institutions under contracts entered into for such pur-
poses; or
‘‘(4) award grants under this title.
‘‘SEC. 208. RELOCATION OF INDIVIDUALS AND BUSINESSES.
‘‘Grants to eligible recipients under this Act shall in-
clude amounts that may be required to provide relocation
assistance to affected persons, as required by the Uniform
Relocation Assistance and Real Property Acquisition Poli-
cies Act 1970 (42 U.S.C. 4601 et seq.).
‘‘SEC. 209. ECONOMIC ADJUSTMENT.
‘‘(a) DIRECT GRANTS.—Upon the application of an el-
igible recipient, the Secretary may make direct grants for
public facilities, public services, business development (in-
cluding a revolving loan fund), planning, technical assist-
ance, training, and other assistance that demonstrably fur-
thers the economic adjustment objectives of this Act, includ-
ing activities to alleviate long-term economic deterioration
and sudden and severe economic dislocations.
‘‘(b) SELECTION OF PROJECTS.—The Secretary may
provide assistance for a project under this section only if
the Secretary finds that—
‘‘(1) the project will help the area for which the
project is to be undertaken meet a special need aris-
ing from—
‘‘(A) actual or threatened severe unemploy-
ment arising from economic dislocation, includ-
ing unemployment arising from actions of the
Federal Government; or
‘‘(B) economic adjustment problems result-
ing from severe changes in economic conditions
(including long-term economic deterioration);
and
‘‘(2) except with respect to planning projects, the
project is consistent with a comprehensive economic
development strategy that has been developed in ac-
cordance with section 303 for the area for which the
project is to be undertaken.
‘‘(c) ACTIVITIES
RELATED
TO
DEFENSE
REDUC-
TIONS.—In order to help the communities diversify their
economies, assistance under this section shall extend to ac-
tivities identified by communities impacted by military
base closures, defense contractor cutbacks, and Department
of Energy defense-related reductions. Nothing in this sub-
section is intended to replace the efforts of the economic ad-
justment program of the Department of the Defense.
‘‘(d) POST-DISASTER ACTIVITIES.—Assistance under
this section shall extend to post-disaster activities in areas
affected by natural or other disasters.
‘‘(e) 
ACTIVITIES
RELATED
TO
INTERNATIONAL
TRADE.—Assistance under this section shall extend to ac-
tivities identified by communities that have suffered eco-
nomic injury caused by international trade in order to help
the communities restructure their economies.
‘‘SEC. 210. DIRECT EXPENDITURE OR REDISTRIBUTION BY
RECIPIENT.
‘‘Amounts from grants under section 209 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, payments to re-
duce interest on loan guarantees, or other appropriate as-
sistance, but no grant may be made by an eligible recipient
to a private profit-making entity.
‘‘SEC. 211. CHANGED PROJECT CIRCUMSTANCES.
‘‘In any case in which a grant (including a supple-
mental grant) has been made by the Secretary for a project
under this title (or under this Act, as in effect on the day
before the date of enactment of the Economic Development
Partnership Act of 1998), and after the grant has been made
but before completion of the project, the purpose or scope
of the project that was the basis of the grant has changed,
the Secretary may approve the use of grant funds for the
changed project if the Secretary determines that the changed
project meets the requirements of this title and that the
changes are necessary to enhance economic development in
the area.
‘‘SEC. 212. USE OF FUNDS IN PROJECTS CONSTRUCTED
UNDER PROJECTED COST.
‘‘In any case in which a grant (including a supple-
mental grant) has been made by the Secretary under this
title (or under this Act, as in effect on the day before the
date of enactment of the Economic Development Partner-
ship Act of 1998) for a construction project, and after the
grant has been made but before completion of the project,
the cost of the project (based upon the designs and specifica-
tions that were the basis of the grant) has decreased because
of decreases in costs, the underrun funds may be used to
improve the project either directly or indirectly, as deter-
mined by the Secretary.
‘‘SEC. 213. BASE CLOSINGS AND REALIGNMENTS.
‘‘(a) LOCATION OF PROJECTS.—In any case in which
the Secretary determines there is a need for assistance under
this title due to the closure or realignment of a military
installation or a Department of Energy defense-related in-
stallation, the Secretary may make such assistance avail-
able for projects to be carried out on the installation and
for projects to be carried out in communities adversely af-
fected by the closure or realignment.
‘‘(b) INTEREST IN PROPERTY.—Notwithstanding any
other provision of law, the Secretary may provide to an
eligible recipient any assistance made available under this
Act for a project to be carried out on a military installa-
tion, or a Department of Energy defense-related installa-
tion, that is closed or scheduled for closure or realignment
without requiring the eligible recipient to have title to the
property or a leasehold interest in the property for any
specified term.
‘‘SEC. 214. PREVENTION OF UNFAIR COMPETITION.
‘‘Financial assistance under this Act may not be ex-
tended to any project if—
‘‘(1) the assistance would result in an increase
in the production of goods, materials, or commodities,
or the availability of services or facilities; and
‘‘(2) there is not sufficient demand for such
goods, materials, commodities, services, or facilities to
employ the efficient capacity of existing competitive
commercial or industrial enterprises.
‘‘SEC. 215. SALE OF FINANCIAL INSTRUMENTS IN REVOLV-
ING LOAN FUNDS.
‘‘Any loan, loan guarantee, equity, or other financial
instrument in the portfolio of a revolving loan fund, includ-
ing any financial instrument made available using
amounts from a grant made before the date of enactment
of the Economic Development Partnership Act of 1998, may
be sold, encumbered, or pledged at the discretion of the
grantee of the fund, to a third party provided that the net
proceeds of the transaction—
‘‘(1) shall be deposited into the fund and may
only be used for activities which are consistent with
the purposes of this title; and
‘‘(2) shall be subject to the financial manage-
ment, accounting, reporting, and auditing standards
which were applicable to the original grant.
‘‘SEC. 216. REPORTS BY RECIPIENT.
‘‘(a) IN GENERAL.—The Secretary shall require all re-
cipients of assistance under this Act to submit reports to
the Secretary.
‘‘(b) REQUIREMENTS.—Reports under subsection (a)
shall—
‘‘(1) be submitted at such intervals and in such
manner as the Secretary shall prescribe by regulation,
not to exceed 10 years from the time of closeout of the
assistance award; and
‘‘(2) contain an evaluation of the effectiveness of
the economic assistance provided under this Act in
meeting the need the assistance was designed to allevi-
ate and the purposes of this Act.
‘‘(c) REVOLVING LOAN FUNDS.—
‘‘(1) IN GENERAL.—Except as provided by para-
graph (2), reports of the activities of a revolving loan
fund may be required at such intervals as may be
provided by regulation.
‘‘(2) LIMITATION.—After final disbursements of
assistance to establish a revolving loan fund (includ-
ing assistance provided before the date of enactment
of the Economic Development Partnership Act of
1998), reports of activities of the revolving loan fund
may not be required more frequently than annually.
‘‘TITLE III—DEFINITIONS, ELIGI-
BILITY, AND COMPREHENSIVE
ECONOMIC 
DEVELOPMENT
STRATEGIES
‘‘SEC. 301. DEFINITIONS.
‘‘In this Act, the following definitions apply:
‘‘(1) ECONOMIC DEVELOPMENT DISTRICT.—The
term ‘economic development district’ means an area
in the United States composed of cooperating areas
described in section 302(a) and, where appropriate,
designated economic development centers and neigh-
boring counties or communities, that has been des-
ignated by the Secretary as an economic development
district. The term includes any economic development
district designated by the Secretary under section 403
of this Act, as in effect on the day before the date of
enactment of the Economic Development Partnership
Act of 1998.
‘‘(2) ECONOMIC
DEVELOPMENT
CENTER.—The
term ‘economic development center’ means an area in
the United States that has been identified as an eco-
nomic development center in an approved comprehen-
sive economic development strategy and that has been
designated by the Secretary as eligible for financial
assistance under this Act in accordance with the pro-
visions of this Act.
‘‘(3) ELIGIBLE
RECIPIENT.—The term ‘eligible
recipient’ means—
‘‘(A) an area described in section 302(a);
‘‘(B) an economic development district des-
ignated under section 401;
‘‘(C) an Indian tribe, a State, a city or
other political subdivision of a State, or a con-
sortium of such political subdivisions;
‘‘(D) an institution of higher education or
a consortium of such institutions; or
‘‘(E) a public or private nonprofit organi-
zation or association acting in cooperation with
officials of such political subdivision.
For grants made under section 207, the term also in-
cludes private individuals and for-profit organiza-
tions.
‘‘(4) GRANT.—The term ‘grant’ includes a coop-
erative agreement, as that term is used in the Federal
Grant and Cooperative Agreement Act of 1977.
‘‘(5) INDIAN
TRIBE.—The term ‘Indian tribe’
means any Indian tribe, band, nation, pueblo, or
other organized group or community, including any
Alaska Native village or regional corporation as de-
fined in or established pursuant to the Alaska Native
Claims Settlement Act, which is recognized as eligible
for the special programs and services provided by the
United States to Indians because of their status as
Indians.
‘‘(6) SECRETARY.—The term ‘Secretary’ means
the Secretary of Commerce.
‘‘(7) STATE.—The terms ‘State’, ‘States’, and
‘United States’ include the several States, the District
of Columbia, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, American Samoa, the Repub-
lic of the Marshall Islands, the Federated States of
Micronesia, the Republic of Palau, and the Common-
wealth of the Northern Mariana Islands.
‘‘SEC. 302. AREA ELIGIBILITY.
‘‘(a) CERTIFICATION.—In order to be eligible for assist-
ance under section 201 or 209, a project shall serve an area
that meets 1 or more of the following criteria:
‘‘(1) The area has a per capita income of 80 per-
cent or less of the national average.
‘‘(2) The area has an unemployment rate that is
at least 1 percent above the national average percent-
age for the most recent 24-month period for which
statistics are available.
‘‘(3) The area is determined by the Secretary to
have experienced, or to be reasonably foreseen as
about to experience, a special need to meet an ex-
pected rise in unemployment or other economic ad-
justment problem (including those caused by any ac-
tion or decision of the Federal Government).
‘‘(4) The area is determined by the Secretary to
be a pocket of poverty or high unemployment within
a larger community of less economic distress and has
demonstrated a resistance to economic recovery with-
out assistance under this Act.
‘‘(b) DOCUMENTATION.—An applicant for assistance
for a project under section 201 or 209 shall document, as
part of an application for the assistance, the eligibilty of
the project under the criteria of subsection (a) by using Fed-
eral data, when available, or, in the absence of recent Fed-
eral data, by using data available through the State govern-
ment. An area meeting the criteria of subsection (a), includ-
ing a pocket of poverty or high unemployment within a
larger community of less economic distress, may be defined
without regard to political or other boundaries.
‘‘(c) PRIOR DESIGNATIONS.—Any designation of a re-
development area made before the date of enactment of the
Economic Development Partnership Act of 1998 shall not
be effective after such date.
‘‘SEC. 303. COMPREHENSIVE ECONOMIC DEVELOPMENT
STRATEGY.
‘‘(a) IN GENERAL.—The Secretary may provide assist-
ance under section 201 or 209 (except planning assistance
under section 209) to an applicant for a project only if
the applicant submits to the Secretary, as part of an appli-
cation for the assistance, a comprehensive economic develop-
ment strategy that—
‘‘(1) identifies the economic development prob-
lems to be addressed using the assistance;
‘‘(2) identifies past, present, and projected future
economic development investments in the area receiv-
ing the assistance and public and private partici-
pants and sources of funding for the investments; and
‘‘(3) sets forth a strategy for addressing the eco-
nomic problems identified pursuant to paragraph (1)
and describes how the strategy will solve the problems.
‘‘(b) OTHER PLAN.—The Secretary may accept as a
comprehensive economic development strategy a satisfactory
plan prepared under another Federally supported program.
‘‘TITLE IV—ECONOMIC
DEVELOPMENT DISTRICTS
‘‘SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT DIS-
TRICTS AND ECONOMIC DEVELOPMENT CEN-
TERS.
‘‘(a) IN GENERAL.—In order that economic develop-
ment projects of broader geographic significance may be
planned and carried out, the Secretary may take the actions
authorized by this section.
‘‘(b) DESIGNATION OF ECONOMIC DEVELOPMENT DIS-
TRICTS.—The Secretary may designate appropriate ‘eco-
nomic development districts’ within the United States with
the concurrence of the States in which such districts will
be wholly or partially located, if—
‘‘(1) the proposed district is of sufficient size or
population, and contains sufficient resources, to foster
economic development on a scale involving more than
a single area described in section 302(a);
nomic development strategy and recommended by the
State or States affected for such special designation;
‘‘(2) the proposed center is geographically and
economically so related to the district that its eco-
nomic growth may reasonably be expected to contrib-
ute significantly to the alleviation of distress in the
areas described in section 302(a) of the district; and
‘‘(3) the proposed center does not have a popu-
lation in excess of 250,000 according to the most re-
cent Federal census.
‘‘(d) PROVISION OF FINANCIAL ASSISTANCE.—The Sec-
retary may provide financial assistance in accordance with
the criteria of this Act, except as otherwise expressly pro-
vided, for projects in economic development centers des-
ignated under subsection (c), if—
‘‘(1) the project will further the objectives of the
comprehensive economic development strategy of the
district in which the project will be located;
‘‘(2) the project will enhance the economic
growth potential of the district or result in additional
long-term employment opportunities commensurate
with the amount of Federal financial assistance re-
quested; and
‘‘(3) the amount of Federal financial assistance
requested is reasonably related to the size, population,
and economic needs of the district.
‘‘(e) AUTHORITIES.—The Secretary may, under regu-
lations to be issued by the Secretary—
‘‘(1) invite the several States to draw up pro-
posed economic development district boundaries and
to identify potential economic development centers;
‘‘(2) encourage the States to consult with appro-
priate local governmental authorities in the proposal
of economic development district boundaries or their
modification;
‘‘(3) cooperate with the several States—
‘‘(A) in sponsoring and assisting district
economic planning and development groups; and
‘‘(B) in assisting such district groups to for-
mulate district comprehensive economic develop-
ment strategies; and
‘‘(4) encourage participation by appropriate
local governmental authorities in such economic devel-
opment districts.
‘‘SEC. 402. TERMINATION OR MODIFICATION.
‘‘The Secretary shall issue regulations to prescribe
standards for the termination or modification of economic
development districts and economic development centers
designated under the authority of section 401.
‘‘SEC. 403. BONUS.
‘‘Subject to the 20 percent non-Federal share require-
ment of section 205(b)(1), the Secretary may 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 percent of the aggre-
gate cost of the project, in accordance with regulations to
be issued by the Secretary, 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 strategy.
‘‘SEC 404. STRATEGY PROVIDED TO APPALACHIAN RE-
GIONAL COMMISSION.
‘‘An economic development district designated by the
Secretary under this title shall ensure that a copy of the
district’s comprehensive economic development strategy is
furnished to the Appalachian Regional Commission estab-
lished under the Appalachian Regional Development Act of
1965 if any part of such district is within the Appalachian
region.
‘‘SEC. 405. PARTS NOT WITHIN AREAS DESCRIBED IN SEC-
TION 302(a).
‘‘The Secretary is authorized to provide financial as-
sistance available to an area described in section 302(a)
under this Act to those parts of an economic development
district that are not within an area described in section
302(a), if the Secretary determines, in writing, that the as-
sistance will be of a substantial direct benefit to an area
described in section 302(a) within such district. Such finan-
cial 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. UNDER SECRETARY OF COMMERCE FOR ECO-
NOMIC DEVELOPMENT.
‘‘(a) APPOINTMENT.—The Secretary shall administer
this Act with assistance of an Under Secretary of Commerce
for Economic Development to be appointed by the President
by and with the advice and consent of the Senate.
‘‘(b) DUTIES.—The Under Secretary of Commerce for
Economic Development shall perform such functions as the
Secretary may prescribe and will serve as the administrator
of the Economic Development Administration within the
Department of Commerce.
‘‘SEC. 502. OFFICE OF ECONOMIC DEVELOPMENT INFORMA-
TION.
‘‘(a) ESTABLISHMENT.—The Secretary shall establish
in the Economic Development Administration an Office of
Economic Development Information (hereinafter in this sec-
tion referred to as the ‘Office’).
‘‘(b) DUTIES.—The Office shall—
‘‘(1) serve as a central information clearinghouse
on matters relating to economic development pro-
grams and activities of the Federal Government and
State governments, including political subdivisions of
States;
‘‘(2) help potential and actual applicants for
economic development assistance under Federal,
State, and local laws in locating and applying for
such assistance, including financial and technical as-
sistance; and
‘‘(3) develop electronic links or other connections
to information databases provided by Federal depart-
ments and agencies, State and local governmental
agencies, public and private entities, and individuals
to assist other such agencies, entities, and individuals
in the process of identifying and applying for assist-
ance and resources under economic development pro-
grams and activities of the Federal, State, and local
governments.
‘‘(c) ELECTRONIC LINKS
AND CONNECTIONS.—The
databases to which the Office shall develop electronic links
or other connections shall include the following kinds of in-
formation:
‘‘(1) Relevant information concerning available
economic development programs of the Federal Gov-
ernment, including key contact personnel, descriptions
of the application process, eligibility requirements
and criteria, selection and follow-up procedures, and
other such relevant information.
‘‘(2) Relevant information concerning major
State and local governmental economic development
programs, including lists of appropriate offices, offi-
cers, and contact personnel connected with, or in-
volved in, such programs.
‘‘(3) Relevant and available economic data and
trends, including information about the national, re-
gional, and local impacts of trade agreements, defense
spending and downsizing, technological change, and
other sources of substantial economic dislocation.
‘‘(4) Case studies and best practices in economic
development, adjustment, and reinvestment.
‘‘(5) Technology utilization programs, assistance,
and resources.
‘‘(6) Compilations of published works (including
bibliographies, books, reports, articles, videos, and
tapes), and selected texts of such works, related to all
facets of economic development.
‘‘(7) Information concerning current revolving
loan fund programs and finance programs directly
related to economic development objectives.
‘‘(8) Resources that assist in identifying poten-
tial sources of capital for businesses, including revolv-
ing loan funds, venture capital, and other capital
tools.
‘‘(9) Resources, including geographic information
systems, that assist economic developers in under-
standing and pursuing sustainable development and
initiatives.
‘‘(d) PUBLIC ACCESS TO DATA SERVICES.—The Office
shall establish the means to ensure easy access by the public
to the Office’s information clearinghouse, and shall take all
appropriate steps to ensure that the clearinghouse and its
resources are as accessible and user-friendly as possible. As
soon as practicable, and until replaced by a means deter-
mined by the Secretary to be more effective in accomplish-
ing the purposes of this section, access to the data services
of the Office shall include each of the following means:
‘‘(1) An Internet web site, with sorted key loca-
tions by economic development related topic, for users
to access lists of various Governmentwide and other
economic development web site resources.
‘‘(2) A toll-free nationwide telephone number to
provide direct phone access to the public.
‘‘(3) On-line electronic access through existing
computer network services and publicly available
computer database access facilities.
‘‘(4) Printed manuals and orientation materials.
‘‘(5) Periodic orientation workshops available to
the public.
‘‘(6) On-call information specialists to address
special problems requiring person-to-person assist-
ance.
‘‘(e) COORDINATION WITH OTHER FEDERAL DEPART-
MENTS AND AGENCIES.—The Secretary shall enter into such
agreements and understandings as may be necessary with
other Federal departments and agencies to coordinate the
accomplishment of the objectives of this section.
‘‘(f) ECONOMIC DEVELOPMENT DEFINED.—In this sec-
tion, the term ‘economic development’ includes economic ad-
justment, disaster recovery, industrial retention, and de-
fense reinvestment.
‘‘SEC. 503. CONSULTATION WITH OTHER PERSONS AND
AGENCIES.
‘‘(a) CONSULTATION ON PROBLEMS RELATING TO EM-
PLOYMENT.—The Secretary may confer with any persons,
including representatives of labor, management, agri-
culture, 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
may deem appropriate in the performance of the functions
vested in the Secretary by this Act.
‘‘SEC. 504. ADMINISTRATION, OPERATION, AND MAINTE-
NANCE.
‘‘Federal assistance may not be approved under this
Act unless the Secretary is satisfied that the project for
which the Federal assistance is to be granted will be prop-
erly and efficiently administered, operated, and main-
tained.
‘‘SEC. 505. FIRMS DESIRING FEDERAL CONTRACTS.
‘‘The Secretary may furnish the procurement divisions
of the various departments, agencies, and other instrumen-
talities of the Federal Government with a list—
‘‘(1) containing the names and addresses of busi-
ness firms that are located in areas of high economic
distress and are seeking Government contracts for the
furnishing of supplies or services; and
‘‘(2) designating the supplies and services that
the firms provide.
‘‘SEC. 506. AMENDMENTS TO TITLE 5, U.S.C.
‘‘Title 5, United States Code, is amended—
‘‘(1) in section 5314 by inserting ‘, Under Sec-
retary of Commerce for Economic Development,’ after
‘Under Secretary of Commerce for Export Adminis-
tration’; and
‘‘(2) in section 5316 by striking ‘Administrator
for Economic Development.’.
‘‘SEC. 507. NOTIFICATION OF REORGANIZATION.
‘‘The Secretary shall notify the Committees on Trans-
portation and Infrastructure and on Appropriations of the
House of Representatives and the Committees on Environ-
ment and Public Works and on Appropriations of the Sen-
ate of any reorganization of the offices, programs, or activi-
ties of the Economic Development Administration on or be-
fore the 30th day preceding the date of the reorganization.
‘‘SEC. 508. PERFORMANCE EVALUATIONS OF GRANT RECIPI-
ENTS.
‘‘(a) IN GENERAL.—The Secretary shall conduct an
evaluation of each university center and economic develop-
ment district receiving grant assistance under this Act to
assess the grantee’s performance and contribution toward
job retention and creation. Evaluations shall be conducted
on a continuing basis so that each grantee will be evaluated
within 3 years after the first award of assistance to the
grantee after the date of enactment of the Economic Devel-
opment Partnership Act of 1998, and at least once every
3 years thereafter, so long as the grantee continues to receive
such assistance.
‘‘(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 center’s
contribution to providing technical assistance, con-
ducting applied research, and disseminating results of
the center’s activities.
‘‘(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 or economic development district under
subsection (a), the Secretary shall provide for the participa-
tion of at least one other university center or economic de-
velopment district, as appropriate, on a cost-reimbursement
basis.
‘‘SEC. 509. COORDINATION.
‘‘(a) IN GENERAL.—The Secretary shall actively co-
ordinate with other Federal programs, States, economic de-
velopment districts, and other appropriate planning and
development organizations the activities relating to the re-
quirements for comprehensive economic development strate-
gies and making grants under this Act.
‘‘(b) FEDERAL COORDINATING COUNCIL
FOR ECO-
NOMIC DEVELOPMENT.—
‘‘(1) IN GENERAL.—The Secretary shall establish
a Federal Coordinating Council for Economic Devel-
opment.
‘‘(2) COMPOSITION
OF
COUNCIL.—The Council
shall be composed of representatives from Federal
agencies involved in matters that affect regional eco-
nomic development.
‘‘(3) DUTIES.—The Council shall assist in pro-
viding a unifying framework for economic and re-
gional development efforts and develop a Government-
wide strategic plan for economic development.
‘‘SEC. 510. ECONOMIC DEVELOPMENT REVOLVING LOAN
FUND TASK FORCE.
‘‘(a) ESTABLISHMENT.—The Secretary of Commerce
shall establish, within the Department of Commerce, an
Economic Development Revolving Loan Fund Task Force.
‘‘(b) MEMBERSHIP.—The members of the Task Force
shall include, at a minimum, representatives of—
‘‘(1) the Economic Development Administration;
‘‘(2) the Office of Inspector General of the De-
partment of Commerce;
‘‘(3) current operators of revolving loan funds es-
tablished with assistance provided under the Public
Works and Economic Development Act of 1965; and
‘‘(4) economic development organizations.
‘‘(c) DUTIES.—The Task Force shall review the finan-
cial management, accounting, reporting, and auditing
standards and requirements of revolving loan funds de-
scribed in subsection (b)(3).
‘‘(d) RECOMMENDATIONS.—Based upon its review, the
Task Force shall make recommendations to the Secretary
to better streamline and lessen revolving loan fund report-
ing requirements.
‘‘TITLE VI—MISCELLANEOUS
‘‘SEC. 601. POWERS OF SECRETARY.
‘‘(a) IN GENERAL.—In performing the Secretary’s du-
ties under this Act, the Secretary is authorized to take the
following actions:
‘‘(1) To adopt, alter, and use a seal, which shall
be judicially noticed.
‘‘(2) Subject to the civil-service and classification
laws, to select, employ, appoint, and fix the com-
pensation of such personnel as may be necessary to
carry out the provisions of this Act.
‘‘(3) To hold such hearings, sit and act at such
times and places, and take such testimony, as the Sec-
retary may deem advisable.
‘‘(4) To request directly from any executive de-
partment, bureau, agency, board, commission, office,
independent establishment, or instrumentality infor-
mation, suggestions, estimates, and statistics needed
to carry out the purposes of this Act. Each depart-
ment, bureau, agency, board, commission, office, es-
tablishment, or instrumentality is authorized to fur-
nish such information, suggestions, estimates, and
statistics directly to the Secretary.
‘‘(5) Under regulations prescribed by the Sec-
retary, to assign or sell at public or private sale, or
otherwise dispose of for cash or credit, in the Sec-
retary’s discretion and upon such terms and condi-
tions and for such consideration as the Secretary de-
termines to be reasonable, any evidence of debt, con-
tract, claim, personal property, or security assigned
to or held by the Secretary in connection with assist-
ance extended under the Act, and to collect or com-
promise all obligations assigned to or held by the Sec-
retary in connection with such assistance until such
time as such obligations may be referred to the Attor-
ney General for suit or collection.
‘‘(6) To 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 as-
sistance extended under this Act.
‘‘(7) To 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) To acquire, in any lawful manner, any
property (real, personal, or mixed, tangible or intan-
gible), whenever necessary or appropriate in connec-
tion with assistance extended under this Act.
‘‘(9) In addition to any powers, functions, privi-
leges, and immunities otherwise vested in the Sec-
retary, to 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 ex-
tended under this Act.
‘‘(10) To employ experts and consultants or or-
ganizations 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 subsist-
ence) 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) To 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 perform-
ance measures shall be provided by the Secretary
through members of the Secretary’s staff, through the
employment 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 appropriation to carry out this Act.
‘‘(12) To conduct environmental reviews and
incur necessary expenses to evaluate and monitor the
environmental impact of economic development assist-
ance provided and proposed to be provided under this
Act, including costs associated with the representation
and defense of actions of the Secretary related to the
environmental impact of such assistance, using any
funds made available by appropriation to carry out
section 207 of this Act.
‘‘(13) To sue and be sued in any court of record
of a State having general jurisdiction or in any
United States district court. Jurisdiction is conferred
upon such district court to determine such controver-
sies without regard to the amount in controversy, but
no attachment, injunction, garnishment, or other
similar process, mesne or final, shall be issued
against the Secretary or the Secretary’s property.
‘‘(14) To establish such rules, regulations, and
procedures 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 author-
ity to obtain deficiency judgments or otherwise in the case
of mortgages assigned to the Secretary.
‘‘(c) INAPPLICABILITY OF CERTAIN OTHER REQUIRE-
MENTS.—Section 3709 of the Revised Statutes of the United
States shall not apply to any contract of hazard insurance
or to any purchase or contract for services or supplies on
account of property obtained by the Secretary as a result
of assistance extended under this Act if the premium for
the insurance or the amount of the insurance does not ex-
ceed $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 Emergency
Drought Relief Act of 1977.
‘‘(e) POWERS OF CONVEYANCE AND EXECUTION.—The
power to convey and to execute, in the name of the Sec-
retary, deeds of conveyance, deeds of release, assignments
and satisfactions of mortgages, and any other written in-
strument relating to real or personal property or any inter-
est therein acquired by the Secretary pursuant to the provi-
sions of this Act may be exercised by the Secretary, or by
any officer or agent appointed by the Secretary for such
purpose, without the execution of any express delegation 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 date of enactment of the Economic
Development Partnership Act of 1998.
‘‘SEC. 603. ANNUAL REPORT TO CONGRESS.
‘‘The Secretary shall transmit a comprehensive and de-
tailed annual report to Congress on the Secretary’s activi-
ties under this Act for fiscal year 1998 and each fiscal year
thereafter. Such report shall be printed and transmitted to
Congress not later than July 1 of the year following the
fiscal year with respect to which the report is to be made.
‘‘SEC. 604. USE OF OTHER FACILITIES.
‘‘(a) DELEGATION OF FUNCTIONS TO OTHER FEDERAL
DEPARTMENTS AND AGENCIES.—The Secretary may dele-
be false, or whoever willfully overvalues any security, for
the purpose of obtaining for such person or for any appli-
cant any financial assistance under this Act or any exten-
sion of such assistance by renewal, deferment or action, or
otherwise, or the acceptance, release, or substitution of secu-
rity for such assistance, or for the purpose 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 de-
ceive 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 decree thereof;
‘‘(3) with intent to defraud, participates or
shares in or receives directly or indirectly any money,
profit, property, or benefit through any transaction,
loan, grant, commission, contract, or any other act of
the Secretary; or
‘‘(4) gives any unauthorized information con-
cerning any future action or plan of the Secretary
that might affect the value of securities, or having
such knowledge invests or speculates, directly or indi-
rectly, in the securities or property of any company
or corporation receiving loans, grants, or other assist-
ance 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 ADMINISTRA-
TIVE EMPLOYEES.
‘‘Financial assistance may not be extended by the Sec-
retary under this Act to any business enterprise unless the
owners, partners, or officers of such business enterprise—
‘‘(1) certify to the Secretary the names of any at-
torneys, agents, and other persons engaged by or on
behalf of such business enterprise for the purpose of
expediting applications made to the Secretary for as-
sistance 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 business
enterprise, for a period of 2 years after such assist-
ance is rendered by the Secretary to such business en-
terprise, to refrain from employing, tendering any of-
fice or employment to, or retaining for professional
services, any person who, on the date such assistance
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 that the Secretary
determines involves discretion with respect 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 Sec-
retary shall maintain as a permanent part of the records
of the Department of Commerce a list of applications ap-
proved for financial assistance under this Act that will be
kept available for public Inspection during the regular busi-
ness hours of the Department of Commerce.
‘‘(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.
‘‘(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, including
records that fully disclose the amount and the disposition
by such recipient of the proceeds of such assistance, the total
cost of the project or undertaking in connection with which
such assistance is given or used, and the amount and nature
of that portion of the cost of the project or undertaking sup-
plied by other sources, and such other records as will facili-
tate an 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 representa-
tives, shall have access for the purpose of audit and exam-
ination to any books, documents, papers, and records of the
recipient that are pertinent to assistance received under this
Act.
‘‘SEC. 609. PROHIBITION AGAINST A STATUTORY CON-
STRUCTION THAT MIGHT CAUSE DIMINUTION
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
may be construed as authorizing or permitting any reduc-
tion or diminution in the proportional amount of Federal
assistance that any State or other entity eligible under this
Act would otherwise be entitled to receive under the provi-
sions of any other Act.
‘‘SEC. 610. ACCEPTANCE OF APPLICANTS’ CERTIFICATIONS.
‘‘The Secretary may accept, when deemed appropriate,
the applicants’ certifications to meet the requirements of
this Act.
‘‘TITLE VII—FUNDING
‘‘SEC. 701. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this Act $368,000,000 for each of fiscal years 1999 through
2003. Such sums shall remain available until expended.
‘‘SEC. 702. ADMINISTRATIVE EXPENSES.
‘‘In addition to the appropriations authorized by sec-
tion 701, there are authorized to be appropriated for ad-
ministrative expenses of the Secretary in carrying out this
Act such sums as may be necessary for each of fiscal years
1999 through 2003. Such sums shall remain available until
expended.
‘‘SEC. 703. DEFENSE CONVERSION ACTIVITIES.
‘‘In addition to the appropriations authorized by sec-
tion 701 for defense conversion activities, there are author-
ized to be appropriated to carry out this Act for each of
fiscal years 2000 through 2003 such sums as may be nec-
essary to provide assistance for such activities. Such sums
shall remain available until expended.’’.
SEC. 102. SAVINGS PROVISIONS.
(a) EXISTING RIGHTS, DUTIES, AND OBLIGATIONS
NOT AFFECTED.—This Act shall not be construed as affect-
ing the validity of any right, duty, or obligation of the
United States or any other person arising out of or pursu-
ant to any contract, loan, or other instrument or agreement
that was in effect on the day before the date of enactment
of this Act.
(b) CONTINUATION OF SUITS.—No action or other pro-
ceeding commenced by or against any officer or employee
of the Economic Development Administration shall abate
by reason of the enactment of this Act.
(c) LIQUIDATING ACCOUNT.—The Economic Develop-
ment Revolving Fund established under section 203 of the
Public Works and Economic Development Act of 1965 shall
continue to be available to the Secretary as a liquidating
account as defined under section 502 of the Federal Credit
Reform Act of 1990 for payment of obligations and expenses
in connection with financial assistance extended under this
Act, the Public Works and Economic Development Act of
1965, the Area Redevelopment Act, and the Trade Act of
1974.
(d) ADMINISTRATION.—The Secretary shall take such
actions as authorized before the date of enactment of this
Act as necessary or appropriate to administer and liquidate
existing grants, contracts, agreements, loans, obligations,
debentures, or guarantees heretofore made by the Secretary
or the Secretary’s delegate pursuant to provisions in effect
immediately prior to the date of enactment of this Act.
Subtitle B—Innovative Financing
Pilot Programs
SEC. 121. PUBLIC WORKS LOAN GUARANTEES.
(a) IN GENERAL.—Upon the joint application of a
private lending institution and a State, a political subdivi-
sion of a State, an Indian tribe, or a private or public non-
profit organization or association, the Secretary of Com-
merce is authorized to guarantee a loan made by the private
lending institution to the State, political subdivision, In-
dian tribe, or organization or association for any purpose
for which the Secretary can make a direct grant under sec-
tion 201 of the Public Works and Economic Development
Act of 1965.
(b) TERMS AND CONDITIONS.—A loan guarantee made
for a project under this section shall be subject to such terms
and conditions as the Secretary may prescribe. Such terms
and conditions, at a minimum, shall include the following:
(1) The guarantee may be made only if the Sec-
retary finds that the project meets the requirements of
the Public Works and Economic Development Act of
1965.
(2) The guarantee may not at any time exceed
90 percent of the amount of the outstanding balance
of the loan.
(3) The guarantee may be made only if financial
assistance for the project is not otherwise available
from private lenders or from other Federal sources on
terms that the Secretary finds are likely to permit ac-
complishment of the project.
(4) The guarantee may be made only if the Sec-
retary finds that there is reasonable expectation of re-
payment of the loan.
(5) The guarantee may not exceed 30 years.
(c) FUNDING.—Not more than 10 percent of the
amounts appropriated to carry out section 201 of the Public
Works and Economic Development Act of 1965 for each of
fiscal years 1999 through 2003 may be used to carry out
this section.
SEC. 122. LOAN ASSISTANCE DEMONSTRATION PROGRAM.
(a) IN GENERAL.—The Secretary of Commerce shall
carry out a program to demonstrate the effectiveness of en-
couraging economic development by making grants for re-
ducing interest rates on loans for economic development ac-
tivities. The Secretary shall carry out this section acting
through the Under Secretary of Commerce for Economic De-
velopment.
(b) REQUIREMENTS.—Each recipient of a grant under
the demonstration program shall—
(1) use the grant amount to assist businesses and
nonprofit organizations by reducing interest rates on
loans for economic development activities by an
amount not to exceed 60 percent of the market rate
of interest on any such loan; and
(2) inform businesses and nonprofit organiza-
tions of the availability of such loan interest rate re-
duction assistance.
(c) TERMS AND CONDITIONS.—In administering the
demonstration program, the Secretary shall—
(1) ensure that any project receiving assistance
under this section meets the requirements of the Pub-
lic Works and Economic Development Act of 1965 (42
U.S.C. 3121 et seq.);
(2) establish criteria and procedures for selecting
recipients under the program with national geo-
graphic diversity, ensuring representation of rural
and urban areas;
(3) establish requirements for implementation of
the program by recipients of assistance under the pro-
gram; and
(4) provide for the collection and reporting of in-
formation sufficient to provide the basis for a deter-
mination of the costs and effectiveness of the program.
(d) ECONOMIC DEVELOPMENT ACTIVITIES DEFINED.—
In this section, the term ‘‘economic development activities’’
means activities that—
(1) are part of a project supported by grant as-
sistance under this Act; or
(2) are supported by a loan from a revolving
loan fund established under this Act (including a
fund established with assistance provided before the
date of enactment of the Economic Development Part-
nership Act of 1998).
(e) FUNDING.—Not more than 10 percent of the
amounts appropriated to carry out section 209 of the Public
Works and Economic Development Act of 1965 for each of
fiscal years 1999 through 2003 may be used to carry out
this section.
SEC. 123. LAND CONVEYANCE.
(a) IN GENERAL.—The Secretary of Commerce shall
convey, at fair market value (as determined by the Sec-
retary), to the city of Two Harbors, Minnesota, or its des-
ignee, the parcel of land described in subsection (b).
(b) LAND DESCRIPTION.—The parcel of land referred
to in subsection (a) consists of approximately 21.55 acres
known as the J and J Casting site, in Lake County, Min-
nesota, together with a road easement, all as described in
the deed of the United States Marshal, dated March 22,
1988, executed pursuant to the order of sale of the United
States District Court for the District of Minnesota, dated
May 15, 1987, in case Civil No. 5–86–300.
(c) DELEGATION OF AUTHORITY.—The Secretary shall
carry out this section acting through the Under Secretary
of Commerce for Economic Development.
SEC. 124. REPORTS.
(a) ANNUAL REPORT.—Not later than September 30
of each of fiscal years 1999 through 2003, the Secretary of
Commerce shall transmit to Congress a report containing
an evaluation of the effectiveness of loan guarantees and
grants made under this subtitle.
(b) LONG-TERM PROGRAM.—
(1) STUDY.—The Secretary shall conduct a study
regarding the effects and costs of carrying out a long-
term and expanded program for guaranteeing loans
and making grants under this subtitle, including a
determination of national scope.
(2) REPORTS.—Not later than September 30,
2001, the Secretary shall transmit to Congress a re-
port containing the results of the study conducted
under paragraph (1), together with any recommenda-
tions for carrying out an effective demonstration pro-
gram of national scope under this subtitle.
SEC. 125. COMPLIANCE WITH BUY AMERICAN ACT.
None of the funds made available to carry out this Act,
or any amendment made by this Act, may be expended in
violation of the provisions of sections 2 through 4 of the
Act of March 3, 1933 (41 U.S.C. 10a–10c; popularly know
as the ‘‘Buy American Act’’) that are applicable to those
funds. The Secretary of Commerce shall provide each recipi-
ent of such funds notice of the requirements specified in this
section and information on methods to comply with such
requirements.
TITLE II—APPALACHIAN
REGIONAL DEVELOPMENT
SEC. 201. AMENDMENT OF APPALACHIAN REGIONAL DEVEL-
OPMENT ACT OF 1965.
Except as otherwise expressly provided, whenever in
this title an amendment or repeal is expressed in terms of
an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or
other provision of the Appalachian Regional Development
Act of 1965 (40 U.S.C. App. 1 et seq.).
SEC. 202. FINDINGS AND PURPOSES.
Section 2 (40 U.S.C. App. 2) is amended by adding
at the end the following:
‘‘(c) 1998 FINDINGS AND PURPOSES.—The Congress
further finds and declares that, while substantial progress
has been made in fulfilling many of the objectives of this
Act, rapidly changing national and global economies over
the past decade have created new problems and challenges
for rural areas throughout the Nation and especially for the
Appalachian region. It is, therefore, also the purpose of this
Act to assist the region in providing the infrastructure nec-
essary for economic and human resource development, in
developing its industry, in building entrepreneurial com-
munities, in generating a diversified regional economy, and
in making its industrial and commercial resources more
competitive in national and world markets. It is further
the purpose of this Act to provide a framework for coordi-
nating Federal, State, and local initiatives to respond to
the economic competitive challenge through improving the
skills of the region’s workforce, adapting and applying new
technologies for the region’s businesses, and improving the
access of the region’s businesses to the technical and finan-
cial resources necessary to their development. Finally, it is
the purpose of this Act to address the needs of severely and
persistently distressed areas of the region and focus special
attention on the areas of greatest need so as to provide a
fairer opportunity for the people of the region to share the
quality of life generally enjoyed by citizens across this
Nation.’’.
SEC. 203. MEETINGS.
(a) 
ANNUAL
MEETING
REQUIREMENT.—Section
101(a) (40 U.S.C. App. 101(a)) is amended by adding at
the end the following: ‘‘The Commission shall conduct at
least one meeting each year with the Federal Cochairman
and at least a majority of the State members present.’’.
(b) ADDITIONAL MEETINGS BY ELECTRONIC MEANS.—
Section 101 (40 U.S.C. App. 101) is amended—
(1) in subsection (a), as amended by subsection
(a) of this section, by adding at the end the following:
‘‘The Commission may conduct such additional meet-
ings by electronic means as the Commission considers
advisable, including meetings to decide matters re-
quiring an affirmative vote.’’; and
(2) in subsection (c) by striking ‘‘to be present’’
at the end of the fourth sentence.
(c) DECISIONS
REQUIRING
A
QUORUM.—Section
101(b) (40 U.S.C. App. 101(b)) is amended by striking the
third sentence and inserting the following: ‘‘No decision in-
volving Commission policy, approval of State, regional, or
subregional development plans or implementing investment
programs, any modification or revision of the Appalachian
Regional Commission Code, any allocation of funds among
the State, or any designation of a distressed county or an
economically strong county may be made without a quorum
of State members.’’.
SEC. 204. ADMINISTRATIVE EXPENSES.
Section 105 (40 U.S.C. App. 105) is amended—
(1) by striking ‘‘(a) For the period’’ and all that
follows through ‘‘such expenses’’ the first place it ap-
pears and inserting ‘‘Administrative expenses of the
Commission’’; and
(2) by striking subsection (b).
SEC. 205. COMPENSATION OF EMPLOYEES.
Section 106(2) (40 U.S.C. App. 106(2)) is amended
by striking ‘‘the salary of the alternate to the Federal Co-
Chairman on the Commission as provided in section 101’’
and inserting ‘‘the maximum rate for the Senior Executive
Service under section 5382 of title 5, United States Code,
including any applicable locality-based comparability pay-
ment that may be authorized under section 5304(h)(2)(c)
of such title 5’’.
SEC. 206. ADMINISTRATIVE POWERS OF COMMISSION.
Section 106(7) (40 U.S.C. App. 106(7)) is amended
by striking ‘‘1982’’ and inserting ‘‘2003’’.
SEC. 207. COST SHARING OF DEMONSTRATION HEALTH
PROJECTS.
(a) OPERATION COSTS.—Section 202(c) (40 U.S.C.
App. 202(c)) is amended in the first sentence by striking
‘‘100 per centum of the costs thereof’’ and all that follows
through the period at the end of the second sentence and
inserting ‘‘50 percent of the costs thereof (or 80 percent of
such costs in the case of a project to be carried out in a
county for which a distressed county designation is in effect
under section 226).’’.
(b) COST SHARING.—Section 202 (40 U.S.C. App.
202) is amended by adding at the end the following:
‘‘(f) MAXIMUM COMMISSION CONTRIBUTION AFTER
SEPTEMBER 30, 1998.—After September 30, 1998, not more
than 50 percent of any project cost eligible for financial
assistance under this section may be provided from funds
appropriated to carry out this Act; except that such maxi-
mum Commission contribution may be increased to 80 per-
cent, or to the percentage of the maximum Federal contribu-
tion authorized by this section, whichever is less, for a
project to be carried out in a county for which a distressed
county designation is in effect under section 226.’’.
SEC. 208. REPEAL OF LAND STABILIZATION, CONSERVA-
TION, AND EROSION CONTROL PROGRAM.
Section 203 (40 U.S.C. App. 203) is repealed.
SEC. 209. REPEAL OF TIMBER DEVELOPMENT PROGRAM.
Section 204 (40 U.S.C. App. 204) is repealed.
SEC. 210. REPEAL OF MINING AREA RESTORATION PRO-
GRAM.
Section 205 (40 U.S.C. App. 205) is repealed.
SEC. 211. REPEAL OF WATER RESOURCE SURVEY.
Section 206 (40 U.S.C. App. 206) is repealed.
SEC. 212. COST SHARING OF HOUSING PROJECTS.
(a) LOANS.—Section 207(b) (40 U.S.C. App. 207(b))
is amended by striking ‘‘80 per centum’’ and inserting ‘‘50
percent (or 80 percent in the case of a project to be carried
out in a county for which a distressed county designation
is in effect under section 226)’’.
(b) GRANTS.—Section 207(c)(1) (40 U.S.C. 207(c)(1))
is amended by striking ‘‘80 per centum’’ and inserting ‘‘50
percent (or 80 percent in the case of a project to be carried
out in a county for which a distressed county designation
is in effect under section 226)’’.
SEC. 213. REPEAL OF AIRPORT SAFETY IMPROVEMENTS
PROGRAM.
Section 208 (40 U.S.C. App. 208) is repealed.
SEC. 214. COST SHARING OF VOCATIONAL EDUCATION AND
EDUCATION DEMONSTRATION PROJECTS.
(a) OPERATION COSTS.—Section 211(b)(3) (40 U.S.C.
App. 211(b)(3)) is amended in the first sentence by striking
‘‘100 per centum of the costs thereof’’ and all that follows
through the period at the end of the second sentence and
inserting ‘‘50 percent of the costs thereof (or 80 percent of
such costs in the case of a project to be carried out in a
county for which a distressed county designation is in effect
under section 226).’’
(b) COST SHARING.—Section 211 (40 U.S.C. App.
211) is amended by adding at the end the following:
‘‘(c) MAXIMUM COMMISSION CONTRIBUTION AFTER
SEPTEMBER 30, 1998.—After September 30, 1998, not more
than 50 percent of any project cost eligible for financial
assistance under this section may be provided from funds
appropriated to carry out this Act; except that such maxi-
mum Commission contribution may be increased to 80 per-
cent, or to the percentage of the maximum Federal contribu-
tion authorized by this section, whichever is less, for a
project to be carried out in a county for which a distressed
county designation is in effect under section 226.’’.
SEC. 215. SEWAGE TREATMENT WORKS PROGRAM.
Section 212 (40 U.S.C. App. 212) is repealed.
SEC. 216. REPEAL OF AMENDMENTS TO HOUSING ACT OF
1954.
Section 213 (40 U.S.C. App. 213) is repealed.
SEC. 217. SUPPLEMENTS TO FEDERAL GRANT-IN-AID PRO-
GRAMS.
(a) AVAILABILITY OF AMOUNTS.—The first sentence of
section 214(a) (40 U.S.C. App. 214(a)) is amended by strik-
ing ‘‘the President is authorized to provide funds to the Fed-
eral Cochairman to be used’’ and inserting ‘‘the Federal Co-
chairman may use amounts made available to carry out
this section’’.
(b) COST SHARING.—Section 214(b) (40 U.S.C. App.
214(b)) is amended—
(1) by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’; and
(2) by adding at the end the following:
‘‘(2) After September 30, 1998, not more than 50 per-
cent of any project cost eligible for financial assistance
under this section may be provided from funds appro-
priated to carry out this Act; except that such maximum
Commission contribution may be increased to 80 percent
for a project to be carried out in a county for which a dis-
tressed county designation is in effect under section 226.’’.
(c) FEDERAL GRANT-IN-AID PROGRAMS DEFINED.—
The first sentence of section 214(c) (40 U.S.C. App. 214(c))
is amended by striking ‘‘on or before December 31, 1980,’’.
(d) LIMITATION ON COVERED ROAD PROJECTS.—The
second sentence of section 214(c) is amended by inserting
‘‘authorized by title 23, United States Code,’’ after ‘‘road
construction’’.
SEC. 218. PROGRAM DEVELOPMENT CRITERIA.
(a) CONSIDERATIONS.—Section 224(a) (40 U.S.C.
App. 224(a)) is amended by inserting before the semicolon
at the end of paragraph (1) the following: ‘‘or in a severely
and persistently distressed county or area’’.
(b) OUTCOME MEASUREMENTS.—Section 224(a) is
further amended—
(1) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and
(2) by adding at the end the following:
‘‘(6) the extent to which the project design pro-
vides for detailed outcome measurements by which
grant expenditures may be evaluated.’’.
(c) REMOVAL OF LIMITATIONS.—Section 224(b) (40
U.S.C. App. 224(b)) is amended to read as follows:
‘‘(b) LIMITATION.—Financial assistance made avail-
able under this Act may not be used to assist establishments
relocating from one area to another.’’.
SEC. 219. DISTRESSED AND ECONOMICALLY STRONG COUN-
TIES.
Part C of title II (40 U.S.C. App. 221–225) is amend-
ed by adding at the end the following:
‘‘SEC. 226. DISTRESSED AND ECONOMICALLY STRONG
COUNTIES.
‘‘(a) DESIGNATIONS.—Not later than 90 days after the
date of enactment of this section, and annually thereafter,
the Commission, in accordance with such criteria as the
Commission may establish, shall—
‘‘(1) designate as ‘distressed counties’ those coun-
ties in the region that are the most severely and per-
sistently distressed; and
‘‘(2) designate two categories of economically
strong counties, as follows:
‘‘(A) ‘competitive counties’ which shall be
those counties in the region which are approach-
ing economic parity with the rest of the Nation;
and
‘‘(B) ‘attainment counties’ which shall be
those counties in the region which have attained
or exceeded economic parity with the rest of the
Nation.
‘‘(b) DISTRESSED
COUNTIES.—In program and
project development and implementation and in the alloca-
tion of appropriations made available to carry out this Act,
the Commission shall give special consideration to the needs
of those counties for which a distressed designation is in
effect under this section.
‘‘(c) FUNDING PROHIBITION FOR PROJECTS LOCATED
IN ECONOMICALLY STRONG COUNTIES.—
‘‘(1) COMPETITIVE COUNTIES.—Except as pro-
vided by paragraphs (3) and (4), assistance under
this Act shall be limited to no more than 30 percent
of project cost for a project located in a county for
which a competitive county designation is in effect
under this section.
‘‘(2) ATTAINMENT
COUNTIES.—Except as pro-
vided by paragraphs (3) and (4), no funds may be
provided under this Act for a project located in a
county for which an attainment county designation is
in effect under this section.
‘‘(3) EXCEPTIONS.—The prohibitions established
by paragraphs (1) and (2) shall not apply to—
‘‘(A) projects on the Appalachian develop-
ment highway system authorized by section 201;
‘‘(B) local development district administra-
tive projects authorized by section 302(a)(1); or
‘‘(C) a multicounty project that includes a
county or counties designated as ‘competitive’ or
‘attainment’ under this section provided all par-
ticipating counties share in the costs and benefits
of the project.
‘‘(4) WAIVER.—The prohibitions established by
paragraphs (1) and (2) may be waived by the Com-
mission for a particular project upon a showing of
one or more of the following:
‘‘(A) The existence of a significant pocket of
distress in the part of the county in which the
project is located.
‘‘(B) A significant decline in economic con-
ditions affecting the county which is not reflected
in current designation data.
‘‘(C) The existence of a significant potential
benefit from the project in areas of the region
outside the designated county.’’.
SEC. 220. GRANTS FOR ADMINISTRATIVE EXPENSES AND
COMMISSION PROJECTS.
(a) AVAILABILITY OF AMOUNTS.—Section 302(a) (40
U.S.C. App. 302(a)) is amended—
(1) by striking ‘‘The President’’ and inserting
‘‘The Commission’’; and
(2) in paragraphs (1), (2), and (3) by striking
‘‘to the Commission’’ each place it appears.
(b) COST SHARING.—Section 302(a) is further amend-
ed—
(1) in paragraph (1) by striking ‘‘75 per cen-
tum’’ and inserting ‘‘50 percent’’; and
(2) by adding at the end the following:
‘‘After September 30, 1998, not more than 50 percent of
the cost of any activity eligible for financial assistance
under this section may be provided from funds appro-
priated to carry out this Act (or 80 percent of such costs
in the case of a project to be carried out in a county for
which a distressed county designation is in effect under sec-
tion 226); except that discretionary grants by the Commis-
sion to implement significant regional initiatives, to take
advantage of special development opportunities, or to re-
spond to emergency economic distress in the region may be
made without regard to such percentage limitations. The
aggregate amount of discretionary grants referred to in the
preceding sentence in any fiscal year shall not exceed 10
percent of the amounts appropriated under section 401 for
such fiscal year.’’.
(c) REPEALS.—Section 302 (40 U.S.C. App. 302) is
amended—
(1) by striking paragraphs (3) and (4) of sub-
section (b);
(2) by striking subsection (d); and
(3) by striking subsection (e).
SEC. 221. AUTHORIZATION OF APPROPRIATIONS FOR GEN-
ERAL PROGRAM.
Section 401 (40 U.S.C. App. 401) is amended to read
as follows:
‘‘SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
‘‘In addition to amounts authorized by section 201 and
amounts made available for the Appalachian development
highway system program, there are authorized to be appro-
priated to the Commission to carry out this Act—
‘‘(1) $67,000,000 for fiscal year 1999;
‘‘(2) $72,000,000 for fiscal year 2000;
‘‘(3) $75,000,000 for fiscal year 2001;
‘‘(4) $75,000,000 for fiscal year 2002; and
‘‘(5) $80,000,000 for fiscal year 2003.
Such sums shall remain available until expended.’’.
SEC. 222. EXTENSION OF TERMINATION DATE.
Section 405 (40 U.S.C. App. 405) is amended by strik-
ing ‘‘1982’’ and inserting ‘‘2003’’.