Union Calendar No. 270

103D CONGRESS

2D SESSION H. R. 2442

[Report No. 103–423, Parts I and II]

A BILL

To reauthorize appropriations under the Public

grams, and for other purposes.retary of Commerce to administer grant proof the Act to improve the authority of the Secas amended, to revise administrative provisionsWorks and Economic Development Act of 1965,

APRIL 26, 1994

Reported from the Committee on Banking, Finance and

Union, and ordered to be printedCommittee of the Whole House on the State of theUrban Affairs with amendments, committed to the
IB

Union Calendar No. 270

103D CONGRESS

2D SESSION H. R. 2442

[Report No. 103–423, Parts I and II]

To reauthorize appropriations under the Public Works and Economic Development Act of 1965, as amended, to revise administrative provisions of

the Act to improve the authority of the Secretary of Commerce to

administer grant programs, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 16, 1993

Mr. WISE (for himself, Mr. MINETA, Mr. SHUSTER, and Ms. MOLINARI) (all

by request) introduced the following bill; which was referred to the Committee on Public Works and Transportation

FEBRUARY 10, 1994

Reported with amendments, referred to the Committee on Banking, Finance

and Urban Affairs for a period ending not later than April 22, 1994, for

consideration of such provisions of the bill and amendments as fall within

the jurisdiction of that committee pursuant to clause 1(d), rule X

[Strike out all after the enacting clause and insert the part printed in italic]

APRIL 22, 1994

Referral to the Committee on Banking, Finance and Urban Affairs extended

for a period ending not later than April 26, 1994

APRIL 26, 1994

Additional sponsors: Mr. ROGERS and Mr. BARLOW

APRIL 26, 1994

Reported from the Committee on Banking, Finance and Urban Affairs with

amendments, committed to the Committee of the Whole House on the

State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in boldface]

[For text of introduced bill, see copy of bill as introduced on June 16, 1993]
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A BILL

To reauthorize appropriations under the Public Works and

Economic Development Act of 1965, as amended, to

revise administrative provisions of the Act to improve

the authority of the Secretary of Commerce to administer

grant programs, 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.

4 This Act may be cited as the ‘‘Economic Development

5 Reauthorization Act of 1994’’.

6 TITLE I—ECONOMIC

7 DEVELOPMENT PROGRAMS

8 SEC. 101. GRANTS FOR PUBLIC WORKS FACILITIES.

9 Section 105 of the Public Works and Economic Devel10 opment Act of 1965 (42 U.S.C. 3135) is amended to read

11 as follows:

12 ‘‘SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

13 ‘‘(a) IN GENERAL.—There is authorized to be appro14 priated to carry out this title $160,000,000 for fiscal year

15 1994 and $175,000,000 per fiscal year for each of fiscal

16 years 1995 and 1996. Such sums shall remain available

17 until expended.

18 ‘‘(b) EXPENDITURES IN REDEVELOPMENT AREAS.—

19 Not less than 15 percent nor more than 35 percent of the

20 amounts appropriated pursuant to subsection (a) in a fiscal
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1 year shall be expended in areas which qualify as redevelop2 ment areas under section 401(a)(4).’’.

3 SEC. 102. TECHNICAL ASSISTANCE, RESEARCH, AND INFOR4 MATION.

5 Section 303 of the Public Works and Economic Devel6 opment Act of 1965 (42 U.S.C. 3152) is amended to read

7 as follows:

8 ‘‘SEC. 303. AUTHORIZATION OF APPROPRIATIONS.

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

10 this title $37,100,000 for fiscal year 1994 and $50,000,000

11 per fiscal year for each of fiscal years 1995 and 1996. Such

12 sums shall remain available until expended.’’.

13 SEC. 103. BUSINESS OUTREACH CENTER DEMONSTRATION

14 PROJECT.

15 Title III of the Public Works and Economic Develop16 ment Act of 1965 (42 U.S.C. 3151–3153) is amended by

17 adding at the end the following new section:

18 ‘‘SEC. 305. BUSINESS OUTREACH CENTER DEMONSTRATION

19 PROJECT.

20 ‘‘(a) IN GENERAL.—The Secretary shall conduct a

21 project in each of fiscal years 1994 through 1996 with funds

22 made available under this title for the purpose of dem23 onstrating methods of assisting isolated small businesses to

24 access small business services provided by Federal, State,

25 and local governments.
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1 ‘‘(b) ESTABLISHMENT OF CENTERS.—In conducting

2 the demonstration project under this section, the Secretary

3 shall establish three business outreach centers.

4 ‘‘(c) PURPOSE OF CENTERS.—It shall be the purpose

5 of each business outreach center established under this sec6 tion—

7 ‘‘(1) to provide a one-stop clearinghouse to assist

8 isolated small businesses in accessing small business

9 services provided by Federal, State, and local govern10 ments; and

11 ‘‘(2) to improve efficiency in the delivery of such

12 services.

13 ‘‘(d) SERVICES TO BE PROVIDED.—Each business out14 reach center established under this section shall provide the

15 following services:

16 ‘‘(1) Outreach to isolated small businesses.

17 ‘‘(2) Assessment of the need of isolated small

18 businesses for assistance services.

19 ‘‘(3) Referral of isolated small businesses to small

20 business assistance agencies.

21 ‘‘(4) Preparation of materials required by iso22 lated small businesses for participation in small busi23 ness assistance programs.

24 ‘‘(5) Case management to assure follow-up and

25 quality control of business services.
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1 ‘‘(6) Coordination of networking among isolated

2 small businesses.

3 ‘‘(7) Quality control of small business assistance

4 services.

5 ‘‘(e) ISOLATED SMALL BUSINESS DEFINED.—For the

6 purposes of this section, the term ‘isolated small business’

7 means a small business that is unable to effectively access

8 small business services provided by Federal, State, and local

9 governments due to linguistic, cultural, or geographic

10 barriers.’’.

11 SEC. 104. REDEVELOPMENT AREAS.

12 (a) IN GENERAL.—Section 401 of the Public Works

13 and Economic Development Act of 1965 (42 U.S.C. 3161)

14 is amended to read as follows:

15 ‘‘SEC. 401. AREA ELIGIBILITY.

16 ‘‘(a) CERTIFICATION.—In order to qualify as a redevel17 opment area under this Act, an applicant seeking assistance

18 under this Act to undertake a project for such area shall

19 certify, as part of an application for such assistance, that

20 the area on the date of submission of such application meets

21 one or more of the following criteria:

22 ‘‘(1) The area has a per capita income of 80 per23 cent or less of the national average.

24 ‘‘(2) The area has an unemployment rate 1 per25 cent above the national average percentage for the
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1 most recent 24-month period for which statistics are

2 available.

3 ‘‘(3) The area has experienced or is about to ex4 perience a sudden economic dislocation resulting in

5 job loss that is significant both in terms of the num6 ber of jobs eliminated and the effect upon the employ7 ment rate of the area.

8 ‘‘(4) The area is a community or neighborhood

9 (defined without regard to political or other subdivi10 sions or boundaries) which the Secretary determines

11 has one or more of the following conditions:

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

13 persons.

14 ‘‘(B) Rural areas having substantial out15 migration.

16 ‘‘(C) Substantial unemployment.

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

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

19 available, and in other cases by data available through the

20 State government. Such documentation shall be accepted by

21 the Secretary unless it is determined to be inaccurate. The

22 most recent statistics available shall be used.

23 ‘‘(c) SPECIAL RULE.—An area which qualifies as a re24 development area under subsection (a)(4)—
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1 ‘‘(1) shall not be subject to the requirements of

2 subparagraphs (A) and (C) of section 101(a)(1); and

3 ‘‘(2) shall not be eligible to meet the requirements

4 of section 403(a)(1)(B).

5 ‘‘(d) PRIOR DESIGNATIONS.—Any designation of a re6 development area under this title before the date of the en7 actment of the Economic Development Reauthorization Act

8 of 1994 shall not be effective after such date of enactment.’’.

9 (b) CONFORMING AMENDMENTS.—Section 101 of such

10 Act (42 U.S.C. 3131) is amended—

11 (1) in subsection (a)(1)(D) by striking ‘‘section

12 401(a)(6)’’ and inserting ‘‘section 401(a)(4)’’; and

13 (2) in subsection (c) by striking ‘‘section

14 401(a)(6)’’ each place it appears and inserting ‘‘sec15 tion 401(a)(4)’’.

16 SEC. 105. INVESTMENT STRATEGY.

17 (a) IN GENERAL.—Section 402 of the Public Works

18 and Economic Development Act of 1965 (42 U.S.C. 3162)

19 is amended to read as follows:

20 ‘‘SEC. 402. INVESTMENT STRATEGY.

21 ‘‘The Secretary may provide assistance under this Act

22 to an applicant for a project to be undertaken in a redevel23 opment area only if the applicant submits to the Secretary,

24 as part of an application for such assistance, and the Sec25 retary approves an investment strategy which—
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1 ‘‘(1) identifies the economic development prob2 lems to be addressed using such assistance;

3 ‘‘(2) identifies past, present, and projected future

4 economic development investments in such area and

5 public and private participants and sources of fund6 ing for such investments; and

7 ‘‘(3) sets forth a strategy for addressing the eco8 nomic problems identified pursuant to paragraph (1)

9 and describes how the strategy will solve such prob10 lems.’’

11 (b) ELIMINATION OF OVERALL ECONOMIC DEVELOP12 MENT PROGRAM.—Section 202(b) of such Act (42 U.S.C.

13 3142(b)) is amended by striking paragraph (10).

14 (c) CONFORMING AMENDMENTS.—

15 (1) TITLE I.—Subparagraph (C) of section

16 101(a)(1) of such Act (42 U.S.C. 3131(a)(1)) is

17 amended to read as follows:

18 ‘‘(C) the area for which the project is to be

19 undertaken has an approved investment strategy

20 as provided by section 402 and such project is

21 consistent with such strategy; and’’.

22 (2) TITLE II.—Paragraph (5) of section 201(a)

23 of such Act (42 U.S.C. 3141(a)) is amended to read

24 as follows:
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1 ‘‘(5) such area has an approved investment

2 strategy as provided by section 402 and the project

3 for which financial assistance is sought is consistent

4 with such strategy.’’.

5 (3) TITLE III.—Section 302(a) of such Act (42

6 U.S.C. 3151a(a)) is amended—

7 (A) in the fourth sentence by striking ‘‘over8 all State economic development plan’’ and in9 serting ‘‘State investment strategy’’;

10 (B) in the fifth sentence—

11 (i) by striking ‘‘plan’’ each place it ap12 pears and inserting ‘‘strategy’’; and

13 (ii) by striking ‘‘plans’’ each place it

14 appears and inserting ‘‘strategies’’; and

15 (C) in the sixth sentence by striking ‘‘Any

16 overall State economic development planning’’

17 and inserting ‘‘Development of any State invest18 ment strategy’’.

19 (4) TITLE IV.—Section 403 of such Act (42

20 U.S.C. 3171) is amended—

21 (A) in subsections (a)(1)(C), (a)(1)(D),

22 (a)(2)(A), (a)(3)(A), (a)(4)(B), (e), and (i) by

23 striking ‘‘overall economic development pro24 gram’’ and inserting ‘‘investment strategy’’;
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1 (B) in subsection (a)(1)(D) by striking

2 ‘‘program’’ the second place it appears and in3 serting ‘‘strategy’’; and

4 (C) in subsections (b) and (b)(2)(B) by

5 striking ‘‘overall economic development pro6 grams’’ and inserting ‘‘investment strategies’’.

7 SEC. 106. ECONOMIC DEVELOPMENT DISTRICTS.

8 (a) ECONOMIC DEVELOPMENT DISTRICT DEFINED.—

9 Section 403(d) of the Public Works and Economic Develop10 ment Act of 1965 (42 U.S.C. 3171(d)) is amended by add11 ing at the end the following new sentence: ‘‘Such term in12 cludes any economic development district designated by the

13 Secretary under this section before the date of the enactment

14 of the Economic Development Reauthorization Act of

15 1994.’’.

16 (b) FUNDING.—Section 403(g) of such Act (42 U.S.C.

17 3171(g)) is amended to read as follows:

18 ‘‘(g) FUNDING.—Amounts authorized to be appro19 priated under other sections of this Act shall be available

20 for purposes of carrying out subsections (a)(3) and (a)(4).’’.

21 SEC. 107. APPLICATIONS FOR ASSISTANCE.

22 (a) EXPEDITED PROCESSING.—Title VI of the Public

23 Works and Economic Development Act of 1965 (42 U.S.C.

24 3201–3204) is amended by adding at the end the following

25 new section:
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1 ‘‘SEC. 605. EXPEDITED PROCESSING OF APPLICATIONS.

2 ‘‘(a) GUIDELINES.—Not later than 60 days after the

3 date of the enactment of this section, the Assistant Secretary

4 for Economic Development shall—

5 ‘‘(1) publish guidelines to expedite the processing

6 of applications for assistance under this Act; and

7 ‘‘(2) transmit to the Committee on Public Works

8 and Transportation of the House of Representatives

9 and the Committee on Environment and Public

10 Works of the Senate a report containing such guide11 lines.

12 ‘‘(b) CONTENTS.—Guidelines to be published under

13 subsection (a) shall, at a minimum, provide for the follow14 ing:

15 ‘‘(1) Increased reliance on self-certification by

16 applicants to establish compliance with other Federal

17 laws.

18 ‘‘(2) Greater use of uniform application forms

19 and procedures.

20 ‘‘(3) Delegation of decisionmaking authority to

21 regional offices.

22 ‘‘(4) Reduction in the time and number of re23 views conducted by other offices of the Department of

24 Commerce.’’.
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1 (b) UNIFORM APPLICATION FORM.—Title IV of such

2 Act is further amended by adding at the end the following

3 new section:

4 ‘‘SEC. 606. UNIFORM APPLICATION FORM.

5 ‘‘(a) DEVELOPMENT.—The Secretary shall, in coopera6 tion with the heads of appropriate Federal departments and

7 agencies, develop a general, simplified application form for

8 grant assistance under this Act which may be used by all

9 Federal departments and agencies which provide grant

10 assistance.

11 ‘‘(b) REPORT.—Not later than 6 months after the date

12 of the enactment of this section, the Secretary shall transmit

13 to Congress a report on use of the form developed pursuant

14 to subsection (a) by Federal departments and agencies.’’.

15 SEC. 108. PERFORMANCE EVALUATIONS OF GRANT RECIPI16 ENTS.

17 Title VI of the Public Works and Economic Develop18 ment Act of 1965 is further amended by adding at the end

19 the following new section:

20 ‘‘SEC. 607. PERFORMANCE EVALUATIONS OF GRANT RECIPI21 ENTS.

22 ‘‘(a) IN GENERAL.—At least once every 2 years, the

23 Secretary shall conduct an evaluation of each university

24 center and economic development district receiving grant
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1 assistance under this Act to assess the recipient’s perform2 ance and contribution toward job creation.

3 ‘‘(b) CRITERIA.—

4 ‘‘(1) ESTABLISHMENT.—The Secretary shall es5 tablish criteria for use in conducting evaluations

6 under subsection (a).

7 ‘‘(2) CRITERIA FOR UNIVERSITY CENTERS.—The

8 criteria for evaluation of a university center shall, at

9 a minimum, provide for an assessment of the center’s

10 contribution to providing technical assistance, con11 ducting applied research, and disseminating results of

12 the center’s activities.

13 ‘‘(3) CRITERIA FOR ECONOMIC DEVELOPMENT

14 DISTRICTS.—The criteria for evaluation of an eco15 nomic development district shall, at a minimum, pro16 vide for an assessment of management standards, fi17 nancial accountability, and program performance.

18 ‘‘(c) PEER REVIEW.—In conducting an evaluation of

19 a university center under subsection (a), the Secretary shall

20 provide for the participation of at least one other university

21 center on a cost-reimbursement basis.’’.

22 SEC. 109. TRANSFER OF FUNDS.

23 Section 708 of the Public Works and Economic Devel24 opment Act of 1965 (42 U.S.C. 3218) is amended by adding

25 at the end the following new subsection:
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1 ‘‘(d) FUNDS TRANSFERRED FROM OTHER DEPART2 MENTS AND AGENCIES.—In order to carry out the objectives

3 of this Act, the Secretary may accept transfers of funds from

4 other departments and agencies of the Federal Government

5 if the funds are used for the purposes for which (and in

6 accordance with the terms under which) the funds are spe7 cifically authorized and appropriated.’’.

8 SEC. 110. SUPERVISION OF REGIONAL COUNSELS.

9 Title VII of the Public Works and Economic Develop10 ment Act of 1965 (42 U.S.C. 3211–3226) is amended by

11 adding at the end the following new section:

12 ‘‘SEC. 717. SUPERVISION OF REGIONAL COUNSELS.

13 ‘‘The Secretary shall take such actions as may be nec14 essary to ensure that individuals serving as Regional Coun15 sels of the Economic Development Administration report

16 directly to their respective Regional Director.’’.

17 SEC. 111. BASE CLOSINGS AND REALIGNMENTS.

18 Section 903 of the Public Works and Economic Devel19 opment Act of 1965 (42 U.S.C. 3243) is amended by adding

20 at the end the following new subsection:

21 ‘‘(e) BASE CLOSINGS AND REALIGNMENTS.—

22 ‘‘(1) LOCATION OF PROJECTS.—In any case in

23 which the secretary determines a need for assistance

24 under subsection (a) due to the closure or realignment

25 of a military installation, the Secretary may make
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1 such assistance available for projects to be carried out

2 on the military installation and for projects to be car3 ried out in communities adversely affected by the clo4 sure or realignment.

5 ‘‘(2) INTEREST IN PROPERTY.—Notwithstnading

6 any other provision of law, the Secretary may provide

7 to an eligible recipient any assistance available under

8 the Act for a project to be carried out on a military

9 installation that is closed or scheduled for closure or

10 realignment without requiring that the eligible recipi11 ent have title to the property or a leasehold interest

12 in the property for any specified term.’’.

13 SEC. 112. TREATMENT OF REVOLVING LOAN FUNDS.

14 Title IX of the Public Works and Economic Develop15 ment Act of 1965 (42 U.S.C. 3241–3245) is amended—

16 (1) by redesignating section 905 as section 907;

17 and

18 (2) by inserting after section 904 the following

19 new section:

20 ‘‘SEC. 905. TREATMENT OF REVOLVING LOAN FUNDS.

21 ‘‘(a) IN GENERAL.—Amounts from grants under this

22 title which are used by an eligible recipient to establish a

23 revolving loan fund shall not be treated, except as provided

24 by subsection (b), as amounts derived from Federal funds
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1 for the purposes of any Federal law after such amounts are

2 loaned from the fund to a borrower and repaid to the fund.

3 ‘‘(b) EXCEPTIONS.—Amounts described in subsection

4 (a) which are loaned from a revolving loan fund to a bor5 rower and repaid to the fund—

6 ‘‘(1) may only be used for projects which are

7 consistent with the purposes of this title; and

8 ‘‘(2) shall be subject to the financial manage9 ment, accounting, reporting, and auditing standards

10 which were originally applicable to such amounts.

11 ‘‘(c) REGULATIONS.—Not later than 30 days after the

12 date of the enactment of this section, the Secretary shall

13 issue regulations to carry out subsection (a).

14 ‘‘(d) PUBLIC REVIEW AND COMMENT.—Before issuing

15 any final guidelines or administrative manuals governing

16 the operation of revolving loan funds established using

17 amounts from grants under this title, the Secretary shall

18 provide reasonable opportunity for public review of and

19 comment on such guidelines and administrative manuals.’’.

20 SEC. 113. OUTREACH TO COMMUNITIES ADVERSELY AF21 FECTED BY DEFENSE BASE CLOSURES.

22 Title IX of the Public Works and Economic Develop23 ment Act of 1965 is further amended by inserting after sec24 tion 905 the following new section:
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1 ‘‘SEC. 906. OUTREACH TO COMMUNITIES ADVERSELY AF2 FECTED BY DEFENSE BASE CLOSURES.

3 ‘‘(a) DESIGNATION OF AGENCY REPRESENTATIVES.—

4 The Assistant Secretary for Economic Development shall

5 designate for each State in which communities are ad6 versely affected by defense base closures an individual to

7 serve as a representative of the Economic Development Ad8 ministration. Such individual may be the State Economic

9 Development Agency Representative or another qualified

10 individual.

11 ‘‘(b) RESPONSIBILITIES.—Individuals appointed as

12 agency representatives under subsection (a) shall provide

13 outreach and technical assistance to communities adversely

14 affected by defense base closures on obtaining assistance

15 from the Economic Development Administration.’’.

16 SEC. 114. SPECIAL ECONOMIC DEVELOPMENT AND ADJUST17 MENT ASSISTANCE.

18 Section 907 of the Public Works and Economic Devel19 opment Act of 1965, as redesignated by section 112 of this

20 Act, is amended to read as follows:

21 ‘‘SEC. 907. AUTHORIZATION OF APPROPRIATIONS.

22 ‘‘(a) IN GENERAL.—There is authorized to be appro23 priated to carry out this title $115,542,000 for fiscal year

24 1994 and $100,000,000 per fiscal year for each of fiscal

25 years 1995 and 1996. Such sums shall remain available

26 until expended.
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1 ‘‘(b) SET-ASIDE FOR DEFENSE CONVERSION ACTIVI2 TIES.—Of amounts appropriated pursuant to subsection (a)

3 for fiscal year 1994, not less than $80,000,000 shall be

4 available for purposes of assisting eligible recipients in ac5 tivities related to defense conversion.

6 ‘‘(c) ADDITIONAL AMOUNTS.—In addition to the ap7 propriations authorized by subsection (a), there are author8 ized to be appropriated to carry out this title such sums

9 as may be necessary to provide assistance for defense con10 version activities and to provide assistance in the case of

11 a natural disaster. Such sums shall remain available until

12 expended.’’.

13 SEC. 115. COMPLIANCE WITH BUY AMERICAN ACT.

14 None of the funds made available under this title, or

15 any amendment made by this title, may be expended in

16 violation of sections 2 through 4 of the Act of March 3, 1933

17 (41 U.S.C. 10a–10c; popularly known as the ‘‘Buy Amer18 ican Act’’), which are applicable to those funds.

19 TITLE II—APPALACHIAN

20 REGIONAL DEVELOPMENT

21 SEC. 201. FINDINGS AND PURPOSES.

22 Section 2 of the Appalachian Regional Development

23 Act of 1965 (40 U.S.C. App. 2) is amended—

24 (1) in subsection (a) by striking the period at the

25 end of the sixth sentence and inserting ‘‘and in se-
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1 verely distressed and underdeveloped counties and

2 areas lacking resources for basic services.’’; and

3 (2) by adding at the end the following new subsection:

4 ‘‘(c) The Congress further finds and declares that,

5 while substantial progress has been made in fulfilling many

6 of the objectives of this Act, rapidly changing national and

7 global economics over the past decade have created new

8 problems and challenges for rural areas throughout the Na9 tion and especially for the Appalachian region. Thus, the

10 problems of the region are not only to provide the infra11 structure necessary to economic and human resource devel12 opment, to develop its industry, and to generate a diversi13 fied regional economy, but to make the region’s industrial

14 and commercial resources more competitive in national and

15 world markets. It is, therefore, also the purpose of this Act

16 to provide a framework for coordinating Federal, State, and

17 local initiatives to respond to the economic competitive

18 challenge through improving the skills of the region’s man19 power, adapting and applying new technologies for the re20 gion’s businesses, and improving the access of the region’s

21 businesses to the technical and financial resources necessary

22 to their development while continuing to address the need

23 to provide basis services for the more disadvantaged areas

24 of the region so as to provide a fairer opportunity for the
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1 people of the region to share the quality of life generally

2 enjoyed by citizens across this Nation.’’.

3 SEC. 202. MEETINGS.

4 Section 101 of the Appalachian Regional Development

5 Act of 1965 (40 U.S.C. App. 101) is amended—

6 (1) in subsection (a) by adding at the end the

7 following: ‘‘The Commission shall conduct at least one

8 meeting each year with the presence of the Federal

9 Cochairman and at least a majority of the State

10 members. The Commission may conduct such addi11 tional meetings by electronic means as the Commis12 sion considers advisable.’’;

13 (2) at the end of the third sentence of subsection

14 (b) by striking ‘‘present’’; and

15 (3) at the end of the fourth sentence of subsection

16 (c) by striking ‘‘to be present’’.

17 SEC. 203. AUTHORIZATIONS FOR ADMINISTRATIVE EX18 PENSES.

19 Section 105(b) of the Appalachian Regional Develop20 ment Act of 1965 (40 U.S.C. App. 105(b)) is amended to

21 read as follows:

22 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—

23 ‘‘(1) IN GENERAL.—There is authorized to be ap24 propriated to carry out this section $3,400,000 for fis25 cal year 1994 and $4,000,000 per fiscal year for each
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1 of fiscal years 1995 and 1996. Such sums shall re2 main available until expended.

3 ‘‘(2) EXPENSES OF FEDERAL COCHAIRMAN.—Of

4 amounts appropriated pursuant to paragraph (1),

5 not to exceed $1,102,000 for fiscal year 1994 and not

6 to exceed $1,500,000 per fiscal year for each of fiscal

7 years 1995 and 1996 shall be available for expenses

8 of the Federal Cochairman, the Federal Cochairman’s

9 alternate, and the Federal Cochairman’s staff.’’.

10 SEC. 204. EXTENSION OF LEASE TERMS.

11 Section 106(7) of the Appalachian Regional Develop12 ment Act of 1965 (40 U.S.C. App. 106(7)) is amended by

13 striking ‘‘1982’’ and inserting ‘‘1996’’.

14 SEC. 205. HIGHWAY SYSTEM.

15 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

16 201(g) of the Appalachian Regional Development Act of

17 1965 (40 U.S.C. App. 201(g)) is amended to read as follows:

18 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is

19 authorized to be appropriated to carry out this section

20 $160,000,000 for fiscal year 1994 and $150,000,000 per fis21 cal year for each of fiscal years 1995 and 1996. Such sums

22 shall remain available until expended.’’.

23 (b) FEDERAL SHARE.—
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1 (1) GENERAL RULE.—Section 201(h)(1) of such

2 Act (40 U.S.C. App. 201(h)(1)) is amended by strik3 ing ‘‘70 per centum’’ and inserting ‘‘80 percent’’.

4 (2) APPLICABILITY.—The amendment made by

5 paragraph (1) shall apply to projects approved after

6 March 31, 1979.

7 SEC. 206. SUPPLEMENTS TO FEDERAL GRANT-IN-AID PRO8 GRAMS.

9 (a) AVAILABILITY OF AMOUNTS.—The first sentence of

10 section 214(a) of the Appalachian Regional Development

11 Act of 1965 (40 U.S.C. App. 214(a)) is amended by striking

12 ‘‘the President is authorized to provide funds to the Federal

13 Cochairman to be used’’ and inserting ‘‘the Federal Co14 chairman may use amounts made available under this

15 section’’.

16 (b) FEDERAL GRANT-IN-AID PROGRAMS DEFINED.—

17 The first sentence of section 214(c) of such Act (40 U.S.C.

18 App. 214(c)) is amended by striking ‘‘on or before December

19 31, 1980,’’.

20 (c) LIMITATION ON COVERED ROAD PROJECTS.—The

21 second sentence of section 214(c) of such Act is amended

22 by inserting ‘‘authorized by title 23, United States Code’’

23 after ‘‘road construction’’.
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1 SEC. 207. PROGRAM DEVELOPMENT CRITERIA.

2 (a) CONSIDERATIONS.—Section 224(a) of the Appa3 lachian Regional Development Act of 1965 (40 U.S.C. App.

4 224(a)) is amended by inserting before the semicolon at the

5 end of paragraph (1) the following: ‘‘or in a severely dis6 tressed and underdeveloped county or area lacking resources

7 for basic services’’.

8 (b) REMOVAL OF LIMITATIONS.—Section 224(b) of

9 such Act (40 U.S.C. App. 224(b)) is amended to read as

10 follows:

11 ‘‘(b) LIMITATION.—No financial assistance shall be au12 thorized under this Act to be used to assist establishments

13 relocating from one area to another.’’.

14 SEC. 208. GRANTS FOR ADMINISTRATIVE EXPENSES AND

15 DEMONSTRATION PROJECTS.

16 (a) AVAILABILITY OF AMOUNTS.—Section 302(a) of the

17 Appalachian Regional Development Act of 1965 (40 U.S.C.

18 App. 302(a)) is amended—

19 (1) by striking ‘‘The President’’ and inserting

20 ‘‘The Commission’’; and

21 (2) in paragraphs (1), (2), and (3) by striking

22 ‘‘to the Commission’’ each place it appears.

23 (b) RESEARCH AND DEMONSTRATION PROJECTS.—

24 Section 302(a)(3) of such Act (40 U.S.C. App. 302(a)(3))

25 is amended—
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1 (1) by inserting after ‘‘technical assistance’’ the

2 following: ‘‘(including technical assistance for busi3 ness development and stabilization and application of

4 technologies (including telecommunication tech5 nologies) and productivity improvement)’’;

6 (2) by inserting after ‘‘training programs’’ the

7 following: ‘‘(including on-site employee training and

8 programs to upgrade employability of the region’s

9 people)’’; and

10 (3) by inserting after ‘‘demonstrations’’ the fol11 lowing: ‘‘(including demonstrations of service consoli12 dations and other methods of increasing efficiency of

13 local governments, the establishment and operation by

14 States, public agencies, or nonprofit development or15 ganizations of revolving funds for business assistance

16 loans, the establishment and operation of business in17 cubators and the provision of industrial facilities and

18 equipment by public agencies and nonprofit organiza19 tions on such terms (including terms of reasonable re20 covery of grant funds upon resale) as are approved by

21 the Commission, and the acquisition and development

22 of land)’’.

23 (c) SOLID WASTE DISPOSAL DEMONSTRATION

24 PROJECTS.—Section 302(b) of such Act (40 U.S.C. App.
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1 302(b)) is amended by adding at the end the following new

2 paragraph:

3 ‘‘(5) The Commission shall carry out projects at not

4 less than 2 sites in the Appalachian region for the purpose

5 of demonstrating solid waste disposal techniques in rural

6 areas.’’.

7 (d) REPEAL OF PROVISION ON USE OF INFORMATION FROM

8 RESEARCH AND DEVELOPMENT ACTIVITIES.—Section

9 302(e) of such Act (40 U.S.C. 302(e)) is repealed.

10 SEC. 209. AUTHORIZATION OF APPROPRIATIONS FOR GEN11 ERAL PROGRAM.

12 Section 401 of the Appalachian Regional Development

13 Act of 1965 (40 U.S.C. App. 401) is amended to read as

14 follows:

15 ‘‘SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

16 ‘‘In addition to the appropriations authorized in sec17 tion 105 for administrative expenses and in section 201(g)

18 for the Appalachian development highway system and local

19 access roads, there is authorized to be appropriated to the

20 Commission to carry out this Act $85,600,000 per fiscal

21 year for each of fiscal years 1994, 1995, and 1996. Such

22 sums shall remain available until expended.’’.

23 SEC. 210. DEFINITION OF APPALACHIAN REGION.

24 Section 403 of the Appalachian Regional Development

25 Act of 1965 (40 U.S.C. App. 403) is amended—
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1 (1) in the first undesignated paragraph (relating

2 to Alabama) by inserting ‘‘Hale,’’ after ‘‘Franklin,’’;

3 and

4 (2) in the 12th undesignated paragraph (relating

5 to Virginia)—

6 (A) by inserting ‘‘Montgomery,’’ after

7 ‘‘Lee,’’; and

8 (B) by inserting ‘‘Roanoke, Rockbridge,’’

9 after ‘‘Pulaski,’’.

10 SEC. 211. EXTENSION OF TERMINATION DATE.

11 Section 405 of the Appalachian Regional Development

12 Act of 1965 (40 U.S.C. App. 405) is amended by striking

13 ‘‘1982’’ and inserting ‘‘1996’’.

14 SEC. 212. REGIONAL DEVELOPMENT TASK FORCE.

15 (a) ESTABLISHMENT.—There is established a Regional

16 Development Task Force (hereinafter in this section referred

17 to as the ‘‘Task Force’’).

18 (b) DUTIES.—It shall be the duty of the Task Force

19 to conduct a study on—

20 (1) the extent to which the unique characteristics

21 of the Appalachian Regional Commission (including

22 the Commission’s Federal-State partnership, program

23 flexibility, and regional approach) have contributed to

24 the achievement of the Commission’s goals; and
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1 (2) whether or not the Commission can utilize

2 such characteristics to address needs which may exist

3 in other rural areas suffering from economic distress,

4 including the Lower Mississippi delta, Mexican bor5 der, and Ozark areas.

6 (c) MEMBERSHIP.—

7 (1) VOTING MEMBERS.—The Task Force shall be

8 composed of 9 voting members appointed, not later

9 than 90 days after the date of the enactment of this

10 Act, as follows:

11 (A) Three members appointed by the Presi12 dent.

13 (B) Three members appointed by the Presi14 dent pro tempore of the Senate.

15 (C) Three members appointed by the Speak16 er of the House of Representatives.

17 (2) EX OFFICIO MEMBERS.—The Federal and

18 State Cochairmen of the Appalachian Regional Com19 mission shall serve as ex officio, nonvoting members

20 of the Task Force.

21 (d) FACILITIES, SUPPLIES, AND PERSONNEL.—Upon

22 the request of the Task Force, the Appalachian Regional

23 Commission shall provide to the Task Force any facilities,

24 supplies, and personnel necessary for the Task Force to

25 carry out its responsibilities under this Act; except that the
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1 total cost of such facilities, supplies, and personnel shall

2 not exceed $500,000.

3 (e) USE OF OTHER STUDIES.—In conducting the

4 study under subsection (b), the Commission shall incor5 porate the results of other studies on the needs of rural areas

6 described in subsection (b) and shall not duplicate such

7 studies.

8 (f) REPORT.—Not later than 9 months after the date

9 of the first meeting of the Task Force, the Task Force shall

10 transmit to Congress a report on the results of the study

11 conducted under subsection (b).

12 (g) TERMINATION.—The Task Force shall terminate on

13 the date of transmittal of the report under subsection (f).

14 SEC. 213. COMPLIANCE WITH BUY AMERICAN ACT.

15 None of the funds made available under this title, or

16 any amendment made by this title, may be expended in

17 violation of sections 2 through 4 of the Act of March 3, 1933

18 (41 U.S.C. 10a–10c; popularly known as the ‘‘Buy Amer19 ican Act’’), which are applicable to those funds.

Amend the title so as to read: ‘‘A bill to reauthorize

economic development programs under the Public Works

and Economic Development Act of 1965 and the Appalachian Regional Development Act of 1965 for fiscal

years 1994 through 1996, and for other purposes.’’.
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Economic

3 Development Reauthorization Act of 1994’’.

4 TITLE I—ECONOMIC

5 DEVELOPMENT PROGRAMS

6 SEC. 101. REAUTHORIZATION OF THE EDA THROUGH THE

7 ENACTMENT OF THE ECONOMIC DEVELOP8 MENT FINANCING ACT OF 1994.

9 The Public Works and Economic Develop10 ment Act of 1965 (42 U.S.C. 3121, et seq.) is

11 amended to read as follows:

12 ‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

13 ‘‘(a) SHORT TITLE.—This Act may be cited

14 as the ‘Economic Development Financing Act

15 of 1994’.

16 ‘‘(b) TABLE OF CONTENTS.—

‘‘Sec. 1. Short title; table of contents.

‘‘Sec. 2. Congressional findings and Statement of purpose.

‘‘TITLE I—GRANTS FOR PUBLIC WORKS AND

DEVELOPMENT FACILITIES

‘‘Sec. 101. Direct and supplementary grants.

‘‘Sec. 102. Limitation of funds expended in any 1 State.

‘‘Sec. 103. Authorization of appropriations.

‘‘Sec. 104. Financial assistance for sewer facilities.

‘‘Sec. 105. Construction cost increases.

‘‘Sec. 106. Use of funds in projects constructed under projected cost.

‘‘Sec. 107. Changed project circumstances.

‘‘TITLE II—LOANS, LOAN GUARANTEES, AND ECONOMIC

DEVELOPMENT REVOLVING FUND

‘‘Sec. 201. Public works and development facility loans.

‘‘Sec. 202. Business loans and loan guarantees.

‘‘Sec. 203. Economic development liquidating fund.
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‘‘TITLE III—STRATEGIC PLANNING, RESEARCH,

INFORMATION, AND TECHNICAL ASSISTANCE

‘‘Subtitle A—Strategic Economic Development Planning,

Research, and Information

‘‘Sec. 301. Office of Strategic Economic Development Planning and Policy.

‘‘Sec. 302. Office of Economic Development Information.

‘‘Sec. 303. Uniform grant application form.

‘‘Subtitle B—Technical Assistance and Economic Development

Planning

‘‘Sec. 311. Technical assistance.

‘‘Sec. 312. Economic development planning.

‘‘Sec. 313. Business outreach center demonstration project.

‘‘Sec. 314. Authorization of appropriations.

‘‘TITLE IV—ELIGIBILITY AND INVESTMENT STRATEGIES

‘‘Sec. 401. Area eligibility.

‘‘Sec. 402. Investment strategy.

‘‘Sec. 403. Definition.

‘‘Sec. 404. Funding.

‘‘TITLE V—ADMINISTRATION

‘‘Sec. 501. Appointment of Assistant Secretary of Commerce

for Economic Development; compensation.

‘‘Sec. 502. Consultation of Secretary with other persons

and agencies.

‘‘Sec. 503. Administration, operation, and maintenance.

‘‘Sec. 504. Expedited processing of applications.

‘‘Sec. 505. Performance evaluations of grant recipients.

‘‘TITLE VI—MISCELLANEOUS

‘‘Sec. 601. Powers of Secretary.

‘‘Sec. 602. Transfer of functions of area redevelopment administration.

‘‘Sec. 603. Separability.

‘‘Sec. 604. Definition of State.

‘‘Sec. 605. Annual report to Congress.

‘‘Sec. 606. Use of other facilities.

‘‘Sec. 607. Authorization of appropriations.

‘‘Sec. 608. Penalties.

‘‘Sec. 609. Employment of expediters and administrative

employees.

‘‘Sec. 610. Labor standards; rate of wages; assurance of

maintenance of standards; enforcement.

‘‘Sec. 611. Maintenance of records of approved applications

for financial assistance; public inspection.

‘‘Sec. 612. Records and audit.

‘‘Sec. 613. Prohibition against a statutory construction

which might cause diminution in other Federal assistance.
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‘‘Sec. 614. Acceptance of applicants’ certifications.

‘‘TITLE VII—SPECIAL ECONOMIC DEVELOPMENT AND

ADJUSTMENT ASSISTANCE

‘‘Subtitle A—Grants and Adjustment Assistance

‘‘Sec. 701. Statement of purpose.

‘‘Sec. 702. Eligible recipient defined.

‘‘Sec. 703. Grants by Secretary.

‘‘Sec. 704. Annual reports by recipient and secretary.

‘‘Sec. 705. Authorization of appropriations.

‘‘Subtitle B—Economic Development Financing

‘‘Sec. 711. Guaranteed loan program.

‘‘Sec. 712. Pilot equity finance program.

‘‘Sec. 713. Treatment of revolving loan funds.

‘‘Sec. 714. Sale of financial instruments in revolving loan

funds.

‘‘Sec. 715. Economic development challenge grants demonstration project.

‘‘Subtitle C—Business Development Assistance

‘‘Sec. 721. Findings, purposes, and definitions.

‘‘Sec. 722. Consolidation of information on technologies.

‘‘Sec. 723. Business Development and Technology Commercialization Corporation.

‘‘Sec. 724. Assistance to businesses in securing financing.

‘‘Sec. 725. Technical assistance for lenders and borrowers.

1 ‘‘SEC. 2. CONGRESSIONAL FINDINGS AND STATEMENT OF

2 PURPOSE.

3 ‘‘(a) FINDINGS.—The Congress finds that

4 the maintenance of the national economy at

5 a high level is vital to the best interests of the

6 United States, but that some of our regions,

7 counties, and communities are suffering sub8 stantial and persistent unemployment and

9 underemployment; that such unemployment

10 and underemployment cause hardship to

11 many individuals and their families, and

12 waste invaluable human resources; that to
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1 overcome this problem the Federal Govern2 ment, in cooperation with the States, should

3 help areas and regions of substantial and per4 sistent unemployment and underemployment

5 to take effective steps in planning and financ6 ing their public works, business development,

7 industrial retention, and economic develop8 ment; that Federal financial assistance, in9 cluding grants for public works and develop10 ment facilities to communities, industries, en11 terprises, and individuals in areas needing

12 development should enable such areas to help

13 themselves achieve lasting improvement and

14 enhance the domestic prosperity by the estab15 lishment of stable and diversified local econo16 mies and improved local conditions, provided

17 that such assistance is preceded by and con18 sistent with sound, long-range economic plan19 ning; and that under the provisions of this Act

20 new employment opportunities should be cre21 ated by developing and expanding new and

22 existing public works and other facilities and

23 resources, financing business development,

24 and promoting industrial retention.
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1 ‘‘(b) DECLARATION.—The Congress declares

2 that, in furtherance of maintaining the na3 tional economy at a high level—

4 ‘‘(1) the assistance authorized by this

5 Act should be made available to both

6 rural and urban areas;

7 ‘‘(2) such assistance be available for

8 planning for economic development prior

9 to the actual occurrences of economic

10 distress in order to avoid such condition;

11 and

12 ‘‘(3) such assistance be used for long13 term economic rehabilitation in areas

14 where long-term economic deterioration

15 has occurred or is taking place.

16 ‘‘TITLE I—GRANTS FOR PUBLIC

17 WORKS AND DEVELOPMENT

18 FACILITIES

19 ‘‘SEC. 101. DIRECT AND SUPPLEMENTARY GRANTS.

20 ‘‘(a) IN GENERAL.—Upon the application of

21 any State, or political subdivision thereof, In22 dian tribe, or private or public nonprofit or23 ganization or association, the Secretary of

24 Commerce (hereafter in this Act referred to as

25 the ‘Secretary’) may—
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1 ‘‘(1) make direct grants for the acqui2 sition or development of land and im3 provements for public works, public serv4 ice, or development facility usage, and

5 the acquisition, design and engineering,

6 construction, rehabilitation, alteration,

7 expansion, or improvement of such facili8 ties, including related machinery and

9 equipment if the Secretary finds that—

10 ‘‘(A) the project for which finan11 cial assistance is sought will directly

12 or indirectly—

13 ‘‘(i) tend to improve the op14 portunities, in the area where

15 such project is or will be located,

16 for the successful establishment

17 or expansion of industrial or com18 mercial plants or facilities,

19 ‘‘(ii) otherwise assist in the

20 creation of additional long-term

21 employment opportunities for

22 such area, or

23 ‘‘(iii) primarily benefit the

24 long-term unemployed and mem25 bers of low-income families;
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1 ‘‘(B) the project for which a grant

2 is requested will fulfill a pressing

3 need of the area, or part thereof, in

4 which it is, or will be, located;

5 ‘‘(C) the area for which a project

6 is to be undertaken has an approved

7 investment strategy and such project

8 is consistent with such strategy; and

9 ‘‘(D) in the case of an area de10 scribed in section 401(a)(4), the

11 project to be undertaken will provide

12 immediate useful work to unem13 ployed and underemployed persons

14 in that area; and

15 ‘‘(2) make supplementary grants in

16 order to enable the States and other enti17 ties to take maximum advantage of des18 ignated Federal grant-in-aid programs (as

19 hereinafter defined), direct grants-in-aid

20 authorized under this section, and Fed21 eral grant-in-aid programs authorized by

22 the Watershed Protection and Flood Pre23 vention Act and the 11 watersheds au24 thorized by the Flood Control Act of De25 cember 22, 1944, for which they are eligi-
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1 ble but for which, because of their eco2 nomic situation, they cannot supply the

3 required matching share.

4 ‘‘(b) MAXIMUM PROPORTION OF DIRECT

5 GRANT FUNDS TO TOTAL PROJECT COST.—Sub6 ject to subsection (c), the amount of any direct

7 grant under this section for any project shall

8 not exceed 50 percent of the cost of such

9 project.

10 ‘‘(c) PROPORTION OF SUPPLEMENTARY GRANT

11 FUNDS TO TOTAL PROJECT COST; RULES AND

12 REGULATIONS; MAXIMUM GRANTS; REQUIRED

13 NON-FEDERAL SHARE.—The amount of any sup14 plementary grant under this section for any

15 project shall not exceed the applicable per16 centage established by regulations promul17 gated by the Secretary, but in no event shall

18 the non-Federal share of the aggregate cost of

19 any such project (including assumptions of

20 debt) be less than 20 percent of such cost, ex21 cept that in the case of a grant to an Indian

22 tribe, the Secretary may reduce the non-Fed23 eral share below such percentage or may

24 waive the non-Federal share. In the case of

25 any State or political subdivision thereof
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1 which the Secretary determines has ex2 hausted its effective taxing and borrowing ca3 pacity, the Secretary shall reduce the non4 Federal share below such percentage or shall

5 waive the non-Federal share in the case of

6 such a grant for a project in an area described

7 in section 401(a)(4). In the case of any commu8 nity development corporation which the Sec9 retary determines has exhausted its effective

10 borrowing capacity, the Secretary may re11 duce the non-Federal share below such per12 centage or waive the non-Federal share in the

13 case of such a grant for a project in an area

14 described in section 401(a)(4). Supplementary

15 grants shall be made by the Secretary, in ac16 cordance with such regulations as the Sec17 retary shall prescribe, by increasing the

18 amounts of direct grants authorized under

19 this section or by the payment of funds appro20 priated under this Act to the heads of the de21 partments, agencies, and instrumentalities of

22 the Federal Government responsible for the

23 administration of the applicable Federal pro24 grams. Notwithstanding any requirement as

25 to the amount or sources of non-Federal funds
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1 that may otherwise be applicable to the Fed2 eral program involved, funds provided under

3 this subsection shall be used for the sole pur4 pose of increasing the Federal contribution to

5 specific projects under such programs above

6 the fixed maximum portion of the cost of such

7 project otherwise authorized by the applica8 ble law. The term ‘designated Federal grant9 in-aid programs,’ as used in this subsection,

10 means such existing or future Federal grant11 in-aid programs assisting in the construction

12 or equipping of facilities as the Secretary

13 may, in furtherance of the purposes of this

14 Act, designate as eligible for allocation of

15 funds under this section. In determining the

16 amount of any supplementary grant available

17 to any project under this section, the Sec18 retary shall take into consideration the rel19 ative needs of the area and the nature of the

20 project to be assisted.

21 ‘‘(d) REGULATIONS; FACTORS TO BE CONSID22 ERED IN PRESCRIBING REGULATIONS.—-The Sec23 retary shall prescribe regulations and proce24 dures to carry out this section which will as25 sure that adequate consideration is given to
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1 the relative needs of eligible areas. In pre2 scribing such rules, regulations, and proce3 dures the Secretary shall consider among

4 other relevant factors—

5 ‘‘(1) the severity of the rates of unem6 ployment in the eligible areas and the du7 ration of such unemployment, and

8 ‘‘(2) the income levels of families and

9 the extent of underemployment in eligi10 ble areas.

11 ‘‘(e) REVIEW AND COMMENT UPON PROJECTS

12 BY LOCAL GOVERNMENTAL AUTHORITIES.—The

13 Secretary shall prescribe regulations which

14 will assure that appropriate local govern15 mental authorities have been given a reason16 able opportunity to review and comment

17 upon proposed projects under this section.

18 ‘‘SEC. 102. LIMITATION OF FUNDS EXPENDED IN ANY 1

19 STATE.

20 ‘‘Not more than 15 percent of the appro21 priations made pursuant to this title may be

22 expended in any 1 State unless the Secretary

23 determines that expenditures in excess of

24 such limitation are necessary by reason of the
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1 occurrence of a major natural disaster in such

2 State.

3 ‘‘SEC. 103. AUTHORIZATION OF APPROPRIATIONS.

4 ‘‘There is authorized to be appropriated to

5 carry out this title $160,000,000 for fiscal year

6 1994 and $130,924,000 for fiscal year 1995.

7 Such sums shall remain available until ex8 pended.

9 ‘‘SEC. 104. FINANCIAL ASSISTANCE FOR SEWER FACILITIES.

10 ‘‘No financial assistance shall be extended

11 under this Act for sewer or other waste dis12 posal facilities unless the appropriate agency

13 of the State in which the project is located

14 certifies that such facilities meet applicable

15 Federal, State, interstate, or local water qual16 ity standards.

17 ‘‘SEC. 105. CONSTRUCTION COST INCREASES.

18 ‘‘In any case where a grant (including a

19 supplemental grant) has been made under

20 this title for a project and after such grant has

21 been made but before completion of the

22 project, the cost of such project based upon

23 the designs and specifications which were the

24 basis of the grant has been increased because

25 of increases in costs, the amount of such grant
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1 may be increased by an amount equal to the

2 percentage increase, as determined by the

3 Secretary, in such costs.

4 ‘‘SEC. 106. USE OF FUNDS IN PROJECTS CONSTRUCTED

5 UNDER PROJECTED COST.

6 ‘‘In any case where a grant (including a

7 supplemental grant) has been made under

8 this title for a project and after such grant has

9 been made but before completion of the

10 project, the cost of such project based upon

11 the designs and specifications which were the

12 basis of the grant has decreased because of

13 decreases in costs, such underrun funds may

14 be used to improve the project either directly

15 or indirectly as determined by the Secretary.

16 ‘‘SEC. 107. CHANGED PROJECT CIRCUMSTANCES.

17 ‘‘In any case where a grant (including a

18 supplemental grant) has been made under

19 this title for a project and after such grant has

20 been made but before completion of the

21 project, the purpose or scope of such project

22 which was the basis of the grant has changed,

23 the Secretary may approve the use of grant

24 funds on such changed project if the Sec25 retary determines such changes are necessary
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1 to enhance economic development in the

2 area.

3 ‘‘TITLE II—LOANS, LOAN GUAR4 ANTEES, AND ECONOMIC DE5 VELOPMENT REVOLVING

6 FUND

7 ‘‘SEC. 201. PUBLIC WORKS AND DEVELOPMENT FACILITY

8 LOANS.

9 ‘‘(a) IN GENERAL.—Subject to subsection

10 (b) and section 401, upon the application of

11 any State, any political subdivision of any

12 State, any Indian tribe, or any private or pub13 lic nonprofit organization or association, the

14 Secretary may purchase evidences of indebt15 edness and make loans to assist in financing—

16 ‘‘(1) the purchase or development of

17 land and improvements for public works,

18 public service, or development facility

19 usage, including public works, public

20 service, and development facility usage,

21 to be provided by agencies of the Federal

22 Government pursuant to legislation re23 quiring that non-Federal entities bear

24 some part of the cost of providing such

25 works, service, or usage; and
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1 ‘‘(2) the acquisition, construction, re2 habilitation, alteration, expansion, or im3 provement of such facilities, including re4 lated machinery and equipment.

5 ‘‘(b) CONDITIONS.—The Secretary may pro6 vide financial assistance under subsection (a)

7 only if the Secretary finds that—

8 ‘‘(1) the project for which financial as9 sistance is sought will directly or indi10 rectly—

11 ‘‘(A) tend to improve the opportu12 nities, in the area where such project

13 is or will be located, for the success14 ful establishment or expansion of in15 dustrial or commercial plants or fa16 cilities,

17 ‘‘(B) otherwise assist in the cre18 ation of additional long-term employ19 ment opportunities for such area, or

20 ‘‘(C) primarily benefit the long21 term unemployed and members of

22 low-income families;

23 ‘‘(2) the funds requested for such

24 project are not otherwise available from

25 private lenders or from other Federal
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1 agencies on terms which in the opinion of

2 the Secretary will permit the accomplish3 ment of the project;

4 ‘‘(3) the amount of the loan plus the

5 amount of other available funds for such

6 project are adequate to ensure the com7 pletion of the project;

8 ‘‘(4) there is a reasonable expectation

9 of repayment; and

10 ‘‘(5) such area has an approved in11 vestment strategy under section 402 and

12 the project for which financial assistance

13 is sought is consistent with such strategy.

14 ‘‘(c) LOAN TERMS; INTEREST RATES.—

15 ‘‘(1) MAXIMUM TERM OF MATURITY.—

16 Subject to section 601, no loan, including

17 renewals or extensions of any loan, shall

18 be made under this section for a period

19 exceeding 40 years, and no evidence of

20 indebtedness maturing more than 40

21 years from the date of purchase shall be

22 purchased under this section.

23 ‘‘(2) INTEREST.—Loans under this sec24 tion shall bear interest at a rate not less

25 than a rate determined by the Secretary
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1 of the Treasury taking into consideration

2 the current average market yield on out3 standing marketable obligations of the

4 United States with remaining periods to

5 maturity comparable to the average ma6 turities of such loans, adjusted to the

nearest 1 7 ⁄8 of 1 percent, minus not to exceed 1 8 ⁄2 of 1 percent per annum.

9 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—

10 There are hereby authorized to be appro11 priated such sums as may be necessary to

12 carry out the provisions of this section and

13 section 202.

14 ‘‘(e) REGULATIONS.—The Secretary shall

15 prescribe regulations which will assure that

16 appropriate local governmental authorities

17 have been given a reasonable opportunity to

18 review and comment upon proposed projects

19 under this section.

20 ‘‘SEC. 202. BUSINESS LOANS AND LOAN GUARANTEES.

21 ‘‘(a) IN GENERAL.—

22 ‘‘(1) FINANCIAL ASSISTANCE AUTHOR23 IZED.—Subject to section 401, the Sec24 retary may assist in the financing the

25 purchase or development of land and fa-
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1 cilities (including machinery and equip2 ment) for industrial or commercial usage,

3 including the construction of new build4 ings, the rehabilitation of abandoned or

5 unoccupied buildings, and the alteration,

6 conversion, or enlargement of existing

7 buildings by—

8 ‘‘(A) purchasing evidences of in9 debtedness;

10 ‘‘(B) making loans (which for pur11 poses of this section shall include

12 participation in loans); and

13 ‘‘(C) guaranteeing loans made to

14 private borrowers by private lending

15 institutions, for any of the purposes

16 referred to in this paragraph upon

17 application of such institution and

18 upon such terms and conditions as

19 the Secretary may prescribe, except

20 that no such guarantee shall at any

21 time exceed 90 percent of the amount

22 of the outstanding unpaid balance of

23 such loan.

24 ‘‘(2) INTEREST SUBSIDY.—
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1 ‘‘(A) AUTHORIZATION.—In addition

2 to any other financial assistance

3 under this subchapter, the Secretary

4 may, in the case of any loan guaran5 tee under authority of paragraph (1)

6 of this section, pay to or on behalf of

7 the private borrower an amount suffi8 cient to reduce up to 4 percentage

9 points the interest paid by such bor10 rower on such guaranteed loans.

11 ‘‘(B) MAXIMUM AMOUNT OF BUY12 DOWN.—No payment under this para13 graph shall result in the interest rate

14 being paid by a borrower on such a

15 guaranteed loan being less than the

16 rate of interest for such a loan if the

17 loan were made under section 201.

18 ‘‘(C) FREQUENCY OF PAYMENT.—

19 Payments made to or on behalf of

20 such borrower shall be made no less

21 often than annually.

22 ‘‘(3) WORKING CAPITAL LOANS AND GUAR23 ANTEES.—The Secretary may assist in fi24 nancing any industrial or commercial ac25 tivity by—
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1 ‘‘(A) making working capital

2 loans;

3 ‘‘(B) guaranteeing working capital

4 loans made to private borrowers by

5 private lending institutions upon ap6 plication of such institution and upon

7 such terms and conditions as the Sec8 retary may prescribe, except that no

9 such guarantee shall at any time ex10 ceed 90 percent of the amount of the

11 outstanding unpaid balance of such

12 loan;

13 ‘‘(C) guaranteeing rental pay14 ments of leases for buildings and

15 equipment, except that no such guar16 antee shall exceed 90 percent of the

17 remaining rental payments required

18 by the lease; and

19 ‘‘(D) paying those debts with re20 spect to which a lien against property

21 has been legally obtained (including

22 the refinancing of any such debt) in

23 any case where the Secretary deter24 mines that the payment is essential in

25 order to—
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1 ‘‘(i) save employment in a des2 ignated area;

3 ‘‘(ii) avoid a significant rise in

4 unemployment; or

5 ‘‘(iii) create new or increased

6 employment.

7 ‘‘(b) TERMS AND CONDITIONS.—Financial as8 sistance under this section shall be on such

9 terms and conditions as the Secretary deter10 mines, subject to the following restrictions

11 and limitations:

12 ‘‘(1) Such financial assistance shall

13 not be extended to assist establishments

14 relocating from 1 area to another or to

15 assist subcontractors whose purpose is to

16 divest, or whose economic success is de17 pendent upon divesting, other contrac18 tors or subcontractors of contracts there19 tofore customarily performed by them,

20 except that this limitation shall not be

21 construed as prohibiting assistance for

22 the expansion of an existing business en23 tity through the establishment of a new

24 branch, affiliate, or subsidiary of such en25 tity if the Secretary finds that the estab-
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1 lishment of such branch, affiliate, or sub2 sidiary will not result in an increase in

3 unemployment of the area of original lo4 cation or in any other area where such

5 entity conducts business operations, un6 less the Secretary has reason to believe

7 that such branch, affiliate, or subsidiary

8 is being established with the intention of

9 closing down the operations of the exist10 ing business entity in the area of the

11 business entity’s original location or in

12 any other area where the entity conducts

13 such operations.

14 ‘‘(2) Such assistance shall be extended

15 only to applicants, both private and pub16 lic (including Indian tribes), which have

17 been approved for such assistance by an

18 agency or instrumentality of the State or

19 political subdivision thereof in which the

20 project to be financed is located, and

21 which agency or instrumentality is di22 rectly concerned with problems of eco23 nomic development in such State or sub24 division.
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1 ‘‘(3) The project for which financial

2 assistance is sought shall be reasonably

3 calculated to provide more than a tem4 porary alleviation of unemployment or

5 underemployment within the area in

6 which the project is or will be located.

7 ‘‘(4) No loan or guarantee may be ex8 tended under this section unless the fi9 nancial assistance applied for is not oth10 erwise available from private lenders or

11 from other Federal agencies on terms

12 which in the opinion of the Secretary will

13 permit the accomplishment of the

14 project.

15 ‘‘(5) The Secretary may not make any

16 loan without a participation unless the

17 Secretary determines that the loan can18 not be made on a participation basis.

19 ‘‘(6) No evidences of indebtedness

20 may be purchased and no loans may be

21 made or guaranteed unless the Secretary

22 is determined that there is reasonable as23 surance of repayment.

24 ‘‘(7) Subject to section 601(a)(5), no

25 loan or guarantee, including any renewal
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1 or extension of a loan or guarantee, may

2 be made under this section for a term to

3 maturity of more than 25 years and no

4 evidences of indebtedness which matures

5 more than 25 years after the date of pur6 chase may be purchased under this sec7 tion, except that this paragraph shall not

8 apply to securities or obligations re9 ceived by the Secretary as a claimant in

10 bankruptcy or equitable reorganization

11 or as a creditor in other proceedings at12 tendant upon insolvency of the obligor.

13 ‘‘(8) Loans made and evidences of in14 debtedness purchased under this section

15 shall bear interest at a rate not less than

16 a rate determined by the Secretary of the

17 Treasury taking into consideration the

18 current average market yield on out19 standing marketable obligations of the

20 United States with remaining periods to

21 maturity comparable to the average ma22 turities of such loans, adjusted to the

nearest 1 23 ⁄8 of 1 percent, plus an additional

24 charge, if any, toward covering other

25 costs of the program as the Secretary
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1 may determine to be consistent with the

2 purpose of this section.

3 ‘‘(9) Loan assistance (other than for a

4 working capital loan) shall not exceed 65

5 percent of the aggregate cost to the appli6 cant (excluding all other Federal aid in

7 connection with the undertaking) of ac8 quiring or developing land and facilities

9 (including machinery and equipment),

10 and of constructing, altering, converting,

11 rehabilitating, or enlarging the building

12 or buildings of the particular project, and

13 shall, among others, be on the condition

14 that—

15 ‘‘(A) other funds are available in

16 an amount which, together with the

17 assistance provided under this sec18 tion, shall be sufficient to pay such

19 aggregate cost;

20 ‘‘(B) not less than 15 percent of

21 such aggregate cost be supplied as

22 equity capital or as a loan repayable

23 in no shorter period of time and at no

24 faster an amortization rate than the

25 Federal financial assistance extended
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1 under this section is being repaid,

2 and if such a loan is secured, the se3 curity for the loan shall be subordi4 nate and inferior to the lien or liens

5 securing such Federal financial as6 sistance;

7 ‘‘(C) except with respect to

8 projects involving financial participa9 tion by Indian tribes, not less than 5

10 percent of such aggregate cost shall

11 be supplied by the State or any agen12 cy, instrumentality, or political sub13 division of a State, or by a community

14 or area organization which is non15 governmental in character, unless the

16 Secretary shall determine in accord17 ance with objective standards pre18 scribed by regulation that all or part

19 of such funds are not reasonably

20 available to the project because of the

21 economic distress of the area or for

22 other good cause, in which case the

23 Secretary may waive the requirement

24 of this provision to the extent of such

25 unavailability, and allow the funds
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1 required by this subsection to be sup2 plied by the applicant or by such

3 other non-Federal source as may rea4 sonably be available to the project;

5 and

6 ‘‘(D) to the extent the Secretary

7 finds such action necessary to en8 courage financial participation in a

9 particular project by other lenders

10 and investors, and except as other11 wise provided in subparagraph (B),

12 any Federal financial assistance ex13 tended under this section may be re14 payable only after other loans made

15 in connection with such project have

16 been repaid in full, and the security,

17 if any, for such Federal financial as18 sistance may be subordinate and infe19 rior to the lien or liens securing other

20 loans made in connection with the

21 same project.

22 ‘‘SEC. 203. ECONOMIC DEVELOPMENT LIQUIDATING FUND.

23 ‘‘The Economic Development Revolving

24 Fund established before the date of the enact25 ment of the Economic Development Financing
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1 Act of 1994 shall continue to be available to

2 the Secretary as a liquidating account as de3 fined under section 502 of the Federal Credit

4 Reform Act of 1990 for payment of obligations

5 and costs in connection with financial assist6 ance extended under this Act before October

7 1, 1991.

8 ‘‘TITLE III—STRATEGIC PLAN9 NING, RESEARCH, INFORMA10 TION, AND TECHNICAL AS11 SISTANCE

12 ‘‘Subtitle A—Strategic Economic

13 Development Planning, Re14 search, and Information

15 ‘‘SEC. 301. OFFICE OF STRATEGIC ECONOMIC DEVELOP16 MENT PLANNING AND POLICY.

17 ‘‘(a) ESTABLISHMENT.—The Secretary shall

18 establish an Office of Strategic Economic De19 velopment Planning and Policy (hereafter in

20 this section referred to as ‘the Office’).

21 ‘‘(b) DUTIES.—The duties of the head of the

22 Office are as follows:

23 ‘‘(1) RESEARCH, EVALUATION AND DEM24 ONSTRATION.—To support research, eval25 uation and demonstration projects to
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1 study and assess best practices in eco2 nomic development and to examine

3 trends and changes in economic condi4 tions that affect regional development.

5 ‘‘(2) POLICY DEVELOPMENT.—To de6 velop recommendations on both short7 and long-term policies regarding eco8 nomic development issues and programs,

9 to help foster the diffusion of innovative,

10 best practices in economic development

11 throughout the Department of Com12 merce.

13 ‘‘(3) COORDINATION.—To take a leading

14 role in developing and promoting means

15 for greater coordination among States,

16 regions and local communities in the de17 sign and implementation of economic de18 velopment strategies, and shall work in

19 conjunction with Federal agencies on de20 veloping and implementing means for re21 ducing fragmentation and increase co22 ordination among Federal programs that

23 provide economic development assist24 ance.
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1 ‘‘(4) INFORMATION DISSEMINATION.—To

2 sponsor and support conferences, work3 shops, and other forums to bring together

4 the best scholars and practitioners in the

5 field to effectively disseminate knowl6 edge of the state-of-the-art in economic

7 development to Federal, State, and local

8 development organizations. It shall also

9 disseminate information on all aspects of

10 economic development through elec11 tronic and printed media, making such

12 information widely accessible.

13 ‘‘(c) RESEARCH IN CAUSES OF LONG-TERM

14 ECONOMIC DETERIORATION.—

15 ‘‘(1) IN GENERAL.—To assist in the

16 long-range accomplishment of the pur17 poses of this Act, the Secretary, in co18 operation with other agencies having

19 similar functions, shall establish and con20 duct a continuing program of study,

21 training, and research to—

22 ‘‘(A) assist in determining the

23 causes of unemployment, under24 employment, underdevelopment, and
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1 chronic depression in the various

2 areas and regions of the Nation,

3 ‘‘(B) assist in the formulation and

4 implementation of national, State,

5 and local programs which will raise

6 income levels and otherwise produce

7 solutions to the problems resulting

8 from these conditions, and

9 ‘‘(C) assist in providing the per10 sonnel needed to conduct such pro11 grams.

12 ‘‘(2) MANNER OF PROVIDING STUDY, AS13 SISTANCE.—The program of study, train14 ing, and research may be conducted by

15 the Secretary through—

16 ‘‘(A) members of the Secretary’s

17 staff;

18 ‘‘(B) the payment of funds author19 ized for this section to other depart20 ments or agencies of the Federal Gov21 ernment;

22 ‘‘(C) the employment of private in23 dividuals, partnerships, firms, cor24 porations, or suitable institutions;
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1 ‘‘(D) contracts entered into for

2 such purposes;

3 ‘‘(E) grants to such individuals,

4 organizations, or institutions as the

5 Secretary determines to be appro6 priate; or

7 ‘‘(F) conferences and similar

8 meetings organized for such pur9 poses.

10 ‘‘(3) AVAILABILITY OF RESULTS OF RE11 SEARCH.—The Secretary shall make avail12 able to interested individuals and organi13 zations the results of such research.

14 ‘‘(4) ANNUAL REPORT OF SECRETARY.—

15 The Secretary shall include in the annual

16 report under section 606 a detailed state17 ment concerning the study and research

18 conducted under this section together

19 with the Secretary’s findings and conclu20 sions and such recommendations for leg21 islative and other action as the Secretary

22 may consider appropriate.

23 ‘‘(d) GEOGRAPHIC ANALYSIS TOOL.—

24 ‘‘(1) IN GENERAL.—The Secretary shall,

25 in cooperation with other appropriate
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1 Federal agencies develop a computerized

2 geographic analysis tool that all Federal

3 departments and agencies and grant re4 cipients may use to evaluate the success

5 of these programs.

6 ‘‘(2) REPORT.—Not later than 6 months

7 after the date of the enactment of the

8 Economic Development Financing Act of

9 1994, the Secretary shall transmit to Con10 gress a report on use of the computerized

11 geographic analysis tool developed pur12 suant to paragraph (1) by Federal depart13 ments and agencies.

14 ‘‘(e) INDEPENDENT ADVISORY COMMITTEE.—

15 The Secretary shall establish an advisory

16 committee made up of representatives from

17 major State, local, and nonprofit economic de18 velopment organizations as well as nationally

19 recognized experts on innovative approaches

20 to economic development to advise and make

21 recommendations to the Office.

22 ‘‘(f) FEDERAL COORDINATING COUNCIL FOR

23 ECONOMIC DEVELOPMENT.—

24 ‘‘(1) IN GENERAL.—The Secretary shall

25 establish a Federal Coordinating Council
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1 for Economic Development (hereafter in

2 this section referred to as the ‘Council’).

3 ‘‘(2) COMPOSITION OF COUNCIL.—The

4 Council shall be composed of representa5 tives from the Federal agencies involved

6 in matters that affect regional economic

7 development.

8 ‘‘(3) DUTIES.—The council shall assist

9 in providing a unifying framework for

10 economic and regional development ef11 forts and develop a governmentwide stra12 tegic plan for economic development.

13 ‘‘(g) GRANTS AND CONTRACTS FOR DEM14 ONSTRATION PROJECTS; PURPOSES.—The Sec15 retary may make grants, enter into contracts,

16 or otherwise provide funds for any dem17 onstration project in an eligible area which

18 the Secretary determines is designed to foster

19 regional productivity and growth, prevent

20 outmigration, and otherwise carry out the

21 purposes of this Act.

22 ‘‘SEC. 302. OFFICE OF ECONOMIC DEVELOPMENT INFORMA23 TION.

24 ‘‘(a) ESTABLISHMENT.—The Secretary shall

25 establish the Office of Economic Development
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1 Information (hereafter in this section re2 ferred to as the ‘Office’) within the Office of

3 Strategic Economic Development Planning

4 and Policy.

5 ‘‘(b) DUTIES.—The duties of the head of the

6 Office shall be to—

7 ‘‘(1) serve as a central information

8 clearinghouse on matters relating to eco9 nomic development, economic adjust10 ment, industrial retention, disaster recov11 ery, and defense conversion programs

12 and activities of the Federal and State

13 governments, including political subdivi14 sions of the States; and

15 ‘‘(2) help potential and actual appli16 cants for economic development, eco17 nomic adjustment, disaster recovery, in18 dustrial retention, and defense conver19 sion assistance under Federal, State and

20 local laws in locating and applying for

21 such assistance, including financial and

22 technical assistance.

23 ‘‘(c) INFORMATION DATA BASES.—

24 ‘‘(1) USES.—The Office shall develop

25 information data bases for use by Federal
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1 departments and agencies, State and

2 local governmental agencies, public and

3 private entities, and individuals to assist

4 such agencies, entities, and individuals in

5 the process of identifying and applying

6 for assistance and resources under eco7 nomic development, economic adjust8 ment, disaster recovery, industrial reten9 tion, and defense conversion programs

10 and activities of the Federal, State, and

11 local governments.

12 ‘‘(2) SPECIFIC KINDS OF INFORMATION

13 REQUIRED TO BE INCLUDED.—The data

14 bases shall include the following kinds of

15 information:

16 ‘‘(A) A comprehensive compilation

17 of all relevant information concern18 ing available economic development,

19 economic adjustment, disaster recov20 ery, industrial retention, and defense

21 conversion programs of the Federal

22 Government, including key contact

23 people, descriptions of the applica24 tion process, eligibility requirements

25 and criteria, selection and followup
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1 procedures, and other such relevant

2 information.

3 ‘‘(B) A compilation of major State

4 and local governmental economic de5 velopment, economic adjustment, dis6 aster relief, industrial retention, and

7 defense conversion assistance pro8 grams, including lists of appropriate

9 offices, officers, and contact person10 nel connected with, or involved in,

11 such programs.

12 ‘‘(C) A compilation of relevant and

13 available economic data and trends,

14 including information about the na15 tional, regional and local impacts of

16 trade agreements, defense spending

17 and downsizing, technological

18 change, and other sources of substan19 tial economic dislocation.

20 ‘‘(D) A compilation of case studies

21 and ‘best practices’ in economic de22 velopment, adjustment and conver23 sion.

24 ‘‘(E) A compilation of technology

25 development, deployment, diffusion,
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1 and commercialization programs, as2 sistance and resources provided by

3 Federal agencies, including listings of

4 technologies, processes, and other

5 proprietary rights owned, or held in

6 part, by the Federal Government, and

7 other such information as referred to

8 in section 722 and any other relevant

9 information, such as major State and

10 local programs, to assist technology

11 development, deployment and com12 mercialization in economic develop13 ment, adjustment and conversion ef14 forts.

15 ‘‘(F) A compilation of published

16 works (books, reports, articles, vid17 eos, and tapes), and selected texts of

18 such works, related to all facets of

19 economic development, economic ad20 justment and defense conversion.

21 ‘‘(G) A compilation of information

22 on case studies on early warning and

23 intervention efforts.

24 ‘‘(3) POINTS OF PUBLIC ACCESS.—
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1 ‘‘(A) IN GENERAL.—The Office shall

2 establish several mechanisms to as3 sure easy access by the public and

4 others to such data bases, and to as5 sure that the data bases be as acces6 sible, user-friendly, culturally neu7 tral, and affordable as possible.

8 ‘‘(B) OUTREACH.—The Office shall

9 conduct an extensive outreach to

10 States and communities, and to a

11 wide range of constituencies, includ12 ing State and local government offi13 cials, chambers of commerce, indus14 trial organizations, labor unions, and

15 community-based organizations, to

16 publicize the existence of the data

17 banks and other assistance and serv18 ices provided under this section, and

19 how to acquire such assistance and

20 services, and access such data banks.

21 ‘‘(C) MEANS OF ACCESS.—Access to

22 the Office’s data services shall in23 clude the following means:
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1 ‘‘(i) A toll-free nationwide tele2 phone number to provide direct

3 phone access to the public.

4 ‘‘(ii) On-line electronic access

5 through existing computer net6 work services and publicly avail7 able computer data base access

8 facilities, such as at repository li9 braries and by direct call-in via

10 modem.

11 ‘‘(iii) Printed manuals and ori12 entation materials.

13 ‘‘(iv) Periodic orientation

14 workshops available to the public.

15 ‘‘(v) On-call information spe16 cialists to address special prob17 lems requiring person-to-person

18 assistance.

19 ‘‘(d) CONSULTATIVE MEETINGS.—The Office

20 shall conduct, on an annual basis, consult21 ative meetings and briefings with constitu22 encies from several different types of dis23 tressed areas and regions, drawn from local

24 and State governments, economic develop25 ment districts, Indian tribes, business, labor,
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1 community and public interest organizations

2 and academic institutions. Such meetings and

3 briefings shall be held in these different areas

4 to introduce the Office’s programs and re5 ceive comments and recommendations con6 cerning the Office’s services and how to ex7 pand and improve them.

8 ‘‘(e) INTERAGENCY COORDINATION.—The

9 Secretary shall enter into such agreements

10 and understandings as may be necessary with

11 other Federal departments and agencies to

12 coordinate the accomplishment of the objec13 tives of this section.

14 ‘‘SEC. 303. UNIFORM GRANT APPLICATION FORM.

15 ‘‘(a) DEVELOPMENT.—The Secretary shall,

16 in cooperation with the heads of appropriate

17 Federal departments and agencies, develop a

18 general, simplified application form for grant

19 assistance under this Act which shall be used

20 by all Federal departments and agencies

21 which provide grant assistance.

22 ‘‘(b) REPORT.—Not later than 6 months

23 after the date of the enactment of this section,

24 the Secretary shall transmit to Congress a re25 port on use of the form developed pursuant to
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1 subsection (a) by Federal departments and

2 agencies.

3 ‘‘Subtitle B—Technical Assistance

4 and Economic Development

5 Planning

6 ‘‘SEC. 311. TECHNICAL ASSISTANCE.

7 ‘‘(a) IN GENERAL.—In carrying out the du8 ties of the Secretary under this Act, the Sec9 retary may provide technical assistance

10 which would be useful in alleviating or pre11 venting conditions of excessive unemploy12 ment or underemployment to areas which the

13 Secretary finds have substantial need for

14 such assistance, including assistance for

15 project planning and feasibility studies, man16 agement and operational assistance, and stud17 ies evaluating the needs of, and developing

18 potentialities for, economic growth of such

19 areas.

20 ‘‘(b) PROCEDURES AND TERMS.—

21 ‘‘(1) MANNER OF PROVIDING ASSIST22 ANCE.—Assistance may be provided by the

23 Secretary through—

24 ‘‘(A) members of the Secretary’s

25 staff;
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1 ‘‘(B) the payment of funds author2 ized for this section to other depart3 ments or agencies of the Federal Gov4 ernment;

5 ‘‘(C) the employment of private in6 dividuals, partnerships, firms, cor7 porations, or suitable institutions;

8 ‘‘(D) contracts entered into for

9 such purposes; or

10 ‘‘(E) grants-in-aid to appropriate

11 public or private nonprofit State,

12 area, district, or local organizations.

13 ‘‘(2) REPAYMENT TERMS.—The Sec14 retary, in the Secretary’s discretion, may

15 require the repayment of assistance pro16 vided under this subsection and pre17 scribe the terms and conditions of such

18 repayment.

19 ‘‘(c) GRANTS COVERING ADMINISTRATIVE EX20 PENSES.—

21 ‘‘(1) IN GENERAL.—The Secretary may

22 make grants to defray not to exceed 75

23 percent of the administrative expenses of

24 organizations which he determines to be

25 qualified to receive grants-in-aid under
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1 subsection (a), except that in the case of

2 a grant under this subsection to an In3 dian tribe the Secretary is authorized to

4 defray up to 100 percent of such ex5 penses.

6 ‘‘(2) DETERMINATION OF NON-FEDERAL

7 SHARE.—In determining the amount of the

8 non-Federal share of administrative costs

9 or expenses, the Secretary shall give due

10 consideration to all contributions both in

11 cash and in kind, fairly evaluated, includ12 ing space, equipment, and services.

13 ‘‘(3) USE OF GRANTS WITH PLANNING

14 GRANTS.—Where practicable, grants-in-aid

15 authorized under this subsection shall be

16 used in conjunction with other available

17 planning grants, such as planning activi18 ties described in section 105(a)(13) of the

19 Housing and Community Development

20 Act of 1974 and highway planning and re21 search grants authorized under the Fed22 eral Aid Highway Act of 1962, to assure

23 adequate and effective planning and eco24 nomical use of funds.
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1 ‘‘(d) AVAILABILITY OF TECHNICAL INFORMA2 TION; FEDERAL PROCUREMENT.—The Secretary

3 shall aid areas by furnishing to interested in4 dividuals, communities, industries, and enter5 prises within such areas any assistance, tech6 nical information, market research, or other

7 forms of assistance, information, or advice

8 which would be useful in alleviating or pre9 venting conditions of excessive unemploy10 ment or underemployment within such areas.

11 The Secretary may furnish the procurement

12 divisions of the various departments, agen13 cies, and other instrumentalities of the Fed14 eral Government with a list containing the

15 names and addresses of business firms which

16 are desirous of obtaining Government con17 tracts for the furnishing of supplies or serv18 ices, and designating the supplies and serv19 ices such firms are engaged in providing.

20 ‘‘SEC. 312. ECONOMIC DEVELOPMENT PLANNING.

21 ‘‘(a) DIRECT GRANTS.—

22 ‘‘(1) IN GENERAL.—The Secretary may,

23 upon application of any State, or city, or

24 other political subdivision of a State, or

25 sub-State planning and development or-
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1 ganization (including an economic devel2 opment district), make direct grants to

3 such State, city, other political subdivi4 sion, or organization to pay up to 80 per5 cent of the cost for economic develop6 ment planning.

7 ‘‘(2) PLANNING PROJECTS SPECIFICALLY

8 INCLUDED.—The planning for cities, other

9 political subdivisions, and sub-State plan10 ning and development organizations (in11 cluding an economic development dis12 trict) assisted under this section shall in13 clude systematic efforts to reduce unem14 ployment and increase incomes.

15 ‘‘(3) PLANNING PROCESS.—The planning

16 shall be a continuous process involving

17 public officials and private citizens in

18 analyzing local economies, defining de19 velopment goals, determining project op20 portunities, and formulating and imple21 menting a development program.

22 ‘‘(4) COOPERATIVE DEVELOPMENT OF IN23 VESTMENT STRATEGY.—Any State invest24 ment strategy prepared with assistance

25 under this section shall be prepared co-
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1 operatively by the State, the political sub2 divisions of the State, and the economic

3 development districts located in whole or

4 in part within such State.

5 ‘‘(5) STATE CERTIFICATION.—Upon com6 pletion of any such strategy, the State

7 shall certify to the Secretary that—

8 ‘‘(A) in the preparation of such

9 State investment strategy, the local

10 and economic development district

11 strategies were considered and, to the

12 fullest extent possible, such State

13 strategy is consistent with such local

14 and economic development district

15 strategies; and

16 ‘‘(B) such State strategy is consist17 ent with such local and economic de18 velopment district strategies, or, if

19 such State strategy is not consistent

20 with such local and economic devel21 opment district strategies, all of the

22 inconsistencies of the State strategy

23 with the local and economic develop24 ment district strategies, and the jus-
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1 tification for each of these inconsist2 encies.

3 ‘‘(6) COMPREHENSIVE PLANNING PROC4 ESS.—The development of any State in5 vestment strategy shall be a part of a

6 comprehensive planning process that

7 shall consider the provisions of public

8 works to—

9 ‘‘(A) stimulate and channel devel10 opment, economic opportunities, and

11 choices for individuals;

12 ‘‘(B) support sound land use;

13 ‘‘(C) enhance and protect the en14 vironment including the conservation

15 and preservation of open spaces and

16 environmental quality;

17 ‘‘(D) provide public services; and

18 ‘‘(E) balance physical and human

19 resources through the management

20 and control of physical development.

21 ‘‘(7) COORDINATION OF ASSISTANCE

22 UNDER 311(c).—The assistance available

23 under this section may be provided in ad24 dition to assistance available under sec-
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1 tion 311(c) but shall not supplant such as2 sistance.

3 ‘‘(8) ANNUAL REPORT BY RECIPIENT.—

4 Each State receiving assistance under

5 this subsection shall submit to the Sec6 retary an annual report on the planning

7 process assisted under this subsection.

8 ‘‘(b) COMPLIANCE WITH REVIEW PROCE9 DURE.—The planning assistance authorized

10 under this title shall be used in conjunction

11 with any other available Federal planning as12 sistance to assure adequate and effective

13 planning and economical use of funds.

14 ‘‘SEC. 313. BUSINESS OUTREACH CENTER DEMONSTRATION

15 PROJECT.

16 ‘‘(a) IN GENERAL.—The Secretary shall con17 duct a project in each of fiscal years 1994

18 through 1996 with funds made available

19 under this title for the purpose of demonstrat20 ing methods of assisting isolated small busi21 nesses to access small business services pro22 vided by Federal, State, and local govern23 ments.

24 ‘‘(b) ESTABLISHMENT OF CENTERS.—In con25 ducting the demonstration project under this
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1 section, the Secretary shall establish 3 busi2 ness outreach centers. At least 2 of these busi3 ness outreach centers shall be established in

4 rural areas.

5 ‘‘(c) PURPOSE OF CENTERS.—It shall be the

6 purpose of each business outreach center es7 tablished under this section—

8 ‘‘(1) to provide a one-stop clearing9 house to assist isolated small businesses

10 in accessing small business services pro11 vided by Federal, State, and local govern12 ments; and

13 ‘‘(2) to improve efficiency in the deliv14 ery of such services.

15 ‘‘(d) SERVICES TO BE PROVIDED.—Each

16 business outreach center established under

17 this section shall provide the following serv18 ices:

19 ‘‘(1) Outreach to isolated small busi20 nesses.

21 ‘‘(2) Assessment of the need of iso22 lated small businesses for assistance serv23 ices.
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1 ‘‘(3) Referral of isolated small busi2 nesses to small business assistance agen3 cies.

4 ‘‘(4) Preparation of materials required

5 by isolated small businesses for participa6 tion in small business assistance pro7 grams.

8 ‘‘(5) Case management to assure fol9 low up and quality control of business

10 services.

11 ‘‘(6) Coordination of networking

12 among isolated small businesses.

13 ‘‘(7) Quality control of small business

14 assistance services.

15 ‘‘(e) ISOLATED SMALL BUSINESS DEFINED.—

16 For the purposes of this section, the term ‘iso17 lated small business’ means a small business

18 that is unable to effectively access small busi19 ness services provided by Federal, State, and

20 local governments due to linguistic, cultural,

21 or geographic barriers.

22 ‘‘SEC. 314. AUTHORIZATION OF APPROPRIATIONS.

23 ‘‘There is authorized to be appropriated to

24 carry out this title $37,100,000 for fiscal year
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1 1994 and $50,000,000 for fiscal year 1995. Such

2 sums shall remain available until expended.

3 ‘‘TITLE IV—ELIGIBILITY AND

4 INVESTMENT STRATEGIES

5 ‘‘SEC. 401. AREA ELIGIBILITY.

6 ‘‘(a) CERTIFICATION.—In order to be eligi7 ble for assistance under title I or II, an appli8 cant seeking assistance to undertake a project

9 shall certify, as part of an application for such

10 assistance, that, as of the date of submission

11 of such application, the area in which the

12 project is located meets 1 or more of the fol13 lowing criteria:

14 ‘‘(1) The area has a per capita income

15 of 80 percent or less of the national aver16 age.

17 ‘‘(2) The area has an unemployment

18 rate 1 percent above the national average

19 percentage for the most recent 24-month

20 period for which statistics are available.

21 ‘‘(3) The area has experienced or is

22 about to experience a sudden economic

23 dislocation resulting in job loss that is

24 significant both in terms of the number
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1 of jobs eliminated and the effect upon the

2 employment rate of the area.

3 ‘‘(4) The area is a community or

4 neighborhood (defined without regard to

5 political or other subdivisions or bound6 aries) which the Secretary determines

7 has 1 or more of the following conditions:

8 ‘‘(A) A large concentration of low9 income persons.

10 ‘‘(B) Rural areas having substan11 tial outmigration or substantial eco12 nomic deterioration and unemploy13 ment or underemployment.

14 ‘‘(C) Substantial unemployment.

15 ‘‘(b) DOCUMENTATION.—A certification

16 made under subsection (a) shall be supported

17 by Federal data, when available, and in other

18 cases by data available through the State gov19 ernment. Such documentation shall be accept20 ed by the Secretary unless it is determined to

21 be inaccurate. The most recent statistics

22 available shall be used.

23 ‘‘(c) SPECIAL RULE.—No area which meets

24 the criteria of subsection (a) shall be subject
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1 to the requirements of subparagraphs (A) and

2 (C) of section 101(a)(1).

3 ‘‘(d) DEFINITION.—For purposes of this Act,

4 the term ‘large concentration of low-income

5 persons’ means an area with a median family

6 income of not more than 80 percent of the na7 tional median family income.

8 ‘‘SEC. 402. INVESTMENT STRATEGY.

9 ‘‘The Secretary may provide assistance

10 under this Act to an applicant for a project to

11 be undertaken in an area only if the applicant

12 submits to the Secretary, as part of an appli13 cation for such assistance, and the Secretary

14 approves an investment strategy which—

15 ‘‘(1) identifies the economic develop16 ment problems to be addressed using

17 such assistance;

18 ‘‘(2) identifies past, present, and pro19 jected future economic development in20 vestments in such area and public and

21 private participants and sources of fund22 ing for such investments;

23 ‘‘(3) sets forth a strategy for address24 ing the economic problems identified

25 pursuant to paragraph (1) and describes
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1 how the strategy will solve such prob2 lems;

3 ‘‘(4) provides a description of the

4 project necessary to implement the strat5 egy, estimates of costs and time tables;

6 and

7 ‘‘(5) provides a summary of public

8 and private resources expected to be

9 available for such project.

10 ‘‘SEC. 403. DEFINITION.

11 ‘‘For purposes of this Act, the term ‘eco12 nomic development district’ means—

13 ‘‘(1) an economic development district

14 designated before the date of enactment

15 of the Economic Development Financing

16 Act of 1994 under section 403(a) of the

17 Public Works and Economic Development

18 Act of 1965, as in effect on the day before

19 such date; and

20 ‘‘(2) any district within a State

21 which—

22 ‘‘(A) is designated by the Sec23 retary;

24 ‘‘(B) is of sufficient size or popu25 lation and contains sufficient re-
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1 sources to foster economic develop2 ment on a scale involving more than

3 1 county; and

4 ‘‘(C) does not contain within its

5 boundaries any part of another eco6 nomic development district des7 ignated under subparagraph (A).

8 ‘‘SEC. 404. FUNDING.

9 ‘‘Amounts authorized to be appropriated

10 under other sections of this Act shall be avail11 able for the purposes of carrying out this title.

12 ‘‘TITLE V—ADMINISTRATION

13 ‘‘SEC. 501. APPOINTMENT OF ASSISTANT SECRETARY OF

14 COMMERCE FOR ECONOMIC DEVELOPMENT;

15 COMPENSATION.

16 ‘‘(a) ADMINISTRATION OF ACT.—The Sec17 retary shall, with the assistance of an Assist18 ant Secretary of Commerce, administer this

19 Act.

20 ‘‘(b) APPOINTMENT OF ASSISTANT SEC21 RETARY.—

22 ‘‘(1) IN GENERAL.—The Assistant Sec23 retary whose position is established

24 under subsection (a) shall be appointed
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1 by the President, by and with the advice

2 and consent of the Senate.

3 ‘‘(2) DUTIES.—The Assistant Secretary

4 appointed under paragraph (1) shall per5 form such functions as the Secretary may

6 prescribe.

7 ‘‘SEC. 502. CONSULTATION OF SECRETARY WITH OTHER

8 PERSONS AND AGENCIES.

9 ‘‘(a) CONSULTATION ON PROBLEMS RELATING

10 TO UNEMPLOYMENT.—The Secretary may, from

11 time to time, call together and confer with

12 any persons, including representatives of

13 labor, management, agriculture, and govern14 ment, who can assist in meeting the problems

15 of area and regional unemployment or

16 underemployment.

17 ‘‘(b) CONSULTATION ON ADMINISTRATION OF

18 ACT.—The Secretary may make provision for

19 such consultation with interested depart20 ments and agencies as he may deem appro21 priate in the performance of the functions

22 vested in him by this Act.
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1 ‘‘SEC. 503. ADMINISTRATION, OPERATION, AND MAINTE2 NANCE.

3 ‘‘No Federal assistance shall be approved

4 under this Act unless the Secretary is satis5 fied that the project for which Federal assist6 ance is granted will be properly and effi7 ciently administered, operated, and main8 tained.

9 ‘‘SEC. 504. EXPEDITED PROCESSING OF APPLICATIONS.

10 ‘‘(a) GUIDELINES.—Not later than 60 days

11 after the date of the enactment of the Eco12 nomic Development Financing Act of 1994, the

13 Assistant Secretary for Economic Develop14 ment shall—

15 ‘‘(1) publish guidelines to expedite the

16 processing of applications for assistance

17 under this Act; and

18 ‘‘(2) transmit to the Committee on

19 Public Works and Transportation and the

20 Committee on Banking, Finance and

21 Urban Affairs of the House of Represent22 atives and the Committee on Environ23 ment and Public Works and the Commit24 tee on Banking, Housing, and Urban Af25 fairs of the Senate a report containing

26 such guidelines.
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1 ‘‘(b) CONTENTS.—Guidelines to be pub2 lished under subsection (a) shall, at a mini3 mum, provide for the following:

4 ‘‘(1) Increased reliance on self-certifi5 cation by applicants to establish compli6 ance with other Federal laws.

7 ‘‘(2) Greater use of uniform applica8 tion forms and procedures.

9 ‘‘(3) Delegation of decisionmaking au10 thority to regional offices.

11 ‘‘(4) Reduction in the time and num12 ber of reviews conducted by other offices

13 of the Department of Commerce.

14 ‘‘SEC. 505. PERFORMANCE EVALUATIONS OF GRANT RE15 CIPIENTS.

16 ‘‘(a) IN GENERAL.—At least once every 2

17 years, the Secretary shall conduct an evalua18 tion of each university center and economic

19 development district receiving grant assist20 ance under this Act to assess the recipient’s

21 performance and contribution toward job cre22 ation.

23 ‘‘(b) CRITERIA.—
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1 ‘‘(1) ESTABLISHMENT.—The Secretary

2 shall establish criteria for use in conduct3 ing evaluations under subsection (a).

4 ‘‘(2) CRITERIA FOR UNIVERSITY CEN5 TERS.—The criteria for evaluation of a

6 university center shall, at a minimum,

7 provide for an assessment of the center’s

8 contribution to providing technical as9 sistance, conducting applied research,

10 and disseminating results of the center’s

11 activities.

12 ‘‘(3) CRITERIA FOR ECONOMIC DEVELOP13 MENT DISTRICTS.—The criteria for evalua14 tion of an economic development district

15 shall, at a minimum, provide for an as16 sessment of management standards, fi17 nancial accountability, and program per18 formance.

19 ‘‘(c) PEER REVIEW.—In conducting an eval20 uation of a university center under sub21 section (a), the Secretary shall provide for the

22 participation of at least 1 other university

23 center on a cost-reimbursement basis.
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1 ‘‘TITLE VI—MISCELLANEOUS

2 ‘‘SEC. 601. POWERS OF SECRETARY.

3 ‘‘(a) IN GENERAL.—In performing the du4 ties of the Secretary under this Act, the Sec5 retary may—

6 ‘‘(1) adopt, alter, and use a seal, which

7 shall be judicially noticed;

8 ‘‘(2) hold such hearings, sit and act at

9 such times and places, and take such tes10 timony, as the Secretary may deem advis11 able;

12 ‘‘(3) request directly from any execu13 tive department, bureau, agency, board,

14 commission, office, independent estab15 lishment, or instrumentality information,

16 suggestions, estimates, and statistics

17 needed to carry out the purposes of this

18 Act; and each department, bureau, agen19 cy, board, commission, office, establish20 ment or instrumentality is authorized to

21 furnish such information, suggestions, es22 timates, and statistics directly to the Sec23 retary;

24 ‘‘(4) under regulations prescribed by

25 the Secretary, assign or sell at public or
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1 private sale, or otherwise dispose of for

2 cash or credit, in the Secretary’s discre3 tion and upon such terms and conditions

4 and for such consideration as the Sec5 retary determines to be reasonable, any

6 evidence of debt, contract, claim, per7 sonal property, or security assigned to or

8 held by the Secretary in connection with

9 grants or loans made or evidences of in10 debtedness purchased under this Act,

11 and collect or compromise all obligations

12 assigned to or held by him in connection

13 with such grants, loans, or evidences of

14 indebtedness until such time as such obli15 gations may be referred to the Attorney

16 General for suit or collection;

17 ‘‘(5) further extend the maturity of or

18 renew any loan made or evidence of in19 debtedness purchased under this Act, be20 yond the periods stated in such loan or

21 evidence of indebtedness or in this Act,

22 for additional periods not to exceed 10

23 years, if such extension or renewal will

24 aid in the orderly liquidation of such

25 loan or evidence of indebtedness;
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1 ‘‘(6) deal with, complete, renovate, im2 prove, modernize, insure, rent, or sell for

3 cash or credit, upon such terms and con4 ditions and for such consideration as the

5 Secretary determines to be reasonable,

6 any real or personal property conveyed

7 to, or otherwise acquired by, the Sec8 retary in connection with grants or loans

9 made or evidences of indebtedness pur10 chased under this Act;

11 ‘‘(7) pursue to final collection, by way

12 of compromise or other administrative

13 action, prior to reference to the Attorney

14 General, all claims against 3d parties as15 signed to the Secretary in connection

16 with grants or loans made or evidences of

17 indebtedness purchased under this Act;

18 ‘‘(8) acquire, in any lawful manner,

19 any property (real, personal, or mixed,

20 tangible or intangible), whenever nec21 essary or appropriate to the conduct of

22 activities under this Act;

23 ‘‘(9) in addition to any powers, func24 tions, privileges, and immunities other25 wise vested in the Secretary, take any ac-
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1 tion, including the procurement of the

2 services of attorneys by contract, deter3 mined by the Secretary to be necessary

4 or desirable in making, purchasing, serv5 icing, compromising, modifying, liquidat6 ing, or otherwise administratively deal7 ing with or realizing on loans made or

8 evidences of indebtedness purchased

9 under this Act;

10 ‘‘(10) employ experts and consultants

11 or organizations as authorized by section

12 3109 of title 5, compensate individuals so

13 employed at rates not in excess of $100

14 per diem, including travel time, and

15 allow them, while away from their homes

16 or regular places of business, travel ex17 penses (including per diem in lieu of sub18 sistence) as authorized by section 5703 of

19 title 5 for persons in the Government

20 service employed intermittently, while so

21 employed, except that contracts for such

22 employment may be renewed annually;

23 ‘‘(11) sue and be sued in any court of

24 record of a State having general jurisdic25 tion or in any United States district
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1 court, and jurisdiction is conferred upon

2 such district court to determine such

3 controversies without regard to the

4 amount in controversy; but no attach5 ment, injunction, garnishment, or other

6 similar process, mesne or final, shall be

7 issued against the Secretary or his prop8 erty; and

9 ‘‘(12) establish such regulations and

10 procedures as the Secretary may deem

11 appropriate in carrying out the provi12 sions of this Act.

13 ‘‘(b) DEFICIENCY JUDGMENTS.—The author14 ity under paragraph (7) of subsection (a) to

15 pursue claims shall include the authority to

16 obtain deficiency judgments or otherwise in

17 the case of mortgages assigned to the Sec18 retary.

19 ‘‘(c) INAPPLICABILITY OF CERTAIN OTHER RE20 QUIREMENTS.—Section 3709 of the Revised

21 Statutes of the United States shall not apply

22 to any contract of hazard insurance or to any

23 purchase or contract for services or supplies

24 on account of property obtained by the Sec25 retary as a result of grants or loans made or
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1 evidences of indebtedness purchased under

2 this Act if the premium for the insurance or

3 the amount of the insurance does not exceed

4 $1,000.

5 ‘‘(d) POWERS OF CONVEYANCE AND EXECU6 TION.—The power to convey and to execute, in

7 the name of the Secretary, deeds of convey8 ance, deeds of release, assignments and satis9 factions of mortgages, and any other written

10 instrument relating to real or personal prop11 erty or any interest therein acquired by the

12 Secretary pursuant to the provisions of this

13 Act may be exercised by the Secretary, or by

14 any officer or agent appointed by the Sec15 retary for such purpose, without the execu16 tion of any express delegation of power or

17 power of attorney.

18 ‘‘(e) RULE OF CONSTRUCTION.—No provision

19 of this section shall be construed to except the

20 activities under this Act from the application

21 of sections 507(b), 517 and 2679 of title 28.

22 ‘‘SEC. 602. TRANSFER OF FUNCTIONS OF AREA REDEVELOP23 MENT ADMINISTRATION.

24 ‘‘The functions, powers, duties, and au25 thorities and the assets, funds, contracts,
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1 loans, liabilities, commitments, authoriza2 tions, allocations, and records which are vest3 ed in or authorized to be transferred to the

4 Secretary of the Treasury under section 29(b)

5 of the Area Redevelopment Act, and all func6 tions, powers, duties, and authorities under

7 section 29(c) of such Act are hereby vested in

8 the Secretary.

9 ‘‘SEC. 603. SEPARABILITY.

10 ‘‘Notwithstanding any other evidence of

11 the intent of Congress, it is hereby declared

12 to be the intent of Congress that if any provi13 sion of this Act or the application thereof to

14 any persons or circumstances shall be ad15 judged by any court of competent jurisdiction

16 to be invalid, such judgment shall not affect,

17 impair, or invalidate the remainder of this Act

18 or its application to other persons and cir19 cumstances, but shall be confined in its oper20 ation to the provision of this Act or the appli21 cation thereof to the persons and cir22 cumstances directly involved in the con23 troversy in which such judgment shall have

24 been rendered.
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1 ‘‘SEC. 604. DEFINITION OF STATE.

2 ‘‘For purposes of this Act, the terms ‘State’

3 and ‘United States’ include the several States,

4 the District of Columbia, the Commonwealth

5 of Puerto Rico, the Virgin Islands, Guam, and

6 American Samoa.

7 ‘‘SEC. 605. ANNUAL REPORT TO CONGRESS.

8 ‘‘The Secretary shall make a comprehen9 sive and detailed annual report to the Con10 gress of his operations under this Act for each

11 fiscal year beginning with the fiscal year end12 ing September 30, 1995. Such report shall be

13 printed and shall be transmitted to the Con14 gress not later than July 1 of the year follow15 ing the fiscal year with respect to which such

16 report is made.

17 ‘‘SEC. 606. USE OF OTHER FACILITIES.

18 ‘‘(a) DELEGATION OF FUNCTIONS TO OTHER

19 FEDERAL DEPARTMENTS AND AGENCIES.—The

20 Secretary may delegate to the heads of other

21 departments and agencies of the Federal Gov22 ernment any of the Secretary’s functions,

23 powers, and duties under this Act as he may

24 deem appropriate, and to authorize the re25 delegation of such functions, powers, and du-
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1 ties by the heads of such departments and

2 agencies.

3 ‘‘(b) DEPARTMENT AND AGENCY EXECUTION

4 OF DELEGATED AUTHORITY.—Departments and

5 agencies of the Federal Government shall ex6 ercise their powers, duties, and functions in

7 such manner as will assist in carrying out the

8 objectives of this Act.

9 ‘‘(c) TRANSFER OF FUNDS.—

10 ‘‘(1) TRANSFER BETWEEN DEPART11 MENTS.—Funds authorized to be appro12 priated under this Act may be trans13 ferred between departments and agencies

14 of the Government, if such funds are used

15 for the purposes for which they are spe16 cifically authorized and appropriated.

17 ‘‘(2) TRANSFER FOR OTHER PURPOSES

18 UNDER THIS ACT.—Funds authorized to be

19 appropriated under this Act may be

20 transferred between functions estab21 lished under different titles of this Act, if

22 such funds are used for the purposes for

23 which they are specifically authorized

24 and appropriated. Such transferred funds

25 shall remain available until expended,
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1 and may be transferred to and merged

2 with the appropriations under the head3 ing ‘salaries and expenses’ by the Sec4 retary to the extent necessary to admin5 ister the program.

6 ‘‘(d) FUNDS TRANSFERRED FROM OTHER DE7 PARTMENTS AND AGENCIES.—In order to carry

8 out the objectives of this Act, the Secretary

9 may accept transfers of funds from other de10 partments and agencies of the Federal Gov11 ernment if the funds are used for the pur12 poses for which (and in accordance with the

13 terms under which) the funds are specifically

14 authorized and appropriated. Such trans15 ferred funds shall remain available until ex16 pended, and may be transferred to and

17 merged with the appropriations under the

18 heading ‘salaries and expenses’ by the Sec19 retary to the extent necessary to administer

20 the program.

21 ‘‘SEC. 607. AUTHORIZATION OF APPROPRIATIONS.

22 ‘‘There are hereby authorized to be appro23 priated such sums as may be necessary to

24 carry out those provisions of the Act for

25 which specific authority for appropriations is
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1 not otherwise provided in this Act except that

2 there are hereby authorized to be appro3 priated to carry out those provisions of the

4 Act for which specific authority for appro5 priations is not otherwise provided in this Act

6 not to exceed $36,000,000 for the fiscal year

7 ending September 30, 1995. Appropriations

8 authorized under this Act shall remain avail9 able until expended unless otherwise pro10 vided by appropriations Acts. Amounts au11 thorized to be appropriated under this sec12 tion may be used to support a personnel level

13 of up to 375 full-time equivalents and to ‘buy14 out’ existing employees without the loss of the

15 full-time equivalent positions filled by such

16 employees. Funds appropriated to carry out

17 the purposes of this Act are authorized to be

18 expended for the payment of all obligations

19 and expenditures arising from actions to pro20 tect the Government’s interest in grant prop21 erty.

22 ‘‘SEC. 608. PENALTIES.

23 ‘‘(a) FALSE STATEMENTS; SECURITY OVER24 VALUATION.—Whoever makes any statement

25 knowing it to be false, or whoever willfully
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1 overvalues any security, for the purpose of

2 obtaining for such person or for any applicant

3 any financial assistance under this Act or any

4 extension of any such assistance by renewal,

5 deferment, or action, or otherwise, or the ac6 ceptance, release, or substitution of security

7 for such assistance, or for the purpose of in8 fluencing in any way the action of the Sec9 retary, or for the purpose of obtaining money,

10 property, or anything of value, under this Act,

11 shall be fined under title 18, United States

12 Code, imprisoned for not more than 5 years,

13 or both.

14 ‘‘(b) EMBEZZLEMENT AND FRAUD-RELATED

15 CRIMES.—Whoever, being connected in any ca16 pacity with the Secretary, in the administra17 tion of this Act—

18 ‘‘(1) embezzles, abstracts, purloins, or

19 willfully misapplies any moneys, funds,

20 securities, or other things of value,

21 whether belonging to such person or

22 pledged or otherwise entrusted to such

23 person;

24 ‘‘(2) with intent to defraud the Sec25 retary or any other body politic or cor-
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1 porate, or any individual, or to deceive

2 any officer, auditor, or examiner, makes

3 any false entry in any book, report, or

4 statement of or to the Secretary, or with5 out being duly authorized draws any

6 order or issues, puts forth, or assigns any

7 note, debenture, bond, or other obliga8 tion, or draft, bill of exchange, mortgage,

9 judgment, or decree thereof;

10 ‘‘(3) with intent to defraud partici11 pates or shares in or receives directly or

12 indirectly any money, profit, property, or

13 benefit through any transaction, loan,

14 grant, commission, contract, or any other

15 act of the Secretary; or

16 ‘‘(4) gives any unauthorized informa17 tion concerning any future action or plan

18 of the Secretary which might affect the

19 value of securities, or having such knowl20 edge invests or speculates, directly or in21 directly, in the securities or property of

22 any company or corporation receiving

23 loans, grants, or other assistance from

24 the Secretary,
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1 shall be fined under title 18, United States

2 Code, imprisoned for not more than 5 years,

3 or both.

4 ‘‘SEC. 609. EMPLOYMENT OF EXPEDITERS AND ADMINIS5 TRATIVE EMPLOYEES.

6 ‘‘No financial assistance shall be extended

7 by the Secretary under this Act to any busi8 ness enterprise unless the owners, partners,

9 or officers of such business enterprise—

10 ‘‘(1) certify to the Secretary the

11 names of any attorneys, agents, and other

12 persons engaged by or on behalf of such

13 business enterprise for the purpose of ex14 pediting applications made to the Sec15 retary for assistance of any sort, under

16 this Act, and the fees paid or to be paid

17 to any such person; and

18 ‘‘(2) execute an agreement binding

19 such business enterprise, for a period of

20 2 years after such assistance is rendered

21 by the Secretary to such business enter22 prise, to refrain from employing, ten23 dering any office or employment to, or re24 taining for professional services, any per25 son who, on the date such assistance or
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1 any part thereof was rendered, or within

2 the 1-year period ending on such date,

3 shall have served as an officer, attorney,

4 agent, or employee, occupying a position

5 or engaging in activities which the Sec6 retary determines involves discretion

7 with respect to the granting of assistance

8 under this Act.

9 ‘‘SEC. 610. LABOR STANDARDS; RATE OF WAGES; ASSUR10 ANCE OF MAINTENANCE OF STANDARDS; EN11 FORCEMENT.

12 ‘‘All laborers and mechanics employed by

13 contractors or subcontractors on projects as14 sisted by the Secretary under this Act shall be

15 paid wages at rates not less than those pre16 vailing on similar construction in the locality

17 as determined by the Secretary of Labor in ac18 cordance with the Act of March 3, 1931,

19 known as the Davis-Bacon Act. The Secretary

20 shall not extend any financial assistance

21 under this Act for such a project without first

22 obtaining adequate assurance that these

23 labor standards will be maintained upon the

24 construction work. The Secretary of Labor

25 shall have, with respect to the labor stand-
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1 ards specified in this provision, the authority

2 and functions set forth in Reorganization

3 Plan Numbered 14 of 1950 and section 2 of the

4 Act of June 13, 1934 (Chapter 482; 48 Stat.

5 948).

6 ‘‘SEC. 611. MAINTENANCE OF RECORDS OF APPROVED AP7 PLICATIONS FOR FINANCIAL ASSISTANCE;

8 PUBLIC INSPECTION.

9 ‘‘(a) MAINTENANCE OF RECORD REQUIRED.—

10 The Secretary shall maintain as a permanent

11 part of the records of the Department of Com12 merce a list of applications approved for fi13 nancial assistance under this Act, which shall

14 be kept available for public inspection during

15 the regular business hours of the Department

16 of Commerce.

17 ‘‘(b) POSTING TO LIST.—The following infor18 mation shall be posted in such list as soon as

19 each application is approved:

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

21 the case of corporate applications, the

22 names of the officers and directors of the

23 corporation.
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1 ‘‘(2) The amount and duration of the

2 loan or grant for which application is

3 made.

4 ‘‘(3) The purposes for which the pro5 ceeds of the loan or grant are to be used.

6 ‘‘(4) A general description of the secu7 rity offered in the case of a loan.

8 ‘‘SEC. 612. RECORDS AND AUDIT.

9 ‘‘(a) RECORDKEEPING AND DISCLOSURE RE10 QUIREMENTS.—Each recipient of assistance

11 under this Act shall keep such records as the

12 Secretary shall prescribe, including records

13 which fully disclose the amount and the dis14 position by such recipient of the proceeds of

15 such assistance, the total cost of the project

16 or undertaking in connection with which

17 such assistance is given or used, and the

18 amount and nature of that portion of the cost

19 of the project or undertaking supplied by

20 other sources, and such other records as will

21 facilitate an effective audit.

22 ‘‘(b) ACCESS TO BOOKS FOR EXAMINATION

23 AND AUDIT.—The Secretary and the Comptrol24 ler General of the United States, or any of

25 their duly authorized representatives, shall
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1 have access for the purpose of audit and ex2 amination to any books, documents, papers,

3 and records of the recipient that are perti4 nent to assistance received under this Act.

5 ‘‘SEC. 613. PROHIBITION AGAINST A STATUTORY CON6 STRUCTION WHICH MIGHT CAUSE DIMINU7 TION IN OTHER FEDERAL ASSISTANCE.

8 ‘‘All financial and technical assistance au9 thorized under this Act shall be in addition to

10 any Federal assistance previously authorized,

11 and no provision hereof shall be construed as

12 authorizing or permitting any reduction or

13 diminution in the proportional amount of

14 Federal assistance to which any State or any

15 other entity eligible under this Act would oth16 erwise be entitled under the provisions of any

17 other Act.

18 ‘‘SEC. 614. ACCEPTANCE OF APPLICANTS’ CERTIFICATIONS.

19 ‘‘The Secretary may accept, when deemed

20 appropriate, the applicants’ certifications to

21 meet the requirements of this Act.
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1 ‘‘TITLE VII—SPECIAL ECONOMIC

2 DEVELOPMENT AND ADJUST3 MENT ASSISTANCE

4 ‘‘Subtitle A—Grants and

5 Adjustment Assistance

6 ‘‘SEC. 701. STATEMENT OF PURPOSE.

7 ‘‘The purpose of this title is to provide

8 special economic development and adjust9 ment assistance programs to help State and

10 local areas meet special needs arising from

11 actual or threatened severe unemployment

12 arising from economic dislocation, including

13 unemployment arising from actions of the

14 Federal Government and from compliance

15 with environmental requirements which re16 move economic activities from a locality, and

17 economic adjustment problems resulting from

18 severe changes in economic conditions (in19 cluding long-term economic deterioration),

20 and to encourage cooperative intergovern21 mental action to prevent or solve economic

22 adjustment problems. Nothing in this title is

23 intended to replace the efforts of the eco24 nomic adjustment program of the Department

25 of Defense.
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1 ‘‘SEC. 702. ELIGIBLE RECIPIENT DEFINED.

2 ‘‘As used in this title, the term ‘eligible re3 cipient’ means an economic development dis4 trict (as defined in section 411), an Indian

5 tribe, a State, a city or other political subdivi6 sion of a State, or a consortium of such politi7 cal subdivisions, or a public or private non8 profit organization or association.

9 ‘‘SEC. 703. GRANTS BY SECRETARY.

10 ‘‘(a) IN GENERAL.—

11 ‘‘(1) DIRECT GRANTS.—The Secretary

12 may make grants directly to any eligible

13 recipient in an area which—

14 ‘‘(A) the Secretary has determined

15 has experienced, or may reasonably

16 be foreseen to be about to experience,

17 a special need to meet an expected

18 rise in unemployment, or other eco19 nomic adjustment problems (includ20 ing those caused by any action or de21 cision of the Federal Government); or

22 ‘‘(B) the Secretary determines has

23 demonstrated long-term economic de24 terioration, to carry out or develop a

25 plan which—
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1 ‘‘(i) meets the requirements of

2 subsection (b); and

3 ‘‘(ii) is approved by the Sec4 retary to use such grants for any

5 of the following:

6 ‘‘(I) Public facilities.

7 ‘‘(II) Public services.

8 ‘‘(III) Business develop9 ment.

10 ‘‘(IV) Industrial retention.

11 ‘‘(V) Planning.

12 ‘‘(VI) Research.

13 ‘‘(VII) Technical assist14 ance.

15 ‘‘(VIII) Administrative ex16 penses.

17 ‘‘(IX) Training.

18 ‘‘(X) Relocation of individ19 uals and businesses.

20 ‘‘(XI) Assistance to busi21 ness through trade adjust22 ment assistance centers.

23 ‘‘(XII) Other assistance

24 which demonstrably furthers

25 the economic development
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1 and adjustment objectives of

2 this title.

3 ‘‘(2) DIRECT EXPENDITURE OR REDIS4 TRIBUTION BY RECIPIENT.—Grants under

5 paragraph (1) may be used in direct ex6 penditures by the eligible recipient or

7 through redistribution by it to public and

8 private entities in grants, loans, loan

9 guarantees, payments to reduce interest

10 on loan guarantees, or other appropriate

11 assistance, but no grant shall be made by

12 an eligible recipient to a private profit13 making entity.

14 ‘‘(3) RESEARCH AND TECHNICAL ASSIST15 ANCE.—The Secretary may conduct re16 search or provide technical assistance for

17 purposes of this title directly through

18 members of the Secretary’s staff or

19 through the payment of funds to other

20 departments or agencies of the Federal

21 Government.

22 ‘‘(b) CRITERIA FOR APPROVAL OF PLAN.—No

23 plan shall be approved by the Secretary

24 under this section unless the plan—
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1 ‘‘(1) identifies each economic develop2 ment and adjustment need of the area for

3 which assistance is sought under this

4 title;

5 ‘‘(2) describes each activity planned

6 to meet each such need;

7 ‘‘(3) explains the details of the method

8 of carrying out each such planned activ9 ity;

10 ‘‘(4) contains assurances satisfactory

11 to the Secretary that the proceeds from

12 the repayment of loans made by the eligi13 ble recipient with funds granted under

14 this title will be used for economic devel15 opment or adjustment; and

16 ‘‘(5) be in such form and contain such

17 additional information as the Secretary

18 shall prescribe.

19 ‘‘(c) COORDINATION OF ACTIVITIES WITH

20 OTHER FEDERAL PROGRAMS, REGIONAL COMMIS21 SIONS, STATES, ETC.—The Secretary to the ex22 tent practicable shall coordinate the activities

23 relating to the requirements for plans and

24 making grants, loans, and loan guarantees

25 under this title with other Federal programs,
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1 States, economic development districts and

2 other appropriate planning and development

3 organizations.

4 ‘‘(d) PRIORITIZING NEEDS AND SELECTION

5 CRITERIA FOR ASSISTANCE.—

6 ‘‘(1) IN GENERAL.—The Secretary shall

7 prescribe regulations and procedures to

8 carry out this title which establish a

9 method to prioritize applications and

10 award funding in a manner which takes

11 into consideration the relative needs of

12 eligible areas and the capacity of the ap13 plicant organizations.

14 ‘‘(2) FACTORS TO BE CONSIDERED.—In

15 prescribing such regulations and proce16 dures the Secretary shall consider among

17 other relevant factors—

18 ‘‘(A) the severity of the current

19 and anticipated rates of unemploy20 ment in the eligible areas and the

21 current and anticipated duration of

22 such unemployment;

23 ‘‘(B) the income levels of families

24 and the extent of underemployment

25 in eligible areas;
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1 ‘‘(C) the economic development

2 record of the applicant organization,

3 including the organization’s prior ex4 perience and its capacity to leverage

5 or attract funding from the private

6 sector;

7 ‘‘(D) the ability of the applicant

8 organization to raise funds necessary

9 to meet any matching requirements

10 applicable to the assistance provided

11 under this title;

12 ‘‘(E) how the applicant organiza13 tion will coordinate or create part14 nerships with other organizations in

15 the community and the extent to

16 which the applicant will increase the

17 resources for economic development

18 activities through such coordination

19 or by forging partnerships with pri20 vate financial institutions;

21 ‘‘(F) the applicant organization’s

22 record in targeting assistance to eco23 nomically distressed communities;

24 and
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1 ‘‘(G) the unique development

2 needs of urban areas with popu3 lations of 400,000 or less.

4 ‘‘(e) BASE CLOSINGS AND REALIGNMENTS.—

5 ‘‘(1) LOCATION OF PROJECTS.—In any

6 case in which the Secretary determines a

7 need for assistance under subsection (a)

8 due to the closure or realignment of a

9 military installation, the Secretary may

10 make such assistance available for

11 projects to be carried out on the military

12 installation and for projects to be carried

13 out in communities adversely affected by

14 the closure or realignment.

15 ‘‘(2) INTEREST IN PROPERTY.—Notwith16 standing any other provision of law, the

17 Secretary may provide to an eligible re18 cipient any assistance available under

19 this Act for a project to be carried out on

20 a military installation that is closed or

21 scheduled for closure or realignment

22 without requiring that the eligible recipi23 ent have title to the property or a lease24 hold interest in the property for any

25 specified term.
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1 ‘‘SEC. 704. ANNUAL REPORTS BY RECIPIENT AND SEC2 RETARY.

3 ‘‘(a) RECIPIENT’S REPORT.—Each eligible

4 recipient which receives assistance under

5 this title shall annually during the period

6 such assistance continues make a full and

7 complete report to the Secretary, in such

8 manner as the Secretary shall prescribe, and

9 such report shall contain an evaluation of the

10 effectiveness of the economic assistance pro11 vided under this title in meeting the need it

12 was designed to alleviate and the purposes of

13 this title.

14 ‘‘(b) SECRETARY’S REPORT.—The Secretary

15 shall include in the annual report pursuant to

16 section 3217 of this title a consolidated report

17 with his recommendations, if any, on the as18 sistance authorized under this title, in a form

19 which he deems appropriate.

20 ‘‘SEC. 705. AUTHORIZATION OF APPROPRIATIONS.

21 ‘‘(a) IN GENERAL.—There is authorized to

22 be appropriated to carry out this title

23 $115,542,000 for fiscal year 1994 and

24 $124,800,000 for fiscal year 1995. Such sums

25 shall remain available until expended.
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1 ‘‘(b) SET-ASIDE FOR DEFENSE CONVERSION

2 ACTIVITIES.—Of amounts appropriated pursu3 ant to subsection (a) for fiscal year 1994, not

4 less than $80,000,000 shall be available for

5 purposes of assisting eligible recipients in ac6 tivities related to defense conversion.

7 ‘‘(c) ADDITIONAL AMOUNTS.—In addition to

8 the appropriations authorized by subsection

9 (a), there is authorized to be appropriated to

10 carry out this title such sums as may be nec11 essary to provide assistance for defense con12 version activities and to provide assistance in

13 the case of a natural disaster. Such sums shall

14 remain available until expended.

15 ‘‘Subtitle B—Economic

16 Development Financing

17 ‘‘SEC. 711. GUARANTEED LOAN PROGRAM.

18 ‘‘(a) IN GENERAL.—To the extent the Sec19 retary deems it appropriate to carry out the

20 purposes of this title, the Secretary may guar21 antee loans made to private borrowers by pri22 vate lending institutions, community develop23 ment financial institutions, and other lenders

24 as the Secretary considers appropriate, ex25 cept that the Secretary may guarantee loans
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1 of less than $750,000 only if the borrower is

2 not eligible for a loan guarantee under the

3 Small Business Act.

4 ‘‘(b) ELIGIBLE ACTIVITIES.—Activities for

5 which loans may be guaranteed under this

6 title include the development of land and fa7 cilities (including machinery and equipment)

8 for industrial or commercial usage (such as

9 the construction of new buildings and the re10 habilitation of abandoned or unoccupied

11 buildings, and alterations, conversion, or en12 largement of existing buildings), or for the

13 provision of working capital.

14 ‘‘(c) TERMS AND CONDITIONS.—

15 ‘‘(1) IN GENERAL.—The Secretary may

16 make such guarantees upon application

17 of the lenders and upon such terms and

18 conditions as the Secretary may pre19 scribe, except that no such guarantee

20 shall at any time exceed 90 percent of the

21 amount of the outstanding unpaid bal22 ance of such loans.

23 ‘‘(2) PRESUMPTION OF VALIDITY.—Guar24 antees under paragraph (1) shall be con25 clusive evidence that the guarantee has
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1 been properly obtained, that the underly2 ing loan qualifies for such guarantee, and

3 that, but for fraud or material misrepre4 sentation by the holder, such guarantee

5 will be presumed to be valid, legal, and

6 enforceable.

7 ‘‘(3) FULL FAITH AND CREDIT OF U.S.—

8 Guarantees under paragraph (1) shall

9 have the full faith and credit of the Unit10 ed States Government.

11 ‘‘(4) LENDER RESPONSIBILITIES.—No

12 guarantee may be provided unless the

13 lender is responsible and makes adequate

14 provision for servicing the loan on rea15 sonable terms and for protecting the fi16 nancial interest of the United States.

17 ‘‘(5) PROHIBITION ON CERTAIN LOAN

18 GUARANTEES.—No loan may be guaranteed

19 if the proceeds of such loan are excluded

20 from gross income for the purposes of

21 Chapter 1 of the Internal Revenue Code

22 of 1986 or if the guarantee provides suffi23 cient collateral or security, as determined

24 by the Secretary, for other obligations

25 the income from which is so excluded.
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1 ‘‘(d) PREFERRED LENDER PREFERENCE.—To

2 the extent feasible, the Secretary shall con3 duct the guarantee program established

4 under this section on a preferred lender basis

5 and authorize lenders, in accordance with

6 agreements entered into between the Sec7 retary and such lenders, to take such actions

8 on the Secretary’s behalf as the Secretary

9 deems appropriate, including the determina10 tion of eligibility and creditworthiness and

11 loan monitoring, collection and liquidation.

12 ‘‘SEC. 712. PILOT EQUITY FINANCE PROGRAM.

13 ‘‘(a) IN GENERAL.—In order to study the

14 feasibility and desirability of a program of eq15 uity financing, the Secretary shall establish a

16 5-year pilot program under which the Sec17 retary may, either directly or through grants

18 made to eligible recipients (as defined in sec19 tion 702), purchase or commit to purchase

20 nonvoting equity instruments, with or with21 out equity warrants, or commit to guarantee

22 the payment of up to 50 percent of the re23 demption price of, and dividends on, such eq24 uity instruments of private United States

25 businesses or nonprofit organizations and as-
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1 sociations for the purpose of providing cap2 ital for any project which is consistent with

3 the provisions of this title.

4 ‘‘(b) ESTABLISHMENT OF FUND.—For pur5 poses of conducting the pilot program pro6 vided under subsection (a), the Secretary

7 shall establish an Equity Investment Revolv8 ing Fund to carry out the purposes of this sec9 tion.

10 ‘‘(c) DISPOSAL OF EQUITY INSTRUMENTS.—

11 The Secretary shall endeavor to dispose of

12 any equity instruments purchased or guaran13 teed under this section within the 10-year pe14 riod beginning on the date of the acquisition

15 of such interest.

16 ‘‘(d) USE OF PAYMENTS.—

17 ‘‘(1) USE OF PAYMENTS TO THE SEC18 RETARY.—Amounts received by the Sec19 retary from the payment of dividends

20 and the redemption of equity instruments

21 shall be deposited in the Equity Invest22 ment Revolving Fund and shall be avail23 able to make or guarantee additional eq24 uity investments consistent with this sec25 tion.
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1 ‘‘(2) USE OF PAYMENTS TO ELIGIBLE RE2 CIPIENT INTERMEDIARIES.—Of the amounts

3 received by eligible recipient

4 intermediaries from the payment of divi5 dends and the redemption of equity in6 struments—

7 ‘‘(A) up to 50 percent may be re8 tained by such organizations to make

9 or guarantee additional equity invest10 ments consistent with this section;

11 and

12 ‘‘(B) no less than 50 percent shall

13 be returned to the Secretary to be de14 posited into the Fund established

15 under subsection (b) to make or guar16 antee additional equity investments

17 consistent with this section.

18 ‘‘(e) INVESTMENT OF EXCESS FUNDS.—If the

19 Secretary determines that the amount of

20 money in the Fund exceeds the current re21 quirements of the Fund, the Secretary may di22 rect the Secretary of the Treasury to invest

23 such amounts in obligations of the United

24 States, in obligations guaranteed by the

25 United States Government, or in such other
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1 obligations or securities of the United States

2 as the Secretary of the Treasury deems appro3 priate.

4 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—

5 Of the funds authorized to be appropriated

6 under section 705, there are authorized to be

7 appropriated $10,000,000 for fiscal year 1995,

8 to carry out this section. Such sums shall re9 main available until expended.

10 ‘‘SEC. 713. TREATMENT OF REVOLVING LOAN FUNDS.

11 ‘‘(a) IN GENERAL.—Amounts from grants

12 under this title which are used by an eligible

13 recipient to establish a revolving loan fund

14 shall not be treated, except as provided by

15 subsection (b), as amounts derived from Fed16 eral funds for the purposes of any Federal law

17 after such amounts are loaned from the fund

18 to a borrower and repaid to the fund.

19 ‘‘(b) EXCEPTION.—Amounts described in

20 subsection (a) which are loaned from a revolv21 ing loan fund to a borrower and repaid to the

22 fund—

23 ‘‘(1) may only be used for projects

24 which are consistent with the purposes of

25 this title; and
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1 ‘‘(2) shall be subject to the financial

2 management, accounting, reporting, and

3 auditing standards which were originally

4 applicable to such amounts.

5 ‘‘(c) REGULATIONS.—Not later than 30 days

6 after the enactment of this section, the Sec7 retary shall issue regulations to carry out sub8 section (a).

9 ‘‘(d) PUBLIC REVIEW AND COMMENT.—Before

10 issuing any final guidelines or administrative

11 manuals governing the operation of revolving

12 loan funds established using amounts from

13 grants under this title, the Secretary shall

14 provide reasonable opportunity for public re15 view of and comment on such guidelines and

16 administrative manuals.

17 ‘‘SEC. 714. SALE OF FINANCIAL INSTRUMENTS IN REVOLV18 ING LOAN FUNDS.

19 ‘‘Any loan, loan guarantee, equity, or

20 other financial instrument in the portfolio of

21 a Revolving Loan Fund may be sold, at the

22 discretion of the grantee of the Fund, to a

23 third party provided that the proceeds of the

24 sale—
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1 ‘‘(1) shall be deposited in the Fund

2 and only used for projects which are con3 sistent with the purposes of this title, and

4 ‘‘(2) shall be subject to the financial

5 management, accounting, reporting, and

6 auditing standards which were originally

7 applicable to the financial instrument.

8 ‘‘SEC. 715. ECONOMIC DEVELOPMENT CHALLENGE GRANTS

9 DEMONSTRATION PROJECT.

10 ‘‘(a) IN GENERAL.—In order to study the

11 feasibility and desirability of using challenge

12 grants to generate new pools of investment

13 capital in areas suffering from long-term eco14 nomic deterioration, the Secretary shall es15 tablish a multiyear demonstration project

16 under which the Secretary shall provide

17 grants to selected recipients, to be matched

18 by the recipients 1 dollar for every 2 Federal

19 dollars, for the purpose of establishing sub20 stantially leveraged financing for business de21 velopment and other innovative economic de22 velopment efforts.

23 ‘‘(b) FEDERAL AND COMMUNITY CONTRIBU24 TIONS.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall

2 grant 2 dollars for every 1 dollar raised

3 by each selected recipient, up to

4 $10,000,000 per year per selected recipi5 ent.

6 ‘‘(2) USE OF OTHER FEDERAL FUNDS IN

7 CONJUNCTION WITH CHALLENGE GRANT.—

8 Funds from other Federal programs may

9 be used in conjunction or merged with

10 the challenge grant and matching funds

11 to form a larger investment fund.

12 ‘‘(c) ESTABLISHMENT AND USE OF FUNDS.—

13 ‘‘(1) ESTABLISHMENT.—For purposes of

14 this Act, an investment fund established

15 by a selected recipient consists of—

16 ‘‘(A) the economic development

17 challenge grant received by the se18 lected recipient;

19 ‘‘(B) the matching funds required

20 under subsection (b); and

21 ‘‘(C) any such other funds that

22 may be derived from other sources,

23 including other Federal funds.

24 ‘‘(2) USE.—An investment fund shall

25 be used by the selected recipients for the
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1 purposes of generating long-term sustain2 able economic development and job

3 growth in areas identified by the selected

4 recipients, pursuant to the requirements

5 and limitations of eligibility and perform6 ance in subsections (d), (e), (f), (g) and

7 (h).

8 ‘‘(d) ELIGIBLE RECIPIENTS.—The Secretary

9 shall make grants to any eligible recipients

10 for use in an area which must meet 1 or more

11 of the following criteria:

12 ‘‘(1) The area has a per capita income

13 of 80 percent or less of the national aver14 age.

15 ‘‘(2) The area has an unemployment

16 rate 1 percent above the national average

17 percentage for the more recent 24-month

18 period for which statistics are available.

19 ‘‘(3) The area has been determined by

20 the Secretary to have at least 1 of the fol21 lowing conditions:

22 ‘‘(A) A large concentration of low23 income persons (as defined in section

24 401(e)).
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1 ‘‘(B) Areas having substantial out2 migration.

3 ‘‘(C) Substantial underemploy4 ment or unemployment.

5 An eligible recipient may include any local

6 government or group of local governments,

7 economic development district, Indian tribe,

8 public or private nonprofit organization or

9 association, community-based organization,

10 business or worker organization, or any con11 sortium of such entities, that is able to dem12 onstrate to the satisfaction of the Secretary

13 that they can carry out the objectives of this

14 program pursuant to the criteria and require15 ments established in this section.

16 ‘‘(e) SELECTION OF DEMONSTRATION

17 PROJECTS.—

18 ‘‘(1) IN GENERAL.—The Secretary shall

19 make grants to selected recipients from 4

20 to 5 areas suffering from long-term eco21 nomic distress.

22 ‘‘(2) DISTRIBUTION.—At least 1 selected

23 recipient shall be from a rural area, 1

24 from a declining industrial area, 1 from

25 an area that is a combination of rural,
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1 small metropolitan, and suburban com2 munities, and 1 from an urban area with

3 excessive unemployment, concentrated

4 poverty, and high crime.

5 ‘‘(3) INDUSTRIAL RETENTION STRATEGY

6 REQUIREMENT.—Of the 4 recipients de7 scribed in paragraph (2), at least 1 of the

8 projects selected shall include an indus9 trial retention strategy.

10 ‘‘(f) GRANT SELECTION PROCESS.—

11 ‘‘(1) NATIONAL COMPETITION.—The Sec12 retary shall select recipients of the chal13 lenge grants through a nationally com14 petitive process.

15 ‘‘(2) ELIGIBILITY REQUIREMENT.—Each

16 selected recipient must submit a com17 prehensive strategy for generating sus18 tained, long-term economic growth and

19 for both preserving and creating high20 quality jobs.

21 ‘‘(3) PREFERENCE FOR CERTAIN

22 PROJECTS.—The Secretary shall give pref23 erence to eligible recipients which—

24 ‘‘(A) utilize the Federal grant plus

25 matching funds to further leverage
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1 private and public capital to create

2 an even larger economic development

3 investment fund;

4 ‘‘(B) represent consortia or part5 nerships comprised of at least 2 or

6 more of the groups identified in sub7 section (d); or

8 ‘‘(C) intend to use their invest9 ment funds to finance or leverage fi10 nancing for new business develop11 ment and startups, industrial serv12 ices, industrial modernization of

13 local-based firms or industrial reten14 tion (including employee stock own15 ership plans and worker or manage16 ment buyouts), or other economic de17 velopment strategies that illustrate

18 ‘best practices’ in economic develop19 ment.

20 ‘‘(4) BROAD-BASED PARTICIPATION TO BE

21 ENCOURAGED.—The Secretary shall strong22 ly encourage broad-based participation of

23 public and private entities within an area

24 in the development and implementation
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1 of the challenge grant proposals submit2 ted by eligible recipients.

3 ‘‘(g) LIMITATIONS.—The investment funds

4 established by the selected recipients shall—

5 ‘‘(1) not be used to permit units of

6 State and local government to offer tax

7 inducements to attract businesses to lo8 cate in the area; and

9 ‘‘(2) be subject to the same conditions

10 described in section 202(b)(1).

11 No area may receive an economic develop12 ment challenge grant if it has been designated

13 an empowerment or enterprise community

14 under section 13301 of the Omnibus Budget

15 Reconciliation Act of 1993.

16 ‘‘(h) PERFORMANCE EVALUATIONS; REPORT

17 TO CONGRESS.—

18 ‘‘(1) EVALUATION OF EFFECTIVENESS.—

19 The Secretary shall conduct performance

20 evaluations of the demonstration chal21 lenge grant project to assess the effec22 tiveness of this kind of program in gener23 ating sustained economic growth and job

24 creation in areas of the Nation experienc25 ing long-term economic distress.
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1 ‘‘(2) REPORT.—Based on the evalua2 tions conducted pursuant to paragraph

3 (1), the Secretary shall submit an annual

4 report to Congress with recommenda5 tions for expansion, modification or ter6 mination of the program.

7 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—

8 Of the funds authorized to be appropriated

9 under section 705, there are authorized to be

10 appropriated $30,000,000 for fiscal year 1995

11 to carry out this section. Such sums shall re12 main available until expended.

13 ‘‘Subtitle C—Business Development

14 Assistance

15 ‘‘SEC. 721. FINDINGS, PURPOSES, AND DEFINITIONS.

16 ‘‘(a) FINDINGS.—The Congress hereby finds

17 the following:

18 ‘‘(1) Through its support and funding

19 of research and development in this Na20 tion’s Federal agencies, laboratories, and

21 educational institutions, the Federal Gov22 ernment has fostered the creation of

23 thousands of technologies, processes, and

24 other proprietary rights owned, or held
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1 in whole or part, by the Federal Govern2 ment.

3 ‘‘(2) If commercialized, these tech4 nologies, processes, and other propri5 etary rights owned, or held in whole or

6 part, by the Federal Government hold the

7 potential to be a significant tool to foster

8 economic development and to create sig9 nificant numbers of new jobs at good

10 wages for American workers.

11 ‘‘(3) The Federal Government has not

12 been sufficiently effective in encouraging

13 the commercialization of these tech14 nologies, processes, and other propri15 etary rights owned, or held in whole or

16 part, by the Federal Government.

17 ‘‘(4) The Federal Government does

18 not have an effective mechanism to en19 courage the commercialization of these

20 technologies, processes, and other propri21 etary rights by businesses located in

22 parts of the Nation in need of economic

23 development.

24 ‘‘(5) Throughout the Federal Govern25 ment, there is no single inventory or
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1 source of information on technologies,

2 processes, and other proprietary rights

3 owned, or held in whole or part, by the

4 Federal Government.

5 ‘‘(6) Information on technologies,

6 processes, and other proprietary rights

7 owned, or held in whole or part, by the

8 Federal Government is not standardized

9 in form or content, is separately main10 tained by numerous Federal agencies and

11 departments, and is not easily accessible

12 by the public.

13 ‘‘(7) Businesses and entrepreneurs in

14 areas in need of economic development

15 are largely unaware of the existence of

16 these technologies, processes, and other

17 proprietary rights and largely unaware

18 of the possibilities for obtaining the

19 rights to these technologies, processes,

20 and other proprietary rights for the pur21 pose of commercialization.

22 ‘‘(8) It is in the economic interest of

23 the United States to facilitate the private

24 sector commercialization of technologies,

25 processes, and other proprietary rights
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1 by United States businesses located in

2 areas in need of economic development.

3 ‘‘(9) Greater effectiveness will be

4 achieved through the utilization of the

5 private sector corporate structure and

6 profit incentives in facilitating the com7 mercialization of technologies, processes,

8 and other proprietary rights than can

9 reasonably be expected by the Federal

10 Government performing this function.

11 ‘‘(b) PURPOSES.—The purposes of this sub12 title are as follows:

13 ‘‘(1) To provide assistance to private14 sector United States businesses, located

15 in areas in need of economic develop16 ment, to commercialize technologies,

17 processes, and other proprietary rights

18 owned, or held in whole or part, by the

19 Federal Government.

20 ‘‘(2) To create new employment op21 portunities by facilitating the commer22 cialization of technologies, processes, and

23 other proprietary rights by United States

24 businesses and entrepreneurs in areas in

25 need of economic development.
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1 ‘‘(3) To develop a single, comprehen2 sive data base of information on tech3 nologies, processes, and other propri4 etary rights owned, or held in whole or

5 part, by the Federal Government, which

6 is standardized and easily accessible.

7 ‘‘(4) To heighten the awareness of

8 United States businesses and entre9 preneurs of the availability for commer10 cialization of technologies, processes, and

11 other proprietary rights owned, or held

12 in whole or part, by the Federal Govern13 ment.

14 ‘‘(c) DEFINITIONS.—For purposes of this

15 subtitle, the following definitions shall apply:

16 ‘‘(1) SECRETARY.—The term ‘Secretary’

17 means the Secretary of Commerce.

18 ‘‘(2) CORPORATION.—The term ‘Cor19 poration’ means the Business Develop20 ment and Technology Commercialization

21 Corporation established under this sub22 title.

23 ‘‘(3) BOARD.—The term ‘Board’ means

24 the Board of Directors of the Business
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1 Development and Technology Commer2 cialization Corporation.

3 ‘‘(4) QUALIFIED CONCERN.—The term

4 ‘qualified concern’ means a United

5 States-based consortium, a private United

6 States business, or an educational institu7 tion participating in a joint project with

8 1 or more private United States busi9 nesses, for the development and commer10 cialization of technologies, processes, and

11 other proprietary rights—

12 ‘‘(A) owned or held in whole or

13 part by Federal departments, agen14 cies, or government-controlled cor15 porations;

16 ‘‘(B) developed in Federal labora17 tories;

18 ‘‘(C) arising in the course of feder19 ally funded research at educational

20 institutions, other units of govern21 ment, or with private concerns; or

22 ‘‘(D) which are made available to

23 the Federal Government by private

24 concerns.
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1 ‘‘SEC. 722. CONSOLIDATION OF INFORMATION ON TECH2 NOLOGIES.

3 ‘‘(a) ESTABLISHMENT OF DATA.—The Sec4 retary shall establish and maintain an inte5 grated, comprehensive data base describing

6 all technologies, processes, and other propri7 etary rights owned, or held in whole or part,

8 by the Federal Government, or which origi9 nated in the course of federally funded re10 search in which the Federal Government has

11 an interest.

12 ‘‘(b) STANDARDIZATION AND ACCESSIBILITY

13 OF INFORMATION.—The Secretary shall take

14 such steps as are necessary to ensure that the

15 information contained in the data base estab16 lished under subsection (a) is in a standard17 ized form, is accessible and usable in a man18 ner as simple and easy to use as possible, rec19 ognizing the needs of small- and medium20 sized businesses.

21 ‘‘(c) RESPONSIBILITIES.—In carrying out

22 this section, the Secretary shall—

23 ‘‘(1) consult with and, to the extent

24 practicable, utilize the capabilities of

25 other executive agencies, as appropriate,
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1 to ensure the efficient and effective im2 plementation of this section; and

3 ‘‘(2) explore, with other executive

4 agencies, ways to avoid duplication of ef5 fort by consolidating the administration

6 of the program established by this sec7 tion with any other similar Federal pro8 gram, and as part of such consolidation

9 may delegate administrative functions, as

10 necessary and appropriate, to another ex11 ecutive agency.

12 ‘‘(d) OTHER FEDERAL AGENCIES.—Other ex13 ecutive agencies shall provide such informa14 tion, and in such form, as determined by the

15 Secretary and shall cooperate with the Sec16 retary in carrying out this section.

17 ‘‘(e) ACCESS TO THE DATA BASE.—

18 ‘‘(1) ACCESS TO THE DATA BASE BY THE

19 CORPORATION.—Except as provided in

20 paragraph (3), the Secretary shall pro21 vide unlimited access to the data base es22 tablished under this section to the Busi23 ness Development and Technology Com24 mercialization Corporation established

25 under this part, without fee, to assist the
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1 Corporation in meeting its responsibil2 ities under this part.

3 ‘‘(2) ACCESS TO THE DATA BASE BY THE

4 PUBLIC.—Except as provided in paragraph

5 (3), the Secretary shall, by regulation, de6 velop and implement procedures provid7 ing for access to the data base estab8 lished under this section to members of

9 the general public.

10 ‘‘(3) RESTRICTIONS.—If, in consultation

11 with the heads of other executive agen12 cies, the Secretary determines that access

13 by the Corporation or any other person

14 to information contained in the data base

15 established under this section would—

16 ‘‘(A) threaten national security;

17 ‘‘(B) violate the proprietary rights

18 of any private interest; or

19 ‘‘(C) be otherwise inappropriate,

20 the Secretary shall take such steps as the

21 Secretary may determine to be appro22 priate to limit access to the information

23 in the data base described in subpara24 graph (A), (B), or (C) to the Corporation

25 or any other person.
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1 ‘‘(f) REVIEW OF CURRENT FEDERAL TECH2 NOLOGY TRANSFER EFFORTS.—

3 ‘‘(1) IN GENERAL.—The Secretary shall

4 conduct a review of all technology trans5 fer and commercialization activities with6 in all Federal departments, agencies, and

7 laboratories, or which are otherwise sup8 ported by Federal funds. This review

9 shall identify those activities which may

10 overlap or duplicate the technology

11 transfer and commercialization activities

12 provided for under this subtitle.

13 ‘‘(2) REPORTS.—Before the end of the

14 1-year period beginning on the date of

15 the enactment of the Economic Develop16 ment Financing Act of 1994, the Secretary

17 shall issue a report to the Congress de18 scribing in detail—

19 ‘‘(A) the findings of the review di20 rected under paragraph (1),

21 ‘‘(B) the funding levels of each ex22 isting Federal technology transfer

23 and commercialization activities, and

24 ‘‘(C) recommendations for the

25 modification or elimination of any ex-
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1 isting Federal technology transfer

2 and commercialization activities

3 which he finds to be duplicative of

4 the activities provided for under this

5 subtitle.

6 ‘‘SEC. 723. BUSINESS DEVELOPMENT AND TECHNOLOGY

7 COMMERCIALIZATION CORPORATION.

8 ‘‘(a) ESTABLISHMENT OF CORPORATION.—

9 ‘‘(1) IN GENERAL.—There shall be es10 tablished a Business Development and

11 Technology Commercialization Corpora12 tion (hereafter in this section referred to

13 as the ‘Corporation’).

14 ‘‘(2) PURPOSE.—The Corporation shall

15 be operated for the purpose of fostering

16 economic growth, assisting in the cre17 ation of new employment opportunities,

18 and strengthening the industrial base of

19 the United States by providing credit for

20 businesses and by facilitating the trans21 fer and commercialization of tech22 nologies, processes, and other propri23 etary rights—

24 ‘‘(A) owned or held in whole or

25 part by Federal departments, agen-
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1 cies, or government controlled cor2 porations;

3 ‘‘(B) developed in Federal labora4 tories;

5 ‘‘(C) arising in the course of feder6 ally funded research at educational

7 institutions, other units of govern8 ment, or with private concerns; and

9 ‘‘(D) which are made available by

10 private concerns.

11 ‘‘(3) CORPORATION NOT AN ESTABLISH12 MENT OF THE UNITED STATES.—The Cor13 poration shall not be an agency or estab14 lishment of the United States.

15 ‘‘(b) PROCESS OF ORGANIZATION.—

16 ‘‘(1) INCORPORATION.—

17 ‘‘(A) IN GENERAL.—The Secretary

18 of Commerce, the Secretary of Labor,

19 and the Administrator of the Small

20 Business Administration shall serve

21 as the incorporators of the Business

22 Development and Technology Com23 mercialization Corporation and as

24 the initial members of the Board of

25 Directors established under sub-
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1 section (c)(1) until their successors

2 are elected and qualified.

3 ‘‘(B) NECESSARY ACTION AUTHOR4 IZED.—The incorporators referred to

5 in subparagraph (A) shall take such

6 other actions as may be necessary to

7 establish the Corporation, including

8 the filing of articles of incorporation.

9 ‘‘(2) OWNERSHIP OF THE CORPORA10 TION.—

11 ‘‘(A) RETENTION OF FEDERAL GOV12 ERNMENT INTEREST.—The Federal Gov13 ernment shall retain a 60 percent

14 nonvoting equity ownership of the

15 Corporation, except as otherwise pro16 vided under this subtitle.

17 ‘‘(B) SOLICITATION OF PROPOSALS

18 FOR EQUITY INVESTMENT AND MANAGE19 MENT.—Before the end of the 6-month

20 period beginning on the date of the

21 enactment of the Economic Develop22 ment Financing Act of 1994, the Sec23 retary of Commerce shall solicit pro24 posals for the sale of the remaining

25 40 percent of the equity ownership in
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1 the Corporation to a United States

2 private entity or consortium which

3 will assume the management and op4 eration of the Corporation.

5 ‘‘(C) DEADLINE FOR TRANSFER.—The

6 sale of the equity ownership interests

7 pursuant to paragraph (3) shall be

8 completed before the end of the 6-

9 month period beginning on the date

10 of the enactment of the Economic De11 velopment Financing Act of 1994.

12 ‘‘(D) SUBSEQUENT STOCK OFFER13 ING.—Any subsequent stock offering

14 in the Corporation will be managed

15 in such a manner that 60 percent of

16 such offering is conveyed as

17 nonvoting equity ownership, without

18 cost, to the Federal Government.

19 ‘‘(3) SELECTION CRITERIA AND PROCE20 DURES FOR THE SALE OF 40 PERCENT OF THE

21 EQUITY IN THE CORPORATION.—

22 ‘‘(A) IN GENERAL.—The President,

23 in consultation with the Secretary of

24 Commerce, shall make the final selec25 tion of a proposal for the sale of 40
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1 percent of the equity in the Corpora2 tion, as provided under this sub3 section.

4 ‘‘(B) CRITERIA FOR SELECTING A

5 PROPOSAL TO RECOMMEND TO THE

6 PRESIDENT.—In selecting a proposal to

7 recommend to the President for the

8 sale of 40 percent of the equity in the

9 Corporation, as described in subpara10 graph (A), the Secretary of Commerce

11 shall take into consideration the fol12 lowing factors—

13 ‘‘(i) the quality of the oper14 ational plan;

15 ‘‘(ii) the soundness of the fi16 nancing of the organization and

17 of the operational plan;

18 ‘‘(iii) the qualifications of, and

19 the diversity of talents and skills

20 represented by, the submitters of

21 the proposal, including the extent

22 to which a combination of organi23 zations is submitting a joint pro24 posal;
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1 ‘‘(iv) whether a State govern2 ment, or unit of a State govern3 ment, is participating financially

4 with the organization submitting

5 a proposal;

6 ‘‘(v) the intentions of the sub7 mitters of the proposal to locate

8 the headquarters of the Corpora9 tion in an area which is not lo10 cated in the 50 largest Metropoli11 tan Statistical Areas, based on the

12 1990 Census; and

13 ‘‘(vi) such other factors as the

14 incorporators determine to be ap15 propriate in meeting the objec16 tives of this Act.

17 ‘‘(C) PROCEDURES FOR SELECTING A

18 PROPOSAL TO RECOMMEND TO THE

19 PRESIDENT.—In selecting a proposal to

20 recommend to the President for the

21 sale of 40 percent of the equity in the

22 Corporation, as described in subpara23 graph (A), the Secretary of Commerce

24 shall ensure that in the selection

25 process—
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1 ‘‘(i) not less than 3 proposals

2 are identified as proposals to re3 ceive further consideration, as

4 provided in clauses (ii) and (iii),

5 except that, if fewer than 3 pro6 posals are received, each of them

7 shall receive further consider8 ation;

9 ‘‘(ii) a review procedure is im10 plemented under which the spon11 sors of the proposals identified in

12 clause (i) are provided an oppor13 tunity to make personal presen14 tations of their proposals to the

15 Secretary or the Secretary’s des16 ignee; and

17 ‘‘(iii) individual negotiations

18 for the revision of proposals iden19 tified in clause (i) may be entered

20 into.

21 ‘‘(4) CONVERSION OF NONVOTING EQUITY

22 TO VOTING EQUITY.—Before the solicitation

23 for proposals in accordance with para24 graph (2)(B), the Secretary shall pre25 scribe regulations setting forth the cir-
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1 cumstances under which the Federal

2 Government’s 60 percent nonvoting eq3 uity ownership may be converted into

4 voting equity ownership in order to meet

5 the objectives of this Act or otherwise

6 protect the interests of the American tax7 payers.

8 ‘‘(c) DIRECTORS, OFFICERS, AND EMPLOY9 EES.—

10 ‘‘(1) BOARD OF DIRECTORS.—

11 ‘‘(A) APPOINTMENT AND NUMBER.—

12 The Corporation shall be under the

13 management of a Board of Directors

14 (hereafter in this section referred to

15 as the ‘Board’) consisting of individ16 uals who are citizens of the United

17 States, of whom 1 shall be elected by

18 the Board to serve as chairperson.

19 ‘‘(B) TERM.—The members of the

20 Board shall be elected annually by

21 the stockholders of the Corporation.

22 ‘‘(C) PROHIBITION ON CONFLICTS OF

23 INTEREST.—

24 ‘‘(i) IN GENERAL.—A director

25 may not participate in the delib-
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1 erations on, or vote on, a matter

2 regarding an application, claim,

3 or other matter pending before

4 the Corporation if, to the direc5 tor’s knowledge, the director, the

6 director’s spouse, minor child,

7 parent, sibling, or partner, or any

8 organization, other than the Cor9 poration, in which the director is

10 serving as an officer, director,

11 trustee, partner, or employee, or

12 any person with whom the direc13 tor is negotiating or has any ar14 rangement concerning perspec15 tive employment, has a financial

16 interest in the matter.

17 ‘‘(ii) CONSEQUENCE OF VIOLA18 TION.—A director who violates

19 this subparagraph shall be sub20 ject to removal from the Board,

21 but such a violation shall not im22 pair, nullify, or otherwise affect

23 the validity of any otherwise law24 ful action by the Corporation in

25 which such director participated.
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1 ‘‘(D) COMPENSATION OF THE

2 BOARD.—

3 ‘‘(i) AMOUNT.—The rate of com4 pensation of members of the

5 Board shall be fixed by the stock6 holders of the Corporation.

7 ‘‘(ii) FUNDS.—Funds for such

8 compensation shall be drawn

9 from the capital and earnings of

10 the Corporation.

11 ‘‘(E) BYLAWS.—The Board may

12 adopt and amend bylaws governing

13 the operation of the Corporation in a

14 manner consistent with the provi15 sions of this title and the articles of

16 incorporation of the Corporation.

17 ‘‘(2) OFFICERS AND EMPLOYEES.—

18 ‘‘(A) APPOINTMENT.—The Board

19 shall appoint a chief executive offi20 cer, who shall have the authority to

21 appoint such other officers and em22 ployees as the officer determines to

23 be necessary to carry out the provi24 sions of this section and the functions

25 of the Corporation.
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1 ‘‘(B) PROHIBITION ON CONFLICTS OF

2 INTEREST.—

3 ‘‘(i) IN GENERAL.—An officer or

4 employee may not participate in a

5 matter regarding an application,

6 claim, or other matter pending

7 before the Corporation if, to such

8 person’s knowledge, the person,

9 the person’s spouse, minor child,

10 parent, sibling, or partner, or an

11 organization, other than the Cor12 poration, in which the person is

13 serving as an officer, director,

14 trustee, partner, or employee, or

15 any person with whom the person

16 is negotiating or has any arrange17 ment concerning perspective em18 ployment, has a financial interest

19 in the matter.

20 ‘‘(ii) CONSEQUENCE OF VIOLA21 TION.—An officer or employee who

22 violates this subparagraph shall

23 be subject to termination, but

24 such a violation shall not impair,

25 nullify, or otherwise affect the va-
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1 lidity of any otherwise lawful ac2 tion by the Corporation in which

3 such officer or employee partici4 pated.

5 ‘‘(C) COMPENSATION OF OFFICERS

6 AND EMPLOYEES.—

7 ‘‘(i) IN GENERAL.—Subject to

8 clause (i), the rate of compensa9 tion of the chief executive officer,

10 and all officers and employees, of

11 the Corporation shall be fixed by

12 the Board.

13 ‘‘(ii) DELEGATION TO C.E.O.—At

14 the discretion of the Board, the

15 Board may delegate to the chief

16 executive officer, subject to the

17 provisions of subparagraph (B),

18 the authority to fix the rate of

19 compensation for other officers

20 and employees.

21 ‘‘(D) SOURCE OF FUNDS FOR COM22 PENSATION.—Funds for compensation

23 for the chief executive officer, and for

24 all officers and employees, shall be
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1 drawn from the capital and earnings

2 of the Corporation.

3 ‘‘(E) TENURE.—Officers and em4 ployees shall serve at the pleasure of

5 the Board.

6 ‘‘(d) GENERAL POWERS.—The Corporation

7 shall have the power to do the following:

8 ‘‘(1) Have succession in the name of

9 the Corporation.

10 ‘‘(2) Adopt, alter, and use a corporate

11 seal.

12 ‘‘(3) Sue and be sued in the name of

13 the Corporation.

14 ‘‘(4) Make and carry out contracts.

15 ‘‘(5) Exercise such other incidental

16 powers not inconsistent with this section

17 that are necessary or appropriate to

18 carry out the purposes and functions of

19 the Corporation, including the usual

20 powers conferred upon a corporation by

21 the District of Columbia Business Cor22 poration Act.

23 ‘‘(6) Modify the name of the Corpora24 tion.

25 ‘‘(e) PROMOTION OF TECHNOLOGIES.—
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1 ‘‘(1) MARKETING OF TECHNOLOGIES.—

2 The Corporation shall undertake an ag3 gressive, multifaceted outreach program

4 to increase awareness of the availability

5 of technologies, processes, and other pro6 prietary rights to qualified concerns

7 under this subtitle. This program shall

8 emphasize the use of new information

9 technologies, including the utilization of

10 cable television and the modern elec11 tronic media, and the data base estab12 lished under this subtitle.

13 ‘‘(2) UTILIZATION OF CABLE TELE14 VISION.—

15 ‘‘(A) IN GENERAL.—In implement16 ing the outreach program provided

17 under paragraph (1), the Corporation

18 shall enter into contracts for the es19 tablishment of a cable television net20 work devoted to marketing efforts for

21 the commercialization of tech22 nologies, processes, and other propri23 etary rights—

24 ‘‘(i) owned or held in whole or

25 part by Federal departments,
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1 agencies, or government con2 trolled corporations,

3 ‘‘(ii) developed in Federal lab4 oratories,

5 ‘‘(iii) arising in the course of

6 federally funded research at edu7 cational institutions, other units

8 of government or with private

9 concerns; and

10 ‘‘(iv) which are otherwise

11 made available to the government

12 by private concerns.

13 ‘‘(B) PROMOTIONAL FEES.—Under

14 terms negotiated between the Sec15 retary and the Corporation, the Sec16 retary is authorized to make pay17 ments to the Corporation for pro18 motional fees for the production of

19 segments for broadcast over cable tel20 evision, or other appropriate media,

21 which identify—

22 ‘‘(i) the technologies described

23 in paragraph (A);

24 ‘‘(ii) their potential commer25 cial applications; and
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1 ‘‘(iii) methods available for ob2 taining additional information on

3 the technologies.

4 ‘‘(3) TECHNICAL ASSISTANCE.—

5 ‘‘(A) IN GENERAL.—The Corpora6 tion shall, upon request, provide tech7 nical assistance and services, as ap8 propriate and needed, to qualified

9 concerns under this subtitle.

10 ‘‘(B) FEES.—The Corporation

11 may—

12 ‘‘(i) charge fees for technical

13 assistance and services provided

14 under this section in amounts suf15 ficient to cover the reasonable

16 cost of such assistance and serv17 ices; and

18 ‘‘(ii) waive such fees on a case19 by-case basis.

20 ‘‘(4) OUTREACH TO SPECIFIC AREAS AND

21 SMALL BUSINESSES.—The Corporation shall

22 seek to ensure that qualified concerns

23 and small businesses located in areas de24 termined by the Secretary of Commerce

25 to have a depressed economy or chron-
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1 ically high unemployment are notified of

2 the availability of assistance through the

3 program established under this section

4 and, to the extent practicable, to encour5 age and facilitate the participation of

6 such qualified concerns and small busi7 nesses in such program.

8 ‘‘(f) AUTHORITY TO REPRESENT THE GOVERN9 MENT.—

10 ‘‘(1) IN GENERAL.—In accordance with

11 regulations prescribed by the Secretary,

12 the Corporation shall act as an agent,

13 and represent the interests, of the Fed14 eral Government in facilitating the trans15 fer of technologies, processes, and other

16 proprietary rights to qualified concerns

17 under this Act.

18 ‘‘(2) RIGHTS OF QUALIFIED CONCERNS.—

19 In accordance with regulations promul20 gated by the Secretary, the Corporation

21 is authorized to convey, to qualified con22 cerns, under terms and conditions to be

23 negotiated between the Corporations and

24 qualified concerns, such rights which

25 may be necessary and appropriate to fa-
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1 cilitate the commercialization of tech2 nologies, processes, and other propri3 etary rights as provided under this Act.

4 ‘‘(3) MINIMUM RIGHTS OF THE FEDERAL

5 GOVERNMENT.—In the conveyance of

6 rights to qualified concerns as provided

7 for under paragraph (2), the Corporation

8 shall ensure the following:

9 ‘‘(A) The conveyance agreement

10 contains language providing for the

11 right of the Corporation to revoke the

12 rights provided under paragraph (2)

13 if—

14 ‘‘(i) the qualified concern does

15 not demonstrate that it is under16 taking a good faith effort to

17 achieve the commercialization of

18 the technology, process, or other

19 proprietary right; or

20 ‘‘(ii) the Secretary certifies

21 that the interests of national se22 curity or the general welfare of

23 the American people necessitates

24 the revocation of such rights.
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1 ‘‘(B) The Federal Government re2 tains a license to such technologies,

3 processes, and other proprietary

4 rights for the Government’s own use.

5 ‘‘(C) The Federal Government re6 ceives in compensation for the con7 veyance of such rights—

8 ‘‘(i) royalty fees;

9 ‘‘(ii) partial equity ownership

10 in the qualified concerns to whom

11 such rights are conveyed;

12 ‘‘(iii) the right to share in the

13 earnings of the qualified entity

14 proportionate to the value of the

15 rights so conveyed; or

16 ‘‘(iv) a sum of money or other

17 compensation that the Corpora18 tion determines to be appro19 priate.

20 ‘‘(g) FINANCING OF CORPORATION.—

21 ‘‘(1) CAPITAL STOCK.—The Corporation

22 may issue and have outstanding, in such

23 amounts as it shall determine, shares of

24 capital stock, without par value, which
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1 shall carry voting rights and be eligible

2 for dividends.

3 ‘‘(2) NONVOTING SECURITY ISSUES AND

4 CERTIFICATES OF INDEBTEDNESS.—The Cor5 poration may issue, in addition to the

6 stock authorized by paragraph (1) of this

7 section, nonvoting securities, bonds, de8 bentures, and other certificates of indebt9 edness as it may determine.

10 ‘‘(h) CONSULTATION WITH FEDERAL AGEN11 CIES, AND WITH PRIVATE PARTIES.—

12 ‘‘(1) CONSULTATION WITH FEDERAL

13 AGENCIES.—In carrying out this title, the

14 Board and the Corporation shall consult

15 frequently with the Secretary of Com16 merce, and such Federal agencies and de17 partments as is appropriate, to ensure co18 ordination and the maximum utilization

19 of all related Federal resources to pro20 mote technology transfer and commer21 cialization.

22 ‘‘(2) CONSULTATION WITH PRIVATE PAR23 TIES.—In carrying out this section, the

24 Board and the Corporation shall solicit

25 comments from private parties, including
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1 representatives of finance, industry, and

2 organized labor on the role of the Cor3 poration and the needs of private parties.

4 ‘‘(i) AUDIT BY COMPTROLLER GENERAL.—The

5 Comptroller General of the United States may

6 audit the financial transactions of the Cor7 poration. For the purposes of carrying out

8 such an audit, the Comptroller General shall

9 have access to all books, records, and prop10 erty belonging to, or in the possession of, the

11 Corporation. In the case of a person or entity

12 which has entered into a financial relation13 ship with the Corporation, the Comptroller

14 General shall have access only to those books,

15 records, and property belonging to, or in the

16 possession of, the person or entity which per17 tain to the Corporation and which are nec18 essary to carry out the audit. The Comptroller

19 General shall make a report of each such

20 audit to the Congress and the President.

21 ‘‘(j) ADMINISTRATION.—

22 ‘‘(1) HEARINGS.—The Board may hold

23 such hearings, sit and act at such times

24 and places, take such testimony, receive

25 such evidence, and publish or otherwise
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1 distribute so much of its proceedings and

2 reports as it may deem advisable.

3 ‘‘(2) OFFICE SPACE AND EQUIPMENT.—

4 The Board may acquire, furnish, and

5 equip such office space as it determines

6 necessary.

7 ‘‘(3) NECESSARY EXPENSES.—The Board

8 may incur such necessary expenses and

9 exercise such powers as are consistent

10 and reasonably required to perform its

11 functions.

12 ‘‘(4) RECORDS.—To the extent per13 mitted by law, all appropriate records

14 and papers of the Board shall be made

15 available for public inspection.

16 ‘‘(5) AID FROM FEDERAL AGENCIES.—

17 Upon the request of the Board, the head

18 of a Federal department or agency is au19 thorized to—

20 ‘‘(A) furnish to the Board such in21 formation as the Board deems nec22 essary for carrying out its functions

23 and as is available to the agency; and

24 ‘‘(B) detail for temporary duty, on

25 a reimbursable basis, such personnel
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1 as the Board deems necessary to

2 carry out its functions.

3 ‘‘(k) MISCELLANEOUS PROVISIONS.—

4 ‘‘(1) JURISDICTION.—

5 ‘‘(A) IN GENERAL.—Whenever the

6 Corporation is a party to any civil ac7 tion under this title, such action shall

8 be deemed to arise under the laws of

9 the United States. No attachment or

10 execution may be issued against the

11 Corporation, or any property thereof,

12 prior to entry of final judgment.

13 ‘‘(B) CITIZENSHIP OF CORPORA14 TION.—The Corporation shall be

15 deemed to be a citizen only of the

16 District of Columbia for the purpose

17 of determining the original jurisdic18 tion of the district courts of the Unit19 ed States in civil actions to which the

20 Corporation is a party.

21 ‘‘(2) BUSINESS ACTIVITY AND QUALIFICA22 TION.—The Corporation shall be deemed

23 to be qualified to do business in each

24 State in which it performs any activity

25 authorized under this title.
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1 ‘‘SEC. 724. ASSISTANCE TO BUSINESSES IN SECURING FI2 NANCING.

3 ‘‘(a) INFORMATION CLEARINGHOUSE.—The

4 Corporation established under this subtitle

5 shall act as a one-stop clearinghouse for infor6 mation to assist qualified concerns identify

7 sources of business development and tech8 nology commercialization financing available

9 through the Federal Government as well as

10 through applicable State and local govern11 ment programs and through private sources.

12 ‘‘(b) AGENT OF THE FEDERAL GOVERN13 MENT.—The Corporation may act as an agent

14 of the Federal Government for purposes of ac15 cepting applications for financial assistance

16 and their submission to the appropriate Fed17 eral agency on behalf of a qualified concern.

18 ‘‘SEC. 725. TECHNICAL ASSISTANCE FOR LENDERS AND

19 BORROWERS.

20 ‘‘(a) IN GENERAL.—The Corporation shall,

21 upon request, provide technical assistance

22 and services, as appropriate and needed, to

23 lenders and borrowers under this title, and

24 shall ensure that such lenders and borrowers

25 have ready access to appropriate assistance
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1 in order to aid such lenders and borrowers in

2 achieving the purposes of this subtitle.

3 ‘‘(b) FEES.—The Corporation may—

4 ‘‘(1) charge fees for technical assist5 ance and services provided under this

6 section in amounts sufficient to cover the

7 reasonable cost of such assistance and

8 services; and

9 ‘‘(2) waive such fees on a case-by-case

10 basis.’’.

11 SEC. 102. COMPLIANCE WITH BUY AMERICAN ACT.

12 None of the funds made available under

13 this title, or any amendment made by this

14 title, may be expended in violation of sections

15 2 through 4 of the Act of March 3, 1933 (41

16 U.S.C. 10a–10c; popularly known as the ‘‘Buy

17 American Act’’), which are applicable to those

18 funds.

19 TITLE II—APPALACHIAN

20 REGIONAL DEVELOPMENT

21 SEC. 201. FINDINGS AND PURPOSES.

22 Section 2 of the Appalachian Regional De23 velopment Act of 1965 (40 U.S.C. App. 2) is

24 amended—
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1 (1) in subsection (a) by striking the

2 period at the end of the 6th sentence and

3 inserting ‘‘and in severely distressed and

4 underdeveloped counties and areas lack5 ing resources for basic services.’’; and

6 (2) by adding at the end the following

7 new subsection:

8 ‘‘(c) The Congress further finds and de9 clares that, while substantial progress has

10 been made in fulfilling many of the objectives

11 of this Act, rapidly changing national and

12 global economics over the past decade have

13 created new problems and challenges for

14 rural areas throughout the Nation and espe15 cially for the Appalachian region. Thus, the

16 problems of the region are not only to provide

17 the infrastructure necessary to economic and

18 human resource development, to develop its

19 industry, and to generate a diversified re20 gional economy, but to make the region’s in21 dustrial and commercial resources more com22 petitive in national and world markets. It is,

23 therefore, also the purpose of this Act to pro24 vide a framework for coordinating Federal,

25 State, and local initiatives to respond to the
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1 economic competitive challenge through im2 proving the skills of the region’s manpower,

3 adapting and applying new technologies for

4 the region’s businesses, and improving the ac5 cess of the region’s businesses to the technical

6 and financial resources necessary to their de7 velopment while continuing to address the

8 need to provide basic services for the more

9 disadvantaged areas of the region so as to

10 provide a fairer opportunity for the people of

11 the region to share the quality of life gen12 erally enjoyed by citizens across this Nation.’’.

13 SEC. 202. MEETINGS.

14 Section 101 of the Appalachian Regional

15 Development Act of 1965 (40 U.S.C. App. 101)

16 is amended—

17 (1) in subsection (a) by adding at the

18 end the following:

19 ‘‘The Commission shall conduct at least 1

20 meeting each year with the presence of the

21 Federal Cochairman and at least a majority of

22 the State members. The Commission may con23 duct such additional meetings by electronic

24 means as the Commission considers advis25 able.’’;
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1 (2) at the end of the 3d sentence of

2 subsection (b) by striking ‘‘present’’; and

3 (3) at the end of the 4th sentence of

4 subsection (c) by striking ‘‘to be present’’.

5 SEC. 203. AUTHORIZATIONS FOR ADMINISTRATIVE EX6 PENSES.

7 Section 105(b) of the Appalachian Re8 gional Development Act of 1965 (40 U.S.C.

9 App. 105(b)) is amended to read as follows:

10 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—

11 ‘‘(1) IN GENERAL.—There is authorized

12 to be appropriated to carry out this sec13 tion $3,400,000 for fiscal year 1994 and

14 $3,600,000 for fiscal year 1995. Such sums

15 shall remain available until expended.

16 ‘‘(2) EXPENSES OF FEDERAL COCHAIR17 MAN.—Of amounts appropriated pursuant

18 to paragraph (1), not to exceed $1,102,000

19 for fiscal year 1994 and not to exceed

20 $1,500,000 for fiscal year 1995 shall be

21 available for expenses of the Federal Co22 chairman, the Federal Cochairman’s al23 ternate, and the Federal Cochairman’s

24 staff.’’.
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1 SEC. 204. EXTENSION OF LEASE TERMS.

2 Section 106(7) of the Appalachian Re3 gional Development Act of 1965 (40 U.S.C.

4 App. 106(7)) is amended by striking ‘‘1982’’ and

5 inserting ‘‘1995’’.

6 SEC. 205. HIGHWAY SYSTEM.

7 (a) AUTHORIZATION OF APPROPRIATIONS.—

8 Section 201(g) of the Appalachian Regional

9 Development Act of 1965 (40 U.S.C. App.

10 201(g)) is amended to read as follows:

11 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—

12 There is authorized to be appropriated to

13 carry out this section $160,000,000 for fiscal

14 year 1994 and $100,000,000 for fiscal year 1995.

15 Such sums shall remain available until ex16 pended.’’.

17 (b) FEDERAL SHARE.—

18 (1) GENERAL RULE.—Section 201(h)(1)

19 of such Act (40 U.S.C. App. 201(h)(1)) is

20 amended by striking ‘‘70 per centum’’ and

21 inserting ‘‘80 percent’’.

22 (2) APPLICABILITY.—The amendment

23 made by paragraph (1) shall apply to

24 projects approved after March 31, 1979.
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1 SEC. 206. SUPPLEMENTS TO FEDERAL GRANT-IN-AID PRO2 GRAMS.

3 (a) AVAILABILITY OF AMOUNTS.—The 1st

4 sentence of section 214(a) of the Appalachian

5 Regional Development Act of 1965 (40 U.S.C.

6 App. 214(a)) is amended by striking ‘‘the

7 President is authorized to provide funds to

8 the Federal Cochairman to be used’’ and in9 serting ‘‘the Federal Cochairman may use

10 amounts made available under this section’’.

11 (b) FEDERAL GRANT-IN-AID PROGRAMS DE12 FINED.—The 1st sentence of section 214(c) of

13 such Act (40 U.S.C. App. 214(c)) is amended by

14 striking ‘‘on or before December 31, 1980,’’.

15 (c) LIMITATION ON COVERED ROAD

16 PROJECTS.—The 2d sentence of section 214(c)

17 of such Act is amended by inserting ‘‘author18 ized by title 23, United States Code’’ after

19 ‘‘road construction’’.

20 SEC. 207. PROGRAM DEVELOPMENT CRITERIA.

21 (a) CONSIDERATIONS.—Section 224(a) of the

22 Appalachian Regional Development Act of

23 1965 (40 U.S.C. App. 224(a)) is amended by in24 serting before the semicolon at the end of

25 paragraph (1) the following: ‘‘or in a severely
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1 distressed and underdeveloped county or

2 area lacking resources for basic services’’.

3 (b) REMOVAL OF LIMITATIONS.—Section

4 224(b) of such Act (40 U.S.C. App. 224(b)) is

5 amended to read as follows:

6 ‘‘(b) LIMITATION.—No financial assistance

7 shall be authorized under this Act to be used

8 to assist establishments relocating from 1

9 area to another.’’.

10 SEC. 208. GRANTS FOR ADMINISTRATIVE EXPENSES AND

11 DEMONSTRATION PROJECTS.

12 (a) AVAILABILITY OF AMOUNTS.—Section

13 302(a) of the Appalachian Regional Develop14 ment Act of 1965 (40 U.S.C. App. 302(a)) is

15 amended—

16 (1) by striking ‘‘The President’’ and

17 inserting ‘‘The Commission’’; and

18 (2) in paragraphs (1), (2), and (3) by

19 striking ‘‘to the Commission’’ each place

20 it appears.

21 (b) RESEARCH AND DEMONSTRATION

22 PROJECTS.—Section 302(a)(3) of such Act (40

23 U.S.C. App. 302(a)(3)) is amended—

24 (1) by inserting after ‘‘technical as25 sistance’’ the following: ‘‘(including tech-
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1 nical assistance for business development

2 and stabilization and application of tech3 nologies (including telecommunication

4 technologies) and productivity improve5 ment)’’;

6 (2) by inserting after ‘‘training pro7 grams’’ the following: ‘‘(including on-site

8 employee training and programs to up9 grade employability of the region’s peo10 ple)’’; and

11 (3) by inserting after ‘‘demonstra12 tions’’ the following: ‘‘(including dem13 onstrations of service consolidations and

14 other methods of increasing efficiency of

15 local governments, the establishment and

16 operation by States, public agencies, or

17 nonprofit development organizations of

18 revolving funds for business assistance

19 loans, the establishment and operation of

20 business incubators and the provision of

21 industrial facilities and equipment by

22 public agencies and nonprofit organiza23 tions on such terms (including terms of

24 reasonable recovery of grant funds upon

25 resale) as are approved by the Commis-
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1 sion, and the acquisition and develop2 ment of land)’’.

3 (c) SOLID WASTE DISPOSAL DEMONSTRATION

4 PROJECTS.—Section 302(b) of such Act (40

5 U.S.C. App. 302(b)) is amended by adding at

6 the end the following new paragraph:

7 ‘‘(5) The Commission shall carry out

8 projects at not less than 2 sites in the Appa9 lachian region for the purpose of demonstrat10 ing solid waste disposal techniques in rural

11 areas.’’.

12 (d) REPEAL OF PROVISION ON USE OF INFOR13 MATION FROM RESEARCH AND DEVELOPMENT AC14 TIVITIES.—Section 302(e) of such Act (40 U.S.C.

15 302(e)) is repealed.

16 SEC. 209. AUTHORIZATION OF APPROPRIATIONS FOR GEN17 ERAL PROGRAM.

18 Section 401 of the Appalachian Regional

19 Development Act of 1965 (40 U.S.C. App. 401)

20 is amended to read as follows:

21 ‘‘SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

22 ‘‘In addition to the appropriations author23 ized in section 105 for administrative ex24 penses and in section 201(g) for the Appalach25 ian development highway system and local ac-
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1 cess roads, there is authorized to be appro2 priated to the Commission to carry out this

3 Act $83,400,000 per fiscal year for each of fis4 cal years 1994 and 1995. Such sums shall re5 main available until expended.’’.

6 SEC. 210. DEFINITION OF APPALACHIAN REGION.

7 Section 403 of the Appalachian Regional

8 Development Act of 1965 (40 U.S.C. App. 403)

9 is amended—

10 (1) in the 1st undesignated paragraph

11 (relating to Alabama) by inserting ‘‘Hale,’’

12 after ‘‘Franklin,’’; and

13 (2) in the 12th undesignated para14 graph (relating to Virginia)—

15 (A) by inserting ‘‘Montgomery,’’

16 after ‘‘Lee,’’; and

17 (B) by inserting ‘‘Roanoke,

18 Rockbridge,’’ after ‘‘Pulaski,’’.

19 SEC. 211. EXTENSION OF TERMINATION DATE.

20 Section 405 of the Appalachian Regional

21 Development Act of 1965 (40 U.S.C. App. 405)

22 is amended by striking ‘‘1982’’ and inserting

23 ‘‘1995’’.
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1 SEC. 212. REGIONAL DEVELOPMENT TASK FORCE.

2 (a) ESTABLISHMENT.—There is established

3 a Regional Development Task Force (herein4 after in this section referred to as the ‘‘Task

5 Force’’).

6 (b) DUTIES.—It shall be the duty of the

7 Task Force to conduct a study on—

8 (1) the extent to which the unique

9 characteristics of the Appalachian Re10 gional Commission (including the Com11 mission’s Federal-State partnership, pro12 gram flexibility, and regional approach)

13 have contributed to the achievement of

14 the Commission’s goals; and

15 (2) whether or not the Commission

16 can utilize such characteristics to ad17 dress needs which may exist in other

18 rural areas suffering from economic dis19 tress, including the Lower Mississippi

20 delta, Mexican border, and Ozark areas.

21 (c) MEMBERSHIP.—

22 (1) VOTING MEMBERS.—The Task Force

23 shall be composed of 9 voting members

24 appointed, not later than 90 days after

25 the date of the enactment of this Act, as

26 follows:
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1 (A) 3 members appointed by the

2 President.

3 (B) 3 members appointed by the

4 President pro tempore of the Senate.

5 (C) 3 members appointed by the

6 Speaker of the House of Representa7 tives.

8 (2) EX OFFICIO MEMBERS.—The Federal

9 and State Cochairmen of the Appalachian

10 Regional Commission shall serve as ex

11 officio, nonvoting members of the Task

12 Force.

13 (d) FACILITIES, SUPPLIES, AND PERSONNEL.—

14 Upon the request of the Task Force, the Appa15 lachian Regional Commission shall provide to

16 the Task Force any facilities, supplies, and

17 personnel necessary for the Task Force to

18 carry out its responsibilities under this Act;

19 except that the total cost of such facilities,

20 supplies, and personnel shall not exceed

21 $500,000.

22 (e) USE OF OTHER STUDIES.—In conducting

23 the study under subsection (b), the Commis24 sion shall incorporate the results of other

25 studies on the needs of rural areas described
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1 in subsection (b) and shall not duplicate such

2 studies.

3 (f) REPORT.—Not later than 9 months after

4 the date of the first meeting of the Task Force,

5 the Task Force shall transmit to Congress a

6 report on the results of the study conducted

7 under subsection (b).

8 (g) TERMINATION.—The Task Force shall

9 terminate on the date of transmittal of the re10 port under subsection (f).

11 SEC. 213. COMPLIANCE WITH BUY AMERICAN ACT.

12 None of the funds made available under

13 this title, or any amendment made by this

14 title, may be expended in violation of sections

15 2 through 4 of the Act of March 3, 1933 (41

16 U.S.C. 10a–10c; popularly known as the ‘‘Buy

17 American Act’’), which are applicable to those

18 funds.

Amend the title so as to read: ‘‘A bill to reauthorize

economic development programs under the Public Works

and Economic Development Act of 1965 and the Appalachian Regional Development Act of 1965 for fiscal

years 1994 and 1995, to reenact the Public Works and

Economic Development Act of 1965 as the Economic Development Financing Act of 1994, and for other purposes.’’.

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