I 

108TH CONGRESS 

2D SESSION H. R. 4739 

To establish the Northeast Regional Development Commission, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 25, 2004 

Mr. MICHAUD (for himself, Mr. ALLEN, Mr. BASS, Mr. SANDERS, and Mr. 

MCHUGH) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Financial Services, for a period to be subsequently determined 

by the Speaker, in each case for consideration of such provisions as fall 

within the jurisdiction of the committee concerned 

A BILL 

To establish the Northeast Regional Development 

Commission, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; FINDINGS. 

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

5 ‘‘Northeast Regional Development Commission Act of 

6 2004’’. 

7 (b) FINDINGS.—Congress finds the following: 
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1 (1) The northeastern border region of the Na2 tion, while abundant in natural resources and rich in 

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

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

7 industries and agriculture has failed to provide an 

8 adequate economic base for vigorous, self-sustaining 

9 growth. 

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

13 sustainability. 

14 (4) State and local governments and the people 

15 of the region have made progress in addressing the 

16 region’s economic problems and will continue to 

17 work purposefully toward their solution. 

18 (5) Economic development of the region is fea19 sible, desirable, and urgently needed. 

20 (6) Providing Federal assistance to the region 

21 is necessary to address the region’s special economic 

22 problems and promote its economic development on 

23 a coordinated and concerted regional basis. 

24 (7) In directing Federal assistance to the re25 gion, the traditional industries of the region should 
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1 be preserved, including the manufacturing, tourism, 

2 forestry, natural resources, agriculture, alternative 

3 transportation, snowmobiling, and recreation indus4 tries. In addition, it is desirable to support growing 

5 industries such as the creative economy. 

6 (8) In directing Federal assistance to the re7 gion, the historic character, recreational value, eco8 logical integrity, and productive capacity of the his9 toric forestlands are valuable resources that should 

10 be preserved to maximize prosperity in the region. 

11 SEC. 2. DEFINITIONS. 

12 In this Act, the following definitions apply: 

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

14 means the Northeast Regional Development Com15 mission established by section 3. 

16 (2) FEDERAL GRANT PROGRAM.—The term 

17 ‘‘Federal grant program’’ means a Federal grant 

18 program to provide assistance in carrying out eco19 nomic and community development activities. 

20 (3) NON-PROFIT ENTITY.—The term ‘‘non-prof21 it entity’’ means any entity with tax-exempt or non22 profit status, as defined by the Internal Revenue 

23 Service. 
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1 (4) REGION.—The term ‘‘region’’ means the 

2 area covered by the Commission (as described in sec3 tion 15). 

4 SEC. 3. NORTHEAST REGIONAL DEVELOPMENT COMMIS5 SION. 

6 (a) ESTABLISHMENT.— 

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

8 Northeast Regional Development Commission. 

9 (2) COMPOSITION.—The Commission shall be 

10 composed of— 

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

12 the President, with the advice and consent of 

13 the Senate; and 

14 (B) the Governor of each State in the re15 gion that elects to participate in the Commis16 sion. 

17 (3) COCHAIRPERSONS.—The Commission shall 

18 be headed by— 

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

20 (i) as the Federal cochairperson; and 

21 (ii) as a liaison between the Federal 

22 Government and the Commission; and 

23 (B) a State cochairperson, who— 

24 (i) shall be a Governor of a partici25 pating State in the region; and 
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1 (ii) shall be elected by the State mem2 bers for a term of not less than 1 year. 

3 (b) ALTERNATE MEMBERS.— 

4 (1) STATE ALTERNATES.— 

5 (A) APPOINTMENT.—The State member of 

6 a participating State may have a single alter7 nate, who shall be appointed by the Governor of 

8 the State from among the Governor’s cabinet or 

9 personal staff. 

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

11 the event of the absence, death, disability, re12 moval, or resignation of the member for whom 

13 the individual is an alternate. 

14 (2) ALTERNATE FEDERAL COCHAIRPERSON.— 

15 The President shall appoint an alternate Federal co16 chairperson. 

17 (3) QUORUM.— 

18 (A) IN GENERAL.—Subject to the require19 ments of this paragraph, the Commission shall 

20 determine what constitutes a quorum of the 

21 Commission. 

22 (B) FEDERAL COCHAIRPERSON.—The 

23 Federal cochairperson or the Federal cochair24 person’s designee must be present for the estab25 lishment of a quorum of the Commission. 
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1 (C) STATE ALTERNATES.—A State alter2 nate shall not be counted toward the establish3 ment of a quorum of the Commission. 

4 (4) DELEGATION OF POWER.—No power or re5 sponsibility of the Commission specified in para6 graphs (3) and (4) of subsection (c), and no voting 

7 right of any Commission member, shall be delegated 

8 to any person— 

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

10 (B) who is not entitled to vote in Commis11 sion meetings. 

12 (c) DECISIONS.— 

13 (1) REQUIREMENTS FOR APPROVAL.—Except 

14 as provided in subsection (g), decisions by the Com15 mission shall require the affirmative vote of the Fed16 eral cochairperson and of a majority of the State 

17 members, exclusive of members representing States 

18 delinquent under subsection (g)(2)(C). 

19 (2) CONSULTATION.—In matters coming before 

20 the Commission, the Federal cochairperson, to the 

21 extent practicable, shall consult with the Federal de22 partments and agencies having an interest in the 

23 subject matter. 
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1 (3) DECISIONS REQUIRING QUORUM OF STATE

2 MEMBERS.—The following decisions may not be 

3 made without a quorum of State members: 

4 (A) A decision involving Commission pol5 icy. 

6 (B) Approval of State, regional, or sub7 regional development plans or strategy state8 ments. 

9 (C) Modification or revision of the Com10 mission’s code. 

11 (D) Allocation of amounts among the 

12 States. 

13 (4) PROJECT AND GRANT PROPOSALS.—The ap14 proval of project and grant proposals is a responsi15 bility of the Commission and shall be carried out in 

16 accordance with section 9. 

17 (d) DUTIES.—The Commission shall— 

18 (1) develop, on a continuing basis, comprehen19 sive and coordinated plans and programs to establish 

20 priorities and approve grants for the economic devel21 opment of the region, giving due consideration to 

22 other Federal, State, and local planning and devel23 opment activities in the region; 

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

25 enactment of this Act, establish priorities in a devel-
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1 opment plan for the region (including 5-year re2 gional outcome targets); 

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

4 region based on available research, demonstration 

5 projects, assessments, and evaluations of the region 

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

7 development districts, and any other relevant source; 

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

9 support for, local development districts in the region; 

10 or 

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

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

13 creation of a local development district; 

14 (5) allow the participation of representatives of 

15 local development districts, and other appropriate or16 ganizations as approved by the Commission, in all 

17 proceedings of the Commission conducted under sub18 section (e)(1), either in-person or through interactive 

19 telecommunications; 

20 (6) encourage private investment in industrial, 

21 commercial, and other economic development 

22 projects in the region; and 

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

24 enactment of this Act, initiate a special resource 

25 study for the north woods of Maine, which study— 
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1 (A) shall be carried out in cooperation with 

2 appropriate local, State, and Federal officials; 

3 and 

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

5 development trends and propose options for fu6 ture management, ownership, conservation, and 

7 development of land to maximize job creation 

8 and ecological value. 

9 (e) ADMINISTRATION.—In carrying out subsection 

10 (d), the Commission may— 

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

12 times and places, take such testimony, receive such 

13 evidence, and print or otherwise reproduce and dis14 tribute a description of the proceedings and reports 

15 on actions by the Commission as the Commission 

16 considers appropriate; 

17 (2) authorize, through the Federal or State co18 chairperson or any other member of the Commission 

19 designated by the Commission, the administration of 

20 oaths if the Commission determines that testimony 

21 should be taken or evidence received under oath; 

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

23 department or agency such information as may be 

24 available to or procurable by the department or 
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1 agency that may be of use to the Commission in car2 rying out duties of the Commission; 

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

4 governing the conduct of Commission business and 

5 the performance of Commission duties; 

6 (5) request the head of any Federal department 

7 or agency to detail to the Commission such per8 sonnel as the Commission requires to carry out du9 ties of the Commission, each such detail to be with10 out loss of seniority, pay, or other employee status; 

11 (6) request the head of any State department 

12 or agency or local government to detail to the Com13 mission such personnel as the Commission requires 

14 to carry out duties of the Commission, each such de15 tail to be without loss of seniority, pay, or other em16 ployee status; 

17 (7) provide for coverage of Commission employ18 ees in a suitable retirement and employee benefit 

19 system by— 

20 (A) making arrangements or entering into 

21 contracts with any participating State govern22 ment; or 

23 (B) otherwise providing retirement and 

24 other employee benefit coverage; 
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1 (8) accept, use, and dispose of gifts or dona2 tions of services or real, personal, tangible, or intan3 gible property; 

4 (9) enter into and perform such contracts or 

5 other transactions as are necessary to carry out 

6 Commission duties; 

7 (10) establish and maintain a central office lo8 cated within the Northeast Regional Development 

9 Commission region and field offices at such locations 

10 as the Commission may select; and 

11 (11) provide for an appropriate level of rep12 resentation in Washington, DC. 

13 (f) FEDERAL AGENCY COOPERATION.—A Federal 

14 agency shall— 

15 (1) cooperate with the Commission; and 

16 (2) provide, on request of the Federal cochair17 person, appropriate assistance in carrying out this 

18 Act, in accordance with applicable Federal laws (in19 cluding regulations). 

20 (g) ADMINISTRATIVE EXPENSES.— 

21 (1) IN GENERAL.—Administrative expenses of 

22 the Commission (except for the expenses of the Fed23 eral cochairperson, including expenses of the alter24 nate and staff of the Federal cochairperson, which 
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1 shall be paid solely by the Federal Government) 

2 shall be paid— 

3 (A) by the Federal Government, in an 

4 amount equal to 50 percent of the administra5 tive expenses; and 

6 (B) by the States in the region partici7 pating in the Commission, in an amount equal 

8 to 50 percent of the administrative expenses. 

9 (2) STATE SHARE.— 

10 (A) IN GENERAL.—The share of adminis11 trative expenses of the Commission to be paid 

12 by each State shall be determined by the Com13 mission. 

14 (B) NO FEDERAL PARTICIPATION.—The 

15 Federal cochairperson shall not participate or 

16 vote in any decision under subparagraph (A). 

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

18 delinquent in payment of the State’s share of 

19 administrative expenses of the Commission 

20 under this subsection— 

21 (i) no assistance under this Act shall 

22 be furnished to the State (including assist23 ance to a political subdivision or a resident 

24 of the State); and 
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1 (ii) no member of the Commission 

2 from the State shall participate or vote in 

3 any action by the Commission. 

4 (h) COMPENSATION.— 

5 (1) FEDERAL COCHAIRPERSON.—The Federal 

6 cochairperson shall be compensated by the Federal 

7 Government at level III of the Executive Schedule in 

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

9 Code. 

10 (2) ALTERNATE FEDERAL COCHAIRPERSON.— 

11 The alternate Federal cochairperson— 

12 (A) shall be compensated by the Federal 

13 Government at level V of the Executive Sched14 ule described in paragraph (1); and 

15 (B) when not actively serving as an alter16 nate for the Federal cochairperson, shall per17 form such functions and duties as are delegated 

18 by the Federal cochairperson. 

19 (3) STATE MEMBERS AND ALTERNATES.— 

20 (A) IN GENERAL.—A State shall com21 pensate each member and alternate rep22 resenting the State on the Commission at the 

23 rate established by law of the State. 

24 (B) NO ADDITIONAL COMPENSATION.—No 

25 State member or alternate member shall receive 
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1 any salary, or any contribution to or sup2 plementation of salary from any source other 

3 than the State for services provided by the 

4 member or alternate to the Commission. 

5 (4) DETAILED EMPLOYEES.— 

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

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

8 shall receive any salary or any contribution to 

9 or supplementation of salary for services pro10 vided to the Commission from— 

11 (i) any source other than the State, 

12 local, or intergovernmental department or 

13 agency from which the person was detailed; 

14 or 

15 (ii) the Commission. 

16 (B) VIOLATION.—Any person that violates 

17 this paragraph shall be fined not more than 

18 $5,000, imprisoned not more than 1 year, or 

19 both. 

20 (C) APPLICABLE LAW.—The Federal co21 chairperson, the alternate Federal cochair22 person, and any Federal officer or employee de23 tailed to duty on the Commission under sub24 section (e)(5) shall not be subject to subpara25 graph (A), but shall remain subject to sections 
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1 202 through 209 of title 18, United States 

2 Code. 

3 (5) ADDITIONAL PERSONNEL.— 

4 (A) COMPENSATION.— 

5 (i) IN GENERAL.—The Commission 

6 may appoint and fix the compensation of 

7 an executive director and such other per8 sonnel as are necessary to enable the Com9 mission to carry out the duties of the Com10 mission. 

11 (ii) EXCEPTION.—Compensation 

12 under clause (i) shall not exceed the max13 imum rate for the Senior Executive Service 

14 under section 5382 of title 5, United 

15 States Code, including any applicable local16 ity-based comparability payment that may 

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

18 of that title. 

19 (B) EXECUTIVE DIRECTOR.—The executive 

20 director shall be responsible for— 

21 (i) the carrying out of the administra22 tive duties of the Commission; 

23 (ii) direction of the Commission staff; 

24 and 
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1 (iii) such other duties as the Commis2 sion may assign. 

3 (C) NO FEDERAL EMPLOYEE STATUS.—No 

4 member, alternate, officer, or employee of the 

5 Commission (except the Federal cochairperson 

6 of the Commission, the alternate and staff for 

7 the Federal cochairperson, and any Federal em8 ployee detailed to the Commission under sub9 section (e)(5)) shall be considered to be a Fed10 eral employee for any purpose. 

11 (i) CONFLICTS OF INTEREST.— 

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

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

14 or employee of the Commission shall participate per15 sonally and substantially as a member, alternate, of16 ficer, or employee of the Commission, through deci17 sion, approval, disapproval, recommendation, the 

18 rendering of advice, investigation, or otherwise, in 

19 any proceeding, application, request for a ruling or 

20 other determination, contract, claim, controversy, or 

21 other matter in which, to knowledge of the member, 

22 alternate, officer, or employee any of the following 

23 persons has a financial interest: 

24 (A) The member, alternate, officer, or em25 ployee. 
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1 (B) The spouse, minor child, partner, or 

2 organization (other than a State or political 

3 subdivision of the State) of the member, alter4 nate, officer, or employee, in which the member, 

5 alternate, officer, or employee is serving as offi6 cer, director, trustee, partner, or employee. 

7 (C) Any person or organization with whom 

8 the member, alternate, officer, or employee is 

9 negotiating or has any arrangement concerning 

10 prospective employment. 

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

12 apply if the State member, alternate, officer, or em13 ployee— 

14 (A) immediately advises the Commission of 

15 the nature and circumstances of the proceeding, 

16 application, request for a ruling or other deter17 mination, contract, claim, controversy, or other 

18 particular matter presenting a potential conflict 

19 of interest; 

20 (B) makes full disclosure of the financial 

21 interest; and 

22 (C) before the proceeding concerning the 

23 matter presenting the conflict of interest, re24 ceives a written determination by the Commis25 sion that the interest is not so substantial as to 
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1 be likely to affect the integrity of the services 

2 that the Commission may expect from the State 

3 member, alternate, officer, or employee. 

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

5 subsection shall be fined not more than $10,000, im6 prisoned not more than 2 years, or both. 

7 (j) VALIDITY OF CONTRACTS, LOANS, AND

8 GRANTS.—The Commission may declare void any con9 tract, loan, or grant of or by the Commission in relation 

10 to which the Commission determines that there has been 

11 a violation of any provision under subsection (h)(4), sub12 section (i), or sections 202 through 209 of title 18, United 

13 States Code. 

14 SEC. 4. ECONOMIC AND COMMUNITY DEVELOPMENT 

15 GRANTS. 

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

17 grants to States, local development districts (as defined 

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

19 projects, approved in accordance with section 9— 

20 (1) to develop the infrastructure of the region 

21 for the purpose of facilitating economic development 

22 in the region (except that grants for this purpose 

23 may only be made to a State or local government); 
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1 (2) to assist the region in obtaining job train2 ing, employment-related education, and business de3 velopment; 

4 (3) to assist the region in community and eco5 nomic development; 

6 (4) to provide assistance to severely distressed 

7 and underdeveloped areas; and 

8 (5) to otherwise achieve the purposes of this 

9 Act. 

10 (b) FUNDING.— 

11 (1) IN GENERAL.—Funds for grants under sub12 section (a) may be provided— 

13 (A) entirely from appropriations to carry 

14 out this section; 

15 (B) in combination with funds available 

16 under another State or Federal grant program; 

17 or 

18 (C) from any other source. 

19 (2) ELIGIBLE PROJECTS.—The Commission 

20 may provide assistance, make grants, enter into con21 tracts, and otherwise provide funds to eligible enti22 ties in the region for projects that promote— 

23 (A) business development; 

24 (B) job training or employment-related 

25 education; 
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1 (C) local planning and leadership develop2 ment; 

3 (D) basic public infrastructure, including 

4 high-tech infrastructure and productive natural 

5 resource conservation; 

6 (E) information and technical assistance 

7 for the modernization and diversification of the 

8 forest products industry to support value-added 

9 forest products enterprises; 

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

11 and heritage tourism; and 

12 (G) any other project facilitating economic 

13 development in the region. 

14 (3) FEDERAL SHARE.—Notwithstanding any 

15 provision of law limiting the Federal share in any 

16 grant program, funds appropriated to carry out this 

17 section may be used to increase a Federal share in 

18 a grant program, as the Commission determines ap19 propriate. 

20 SEC. 5. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS. 

21 (a) FEDERAL GRANT PROGRAM FUNDING.—In ac22 cordance with subsection (b), the Federal cochairperson 

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

24 without regard to any limitations on areas eligible for as25 sistance or authorizations for appropriation under any 
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1 other Act, to fund all or any portion of the basic Federal 

2 contribution to a project or activity under a Federal grant 

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

4 maximum portion of the cost of the project otherwise au5 thorized by applicable law, but not to exceed 80 percent 

6 of the costs of the project. 

7 (b) CERTIFICATION.— 

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

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

10 Federal contribution to the project under a Federal 

11 grant program is proposed to be made under this 

12 section, no Federal contribution shall be made until 

13 the Federal official administering the Federal law 

14 authorizing the contribution certifies that the pro15 gram or project— 

16 (A) meets the applicable requirements of 

17 the applicable Federal grant law; and 

18 (B) could be approved for Federal con19 tribution under the law if funds were available 

20 under the law for the program or project. 

21 (2) CERTIFICATION BY COMMISSION.— 

22 (A) IN GENERAL.—The certifications and 

23 determinations required to be made by the 

24 Commission for approval of projects under this 

25 Act in accordance with section 9— 
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1 (i) shall be controlling; and 

2 (ii) shall be accepted by the Federal 

3 agencies. 

4 (B) ACCEPTANCE BY FEDERAL COCHAIR5 PERSON.—Any finding, report, certification, or 

6 documentation required to be submitted to the 

7 head of the department, agency, or instrumen8 tality of the Federal Government responsible for 

9 the administration of any Federal grant pro10 gram shall be accepted by the Federal cochair11 person with respect to a supplemental grant for 

12 any project under the program. 

13 SEC. 6. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION 

14 AND ADMINISTRATIVE EXPENSES. 

15 (a) DEFINITION OF LOCAL DEVELOPMENT DIS16 TRICT.—In this section, the term ‘‘local development dis17 trict’’ means an entity designated by the State that— 

18 (1) is— 

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

20 the date of enactment of this Act that is recog21 nized by the Economic Development Adminis22 tration of the Department of Commerce; or 

23 (ii) a development district recognized by 

24 the State; or 
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1 (B) if an entity described in subparagraph 

2 (A)(i) or (A)(ii) does not exist, an entity des3 ignated by the Commission that satisfies the 

4 criteria developed by the Economic Develop5 ment Administration for a local development 

6 district; and 

7 (2) has not, as certified by the Federal cochair8 person— 

9 (A) inappropriately used Federal grant 

10 funds from any Federal source; or 

11 (B) appointed an officer who, during the 

12 period in which another entity inappropriately 

13 used Federal grant funds from any Federal 

14 source, was an officer of the other entity. 

15 (b) GRANTS TO LOCAL DEVELOPMENT DISTRICTS.— 

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

17 grants for administrative expenses under this sec18 tion. 

19 (2) CONDITIONS FOR GRANTS.— 

20 (A) MAXIMUM AMOUNT.—The amount of 

21 any grant awarded under paragraph (1) shall 

22 not exceed 80 percent of the administrative ex23 penses of the local development district receiv24 ing the grant. 
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1 (B) LOCAL SHARE.—The contributions of 

2 a local development district for administrative 

3 expenses may be in cash or in kind, fairly evalu4 ated, including space, equipment, and services. 

5 (c) DUTIES OF LOCAL DEVELOPMENT DISTRICTS.— 

6 A local development district shall— 

7 (1) operate as a lead organization serving 

8 multicounty areas in the region at the local level; 

9 and 

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

11 governments, nonprofit organizations (including 

12 community-based groups and educational institu13 tions), the business community, and citizens that— 

14 (A) are involved in multijurisdictional plan15 ning; 

16 (B) provide technical assistance to local ju17 risdictions and potential grantees; and 

18 (C) provide leadership and civic develop19 ment assistance. 

20 SEC. 7. DEVELOPMENT PLANNING PROCESS. 

21 (a) STATE DEVELOPMENT PLAN.—In accordance 

22 with policies established by the Commission, each State 

23 member shall submit a development plan for the area of 

24 the region represented by the State member. 
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1 (b) CONTENT OF PLAN.—A State development plan 

2 submitted under subsection (a) shall reflect the goals, ob3 jectives, and priorities identified in the regional develop4 ment plan developed under section 3(d)(2). 

5 (c) CONSULTATION.—In carrying out the develop6 ment planning process, a State shall— 

7 (1) consult with— 

8 (A) local development districts; 

9 (B) local units of government; and 

10 (C) institutions of higher learning; and 

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

12 priorities, and recommendations of the entities de13 scribed in paragraph (1). 

14 (d) PUBLIC PARTICIPATION.—The Commission and 

15 applicable State and local development districts shall en16 courage and assist, to the maximum extent practicable, 

17 public participation in the development, revision, and im18 plementation of all plans and programs under this Act. 

19 SEC. 8. PROGRAM DEVELOPMENT CRITERIA. 

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

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

22 establishing a priority ranking of the requests for assist23 ance provided by the Commission, the Commission shall 

24 follow procedures that ensure, to the maximum extent 

25 practicable, consideration of— 
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1 (1) the relationship of the project to overall re2 gional development; 

3 (2) the per capita income and poverty and un4 employment rates and other socioeconomic indicators 

5 in an area; 

6 (3) the financial resources available to the ap7 plicants for assistance seeking to carry out the 

8 project, with emphasis on ensuring that projects are 

9 adequately financed to maximize the probability of 

10 successful economic development; 

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

12 other projects that may be in competition for the 

13 same funds; 

14 (5) the prospects that the project for which as15 sistance is sought will improve, on a continuing rath16 er than a temporary basis, the opportunities for em17 ployment, the average level of income, or the eco18 nomic development of the area served by the project; 

19 and 

20 (6) the extent to which the project design pro21 vides for detailed outcome measurements by which 

22 grant expenditures and the results of the expendi23 tures may be evaluated. 
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1 (b) NO RELOCATION ASSISTANCE.—No financial as2 sistance authorized by this Act shall be used to assist an 

3 establishment in relocating from 1 area to another. 

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

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

6 if the Commission determines that the level of Federal or 

7 State financial assistance provided under a law other than 

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

9 same area of the State within the region, will not be re10 duced as a result of funds made available by this Act. 

11 SEC. 9. APPROVAL OF DEVELOPMENT PLANS AND 

12 PROJECTS. 

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

14 plan or any multistate subregional plan that is proposed 

15 for development under this Act shall be reviewed by the 

16 Commission. 

17 (b) EVALUATION BY STATE MEMBER.—An applica18 tion for a grant or any other assistance for a project under 

19 this Act shall be made through and evaluated for approval 

20 by the State member of the Commission representing the 

21 applicant. 

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

23 other assistance for a project shall be approved only on 

24 certification by the State member and Federal cochair25 person that the application for the project— 
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1 (1) describes ways in which the project complies 

2 with any applicable State development plan; 

3 (2) meets applicable criteria under section 8; 

4 (3) provides adequate assurance that the pro5 posed project will be properly administered, oper6 ated, and maintained; and 

7 (4) otherwise meets the requirements of this 

8 Act. 

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

10 application for a grant or other assistance for a specific 

11 project under this section, an affirmative vote of the Com12 mission under section 3(c) shall be required for approval 

13 of the application. 

14 SEC. 10. CONSENT OF STATES. 

15 Nothing in this Act requires any State to engage in 

16 or accept any program under this Act without the consent 

17 of the State. 

18 SEC. 11. RECORDS. 

19 (a) RECORDS OF THE COMMISSION.— 

20 (1) IN GENERAL.—The Commission shall main21 tain accurate and complete records of all trans22 actions and activities of the Commission. 

23 (2) AVAILABILITY.—All records of the Commis24 sion shall be available for audit and examination by 

25 the Comptroller General of the United States (in-
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1 cluding authorized representatives of the Comp2 troller General). 

3 (b) RECORDS OF RECIPIENTS OF FEDERAL ASSIST4 ANCE.— 

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

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

7 maintain accurate and complete records of trans8 actions and activities financed with Federal funds 

9 and report on the transactions and activities to the 

10 Commission. 

11 (2) AVAILABILITY.—All records required under 

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

13 Comptroller General of the United States, and the 

14 Commission (including authorized representatives of 

15 the Comptroller General, and the Commission). 

16 SEC. 12. ANNUAL REPORT. 

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

18 year, the Commission shall submit to the President and 

19 to Congress a report describing the activities carried out 

20 under this Act. 

21 SEC. 13. AUTHORIZATION OF APPROPRIATIONS. 

22 (a) IN GENERAL.—There is authorized to be appro23 priated to the Commission to carry out this Act 

24 $40,000,000 for each of fiscal years 2005 through 2009, 

25 to remain available until expended. 
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1 (b) ADMINISTRATIVE EXPENSES.—Not more than 5 

2 percent of the amount appropriated under subsection (a) 

3 for a fiscal year shall be used for administrative expenses 

4 of the Commission. 

5 SEC. 14. TERMINATION OF COMMISSION. 

6 This Act shall have no force or effect on or after Oc7 tober 1, 2009. 

8 SEC. 15. AREA COVERED BY NORTHEAST REGIONAL DEVEL9 OPMENT COMMISSION. 

10 (a) IN GENERAL.—The Northeast Regional Develop11 ment Commission region means the area consisting of the 

12 following: [To Be Supplied (to include all appropriate eco13 nomically distressed areas and counties in the region)]. 

14 (b) LIMITATION.—A county or other political subdivi15 sion that is eligible for assistance from the Appalachian 

16 Regional Commission shall not be eligible for assistance 

17 from the Northeast Regional Development Commission. 

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