IIA

103D CONGRESS

2D SESSION H. R. 2442

IN THE SENATE OF THE UNITED STATES

MAY 16, 1994

Received; read twice and referred to the Committee on Environment and

Public Works

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.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

5 ‘‘Economic Development Reauthorization Act of 1994’’.

6 (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.
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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.

Sec. 130. Regulatory relief.

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.
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1 TITLE I—ECONOMIC

2 DEVELOPMENT PROGRAMS

3 SEC. 101. GRANTS FOR PUBLIC WORKS AND DEVELOPMENT

4 FACILITIES.

5 (a) DIRECT AND SUPPLEMENTARY GRANTS.—

6 (1) ELIGIBLE APPLICANTS.—Section 101(a) of

7 the Public Works and Economic Development Act of

8 1965 (42 U.S.C. 3131(a)) is amended in the matter

9 preceding paragraph (1) by striking ‘‘representing

10 any redevelopment area or part thereof’’ and insert11 ing ‘‘acting in cooperation with officials of local gov12 ernments’’.

13 (2) DIRECT GRANTS.—Section 101(a)(1) of

14 such Act (42 U.S.C. 3131(a)(1)) is amended—

15 (A) in the matter preceding subparagraph

16 (A) by inserting ‘‘design and engineering,’’

17 after ‘‘acquisition,’’; and

18 (B) in subparagraph (A) by striking ‘‘or

19 otherwise substantially further the objectives of

20 the Economic Opportunity Act of 1964’’.

21 (b) AMOUNT OF SUPPLEMENTAL GRANTS.—The last

22 sentence of section 101(c) of such Act (42 U.S.C. 3131(c))

23 is amended—

24 (1) by striking ‘‘area,’’ and inserting ‘‘area

25 and’’; and
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1 (2) by striking ‘‘, and the amount of’’ and all

2 that follows before the period.

3 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

4 105 of such Act (42 U.S.C. 3135) is amended to read as

5 follows:

6 ‘‘SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

7 ‘‘(a) IN GENERAL.—There is authorized to be appro8 priated to carry out this title $160,000,000 for fiscal year

9 1994 and $175,000,000 per fiscal year for each of fiscal

10 years 1995 and 1996. Such sums shall remain available

11 until expended.

12 ‘‘(b) LIMITATION ON EXPENDITURES IN CERTAIN

13 AREAS.—Not more than 35 percent of the amounts appro14 priated pursuant to subsection (a) in a fiscal year may

15 be expended for projects located in areas described in sec16 tion 401(a)(4).

17 ‘‘(c) LIMITATION ON EXPENDITURES FOR DESIGN

18 AND ENGINEERING.—Not more than 20 percent of the

19 amounts appropriated pursuant to section (a) in a fiscal

20 year may be expended for design and engineering.’’.

21 (d) SEWER FACILITIES.—Title I of such Act (42

22 U.S.C. 3131–3137) is amended by striking section 106

23 and redesignating section 107 as section 106.

24 (e) CONSTRUCTION COST INCREASES.—Section 106

25 of such Act, as redesignated by subsection (d) of this sec-
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1 tion, is amended by inserting a period after ‘‘such costs’’

2 and striking all that follows.

3 SEC. 102. PROJECTS CONSTRUCTED UNDER PROJECTED

4 COST.

5 Title I of the Public Works and Economic Develop6 ment Act of 1965 (42 U.S.C. 3131–3137) is amended by

7 adding at the end the following:

8 ‘‘SEC. 107. USE OF FUNDS IN PROJECTS CONSTRUCTED

9 UNDER PROJECTED COST.

10 ‘‘In any case where a grant (including a supplemental

11 grant) has been made under this title for a project, and

12 after such grant has been made but before completion of

13 the project the cost of such project based upon the designs

14 and specifications which were the basis of the grant has

15 decreased because of decreases in costs, such underrun

16 funds may be used to improve the project either directly

17 or indirectly as determined by the Secretary.’’.

18 SEC. 103. CHANGED PROJECT CIRCUMSTANCES.

19 Title I of the Public Works and Economic Develop20 ment Act of 1965 (42 U.S.C. 3131–3137) is further

21 amended by adding at the end the following:

22 ‘‘SEC. 108. CHANGED PROJECT CIRCUMSTANCES.

23 ‘‘In any case where a grant (including a supplemental

24 grant) has been made under this title for a project, and

25 after such grant has been made but before completion of
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1 the project the purpose or scope of such project based

2 upon the designs and specifications which were the basis

3 of the grant has changed, the Secretary may approve the

4 use of grant funds on such changed project if the Sec5 retary determines that such changed project meets the re6 quirements of this title and that such changes are nec7 essary to enhance economic development in the area.’’.

8 SEC. 104. OTHER FINANCIAL ASSISTANCE.

9 (a) PUBLIC WORKS AND DEVELOPMENT FACILITY

10 LOANS.—

11 (1) ELIGIBLE APPLICANTS.—Section 201(a) of

12 the Public Works and Economic Development Act of

13 1965 (42 U.S.C. 3141(a)) is amended in the matter

14 preceding paragraph (1) by striking ‘‘representing

15 any redevelopment area or part thereof’’ and insert16 ing ‘‘acting in cooperation with officials of local gov17 ernments’’.

18 (2) CRITERIA.—Section 201(a)(1)(C) of such

19 Act (42 U.S.C. 3141(a)(1)(C)) is amended by strik20 ing ‘‘or otherwise substantially further the objectives

21 of the Economic Opportunity Act of 1964’’.

22 (b) TERMS AND CONDITIONS.—Section 202(b) of

23 such Act (42 U.S.C. 3142(b)) is amended—
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1 (1) in paragraph (6) by striking ‘‘it is deter2 mined’’ and inserting ‘‘the Secretary determines’’;

3 and

4 (2) in paragraph (7) by striking ‘‘hereunder for

5 a period’’ and all that follows through ‘‘the foregoing

6 restrictions on maturities’’ and inserting ‘‘under this

7 section for a term of maturity of more than 25 years

8 and no evidences of indebtedness which matures

9 more than 25 years after the date of purchase may

10 be purchased under this section; except that this

11 paragraph’’.

12 (c) REDEVELOPMENT AREA LOAN PROGRAM.—Title

13 II of such Act (42 U.S.C. 3141–3144) is amended by

14 striking section 204.

15 SEC. 105. TECHNICAL ASSISTANCE, RESEARCH, AND INFOR16 MATION.

17 (a) TECHNICAL ASSISTANCE.—

18 (1) URBAN AREAS WITH POPULATIONS OF

19 400,000 OR LESS.—Section 301(a) of the Public

20 Works and Economic Development Act of 1965 (42

21 U.S.C. 3151(a)) is amended by adding at the end

22 the following: ‘‘In providing assistance under this

23 subsection, the Secretary shall take into consider24 ation the unique development needs of urban areas

25 with populations of 400,000 or less.’’.
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1 (2) GRANTS FOR ADMINISTRATIVE EX2 PENSES.—The last sentence of section 301(b) of

3 such Act (42 U.S.C. 3151(b)) is amended by strik4 ing ‘‘urban planning grants, authorized under the

5 Housing Act of 1954, as amended,’’ and inserting

6 ‘‘planning activities described in section 105(a)(13)

7 of the Housing and Community Development Act of

8 1974’’.

9 (3) REPEALS.—Section 301 of such Act (42

10 U.S.C. 3151) is amended by striking subsections (c),

11 (e), and (f) and redesignating subsection (d) as sub12 section (c).

13 (b) ECONOMIC DEVELOPMENT PLANNING.—

14 (1) DIRECT GRANTS.—The 7th sentence of sec15 tion 302(a) of such Act (42 U.S.C. 3151a(a)) is

16 amended by striking ‘‘and shall be available’’ and all

17 that follows before the period at the end.

18 (2) TECHNICAL ASSISTANCE.—Section 302 of

19 such Act (42 U.S.C. 3151a) is amended by striking

20 subsection (b) and redesignating subsection (c) as

21 subsection (b).

22 (3) USE OF OTHER PLANNING ASSISTANCE.—

23 Section 302(b) of such Act, as redesignated by para24 graph (2) of this subsection, is amended by striking

25 ‘‘shall be used in accordance with the review proce-
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1 dure required pursuant to title IV of the Intergov2 ernmental Cooperation Act of 1968 and’’.

3 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

4 303 of such Act (42 U.S.C. 3152) is amended to read as

5 follows:

6 ‘‘SEC. 303. AUTHORIZATION OF APPROPRIATIONS.

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

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

9 $50,000,000 per fiscal year for each of fiscal years 1995

10 and 1996. Such sums shall remain available until ex11 pended.’’.

12 (d) SUPPLEMENTAL AND BASIC GRANTS.—Title III

13 of such Act (42 U.S.C. 3151–3153) is amended by strik14 ing section 304.

15 SEC. 106. BUSINESS OUTREACH CENTER DEMONSTRATION

16 PROJECT.

17 Title III of the Public Works and Economic Develop18 ment Act of 1965 (42 U.S.C. 3151–3153) is amended by

19 adding at the end the following:

20 ‘‘SEC. 304. BUSINESS OUTREACH CENTER DEMONSTRATION

21 PROJECT.

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

23 project in each of fiscal years 1994 through 1996 with

24 funds made available under this title for the purpose of

25 demonstrating methods of assisting isolated small busi-
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1 nesses to access small business services provided by Fed2 eral, State, and local governments.

3 ‘‘(b) ESTABLISHMENT OF CENTERS.—In conducting

4 the demonstration project under this section, the Sec5 retary shall establish 3 business outreach centers. At least

6 1 of the centers shall be located in a rural area.

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

8 of each business outreach center established under this

9 section—

10 ‘‘(1) to provide a one-stop clearinghouse to as11 sist isolated small businesses in accessing small busi12 ness services provided by Federal, State, and local

13 governments; and

14 ‘‘(2) to improve efficiency in the delivery of

15 such services.

16 ‘‘(d) SERVICES TO BE PROVIDED.—Each business

17 outreach center established under this section shall pro18 vide the following services:

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

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

21 businesses for assistance services.

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

23 small business assistance agencies.
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1 ‘‘(4) Preparation of materials required by iso2 lated small businesses for participation in small

3 business assistance programs.

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

5 quality control of business services.

6 ‘‘(6) Coordination of networking among isolated

7 small businesses.

8 ‘‘(7) Quality control of small business assist9 ance services.

10 ‘‘(e) ISOLATED SMALL BUSINESS DEFINED.—For

11 the purposes of this section, the term ‘isolated small busi12 ness’ means a small business that is unable to effectively

13 access small business services provided by Federal, State,

14 and local governments due to linguistic, cultural, or geo15 graphic barriers.’’.

16 SEC. 107. OFFICE OF STRATEGIC ECONOMIC DEVELOP17 MENT PLANNING AND POLICY.

18 Title III of the Public Works and Economic Develop19 ment Act of 1965 (42 U.S.C. 3151–3153) is further

20 amended by adding at the end the following:

21 ‘‘SEC. 305. OFFICE OF STRATEGIC ECONOMIC DEVELOP22 MENT PLANNING AND POLICY.

23 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab24 lish an Office of Strategic Economic Development Plan-
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1 ning and Policy (hereafter in this section referred to as

2 ‘the Office’).

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

4 are as follows:

5 ‘‘(1) RESEARCH, EVALUATION, AND DEM6 ONSTRATION.—To support research, evaluation, and

7 demonstration projects to study and assess best

8 practices in economic development and to examine

9 trends and changes in economic conditions that af10 fect regional development.

11 ‘‘(2) POLICY DEVELOPMENT.—To develop rec12 ommendations on both short- and long-term policies

13 regarding economic development issues and pro14 grams, to help foster the diffusion of innovative, best

15 practices in economic development throughout the

16 Department of Commerce.

17 ‘‘(3) COORDINATION.—To take a leading role in

18 developing and promoting means for greater coordi19 nation among States, regions, and local communities

20 in the design and implementation of economic devel21 opment strategies, and to work in conjunction with

22 Federal agencies on developing and implementing

23 means for reducing fragmentation and increase co24 ordination among Federal programs that provide

25 economic development assistance.
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1 ‘‘(c) RESEARCH IN CAUSES OF LONG-TERM ECO2 NOMIC DETERIORATION.—

3 ‘‘(1) IN GENERAL.—To assist in the long-range

4 accomplishment of the purposes of this Act, the Sec5 retary, in cooperation with other agencies having

6 similar functions, shall establish and conduct a con7 tinuing program of study, training, and research—

8 ‘‘(A) to assist in determining the causes

9 of unemployment, underemployment, under10 development, and chronic depression in the var11 ious areas and regions of the Nation;

12 ‘‘(B) to assist in the formulation and im13 plementation of national, State, and local pro14 grams which will raise income levels and other15 wise produce solutions to the problems resulting

16 from these conditions; and

17 ‘‘(C) to assist in providing the personnel

18 needed to conduct such programs.

19 ‘‘(2) MANNER OF PROVIDING STUDY, ASSIST20 ANCE.—The program of study, training, and re21 search may be conducted by the Secretary

22 through—

23 ‘‘(A) members of the Secretary’s staff;
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1 ‘‘(B) the payment of funds authorized for

2 this section to other departments or agencies of

3 the Federal Government;

4 ‘‘(C) the employment of private individ5 uals, partnerships, firms, corporations, or suit6 able institutions;

7 ‘‘(D) contracts entered into for such pur8 poses;

9 ‘‘(E) grants to such individuals, organiza10 tions, or institutions as the Secretary deter11 mines to be appropriate; or

12 ‘‘(F) conferences and similar meetings or13 ganized for such purposes.

14 ‘‘(3) AVAILABILITY OF RESULTS OF RE15 SEARCH.—The Secretary shall make available to in16 terested individuals and organizations the results of

17 such research.

18 ‘‘(4) ANNUAL REPORT OF SECRETARY.—The

19 Secretary shall include in the annual report under

20 section 705 a detailed statement concerning the

21 study and research conducted under this section, to22 gether with the Secretary’s findings and conclusions

23 and such recommendations for legislative and other

24 action as the Secretary may consider appropriate.

25 ‘‘(d) GEOGRAPHIC ANALYSIS TOOL.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall, in co2 operation with other appropriate Federal agencies

3 develop a computerized geographic analysis tool that

4 all Federal departments and agencies and grant re5 cipients may use to evaluate the success of these

6 programs.

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

8 the date of the enactment of the Economic Develop9 ment Reauthorization Act of 1994, the Secretary

10 shall transmit to Congress a report on use of the

11 computerized geographic analysis tool developed pur12 suant to paragraph (1) by Federal departments and

13 agencies.

14 ‘‘(e) INDEPENDENT ADVISORY COMMITTEE.—The

15 Secretary shall establish an advisory committee made up

16 of representatives from major State, local, and nonprofit

17 economic development organizations as well as nationally

18 recognized experts on innovative approaches to economic

19 development to advise and make recommendations to the

20 Office.

21 ‘‘(f) FEDERAL COORDINATING COUNCIL FOR ECO22 NOMIC DEVELOPMENT.—

23 ‘‘(1) IN GENERAL.—The Secretary shall estab24 lish a Federal Coordinating Council for Economic
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1 Development (hereafter in this section referred to as

2 the ‘Council’).

3 ‘‘(2) COMPOSITION OF COUNCIL.—The Council

4 shall be composed of representatives from Federal

5 agencies involved in matters that affect regional eco6 nomic development.

7 ‘‘(3) DUTIES.—The Council shall assist in pro8 viding a unifying framework for economic and re9 gional development efforts and develop a govern10 mentwide strategic plan for economic development.

11 ‘‘(g) GRANTS AND CONTRACTS FOR DEMONSTRATION

12 PROJECTS; PURPOSES.—The Secretary may make grants,

13 enter into contracts, or otherwise provide funds for any

14 demonstration project in an eligible area which the Sec15 retary determines is designed to foster regional productiv16 ity and growth, prevent outmigration, and otherwise carry

17 out the purposes of this Act.’’.

18 SEC. 108. OFFICE OF ECONOMIC DEVELOPMENT INFORMA19 TION.

20 Title III of the Public Works and Economic Develop21 ment Act of 1965 (42 U.S.C. 3151–3153) is further

22 amended by adding at the end the following:
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1 ‘‘SEC. 306. OFFICE OF ECONOMIC DEVELOPMENT INFORMA2 TION.

3 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab4 lish the Office of Economic Development Information

5 (hereafter in this section referred to as the ‘Office’) within

6 the Office of Strategic Economic Development Planning

7 and Policy.

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

9 shall be—

10 ‘‘(1) to serve as a central information clearing11 house on matters relating to economic development,

12 economic adjustment, industrial retention, disaster

13 recovery, and defense conversion programs and ac14 tivities of the Federal and State governments, in15 cluding political subdivisions of the States; and

16 ‘‘(2) to help potential and actual applicants for

17 economic development, economic adjustment, disas18 ter recovery, industrial retention, and defense con19 version assistance under Federal, State, and local

20 laws in locating and applying for such assistance, in21 cluding financial and technical assistance.

22 ‘‘(c) INFORMATION DATA BASES.—

23 ‘‘(1) USES.—The Office shall develop informa24 tion data bases for use by Federal departments and

25 agencies. State and local governmental agencies,

26 public and private entities, and individuals to assist
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1 such agencies, entities, and individuals in the proc2 ess of identifying and applying for assistance and re3 sources under economic development, economic

4 adjustment, disaster recovery, industrial retention,

5 and defense conversion programs and activities of

6 the Federal, State, and local governments.

7 ‘‘(2) SPECIFIC KINDS OF INFORMATION RE8 QUIRED TO BE INCLUDED.—The data bases shall in9 clude the following kinds of information:

10 ‘‘(A) A comprehensive compilation of all

11 relevant information concerning available eco12 nomic development, economic adjustment, disas13 ter recovery, industrial retention, and defense

14 conversion programs of the Federal Government

15 including key contact people, descriptions of the

16 application process, eligibility requirements and

17 criteria, selection and followup procedures, and

18 other such relevant information.

19 ‘‘(B) A compilation of major State and

20 local governmental economic development, eco21 nomic adjustment, disaster relief, industrial re22 tention, and defense conversion assistance pro23 grams, including lists of appropriate offices, of24 ficers, and contact personnel connected with, or

25 involved in, such programs.
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1 ‘‘(C) A compilation of relevant and avail2 able economic data and trends, including infor3 mation about the national, regional, and local

4 impacts of trade agreements, defense spending

5 and downsizing, technological change, and other

6 sources of substantial economic dislocation.

7 ‘‘(D) A compilation of case studies and

8 ‘best practices’ in economic development, ad9 justment, and conversion.

10 ‘‘(E) A compilation of technology utiliza11 tion programs, assistance, and resources.

12 ‘‘(F) A compilation of published works

13 (books, reports, articles, videos, and tapes), and

14 selected texts of such works, related to all fac15 ets of economic development, economic adjust16 ment and defense conversion.

17 ‘‘(G) A compilation of information on case

18 studies on early warning and intervention ef19 forts.

20 ‘‘(3) POINTS OF PUBLIC ACCESS.—

21 ‘‘(A) IN GENERAL.—The Office shall es22 tablish several mechanisms to assure easy ac23 cess by the public and others to such data

24 bases, and to assure that the data bases be as
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1 accessible, user-friendly, culturally neutral, and

2 affordable as possible.

3 ‘‘(B) MEANS OF ACCESS.—Access to the

4 Office’s data services shall include the following

5 means:

6 ‘‘(i) A toll-free nationwide telephone

7 number to provide direct phone access to

8 the public.

9 ‘‘(ii) On-line electronic access through

10 existing computer network services and

11 publicly available computer data base ac12 cess facilities, such as at repository librar13 ies and by direct call-in via modem.

14 ‘‘(iii) Printed manuals and orientation

15 materials.

16 ‘‘(iv) Periodic orientation workshops

17 available to the public.

18 ‘‘(v) On-call information specialists to

19 address special problems requiring person20 to-person assistance.

21 ‘‘(d) INTERAGENCY COORDINATION.—The Secretary

22 shall enter into such agreements and understandings as

23 may be necessary with other Federal departments and

24 agencies to coordinate the accomplishment of the objec25 tives of this section.’’.
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1 SEC. 109. AREA ELIGIBILITY.

2 (a) IN GENERAL.—Title IV of the Public Works and

3 Economic Development Act of 1965 (42 U.S.C. 3161–

4 3173) is amended by striking the heading to such title

5 and all that follows through section 401 and inserting the

6 following:

7 ‘‘TITLE IV—ELIGIBILITY AND

8 INVESTMENT STRATEGIES

9 ‘‘PART A—ELIGIBILITY

10 ‘‘SEC. 401. AREA ELIGIBILITY.

11 ‘‘(a) CERTIFICATION.—In order to be eligible for as12 sistance under title I or II, an applicant seeking assistance

13 to undertake a project in an area shall certify, as part

14 of an application for such assistance, that the area on the

15 date of submission of such application meets 1 or more

16 of the following criteria:

17 ‘‘(1) The area has a per capita income of 80

18 percent or less of the national average.

19 ‘‘(2) The area has an unemployment rate 1 per20 cent above the national average percentage for the

21 most recent 24-month period for which statistics are

22 available.

23 ‘‘(3) The area has experienced or is about to

24 experience a sudden economic dislocation resulting

25 in job loss that is significant both in terms of the
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1 number of jobs eliminated and the effect upon the

2 employment rate of the area.

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

4 (defined without regard to political or other subdivi5 sions or boundaries) which the Secretary determines

6 has 1 or more of the following conditions:

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

8 persons.

9 ‘‘(B) Rural areas having substantial out10 migration or substantial economic deterioration

11 and unemployment.

12 ‘‘(C) Substantial unemployment.

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

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

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

16 State government. Such documentation shall be accepted

17 by the Secretary unless it is determined to be inaccurate.

18 The most recent statistics available shall be used.

19 ‘‘(c) SPECIAL RULE.—An area which the Secretary

20 determines has 1 or more of the conditions described in

21 subsection (a)(4)—

22 ‘‘(1) shall not be subject to the requirements of

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

24 ‘‘(2) shall not be eligible to meet the require25 ments of section 403(a)(1)(B).
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1 ‘‘(d) PRIOR DESIGNATIONS.—Any designation of a

2 redevelopment area under this title made before the date

3 of the enactment of the Economic Development Reauthor4 ization Act of 1994 shall not be effective after such date

5 of enactment.

6 ‘‘(e) DEFINITION.—For purposes of this Act, the

7 term ‘large concentration of low-income persons’ means an

8 area with a median family income of not more than 80

9 percent of the national median family income.’’.

10 (b) CONFORMING AMENDMENTS.—

11 (1) TITLE I.—Title I of such Act (42 U.S.C.

12 3131–3137) is amended—

13 (A) in section 101(a)(1) in the matter pre14 ceding subparagraph (A) by striking ‘‘within a

15 redevelopment area’’ and inserting ‘‘within an

16 area described in section 401(a)’’;

17 (B) in section 101(a)(1)(D) by striking ‘‘a

18 redevelopment area so designated under section

19 401(a)(6)’’ and inserting ‘‘an area described in

20 section 401(a)(4)’’;

21 (C) in section 101(a)(2) by striking ‘‘with22 in redevelopment areas’’ and inserting ‘‘within

23 areas described in section 401(a)’’;

24 (D) in each of the 2d and 3d sentences of

25 section 101(c) by striking ‘‘a redevelopment
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1 area designated as such under section 401(a)(6)

2 of this Act’’ and inserting ‘‘an area described in

3 section 401(a)(4)’’; and

4 (E) in the 5th sentence of section 101(c)

5 by striking ‘‘redevelopment areas’’ and inserting

6 ‘‘areas described in section 401(a)’’.

7 (2) TITLE II.—Title II of such Act (42 U.S.C.

8 3141–3144) is amended—

9 (A) in section 201(a) in the matter preced10 ing paragraph (1) by striking ‘‘within a redevel11 opment area’’ and inserting ‘‘within an area de12 scribed in section 401(a)’’;

13 (B) in each of paragraphs (1) and (3) of

14 section 202(a) by striking ‘‘within a redevelop15 ment area’’ and inserting ‘‘within an area de16 scribed in section 401(a)’’; and

17 (C) in section 202(b)(3) by striking ‘‘rede18 velopment’’.

19 (3) TITLE III.—Title III of such Act (42 U.S.C.

20 3151–3153) is amended—

21 (A) in section 301(a) by striking ‘‘(1) to

22 areas which he has designated as redevelopment

23 areas under this Act, and (2) to other areas

24 which he finds’’ and inserting ‘‘(1) to areas

25 which the Secretary determines are areas de-
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1 scribed in section 401(a), and (2) to other areas

2 which the Secretary finds’’;

3 (B) in section 301(c), as redesignated by

4 section 105(a) of this Act, by striking ‘‘redevel5 opment areas’’ both places it appears and in6 serting ‘‘areas described in section 401(a)’’;

7 (C) in the 1st sentence of section 302(a)

8 by striking ‘‘a redevelopment area’’ and insert9 ing ‘‘an area described in section 401(a)’’; and

10 (D) in the 2d sentence of section 302(a) by

11 striking ‘‘redevelopment areas’’ and inserting

12 ‘‘areas described in section 401(a)’’.

13 (4) TITLE IV.—Title IV of such Act (42 U.S.C.

14 3161–3173) is amended—

15 (A) in each of subparagraphs (A) and (B)

16 of section 403(a)(1) by striking ‘‘redevelopment

17 area’’ and inserting ‘‘area described in section

18 401(a)’’;

19 (B) in section 403(a)(1)(C) by striking

20 ‘‘redevelopment areas’’ and inserting ‘‘areas de21 scribed in section 401(a)’’;

22 (C) in section 403(a)(4) in the matter pre23 ceding subparagraph (A) by striking ‘‘redevel24 opment areas (designated under section 401)’’
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1 and inserting ‘‘areas described in section

2 401(a)’’;

3 (D) in section 403(a)(4)(A) by striking

4 ‘‘redevelopment area’’ and inserting ‘‘area de5 scribed in section 401(a)’’; and

6 (E) in section 403(h), as redesignated by

7 section 111(c) of this Act, by striking ‘‘a rede8 velopment area’’ each place it appears and in9 serting ‘‘an area described in section 401(a)’’.

10 (5) TITLE IX.—Section 902 of such Act (42

11 U.S.C. 3242) is amended by striking ‘‘a redevelop12 ment area or economic development district estab13 lished under title IV of this Act’’ and inserting ‘‘an

14 area described in section 401(a) or an economic de15 velopment district designated under section 403’’.

16 SEC. 110 INVESTMENT STRATEGY.

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

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

19 is amended to read as follows:

20 ‘‘SEC. 402. INVESTMENT STRATEGY.

21 ‘‘The Secretary may provide assistance under title I

22 or II to an applicant for a project to be undertaken in

23 an area described in section 401(a) only if the applicant

24 submits to the Secretary, as part of an application for
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1 such assistance, and the Secretary approves an investment

2 strategy which—

3 ‘‘(1) identifies the economic development prob4 lems to be addressed using such assistance;

5 ‘‘(2) identifies past, present, and projected fu6 ture economic development investments in such area

7 and public and private participants and sources of

8 funding for such investments;

9 ‘‘(3) sets forth a strategy for addressing the

10 economic problems identified pursuant to paragraph

11 (1) and describes how the strategy will solve such

12 problems;

13 ‘‘(4) provides a description of the project nec14 essary to implement the strategy, estimates of costs,

15 and timetables; and

16 ‘‘(5) provides a summary of public and private

17 resources expected to be available for the project.’’.

18 (b) ELIMINATION OF OVERALL ECONOMIC DEVELOP19 MENT PROGRAM.—Section 202(b) of such Act (42 U.S.C.

20 3142(b)) is amended by striking paragraph (10).

21 (c) CONFORMING AMENDMENTS.—

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

23 101(a)(1) of such Act (42 U.S.C. 3131(a)(1)) is

24 amended to read as follows:
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1 ‘‘(C) the area for which the project is to be

2 undertaken has an approved investment strat3 egy as provided by section 402 and such project

4 is consistent with such strategy; and’’.

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

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

7 as follows:

8 ‘‘(5) such area has an approved investment

9 strategy as provided by section 402 and the project

10 for which financial assistance is sought is consistent

11 with such strategy.’’.

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

13 U.S.C. 3151a(a)) is amended—

14 (A) in the 4th sentence by striking ‘‘overall

15 State economic development plan’’ and inserting

16 ‘‘State investment strategy’’;

17 (B) in the 5th sentence—

18 (i) by striking ‘‘plan’’ each place it

19 appears and inserting ‘‘strategy’’; and

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

21 appears and inserting ‘‘strategies’’; and

22 (C) in the 6th sentence by striking ‘‘Any

23 overall State economic development planning’’

24 and inserting ‘‘Development of any State in25 vestment strategy’’.
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1 (4) TITLE IV.—Section 403 of such Act (42

2 U.S.C. 3171) is amended—

3 (A) in each of subsections (a)(1)(C),

4 (a)(1)(D), (a)(2)(A), (a)(3)(A), (a)(4)(B), and

5 (e) by striking ‘‘overall economic development

6 program’’ and inserting ‘‘investment strategy’’;

7 (B) in subsection (a)(1)(D) by striking

8 ‘‘program’’ the second place it appears and in9 serting ‘‘strategy’’; and

10 (C) in each of subsections (b) and

11 (b)(2)(B) by striking ‘‘overall economic develop12 ment programs’’ and inserting ‘‘investment

13 strategies’’.

14 SEC. 111. ECONOMIC DEVELOPMENT DISTRICTS.

15 (a) ECONOMIC DEVELOPMENT DISTRICT DE16 FINED.—Section 403(d) of the Public Works and Eco17 nomic Development Act of 1965 (42 U.S.C. 3171(d)) is

18 amended by adding at the end the following: ‘‘Such term

19 includes any economic development district designated by

20 the Secretary under this section before the date of the en21 actment of the Economic Development Reauthorization

22 Act of 1994.’’.

23 (b) FUNDING.—Section 403(g) of such Act (42

24 U.S.C. 3171(g)) is amended to read as follows:
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1 ‘‘(g) FUNDING.—Amounts authorized to be appro2 priated under other sections of this Act shall be available

3 for purposes of carrying out subsections (a)(3) and

4 (a)(4).’’.

5 (c) REPEAL.—Section 403 of such Act (42 U.S.C.

6 3162) is amended by striking subsections (h) and (i) and

7 redesignating subsection (j) as subsection (h).

8 (d) UNEMPLOYMENT RATE DETERMINATIONS.—

9 Title IV of such Act (42 U.S.C. 3161–3173) is amended

10 by striking part D.

11 SEC. 112. ADMINISTRATION.

12 (a) IN GENERAL.—Section 601 of the Public Works

13 and Economic Development Act of 1965 (42 U.S.C. 3201)

14 is amended to read as follows:

15 ‘‘SEC. 601. APPOINTMENT OF ASSISTANT SECRETARY OF

16 COMMERCE FOR ECONOMIC DEVELOPMENT;

17 COMPENSATION.

18 ‘‘(a) ADMINISTRATION OF ACT.—The Secretary shall,

19 with the assistance of an Assistant Secretary of Com20 merce, administer this Act.

21 ‘‘(b) APPOINTMENT OF ASSISTANT SECRETARY.—

22 ‘‘(1) IN GENERAL.—The Assistant Secretary

23 whose position is established under subsection (a)

24 shall be appointed by the President, by and with the

25 advice and consent of the Senate.
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1 ‘‘(2) DUTIES.—The Assistant Secretary ap2 pointed under paragraph (1) shall perform such

3 functions as the Secretary may prescribe.’’.

4 (b) ADVISORY COMMITTEE ON REGIONAL ECONOMIC

5 DEVELOPMENT.—Title VI of such Act (33 U.S.C. 3201–

6 3204) is amended by striking section 602 and redesignat7 ing sections 603 and 604 as sections 602 and 603, respec8 tively.

9 SEC. 113. EXPEDITED PROCESSING OF APPLICATIONS.

10 Title VI of the Public Works and Economic Develop11 ment Act of 1965 (42 U.S.C. 3201–3204) is amended by

12 adding at the end the following:

13 ‘‘SEC. 604. EXPEDITED PROCESSING OF APPLICATIONS.

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

15 date of the enactment of this section, the Assistant Sec16 retary for Economic Development shall—

17 ‘‘(1) publish guidelines to expedite the process18 ing of applications for assistance under this Act; and

19 ‘‘(2) transmit to Congress a report containing

20 such guidelines.

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

22 subsection (a) shall, at a minimum, provide for the follow23 ing:
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1 ‘‘(1) Increased reliance on self-certification by

2 applicants to establish compliance with other Fed3 eral laws.

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

5 and procedures.

6 ‘‘(3) Delegation of decisionmaking authority to

7 regional offices.

8 ‘‘(4) Reduction in the time and number of re9 views conducted by other offices of the Department

10 of Commerce.’’.

11 SEC. 114. UNIFORM APPLICATION FORM.

12 Title VI of the Public Works and Economic Develop13 ment Act of 1965 (42 U.S.C. 3201–3204) is further

14 amended by adding at the end the following:

15 ‘‘SEC. 605. UNIFORM APPLICATION FORM.

16 ‘‘(a) DEVELOPMENT.—The Secretary shall, in co17 operation with the heads of appropriate Federal depart18 ments and agencies, develop a general, simplified applica19 tion form for grant assistance under this Act which may

20 be used by all Federal departments and agencies which

21 provide grant assistance.

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

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

24 transmit to Congress a report on use of the form devel-
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1 oped pursuant to subsection (a) by Federal departments

2 and agencies.’’.

3 SEC. 115. STUDY OF GRANT SELECTION CRITERIA.

4 Title VI of the Public Works and Economic Develop5 ment Act of 1965 (42 U.S.C. 3201–3204) is further

6 amended by adding at the end the following:

7 ‘‘SEC. 606. STUDY OF GRANT SELECTION CRITERIA.

8 ‘‘(a) DEVELOPMENT OF METHOD.—The Secretary

9 shall develop recommendations for prioritizing applica10 tions and awarding funding for projects under this Act

11 based on the relative needs of eligible areas and the capac12 ity of an applicant to carry out a project, including the

13 ability of the applicant to leverage or attract funding from

14 the private sector and to coordinate or create partnerships

15 with other eligible recipients.

16 ‘‘(b) CONSIDERATION.—In developing a method

17 under subsection (a), the Secretary shall consider the dif18 ferent objectives of each title of this Act.

19 ‘‘(c) REPORT TO CONGRESS.—Not later than 1 year

20 after the date of the enactment of this section, the Sec21 retary shall transmit to Congress a report containing rec22 ommendations developed under subsection (a).’’.
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1 SEC. 116. PERFORMANCE EVALUATIONS OF GRANT RECIPI2 ENTS.

3 Title VI of the Public Works and Economic Develop4 ment Act of 1965 (42 U.S.C. 3201–3204) is further

5 amended by adding at the end the following:

6 ‘‘SEC. 607. PERFORMANCE EVALUATIONS OF GRANT RE7 CIPIENTS.

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

9 Secretary shall conduct an evaluation of each university

10 center and economic development district receiving grant

11 assistance under this Act to assess the recipient’s perform12 ance and contribution toward job creation.

13 ‘‘(b) CRITERIA.—

14 ‘‘(1) ESTABLISHMENT.—The Secretary shall es15 tablish criteria for use in conducting evaluations

16 under subsection (a).

17 ‘‘(2) CRITERIA FOR UNIVERSITY CENTERS.—

18 The criteria for evaluation of a university center

19 shall, at a minimum, provide for an assessment of

20 the center’s contribution to providing technical as21 sistance, conducting applied research, and dissemi22 nating results of the center’s activities.

23 ‘‘(3) CRITERIA FOR ECONOMIC DEVELOPMENT

24 DISTRICTS.—The criteria for evaluation of an eco25 nomic development district shall, at a minimum, pro-
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1 vide for an assessment of management standards, fi2 nancial accountability, and program performance.

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

4 a university center under subsection (a), the Secretary

5 shall provide for the participation of at least one other

6 university center on a cost-reimbursement basis.’’.

7 SEC. 117. STUDY OF GUARANTEED LOAN PROGRAM.

8 Title VI of the Public Works and Economic Develop9 ment Act of 1965 (42 U.S.C. 3241–3245) is further

10 amended by adding at the end the following:

11 ‘‘SEC. 608. STUDY OF INNOVATIVE ECONOMIC DEVELOP12 MENT FINANCING TOOLS.

13 ‘‘(a) STUDY.—The Secretary shall conduct a study

14 of innovative economic development financing tools, in15 cluding a guaranteed loan program and an equity financ16 ing program.

17 ‘‘(b) CONDUCT.—In conducting the study under sub18 section (a), the Secretary shall identify the credit gap

19 which would be addressed by the programs referred to in

20 subsection (a), methods to avoid the mistakes of previous

21 guaranteed loan programs carried out by the Economic

22 Development Administration, and an expected subsidy

23 rate to be implemented under such programs.

24 ‘‘(c) REPORT TO CONGRESS.—Not later than 1 year

25 after the date of the enactment of this section, the Sec-
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1 retary shall transmit to Congress a report on the results

2 of the study conducted under this section, together with

3 recommendations on whether the programs referred to in

4 subsection (a) should be authorized as part of this Act.’’.

5 SEC. 118. MISCELLANEOUS.

6 (a) POWERS OF THE SECRETARY.—Section 701 of

7 the Public Works and Economic Development Act of 1965

8 (42 U.S.C. 3211) is amended—

9 (1) in paragraph (4)—

10 (A) by striking ‘‘loans’’ the first place it

11 appears and inserting ‘‘grants or loans’’; and

12 (B) by striking ‘‘loans’’ the second place it

13 appears and inserting ‘‘grants, loans,’’;

14 (2) in paragraph (6) by striking ‘‘loans’’ and

15 inserting ‘‘grants or loans’’;

16 (3) in paragraph (7) by striking ‘‘loans’’ each

17 place it appears and inserting ‘‘grants or loans’’;

18 and

19 (4) in paragraph (10)—

20 (A) by striking ‘‘section 15 of the Adminis21 trative Expenses Act of 1946 (5 U.S.C. 55a).’’

22 and inserting ‘‘section 3109 of title 5, United

23 States Code,’’; and
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1 (B) by striking ‘‘section 5 of such Act (5

2 U.S.C. 73b–2)’’ and inserting ‘‘section 5703 of

3 title 5, United States Code,’’.

4 (b) UNFAIR COMPETITION; SAVINGS PROVISIONS.—

5 Title VII of such Act (42 U.S.C. 3211–3225) is amended

6 by striking sections 702 and 703 and redesignating sec7 tions 704 through 714 as sections 702 through 712, re8 spectively.

9 (c) TRANSFER OF FUNCTIONS.—Section 702 of such

10 Act, as redesignated by subsection (b) of this section, is

11 amended—

12 (1) in the heading to such section by striking

13 ‘‘,EFFECTIVE DATE, AND LIMITATIONS ON AS14 SISTANCE’’ and inserting ‘‘OF AREA REDEVELOP15 MENT ADMINISTRATION’’;

16 (2) by striking ‘‘(a) The’’ and inserting ‘‘The’’;

17 and

18 (3) by striking subsections (b) through (e).

19 (d) USE OF OTHER FACILITIES.—Section 706 of

20 such Act, as redesignated by subsection (b) of this section,

21 is amended by adding at the end the following new sub22 section:

23 ‘‘(d) FUNDS TRANSFERRED FROM OTHER DEPART24 MENTS AND AGENCIES.—In order to carry out the objec25 tives of this Act, the Secretary may accept transfers of
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1 funds from other departments and agencies of the Federal

2 Government if the funds are used for the purposes for

3 which (and in accordance with the terms under which) the

4 funds are specifically authorized and appropriated. Such

5 transferred funds shall remain available until expended

6 and may be transferred to and merged with the appropria7 tions under the heading ‘salaries and expenses’ by the Sec8 retary to the extent necessary to administer the pro9 gram.’’.

10 (f) AUTHORIZATION OF APPROPRIATIONS.—Section

11 707 of such Act, as redesignated by subsection (b) of this

12 section, is amended by striking ‘‘$25,000,000 for the fiscal

13 year ending September 30, 1992’’ and inserting

14 ‘‘$36,000,000 for the fiscal year ending September 30,

15 1995’’.

16 (g) PENALTIES.—Section 708 of such Act, as redes17 ignated by subsection (b) of this section, is amended—

18 (1) in subsection (a)—

19 (A) by striking ‘‘himself’’ and inserting

20 ‘‘such person’’; and

21 (B) by striking ‘‘shall be punished by’’ and

22 all that follows before the period and inserting

23 ‘‘shall be fined under title 18, United States

24 Code, imprisoned for not more than 5 years, or

25 both’’; and
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1 (2) in subsection (b)—

2 (A) by striking ‘‘him’’ both places it ap3 pears and inserting ‘‘such person’’; and

4 (B) by striking ‘‘shall be punished by’’ and

5 all that follows before the period and inserting

6 ‘‘shall be fined under title 18, United States

7 Code, imprisoned for not more than 5 years, or

8 both’’.

9 (h) RATE OF WAGES.—Section 710 of such Act, as

10 redesignated by subsection (b) of this section, is amend11 ed—

12 (1) in the 1st sentence by striking ‘‘the Davis13 Bacon Act, as amended (40 U.S.C. 276a–276a–5)’’

14 and inserting ‘‘the Act of March 3, 1931, known as

15 the Davis-Bacon Act’’; and

16 (2) in the 3d sentence by striking ‘‘Reorganiza17 tion Plan’’ and all that follows before the period and

18 inserting ‘‘Reorganization Plan Numbered 14 of

19 1950 and section 2 of the Act of June 13, 1934

20 (Chapter 482; 48 Stat. 948)’’.

21 (i) AREA REDEVELOPMENT ACT.—Title VII of such

22 Act (42 U.S.C. 3211–3225) is amended by striking section

23 715 and redesignating section 716 as section 713.
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1 SEC. 119. ACCEPTANCE OF APPLICANTS’ CERTIFICATIONS.

2 Title VII of the Public Works and Economic Develop3 ment Act of 1965 (42 U.S.C. 3211–3226) is further

4 amended by adding at the end the following:

5 ‘‘SEC. 714. ACCEPTANCE OF APPLICANTS’ CERTIFICATIONS.

6 ‘‘The Secretary may accept, when deemed appro7 priate, the applicants’ certifications to meet the require8 ments of this Act.’’.

9 SEC. 120. SUPERVISION OF REGIONAL COUNSELS.

10 Title VII of the Public Works and Economic Develop11 ment Act of 1965 (42 U.S.C. 3211–3226) is further

12 amended by adding at the end the following:

13 ‘‘SEC. 715. SUPERVISION OF REGIONAL COUNSELS.

14 ‘‘The Secretary shall take such actions as may be

15 necessary to ensure that individuals serving as Regional

16 Counsels of the Economic Development Administration re17 port directly to their respective Regional Director.’’.

18 SEC. 121. ECONOMIC RECOVERY FOR DISASTER AREAS.

19 Title VIII of the Public Works and Economic Devel20 opment Act of 1965 (42 U.S.C. 3231–3236) is repealed.

21 SEC. 122. SPECIAL ECONOMIC DEVELOPMENT AND ADJUST22 MENT ASSISTANCE.

23 (a) ELIGIBLE RECIPIENT DEFINED.—Section 902 of

24 the Public Works and Economic Development Act of 1965

25 (42 U.S.C. 3242) is amended—

26 (1) by striking ‘‘, or’’ and inserting ‘‘or’’; and
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1 (2) by inserting before the period at the end the

2 following: ‘‘, or at the discretion of the Secretary a

3 public or private nonprofit organization or associa4 tion’’.

5 (b) GRANT AUTHORITY.—Section 903(a)(1) of such

6 Act (42 U.S.C. 3243(a)(1)) is amended by striking ‘‘un7 employment compensation (in accordance with subsection

8 (d) of this section), rent supplements, mortgage payment

9 assistance, research, technical assistance,’’ and inserting

10 ‘‘administrative expenses, industrial retention,’’.

11 (c) GRANTS FOR UNEMPLOYMENT COMPENSA12 TION.—Section 903(a)(2) of such Act (42 U.S.C.

13 3243(a)(2)) is amended—

14 (1) by striking ‘‘(2)(A) Such grants’’ and in15 serting ‘‘(2) Such grants’’; and

16 (2) by striking subparagraph (B).

17 (d) COORDINATION OF ACTIVITIES.—Section 903(c)

18 of such Act (42 U.S.C. 3243(c)) is amended by striking

19 ‘‘regional commissions’’ and inserting ‘‘other Federal pro20 grams’’.

21 (e) TRANSFER OF FUNDS TO SECRETARY OF

22 LABOR.—Section 903 of such Act (42 U.S.C. 3243) is

23 amended by striking subsection (d).
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1 (f) BASE CLOSINGS AND REALIGNMENTS.—Section

2 903 of such Act (42 U.S.C. 3243) is amended by adding

3 at the end the following new subsection:

4 ‘‘(d) BASE CLOSINGS AND REALIGNMENTS.—

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

6 which the Secretary determines a need for assistance

7 under subsection (a) due to the closure or realign8 ment of a military installation, the Secretary may

9 make such assistance available for projects to be

10 carried out on the military installation and for

11 projects to be carried out in communities adversely

12 affected by the closure or realignment.

13 ‘‘(2) INTEREST IN PROPERTY.—Notwithstand14 ing any other provision of law, the Secretary may

15 provide to an eligible recipient any assistance avail16 able under this Act for a project to be carried out

17 on a military installation that is closed or scheduled

18 for closure or realignment without requiring that the

19 eligible recipient have title to the property or a lease20 hold interest in the property for any specified

21 term.’’.

22 SEC. 123. TREATMENT OF REVOLVING LOAN FUNDS.

23 Title IX of the Public Works and Economic Develop24 ment Act of 1965 (42 U.S.C. 3241–3245) is amended—
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1 (1) by redesignating section 905 as section 909;

2 and

3 (2) by inserting after section 904 the following:

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

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

6 title which are used by an eligible recipient to establish

7 a revolving loan fund shall not be treated, except as pro8 vided by subsection (b), as amounts derived from Federal

9 funds for the purposes of any Federal law after such

10 amounts are loaned from the fund to a borrower and re11 paid to the fund.

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

13 (a) which are loaned from a revolving loan fund to a bor14 rower and repaid to the fund—

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

16 consistent with the purposes of this title; and

17 ‘‘(2) shall be subject to the financial manage18 ment, accounting, reporting, and auditing standards

19 which were originally applicable to such amounts.

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

21 the date of the enactment of this section, the Secretary

22 shall issue regulations to carry out subsection (a).

23 ‘‘(d) PUBLIC REVIEW AND COMMENT.—Before issu24 ing any final guidelines or administrative manuals govern25 ing the operation of revolving loan funds established using
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1 amounts from grants under this title, the Secretary shall

2 provide reasonable opportunity for public review of and

3 comment on such guidelines and administrative manu4 als.’’.

5 SEC. 124. OUTREACH TO COMMUNITIES ADVERSELY AF6 FECTED BY DEFENSE BASE CLOSURES.

7 Title IX of the Public Works and Economic Develop8 ment Act of 1965 (42 U.S.C. 3241–3245) is further

9 amended by adding at the end the following:

10 ‘‘SEC. 906. OUTREACH TO COMMUNITIES ADVERSELY AF11 FECTED BY DEFENSE BASE CLOSURES.

12 ‘‘(a) DESIGNATION OF AGENCY REPRESENTA13 TIVES.—The Assistant Secretary for Economic Develop14 ment shall designate for each State in which communities

15 are adversely affected by defense base closures an individ16 ual to serve as a representative of the Economic Develop17 ment Administration. Such individual may be the State

18 Economic Development Agency Representative or another

19 qualified individual.

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

21 agency representatives under subsection (a) shall provide

22 outreach and technical assistance to communities ad23 versely affected by defense base closures on obtaining as24 sistance from the Economic Development Administra25 tion.’’.
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1 SEC. 125. SALE OF FINANCIAL INSTRUMENTS IN REVOLV2 ING LOAN FUNDS.

3 Title IX of the Public Works and Economic Develop4 ment Act of 1965 (42 U.S.C. 3241–3245) is further

5 amended by adding at the end the following:

6 ‘‘SEC. 907. SALE OF FINANCIAL INSTRUMENTS IN REVOLV7 ING LOAN FUNDS.

8 ‘‘Any loan, loan guarantee, equity, or other financial

9 instrument in the portfolio of a Revolving Loan Fund may

10 be sold, at the discretion of the grantee of the Fund, to

11 a third party provided that the proceeds of the sale—

12 ‘‘(1) shall be deposited in the Fund and only

13 used for projects which are consistent with the pur14 poses of this title, and

15 ‘‘(2) shall be subject to the financial manage16 ment, accounting, reporting, and auditing standards

17 which were originally applicable to the financial in18 strument.’’.

19 SEC. 126. ECONOMIC DEVELOPMENT CHALLENGE GRANTS

20 DEMONSTRATION PROJECT.

21 Title IX of the Public Works and Economic Develop22 ment Act of 1965 (42 U.S.C. 3241–3245) is further

23 amended by adding at the end the following:
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1 ‘‘SEC. 908. ECONOMIC DEVELOPMENT CHALLENGE GRANTS

2 DEMONSTRATION PROJECT.

3 ‘‘(a) IN GENERAL.—In order to study the feasibility

4 and desirability of using challenge grants to generate new

5 pools of investment capital in areas suffering from long6 term economic deterioration, the Secretary shall establish

7 a 2-year demonstration project under which the Secretary

8 shall provide grants to selected recipients, to be matched

9 by the recipients 1 dollar for every 2 Federal dollars, for

10 the purpose of establishing substantially leveraged financ11 ing for business development and other innovative eco12 nomic development efforts.

13 ‘‘(b) FEDERAL AND COMMUNITY CONTRIBUTIONS.—

14 ‘‘(1) IN GENERAL.—The Secretary shall grant 2

15 dollars for every 1 dollar raised by each selected re16 cipient, up to $10,000,000 per year per selected re17 cipient.

18 ‘‘(2) USE OF OTHER FEDERAL FUNDS IN CON19 JUNCTION WITH CHALLENGE GRANT.—Funds from

20 other Federal programs may be used in conjunction

21 or merged with the challenge grant and matching

22 funds to form a larger investment fund.

23 ‘‘(c) ESTABLISHMENT AND USE OF FUNDS.—

24 ‘‘(1) ESTABLISHMENT.—For purposes of this

25 Act, an investment fund established by a selected re26 cipient consists of—
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1 ‘‘(A) the economic development challenge

2 grant received by the selected recipient;

3 ‘‘(B) the matching funds required under

4 subsection (b); and

5 ‘‘(C) any such other funds that may be de6 rived from other sources, including other Fed7 eral funds.

8 ‘‘(2) USE.—An investment fund shall be used

9 by the selected recipients for the purposes of gener10 ating long-term sustainable economic development

11 and job growth in areas identified by the selected re12 cipients, pursuant to the requirements and limita13 tions of eligibility and performance in subsections

14 (d), (e), (f), (g) and (h).

15 ‘‘(d) ELIGIBLE RECIPIENTS.—The Secretary shall

16 make grants to any eligible recipients for use in an area

17 which must meet 1 or more of the following criteria:

18 ‘‘(1) The area has a per capita income of 80

19 percent or less of the national average.

20 ‘‘(2) The area has an unemployment rate 1 per21 cent above the national average percentage for the

22 more recent 24-month period for which statistics are

23 available.

24 ‘‘(3) The area has been determined by the Sec25 retary to have at least 1 of the following conditions:
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1 ‘‘(A) A large concentration of low-income

2 persons (as defined in section 401(e)).

3 ‘‘(B) Areas having substantial outmigra4 tion.

5 ‘‘(C) Substantial underemployment or un6 employment.

7 An eligible recipient may include any local government or

8 group of local governments, economic development dis9 trict, Indian tribe, public or private nonprofit organization

10 or association, community-based organization, business or

11 worker organization, or any consortium of such entities,

12 that is able to demonstrate to the satisfaction of the Sec13 retary that they can carry out the objectives of this pro14 gram pursuant to the criteria and requirements estab15 lished in this section.

16 ‘‘(e) SELECTION OF DEMONSTRATION PROJECTS.—

17 ‘‘(1) IN GENERAL.—The Secretary shall make

18 grants to selected recipients from 3 areas suffering

19 from long-term economic distress.

20 ‘‘(2) DISTRIBUTION.—One selected recipient

21 shall be from a rural area which has been subjected

22 to long-term economic distress as a result of a major

23 decline in the region’s key industries, 1 from an area

24 that is a combination of rural, small metropolitan,

25 and suburban communities, and 1 from an urban
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1 area with excessive unemployment, concentrated pov2 erty, and high crime.

3 ‘‘(3) INDUSTRIAL RETENTION STRATEGY RE4 QUIREMENT.—Of the 3 recipients described in para5 graph (2), at least 1 of the projects selected shall in6 clude an industrial retention strategy. The selected

7 recipient from a rural area shall not be required to

8 have an industrial retention strategy.

9 ‘‘(f) GRANT SELECTION PROCESS.—

10 ‘‘(1) NATIONAL COMPETITION.—The Secretary

11 shall select recipients of the challenge grants

12 through a nationally competitive process.

13 ‘‘(2) ELIGIBILITY REQUIREMENT.—Each se14 lected recipient must submit a comprehensive strat15 egy for generating sustained, long-term economic

16 growth and for both preserving and creating high17 quality jobs.

18 ‘‘(3) PREFERENCE FOR CERTAIN PROJECTS.—

19 The Secretary shall give preference to eligible recipi20 ents which—

21 ‘‘(A) utilize the Federal grant plus match22 ing funds to further leverage private and public

23 capital to create an even larger economic devel24 opment investment fund;
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1 ‘‘(B) represent consortia or partnerships

2 comprised of at least 2 or more of the groups

3 identified in subsection (d); or

4 ‘‘(C) intend to use their investment funds

5 to finance or leverage financing for new busi6 ness development and startups, industrial serv7 ices, industrial modernization of local-based

8 firms or industrial retention (including em9 ployee stock ownership plans and worker or

10 management buyouts), or other economic devel11 opment strategies that illustrate ‘best practices’

12 in economic development.

13 ‘‘(4) BROAD-BASED PARTICIPATION TO BE EN14 COURAGED.—The Secretary shall strongly encourage

15 broad-based participation of public and private enti16 ties within an area in the development and imple17 mentation of the challenge grant proposals submit18 ted by eligible recipients.

19 ‘‘(g) LIMITATIONS.—The investment funds estab20 lished by the selected recipients shall—

21 ‘‘(1) not be used to permit units of State and

22 local government to offer tax inducements to attract

23 businesses to locate in the area; and

24 ‘‘(2) be subject to the same conditions described

25 in section 202(b)(1).
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1 No area may receive an economic development challenge

2 grant if it has been designated an empowerment or enter3 prise community under section 13301 of the Omnibus

4 Budget Reconciliation Act of 1993.

5 ‘‘(h) PERFORMANCE EVALUATIONS; REPORT TO

6 CONGRESS.—

7 ‘‘(1) EVALUATION OF EFFECTIVENESS.—The

8 Secretary shall conduct performance evaluations of

9 the demonstration challenge grant project to assess

10 the effectiveness of this kind of program in generat11 ing sustained economic growth and job creation in

12 areas of the Nation experiencing long-term economic

13 distress.

14 ‘‘(2) REPORT.—Based on the evaluations con15 ducted pursuant to paragraph (1), the Secretary

16 shall submit an annual report to Congress with rec17 ommendations for expansion, modification or termi18 nation of the program.

19 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—Of the

20 funds authorized to be appropriated under section 909,

21 there are authorized to be appropriated $25,000,000 per

22 fiscal year for fiscal years 1995 and 1996 to carry out

23 this section. Such sums shall remain available until ex24 pended.’’.
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1 SEC. 127. AUTHORIZATION OF APPROPRIATIONS.

2 Section 909 of the Public Works and Economic De3 velopment Act of 1965, as redesignated by section 122 of

4 this Act, is amended to read as follows:

5 ‘‘SEC. 909. AUTHORIZATION OF APPROPRIATIONS.

6 ‘‘(a) IN GENERAL.—There is authorized to be appro7 priated to carry out this title $115,542,000 for fiscal year

8 1994 and $81,000,000 per fiscal year for each of fiscal

9 years 1995 and 1996. Such sums shall remain available

10 until expended.

11 ‘‘(b) SET-ASIDE FOR DEFENSE CONVERSION ACTIVI12 TIES.—Of amounts appropriated pursuant to subsection

13 (a) for fiscal year 1994, not less than $80,000,000 shall

14 be available for purposes of assisting eligible recipients in

15 activities related to defense conversion.

16 ‘‘(c) ADDITIONAL AMOUNTS.—In addition to the ap17 propriations authorized by subsection (a), there are au18 thorized to be appropriated to carry out this title such

19 sums as may be necessary to provide assistance for de20 fense conversion activities and to provide assistance in the

21 case of a natural disaster. Such sums shall remain avail22 able until expended.’’.

23 SEC. 128. REFERENCES TO THE SECRETARY.

24 (a) REFERENCES TO ‘‘HE’’.—The Public Works and

25 Economic Development Act of 1965 (42 U.S.C. 3121 et
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1 seq.) is amended by striking ‘‘he’’ and inserting ‘‘the Sec2 retary’’ in each of the following:

3 (1) Section 101(a)(1).

4 (2) The 4th sentence of section 101(c).

5 (3) Section 201(a).

6 (4) Section 202(b)(5).

7 (5) Section 202(b)(9)(B).

8 (6) The 1st sentence of section 301(b).

9 (7) Section 602(b), as redesignated by section

10 112(b) of this Act.

11 (8) Section 701(2).

12 (9) Section 701(4).

13 (10) Section 701(12)

14 (11) Section 706, as redesignated by section

15 117(b) of this Act.

16 (b) REFERENCES TO ‘‘HIS’’.—Such Act is further

17 amended by striking ‘‘his’’ and inserting ‘‘the Secretary’s’’

18 in each of the following:

19 (1) The 3d and 4th sentences of section 301(a).

20 (2) Section 701(4).

21 (3) Section 705, as redesignated by section

22 117(b) of this Act.

23 (4) Section 903(c).
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1 (c) REFERENCES TO ‘‘HIM’’.—Such Act is further

2 amended by striking ‘‘him’’ and inserting ‘‘the Secretary’’

3 in each of the following:

4 (1) Section 602(b), as redesignated by section

5 112(b) of this Act.

6 (2) Section 701(4) each place it appears.

7 (3) Section 701(6).

8 (4) Section 701(7) both places it appears.

9 (5) Section 701(9) both places it appears.

10 (d) OTHER REFERENCES.—Such Act is further

11 amended—

12 (1) in section 701 in the matter preceding para13 graph (1) by striking ‘‘his duties’’ and inserting ‘‘the

14 duties of the Secretary’’;

15 (2) in section 701(4) by striking ‘‘he shall de16 termine’’ and inserting ‘‘the Secretary determines’’;

17 (3) in section 701(6) by striking ‘‘he shall de18 termine’’ and inserting ‘‘the Secretary shall deter19 mine’’; and

20 (4) in section 701(11) by striking ‘‘his prop21 erty’’ and all that follows before the semicolon and

22 inserting ‘‘the Secretary’s property’’.

23 SEC. 129. COMPLIANCE WITH BUY AMERICAN ACT.

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

25 any amendment made by this title, may be expended in
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1 violation of sections 2 through 4 of the Act of March 3,

2 1933 (41 U.S.C. 10a–10c; popularly known as the ‘‘Buy

3 American Act’’), which are applicable to those funds. The

4 Secretary of Commerce shall provide to each recipient of

5 such funds notice of the requirements specified in this sec6 tion and information on methods to comply with such re7 quirements.

8 SEC. 130. REGULATORY RELIEF.

9 The Administrator shall, upon petition from an entity

10 impacted adversely by Federal regulations on matters of

11 economic development as described in this Act, notify the

12 departments and agencies involved with promulgating and

13 administering those regulations and suggest to those de14 partments and agencies that regulations be waived which

15 interfere with economic development. Nothing in this sec16 tion shall affect the ability of the Administrator to carry

17 out his duties otherwise provided by law.

18 TITLE II—APPALACHIAN

19 REGIONAL DEVELOPMENT

20 SEC. 201. FINDINGS AND PURPOSES.

21 Section 2 of the Appalachian Regional Development

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

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

24 the end of the 6th sentence and inserting ‘‘and in
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1 severely distressed and underdeveloped counties and

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

3 (2) by adding at the end the following new sub4 section:

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

6 while substantial progress has been made in fulfilling

7 many of the objectives of this Act, rapidly changing na8 tional and global economics over the past decade have cre9 ated new problems and challenges for rural areas through10 out the Nation and especially for the Appalachian region.

11 Thus, the problems of the region are not only to provide

12 the infrastructure necessary to economic and human re13 source development, to develop its industry, and to gen14 erate a diversified regional economy, but to make the re15 gion’s industrial and commercial resources more competi16 tive in national and world markets. It is, therefore, also

17 the purpose of this Act to provide a framework for coordi18 nating Federal, State, and local initiatives to respond to

19 the economic competitive challenge through improving the

20 skills of the region’s manpower, adapting and applying

21 new technologies for the region’s businesses, and improv22 ing the access of the region’s businesses to the technical

23 and financial resources necessary to their development

24 while continuing to address the need to provide basic serv25 ices for the more disadvantaged areas of the region so as
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1 to provide a fairer opportunity for the people of the region

2 to share the quality of life generally enjoyed by citizens

3 across this Nation.’’.

4 SEC. 202. MEETINGS.

5 Section 101 of the Appalachian Regional Develop6 ment Act of 1965 (40 U.S.C. App. 101) is amended—

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

8 following:

9 ‘‘The Commission shall conduct at least one meeting each

10 year with the presence of the Federal Cochairman and at

11 least a majority of the State members. The Commission

12 may conduct such additional meetings by electronic means

13 as the Commission considers advisable.’’;

14 (2) at the end of the third sentence of sub15 section (b) by striking ‘‘present’’; and

16 (3) at the end of the fourth sentence of sub17 section (c) by striking ‘‘to be present’’.

18 SEC. 203. AUTHORIZATIONS FOR ADMINISTRATIVE EX19 PENSES.

20 Section 105(b) of the Appalachian Regional Develop21 ment Act of 1965 (40 U.S.C. App. 105(b)) is amended

22 to read as follows:

23 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—

24 ‘‘(1) IN GENERAL.—There is authorized to be

25 appropriated to carry out this section $3,400,000 for
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1 fiscal year 1994 and $3,600,000 per fiscal year for

2 each of fiscal years 1995 and 1996. Such sums shall

3 remain available until expended.

4 ‘‘(2) EXPENSES OF FEDERAL COCHAIRMAN.—

5 Of amounts appropriated pursuant to paragraph (1),

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

7 not to exceed $1,500,000 per fiscal year for each of

8 fiscal years 1995 and 1996 shall be available for ex9 penses of the Federal Cochairman, the Federal Co10 chairman’s alternate, and the Federal Cochairman’s

11 staff.’’.

12 SEC. 204. EXTENSION OF LEASE TERMS.

13 Section 106(7) of the Appalachian Regional Develop14 ment Act of 1965 (40 U.S.C. App. 106(7)) is amended

15 by striking ‘‘1982’’ and inserting ‘‘1996’’.

16 SEC. 205. HIGHWAY SYSTEM.

17 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

18 201(g) of the Appalachian Regional Development Act of

19 1965 (40 U.S.C. App. 201(g)) is amended to read as fol20 lows:

21 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

22 is authorized to be appropriated to carry out this section

23 $160,000,000 for fiscal year 1994, $100,000,000 for each

24 of fiscal years 1995 and 1996, and such additional sums
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1 as may be necessary for each of fiscal years 1995 and

2 1996. Such sums shall remain available until expended.’’.

3 (b) FEDERAL SHARE.—

4 (1) GENERAL RULE.—Section 201(h)(1) of

5 such Act (40 U.S.C. App. 201(h)(1)) is amended by

6 striking ‘‘70 per centum’’ and inserting ‘‘80 per7 cent’’.

8 (2) APPLICABILITY.—The amendment made by

9 paragraph (1) shall apply to projects approved after

10 March 31, 1979.

11 SEC. 206. SUPPLEMENTS TO FEDERAL GRANT-IN-AID PRO12 GRAMS.

13 (a) AVAILABILITY OF AMOUNTS.—The first sentence

14 of section 214(a) of the Appalachian Regional Develop15 ment Act of 1965 (40 U.S.C. App. 214(a)) is amended

16 by striking ‘‘the President is authorized to provide funds

17 to the Federal Cochairman to be used’’ and inserting ‘‘the

18 Federal Cochairman may use amounts made available

19 under this section’’.

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

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

22 App. 214(c)) is amended by striking ‘‘on or before Decem23 ber 31, 1980,’’.

24 (c) LIMITATION ON COVERED ROAD PROJECTS.—

25 The second sentence of section 214(c) of such Act is
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1 amended by inserting ‘‘authorized by title 23, United

2 States Code’’ after ‘‘road construction’’.

3 SEC. 207. PROGRAM DEVELOPMENT CRITERIA.

4 (a) CONSIDERATIONS.—Section 224(a) of the Appa5 lachian Regional Development Act of 1965 (40 U.S.C.

6 App. 224(a)) is amended by inserting before the semicolon

7 at the end of paragraph (1) the following: ‘‘or in a severely

8 distressed and underdeveloped county or area lacking re9 sources for basic services’’.

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

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

12 follows:

13 ‘‘(b) LIMITATION.—No financial assistance shall be

14 authorized under this Act to be used to assist establish15 ments relocating from one area to another.’’.

16 SEC. 208. GRANTS FOR ADMINISTRATIVE EXPENSES AND

17 DEMONSTRATION PROJECTS.

18 (a) AVAILABILITY OF AMOUNTS.—Section 302(a) of

19 the Appalachian Regional Development Act of 1965 (40

20 U.S.C. App. 302(a)) is amended—

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

22 ‘‘The Commission’’; and

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

24 ‘‘to the Commission’’ each place it appears.
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1 (b) RESEARCH AND DEMONSTRATION PROJECTS.—

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

3 is amended—

4 (1) by inserting after ‘‘technical assistance’’ the

5 following: ‘‘(including technical assistance for busi6 ness development and stabilization and application

7 of technologies (including telecommunication tech8 nologies) and productivity improvement)’’;

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

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

11 programs to upgrade employability of the region’s

12 people)’’; and

13 (3) by inserting after ‘‘demonstrations’’ the fol14 lowing: ‘‘(including demonstrations of service con15 solidations and other methods of increasing effi16 ciency of local governments, the establishment and

17 operation by States, public agencies, or nonprofit de18 velopment organizations of revolving funds for busi19 ness assistance loans, the establishment and oper20 ation of business incubators and the provision of in21 dustrial facilities and equipment by public agencies

22 and nonprofit organizations on such terms (includ23 ing terms of reasonable recovery of grant funds

24 upon resale) as are approved by the Commission,

25 and the acquisition and development of land)’’.
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1 (c) SOLID WASTE DISPOSAL DEMONSTRATION

2 PROJECTS.—Section 302(b) of such Act (40 U.S.C. App.

3 302(b)) is amended by adding at the end the following

4 new paragraph:

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

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

7 of demonstrating solid waste disposal techniques in rural

8 areas.’’.

9 (d) REPEAL OF PROVISION ON USE OF INFORMATION

10 FROM RESEARCH AND DEVELOPMENT ACTIVITIES.—Sec11 tion 302(e) of such Act (40 U.S.C. 302(e)) is repealed.

12 SEC. 209. AUTHORIZATION OF APPROPRIATIONS FOR GEN13 ERAL PROGRAM.

14 Section 401 of the Appalachian Regional Develop15 ment Act of 1965 (40 U.S.C. App. 401) is amended to

16 read as follows:

17 ‘‘SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

18 ‘‘In addition to the appropriations authorized in sec19 tion 105 for administrative expenses and in section 201(g)

20 for the Appalachian development highway system and

21 local access roads, there is authorized to be appropriated

22 to the Commission to carry out this Act $83,400,000 per

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

24 Such sums shall remain available until expended.’’.
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1 SEC. 210. DEFINITION OF APPALACHIAN REGION.

2 Section 403 of the Appalachian Regional Develop3 ment Act of 1965 (40 U.S.C. App. 403) is amended—

4 (1) in the 1st undesignated paragraph (relating

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

6 and

7 (2) in the 12th undesignated paragraph (relat8 ing to Virginia)—

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

10 ‘‘Lee,’’; and

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

12 after ‘‘Pulaski,’’.

13 SEC. 211. EXTENSION OF TERMINATION DATE.

14 Section 405 of the Appalachian Regional Develop15 ment Act of 1965 (40 U.S.C. App. 405) is amended by

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

17 SEC. 212. REGIONAL DEVELOPMENT TASK FORCE.

18 (a) ESTABLISHMENT.—There is established a Re19 gional Development Task Force (hereinafter in this sec20 tion referred to as the ‘‘Task Force’’).

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

22 to conduct a study on—

23 (1) the extent to which the unique characteris24 tics of the Appalachian Regional Commission (in25 cluding the Commission’s Federal-State partnership,

26 program flexibility, and regional approach) have con-
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1 tributed to the achievement of the Commission’s

2 goals; and

3 (2) whether or not such characteristics may be

4 used to address needs which may exist in other rural

5 areas suffering from economic distress, including the

6 Lower Mississippi delta, Mexican border, and Ozark

7 areas.

8 (c) MEMBERSHIP.—

9 (1) VOTING MEMBERS.—The Task Force shall

10 be composed of 9 voting members appointed, not

11 later than 90 days after the date of the enactment

12 of this Act, as follows:

13 (A) Three members appointed by the

14 President.

15 (B) Three members appointed by the

16 President pro tempore of the Senate.

17 (C) Three members appointed by the

18 Speaker of the House of Representatives.

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

20 State Cochairmen of the Appalachian Regional Com21 mission shall serve as ex officio, nonvoting members

22 of the Task Force.

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

24 the request of the Task Force, the Appalachian Regional

25 Commission shall provide to the Task Force any facilities,
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1 supplies, and personnel necessary for the Task Force to

2 carry out its responsibilities under this Act; except that

3 the total cost of such facilities, supplies, and personnel

4 shall not exceed $500,000.

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

6 study under subsection (b), the Commission shall incor7 porate the results of other studies on the needs of rural

8 areas described in subsection (b) and shall not duplicate

9 such studies.

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

11 of the first meeting of the Task Force, the Task Force

12 shall transmit to Congress a report on the results of the

13 study conducted under subsection (b).

14 (g) TERMINATION.—The Task Force shall terminate

15 on the date of transmittal of the report under subsection

16 (f).

17 SEC. 213. COMPLIANCE WITH BUY AMERICAN ACT.

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

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

20 violation of sections 2 through 4 of the Act of March 3,

21 1933 (41 U.S.C. 10a–10c; popularly known as the ‘‘Buy

22 American Act’’), which are applicable to those funds. The

23 Appalachian Regional Commission shall provide to each

24 recipient of such funds notice of the requirements specified
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1 in this section and information on methods to comply with

2 such requirements.

3 TITLE III—BUSINESS

4 DEVELOPMENT ASSISTANCE

5 SEC. 301. SHORT TITLE.

6 This title may be cited as the ‘‘Economic Growth and

7 Technology Commercialization Act of 1994’’.

8 SEC. 302. FINDINGS, PURPOSES, AND DEFINITIONS.

9 (a) FINDINGS.—The Congress hereby finds the fol10 lowing:

11 (1) Through its support and funding of re12 search and development in this Nation’s Federal

13 agencies, laboratories, and educational institutions,

14 the Federal Government has fostered the creation of

15 thousands of technologies, processes, and other pro16 prietary rights owned, or held in whole or part, by

17 the Federal Government.

18 (2) If commercialized, these technologies, proc19 esses, and other proprietary rights owned, or held in

20 whole or part, by the Federal Government hold the

21 potential to be a significant tool to foster economic

22 growth and to create significant numbers of new

23 jobs at good wages for American workers.

24 (3) Throughout the Federal Government, there

25 is no single inventory or source of information on
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1 technologies, processes, and other proprietary rights

2 owned, or held in whole or part, by the Federal Gov3 ernment.

4 (4) Information on technologies, processes, and

5 other proprietary rights owned, or held in whole or

6 part, by the Federal Government is not standardized

7 in form or content, is separately maintained by nu8 merous Federal agencies and departments, and is

9 not easily accessible by the public.

10 (5) Businesses and entrepreneurs in areas in

11 need of economic growth and revitalization are large12 ly unaware of the existence of these technologies,

13 processes, and other proprietary rights and largely

14 unaware of the possibilities for obtaining the rights

15 to these technologies, processes, and other propri16 etary rights for the purpose of commercialization.

17 (6) It is in the economic interest of the United

18 States to facilitate the private sector commercializa19 tion of technologies, processes, and other proprietary

20 rights by United States businesses located in areas

21 in need of economic growth and revitalization.

22 (7) Greater effectiveness may be achieved

23 through the utilization of the private sector cor24 porate structure and profit incentives in facilitating

25 the commercialization of technologies, processes, and
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1 other proprietary rights than can reasonably be ex2 pected by the Federal Government performing this

3 function.

4 (b) PURPOSES.—The purposes of this title are as

5 follows:

6 (1) To provide assistance to private-sector

7 United States businesses, located in areas in need of

8 economic stabilization and revitalization, to commer9 cialize technologies, processes, and other proprietary

10 rights owned, or held in whole or part, by the Fed11 eral Government.

12 (2) To create new employment opportunities by

13 facilitating the commercialization of technologies,

14 processes, and other proprietary rights by United

15 States businesses and entrepreneurs in areas in need

16 of economic growth and revitalization.

17 (3) To develop a single, comprehensive data

18 base of information on technologies, processes, and

19 other proprietary rights owned, or held in whole or

20 part, by the Federal Government, which is standard21 ized and easily accessible.

22 (4) To heighten the awareness of United States

23 businesses and entrepreneurs of the availability for

24 commercialization of technologies, processes, and
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1 other proprietary rights owned, or held in whole or

2 part, by the Federal Government.

3 (c) DEFINITIONS.—For purposes of this title, the fol4 lowing definitions shall apply:

5 (1) SECRETARY.—The term ‘‘Secretary’’ means

6 the Secretary of Commerce.

7 (2) CORPORATION.—The term ‘‘Corporation’’

8 means the Business Development and Technology

9 Commercialization Corporation established under

10 this title.

11 (3) BOARD.—The term ‘‘Board’’ means the

12 Board of Directors of the Business Development and

13 Technology Commercialization Corporation.

14 (4) QUALIFIED CONCERN.—The term ‘‘qualified

15 concern’’ means a United States-based consortium, a

16 private United States business, or an educational in17 stitution participating in a joint project with 1 or

18 more private United States businesses, for the devel19 opment and commercialization of technologies, proc20 esses, and other proprietary rights—

21 (A) owned or held in whole or part by Fed22 eral departments, agencies, or government-con23 trolled corporations;

24 (B) developed in Federal laboratories;
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1 (C) arising in the course of federally fund2 ed research at educational institutions, other

3 units of government, or with private concerns;

4 or

5 (D) which are made available to the Fed6 eral Government by private concerns.

7 SEC. 303. CONSOLIDATION OF INFORMATION ON TECH8 NOLOGIES.

9 (a) ESTABLISHMENT OF DATA.—The Secretary shall

10 establish and maintain an integrated, comprehensive data

11 base describing all technologies, processes, and other pro12 prietary rights owned, or held in whole or part, by the

13 Federal Government, or which originated in the course of

14 federally funded research in which the Federal Govern15 ment has an interest.

16 (b) STANDARDIZATION AND ACCESSIBILITY OF IN17 FORMATION.—The Secretary shall take such steps as are

18 necessary to ensure that the information contained in the

19 data base established under subsection (a) is in a stand20 ardized form, is accessible and usable in a manner as sim21 ple and easy to use as possible, recognizing the needs of

22 small- and medium-sized businesses.

23 (c) RESPONSIBILITIES.—In carrying out this section,

24 the Secretary shall—
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1 (1) consult with and, to the extent practicable,

2 utilize the capabilities of other executive agencies, as

3 appropriate, to ensure the efficient and effective im4 plementation of this section; and

5 (2) explore, with other executive agencies, ways

6 to avoid duplication of effort by consolidating the

7 administration of the program established by this

8 section with any other similar Federal program, and

9 as part of such consolidation may delegate adminis10 trative functions, as necessary and appropriate, to

11 another executive agency.

12 (d) OTHER FEDERAL AGENCIES.—Other executive

13 agencies shall provide such information, and in such form,

14 as determined by the Secretary and shall cooperate with

15 the Secretary in carrying out this section.

16 (e) ACCESS TO THE DATA BASE.—

17 (1) ACCESS TO THE DATA BASE BY THE COR18 PORATION.—Except as provided in paragraph (3),

19 the Secretary shall provide unlimited access to the

20 data base established under this section to the Busi21 ness Development and Technology Commercializa22 tion Corporation established under this part, without

23 fee, to assist the Corporation in meeting its respon24 sibilities under this part.
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1 (2) ACCESS TO THE DATA BASE BY THE PUB2 LIC.—Except as provided in paragraph (3), the Sec3 retary shall, by regulation, develop and implement

4 procedures providing for access to the data base es5 tablished under this section to members of the gen6 eral public.

7 (3) RESTRICTIONS.—If, in consultation with the

8 heads of other executive agencies, the Secretary de9 termines that access by the Corporation or any other

10 person to information contained in the data base es11 tablished under this section would—

12 (A) threaten national security;

13 (B) violate the proprietary rights of any

14 private interest; or

15 (C) be otherwise inappropriate,

16 the Secretary shall take such steps as the Secretary

17 may determine to be appropriate to limit access to

18 the information in the data base described in sub19 paragraph (A), (B), or (C) to the Corporation or

20 any other person.

21 (f) GAO REVIEW OF CURRENT FEDERAL TECH22 NOLOGY UTILIZATION AND COMMERCIALIZATION EF23 FORTS.—

24 (1) IN GENERAL.—The Comptroller General of

25 the United States shall conduct a review of all tech-
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1 nology utilization and commercialization activities

2 within all Federal departments, agencies, and lab3 oratories, or which are otherwise supported by Fed4 eral funds. This review shall identify those activities

5 which may overlap or duplicate the technology utili6 zation and commercialization activities provided for

7 under this title.

8 (2) REPORTS.—Before the end of the 1-year pe9 riod beginning on the date of the enactment of this

10 Act, the Comptroller General shall issue a report to

11 the Congress describing in detail—

12 (A) the findings of the review directed

13 under paragraph (1),

14 (B) the funding levels of each existing

15 Federal technology utilization and commer16 cialization activities, and

17 (C) recommendations for the modification

18 or elimination of any existing Federal tech19 nology utilization and commercialization activi20 ties which the Comptroller General finds to be

21 duplicative of the activities provided for under

22 this title.
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1 SEC. 304. BUSINESS DEVELOPMENT AND TECHNOLOGY

2 COMMERCIALIZATION CORPORATION.

3 (a) ASSESSMENT OF TECHNOLOGY UTILIZATION AND

4 COMMERCIALIZATION PROGRAMS OF THE FEDERAL GOV5 ERNMENT.—

6 (1) IN GENERAL.—The Director of the Office of

7 Science and Technology Policy in the Executive Of8 fice of the President shall—

9 (A) assess the performance of technology

10 utilization and commercialization programs of

11 the Federal Government as of the date of the

12 enactment of this Act;

13 (B) evaluate the advantages and disadvan14 tages of a centralized as opposed to a decentral15 ized approach to technology utilization and

16 commercialization; and

17 (C) develop recommendations on ways to

18 improve the technology utilization and commer19 cialization efforts of the Federal Government.

20 (2) REPORT.—The Director of the Office of

21 Science and Technology Policy shall submit a report

22 containing the findings, conclusions, and rec23 ommendations of the Director pursuant to para24 graph (1) to the President, the Committee on Bank25 ing, Finance and Urban Affairs and the Committee

26 on Science, Space, and Technology of the House of
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1 Representatives, and the Committee on Commerce,

2 Science, and Transportation of the Senate.

3 (3) CONSULTATION.—In carrying out the duties

4 of the Director under paragraph (1), the Director

5 shall consult with interested agencies and depart6 ment of the Federal Government.

7 (b) IMPROVED INTEGRATION OF TECHNOLOGY COM8 MERCIALIZATION PROGRAMS AND FEDERAL PROGRAMS

9 TO ASSIST ECONOMICALLY DISTRESSED COMMUNITIES.—

10 (1) IN GENERAL.—The Secretary shall identify

11 ways to promote more effective integration of Fed12 eral policies and programs relating to technology uti13 lization and commercialization with Federal policies

14 and programs for assisting economically distressed

15 communities establish stable and diversified local

16 economies.

17 (2) REPORT.—The Secretary shall submit a re18 port containing any findings, conclusions, and rec19 ommendations of the Secretary pursuant to para20 graph (1) to the President, the Committee on Bank21 ing, Finance and Urban Affairs and the Committee

22 on Science, Space, and Technology of the House of

23 Representatives, and the Committee on Commerce,

24 Science, and Transportation of the Senate.

25 (c) ESTABLISHMENT OF CORPORATION.—
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1 (1) IN GENERAL.—Not later than the earlier

2 of—

3 (A) the end of the 12-month period begin4 ning on the date of the enactment of this Act;

5 or

6 (B) the end of the 30-day period beginning

7 on the date the report of the Director of the Of8 fice of Science and Technology Policy is submit9 ted to the President pursuant to subsection

10 (a)(2),

11 the President shall provide for the establishment of

12 a corporation to be known as the ‘‘Business Devel13 opment and Technology Commercialization Corpora14 tion’’ (hereafter in this title referred to as the ‘‘Cor15 poration’’), unless the President, after consideration

16 of such report, makes a finding that the establish17 ment of the Corporation would impair the operation

18 of the Federal policies and programs relating to

19 technology utilization and commercialization.

20 (2) REPORT TO CONGRESS.—If the President

21 makes a finding described in paragraph (1) with re22 spect to the establishment of the Corporation, the

23 President shall transmit a report describing the

24 basis for the finding to the Committee on Banking,

25 Finance and Urban Affairs and the Committee on
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1 Science, Space, and Technology of the House of

2 Representatives, and the Committee on Commerce,

3 Science, and Transportation of the Senate.

4 (3) PURPOSE.—The Corporation shall be oper5 ated for the purpose of fostering economic growth,

6 assisting in the creation of new employment oppor7 tunities, and strengthening the industrial base of the

8 United States by facilitating the utilization and com9 mercialization of technologies, processes, and other

10 proprietary rights—

11 (A) owned or held in whole or part by Fed12 eral departments, agencies, or government-con13 trolled corporations;

14 (B) developed in Federal laboratories;

15 (C) arising in the course of federally fund16 ed research at educational institutions, other

17 units of government, or with private concerns;

18 and

19 (D) which are made available by private

20 concerns.

21 (4) CORPORATION NOT AN ESTABLISHMENT OF

22 THE UNITED STATES.—The Corporation shall not be

23 an agency or establishment of the United States.

24 (d) PROCESS OF ORGANIZATION.—

25 (1) INCORPORATION.—
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1 (A) IN GENERAL.—The Secretary, the Sec2 retary of Labor, and the Administrator of the

3 Small Business Administration shall—

4 (i) provide for the establishment of

5 the Corporation under the business cor6 poration laws of such State as the Presi7 dent determines to be appropriate; and

8 (ii) serve as the incorporators of the

9 Corporation and as the initial members of

10 the board of directors of the Corporation

11 until their successors are elected and quali12 fied.

13 (B) NECESSARY ACTION AUTHORIZED.—

14 The incorporators referred to in subparagraph

15 (A) shall take such other actions as may be nec16 essary to establish the Corporation.

17 (C) REVIEW OF PROPOSED ORGANIZATION

18 OF CORPORATION.—The President shall request

19 the National Academy of Public Administration

20 to—

21 (i) review the proposed organization of

22 the Corporation to ensure that the organi23 zation plan conforms with sound principles

24 of administration; and
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1 (ii) submit a report to the President

2 in a timely manner with the Academy’s

3 such findings, conclusions, and rec4 ommendations the Academy may determine

5 to be appropriate.

6 (2) PRIVATIZATION OF THE CORPORATION.—

7 (A) IN GENERAL.—Following the establish8 ment of the Corporation, the Corporation shall

9 be converted to private ownership and manage10 ment in such form and manner as the President

11 determines to be appropriate, after consulting

12 with the Committee on Banking, Finance and

13 Urban Affairs and the Committee on Science,

14 Space, and Technology of the House of Rep15 resentatives, and the Committee on Commerce,

16 Science, and Transportation of the Senate.

17 (B) SOLICITATION OF PROPOSALS FOR

18 CONVERSION.—The President shall solicit pro19 posals for the conversion of the Corporation to

20 private ownership and management.

21 (3) SELECTION CRITERIA AND PROCEDURES.—

22 (A) IN GENERAL.—The President, in con23 sultation with the Secretary, shall make the

24 final selection of a proposal for the conversion
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1 of the Corporation to private ownership and

2 management.

3 (B) CRITERIA FOR SELECTING A PRO4 POSAL TO RECOMMEND TO THE PRESIDENT.—

5 In selecting a proposal to recommend to the

6 President for the conversion of the Corporation,

7 as described in subparagraph (A), the Secretary

8 shall take into consideration the following fac9 tors—

10 (i) the quality of the operational plan;

11 (ii) the soundness of the financing of

12 the organization and of the operational

13 plan;

14 (iii) the qualifications of, and the di15 versity of talents and skills represented by,

16 the submitters of the proposal, including

17 the extent to which a combination of orga18 nizations is submitting a joint proposal;

19 (iv) whether a State government, or

20 unit of a State government, is participat21 ing financially with the organization sub22 mitting a proposal;

23 (v) the intentions of the submitters of

24 the proposal to locate the headquarters of

25 the Corporation in an area which is not lo-
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1 cated in the 50 largest Metropolitan Sta2 tistical Areas, based on the 1990 Census;

3 and

4 (vi) such other factors as the

5 incorporators determine to be appropriate

6 in meeting the purposes of this title.

7 (C) PROCEDURES FOR SELECTING A PRO8 POSAL TO RECOMMEND TO THE PRESIDENT.—

9 In selecting a proposal to recommend to the

10 President for the conversion of the Corporation,

11 as described in subparagraph (A), the Secretary

12 shall ensure that in the selection process—

13 (i) not less than 3 proposals are iden14 tified as proposals to receive further con15 sideration, as provided in clauses (ii) and

16 (iii), except that, if fewer than 3 proposals

17 are received, each of them shall receive fur18 ther consideration;

19 (ii) a review procedure is implemented

20 under which the sponsors of the proposals

21 identified in clause (i) are provided an op22 portunity to make personal presentations

23 of their proposals to the Secretary or the

24 Secretary’s designee; and
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1 (iii) individual negotiations for the re2 vision of proposals identified in clause (i)

3 may be entered into.

4 (4) WARRANTS FOR PARTICIPATION IN

5 GAINS.—The President may, in connection with any

6 contract or agreement for converting the Corpora7 tion to private ownership and contingent on the fi8 nancial success of the Corporation, retain the right

9 to participate in the financial gains of the Corpora10 tion in such amounts as the President may deter11 mine to be appropriate, after consulting with the

12 Committee on Banking, Finance and Urban Affairs

13 and the Committee on Science, Space, and Tech14 nology of the House of Representatives, and the

15 Committee on Commerce, Science, and Transpor16 tation of the Senate.

17 (e) PROHIBITION ON CONFLICTS OF INTEREST.—

18 (1) IN GENERAL.—An officer or employee of

19 the Corporation may not participate in a matter re20 garding an application, claim, or other matter pend21 ing before the Corporation if, to such person’s

22 knowledge, the person, the person’s spouse, minor

23 child, parent, sibling, or partner, or an organization,

24 other than the Corporation, in which the person is

25 serving as an officer, director, trustee, partner, or
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1 employee, or any person with whom the person is ne2 gotiating or has any arrangement concerning per3 spective employment, has a financial interest in the

4 matter.

5 (2) CONSEQUENCE OF VIOLATION.—An officer

6 or employee who violates this subsection shall be

7 subject to termination, but such a violation shall not

8 impair, nullify, or otherwise affect the validity of any

9 otherwise lawful action by the Corporation in which

10 such officer or employee participated.

11 (f) GENERAL POWERS.—In addition to the usual

12 powers conferred upon a corporation under the business

13 corporation laws of the State in which the Corporation is

14 incorporated, the Corporation shall have such other inci15 dental powers not inconsistent with this section that are

16 necessary or appropriate to carry out the purposes and

17 functions of the Corporation.

18 (g) PROMOTION OF TECHNOLOGIES.—

19 (1) MARKETING OF TECHNOLOGIES.—The Cor20 poration shall undertake an aggressive, multifaceted

21 outreach program to increase awareness of the avail22 ability of technologies, processes, and other propri23 etary rights to qualified concerns under this title.

24 This program shall emphasize the use of new infor25 mation technologies, including the utilization of
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1 cable television and the modern electronic media,

2 and the data base established under this title.

3 (2) UTILIZATION OF CABLE TELEVISION.—

4 (A) IN GENERAL.—In implementing the

5 outreach program provided under paragraph

6 (1), the Corporation shall enter into negotia7 tions for the utilization of cable television for

8 marketing efforts for the commercialization of

9 technologies, processes, and other proprietary

10 rights—

11 (i) owned or held in whole or part by

12 Federal departments, agencies, or govern13 ment controlled corporations;

14 (ii) develop in Federal laboratories;

15 (iii) arising in the course of federally

16 funded research at educational institutions,

17 other units of government or with private

18 concerns; and

19 (iv) which are otherwise made avail20 able to the government by private con21 cerns.

22 (B) PROMOTIONAL FEES.—Under terms

23 negotiated between the Secretary and the Cor24 poration, the Secretary is authorized to make

25 payments to the Corporation for promotional
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1 fees for the production of segments for broad2 cast over cable television, or other appropriate

3 media, which identify—

4 (i) the technologies described in para5 graph (A);

6 (ii) their potential commercial applica7 tions; and

8 (iii) methods available for obtaining

9 additional information on the technologies.

10 (3) TECHNICAL ASSISTANCE.—The Corporation

11 shall, upon request, provide technical assistance and

12 services, as appropriate and needed, to qualified con13 cerns under this title.

14 (4) OUTREACH TO SPECIFIC AREAS AND SMALL

15 BUSINESSES.—The Corporation shall seek to ensure

16 that qualified concerns and small businesses located

17 in areas determined by the Secretary to have a de18 pressed economy or chronically high unemployment

19 are notified of the availability of assistance through

20 the program established under this section and, to

21 the extent practicable, to encourage and facilitate

22 the participation of such qualified concerns and

23 small businesses in such program.

24 (h) AUTHORITY TO REPRESENT THE GOVERN25 MENT.—
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1 (1) IN GENERAL.—In accordance with regula2 tions prescribed by the Secretary, the Corporation

3 shall act as an agent, and represent the interests, of

4 the Federal Government in facilitating the utiliza5 tion of technologies, processes, and other proprietary

6 rights by qualified concerns under this title.

7 (2) RIGHTS OF QUALIFIED CONCERNS.—In ac8 cordance with regulations promulgated by the Sec9 retary, the Corporation may convey, to qualified con10 cerns, under terms and conditions to be negotiated

11 between the Corporations and qualified concerns,

12 such rights which may be necessary and appropriate

13 to facilitate the utilization and commercialization of

14 technologies, processes, and other proprietary rights

15 as provided under this title.

16 (3) MINIMUM RIGHTS OF THE FEDERAL GOV17 ERNMENT.—In the conveyance of rights to qualified

18 concerns as provided for under paragraph (2), the

19 Corporation shall ensure the following:

20 (A) The conveyance agreement contains

21 language providing for the rights of the Cor22 poration to revoke the rights provided under

23 paragraph (2) if—

24 (i) the qualified concern does not

25 demonstrate that it is undertaking a good
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1 faith effort to achieve the utilization and

2 commercialization of the technology, proc3 ess, or other proprietary right; or

4 (ii) the Secretary certifies that the in5 terests of national security or the general

6 welfare of the American people necessitates

7 the revocation of such rights.

8 (B) The Federal Government retains a li9 cense to such technologies, processes, and other

10 proprietary rights for the Government’s own

11 use.

12 (C) The Federal Government receives in

13 compensation for the conveyance of such

14 rights—

15 (i) royalties;

16 (ii) the right to share in the earnings

17 of the qualified entity proportionate to the

18 value of the rights so conveyed; or

19 (iii) a sum of money or other com20 pensation that the Corporation determines

21 to be appropriate.

22 (4) AGENT’S FEES.—Under such terms as the

23 Secretary and the Corporation may negotiate, after

24 consulting with the Committee on Banking, Finance

25 and Urban Affairs and the Committee on Science,
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1 Space, and Technology of the House of Representa2 tives, and the Committee on Commerce, Science, and

3 Transportation of the Senate, the Corporation may

4 retain a percentage of any royalties or other com5 pensation accruing to the Federal Government in

6 connection with any licensing agreement entered into

7 by the Corporation on behalf of the Federal Govern8 ment.

9 (i) CONSULTATION WITH FEDERAL AGENCIES, AND

10 WITH PRIVATE PARTIES.—

11 (1) CONSULTATION WITH FEDERAL AGEN12 CIES.—In carrying out this title, the Board and the

13 Corporation shall consult frequently with the Sec14 retary, and such Federal agencies and departments

15 as is appropriate, to ensure coordination and the

16 maximum utilization of all related Federal resources

17 to promote technology utilization and commercializa18 tion.

19 (2) CONSULTATION WITH PRIVATE PARTIES.—

20 In carrying out this title, the Board and the Cor21 poration shall solicit comments from private parties,

22 including representatives of finance, industry, and

23 organized labor on the role of the Corporation and

24 the needs of private parties.
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1 (j) AUDIT BY COMPTROLLER GENERAL.—The Comp2 troller General of the United States may audit the finan3 cial transactions of the Corporation. For the purposes of

4 carrying out such an audit, the Comptroller General shall

5 have access to all books, records, and property belonging

6 to, or in the possession of, the Corporation. In the case

7 of a person or entity which has entered into a financial

8 relationship with the Corporation, the Comptroller Gen9 eral shall have access only to those books, records, and

10 property belonging to, or the possession of, the person or

11 entity which pertain to the Corporation and which are nec12 essary to carry out the audit. The Comptroller General

13 shall make a report of each audit to the Congress and

14 the President.

15 (k) INFORMATION AND OTHER ASSISTANCE FROM

16 FEDERAL AGENCIES.—Upon the request of the Corpora17 tion, the head of a Federal department or agency is au18 thorized to—

19 (1) furnish to the Corporation such information

20 which is available to the agency as the Board deems

21 necessary for carrying out its functions; and

22 (2) detail for temporary duty, on a reimburs23 able basis, such personnel as the Corporations deter24 mines to be necessary to carry out its functions.

25 (l) MISCELLANEOUS PROVISIONS.—
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1 (1) JURISDICTION.—

2 (A) IN GENERAL.—Whenever the Corpora3 tion is a party to any civil action under this

4 title, such action shall be deemed to arise under

5 the laws of the United States. No attachment

6 or execution may be issued against the Corpora7 tion, or any property thereof, prior to entry of

8 final judgment.

9 (B) CITIZENSHIP OF CORPORATION.—The

10 Corporation shall be deemed to be a citizen of

11 the District of Columbia for the purpose of de12 termining the original jurisdiction of the district

13 courts of the United States in civil actions to

14 which the Corporation is a party.

15 (2) BUSINESS ACTIVITY AND QUALIFICATION.—

16 The Corporation shall be deemed to be qualified to

17 do business in each State in which it performs any

18 activity authorized under this title.

19 (m) UTILIZATION OF CORPORATION.—It is the sense

20 of the Congress that all Federal departments, agencies,

21 institutions of higher education, and laboratories, and all

22 institutions of higher education and laboratories which are

23 otherwise supported by Federal funds, should use the serv24 ices of the Corporation to the maximum extent possible.
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1 SEC. 305. ASSISTANCE TO BUSINESSES IN SECURING

2 FINANCING.

3 (a) INFORMATION CLEARINGHOUSE.—The Corpora4 tion established under this title shall act as a one-stop

5 clearinghouse for information to assist qualified concerns

6 identify sources of business development and technology

7 commercialization financing available through the Federal

8 Government as well as through applicable State and local

9 government programs and through private sources.

10 (b) AGENT OF THE FEDERAL GOVERNMENT.—The

11 Corporation may act as an agent of the Federal Govern12 ment for purposes of accepting applications for financial

13 assistance and their submission to the appropriate Federal

14 agency on behalf of a qualified concern.

15 (c) TECHNICAL ASSISTANCE FOR LENDERS AND

16 BORROWERS.—The Corporation shall, upon request, pro17 vide technical assistance and services, as appropriate and

18 needed, to lenders and borrowers under this title, and shall

19 ensure that such lenders and borrowers have ready access

20 to appropriate assistance in order to aid such lenders and

21 borrowers in achieving the purposes of this title.

22 SEC. 306. SAVINGS PROVISION.

23 It is the intent of the Congress that this title shall

24 be construed as complementing any other provision of

25 Federal law relating to the licensing, utilization, or com26 mercialization of the use of technology and shall not be
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1 construed as superseding any such provision, except as

2 otherwise provided in this title.

3 SEC. 307. RULE OF CONSTRUCTION.

4 Nothing in this Act or this title shall be construed

5 by the President, the Secretary of Commerce, the Cor6 poration, any Federal agency or department, or any court

7 to affect, alter, amend, modify, or change, or apply to,

8 any program or activity (or any technology developed, de9 rived, or provided through or under such program or activ10 ity by any means of any kind) of the Department of En11 ergy, the Department of Transportation, the Department

12 of Health and Human Services, or the Environmental Pro13 tection Agency or any office, bureau, commission, labora14 tory or facility of such agencies or departments.

Passed the House of Representatives May 12, 1994.

Attest: DONNALD K. ANDERSON,

Clerk.

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