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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2442 Engrossed in House (EH)]

103d CONGRESS

  2d Session

                               H. R. 2442

_______________________________________________________________________

                                 AN ACT

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.

103d CONGRESS
  2d Session
                                H. R. 2442

_______________________________________________________________________

                                 AN ACT

 
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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Economic 
Development Reauthorization Act of 1994''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
                 TITLE I--ECONOMIC DEVELOPMENT PROGRAMS

Sec. 101. Grants for public works and development facilities.
Sec. 102. Projects constructed under projected cost.
Sec. 103. Changed project circumstances.
Sec. 104. Other financial assistance.
Sec. 105. Technical assistance, research, and information.
Sec. 106. Business outreach center demonstration project.
Sec. 107. Office of Strategic Economic Development Planning and Policy.
Sec. 108. Office of Economic Development Information.
Sec. 109. Area eligibility.
Sec. 110. Investment strategy.
Sec. 111. Economic development districts.
Sec. 112. Administration.
Sec. 113. Expedited processing of applications.
Sec. 114. Uniform application form.
Sec. 115. Study of grant selection criteria.
Sec. 116. Performance evaluations of grant recipients.
Sec. 117. Study of guaranteed loan program.
Sec. 118. Miscellaneous.
Sec. 119. Acceptance of applicants' certifications.
Sec. 120. Supervision of regional counsels.
Sec. 121. Economic recovery for disaster areas.
Sec. 122. Special economic development and adjustment assistance.
Sec. 123. Treatment of revolving loan funds.
Sec. 124. Outreach to communities adversely affected by defense base 
                            closures.
Sec. 125. Sale of financial instruments in revolving loan funds.
Sec. 126. Economic development challenge grants demonstration project.
Sec. 127. Authorization of appropriations.
Sec. 128. References to the Secretary.
Sec. 129. Compliance with Buy American Act.
               TITLE II--APPALACHIAN REGIONAL DEVELOPMENT

Sec. 201. Findings and purposes.
Sec. 202. Meetings.
Sec. 203. Authorizations for administrative expenses.
Sec. 204. Extension of lease terms.
Sec. 205. Highway system.
Sec. 206. Supplements to Federal grant-in-aid programs.
Sec. 207. Program development criteria.
Sec. 208. Grants for administrative expenses and demonstration 
                            projects.
Sec. 209. Authorization of appropriations for general program.
Sec. 210. Definition of Appalachian region.
Sec. 211. Extension of termination date.
Sec. 212. Regional development task force.
Sec. 213. Compliance with Buy American Act.
               TITLE III--BUSINESS DEVELOPMENT ASSISTANCE

Sec. 301. Short title.
Sec. 302. Findings, purposes, and definitions.
Sec. 303. Consolidation of information on technologies.
Sec. 304. Business development and technology commercialization 
                            corporation.
Sec. 305. Assistance to businesses in securing financing.
Sec. 306. Savings provision.
Sec. 307. Rule of construction.

                 TITLE I--ECONOMIC DEVELOPMENT PROGRAMS

SEC. 101. GRANTS FOR PUBLIC WORKS AND DEVELOPMENT FACILITIES.

    (a) Direct and Supplementary Grants.--
            (1) Eligible applicants.--Section 101(a) of the Public 
        Works and Economic Development Act of 1965 (42 U.S.C. 3131(a)) 
        is amended in the matter preceding paragraph (1) by striking 
        ``representing any redevelopment area or part thereof'' and 
        inserting ``acting in cooperation with officials of local 
        governments''.
            (2) Direct grants.--Section 101(a)(1) of such Act (42 
        U.S.C. 3131(a)(1)) is amended--
                    (A) in the matter preceding subparagraph (A) by 
                inserting ``design and engineering,'' after 
                ``acquisition,''; and
                    (B) in subparagraph (A) by striking ``or otherwise 
                substantially further the objectives of the Economic 
                Opportunity Act of 1964''.
    (b) Amount of Supplemental Grants.--The last sentence of section 
101(c) of such Act (42 U.S.C. 3131(c)) is amended--
            (1) by striking ``area,'' and inserting ``area and''; and
            (2) by striking ``, and the amount of'' and all that 
        follows before the period.
    (c) Authorization of Appropriations.--Section 105 of such Act (42 
U.S.C. 3135) is amended to read as follows:

``SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There is authorized to be appropriated to carry 
out this title $160,000,000 for fiscal year 1994 and $175,000,000 per 
fiscal year for each of fiscal years 1995 and 1996. Such sums shall 
remain available until expended.
    ``(b) Limitation on Expenditures in Certain Areas.--Not more than 
35 percent of the amounts appropriated pursuant to subsection (a) in a 
fiscal year may be expended for projects located in areas described in 
section 401(a)(4).
    ``(c) Limitation on Expenditures for Design and Engineering.--Not 
more than 20 percent of the amounts appropriated pursuant to section 
(a) in a fiscal year may be expended for design and engineering.''.
    (d) Sewer Facilities.--Title I of such Act (42 U.S.C. 3131-3137) is 
amended by striking section 106 and redesignating section 107 as 
section 106.
    (e) Construction Cost Increases.--Section 106 of such Act, as 
redesignated by subsection (d) of this section, is amended by inserting 
a period after ``such costs'' and striking all that follows.

SEC. 102. PROJECTS CONSTRUCTED UNDER PROJECTED COST.

    Title I of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3131-3137) is amended by adding at the end the following:

``SEC. 107. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.

    ``In any case where a grant (including a supplemental grant) has 
been made under this title for a project, and after such grant has been 
made but before completion of the project the cost of such project 
based upon the designs and specifications which were the basis of the 
grant has decreased because of decreases in costs, such underrun funds 
may be used to improve the project either directly or indirectly as 
determined by the Secretary.''.

SEC. 103. CHANGED PROJECT CIRCUMSTANCES.

    Title I of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3131-3137) is further amended by adding at the end the 
following:

``SEC. 108. CHANGED PROJECT CIRCUMSTANCES.

    ``In any case where a grant (including a supplemental grant) has 
been made under this title for a project, and after such grant has been 
made but before completion of the project the purpose or scope of such 
project based upon the designs and specifications which were the basis 
of the grant has changed, the Secretary may approve the use of grant 
funds on such changed project if the Secretary determines that such 
changed project meets the requirements of this title and that such 
changes are necessary to enhance economic development in the area.''.

SEC. 104. OTHER FINANCIAL ASSISTANCE.

    (a) Public Works and Development Facility Loans.--
          (1) Eligible applicants.--Section 201(a) of the Public Works 
        and Economic Development Act of 1965 (42 U.S.C. 3141(a)) is 
        amended in the matter preceding paragraph (1) by striking 
        ``representing any redevelopment area or part thereof'' and 
        inserting ``acting in cooperation with officials of local 
        governments''.
            (2) Criteria.--Section 201(a)(1)(C) of such Act (42 U.S.C. 
        3141(a)(1)(C)) is amended by striking ``or otherwise 
        substantially further the objectives of the Economic 
        Opportunity Act of 1964''.
    (b) Terms and Conditions.--Section 202(b) of such Act (42 U.S.C. 
3142(b)) is amended--
            (1) in paragraph (6) by striking ``it is determined'' and 
        inserting ``the Secretary determines''; and
            (2) in paragraph (7) by striking ``hereunder for a period'' 
        and all that follows through ``the foregoing restrictions on 
        maturities'' and inserting ``under this section for a term of 
        maturity of more than 25 years and no evidences of indebtedness 
        which matures more than 25 years after the date of purchase may 
        be purchased under this section; except that this paragraph''.
    (c) Redevelopment Area Loan Program.--Title II of such Act (42 
U.S.C. 3141-3144) is amended by striking section 204.

SEC. 105. TECHNICAL ASSISTANCE, RESEARCH, AND INFORMATION.

    (a) Technical Assistance.--
            (1) Urban areas with populations of 400,000 or less.--
        Section 301(a) of the Public Works and Economic Development Act 
        of 1965 (42 U.S.C. 3151(a)) is amended by adding at the end the 
        following: ``In providing assistance under this subsection, the 
        Secretary shall take into consideration the unique development 
        needs of urban areas with populations of 400,000 or less.''.
            (2) Grants for administrative expenses.--The last sentence 
        of section 301(b) of such Act (42 U.S.C. 3151(b)) is amended by 
        striking ``urban planning grants, authorized under the Housing 
        Act of 1954, as amended,'' and inserting ``planning activities 
        described in section 105(a)(13) of the Housing and Community 
        Development Act of 1974''.
            (3) Repeals.--Section 301 of such Act (42 U.S.C. 3151) is 
        amended by striking subsections (c), (e), and (f) and 
        redesignating subsection (d) as subsection (c).
    (b) Economic Development Planning.--
            (1) Direct grants.--The 7th sentence of section 302(a) of 
        such Act (42 U.S.C. 3151a(a)) is amended by striking ``and 
        shall be available'' and all that follows before the period at 
        the end.
            (2) Technical assistance.--Section 302 of such Act (42 
        U.S.C. 3151a) is amended by striking subsection (b) and 
        redesignating subsection (c) as subsection (b).
            (3) Use of other planning assistance.--Section 302(b) of 
        such Act, as redesignated by paragraph (2) of this subsection, 
        is amended by striking ``shall be used in accordance with the 
        review procedure required pursuant to title IV of the 
        Intergovernmental Cooperation Act of 1968 and''.
    (c) Authorization of Appropriations.--Section 303 of such Act (42 
U.S.C. 3152) is amended to read as follows:

``SEC. 303. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this title 
$37,100,000 for fiscal year 1994 and $50,000,000 per fiscal year for 
each of fiscal years 1995 and 1996. Such sums shall remain available 
until expended.''.
    (d) Supplemental and Basic Grants.--Title III of such Act (42 
U.S.C. 3151-3153) is amended by striking section 304.

SEC. 106. BUSINESS OUTREACH CENTER DEMONSTRATION PROJECT.

    Title III of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3151-3153) is amended by adding at the end the following:

``SEC. 304. BUSINESS OUTREACH CENTER DEMONSTRATION PROJECT.

    ``(a) In General.--The Secretary shall conduct a project in each of 
fiscal years 1994 through 1996 with funds made available under this 
title for the purpose of demonstrating methods of assisting isolated 
small businesses to access small business services provided by Federal, 
State, and local governments.
    ``(b) Establishment of Centers.--In conducting the demonstration 
project under this section, the Secretary shall establish 3 business 
outreach centers. At least 1 of the centers shall be located in a rural 
area.
    ``(c) Purpose of Centers.--It shall be the purpose of each business 
outreach center established under this section--
            ``(1) to provide a one-stop clearinghouse to assist 
        isolated small businesses in accessing small business services 
        provided by Federal, State, and local governments; and
            ``(2) to improve efficiency in the delivery of such 
        services.
    ``(d) Services To Be Provided.--Each business outreach center 
established under this section shall provide the following services:
            ``(1) Outreach to isolated small businesses.
            ``(2) Assessment of the need of isolated small businesses 
        for assistance services.
            ``(3) Referral of isolated small businesses to small 
        business assistance agencies.
            ``(4) Preparation of materials required by isolated small 
        businesses for participation in small business assistance 
        programs.
            ``(5) Case management to assure follow-up and quality 
        control of business services.
            ``(6) Coordination of networking among isolated small 
        businesses.
            ``(7) Quality control of small business assistance 
        services.
    ``(e) Isolated Small Business Defined.--For the purposes of this 
section, the term `isolated small business' means a small business that 
is unable to effectively access small business services provided by 
Federal, State, and local governments due to linguistic, cultural, or 
geographic barriers.''.

SEC. 107. OFFICE OF STRATEGIC ECONOMIC DEVELOPMENT PLANNING AND POLICY.

    Title III of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3151-3153) is further amended by adding at the end the 
following:

``SEC. 305. OFFICE OF STRATEGIC ECONOMIC DEVELOPMENT PLANNING AND 
              POLICY.

    ``(a) Establishment.--The Secretary shall establish an Office of 
Strategic Economic Development Planning and Policy (hereafter in this 
section referred to as `the Office').
    ``(b) Duties.--The duties of the head of the Office are as follows:
            ``(1) Research, evaluation, and demonstration.--To support 
        research, evaluation, and demonstration projects to study and 
        assess best practices in economic development and to examine 
        trends and changes in economic conditions that affect regional 
        development.
            ``(2) Policy development.--To develop recommendations on 
        both short- and long-term policies regarding economic 
        development issues and programs, to help foster the diffusion 
        of innovative, best practices in economic development 
        throughout the Department of Commerce.
            ``(3) Coordination.--To take a leading role in developing 
        and promoting means for greater coordination among States, 
        regions, and local communities in the design and implementation 
        of economic development strategies, and to work in conjunction 
        with Federal agencies on developing and implementing means for 
        reducing fragmentation and increase coordination among Federal 
        programs that provide economic development assistance.
    ``(c) Research in Causes of Long-Term Economic Deterioration.--
            ``(1) In general.--To assist in the long-range 
        accomplishment of the purposes of this Act, the Secretary, in 
        cooperation with other agencies having similar functions, shall 
        establish and conduct a continuing program of study, training, 
        and research--
                    ``(A) to assist in determining the causes of 
                unemployment, underemployment, under- development, and 
                chronic depression in the various areas and regions of 
                the Nation;
                    ``(B) to assist in the formulation and 
                implementation of national, State, and local programs 
                which will raise income levels and otherwise produce 
                solutions to the problems resulting from these 
                conditions; and
                    ``(C) to assist in providing the personnel needed 
                to conduct such programs.
            ``(2) Manner of providing study, assistance.--The program 
        of study, training, and research may be conducted by the 
        Secretary through--
                    ``(A) members of the Secretary's staff;
                    ``(B) the payment of funds authorized for this 
                section to other departments or agencies of the Federal 
                Government;
                    ``(C) the employment of private individuals, 
                partnerships, firms, corporations, or suitable 
                institutions;
                    ``(D) contracts entered into for such purposes;
                    ``(E) grants to such individuals, organizations, or 
                institutions as the Secretary determines to be 
                appropriate; or
                    ``(F) conferences and similar meetings organized 
                for such purposes.
            ``(3) Availability of results of research.--The Secretary 
        shall make available to interested individuals and 
        organizations the results of such research.
            ``(4) Annual report of secretary.--The Secretary shall 
        include in the annual report under section 705 a detailed 
        statement concerning the study and research conducted under 
        this section, together with the Secretary's findings and 
        conclusions and such recommendations for legislative and other 
        action as the Secretary may consider appropriate.
    ``(d) Geographic Analysis Tool.--
            ``(1) In general.--The Secretary shall, in cooperation with 
        other appropriate Federal agencies develop a computerized 
        geographic analysis tool that all Federal departments and 
        agencies and grant recipients may use to evaluate the success 
        of these programs.
            ``(2) Report.--Not later than 6 months after the date of 
        the enactment of the Economic Development Reauthorization Act 
        of 1994, the Secretary shall transmit to Congress a report on 
        use of the computerized geographic analysis tool developed 
        pursuant to paragraph (1) by Federal departments and agencies.
    ``(e) Independent Advisory Committee.--The Secretary shall 
establish an advisory committee made up of representatives from major 
State, local, and nonprofit economic development organizations as well 
as nationally recognized experts on innovative approaches to economic 
development to advise and make recommendations to the Office.
    ``(f) Federal Coordinating Council for Economic Development.--
            ``(1) In general.--The Secretary shall establish a Federal 
        Coordinating Council for Economic Development (hereafter in 
        this section referred to as the `Council').
            ``(2) Composition of council.--The Council shall be 
        composed of representatives from Federal agencies involved in 
        matters that affect regional economic development.
            ``(3) Duties.--The Council shall assist in providing a 
        unifying framework for economic and regional development 
        efforts and develop a governmentwide strategic plan for 
        economic development.
    ``(g) Grants and Contracts for Demonstration Projects; Purposes.--
The Secretary may make grants, enter into contracts, or otherwise 
provide funds for any demonstration project in an eligible area which 
the Secretary determines is designed to foster regional productivity 
and growth, prevent outmigration, and otherwise carry out the purposes 
of this Act.''.

SEC. 108. OFFICE OF ECONOMIC DEVELOPMENT INFORMATION.

    Title III of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3151-3153) is further amended by adding at the end the 
following:

``SEC. 306. OFFICE OF ECONOMIC DEVELOPMENT INFORMATION.

    ``(a) Establishment.--The Secretary shall establish the Office of 
Economic Development Information (hereafter in this section referred to 
as the `Office') within the Office of Strategic Economic Development 
Planning and Policy.
    ``(b) Duties.--The duties of the head of the Office shall be--
            ``(1) to serve as a central information clearinghouse on 
        matters relating to economic development, economic adjustment, 
        industrial retention, disaster recovery, and defense conversion 
        programs and activities of the Federal and State governments, 
        including political subdivisions of the States; and
            ``(2) to help potential and actual applicants for economic 
        development, economic adjustment, disaster recovery, industrial 
        retention, and defense conversion assistance under Federal, 
        State, and local laws in locating and applying for such 
        assistance, including financial and technical assistance.
    ``(c) Information Data Bases.--
            ``(1) Uses.--The Office shall develop information data 
        bases for use by Federal departments and agencies. State and 
        local governmental agencies, public and private entities, and 
        individuals to assist such agencies, entities, and individuals 
        in the process of identifying and applying for assistance and 
        resources under economic development, economic adjustment, 
        disaster recovery, industrial retention, and defense conversion 
        programs and activities of the Federal, State, and local 
        governments.
            ``(2) Specific kinds of information required to be 
        included.--The data bases shall include the following kinds of 
        information:
                    ``(A) A comprehensive compilation of all relevant 
                information concerning available economic development, 
                economic adjustment, disaster recovery, industrial 
                retention, and defense conversion programs of the 
                Federal Government including key contact people, 
                descriptions of the application process, eligibility 
                requirements and criteria, selection and followup 
                procedures, and other such relevant information.
                    ``(B) A compilation of major State and local 
                governmental economic development, economic adjustment, 
                disaster relief, industrial retention, and defense 
                conversion assistance programs, including lists of 
                appropriate offices, officers, and contact personnel 
                connected with, or involved in, such programs.
                    ``(C) A compilation of relevant and available 
                economic data and trends, including information about 
                the national, regional, and local impacts of trade 
                agreements, defense spending and downsizing, 
                technological change, and other sources of substantial 
                economic dislocation.
                    ``(D) A compilation of case studies and `best 
                practices' in economic development, adjustment, and 
                conversion.
                    ``(E) A compilation of technology utilization 
                programs, assistance, and resources.
                    ``(F) A compilation of published works (books, 
                reports, articles, videos, and tapes), and selected 
                texts of such works, related to all facets of economic 
                development, economic adjustment and defense 
                conversion.
                    ``(G) A compilation of information on case studies 
                on early warning and intervention efforts.
            ``(3) Points of public access.--
                    ``(A) In general.--The Office shall establish 
                several mechanisms to assure easy access by the public 
                and others to such data bases, and to assure that the 
                data bases be as accessible, user-friendly, culturally 
                neutral, and affordable as possible.
                    ``(B) Means of access.--Access to the Office's data 
                services shall include the following means:
                            ``(i) A toll-free nationwide telephone 
                        number to provide direct phone access to the 
                        public.
                            ``(ii) On-line electronic access through 
                        existing computer network services and publicly 
                        available computer data base access facilities, 
                        such as at repository libraries and by direct 
                        call-in via modem.
                            ``(iii) Printed manuals and orientation 
                        materials.
                            ``(iv) Periodic orientation workshops 
                        available to the public.
                            ``(v) On-call information specialists to 
                        address special problems requiring person-to-
                        person assistance.
    ``(d) Interagency Coordination.--The Secretary shall enter into 
such agreements and understandings as may be necessary with other 
Federal departments and agencies to coordinate the accomplishment of 
the objectives of this section.''.

SEC. 109. AREA ELIGIBILITY.

    (a) In General.--Title IV of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3161-3173) is amended by striking 
the heading to such title and all that follows through section 401 and 
inserting the following:

           ``TITLE IV--ELIGIBILITY AND INVESTMENT STRATEGIES

                         ``PART A--ELIGIBILITY

``SEC. 401. AREA ELIGIBILITY.

    ``(a) Certification.--In order to be eligible for assistance under 
title I or II, an applicant seeking assistance to undertake a project 
in an area shall certify, as part of an application for such 
assistance, that the area on the date of submission of such application 
meets 1 or more of the following criteria:
            ``(1) The area has a per capita income of 80 percent or 
        less of the national average.
            ``(2) The area has an unemployment rate 1 percent above the 
        national average percentage for the most recent 24-month period 
        for which statistics are available.
            ``(3) The area has experienced or is about to experience a 
        sudden economic dislocation resulting in job loss that is 
        significant both in terms of the number of jobs eliminated and 
        the effect upon the employment rate of the area.
            ``(4) The area is a community or neighborhood (defined 
        without regard to political or other subdivisions or 
        boundaries) which the Secretary determines has 1 or more of the 
        following conditions:
                    ``(A) A large concentration of low-income persons.
                    ``(B) Rural areas having substantial out-migration 
                or substantial economic deterioration and unemployment.
                    ``(C) Substantial unemployment.
    ``(b) Documentation.--A certification made under subsection (a) 
shall be supported by Federal data, when available, and in other cases 
by data available through the State government. Such documentation 
shall be accepted by the Secretary unless it is determined to be 
inaccurate. The most recent statistics available shall be used.
    ``(c) Special Rule.--An area which the Secretary determines has 1 
or more of the conditions described in subsection (a)(4)--
            ``(1) shall not be subject to the requirements of 
        subparagraphs (A) and (C) of section 101(a)(1); and
            ``(2) shall not be eligible to meet the requirements of 
        section 403(a)(1)(B).
    ``(d) Prior Designations.--Any designation of a redevelopment area 
under this title made before the date of the enactment of the Economic 
Development Reauthorization Act of 1994 shall not be effective after 
such date of enactment.
    ``(e) Definition.--For purposes of this Act, the term `large 
concentration of low-income persons' means an area with a median family 
income of not more than 80 percent of the national median family 
income.''.
    (b) Conforming Amendments.--
            (1) Title i.--Title I of such Act (42 U.S.C. 3131-3137) is 
        amended--
                    (A) in section 101(a)(1) in the matter preceding 
                subparagraph (A) by striking ``within a redevelopment 
                area'' and inserting ``within an area described in 
                section 401(a)'';
                    (B) in section 101(a)(1)(D) by striking ``a 
                redevelopment area so designated under section 
                401(a)(6)'' and inserting ``an area described in 
                section 401(a)(4)'';
                    (C) in section 101(a)(2) by striking ``within 
                redevelopment areas'' and inserting ``within areas 
                described in section 401(a)'';
                    (D) in each of the 2d and 3d sentences of section 
                101(c) by striking ``a redevelopment area designated as 
                such under section 401(a)(6) of this Act'' and 
                inserting ``an area described in section 401(a)(4)''; 
                and
                    (E) in the 5th sentence of section 101(c) by 
                striking ``redevelopment areas'' and inserting ``areas 
                described in section 401(a)''.
            (2) Title ii.--Title II of such Act (42 U.S.C. 3141-3144) 
        is amended--
                    (A) in section 201(a) in the matter preceding 
                paragraph (1) by striking ``within a redevelopment 
                area'' and inserting ``within an area described in 
                section 401(a)'';
                    (B) in each of paragraphs (1) and (3) of section 
                202(a) by striking ``within a redevelopment area'' and 
                inserting ``within an area described in section 
                401(a)''; and
                    (C) in section 202(b)(3) by striking 
                ``redevelopment''.
            (3) Title iii.--Title III of such Act (42 U.S.C. 3151-3153) 
        is amended--
                    (A) in section 301(a) by striking ``(1) to areas 
                which he has designated as redevelopment areas under 
                this Act, and (2) to other areas which he finds'' and 
                inserting ``(1) to areas which the Secretary determines 
                are areas described in section 401(a), and (2) to other 
                areas which the Secretary finds'';
                    (B) in section 301(c), as redesignated by section 
                105(a) of this Act, by striking ``redevelopment areas'' 
                both places it appears and inserting ``areas described 
                in section 401(a)'';
                    (C) in the 1st sentence of section 302(a) by 
                striking ``a redevelopment area'' and inserting ``an 
                area described in section 401(a)''; and
                    (D) in the 2d sentence of section 302(a) by 
                striking ``redevelopment areas'' and inserting ``areas 
                described in section 401(a)''.
            (4) Title iv.--Title IV of such Act (42 U.S.C. 3161-3173) 
        is amended--
                    (A) in each of subparagraphs (A) and (B) of section 
                403(a)(1) by striking ``redevelopment area'' and 
                inserting ``area described in section 401(a)'';
                    (B) in section 403(a)(1)(C) by striking 
                ``redevelopment areas'' and inserting ``areas described 
                in section 401(a)'';
                    (C) in section 403(a)(4) in the matter preceding 
                subparagraph (A) by striking ``redevelopment areas 
                (designated under section 401)'' and inserting ``areas 
                described in section 401(a)'';
                    (D) in section 403(a)(4)(A) by striking 
                ``redevelopment area'' and inserting ``area described 
                in section 401(a)''; and
                    (E) in section 403(h), as redesignated by section 
                111(c) of this Act, by striking ``a redevelopment 
                area'' each place it appears and inserting ``an area 
                described in section 401(a)''.
            (5) Title ix.--Section 902 of such Act (42 U.S.C. 3242) is 
        amended by striking ``a redevelopment area or economic 
        development district established under title IV of this Act'' 
        and inserting ``an area described in section 401(a) or an 
        economic development district designated under section 403''.

SEC. 110 INVESTMENT STRATEGY.

    (a) In General.--Section 402 of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3162) is amended to read as follows:

``SEC. 402. INVESTMENT STRATEGY.

    ``The Secretary may provide assistance under title I or II to an 
applicant for a project to be undertaken in an area described in 
section 401(a) only if the applicant submits to the Secretary, as part 
of an application for such assistance, and the Secretary approves an 
investment strategy which--
            ``(1) identifies the economic development problems to be 
        addressed using such assistance;
            ``(2) identifies past, present, and projected future 
        economic development investments in such area and public and 
        private participants and sources of funding for such 
        investments;
            ``(3) sets forth a strategy for addressing the economic 
        problems identified pursuant to paragraph (1) and describes how 
        the strategy will solve such problems;
            ``(4) provides a description of the project necessary to 
        implement the strategy, estimates of costs, and timetables; and
            ``(5) provides a summary of public and private resources 
        expected to be available for the project.''.
    (b) Elimination of Overall Economic Development Program.--Section 
202(b) of such Act (42 U.S.C. 3142(b)) is amended by striking paragraph 
(10).
    (c) Conforming Amendments.--
            (1) Title i.--Subparagraph (C) of section 101(a)(1) of such 
        Act (42 U.S.C. 3131(a)(1)) is amended to read as follows:
                    ``(C) the area for which the project is to be 
                undertaken has an approved investment strategy as 
                provided by section 402 and such project is consistent 
                with such strategy; and''.
            (2) Title ii.--Paragraph (5) of section 201(a) of such Act 
        (42 U.S.C. 3141(a)) is amended to read as follows:
            ``(5) such area has an approved investment strategy as 
        provided by section 402 and the project for which financial 
        assistance is sought is consistent with such strategy.''.
            (3) Title iii.--Section 302(a) of such Act (42 U.S.C. 
        3151a(a)) is amended--
                    (A) in the 4th sentence by striking ``overall State 
                economic development plan'' and inserting ``State 
                investment strategy'';
                    (B) in the 5th sentence--
                            (i) by striking ``plan'' each place it 
                        appears and inserting ``strategy''; and
                            (ii) by striking ``plans'' each place it 
                        appears and inserting ``strategies''; and
                    (C) in the 6th sentence by striking ``Any overall 
                State economic development planning'' and inserting 
                ``Development of any State investment strategy''.
            (4) Title iv.--Section 403 of such Act (42 U.S.C. 3171) is 
        amended--
                    (A) in each of subsections (a)(1)(C), (a)(1)(D), 
                (a)(2)(A), (a)(3)(A), (a)(4)(B), and (e) by striking 
                ``overall economic development program'' and inserting 
                ``investment strategy'';
                    (B) in subsection (a)(1)(D) by striking ``program'' 
                the second place it appears and inserting ``strategy''; 
                and
                    (C) in each of subsections (b) and (b)(2)(B) by 
                striking ``overall economic development programs'' and 
                inserting ``investment strategies''.

SEC. 111. ECONOMIC DEVELOPMENT DISTRICTS.

    (a) Economic Development District Defined.--Section 403(d) of the 
Public Works and Economic Development Act of 1965 (42 U.S.C. 3171(d)) 
is amended by adding at the end the following: ``Such term includes any 
economic development district designated by the Secretary under this 
section before the date of the enactment of the Economic Development 
Reauthorization Act of 1994.''.
    (b) Funding.--Section 403(g) of such Act (42 U.S.C. 3171(g)) is 
amended to read as follows:
    ``(g) Funding.--Amounts authorized to be appropriated under other 
sections of this Act shall be available for purposes of carrying out 
subsections (a)(3) and (a)(4).''.
    (c) Repeal.--Section 403 of such Act (42 U.S.C. 3162) is amended by 
striking subsections (h) and (i) and redesignating subsection (j) as 
subsection (h).
    (d) Unemployment Rate Determinations.--Title IV of such Act (42 
U.S.C. 3161-3173) is amended by striking part D.

SEC. 112. ADMINISTRATION.

    (a) In General.--Section 601 of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3201) is amended to read as follows:

``SEC. 601. APPOINTMENT OF ASSISTANT SECRETARY OF COMMERCE FOR ECONOMIC 
              DEVELOPMENT; COMPENSATION.

    ``(a) Administration of Act.--The Secretary shall, with the 
assistance of an Assistant Secretary of Commerce, administer this Act.
    ``(b) Appointment of Assistant Secretary.--
            ``(1) In general.--The Assistant Secretary whose position 
        is established under subsection (a) shall be appointed by the 
        President, by and with the advice and consent of the Senate.
            ``(2) Duties.--The Assistant Secretary appointed under 
        paragraph (1) shall perform such functions as the Secretary may 
        prescribe.''.
    (b) Advisory Committee on Regional Economic Development.--Title VI 
of such Act (33 U.S.C. 3201-3204) is amended by striking section 602 
and redesignating sections 603 and 604 as sections 602 and 603, 
respectively.

SEC. 113. EXPEDITED PROCESSING OF APPLICATIONS.

    Title VI of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3201-3204) is amended by adding at the end the following:

``SEC. 604. EXPEDITED PROCESSING OF APPLICATIONS.

    ``(a) Guidelines.--Not later than 60 days after the date of the 
enactment of this section, the Assistant Secretary for Economic 
Development shall--
            ``(1) publish guidelines to expedite the processing of 
        applications for assistance under this Act; and
            ``(2) transmit to Congress a report containing such 
        guidelines.
    ``(b) Contents.--Guidelines to be published under subsection (a) 
shall, at a minimum, provide for the following:
            ``(1) Increased reliance on self-certification by 
        applicants to establish compliance with other Federal laws.
            ``(2) Greater use of uniform application forms and 
        procedures.
            ``(3) Delegation of decisionmaking authority to regional 
        offices.
            ``(4) Reduction in the time and number of reviews conducted 
        by other offices of the Department of Commerce.''.

SEC. 114. UNIFORM APPLICATION FORM.

    Title VI of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3201-3204) is further amended by adding at the end the 
following:

``SEC. 605. UNIFORM APPLICATION FORM.

    ``(a) Development.--The Secretary shall, in cooperation with the 
heads of appropriate Federal departments and agencies, develop a 
general, simplified application form for grant assistance under this 
Act which may be used by all Federal departments and agencies which 
provide grant assistance.
    ``(b) Report.--Not later than 6 months after the date of the 
enactment of this section, the Secretary shall transmit to Congress a 
report on use of the form developed pursuant to subsection (a) by 
Federal departments and agencies.''.

SEC. 115. STUDY OF GRANT SELECTION CRITERIA.

    Title VI of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3201-3204) is further amended by adding at the end the 
following:

``SEC. 606. STUDY OF GRANT SELECTION CRITERIA.

    ``(a) Development of Method.--The Secretary shall develop 
recommendations for prioritizing applications and awarding funding for 
projects under this Act based on the relative needs of eligible areas 
and the capacity of an applicant to carry out a project, including the 
ability of the applicant to leverage or attract funding from the 
private sector and to coordinate or create partnerships with other 
eligible recipients.
    ``(b) Consideration.--In developing a method under subsection (a), 
the Secretary shall consider the different objectives of each title of 
this Act.
    ``(c) Report to Congress.--Not later than 1 year after the date of 
the enactment of this section, the Secretary shall transmit to Congress 
a report containing recommendations developed under subsection (a).''.

SEC. 116. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

    Title VI of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3201-3204) is further amended by adding at the end the 
following:

``SEC. 607. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

    ``(a) In General.--At least once every 2 years, the Secretary shall 
conduct an evaluation of each university center and economic 
development district receiving grant assistance under this Act to 
assess the recipient's performance and contribution toward job 
creation.
    ``(b) Criteria.--
            ``(1) Establishment.--The Secretary shall establish 
        criteria for use in conducting evaluations under subsection 
        (a).
            ``(2) Criteria for university centers.--The criteria for 
        evaluation of a university center shall, at a minimum, provide 
        for an assessment of the center's contribution to providing 
        technical assistance, conducting applied research, and 
        disseminating results of the center's activities.
            ``(3) Criteria for economic development districts.--The 
        criteria for evaluation of an economic development district 
        shall, at a minimum, provide for an assessment of management 
        standards, financial accountability, and program performance.
    ``(c) Peer Review.--In conducting an evaluation of a university 
center under subsection (a), the Secretary shall provide for the 
participation of at least one other university center on a cost-
reimbursement basis.''.

SEC. 117. STUDY OF GUARANTEED LOAN PROGRAM.

    Title VI of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3241-3245) is further amended by adding at the end the 
following:

``SEC. 608. STUDY OF INNOVATIVE ECONOMIC DEVELOPMENT FINANCING TOOLS.

    ``(a) Study.--The Secretary shall conduct a study of innovative 
economic development financing tools, including a guaranteed loan 
program and an equity financing program.
    ``(b) Conduct.--In conducting the study under subsection (a), the 
Secretary shall identify the credit gap which would be addressed by the 
programs referred to in subsection (a), methods to avoid the mistakes 
of previous guaranteed loan programs carried out by the Economic 
Development Administration, and an expected subsidy rate to be 
implemented under such programs.
    ``(c) Report to Congress.--Not later than 1 year after the date of 
the enactment of this section, the Secretary shall transmit to Congress 
a report on the results of the study conducted under this section, 
together with recommendations on whether the programs referred to in 
subsection (a) should be authorized as part of this Act.''.

SEC. 118. MISCELLANEOUS.

    (a) Powers of the Secretary.--Section 701 of the Public Works and 
Economic Development Act of 1965 (42 U.S.C. 3211) is amended--
            (1) in paragraph (4)--
                    (A) by striking ``loans'' the first place it 
                appears and inserting ``grants or loans''; and
                    (B) by striking ``loans'' the second place it 
                appears and inserting ``grants, loans,'';
            (2) in paragraph (6) by striking ``loans'' and inserting 
        ``grants or loans'';
            (3) in paragraph (7) by striking ``loans'' each place it 
        appears and inserting ``grants or loans''; and
            (4) in paragraph (10)--
                    (A) by striking ``section 15 of the Administrative 
                Expenses Act of 1946 (5 U.S.C. 55a).'' and inserting 
                ``section 3109 of title 5, United States Code,''; and
                    (B) by striking ``section 5 of such Act (5 U.S.C. 
                73b-2)'' and inserting ``section 5703 of title 5, 
                United States Code,''.
    (b) Unfair Competition; Savings Provisions.--Title VII of such Act 
(42 U.S.C. 3211-3225) is amended by striking sections 702 and 703 and 
redesignating sections 704 through 714 as sections 702 through 712, 
respectively.
    (c) Transfer of Functions.--Section 702 of such Act, as 
redesignated by subsection (b) of this section, is amended--
            (1) in the heading to such section by striking ``,effective 
        date, and limitations on assistance'' and inserting ``of area 
        redevelopment administration'';
            (2) by striking ``(a) The'' and inserting ``The''; and
            (3) by striking subsections (b) through (e).
    (d) Use of Other Facilities.--Section 706 of such Act, as 
redesignated by subsection (b) of this section, is amended by adding at 
the end the following new subsection:
    ``(d) Funds Transferred From Other Departments and Agencies.--In 
order to carry out the objectives of this Act, the Secretary may accept 
transfers of funds from other departments and agencies of the Federal 
Government if the funds are used for the purposes for which (and in 
accordance with the terms under which) the funds are specifically 
authorized and appropriated. Such transferred funds shall remain 
available until expended and may be transferred to and merged with the 
appropriations under the heading `salaries and expenses' by the 
Secretary to the extent necessary to administer the program.''.
    (f) Authorization of Appropriations.--Section 707 of such Act, as 
redesignated by subsection (b) of this section, is amended by striking 
``$25,000,000 for the fiscal year ending September 30, 1992'' and 
inserting ``$36,000,000 for the fiscal year ending September 30, 
1995''.
    (g) Penalties.--Section 708 of such Act, as redesignated by 
subsection (b) of this section, is amended--
            (1) in subsection (a)--
                    (A) by striking ``himself'' and inserting ``such 
                person''; and
                    (B) by striking ``shall be punished by'' and all 
                that follows before the period and inserting ``shall be 
                fined under title 18, United States Code, imprisoned 
                for not more than 5 years, or both''; and
            (2) in subsection (b)--
                    (A) by striking ``him'' both places it appears and 
                inserting ``such person''; and
                    (B) by striking ``shall be punished by'' and all 
                that follows before the period and inserting ``shall be 
                fined under title 18, United States Code, imprisoned 
                for not more than 5 years, or both''.
    (h) Rate of Wages.--Section 710 of such Act, as redesignated by 
subsection (b) of this section, is amended--
            (1) in the 1st sentence by striking ``the Davis-Bacon Act, 
        as amended (40 U.S.C. 276a-276a-5)'' and inserting ``the Act of 
        March 3, 1931, known as the Davis-Bacon Act''; and
            (2) in the 3d sentence by striking ``Reorganization Plan'' 
        and all that follows before the period and inserting 
        ``Reorganization Plan Numbered 14 of 1950 and section 2 of the 
        Act of June 13, 1934 (Chapter 482; 48 Stat. 948)''.
    (i) Area Redevelopment Act.--Title VII of such Act (42 U.S.C. 3211-
3225) is amended by striking section 715 and redesignating section 716 
as section 713.

SEC. 119. ACCEPTANCE OF APPLICANTS' CERTIFICATIONS.

    Title VII of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3211-3226) is further amended by adding at the end the 
following:

``SEC. 714. ACCEPTANCE OF APPLICANTS' CERTIFICATIONS.

    ``The Secretary may accept, when deemed appropriate, the 
applicants' certifications to meet the requirements of this Act.''.

SEC. 120. SUPERVISION OF REGIONAL COUNSELS.

    Title VII of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3211-3226) is further amended by adding at the end the 
following:

``SEC. 715. SUPERVISION OF REGIONAL COUNSELS.

    ``The Secretary shall take such actions as may be necessary to 
ensure that individuals serving as Regional Counsels of the Economic 
Development Administration report directly to their respective Regional 
Director.''.

SEC. 121. ECONOMIC RECOVERY FOR DISASTER AREAS.

    Title VIII of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3231-3236) is repealed.

SEC. 122. SPECIAL ECONOMIC DEVELOPMENT AND ADJUSTMENT ASSISTANCE.

    (a) Eligible Recipient Defined.--Section 902 of the Public Works 
and Economic Development Act of 1965 (42 U.S.C. 3242) is amended--
            (1) by striking ``, or'' and inserting ``or''; and
            (2) by inserting before the period at the end the 
        following: ``, or at the discretion of the Secretary a public 
        or private nonprofit organization or association''.
    (b) Grant Authority.--Section 903(a)(1) of such Act (42 U.S.C. 
3243(a)(1)) is amended by striking ``unemployment compensation (in 
accordance with subsection (d) of this section), rent supplements, 
mortgage payment assistance, research, technical assistance,'' and 
inserting ``administrative expenses, industrial retention,''.
    (c) Grants for Unemployment Compensation.--Section 903(a)(2) of 
such Act (42 U.S.C. 3243(a)(2)) is amended--
            (1) by striking ``(2)(A) Such grants'' and inserting ``(2) 
        Such grants''; and
            (2) by striking subparagraph (B).
    (d) Coordination of Activities.--Section 903(c) of such Act (42 
U.S.C. 3243(c)) is amended by striking ``regional commissions'' and 
inserting ``other Federal programs''.
    (e) Transfer of Funds to Secretary of Labor.--Section 903 of such 
Act (42 U.S.C. 3243) is amended by striking subsection (d).
    (f) Base Closings and Realignments.--Section 903 of such Act (42 
U.S.C. 3243) is amended by adding at the end the following new 
subsection:
    ``(d) Base Closings and Realignments.--
            ``(1) Location of projects.--In any case in which the 
        Secretary determines a need for assistance under subsection (a) 
        due to the closure or realignment of a military installation, 
        the Secretary may make such assistance available for projects 
        to be carried out on the military installation and for projects 
        to be carried out in communities adversely affected by the 
        closure or realignment.
            ``(2) Interest in property.--Notwithstanding any other 
        provision of law, the Secretary may provide to an eligible 
        recipient any assistance available under this Act for a project 
        to be carried out on a military installation that is closed or 
        scheduled for closure or realignment without requiring that the 
        eligible recipient have title to the property or a leasehold 
        interest in the property for any specified term.''.

SEC. 123. TREATMENT OF REVOLVING LOAN FUNDS.

    Title IX of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3241-3245) is amended--
            (1) by redesignating section 905 as section 909; and
            (2) by inserting after section 904 the following:

``SEC. 905. TREATMENT OF REVOLVING LOAN FUNDS.

    ``(a) In General.--Amounts from grants under this title which are 
used by an eligible recipient to establish a revolving loan fund shall 
not be treated, except as provided by subsection (b), as amounts 
derived from Federal funds for the purposes of any Federal law after 
such amounts are loaned from the fund to a borrower and repaid to the 
fund.
    ``(b) Exceptions.--Amounts described in subsection (a) which are 
loaned from a revolving loan fund to a borrower and repaid to the 
fund--
            ``(1) may only be used for projects which are consistent 
        with the purposes of this title; and
            ``(2) shall be subject to the financial management, 
        accounting, reporting, and auditing standards which were 
        originally applicable to such amounts.
    ``(c) Regulations.--Not later than 30 days after the date of the 
enactment of this section, the Secretary shall issue regulations to 
carry out subsection (a).
    ``(d) Public Review and Comment.--Before issuing any final 
guidelines or administrative manuals governing the operation of 
revolving loan funds established using amounts from grants under this 
title, the Secretary shall provide reasonable opportunity for public 
review of and comment on such guidelines and administrative manuals.''.

SEC. 124. OUTREACH TO COMMUNITIES ADVERSELY AFFECTED BY DEFENSE BASE 
              CLOSURES.

    Title IX of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3241-3245) is further amended by adding at the end the 
following:

``SEC. 906. OUTREACH TO COMMUNITIES ADVERSELY AFFECTED BY DEFENSE BASE 
              CLOSURES.

    ``(a) Designation of Agency Representatives.--The Assistant 
Secretary for Economic Development shall designate for each State in 
which communities are adversely affected by defense base closures an 
individual to serve as a representative of the Economic Development 
Administration. Such individual may be the State Economic Development 
Agency Representative or another qualified individual.
    ``(b) Responsibilities.--Individuals appointed as agency 
representatives under subsection (a) shall provide outreach and 
technical assistance to communities adversely affected by defense base 
closures on obtaining assistance from the Economic Development 
Administration.''.

SEC. 125. SALE OF FINANCIAL INSTRUMENTS IN REVOLVING LOAN FUNDS.

    Title IX of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3241-3245) is further amended by adding at the end the 
following:

``SEC. 907. SALE OF FINANCIAL INSTRUMENTS IN REVOLVING LOAN FUNDS.

    ``Any loan, loan guarantee, equity, or other financial instrument 
in the portfolio of a Revolving Loan Fund may be sold, at the 
discretion of the grantee of the Fund, to a third party provided that 
the proceeds of the sale--
            ``(1) shall be deposited in the Fund and only used for 
        projects which are consistent with the purposes of this title, 
        and
            ``(2) shall be subject to the financial management, 
        accounting, reporting, and auditing standards which were 
        originally applicable to the financial instrument.''.

SEC. 126. ECONOMIC DEVELOPMENT CHALLENGE GRANTS DEMONSTRATION PROJECT.

    Title IX of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3241-3245) is further amended by adding at the end the 
following:

``SEC. 908. ECONOMIC DEVELOPMENT CHALLENGE GRANTS DEMONSTRATION 
              PROJECT.

    ``(a) In General.--In order to study the feasibility and 
desirability of using challenge grants to generate new pools of 
investment capital in areas suffering from long-term economic 
deterioration, the Secretary shall establish a 2-year demonstration 
project under which the Secretary shall provide grants to selected 
recipients, to be matched by the recipients 1 dollar for every 2 
Federal dollars, for the purpose of establishing substantially 
leveraged financing for business development and other innovative 
economic development efforts.
    ``(b) Federal and Community Contributions.--
            ``(1) In general.--The Secretary shall grant 2 dollars for 
        every 1 dollar raised by each selected recipient, up to 
        $10,000,000 per year per selected recipient.
            ``(2) Use of other federal funds in conjunction with 
        challenge grant.--Funds from other Federal programs may be used 
        in conjunction or merged with the challenge grant and matching 
        funds to form a larger investment fund.
    ``(c) Establishment and Use of Funds.--
            ``(1) Establishment.--For purposes of this Act, an 
        investment fund established by a selected recipient consists 
        of--
                    ``(A) the economic development challenge grant 
                received by the selected recipient;
                    ``(B) the matching funds required under subsection 
                (b); and
                    ``(C) any such other funds that may be derived from 
                other sources, including other Federal funds.
            ``(2) Use.--An investment fund shall be used by the 
        selected recipients for the purposes of generating long-term 
        sustainable economic development and job growth in areas 
        identified by the selected recipients, pursuant to the 
        requirements and limitations of eligibility and performance in 
        subsections (d), (e), (f), (g) and (h).
    ``(d) Eligible Recipients.--The Secretary shall make grants to any 
eligible recipients for use in an area which must meet 1 or more of the 
following criteria:
            ``(1) The area has a per capita income of 80 percent or 
        less of the national average.
            ``(2) The area has an unemployment rate 1 percent above the 
        national average percentage for the more recent 24-month period 
        for which statistics are available.
            ``(3) The area has been determined by the Secretary to have 
        at least 1 of the following conditions:
                    ``(A) A large concentration of low-income persons 
                (as defined in section 401(e)).
                    ``(B) Areas having substantial outmigration.
                    ``(C) Substantial underemployment or unemployment.
An eligible recipient may include any local government or group of 
local governments, economic development district, Indian tribe, public 
or private nonprofit organization or association, community-based 
organization, business or worker organization, or any consortium of 
such entities, that is able to demonstrate to the satisfaction of the 
Secretary that they can carry out the objectives of this program 
pursuant to the criteria and requirements established in this section.
    ``(e) Selection of Demonstration Projects.--
            ``(1) In general.--The Secretary shall make grants to 
        selected recipients from 3 areas suffering from long-term 
        economic distress.
            ``(2) Distribution.--One selected recipient shall be from a 
        rural area which has been subjected to long-term economic 
        distress as a result of a major decline in the region's key 
        industries, 1 from an area that is a combination of rural, 
        small metropolitan, and suburban communities, and 1 from an 
        urban area with excessive unemployment, concentrated poverty, 
        and high crime.
            ``(3) Industrial retention strategy requirement.--Of the 3 
        recipients described in paragraph (2), at least 1 of the 
        projects selected shall include an industrial retention 
        strategy. The selected recipient from a rural area shall not be 
        required to have an industrial retention strategy.
    ``(f) Grant Selection Process.--
            ``(1) National competition.--The Secretary shall select 
        recipients of the challenge grants through a nationally 
        competitive process.
            ``(2) Eligibility requirement.--Each selected recipient 
        must submit a comprehensive strategy for generating sustained, 
        long-term economic growth and for both preserving and creating 
        high-quality jobs.
            ``(3) Preference for certain projects.--The Secretary shall 
        give preference to eligible recipients which--
                    ``(A) utilize the Federal grant plus matching funds 
                to further leverage private and public capital to 
                create an even larger economic development investment 
                fund;
                    ``(B) represent consortia or partnerships comprised 
                of at least 2 or more of the groups identified in 
                subsection (d); or
                    ``(C) intend to use their investment funds to 
                finance or leverage financing for new business 
                development and startups, industrial services, 
                industrial modernization of local-based firms or 
                industrial retention (including employee stock 
                ownership plans and worker or management buyouts), or 
                other economic development strategies that illustrate 
                `best practices' in economic development.
            ``(4) Broad-based participation to be encouraged.--The 
        Secretary shall strongly encourage broad-based participation of 
        public and private entities within an area in the development 
        and implementation of the challenge grant proposals submitted 
        by eligible recipients.
    ``(g) Limitations.--The investment funds established by the 
selected recipients shall--
            ``(1) not be used to permit units of State and local 
        government to offer tax inducements to attract businesses to 
        locate in the area; and
            ``(2) be subject to the same conditions described in 
        section 202(b)(1).
No area may receive an economic development challenge grant if it has 
been designated an empowerment or enterprise community under section 
13301 of the Omnibus Budget Reconciliation Act of 1993.
    ``(h) Performance Evaluations; Report to Congress.--
            ``(1) Evaluation of effectiveness.--The Secretary shall 
        conduct performance evaluations of the demonstration challenge 
        grant project to assess the effectiveness of this kind of 
        program in generating sustained economic growth and job 
        creation in areas of the Nation experiencing long-term economic 
        distress.
            ``(2) Report.--Based on the evaluations conducted pursuant 
        to paragraph (1), the Secretary shall submit an annual report 
        to Congress with recommendations for expansion, modification or 
        termination of the program.
    ``(i) Authorization of Appropriations.--Of the funds authorized to 
be appropriated under section 909, there are authorized to be 
appropriated $25,000,000 per fiscal year for fiscal years 1995 and 1996 
to carry out this section. Such sums shall remain available until 
expended.''.

SEC. 127. AUTHORIZATION OF APPROPRIATIONS.

    Section 909 of the Public Works and Economic Development Act of 
1965, as redesignated by section 122 of this Act, is amended to read as 
follows:

``SEC. 909. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There is authorized to be appropriated to carry 
out this title $115,542,000 for fiscal year 1994 and $81,000,000 per 
fiscal year for each of fiscal years 1995 and 1996. Such sums shall 
remain available until expended.
    ``(b) Set-Aside for Defense Conversion Activities.--Of amounts 
appropriated pursuant to subsection (a) for fiscal year 1994, not less 
than $80,000,000 shall be available for purposes of assisting eligible 
recipients in activities related to defense conversion.
    ``(c) Additional Amounts.--In addition to the appropriations 
authorized by subsection (a), there are authorized to be appropriated 
to carry out this title such sums as may be necessary to provide 
assistance for defense conversion activities and to provide assistance 
in the case of a natural disaster. Such sums shall remain available 
until expended.''.

SEC. 128. REFERENCES TO THE SECRETARY.

    (a) References to ``He''.--The Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3121 et seq.) is amended by striking 
``he'' and inserting ``the Secretary'' in each of the following:
            (1) Section 101(a)(1).
            (2) The 4th sentence of section 101(c).
            (3) Section 201(a).
            (4) Section 202(b)(5).
            (5) Section 202(b)(9)(B).
            (6) The 1st sentence of section 301(b).
            (7) Section 602(b), as redesignated by section 112(b) of 
        this Act.
            (8) Section 701(2).
            (9) Section 701(4).
            (10) Section 701(12)
            (11) Section 706, as redesignated by section 117(b) of this 
        Act.
    (b) References to ``His''.--Such Act is further amended by striking 
``his'' and inserting ``the Secretary's'' in each of the following:
            (1) The 3d and 4th sentences of section 301(a).
            (2) Section 701(4).
            (3) Section 705, as redesignated by section 117(b) of this 
        Act.
            (4) Section 903(c).
    (c) References to ``Him''.--Such Act is further amended by striking 
``him'' and inserting ``the Secretary'' in each of the following:
            (1) Section 602(b), as redesignated by section 112(b) of 
        this Act.
            (2) Section 701(4) each place it appears.
            (3) Section 701(6).
            (4) Section 701(7) both places it appears.
            (5) Section 701(9) both places it appears.
    (d) Other References.--Such Act is further amended--
            (1) in section 701 in the matter preceding paragraph (1) by 
        striking ``his duties'' and inserting ``the duties of the 
        Secretary'';
            (2) in section 701(4) by striking ``he shall determine'' 
        and inserting ``the Secretary determines'';
            (3) in section 701(6) by striking ``he shall determine'' 
        and inserting ``the Secretary shall determine''; and
            (4) in section 701(11) by striking ``his property'' and all 
        that follows before the semicolon and inserting ``the 
        Secretary's property''.

SEC. 129. COMPLIANCE WITH BUY AMERICAN ACT.

    None of the funds made available under this title, or any amendment 
made by this title, may be expended in violation of sections 2 through 
4 of the Act of March 3, 1933 (41 U.S.C. 10a-10c; popularly known as 
the ``Buy American Act''), which are applicable to those funds. The 
Secretary of Commerce shall provide to each recipient of such funds 
notice of the requirements specified in this section and information on 
methods to comply with such requirements.

SEC. 130. REGULATORY RELIEF.

    The Administrator shall, upon petition from an entity impacted 
adversely by Federal regulations on matters of economic development as 
described in this Act, notify the departments and agencies involved 
with promulgating and administering those regulations and suggest to 
those departments and agencies that regulations be waived which 
interfere with economic development. Nothing in this section shall 
affect the ability of the Administrator to carry out his duties 
otherwise provided by law.

               TITLE II--APPALACHIAN REGIONAL DEVELOPMENT

SEC. 201. FINDINGS AND PURPOSES.

    Section 2 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App. 2) is amended--
            (1) in subsection (a) by striking the period at the end of 
        the 6th sentence and inserting ``and in severely distressed and 
        underdeveloped counties and areas lacking resources for basic 
        services.''; and
            (2) by adding at the end the following new subsection:
    ``(c) The Congress further finds and declares that, while 
substantial progress has been made in fulfilling many of the objectives 
of this Act, rapidly changing national and global economics over the 
past decade have created new problems and challenges for rural areas 
throughout the Nation and especially for the Appalachian region. Thus, 
the problems of the region are not only to provide the infrastructure 
necessary to economic and human resource development, to develop its 
industry, and to generate a diversified regional economy, but to make 
the region's industrial and commercial resources more competitive in 
national and world markets. It is, therefore, also the purpose of this 
Act to provide a framework for coordinating Federal, State, and local 
initiatives to respond to the economic competitive challenge through 
improving the skills of the region's manpower, adapting and applying 
new technologies for the region's businesses, and improving the access 
of the region's businesses to the technical and financial resources 
necessary to their development while continuing to address the need to 
provide basic services for the more disadvantaged areas of the region 
so as to provide a fairer opportunity for the people of the region to 
share the quality of life generally enjoyed by citizens across this 
Nation.''.

SEC. 202. MEETINGS.

    Section 101 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App. 101) is amended--
            (1) in subsection (a) by adding at the end the following:
``The Commission shall conduct at least one meeting each year with the 
presence of the Federal Cochairman and at least a majority of the State 
members. The Commission may conduct such additional meetings by 
electronic means as the Commission considers advisable.'';
            (2) at the end of the third sentence of subsection (b) by 
        striking ``present''; and
            (3) at the end of the fourth sentence of subsection (c) by 
        striking ``to be present''.

SEC. 203. AUTHORIZATIONS FOR ADMINISTRATIVE EXPENSES.

    Section 105(b) of the Appalachian Regional Development Act of 1965 
(40 U.S.C. App. 105(b)) is amended to read as follows:
    ``(b) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section $3,400,000 for fiscal year 1994 and 
        $3,600,000 per fiscal year for each of fiscal years 1995 and 
        1996. Such sums shall remain available until expended.
            ``(2) Expenses of federal cochairman.--Of amounts 
        appropriated pursuant to paragraph (1), not to exceed 
        $1,102,000 for fiscal year 1994 and not to exceed $1,500,000 
        per fiscal year for each of fiscal years 1995 and 1996 shall be 
        available for expenses of the Federal Cochairman, the Federal 
        Cochairman's alternate, and the Federal Cochairman's staff.''.

SEC. 204. EXTENSION OF LEASE TERMS.

    Section 106(7) of the Appalachian Regional Development Act of 1965 
(40 U.S.C. App. 106(7)) is amended by striking ``1982'' and inserting 
``1996''.

SEC. 205. HIGHWAY SYSTEM.

    (a) Authorization of Appropriations.--Section 201(g) of the 
Appalachian Regional Development Act of 1965 (40 U.S.C. App. 201(g)) is 
amended to read as follows:
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $160,000,000 for fiscal year 
1994, $100,000,000 for each of fiscal years 1995 and 1996, and such 
additional sums as may be necessary for each of fiscal years 1995 and 
1996. Such sums shall remain available until expended.''.
    (b) Federal Share.--
            (1) General rule.--Section 201(h)(1) of such Act (40 U.S.C. 
        App. 201(h)(1)) is amended by striking ``70 per centum'' and 
        inserting ``80 percent''.
            (2) Applicability.--The amendment made by paragraph (1) 
        shall apply to projects approved after March 31, 1979.

SEC. 206. SUPPLEMENTS TO FEDERAL GRANT-IN-AID PROGRAMS.

    (a) Availability of Amounts.--The first sentence of section 214(a) 
of the Appalachian Regional Development Act of 1965 (40 U.S.C. App. 
214(a)) is amended by striking ``the President is authorized to provide 
funds to the Federal Cochairman to be used'' and inserting ``the 
Federal Cochairman may use amounts made available under this section''.
    (b) Federal Grant-in-Aid Programs Defined.--The first sentence of 
section 214(c) of such Act (40 U.S.C. App. 214(c)) is amended by 
striking ``on or before December 31, 1980,''.
    (c) Limitation on Covered Road Projects.--The second sentence of 
section 214(c) of such Act is amended by inserting ``authorized by 
title 23, United States Code'' after ``road construction''.

SEC. 207. PROGRAM DEVELOPMENT CRITERIA.

    (a) Considerations.--Section 224(a) of the Appalachian Regional 
Development Act of 1965 (40 U.S.C. App. 224(a)) is amended by inserting 
before the semicolon at the end of paragraph (1) the following: ``or in 
a severely distressed and underdeveloped county or area lacking 
resources for basic services''.
    (b) Removal of Limitations.--Section 224(b) of such Act (40 U.S.C. 
App. 224(b)) is amended to read as follows:
    ``(b) Limitation.--No financial assistance shall be authorized 
under this Act to be used to assist establishments relocating from one 
area to another.''.

SEC. 208. GRANTS FOR ADMINISTRATIVE EXPENSES AND DEMONSTRATION 
              PROJECTS.

    (a) Availability of Amounts.--Section 302(a) of the Appalachian 
Regional Development Act of 1965 (40 U.S.C. App. 302(a)) is amended--
            (1) by striking ``The President'' and inserting ``The 
        Commission''; and
            (2) in paragraphs (1), (2), and (3) by striking ``to the 
        Commission'' each place it appears.
    (b) Research and Demonstration Projects.--Section 302(a)(3) of such 
Act (40 U.S.C. App. 302(a)(3)) is amended--
            (1) by inserting after ``technical assistance'' the 
        following: ``(including technical assistance for business 
        development and stabilization and application of technologies 
        (including telecommunication technologies) and productivity 
        improvement)'';
            (2) by inserting after ``training programs'' the following: 
        ``(including on-site employee training and programs to upgrade 
        employability of the region's people)''; and
            (3) by inserting after ``demonstrations'' the following: 
        ``(including demonstrations of service consolidations and other 
        methods of increasing efficiency of local governments, the 
        establishment and operation by States, public agencies, or 
        nonprofit development organizations of revolving funds for 
        business assistance loans, the establishment and operation of 
        business incubators and the provision of industrial facilities 
        and equipment by public agencies and nonprofit organizations on 
        such terms (including terms of reasonable recovery of grant 
        funds upon resale) as are approved by the Commission, and the 
        acquisition and development of land)''.
    (c) Solid Waste Disposal Demonstration Projects.--Section 302(b) of 
such Act (40 U.S.C. App. 302(b)) is amended by adding at the end the 
following new paragraph:
    ``(5) The Commission shall carry out projects at not less than 2 
sites in the Appalachian region for the purpose of demonstrating solid 
waste disposal techniques in rural areas.''.
    (d) Repeal of Provision on Use of Information From Research and 
Development Activities.--Section 302(e) of such Act (40 U.S.C. 302(e)) 
is repealed.

SEC. 209. AUTHORIZATION OF APPROPRIATIONS FOR GENERAL PROGRAM.

Section 401 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App. 401) is amended to read as follows:

``SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

    ``In addition to the appropriations authorized in section 105 for 
administrative expenses and in section 201(g) for the Appalachian 
development highway system and local access roads, there is authorized 
to be appropriated to the Commission to carry out this Act $83,400,000 
per fiscal year for each of fiscal years 1994, 1995, and 1996. Such 
sums shall remain available until expended.''.

SEC. 210. DEFINITION OF APPALACHIAN REGION.

    Section 403 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App. 403) is amended--
            (1) in the 1st undesignated paragraph (relating to Alabama) 
        by inserting ``Hale,;'' after ``Franklin,''; and
            (2) in the 12th undesignated paragraph (relating to 
        Virginia)--
                    (A) by inserting ``Montgomery,'' after ``Lee,''; 
                and
                    (B) by inserting ``Roanoke, Rockbridge,'' after 
                ``Pulaski,''.

SEC. 211. EXTENSION OF TERMINATION DATE.

    Section 405 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App. 405) is amended by striking ``1982'' and inserting 
``1996''.

SEC. 212. REGIONAL DEVELOPMENT TASK FORCE.

    (a) Establishment.--There is established a Regional Development 
Task Force (hereinafter in this section referred to as the ``Task 
Force'').
    (b) Duties.--It shall be the duty of the Task Force to conduct a 
study on--
            (1) the extent to which the unique characteristics of the 
        Appalachian Regional Commission (including the Commission's 
        Federal-State partnership, program flexibility, and regional 
        approach) have contributed to the achievement of the 
        Commission's goals; and
            (2) whether or not such characteristics may be used to 
        address needs which may exist in other rural areas suffering 
        from economic distress, including the Lower Mississippi delta, 
        Mexican border, and Ozark areas.
    (c) Membership.--
            (1) Voting members.--The Task Force shall be composed of 9 
        voting members appointed, not later than 90 days after the date 
        of the enactment of this Act, as follows:
                    (A) Three members appointed by the President.
                    (B) Three members appointed by the President pro 
                tempore of the Senate.
                    (C) Three members appointed by the Speaker of the 
                House of Representatives.
            (2) Ex officio members.--The Federal and State Cochairmen 
        of the Appalachian Regional Commission shall serve as ex 
        officio, nonvoting members of the Task Force.
    (d) Facilities, Supplies, and Personnel.--Upon the request of the 
Task Force, the Appalachian Regional Commission shall provide to the 
Task Force any facilities, supplies, and personnel necessary for the 
Task Force to carry out its responsibilities under this Act; except 
that the total cost of such facilities, supplies, and personnel shall 
not exceed $500,000.
    (e) Use of Other Studies.--In conducting the study under subsection 
(b), the Commission shall incorporate the results of other studies on 
the needs of rural areas described in subsection (b) and shall not 
duplicate such studies.
    (f) Report.--Not later than 9 months after the date of the first 
meeting of the Task Force, the Task Force shall transmit to Congress a 
report on the results of the study conducted under subsection (b).
    (g) Termination.--The Task Force shall terminate on the date of 
transmittal of the report under subsection (f).

SEC. 213. COMPLIANCE WITH BUY AMERICAN ACT.

    None of the funds made available under this title, or any amendment 
made by this title, may be expended in violation of sections 2 through 
4 of the Act of March 3, 1933 (41 U.S.C. 10a-10c; popularly known as 
the ``Buy American Act''), which are applicable to those funds. The 
Appalachian Regional Commission shall provide to each recipient of such 
funds notice of the requirements specified in this section and 
information on methods to comply with such requirements.

               TITLE III--BUSINESS DEVELOPMENT ASSISTANCE

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Economic Growth and Technology 
Commercialization Act of 1994''.

SEC. 302. FINDINGS, PURPOSES, AND DEFINITIONS.

    (a) Findings.--The Congress hereby finds the following:
            (1) Through its support and funding of research and 
        development in this Nation's Federal agencies, laboratories, 
        and educational institutions, the Federal Government has 
        fostered the creation of thousands of technologies, processes, 
        and other proprietary rights owned, or held in whole or part, 
        by the Federal Government.
            (2) If commercialized, these technologies, processes, and 
        other proprietary rights owned, or held in whole or part, by 
        the Federal Government hold the potential to be a significant 
        tool to foster economic growth and to create significant 
        numbers of new jobs at good wages for American workers.
            (3) Throughout the Federal Government, there is no single 
        inventory or source of information on technologies, processes, 
        and other proprietary rights owned, or held in whole or part, 
        by the Federal Government.
            (4) Information on technologies, processes, and other 
        proprietary rights owned, or held in whole or part, by the 
        Federal Government is not standardized in form or content, is 
        separately maintained by numerous Federal agencies and 
        departments, and is not easily accessible by the public.
            (5) Businesses and entrepreneurs in areas in need of 
        economic growth and revitalization are largely unaware of the 
        existence of these technologies, processes, and other 
        proprietary rights and largely unaware of the possibilities for 
        obtaining the rights to these technologies, processes, and 
        other proprietary rights for the purpose of commercialization.
            (6) It is in the economic interest of the United States to 
        facilitate the private sector commercialization of 
        technologies, processes, and other proprietary rights by United 
        States businesses located in areas in need of economic growth 
        and revitalization.
            (7) Greater effectiveness may be achieved through the 
        utilization of the private sector corporate structure and 
        profit incentives in facilitating the commercialization of 
        technologies, processes, and other proprietary rights than can 
        reasonably be expected by the Federal Government performing 
        this function.
    (b) Purposes.--The purposes of this title are as follows:
            (1) To provide assistance to private-sector United States 
        businesses, located in areas in need of economic stabilization 
        and revitalization, to commercialize technologies, processes, 
        and other proprietary rights owned, or held in whole or part, 
        by the Federal Government.
            (2) To create new employment opportunities by facilitating 
        the commercialization of technologies, processes, and other 
        proprietary rights by United States businesses and 
        entrepreneurs in areas in need of economic growth and 
        revitalization.
            (3) To develop a single, comprehensive data base of 
        information on technologies, processes, and other proprietary 
        rights owned, or held in whole or part, by the Federal 
        Government, which is standardized and easily accessible.
            (4) To heighten the awareness of United States businesses 
        and entrepreneurs of the availability for commercialization of 
        technologies, processes, and other proprietary rights owned, or 
        held in whole or part, by the Federal Government.
    (c) Definitions.--For purposes of this title, the following 
definitions shall apply:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (2) Corporation.--The term ``Corporation'' means the 
        Business Development and Technology Commercialization 
        Corporation established under this title.
            (3) Board.--The term ``Board'' means the Board of Directors 
        of the Business Development and Technology Commercialization 
        Corporation.
            (4) Qualified concern.--The term ``qualified concern'' 
        means a United States-based consortium, a private United States 
        business, or an educational institution participating in a 
        joint project with 1 or more private United States businesses, 
        for the development and commercialization of technologies, 
        processes, and other proprietary rights--
                    (A) owned or held in whole or part by Federal 
                departments, agencies, or government-controlled 
                corporations;
                    (B) developed in Federal laboratories;
                    (C) arising in the course of federally funded 
                research at educational institutions, other units of 
                government, or with private concerns; or
                    (D) which are made available to the Federal 
                Government by private concerns.

SEC. 303. CONSOLIDATION OF INFORMATION ON TECHNOLOGIES.

    (a) Establishment of Data.--The Secretary shall establish and 
maintain an integrated, comprehensive data base describing all 
technologies, processes, and other proprietary rights owned, or held in 
whole or part, by the Federal Government, or which originated in the 
course of federally funded research in which the Federal Government has 
an interest.
    (b) Standardization and Accessibility of Information.--The 
Secretary shall take such steps as are necessary to ensure that the 
information contained in the data base established under subsection (a) 
is in a standardized form, is accessible and usable in a manner as 
simple and easy to use as possible, recognizing the needs of small- and 
medium-sized businesses.
    (c) Responsibilities.--In carrying out this section, the Secretary 
shall--
            (1) consult with and, to the extent practicable, utilize 
        the capabilities of other executive agencies, as appropriate, 
        to ensure the efficient and effective implementation of this 
        section; and
            (2) explore, with other executive agencies, ways to avoid 
        duplication of effort by consolidating the administration of 
        the program established by this section with any other similar 
        Federal program, and as part of such consolidation may delegate 
        administrative functions, as necessary and appropriate, to 
        another executive agency.
    (d) Other Federal Agencies.--Other executive agencies shall provide 
such information, and in such form, as determined by the Secretary and 
shall cooperate with the Secretary in carrying out this section.
    (e) Access to the Data Base.--
            (1) Access to the data base by the corporation.--Except as 
        provided in paragraph (3), the Secretary shall provide 
        unlimited access to the data base established under this 
        section to the Business Development and Technology 
        Commercialization Corporation established under this part, 
        without fee, to assist the Corporation in meeting its 
        responsibilities under this part.
            (2) Access to the data base by the public.--Except as 
        provided in paragraph (3), the Secretary shall, by regulation, 
        develop and implement procedures providing for access to the 
        data base established under this section to members of the 
        general public.
            (3) Restrictions.--If, in consultation with the heads of 
        other executive agencies, the Secretary determines that access 
        by the Corporation or any other person to information contained 
        in the data base established under this section would--
                    (A) threaten national security;
                    (B) violate the proprietary rights of any private 
                interest; or
                    (C) be otherwise inappropriate,
        the Secretary shall take such steps as the Secretary may 
        determine to be appropriate to limit access to the information 
        in the data base described in subparagraph (A), (B), or (C) to 
        the Corporation or any other person.
    (f) GAO Review of Current Federal Technology Utilization and 
Commercialization Efforts.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct a review of all technology utilization and 
        commercialization activities within all Federal departments, 
        agencies, and laboratories, or which are otherwise supported by 
        Federal funds. This review shall identify those activities 
        which may overlap or duplicate the technology utilization and 
        commercialization activities provided for under this title.
            (2) Reports.--Before the end of the 1-year period beginning 
        on the date of the enactment of this Act, the Comptroller 
        General shall issue a report to the Congress describing in 
        detail--
                    (A) the findings of the review directed under 
                paragraph (1),
                    (B) the funding levels of each existing Federal 
                technology utilization and commercialization 
                activities, and
                    (C) recommendations for the modification or 
                elimination of any existing Federal technology 
                utilization and commercialization activities which the 
                Comptroller General finds to be duplicative of the 
                activities provided for under this title.

SEC. 304. BUSINESS DEVELOPMENT AND TECHNOLOGY COMMERCIALIZATION 
              CORPORATION.

    (a) Assessment of Technology Utilization and Commercialization 
Programs of the Federal Government.--
            (1) In general.--The Director of the Office of Science and 
        Technology Policy in the Executive Office of the President 
        shall--
                    (A) assess the performance of technology 
                utilization and commercialization programs of the 
                Federal Government as of the date of the enactment of 
                this Act;
                    (B) evaluate the advantages and disadvantages of a 
                centralized as opposed to a decentralized approach to 
                technology utilization and commercialization; and
                    (C) develop recommendations on ways to improve the 
                technology utilization and commercialization efforts of 
                the Federal Government.
            (2) Report.--The Director of the Office of Science and 
        Technology Policy shall submit a report containing the 
        findings, conclusions, and recommendations of the Director 
        pursuant to paragraph (1) to the President, the Committee on 
        Banking, Finance and Urban Affairs and the Committee on 
        Science, Space, and Technology of the House of Representatives, 
        and the Committee on Commerce, Science, and Transportation of 
        the Senate.
            (3) Consultation.--In carrying out the duties of the 
        Director under paragraph (1), the Director shall consult with 
        interested agencies and department of the Federal Government.
    (b) Improved Integration of Technology Commercialization Programs 
and Federal Programs to Assist Economically Distressed Communities.--
            (1) In general.--The Secretary shall identify ways to 
        promote more effective integration of Federal policies and 
        programs relating to technology utilization and 
        commercialization with Federal policies and programs for 
        assisting economically distressed communities establish stable 
        and diversified local economies.
            (2) Report.--The Secretary shall submit a report containing 
        any findings, conclusions, and recommendations of the Secretary 
        pursuant to paragraph (1) to the President, the Committee on 
        Banking, Finance and Urban Affairs and the Committee on 
        Science, Space, and Technology of the House of Representatives, 
        and the Committee on Commerce, Science, and Transportation of 
        the Senate.
    (c) Establishment of Corporation.--
            (1) In general.--Not later than the earlier of--
                    (A) the end of the 12-month period beginning on the 
                date of the enactment of this Act; or
                    (B) the end of the 30-day period beginning on the 
                date the report of the Director of the Office of 
                Science and Technology Policy is submitted to the 
                President pursuant to subsection (a)(2),
        the President shall provide for the establishment of a 
        corporation to be known as the ``Business Development and 
        Technology Commercialization Corporation'' (hereafter in this 
        title referred to as the ``Corporation''), unless the 
        President, after consideration of such report, makes a finding 
        that the establishment of the Corporation would impair the 
        operation of the Federal policies and programs relating to 
        technology utilization and commercialization.
            (2) Report to congress.--If the President makes a finding 
        described in paragraph (1) with respect to the establishment of 
        the Corporation, the President shall transmit a report 
        describing the basis for the finding to the Committee on 
        Banking, Finance and Urban Affairs and the Committee on 
        Science, Space, and Technology of the House of Representatives, 
        and the Committee on Commerce, Science, and Transportation of 
        the Senate.
            (3) Purpose.--The Corporation shall be operated for the 
        purpose of fostering economic growth, assisting in the creation 
        of new employment opportunities, and strengthening the 
        industrial base of the United States by facilitating the 
        utilization and commercialization of technologies, processes, 
        and other proprietary rights--
                    (A) owned or held in whole or part by Federal 
                departments, agencies, or government-controlled 
                corporations;
                    (B) developed in Federal laboratories;
                    (C) arising in the course of federally funded 
                research at educational institutions, other units of 
                government, or with private concerns; and
                    (D) which are made available by private concerns.
            (4) Corporation not an establishment of the united 
        states.--The Corporation shall not be an agency or 
        establishment of the United States.
    (d) Process of Organization.--
            (1) Incorporation.--
                    (A) In general.--The Secretary, the Secretary of 
                Labor, and the Administrator of the Small Business 
                Administration shall--
                            (i) provide for the establishment of the 
                        Corporation under the business corporation laws 
                        of such State as the President determines to be 
                        appropriate; and
                            (ii) serve as the incorporators of the 
                        Corporation and as the initial members of the 
                        board of directors of the Corporation until 
                        their successors are elected and qualified.
                    (B) Necessary action authorized.--The incorporators 
                referred to in subparagraph (A) shall take such other 
                actions as may be necessary to establish the 
                Corporation.
                    (C) Review of proposed organization of 
                corporation.--The President shall request the National 
                Academy of Public Administration to--
                            (i) review the proposed organization of the 
                        Corporation to ensure that the organization 
                        plan conforms with sound principles of 
                        administration; and
                            (ii) submit a report to the President in a 
                        timely manner with the Academy's such findings, 
                        conclusions, and recommendations the Academy 
                        may determine to be appropriate.
            (2) Privatization of the corporation.--
                    (A) In general.--Following the establishment of the 
                Corporation, the Corporation shall be converted to 
                private ownership and management in such form and 
                manner as the President determines to be appropriate, 
                after consulting with the Committee on Banking, Finance 
                and Urban Affairs and the Committee on Science, Space, 
                and Technology of the House of Representatives, and the 
                Committee on Commerce, Science, and Transportation of 
                the Senate.
                    (B) Solicitation of proposals for conversion.--The 
                President shall solicit proposals for the conversion of 
                the Corporation to private ownership and management.
            (3) Selection criteria and procedures.--
                    (A) In general.--The President, in consultation 
                with the Secretary, shall make the final selection of a 
                proposal for the conversion of the Corporation to 
                private ownership and management.
                    (B) Criteria for selecting a proposal to recommend 
                to the president.--In selecting a proposal to recommend 
                to the President for the conversion of the Corporation, 
                as described in subparagraph (A), the Secretary shall 
                take into consideration the following factors--
                            (i) the quality of the operational plan;
                            (ii) the soundness of the financing of the 
                        organization and of the operational plan;
                            (iii) the qualifications of, and the 
                        diversity of talents and skills represented by, 
                        the submitters of the proposal, including the 
                        extent to which a combination of organizations 
                        is submitting a joint proposal;
                            (iv) whether a State government, or unit of 
                        a State government, is participating 
                        financially with the organization submitting a 
                        proposal;
                            (v) the intentions of the submitters of the 
                        proposal to locate the headquarters of the 
                        Corporation in an area which is not located in 
                        the 50 largest Metropolitan Statistical Areas, 
                        based on the 1990 Census; and
                            (vi) such other factors as the 
                        incorporators determine to be appropriate in 
                        meeting the purposes of this title.
                    (C) Procedures for selecting a proposal to 
                recommend to the president.--In selecting a proposal to 
                recommend to the President for the conversion of the 
                Corporation, as described in subparagraph (A), the 
                Secretary shall ensure that in the selection process--
                            (i) not less than 3 proposals are 
                        identified as proposals to receive further 
                        consideration, as provided in clauses (ii) and 
                        (iii), except that, if fewer than 3 proposals 
                        are received, each of them shall receive 
                        further consideration;
                            (ii) a review procedure is implemented 
                        under which the sponsors of the proposals 
                        identified in clause (i) are provided an 
                        opportunity to make personal presentations of 
                        their proposals to the Secretary or the 
                        Secretary's designee; and
                            (iii) individual negotiations for the 
                        revision of proposals identified in clause (i) 
                        may be entered into.
            (4) Warrants for participation in gains.--The President 
        may, in connection with any contract or agreement for 
        converting the Corporation to private ownership and contingent 
        on the financial success of the Corporation, retain the right 
        to participate in the financial gains of the Corporation in 
        such amounts as the President may determine to be appropriate, 
        after consulting with the Committee on Banking, Finance and 
        Urban Affairs and the Committee on Science, Space, and 
        Technology of the House of Representatives, and the Committee 
        on Commerce, Science, and Transportation of the Senate.
    (e) Prohibition on Conflicts of Interest.--
            (1) In general.--An officer or employee of the Corporation 
        may not participate in a matter regarding an application, 
        claim, or other matter pending before the Corporation if, to 
        such person's knowledge, the person, the person's spouse, minor 
        child, parent, sibling, or partner, or an organization, other 
        than the Corporation, in which the person is serving as an 
        officer, director, trustee, partner, or employee, or any person 
        with whom the person is negotiating or has any arrangement 
        concerning perspective employment, has a financial interest in 
        the matter.
            (2) Consequence of violation.--An officer or employee who 
        violates this subsection shall be subject to termination, but 
        such a violation shall not impair, nullify, or otherwise affect 
        the validity of any otherwise lawful action by the Corporation 
        in which such officer or employee participated.
    (f) General Powers.--In addition to the usual powers conferred upon 
a corporation under the business corporation laws of the State in which 
the Corporation is incorporated, the Corporation shall have such other 
incidental powers not inconsistent with this section that are necessary 
or appropriate to carry out the purposes and functions of the 
Corporation.
    (g) Promotion of Technologies.--
            (1) Marketing of technologies.--The Corporation shall 
        undertake an aggressive, multifaceted outreach program to 
        increase awareness of the availability of technologies, 
        processes, and other proprietary rights to qualified concerns 
        under this title. This program shall emphasize the use of new 
        information technologies, including the utilization of cable 
        television and the modern electronic media, and the data base 
        established under this title.
            (2) Utilization of cable television.--
                    (A) In general.--In implementing the outreach 
                program provided under paragraph (1), the Corporation 
                shall enter into negotiations for the utilization of 
                cable television for marketing efforts for the 
                commercialization of technologies, processes, and other 
                proprietary rights--
                            (i) owned or held in whole or part by 
                        Federal departments, agencies, or government 
                        controlled corporations;
                            (ii) develop in Federal laboratories;
                            (iii) arising in the course of federally 
                        funded research at educational institutions, 
                        other units of government or with private 
                        concerns; and
                            (iv) which are otherwise made available to 
                        the government by private concerns.
                    (B) Promotional fees.--Under terms negotiated 
                between the Secretary and the Corporation, the 
                Secretary is authorized to make payments to the 
                Corporation for promotional fees for the production of 
                segments for broadcast over cable television, or other 
                appropriate media, which identify--
                            (i) the technologies described in paragraph 
                        (A);
                            (ii) their potential commercial 
                        applications; and
                            (iii) methods available for obtaining 
                        additional information on the technologies.
            (3) Technical assistance.--The Corporation shall, upon 
        request, provide technical assistance and services, as 
        appropriate and needed, to qualified concerns under this title.
            (4) Outreach to specific areas and small businesses.--The 
        Corporation shall seek to ensure that qualified concerns and 
        small businesses located in areas determined by the Secretary 
        to have a depressed economy or chronically high unemployment 
        are notified of the availability of assistance through the 
        program established under this section and, to the extent 
        practicable, to encourage and facilitate the participation of 
        such qualified concerns and small businesses in such program.
    (h) Authority to Represent the Government.--
            (1) In general.--In accordance with regulations prescribed 
        by the Secretary, the Corporation shall act as an agent, and 
        represent the interests, of the Federal Government in 
        facilitating the utilization of technologies, processes, and 
        other proprietary rights by qualified concerns under this 
        title.
            (2) Rights of qualified concerns.--In accordance with 
        regulations promulgated by the Secretary, the Corporation may 
        convey, to qualified concerns, under terms and conditions to be 
        negotiated between the Corporations and qualified concerns, 
        such rights which may be necessary and appropriate to 
        facilitate the utilization and commercialization of 
        technologies, processes, and other proprietary rights as 
        provided under this title.
            (3) Minimum rights of the federal government.--In the 
        conveyance of rights to qualified concerns as provided for 
        under paragraph (2), the Corporation shall ensure the 
        following:
                    (A) The conveyance agreement contains language 
                providing for the rights of the Corporation to revoke 
                the rights provided under paragraph (2) if--
                            (i) the qualified concern does not 
                        demonstrate that it is undertaking a good faith 
                        effort to achieve the utilization and 
                        commercialization of the technology, process, 
                        or other proprietary right; or
                            (ii) the Secretary certifies that the 
                        interests of national security or the general 
                        welfare of the American people necessitates the 
                        revocation of such rights.
                    (B) The Federal Government retains a license to 
                such technologies, processes, and other proprietary 
                rights for the Government's own use.
                    (C) The Federal Government receives in compensation 
                for the conveyance of such rights--
                            (i) royalties;
                            (ii) the right to share in the earnings of 
                        the qualified entity proportionate to the value 
                        of the rights so conveyed; or
                            (iii) a sum of money or other compensation 
                        that the Corporation determines to be 
                        appropriate.
            (4) Agent's fees.--Under such terms as the Secretary and 
        the Corporation may negotiate, after consulting with the 
        Committee on Banking, Finance and Urban Affairs and the 
        Committee on Science, Space and Technology of the House of 
        Representatives, and the Committee on Commerce, Science, and 
        Transportation of the Senate, the Corporation may retain a 
        percentage of any royalties or other compensation accruing to 
        the Federal Government in connection with any licensing 
        agreement entered into by the Corporation on behalf of the 
        Federal Government.
    (i) Consultation With Federal Agencies, and With Private Parties.--
            (1) Consultation with federal agencies.--In carrying out 
        this title, the Board and the Corporation shall consult 
        frequently with the Secretary, and such Federal agencies and 
        departments as is appropriate, to ensure coordination and the 
        maximum utilization of all related Federal resources to promote 
        technology utilization and commercialization.
            (2) Consultation with private parties.--In carrying out 
        this title, the Board and the Corporation shall solicit 
        comments from private parties, including representatives of 
        finance, industry, and organized labor on the role of the 
        Corporation and the needs of private parties.
    (j) Audit by Comptroller General.--The Comptroller General of the 
United States may audit the financial transactions of the Corporation. 
For the purposes of carrying out such an audit, the Comptroller General 
shall have access to all books, records, and property belonging to, or 
in the possession of, the Corporation. In the case of a person or 
entity which has entered into a financial relationship with the 
Corporation, the Comptroller General shall have access only to those 
books, records, and property belonging to, or the possession of, the 
person or entity which pertain to the Corporation and which are 
necessary to carry out the audit. The Comptroller General shall make a 
report of each audit to the Congress and the President.
    (k) Information and Other Assistance From Federal Agencies.--Upon 
the request of the Corporation, the head of a Federal department or 
agency is authorized to--
            (1) furnish to the Corporation such information which is 
        available to the agency as the Board deems necessary for 
        carrying out its functions; and
            (2) detail for temporary duty, on a reimbursable basis, 
        such personnel as the Corporations determines to be necessary 
        to carry out its functions.
    (l) Miscellaneous Provisions.--
            (1) Jurisdiction.--
                    (A) In general.--Whenever the Corporation is a 
                party to any civil action under this title, such action 
                shall be deemed to arise under the laws of the United 
                States. No attachment or execution may be issued 
                against the Corporation, or any property thereof, prior 
                to entry of final judgment.
                    (B) Citizenship of corporation.--The Corporation 
                shall be deemed to be a citizen of the District of 
                Columbia for the purpose of determining the original 
                jurisdiction of the district courts of the United 
                States in civil actions to which the Corporation is a 
                party.
            (2) Business activity and qualification.--The Corporation 
        shall be deemed to be qualified to do business in each State in 
        which it performs any activity authorized under this title.
    (m) Utilization of Corporation.--It is the sense of the Congress 
that all Federal departments, agencies, institutions of higher 
education, and laboratories, and all institutions of higher education 
and laboratories which are otherwise supported by Federal funds, should 
use the services of the Corporation to the maximum extent possible.

SEC. 305. ASSISTANCE TO BUSINESSES IN SECURING FINANCING.

    (a) Information Clearinghouse.--The Corporation established under 
this title shall act as a one-stop clearinghouse for information to 
assist qualified concerns identify sources of business development and 
technology commercialization financing available through the Federal 
Government as well as through applicable State and local government 
programs and through private sources.
    (b) Agent of the Federal Government.--The Corporation may act as an 
agent of the Federal Government for purposes of accepting applications 
for financial assistance and their submission to the appropriate 
Federal agency on behalf of a qualified concern.
    (c) Technical Assistance for Lenders and Borrowers.--The 
Corporation shall, upon request, provide technical assistance and 
services, as appropriate and needed, to lenders and borrowers under 
this title, and shall ensure that such lenders and borrowers have ready 
access to appropriate assistance in order to aid such lenders and 
borrowers in achieving the purposes of this title.

SEC. 306. SAVINGS PROVISION.

    It is the intent of the Congress that this title shall be construed 
as complementing any other provision of Federal law relating to the 
licensing, utilization, or commercialization of the use of technology 
and shall not be construed as superseding any such provision, except as 
otherwise provided in this title.

SEC. 307. RULE OF CONSTRUCTION.

    Nothing in this Act or this title shall be construed by the 
President, the Secretary of Commerce, the Corporation, any Federal 
agency or department, or any court to affect, alter, amend, modify, or 
change, or apply to, any program or activity (or any technology 
developed, derived, or provided through or under such program or 
activity by any means of any kind) of the Department of Energy, the 
Department of Transportation, the Department of Health and Human 
Services, or the Environmental Protection Agency or any office, bureau, 
commission, laboratory or facility of such agencies or departments.
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