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105TH CONGRESS
1ST SESSION
H. R. 1430
To reauthorize and make reforms to programs authorized by the Public
Works and Economic Development Act of 1965.
IN THE HOUSE OF REPRESENTATIVES
APRIL 24, 1997
Mr. SHUSTER (for himself, Mr. OBERSTAR, Mr. KIM, and Mr. TRAFICANT)
(all by request) introduced the following bill; which was referred to the
Committee on Transportation and Infrastructure, and in addition to the
Committee on Banking and Financing Services, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To reauthorize and make reforms to programs authorized
by the Public Works and Economic Development Act
of 1965.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; EFFECTIVE DATE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Economic Development Partnership Act of 1997’’.
(b) EFFECTIVE DATE.—Except as otherwise ex-
pressly provided, the provisions of this Act and the amend-
ments made by this Act shall take effect as determined
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by the Secretary of Commerce (hereinafter referred to as
the Secretary), but not later than three months after the
date of the enactment of this Act.
SEC. 2. REAUTHORIZATION OF PUBLIC WORKS AND ECO-
NOMIC DEVELOPMENT ACT OF 1965.
The Public Works and Economic Development Act of
1965 (42 U.S.C. 3131 et seq.) is amended by striking all
after the first section and inserting the following:
‘‘SEC. 2. FINDINGS AND DECLARATION.
‘‘(a) FINDINGS.—Congress finds that—
‘‘(1) the maintenance of the national economy
at a high level is vital to the best interests of the
United States, but that some of our regions, coun-
ties, and communities are suffering substantial and
persistent unemployment and underemployment that
cause hardship to many individuals and their fami-
lies, and waste invaluable human resources;
‘‘(2) to overcome this problem the Federal Gov-
ernment, in cooperation with the States, should help
areas and regions of substantial and persistent un-
employment and underemployment to take effective
steps in planning and financing their public works
and economic development;
‘‘(3) Federal financial assistance, including
grants for public works and development facilities to
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communities, industries, enterprises, and individuals
in areas needing development should enable such
areas to help themselves achieve lasting improve-
ment and enhance the domestic prosperity by the es-
tablishment of stable and diversified local economies,
sustainable development, and improved local condi-
tions, if such assistance is preceded by and consist-
ent with sound, long-range economic planning; and
‘‘(4) under the provisions of this Act, new em-
ployment opportunities should be created by develop-
ing and expanding new and existing public works
and other facilities and resources rather than by
merely transferring jobs from one area of the United
States to another, and by supporting firms and in-
dustries which add to the growth of the nation’s
economy through improved technology, increased ex-
ports, and the supply of goods and services to satisfy
unmet demand.
‘‘(b) DECLARATION.—Congress declares that, in fur-
therance of maintaining the national economy at a high
level—
‘‘(1) the assistance authorized by this Act
should be made available to both rural and urban
areas;
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aries), and multi-State regional organizations as the Sec-
retary determines may be necessary or desirable to allevi-
ate economic distress, encourage and support public-pri-
vate partnerships for the formation and improvement of
economic development strategies which promote the
growth of the national economy, stimulate modernization
and technological advances in the generation and commer-
cialization of goods and services, and enhance the effec-
tiveness of American firms in the global economy.
‘‘(c) INTERGOVERNMENTAL REVIEW.—The Secretary
shall prescribe regulations which will assure that appro-
priate State and local governmental authorities have been
given a reasonable opportunity to review and comment
upon proposed projects which the Secretary determines
may have a significant direct impact on the economy of
the area.
‘‘(d) COOPERATIVE AGREEMENTS.—The Secretary
may enter into a cooperative agreement with any two or
more adjoining States, or an organization thereof, in sup-
port of effective economic development. Each such agree-
ment shall provide for suitable participation by other gov-
ernmental and non-governmental parties representative of
significant interests in and perspectives on economic devel-
opment in the area.
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‘‘SEC. 102. COOPERATION OF FEDERAL AGENCIES.
‘‘Each Federal department and agency, in accordance
with applicable laws and within the limits of available
funds, shall exercise its powers, duties and functions, and
shall cooperate with the Secretary in such manner as will
assist the Secretary in carrying out the objectives of this
Act.
‘‘SEC. 103. COORDINATION.
‘‘The Secretary may appoint a National Public Advi-
sory Committee on Regional Economic Development which
shall consist of twenty-five members and shall be com-
posed of representatives of labor, management, agri-
culture, State and local governments, Federal agencies,
and the public in general. From the members appointed
to such Committee the Secretary shall designate a Chair-
man. Such Committee, or any duly established subcommit-
tee thereof, shall from time to time make recommenda-
tions to the Secretary relative to the carrying out of the
Secretary’s duties under this Act, including the coordina-
tion of activities as provided in section 103. Such Commit-
tee shall hold not less than two meetings during each cal-
endar year, and shall be governed by the provisions of the
Federal Advisory Committee Act.
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‘‘TITLE II—GRANTS FOR PUBLIC
WORKS AND ECONOMIC DE-
VELOPMENT
‘‘SEC. 201. PUBLIC WORKS GRANTS.
‘‘(a) Upon the application of any eligible recipient the
Secretary may make direct grants for acquisition or devel-
opment of land improvements for public works, public
service, or development facility usage, and the acquisition,
design and engineering, construction, rehabilitation, alter-
nation, expansion, or improvement of such facilities, in-
cluding related machinery and equipment.
‘‘(b) The Secretary may provide assistance under this
section only if the Secretary finds that—
‘‘(1) the project for which financial assistance is
sought will directly or indirectly—
‘‘(A) tend to improve the opportunities, in
the area where such project is or will be lo-
cated, for the successful establishment or ex-
pansion of industrial or commercial plants or
facilities;
‘‘(B) otherwise assist in the creation of ad-
ditional long-term employment opportunities of
such area; or
‘‘(C) primarily benefit the long-term unem-
ployed and members of low-income families; or
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‘‘(D) in the case of projects within areas
described in section 302(a)(8), the project will
enhance the economic growth potential of the
area or result in additional long-term employ-
ment opportunities commensurate with the
amount of Federal financial assistance re-
quested.
‘‘(2) the project for which a grant is requested
will fulfill a pressing need of the area, or part there-
of, in which it is, or will be, located; and
‘‘(3) the area for which a project is to be under-
taken has a satisfactory comprehensive economic de-
velopment strategy as provided by section 303 and
such project is consistent with such strategy.
‘‘(c) In the case of an area described in section
302(a)(4), the Secretary may provide assistance only if the
Secretary finds that the project to be undertaken will pro-
vide immediate useful work to unemployed and under-
employed persons in that area.
‘‘(d) Not more than 15 per centum of the appropria-
tions made pursuant to this section may be expended in
any one State.
‘‘SEC. 202. CONSTRUCTION COST INCREASES.
‘‘In any case where a grant (including a supplemental
grant) has been made by the Secretary under this title
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or made, before the effective date of the Economic Devel-
opment Partnership Act of 1997, under title I of this Act,
as in effect before such effective date, for a construction
project and after such grant has been made but before
completion of the project, the cost of such project based
upon the designs and specifications which were the basis
of the grant has been increased because of increases in
costs, the amount of such grant maybe increased by an
amount equal to the percentage increase, as determined
by the Secretary, in such costs, but in no event shall the
percentage of the Federal share of such project exceed
that originally provided for in such grant.
‘‘SEC. 203. PLANNING AND ADMINISTRATIVE EXPENSES
‘‘(a) Upon the application of any eligible recipient the
Secretary may make direct grants for economic develop-
ment planning and the administrative expenses of organi-
zations undertaking such planning.
‘‘(b) The planning for cities, other political subdivi-
sions, Indian tribes, and sub-State planning and develop-
ment organizations (including areas described in section
302(a) and economic development districts) assisted under
this title shall include systematic efforts to reduce unem-
ployment and increase incomes.
‘‘(c) The planning shall be a continuous process in-
volving public officials and private citizens in analyzing
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local economies, defining development goals, determining
project opportunities and formulating and implementing
a development program.
‘‘(d) The planning assistance authorized under this
title shall be used in conjunction with any other available
Federal planning assistance to assure adequate and effec-
tive planning and economical use of funds.
‘‘(e) Any State plan prepared with assistance under
this section shall be prepared cooperatively by the State,
its political subdivisions, and the economic development
district located in whole or in part within such State, as
a comprehensive economic development strategy. Upon
completion of any such plan, the State shall (1) certify
to the Secretary that in the preparation of the State plan,
the local and economic development district plans were
considered and, to the fullest extent possible, the State
plan is consistent with the local and economic development
district plans, and (2) identify any inconsistencies between
the State plan and the local and economic development
district plans, with the justification for each inconsistency.
Any overall State economic development planning shall be
a part of a comprehensive planning process that shall con-
sider the provisions of public works to stimulate and chan-
nel development, economic opportunities and choices for
individuals, to support sound land use, to foster effective
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transportation access, to promote sustainable develop-
ment, to enhance and protect the environment including
the conservation and preservation of open spaces and envi-
ronmental quality, to provide public services, and to bal-
ance physical and human resources through the manage-
ment and control of physical development. Each State re-
ceiving assistance for the preparation of a plan according
to the provisions of this subsection shall submit to the Sec-
retary an annual report on the planning process assisted
under this subsection.
‘‘SEC. 204. COST SHARING.
‘‘Subject to section 205, the amount of any direct
grant under this title for any project shall not exceed 50
percent of the cost of such project. In determining the
amount of the non-Federal share of costs or expenses, the
Secretary shall give due consideration to all contributions
both in cash and in kind, fairly evaluated, including con-
tributions of space, equipment, and services.
‘‘SEC. 205. SUPPLEMENTARY GRANTS.
‘‘(a) IN GENERAL.—Upon the application of any eli-
gible recipient, the Secretary may make a supplementary
grant for a project for which the applicant is eligible but,
because of its economic situation, for which it cannot sup-
ply the required matching share. Included therein may be
supplementary grants made to enable the States and other
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entities within areas described in section 302(a) to take
maximum advantage of designated Federal grant-in-aid
programs (as defined in subsection (b)(4) of this section),
direct grants-in-aid authorized under this title, and Fed-
eral grant-in-aid programs authorized by the Watershed
Protection and Flood Prevention Act (68 Stat. 666), and
the 11 watersheds authorized by the Flood Control Act
of December 22, 1944 (58 Stat. 887).
‘‘(b) REQUIREMENTS
APPLICABLE
TO
SUPPLE-
MENTARY GRANTS.—
‘‘(1) AMOUNT OF SUPPLEMENTARY GRANTS.—
The amount of any supplementary grant under this
title for any project shall not exceed the applicable
percentage established by regulations promulgated
by the Secretary, but in no event shall the non-Fed-
eral share of the aggregate cost of any such project
(including assumptions of debt) be less than 20 per-
cent of such cost, except as provided in subsection
(b)(6).
‘‘(2) FORM
OF
SUPPLEMENTARY
GRANTS.—
Supplementary grants shall be made by the Sec-
retary, in accordance with such regulations as the
Secretary may prescribe, by increasing the amounts
of direct grants authorized under this title or by the
payment of funds appropriated under this Act to the
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heads of the departments, agencies, and instrumen-
talities of the Federal Government responsible for
the administration of the applicable Federal pro-
grams.
‘‘(3) FEDERAL SHARE LIMITATIONS SPECIFIED
IN OTHER LAWS.—Notwithstanding any requirement
as to the amount or sources of non-Federal funds
that may otherwise be applicable to the Federal pro-
gram involved, funds provided under this subsection
may be used for the purpose of increasing the Fed-
eral contribution to specific projects in areas de-
scribed in section 302(a) under such programs above
the fixed maximum portion of the cost of such
project otherwise authorized by the applicable law.
‘‘(4) 
DESIGNATED
FEDERAL
GRANT-IN-AID
PROGRAMS DEFINED.—In this section, the term ‘des-
ignated Federal grant-in-aid programs’ means such
existing or future Federal grant-in-aid programs as-
sisting in the construction or equipping of facilities
as the Secretary may, in furtherance of the purposes
of this Act, designated as eligible for allocation of
funds under this section.
‘‘(5) CONSIDERATION OF RELATIVE NEED IN
DETERMINING
AMOUNT.—In 
determining 
the
amount of any supplementary grant available to any
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project under this title, the Secretary shall take into
consideration the relative needs of the area and the
nature of the project to be assisted.
‘‘(6) EXCEPTIONS.—In the case of a grant to
an Indian tribe, the Secretary may reduce the non-
Federal share below the percentage specified in sub-
section (b)(1) or may waive the non-Federal share.
In the case of a grant to a State or a political sub-
division of a State which the Secretary determines
has exhausted its effective taxing and borrowing ca-
pacity, or of a grant to anon-profit organization
which the Secretary determines has exhausted its ef-
fective borrowing capacity, the Secretary may reduce
the non-Federal share below the percentage specified
in subsection (b)(1) or may waive the non-Federal
share for (i) a project in an area described in section
302(a)(4), or (ii) a project the nature of which the
Secretary determines warrants the reduction or
waiver of the non-Federal share.
‘‘SEC. 206. REGULATIONS TO ASSURE RELATIVE NEEDS ARE
MET.
‘‘The Secretary shall prescribe rules, regulations, and
procedures to carry out this title which will assure that
adequate consideration is given to the relative needs of eli-
gible areas. In prescribing such rules, regulations, and
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procedures for assistance under section 201 the Secretary
shall consider among other relevant factors—
‘‘(1) the severity of the rates of unemployment
in the eligible areas and the duration of such unem-
ployment;
‘‘(2) the income levels of families and the extent
of underemployment in eligible areas; and
‘‘(3) the out-migration of population for eligible
areas.
‘‘SEC. 207. TRAINING, RESEARCH, AND TECHNICAL ASSIST-
ANCE.
‘‘(a) Upon the application of any eligible recipient the
Secretary may make direct grants for training, research,
and technical assistance, including grants for program
evaluation and economic impact analyses, which would be
useful in alleviating or preventing conditions of excessive
unemployment or underemployment. Such assistance may
include project planning and feasibility studies, dem-
onstrations of innovative activities or strategic economic
development investments, management and operational
activities or strategic economic development investments,
management and operational assistance, establishment of
university centers, establishment of business outreach cen-
ters, and studies evaluating the needs of, and development
potentialities for, economic growth of areas which the Sec-
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retary finds have substantial need for such assistance. The
Secretary may waive the non-Federal share in the case
of a project under this section, without regard to the provi-
sions of sections 204 or 205.
‘‘(b) In carrying out the Secretary’s duties under this
Act, the Secretary may provide research and technical as-
sistance through members of the Secretary’s staff; the
payment of funds authorized for this section to depart-
ments or agencies of the Federal Government; the employ-
ment of private indidivuals, partnerships, firms, corpora-
tions, or suitable institutions under contracts entered into
for such purposes; or the award of grants under this title.
‘‘SEC. 208. RELOCATION OF INDIVIDUALS AND BUSINESSES.
‘‘Grants to eligible recipients shall include such
amounts as may be required to provide relocation assist-
ance to affected persons, as required by the Uniform Relo-
cation Assistance and Real Property Acquisition Act 1970,
as amended.
‘‘SEC. 209. ECONOMIC ADJUSTMENT.
‘‘(a) Upon the application of any eligible recipient the
Secretary may make direct grants for public facilities,
public services, business development (including a revolv-
ing loan fund), planning, technical assistance, training,
and other assistance which demonstrably furthers the eco-
nomic adjustment objectives of this Act, including activi-
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ties to alleviate long-term economic deterioration, and sud-
den and severe economic dislocations.
‘‘(b) The Secretary may provide assistance under this
section only if the Secretary finds that—
‘‘(1) the project will help the area meet a spe-
cial need arising from—
‘‘(A) actual or threatened sever unemploy-
ment arising from economic dislocation, includ-
ing unemployment arising from actions of the
Federal Government or from compliance with
environmental requirements which remove eco-
nomic activities from locality; or
‘‘(B) economic adjustment problems result-
ing from severe changes in economic conditions
(including long-term economic deterioration);
and
‘‘(2) the area for which a project is to be under-
taken has a satisfactory comprehensive economic de-
velopment strategy as provided by section 303 and
such project is consistent with such strategy. This
subsection (b)(2) shall not apply to planning
projects.
‘‘(c) Assistance under this section shall extend to ac-
tivities identified by communities impacted by military
base closures, defense contractor cutbacks, and Depart-
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ment of Energy reductions, to help the communities diver-
sify their economies. Nothing in this section is intended
to replace the efforts of the economic adjustment program
of the Department of the Defense.
‘‘(d) Assistance under this section shall extend to
post-disaster activities in areas affected by natural and
other disasters.
‘‘SEC. 210. DIRECT EXPENDITURE OR REDISTRIBUTION BY
RECIPIENT.
‘‘Amounts from grants under section 209 of this title
may be used in direct expenditures by the eligible recipient
or through redistribution by the eligible recipient to public
and private entities in grants, loans, loan guarantees, pay-
ments to reduce interest on loan guarantees, or other ap-
propriate assistance, but no grant shall be made by an
eligible recipient to a private profit-making entity.
‘‘SEC. 211. CHANGED PROJECT CIRCUMSTANCES.
‘‘In any case where a grant (including a supplemental
grant) has been made by the Secretary under this title
(or made under this Act, as in effect on the day before
the effective date of the Economic Development Partner-
ship Act of 1997) for a project, and after such grant has
been made but before completion of the project, the pur-
pose or scope of such project which were the basis of the
grant as changed, the Secretary may approve the use of
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grant funds on such changed project if the Secretary de-
termines that such changed project meets the require-
ments of this title and that such changes are necessary
to enhance economic development in the area.
‘‘SEC. 212. USE OF FUNDS IN PROJECTS CONSTRUCTED
UNDER PROJECTED COST.
‘‘In any case where a grant (including a supplemental
grant) has been made by the Secretary under this title
(or made under this Act, as in effect on the day before
the effective date of the Economic Development Partner-
ship Act of 1997) for a construction project, and after
such grant has been made but before completion of the
project, the cost of such project based upon the designs
and specifications which was the basis of the grant has
decreased because of decreases in costs, such underrun
funds may be used to improve the project either directly
or indirectly as determined by the Secretary.
‘‘SEC. 213. BASE CLOSINGS AND REALIGNMENTS.
‘‘(a) LOCATION OF PROJECTS.—In any case in which
the Secretary determines a need for assistance under this
title due to the closure or realignment of a military or
Department of Energy installation, the Secretary may
make such assistance available for projects to be carried
out on the installation and for projects to be carried out
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in communities adversely affected by the closure or re-
alignment.
‘‘(b) INTEREST IN PROPERTY.—Notwithstanding any
other provision of law, the Secretary may provide to an
eligible recipient any assistance available under this Act
for a project to be carried out on a military or Department
of Energy installation that is closed or scheduled for clo-
sure or realignment without requiring that the eligible re-
cipient have title to the property or a leasehold interest
in the property for any specified term.
‘‘SEC. 214. PREVENTION OF UNFAIR COMPETITION.
‘‘No financial assistance under this Act shall be ex-
tended to any project when the result would be in increase
the production of goods, materials, or commodities, or the
availability of services or facilities, when there is not suffi-
cient demand for such goods, materials, commodities, serv-
ices, or facilities, to employ the efficient capacity of exist-
ing competitive commercial or industrial enterprises.
‘‘SEC. 215. REPORTS BY RECIPIENT.
‘‘Reports to the Secretary shall be required of recipi-
ents of assistance under this Act. Such reports shall be
at such intervals and in such manner as the Secretary
shall prescribe by regulation, not to exceed ten years from
the time of closeout of the assistance award, and shall con-
tain an evaluation of the effectiveness of the economic as-
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sistance provided under this Act in meeting the need it
was designed to alleviate and the purposes of this Act.
‘‘TITLE III—DEFINITIONS, ELIGI-
BILITY AND COMPREHENSIVE
ECONOMIC 
DEVELOPMENT
STRATEGIES
‘‘SEC. 301. DEFINITIONS.
‘‘In this Act, unless the context otherwise requires,
the following definitions apply:
‘‘(a) ECONOMIC DEVELOPMENT DISTRICT.—The term
‘economic development district’ refers to any area within
the United States composed of cooperating areas described
in section 302(a) and, where appropriate, designated eco-
nomic development centers and neighboring counties or
communities, which has been designated by the Secretary
as an economic development district. Such term included
any economic development district designated by the Sec-
retary under section 403 of this Act, as in effect on the
day before the effective date of the Economic Development
Partnership Act of 1997.
‘‘(b) ECONOMIC DEVELOPMENT CENTER.—The term
‘economic development center’ refers to any area within
the United States which has been identified as an eco-
nomic development center in an approved comprehensive
economic development strategy and which has been des-
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ignated by the Secretary as eligible for financial assistance
under this Act in accordance with the provisions of this
section.
‘‘(c) ELIGIBLE RECIPIENT.—The term ‘eligible recipi-
ent’ means an area described in Section 302(a), an eco-
nomic development district designated under section 401,
an Indian tribe, a State, a city or other political subdivi-
sion of a State or a consortium of such political subdivi-
sions, an institution of higher education or a consortium
of such institutions, or a public or private nonprofit orga-
nization or association acting in cooperation with officials
of such political subdivision. For grants made under sec-
tion 207, ‘eligible recipient’ also includes private individ-
uals and for-profit organizations.
‘‘(d) GRANT.—The term ‘grant’ includes cooperative
agreement, as that term is used in the Federal Grant and
Cooperative Agreement Act of 1977.
‘‘(e) INDIAN TRIBE.—The term ‘Indian tribe’ means
an Indian or Alaska Native tribe, band, nation, pueblo,
village, or community that the Secretary of the Interior
acknowledges to exist as an Indian tribe pursuant to 25
U.S.C. section 479a–1.
‘‘(f) STATE.—The terms ‘State’, ‘States’, and ‘United
States’ include the several States, the District of Colum-
bia, the Commonwealth of Puerto Rico, the Virgin Islands,
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Guam, American Samoa, the Republic of the Marshall Is-
lands, the Federated States of Micronesia, the Republic
of Palau, and the Commonwealth of the Northern Mariana
Islands.
‘‘SEC. 302. AREA ELIGIBILITY.
‘‘(a) CERTIFICATION.—In order to be eligible for as-
sistance for activities described under section 201 or 209,
an applicant shall certify, as part of an application for
such assistance, that the project is located in an area
which on the date of submission of such application meets
one or more of the following criteria:
‘‘(1) The area has a per capita income of 80
percent or less of the national average.
‘‘(2) The area has an unemployment rate one
percent above the national average percentage for
the most recent 24-month period for which statistics
are available.
‘‘(3) The area has experienced or is about to
experience a sudden economic dislocation resulting
in job loss that is significant both in terms of the
number of jobs eliminated and the effect upon the
employment rate of the area.
‘‘(4) The area is one in which the Secretary de-
termines that any activities authorized to be under-
taken under section 201 or 209 will provide imme-
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diate useful work to unemployed and underemployed
persons in that area, and the area is a community
or neighborhood (defined without regard to political
or other subdivisions or boundaries) which the Sec-
retary determines has one or more of the following
conditions:
‘‘(A) A large concentration of low-income
persons;
‘‘(B) Areas having substantial out-migra-
tion; or
‘‘(C) Substantial unemployment.
‘‘(5) The area has demonstrated long-term eco-
nomic deterioration.
‘‘(6) The area has an unemployment rate, for
the most recent 12 month period for which statistics
are available, above a rate established by regulation
as an indicator of substantial unemployment during
conditions of significantly high national unemploy-
ment.
‘‘(7) The area is one which the Secretary has
determined has experienced, or may reasonably be
foreseen to be about to experience, a special need to
meet an expected rise in unemployment, or other
economic adjustment problems (including those
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caused by any action or decision of the Federal Gov-
ernment).
‘‘(8) The area contains a population of 250,000
or less and is identified in a comprehensive economic
development strategy as having growth potential and
the ability to alleviate distress within an economic
development district.
‘‘(9) The area is experiencing severe out migra-
tion.
‘‘(b) DOCUMENTATION.—A certification made under
subsection (a) shall be supported by Federal data, when
available or, in the absence of recent Federal data, by data
available through the State government. Such documenta-
tion shall be accepted by the Secretary unless the Sec-
retary determines the documentation to be inaccurate. The
most recent statistics available shall be used.
‘‘(c) SPECIAL RULE.—An area which the Secretary
determines is eligible for assistance because it meets 1 or
more of the criteria of subsection (a)(4)—
‘‘(1) shall not be subject to the requirements of
sections 201(b) or 303; and
‘‘(2) shall not be eligible to meet the require-
ments of section 401(a)(1)(B).
‘‘(d) PRIOR DESIGNATIONS.—Any designation of a
redevelopment area made before the effective date of the
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Economic Development Partnership Act of 1997 shall not
be effective after such effective date.
‘‘SEC. 303. COMPREHENSIVE ECONOMIC DEVELOPMENT
STRATEGY.
‘‘(a) IN GENERAL.—The Secretary may provide as-
sistance under section 201 or 209 (except for section 209
planning) to an applicant for a project only if the appli-
cant submits to the Secretary, as part of an application
for such assistance, evidence which—
‘‘(1) identifies the economic development prob-
lems to be addressed using such assistance;
‘‘(2) identifies past, present, and projected fu-
ture economic development investments in the area
receiving such assistance and public and private par-
ticipants and sources of funding for such invest-
ments; and
‘‘(3) sets forth a strategy for addressing the
economic problems identified pursuant to paragraph
(a) and describes how the strategy will solve such
problems.
‘‘(b) OTHER PLAN.—The Secretary may accept as a
comprehensive economic development strategy a satisfac-
tory plan prepared under another Federally supported
program.
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‘‘TITLE IV—ECONOMIC
DEVELOPMENT DISTRICTS
‘‘SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT
DISTRICTS AND ECONOMIC DEVELOPMENT
CENTERS.
‘‘(a) IN GENERAL.—In order that economic develop-
ment projects of broader geographic significance may be
planned and carried out, the Secretary may—
‘‘(1) designate appropriate ‘economic develop-
ment districts’ within the United States with the
concurrence of the States in which such districts will
be wholly or partially located, if—
‘‘(A) the proposed district is of sufficient
size or population, and contains sufficient re-
sources, to foster economic development on a
scale involving more than a single area de-
scribed in section 302(a);
‘‘(B) the proposed district contains at least
1 area described in section 302(a);
‘‘(C) the proposed district contains 1 or
more areas described in section 302(a) or eco-
nomic development centers identified in an ap-
proved district comprehensive economic develop-
ment strategy as having sufficient size and po-
tential to foster the economic growth activities
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necessary to alleviate the distress of the areas
described in section 302(a) within the district;
and
‘‘(D) the proposed district has a district
comprehensive economic development strategy
which includes sustainable development, ade-
quate land use and transportation planning and
contains a specific program for district coopera-
tion, self-help, and public investment and is ap-
proved by the State or States affected and by
the Secretary.
‘‘(2) designate as ‘economic development cen-
ters’, in accordance with such regulations as the
Secretary shall prescribe, such areas as the Sec-
retary may deem appropriate, if—
‘‘(A) the proposed center has been identi-
fied and included in an approved district com-
prehensive economic development strategy and
recommended by the State or States affected
for such special designation;
‘‘(B) the proposed center is geographically
and economically so related to the district that
its economic growth may reasonably be expected
to contribute significantly to the alleviation of
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distress in the areas described in section 302(a)
of the district; and
‘‘(C) the proposed center does not have a
population in excess of 250,000 according to
the most recent Federal census.
‘‘(3) provide financial assistance in accordance
with the criteria of this Act, except as may be herein
otherwise provided, for projects in economic develop-
ment centers designated under subsection (a)(2),
if—
‘‘(A) the project will further the objectives
of the comprehensive economic development
strategy of the district in which it is to be lo-
cated;
‘‘(B) the project will enhance the economic
growth potential of the district or result in ad-
ditional long-term employment opportunities
commensurate with the amount of Federal fi-
nancial assistance requested; and
‘‘(C) the amount of Federal financial as-
sistance requested is reasonably related to the
size, population, and economic needs of the dis-
trict.
‘‘(b) AUTHORITIES.—The Secretary may, under reg-
ulations prescribed by the Secretary—
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‘‘(1) invite the several States to draw up pro-
posed economic development district boundaries and
to identify potention economic development centers;
‘‘(2) cooperate with the several States—
‘‘(A) in sponsoring and assisting district
economic planning and development groups;
and
‘‘(B) in assisting such district groups to
formulate district comprehensive economic de-
velopment strategies; and
‘‘(3) encourage participation by appropriate
local governmental authorities in such economic de-
velopment districts.
‘‘SEC. 402. TERMINATION OR MODIFICATION.
‘‘The Secretary shall be regulation prescribe stand-
ards for the termination or modification of economic devel-
opment districts and economic development centers des-
ignated under the authority of section 401.
‘‘SEC. 403. BONUS.
‘‘Subject to the 20 per centum non-Federal share re-
quired for any project by subsection 205(b)(1) of this Act,
the Secretary is authorize to increase the amount of grant
assistance authorized by sections 204 and 205 for projects
within designated economic development districts by an
amount not to exceed 10 per centum of the aggregate cost
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of such project, in accordance with such regulations as the
Secretary shall prescribe if—
(1) the project applicant is actively participat-
ing in the economic development activities of the dis-
trict; and
(2) the project is consistent with an approved
district comprehensive economic development strat-
egy.
‘‘SEC 404. STRATEGY PROVIDED TO APPALACHIAN RE-
GIONAL COMMISSION.
‘‘Each economic development district designated by
the Secretary under this title shall provide that a copy
of the district comprehensive economic development strat-
egy be furnished to the Appalachian Commission estab-
lished under the Appalachian Regional Development Act
of 1965 if any part of such district is within the Appalach-
ian region.
‘‘SEC. 405. PARTS NOT WITHIN AREAS DESCRIBED IN SEC-
TION 302(a).
‘‘The Secretary is authorized to provide the financial
assistance which is available to an area described in sec-
tion 302(a) under this Act to those parts of an economic
development district which are not within an area de-
scribed in section 302(a), when such assistance will be of
a substantial direct benefit to an area described in section
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302(a) within such district. Such financial assistance shall
be provided in the same manner and to the same extent
as is provided in this Act for an area described in section
302(a).
‘‘TITLE V—ADMINISTRATION
‘‘SEC. 501. ASSISTANCE SECRETARY FOR ECONOMIC DEVEL-
OPMENT.
‘‘The Secretary will administer this Act with assist-
ance of an Assistant Secretary of Commerce for Economic
Development to be appointed by the President by and with
the advice and consent of the Senate. The Assistant Sec-
retary of Commerce for Economic Development will per-
form such functions as the Secretary may prescribe and
will serve as the administrator of the Economic Develop-
ment Administration within the Department of Commerce.
‘‘SEC. 
502. 
ECONOMIC 
DEVELOPMENT 
INFORMATION
CLEARINGHOUSE.
‘‘It shall be a duty that the Secretary in administer-
ing this Act—
‘‘(a) to serve as a central information clearing-
house on matters relating to economic development,
economic, adjustment, disaster recovery, and defense
conversion programs and activities of the Federal
and State governments, including political subdivi-
sions of the States;
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‘‘(b) to help potential and actual applicants for
economic development, economic adjustment, disas-
ter recovery, and defense conversion assistance
under Federal, State, and local laws in locating and
applying for such assistance, including financial and
technical assistance; and
‘‘(c) to aid areas described in section 302(a)
and other areas by furnishing to interested individ-
uals, communities, industries, and enterprises within
such areas any technical information, market re-
search, or other forms of assistance, information, or
advice which would be useful in alleviating or pre-
venting conditions of excessive unemployment or
underemployment within such areas.
‘‘SEC. 503. CONSULTATION WITH OTHER PERSONS AND
AGENCIES.
‘‘(a) CONSULTATION ON PROBLEMS RELATING TO
EMPLOYMENT.—The Secretary is authorized from time to
time to call together and confer with any persons, includ-
ing representatives of labor, management, agriculture, and
government, who can assist in meeting the problems of
area and regional unemployment.
‘‘(b) CONSULTATION ON ADMINISTRATION OF ACT.—
The Secretary may make provisions for such consultation
with interested departments and agencies as the Secretary
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may deem appropriate in the performance of the functions
vested in the Secretary by this Act.
‘‘SEC. 504. ADMINISTRATION, OPERATION, AND MAINTE-
NANCE.
‘‘No Federal assistance shall be approved under this
Act unless the Secretary is satisfied that the project for
which Federal assistance is granted will be properly and
efficiently administered, operated, and maintained.
‘‘SEC. 505. FIRMS DESIRING FEDERAL CONTRACTS.
‘‘The Secretary may furnish the procurement divi-
sions of the various departments, agencies, and other in-
strumentalities of the Federal Government with a list con-
taining the names and addresses of business firms which
are located in areas of high economic distress and which
are desirous of obtaining Government contracts for the
furnishing of supplies or services, and designating the sup-
plies and services such firms are engaged in providing.
‘‘SEC. 506. AMENDMENT TO TITLE 5, U.S.C.
‘‘Section 5316 of title 5, United States Code, is
amended by striking ‘Administrator for Economic Devel-
opment.’.
‘‘TITLE VI—MISCELLANEOUS
‘‘SEC. 601. POWERS OF SECRETARY.
‘‘(a) IN GENERAL.—In performing the Secretary’s
duties under this Act, the Secretary is authorized to—
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‘‘(1) adopt, alter, and use a seal, which shall be
judicially noticed;
‘‘(2) subject to the civil-service and classifica-
tion laws, select, employ, appoint, and fix the com-
pensation of such personnel as may be necessary to
carry out the provisions of this Act;
‘‘(3) hold such hearings, sit and act at such
times and places, and take such testimony, as the
Secretary may deem advisable;
‘‘(4) request directly from any executive depart-
ment, bureau, agency, board, commission, office,
independent establishment, or instrumentality infor-
mation, suggestions, estimates, and statistics needed
to carry out the purposes of this Act; and each de-
partment, bureau, agency, board, commission, office,
establishment, or instrumentality is authorized to
furnish such information, suggestions, estimates,
and statistics directly to the Secretary;
‘‘(5) consistent with the Debt Collection Im-
provement Act of 1995, under regulations prescribed
by the Secretary, assign or sell at public or private
sale, or otherwise dispose of for cash or credit, in
the Secretary’s discretion and upon such terms and
conditions and for such consideration as the Sec-
retary determines to be reasonable, any evidence of
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debt, contract, claim, personal property or security
assigned to or held by the Secretary in connection
with assistance extended under the Act, and collect
or compromise all obligations assigned to or held by
the Secretary in connection with such assistance
until such time as such obligations may be referred
to the Attorney General for suit or collection;
‘‘(6) deal with, complete, renovate, improve,
modernize, insure, rent, or sell for cash or credit,
upon such terms and conditions and for such consid-
eration as the Secretary determines to be reasonable,
any real or personal property conveyed to or other-
wise acquired by the Secretary in connection with
assistance extended under this Act;
‘‘(7) consistent with the Debt Collection Im-
provement Act of 1996, pursue to final collection, by
way of compromise or other administrative action,
prior to reference to the Attorney General, all claims
against third parties assigned to the Secretary in
connection with assistance extended under this Act;
‘‘(8) acquire, in any lawful manner, any prop-
erty (real, personal, or mixed, tangible or intangi-
ble), whenever necessary or appropriate in connec-
tion with assistance extended under this Act;
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‘‘(9) in addition to any powers, functions, privi-
leges, and immunities otherwise vested in the Sec-
retary, take any action, including the procurement of
the services of attorneys by contract, determined by
the Secretary to be necessary or desirable in making,
purchasing, servicing, compromising, modifying, liq-
uidating, or otherwise administratively dealing with
assets held in connection with financial assistance
extended under this Act;
‘‘(10) employ experts and consultants or organi-
zations as authorized by section 3109 of title 5,
United States Code, compensate individuals so em-
ployed, including travel time, and allow them, while
away from their homes or regular places of business,
travel expenses (including per diem in lieu of sub-
sistence) as authorized by section 5703 of title 5,
United States Code, for persons in the Government
service employed intermittently, while so employed,
except that contracts for such employment may be
renewed annually;
‘‘(11) establish performance measures for
grants and other assistance provided under this Act,
and use such performance measures to evaluate the
economic impact of economic development assistance
programs; the establishment and use of such per-
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formance measures to be provided by the Secretary
through members of his staff, through the employ-
ment of appropriate parties under contracts entered
into for such purposes, or through grants to such
parties for such purposes, using any funds made
available by appropriations to carry out this Act;
‘‘(12) sue and be sued in any court of record
of a State having general jurisdiction or in any
United States district court, and jurisdiction is con-
ferred upon such district court to determine such
controversies without regard to the amount in con-
troversy; but not attachment, injunction, garnish-
ment, or other similar process, mesne or final, shall
be issued against the Secretary or the Secretary’s
property;
‘‘(13) establish such rules, regulations, and pro-
cedures as the Secretary considers appropriate in
carrying out the provisions of this Act.
‘‘(b) 
DEFICIENCY
JUDGMENTS.—The 
authority
under subsection (a)(7) to pursue claims shall include the
authority to obtain deficiency judgments or otherwise in
the case of mortgages assigned to the Secretary.
‘‘(c) INAPPLICABILITY
OF CERTAIN OTHER RE-
QUIREMENTS.—Section 3709 of the Revised Statutes of
the United States shall not apply to any contract of haz-
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ard insurance or to any purchase or contract for services
or supplies on account of property obtained by the Sec-
retary as a result of assistance extended under this Act
if the premium for the insurance or the amount of the
insurance does not exceed $1,000.
‘‘(d) PROPERTY INTERESTS.—The powers of the Sec-
retary, pursuant to this section, in relation to property ac-
quired by the Secretary in connection with assistance ex-
tended under this Act, shall extend to property interests
of the Secretary in relation to projects approved under the
Public Works and Economic Development Act of 1965,
title I of the Public Works Employment Act of 1976, title
II of the Trade Act of 1974, and the Community Emer-
gency Drought Relief Act of 1977. Property interests in
connection with grants may be released, whole or in part,
in the Secretary’s discretion, after 20 years from the date
of grant disbursement.
‘‘(e) POWERS OF CONVEYANCE AND EXECUTION.—
The power to convey and to execute, in the name of the
Secretary, deeds of conveyance, deeds of release, assign-
ments and satisfactions of mortgages, and any other writ-
ten instrument relating to real or personal property or any
interest therein acquired by the Secretary pursuant to the
provisions of this Act may be exercised by the Secretary,
or by any officer or agent appointed by the Secretary for
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such purpose, without the execution of any express delega-
tion of power or power of attorney.
‘‘SEC. 602. MAINTENANCE OF STANDARDS.
‘‘The Secretary shall continue to implement and en-
force the provisions of section 712 of this Act, as in effect
on the day before the effective date of the Economic Devel-
opment Partnership Act of 1997.
‘‘SEC. 603. ANNUAL REPORT TO CONGRESS.
‘‘The Secretary shall transmit a comprehensive and
detailed annual report to Congress of the Secretary’s ac-
tivities under this Act for each fiscal year beginning with
the fiscal year ending September 30, 1998, Such report
shall be printed and shall be transmitted to Congress not
later than July 1 of the year following the fiscal year with
respect to which such report is made.
‘‘SEC. 604. USE OF OTHER FACILITIES.
‘‘(a) DELEGATION OF FUNCTIONS TO OTHER FED-
ERAL DEPARTMENTS
AND AGENCIES.—The Secretary
may delegate to the heads of other departments and agen-
cies of the Federal Government any of the Secretary’s
functions, powers, and duties under this Act as the Sec-
retary may deem appropriate, and authorize the redelega-
tion of such functions, powers, and duties by the heads
of such departments and agencies.
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‘‘(b) TRANSFER BETWEEN DEPARTMENTS.—Funds
authorized to be appropriated under this Act may be
transferred between departments and agencies of the Gov-
ernment, if such funds are used for the purposes for which
they are specifically authorized and appropriated.
‘‘(c) FUNDS TRANSFERRED FROM OTHER DEPART-
MENTS AND AGENCIES.—In order to carry out the objec-
tives of this Act, the Secretary may accept transfers of
funds from other departments and agencies of the Federal
Government in the funds are used for the purposes for
which (and in accordance with the terms under which) the
funds are specifically authorized and appropriated. Such
transferred funds shall remain available until expended,
and may be transferred to and merged with the appropria-
tions under the heading ‘salaries and expenses’ by the Sec-
retary to the extent necessary to administer the program.
‘‘SEC. 605. PENALTIES.
‘‘(a) 
FALSE
STATEMENTS, 
SECURITY
OVER-
VALUATION.—Whoever makes any statement knowing it
to be false, or whoever willfully overvalues any security,
for the purpose of obtaining for such person or for any
applicant any financial assistance under this Act or any
extension of such assistance by renewal, deferment or ac-
tion, or otherwise, or the acceptance, release, or substi-
tution of security for such assistance, or for the purpose
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of influencing in any way the action of the Secretary or
for the purpose of obtaining money, property, or anything
of value, under this Act, shall be fined under title 18,
United States Code, imprisoned for not more than 5 years,
or both.
‘‘(b) 
EMBEZZLEMENT
AND
FRAUD-RELATED
CRIMES.—Whoever, being connected in any capacity with
the Secretary in the administration of this Act—
‘‘(1) embezzles, abstracts, purloins, or willfully
misapplies any moneys, funds, securities, or other
things of value, whether belonging to such person or
pledged or otherwise entrusted to such person;
‘‘(2) with intent to defraud the Secretary or
any other politic or corporate, or any individual, or
to deceive any officer, auditor, or examiner, makes
any false entry in any book, report, or statement of
or to the Secretary or without being duly authorized
draws any orders or issues, puts forth, or assigns
any note, debenture, bond, or other obligation, or
draft, bill of exchange, mortgage, judgment, or de-
cree thereof;
‘‘(3) with intent to defraud, participates or shares in
or receives directly or indirectly any money, profit, prop-
erty, or benefit through any transaction, loan, grant, com-
mission, contract, or any other act of the Secretary; or
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‘‘(4) gives any unauthorized information concerning
any future action or plan of the Secretary which might
affect the value of securities, or having such knowledge
invests or speculates, directly or indirectly, in the securi-
ties or property of any company or corporation receiving
loans, grants, or other assistance from the Secretary, shall
be fined under title 18, United States Code, imprisoned
for not more than 5 years, or both.
‘‘SEC. 606. EMPLOYMENT OF EXPEDITERS AND ADMINIS-
TRATIVE EMPLOYEES.
‘‘No financial assistance shall be extended by the Sec-
retary under this Act to any business enterprise unless
the owners, partners, or officers of such business enter-
prise—
‘‘(1) certify to the Secretary the names of any
attorneys, agents, and other persons engaged by or
on behalf of such business enterprise for the purpose
of expediting applications made to the Secretary for
assistance of any sort, under this Act, and the fees
paid or to be paid to any such person; and
‘‘(2) execute an agreement binding such busi-
ness enterprise, for a period of 2 years after such
assistance is rendered by the Secretary to such busi-
ness enterprise, to refrain from employing, tendering
any office or employment to, or retaining for profes-
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sional services, any person who, on the date such as-
sistance or any part thereof was rendered, or within
the 1-year period ending on such date, shall have
served as an officer, attorney, agent, or employee,
occupying a position or engaging in activities which
the Secretary determines involves discretion with re-
spect to the granting of assistance under this Act.
‘‘SEC. 607. MAINTENANCE OF RECORDS OF APPROVED AP-
PLICATIONS FOR FINANCIAL ASSISTANCE;
PUBLIC INSPECTION.
‘‘(a) MAINTENANCE OF RECORD REQUIRES.—The
Secretary shall maintain as a permanent part of the
records of the Department of Commerce a list of applica-
tions approved for financial assistance under this Act,
which shall be kept available for public Inspection during
the regular business hours of the Department of Com-
merce.
‘‘(b) POSTING TO LIST.—The following information
shall be posted in such list as soon as each application
is approved:
‘‘(1) The name of the applicant and, in the case
of corporate applications, the names of the officers
and directors thereof.
‘‘(2) The amount and duration of the financial
assistance for which application is made.
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‘‘(3) The purposes for which the proceeds of the
financial assistance are to be used.
‘‘SEC. 608. RECORDS AND AUDIT.
‘‘(a) RECORDKEEPING AND DISCLOSURE REQUIRE-
MENTS.—Each recipient of assistance under this Act shall
keep such records as the Secretary shall prescribe, includ-
ing records which fully disclose the amount and the dis-
position by such recipient of the proceeds of such assist-
ance, the total cost of the project or undertaking in con-
nection with which such assistance is given or used, and
the amount and nature of that portion of the cost of the
project or undertaking supplied by other sources, and such
other records as will facilitate and effective audit.
‘‘(b) ACCESS
TO BOOKS
FOR EXAMINATION
AND
AUDIT.—The Secretary, the Inspector General of the De-
partment of Commerce, and the Comptroller General of
the United States, or any of their duly authorized rep-
resentatives, shall have access for the purpose of audit and
examination to any books, documents, papers, and records
of the recipient that are pertinent to assistance received
under this Act.
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‘‘SEC. 609. PROHIBITION AGAINST A STATUTORY CON-
STRUCTION WHICH MIGHT CAUSE DIMINU-
TION IN OTHER FEDERAL ASSISTANCE.
‘‘All financial and technical assistance authorized
under this Act shall be in addition to any Federal assist-
ance previously authorized, and no provision of this Act
shall be construed as authorizing or permitting any reduc-
tion or diminution in the proportional amount of Federal
assistance which any State or other entity eligible under
this Act would otherwise be entitled to receive under the
provisions of any other Act.
‘‘SEC. 610. ACCEPTANCE OF APPLICANTS’ CERTIFICATIONS.
‘‘The Secretary may accept, when deemed appro-
priate, the applicants’ certifications to meet the require-
ments of this Act.
‘‘TITLE VII—FUNDING
‘‘SEC. 701. AUTHORIZATION OF APPROPRIATIONS
‘‘There is authorized to be appropriated to carry out
this Act $343,028,000 for fiscal year 1998 and such sums
as may be necessary for each fiscal years 1999 through
2002, such sums to remain a available until expended.
‘‘SEC. 702. DEFENSE CONVERSION ACTIVITIES.
‘‘In addition to the appropriations authorized by sec-
tion 701, there are authorized to be appropriated to carry
out this Act such sums as may be necessary to provide
assistance for defense conversion activities. Such funding
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may include pilot projects for privatization and economic
development activities for closed or realigned military or
Department of Energy installations. Such sums shall re-
main available until expended.
‘‘SEC. 703. DISASTER ECONOMIC RECOVERY ACTIVITIES.
‘‘In addition to the appropriations authorized by sec-
tion 701, there are authorized to be appropriated to carry
out this Act such sums as may be necessary to provide
assistance for disaster economic recovery activities. Such
sums shall remain available until expended.’’.
SEC. 3. SAVINGS PROVISIONS.
(a) EXISTING RIGHTS, DUTIES, AND OBLIGATIONS
NOT AFFECTED.—This Act shall not be construed as af-
fecting the validity of any right, duty, or obligation of the
United States or any other person arising or pursuant to
any contract, loan, or other instrument or agreement
which was in effect on the day before the effective date
of this Act.
(b) CONTINUATION OF SUITS.—No action or other
proceeding commenced by or against any officer or em-
ployee of the Economic Development Administration shall
abate by reason of the enactment of this Act.
(c) LIQUIDATING ACCOUNT.—The Economic Devel-
opment Revolving Fund hitherto established under section
203 of the Public Works and Economic Development Act