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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3551 Placed on Calendar Senate (PCS)]

                                                      Calendar No. 1061
110th CONGRESS
  2d Session
                                S. 3551

                          [Report No. 110-490]

   To amend the Public Works and Economic Development Act of 1965 to 
             reauthorize that Act, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

           September 24 (legislative day, September 17), 2008

    Mrs. Boxer, from the Committee on Environment and Public Works, 
 reported the following original bill; which was read twice and placed 
                            on the calendar

_______________________________________________________________________

                                 A BILL

 
   To amend the Public Works and Economic Development Act of 1965 to 
             reauthorize that Act, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic Development Revitalization 
Act of 2008''.

SEC. 2. DEFINITIONS.

    Section 3(8) of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3122(8)) is amended--
            (1) in subparagraph (C), by striking ``and'' at the end;
            (2) in subparagraph (D), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(E) the Southeast Crescent Regional Commission, 
                Northern Border Regional Commission, and Southwest 
                Border Regional Commission established by section 
                15301(a) of title 40, United States Code.''.

SEC. 3. ECONOMIC DEVELOPMENT PARTNERSHIPS.

    Section 101 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3131) is amended--
            (1) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``economic development districts, university 
                centers,'' after ``multi-State regional 
                organizations,''; and
                    (B) in paragraph (3), by inserting ``, innovation, 
                entrepreneurship, sustainable development,'' after 
                ``infrastructure'';
            (2) in subsection (c), by inserting ``(including economic 
        development districts)'' after ``local government agencies''; 
        and
            (3) by adding at the end the following:
    ``(e) Excellence in Economic Development Awards.--
            ``(1) Establishment of program.--To recognize innovative 
        economic development strategies of national significance, the 
        Secretary may establish and carry out a program, to be known as 
        the `Excellence in Economic Development Award Program' 
        (referred to in this subsection as the `program').
            ``(2) Eligible entities.--To be eligible for recognition 
        under the program, an entity shall be an eligible recipient 
        that is not a for-profit organization or institution.
            ``(3) Nominations.--Before making an award under the 
        program, the Secretary shall solicit nominations publicly, in 
        accordance with such selection and evaluation procedures as the 
        Secretary may establish in the solicitation.
            ``(4) Categories.--The categories of awards under the 
        program shall include awards for--
                    ``(A) urban or suburban economic development;
                    ``(B) rural economic development;
                    ``(C) environmental or energy economic development;
                    ``(D) economic diversification strategies that 
                respond to economic dislocations, including economic 
                dislocations caused by natural disasters and military 
                base realignment and closure actions;
                    ``(E) university-led strategies to enhance economic 
                development;
                    ``(F) community entrepreneurship;
                    ``(G) historic preservation-led strategies to 
                enhance economic development; and
                    ``(H) such other categories as the Secretary 
                determines to be appropriate.
            ``(5) Provision of awards.--The Secretary may provide to 
        each entity selected to receive an award under this subsection 
        a plaque, bowl, or similar article to commemorate the 
        accomplishments of the entity.
            ``(6) Funding.--Of amounts made available to carry out this 
        Act, the Secretary may use not more than $2,000 for each fiscal 
        year to carry out this subsection.''.

SEC. 4. GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE EXPENSES.

    Section 203 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3143) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (3), by striking ``and'' at the 
                end;
                    (B) in paragraph (4), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(5) fostering regional collaboration among local 
        jurisdictions and organizations.''; and
            (2) in subsection (d)(5), by striking ``subsection shall'' 
        and all that follows through the end of the paragraph and 
        inserting the following: ``subsection shall--
                    ``(A) submit to the Secretary an annual report on 
                the planning process assisted under this subsection; 
                and
                    ``(B) provide a copy of each annual report to each 
                economic development district within the State.''.

SEC. 5. COST SHARING.

    (a) Federal Share.--Section 204(a) of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3144(a)) is amended by striking 
``shall not exceed--'' and all that follows through the end of the 
subsection and inserting ``shall not exceed 50 percent.''.
    (b) Increase in Federal Share.--Section 204(c) of the Public Works 
and Economic Development Act of 1965 (42 U.S.C. 3144(c)) is amended--
            (1) by redesignating paragraphs (1) through (3) as 
        paragraphs (2) through (4), respectively;
            (2) by inserting before paragraph (2) (as redesignated by 
        paragraph (1)) the following:
            ``(1) Relative needs of an area.--
                    ``(A) 150-percent higher unemployment rate.--In the 
                case of a grant made in an area for which the 24-month 
                unemployment rate is at least 150 percent of the 
                national average or the per capita income is not more 
                than 70 percent of the national average, the Secretary 
                may increase the Federal share above the percentage 
                specified in subsection (a) up to 60 percent of the 
                cost of the project.
                    ``(B) 175-percent higher unemployment rate.--In the 
                case of a grant made in an area for which the 24-month 
                unemployment rate is at least 175 percent of the 
                national average or the per capita income is not more 
                than 60 percent of the national average, the Secretary 
                may increase the Federal share above the percentage 
                specified in subsection (a) up to 70 percent of the 
                cost of the project.
                    ``(C) 200-percent higher unemployment rate.--In the 
                case of a grant made in an area for which the 24-month 
                unemployment rate is at least 200 percent of the 
                national average or the per capita income is not more 
                than 50 percent of the national average, the Secretary 
                may increase the Federal share above the percentage 
                specified in subsection (a) up to 80 percent of the 
                cost of the project.
                    ``(D) Additional criteria.--The Secretary may 
                establish eligibility criteria in addition to the 
                criteria described in this paragraph to address areas 
                impacted by severe outmigration, sudden and severe 
                economic dislocations, and other related economic 
                circumstances.'';
            (3) in paragraph (2) (as redesignated by paragraph (1))--
                    (A) by striking ``may'' and inserting ``shall''; 
                and
                    (B) by inserting ``to 75 percent of the cost of the 
                project, and may increase'' after ``subsection (a)''; 
                and
            (4) by adding at the end the following:
            ``(5) Federally declared disaster areas.--In the case of a 
        grant for an area with respect to which a major disaster or 
        emergency has been declared under the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
        seq.) during the 18-month period ending on the date on which 
        the Federal share is determined, the Secretary may increase the 
        Federal share above the percentage specified in subsection (a) 
        up to 100 percent of the cost of the project.''.

SEC. 6. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL ASSISTANCE.

    Section 207(a) of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3147(a)) is amended--
            (1) in paragraph (1), by inserting ``, outmigration,'' 
        after ``unemployment''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (H), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (I) as 
                subparagraph (J); and
                    (C) by inserting after subparagraph (H) the 
                following:
                    ``(I) a peer exchange program to promote industry-
                leading practices and innovations relating to the 
                organizational development, program delivery, and 
                regional initiatives of economic development districts; 
                and''.

SEC. 7. ENHANCEMENT OF RECIPIENT FLEXIBILITY TO DEAL WITH PROJECT 
              ASSETS.

    (a) Particular Community Assistance.--Section 209(c)(5) of the 
Public Works and Economic Development Act of 1965 (42 U.S.C. 
3149(c)(5)) is amended by inserting ``, natural resource-based, 
agricultural, or service sector'' after ``manufacturing''.
    (b) Revolving Loan Fund Program Flexibility.--Section 209(d) of the 
Public Works and Economic Development Act of 1965 (42 U.S.C. 3149(d)) 
is amended--
            (1) by redesignating paragraphs (2) through (4) as 
        paragraphs (3) through (5), respectively;
            (2) by inserting after paragraph (1) the following:
            ``(2) Comments.--
                    ``(A) In general.--The Secretary shall periodically 
                solicit from the individuals and entities described in 
                subparagraph (B)--
                            ``(i) comments regarding the guidelines and 
                        performance requirements for the revolving loan 
                        fund program; and
                            ``(ii) recommendations for improving the 
                        performance of the program and grantees under 
                        the program.
                    ``(B) Description of individuals and entities.--The 
                individuals and entities referred to in subparagraph 
                (A) are--
                            ``(i) the public; and
                            ``(ii) in particular, revolving loan fund 
                        grantees, national experts, and employees of 
                        Federal agencies with knowledge of 
                        international, national, regional, and 
                        statewide trends, innovations, and noteworthy 
                        practices relating to business development 
                        finance, including public and private lending 
                        and technical assistance intermediaries.'';
            (3) in subparagraph (A) of paragraph (5) (as redesignated 
        by paragraph (1)), by striking ``paragraph (2)(C)'' and 
        inserting ``paragraph (3)(C)''; and
            (4) by adding at the end the following:
            ``(6) Conversion of project assets.--
                    ``(A) Request.--If a recipient determines that a 
                revolving loan fund established using assistance 
                provided under this section is no longer needed, or 
                that the recipient could make better use of the 
                assistance in light of the current economic development 
                needs of the recipient if the assistance was made 
                available to carry out any other project that meets the 
                requirements of this Act, the recipient may submit to 
                the Secretary a request to approve the conversion of 
                the assistance.
                    ``(B) Methods of conversion.--A recipient the 
                request to convert assistance of which is approved 
                under subparagraph (A) may accomplish the conversion 
                by--
                            ``(i) selling to a third party any assets 
                        of the applicable revolving loan fund; or
                            ``(ii) retaining repayments of principal 
                        and interest amounts on loans provided through 
                        the applicable revolving loan fund.
                    ``(C) Requirements.--
                            ``(i) Sale.--
                                    ``(I) In general.--Subject to 
                                subclause (II), a recipient shall use 
                                the net proceeds from a sale of assets 
                                under subparagraph (B)(i) to pay any 
                                portion of the costs of 1 or more 
                                projects that meet the requirements of 
                                this Act.
                                    ``(II) Treatment.--For purposes of 
                                subclause (I), a project described in 
                                that subclause shall be considered to 
                                be eligible under section 301.
                            ``(ii) Retention of repayments.--Retention 
                        by a recipient of any repayment under 
                        subparagraph (B)(ii) shall be carried out in 
                        accordance with a strategic reuse plan approved 
                        by the Secretary that provides for the increase 
                        of capital over time until sufficient amounts 
                        (including interest earned on the amounts) are 
                        accumulated to fund other projects that meet 
                        the requirements of this Act.
                    ``(D) Terms and conditions.--The Secretary may 
                require such terms and conditions regarding a proposed 
                conversion of the use of assistance under this 
                paragraph as the Secretary determines to be 
                appropriate.
                    ``(E) Expediency requirement.--The Secretary shall 
                ensure that any assistance intended to be converted for 
                use pursuant to this paragraph is used in an 
                expeditious manner.
            ``(7) Program administration.--The Secretary may allocate 
        not more than 2 percent of the amounts made available for 
        grants under this section for the development and maintenance 
        of an automated tracking and monitoring system to ensure the 
        proper operation and financial integrity of the revolving loan 
        program established under this section.''.

SEC. 8. BRIGHTFIELDS DEMONSTRATION PROGRAM.

    Section 218(d) of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3154d(d)) is amended by striking ``2004 through 2008'' 
and inserting ``2009 through 2013''.

SEC. 9. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS.

    Section 401 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3171) is amended by adding at the end the following:
    ``(c) Operations.--
            ``(1) In general.--Each economic development district shall 
        engage in the full range of economic development activities 
        included in the list contained in the comprehensive economic 
        development strategy of the economic development district that 
        has been approved by the Economic Development Administration, 
        including--
                    ``(A) coordinating and implementing economic 
                development activities in the economic development 
                district;
                    ``(B) carrying out economic development research, 
                planning, implementation, and advisory functions 
                identified in the comprehensive economic development 
                strategy; and
                    ``(C) coordinating the development and 
                implementation of the comprehensive economic 
                development strategy with other local, State, Federal, 
                and private organizations.
            ``(2) Contracts.--An economic development district may 
        elect to enter into contracts for services to accomplish the 
        activities described in paragraph (1).''.

SEC. 10. CONSULTATION WITH OTHER PERSONS AND AGENCIES.

    Section 503(a) of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3193(a)) is amended by inserting ``, outmigration,'' 
after ``regional unemployment''.

SEC. 11. NOTIFICATION OF REORGANIZATION.

    Section 507 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3197) is amended--
            (1) by striking ``Not later than'' and inserting the 
        following:
    ``(a) Notification.--Not later than''; and
            (2) by adding at the end the following:
    ``(b) State of Montana.--The State of Montana shall be served by 
the Seattle office of the Economic Development Administration.''.

SEC. 12. MAINTENANCE OF EFFORT.

    Title VI of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3211 et seq.) is amended by adding at the end the following:

``SEC. 613. MAINTENANCE OF EFFORT.

    ``(a) Expected Period of Best Efforts.--
            ``(1) Establishment.--To carry out the purposes of this 
        Act, before providing investment assistance for a construction 
        project under this Act, the Secretary shall establish the 
        expected period during which the recipient of the assistance 
        shall make best efforts to achieve the economic development 
        objectives of the assistance.
            ``(2) Treatment of property.--To obtain the best efforts of 
        a recipient during the period established under paragraph (1), 
        during that period--
                    ``(A) any property that is acquired or improved, in 
                whole or in part, using investment assistance under 
                this Act shall be held in trust by the recipient for 
                the benefit of the project; and
                    ``(B) the Secretary shall retain an undivided 
                equitable reversionary interest in the property.
            ``(3) Termination of federal interest.--
                    ``(A) In general.--Beginning on the date on which 
                the Secretary determines that a recipient has fulfilled 
                the obligations of the recipient for the applicable 
                period under paragraph (1), taking into consideration 
                the economic conditions existing during that period, 
                the Secretary may terminate the reversionary interest 
                of the Secretary in any applicable property under 
                paragraph (2)(B).
                    ``(B) Alternative method of termination.--
                            ``(i) In general.--On a determination by a 
                        recipient that the economic development needs 
                        of the recipient have changed during the period 
                        beginning on the date on which investment 
                        assistance for a construction project is 
                        provided under this Act and ending on the 
                        expiration of the expected period established 
                        for the project under paragraph (1), the 
                        recipient may submit to the Secretary a request 
                        to terminate the reversionary interest of the 
                        Secretary in property of the project under 
                        paragraph (2)(B) before the date described in 
                        subparagraph (A).
                            ``(ii) Approval.--The Secretary may approve 
                        a request of a recipient under clause (i) if--
                                    ``(I) in any case in which the 
                                request is submitted during the 10-year 
                                period beginning on the date on which 
                                assistance is initially provided under 
                                this Act for the applicable project, 
                                the recipient repays to the Secretary 
                                an amount equal to 100 percent of the 
                                fair market value of the pro rata 
                                Federal share of the project; or
                                    ``(II) in any case in which the 
                                request is submitted after the 
                                expiration of the 10-year period 
                                described in subclause (I), the 
                                recipient repays to the Secretary an 
                                amount equal to the fair market value 
                                of the pro rata Federal share of the 
                                project as if that value had been 
                                amortized over the period established 
                                under paragraph (1), based on a 
                                straight-line depreciation of the 
                                project throughout the estimated useful 
                                life of the project.
    ``(b) Terms and Conditions.--The Secretary may establish such terms 
and conditions under this section as the Secretary determines to be 
appropriate, including by extending the period of a reversionary 
interest of the Secretary under subsection (a)(2)(B) in any case in 
which the Secretary determines that the performance of a recipient is 
unsatisfactory.
    ``(c) Previously Extended Assistance.--With respect to any 
recipient to which the term of provision of assistance was extended 
under this Act before the date of enactment of this section, the 
Secretary may approve a request of the recipient under subsection (a) 
in accordance with the requirements of this section to ensure uniform 
administration of this Act, notwithstanding any estimated useful life 
period that otherwise relates to the assistance.
    ``(d) Conversion of Use.--If a recipient of assistance under this 
Act demonstrates to the Secretary that the intended use of the project 
for which assistance was provided under this Act no longer represents 
the best use of the property used for the project, the Secretary may 
approve a request by the recipient to convert the property to a 
different use for the remainder of the term of the Federal interest in 
the property, subject to the condition that the new use shall be 
consistent with the purposes of this Act.
    ``(e) Status of Authority.--The authority of the Secretary under 
this section is in addition to any authority of the Secretary pursuant 
to any law or grant agreement in effect on the date of enactment of 
this section.''.

SEC. 13. EXTENSION OF AUTHORIZATION OF APPROPRIATIONS.

    Section 701(a) of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3231(a)) is amended--
            (1) in paragraph (1), by striking ``2004'' and inserting 
        ``2009'';
            (2) in paragraph (2), by striking ``2005'' and inserting 
        ``2010'';
            (3) in paragraph (3), by striking ``2006'' and inserting 
        ``2011'';
            (4) in paragraph (4), by striking ``2007'' and inserting 
        ``2012''; and
            (5) in paragraph (5), by striking ``2008'' and inserting 
        ``2013''.

SEC. 14. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE 
              EXPENSES.

    Section 704 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3234) is amended to read as follows:

``SEC. 704. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR 
              ADMINISTRATIVE EXPENSES.

    ``(a) In General.--Subject to subsection (b), of the amounts made 
available under section 701 for each fiscal year, not less than 
$27,000,000 shall be made available to provide grants under section 
203.
    ``(b) Subject to Total Appropriations.--For any fiscal year, the 
amount made available pursuant to subsection (a) shall be increased 
to--
            ``(1) $28,000,000, if the total amount made available under 
        subsection 701(a) for the fiscal year is equal to or greater 
        than $280,000,000;
            ``(2) $29,500,000, if the total amount made available under 
        subsection 701(a) for the fiscal year is equal to or greater 
        than $320,000,000;
            ``(3) $31,000,000, if the total amount made available under 
        subsection 701(a) for the fiscal year is equal to or greater 
        than $350,000,000;
            ``(4) $32,500,000, if the total amount made available under 
        subsection 701(a) for the fiscal year is equal to or greater 
        than $380,000,000; and
            ``(5) $34,500,000, if the total amount made available under 
        subsection 701(a) for the fiscal year is equal to or greater 
        than $420,000,000.''.
                                                      Calendar No. 1061

110th CONGRESS

  2d Session

                                S. 3551

                          [Report No. 110-490]

_______________________________________________________________________

                                 A BILL

   To amend the Public Works and Economic Development Act of 1965 to 
             reauthorize that Act, and for other purposes.

_______________________________________________________________________

           September 24 (legislative day, September 17), 2008

                  Read twice and placed on the calendar
```