II 

108TH CONGRESS 

2D SESSION S. 2162

To implement the Inland Northwest Economic Adjustment Strategy, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 3, 2004

Mr. CRAPO introduced the following bill; which was read twice and referred 

to the Committee on Environment and Public Works 

A BILL

To implement the Inland Northwest Economic Adjustment 

Strategy, 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 This Act may be cited as the ‘‘Inland Northwest Revi5 talization Act’’. 

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

7 ‘‘Inland Northwest Revitalization Act’’. 

8 (b) TABLE OF CONTENTS.—The table of contents of 

9 this Act is as follows:

Sec. 1. Short title; table of contents. 

Sec. 2. Purposes. 

Sec. 3. Definitions. 
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TITLE I—INLAND NORTHWEST REGIONAL PARTNERSHIP 

Sec. 101. Establishment, membership, and employees. 

Sec. 102. Decisions. 

Sec. 103. Functions. 

Sec. 104. Administrative powers and expenses. 

Sec. 105. Meetings. 

Sec. 106. Public participation. 

Sec. 107. Annual report. 

TITLE II—FINANCIAL ASSISTANCE 

Sec. 201. Grants and other assistance. 

Sec. 202. Approval of projects. 

TITLE III—INLAND NORTHWEST REGIONAL PARTNERSHIP 

REGIONAL INITIATIVES 

Sec. 301. Inland Northwest business cluster initiative. 

Sec. 302. Entrepreneurial development initiative. 

Sec. 303. Technology commercialization initiative. 

Sec. 304. Community readiness initiative. 

Sec. 305. Regional workforce development. 

TITLE IV—ADMINISTRATION 

Sec. 401. Consent of States. 

Sec. 402. Program implementation. 

Sec. 403. Program development criteria. 

Sec. 404. Regional development planning process. 

Sec. 405. Distressed and economically strong counties. 

TITLE V—MISCELLANEOUS 

Sec. 501. Authorization of appropriations. 

Sec. 502. Cessation of effectiveness.

1 SEC. 2. PURPOSES. 

2 The purposes of this Act are— 

3 (1) to assist the Inland Northwest Region in— 

4 (A) making the industrial and commercial 

5 resources of the Region more competitive in na6 tional and world markets; 

7 (B) generating a diversified regional econ8 omy; 

9 (C) developing the industry of the Region; 

10 (D) building entrepreneurial communities; 
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1 (E) providing the infrastructure necessary 

2 for economic and human resource development; 

3 and 

4 (F) addressing problems unique to the Re5 gion; 

6 (2) to provide a framework for coordinating 

7 Federal, State, tribal, and local initiatives to respond 

8 to the economic competitiveness challenges in the 

9 Region by— 

10 (A) adapting and applying new tech11 nologies for businesses in the Region; 

12 (B) improving the access of those busi13 nesses to the technical and financial resources 

14 necessary to development of the businesses; 

15 (C) improving the skills of the workforce of 

16 the Region; 

17 (D) using the actions of the Healthy For18 ests Restoration Act of 2003 (Public Law 108–

19 148) to sustain rural communities and local 

20 economies of the Region in addition to forest 

21 ecosystems; 

22 (E) anticipating the effects of alternative 

23 energy policies and practices; and 

24 (F) implementing programs and projects 

25 carried out in the Region by Federal, State, 
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1 tribal, and local governmental agencies so as to 

2 better meet the special problems generated in 

3 the Region by the natural resource and federal 

4 land management policies of the United States; 

5 (3) as the Region obtains necessary physical 

6 and transportation facilities and develops human re7 sources, to assist the Region in generating a diversi8 fied industry so that the Region will be able to sup9 port itself through the workings of a strengthened 

10 free enterprise economy; and 

11 (4) to address the needs of severely and persist12 ently distressed areas of the Region, and to focus 

13 special attention on the areas of greatest need, so as 

14 to provide a fairer opportunity for the people of the 

15 Region to share the quality of life generally enjoyed 

16 by citizens across the United States. 

17 SEC. 3. DEFINITIONS. 

18 In this Act: 

19 (1) COOPERATIVE EXTENSION SERVICE.—The 

20 term ‘‘Cooperative Extension Service’’ means the 

21 Cooperative State Research, Education, and Exten22 sion Service of the Department of Agriculture.

23 (2) LOCAL DEVELOPMENT DISTRICT.—The 

24 term ‘‘local development district’’ means an entity 
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1 located in the Region that is an economic develop2 ment district that is— 

3 (A) organized and operated in a manner 

4 that ensures broad-based community participa5 tion and an effective opportunity for local offi6 cials, community leaders, and the public to con7 tribute to the development and implementation 

8 of programs in the Region; 

9 (B) governed by a policy board with at 

10 least a simple majority of members consisting 

11 of— 

12 (i) elected officials; and 

13 (ii) designees or employees of a gen14 eral purpose unit of local government that 

15 have been appointed to represent the unit 

16 of local government; and 

17 (C) certified by the Governor or appro18 priate State officer as having a charter or au19 thority that includes the economic development 

20 of counties, portions of counties, or other polit21 ical subdivisions within the Region. 

22 (3) MANUFACTURING EXTENSION PARTNER23 SHIP.—The term ‘‘manufacturing extension partner24 ship’’ means a partnership of that name adminis-
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1 tered by the National Institute of Standards and 

2 Technology of the Department of Commerce. 

3 (4) PARTNERSHIP.—The term ‘‘Partnership’’ 

4 means the Inland Northwest Regional Partnership 

5 established by section 101(a). 

6 (5) REGION.—The term ‘‘Region’’ means the 

7 area of the inland northwestern United States con8 sisting of— 

9 (A) all counties in the State of Idaho (in10 cluding any political subdivision and tribal na11 tions located within such a county); 

12 (B) all counties in the State of Montana 

13 (including any political subdivision and tribal 

14 nations located within such a county); 

15 (C) in the State of Washington, the coun16 ties of Adams, Asotin, Benton, Chelan, Colum17 bia, Douglas, Ferry, Franklin, Garfield, Grant, 

18 Kittitas, Klickitat, Lincoln, Okanogan, Pend 

19 Oreille, Skamania, Spokane, Stevens, Walla 

20 Walla, Whitman, and Yakima; and 

21 (D) in the State of Oregon, the counties of 

22 Baker, Crook, Deschutes, Gilliam, Grant, Har23 ney, Hood River, Jefferson, Klamath, Lake, 

24 Malheur, Morrow, Sherman, Umatilla, Union, 

25 Wallowa, Wasco, and Wheeler. 
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1 (6) RESOURCE CONSERVATION AND DEVELOP2 MENT AREA.—The term ‘‘resource conservation and 

3 development area’’ means a designated area (as de4 fined in section 1528(4) of the Agriculture and Food 

5 Act of 1981 (16 U.S.C. 3451(4)). 

6 (7) SMALL BUSINESS DEVELOPMENT CEN7 TER.—The term ‘‘small business development cen8 ter’’ means any of the approximately 1,000 small 

9 business development centers that is— 

10 (A) established by the Small Business Ad11 ministration for the purpose of providing man12 agement and technical assistance to small busi13 nesses; and 

14 (B) administered by the Office of Small 

15 Business Development Centers. 

16 (8) STATE.—The term ‘‘State’’ means the State 

17 of Idaho, Montana, Oregon, or Washington. 

18 (9) STATE RURAL DEVELOPMENT COUNCIL.—

19 The term ‘‘State rural development council’’ has the 

20 meaning given the term in section 378(a)(4) of the 

21 Consolidated Farm and Rural Development Act (7 

22 U.S.C. 2008m(a)(4)). 
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1 TITLE I—INLAND NORTHWEST 

2 REGIONAL PARTNERSHIP 

3 SEC. 101. ESTABLISHMENT, MEMBERSHIP, AND EMPLOY4 EES. 

5 (a) ESTABLISHMENT.—There is established an In6 land Northwest Regional Partnership. 

7 (b) MEMBERSHIP.—The Partnership shall be com8 prised of 40 members, including, for each State— 

9 (1) 3 representatives designated by the Gov10 ernor of the State; 

11 (2) the Director for Rural Development of the 

12 Department of Agriculture for the State; 

13 (3) the representative of the Economic Develop14 ment Administration of the Department of Com15 merce for the State; 

16 (4) the leader of at least 1 Indian tribe located 

17 in the State, nominated by an Indian tribe in the 

18 State and appointed by the Affiliated Tribes of 

19 Northwest Indians; 

20 (5) the mayor of at least 1 city in each State, 

21 selected by the respective State municipal associa22 tions; 

23 (6) a county commissioner from each State, se24 lected by the respective county associations; 
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1 (7) an industry leader from the State, nomi2 nated by industry associations and appointed by the 

3 Governor of the State; and 

4 (8) a small business leader from the State, 

5 nominated by a chamber of commerce in the State 

6 and appointed by the Governor of the State. 

7 (c) COCHAIRPERSONS AND EXECUTIVE COM8 MITTEE.— 

9 (1) COCHAIRPERSONS.—The Partnership shall 

10 select from among the members of the Partnership 

11 the following 5 Cochairpersons: 

12 (A) A State Cochairperson selected from 

13 among the 12 members of the Partnership that 

14 represent State government. 

15 (B) A Federal Cochairperson selected from 

16 among the members of the Partnership that 

17 are— 

18 (i) State directors of rural develop19 ment of the Department of Agriculture; or 

20 (ii) economic development representa21 tives for each State under the Economic 

22 Development Administration of the De23 partment of Commerce.
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1 (C) A tribal Cochairperson selected from 

2 among the members of the Partnership that are 

3 leaders of Indian tribes. 

4 (D) A local Cochairperson selected from 

5 among the members of the Partnership that 

6 are— 

7 (i) the mayors of a city in a State; 

8 and 

9 (ii) county commissioners from a 

10 State. 

11 (E) A private Cochairperson selected from 

12 among the members of the Partnership that 

13 are— 

14 (i) industry leaders from a State; or 

15 (ii) small business leaders from a 

16 State. 

17 (2) EXECUTIVE COMMITTEE.— 

18 (A) IN GENERAL.—The 5 Cochairpersons 

19 of the Partnership shall form the Executive 

20 Committee of the Partnership. 

21 (B) CHAIRPERSON.—The Executive Com22 mittee of the Partnership shall select a Chair23 person from the members of the Executive 

24 Committee. 
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1 (C) POWERS AND DUTIES.—The powers 

2 and duties of the Executive Committee shall be 

3 established by policies developed and adopted by 

4 the Partnership. 

5 (d) DELEGATION.—A power or responsibility of the 

6 Partnership specified in section 102(c), and a vote of any 

7 member of the Partnership, may not be delegated to an 

8 individual who is— 

9 (1) not a member of the Partnership; or 

10 (2) not entitled to vote in Partnership meetings. 

11 (e) STATUS OF PERSONNEL.— 

12 (1) IN GENERAL.—No employee of the Partner13 ship shall be considered to be a Federal employee for 

14 any purpose. 

15 (2) DETAILED PERSONNEL.—A Federal em16 ployee detailed under subsection (a)(3) or (b)(1) of 

17 section 106 shall not be considered to be an em18 ployee of the Partnership. 

19 SEC. 102. DECISIONS. 

20 (a) REQUIREMENTS FOR APPROVAL.—A decision by 

21 the Partnership shall require the affirmative vote of a ma22 jority of the members present. 

23 (b) CONSULTATION.—The Federal Cochairperson, to 

24 the maximum extent practicable, shall consult with the 
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1 Federal departments and agencies having an interest in 

2 the subject matter of matters before the Partnership. 

3 (c) DECISIONS REQUIRING QUORUM OF MEMBERS.—

4 A quorum of 21 members is required for the Partnership 

5 to decide matters involving— 

6 (1) policy of the Partnership; 

7 (2) approval of development plans or strategy 

8 statements; 

9 (3) modification or revision of the Partnership 

10 Code; 

11 (4) allocation of amounts among the States; 

12 (5) designation of— 

13 (A) a distressed county; or 

14 (B) an economically strong county; or 

15 (6) approval of project and grant proposals. 

16 SEC. 103. FUNCTIONS. 

17 (a) IN GENERAL.—In carrying out this title, the 

18 Partnership shall— 

19 (1) coordinate, implement, and monitor—

20 (A) the strategic regional initiative de21 scribed in sections 301 through 305; and 

22 (B) projects developed by the Partnership; 

23 (2) receive and disburse funds from Federal, 

24 State, tribal, and private sources designated for In-
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1 land Northwest economic adjustment strategy 

2 projects and programs; 

3 (3) conduct and sponsor investigations, re4 search, and studies (including an inventory and 

5 analysis of the resources of the Region) and, in co6 operation with Federal, State, tribal, and local agen7 cies, sponsor demonstration projects to foster re8 gional productivity and growth; 

9 (4) review and study, in cooperation with the 

10 agency involved, Federal, State, tribal, and local 

11 public and private programs and, as appropriate, 

12 recommend modifications which will increase the ef13 fectiveness of those programs in the Region; 

14 (5) encourage private investment in industrial, 

15 commercial, and recreational projects; 

16 (6) serve as a focal point and coordinating unit 

17 for programs in the Region; 

18 (7) seek to coordinate the economic develop19 ment activities of, and the use of economic develop20 ment resources by, Federal agencies in the Region; 

21 and 

22 (8) carry out such other projects and activities 

23 as are appropriate to promote regional, interstate, 

24 and local economic development. 
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1 (b) IDENTIFICATION OF NEEDS AND GOALS OF SUB2 REGIONAL AREAS.—In carrying out the functions in sub3 section (a), the Partnership shall identify the characteris4 tics of, and may distinguish between the needs and goals 

5 of, appropriate subregional areas. 

6 SEC. 104. ADMINISTRATIVE POWERS AND EXPENSES. 

7 (a) POWERS.—To carry out its duties under this title, 

8 the Partnership may— 

9 (1) establish bylaws for the Partnership; 

10 (2) appoint and compensate necessary personnel 

11 for the Partnership; 

12 (3) enter into contracts to carry out the respon13 sibilities of the Partnership; 

14 (4) subject to section 101(e), request the head 

15 of any Federal department or agency to detail to 

16 temporary duty with the Partnership any personnel 

17 within the administrative jurisdiction of the head of 

18 the department or agency that the Partnership may 

19 need for carrying out its functions, provided that 

20 each detail is without loss of seniority, pay, or other 

21 employee status; 

22 (5) arrange for the services of personnel from 

23 any State or local government, subdivision or agency 

24 of a State or local government, or intergovernmental 

25 agency;
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1 (6) accept, use, and dispose of gifts or dona2 tions of services or any property; and 

3 (7) take such other actions and incur such 

4 other expenses as may be appropriate. 

5 (b) AUTHORIZATIONS.— 

6 (1) DETAIL OF EMPLOYEES.—Subject to sec7 tion 101(e), the head of a Federal department or 

8 agency may detail personnel under subsection (a)(2). 

9 (2) ENTER INTO AND PERFORM TRANS10 ACTIONS.—A department, agency, or instrumentality 

11 of the Government may enter into and perform a 

12 contract, lease, cooperative agreement, or other 

13 transaction under subsection (a). 

14 (c) EXPENSES.— 

15 (1) IN GENERAL.—Subject to paragraph (3), 

16 administrative expenses of the Partnership shall be 

17 shared equally by the Federal Government, partici18 pating Indian tribes, and the States in the Region. 

19 (2) AMOUNT PAID BY EACH STATE.—The Part20 nership shall determine the amount to be paid by 

21 each State. 

22 (3) DELINQUENT STATES.—During the period 

23 that a State or Indian tribe is delinquent in payment 

24 of the share of that State or Indian tribe of adminis25 trative expenses— 
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1 (A) assistance authorized by this title shall 

2 not be furnished to the delinquent State or In3 dian tribe, including any political subdivision or 

4 any resident of that State; and 

5 (B) a State or tribal member of the Part6 nership shall not participate or vote in any deci7 sion by the Partnership. 

8 SEC. 105. MEETINGS. 

9 The Partnership shall conduct at least 1 meeting 

10 each year with at least a majority of the members present. 

11 SEC. 106. PUBLIC PARTICIPATION. 

12 (a) IN GENERAL.—The Partnership shall provide for 

13 and encourage public participation in the development, re14 vision, and implementation of all plans and programs 

15 under this title by the Partnership, any State, or any local 

16 development district. 

17 (b) GUIDELINES.—The Partnership shall develop and 

18 publish minimum guidelines for public participation, in19 cluding public hearings. 

20 SEC. 107. ANNUAL REPORT. 

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

22 year, the Partnership shall submit to the Governor of each 

23 State and to the President, for transmittal to Congress, 

24 a report describing the activities carried out under this 

25 title during the fiscal year. 
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1 TITLE II—FINANCIAL 

2 ASSISTANCE 

3 SEC. 201. GRANTS AND OTHER ASSISTANCE. 

4 (a) AUTHORIZATION TO MAKE GRANTS.— 

5 (1) IN GENERAL.—The Partnership may make 

6 grants to qualified organizations within the Region 

7 for the purposes of implementing an Inland North8 west economic adjustment strategy. 

9 (2) LIMITATION ON AVAILABLE AMOUNTS.— 

10 (A) IN GENERAL.—Except as provided in 

11 subparagraph (B), not more than 50 percent 

12 (or, in the case of a project to be carried out 

13 in a county for which a distressed county des14 ignation is in effect under section 405, 80 per15 cent) of the cost of any activity eligible for fi16 nancial assistance under this section may be 

17 provided from amounts appropriated to carry 

18 out this title. 

19 (B) DISCRETIONARY GRANTS.— 

20 (i) IN GENERAL.—Discretionary 

21 grants made by the Partnership to imple22 ment significant regional initiatives, to 

23 take advantage of special development op24 portunities, or to respond to emergency 

25 economic distress in the Region may be 
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1 made without regard to the percentage 

2 limitations specified in subparagraph (A). 

3 (ii) LIMITATION ON AGGREGATE

4 AMOUNT.—For each fiscal year, the aggre5 gate amount of discretionary grants under 

6 clause (i) shall not be more than 50 per7 cent of the amount appropriated under sec8 tion 503 for the fiscal year. 

9 (3) SOURCES OF GRANTS.—Grant amounts may 

10 be provided entirely from appropriations to carry out 

11 this section, in combination with amounts available 

12 under other Federal or Federal grant programs, or 

13 from any other source. 

14 (4) FEDERAL SHARE.—Notwithstanding any 

15 provision of law limiting the Federal share in any 

16 other Federal program, amounts made available to 

17 carry out this section may be used to increase that 

18 Federal share, as the Partnership determines to be 

19 appropriate. 

20 (b) RECORDS.— 

21 (1) PARTNERSHIP.— 

22 (A) IN GENERAL.—The Partnership 

23 shall— 
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1 (i) maintain accurate and complete 

2 records of transactions and activities fi3 nanced with Federal amounts; and 

4 (ii) include a summary of those trans5 actions and activities in the annual report 

6 under section 107. 

7 (B) AUDIT.—The records described in sub8 paragraph (A)(i) shall be available for audit by 

9 the President and the Comptroller General. 

10 (2) RECIPIENTS OF FEDERAL ASSISTANCE.— 

11 (A) IN GENERAL.—A recipient of Federal 

12 assistance under this section, as required by the 

13 Partnership, shall— 

14 (i) maintain accurate and complete 

15 records of transactions and activities fi16 nanced with Federal amounts; and 

17 (ii) report to the Partnership on the 

18 transactions and activities. 

19 (B) AUDIT.—The records described in sub20 paragraph (A)(i) shall be available for audit by 

21 the President, the Comptroller General, and the 

22 Partnership. 

23 SEC. 202. APPROVAL OF PROJECTS. 

24 (a) IN GENERAL.—An application for a grant or for 

25 other assistance for a specific project under this title shall
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1 be made through a member of the Partnership rep2 resenting the applicant. 

3 (b) EVALUATION.— 

4 (1) IN GENERAL.—The member shall evaluate 

5 the application for approval in accordance with para6 graph (2). 

7 (2) REQUIREMENTS FOR APPROVAL.—For an 

8 application to be approved, the member shall certify, 

9 and the executive committee shall determine, that 

10 the application— 

11 (A) implements the Partnership—approved 

12 regional development strategy; 

13 (B) adequately ensures that the project 

14 will be properly administered, operated, and 

15 maintained and that project results will be 

16 measured; and 

17 (C) otherwise meets the requirements for 

18 assistance under this title. 

19 TITLE III—INLAND NORTHWEST 

20 REGIONAL PARTNERSHIP RE21 GIONAL INITIATIVES 

22 SEC. 301. INLAND NORTHWEST BUSINESS CLUSTER INITIA23 TIVE. 

24 The Partnership may provide technical assistance, 

25 provide grants, enter into contracts, or otherwise provide 
21

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1 amounts to persons or entities in the Region for business 

2 cluster development efforts that— 

3 (1) increase the competitiveness and sustain4 ability of clusters of related businesses; and 

5 (2) bring together groups of related business 

6 leaders, industry experts, and related stakeholders 

7 and technical assistance providers to develop and im8 plement cluster developments and projects. 

9 SEC. 302. ENTREPRENEURIAL DEVELOPMENT INITIATIVE. 

10 The Partnership may provide technical assistance, 

11 provide grants, enter into contracts, or otherwise provide 

12 amounts to individuals or entities in the Region for entre13 preneurial development efforts that— 

14 (1) organize, educate, and direct local commu15 nities in the Region to identify obstacles to the com16 petitiveness and growth of existing businesses; 

17 (2) assist communities in addressing those ob18 stacles in business retention and expansion programs 

19 with specific implementation actions; 

20 (3) promote and encourage the growth of entre21 preneurial activity in the Region; 

22 (4) bring together entrepreneurship practi23 tioners, academic experts, business leaders, and 

24 technical assistance providers to identify develop and 
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1 implement a prioritized action plan to encourage en2 trepreneurship across the Region; 

3 (5) form a working network of business incu4 bator managers and stakeholders, academic experts, 

5 business leaders, and technical assistance providers; 

6 (6) increase affordable access to advanced tele7 communications, entrepreneurship, and information 

8 technologies or applications in the Region; 

9 (7) provide education and training in the use of 

10 telecommunications and technology; or 

11 (8) develop programs to increase the readiness 

12 of industry groups and businesses in the Region to 

13 engage in electronic commerce. 

14 SEC. 303. TECHNOLOGY COMMERCIALIZATION INITIATIVE. 

15 The Partnership may provide technical assistance, 

16 provide grants, enter into contracts, or otherwise provide 

17 amounts to individuals and entities in the Region for tech18 nology commercialization efforts that— 

19 (1) increase the transfer of technology from 

20 universities, national laboratories, and other tech21 nology centers to businesses, and foster technology 

22 business development, in the Region; 

23 (2) create a network of universities, national 

24 laboratories, business leaders, industry experts, and 

25 States; and 
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1 (3) implement strategies and projects that pro2 mote the growth and development of technology-re3 lated business through technology transfer and re4 lated activities. 

5 SEC. 304. COMMUNITY READINESS INITIATIVE. 

6 The Partnership may provide technical assistance, 

7 provide grants, enter into contracts, or otherwise provide 

8 amounts to persons or entities in the Region for capacity9 building efforts that— 

10 (1) increase the competitiveness and sustain11 ability of local communities; 

12 (2) bring together rural capacity-building prac13 titioners, academic experts, related stakeholders, and 

14 technical assistance providers; and 

15 (3) implement a system of providing assistance 

16 for basic community strategic planning, delivering 

17 more specialized community assessments, and deliv18 ering training to communities across the Region, 

19 using existing service providers to the maximum ex20 tent practicable. 

21 SEC. 305. REGIONAL WORKFORCE DEVELOPMENT. 

22 (a) DEFINITION OF ELIGIBLE ENTITY.—In this sec23 tion, the term ‘‘eligible entity’’ means a consortium that— 

24 (1) is established to serve 1 or more industries 

25 in a specified geographic area; and
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1 (2) consists of representatives of— 

2 (A) businesses (or a nonprofit organization 

3 that represents businesses); 

4 (B) labor organizations; 

5 (C) State and local governments; or 

6 (D) educational institutions. 

7 (b) PROJECTS TO BE ASSISTED.—The Partnership 

8 may provide technical assistance, provide grants, enter 

9 into contracts, or otherwise provide amounts to eligible en10 tities in the Region for projects to improve the job skills 

11 of workers for a specified industry. 

12 TITLE IV—ADMINISTRATION 

13 SEC. 401. CONSENT OF STATES. 

14 Nothing in this title requires a State to engage in 

15 or accept a program under this title without the consent 

16 of the State. 

17 SEC. 402. PROGRAM IMPLEMENTATION. 

18 (a) REQUIREMENTS.—A program, project, or activity 

19 authorized under this chapter shall not be implemented 

20 until— 

21 (1) the responsible Federal official determines 

22 that— 

23 (A) applications and plans relating to the 

24 program, project, or activity are not incompat25 ible with this title; and 
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1 (B) objectives of Federal laws that the offi2 cial administers are not inconsistent with this 

3 title; and 

4 (2) the Partnership has approved the program, 

5 project, or activity and has determined that the pro6 gram, project, or activity— 

7 (A) meets the applicable criteria under sec8 tion 403 and the requirements of the develop9 ment planning process under section 404; and 

10 (B) will contribute to the development of 

11 the Region. 

12 (b) DECISION IS CONTROLLING.—A decision under 

13 subsection (a)(2) shall apply to, and be accepted by, Fed14 eral agencies. 

15 SEC. 403. PROGRAM DEVELOPMENT CRITERIA. 

16 (a) FACTORS TO BE CONSIDERED.—In considering 

17 programs, projects, and activities to be provided assistance 

18 under this title, and in establishing a priority ranking of 

19 the requests for assistance presented to the Partnership, 

20 the Partnership shall follow procedures that will ensure 

21 consideration of— 

22 (1) the relationship of the program, project, or 

23 activity or class of programs, projects, or activities 

24 to overall regional development, including the loca-
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1 tion of the program, project, or activity in a severely 

2 and persistently distressed county or area; 

3 (2) the population and area to be served by the 

4 program, project, or activity or class of programs, 

5 projects, or activities, including the per capita mar6 ket income and the unemployment rates in the area; 

7 (3) the relative financial resources available to 

8 the State or political subdivisions or instrumental9 ities of the State that seek to undertake the pro10 gram, project, or activity; 

11 (4) the importance of the program, project, or 

12 activity or class of programs, projects, or activities 

13 in relation to other programs, projects, or activities 

14 or classes of programs, projects, or activities that 

15 may be in competition for the same amounts; 

16 (5) the prospects that the program, project, or 

17 activity for which assistance is sought will improve, 

18 on a continuing rather than a temporary basis, the 

19 opportunities for employment, the average level of 

20 income, or the economic and social development of 

21 the area served by the program, project, or activity; 

22 and 

23 (6) the extent to which the program, project, or 

24 activity design provides for detailed outcome meas-
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1 urements by which grant expenditures may be evalu2 ated. 

3 (b) LIMITATION ON USE.—Financial assistance made 

4 available under this title shall not be used to assist estab5 lishments relocating from 1 area to another. 

6 (c) DETERMINATION REQUIRED BEFORE AMOUNTS

7 MAY BE PROVIDED.—Amounts may be provided for pro8 grams, projects, or activities in a State under this title 

9 only if the Partnership determines that the level of Fed10 eral and State financial assistance under other laws for 

11 the same type of programs, projects, or activities in that 

12 part of the State within the Region will not be diminished 

13 in order to substitute amounts authorized by this title. 

14 (d) MINIMUM AMOUNT OF ASSISTANCE TO DIS15 TRESSED COUNTIES AND AREAS.—For each fiscal year, 

16 not less than 50 percent of the amount of grant expendi17 tures approved by the Partnership shall support activities 

18 or projects that benefit severely and persistently distressed 

19 counties and areas. 

20 SEC. 404. REGIONAL DEVELOPMENT PLANNING PROCESS. 

21 (a) REGIONAL PLANNING AND COORDINATION.— 

22 (1) IN GENERAL.—In accordance with such 

23 guidelines as shall be established by the Partnership, 

24 each State and tribal member shall be encouraged to 

25 submit to the Partnership a development plan for
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1 the 1 or more areas of the State, or area under the 

2 jurisdiction of the tribal member, within the Region. 

3 (2) REQUIREMENTS.—The plan shall— 

4 (A) reflect the goals, objectives, and prior5 ities identified in the regional development plan 

6 and in any subregional development plan that 

7 may be approved for the subregion of which the 

8 State is a part; 

9 (B) describe the goals, objectives, and pri10 orities of the State for the Region, as estab11 lished by the Governor, and identify the needs 

12 on which the goals, objectives, and priorities are 

13 based; and 

14 (C) describe the development strategies for 

15 achieving the goals, objectives, and priorities 

16 (including availability of funding sources and 

17 recommendations for specific projects to receive 

18 assistance under this title). 

19 (b) REGION-WIDE ACTION PROGRAMS.— 

20 (1) IN GENERAL.—The Partnership shall en21 courage the preparation and execution of area-wide 

22 action programs. 

23 (2) EXISTING PLANS.—The action programs 

24 shall make appropriate use of existing plans affect25 ing the area. 
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1 (c) FEDERAL RESPONSIBILITIES.—To the maximum 

2 extent practicable, Federal departments, agencies, and in3 strumentalities undertaking or providing financial assist4 ance for programs, projects, or activities in the Region 

5 shall— 

6 (1) take into account the policies, goals, and ob7 jectives the Partnership and member States of the 

8 Partnership established under this Act; and 

9 (2) recognize development strategies for the Re10 gion that are approved by the Partnership as satis11 fying requirements for overall economic development 

12 planning under the programs, projects, or activities. 

13 SEC. 405. DISTRESSED AND ECONOMICALLY STRONG COUN14 TIES. 

15 (a) DESIGNATIONS.— 

16 (1) IN GENERAL.—The Partnership, in accord17 ance with such criteria as the Partnership may es18 tablish, shall annually— 

19 (A) designate as ‘‘distressed counties’’ 

20 those counties in the Region that are the most 

21 severely and persistently distressed; and 

22 (B) designate 2 categories of economically 

23 strong counties, consisting of— 

24 (i) ‘‘competitive counties’’, which shall 

25 be those counties in the Region that are 
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1 approaching economic parity with the rest 

2 of the United States; and 

3 (ii) ‘‘attainment counties’’, which shall 

4 be those counties in the Region that have 

5 attained or exceeded economic parity with 

6 the rest of the United States. 

7 (2) ANNUAL REVIEW OF DESIGNATIONS.—The 

8 Partnership shall— 

9 (A) conduct an annual review of each des10 ignation of a county under paragraph (1) to de11 termine if the county still meets the criteria for 

12 the designation; and 

13 (B) renew the designation for another 1-

14 year period only if the county still meets the 

15 criteria. 

16 (b) DISTRESSED COUNTIES.—In developing and im17 plementing programs, projects, and activities under this 

18 title, and in allocating amounts made available to carry 

19 out this title, the Partnership shall give special consider20 ation to the needs of counties for which a distressed coun21 ty designation is in effect under this section. 

22 (c) ECONOMICALLY STRONG COUNTIES.— 

23 (1) COMPETITIVE COUNTIES.—Except as pro24 vided in paragraphs (3) and (4), assistance under 

25 this title for a program, project, or activity that is 
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1 carried out in a county for which a competitive coun2 ty designation is in effect under this section shall 

3 not be more than 30 percent of the cost of the pro4 gram, project, or activity. 

5 (2) ATTAINMENT COUNTIES.—Except as pro6 vided in paragraphs (3) and (4), amounts may not 

7 be provided under this title for a program, project, 

8 or activity that is carried out in a county for which 

9 an attainment county designation is in effect under 

10 this section. 

11 (3) EXCEPTIONS.—Paragraphs (1) and (2) do 

12 not apply to a multicounty project that is carried out 

13 in at least 2 counties designated under this section, 

14 if— 

15 (A) at least 1 of the participating counties 

16 is designated as a distressed county under this 

17 section; and 

18 (B) the project will be of substantial direct 

19 benefit to at least 1 distressed county. 

20 (4) WAIVER.—The Partnership may waive the 

21 requirements of paragraphs (1) and (2) for a pro22 gram, project, or activity if the recipient of assist23 ance for the program, project, or activity dem24 onstrates the existence of any of the following: 
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1 (A) A significant area of distress in the 

2 part of the county in which the program, 

3 project, or activity is carried out. 

4 (B) A significant potential benefit from the 

5 program, project, or activity in at least 1 area 

6 of the Region outside the designated county. 

7 TITLE V—MISCELLANEOUS 

8 SEC. 501. AUTHORIZATION OF APPROPRIATIONS. 

9 (a) IN GENERAL.—There are authorized to be appro10 priated such sums as are necessary to carry out this Act. 

11 (b) AVAILABILITY.—Amounts made available under 

12 subsection (a) shall remain available until expended. 

13 SEC. 502. CESSATION OF EFFECTIVENESS. 

14 This Act (except subsections (a)(1) and (b) of section 

15 102) ceases to be effective October 1, 2012.

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