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(2) RECIPIENTS OF FEDERAL ASSISTANCE.—Recipients of federal as-
sistance under this section, as required by the Commission, shall main-
tain accurate and complete records of transactions and activities fi-
nanced with federal amounts and report to the Commission on the
transactions and activities. The records are be available for audit by
the President, the Comptroller General, and the Commission.
§ 14322. Approval of development plans, strategy state-
ments, and projects
(a) ANNUAL REVIEW AND APPROVAL REQUIRED.—The Appalachian Re-
gional Commission annually shall review and approve, in accordance with
section 14302 of this title, state and regional development plans and strat-
egy statements, and any multistate subregional plans which may be devel-
oped.
(b) APPLICATION PROCESS.—An application for a grant or for other as-
sistance for a specific project under this subtitle shall be made through the
state member of the Commission representing the applicant. The state
member shall evaluate the application for approval. To be approved, the
state member must certify, and the Federal Cochairman must determine,
that the application—
(1) implements the Commission-approved state development plan;
(2) is included in the Commission-approved strategy statement;
(3) adequately ensures that the project will be properly administered,
operated, and maintained; and
(4) otherwise meets the requirements for assistance under this sub-
title.
(c) AFFIRMATIVE VOTE REQUIREMENT DEEMED MET.—After the appro-
priate state development plan and strategy statement are approved, certifi-
cation by a state member, when joined by an affirmative vote of the Federal
Cochairman, is deemed to satisfy the requirements for affirmative votes for
decisions under section 14302(a) of this title.
CHAPTER 145—SPECIAL APPALACHIAN PROGRAMS
SUBCHAPTER I—PROGRAMS
Sec.
14501.
Appalachian development highway system.
14502.
Demonstration health projects.
14503.
Assistance for proposed low- and middle-income housing projects.
14504.
Telecommunications and technology initiative.
14505.
Entrepreneurship initiative.
14506.
Regional skills partnerships.
14507.
Supplements to federal grant programs.
SUBCHAPTER II—ADMINISTRATIVE
14521.
Required level of expenditure.
14522.
Consent of States.
14523.
Program implementation.
14524.
Program development criteria.
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14525.
State development planning process.
14526.
Distressed and economically strong counties.
SUBCHAPTER I—PROGRAMS
§ 14501. Appalachian development highway system
(a) PURPOSE.—To provide a highway system which, in conjunction with
the Interstate System and other Federal-aid highways in the Appalachian
region, will open up an area with a developmental potential where commerce
and communication have been inhibited by lack of adequate access, the Sec-
retary of Transportation may assist in the construction of an Appalachian
development highway system and local access roads serving the Appalachian
region. Construction on the development highway system shall not be more
than 3,025 miles. There shall not be more than 1,400 miles of local access
roads that serve specific recreational, residential, educational, commercial,
industrial, or similar facilities or facilitate a school consolidation program.
(b) COMMISSION DESIGNATIONS.—
(1) WHAT IS TO BE DESIGNATED.—The Appalachian Regional Com-
mission shall transmit to the Secretary its designations of—
(A) the general corridor location and termini of the development
highways;
(B) local access roads to be constructed;
(C) priorities for the construction of segments of the develop-
ment highways; and
(D) other criteria for the program authorized by this section.
(2) STATE TRANSPORTATION DEPARTMENT RECOMMENDATION RE-
QUIRED.—Before a state member participates in or votes on designa-
tions, the member must obtain the recommendations of the state trans-
portation department of the State which the member represents.
(c) ADDITION TO FEDERAL-AID PRIMARY SYSTEM.—When completed,
each development highway not already on the Federal-aid primary system
shall be added to the system.
(d) USE OF SPECIFIC MATERIALS AND PRODUCTS.—
(1) INDIGENOUS MATERIALS AND PRODUCTS.—In the construction of
highways and roads authorized under this section, a State may give
special preference to the use of materials and products indigenous to
the Appalachian region.
(2) COAL DERIVATIVES.—For research and development in the use
of coal and coal products in highway construction and maintenance, the
Secretary may require each participating State, to the maximum extent
possible, to use coal derivatives in the construction of not more than
10 percent of the roads authorized under this subtitle.
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(e) FEDERAL SHARE.—Federal assistance to any construction project
under this section shall not be more than 80 percent of the cost of the
project.
(f) CONSTRUCTION WITHOUT FEDERAL AMOUNTS.—
(1) PAYMENT OF FEDERAL SHARE.—When a participating State
constructs a segment of a development highway without the aid of fed-
eral amounts and the construction is in accordance with all procedures
and requirements applicable to the construction of segments of Appa-
lachian development highways with those amounts, except for proce-
dures and requirements that limit a State to the construction of
projects for which federal amounts have previously been appropriated,
the Secretary, on application by the State and with the approval of the
Commission, may pay to the State the federal share, which shall not
be more than 80 percent of the cost of the construction of the segment,
from any amounts appropriated and allocated to the State to carry out
this section.
(2) NO COMMITMENT OR OBLIGATION.—This subsection does not
commit or obligate the Federal Government to provide amounts for
segments of development highways constructed under this subsection.
(g) APPLICATION OF TITLE 23.—
(1) SECTIONS 106(a) AND 118.—Sections 106(a) and 118 of title 23
apply to the development highway system and the local access roads.
(2) CONSTRUCTION
AND
MAINTENANCE.—States are required to
maintain each development highway and local access road as provided
for Federal-aid highways in title 23. All other provisions of title 23 that
are applicable to the construction and maintenance of Federal-aid pri-
mary and secondary highways and which the Secretary decides are not
inconsistent with this subtitle shall apply to the system and roads, re-
spectively.
§ 14502. Demonstration health projects
(a) PURPOSE.—To demonstrate the value of adequate health facilities and
services to the economic development of the Appalachian region, the Sec-
retary of Health and Human Services may make grants for the planning,
construction, equipment, and operation of multi-county demonstration
health, nutrition, and child care projects, including hospitals, regional health
diagnostic and treatment centers, and other facilities and services necessary
for the purposes of this section.
(b) PLANNING GRANTS.—
(1) AUTHORITY TO PROVIDE AMOUNTS AND MAKE GRANTS.—The
Secretary may provide amounts to the Appalachian Regional Commis-
sion for the support of its Health Advisory Committee and may make
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grants for expenses of planning necessary for the development and op-
eration of demonstration health projects for the region.
(2) LIMITATION ON AVAILABLE AMOUNTS.—The amount of a grant
under this section for planning shall not be more than 75 percent of
expenses.
(3) SOURCES OF ASSISTANCE.—The federal contribution may be pro-
vided entirely from amounts authorized under this section or in com-
bination with amounts provided under other federal or federal grant
programs.
(4) FEDERAL SHARE.—Notwithstanding any provision of law lim-
iting the federal share in those other programs, amounts appropriated
to carry out this section may be used to increase the federal share to
the maximum percentage cost of a grant authorized by this subsection.
(c) CONSTRUCTION AND EQUIPMENT GRANTS.—
(1) ADDITIONAL USES FOR CONSTRUCTION GRANTS.—Grants under
this section for construction may also be used for—
(A) the acquisition of privately owned facilities—
(i) not operated for profit; or
(ii) previously operated for profit if the Commission finds
that health services would not otherwise be provided in the
area served by the facility if the acquisition is not made; and
(B) initial equipment.
(2) STANDARDS FOR MAKING GRANTS.—Grants under this section
for construction shall be made in accordance with section 14523 of this
title and shall not be incompatible with the applicable provisions of title
VI of the Public Health Service Act (42 U.S.C. 291 et seq.), the Devel-
opmental Disabilities Assistance and Bill of Rights Act of 2000 (42
U.S.C. 15001 et seq.), and other laws authorizing grants for the con-
struction of health-related facilities, without regard to any provisions
in those laws relating to appropriation authorization ceilings or to allot-
ments among the States.
(3) LIMITATION ON AVAILABLE AMOUNTS.—A grant for the con-
struction or equipment of any component of a demonstration health
project shall not be more than 80 percent of the cost.
(4) SOURCES OF ASSISTANCE.—The federal contribution may be pro-
vided entirely from amounts authorized under this section or in com-
bination with amounts provided under other federal grant programs for
the construction or equipment of health-related facilities.
(5) FEDERAL SHARE.—Notwithstanding any provision of law lim-
iting the federal share in those other programs, amounts authorized
under this section may be used to increase federal grants for compo-
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nent facilities of a demonstration health project to a maximum of 80
percent of the cost of the facilities.
(d) OPERATION GRANTS.—
(1) STANDARDS FOR MAKING GRANTS.—A grant for the operation of
a demonstration health project shall not be made—
(A) unless the facility is publicly owned, or owned by a public
or private nonprofit organization, and is not operated for profit;
(B) after five years following the commencement of the initial
grant for operation of the project, except that child development
demonstrations assisted under this section during fiscal year 1979
may be approved under section 14322 of this title for continued
support beyond that period, on request of the State, if the Com-
mission finds that no federal, state, or local amounts are available
to continue the project; and
(C) unless the Secretary of Health and Human Services is satis-
fied that the operation of the project will be conducted under effi-
cient management practices designed to obviate operating deficits.
(2) LIMITATION ON AVAILABLE AMOUNTS.—Grants under this sec-
tion for the operation (including initial operating amounts and oper-
ating deficits, which include the cost of attracting, training, and retain-
ing qualified personnel) of a demonstration health project, whether or
not constructed with amounts authorized by this section, may be made
for up to 50 percent of the cost of that operation (or 80 percent of
the cost of that operation for a project to be carried out in a county
for which a distressed county designation is in effect under section
14526 of this title).
(3) SOURCES OF ASSISTANCE.—The federal contribution may be pro-
vided entirely from amounts appropriated to carry out this section or
in combination with amounts provided under other federal grant pro-
grams for the operation of health related facilities and the provision of
health and child development services, including parts A and B of title
IV and title XX of the Social Security Act (42 U.S.C. 601 et seq., 620
et seq., 1397 et seq.).
(4) FEDERAL SHARE.—Notwithstanding any provision of law lim-
iting the federal share in those other programs, amounts appropriated
to carry out this section may be used to increase federal grants for op-
erating components of a demonstration health project to the maximum
percentage cost of a grant authorized by this subsection.
(5) STATE DEEMED TO MEET REQUIREMENT OF PROVIDING ASSIST-
ANCE OR SERVICES ON STATEWIDE BASIS.—Notwithstanding any provi-
sion of the Social Security Act (42 U.S.C. 301 et seq.) requiring assist-
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ance or services on a statewide basis, a State providing assistance or
services under a federal grant program described in paragraph (2) in
any area of the region approved by the Commission is deemed to be
meeting that requirement.
(e) GRANT SOURCES
AND USE
OF GRANTS
IN COMPUTING ALLOT-
MENTS.—Grants under this section—
(1) shall be made only out of amounts specifically appropriated for
the purpose of carrying out this subtitle; and
(2) shall not be taken into account in computing allotments among
the States under any other law.
(f) MAXIMUM COMMISSION CONTRIBUTION.—
(1) IN GENERAL.—Subject to paragraph (2), the Commission may
contribute not more than 50 percent of any project cost eligible for fi-
nancial assistance under this section from amounts appropriated to
carry out this subtitle.
(2) DISTRESSED COUNTIES.—The maximum Commission contribu-
tion for a project to be carried out in a county for which a distressed
county designation is in effect under section 14526 of this title may
be increased to the lesser of—
(A) 80 percent; or
(B) the maximum federal contribution percentage authorized by
this section.
(g) EMPHASIS ON OCCUPATIONAL DISEASES FROM COAL MINING.—To
provide for the further development of the Appalachian region’s human re-
sources, grants under this section shall give special emphasis to programs
and research for the early detection, diagnosis, and treatment of occupa-
tional diseases arising from coal mining, such as black lung.
§ 14503. Assistance for proposed low- and middle-income
housing projects
(a) APPALACHIAN HOUSING FUND.—
(1) ESTABLISHMENT.—There is an Appalachian Housing Fund.
(2) SOURCE AND USE OF AMOUNTS IN FUND.—Amounts allocated to
the Secretary of Housing and Urban Development for the purposes of
this section shall be deposited in the Fund. The Secretary shall use the
Fund as a revolving fund to carry out those purposes. Amounts in the
Fund not needed for current operation may be invested in bonds or
other obligations the Federal Government guarantees as to principal
and interest. General expenses of administration of this section may be
charged to the Fund.
(b) PURPOSE.—To encourage and facilitate the construction or rehabilita-
tion of housing to meet the needs of low- and moderate-income families and
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individuals, the Secretary may make grants and loans from the Fund, under
terms and conditions the Secretary may prescribe. The grants and loans
may be made to nonprofit, limited dividend, or cooperative organizations
and public bodies and are for planning and obtaining federally insured mort-
gage financing or other financial assistance for housing construction or re-
habilitation projects for low- and moderate-income families and individuals,
in any area of the Appalachian region the Appalachian Regional Commis-
sion establishes, under—
(1) section 221 of the National Housing Act (12 U.S.C. 1715l);
(2) section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f);
(3) section 515 of the Housing Act of 1949 (42 U.S.C. 1485); or
(4) any other law of similar purpose administered by the Secretary
or any other department, agency, or instrumentality of the Federal
Government or a state government.
(c) PROVIDING AMOUNTS TO STATES FOR GRANTS AND LOANS.—The
Secretary or the Commission may provide amounts to the States for making
grants and loans to nonprofit, limited dividend, or cooperative organizations
and public bodies for the purposes for which the Secretary may provide
amounts under this section.
(d) LOANS.—
(1) LIMITATION ON AVAILABLE AMOUNTS.—A loan under subsection
(b) shall not be more than 50 percent (or 80 percent for a project to
be carried out in a county for which a distressed county designation
is in effect under section 14526 of this title) of the cost of planning
and obtaining financing for a project, including preliminary surveys
and analyses of market needs, preliminary site engineering and archi-
tectural fees, site options, application and mortgage commitment fees,
legal fees, and construction loan fees and discounts.
(2) INTEREST.—A loan shall be made without interest, except that
a loan made to an organization established for profit shall bear interest
at the prevailing market rate authorized for an insured or guaranteed
loan for that type of project.
(3) PAYMENT.—The Secretary shall require payment of a loan made
under this section, under terms and conditions the Secretary may re-
quire, no later than on completion of the project. Except for a loan to
an organization established for profit, the Secretary may cancel any
part of a loan made under this section on determining that a perma-
nent loan to finance the project cannot be obtained in an amount ade-
quate for repayment of a loan made under this section.
(e) GRANTS.—
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(1) IN GENERAL.—A grant under this section shall not be made to
an organization established for profit and, except as provided in para-
graph (2), shall not exceed 50 percent (or 80 percent for a project to
be carried out in a county for which a distressed county designation
is in effect under section 14526 of this title) of expenses, incident to
planning and obtaining financing for a project, which the Secretary
considers not to be recoverable from the proceeds of a permanent loan
made to finance the project.
(2) SITE DEVELOPMENT COSTS AND OFFSITE IMPROVEMENTS.—The
Secretary may make grants and commitments for grants, and may ad-
vance amounts under terms and conditions the Secretary may require,
to nonprofit, limited dividend, or cooperative organizations and public
bodies for reasonable site development costs and necessary offsite im-
provements, such as sewer and water line extensions, when the grant,
commitment, or advance is essential to the economic feasibility of a
housing construction or rehabilitation project for low- and moderate-in-
come families and individuals which otherwise meets the requirements
for assistance under this section. A grant under this paragraph for—
(A) the construction of housing shall not be more than 10 per-
cent of the cost of the project; and
(B) the rehabilitation of housing shall not be more than 10 per-
cent of the reasonable value of the rehabilitation housing, as deter-
mined by the Secretary.
(f) INFORMATION, ADVICE, AND TECHNICAL ASSISTANCE.—The Sec-
retary or the Commission may provide, or contract with public or private
organizations to provide, information, advice, and technical assistance with
respect to the construction, rehabilitation, and operation by nonprofit orga-
nizations of housing for low- or moderate- income families in areas of the
region the Commission establishes.
(g) APPLICATION OF CERTAIN PROVISIONS.—Programs and projects as-
sisted under this section are subject to the provisions cited in section 14701
of this title to the extent provided in the laws authorizing assistance for low-
and moderate-income housing.
§ 14504. Telecommunications and technology initiative
(a) PROJECTS TO BE ASSISTED.—The Appalachian Regional Commission
may provide technical assistance, make grants, enter into contracts, or oth-
erwise provide amounts to persons or entities in the region for projects—
(1) to increase affordable access to advanced telecommunications, en-
trepreneurship, and management technologies or applications in the re-
gion;
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(2) to provide education and training in the use of telecommuni-
cations and technology;
(3) to develop programs to increase the readiness of industry groups
and businesses in the region to engage in electronic commerce; or
(4) to support entrepreneurial opportunities for businesses in the in-
formation technology sector.
(b) LIMITATION ON AVAILABLE AMOUNTS.—Not more than 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 14526 of
this title) of the cost of any activity eligible for a grant under this section
may be provided from amounts appropriated to carry out this section.
(c) SOURCES OF ASSISTANCE.—Assistance under this section may be pro-
vided entirely from amounts made available to carry out this section, in
combination with amounts made available under other federal programs, or
from any other source.
(d) FEDERAL SHARE.—Notwithstanding any provision of law limiting the
federal share under any other federal program, amounts made available to
carry out this section may be used to increase that federal share, as the
Commission decides is appropriate.
§ 14505. Entrepreneurship initiative
(a) BUSINESS INCUBATOR SERVICE.—In this section, the term ‘‘business
incubator service’’ means a professional or technical service necessary for
the initiation and initial sustainment of the operations of a newly estab-
lished business, including a service such as—
(1) a legal service, including aid in preparing a corporate charter,
partnership agreement, or basic contract;
(2) a service in support of the protection of intellectual property
through a patent, a trademark, or any other means;
(3) a service in support of the acquisition and use of advanced tech-
nology, including the use of Internet services and Web-based services;
and
(4) consultation on strategic planning, marketing, or advertising.
(b) PROJECTS TO BE ASSISTED.—The Appalachian Regional Commission
may provide technical assistance, make grants, enter into contracts, or oth-
erwise provide amounts to persons or entities in the region for projects—
(1) to support the advancement of, and provide, entrepreneurial
training and education for youths, students, and businesspersons;
(2) to improve access to debt and equity capital by such means as
facilitating the establishment of development venture capital funds;
(3) to aid communities in identifying, developing, and implementing
development strategies for various sectors of the economy;