103D CONGRESS
2D SESSION
H. R. 5243
AN ACT
To amend the Public Works and Economic Development
Act of 1965 to reauthorize economic development pro-
grams, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Economic Development Reauthorization Act of 1994’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Direct and supplementary grants.
Sec. 3. Grants for public works facilities.
Sec. 4. Repeal of financial assistance for sewer facilities.
Sec. 5. Relationship of overall economic development plan to public works and
development facility loans.
Sec. 6. Elimination of overall economic development program.
Sec. 7. Redevelopment area loan program.
Sec. 8. Technical assistance, research, and information.
Sec. 9. Business outreach center demonstration project.
Sec. 10. Office of Strategic Economic Development Planning and Policy.
Sec. 11. Office of Economic Development Information.
Sec. 12. Authorization of appropriations for technical assistance, research, and
information.
Sec. 13. Redevelopment areas.
Sec. 14. Annual review.
Sec. 15. Economic development districts.
Sec. 16. Equity between rural and urban areas.
Sec. 17. Applications for assistance.
Sec. 18. Performance evaluations of grant recipients.
Sec. 19. Transfer of funds.
Sec. 20. Extension of benefits.
Sec. 21. Supervision of Regional Counsels.
Sec. 22. Purpose.
Sec. 23. Definition of eligible recipient.
Sec. 24. Base closings and realignments.
Sec. 25. Outreach to communities adversely affected by closures and
realignments of military installations.
Sec. 26. Treatment of revolving loan funds.
Sec. 27. Sale of financial instruments in revolving loan funds.
Sec. 28. Competitive communities pilot program.
Sec. 29. Special economic development and adjustment assistance.
Sec. 30. Compliance with Buy American Act.
Sec. 31. Regulatory relief.
SEC. 2. DIRECT AND SUPPLEMENTARY GRANTS.
(a) GRANTS.—Section 101(a) of the Public Works
and Economic Development Act of 1965 (42 U.S.C.
3131(a)) is amended—
(1) in the matter preceding paragraph (1), by
striking ‘‘representing any redevelopment area or
part thereof’’ and inserting ‘‘acting in cooperation
with an official of a local government’’; and
(2) in paragraph (1)—
(A) in the matter preceding subparagraph
(A), by striking ‘‘acquisition, construction’’ and
inserting ‘‘acquisition, design, engineering, con-
struction’’;
(B) by striking subparagraph (C) and in-
serting the following new subparagraph:
‘‘(C) the area for which the project is to be
undertaken has an approved overall economic
development plan as provided in section 402
and such project is consistent with such plan;
and’’; and
(C) in subparagraph (D)—
(i) by striking ‘‘so designated under
section 401(a)(6),’’ and inserting ‘‘de-
scribed in section 401(a)(7),’’; and
(ii) by striking ‘‘area.’’ and inserting
‘‘area; and’’.
(b) 
CONSIDERATIONS
FOR
SUPPLEMENTARY
GRANTS.—Section 101(c) of such Act is amended—
(1) in the second and third sentences, by strik-
ing ‘‘designated as such under section 401(a)(6) of
this Act.’’ and inserting ‘‘described in section
401(a)(7).’’; and
(2) in the last sentence—
(A) by striking ‘‘the area, the’’ and insert-
ing ‘‘the area and the’’; and
(B) by striking ‘‘, and the amount of such’’
and all that follows and inserting a period.
SEC. 3. GRANTS FOR PUBLIC WORKS FACILITIES.
Section 105 of the Public Works and Economic De-
velopment Act of 1965 (42 U.S.C. 3135) is amended to
read as follows:
‘‘SEC. 105. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this title $195,000,000 for each of fiscal years 1995
through 1997. Such sums shall remain available until ex-
pended. Not less than 15 percent and not more than 35
percent of the amounts appropriated for any of fiscal years
1995 through 1997 under this section shall be expended
in redevelopment areas described in section 401(a)(7).’’.
SEC. 4. REPEAL OF FINANCIAL ASSISTANCE FOR SEWER
FACILITIES.
(a) IN GENERAL.—Title I of the Public Works and
Economic Development Act of 1965 (42 U.S.C. 3131–
3137) is amended—
(1) by repealing section 106;
(2) by redesignating section 107 as section 104;
and
(3) by moving such section 104 to appear after
section 103.
(b) CONFORMING AMENDMENT.—Section 211(b)(3)
of the Appalachian Regional Development Act of 1965 (40
U.S.C. App. 211(b)(3)) is amended in the last sentence
by striking ‘‘Notwithstanding’’ and all that follows
through ‘‘education-related’’ and inserting ‘‘An education-
related’’.
SEC. 5. RELATIONSHIP OF OVERALL ECONOMIC DEVELOP-
MENT PLAN TO PUBLIC WORKS AND DEVEL-
OPMENT FACILITY LOANS.
Section 201(a) of the Public Works and Economic
Development Act of 1965 (42 U.S.C. 3141(a)) is amend-
ed—
(1) in the matter preceding paragraph (1), by
striking ‘‘representing any redevelopment area there-
of’’ and inserting ‘‘acting in cooperation with an of-
ficial of a local government’’; and
(2) by striking paragraph (5) and inserting the
following new paragraph:
‘‘(5) such area has an approved overall eco-
nomic development plan as provided in section 402
and the project for which financial assistance is
sought is consistent with such plan.’’.
SEC. 6. ELIMINATION OF OVERALL ECONOMIC DEVELOP-
MENT PROGRAM.
Section 202(b) of the Public Works and Economic
Development Act of 1965 (42 U.S.C. 3142(b)) is amend-
ed—
(1) in paragraph (1), by striking ‘‘Such finan-
cial assistance shall not be extended’’ and inserting
‘‘The applicant for such financial assistance shall in-
clude, in the application of the applicant for such as-
sistance, an assurance that the assistance will not be
used’’; and
(2) in paragraph (10), by striking ‘‘there shall
be submitted to and approval of the Secretary an
overall program for the economic development of the
area and’’ and inserting ‘‘the applicant shall submit
to the Secretary under section 402, and obtain ap-
proval of, an overall economic development plan and
there is’’.
SEC. 7. REDEVELOPMENT AREA LOAN PROGRAM.
(a) IN GENERAL.—Section 204(a) of the Public
Works and Economic Development Act of 1965 (42
U.S.C. 3144(a)) is amended by striking the last two sen-
tences.
(b) CONFORMING AMENDMENTS.—
(1) Section 2 of the Act entitled ‘‘An Act to
amend the Public Works and Economic Development
Act of 1965 to extend the authorizations for title I
through IV through fiscal year 1971’’, approved
July 6, 1970 (42 U.S.C. 3162 note) is repealed.
(2) Section 6 of the Act entitled ‘‘An Act to
amend the Public Works and Economic Development
Act of 1965 to extend the authorizations for a one-
year period’’, approved June 18, 1973 (42 U.S.C.
3162 note) is amended—
(A) in subsection (a), by striking ‘‘(a)’’;
and
(B) by striking subsection (b).
SEC. 8. TECHNICAL ASSISTANCE, RESEARCH, AND INFOR-
MATION.
Section 301(a)(1) of the Public Works and Economic
Development Act of 1965 (42 U.S.C. 3151(a)(1)) is
amended by striking ‘‘areas which he has designated as
redevelopment areas under this Act,’’ and inserting ‘‘rede-
velopment areas,’’.
SEC. 9. BUSINESS OUTREACH CENTER DEMONSTRATION
PROJECT.
Section 303 of the Public Works and Economic De-
velopment Act of 1965 (42 U.S.C. 3152) is amended to
read as follows:
‘‘SEC. 303. BUSINESS OUTREACH CENTER DEMONSTRATION
PROJECT.
‘‘(a) DEFINITION.—As used in this section, the term
‘isolated small business’ means a small business that is
unable to effectively access small business services pro-
vided by a Federal, State, or local government due to lin-
guistic, cultural, or geographic barriers, as determined by
the Secretary.
‘‘(b) DEMONSTRATION PROJECT.—Using funds made
available under this title, the Secretary shall conduct a
demonstration project in each of fiscal years 1995 through
1997 for the purpose of demonstrating methods of assist-
ing isolated small businesses to access small business serv-
ices provided by Federal, State, and local governments.
‘‘(c) ESTABLISHMENT OF CENTERS.—In conducting
the demonstration project under this section, the Sec-
retary shall establish 3 business outreach centers. At least
1 of the centers shall be located in a rural area.
‘‘(d) DUTIES OF CENTERS.—Each business outreach
center established under this section shall—
‘‘(1) provide a one-stop clearinghouse to assist
isolated small businesses in accessing small business
services provided by Federal, State, and local gov-
ernments; and
‘‘(2) improve efficiency in the delivery of such
services.
‘‘(e) SERVICES TO BE PROVIDED.—Each business
outreach center established under this section shall pro-
vide each of the following services:
‘‘(1) Outreach to isolated small businesses.
‘‘(2) Assessment of the need of isolated small
businesses for assistance services.
‘‘(3) Referral of isolated small businesses to
small business assistance agencies.
‘‘(4) Preparation of materials required by iso-
lated small businesses for participation in small
business assistance programs.
‘‘(5) Case management to ensure follow-up and
quality control of business services.
‘‘(6) Coordination of networking among isolated
small businesses.
‘‘(7) Quality control of small business assist-
ance services.’’.
SEC. 10. OFFICE OF STRATEGIC ECONOMIC DEVELOPMENT
PLANNING AND POLICY.
Title III of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3151–3153) is amended by
adding at the end the following new section:
‘‘SEC. 305. OFFICE OF STRATEGIC ECONOMIC DEVELOP-
MENT PLANNING AND POLICY.
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish in the Economic Development Administration an Of-
fice of Strategic Economic Development Planning and Pol-
icy (referred to in this section as the ‘Office’).
‘‘(b) DIRECTOR.—The Office shall be headed by a Di-
rector, who shall be appointed by the Secretary and who
shall report to the Assistant Secretary for Economic De-
velopment.
‘‘(c) DUTIES.—The duties of the Director are as fol-
lows:
‘‘(1) RESEARCH, 
EVALUATION, 
AND
DEM-
ONSTRATION PROJECTS.—The Director shall support
research, evaluation, and demonstration projects to
study and assess best practices in economic develop-
ment and to examine trends and changes in eco-
nomic conditions that affect regional development.
The Director shall conduct a study of innovative eco-
nomic development financing tools, including loan
guarantees, rural development investment zones, and
other measures, that may be employed to further
economic development of States, regions, and local-
ities.
‘‘(2) POLICY
DEVELOPMENT.—The Director
shall develop and submit to the Secretary rec-
ommendations on both short- and long-term policies
regarding economic development issues and pro-
grams, to help foster the diffusion of innovative, best
practices in economic development throughout the
Department of Commerce.
‘‘(3) INFORMATION AND COORDINATION.—The
Director shall establish procedures to ensure that
the Economic Development Administration assumes
a central role in developing and promoting means of
greater coordination among States, regions, and
local communities in the design and implementation
of Federal economic development programs, and to
foster coordination among Federal economic develop-
ment programs, to reduce duplication and frag-
mentation of Federal economic development efforts.
‘‘(d) FEDERAL COORDINATING COUNCIL FOR ECO-
NOMIC DEVELOPMENT.—
‘‘(1) IN GENERAL.—There is established a Fed-
eral Coordinating Council for Economic Develop-
ment (referred to in this subsection as the ‘Coun-
cil’).
‘‘(2) COMPOSITION OF THE COUNCIL.—
‘‘(A) IN GENERAL.—The Council shall be
composed of representatives from Federal agen-
cies, appointed by the heads of the agencies, in-
volved in matters that affect regional economic
development. The Secretary shall determine the
Federal agencies that are involved in matters
that affect regional economic development.
‘‘(B) VACANCIES.—Any vacancy in the
Council shall not affect the powers of the Coun-
cil, but shall be filled in the same manner as
the original appointment.
‘‘(3) DUTIES.—The Council shall assist the
Secretary in providing a unifying framework for eco-
nomic development efforts and shall develop a gov-
ernmentwide strategic plan for economic develop-
ment. The Council shall work to improve coordina-
tion of Federal economic development efforts to
eliminate duplication and to direct Federal resources
to improve economic conditions.
‘‘(4) TRAVEL EXPENSES.—The members of the
Council shall not receive compensation for service on
the Council but shall be allowed travel expenses, in-
cluding per diem in lieu of subsistence, at rates au-
thorized for employees of agencies under subchapter
I of chapter 57 of title 5, United States Code, while
away from the homes or regular places of business
of the members in the performance of services for
the Council.
‘‘(5) FACILITIES, 
SUPPLIES, 
AND
PERSON-
NEL.—
‘‘(A) IN GENERAL.—Upon the request of
the Council, the Secretary shall provide to the
Council any facilities, supplies, and personnel
necessary for the Council to carry out the re-
sponsibilities of the Council under this sub-
section.
‘‘(B) DETAILS.—In the case of a detail of
a Federal Government employee under para-
graph (1), the employee may be detailed to the
Council without reimbursement. The detail shall
be without interruption or loss of civil service
status or privilege.
‘‘(6) HEARINGS.—The Council may hold such
hearings, sit and act at such times and places, take
such testimony, and receive such evidence as the
Council considers advisable to carry out this sub-
section.
‘‘(7) INFORMATION
FROM
FEDERAL
AGEN-
CIES.—The Council may secure directly from any
Federal department or agency such information as
the Council considers necessary to carry out this
subsection. Upon request of the Council, the head of
such department or agency shall furnish such infor-
mation to the Council.
‘‘(8) POSTAL SERVICES.—The Council may use
the United States mails in the same manner and
under the same conditions as other departments and
agencies of the Federal Government.
‘‘(9) TERMINATION.—The Council shall termi-
nate 1 year after the date of the establishment of
the Council.’’.
SEC. 11. OFFICE OF ECONOMIC DEVELOPMENT INFORMA-
TION.
Title III of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3151–3153) (as amended
by section 10) is further amended by adding at the end
the following new section:
‘‘SEC. 306. OFFICE OF ECONOMIC DEVELOPMENT INFORMA-
TION.
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish an Office of Economic Development Information (re-
ferred to in this section as the ‘Office’) within the Office
of Strategic Economic Development Planning and Policy.
‘‘(b) RESPONSIBILITIES.—The Office shall—
‘‘(1) serve as a central information clearing-
house on matters relating to economic development,
economic adjustment, disaster recovery, industrial
retention, and defense reinvestment programs and
activities of the Federal and State governments, in-
cluding political subdivisions of the States; and
‘‘(2) help potential and actual applicants for
economic development, economic adjustment, disas-
ter recovery, industrial retention, and defense rein-
vestment assistance under Federal, State, and local
laws in locating and applying for such assistance, in-
cluding financial and technical assistance.
‘‘(c) INFORMATION DATA BASES.—
‘‘(1) USES.—The Office shall develop informa-
tion data bases for use by Federal departments and
agencies, State and local governmental agencies,
public and private entities, and individuals to assist
such agencies, entities, and individuals in the proc-
ess of identifying and applying for assistance and re-
sources under economic development, economic
adjustment, disaster recovery, industrial retention,
and defense reinvestment programs and activities of
the Federal, State, and local governments.
‘‘(2) SPECIFIC
KINDS
OF
INFORMATION
RE-
QUIRED TO BE INCLUDED.—The data bases shall in-
clude each of the following kinds of information:
‘‘(A) A comprehensive compilation of all
relevant information concerning available eco-
nomic development, economic adjustment, disas-
ter recovery, industrial retention, and defense
reinvestment programs of the Federal Govern-
ment, including key contact personnel, descrip-
tions of the application process, eligibility re-
quirements and criteria, selection and followup
procedures, and other such relevant informa-
tion.
‘‘(B) A compilation of major State and
local governmental economic development, eco-
nomic adjustment, disaster recovery, industrial
retention, and defense reinvestment assistance
programs, including lists of appropriate offices,
officers, and contact personnel connected with,
or involved in, such programs.
‘‘(C) A compilation of relevant and avail-
able economic data and trends, including infor-
mation about the national, regional, and local
impacts of trade agreements, defense spending
and downsizing, technological change, and other
sources of substantial economic dislocation.
‘‘(D) A compilation of case studies and
best practices in economic development, adjust-
ment, and reinvestment.
‘‘(E) A compilation of technology utiliza-
tion programs, assistance, and resources.
‘‘(F) A compilation of published works
(books, reports, articles, videos, and tapes), and
selected texts of such works, related to all fac-
ets of economic development, economic adjust-
ment, and defense reinvestment.
‘‘(G) A compilation of information on case
studies on early warning and intervention ef-
forts.
‘‘(3) POINTS OF PUBLIC ACCESS.—
‘‘(A) IN GENERAL.—The Office shall es-
tablish several means to ensure easy access by
the public and others to such data bases, and
to ensure that the data bases be as accessible,
user-friendly, culturally neutral, and affordable
as possible.
‘‘(B) MEANS OF ACCESS.—Access to the
data services of the Office shall include each of
the following means:
‘‘(i) A toll-free nationwide telephone
number to provide direct phone access to
the public.
‘‘(ii) On-line electronic access through
existing computer network services and
publicly available computer data base ac-
cess facilities, such as at repository librar-
ies and by direct call-in via modem.
‘‘(iii) Printed manuals and orientation
materials.
‘‘(iv) Periodic orientation workshops
available to the public.
‘‘(v) On-call information specialists to
address special problems requiring person-
to-person assistance.
‘‘(d) INTERAGENCY COORDINATION.—The Secretary
shall enter into such agreements and understandings as
may be necessary with other Federal departments and
agencies to coordinate the accomplishment of the objec-
tives of this section.’’.
SEC. 12. AUTHORIZATION OF APPROPRIATIONS FOR TECH-
NICAL ASSISTANCE, RESEARCH, AND INFOR-
MATION.
Title III of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3151–3153) (as amended
by section 11) is further amended by adding at the end
the following new section:
‘‘SEC. 307. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this title $50,000,000 for each of fiscal years 1995
through 1997. Such sums shall remain available until ex-
pended.’’.
SEC. 13. REDEVELOPMENT AREAS.
Section 401 of the Public Works and Economic De-
velopment Act of 1965 (42 U.S.C. 3161) is amended to
read as follows:
‘‘SEC. 401. AREA ELIGIBILITY.
‘‘(a) CERTIFICATION.—An applicant seeking assist-
ance under title I or II to undertake a project for an area
shall certify, as part of an application for such assistance,
that the area on the date of submission of such application
meets 1 or more of the following criteria:
‘‘(1) The per capita income of the area is
80 percent or less of the per capita income of the
United States.
‘‘(2) The average rate of unemployment in the
area (seasonally adjusted), as determined by the
Secretary of Labor for the most recent 24-month pe-
riod for which statistics are available, minus the na-
tional average rate of unemployment (seasonally ad-
justed), as so determined, is equal to or exceeds 1
percent.
‘‘(3) The average rate of unemployment in the
area (seasonally adjusted), as determined by the
Secretary of Labor for the most recent 12-month pe-
riod for which statistics are available, minus the na-
tional average rate of unemployment (seasonally ad-
justed), as so determined, is equal to or exceeds 2
percent.
‘‘(4) The area has experienced or is about to
experience a sudden economic dislocation resulting
in job loss that is significant both in terms of the
number of jobs eliminated and the effect on the rate
of unemployment in the area (if information on such
rate is available), as such rate is determined by the
Secretary of Labor.
‘‘(5) The population growth rate of the United
States, as determined by the Secretary of Commerce
for an appropriate period, minus the population
growth rate of the area, as so determined, is equal
to or exceeds 3 percent.
‘‘(6) The area has experienced a decline in total
employment that is equal to or exceeds 2 percent
over the most recent 5-year period for which statis-
tics are available, as such employment is determined
by the Secretary of Labor, acting through the Com-
missioner of Labor Statistics.
‘‘(7) The area is a community or neighborhood
(defined without regard to political or other subdivi-
sions or boundaries) that the Secretary determines
has 1 or more of the following conditions:
‘‘(A) A large concentration of low-income
persons.
‘‘(B) A rural or urban area having sub-
stantial outmigration or substantial economic
deterioration and unemployment.
‘‘(C) Substantial unemployment.
‘‘(b) DOCUMENTATION.—
‘‘(1) DATA
AND
STATISTICS.—A certification
made under subsection (a) shall be supported by
Federal data, if available, and in other cases by data
available through the appropriate State government.
The applicant shall use the most recent statistics
available to support the certification.
‘‘(2) ACCEPTANCE
OF
DATA.—The Secretary
shall accept the data unless the Secretary deter-
mines that the data are inaccurate.
‘‘(c) SPECIAL RULE.—With respect to a redevelop-
ment area described in subsection (a)(7)—
‘‘(1) the project to be carried out in the area
shall not be subject to section 101(a)(1)(A);
‘‘(2) the area shall not be subject to section
101(a)(1)(C); and
‘‘(3) the area shall not be considered to be a re-
development 
area 
for 
purposes 
of 
section
403(a)(1)(B).
‘‘(d) PRIOR DESIGNATION.—Any designation of a re-
development area for the purposes of this Act that was
made before the date of enactment of the Economic Devel-
opment Reauthorization Act of 1994 shall not be effective
after such date.
‘‘(e) DEFINITION.—As used in this Act, the term ‘re-
development area’ means an area that is the subject of
a certification that is—
‘‘(1) described in subsection (a); and
‘‘(2) submitted by an applicant as part of an
application for assistance—
‘‘(A) that is described in subsection (a);
and
‘‘(B) for which the applicant obtains the
approval of the Secretary.’’.
SEC. 14. ANNUAL REVIEW.
(a) IN GENERAL.—Section 402 of the Public Works
and Economic Development Act of 1965 (42 U.S.C. 3162)
is amended to read as follows:
‘‘SEC. 402. OVERALL ECONOMIC DEVELOPMENT PLAN AND
INVESTMENT STRATEGY.
‘‘(a) OVERALL ECONOMIC DEVELOPMENT PLAN AND
INVESTMENT STRATEGY.—The Secretary may provide as-
sistance under title I or II to an applicant for a project
to be undertaken in an area only if the applicant has pre-
pared and submitted to the Secretary, and obtained ap-
proval of, an overall economic development plan or an in-
vestment strategy. Such an overall economic development
plan or investment strategy shall—
‘‘(1) identify the economic development prob-
lems to be addressed using such assistance;
‘‘(2) identify past, present, and projected fur-
ther economic development investments in such area
and public and private participants and sources of
funding for such investments; and
‘‘(3) set forth a strategy for addressing the eco-
nomic development problems identified pursuant to
paragraph (1) and describe how the strategy will
solve such problems.
‘‘(b) APPLICATION REQUIREMENTS.—In submitting
an application for assistance under title I or II, an appli-
cant shall describe how the proposed project implements
the plan or strategy, provide estimates of costs and time-
tables for completion for the project, and provide a sum-
mary of public and private resources expected to be avail-
able for the project.
‘‘(c) EXISTING PLANS AND INVESTMENT STRATE-
GIES.—To the maximum extent practicable, the Secretary
shall approve under subsection (a) overall economic devel-
opment plans, and overall economic development pro-
grams, that were approved by the Secretary under this
Act before the date of enactment of the Economic Devel-
opment Reauthorization Act of 1994 and that substan-
tially meet the requirements of this section.
‘‘(d) DEFINITION.—As used in this Act, the term
‘economic development plan’ includes—
‘‘(1) a plan or program described in subsection
(c) and submitted for approval under subsection (a);
and
‘‘(2) an investment strategy submitted for ap-
proval under subsection (a) in lieu of such a plan.’’.
(b) CONFORMING AMENDMENTS.—
(1) TRADE ACT OF 1974.—Section 273(c)(2) of
the Trade Act of 1974 (19 U.S.C. 2373(c)(2)) is
amended—
(A) by striking ‘‘overall economic develop-
ment program’’ and inserting ‘‘overall economic
development plan or investment strategy’’; and
(B) by striking ‘‘section 202(b)(10)’’ and
inserting ‘‘section 402’’.
(2) COMMUNITY ECONOMIC DEVELOPMENT ACT
OF 1981.—Section 626(b)(1) of the Community Eco-
nomic Development Act of 1981 (42 U.S.C.
9815(b)(1)) is amended—
(A) by striking ‘‘Publc’’ and inserting
‘‘Public’’;
(B) by striking ‘‘overall economic develop-
ment program’’ and inserting ‘‘overall economic
development plan or investment strategy’’; and
(C) by striking ‘‘section 202(b)(10)’’ and
inserting ‘‘section 402’’.
SEC. 15. ECONOMIC DEVELOPMENT DISTRICTS.
(a) RELATIONSHIP TO OVERALL ECONOMIC DEVEL-
OPMENT PLANS.—Section 403 of the Public Works and
Economic Development Act of 1965 (42 U.S.C. 3171) is
amended—
(1) 
in 
subsections 
(a)(1)(C), 
(a)(1)(D),
(a)(2)(A), (a)(3)(A), (a)(4)(B), (e), and (i) by strik-
ing ‘‘overall economic development program’’ and in-
serting ‘‘overall economic development plan’’;
(2) in subsection (a)(1)(D), by striking ‘‘pro-
gram’’ the second place the term appears and insert-
ing ‘‘plan’’; and
SEC. 16. EQUITY BETWEEN RURAL AND URBAN AREAS.
Title IV of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3161 et seq.) is amended
by adding at the end the following new part:
‘‘PART E—EQUITY BETWEEN RURAL AND URBAN
AREAS
‘‘SEC. 406. ALLOCATIONS BASED ON THE LEVEL OF ECO-
NOMIC DISTRESS OF AN AREA.
‘‘Not later than 6 months after the date of enactment
of the Economic Development Reauthorization Act of
1994, the Secretary shall issue and implement regulations
containing criteria and procedures to prioritize allocations
of Federal assistance made under this Act, so that, not-
withstanding any other provision of this Act, the level of
economic distress of an area, not a preference for a geo-
graphic area or a specific type of economic distress, is the
primary factor considered by the Secretary in determining
whether the area receives an allocation of Federal assist-
ance under this Act.’’.
SEC. 17. APPLICATIONS FOR ASSISTANCE.
(a) EXPEDITED PROCESSING.—Title VI of the Public
Works and Economic Development Act of 1965 (42
U.S.C. 3201–3204) is amended by adding at the end the
following new section:
‘‘SEC. 605. EXPEDITED PROCESSING OF APPLICATIONS.
‘‘(a) GUIDELINES.—Not later than 60 days after the
date of enactment of this section, the Assistant Secretary
for Economic Development shall—
‘‘(1) develop and publish in the Federal Reg-
ister guidelines that establish procedures to expedite
the processing of applications for assistance under
this Act; and
‘‘(2) transmit to the Committee on Public
Works and Transportation of the House of Rep-
resentatives and the Committee on Environment and
Public Works of the Senate a report containing such
guidelines.
‘‘(b) CONTENTS.—Guidelines to be developed and
published under subsection (a) shall, at a minimum, pro-
vide for—
‘‘(1) increased reliance on self-certification by
applicants for such assistance to establish compli-
ance with other Federal laws;
‘‘(2) greater use of uniform application forms
and procedures;
‘‘(3) delegation of decisionmaking authority to
regional offices of the Economic Development Ad-
ministration; and
‘‘(4) reduction in the time and number of re-
views conducted by offices of the Department of
Commerce other than the Economic Development
Administration.’’.
(b) UNIFORM APPLICATION FORM.—Title VI of such
Act (as amended by subsection (a)) is further amended
by adding at the end the following new section:
‘‘SEC. 606. UNIFORM APPLICATION FORM.
‘‘(a) DEVELOPMENT.—The Secretary shall, in co-
operation with the heads of appropriate Federal depart-
ments and agencies, develop a general, simplified applica-
tion form for grant assistance under this Act that may
be used by all Federal departments and agencies that pro-
vide grant assistance.
‘‘(b) REPORT.—Not later than 180 days after the
date of enactment of this section, the Secretary shall
transmit to Congress a report on use of the form devel-
oped pursuant to subsection (a) by Federal departments
and agencies.’’.
SEC. 18. PERFORMANCE EVALUATIONS OF GRANT RECIPI-
ENTS.
Title VI of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3201–3204) (as amended
by subsections (a) and (b) of section 17) is further amend-
ed by adding at the end the following new section:
‘‘SEC. 607. PERFORMANCE EVALUATIONS OF GRANT RE-
CIPIENTS.
‘‘(a) IN GENERAL.—At least once every 2 years, the
Secretary shall conduct an evaluation of each university
center receiving assistance under title III (referred to in
this section as a ‘university center’) and economic develop-
ment district receiving grant assistance under this Act to
assess the performance and contribution toward job cre-
ation of the recipient.
‘‘(b) CRITERIA.—
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish criteria for use in conducting evaluations
under subsection (a).
‘‘(2) CRITERIA
FOR
UNIVERSITY
CENTERS.—
The criteria for evaluation of a university center
shall, at a minimum, provide for an assessment of
the contribution of the center to providing technical
assistance, conducting applied research, and dissemi-
nating results of the activities of the center.
‘‘(3) CRITERIA FOR ECONOMIC DEVELOPMENT
DISTRICTS.—The criteria for evaluation of an eco-
nomic development district shall, at a minimum, pro-
vide for an assessment of management standards, fi-
nancial accountability, and program performance.
‘‘(c) PEER REVIEW.—In conducting an evaluation of
a university center under subsection (a), the Secretary
shall provide for the participation in the evaluation of at
least 1 other university center on a cost-reimbursement
basis.’’.
SEC. 19. TRANSFER OF FUNDS.
Section 708 of the Public Works and Economic De-
velopment Act of 1965 (42 U.S.C. 3218) is amended by
adding at the end the following new subsection:
‘‘(d) Notwithstanding any other provision of law, the
Secretary may accept such transfers of funds from other
departments and agencies of the Federal Government as
the Secretary determines to be appropriate and use such
funds to carry out objectives of this Act, if the Secretary
uses the funds to carry out objectives for which (and in
accordance with the terms under which) the funds are spe-
cifically authorized and appropriated. Not more than 5
percent of such funds may be transferred to the account
relating to salaries and expenses of the Economic Develop-
ment Administration.’’.
SEC. 20. EXTENSION OF BENEFITS.
Section 715 of the Public Works and Economic De-
velopment Act of 1965 (42 U.S.C. 3225) is amended by
striking ‘‘such areas as may be designated as ‘redevelop-
ment areas’ or ‘economic development centers’ under the
authority of section 401 or 403 of this Act:’’ and inserting
‘‘redevelopment areas and such areas as may be des-
ignated as ‘economic development centers’ under section
403:’’.
SEC. 21. SUPERVISION OF REGIONAL COUNSELS.
Title VII of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3211–3226) is amended by
adding at the end the following new section:
‘‘SEC. 717. SUPERVISION OF REGIONAL COUNSELS.
‘‘The Secretary shall take such actions as may be
necessary to ensure that individuals serving as Regional
Counsels of the Economic Development Administration re-
port directly to their respective Regional Directors, except
that the General Counsel shall have authority to make de-
terminations relating to the technical legal ability of the
individuals.’’.
SEC. 22. PURPOSE.
The first sentence of section 901 of the Public Works
and Economic Development Act of 1965 (42 U.S.C. 3241)
is amended by striking ‘‘It is the purpose of this title’’
and inserting ‘‘The purposes of title I and of this title
are’’.
SEC. 23. DEFINITION OF ELIGIBLE RECIPIENT.
Section 902 of the Public Works and Economic De-
velopment Act of 1965 (42 U.S.C. 3242) is amended to
read as follows:
‘‘SEC. 902. DEFINITION.
‘‘As used in this title, the term ‘eligible recipient’
means a redevelopment area, an economic development
district, an Indian tribe, a State, a city or other political
subdivision of a State, a consortium of such political sub-
divisions, a public or private nonprofit organization, or a
public or private nonprofit association.’’.
SEC. 24. BASE CLOSINGS AND REALIGNMENTS.
Section 903 of the Public Works and Economic De-
velopment Act of 1965 (42 U.S.C. 3243) is amended—
(1) in the matter following subparagraph (B) of
subsection (a)(1), by striking ‘‘unemployment com-
pensation (in accordance with subsection (d) of this
section), rent supplements, mortgage payment as-
sistance, research,’’ and inserting ‘‘administrative
expenses, industrial retention,’’; and
(2) by adding at the end the following new sub-
section:
‘‘(e)(1) In any case in which the Secretary determines
that a need exists for assistance under subsection (a) due
to the closure or realignment of a military installation, or
for an industrial, a community, or a workforce adjustment
due to a reduction in amounts made available under or
termination of a defense contract, the Secretary may make
such assistance available to an eligible recipient for a
project to be carried out on the military installation, for
a project to be carried out in a community adversely af-
fected by the closure or realignment, or for defense conver-
sion activities.
‘‘(2) Notwithstanding any other provision of law, the
Secretary may provide to an eligible recipient any assist-
ance available under this title for a project to be carried
out on a military installation that is closed or scheduled
for closure or realignment, or for defense conversion ac-
tivities, without requiring that the eligible recipient have
title to the property on which the installation is located
or the activities will be carried out, or a leasehold interest
in the property, for any specified term.’’.
SEC. 25. OUTREACH TO COMMUNITIES ADVERSELY AF-
FECTED BY CLOSURES AND REALIGNMENTS
OF MILITARY INSTALLATIONS.
Title IX of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3241–3245) is amended—
(1) by redesignating section 905 as section 909;
and
(2) by inserting after section 904 the following
new section:
‘‘SEC. 905. OUTREACH TO COMMUNITIES ADVERSELY AF-
FECTED BY CLOSURES AND REALIGNMENTS
OF MILITARY INSTALLATIONS.
‘‘(a) DESIGNATION
OF
AGENCY
REPRESENTA-
TIVES.—The Assistant Secretary for Economic Develop-
ment shall designate for each State in which communities
are adversely affected by closures and realignments of
military installations, an individual to serve as a rep-
resentative of the Economic Development Administration.
Such individual may be the State Economic Development
Agency Representative or another qualified individual.
‘‘(b) RESPONSIBILITIES.—Individuals appointed as
agency representatives under subsection (a) shall provide
outreach and technical assistance, to communities ad-
versely affected by closures and realignments of military
installations, on obtaining assistance from the Economic
Development Administration.’’.
SEC. 26. TREATMENT OF REVOLVING LOAN FUNDS.
Title IX of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3241–3245) (as amended
by section 25) is further amended by inserting after sec-
tion 905 the following new section:
‘‘SEC. 906. TREATMENT OF REVOLVING LOAN FUNDS.
‘‘(a) IN
GENERAL.—An amount made available
through a grant made under this title that is used by an
eligible recipient to establish a revolving loan fund shall
not be treated, except as provided by subsection (b), as
an amount derived from Federal funds for the purposes
of any Federal law after such amount is loaned from the
fund to a borrower and repaid to the fund.
‘‘(b) EXCEPTIONS.—An amount described in sub-
section (a) that is loaned from a revolving loan fund to
a borrower and repaid to the fund—
‘‘(1) may be used only for a project that is con-
sistent with the purposes of this title; and
‘‘(2) shall be subject to the financial manage-
ment, accounting, reporting, and auditing require-
ments that were originally applicable to such amount
on the date on which the Secretary made the
amount available to the recipient through a grant
described in subsection (a).
‘‘(c) REGULATIONS.—Not later than 30 days after
the date of enactment of this section, the Secretary shall
issue regulations to carry out subsection (a).
‘‘(d) PUBLIC REVIEW AND COMMENT.—Before issu-
ing any final guidelines or administrative manuals govern-
ing the operation of revolving loan funds established using
amounts from grants made under this title, the Secretary
shall provide reasonable opportunity for public review of
and comment on such guidelines and administrative
manuals.’’.
SEC. 27. SALE OF FINANCIAL INSTRUMENTS IN REVOLVING
LOAN FUNDS.
Title IX of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3241–3245) (as amended
by section 26) is further amended by inserting after sec-
tion 906 the following new section:
‘‘SEC. 907. SALE OF FINANCIAL INSTRUMENTS IN REVOLV-
ING LOAN FUNDS.
‘‘Any loan, loan guarantee, or other financial instru-
ment in the portfolio of a revolving loan fund described
in section 906 may be sold, at the discretion of the grant
recipient that established the fund, to a third party. The
proceeds of the sale—
‘‘(1) shall be deposited in the fund and only
used for projects that are consistent with the pur-
poses of this title; and
‘‘(2) shall be subject to the financial manage-
ment, accounting, reporting, and auditing require-
ments that were originally applicable to the financial
instrument on the date on which the financial in-
strument was entered into.’’.
SEC. 28. COMPETITIVE COMMUNITIES PILOT PROGRAM.
Title IX of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3241–3245) (as amended
by section 27) is further amended by inserting after sec-
tion 907 the following new section:
‘‘SEC. 908. COMPETITIVE COMMUNITIES PILOT PROGRAM.
‘‘(a) DEFINITION.—As used in this section, the term
‘eligible intermediary recipient’ means—
‘‘(1) a redevelopment area or an economic de-
velopment district established under title IV;
‘‘(2) an Indian tribe;
‘‘(3) a public-private entity sponsored by a
State or other political subdivision of a State, or by
a community division of a State;
‘‘(4) a community development corporation;
‘‘(5) a public or private not-for-profit corpora-
tion; and
‘‘(6) a consortium of recipients described in any
of paragraphs (1) through (5);
that demonstrates the financial expertise, ability, and legal
authority to provide the investment for a transaction, as
well as the ability to develop and implement an overall eco-
nomic development plan as provided in section 402.
‘‘(b) PROGRAM.—The Secretary may establish a com-
petitive communities pilot program and, in carrying out
the program, may make grants, loans, or loan guarantees
directly to or for the benefit of any eligible recipients (in-
cluding eligible intermediary recipients) for the purpose of
investing in identified business transactions that will cre-
ate opportunities for long-term employment in economi-
cally distressed communities.
‘‘(c) APPLICATIONS.—To be eligible to receive finan-
cial assistance under this section, a person or an entity
shall submit an application to the Secretary at such time,
in such manner, and containing such information as the
Secretary may require.
‘‘(d) PANEL OF EXPERTS.—The Secretary shall es-
tablish a panel of experts to review applications submitted
to the Secretary under subsection (c). The panel shall con-
sist of 7 members as follows:
‘‘(1) The Secretary (or the designee of the Sec-
retary).
‘‘(2) The Assistant Secretary for Economic De-
velopment.
‘‘(3) 1 Regional Director of the Economic De-
velopment Administration, appointed by the Sec-
retary.
‘‘(4) 1 State Economic Development Represent-
ative, appointed by the Secretary.
‘‘(5) 3 private citizens with economic develop-
ment and business expertise, appointed by the Sec-
retary.
‘‘(e) CRITERIA
FOR
SELECTION.—The Secretary
shall select recipients to receive financial assistance under
this section, based on the quality of the applications sub-
mitted and the extent to which the applications describe