I 

111TH CONGRESS 

2D SESSION H. R. 5897 

To reauthorize and improve programs and activities carried out under the 

Public Works and Economic Development Act of 1965, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 28, 2010 

Mr. OBERSTAR (for himself, Ms. NORTON, Mr. RAHALL, Mr. FILNER, Ms. 

EDDIE BERNICE JOHNSON of Texas, Mr. CUMMINGS, Mr. BISHOP of 

New York, Mr. CARNAHAN, Ms. HIRONO, Mr. ARCURI, Mr. KAGEN, Ms. 

RICHARDSON, Mr. HARE, and Mr. JOHNSON of Georgia) 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 reauthorize and improve programs and activities carried 

out under the Public Works and Economic Development 

Act of 1965, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Economic Revitalization and Innovation Act of 2010’’. 

6 (b) TABLE OF CONTENTS.— 


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Sec. 1. Short title; table of contents. 

Sec. 2. Amendments to Public Works and Economic Development Act of 1965. 

Sec. 3. Findings and declarations. 

Sec. 4. Definitions. 

TITLE I—ECONOMIC DEVELOPMENT PARTNERSHIPS 

COOPERATION AND COORDINATION 

Sec. 101. Establishment of economic development partnerships. 

Sec. 102. Encouragement of certain coordination. 

Sec. 103. Coordination with respect to high-speed rail. 

TITLE II—GRANTS FOR PUBLIC WORKS AND ECONOMIC 

DEVELOPMENT 

Sec. 201. Grants for public works and economic development. 

Sec. 202. Grants for planning and grants for administrative expenses. 

Sec. 203. Cost sharing. 

Sec. 204. Grants for training, research, and technical assistance. 

Sec. 205. Financial assistance for business incubators and science and research 

parks. 

Sec. 206. Grants for economic adjustment. 

Sec. 207. Sustainable economic development demonstration program. 

Sec. 208. Job creation goals. 

Sec. 209. Prohibition with respect to use of assistance. 

TITLE III—ELIGIBILITY; COMPREHENSIVE ECONOMIC 

DEVELOPMENT STRATEGIES 

Sec. 301. Eligibility of areas. 

Sec. 302. Comprehensive economic development strategies. 

TITLE IV—ECONOMIC DEVELOPMENT DISTRICTS 

Sec. 401. Designation of economic development districts. 

Sec. 402. Termination or modification of economic development districts. 

TITLE V—ADMINISTRATION 

Sec. 501. Consultation with other persons and agencies. 

Sec. 502. Performance evaluations of grant recipients. 

Sec. 503. Economic development representatives. 

Sec. 504. Limitation on certain positions. 

TITLE VI—MISCELLANEOUS 

Sec. 601. Annual report to Congress. 

Sec. 602. Maintenance of effort. 

TITLE VII—FUNDING 

Sec. 701. General authorization of appropriations. 

Sec. 702. Funding for grants for planning and grants for administrative expenses. 

Sec. 703. Funding for financial assistance for business incubators and science 

and research parks. 


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Sec. 704. Funding for sustainable economic development demonstration program. 

Sec. 705. Funding for grants for training, research, and technical assistance. 

1 SEC. 2. AMENDMENTS TO PUBLIC WORKS AND ECONOMIC 

2 DEVELOPMENT ACT OF 1965. 

3 Except as otherwise expressly provided, whenever in 

4 this Act an amendment or repeal is expressed in terms 

5 of an amendment to, or a repeal of, a section or other 

6 provision, the reference shall be considered to be made to 

7 a section or other provision of the Public Works and Eco8 nomic Development Act of 1965 (42 U.S.C. 3121 et seq.). 

9 SEC. 3. FINDINGS AND DECLARATIONS. 

10 (a) FINDINGS.—Section 2(a) (42 U.S.C. 3121(a)) is 

11 amended to read as follows: 

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

13 ‘‘(1) sustainable economic growth in the 21st 

14 century depends upon economic development strate15 gies that include investment in essential infrastruc16 ture that fosters innovation, entrepreneurship, and 

17 competition in the global marketplace; 

18 ‘‘(2) there continue to be areas of the United 

19 States experiencing chronic high unemployment, 

20 underemployment, outmigration, and low per capita 

21 income, as well as areas facing sudden and severe 

22 economic dislocations due to structural economic 

23 changes, increasing international competition, cer24 tain Federal actions (including defense-related facilVerDate Mar 15 2010 02:44 Jul 29, 2010 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5897.IH H5897

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1 ity closures and realignment and actions required to 

2 counteract the depletion of natural resources), and 

3 natural disasters; 

4 ‘‘(3) the goal of Federal economic development 

5 programs is to raise the standard of living for all 

6 citizens and increase the wealth and overall rate of 

7 growth of the economy by encouraging regions and 

8 communities to develop a more competitive and di9 versified economic base, including by— 

10 ‘‘(A) expanding economic opportunities, in11 creasing international competitiveness, and cre12 ating a climate supportive of job creation and 

13 business development; 

14 ‘‘(B) creating an environment that pro15 motes public infrastructure investments that 

16 maximize sustainable development practices; 

17 ‘‘(C) promoting private sector job creation 

18 through increased innovation, productivity, and 

19 entrepreneurship; and 

20 ‘‘(D) empowering local and regional com21 munities experiencing chronic high unemploy22 ment, underemployment, outmigration, and low 

23 per capita income to develop private sector busi24 ness and attract increased domestic and foreign 

25 private sector capital investment, including 


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1 through the location of information technology, 

2 agribusiness, alternative energy, and manufac3 turing jobs in the United States and the reloca4 tion of such jobs to the United States; 

5 ‘‘(4) economic growth in the States, including 

6 in both cities and rural areas, can best be promoted 

7 by helping communities invest in regional strategies 

8 that build upon unique competitive advantages and 

9 are designed to foster innovation and entrepreneur10 ship in all segments of the community’s economy; 

11 ‘‘(5) while economic development is an inher12 ently local process, the Federal Government should 

13 work in partnership with public and private organi14 zations at the State, regional, tribal, and local levels 

15 to maximize the impact of existing resources and en16 able regions, communities, and citizens to participate 

17 more fully in the American dream and national pros18 perity; 

19 ‘‘(6) in order to avoid duplication of effort and 

20 achieve meaningful, long-lasting results, Federal, 

21 State, tribal, and local economic development activi22 ties should have a clear focus, improved coordina23 tion, a comprehensive approach, and simplified and 

24 consistent requirements; and 


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1 ‘‘(7) Federal economic development efforts will 

2 be more effective if the efforts are coordinated with, 

3 and build upon, the trade, workforce investment, 

4 higher education, transportation, energy, environ5 mental protection, and technology programs of the 

6 United States.’’. 

7 (b) DECLARATIONS.—Section 2(b) (42 U.S.C. 

8 3121(b)) is amended to read as follows: 

9 ‘‘(b) DECLARATIONS.—In order to promote a strong 

10 and growing economy throughout the United States, Con11 gress declares that— 

12 ‘‘(1) assistance under this Act should be made 

13 available to distressed communities in both rural and 

14 urban areas; 

15 ‘‘(2) local communities should work in partner16 ship with neighboring communities, economic devel17 opment districts, States, Indian tribes, institutions 

18 of higher education, the private sector, and the Fed19 eral Government to increase the capacity of those 

20 local communities to develop and implement com21 prehensive economic development strategies to allevi22 ate economic distress and enhance competitiveness 

23 in the global economy; 

24 ‘‘(3) whether suffering from long-term distress 

25 or a sudden dislocation, distressed communities 


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1 should be encouraged to take affirmative steps to 

2 promote innovation and entrepreneurship, including 

3 through the formation of business incubators, to 

4 help create higher skill, higher wage jobs and foster 

5 the participation of those distressed communities in 

6 the global marketplace; 

7 ‘‘(4) assistance under this Act should be made 

8 available to promote sustainable economic develop9 ment practices, to assist communities with the pro10 ductive reuse of abandoned industrial facilities and 

11 the redevelopment of brownfields, and to leverage 

12 significant Federal investments in high-speed rail 

13 corridors and other transportation infrastructure; 

14 and 

15 ‘‘(5) research assistance under this Act should 

16 help regions across the United States leverage the 

17 economic assets of those regions in a comprehensive 

18 manner and should enhance the Economic Develop19 ment Administration’s ability to provide an economic 

20 development framework to assist distressed commu21 nities and regions, with particular emphasis on revi22 talizing the manufacturing and agribusiness indus23 tries and the linkages between urban and rural com24 munities.’’. 


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1 SEC. 4. DEFINITIONS. 

2 Section 3(8) (42 U.S.C. 3122(8)) is amended— 

3 (1) in subparagraph (C) by striking ‘‘and’’ at 

4 the end; 

5 (2) in subparagraph (D) by striking the period 

6 at the end and inserting a semicolon; and 

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

8 ‘‘(E) the Southeast Crescent Regional 

9 Commission established under section 15301(a) 

10 of title 40, United States Code; 

11 ‘‘(F) the Northern Border Regional Com12 mission established under section 15301(a) of 

13 title 40, United States Code; and 

14 ‘‘(G) the Southwest Border Regional Com15 mission established under section 15301(a) of 

16 title 40, United States Code.’’. 

17 TITLE I—ECONOMIC DEVELOP18 MENT PARTNERSHIPS CO19 OPERATION AND COORDINA20 TION 

21 SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT 

22 PARTNERSHIPS. 

23 (a) TECHNICAL ASSISTANCE.—Section 101(b) (42 

24 U.S.C. 3131(b)) is amended— 

25 (1) in the matter preceding paragraph (1) by 

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1 lowing: ‘‘, including economic development districts 

2 and university centers,’’; and 

3 (2) by striking paragraphs (2) and (3) and in4 serting the following: 

5 ‘‘(2) encourage and support public-private part6 nerships for the formation and improvement of eco7 nomic development strategies, including regional 

8 strategies, that sustain and promote innovation and 

9 entrepreneurship that is critical to economic com10 petitiveness throughout the United States; and 

11 ‘‘(3) promote investment in infrastructure, in12 novation, entrepreneurship, sustainable development, 

13 and technological capacity (including with respect to 

14 advanced technologies in all industry sectors) to 

15 keep pace with the changing global economy.’’. 

16 (b) INTERGOVERNMENTAL REVIEW.—Section 101(c) 

17 (42 U.S.C. 3131(c)) is amended by inserting after ‘‘gov18 ernment agencies’’ the following: ‘‘and appropriate eco19 nomic development districts’’. 

20 SEC. 102. ENCOURAGEMENT OF CERTAIN COORDINATION. 

21 (a) IN GENERAL.—Title I (42 U.S.C. 3131 et seq.) 

22 is amended by adding at the end the following: 

23 ‘‘SEC. 104. ENCOURAGEMENT OF CERTAIN COORDINATION. 

24 ‘‘In carrying out this Act, the Secretary is authorized 

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1 eral, State, or local government agency or consortium of 

2 governmental organizations that can assist in addressing 

3 challenges and capitalizing on opportunities that require 

4 coordination, including the Department of Labor with re5 spect to supporting economic and workforce development 

6 strategies and promoting regional innovation clusters.’’. 

7 (b) CLERICAL AMENDMENT.—The table of contents 

8 in section 1(b) is amended by inserting after the item re9 lating to section 103 the following: 

‘‘Sec. 104. Encouragement of certain coordination.’’. 

10 SEC. 103. COORDINATION WITH RESPECT TO HIGH-SPEED 

11 RAIL. 

12 (a) IN GENERAL.—Title I (42 U.S.C. 3131 et seq.), 

13 as amended by this Act, is further amended by adding 

14 at the end the following: 

15 ‘‘SEC. 105. COORDINATION WITH RESPECT TO HIGH-SPEED 

16 RAIL. 

17 ‘‘The Secretary shall coordinate activities carried out 

18 under this Act, as appropriate, with the Department of 

19 Transportation and other relevant Federal agencies, State 

20 and local governments, economic development districts, In21 dian tribes, and planning and development organizations 

22 to leverage and maximize the economic development poten23 tial of Federal investments in high-speed rail projects. In 

24 carrying out this section, the Secretary shall conduct studVerDate Mar 15 2010 02:44 Jul 29, 2010 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H5897.IH H5897

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1 ies and disseminate reports, as appropriate, with respect 

2 to high-speed rail projects.’’. 

3 (b) CLERICAL AMENDMENT.—The table of contents 

4 in section 1(b), as amended by this Act, is further amend5 ed by inserting after the item relating to section 104 the 

6 following: 

‘‘Sec. 105. Coordination with respect to high-speed rail.’’. 

7 TITLE II—GRANTS FOR PUBLIC 

8 WORKS AND ECONOMIC DE9 VELOPMENT 

10 SEC. 201. GRANTS FOR PUBLIC WORKS AND ECONOMIC DE11 VELOPMENT. 

12 Section 201(a)(1) (42 U.S.C. 3141(a)(1)) is amended 

13 by inserting after ‘‘development facility’’ the following: 

14 ‘‘(including a facility of a business incubator or a science 

15 and research park (as such terms are defined in section 

16 208(a))’’. 

17 SEC. 202. GRANTS FOR PLANNING AND GRANTS FOR AD18 MINISTRATIVE EXPENSES. 

19 (a) IN GENERAL.—Section 203(a) (42 U.S.C. 

20 3143(a)) is amended by inserting after ‘‘administrative ex21 penses’’ the following: ‘‘(including indirect costs deter22 mined eligible in an applicable Office of Management and 

23 Budget circular)’’. 

24 (b) PLANNING PROCESS.—Section 203(b) (42 U.S.C. 

25 3143(b)) is amended— 


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1 (1) in paragraph (3) by striking ‘‘and’’ at the 

2 end; 

3 (2) in paragraph (4) by striking ‘‘and increase 

4 incomes.’’ and inserting ‘‘and systemic economic dis5 tress and increase incomes by fostering entrepre6 neurship and innovation across all regional industry 

7 sectors; and’’; and 

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

9 ‘‘(5) fostering regional collaboration.’’. 

10 (c) STATE PLANS.—Section 203(d)(4) (42 U.S.C. 

11 3143(d)(4)) is amended— 

12 (1) in the matter preceding subparagraph (A) 

13 by inserting after ‘‘public works’’ the following: ‘‘and 

14 other types of assistance’’; 

15 (2) in subparagraph (C) by inserting after ‘‘en16 vironment’’ the following: ‘‘, including through effi17 cient energy production, utilization, and facility de18 velopment’’; 

19 (3) in subparagraph (E)— 

20 (A) by inserting after ‘‘use’’ the following: 

21 ‘‘and deployment’’; and 

22 (B) by striking ‘‘and’’ at the end; 

23 (4) in subparagraph (F) by striking the period 

24 at the end and inserting ‘‘; and’’; and 

25 (5) by adding at the end the following: 


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1 ‘‘(G) support sustainable development 

2 practices and the efficient coordination and 

3 leveraging of public and private investments.’’. 

4 SEC. 203. COST SHARING. 

5 Section 204(c) (42 U.S.C. 3144(c)) is amended— 

6 (1) in paragraph (2) by inserting after ‘‘State 

7 or political subdivision’’ the following: ‘‘or that the 

8 Secretary determines has been affected by substan9 tial declines in tax revenue’’; and 

10 (2) in paragraph (3)— 

11 (A) in the heading by striking ‘‘TRAINING’’ 

12 and inserting ‘‘PLANNING, TRAINING’’; 

13 (B) by striking ‘‘section 207’’ and insert14 ing ‘‘section 203 or 207’’; and 

15 (C) by inserting after ‘‘such an increase’’ 

16 the following: ‘‘or if grant supported activities 

17 will include regional planning to build on com18 petitive advantages available regionally’’. 

19 SEC. 204. GRANTS FOR TRAINING, RESEARCH, AND TECH20 NICAL ASSISTANCE. 

21 (a) GRANTS.—Section 207(a)(1) (42 U.S.C. 

22 3147(a)(1)) is amended by striking ‘‘or underemploy23 ment’’ and inserting ‘‘, underemployment, or outmigra24 tion’’. 


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1 (b) TYPES OF ASSISTANCE.—Section 207(a)(2) (42 

2 U.S.C. 3147(a)(2)) is amended— 

3 (1) in subparagraph (D) by inserting after 

4 ‘‘centers’’ the following: ‘‘, with the goal that at 

5 least one university center is established in each 

6 State’’; and 

7 (2) by striking subparagraphs (H) and (I) and 

8 inserting the following: 

9 ‘‘(H) studies that evaluate the effectiveness 

10 of regional innovation clusters and determine 

11 best practices with respect to the support pro12 vided by entrepreneurial infrastructure, includ13 ing business incubators; 

14 ‘‘(I) a peer exchange program to promote 

15 best practices and innovation with respect to 

16 the organizational development, program deliv17 ery, and regional initiatives of economic devel18 opment districts; 

19 ‘‘(J) development and promotion of per20 formance measures and best practices with re21 spect to commercialization and entrepreneur22 ship; and 

23 ‘‘(K) other activities determined by the 

24 Secretary to be appropriate.’’. 


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1 (c) HIGH-SPEED RAIL.—Section 207(a) (42 U.S.C. 

2 3147(a)) is amended by adding at the end the following: 

3 ‘‘(4) HIGH-SPEED RAIL.—In making a grant 

4 under this subsection for the establishment of a uni5 versity center, the Secretary shall ensure, if appro6 priate, that the activities of the center will include 

7 conducting research and providing technical assist8 ance to leverage and maximize the economic develop9 ment potential of Federal investments in high-speed 

10 rail projects.’’. 

11 SEC. 205. FINANCIAL ASSISTANCE FOR BUSINESS INCUBA12 TORS AND SCIENCE AND RESEARCH PARKS. 

13 (a) IN GENERAL.—Title II (42 U.S.C. 3141 et seq.) 

14 is amended by inserting after section 207 the following: 

15 ‘‘SEC. 208. FINANCIAL ASSISTANCE FOR BUSINESS INCUBA16 TORS AND SCIENCE AND RESEARCH PARKS. 

17 ‘‘(a) DEFINITIONS.—In this section, the following 

18 definitions apply: 

19 ‘‘(1) BUSINESS INCUBATOR.—The term ‘busi20 ness incubator’ means a program established to fos21 ter the creation of new businesses and accelerate the 

22 growth of early-stage businesses by providing entre23 preneurs and early-stage businesses with the re24 sources and services to produce viable businesses 


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1 that can help create jobs in and restore vitality to 

2 communities. 

3 ‘‘(2) BUSINESS INCUBATOR DEVELOPMENT

4 PROJECT.—The term ‘business incubator develop5 ment project’ means a project to construct or alter 

6 facilities for a business incubator, including the ac7 quisition of real property necessary to carry out the 

8 construction or alteration. 

9 ‘‘(3) SCIENCE AND RESEARCH PARK.—The 

10 term ‘science and research park’ means a program 

11 that— 

12 ‘‘(A) includes property and buildings de13 signed primarily for— 

14 ‘‘(i) research and development activi15 ties conducted by public-private partners; 

16 ‘‘(ii) technology- and science-based 

17 businesses; or 

18 ‘‘(iii) research and development sup19 port services; 

20 ‘‘(B) includes a contractual relationship 

21 with one or more institutions of higher edu22 cation or government or nonprofit research lab23 oratories; 

24 ‘‘(C) has a primary mission of— 


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1 ‘‘(i) promoting research and develop2 ment through industry partnerships, as3 sisting the growth of new ventures, and 

4 promoting innovation-driven economic de5 velopment; 

6 ‘‘(ii) facilitating the transfer of tech7 nology and business skills between re8 searchers and industry teams; and 

9 ‘‘(iii) promoting technology-led eco10 nomic development for the community or 

11 region in which the program is located; 

12 and 

13 ‘‘(D) is owned by a government or non14 profit entity (although the government or non15 profit entity may enter into partnerships or 

16 joint ventures with for-profit entities to develop 

17 or manage specific components of the program). 

18 ‘‘(4) SCIENCE AND RESEARCH PARK DEVELOP19 MENT PROJECT.—The term ‘science and research 

20 park development project’ means a project to con21 struct or alter facilities for a science and research 

22 park, including the acquisition of real property nec23 essary to carry out the construction or alteration. 

24 ‘‘(b) FINANCIAL ASSISTANCE.—On the application of 

25 an eligible recipient, the Secretary may provide financial 


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1 assistance in accordance with this section to assist the de2 velopment of business incubators and science and research 

3 parks. 

4 ‘‘(c) GRANTS FOR PLANS FOR SCIENCE AND RE5 SEARCH PARKS.— 

6 ‘‘(1) GRANT AUTHORITY.—In accordance with 

7 this subsection, the Secretary may award a grant to 

8 an eligible recipient for the development of a feasi9 bility study or development plan, or both, with re10 spect to a science and research park development 

11 project. 

12 ‘‘(2) AMOUNT OF A GRANT.—A grant awarded 

13 under paragraph (1) may not be in an amount that 

14 exceeds $750,000. 

15 ‘‘(3) SELECTION PROCESS.— 

16 ‘‘(A) SELECTION CRITERIA.—Not later 

17 than 180 days after the date of enactment of 

18 the Economic Revitalization and Innovation Act 

19 of 2010, the Secretary shall publish the criteria 

20 to be utilized for the selection of grant recipi21 ents under paragraph (1). 

22 ‘‘(B) COMPETITION REQUIRED.—The Sec23 retary shall award grants under paragraph (1) 

24 pursuant to a full and open competition. 


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1 ‘‘(C) GEOGRAPHIC DIVERSITY.—In award2 ing grants under paragraph (1), the Secretary 

3 shall ensure, to the extent practicable, that 

4 grant recipients represent diverse geographic 

5 areas of the United States, including rural and 

6 urban areas. 

7 ‘‘(4) PROGRAM LIMIT.—The Secretary may not 

8 award, in the aggregate, more than $7,500,000 in 

9 grants under paragraph (1). 

10 ‘‘(d) LOAN GUARANTEES FOR BUSINESS INCUBA11 TORS AND SCIENCE AND RESEARCH PARKS.— 

12 ‘‘(1) GUARANTEE AUTHORITY.—In accordance 

13 with this subsection, the Secretary may guarantee a 

14 loan of an eligible recipient to assist the carrying out 

15 of a business incubator development project or a 

16 science and research park development project. 

17 ‘‘(2) GUARANTEE PERCENTAGE.—In guaran18 teeing a loan under paragraph (1), the Secretary 

19 may guarantee up to 80 percent of the principal 

20 amount of the loan. 

21 ‘‘(3) SELECTION OF GUARANTEE RECIPI22 ENTS.— 

23 ‘‘(A) CREDITWORTHINESS.—The Secretary 

24 may not guarantee a loan under paragraph (1) 

25 unless the Secretary has determined that there 


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1 is a reasonable assurance of repayment with re2 spect to the loan. 

3 ‘‘(B) GRANT RECIPIENTS.—A recipient of 

4 a grant under subsection (c) for the develop5 ment of a feasability study or development plan, 

6 or both, is not eligible for a loan guarantee 

7 under paragraph (1) until the recipient has 

8 completed the study or plan, or both, for which 

9 the grant was provided (as determined by the 

10 Secretary). 

11 ‘‘(4) TERM OF LOAN.—The term of a loan 

12 guaranteed under paragraph (1) may not exceed the 

13 lesser of— 

14 ‘‘(A) 30 years; or 

15 ‘‘(B) 90 percent of the useful life of any 

16 physical asset to be financed by such loan. 

17 ‘‘(5) SUBORDINATION.—An obligation relating 

18 to a loan guarantee under paragraph (1) may not be 

19 subordinated to another debt contracted by the bor20 rower or to any other claims against the borrower in 

21 the case of default. 

22 ‘‘(6) OTHER TERMS AND CONDITIONS.—Except 

23 as otherwise specified in this subsection, a loan 

24 guarantee under paragraph (1) shall be subject to 


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1 such terms and conditions as the Secretary may pre2 scribe. 

3 ‘‘(7) REVIEW.— 

4 ‘‘(A) IN GENERAL.—The Secretary shall 

5 periodically assess the risks associated with 

6 loans guaranteed under paragraph (1). 

7 ‘‘(B) COMPTROLLER GENERAL REPORT.— 

8 Not later than 2 years after the date of enact9 ment of the Economic Revitalization and Inno10 vation Act of 2010, the Comptroller General 

11 shall— 

12 ‘‘(i) conduct a comprehensive review 

13 of the program under this subsection; and 

14 ‘‘(ii) submit to Congress a report on 

15 the results of the review. 

16 ‘‘(8) PROGRAM LEVELS.—In carrying out para17 graph (1) during fiscal years 2011 through 2015, 

18 the Secretary may not guarantee loans in an amount 

19 that exceeds— 

20 ‘‘(A) $50,000,000 for a single project; 

21 ‘‘(B) $235,000,000 in a single fiscal year; 

22 and 

23 ‘‘(C) $500,000,000 in the aggregate.’’. 

24 (b) CLERICAL AMENDMENT.—The table of contents 

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1 ed by inserting after the item relating to section 207 the 

2 following: 

‘‘Sec. 208. Financial assistance for business incubators and science and research parks.’’. 

3 SEC. 206. GRANTS FOR ECONOMIC ADJUSTMENT. 

4 (a) IN GENERAL.—Section 209(a) (42 U.S.C. 

5 3149(a)) is amended— 

6 (1) by inserting after ‘‘public facilities,’’ the fol7 lowing: ‘‘science and research park development 

8 projects (as defined in section 208(a)),’’; and 

9 (2) by inserting after ‘‘revolving loan fund’’ the 

10 following: ‘‘, a challenge grant, and operating sup11 port for business incubators (as defined in section 

12 208(a))’’. 

13 (b) PARTICULAR COMMUNITY ASSISTANCE.—Section 

14 209(c) (42 U.S.C. 3149(c)) is amended— 

15 (1) in the matter preceding paragraph (1) by 

16 striking ‘‘injured’’ and inserting ‘‘affected’’; 

17 (2) in paragraph (1)— 

18 (A) by striking ‘‘or realignments,’’ and in19 serting ‘‘, realignments, or mission growth,’’; 

20 and 

21 (B) by inserting after ‘‘their economies’’ 

22 the following: ‘‘or supporting the economic ad23 justment activities of the Secretary of Defense’’; 


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1 (3) in paragraph (4) by striking ‘‘or’’ at the 

2 end; 

3 (4) in paragraph (5)— 

4 (A) by striking ‘‘manufacturing jobs’’ and 

5 inserting ‘‘manufacturing, information tech6 nology, natural resource, agricultural, or service 

7 sector jobs’’; and 

8 (B) by striking the period at the end and 

9 inserting ‘‘; or’’; and 

10 (5) by adding at the end the following: 

11 ‘‘(6) a lack of technology infrastructure, includ12 ing inadequate access to broadband capacity suffi13 cient to support economic development objectives; 

14 ‘‘(7) an inability to utilize alternative means of 

15 energy production and distribution; or 

16 ‘‘(8) insufficient access to capital and credit 

17 necessary for business retention and expansion, en18 trepreneurship, and innovation.’’. 

19 (c) SPECIAL PROVISIONS RELATING TO REVOLVING

20 LOAN FUND GRANTS.—Section 209(d) (42 U.S.C. 

21 3149(d)) is amended— 

22 (1) in paragraph (2)— 

23 (A) by redesignating subparagraphs (B) 

24 and (C) as subparagraphs (C) and (D), respec25 tively; and 


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1 (B) by inserting after subparagraph (A) 

2 the following: 

3 ‘‘(B) at the request of a grantee, approve 

4 the transfer of all or a portion of the assets of 

5 a revolving loan fund of the grantee to another 

6 eligible recipient to assist in establishing or 

7 maintaining a multiregion or national revolving 

8 loan fund;’’; and 

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

10 ‘‘(5) CONVERSION OF REVOLVING LOAN FUND

11 ASSETS.— 

12 ‘‘(A) AUTHORITY.—At the request of a 

13 grant recipient, the Secretary may approve the 

14 use of the assets of a revolving loan fund estab15 lished by the grant recipient with assistance 

16 under this section for another project, if— 

17 ‘‘(i) the project is eligible for assist18 ance under this Act; and 

19 ‘‘(ii) the Secretary determines that 

20 the revolving loan fund is no longer nec21 essary and the grant recipient, as a result 

22 of changed economic development needs, 

23 will make better use of the assets by car24 rying out the project. 


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1 ‘‘(B) METHODS OF CONVERSION.—If con2 version of a revolving loan fund is approved 

3 under subparagraph (A), the applicable grant 

4 recipient may convert the assets of the revolving 

5 loan fund by— 

6 ‘‘(i) selling to a third party any assets 

7 of the revolving loan fund; or 

8 ‘‘(ii) retaining repayments of principal 

9 and interest amounts made on loans pro10 vided through the revolving loan fund. 

11 ‘‘(C) TERMS AND CONDITIONS.—Except as 

12 otherwise provided under this paragraph, the 

13 Secretary may establish such terms and condi14 tions with respect to the conversion of a revolv15 ing loan fund under this paragraph as the Sec16 retary determines appropriate. 

17 ‘‘(D) EXPEDIENCY REQUIREMENT.—The 

18 Secretary shall ensure that any assets of a re19 volving loan fund converted under this para20 graph are used in an expeditious manner. 

21 ‘‘(6) RELEASE.—The Secretary may release, 

22 subject to terms and conditions the Secretary deter23 mines appropriate, the Federal Government’s inter24 est in a revolving loan fund established by a grant 

25 recipient with assistance under this section on or 


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1 after the date that is 7 years after the date on which 

2 the applicable grant was fully disbursed, if the Sec3 retary determines that— 

4 ‘‘(A) the grant recipient has carried out 

5 the terms of the grant in a satisfactory manner; 

6 ‘‘(B) any proceeds realized after the re7 lease of the Federal Government’s interest will 

8 be used for one or more activities that carry out 

9 the economic development purposes of this Act; 

10 and 

11 ‘‘(C) the grant recipient will continue to 

12 satisfy the requirements of section 602. 

13 ‘‘(7) EQUITY INVESTMENT DEMONSTRATION

14 PROGRAM.— 

15 ‘‘(A) AUTHORITY.— 

16 ‘‘(i) IN GENERAL.—To determine the 

17 feasibility and utility of providing equity 

18 investments through revolving loan funds 

19 established by grant recipients with assist20 ance under this section, the Secretary may 

21 authorize, at the request of a grant recipi22 ent, the use of the capital base of a revolv23 ing loan fund for equity investments in 

24 businesses in need of capital to start up 


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1 operations or expand operations beyond 

2 the startup phase. 

3 ‘‘(ii) DEMONSTRATED CAPACITY.—Be4 fore authorizing a grant recipient to make 

5 equity investments under clause (i), the 

6 Secretary shall determine that the grant 

7 recipient has the demonstrated capacity for 

8 engaging in equity investments or will con9 tract with another company or organiza10 tion with a proven track record with re11 spect to equity investments. 

12 ‘‘(iii) PREFERENTIAL CONSIDER13 ATION.—In authorizing grant recipients to 

14 make equity investments under clause (i), 

15 the Secretary shall give preferential consid16 eration to requests from grant recipients 

17 that intend to focus their investment ac18 tivities in support of business incubators 

19 (as defined in section 208(a)), companies 

20 commercializing technologies in conjunc21 tion with institutions of higher education, 

22 science and research parks (as defined in 

23 section 208(a)), or technology or manufac24 turing companies relocating to the United 

25 States from outside the United States. 


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1 ‘‘(iv) GEOGRAPHIC DIVERSITY.—In 

2 authorizing grant recipients to make equity 

3 investments under clause (i), the Secretary 

4 shall ensure, to the extent practicable, that 

5 grant recipients authorized represent di6 verse geographic areas of the United 

7 States, including rural and urban areas. 

8 ‘‘(B) REQUIREMENTS.—In authorizing a 

9 grant recipient to make equity investments 

10 under subparagraph (A)(i), the Secretary shall 

11 ensure that— 

12 ‘‘(i) not more than 25 percent of the 

13 capital base of the revolving loan fund of 

14 the grant recipient will be used for equity 

15 investments; 

16 ‘‘(ii) the Federal share of the amount 

17 used for an equity investment made by the 

18 grant recipient will not exceed 50 percent; 

19 and 

20 ‘‘(iii) the total amount of the equity 

21 investments made by the grant recipient in 

22 any one business will not exceed $250,000. 

23 ‘‘(C) OTHER TERMS AND CONDITIONS.— 

24 Except as otherwise provided in this paragraph, 

25 the Secretary may authorize grant recipients to 


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1 make equity investments under subparagraph 

2 (A)(i) subject to terms and conditions the Sec3 retary determines are appropriate. 

4 ‘‘(D) DISPOSITION OF EQUITY SECURI5 TIES.—In the event that the Secretary acquires 

6 equity securities as a result of a default by any 

7 party under any agreement relating to the 

8 terms of the Secretary’s extension of assistance 

9 under this paragraph, the Secretary shall liq10 uidate the Federal interest in such securities as 

11 soon as possible and for such consideration as 

12 the Secretary determines appropriate. The Sec13 retary may assign or transfer the securities to 

14 a third party for purposes of liquidation and 

15 the third party may retain proceeds from the 

16 disposition of the securities to defray costs re17 lated to the liquidation. 

18 ‘‘(E) DEFINITIONS.—In this paragraph the 

19 following definitions apply: 

20 ‘‘(i) CAPITAL BASE.—The term ‘cap21 ital base’ means the amount of the fund22 ing, from a grant under this section and 

23 from non-Federal sources, initially pro24 vided to establish a revolving loan fund 

25 under this section. 


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1 ‘‘(ii) EQUITY INVESTMENT.—The 

2 term ‘equity investment’ means an invest3 ment of funds in a business that results in 

4 the acquisition of an equity security. 

5 ‘‘(iii) EQUITY SECURITY.—The term 

6 ‘equity security’ means an instrument that 

7 signifies an ownership interest in a busi8 ness.’’. 

9 SEC. 207. SUSTAINABLE ECONOMIC DEVELOPMENT DEM10 ONSTRATION PROGRAM. 

11 (a) IN GENERAL.—Section 218 (42 U.S.C. 3154d) 

12 is amended to read as follows: 

13 ‘‘SEC. 218. SUSTAINABLE ECONOMIC DEVELOPMENT DEM14 ONSTRATION PROGRAM. 

15 ‘‘(a) IN GENERAL.—On the application of an eligible 

16 recipient, the Secretary may provide technical assistance, 

17 make grants, enter into contracts, or otherwise provide 

18 funding for a project— 

19 ‘‘(1) to promote energy efficiency to enhance 

20 the economic competitiveness of an area; 

21 ‘‘(2) to increase the use of renewable energy 

22 technologies, including solar, wind, or geothermal 

23 technologies, to support sustainable economic devel24 opment and job growth, with a priority given to 

25 projects that incorporate photovoltaics or relate to 


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1 agribusiness, including in both urban and rural 

2 areas; 

3 ‘‘(3) to support energy efficiency or alternative 

4 energy development plans, studies, or analysis (in5 cluding with respect to job training, attraction, or 

6 retention) to enhance a comprehensive economic de7 velopment strategy with respect to which funding 

8 has been provided under this Act; 

9 ‘‘(4) to support the efforts of a community to 

10 have a technology or manufacturing business located 

11 outside the United States relocate to the United 

12 States; and 

13 ‘‘(5) to supplement another project funded by a 

14 Federal grant, loan, or loan guarantee provided for 

15 a purpose described in paragraphs (1) through (4). 

16 ‘‘(b) FEDERAL SHARE.—Notwithstanding section 

17 204, the Federal share of the cost of a project funded 

18 under this section— 

19 ‘‘(1) if described in paragraph (1), (2), (3), or 

20 (4) of subsection (a), shall not exceed 80 percent; 

21 and 

22 ‘‘(2) if described in subsection (a)(5), shall not 

23 exceed 100 percent. 

24 ‘‘(c) SOLICITATION OF APPLICATIONS.—Not later 

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1 able to carry out this section, the Secretary shall solicit 

2 applications for assistance under this section.’’. 

3 (b) CLERICAL AMENDMENT.—The table of contents 

4 in section 1(b), as amended by this Act, is further amend5 ed by striking the item relating to section 218 and insert6 ing the following: 

‘‘Sec. 218. Sustainable economic development demonstration program.’’. 

7 SEC. 208. JOB CREATION GOALS. 

8 (a) IN GENERAL.—Title II (42 U.S.C. 3141 et seq.), 

9 as amended by this Act, is further amended by adding 

10 at the end the following: 

11 ‘‘SEC. 219. JOB CREATION GOALS. 

12 ‘‘(a) IN GENERAL.—As a condition of the receipt of 

13 a grant under section 201, 205, or 209 or a loan guar14 antee under section 208, the recipient of the grant or loan 

15 guarantee shall enter into an agreement with the Sec16 retary that establishes goals for the number of jobs to be 

17 created as a result of the projects and activities funded 

18 by the grant or loan guarantee. 

19 ‘‘(b) COMPLIANCE WITH GOALS.—The Secretary 

20 may take appropriate action to penalize a grant recipient 

21 who fails to satisfy job creation goals specified in an agree22 ment under subsection (a).’’. 

23 (b) CLERICAL AMENDMENT.—The table of contents 

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1 ed by inserting after the item relating to section 218 the 

2 following: 

‘‘Sec. 219. Job creation goals.’’. 

3 SEC. 209. PROHIBITION WITH RESPECT TO USE OF ASSIST4 ANCE. 

5 (a) IN GENERAL.—Title II (42 U.S.C. 3141 et seq.), 

6 as amended by this Act, is further amended by adding 

7 at the end the following: 

8 ‘‘SEC. 220. PROHIBITION WITH RESPECT TO USE OF ASSIST9 ANCE. 

10 ‘‘The Secretary shall ensure that a recipient of assist11 ance under this Act does not utilize the assistance for ac12 tivities to intentionally attract, to the location of the re13 cipient, a business or other source of employment already 

14 established elsewhere in the United States, if the reloca15 tion would adversely affect the location where the business 

16 or other source of employment was previously located.’’. 

17 (b) CLERICAL AMENDMENT.—The table of contents 

18 in section 1(b), as amended by this Act, is further amend19 ed by inserting after the item relating to section 219 the 

20 following: 

‘‘Sec. 220. Prohibition with respect to use of assistance.’’. 


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1 TITLE III—ELIGIBILITY; COM2 PREHENSIVE ECONOMIC DE3 VELOPMENT STRATEGIES 

4 SEC. 301. ELIGIBILITY OF AREAS. 

5 Section 301 (42 U.S.C. 3161) is amended by adding 

6 at the end the following: 

7 ‘‘(e) SPECIAL NEED.—In determining whether an 

8 area has experienced or is about to experience a special 

9 need for purposes of subsection (a)(3), the Secretary may 

10 consider whether the area has been affected by— 

11 ‘‘(1) the loss of a substantial employer; 

12 ‘‘(2) substantial outmigration or population 

13 loss; 

14 ‘‘(3) substantial foreclosure rates; 

15 ‘‘(4) substantial underemployment; 

16 ‘‘(5) military base or defense installation clo17 sure, realignment, or mission growth; 

18 ‘‘(6) a natural or other disaster or emergency; 

19 ‘‘(7) substantial natural resource depletion; 

20 ‘‘(8) substantial negative effects resulting from 

21 changing trade patterns; or 

22 ‘‘(9) other circumstances that the Secretary de23 termines are indicative of special or extraordinary 

24 unemployment or economic adjustment problems.’’. 


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1 SEC. 302. COMPREHENSIVE ECONOMIC DEVELOPMENT 

2 STRATEGIES. 

3 (a) IN GENERAL.—Section 302(a) (42 U.S.C. 

4 3162(a)) is amended— 

5 (1) in paragraph (1) by inserting after ‘‘prob6 lems’’ the following: ‘‘and opportunities’’; 

7 (2) in paragraph (2) by inserting after ‘‘pri8 vate’’ the following: ‘‘(including nonprofit organiza9 tion)’’; and 

10 (3) in paragraph (3)— 

11 (A) in subparagraph (A)— 

12 (i) by striking ‘‘economic problems’’ 

13 and inserting ‘‘economic development prob14 lems and opportunities’’; 

15 (ii) by inserting after ‘‘strategy, pro16 motes the’’ the following: ‘‘effective’’; and 

17 (iii) by striking ‘‘balances’’ and insert18 ing ‘‘optimizes’’; and 

19 (B) in subparagraph (B) by inserting after 

20 ‘‘the problems’’ the following: ‘‘and take advan21 tage of the opportunities’’. 

22 (b) APPROVAL OF OTHER PLAN.—Section 302(c) (42 

23 U.S.C. 3162(c)) is amended— 

24 (1) in paragraph (1) by inserting after ‘‘feder25 ally supported program’’ the following: ‘‘or under a 

26 State, regionally, or locally supported program’’; and 


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1 (2) in paragraph (2) by striking ‘‘paragraph’’ 

2 and inserting ‘‘subsection’’. 

3 (c) NOTIFICATION OF APPROVAL OR DISAPPROVAL

4 OF COMPREHENSIVE ECONOMIC DEVELOPMENT STRAT5 EGY OR OTHER PLAN.—Section 302 (42 U.S.C. 3162) is 

6 amended by adding at the end the following: 

7 ‘‘(d) NOTIFICATION OF APPROVAL OR DISAPPROVAL

8 OF COMPREHENSIVE ECONOMIC DEVELOPMENT STRAT9 EGY OR OTHER PLAN.— 

10 ‘‘(1) DEADLINE.—The Secretary shall notify an 

11 eligible recipient of the approval or disapproval of a 

12 comprehensive economic development strategy or 

13 other plan submitted under this section not later 

14 than 60 days after the date of receiving the strategy 

15 or plan. 

16 ‘‘(2) BASIS FOR DISAPPROVAL.—A notification 

17 of disapproval under this subsection shall include a 

18 description of the basis for the disapproval.’’. 

19 TITLE IV—ECONOMIC 

20 DEVELOPMENT DISTRICTS 

21 SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT DIS22 TRICTS. 

23 (a) IN GENERAL.—Section 401(a) (42 U.S.C. 

24 3171(a)) is amended in the matter preceding paragraph 


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1 (1) by striking ‘‘broad geographic’’ and inserting ‘‘na2 tional and regional’’. 

3 (b) OPERATIONS.—Section 401 (42 U.S.C. 3171) is 

4 amended by adding at the end the following: 

5 ‘‘(c) OPERATIONS.— 

6 ‘‘(1) IN GENERAL.—As a condition of maintain7 ing designation as an economic development district, 

8 each district shall engage in the full range of eco9 nomic development activities in the comprehensive 

10 economic development strategy of the district that 

11 has been approved by the Secretary, which may in12 clude— 

13 ‘‘(A) coordinating and implementing eco14 nomic development activities in the district; 

15 ‘‘(B) carrying out economic development 

16 research, planning, implementation, and advi17 sory functions identified in the comprehensive 

18 economic development strategy; and 

19 ‘‘(C) coordinating the development and im20 plementation of the comprehensive economic de21 velopment strategy with Federal, State, local, 

22 and private organizations. 

23 ‘‘(2) CONTRACTS.—An economic development 

24 district may enter into contracts for services to carry 

25 out the activities described in paragraph (1).’’. 


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1 SEC. 402. TERMINATION OR MODIFICATION OF ECONOMIC 

2 DEVELOPMENT DISTRICTS. 

3 Section 402 (42 U.S.C. 3172) is amended by adding 

4 at the end the following: ‘‘The standards shall include au5 thority for the Secretary to review, at the request of a 

6 district, district designations to evaluate whether the des7 ignations meet economic development and labor force 

8 needs and, when warranted, to approve the combination 

9 of districts and adjust applicable assistance levels for the 

10 resulting combination.’’. 

11 TITLE V—ADMINISTRATION 

12 SEC. 501. CONSULTATION WITH OTHER PERSONS AND 

13 AGENCIES. 

14 Section 503(a) (42 U.S.C. 3193(a)) is amended by 

15 striking ‘‘or underemployment’’ and inserting ‘‘, under16 employment, or outmigration’’. 

17 SEC. 502. PERFORMANCE EVALUATIONS OF GRANT RECIPI18 ENTS. 

19 (a) PURPOSE OF EVALUATIONS OF UNIVERSITY CEN20 TERS.—Section 506(b) (42 U.S.C. 3196(b)) is amended 

21 by striking ‘‘are worthy of’’ and all that follows through 

22 the period at the end and inserting ‘‘maintain the capacity 

23 to implement the priorities of the Secretary.’’. 

24 (b) TIMING OF EVALUATIONS.—Section 506(c) (42 

25 U.S.C. 3196(c)) is amended to read as follows: 


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1 ‘‘(c) TIMING OF EVALUATIONS.—Evaluations under 

2 subsection (a) shall be conducted on a continuing basis 

3 so that— 

4 ‘‘(1) with respect to economic development dis5 tricts, each grantee is evaluated within 3 years after 

6 the first award of assistance to the grantee and at 

7 least once every 3 years thereafter, so long as the 

8 grantee receives the assistance; and 

9 ‘‘(2) with respect to university centers, each 

10 grantee is evaluated within 5 years after the first 

11 award of assistance to the grantee and at least once 

12 every 5 years thereafter, so long as the grantee re13 ceives the assistance.’’. 

14 (c) EVALUATION CRITERIA FOR UNIVERSITY CEN15 TERS.—Section 506(d)(2) (42 U.S.C. 3196(d)(2)) is 

16 amended to read as follows: 

17 ‘‘(2) EVALUATION CRITERIA FOR UNIVERSITY

18 CENTERS.—The criteria for evaluation of a univer19 sity center shall provide, at a minimum, for an as20 sessment of— 

21 ‘‘(A) the center’s contribution to providing 

22 technical assistance, conducting applied re23 search, and disseminating the results of the ac24 tivities of the center; 


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1 ‘‘(B) the center’s conformance with the ap2 proved program plan of the center and the 

3 goals of the Secretary; and 

4 ‘‘(C) if appropriate, the center’s activities 

5 to leverage and maximize the economic develop6 ment potential of Federal investments in high7 speed rail projects, including activities— 

8 ‘‘(i) to encourage collaboration across 

9 regions; and 

10 ‘‘(ii) to evaluate manufacturing and 

11 economic development opportunities relat12 ing to the projects.’’. 

13 SEC. 503. ECONOMIC DEVELOPMENT REPRESENTATIVES. 

14 (a) IN GENERAL.—Title V (42 U.S.C. 3191 et seq.) 

15 is amended by adding at the end the following: 

16 ‘‘SEC. 508. ECONOMIC DEVELOPMENT REPRESENTATIVES. 

17 ‘‘The Secretary shall ensure that the Economic De18 velopment Administration maintains— 

19 ‘‘(1) not less than 35 individuals in the position 

20 of economic development representative during fiscal 

21 year 2012; and 

22 ‘‘(2) not less than 40 individuals in the position 

23 of economic development representative during fiscal 

24 year 2013 and each fiscal year thereafter.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of contents 

2 in section 1(b), as amended by this Act, is further amend3 ed by inserting after the item relating to section 507 the 

4 following: 

‘‘Sec. 508. Economic development representatives.’’. 

5 SEC. 504. LIMITATION ON CERTAIN POSITIONS. 

6 (a) IN GENERAL.—Title V (42 U.S.C. 3191 et seq.), 

7 as amended by this Act, is further amended by adding 

8 at the end the following: 

9 ‘‘SEC. 509. LIMITATION ON CERTAIN POSITIONS. 

10 ‘‘Beginning in fiscal year 2012, the number of posi11 tions in the Economic Development Administration that, 

12 for purposes of title 5, United States Code, are general 

13 positions (as defined by section 3132(a)(9) of such title) 

14 which may be filled only by a noncareer appointee (as de15 fined by section 3132(a)(7) of such title) shall be limited 

16 to 5.’’. 

17 (b) CLERICAL AMENDMENT.—The table of contents 

18 in section 1(b), as amended by this Act, is further amend19 ed by inserting after the item relating to section 508 the 

20 following: 

‘‘Sec. 509. Limitation on certain positions.’’. 

21 TITLE VI—MISCELLANEOUS 

22 SEC. 601. ANNUAL REPORT TO CONGRESS. 

23 Section 603(b) (42 U.S.C. 3213(b)) is amended— 


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1 (1) in paragraph (2)(B) by striking ‘‘and’’ at 

2 the end; 

3 (2) in paragraph (3) by striking the period at 

4 the end and inserting a semicolon; and 

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

6 ‘‘(4) with respect to each university center as7 sisted with funding under this Act, include— 

8 ‘‘(A) a specification of the activities of the 

9 university center; 

10 ‘‘(B) a specification of the recipients of 

11 technical assistance from the university center; 

12 and 

13 ‘‘(C) a specification of the outcomes result14 ing from the job creation, research, and tech15 nical assistance activities of the university cen16 ter; and 

17 ‘‘(5) specify the projects, and the funding pro18 vided for the projects, that were funded in conjunc19 tion with one or more of the regional commissions.’’. 

20 SEC. 602. MAINTENANCE OF EFFORT. 

21 (a) IN GENERAL.—Title VI (42 U.S.C. 3211 et seq.) 

22 is amended by adding at the end the following: 

23 ‘‘SEC. 613. MAINTENANCE OF EFFORT. 

24 ‘‘(a) EXPECTED PERIOD OF BEST EFFORTS.— 


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1 ‘‘(1) ESTABLISHMENT.—To carry out the pur2 poses of this Act, before providing investment assist3 ance for a construction project under this Act, the 

4 Secretary shall establish the expected period during 

5 which the recipient of the assistance shall make best 

6 efforts to achieve the economic development objec7 tives of the assistance. 

8 ‘‘(2) TREATMENT OF PROPERTY.—To obtain 

9 the best efforts of a recipient during the period es10 tablished under paragraph (1), during that period— 

11 ‘‘(A) any property that is acquired or im12 proved, in whole or in part, using investment 

13 assistance under this Act shall be held in trust 

14 by the recipient for the benefit of the project; 

15 and 

16 ‘‘(B) the Secretary shall retain an undi17 vided equitable reversionary interest in the 

18 property. 

19 ‘‘(3) TERMINATION OF FEDERAL INTEREST.— 

20 ‘‘(A) IN GENERAL.—Beginning on the date 

21 on which the Secretary determines that a recipi22 ent has fulfilled the obligations of the recipient 

23 for the applicable period under paragraph (1), 

24 taking into consideration the economic condi25 tions existing during that period, the Secretary 


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1 may terminate the reversionary interest of the 

2 Secretary in any applicable property under 

3 paragraph (2)(B). 

4 ‘‘(B) ALTERNATIVE METHOD OF TERMI5 NATION.— 

6 ‘‘(i) IN GENERAL.—On a determina7 tion by a recipient that the economic devel8 opment needs of the recipient have 

9 changed during the period beginning on 

10 the date on which investment assistance 

11 for a construction project is provided 

12 under this Act and ending on the expira13 tion of the expected period established for 

14 the project under paragraph (1), the re15 cipient may submit to the Secretary a re16 quest to terminate the reversionary inter17 est of the Secretary in property of the 

18 project under paragraph (2)(B) before the 

19 date described in subparagraph (A). 

20 ‘‘(ii) APPROVAL.—The Secretary may 

21 approve a request of a recipient under 

22 clause (i) if— 

23 ‘‘(I) in any case in which the re24 quest is submitted during the 10-year 

25 period beginning on the date on which 


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1 assistance is initially provided under 

2 this Act for the applicable project, the 

3 recipient repays to the Secretary an 

4 amount equal to 100 percent of the 

5 fair market value of the pro rata Fed6 eral share of the project; or 

7 ‘‘(II) in any case in which the re8 quest is submitted after the expiration 

9 of the 10-year period described in sub10 clause (I), the recipient repays to the 

11 Secretary an amount equal to the fair 

12 market value of the pro rata Federal 

13 share of the project as if that value 

14 had been amortized over the period 

15 established under paragraph (1), 

16 based on a straight-line depreciation 

17 of the project throughout the esti18 mated useful life of the project. 

19 ‘‘(b) TERMS AND CONDITIONS.— 

20 ‘‘(1) IN GENERAL.—The Secretary may estab21 lish such terms and conditions under this section as 

22 the Secretary determines to be appropriate, includ23 ing by extending the period of a reversionary inter24 est of the Secretary under subsection (a)(2)(B) in 


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1 any case in which the Secretary determines that the 

2 performance of a recipient is unsatisfactory. 

3 ‘‘(2) MAINTENANCE OF STANDARDS.—The Sec4 retary may not terminate a reversionary interest of 

5 the Secretary under subsection (a)(2)(B) if the Sec6 retary has not received adequate assurances that the 

7 applicable recipient will continue to satisfy the re8 quirements of section 602 after the termination. 

9 ‘‘(c) PREVIOUSLY EXTENDED ASSISTANCE.—With 

10 respect to any recipient to which the term of provision of 

11 assistance was extended under this Act before the date 

12 of enactment of this section, the Secretary may approve 

13 a request of the recipient under subsection (a) in accord14 ance with the requirements of this section to ensure uni15 form administration of this Act, notwithstanding any esti16 mated useful life period that otherwise relates to the as17 sistance. 

18 ‘‘(d) CONVERSION OF USE.—If a recipient of assist19 ance under this Act demonstrates to the Secretary that 

20 the intended use of the project for which assistance was 

21 provided under this Act no longer represents the best use 

22 of the property used for the project, the Secretary may 

23 approve a request by the recipient to convert the property 

24 to a different use for the remainder of the term of the 

25 Federal interest in the property, subject to the condition 


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1 that the new use shall be consistent with the purposes of 

2 this Act. 

3 ‘‘(e) STATUS OF AUTHORITY.—The authority of the 

4 Secretary under this section is in addition to any authority 

5 of the Secretary pursuant to any law or grant agreement 

6 in effect on the date of enactment of this section.’’. 

7 (b) CLERICAL AMENDMENT.—The table of contents 

8 in section 1(b), as amended by this Act, is further amend9 ed by inserting after the item relating to section 612 the 

10 following: 

‘‘Sec. 613. Maintenance of effort.’’. 

11 TITLE VII—FUNDING 

12 SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS. 

13 (a) ECONOMIC DEVELOPMENT ASSISTANCE PRO14 GRAMS.—Section 701(a) (42 U.S.C. 3231(a)) is amended 

15 by striking ‘‘until expended’’ and all that follows through 

16 the period at the end and inserting the following: ‘‘until 

17 expended, $500,000,000 for each of fiscal years 2011 

18 through 2015.’’. 

19 (b) SALARIES AND EXPENSES.—Section 701(b) (42 

20 U.S.C. 3231(b)) is amended by striking paragraphs (1) 

21 and (2) and inserting the following: 

22 ‘‘(1) $42,000,000 for fiscal year 2011; and 

23 ‘‘(2) such sums as are necessary for each fiscal 

24 year thereafter.’’. 


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•HR 5897 IH

1 SEC. 702. FUNDING FOR GRANTS FOR PLANNING AND 

2 GRANTS FOR ADMINISTRATIVE EXPENSES. 

3 Section 704 (42 U.S.C. 3234) is amended— 

4 (1) by striking ‘‘$27,000,000’’ and inserting 

5 ‘‘$36,000,000’’; and 

6 (2) by inserting after ‘‘under section 203’’ the 

7 following: ‘‘and, of that amount, not less than 

8 $500,000 shall be made available for grants under 

9 section 203 for planning relating to high-speed rail’’. 

10 SEC. 703. FUNDING FOR FINANCIAL ASSISTANCE FOR BUSI11 NESS INCUBATORS AND SCIENCE AND RE12 SEARCH PARKS. 

13 (a) IN GENERAL.—Title VII (42 U.S.C. 3231 et seq.) 

14 is amended by adding at the end the following: 

15 ‘‘SEC. 705. FUNDING FOR FINANCIAL ASSISTANCE FOR 

16 BUSINESS INCUBATORS AND SCIENCE AND 

17 RESEARCH PARKS. 

18 ‘‘(a) GRANTS.—In addition to amounts made avail19 able under section 701, there is authorized to be appro20 priated $7,500,000 to carry out section 208(c). 

21 ‘‘(b) LOAN GUARANTEES.—In addition to amounts 

22 made available under section 701, there are authorized to 

23 be appropriated such sums as may be necessary to carry 

24 out section 208(d), including the cost (as defined in sec25 tion 502 of the Federal Credit Reform Act of 1990 (2 

26 U.S.C. 661a)) of guaranteeing loans under that section.’’. 


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•HR 5897 IH

1 (b) CLERICAL AMENDMENT.—The table of contents 

2 in section 1(b), as amended by this Act, is further amend3 ed by inserting after the item relating to section 704 the 

4 following: 

‘‘Sec. 705. Funding for financial assistance for business incubators and science 

and research parks.’’. 

5 SEC. 704. FUNDING FOR SUSTAINABLE ECONOMIC DEVEL6 OPMENT DEMONSTRATION PROGRAM. 

7 (a) IN GENERAL.—Title VII (42 U.S.C. 3231 et 

8 seq.), as amended by this Act, is further amended by add9 ing at the end the following: 

10 ‘‘SEC. 706. FUNDING FOR SUSTAINABLE ECONOMIC DEVEL11 OPMENT DEMONSTRATION PROGRAM. 

12 ‘‘Of the amounts made available under section 701 

13 for each fiscal year, not less than $25,000,000 shall be 

14 made available to carry out section 218.’’. 

15 (b) CLERICAL AMENDMENT.—The table of contents 

16 in section 1(b), as amended by this Act, is further amend17 ed by inserting after the item relating to section 705 the 

18 following: 

‘‘Sec. 706. Funding for sustainable economic development demonstration program.’’. 

19 SEC. 705. FUNDING FOR GRANTS FOR TRAINING, RE20 SEARCH, AND TECHNICAL ASSISTANCE. 

21 (a) IN GENERAL.—Title VII (42 U.S.C. 3231 et 

22 seq.), as amended by this Act, is further amended by add23 ing at the end the following: 


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•HR 5897 IH

1 ‘‘SEC. 707. FUNDING FOR GRANTS FOR TRAINING, RE2 SEARCH, AND TECHNICAL ASSISTANCE. 

3 ‘‘Of the amounts made available under section 701 

4 for each fiscal year, not less than $10,000,000 shall be 

5 made available for grants provided under section 207 and, 

6 of that amount, not less than $1,125,000 shall be made 

7 available for grants under section 207 to establish univer8 sity centers in States that do not have a university cen9 ter.’’. 

10 (b) CLERICAL AMENDMENT.—The table of contents 

11 in section 1(b), as amended by this Act, is further amend12 ed by inserting after the item relating to section 706 the 

13 following: 

‘‘Sec. 707. Funding for grants for training, research, and technical assistance.’’. 

Æ 


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