SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—Congress finds that— 
(1) certain regions of the Nation, including Ap-
palachia, the Mississippi Delta Region, the Northern 
Great Plains Region, the Southeast Crescent Region, 
the Southwest Border Region, the Northern Border 
Region, and rural Alaska, have suffered from chron-
ic distress far above the national average; 
(2) an economically distressed region can suffer 
unemployment and poverty at a rate that is 150 per-
cent of the national average; and 
(3) regional commissions are unique Federal- 
State partnerships that can provide targeted re-
sources to alleviate pervasive economic distress. 
(b) PURPOSES.—The purposes of this Act are— 
(1) to provide a comprehensive regional ap-
proach to economic and infrastructure development 
in the most severely economically distressed regions 
in the Nation; and 
(2) to ensure that the most severely economi-
cally distressed regions in the Nation have the nec-
essary tools to develop the basic building blocks for 
economic development, such as transportation and 
basic public infrastructure, job skills training, and 
business development. 
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SEC. 3. REGIONAL ECONOMIC AND INFRASTRUCTURE DE-
VELOPMENT. 
(a) IN GENERAL.—Title 40, United States Code, is 
amended— 
(1) by redesignating subtitle V as subtitle VI; 
and 
(2) by inserting after subtitle IV the following: 
‘‘Subtitle V—Regional Economic 
and Infrastructure Development 
‘‘Chapter 
Sec.
‘‘151. GENERAL PROVISIONS ......................................................15101
‘‘153. REGIONAL COMMISSIONS ...............................................15301
‘‘155. FINANCIAL ASSISTANCE ..................................................15501
‘‘157. ADMINISTRATIVE PROVISIONS .................................... 15701 
‘‘CHAPTER 151—GENERAL PROVISIONS 
‘‘Sec. 
‘‘15101. Definitions. 
‘‘§ 15101. Definitions 
‘‘In this subtitle, the following definitions apply: 
‘‘(1) COMMISSION.—The term ‘Commission’ 
means a Commission established under section 
15301. 
‘‘(2) LOCAL
DEVELOPMENT
DISTRICT.—The 
term ‘local development district’ means an entity 
that— 
‘‘(A)(i) is an economic development district 
that is— 
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‘‘(I) in existence on the date of enact-
ment of this chapter; and 
‘‘(II) located in the region; or 
‘‘(ii) if an entity described in clause (i) 
does not exist— 
‘‘(I) is organized and operated in a 
manner that ensures broad-based commu-
nity participation and an effective oppor-
tunity for local officials, community lead-
ers, and the public to contribute to the de-
velopment and implementation of programs 
in the region; 
‘‘(II) is governed by a policy board 
with at least a simple majority of members 
consisting of— 
‘‘(aa) elected officials; or 
‘‘(bb) designees or employees of a 
general purpose unit of local govern-
ment that have been appointed to rep-
resent the unit of local government; 
and 
‘‘(III) is certified by the Governor or 
appropriate State officer as having a char-
ter or authority that includes the economic 
development of counties, portions of coun-
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ties, or other political subdivisions within 
the region; and 
‘‘(B) has not, as certified by the Federal 
Cochairperson— 
‘‘(i) 
inappropriately 
used 
Federal 
grant funds from any Federal source; or 
‘‘(ii) appointed an officer who, during 
the period in which another entity inappro-
priately used Federal grant funds from any 
Federal source, was an officer of the other 
entity. 
‘‘(3) FEDERAL
GRANT
PROGRAM.—The term 
‘Federal grant program’ means a Federal grant pro-
gram to provide assistance in carrying out economic 
and community development activities. 
‘‘(4) INDIAN TRIBE.—The term ‘Indian tribe’ 
has the meaning given the term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b). 
‘‘(5) NONPROFIT ENTITY.—The term ‘nonprofit 
entity’ means any entity with tax-exempt or non-
profit status, as defined by the Internal Revenue 
Service, that has been formed for the purpose of eco-
nomic development. 
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‘‘(6) REGION.—The term ‘region’ means the 
area covered by a Commission as described in sub-
chapter II of chapter 157. 
‘‘CHAPTER 153—REGIONAL COMMISSIONS 
‘‘Sec. 
‘‘15301. Establishment, membership, and employees. 
‘‘15302. Decisions. 
‘‘15303. Functions. 
‘‘15304. Administrative powers and expenses. 
‘‘15305. Meetings. 
‘‘15306. Personal financial interests. 
‘‘15307. Tribal representation on Northern Great Plains Regional Commission. 
‘‘15308. Tribal participation. 
‘‘15309. Annual report. 
‘‘§ 15301. Establishment, membership, and employees 
‘‘(a) ESTABLISHMENT.—There are established the 
following regional Commissions: 
‘‘(1) The Delta Regional Commission. 
‘‘(2) The Northern Great Plains Regional Com-
mission. 
‘‘(3) The Southeast Crescent Regional Commis-
sion. 
‘‘(4) The Southwest Border Regional Commis-
sion. 
‘‘(5) The Northern Border Regional Commis-
sion. 
‘‘(b) MEMBERSHIP.— 
‘‘(1) FEDERAL
AND
STATE
MEMBERS.—Each 
Commission shall be composed of the following mem-
bers: 
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‘‘(A) A Federal Cochairperson, to be ap-
pointed by the President, by and with the ad-
vice and consent of the Senate. 
‘‘(B) The Governor of each participating 
State in the region of the Commission. 
‘‘(2) ALTERNATE MEMBERS.— 
‘‘(A) 
ALTERNATE
FEDERAL
COCHAIR-
PERSON.—The President shall appoint an alter-
nate Federal Cochairperson for each Commis-
sion. The alternate Federal Cochairperson, 
when not actively serving as an alternate for 
the Federal Cochairperson, shall perform such 
functions and duties as are delegated by the 
Federal Cochairperson. 
‘‘(B) STATE
ALTERNATES.—The State 
member of a participating State may have a 
single alternate, who shall be appointed by the 
Governor of the State from among the members 
of the Governor’s cabinet or personal staff. 
‘‘(C) VOTING.—An alternate member shall 
vote in the case of the absence, death, dis-
ability, removal, or resignation of the Federal 
or State member for which the alternate mem-
ber is an alternate. 
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‘‘(3) COCHAIRPERSONS.—A Commission shall 
be headed by— 
‘‘(A) the Federal Cochairperson, who shall 
serve as a liaison between the Federal Govern-
ment and the Commission; and 
‘‘(B) a State Cochairperson, who shall be 
a Governor of a participating State in the re-
gion and shall be elected by the State members 
for a term of not less than 1 year. 
‘‘(4) CONSECUTIVE TERMS.—A State member 
may not be elected to serve as State Cochairperson 
for more than 2 consecutive terms. 
‘‘(c) COMPENSATION.— 
‘‘(1) FEDERAL COCHAIRPERSONS.—Each Fed-
eral Cochairperson shall be compensated by the Fed-
eral Government at level III of the Executive Sched-
ule as set out in section 5314 of title 5. 
‘‘(2) 
ALTERNATE
FEDERAL
COCHAIR-
PERSONS.—Each Federal Cochairperson’s alternate 
shall be compensated by the Federal Government at 
level V of the Executive Schedule as set out in sec-
tion 5316 of title 5. 
‘‘(3) STATE
MEMBERS
AND
ALTERNATES.— 
Each State member and alternate shall be com-
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‘‘§ 15302. Decisions 
‘‘(a) REQUIREMENTS
FOR APPROVAL.—Except as 
provided in section 15304(c)(3), decisions by the Commis-
sion shall require the affirmative vote of the Federal Co-
chairperson and a majority of the State members (exclu-
sive of members representing States delinquent under sec-
tion 15304(c)(3)(C)). 
‘‘(b) CONSULTATION.—In matters coming before the 
Commission, the Federal Cochairperson shall, to the ex-
tent practicable, consult with the Federal departments and 
agencies having an interest in the subject matter. 
‘‘(c) QUORUMS.—A Commission shall determine what 
constitutes a quorum for Commission meetings; except 
that— 
‘‘(1) any quorum shall include the Federal Co-
chairperson or the alternate Federal Cochairperson; 
and 
‘‘(2) a State alternate member shall not be 
counted toward the establishment of a quorum. 
‘‘(d) PROJECTS AND GRANT PROPOSALS.—The ap-
proval of project and grant proposals shall be a responsi-
bility of each Commission and shall be carried out in ac-
cordance with section 15503. 
‘‘§ 15303. Functions 
‘‘A Commission shall— 
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‘‘(1) assess the needs and assets of its region 
based on available research, demonstration projects, 
investigations, assessments, and evaluations of the 
region prepared by Federal, State, and local agen-
cies, universities, local development districts, and 
other nonprofit groups; 
‘‘(2) develop, on a continuing basis, comprehen-
sive and coordinated economic and infrastructure de-
velopment strategies to establish priorities and ap-
prove grants for the economic development of its re-
gion, giving due consideration to other Federal, 
State, and local planning and development activities 
in the region; 
‘‘(3) not later than one year after the date of 
enactment of this section, and after taking into ac-
count State plans developed under section 15502, es-
tablish priorities in an economic and infrastructure 
development plan for its region, including 5-year re-
gional outcome targets; 
‘‘(4)(A) enhance the capacity of, and provide 
support for, local development districts in its region; 
or 
‘‘(B) if no local development district exists in 
an area in a participating State in the region, foster 
the creation of a local development district; 
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‘‘(5) encourage private investment in industrial, 
commercial, 
and 
other 
economic 
development 
projects in its region; 
‘‘(6) cooperate with and assist State govern-
ments with the preparation of economic and infra-
structure development plans and programs for par-
ticipating States; 
‘‘(7) formulate and recommend to the Gov-
ernors and legislatures of States that participate in 
the Commission forms of interstate cooperation and, 
where appropriate, international cooperation; and 
‘‘(8) work with State and local agencies in de-
veloping appropriate model legislation to enhance 
local and regional economic development. 
‘‘§ 15304. Administrative powers and expenses 
‘‘(a) POWERS.—In carrying out its duties under this 
subtitle, a Commission may— 
‘‘(1) hold such hearings, sit and act at such 
times and places, take such testimony, receive such 
evidence, and print or otherwise reproduce and dis-
tribute a description of the proceedings and reports 
on actions by the Commission as the Commission 
considers appropriate; 
‘‘(2) authorize, through the Federal or State 
Cochairperson or any other member of the Commis-
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sion designated by the Commission, the administra-
tion of oaths if the Commission determines that tes-
timony should be taken or evidence received under 
oath; 
‘‘(3) request from any Federal, State, or local 
agency such information as may be available to or 
procurable by the agency that may be of use to the 
Commission in carrying out the duties of the Com-
mission; 
‘‘(4) adopt, amend, and repeal bylaws and rules 
governing the conduct of business and the perform-
ance of duties by the Commission; 
‘‘(5) request the head of any Federal agency, 
State agency, or local government to detail to the 
Commission such personnel as the Commission re-
quires to carry out its duties, each such detail to be 
without loss of seniority, pay, or other employee sta-
tus; 
‘‘(6) provide for coverage of Commission em-
ployees in a suitable retirement and employee benefit 
system by making arrangements or entering into 
contracts with any participating State government 
or otherwise providing retirement and other em-
ployee coverage; 
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‘‘(7) accept, use, and dispose of gifts or dona-
tions or services or real, personal, tangible, or intan-
gible property; 
‘‘(8) enter into and perform such contracts, co-
operative agreements, or other transactions as are 
necessary to carry out Commission duties, including 
any contracts or cooperative agreements with a de-
partment, agency, or instrumentality of the United 
States, a State (including a political subdivision, 
agency, or instrumentality of the State), or a person, 
firm, association, or corporation; and 
‘‘(9) maintain a government relations office in 
the District of Columbia and establish and maintain 
a central office at such location in its region as the 
Commission may select. 
‘‘(b) FEDERAL AGENCY COOPERATION.—A Federal 
agency shall— 
‘‘(1) cooperate with a Commission; and 
‘‘(2) provide, to the extent practicable, on re-
quest of the Federal Cochairperson, appropriate as-
sistance in carrying out this subtitle, in accordance 
with applicable Federal laws (including regulations). 
‘‘(c) ADMINISTRATIVE EXPENSES.— 
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‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the administrative expenses of a Commission shall 
be paid— 
‘‘(A) by the Federal Government, in an 
amount equal to 50 percent of the administra-
tive expenses of the Commission; and 
‘‘(B) by the States participating in the 
Commission, in an amount equal to 50 percent 
of the administrative expenses. 
‘‘(2) EXPENSES
OF
THE
FEDERAL
COCHAIR-
PERSON.—All expenses of the Federal Cochair-
person, including expenses of the alternate and staff 
of the Federal Cochairperson, shall be paid by the 
Federal Government. 
‘‘(3) STATE SHARE.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the share of administrative expenses 
of a Commission to be paid by each State of the 
Commission shall be determined by a unani-
mous vote of the State members of the Com-
mission. 
‘‘(B) NO FEDERAL PARTICIPATION.—The 
Federal Cochairperson shall not participate or 
vote in any decision under subparagraph (A). 
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‘‘(6) to promote resource conservation, tourism, 
recreation, and preservation of open space in a man-
ner consistent with economic development goals; 
‘‘(7) to promote the development of renewable 
and alternative energy sources; and 
‘‘(8) to otherwise achieve the purposes of this 
subtitle. 
‘‘(b) ALLOCATION OF FUNDS.—A Commission shall 
allocate at least 40 percent of any grant amounts provided 
by the Commission in a fiscal year for projects described 
in paragraphs (1) through (3) of subsection (a). 
‘‘(c) SOURCES OF GRANTS.—Grant amounts may be 
provided entirely from appropriations to carry out this 
subtitle, in combination with amounts available under 
other Federal grant programs, or from any other source. 
‘‘(d) MAXIMUM COMMISSION CONTRIBUTIONS.— 
‘‘(1) IN GENERAL.—Subject to paragraphs (2) 
and (3), the Commission may contribute not more 
than 50 percent of a project or activity cost eligible 
for financial assistance under this section from 
amounts appropriated to carry out this subtitle. 
‘‘(2) DISTRESSED
COUNTIES.—The maximum 
Commission contribution for a project or activity to 
be carried out in a county for which a distressed 
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county designation is in effect under section 15702 
may be increased to 80 percent. 
‘‘(3) 
SPECIAL
RULE
FOR
REGIONAL 
PROJECTS.—A Commission may increase to 60 per-
cent under paragraph (1) and 90 percent under 
paragraph (2) the maximum Commission contribu-
tion for a project or activity if— 
‘‘(A) the project or activity involves 3 or 
more counties or more than one State; and 
‘‘(B) the Commission determines in ac-
cordance with section 15302(a) that the project 
or activity will bring significant interstate or 
multicounty benefits to a region. 
‘‘(e) MAINTENANCE
OF EFFORT.—Funds may be 
provided by a Commission for a program or project in a 
State under this section only if the Commission deter-
mines that the level of Federal or State financial assist-
ance provided under a law other than this subtitle, for the 
same type of program or project in the same area of the 
State within region, will not be reduced as a result of 
funds made available by this subtitle. 
‘‘(f) NO RELOCATION ASSISTANCE.—Financial as-
sistance authorized by this section may not be used to as-
sist a person or entity in relocating from one area to an-
other. 
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‘‘§ 15502. Comprehensive economic and infrastruc-
ture development plans 
‘‘(a) STATE PLANS.—In accordance with policies es-
tablished by a Commission, each State member of the 
Commission shall submit a comprehensive economic and 
infrastructure development plan for the area of the region 
represented by the State member. 
‘‘(b) CONTENT OF PLAN.—A State economic and in-
frastructure development plan shall reflect the goals, ob-
jectives, and priorities identified in any applicable eco-
nomic and infrastructure development plan developed by 
a Commission under section 15303. 
‘‘(c) CONSULTATION WITH INTERESTED LOCAL PAR-
TIES.—In carrying out the development planning process 
(including the selection of programs and projects for as-
sistance), a State shall— 
‘‘(1) consult with local development districts, 
local units of government, and local colleges and uni-
versities; and 
‘‘(2) take into consideration the goals, objec-
tives, priorities, and recommendations of the entities 
described in paragraph (1). 
‘‘(d) PUBLIC PARTICIPATION.— 
‘‘(1) IN GENERAL.—A Commission and applica-
ble State and local development districts shall en-
courage and assist, to the maximum extent prac-
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ticable, public participation in the development, revi-
sion, and implementation of all plans and programs 
under this subtitle. 
‘‘(2) GUIDELINES.—A Commission shall de-
velop guidelines for providing public participation, 
including public hearings. 
‘‘§ 15503. Approval of applications for assistance 
‘‘(a) EVALUATION BY STATE MEMBER.—An applica-
tion to a Commission for a grant or any other assistance 
for a project under this subtitle shall be made through, 
and evaluated for approval by, the State member of the 
Commission representing the applicant. 
‘‘(b) CERTIFICATION.—An application to a Commis-
sion for a grant or other assistance for a project under 
this subtitle shall be eligible for assistance only on certifi-
cation by the State member of the Commission rep-
resenting the applicant that the application for the 
project— 
‘‘(1) describes ways in which the project com-
plies with any applicable State economic and infra-
structure development plan; 
‘‘(2) meets applicable criteria under section 
15504; 
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‘‘(3) adequately ensures that the project will be 
properly administered, operated, and maintained; 
and 
‘‘(4) otherwise meets the requirements for as-
sistance under this subtitle. 
‘‘(c) VOTES FOR DECISIONS.—On certification by a 
State member of a Commission of an application for a 
grant or other assistance for a specific project under this 
section, an affirmative vote of the Commission under sec-
tion 15302 shall be required for approval of the applica-
tion. 
‘‘§ 15504. Program development criteria 
‘‘(a) IN GENERAL.—In considering programs and 
projects to be provided assistance by a Commission under 
this subtitle, and in establishing a priority ranking of the 
requests for assistance provided to the Commission, the 
Commission shall follow procedures that ensure, to the 
maximum extent practicable, consideration of— 
‘‘(1) the relationship of the project or class of 
projects to overall regional development; 
‘‘(2) the per capita income and poverty and un-
employment and outmigration rates in an area; 
‘‘(3) the financial resources available to the ap-
plicants for assistance seeking to carry out the 
project, with emphasis on ensuring that projects are 
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adequately financed to maximize the probability of 
successful economic development; 
‘‘(4) the importance of the project or class of 
projects in relation to the other projects or classes 
of projects that may be in competition for the same 
funds; 
‘‘(5) the prospects that the project for which as-
sistance is sought will improve, on a continuing rath-
er than a temporary basis, the opportunities for em-
ployment, the average level of income, or the eco-
nomic development of the area to be served by the 
project; and 
‘‘(6) the extent to which the project design pro-
vides for detailed outcome measurements by which 
grant expenditures and the results of the expendi-
tures may be evaluated. 
‘‘§ 15505. Local development districts and organiza-
tions 
‘‘(a) GRANTS
TO
LOCAL
DEVELOPMENT
DIS-
TRICTS.—Subject to the requirements of this section, a 
Commission may make grants to a local development dis-
trict to assist in the payment of development planning and 
administrative expenses. 
‘‘(b) CONDITIONS FOR GRANTS.— 
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