II

105TH CONGRESS

2D SESSION S. 1647

To reauthorize and make reforms to programs authorized by the Public

Works and Economic Development Act of 1965.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 12, 1998

Mr. BAUCUS (by request) (for himself, Ms. SNOWE, Mr. LIEBERMAN, Mr.

KEMPTHORNE, Mr. DASCHLE, Mr. DODD, Mr. DURBIN, Mr. LAUTENBERG, Ms. COLLINS, Mr. JOHNSON, and Mr. KENNEDY) introduced the

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

A BILL

To reauthorize and make reforms to programs authorized

by the Public Works and Economic Development Act

of 1965.

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

3 SECTION 1. SHORT TITLE; EFFECTIVE DATE.

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

5 ‘‘Economic Development Partnership Act of 1998’’.

6 (b) EFFECTIVE DATE.—Except as otherwise ex7 pressly provided, the provisions of this Act and the amend8 ments made by this Act shall take effect as determined
2

•S 1647 IS

1 by the Secretary of Commerce (hereinafter referred to as

2 the Secretary), but not later than three months after the

3 date of the enactment of this Act.

4 SEC. 2. REAUTHORIZATION OF PUBLIC WORKS AND ECO5 NOMIC DEVELOPMENT ACT OF 1965.

6 The Public Works and Economic Development Act of

7 1965 (42 U.S.C. 3131 et seq.) is amended by striking all

8 after the first section and inserting the following:

9 ‘‘SEC. 2. FINDINGS AND DECLARATION.

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

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

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

13 United States, but that some of our regions, coun14 ties, and communities are suffering substantial and

15 persistent unemployment and underemployment that

16 cause hardship to many individuals and their fami17 lies, and waste invaluable human resources;

18 ‘‘(2) to overcome this problem the Federal Gov19 ernment, in cooperation with the States, should help

20 areas and regions of substantial and persistent un21 employment and underemployment to take effective

22 steps in planning and financing their public works

23 and economic development;

24 ‘‘(3) Federal financial assistance, including

25 grants for public works and development facilities to
3

•S 1647 IS

1 communities, industries, enterprises, and individuals

2 in areas needing development should enable such

3 areas to help themselves achieve lasting improve4 ment and enhance the domestic prosperity by the es5 tablishment of stable and diversified local economies,

6 sustainable development, and improved local condi7 tions, if such assistance is preceded by and consist8 ent with sound, long-range economic planning; and

9 ‘‘(4) under the provisions of this Act, new em10 ployment opportunities should be created by develop11 ing and expanding new and existing public works

12 and other facilities and resources rather than by

13 merely transferring jobs from one area of the United

14 States to another, and by supporting firms and in15 dustries which add to the growth of the nation’s

16 economy through improved technology, increased ex17 ports, and the supply of goods and services to satisfy

18 unmet demand.

19 ‘‘(b) DECLARATION.—Congress declares that, in fur20 therance of maintaining the national economy at a high

21 level—

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

23 should be made available to both rural and urban

24 areas;
4

•S 1647 IS

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

2 for planning for economic development prior to the

3 actual occurrences of economic distress in order to

4 avoid such condition; and

5 ‘‘(3) Such assistance should be used for long6 term economic rehabilitation in areas where long7 term economic deterioration has occurred or is tak8 ing place.

9 ‘‘TITLE I—ECONOMIC DEVELOPMENT

10 PARTNERSHIPS COOPERATION AND

11 COORDINATION

12 ‘‘SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT

13 PARTNERSHIPS.

14 ‘‘(a) IN GENERAL.—In providing assistance under

15 this Act, the Secretary shall cooperate with States and

16 other entities to assure that, consistent with national ob17 jectives, Federal programs are compatible with and fur18 ther the objectives of State, regional and local economic

19 development plans and comprehensive economic develop20 ment strategies.

21 ‘‘(b) TECHNICAL ASSISTANCE.—The Secretary shall

22 provide such technical assistance to States, local govern23 mental subdivisions of States, sub-State regional organiza24 tions (including organizations which cross State bound25 aries, and multi-State regional organizations as the Sec-
5

•S 1647 IS

1 retary determines may be necessary or desirable to allevi2 ate economic distress, encourage and support public-pri3 vate partnerships for the formation and improvement of

4 economic development strategies which promote the

5 growth of the national economy, stimulate modernization

6 and technological advances in the generation and commer7 cialization of goods and services, and enhance the effec8 tiveness of American firms in the global economy.

9 ‘‘(c) INTERGOVERNMENTAL REVIEW.—The Secretary

10 shall prescribe regulations which will assure that appro11 priate State and local governmental authorities have been

12 given a reasonable opportunity to review and comment

13 upon proposed projects which the Secretary determines

14 may have a significant direct impact on the economy of

15 the area.

16 ‘‘(d) COOPERATIVE AGREEMENTS.—The Secretary

17 may enter into a cooperative agreement with any two or

18 more adjoining States, or an organization thereof, in sup19 port of effective economic development. Each such agree20 ment shall provide for suitable participation by other gov21 ernmental and nongovernmental parties representative of

22 significant interests in and perspectives on economic devel23 opment in the area.
6

•S 1647 IS

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

2 ‘‘Each Federal department and agency, in accordance

3 with applicable laws and within the limits of available

4 funds, shall exercise its powers, duties and functions, and

5 shall cooperate with the Secretary in such manner as will

6 assist the Secretary in carrying out the objectives of this

7 Act.

8 ‘‘SEC. 103. COORDINATION.

9 ‘‘The Secretary shall actively coordinate with other

10 Federal programs, States, economic development districts,

11 and other appropriate planning and development organiza12 tions the activities relating to the requirements for com13 prehensive economic development strategies and making

14 grants under this Act.

15 ‘‘SEC. 104. NATIONAL ADVISORY COMMITTEE.

16 ‘‘The Secretary may appoint a National Public Advi17 sory Committee on Regional Economic Development which

18 shall consist of twenty-five members and shall be com19 posed of representatives of labor, management, agri20 culture, State and local governments, Federal agencies,

21 and the public in general. From the members appointed

22 to such Committee the Secretary shall designate a Chair23 man. Such Committee, or any duly established subcommit24 tee thereof, shall from time to time make recommenda25 tions to the Secretary relative to the carrying out of the

26 Secretary’s duties under this Act, including the coordina-
7

•S 1647 IS

1 tion of activities as provided in section 103. Such Commit2 tee shall hold not less than two meetings during each cal3 endar year, and shall be governed by the provisions of the

4 Federal Advisory Committee Act.

5 ‘‘TITLE II—GRANTS FOR PUBLIC WORKS

6 AND ECONOMIC DEVELOPMENT

7 ‘‘SEC. 201. PUBLIC WORKS GRANTS.

8 ‘‘(a) Upon the application of any eligible recipient the

9 Secretary may make direct grants for acquisition or devel10 opment of land improvements for public works, public

11 service, or development facility usage, and the acquisition,

12 design and engineering, construction, rehabilitation, alter13 ation, expansion, or improvement of such facilities, includ14 ing related machinery and equipment.

15 ‘‘(b) The Secretary may provide assistance under this

16 section only if the Secretary finds that—

17 ‘‘(1) the project for which financial assistance is

18 sought will directly or indirectly—

19 ‘‘(A) tend to improve the opportunities, in

20 the area where such project is or will be lo21 cated, for the successful establishment or ex22 pansion of industrial or commercial plants or

23 facilities;
8

•S 1647 IS

1 ‘‘(B) otherwise assist in the creation of ad2 ditional long-term employment opportunities of

3 such area;

4 ‘‘(C) primarily benefit the long-term unem5 ployed and members of low-income families; or

6 ‘‘(D) in the case of projects within areas

7 described in section 302(a)(8), the project will

8 enhance the economic growth potential of the

9 area or result in additional long-term employ10 ment opportunities commensurate with the

11 amount of Federal financial assistance re12 quested;

13 ‘‘(2) the project for which a grant is requested

14 will fulfill a pressing need of the area, or part there15 of, in which it is, or will be, located; and

16 ‘‘(3) the area for which a project is to be under17 taken has a satisfactory comprehensive economic de18 velopment strategy as provided by section 303 and

19 such project is consistent with such strategy.

20 ‘‘(c) In the case of an area described in section

21 302(a)(4), the Secretary may provide assistance only if the

22 Secretary finds that the project to be undertaken will pro23 vide immediate useful work to unemployed and under24 employed persons in that area.
9

•S 1647 IS

1 ‘‘(d) Not more than 15 per centum of the appropria2 tions made pursuant to this section may be expended in

3 any one State.

4 ‘‘SEC. 202. CONSTRUCTION COST INCREASES.

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

6 grant) has been made by the Secretary under this title

7 or made, before the effective date of the Economic Devel8 opment Partnership Act of 1998, under title I of this act,

9 as in effect before such effective date, for a construction

10 project and after such grant has been made but before

11 completion of the project, the cost of such project based

12 upon the designs and specifications which were the basis

13 of the grant has been increased because of increases in

14 costs, the amount of such grant may be increased by an

15 amount equal to the percentage increase, as determined

16 by the Secretary, in such costs, but in no event shall the

17 percentage of the Federal share of such project exceed

18 that originally provided for in such grant.

19 ‘‘SEC. 203. PLANNING AND ADMINISTRATIVE EXPENSES.

20 ‘‘(a) Upon the application of any eligible recipient the

21 Secretary may make direct grants for economic develop22 ment planning and the administrative expenses of organi23 zations undertaking such planning.

24 ‘‘(b) The planning for cities, other political subdivi25 sions, Indian tribes, and sub-State planning and develop-
10

•S 1647 IS

1 ment organizations (including areas described in section

2 302(a) and economic development districts) assisted under

3 this title shall include systematic efforts to reduce unem4 ployment and increase incomes.

5 ‘‘(c) The planning shall be a continuous process in6 volving public officials and private citizens in analyzing

7 local economies, defining development goals, determining

8 project opportunities and formulating and implementing

9 a development program.

10 ‘‘(d) The planning assistance authorized under this

11 title shall be used in conjunction with any other available

12 Federal planning assistance to assure adequate and effec13 tive planning and economical use of funds.

14 ‘‘(e) Any State plan prepared with assistance under

15 this section shall be prepared cooperatively by the State,

16 its political subdivisions, and the economic development

17 districts located in whole or in part within such State, as

18 a comprehensive economic development strategy. Upon

19 completion of any such plan, the State shall (1) certify

20 to the Secretary that in the preparation of the State plan,

21 the local and economic development district plans were

22 considered and, to the fullest extent possible, the State

23 plan is consistent with the local and economic development

24 district plans, and (2) identify any inconsistencies between

25 the State plan and the local and economic development
11

•S 1647 IS

1 district plans, with the justification for each inconsistency.

2 Any overall State economic development planning shall be

3 a part of a comprehensive planning process that shall con4 sider the provisions of public works to stimulate and chan5 nel development, economic opportunities and choices for

6 individuals, to support sound land use, to foster effective

7 transportation access, to promote sustainable develop8 ment, to enhance and protect the environment including

9 the conservation and preservation of open spaces and envi10 ronmental quality, to provide public services, and to bal11 ance physical and human resources through the manage12 ment and control of physical development. Each State re13 ceiving assistance for the preparation of a plan according

14 to the provisions of this subsection shall submit to the Sec15 retary an annual report on the planning process assisted

16 under this subsection.

17 ‘‘SEC. 204. COST SHARING.

18 ‘‘Subject to section 205, the amount of any direct

19 grant under this title for any project shall not exceed 50

20 percent of the cost of such project. In determining the

21 amount of the non-Federal share of costs or expenses, the

22 Secretary shall give due consideration to all contributions

23 both in cash and in kind, fairly evaluated, including con24 tributions of space, equipment, and services.
12

•S 1647 IS

1 ‘‘SEC. 205. SUPPLEMENTARY GRANTS.

2 ‘‘(a) IN GENERAL.—Upon the application of any eli3 gible recipient, the Secretary may make a supplementary

4 grant for a project for which the applicant is eligible but,

5 because of its economic situation, for which it cannot sup6 ply the required matching share. Included therein may be

7 supplementary grants made to enable the States and other

8 entities within areas described in section 302(a) to take

9 maximum advantage of designated Federal grant-in-aid

10 programs (as defined in subsection (b)(4) of this section),

11 direct grants-in-aid authorized under this title, and Fed12 eral grant-in-aid programs authorized by the Watershed

13 Protection and Flood Prevention Act (68 Stat. 666), and

14 the 11 watersheds authorized by the Flood Control Act

15 of December 22, 1944 (58 Stat. 887).

16 ‘‘(b) REQUIREMENTS APPLICABLE TO SUPPLE17 MENTARY GRANTS.—

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

19 The amount of any supplementary grant under this

20 title for any project shall not exceed the applicable

21 percentage established by regulations promulgated

22 by the Secretary, but in no event shall the non-Fed23 eral share of the aggregate cost of any such project

24 (including assumptions of debt) be less than 20 per25 cent of such cost, except as provided in subsection

26 (b)(6).
13

•S 1647 IS

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

2 Supplementary grants shall be made by the Sec3 retary, in accordance with such regulations as the

4 Secretary may prescribe, by increasing the amounts

5 of direct grants authorized under this title or by the

6 payment of funds appropriated under this act to the

7 heads of the departments, agencies, and instrumen8 talities of the Federal Government responsible for

9 the administration of the applicable Federal pro10 grams.

11 ‘‘(3) FEDERAL SHARE LIMITATIONS SPECIFIED

12 IN OTHER LAWS.—Notwithstanding any requirement

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

14 that may otherwise be applicable to the Federal pro15 gram involved, funds provided under this subsection

16 may be used for the purpose of increasing the Fed17 eral contribution to specific projects in areas de18 scribed in section 302(a) under such programs above

19 the fixed maximum portion of the cost of such

20 project otherwise authorized by the applicable law.

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

22 PROGRAMS DEFINED.—In this section, the term ‘des23 ignated Federal grant-in-aid programs’ means such

24 existing or future Federal grant-in-aid programs as25 sisting in the construction or equipping of facilities
14

•S 1647 IS

1 as the Secretary may, in furtherance of the purposes

2 of this Act, designate as eligible for allocation of

3 funds under this section.

4 ‘‘(5) CONSIDERATION OF RELATIVE NEED IN

5 DETERMINING AMOUNT.—In determining the

6 amount of any supplementary grant available to any

7 project under this title, the Secretary shall take into

8 consideration the relative needs of the area and the

9 nature of the project to be assisted.

10 ‘‘(6) EXCEPTIONS.—In the case of a grant to

11 an Indian tribe, the Secretary may reduce the non12 Federal share below the percentage specified in sub13 section (b)(1) or may waive the non-Federal share.

14 In the case of a grant to a State or a political sub15 division of a State which the Secretary determines

16 has exhausted its effective taxing and borrowing ca17 pacity, or of a grant to a nonprofit organization

18 which the Secretary determines has exhausted its ef19 fective borrowing capacity, the Secretary may reduce

20 the non-Federal share below the percentage specified

21 in subsection (b)(1) or may waive the non-Federal

22 share for (i) a project in an area described in section

23 302(a)(4), or (ii) a project the nature of which the

24 Secretary determines warrants the reduction or

25 waiver of the non-Federal share.
15

•S 1647 IS

1 ‘‘SEC. 206. REGULATIONS TO ASSURE RELATIVE NEEDS ARE

2 MET.

3 ‘‘The Secretary shall prescribe rules, regulations, and

4 procedures to carry out this title which will assure that

5 adequate consideration is given to the relative needs of eli6 gible areas. In prescribing such rules, regulations, and

7 procedures for assistance under section 201 the Secretary

8 shall consider among other relevant factors—

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

10 in the eligible areas and the duration of such unem11 ployment;

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

13 of underemployment in eligible areas; and

14 ‘‘(3) the out-migration of population for eligible

15 areas.

16 ‘‘SEC. 207. TRAINING, RESEARCH, & TECHNICAL ASSIST17 ANCE.

18 ‘‘(a) Upon the application of any eligible recipient the

19 Secretary may make direct grants for training, research,

20 and technical assistance, including grants for program

21 evaluation and economic impact analyses, which would be

22 useful in alleviating or preventing conditions of excessive

23 unemployment or underemployment. Such assistance may

24 include project planning and feasibility studies, dem25 onstrations of innovative activities or strategic economic

26 development investments, management and operational
16

•S 1647 IS

1 assistance, establishment of university centers, establish2 ment of business outreach centers, and studies evaluating

3 the needs of, and development potentialities for, economic

4 growth of areas which the Secretary finds have substantial

5 need for such assistance. The Secretary may waive the

6 non-Federal share in the case of a project under this sec7 tion, without regard to the provisions of section 204 or

8 205.

9 ‘‘(b) In carrying out the Secretary’s duties under this

10 Act, the Secretary may provide research and technical as11 sistance through members of the Secretary’s staff; the

12 payment of funds authorized for this section to depart13 ments or agencies of the Federal Government; the employ14 ment of private individuals, partnerships, firms, corpora15 tions, or suitable institutions under contracts entered into

16 for such purposes; or the award of grants under this title.

17 ‘‘SEC. 208. RELOCATION OF INDIVIDUALS AND BUSINESSES.

18 ‘‘Grants to eligible recipients shall include such

19 amounts as may be required to provide relocation assist20 ance to affected persons, as required by the Uniform Relo21 cation Assistance and Real Property Acquisition Act 1970,

22 as amended.

23 ‘‘SEC. 209. ECONOMIC ADJUSTMENT.

24 ‘‘(a) Upon the application of any eligible recipient the

25 Secretary may make direct grants for public facilities,
17

•S 1647 IS

1 public services, business development (including a revolv2 ing loan fund), planning, technical assistance, training,

3 and other assistance which demonstrably furthers the eco4 nomic adjustment objectives of this Act, including activi5 ties to alleviate long-term economic deterioration, and sud6 den and severe economic dislocations.

7 ‘‘(b) The Secretary may provide assistance under this

8 section only if the Secretary finds that—

9 ‘‘(1) the project will help the area meet a spe10 cial need arising from—

11 ‘‘(A) actual or threatened severe unemploy12 ment arising from economic dislocation, includ13 ing unemployment arising from actions of the

14 Federal Government or from compliance with

15 environmental requirements which remove eco16 nomic activities from a locality; or

17 ‘‘(B) economic adjustment problems result18 ing from severe changes in economic conditions

19 (including long-term economic deterioration);

20 and

21 ‘‘(2) the area for which a project is to be under22 taken has a satisfactory comprehensive economic de23 velopment strategy as provided by section 303 and

24 such project is consistent with such strategy. This
18

•S 1647 IS

1 subsection (b)(2) shall not apply to planning

2 projects.

3 ‘‘(c) Assistance under this section shall extend to ac4 tivities identified by communities impacted by military

5 base closures, defense contractor cutbacks, and Depart6 ment of Energy reductions, to help the communities diver7 sify their economies. Nothing in this section is intended

8 to replace the efforts of the economic adjustment program

9 of the Department of Defense.

10 ‘‘(d) Assistance under this section shall extend to

11 post-disaster activities in areas affected by natural and

12 other disasters.

13 ‘‘SEC. 210. DIRECT EXPENDITURE OR REDISTRIBUTION BY

14 RECIPIENT.

15 ‘‘Amounts from grants under section 209 of this title

16 may be used in direct expenditures by the eligible recipient

17 or through redistribution by the eligible recipient to public

18 and private entities in grants, loans, loan guarantees, pay19 ments to reduce interest on loan guarantees, or other ap20 propriate assistance, but no grant shall be made by an

21 eligible recipient to a private profit-making entity.

22 ‘‘SEC. 211. CHANGED PROJECT CIRCUMSTANCES.

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

24 grant) has been made by the Secretary under this title

25 (or made under this Act, as in effect on the day before
19

•S 1647 IS

1 the effective date of the Economic Development Partner2 ship Act of 1998) for a project, and after such grant has

3 been made but before completion of the project, the pur4 pose or scope of such project which were the basis of the

5 grant has changed, the Secretary may approve the use of

6 grant funds on such changed project if the Secretary de7 termines that such changed project meets the require8 ments of this title and that such changes are necessary

9 to enhance economic development in the area.

10 ‘‘SEC. 212. USE OF FUNDS IN PROJECTS CONSTRUCTED

11 UNDER PROJECTED COST.

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

13 grant) has been made by the Secretary under this title

14 (or made under this Act, as in effect on the day before

15 the effective date of the Economic Development Partner16 ship Act of 1998) for a construction project, and after

17 such grant has been made but before completion of the

18 project, the cost of such project based upon the designs

19 and specifications which was the basis of the grant has

20 decreased because of decreases in costs, such underrun

21 funds may be used to improve the project either directly

22 or indirectly as determined by the Secretary.

23 ‘‘SEC. 213. BASE CLOSINGS AND REALIGNMENTS.

24 ‘‘(a) LOCATION OF PROJECTS.—In any case in which

25 the Secretary determines a need for assistance under this
20

•S 1647 IS

1 title due to the closure or realignment of a military or

2 Department of Energy installation, the Secretary may

3 make such assistance available for projects to be carried

4 out on the installation and for projects to be carried out

5 in communities adversely affected by the closure or re6 alignment.

7 ‘‘(b) INTEREST IN PROPERTY.—Notwithstanding any

8 other provision of law, the Secretary may provide to an

9 eligible recipient any assistance available under this Act

10 for a project to be carried out on a military or Department

11 of Energy installation that is closed or scheduled for clo12 sure or realignment without requiring that the eligible re13 cipient have title to the property or a leasehold interest

14 in the property for any specified term.

15 ‘‘SEC. 214. PREVENTION OF UNFAIR COMPETITION.

16 ‘‘No financial assistance under this Act shall be ex17 tended to any project when the result would be to increase

18 the production of goods, materials, or commodities, or the

19 availability of services or facilities, when there is not suffi20 cient demand for such goods, materials, commodities, serv21 ices, or facilities, to employ the efficient capacity of exist22 ing competitive commercial or industrial enterprises.

23 ‘‘SEC. 215. REPORTS BY RECIPIENT.

24 ‘‘Reports to the Secretary shall be required of recipi25 ents of assistance under this Act. Such reports shall be
21

•S 1647 IS

1 at such intervals and in such manner as the Secretary

2 shall prescribe by regulation, not to exceed ten years from

3 the time of closeout of the assistance award, and shall con4 tain an evaluation of the effectiveness of the economic as5 sistance provided under this Act in meeting the need it

6 was designed to alleviate and the purposes of this Act.

7 ‘‘TITLE III—DEFINITIONS, ELIGIBILITY

8 AND COMPREHENSIVE ECONOMIC DE9 VELOPMENT STRATEGIES

10 ‘‘SEC. 301. DEFINITIONS.

11 ‘‘In this Act, unless the context otherwise requires,

12 the following definitions apply:

13 ‘‘(a) ECONOMIC DEVELOPMENT DISTRICT.—The

14 term ‘economic development district’ refers to any

15 area within the United States composed of cooperat16 ing areas described in section 302(a) and, where ap17 propriate, designated economic development centers

18 and neighboring counties or communities, which has

19 been designated by the Secretary as an economic de20 velopment district. Such term includes any economic

21 development district designated by the Secretary

22 under section 403 of this Act, as in effect on the day

23 before the effective date of the Economic Develop24 ment Partnership Act of 1998.
22

•S 1647 IS

1 ‘‘(b) ECONOMIC DEVELOPMENT CENTER.—The

2 term ‘economic development center’ refers to any

3 area within the United States which has been identi4 fied as an economic development center in an ap5 proved comprehensive economic development strat6 egy and which has been designated by the Secretary

7 as eligible for financial assistance under this Act in

8 accordance with the provisions of this section.

9 ‘‘(c) ELIGIBLE RECIPIENT.—The term ‘eligible

10 recipient’ means an area described in section 302(a),

11 an economic development district designated under

12 section 401, an Indian tribe, a State, a city or other

13 political subdivision of a State or a consortium of

14 such political subdivisions, an institution of higher

15 education or a consortium of such institutions, or a

16 public or private nonprofit organization or associa17 tion acting in cooperation with officials of such polit18 ical subdivisions. For grants made under section

19 207, ‘eligible recipient’ also includes private individ20 uals and for-profit organizations.

21 ‘‘(d) GRANT.—The term ‘grant’ includes coop22 erative agreement, as that term is used in the Fed23 eral Grant and Cooperative Agreement Act of 1977.

24 ‘‘(e) INDIAN TRIBE.—The term ‘Indian tribe’

25 means an Indian or Alaska Native tribe, band, na-
23

•S 1647 IS

1 tion, pueblo, village, or community that the Sec2 retary of the Interior acknowledges to exist as an In3 dian tribe pursuant to 25 U.S.C. section 479a–1.

4 ‘‘(f) STATE.—The terms ‘State’, ‘States’, and

5 ‘United States’ include the several States, the Dis6 trict of Columbia, the Commonwealth of Puerto

7 Rico, the Virgin Islands, Guam, American Samoa,

8 the Republic of the Marshall Islands, the Federated

9 States of Micronesia, the Republic of Palau, and the

10 Commonwealth of the Northern Mariana Islands.

11 ‘‘SEC. 302. AREA ELIGIBILITY.

12 ‘‘(a) CERTIFICATION.—In order to be eligible for as13 sistance for activities described under section 201 or 209,

14 an applicant shall certify, as part of an application for

15 such assistance, that the project is located in an area

16 which on the date of submission of such application meets

17 one or more of the following criteria:

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

19 percent or less of the national average.

20 ‘‘(2) The area has an unemployment rate one

21 percent above the national average percentage for

22 the most recent 24-month period for which statistics

23 are available.

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

25 experience a sudden economic dislocation resulting
24

•S 1647 IS

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

2 number of jobs eliminated and the effect upon the

3 employment rate of the area.

4 ‘‘(4) The area is one in which the Secretary de5 termines that any activities authorized to be under6 taken under section 201 or 209 will provide imme7 diate useful work to unemployed and underemployed

8 persons in that area, and the area is a community

9 or neighborhood (defined without regard to political

10 or other subdivisions or boundaries) which the Sec11 retary determines has one or more of the following

12 conditions:

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

14 persons;

15 ‘‘(B) Areas having substantial out-migra16 tion; or

17 ‘‘(C) Substantial unemployment.

18 ‘‘(5) The area has demonstrated long-term eco19 nomic deterioration.

20 ‘‘(6) The area has an unemployment rate, for

21 the most recent 12 month period for which statistics

22 are available, above a rate established by regulation

23 as an indicator of substantial unemployment during

24 conditions of significantly high national unemploy25 ment.
25

•S 1647 IS

1 ‘‘(7) The area is one which the Secretary has

2 determined has experienced, or may reasonably be

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

4 meet an expected rise in unemployment, or other

5 economic adjustment problems (including those

6 caused by any action or decision of the Federal Gov7 ernment).

8 ‘‘(8) The area contains a population of 250,000

9 or less and is identified in a comprehensive economic

10 development strategy as having growth potential and

11 the ability to alleviate distress within an economic

12 development district.

13 ‘‘(9) The area is experiencing severe outmigra14 tion.

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

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

17 available or, in the absence of recent Federal data, by data

18 available through the State government. Such documenta19 tion shall be accepted by the Secretary unless the Sec20 retary determines the documentation to be inaccurate. The

21 most recent statistics available shall be used.

22 ‘‘(c) SPECIAL RULE.—An area which the Secretary

23 determines is eligible for assistance because it meets 1 or

24 more of the criteria of subsection (a)(4)—
26

•S 1647 IS

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

2 sections 201(b) or 303; and

3 ‘‘(2) shall not be eligible to meet the require4 ment of section 401(a)(1)(B).

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

6 redevelopment area made before the effective date of the

7 Economic Development Partnership Act of 1998 shall not

8 be effective after such effective date.

9 ‘‘SEC. 303. COMPREHENSIVE ECONOMIC DEVELOPMENT

10 STRATEGY.

11 ‘‘(a) IN GENERAL.—The Secretary may provide as12 sistance under section 201 or 209 (except for section 209

13 planning) to an applicant for a project only if the appli14 cant submits to the Secretary, as part of an application

15 for such assistance, evidence satisfactory to the Secretary

16 of a comprehensive economic development strategy

17 which—

18 ‘‘(1) identifies the economic development prob19 lems to be addressed using such assistance;

20 ‘‘(2) identifies past, present, and projected fu21 ture economic development investments in the area

22 receiving such assistance and public and private par23 ticipants and sources of funding for such invest24 ments; and
27

•S 1647 IS

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

2 economic problems identified pursuant to paragraph

3 (a) and describes how the strategy will solve such

4 problems.

5 ‘‘(b) OTHER PLAN.—The Secretary may accept as a

6 comprehensive economic development strategy a satisfac7 tory plan prepared under another Federally supported

8 program.

9 ‘‘TITLE IV—ECONOMIC DEVELOPMENT

10 DISTRICTS

11 ‘‘SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT

12 DISTRICTS AND ECONOMIC DEVELOPMENT

13 CENTERS.

14 ‘‘(a) IN GENERAL.—In order that economic develop15 ment projects of broader geographic significance may be

16 planned and carried out, the Secretary may—

17 ‘‘(1) designate appropriate ‘economic develop18 ment districts’ within the United States with the

19 concurrence of the States in which such districts will

20 be wholly or partially located, if—

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

22 size or population, and contains sufficient re23 sources, to foster economic development on a

24 scale involving more than a single area de25 scribed in section 302(a);
28

•S 1647 IS

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

2 1 area described in section 302(a);

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

4 more areas described in section 302(a) or eco5 nomic development centers identified in an ap6 proved district comprehensive economic develop7 ment strategy as having sufficient size and po8 tential to foster the economic growth activities

9 necessary to alleviate the distress of the areas

10 described in section 302(a) within the district;

11 and

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

13 comprehensive economic development strategy

14 which includes sustainable development, ade15 quate land use and transportation planning and

16 contains a specific program for district coopera17 tion, self-help, and public investment and is ap18 proved by the State or States affected and by

19 the Secretary;

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

22 Secretary shall prescribe, such areas as the Sec23 retary may deem appropriate, if—

24 ‘‘(A) the proposed center has been identi25 fied and included in an approved district com-
29

•S 1647 IS

1 prehensive economic development strategy and

2 recommended by the State or States affected

3 for such special designation;

4 ‘‘(B) the proposed center is geographically

5 and economically so related to the district that

6 its economic growth may reasonably be expected

7 to contribute significantly to the alleviation of

8 distress in the areas described in section 302(a)

9 of the district; and

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

11 population in excess of 250,000 according to

12 the most recent Federal census; and

13 ‘‘(3) provide financial assistance in accordance

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

15 otherwise provided, for projects in economic develop16 ment centers designated under subsection (a)(2),

17 if—

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

19 of the comprehensive economic development

20 strategy of the district in which it is to be lo21 cated;

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

23 growth potential of the district or result in ad24 ditional long-term employment opportunities
30

•S 1647 IS

1 commensurate with the amount of Federal fi2 nancial assistance requested; and

3 ‘‘(C) the amount of Federal financial as4 sistance requested is reasonably related to the

5 size, population, and economic needs of the dis6 trict.

7 ‘‘(b) AUTHORITIES.—The Secretary may, under reg8 ulations prescribed by the Secretary—

9 ‘‘(1) invite the several States to draw up pro10 posed economic development district boundaries and

11 to identify potential economic development centers;

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

13 ‘‘(A) in sponsoring and assisting district

14 economic planning and development groups;

15 and

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

17 formulate district comprehensive economic de18 velopment strategies; and

19 ‘‘(3) encourage participation by appropriate

20 local governmental authorities in such economic de21 velopment districts.

22 ‘‘SEC. 402. TERMINATION OR MODIFICATION.

23 ‘‘The Secretary shall by regulation prescribe stand24 ards for the termination or modification of economic devel-
31

•S 1647 IS

1 opment districts and economic development centers des2 ignated under the authority of section 401.

3 ‘‘SEC. 403. BONUS.

4 ‘‘Subject to the 20 per centum non-Federal share re5 quired for any project by subsection 205(b)(1) of this Act,

6 the Secretary is authorized to increase the amount of

7 grant assistance authorized by sections 204 and 205 for

8 projects within designated economic development districts

9 by an amount not to exceed 10 per centum of the aggre10 gate cost of such project, in accordance with such regula11 tions as the Secretary shall prescribe if—

12 ‘‘(1) the project applicant is actively participat13 ing in the economic development activities of the dis14 trict; and

15 ‘‘(2) the project is consistent with an approved

16 district comprehensive economic development strat17 egy.

18 ‘‘SEC 404. STRATEGY PROVIDED TO APPALACHIAN RE19 GIONAL COMMISSION.

20 ‘‘Each economic development district designated by

21 the Secretary under this title shall provide that a copy

22 of the district comprehensive economic development strat23 egy be furnished to the Appalachian Regional Commission

24 established under the Appalachian Regional Development
32

•S 1647 IS

1 Act of 1965, if any part of such district is within the Ap2 palachian region.

3 ‘‘SEC. 405. PARTS NOT WITHIN AREAS DESCRIBED IN SEC4 TION 302(a).

5 ‘‘The Secretary is authorized to provide the financial

6 assistance which is available to an area described in sec7 tion 302(a) under this Act to those parts of an economic

8 development district which are not within an area de9 scribed in section 302(a), when such assistance will be of

10 a substantial direct benefit to an area described in section

11 302(a) within such district. Such financial assistance shall

12 be provided in the same manner and to the same extent

13 as is provided in this Act for an area described in section

14 302(a).

15 ‘‘TITLE V—ADMINISTRATION

16 ‘‘SEC. 501. ASSISTANT SECRETARY FOR ECONOMIC DEVEL17 OPMENT.

18 ‘‘The Secretary will administer this Act with the as19 sistance of an Assistant Secretary of Commerce for Eco20 nomic Development to be appointed by the President by

21 and with the advice and consent of the Senate. The Assist22 ant Secretary of Commerce for Economic Development

23 will perform such functions as the Secretary may prescribe

24 and will serve as the administrator of the Economic Devel-
33

•S 1647 IS

1 opment Administration within the Department of Com2 merce.

3 ‘‘SEC. 502. ECONOMIC DEVELOPMENT INFORMATION

4 CLEARINGHOUSE.

5 ‘‘It shall be a duty of the Secretary in administering

6 this Act—

7 ‘‘(a) to serve as a central information clearing8 house on matters relating to economic development,

9 economic, adjustment, disaster recovery, and defense

10 conversion programs and activities of the Federal

11 and State governments, including political subdivi12 sions of the States;

13 ‘‘(b) to help potential and actual applicants for

14 economic development, economic adjustment, disas15 ter recovery, and defense conversion assistance

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

17 applying for such assistance, including financial and

18 technical assistance; and

19 ‘‘(c) to aid areas described in section 302(a)

20 and other areas by furnishing to interested individ21 uals, communities, industries, and enterprises within

22 such areas any technical information, market re23 search, or other forms of assistance, information, or

24 advice which would be useful in alleviating or pre-
34

•S 1647 IS

1 venting conditions of excessive unemployment or

2 underemployment within such areas.

3 ‘‘SEC. 503. CONSULTATION WITH OTHER PERSONS AND

4 AGENCIES.

5 ‘‘(a) CONSULTATION ON PROBLEMS RELATING TO

6 EMPLOYMENT.—The Secretary is authorized from time to

7 time to call together and confer with any persons, includ8 ing representatives of labor, management, agriculture, and

9 government, who can assist in meeting the problems of

10 area and regional unemployment or underemployment.

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

12 The Secretary may make provisions for such consultation

13 with interested departments and agencies as the Secretary

14 may deem appropriate in the performance of the functions

15 vested in the Secretary by this Act.

16 ‘‘SEC. 504. ADMINISTRATION, OPERATION, AND MAINTE17 NANCE.

18 ‘‘No Federal assistance shall be approved under this

19 Act unless the Secretary is satisfied that the project for

20 which Federal assistance is granted will be properly and

21 efficiently administered, operated, and maintained.

22 ‘‘SEC. 505. FIRMS DESIRING FEDERAL CONTRACTS.

23 ‘‘The Secretary may furnish the procurement divi24 sions of the various departments, agencies, and other in25 strumentalities of the Federal Government with a list con-
35

•S 1647 IS

1 taining the names and addresses of business firms which

2 are located in areas of high economic distress and which

3 are desirous of obtaining Government contracts for the

4 furnishing of supplies or services, and designating the sup5 plies and services such firms are engaged in providing.

6 ‘‘SEC. 506. AMENDMENT TO TITLE 5, U.S.C.

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

8 amended by striking ‘Administrator for Economic Devel9 opment.’

10 ‘‘TITLE VI—MISCELLANEOUS

11 ‘‘SEC. 601. POWERS OF SECRETARY.

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

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

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

15 judicially noticed;

16 ‘‘(2) subject to the civil-service and classifica17 tion laws, select, employ, appoint, and fix the com18 pensation of such personnel as may be necessary to

19 carry out the provisions of this Act;

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

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

22 Secretary may deem advisable;

23 ‘‘(4) request directly from any executive depart24 ment, bureau, agency, board, commission, office,

25 independent establishment, or instrumentality infor-
36

•S 1647 IS

1 mation, suggestions, estimates, and statistics needed

2 to carry out the purposes of this Act; and each de3 partment, bureau, agency, board, commission, office,

4 establishment, or instrumentality is authorized to

5 furnish such information, suggestions, estimates,

6 and statistics directly to the Secretary;

7 ‘‘(5) consistent with the Debt Collection Im8 provement Act of 1996, under regulations prescribed

9 by the Secretary, assign or sell at public or private

10 sale, or otherwise dispose of for cash or credit, in

11 the Secretary’s discretion and upon such terms and

12 conditions and for such consideration as the Sec13 retary determines to be reasonable, any evidence of

14 debt, contract, claim, personal property, or security

15 assigned to or held by the Secretary in connection

16 with assistance extended under the Act, and collect

17 or compromise all obligations assigned to or held by

18 the Secretary in connection with such assistance

19 until such time as such obligations may be referred

20 to the Attorney General for suit or collection;

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

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

23 upon such terms and conditions and for such consid24 eration as the Secretary determines to be reasonable,

25 any real or personal property conveyed to or other-
37

•S 1647 IS

1 wise acquired by the Secretary in connection with

2 assistance extended under this Act;

3 ‘‘(7) consistent with the Debt Collection Im4 provement Act of 1996, pursue to final collection, by

5 way of compromise or other administrative action,

6 prior to reference to the Attorney General, all claims

7 against third parties assigned to the Secretary in

8 connection with assistance extended under this Act;

9 ‘‘(8) acquire, in any lawful manner, any prop10 erty (real, personal, or mixed, tangible or intangi11 ble), whenever necessary or appropriate in connec12 tion with assistance extended under this Act;

13 ‘‘(9) in addition to any powers, functions, privi14 leges, and immunities otherwise vested in the Sec15 retary, take any action, including the procurement of

16 the services of attorneys by contract, determined by

17 the Secretary to be necessary or desirable in making,

18 purchasing, servicing, compromising, modifying, liq19 uidating, or otherwise administratively dealing with

20 assets held in connection with financial assistance

21 extended under this Act;

22 ‘‘(10) employ experts and consultants or organi23 zations as authorized by section 3109 of title 5,

24 United States Code, compensate individuals so em25 ployed, including travel time, and allow them, while
38

•S 1647 IS

1 away from their homes or regular places of business,

2 travel expenses (including per diem in lieu of sub3 sistence) as authorized by section 5703 of title 5,

4 United States Code, for persons in the Government

5 service employed intermittently, while so employed,

6 except that contracts for such employment may be

7 renewed annually;

8 ‘‘(11) establish performance measures for

9 grants and other assistance provided under this Act,

10 and use such performance measures to evaluate the

11 economic impact of economic development assistance

12 programs; the establishment and use of such per13 formance measures to be provided by the Secretary

14 through members of his staff, through the employ15 ment of appropriate parties under contracts entered

16 into for such purposes, or through grants to such

17 parties for such purposes, using any funds made

18 available by appropriations to carry out this Act;

19 ‘‘(12) sue and be sued in any court of record

20 of a State having general jurisdiction or in any

21 United States district court, and jurisdiction is con22 ferred upon such district court to determine such

23 controversies without regard to the amount in con24 troversy; but no attachment, injunction, garnish25 ment, or other similar process, mesne or final, shall
39

•S 1647 IS

1 be issued against the Secretary or the Secretary’s

2 property; and

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

5 carrying out the provisions of this Act.

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

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

8 authority to obtain deficiency judgments or otherwise in

9 the case of mortgages assigned to the Secretary.

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

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

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

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

17 insurance does not exceed $1,000.

18 ‘‘(d) PROPERTY INTERESTS.—The powers of the Sec19 retary, pursuant to this section, in relation to property ac20 quired by the Secretary in connection with assistance ex21 tended under this Act, shall extend to property interests

22 of the Secretary in relation to projects approved under the

23 Public Works and Economic Development Act of 1965,

24 title I of the Public Works Employment Act of 1976, title

25 II of the Trade Act of 1974, and the Community Emer-
40

•S 1647 IS

1 gency Drought Relief Act of 1977. Property interests in

2 connection with grants may be released, in whole or in

3 part, in the Secretary’s discretion, after 20 years from the

4 date of grant disbursement.

5 ‘‘(e) POWERS OF CONVEYANCE AND EXECUTION.—

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

7 Secretary, deeds of conveyance, deeds of release, assign8 ments and satisfactions of mortgages, and any other writ9 ten instrument relating to real or personal property or any

10 interest therein acquired by the Secretary pursuant to the

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

12 or by any officer or agent appointed by the Secretary for

13 such purpose, without the execution of any express delega14 tion of power or power of attorney.

15 ‘‘SEC. 602. MAINTENANCE OF STANDARDS.

16 ‘‘The Secretary shall continue to implement and en17 force the provisions of section 712 of this Act, as in effect

18 on the day before the effective date of the Economic Devel19 opment Partnership Act of 1998.

20 ‘‘SEC. 603. ANNUAL REPORT TO CONGRESS.

21 ‘‘The Secretary shall transmit a comprehensive and

22 detailed annual report to Congress of the Secretary’s ac23 tivities under this Act for each fiscal year beginning with

24 the fiscal year ending September 30, 1999. Such report

25 shall be printed and shall be transmitted to Congress not
41

•S 1647 IS

1 later than July 1 of the year following the fiscal year with

2 respect to which such report is made.

3 ‘‘SEC. 604. USE OF OTHER FACILITIES.

4 ‘‘(a) DELEGATION OF FUNCTIONS TO OTHER FED5 ERAL DEPARTMENTS AND AGENCIES.—The Secretary

6 may delegate to the heads of other departments and agen7 cies of the Federal Government any of the Secretary’s

8 functions, powers, and duties under this Act as the Sec9 retary may deem appropriate, and authorize the redelega10 tion of such functions, powers, and duties by the heads

11 of such departments and agencies.

12 ‘‘(b) TRANSFER BETWEEN DEPARTMENTS.—Funds

13 authorized to be appropriated under this Act may be

14 transferred between departments and agencies of the Gov15 ernment, if such funds are used for the purposes for which

16 they are specifically authorized and appropriated.

17 ‘‘(c) FUNDS TRANSFERRED FROM OTHER DEPART18 MENTS AND AGENCIES.—In order to carry out the objec19 tives of this Act, the Secretary may accept transfers of

20 funds from other departments and agencies of the Federal

21 Government if the funds are used for the purposes for

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

23 funds are specifically authorized and appropriated. Such

24 transferred funds shall remain available until expended,

25 and may be transferred to and merged with the appropria-
42

•S 1647 IS

1 tions under the heading ‘salaries and expenses’ by the Sec2 retary to the extent necessary to administer the program.

3 ‘‘SEC. 605. PENALTIES.

4 ‘‘(a) FALSE STATEMENTS; SECURITY OVER5 VALUATION.—Whoever makes any statement knowing it

6 to be false, or whoever willfully overvalues any security,

7 for the purpose of obtaining for such person or for any

8 applicant any financial assistance under this Act or any

9 extension of such assistance by renewal, deferment or ac10 tion, or otherwise, or the acceptance, release, or substi11 tution of security for such assistance, or for the purpose

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

13 for the purpose of obtaining money, property, or anything

14 of value, under this Act, shall be fined under title 18,

15 United States Code, imprisoned for not more than 5 years,

16 or both.

17 ‘‘(b) EMBEZZLEMENT AND FRAUD-RELATED

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

19 the Secretary in the administration of this Act—

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

21 misapplies any moneys, funds, securities, or other

22 things of value, whether belonging to such person or

23 pledged or otherwise entrusted to such person;

24 ‘‘(2) with intent to defraud the Secretary or

25 any other body politic or corporate, or any individ-
43

•S 1647 IS

1 ual, or to deceive any officer, auditor, or examiner,

2 makes any false entry in any book, report, or state3 ment of or to the Secretary or without being duly

4 authorized draws any orders or issues, puts forth, or

5 assigns any note, debenture, bond, or other obliga6 tion, or draft, bill of exchange, mortgage, judgment,

7 or decree thereof;

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

9 shares in or receives directly or indirectly any

10 money, profit, property, or benefit through any

11 transaction, loan, grant, commission, contract, or

12 any other act of the Secretary; or

13 ‘‘(4) gives any unauthorized information con14 cerning any future action or plan of the Secretary

15 which might affect the value of securities, or having

16 such knowledge invests or speculates, directly or in17 directly, in the securities or property of any com18 pany or corporation receiving loans, grants, or other

19 assistance from the Secretary, shall be fined under

20 title 18, United States Code, imprisoned for not

21 more than 5 years, or both.

22 ‘‘SEC. 606. EMPLOYMENT OF EXPEDITERS AND ADMINIS23 TRATIVE EMPLOYEES.

24 ‘‘No financial assistance shall be extended by the Sec25 retary under this Act to any business enterprise unless
44

•S 1647 IS

1 the owners, partners, or officers of such business enter2 prise—

3 ‘‘(1) certify to the Secretary the names of any

4 attorneys, agents, and other persons engaged by or

5 on behalf of such business enterprise for the purpose

6 of expediting applications made to the Secretary for

7 assistance of any sort, under this Act, and the fees

8 paid or to be paid to any such person; and

9 ‘‘(2) execute an agreement binding such busi10 ness enterprise, for a period of 2 years after such

11 assistance is rendered by the Secretary to such busi12 ness enterprise, to refrain from employing, tendering

13 any office or employment to, or retaining for profes14 sional services, any person who, on the date such as15 sistance or any part thereof was rendered, or within

16 the 1-year period ending on such date, shall have

17 served as an officer, attorney, agent, or employee,

18 occupying a position or engaging in activities which

19 the Secretary determines involves discretion with re20 spect to the granting of assistance under this Act.

21 ‘‘SEC. 607. MAINTENANCE OF RECORDS OF APPROVED AP22 PLICATIONS FOR FINANCIAL ASSISTANCE;

23 PUBLIC INSPECTION.

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

25 Secretary shall maintain as a permanent part of the
45

•S 1647 IS

1 records of the Department of Commerce a list of applica2 tions approved for financial assistance under this Act,

3 which shall be kept available for public inspection during

4 the regular business hours of the Department of Com5 merce.

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

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

8 is approved:

9 ‘‘(1) The name of the applicant and, in the case

10 of corporate applications, the names of the officers

11 and directors thereof.

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

13 assistance for which application is made.

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

15 financial assistance are to be used.

16 ‘‘SEC. 608. RECORDS AND AUDIT.

17 ‘‘(a) RECORDKEEPING AND DISCLOSURE REQUIRE18 MENTS.—Each recipient of assistance under this Act shall

19 keep such records as the Secretary shall prescribe, includ20 ing records which fully disclose the amount and the dis21 position by such recipient of the proceeds of such assist22 ance, the total cost of the project or undertaking in con23 nection with which such assistance is given or used, and

24 the amount and nature of that portion of the cost of the
46

•S 1647 IS

1 project or undertaking supplied by other sources, and such

2 other records as will facilitate an effective audit.

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

4 AUDIT.—The Secretary, the Inspector General of the De5 partment of Commerce, and the Comptroller General of

6 the United States, or any of their duly authorized rep7 resentatives, shall have access for the purpose of audit and

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

9 of the recipient that are pertinent to assistance received

10 under this Act.

11 ‘‘SEC. 609. PROHIBITION AGAINST A STATUTORY CON12 STRUCTION WHICH MIGHT CAUSE DIMINU13 TION IN OTHER FEDERAL ASSISTANCE.

14 ‘‘All financial and technical assistance authorized

15 under this Act shall be in addition to any Federal assist16 ance previously authorized, and no provision of this Act

17 shall be construed as authorizing or permitting any reduc18 tion or diminution in the proportional amount of Federal

19 assistance which any State or other entity eligible under

20 this Act would otherwise be entitled to receive under the

21 provisions of any other Act.

22 ‘‘SEC. 610. ACCEPTANCE OF APPLICANTS’ CERTIFICATIONS.

23 ‘‘The Secretary may accept, when deemed appro24 priate, the applicants’ certifications to meet the require25 ments of this Act.
47

•S 1647 IS

1 ‘‘TITLE VII—FUNDING

2 ‘‘SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

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

4 this Act $397,969,000 for fiscal year 1999 and such sums

5 as may be necessary for each of fiscal years 2000 through

6 2002, such sums to remain available until expended.

7 ‘‘SEC. 702. DEFENSE CONVERSION ACTIVITIES.

8 ‘‘In addition to the appropriations authorized by sec9 tion 701, there are authorized to be appropriated to carry

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

11 assistance for defense conversion activities. Such funding

12 may include pilot projects for privatization and economic

13 development activities for closed or realigned military or

14 Department of Energy installations. Such sums shall re15 main available until expended.

16 ‘‘SEC. 703. DISASTER ECONOMIC RECOVERY ACTIVITIES.

17 ‘‘In addition to the appropriations authorized by sec18 tion 701, there are authorized to be appropriated to carry

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

20 assistance for disaster economic recovery activities. Such

21 sums shall remain available until expended.’’

22 SEC. 3. SAVINGS PROVISIONS.

23 (a) EXISTING RIGHTS, DUTIES, AND OBLIGATIONS

24 NOT AFFECTED.—This Act shall not be construed as af25 fecting the validity of any right, duty, or obligation of the
48

•S 1647 IS

1 United States or any other person arising under or pursu2 ant to any contract, loan, or other instrument or agree3 ment which was in effect on the day before the effective

4 date of this Act.

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

6 proceeding commenced by or against any officer or em7 ployee of the Economic Development Administration shall

8 abate by reason of the enactment of this Act.

9 (c) LIQUIDATING ACCOUNT.—The Economic Devel10 opment Revolving Fund hitherto established under section

11 203 of the Public Works and Economic Development Act

12 of 1965 shall continue to be available to the Secretary as

13 a liquidating account as defined under section 502 of the

14 Federal Credit Reform Act of 1990 for payment of obliga15 tions and expenses in connection with financial assistance

16 extended under this Act, said Act of 1965, the Area Rede17 velopment Act, and the Trade Act of 1974.

18 (d) ADMINISTRATION.—The Secretary shall take

19 such actions as authorized before the effective date of this

20 Act as necessary or appropriate to administer and liq21 uidate existing grants, contracts, agreements, loans, obli22 gations, debentures, or guarantees heretofore made by the

23 Secretary or the Secretary’s delegatee pursuant to provi-
49

•S 1647 IS

1 sions in effect immediately prior to the effective date of

2 this Act.

Æ