economic problems and will continue to 

22 work purposefully toward their solution. 

23 (6) Economic development of the region is fea24 sible, desirable, and urgently needed. 
3

•HR 1695 IH 

1 (7) Providing Federal assistance to the region 

2 is necessary to address the region’s special economic 

3 problems and promote its economic development on 

4 a coordinated and concerted regional basis. 

5 (8) In directing Federal assistance to the re6 gion, the traditional industries of the region should 

7 be preserved, including the manufacturing, tourism, 

8 forestry, natural resources, agriculture, alternative 

9 transportation, snowmobiling, and recreation indus10 tries. In addition, it is desirable to support growing 

11 industries such as the creative economy. 

12 (9) In directing Federal assistance to the re13 gion, the historic character, recreational value, eco14 logical integrity, and productive capacity of the his15 toric forestlands are valuable resources that should 

16 be preserved to maximize prosperity in the region. 

17 SEC. 2. DEFINITIONS. 

18 In this Act, the following definitions apply: 

19 (1) COMMISSION.—The term ‘‘Commission’’ 

20 means the Northeast Regional Development Com21 mission established by section 3. 

22 (2) FEDERAL GRANT PROGRAM.—The term 

23 ‘‘Federal grant program’’ means a Federal grant 

24 program to provide assistance in carrying out eco25 nomic and community development activities. 
4

•HR 1695 IH 

1 (3) NON-PROFIT ENTITY.—The term ‘‘non-prof2 it entity’’ means any entity with tax-exempt or non3 profit status, as defined by the Internal Revenue 

4 Service. 

5 (4) REGION.—The term ‘‘region’’ means the 

6 area covered by the Commission (as described in sec7 tion 15). 

8 SEC. 3. NORTHEAST REGIONAL DEVELOPMENT COMMIS9 SION. 

10 (a) ESTABLISHMENT.—

11 (1) IN GENERAL.—There is established the 

12 Northeast Regional Development Commission. 

13 (2) COMPOSITION.—The Commission shall be 

14 composed of—

15 (A) a Federal member, to be appointed by 

16 the President, with the advice and consent of 

17 the Senate; and 

18 (B) the Governor of each State in the re19 gion that elects to participate in the Commis20 sion. 

21 (3) COCHAIRPERSONS.—The Commission shall 

22 be headed by—

23 (A) the Federal member, who shall serve—

24 (i) as the Federal cochairperson; and 
5

•HR 1695 IH 

1 (ii) as a liaison between the Federal 

2 Government and the Commission; and 

3 (B) a State cochairperson, who—

4 (i) shall be a Governor of a partici5 pating State in the region; and 

6 (ii) shall be elected by the State mem7 bers for a term of not less than 1 year. 

8 (b) ALTERNATE MEMBERS.—

9 (1) STATE ALTERNATES.—

10 (A) APPOINTMENT.—The State member of 

11 a participating State may have a single alter12 nate, who shall be appointed by the Governor of 

13 the State from among the Governor’s cabinet or 

14 personal staff. 

15 (B) VOTING.—An alternate shall vote in 

16 the event of the absence, death, disability, re17 moval, or resignation of the member for whom 

18 the individual is an alternate. 

19 (2) ALTERNATE FEDERAL COCHAIRPERSON.—

20 The President shall appoint an alternate Federal co21 chairperson. 

22 (3) QUORUM.—

23 (A) IN GENERAL.—Subject to the require24 ments of this paragraph, the Commission shall 
6

•HR 1695 IH 

1 determine what constitutes a quorum of the 

2 Commission. 

3 (B) FEDERAL COCHAIRPERSON.—The 

4 Federal cochairperson or the Federal cochair5 person’s designee must be present for the estab6 lishment of a quorum of the Commission. 

7 (C) STATE ALTERNATES.—A State alter8 nate shall not be counted toward the establish9 ment of a quorum of the Commission. 

10 (4) DELEGATION OF POWER.—No power or re11 sponsibility of the Commission specified in para12 graphs (3) and (4) of subsection (c), and no voting 

13 right of any Commission member, shall be delegated 

14 to any person—

15 (A) who is not a Commission member; or 

16 (B) who is not entitled to vote in Commis17 sion meetings. 

18 (c) DECISIONS.—

19 (1) REQUIREMENTS FOR APPROVAL.—Except 

20 as provided in subsection (g), decisions by the Com21 mission shall require the affirmative vote of the Fed22 eral cochairperson and of a majority of the State 

23 members, exclusive of members representing States 

24 delinquent under subsection (g)(2)(C). 
7

•HR 1695 IH 

1 (2) CONSULTATION.—In matters coming before 

2 the Commission, the Federal cochairperson, to the 

3 extent practicable, shall consult with the Federal de4 partments and agencies having an interest in the 

5 subject matter. 

6 (3) DECISIONS REQUIRING QUORUM OF STATE

7 MEMBERS.—The following decisions may not be 

8 made without a quorum of State members: 

9 (A) A decision involving Commission pol10 icy. 

11 (B) Approval of State, regional, or sub12 regional development plans or strategy state13 ments. 

14 (C) Modification or revision of the Com15 mission’s code. 

16 (D) Allocation of amounts among the 

17 States. 

18 (4) PROJECT AND GRANT PROPOSALS.—The ap19 proval of project and grant proposals is a responsi20 bility of the Commission and shall be carried out in 

21 accordance with section 9. 

22 (d) DUTIES.—The Commission shall—

23 (1) develop, on a continuing basis, comprehen24 sive and coordinated plans and programs to establish 

25 priorities and approve grants for the economic devel-
8

•HR 1695 IH 

1 opment of the region, giving due consideration to 

2 other Federal, State, and local planning and devel3 opment activities in the region; 

4 (2) not later than 365 days after the date of 

5 enactment of this Act, establish priorities in a devel6 opment plan for the region (including 5-year re7 gional outcome targets); 

8 (3) assess the needs and capital assets of the 

9 region based on available research, demonstration 

10 projects, assessments, and evaluations of the region 

11 prepared by Federal, State, or local agencies, local 

12 development districts, and any other relevant source; 

13 (4)(A) enhance the capacity of, and provide 

14 support for, local development districts in the region; 

15 or 

16 (B) if no local development district exists in an 

17 area in a participating State in the region, foster the 

18 creation of a local development district; 

19 (5) allow the participation of representatives of 

20 local development districts, and other appropriate or21 ganizations as approved by the Commission, in all 

22 proceedings of the Commission conducted under sub23 section (e)(1), either in-person or through interactive 

24 telecommunications; 
9

•HR 1695 IH 

1 (6) encourage private investment in industrial, 

2 commercial, and other economic development 

3 projects in the region; and 

4 (7) not later than 365 days after the date of 

5 enactment of this Act, initiate a special resource 

6 study for the north woods of Maine, which study—

7 (A) shall be carried out in cooperation with 

8 appropriate local, State, and Federal officials; 

9 and 

10 (B) shall examine land use, ownership, and 

11 development trends and propose options for fu12 ture management, ownership, conservation, and 

13 development of land to maximize job creation 

14 and ecological value. 

15 (e) ADMINISTRATION.—In carrying out subsection 

16 (d), the Commission may—

17 (1) hold such hearings, sit and act at such 

18 times and places, take such testimony, receive such 

19 evidence, and print or otherwise reproduce and dis20 tribute a description of the proceedings and reports 

21 on actions by the Commission as the Commission 

22 considers appropriate; 

23 (2) authorize, through the Federal or State co24 chairperson or any other member of the Commission 

25 designated by the Commission, the administration of 
10

•HR 1695 IH 

1 oaths if the Commission determines that testimony 

2 should be taken or evidence received under oath; 

3 (3) request from any Federal, State, or local 

4 department or agency such information as may be 

5 available to or procurable by the department or 

6 agency that may be of use to the Commission in car7 rying out duties of the Commission; 

8 (4) adopt, amend, and repeal bylaws and rules 

9 governing the conduct of Commission business and 

10 the performance of Commission duties; 

11 (5) request the head of any Federal department 

12 or agency to detail to the Commission such per13 sonnel as the Commission requires to carry out du14 ties of the Commission, each such detail to be with15 out loss of seniority, pay, or other employee status; 

16 (6) request the head of any State department 

17 or agency or local government to detail to the Com18 mission such personnel as the Commission requires 

19 to carry out duties of the Commission, each such de20 tail to be without loss of seniority, pay, or other em21 ployee status; 

22 (7) provide for coverage of Commission employ23 ees in a suitable retirement and employee benefit 

24 system by—
11

•HR 1695 IH 

1 (A) making arrangements or entering into 

2 contracts with any participating State govern3 ment; or 

4 (B) otherwise providing retirement and 

5 other employee benefit coverage; 

6 (8) accept, use, and dispose of gifts or dona7 tions of services or real, personal, tangible, or intan8 gible property; 

9 (9) enter into and perform such contracts or 

10 other transactions as are necessary to carry out 

11 Commission duties; 

12 (10) establish and maintain a central office lo13 cated within the Northeast Regional Development 

14 Commission region and field offices at such locations 

15 as the Commission may select; and 

16 (11) provide for an appropriate level of rep17 resentation in Washington, DC. 

18 (f) FEDERAL AGENCY COOPERATION.—A Federal 

19 agency shall—

20 (1) cooperate with the Commission; and 

21 (2) provide, on request of the Federal cochair22 person, appropriate assistance in carrying out this 

23 Act, in accordance with applicable Federal laws (in24 cluding regulations). 

25 (g) ADMINISTRATIVE EXPENSES.—
12

•HR 1695 IH 

1 (1) IN GENERAL.—Administrative expenses of 

2 the Commission (except for the expenses of the Fed3 eral cochairperson, including expenses of the alter4 nate and staff of the Federal cochairperson, which 

5 shall be paid solely by the Federal Government) 

6 shall be paid—

7 (A) by the Federal Government, in an 

8 amount equal to 50 percent of the administra9 tive expenses; and 

10 (B) by the States in the region partici11 pating in the Commission, in an amount equal 

12 to 50 percent of the administrative expenses. 

13 (2) STATE SHARE.—

14 (A) IN GENERAL.—The share of adminis15 trative expenses of the Commission to be paid 

16 by each State shall be determined by the Com17 mission. 

18 (B) NO FEDERAL PARTICIPATION.—The 

19 Federal cochairperson shall not participate or 

20 vote in any decision under subparagraph (A). 

21 (C) DELINQUENT STATES.—If a State is 

22 delinquent in payment of the State’s share of 

23 administrative expenses of the Commission 

24 under this subsection—
13

•HR 1695 IH 

1 (i) no assistance under this Act shall 

2 be furnished to the State (including assist3 ance to a political subdivision or a resident 

4 of the State); and 

5 (ii) no member of the Commission 

6 from the State shall participate or vote in 

7 any action by the Commission. 

8 (h) COMPENSATION.—

9 (1) FEDERAL COCHAIRPERSON.—The Federal 

10 cochairperson shall be compensated by the Federal 

11 Government at level III of the Executive Schedule in 

12 subchapter II of chapter 53 of title V, United States 

13 Code. 

14 (2) ALTERNATE FEDERAL COCHAIRPERSON.—

15 The alternate Federal cochairperson—

16 (A) shall be compensated by the Federal 

17 Government at level V of the Executive Sched18 ule described in paragraph (1); and 

19 (B) when not actively serving as an alter20 nate for the Federal cochairperson, shall per21 form such functions and duties as are delegated 

22 by the Federal cochairperson. 

23 (3) STATE MEMBERS AND ALTERNATES.—

24 (A) IN GENERAL.—A State shall com25 pensate each member and alternate rep-
14

•HR 1695 IH 

1 resenting the State on the Commission at the 

2 rate established by law of the State. 

3 (B) NO ADDITIONAL COMPENSATION.—No 

4 State member or alternate member shall receive 

5 any salary, or any contribution to or sup6 plementation of salary from any source other 

7 than the State for services provided by the 

8 member or alternate to the Commission. 

9 (4) DETAILED EMPLOYEES.—

10 (A) IN GENERAL.—No person detailed to 

11 serve the Commission under subsection (e)(6) 

12 shall receive any salary or any contribution to 

13 or supplementation of salary for services pro14 vided to the Commission from—

15 (i) any source other than the State, 

16 local, or intergovernmental department or 

17 agency from which the person was detailed; 

18 or 

19 (ii) the Commission. 

20 (B) VIOLATION.—Any person that violates 

21 this paragraph shall be fined not more than 

22 $5,000, imprisoned not more than 1 year, or 

23 both. 

24 (C) APPLICABLE LAW.—The Federal co25 chairperson, the alternate Federal cochair-
15

•HR 1695 IH 

1 person, and any Federal officer or employee de2 tailed to duty on the Commission under sub3 section (e)(5) shall not be subject to subpara4 graph (A), but shall remain subject to sections 

5 202 through 209 of title 18, United States 

6 Code. 

7 (5) ADDITIONAL PERSONNEL.—

8 (A) COMPENSATION.—

9 (i) IN GENERAL.—The Commission 

10 may appoint and fix the compensation of 

11 an executive director and such other per12 sonnel as are necessary to enable the Com13 mission to carry out the duties of the Com14 mission. 

15 (ii) EXCEPTION.—Compensation 

16 under clause (i) shall not exceed the max17 imum rate for the Senior Executive Service 

18 under section 5382 of title 5, United 

19 States Code, including any applicable local20 ity-based comparability payment that may 

21 be authorized under section 5304(h)(2)(C) 

22 of that title. 

23 (B) EXECUTIVE DIRECTOR.—The executive 

24 director shall be responsible for—
16

•HR 1695 IH 

1 (i) the carrying out of the administra2 tive duties of the Commission; 

3 (ii) direction of the Commission staff; 

4 and 

5 (iii) such other duties as the Commis6 sion may assign. 

7 (C) NO FEDERAL EMPLOYEE STATUS.—No 

8 member, alternate, officer, or employee of the 

9 Commission (except the Federal cochairperson 

10 of the Commission, the alternate and staff for 

11 the Federal cochairperson, and any Federal em12 ployee detailed to the Commission under sub13 section (e)(5)) shall be considered to be a Fed14 eral employee for any purpose. 

15 (i) CONFLICTS OF INTEREST.—

16 (1) IN GENERAL.—Except as provided under 

17 paragraph (2), no State member, alternate, officer, 

18 or employee of the Commission shall participate per19 sonally and substantially as a member, alternate, of20 ficer, or employee of the Commission, through deci21 sion, approval, disapproval, recommendation, the 

22 rendering of advice, investigation, or otherwise, in 

23 any proceeding, application, request for a ruling or 

24 other determination, contract, claim, controversy, or 

25 other matter in which, to knowledge of the member, 
17

•HR 1695 IH 

1 alternate, officer, or employee any of the following 

2 persons has a financial interest: 

3 (A) The member, alternate, officer, or em4 ployee. 

5 (B) The spouse, minor child, partner, or 

6 organization (other than a State or political 

7 subdivision of the State) of the member, alter8 nate, officer, or employee, in which the member, 

9 alternate, officer, or employee is serving as offi10 cer, director, trustee, partner, or employee. 

11 (C) Any person or organization with whom 

12 the member, alternate, officer, or employee is 

13 negotiating or has any arrangement concerning 

14 prospective employment. 

15 (2) DISCLOSURE.—Paragraph (1) shall not 

16 apply if the State member, alternate, officer, or em17 ployee—

18 (A) immediately advises the Commission of 

19 the nature and circumstances of the proceeding, 

20 application, request for a ruling or other deter21 mination, contract, claim, controversy, or other 

22 particular matter presenting a potential conflict 

23 of interest; 

24 (B) makes full disclosure of the financial 

25 interest; and 
18

•HR 1695 IH 

1 (C) before the proceeding concerning the 

2 matter presenting the conflict of interest, re3 ceives a written determination by the Commis4 sion that the interest is not so substantial as to 

5 be likely to affect the integrity of the services 

6 that the Commission may expect from the State 

7 member, alternate, officer, or employee. 

8 (3) VIOLATION.—Any person that violates this 

9 subsection shall be fined not more than $10,000, im10 prisoned not more than 2 years, or both. 

11 (j) VALIDITY OF CONTRACTS, LOANS, AND

12 GRANTS.—The Commission may declare void any con13 tract, loan, or grant of or by the Commission in relation 

14 to which the Commission determines that there has been 

15 a violation of any provision under subsection (h)(4), sub16 section (i), or sections 202 through 209 of title 18, United 

17 States Code. 

18 SEC. 4. ECONOMIC AND COMMUNITY DEVELOPMENT 

19 GRANTS. 

20 (a) IN GENERAL.—The Commission may approve 

21 grants to States, local development districts (as defined 

22 in section 6(a)), and public and nonprofit entities for 

23 projects, approved in accordance with section 9—

24 (1) to develop the infrastructure of the region 

25 for the purpose of facilitating economic development 
19

•HR 1695 IH 

1 in the region (except that grants for this purpose 

2 may only be made to a State or local government); 

3 (2) to assist the region in obtaining job train4 ing, employment-related education, and business de5 velopment; 

6 (3) to assist the region in community and eco7 nomic development; 

8 (4) to provide assistance to severely distressed 

9 and underdeveloped areas; 

10 (5) to support conservation of important nat11 ural, recreational, and historical resources; and 

12 (6) to otherwise achieve the purposes of this 

13 Act. 

14 (b) FUNDING.—

15 (1) IN GENERAL.—Funds for grants under sub16 section (a) may be provided—

17 (A) entirely from appropriations to carry 

18 out this section; 

19 (B) in combination with funds available 

20 under another State or Federal grant program; 

21 or 

22 (C) from any other source. 

23 (2) ELIGIBLE PROJECTS.—The Commission 

24 may provide assistance, make grants, enter into con-
20

•HR 1695 IH 

1 tracts, and otherwise provide funds to eligible enti2 ties in the region for projects that promote—

3 (A) business development; 

4 (B) job training or employment-related 

5 education; 

6 (C) local planning and leadership develop7 ment; 

8 (D) basic public infrastructure, including 

9 high-tech infrastructure and productive natural 

10 resource conservation; 

11 (E) information and technical assistance 

12 for the modernization and diversification of the 

13 forest products industry to support value-added 

14 forest products enterprises; 

15 (F) forest-related cultural, nature-based, 

16 and heritage tourism; and 

17 (G) any other project facilitating economic 

18 development in the region. 

19 (3) FEDERAL SHARE.—Notwithstanding any 

20 provision of law limiting the Federal share in any 

21 grant program, funds appropriated to carry out this 

22 section may be used to increase a Federal share in 

23 a grant program, as the Commission determines ap24 propriate. 
21

•HR 1695 IH 

1 SEC. 5. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS. 

2 (a) FEDERAL GRANT PROGRAM FUNDING.—In ac3 cordance with subsection (b), the Federal cochairperson 

4 may use amounts made available to carry out this Act, 

5 without regard to any limitations on areas eligible for as6 sistance or authorizations for appropriation under any 

7 other Act, to fund all or any portion of the basic Federal 

8 contribution to a project or activity under a Federal grant 

9 program in the region in an amount that is above the fixed 

10 maximum portion of the cost of the project otherwise au11 thorized by applicable law, but not to exceed 80 percent 

12 of the costs of the project. 

13 (b) CERTIFICATION.—

14 (1) IN GENERAL.—In the case of any program 

15 or project for which all or any portion of the basic 

16 Federal contribution to the project under a Federal 

17 grant program is proposed to be made under this 

18 section, no Federal contribution shall be made until 

19 the Federal official administering the Federal law 

20 authorizing the contribution certifies that the pro21 gram or project—

22 (A) meets the applicable requirements of 

23 the applicable Federal grant law; and 

24 (B) could be approved for Federal con25 tribution under the law if funds were available 

26 under the law for the program or project. 
22

•HR 1695 IH 

1 (2) CERTIFICATION BY COMMISSION.—

2 (A) IN GENERAL.—The certifications and 

3 determinations required to be made by the 

4 Commission for approval of projects under this 

5 Act in accordance with section 9—

6 (i) shall be controlling; and 

7 (ii) shall be accepted by the Federal 

8 agencies. 

9 (B) ACCEPTANCE BY FEDERAL COCHAIR10 PERSON.—Any finding, report, certification, or 

11 documentation required to be submitted to the 

12 head of the department, agency, or instrumen13 tality of the Federal Government responsible for 

14 the administration of any Federal grant pro15 gram shall be accepted by the Federal cochair16 person with respect to a supplemental grant for 

17 any project under the program. 

18 SEC. 6. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION 

19 AND ADMINISTRATIVE EXPENSES. 

20 (a) DEFINITION OF LOCAL DEVELOPMENT DIS21 TRICT.—In this section, the term ‘‘local development dis22 trict’’ means an entity designated by the State that—

23 (1) is—

24 (A)(i) a planning district in existence on 

25 the date of enactment of this Act that is recog-
23

•HR 1695 IH 

1 nized by the Economic Development Adminis2 tration of the Department of Commerce; or 

3 (ii) a development district recognized by 

4 the State; or 

5 (B) if an entity described in subparagraph 

6 (A)(i) or (A)(ii) does not exist, an entity des7 ignated by the Commission that satisfies the 

8 criteria developed by the Economic Develop9 ment Administration for a local development 

10 district; and 

11 (2) has not, as certified by the Federal cochair12 person—

13 (A) inappropriately used Federal grant 

14 funds from any Federal source; or 

15 (B) appointed an officer who, during the 

16 period in which another entity inappropriately 

17 used Federal grant funds from any Federal 

18 source, was an officer of the other entity. 

19 (b) GRANTS TO LOCAL DEVELOPMENT DISTRICTS.—

20 (1) IN GENERAL.—The Commission may make 

21 grants for administrative expenses under this sec22 tion. 

23 (2) CONDITIONS FOR GRANTS.—

24 (A) MAXIMUM AMOUNT.—The amount of 

25 any grant awarded under paragraph (1) shall 
24

•HR 1695 IH 

1 not exceed 80 percent of the administrative ex2 penses of the local development district receiv3 ing the grant. 

4 (B) LOCAL SHARE.—The contributions of 

5 a local development district for administrative 

6 expenses may be in cash or in kind, fairly evalu7 ated, including space, equipment, and services. 

8 (c) DUTIES OF LOCAL DEVELOPMENT DISTRICTS.—

9 A local development district shall—

10 (1) operate as a lead organization serving 

11 multicounty areas in the region at the local level; 

12 and 

13 (2) serve as a liaison between State and local 

14 governments, nonprofit organizations (including 

15 community-based groups and educational institu16 tions), the business community, and citizens that—

17 (A) are involved in multijurisdictional plan18 ning; 

19 (B) provide technical assistance to local ju20 risdictions and potential grantees; and 

21 (C) provide leadership and civic develop22 ment assistance. 

23 SEC. 7. DEVELOPMENT PLANNING PROCESS. 

24 (a) STATE DEVELOPMENT PLAN.—In accordance 

25 with policies established by the Commission, each State 
25

•HR 1695 IH 

1 member shall submit a development plan for the area of 

2 the region represented by the State member. 

3 (b) CONTENT OF PLAN.—A State development plan 

4 submitted under subsection (a) shall reflect the goals, ob5 jectives, and priorities identified in the regional develop6 ment plan developed under section 3(d)(2). 

7 (c) CONSULTATION.—In carrying out the develop8 ment planning process, a State shall—

9 (1) consult with—

10 (A) local development districts; 

11 (B) local units of government; and 

12 (C) institutions of higher learning; and 

13 (2) take into consideration the goals, objectives, 

14 priorities, and recommendations of the entities de15 scribed in paragraph (1). 

16 (d) PUBLIC PARTICIPATION.—The Commission and 

17 applicable State and local development districts shall en18 courage and assist, to the maximum extent practicable, 

19 public participation in the development, revision, and im20 plementation of all plans and programs under this Act. 

21 SEC. 8. PROGRAM DEVELOPMENT CRITERIA. 

22 (a) IN GENERAL.—In considering programs and 

23 projects to be provided assistance under this Act, and in 

24 establishing a priority ranking of the requests for assist25 ance provided by the Commission, the Commission shall 
26

•HR 1695 IH 

1 follow procedures that ensure, to the maximum extent 

2 practicable, consideration of—

3 (1) the relationship of the project to overall re4 gional development; 

5 (2) the economic distress of an area, including 

6 the per capita income, outmigration, poverty and un7 employment rates, and other socioeconomic indica8 tors for the area; 

9 (3) the financial resources available to the ap10 plicants for assistance seeking to carry out the 

11 project, with emphasis on ensuring that projects are 

12 adequately financed to maximize the probability of 

13 successful economic development; 

14 (4) the importance of the project in relation to 

15 other projects that may be in competition for the 

16 same funds; 

17 (5) the prospects that the project for which as18 sistance is sought will improve, on a continuing rath19 er than a temporary basis, the opportunities for em20 ployment, the average level of income, or the eco21 nomic development of the area served by the project; 

22 (6) the extent to which the project design pro23 vides for detailed outcome measurements by which 

24 grant expenditures and the results of the expendi25 tures may be evaluated; and 
27

•HR 1695 IH 

1 (7) the preservation of multiple uses, or con2 servation, of natural resources. 

3 (b) NO RELOCATION ASSISTANCE.—No financial as4 sistance authorized by this Act shall be used to assist an 

5 establishment in relocating from 1 area to another. 

6 (c) REDUCTION OF FUNDS.—Funds may be provided 

7 for a program or project in a State under this Act only 

8 if the Commission determines that the level of Federal or 

9 State financial assistance provided under a law other than 

10 this Act, for the same type of program or project in the 

11 same area of the State within the region, will not be re12 duced as a result of funds made available by this Act. 

13 SEC. 9. APPROVAL OF DEVELOPMENT PLANS AND 

14 PROJECTS. 

15 (a) IN GENERAL.—A State or regional development 

16 plan or any multistate subregional plan that is proposed 

17 for development under this Act shall be reviewed by the 

18 Commission. 

19 (b) EVALUATION BY STATE MEMBER.—An applica20 tion for a grant or any other assistance for a project under 

21 this Act shall be made through and evaluated for approval 

22 by the State member of the Commission representing the 

23 applicant. 

24 (c) CERTIFICATION.—An application for a grant or 

25 other assistance for a project shall be approved only on 
28

•HR 1695 IH 

1 certification by the State member and Federal cochair2 person that the application for the project—

3 (1) describes ways in which the project complies 

4 with any applicable State development plan; 

5 (2) meets applicable criteria under section 8; 

6 (3) provides adequate assurance that the pro7 posed project will be properly administered, oper8 ated, and maintained; and 

9 (4) otherwise meets the requirements of this 

10 Act. 

11 (d) VOTES FOR DECISIONS.—Upon certification of an 

12 application for a grant or other assistance for a specific 

13 project under this section, an affirmative vote of the Com14 mission under section 3(c) shall be required for approval 

15 of the application. 

16 SEC. 10. CONSENT OF STATES. 

17 Nothing in this Act requires any State to engage in 

18 or accept any program under this Act without the consent 

19 of the State. 

20 SEC. 11. RECORDS. 

21 (a) RECORDS OF THE COMMISSION.—

22 (1) IN GENERAL.—The Commission shall main23 tain accurate and complete records of all trans24 actions and activities of the Commission. 
29

•HR 1695 IH 

1 (2) AVAILABILITY.—All records of the Commis2 sion shall be available for audit and examination by 

3 the Comptroller General of the United States (in4 cluding authorized representatives of the Comp5 troller General). 

6 (b) RECORDS OF RECIPIENTS OF FEDERAL ASSIST7 ANCE.—

8 (1) IN GENERAL.—A recipient of Federal funds 

9 under this Act shall, as required by the Commission, 

10 maintain accurate and complete records of trans11 actions and activities financed with Federal funds 

12 and report on the transactions and activities to the 

13 Commission. 

14 (2) AVAILABILITY.—All records required under 

15 paragraph (1) shall be available for audit by the 

16 Comptroller General of the United States, and the 

17 Commission (including authorized representatives of 

18 the Comptroller General, and the Commission). 

19 SEC. 12. ANNUAL REPORT. 

20 Not later than 180 days after the end of each fiscal 

21 year, the Commission shall submit to the President and 

22 to Congress a report describing the activities carried out 

23 under this Act. 
30

•HR 1695 IH 

1 SEC. 13. AUTHORIZATION OF APPROPRIATIONS. 

2 (a) IN GENERAL.—There is authorized to be appro3 priated to the Commission to carry out this Act 

4 $40,000,000 for each of fiscal years 2006 through 2010, 

5 to remain available until expended. 

6 (b) ADMINISTRATIVE EXPENSES.—Not more than 5 

7 percent of the amount appropriated under subsection (a) 

8 for a fiscal year shall be used for administrative expenses 

9 of the Commission. 

10 SEC. 14. TERMINATION OF COMMISSION. 

11 This Act shall have no force or effect on or after Oc12 tober 1, 2010. 

13 SEC. 15. REGION OF NORTHEAST REGIONAL DEVELOP14 MENT COMMISSION. 

15 (a) IN GENERAL.—The region of the Northeast Re16 gional Development Commission shall consist of the fol17 lowing: [To Be Supplied (to include all appropriate eco18 nomically distressed counties and economically distressed 

19 areas within other counties)]. 

20 (b) ADDITION OF COUNTIES AND AREAS.—

21 (1) RECOMMENDATIONS.—As part of an annual 

22 report submitted under section 12, the Commission 

23 may recommend additional counties or areas for in24 clusion in the region. 

25 (2) AREAS OF ECONOMIC DISTRESS.—The Com26 mission may recommend that an entire county be in-
31

•HR 1695 IH 

1 cluded in the region on the basis of distressed areas 

2 within the county. 

3 (3) ASSESSMENTS OF ECONOMIC CONDI4 TIONS.—The Commission may provide technical and 

5 financial assistance to a county that is not included 

6 in the region for the purpose of conducting an eco7 nomic assessment of the county. The results of such 

8 an assessment may be used by the Commission in 

9 making recommendations under paragraph (1). 

10 (c) LIMITATION.—A county eligible for assistance 

11 from the Appalachian Regional Commission under subtitle 

12 IV of title 40, United States Code, shall not be eligible 

13 for assistance from the Northeast Regional Development 

14 Commission.

Æ