I
104TH CONGRESS
1ST SESSION
H. R. 300
To reauthorize economic development programs under the Public Works and
Economic Development Act of 1965 for fiscal years 1994 and 1995,
to reenact the Public Works and Economic Development Act of 1965
as the Economic Development and Financing Act of 1994, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 4, 1995
Mr. KANJORSKI introduced the following bill; which was referred to the Com-
mittee on Transportation and Infrastructure and, in addition, to the
Committees on Banking and Financial Services, the Judiciary, and
Science for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
A BILL
To reauthorize economic development programs under the
Public Works and Economic Development Act of 1965
for fiscal years 1994 and 1995, to reenact the Public
Works and Economic Development Act of 1965 as the
Economic Development and Financing Act of 1994, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Economic Development
Reauthorization Act of 1995’’.
SEC. 2. REAUTHORIZATION OF THE PUBLIC WORKS AND
ECONOMIC DEVELOPMENT ACT OF 1965.
The Public Works and Economic Development Act of
1965 (42 U.S.C. 3121, et seq.) is amended to read as
follows:
‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
‘‘(a) SHORT TITLE.—This Act may be cited as the
‘Economic Development and Financing Act of 1995’’.
‘‘(b) TABLE OF CONTENTS.—
‘‘Sec. 1. Short title; table of contents.
‘‘Sec. 2. Congressional findings and Statement of purpose.
‘‘TITLE I—GRANTS FOR PUBLIC WORKS AND DEVELOPMENT
FACILITIES
‘‘Sec. 101. Direct and supplementary grants.
‘‘Sec. 102. Limitation of funds expended in any 1 State.
‘‘Sec. 103. Authorization of appropriations.
‘‘Sec. 104. Financial assistance for sewer facilities.
‘‘Sec. 105. Construction cost increases.
‘‘Sec. 106. Use of funds in projects constructed under projected cost.
‘‘Sec. 107. Changed project circumstances.
‘‘TITLE II—LOANS, LOAN GUARANTEES, AND ECONOMIC
DEVELOPMENT REVOLVING FUND
‘‘Sec. 201. Public works and development facility loans.
‘‘Sec. 202. Business loans and loan guarantees.
‘‘Sec. 203. Economic development liquidating fund.
‘‘TITLE III—STRATEGIC PLANNING, RESEARCH, INFORMATION,
AND TECHNICAL ASSISTANCE
‘‘Subtitle A—Strategic Economic Development Planning, Research, and
Information
‘‘Sec. 301. Office of Strategic Economic Development Planning and Policy.
‘‘Sec. 302. Office of Economic Development Information.
‘‘Sec. 303. Uniform grant application form.
‘‘Subtitle B—Technical Assistance and Economic Development Planning
‘‘Sec. 311. Technical assistance.
‘‘Sec. 312. Economic development planning.
‘‘Sec. 313. Business outreach center demonstration project.
‘‘Sec. 314. Authorization of appropriations.
‘‘TITLE IV—ELIGIBILITY AND INVESTMENT STRATEGIES
‘‘Sec. 401. Area eligibility.
‘‘Sec. 402. Investment strategy.
‘‘Sec. 403. Definition.
‘‘Sec. 404. Funding.
‘‘TITLE V—ADMINISTRATION
‘‘Sec. 501. Appointment of Assistant Secretary of Commerce and Adminis-
trator for Economic Development; compensation.
‘‘Sec. 502. Consultation of Secretary with other persons and agencies.
‘‘Sec. 503. Administration, operation, and maintenance.
‘‘Sec. 504. Expedited processing of applications.
‘‘Sec. 505. Performance evaluations of grant recipients.
‘‘TITLE VI—MISCELLANEOUS
‘‘Sec. 601. Powers of Secretary.
‘‘Sec. 602. Saving provisions.
‘‘Sec. 603. Transfer of functions of area redevelopment administration.
‘‘Sec. 604. Separability.
‘‘Sec. 605. Definition of State.
‘‘Sec. 606. Annual report to Congress.
‘‘Sec. 607. Use of other facilities.
‘‘Sec. 608. Authorization of appropriations.
‘‘Sec. 609. Penalties.
‘‘Sec. 610. Employment of expediters and administrative employees.
‘‘Sec. 611. Labor standards; rate of wages; assurance of maintenance of
standards; enforcement.
‘‘Sec. 612. Maintenance of records of approved applications for financial
assistance; public inspection.
‘‘Sec. 613. Records and audit.
‘‘Sec. 614. Prohibition against a statutory construction which might cause
diminution in other Federal assistance.
‘‘Sec. 615. Acceptance of applicants’ certifications.
‘‘Sec. 616. Supervision of regional counsels.
‘‘TITLE VII—SPECIAL ECONOMIC DEVELOPMENT AND
ADJUSTMENT ASSISTANCE
‘‘Subtitle A—Grants and Adjustment Assistance
‘‘Sec. 701. Statement of purpose.
‘‘Sec. 702. Eligible recipient defined.
‘‘Sec. 703. Grants by Secretary.
‘‘Sec. 704. Annual reports by recipient and Secretary.
‘‘Sec. 705. Authorization of appropriations.
‘‘Subtitle B—Economic Development Financing
‘‘Sec. 711. Guaranteed loan program.
‘‘Sec. 712. Pilot equity finance program.
‘‘Sec. 713. Treatment of revolving loan funds.
‘‘Sec. 714. Sale of financial instruments in revolving loan funds.
‘‘Sec. 715. Economic development challenge grants demonstration project.
‘‘Subtitle C—Business Development Assistance
‘‘Sec. 721. Findings, purposes, and definitions.
‘‘Sec. 722. Consolidation of information on technologies.
‘‘Sec. 723. Business development and technology commercialization cor-
poration.
‘‘Sec. 724. Assistance to businesses in securing financing.
‘‘Sec. 725. Technical assistance for lenders and borrowers.
‘‘SEC. 2. CONGRESSIONAL FINDINGS AND STATEMENT OF
PURPOSE.
‘‘(a) FINDINGS.—The Congress finds that the main-
tenance of the national economy at a high level is vital
to the best interests of the United States, but that some
of our regions, counties, and communities are suffering
substantial 
and 
persistent 
unemployment 
and
underemployment; 
that 
such 
unemployment 
and
underemployment cause hardship to many individuals and
their families, and waste invaluable human resources; that
to overcome this problem the Federal Government, in co-
operation with the States, should help areas and regions
of 
substantial 
and 
persistent 
unemployment 
and
underemployment to take effective steps in planning and
financing their public works, business development, indus-
trial retention, and economic development; that Federal
financial assistance, including grants for public works and
development facilities to communities, industries, enter-
prises, and individuals in areas needing development
should enable such areas to help themselves achieve last-
ing improvement and enhance the domestic prosperity by
the establishment of stable and diversified local economies
and improved local conditions, provided that such assist-
ance is preceded by and consistent with sound, long-range
economic planning; and that under the provisions of this
Act new employment opportunities should be created by
developing and expanding new and existing public works
and other facilities and resources, financing business de-
velopment, and promoting industrial retention.
‘‘(b) DECLARATION.—The Congress declares that, in
furtherance 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;
‘‘(2) such assistance be available for planning
for economic development prior to the actual occur-
rences of economic distress in order to avoid such
condition; and
‘‘(3) that such assistance be used for long-term
economic rehabilitation in areas where long-term
economic deterioration has occurred or is taking
place.
‘‘TITLE I—GRANTS FOR PUBLIC
WORKS AND DEVELOPMENT
FACILITIES
‘‘SEC. 101. DIRECT AND SUPPLEMENTARY GRANTS.
‘‘(a) IN GENERAL.—Upon the application of any
State, or political subdivision thereof, Indian tribe, or pri-
vate or public nonprofit organization or association, the
Secretary of Commerce (hereafter in this Act referred to
as the ‘Secretary’) may—
‘‘(1) make direct grants for the acquisition or
development of land and improvements for public
works, public service, or development facility usage,
and the acquisition, design and engineering, con-
struction, rehabilitation, alteration, expansion, or im-
provement of such facilities, including related ma-
chinery and equipment if the Secretary finds that—
‘‘(A) the project for which financial assist-
ance is sought will directly or indirectly—
‘‘(i) tend to improve the opportunities,
in the area where such project is or will be
located, for the successful establishment or
expansion of industrial or commercial
plants or facilities,
‘‘(ii) otherwise assist in the creation
of additional long-term employment oppor-
tunities for such area, or
‘‘(iii) primarily benefit the long-term
unemployed and members of low-income
families or otherwise substantially further
the objectives of the Economic Opportunity
Act of 1964;
‘‘(B) the project for which a grant is re-
quested will fulfill a pressing need of the area,
or part thereof, in which it is, or will be,
located;
‘‘(C) the area for which a project is to be
undertaken has an approved investment strat-
egy and such project is consistent with such
strategy; and
‘‘(D) in the case of an area described in
section 401(a)(4), the project to be undertaken
will provide immediate useful work to unem-
ployed and underemployed persons in that area;
and
‘‘(2) make supplementary grants in order to en-
able the States and other entities to take maximum
advantage of designated Federal grant-in-aid pro-
grams (as hereinafter defined), direct grants-in-aid
authorized under this section, and Federal grant-in-
aid programs authorized by the Watershed Protec-
tion and Flood Prevention Act and the 11 water-
sheds authorized by the Flood Control Act of De-
cember 22, 1944, for which they are eligible but for
which, because of their economic situation, they can-
not supply the required matching share.
‘‘(b) MAXIMUM PROPORTION
OF DIRECT GRANT
FUNDS TO TOTAL PROJECT COST.—Subject to subsection
(c), the amount of any direct grant under this section for
any project shall not exceed 50 percent of the cost of such
project.
‘‘(c) PROPORTION
OF
SUPPLEMENTARY
GRANT
FUNDS TO TOTAL PROJECT COST; RULES AND REGULA-
TIONS; MAXIMUM GRANTS; REQUIRED NON-FEDERAL
SHARE.—The amount of any supplementary grant under
this section for any project shall not exceed the applicable
percentage established by regulations promulgated by the
Secretary, but in no event shall the non-Federal share of
the aggregate cost of any such project (including assump-
tions of debt) be less than 20 percent of such cost, except
that in the case of a grant to an Indian tribe, the Sec-
retary may reduce the non-Federal share below such per-
centage or may waive the non-Federal share. In the case
of any State or political subdivision thereof which the Sec-
retary determines has exhausted its effective taxing and
borrowing capacity, the Secretary shall reduce the non-
Federal share below such percentage or shall waive the
non-Federal share in the case of such a grant for a project
in an area described in section 401(a)(4). In the case of
any community development corporation which the Sec-
retary determines has exhausted its effective borrowing ca-
pacity, the Secretary may reduce the non-Federal share
below such percentage or waive the non-Federal share in
the case of such a grant for a project in an area described
in section 401(a)(4). Supplementary grants shall be made
by the Secretary, in accordance with such regulations as
the Secretary shall prescribe, by increasing the amounts
of direct grants authorized under this section or by the
payment of funds appropriated under this Act to the heads
of the departments, agencies, and instrumentalities of the
Federal Government responsible for the administration of
the applicable Federal programs. Notwithstanding any re-
quirement 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 shall
be used for the sole purpose of increasing the Federal con-
tribution to specific projects under such programs above
the fixed maximum portion of the cost of such project oth-
erwise authorized by the applicable law. The term ‘des-
ignated Federal grant-in-aid programs,’ as used in this
subsection, means such existing or future Federal grant-
in-aid programs assisting in the construction or equipping
of facilities as the Secretary may, in furtherance of the
purposes of this Act, designate as eligible for allocation
of funds under this section. In determining the amount
of any supplementary grant available to any project under
this section, the Secretary shall take into consideration the
relative needs of the area and the nature of the project
to be assisted.
‘‘(d) REGULATIONS; FACTORS TO BE CONSIDERED
IN PRESCRIBING REGULATIONS.—The Secretary shall
prescribe regulations and procedures to carry out this sec-
tion which will assure that adequate consideration is given
to the relative needs of eligible areas. In prescribing such
rules, regulations, and procedures the Secretary shall con-
sider among other relevant factors—
‘‘(1) the severity of the rates of unemployment
in the eligible areas and the duration of such unem-
ployment, and
‘‘(2) the income levels of families and the extent
of underemployment in eligible areas.
‘‘(e) REVIEW AND COMMENT UPON PROJECTS BY
LOCAL GOVERNMENTAL AUTHORITIES.—The Secretary
shall prescribe regulations which will assure that appro-
priate local governmental authorities have been given a
reasonable opportunity to review and comment upon pro-
posed projects under this section.
‘‘SEC. 102. LIMITATION OF FUNDS EXPENDED IN ANY 1
STATE.
‘‘Not more than 15 percent of the appropriations
made pursuant to this title may be expended in any 1
State unless the Secretary determines that expenditures
in excess of such limitation are necessary by reason of the
occurrence of a major natural disaster in such State.
‘‘SEC. 103. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this title $195,000,000 for fiscal year 1995 and
$130,924,000 for fiscal year 1996. Such sums shall re-
main available until expended.
‘‘SEC. 104. FINANCIAL ASSISTANCE FOR SEWER FACILITIES.
‘‘No financial assistance shall be extended under this
Act for sewer or other waste disposal facilities unless the
appropriate agency of the State in which the project is
located certifies that such facilities meet applicable Fed-
eral, State, interstate, or local water quality standards.
‘‘SEC. 105. CONSTRUCTION COST INCREASES.
‘‘In any case where a grant (including a supplemental
grant) has been made under this title for a project and
after such grant has been made but before completion of
the project, the cost of such project based upon the de-
signs and specifications which were the basis of the grant
has been increased because of increases in costs, the
amount of such grant may be increased by an amount
equal to the percentage increase, as determined by the
Secretary, in such costs.
‘‘SEC. 106. USE OF FUNDS IN PROJECTS CONSTRUCTED
UNDER PROJECTED COST.
‘‘In any case where a grant (including a supplemental
grant) has been made under this title for a project and
after such grant has been made but before completion of
the project, the cost of such project based upon the de-
signs and specifications which were 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. 107. CHANGED PROJECT CIRCUMSTANCES.
‘‘In any case where a grant (including a supplemental
grant) has been made under this title for a project and
after such grant has been made but before completion of
the project, the purpose or scope of such project based
upon the designs and specifications which were the basis
of the grant has changed, the Secretary may approve the
use of grant funds on such changed project if the Sec-
retary determines such changes are necessary to enhance
economic development in the area.
‘‘TITLE II—LOANS, LOAN GUAR-
ANTEES, AND ECONOMIC DE-
VELOPMENT 
REVOLVING
FUND
‘‘SEC. 201. PUBLIC WORKS AND DEVELOPMENT FACILITY
LOANS.
‘‘(a) IN GENERAL.—Subject to subsection (b) and
section 401, upon the application of any State, any politi-
cal subdivision of any State, any Indian tribe, or any pri-
vate or public nonprofit organization or association, the
Secretary may purchase evidences of indebtedness and
make loans to assist in financing—
‘‘(1) the purchase or development of land and
improvements for public works, public service, or de-
velopment facility usage, including public works,
public service, and development facility usage, to be
provided by agencies of the Federal Government
pursuant to legislation requiring that non-Federal
entities bear some part of the cost of providing such
works, service, or usage; and
‘‘(2) the acquisition, construction, rehabilita-
tion, alteration, expansion, or improvement of such
facilities, including related machinery and equip-
ment.
‘‘(b) CONDITIONS.—The Secretary may provide fi-
nancial assistance under subsection (a) only if the Sec-
retary 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 for
such area, or
‘‘(C) primarily benefit the long-term unem-
ployed and members of low-income families or
otherwise substantially further the objectives of
the Economic Opportunity Act of 1964;
‘‘(2) the funds requested for such project are
not otherwise available from private lenders or from
other Federal agencies on terms which in the opin-
ion of the Secretary will permit the accomplishment
of the project;
‘‘(3) the amount of the loan plus the amount of
other available funds for such project are adequate
to ensure the completion of the project;
‘‘(4) there is a reasonable expectation of repay-
ment; and
‘‘(5) such area has an approved investment
strategy under section 402 and the project for which
financial assistance is sought is consistent with such
strategy.
‘‘(c) LOAN TERMS; INTEREST RATES.—
‘‘(1) MAXIMUM TERM OF MATURITY.—Subject
to section 601, no loan, including renewals or exten-
sions of any loan, shall be made under this section
for a period exceeding 40 years, and no evidence of
indebtedness maturing more than 40 years from the
date of purchase shall be purchased under this
section.
‘‘(2) INTEREST.—Loans under this section shall
bear interest at a rate not less than a rate deter-
mined by the Secretary of the Treasury taking into
consideration the current average market yield on
outstanding marketable obligations of the United
States with remaining periods to maturity com-
parable to the average maturities of such loans, ad-
justed to the nearest 1⁄8 of 1 percent, minus not to
exceed 1⁄2 of 1 percent per annum.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There
are hereby authorized to be appropriated such sums as
may be necessary to carry out the provisions of this section
and section 202.
‘‘(e) REGULATIONS.—The Secretary shall prescribe
regulations which will assure that appropriate local gov-
ernmental authorities have been given a reasonable oppor-
tunity to review and comment upon proposed projects
under this section.
‘‘SEC. 202. BUSINESS LOANS AND LOAN GUARANTEES.
‘‘(a) IN GENERAL.—
‘‘(1) FINANCIAL
ASSISTANCE
AUTHORIZED.—
Subject to section 401, the Secretary may assist in
the financing the purchase or development of land
and facilities (including machinery and equipment)
for industrial or commercial usage, including the
construction of new buildings, the rehabilitation of
abandoned or unoccupied buildings, and the alter-
ation, conversion, or enlargement of existing build-
ings by—
‘‘(A) purchasing evidences of indebtedness;
‘‘(B) making loans (which for purposes of
this section shall include participation in loans);
and
‘‘(C) guaranteeing loans made to private
borrowers by private lending institutions, for
any of the purposes referred to in this para-
graph upon application of such institution and
upon such terms and conditions as the Sec-
retary may prescribe, except that no such guar-
antee shall at any time exceed 90 percent of the
amount of the outstanding unpaid balance of
such loan.
‘‘(2) INTEREST SUBSIDY.—
‘‘(A) AUTHORIZATION.—In addition to any
other financial assistance under this sub-
chapter, the Secretary may, in the case of any
loan guarantee under authority of paragraph
(1) of this section, pay to or on behalf of the
private borrower an amount sufficient to reduce
up to 4 percentage points the interest paid by
such borrower on such guaranteed loans.
‘‘(B) MAXIMUM AMOUNT OF BUY-DOWN.—
No payment under this paragraph shall result
in the interest rate being paid by a borrower on
such a guaranteed loan being less than the rate
of interest for such a loan if the loan were
made under section 201.
‘‘(C) FREQUENCY
OF
PAYMENT.—Pay-
ments made to or on behalf of such borrower
shall be made no less often than annually.
‘‘(3) WORKING CAPITAL LOANS AND GUARAN-
TEES.—The Secretary may assist in financing any
industrial or commercial activity by—
‘‘(A) making working capital loans;
‘‘(B) guaranteeing working capital loans
made to private borrowers by private lending
institutions upon application of such institution
and upon such terms and conditions as the Sec-
retary may prescribe, except that no such guar-
antee shall at any time exceed 90 percent of the
amount of the outstanding unpaid balance of
such loan;
‘‘(C) guaranteeing rental payments of
leases for buildings and equipment, except that
no such guarantee shall exceed 90 percent of
the remaining rental payments required by the
lease;
‘‘(D) paying those debts with respect to
which a lien against property has been legally
obtained (including the refinancing of any such
debt) in any case where the Secretary deter-
mines that the payment is essential in order
to—
‘‘(i) save employment in a designated
area;
‘‘(ii) avoid a significant rise in unem-
ployment; or
‘‘(iii) create new or increased employ-
ment.
‘‘(b) TERMS AND CONDITIONS.—Financial assistance
under this section shall be on such terms and conditions
as the Secretary determines, subject to the following re-
strictions and limitations:
‘‘(1) Such financial assistance shall not be ex-
tended to assist establishments relocating from 1
area to another or to assist subcontractors whose
purpose is to divest, or whose economic success is
dependent upon divesting, other contractors or sub-
contractors of contracts theretofore customarily per-
formed by them, except that this limitation shall not
be construed as prohibiting assistance for the expan-
sion of an existing business entity through the estab-
lishment of a new branch, affiliate, or subsidiary of
such entity if the Secretary finds that the establish-
ment of such branch, affiliate, or subsidiary will not
result in an increase in unemployment of the area of
original location or in any other area where such en-
tity conducts business operations, unless the Sec-
retary has reason to believe that such branch, affili-
ate, or subsidiary is being established with the inten-
tion of closing down the operations of the existing
business entity in the area of the business entity’s
original location or in any other area where the
entity conducts such operations.
‘‘(2) Such assistance shall be extended only to
applicants, both private and public (including Indian
tribes), which have been approved for such assist-
ance by an agency or instrumentality of the State or
political subdivision thereof in which the project to
be financed is located, and which agency or instru-
mentality is directly concerned with problems of eco-
nomic development in such State or subdivision.
‘‘(3) The project for which financial assistance
is sought shall be reasonably calculated to provide
more than a temporary alleviation of unemployment
or underemployment within the area in which the
project is or will be located.
‘‘(4) No loan or guarantee may be extended
under this section unless the financial assistance ap-
plied for is not otherwise available from private lend-
ers or from other Federal agencies on terms which
in the opinion of the Secretary will permit the ac-
complishment of the project.
‘‘(5) The Secretary may not make any loan
without a participation unless the Secretary deter-
mines that the loan cannot be made on a participa-
tion basis.
‘‘(6) No evidences of indebtedness may be pur-
chased and no loans may be made or guaranteed un-
less the Secretary is determined that there is reason-
able assurance of repayment.
‘‘(7) Subject to section 601(a)(5), no loan or
guarantee, including any renewal or extension of a
loan or guarantee, may be made under this section
for a term to maturity of more than 25 years and
no evidences of indebtedness which matures more
than 25 years after the date of purchase may be
purchased under this section, except that this para-
graph not apply to securities or obligations received
by the Secretary as a claimant in bankruptcy or eq-
uitable reorganization or as a creditor in other pro-
ceedings attendant upon insolvency of the obligor.
‘‘(8) Loans made and evidences of indebtedness
purchased under this section shall bear interest at a
rate not less than a rate determined by the Sec-
retary of the Treasury taking into consideration the
current average market yield on outstanding market-
able obligations of the United States with remaining
periods to maturity comparable to the average matu-
rities of such loans, adjusted to the nearest 1⁄8 of 1
percent, plus an additional charge, if any, toward
covering other costs of the program as the Secretary
may determine to be consistent with the purpose of
this section.
‘‘(9) Loan assistance (other than for a working
capital loan) shall not exceed 65 percent of the ag-
gregate cost to the applicant (excluding all other
Federal aid in connection with the undertaking) of
acquiring or developing land and facilities (including
machinery and equipment), and of constructing, al-
tering, converting, rehabilitating, or enlarging the
building or buildings of the particular project, and
shall, among others, be on the condition that—
‘‘(A) other funds are available in an
amount which, together with the assistance pro-
vided under this section, shall be sufficient to
pay such aggregate cost;
‘‘(B) not less than 15 percent of such ag-
gregate cost be supplied as equity capital or as
a loan repayable in no shorter period of time
and at no faster an amortization rate than the
Federal financial assistance extended under this
section is being repaid, and if such a loan is se-
cured, the security for the loan shall be subordi-
nate and inferior to the lien or liens securing
such Federal financial assistance;
‘‘(C) except with respect to projects involv-
ing financial participation by Indian tribes, not
less than 5 percent of such aggregate cost shall
be supplied by the State or any agency, instru-
mentality, or political subdivision of a State, or
by a community or area organization which is
nongovernmental in character, unless the Sec-
retary shall determine in accordance with objec-
tive standards prescribed by regulation that all
or part of such funds are not reasonably avail-
able to the project because of the economic dis-
tress of the area or for other good cause, in
which case the Secretary may waive the require-
ment of this provision to the extent of such un-
availability, and allow the funds required by
this subsection to be supplied by the applicant
or by such other non-Federal source as may
reasonably be available to the project; and
‘‘(D) to the extent the Secretary finds such
action necessary to encourage financial partici-
pation in a particular project by other lenders
and investors, and except as otherwise provided
in subparagraph (B), any Federal financial as-
sistance extended under this section may be re-
payable only after other loans made in connec-
tion with such project have been repaid in full,
and the security, if any, for such Federal finan-
cial assistance may be subordinate and inferior
to the lien or liens securing other loans made
in connection with the same project.
‘‘SEC. 203. ECONOMIC DEVELOPMENT LIQUIDATING FUND.
‘‘The Economic Development Revolving Fund estab-
lished before the date of the enactment of the Economic
Development and Financing Act of 1995 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 costs in con-
nection with financial assistance extended under this Act
before October 1, 1991.
‘‘TITLE 
III—STRATEGIC 
PLAN-
NING, RESEARCH, INFORMA-
TION, AND TECHNICAL AS-
SISTANCE
‘‘Subtitle 
A—Strategic 
Economic
Development 
Planning, 
Re-
search, and Information
‘‘SEC. 301. OFFICE OF STRATEGIC ECONOMIC DEVELOP-
MENT PLANNING AND POLICY.
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish an Office of Strategic Economic Development Plan-
ning and Policy (hereafter in this section referred to as
‘the Office’).
‘‘(b) DUTIES.—The duties of the administrator of the
Office are as follows:
‘‘(1) 
RESEARCH, 
EVALUATION
AND
DEM-
ONSTRATION.—To support research, evaluation and
demonstration projects to study and assess best
practices in economic development and to examine
trends and changes in economic conditions that ef-
fect regional development.
‘‘(2) POLICY DEVELOPMENT.—To develop rec-
ommendations on both short- and long-term policies
regarding economic development issues and pro-
grams, to help foster the diffusion of innovative, best
practices in economic development throughout the
Department of Commerce.
‘‘(3) COORDINATION.—To take a leading role in
developing and promoting means for greater coordi-
nation among States, regions and local communities
in the design and implementation of economic devel-
opment strategies, and shall work in conjunction
with Federal agencies on developing and implement-
ing means for reducing fragmentation and increase
coordination among Federal programs that provide
economic development assistance.
‘‘(4) INFORMATION DISSEMINATION.—To spon-
sor and support conferences, workshops, and other
forums to bring together the best scholars and prac-
titioners in the field to effectively disseminate knowl-
edge of the state-of-the-art in economic development
to Federal, State, and local development organiza-
tions. It shall also disseminate information on all as-
pects of economic development through electronic
and printed media, making such information widely
accessible.
‘‘(c) RESEARCH IN CAUSES OF LONG-TERM ECO-
NOMIC DETERIORATION.—
‘‘(1) IN GENERAL.—To assist in the long-range
accomplishment of the purposes of this Act, the Sec-
retary, in cooperation with other agencies having
similar functions, shall establish and conduct a con-
tinuing program of study, training, and research
to—
‘‘(A) assist in determining the causes of
unemployment, 
underemployment, 
under-
development, and chronic depression in the var-
ious areas and regions of the Nation,
‘‘(B) assist in the formulation and imple-
mentation of national, State, and local pro-
grams which will raise income levels and other-
wise produce solutions to the problems resulting
from these conditions, and
‘‘(C) assist in providing the personnel
needed to conduct such programs.
‘‘(2) MANNER OF PROVIDING STUDY, ASSIST-
ANCE.—The program of study, training, and re-
search 
may 
be 
conducted 
by 
the 
Secretary
through—
‘‘(A) members of the Secretary’s staff;
‘‘(B) the payment of funds authorized for
this section to other departments or agencies of
the Federal Government;
‘‘(C) the employment of private individ-
uals, partnerships, firms, corporations, or suit-
able institutions;
‘‘(D) contracts entered into for such pur-
poses;
‘‘(E) grants to such individuals, organiza-
tions, or institutions as the Secretary deter-
mines to be appropriate; or
‘‘(F) conferences and similar meetings or-
ganized for such purposes.
‘‘(3) AVAILABILITY
OF
RESULTS
OF
RE-
SEARCH.—The Secretary shall make available to in-
terested individuals and organizations the results of
such research.
‘‘(4) ANNUAL
REPORT
OF
SECRETARY.—The
Secretary shall include in the annual report under
section 606 a detailed statement concerning the
study and research conducted under this section to-
gether with the Secretary’s findings and conclusions
and such recommendations for legislative and other
action as the Secretary may consider appropriate.
‘‘(d) GEOGRAPHIC ANALYSIS TOOL.—
‘‘(1) IN GENERAL.—The Secretary shall, in co-
operation with other appropriate Federal agencies
develop a computerized geographic analysis tool that
all Federal departments and agencies and grant re-
cipients may use to evaluate the success of these
programs.
‘‘(2) REPORT.—Not later than 6 months after
the date of the enactment of the Economic Develop-
ment and Financing Act of 1995, the Secretary shall
transmit to Congress a report on use of the comput-
erized geographic analysis tool developed pursuant to
paragraph (1) by Federal departments and agencies.
‘‘(e) INDEPENDENT ADVISORY COMMITTEE.—The
Secretary shall establish an advisory committee made up
of representatives from major State, local, and nonprofit
economic development organizations as well as nationally
recognized experts on innovative approaches to economic
development to advise and make recommendations to the
Office.
‘‘(f) FEDERAL COORDINATING COUNCIL FOR ECO-
NOMIC DEVELOPMENT.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a Federal Coordinating Council for Economic
Development (hereafter in this section referred to as
the ‘Council’).
‘‘(2) COMPOSITION OF COUNCIL.—The Council
shall be composed of representatives from the Fed-
eral agencies involved in matters that affect regional
economic development.
‘‘(3) DUTIES.—The council shall assist in pro-
viding a unifying framework for economic and re-
gional development efforts and develop a govern-
mentwide strategic plan for economic development.
‘‘(g) GRANTS AND CONTRACTS FOR DEMONSTRATION
PROJECTS; PURPOSES.—The Secretary may make grants,
enter into contracts, or otherwise provide funds for any
demonstration project in an eligible area which the Sec-
retary determines is designed to foster regional productiv-
ity and growth, prevent outmigration, and otherwise carry
out the purposes of this Act.
‘‘SEC. 302. OFFICE OF ECONOMIC DEVELOPMENT INFORMA-
TION.
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish the Office of Economic Development Information
(hereafter in this section referred to as the ‘Office’) within
the Office of Strategic Economic Development Planning
and Policy.
‘‘(b) DUTIES.—The duties of the administrator of the
Office shall be to—
‘‘(1) serve as a central information clearing-
house on matters relating to economic development,
economic adjustment, industrial retention, disaster
nomic development, economic adjustment, disas-
ter recovery, industrial retention, and defense
conversion programs of the Federal Govern-
ment, including key contact people, descriptions
of the application process, eligibility require-
ments and criteria, selection and followup pro-
cedures, and other such relevant information.
‘‘(B) A compilation of major State and
local governmental economic development, eco-
nomic adjustment, disaster relief, industrial re-
tention, and defense conversion assistance pro-
grams, including lists of appropriate offices, of-
ficers, and contact personnel connected with, or
involved in, such programs.
‘‘(C) A compilation of relevant economic
data and trends, including information about
the national, regional and local impacts of trade
agreements, defense spending and downsizing,
technological change, and other sources of sub-
stantial economic dislocation.
‘‘(D) A compilation of case studies and
‘best practices’ in economic development, ad-
justment and conversion.
‘‘(E) A compilation of technology develop-
ment, deployment, diffusion, and commer-
cialization programs, assistance and resources
provided by Federal agencies, including listings
of patents, licenses, and technologies, and proc-
esses owned, or held in part, by the Federal
Government, and other such information as re-
ferred to in section 722 and any other relevant
information, such as major State and local pro-
grams, to assist technology development, de-
ployment and commercialization in economic de-
velopment, adjustment and conversion efforts.
‘‘(F) A compilation of published works
(books, reports, articles, videos, and tapes), and
selected texts of such works, related to all fac-
ets of economic development, economic adjust-
ment and defense conversion.
‘‘(G) A compilation of information on case
studies on early warning and intervention
efforts.
‘‘(3) POINTS OF PUBLIC ACCESS.—
‘‘(A) IN GENERAL.—The Office shall es-
tablish several mechanisms to assure easy, ac-
cess by the public and others to such data
bases, and to assure that the data bases be as
accessible, user-friendly, culturally neutral, and
affordable as possible.
‘‘(B) OUTREACH.—The Office shall con-
duct an extensive outreach to States and com-
munities, and to a wide range of constituencies,
including State and local government officials,
chambers of commerce, industrial organizations,
labor unions, and community-based organiza-
tions, to publicize the existence of the data
banks and other assistance and services pro-
vided under this section, and how to acquire
such assistance and services, and access such
data banks.
‘‘(C) MEANS OF ACCESS.—Access to the
Office’s data services shall include the following
means:
‘‘(i) A toll-free nationwide telephone
number to provide direct phone access to
the public.
‘‘(ii) On-line electronic access through
existing computer network services and
publicly available computer data base ac-
cess facilities, such as at repository librar-
ies and by direct call-in via modem.
‘‘(iii) Printed manuals and orientation
materials.
‘‘(iv) Periodic orientation workshops
available to the public.
‘‘(v) On-call information specialists to
address special problems requiring person-
to-person assistance.
‘‘(d) CONSULTATIVE MEETINGS.—The Office shall
conduct, on an annual basis, consultative meetings and
briefings with constituencies from several different types
of distressed areas and regions, drawn from local and
State governments, economic development districts, Indian
tribes, business, labor, community and public interest or-
ganizations and academic institutions. Such meetings and
briefings shall be held in these different areas to introduce
the Office’s programs and receive comments and rec-
ommendations concerning the Office’s services and how to
expand and improve them.
‘‘(e) INTERAGENCY COORDINATION.—The Secretary
shall enter into such agreements and understandings as
may be necessary with other Federal departments and
agencies to coordinate the accomplishment of the objec-
tives of this section.
‘‘SEC. 303. UNIFORM GRANT APPLICATION FORM.
‘‘(a) DEVELOPMENT.—The Secretary shall, in co-
operation with the heads of appropriate Federal depart-
ments and agencies, develop a general, simplified applica-
tion form for grant assistance under this Act which may
be used by all Federal departments and agencies which
provide grant assistance.
‘‘(b) REPORT.—Not later than 6 months after the
date of the enactment of this section, the Secretary shall
transmit to Congress a report on use of the form devel-
oped pursuant to subsection (a) by Federal departments
and agencies.
‘‘Subtitle B—Technical Assistance
and 
Economic 
Development
Planning
‘‘SEC. 311. TECHNICAL ASSISTANCE.
‘‘(a) IN GENERAL.—In carrying out the duties of the
Secretary under this Act, the Secretary may provide tech-
nical assistance which would be useful in alleviating or
preventing conditions of excessive unemployment or
underemployment to areas which the Secretary finds have
substantial need for such assistance, including assistance
for project planning and feasibility studies, management
and operational assistance, and studies evaluating the
needs of, and developing potentialities for, economic
growth of such areas.
‘‘(b) PROCEDURES AND TERMS.—
‘‘(1) MANNER OF PROVIDING ASSISTANCE.—As-
sistance 
may 
be 
provided 
by 
the 
Secretary
through—
‘‘(A) members of the Secretary’s staff;
‘‘(B) the payment of funds authorized for
this section to other departments or agencies of
the Federal Government;
‘‘(C) the employment of private individ-
uals, partnerships, firms, corporations, or suit-
able institutions;
‘‘(D) contracts entered into for such pur-
poses; or
‘‘(E) grants-in-aid to appropriate public or
private nonprofit State, area, district, or local
organizations.
‘‘(2) REPAYMENT
TERMS.—The Secretary, in
the Secretary’s discretion, may require the repay-
ment of assistance provided under this subsection
and prescribe the terms and conditions of such re-
payment.
‘‘(c) GRANTS
COVERING
ADMINISTRATIVE
EX-
PENSES.—
‘‘(1) IN GENERAL.—The Secretary may make
grants to defray not to exceed 75 percent of the ad-
ministrative expenses of organizations which he de-
termines to be qualified to receive grants-in-aid
under subsection (a), except that in the case of a
grant under this subsection to an Indian tribe the
Secretary is authorized to defray up to 100 percent
of such expenses.
‘‘(2) 
DETERMINATION
OF
NON-FEDERAL
SHARE.—In determining the amount of the non-Fed-
eral share of administrative costs or expenses, the
Secretary shall give due consideration to all con-
tributions both in cash and in kind, fairly evaluated,
including space, equipment, and services.
‘‘(3) 
USE
OF
GRANTS
WITH
PLANNING
GRANTS.—Where practicable, grants-in-aid author-
ized under this subsection shall be used in conjunc-
tion with other available planning grants, such as
urban planning grants authorized under the Housing
Act of 1954 and highway planning and research
grants authorized under the Federal Aid Highway
Act of 1962, to assure adequate and effective plan-
ning and economical use of funds.
‘‘(d) AVAILABILITY OF TECHNICAL INFORMATION;
FEDERAL PROCUREMENT.—The Secretary shall aid areas
by furnishing to interested individuals, communities, in-
dustries, and enterprises within such areas any assistance,
technical information, market research, or other forms of
assistance, information, or advice which would be useful
in alleviating or preventing conditions of excessive unem-
ployment or underemployment within such areas. The Sec-
retary may furnish the procurement divisions of the var-
ious departments, agencies, and other instrumentalities of
the Federal Government with a list containing the names
and addresses of business firms which are desirous of ob-
taining Government contracts for the furnishing of sup-
plies or services, and designating the supplies and services
such firms are engaged in providing.
‘‘SEC. 312. ECONOMIC DEVELOPMENT PLANNING.
‘‘(a) DIRECT GRANTS.—
‘‘(1) IN GENERAL.—The Secretary may, upon
application of any State, or city, or other political
subdivision of a State, or sub-State planning and de-
velopment organization (including an economic de-
velopment district or any area described in section
401(a)(4)), to make direct grants to such State, city,
other political subdivision, or organization pay up to
80 percent of the cost for economic development
planning.
‘‘(2) PLANNING
PROJECTS
SPECIFICALLY
IN-
CLUDED.—The planning for cities, other political
subdivisions, and sub-State planning and develop-
ment organizations (including an economic develop-
ment district or an area described in section
401(a)(4)) assisted under this section shall include
systematic efforts to reduce unemployment and in-
crease incomes.
‘‘(3) PLANNING PROCESS.—The planning shall
be a continuous process involving public officials and
private citizens in analyzing local economies, defin-
ing development goals, determining project opportu-
nities, and formulating and implementing a develop-
ment program.
‘‘(4) COOPERATIVE DEVELOPMENT OF INVEST-
MENT
STRATEGY.—Any State investment strategy
prepared with assistance under this section shall be
prepared cooperatively by the State, the political
subdivisions of the State, and the economic develop-
ment districts and areas described in section
401(a)(4) located in whole or in part within such
State.
‘‘(5) STATE CERTIFICATION.—Upon completion
of any such strategy, the State shall certify to the
Secretary that—
‘‘(A) in the preparation of such State in-
vestment strategy, the local and economic devel-
opment district strategies were considered and,
to the fullest extent possible, such State strat-
egy is consistent with such local and economic
development district strategies; and
‘‘(B) such State strategy is consistent with
such local and economic development district
strategies, or, if such State strategy is not con-
sistent with such local and economic develop-
ment district strategies, all of the inconsist-
encies of the State strategy with the local and
economic development district strategies, and
the justification for each of these inconsist-
encies.
‘‘(6) COMPREHENSIVE
PLANNING
PROCESS.—
The development of any State investment strategy
shall be a part of a comprehensive planning process
that shall consider the provisions of public works
to—
‘‘(A) stimulate and channel development,
economic opportunities, and choices for individ-
uals;
‘‘(B) support sound land use;
‘‘(C) enhance and protect the environment
including the conservation and preservation of
open spaces and environmental quality;
‘‘(D) provide public services; and
‘‘(E) balance physical and human re-
sources through the management and control of
physical development.
‘‘(7) COORDINATION
OF
ASSISTANCE
UNDER
311(c).—The assistance available under this section
may be provided in addition to assistance available
under section 311(c) but shall not supplant such
assistance.
‘‘(8) ANNUAL
REPORT
BY
RECIPIENT.—Each
State receiving assistance under this subsection shall
submit to the Secretary an annual report on the
planning process assisted under this subsection.
‘‘(b) COMPLIANCE WITH REVIEW PROCEDURE.—The
planning assistance authorized under this title shall be
used in conjunction with any other available Federal plan-
ning assistance to assure adequate and effective planning
and economical use of funds.
‘‘SEC. 313. BUSINESS OUTREACH CENTER DEMONSTRATION
PROJECT.
‘‘(a) IN GENERAL.—The Secretary shall conduct a
project in each of fiscal years 1995 through 1997 with
funds made available under this title for the purpose of
demonstrating methods of assisting isolated small busi-
nesses to access small business services provided by Fed-
eral, State, and local governments.
‘‘(b) ESTABLISHMENT OF CENTERS.—In conducting
the demonstration project under this section, the Sec-
retary shall establish 3 business outreach centers.
‘‘(c) PURPOSE OF CENTERS.—It shall be the purpose
of each business outreach center established under this
section—
‘‘(1) to provide a one-stop clearinghouse to as-
sist isolated small businesses in accessing small busi-
ness services provided by Federal, State, and local
governments; and
‘‘(2) to improve efficiency in the delivery of
such services.
‘‘(d) SERVICES TO BE PROVIDED.—Each business
outreach center established under this section shall pro-
vide the following services:
‘‘(1) Outreach to isolated small businesses.
‘‘(2) Assessment of the need of isolated small
businesses for assistance services.
‘‘(3) Referral of isolated small businesses to
small business assistance agencies.
‘‘(4) Preparation of materials required by iso-
lated small businesses for participation in small
business assistance programs.
‘‘(5) Case management to assure follow up and
quality control of business services.
‘‘(6) Coordination of networking among isolated
small businesses.
‘‘(7) Quality control of small business assist-
ance services.
‘‘(e) ISOLATED SMALL BUSINESS DEFINED.—For
the purposes of this section, the term ‘isolated small busi-
ness’ means a small business that is unable to effectively
access small business services provided by Federal, State,
and local governments due to linguistic, cultural, or geo-
graphic barriers.
‘‘SEC. 314. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this title $37,524,000 for fiscal year 1995 and
$50,000,000 for fiscal year 1996. Such sums shall remain
available until expended.
‘‘TITLE IV—ELIGIBILITY AND
INVESTMENT STRATEGIES
‘‘SEC. 401. AREA ELIGIBILITY.
‘‘(a) CERTIFICATION.—In order to be eligible for as-
sistance under title I or II, an applicant seeking assistance
to undertake a project shall certify, as part of an applica-
tion for such assistance, that, as of the date of submission
of such application, the area in which the project is located
meets 1 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 1 per-
cent 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 a community or neighborhood
(defined without regard to political or other subdivi-
sions or boundaries) which the Secretary determines
has 1 or more of the following conditions:
‘‘(A) A large concentration of low-income
persons.
‘‘(B) Rural areas having substantial out-
migration.
‘‘(C) Substantial unemployment.
‘‘(b) DOCUMENTATION.—A certification made under
subsection (a) shall be supported by Federal data, when
available, and in other cases by data available through the
State government. Such documentation shall be accepted
by the Secretary unless it is determined to be inaccurate.
The most recent statistics available shall be used.
‘‘(c) SPECIAL RULE.—No area which meets the cri-
teria of subsection (a) shall be subject to the requirements
of subparagraphs (A) and (C) of section 101(a)(1).
‘‘(d) PRIOR DESIGNATIONS.—Any designation of a
redevelopment area under this title made before the date
of the enactment of the Economic Development and Fi-
nancing Act of 1995 shall not be effective after such date
of enactment.
‘‘(e) DEFINITION.—For purposes of this Act, the
term ‘large concentration of low-income persons’ means an
area with a median family income of not more than 80
percent of the national median family income.
‘‘SEC. 402. INVESTMENT STRATEGY.
‘‘The Secretary may provide assistance under this
Act to an applicant for a project to be undertaken in an
area only if the applicant submits to the Secretary, as part
of an application for such assistance, and the Secretary
approves an investment strategy 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 such area
and public and private participants and sources of
funding for such investments;
‘‘(3) sets forth a strategy for addressing the
economic problems identified pursuant to paragraph
(1) and describes how the strategy will solve such
problems;
‘‘(4) provides a description of the project nec-
essary to implement the strategy, estimates of costs
and time tables; and
‘‘(5) provides a summary of public and private
resources expected to be available for such project.
‘‘SEC. 403. DEFINITION.
‘‘For purposes of this Act, the term ‘economic devel-
opment district’ means—
‘‘(1) an economic development district des-
ignated before the date of enactment of the Eco-
nomic Development and Financing Act of 1995
under section 403(a) of the Public Works and Eco-
nomic Development Act of 1965, as in effect on the
day before such date; and
‘‘(2) any district within a State which—
‘‘(A) is designated by the Secretary;
‘‘(B) is of sufficient size or population and
contains sufficient resources to foster economic
development on a scale involving more than 1
county; and
‘‘(C) does not contain within its boundaries
any part of another economic development dis-
trict designated under subparagraph (A).
‘‘SEC. 404. FUNDING.
‘‘Amounts authorized to be appropriated under other
sections of this Act shall be available for the purposes of
carrying out this title.
‘‘TITLE V—ADMINISTRATION
‘‘SEC. 501. APPOINTMENT OF ASSISTANT SECRETARY OF
COMMERCE AND ADMINISTRATOR FOR ECO-
NOMIC DEVELOPMENT; COMPENSATION.
‘‘(a) ADMINISTRATION OF ACT.—The Secretary shall
administer this Act and, with the assistance of an Assist-
ant Secretary of Commerce, in addition to those already
provided for, shall supervise and direct the Administrator
appointed pursuant to subsection (c).
‘‘(b) APPOINTMENT OF ASSISTANT SECRETARY.—
‘‘(1) IN
GENERAL.—The Assistant Secretary
whose position is established under subsection (a)
shall be appointed by the President, by and with the
advice and consent of the Senate.
‘‘(2) DUTIES.—The Assistant Secretary ap-
pointed under paragraph (1) shall perform such
functions as the Secretary may prescribe.
‘‘(c) ADMINISTRATOR
FOR ECONOMIC DEVELOP-
MENT.—There shall be appointed by the President, by and
with the advice and consent of the Senate, an Adminis-
trator for Economic Development who—
‘‘(1) shall be compensated at the rate provided
for level V of the Federal Executive Salary Schedule
under section 5316 of title 5, United States Code;
and
‘‘(2) shall perform such duties as are assigned
by the Secretary.
‘‘SEC. 502. CONSULTATION OF SECRETARY WITH OTHER
PERSONS AND AGENCIES.
‘‘(a) CONSULTATION ON PROBLEMS RELATING TO
UNEMPLOYMENT.—The Secretary may, from time to time,
call together and confer with any persons, including rep-
resentatives of labor, management, agriculture, and gov-
ernment, who can assist in meeting the problems of area
and regional unemployment or underemployment.
‘‘(b) CONSULTATION ON ADMINISTRATION OF ACT.—
The Secretary may make provision for such consultation
with interested departments and agencies as he may deem
appropriate in the performance of the functions vested in
him by this Act.
‘‘SEC. 503. 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. 504. EXPEDITED PROCESSING OF APPLICATIONS.
‘‘(a) GUIDELINES.—Not later than 60 days after the
date of the enactment of the Economic Development and
Financing Act of 1995, the Assistant Secretary for Eco-
nomic Development shall—
‘‘(1) publish guidelines to expedite the process-
ing of applications for assistance under this Act; and
‘‘(2) transmit to the Committee on Public
Works and Transportation and the Committee on
Banking, Finance and Urban Affairs of the House
of Representatives and the Committee on Environ-
ment and Public Works and the Committee on
Banking, Housing, and Urban Affairs of the Senate
a report containing such guidelines.
‘‘(b) CONTENTS.—Guidelines to be published under
subsection (a) shall, at a minimum, provide for the
following:
‘‘(1) Increased reliance on self-certification by
applicants to establish compliance with other Fed-
eral laws.
‘‘(2) Greater use of uniform application forms
and procedures.
‘‘(3) Delegation of decisionmaking authority to
regional offices.
‘‘(4) Reduction in the time and number of re-
views conducted by other offices of the Department
of Commerce.
‘‘SEC. 505. PERFORMANCE EVALUATIONS OF GRANT RE-
CIPIENTS.
‘‘(a) IN GENERAL.—At least once every 2 years, the
Secretary shall conduct an evaluation of each university
center and economic development district receiving grant
assistance under this Act to assess the recipient’s perform-
ance and contribution toward job creation.
‘‘(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 as-
sistance, conducting applied research, and dissemi-
nating 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 under subsection (a), the Secretary
shall provide for the participation of at least 1 other uni-
versity center on a cost-reimbursement basis.
‘‘TITLE VI—MISCELLANEOUS
‘‘SEC. 601. POWERS OF SECRETARY.
‘‘(a) IN GENERAL.—In performing the duties of the
Secretary under this Act, the Secretary may—
‘‘(1) adopt, alter, and use a seal, which shall be
judicially noticed;
‘‘(2) hold such hearings, sit and act at such
times and places, and take such testimony, as the
Secretary may deem advisable;
‘‘(3) 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;
‘‘(4) under regulations prescribed by the Sec-
retary, assign or sell at public or private sale, or oth-
erwise 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 grants
or loans made or evidences of indebtedness pur-
chased under this Act, and collect or compromise all
obligations assigned to or held by him in connection
with such grants, loans, or evidences of indebtedness
until such time as such obligations may be referred
to the Attorney General for suit or collection;
‘‘(5) further extend the maturity of or renew
any loan made or evidence of indebtedness pur-
chased under this Act, beyond the periods stated in
such loan or evidence of indebtedness or in this Act,
for additional periods not to exceed 10 years, if such
extension or renewal will aid in the orderly liquida-
tion of such loan or evidence of indebtedness;
‘‘(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
grants or loans made or evidences of indebtedness
purchased under this Act;
‘‘(7) pursue to final collection, by way of com-
promise or other administrative action, prior to ref-
erence to the Attorney General, all claims against 3d
parties assigned to the Secretary in connection with
grants or loans made or evidences of indebtedness
purchased under this Act;
‘‘(8) acquire, in any lawful manner, any prop-
erty (real, personal, or mixed, tangible or intangi-
ble), whenever necessary or appropriate to the con-
duct of activities under section 201, 202, 311, or
411;
‘‘(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
or realizing on loans made or evidences of indebted-
ness purchased under this Act;
‘‘(10) employ experts and consultants or organi-
zations as authorized by section 3109 of title 5,
compensate individuals so employed at rates not in
excess of $100 per diem, including travel time, and
allow them, while away from their homes or regular
places of business, travel expenses (including per
diem in lieu of subsistence) as authorized by section
5703 of title 5 for persons in the Government serv-
ice employed intermittently, while so employed, ex-
cept that contracts for such employment may be re-
newed annually;
‘‘(11) sue and be sued in any court of record
of a State having general jurisdiction or in any Unit-
ed States district court, and jurisdiction is conferred
upon such district court to determine such con-
troversies without regard to the amount in con-
troversy; but no attachment, injunction, garnish-
ment, or other similar process, mesne or final, shall
be issued against the Secretary or his property; and
‘‘(12) establish such regulations and procedures
as the Secretary may deem appropriate in carrying
out the provisions of this Act.
‘‘(b) 
DEFICIENCY
JUDGMENTS.—The 
authority
under paragraph (7) of subsection (a) 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-
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 grants or loans made or evidences
of indebtedness purchased under this Act if the premium
for the insurance or the amount of the insurance does not
exceed $1,000.
‘‘(d) 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
such purpose, without the execution of any express delega-
tion of power or power of attorney.
‘‘(e) RULE OF CONSTRUCTION.—No provision of this
section shall be construed to except the activities under
this Act from the application of sections 507(b), 517 and
2679 of title 28.
‘‘SEC. 602. SAVING PROVISIONS.
‘‘(a) EFFECT OF ADOPTION OF ACT ON OTHER AC-
TIONS.—No suit, action, or other proceeding lawfully com-
menced by or against the Administrator or any other offi-
cer of the Area Redevelopment Administration in the Ad-
ministrator’s or officer’s official capacity or in relation to
the discharge of the Administrator’s official duties under
the Area Redevelopment Act shall abate by reason of the
taking effect of the provisions of this Act, but the court
may, on motion or supplemental petition filed at any time
within 12 months after such taking effect, showing a ne-
cessity for the survival of such suit, action, or other pro-
ceeding to obtain a settlement of the questions involved,
allow the same to be maintained by or against the Sec-
retary or the Administrator or such other officer of the
Department of Commerce as may be appropriate.
‘‘(b) TREATMENT OF POWERS AND DUTIES.—Except
as may be otherwise expressly provided in this Act, all
powers and authorities conferred by this Act shall be cu-
mulative and additional to and not in derogation of any
powers and authorities otherwise existing.
‘‘(c) CONTINUED EFFECTIVENESS OF PRIOR REGU-
LATIONS, ETC.—All rules, regulations, orders, authoriza-
tions, delegations, or other actions duly issued, made, or
taken by or pursuant to applicable law, prior to August
26, 1965, by any agency, officer, or office pertaining to
any functions, powers, and duties under the Area Redevel-
opment Act shall continue in full force and effect after
August 26, 1965, until modified or rescinded by the Sec-
retary or such other officer of the Department of Com-
merce as, in accordance with applicable law, may be
appropriate.
‘‘SEC. 603. TRANSFER OF FUNCTIONS OF AREA REDEVELOP-
MENT ADMINISTRATION.
‘‘The functions, powers, duties, and authorities and
the assets, funds, contracts, loans, liabilities, commit-
ments, authorizations, allocations, and records which are
vested in or authorized to be transferred to the Secretary
of the Treasury under section 29(b) of the Area Redevel-
opment Act, and all functions, powers, duties, and authori-
ties under section 29(c) of such Act are hereby vested in
the Secretary.
‘‘SEC. 604. SEPARABILITY.
‘‘Notwithstanding any other evidence of the intent of
Congress, it is hereby declared to be the intent of Congress
that if any provision of this Act or the application thereof
to any persons or circumstances shall be adjudged by any
court of competent jurisdiction to be invalid, such judg-
ment shall not affect, impair, or invalidate the remainder
of this Act or its application to other persons and cir-
cumstances, but shall be confined in its operation to the
provision of this Act or the application thereof to the per-
sons and circumstances directly involved in the con-
troversy in which such judgment shall have been rendered.
‘‘SEC. 605. DEFINITION OF STATE.
‘‘For purposes of this Act, the terms ‘State’ and
‘United States’ include the several States, the District of
Columbia, the Commonwealth of Puerto Rico, the Virgin
Islands, Guam, and American Samoa.
‘‘SEC. 606. ANNUAL REPORT TO CONGRESS.
‘‘The Secretary shall make a comprehensive and de-
tailed annual report to the Congress of his operations
under this Act for each fiscal year beginning with the fis-
cal year ending June 30, 1966. Such report shall be print-
ed and shall be transmitted to the Congress not later than
April 1 of the year following the fiscal year with respect
to which such report is made.
‘‘SEC. 607. 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 he may
deem appropriate, and to authorize the redelegation of
such functions, powers, and duties by the heads of such
departments and agencies.
‘‘(b) DEPARTMENT
AND AGENCY EXECUTION
OF
DELEGATED AUTHORITY.—Departments and agencies of
the Federal Government shall exercise their powers, du-
ties, and functions in such manner as will assist in carry-
ing out the objectives of this Act.
‘‘(c) TRANSFER OF FUNDS.—
‘‘(1) TRANSFER
BETWEEN
DEPARTMENTS.—
Funds authorized to be appropriated under this Act
may be transferred between departments and agen-
cies of the Government, if such funds are used for
the purposes for which they are specifically author-
ized and appropriated.
‘‘(2) TRANSFER FOR OTHER PURPOSES UNDER
THIS
ACT.—Funds authorized to be appropriated
under this Act may be transferred between functions
established under different titles of this Act, if such
funds are used for the purposes for which they are
specifically authorized and appropriated. Such trans-
ferred funds shall remain available until expended,
and may be transferred to and merged with the ap-
propriations under the heading ‘salaries and ex-
penses’ by the Secretary to the extent that the total
amount of such transfer and merger shall not exceed
5 percent of such transferred funds.
‘‘(d) 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 if the funds are used for the purposes for
which (and in accordance with the terms under which) the
funds are specifically authorized and appropriated.
‘‘SEC. 608. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are hereby authorized to be appropriated such
sums as may be necessary to carry out those provisions
of the Act for which specific authority for appropriations
is not otherwise provided in this Act except that there are
hereby authorized to be appropriated to carry out those
provisions of the Act for which specific authority for ap-
propriations is not otherwise provided in this Act not to
exceed $36,000,000 for the fiscal year ending September
30, 1996. Appropriations authorized under this Act shall
remain available until expended unless otherwise provided
by appropriations Acts. Amounts authorized to be appro-
priated under this section may be used to support a per-
sonnel level of up to 375 full-time equivalents and to ‘buy-
out’ existing employees without the loss of the full-time
equivalent positions filled by such employees. Funds ap-
propriated to carry out the purposes of this Act are au-
thorized to be expended for the payment of all obligations
and expenditures arising from actions to protect the Gov-
ernment’s interest in grant property.
‘‘SEC. 609. 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 section 101, 201,
202, or 411 or any extension of any such assistance by
renewal, deferment, or action, or otherwise, or the accept-
ance, release, or substitution of security for such assist-
ance, or for the purpose of influencing in any way the ac-
tion of the Secretary, or for the purpose of obtaining
money, property, or anything of value, under this Act,
shall be punished by a fine 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 body politic or corporate, or any individ-
ual, or to deceive any officer, auditor, or examiner,
makes any false entry in any book, report, or state-
ment of or to the Secretary, or without being duly
authorized draws any order or issues, puts forth, or
assigns any note, debenture, bond, or other obliga-
tion, 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
which might affect the value of securities, or having
such knowledge invests or speculates, directly or in-
directly, in the securities or property of any com-
pany or corporation receiving loans, grants, or other
assistance from the Secretary,
shall be fined under title 18, United States Code, impris-
oned for not more than 5 years, or both.
‘‘SEC. 610. EMPLOYMENT OF EXPEDITERS AND ADMINIS-
TRATIVE EMPLOYEES.
‘‘No financial assistance shall be extended by the Sec-
retary under section 101, 201, 202, or 411 to any business
enterprise unless the owners, partners, or officers of such
business enterprise—
‘‘(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-
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. 611. LABOR STANDARDS; RATE OF WAGES; ASSUR-
ANCE OF MAINTENANCE OF STANDARDS; EN-
FORCEMENT.
‘‘All laborers and mechanics employed by contractors
or subcontractors on projects assisted by the Secretary
under this Act shall be paid wages at rates not less than
those prevailing on similar construction in the locality as
determined by the Secretary of Labor in accordance with
the Act of March 3, 1931, known as the Davis-Bacon Act.
The Secretary shall not extend any financial assistance
under section 101, 201, 202, 411, or 703 for such a
project without first obtaining adequate assurance that
these labor standards will be maintained upon the con-
struction work. The Secretary of Labor shall have, with
respect to the labor standards specified in this provision,
the authority and functions set forth in Reorganization
Plan Numbered 14 of 1950 and section 2 of the Act of
June 13, 1934 (Chapter 482; 48 Stat. 948).
‘‘SEC. 612. MAINTENANCE OF RECORDS OF APPROVED AP-
PLICATIONS FOR FINANCIAL ASSISTANCE;
PUBLIC INSPECTION.
‘‘(a) MAINTENANCE OF RECORD REQUIRED.—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 section 3131,
3141, 3142, or 3171 of this title, which shall be kept avail-
able for public inspection during the regular business
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 of the corporation.
‘‘(2) The amount and duration of the loan or
grant for which application is made.
‘‘(3) The purposes for which the proceeds of the
loan or grant are to be used.
‘‘(4) A general description of the security of-
fered in the case of a loan.
‘‘SEC. 613. 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 an effective audit.
‘‘(b) ACCESS
TO BOOKS
FOR EXAMINATION
AND
AUDIT.—The Secretary 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.
‘‘SEC. 614. 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 hereof shall
be construed as authorizing or permitting any reduction
or diminution in the proportional amount of Federal as-
sistance to which any State or any other entity eligible
under this Act would otherwise be entitled under the provi-
sions of any other Act.
‘‘SEC. 615. ACCEPTANCE OF APPLICANTS’ CERTIFICATIONS.
‘‘The Secretary may accept, when deemed appro-
priate, the applicants’ certifications to meet the require-
ments of this Act.
‘‘SEC. 616. SUPERVISION OF REGIONAL COUNSELS.
‘‘The Secretary shall take such actions as may be
necessary to ensure that individuals serving as Regional
Counsels of the Economic Development Administration re-
port directly to their respective Regional Director.
‘‘TITLE VII—SPECIAL ECONOMIC
DEVELOPMENT AND ADJUST-
MENT ASSISTANCE
‘‘Subtitle A—Grants and
Adjustment Assistance
‘‘SEC. 701. STATEMENT OF PURPOSE.
‘‘The purpose of this title is to provide special eco-
nomic development and adjustment assistance programs
to help State and local areas meet special needs arising
from actual or threatened severe unemployment arising
from economic dislocation, including unemployment aris-
ing from actions of the Federal Government and from
compliance with environmental requirements which re-
move economic activities from a locality, and economic ad-
justment problems resulting from severe changes in eco-
nomic conditions (including long-term economic deteriora-
tion), and to encourage cooperative intergovernmental ac-
tion to prevent or solve economic adjustment problems.
Nothing in this title is intended to replace the efforts of
the economic adjustment program of the Department of
Defense.
‘‘SEC. 702. ELIGIBLE RECIPIENT DEFINED.
‘‘As used in this title, the term ‘eligible recipient’
means an economic development district (as defined in
section 411), an Indian tribe, a State, a city or other polit-
ical subdivision of a State, or a consortium of such politi-
cal subdivisions, or a public or private nonprofit organiza-
tion or association.
‘‘SEC. 703. GRANTS BY SECRETARY.
‘‘(a) IN GENERAL.—
‘‘(1) DIRECT
GRANTS.—The Secretary may
make grants directly to any eligible recipient in an
area which—
‘‘(A) the Secretary has determined has ex-
perienced, or may reasonably be foreseen to be
about to experience, a special need to meet an
expected rise in unemployment, or other eco-
nomic adjustment problems (including those
caused by any action or decision of the Federal
Government); or
‘‘(B) the Secretary determines has dem-
onstrated long-term economic deterioration, to
carry out or develop a plan which—
‘‘(i) meets the requirements of sub-
section (b); and
‘‘(ii) is approved by the Secretary to
use such grants for any of the following:
‘‘(I) Public facilities.
‘‘(II Public services.
‘‘(III) Business development.
‘‘(IV) Industrial retention.
‘‘(V) Planning.
‘‘(VI) Research.
‘‘(VII Technical assistance.
‘‘(VIII) Administrative expenses.
‘‘(IX) Training.
‘‘(X) Relocation of individuals
and businesses.
‘‘(XI) Assistance to business
through trade adjustment assistance
centers.
‘‘(XII) Other assistance which
demonstrably furthers the economic
development and adjustment objec-
tives of this title.
‘‘(2) DIRECT
EXPENDITURE
OR
REDISTRIBU-
TION BY RECIPIENT.—Grants under paragraph (1)
may be used in direct expenditures by the eligible re-
cipient or through redistribution by it to public and
private entities in grants, loans, loan guarantees,
payments to reduce interest on loan guarantees, or
other appropriate assistance, but no grant shall be
made by an eligible recipient to a private profit-
making entity.
‘‘(3) 
RESEARCH
AND
TECHNICAL
ASSIST-
ANCE.—The Secretary may conduct research or pro-
vide technical assistance for purposes of this title di-
rectly through members of the Secretary’s staff or
through the payment of funds to other departments
or agencies of the Federal Government.
‘‘(b) CRITERIA FOR APPROVAL OF PLAN.—No plan
shall be approved by the Secretary under this section un-
less the plan—
‘‘(1) identifies each economic development and
adjustment need of the area for which assistance is
sought under this title;
‘‘(2) describes each activity planned to meet
each such need;
‘‘(3) explains the details of the method of carry-
ing out each such planned activity;
‘‘(4) contains assurances satisfactory to the
Secretary that the proceeds from the repayment of
loans made by the eligible recipient with funds
granted under this title will be used for economic de-
velopment or adjustment; and
‘‘(5) be in such form and contain such addi-
tional information as the Secretary shall prescribe.
‘‘(c) COORDINATION OF ACTIVITIES WITH OTHER
FEDERAL PROGRAMS, REGIONAL COMMISSIONS, STATES,
ETC.—The Secretary to the extent practicable shall co-
ordinate the activities relating to the requirements for
plans and making grants and loans under this title with
other Federal programs, regional commissions, States,
economic development districts and other appropriate
planning and development organizations.
‘‘(d) PRIORITIZING NEEDS
AND SELECTION CRI-
TERIA FOR ASSISTANCE.—
‘‘(1) IN
GENERAL.—The Secretary shall pre-
scribe regulations and procedures to carry out this
title which establish a method to prioritize applica-
tions and award funding in a manner which takes
into consideration the relative needs of eligible areas
and the capacity of the applicant organizations.
‘‘(2) FACTORS
TO
BE
CONSIDERED.—In pre-
scribing such regulations and procedures the Sec-
retary shall consider among other relevant factors—
‘‘(A) the severity of the current and antici-
pated rates of unemployment in the eligible
areas and the current and anticipated duration
of such unemployment;
‘‘(B) the income levels of families and the
extent of underemployment in eligible areas;
‘‘(C) the economic development records of
the applicant organization, including the organi-
zation’s prior experience and its capacity to
leverage or attract funding from the private
sector;
‘‘(D) the ability of the applicant organiza-
tion to raise funds necessary to meet any
matching requirements applicable to the assist-
ance provided under this title;
‘‘(E) how the applicant organization will
coordinate or create partnerships with other or-
ganizations in the community and the extent to
which the applicant will increase the resources
for economic development activities through
such coordination or by forging partnerships
with private financial institutions; and
‘‘(F) the applicant organization’s record in
targeting assistance to economically distressed
communities.
‘‘(e) BASE CLOSINGS AND REALIGNMENTS.—
‘‘(1) LOCATION OF PROJECTS.—In any case in
which the Secretary determines a need for assistance
under subsection (a) due to the closure or realign-
ment of a military installation, the Secretary may
make such assistance available for projects to be
carried out on the military installation and for
projects to be carried out in communities adversely
affected by the closure or realignment.
‘‘(2) INTEREST IN PROPERTY.—Notwithstand-
ing any other provision of law, the Secretary may
provide to an eligible recipient any assistance avail-
able under this Act for a project to be carried out
on a military installation that is closed or scheduled
for closure or realignment without requiring that the
eligible recipient have title to the property or a lease-
hold interest in the property for any specified term.
‘‘SEC. 704. ANNUAL REPORTS BY RECIPIENT AND SEC-
RETARY.
‘‘(a) RECIPIENT’S REPORT.—Each eligible recipient
which receives assistance under this title shall annually
during the period such assistance continues make a full
and complete report to the Secretary, in such manner as
the Secretary shall prescribe, and such report shall contain
an evaluation of the effectiveness of the economic assist-
ance provided under this title in meeting the need it was
designed to alleviate and the purposes of this title.
‘‘(b) SECRETARY’S REPORT.—The Secretary shall in-
clude in the annual report pursuant to section 3217 of
this title a consolidated report with his recommendations,
if any, on the assistance authorized under this title, in
a form which he deems appropriate.
‘‘SEC. 705. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There is authorized to be appro-
priated to carry out this title $175,000,000 for fiscal year
1995 and $175,000,000 for fiscal year 1996. Such sums
shall remain available until expended.
‘‘(b) SET-ASIDE FOR DEFENSE CONVERSION ACTIVI-
TIES.—Of amounts appropriated pursuant to subsection
(a) for fiscal year 1995, not less than $100,000,000 shall
be available for purposes of assisting eligible recipients in
activities related to defense conversion.
‘‘(c) ADDITIONAL AMOUNTS.—In addition to the ap-
propriations authorized by subsection (a), there is author-
ized to be appropriated to carry out this title such sums
as may be necessary to provide assistance for defense con-
version activities and to provide assistance in the case of
a natural disaster. Such sums shall remain available until
expended.
‘‘Subtitle B—Economic
Development Financing
‘‘SEC. 711. GUARANTEED LOAN PROGRAM.
‘‘(a) IN GENERAL.—To the extent the Secretary
deems it appropriate to carry out the purposes of this title,
the Secretary may guarantee loans made to private bor-
rowers by private lending institutions, community develop-
ment financial institutions, and other lenders as the Sec-
retary considers appropriate.
‘‘(b) ELIGIBLE ACTIVITIES.—Activities for which
loans may be guaranteed under this title include the devel-
opment of land and facilities (including machinery and
equipment) for industrial or commercial usage (such as
the construction of new buildings and the rehabilitation
of abandoned or unoccupied buildings, and alterations,
conversion, or enlargement of existing buildings), or for
the provision of working capital.
‘‘(c) TERMS AND CONDITIONS.—
‘‘(1) IN GENERAL.—The Secretary may make
such guarantees upon application of the lenders and
upon such terms and conditions as the Secretary
may prescribe, except that no such guarantee shall
at any time exceed 90 percent of the amount of the
outstanding unpaid balance of such loans.
‘‘(2) PRESUMPTION OF VALIDITY.—Guarantees
under paragraph (1) shall be conclusive evidence
that the guarantee has been properly obtained, that
the underlying loan qualifies for such guarantee, and
that, but for fraud or material misrepresentation by
the holder, such guarantee will be presumed to be
valid, legal, and enforceable.
‘‘(3) FULL FAITH AND CREDIT OF U.S.—Guar-
antees under paragraph (1) shall have the full faith
and credit of the United States Government.
‘‘(4) LENDER RESPONSIBILITIES.—No guaran-
tee may be provided unless the lender is responsible
and makes adequate provision for servicing the loan
on reasonable terms and for protecting the financial
interest of the United States.
‘‘(5) PROHIBITION ON CERTAIN LOAN GUARAN-
TEES.—No loan may be guaranteed if the proceeds
of such loan are excluded from gross income for the
purposes of Chapter 1 of the Internal Revenue Code
of 1986 or if the guarantee provides sufficient collat-
eral or security, as determined by the Secretary, for
other obligations the income from which is so
excluded.
‘‘(d) PREFERRED LENDER PREFERENCE.—To the
extent feasible, the Secretary shall conduct the guarantee
program established under this subsection on a preferred
lender basis and authorize lenders, in accordance with
agreements entered into between the Secretary and such
lenders, to take such actions on the Secretary’s behalf as
the Secretary deems appropriate, including, but not lim-
ited to, the determination of eligibility and credit worthi-
ness and loan monitoring, collection and liquidation.
‘‘SEC. 712. PILOT EQUITY FINANCE PROGRAM.
‘‘(a) IN GENERAL.—In order to study the feasibility
and desirability of a program of equity financing, the Sec-
retary shall establish a 5-year pilot program under which
the Secretary may, either directly or through grants made
to eligible recipients (as defined in section 702), purchase
or commit to purchase nonvoting equity instruments, with
or without equity warrants or commit to guarantee the
payment of up to 50 percent of the redemption price of,
and dividends on, such equity instruments of private Unit-
ed States businesses or nonprofit organizations and asso-
ciations for the purpose of providing capital for any
project which is consistent with the provisions of this title.
‘‘(b) ESTABLISHMENT OF FUND.—For purposes of
conducting the pilot program provided under subsection
(a), the Secretary shall establish an Equity Investment
Revolving Fund to carry out the purposes of this section.
‘‘(c) DISPOSAL OF EQUITY INSTRUMENTS.—The Sec-
retary shall endeavor to dispose of any equity instruments
purchased or guaranteed under this section within the 10-
year period beginning on the date of the acquisition of
such interest.
‘‘(d) USE OF PAYMENTS.—
‘‘(1) USE OF PAYMENTS TO THE SECRETARY.—
Amounts received by the Secretary from the pay-
ment of dividends and the redemption of equity in-
struments shall be deposited in the Equity Invest-
ment Revolving Fund and shall be available to make
or guarantee additional equity investments consist-
ent with this section.
‘‘(2) USE OF PAYMENTS TO ELIGIBLE RECIPI-
ENT INTERMEDIARIES.—Of the amounts received by
eligible recipient intermediaries from the payment of
dividends and the redemption of equity instru-
ments—
‘‘(A) up to 50 percent may be retained by
such organizations to make or guarantee addi-
tional equity investments consistent with this
section; and
‘‘(B) no less than 50 percent shall be re-
turned to the Secretary to be deposited into the
Fund established under subsection (b) to make
or guarantee additional equity investments con-
sistent with this section.
‘‘(e) INVESTMENT OF EXCESS FUNDS.—If the Sec-
retary determines that the amount of money in the Fund
exceeds the current requirements of the Fund, the Sec-
retary may direct the Secretary of the Treasury to invest
such amounts in obligations of the United States, in obli-
gations guaranteed by the United States Government, or
in such other obligations or securities of the United States
as the Secretary of the Treasury deems appropriate.
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—In addi-
tion to the funds authorized to be appropriated under sec-
tion 705, there are authorized to be appropriated
$10,000,000 for fiscal year 1996, to carry out this section.
Such sums shall remain available until expended.
‘‘SEC. 713. TREATMENT OF REVOLVING LOAN FUNDS.
‘‘(a) IN GENERAL.—Amounts from grants under this
title which are used by an eligible recipient to establish
a revolving loan fund shall not be treated, except as pro-
vided by subsection (b), as amounts derived from Federal
funds for the purposes of any Federal law after such
amounts are loaned from the fund to a borrower and re-
paid to the fund.
‘‘(b) EXCEPTION.—Amounts described in subsection
(a) which are loaned from a revolving loan fund to a bor-
rower and repaid to the fund—
‘‘(1) may only be used for projects 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 originally applicable to such amounts.
‘‘(c) REGULATIONS.—Not later than 30 days after
the enactment of this section, the Secretary shall issue
regulations to carry out subsection (a).
‘‘(d) PUBLIC REVIEW AND COMMENT.—Before issu-
ing any final guidelines or administrative manuals govern-
ing the operation of revolving loan funds established using
amounts from grants under this title, the Secretary shall
provide reasonable opportunity for public review of and
comment on such guidelines and administrative manuals.
‘‘SEC. 714. 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 may
be sold, at the discretion of the administrator of the Fund,
to a third party provided that the proceeds of the sale—
‘‘(1) shall be deposited in the Fund and only
used for projects which are consistent with the pur-
poses of this title, and
‘‘(2) shall be subject to the financial manage-
ment, accounting, reporting, and auditing standards
which were originally applicable to the financial
instrument.
‘‘SEC. 715. ECONOMIC DEVELOPMENT CHALLENGE GRANTS
DEMONSTRATION PROJECT.
‘‘(a) IN GENERAL.—In order to study the feasibility
and desirability of using challenge grants to generate new
pools of investment capital in areas suffering from long-
term economic deterioration, the Secretary shall establish
a multiyear demonstration project under which the Sec-
retary shall provide grants to selected recipients, to be
matched by the recipients 1 dollar for every 2 Federal dol-
lars, for the purpose of establishing substantially leveraged
financing for business development and other innovative
economic development efforts.
‘‘(b) FEDERAL AND COMMUNITY CONTRIBUTIONS.—
‘‘(1) IN GENERAL.—The Secretary shall grant 2
dollars for every 1 dollar raised by each selected re-
cipient, up to $10,000,000 per year per selected re-
cipient.
‘‘(2) USE OF OTHER FEDERAL FUNDS IN CON-
JUNCTION WITH CHALLENGE GRANT.—Funds from
other Federal programs may be used in conjunction
or merged with the challenge grant and matching
funds to form a larger investment fund.
‘‘(c) ESTABLISHMENT AND USE OF FUNDS.—
‘‘(1) ESTABLISHMENT.—For purposes of this
Act, an investment fund established by a selected re-
cipient consists of—
‘‘(A) the economic development challenge
grant received by the selected recipient;
‘‘(B) the matching funds required under
subsection (b); and
‘‘(C) any such other funds that may be de-
rived from other sources, including other Fed-
eral funds.
‘‘(2) USE.—An investment fund shall be used
by the selected recipients for the purposes of gener-
ating long-term sustainable economic development
and job growth in areas identified by the selected re-
cipients, pursuant to the requirements and limita-
tions of eligibility and performance in subsections
(d), (e), (f), (g) and (h).
‘‘(d) ELIGIBLE RECIPIENTS.—The Secretary shall
make grants to any eligible recipients for use in an area
which must meet 1 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 1 per-
cent above the national average percentage for the
more recent 24-month period for which statistics are
available.
‘‘(3) The area has been determined by the Sec-
retary to have at least 1 of the following conditions:
‘‘(A) A large concentration of low-income
persons (as defined in section 401(e)).
‘‘(B) Areas having substantial outmigra-
tion.
‘‘(C) Substantial underemployment or un-
employment.
An eligible recipient may include any local government or
group of local governments, economic development dis-
trict, Indian tribe, public or private nonprofit organization
or association, community-based organization, business or
worker organization, or any consortium of such entities,
that is able to demonstrate to the satisfaction of the Sec-
retary that they can carry out the objectives of this pro-
gram pursuant to the criteria and requirements estab-
lished in this section.
‘‘(e) SELECTION OF DEMONSTRATION PROJECTS.—
‘‘(1) IN GENERAL.—The Secretary shall make
grants to selected recipients from 3 to 5 areas suf-
fering from long-term economic distress.
‘‘(2) DISTRIBUTION.—At least 1 selected recipi-
ent shall be from a rural area, 1 from a declining
industrial area, and 1 from an area that is a com-
bination of rural, small metropolitan, and suburban
communities.
‘‘(3) INDUSTRIAL
RETENTION
STRATEGY
RE-
QUIREMENT.—Of the 3 recipients described in para-
graph (2), at least 1 of the projects selected shall in-
clude an industrial retention strategy.
‘‘(f) GRANT SELECTION PROCESS.—
‘‘(1) NATIONAL COMPETITION.—The Secretary
shall select recipients of the challenge grants
through a nationally competitive process.
‘‘(2) ELIGIBILITY
REQUIREMENT.—Each se-
lected recipient must submit a comprehensive strat-
egy for generating sustained, long-term economic
growth and for both preserving and creating high-
quality jobs.
‘‘(3) PREFERENCE FOR CERTAIN PROJECTS.—
The Secretary shall give preference to eligible recipi-
ents which—
‘‘(A) utilize Federal the grant plus match-
ing funds to further leverage private and public
capital to create an even larger economic devel-
opment investment fund;
‘‘(B) represent consortia or partnerships
comprised of at least 2 or more of the groups
identified in subsection (d); or
‘‘(C) intend to use their investment funds
to finance or leverage financing for new busi-
ness development and startups, industrial serv-
ices, industrial modernization of local-based
firms or industrial retention (including em-
ployee stock ownership plans and worker or
management buyouts), or other economic devel-
opment strategies that illustrate ‘best practices’
in economic development.
‘‘(4) BROAD-BASED PARTICIPATION TO BE EN-
COURAGED.—The Secretary shall strongly encourage
broad-based participation of public and private enti-
ties within an area in the development and imple-
mentation of the challenge grant proposals submit-
ted by eligible recipients.
‘‘(g) LIMITATIONS.—The investment funds estab-
lished by the selected recipients shall—
‘‘(1) not be used to permit units of State and
local government to offer tax inducements to attract
businesses to locate in the area; and
‘‘(2) be subject to the same conditions described
in section 202(b)(1).
No area may receive an economic development challenge
grant if it has been designated an empowerment or enter-
prise community under section 13301 of the Omnibus
Budget Reconciliation Act of 1993.
‘‘(h) PERFORMANCE
EVALUATIONS; REPORT
TO
CONGRESS.—
‘‘(1) EVALUATION
OF
EFFECTIVENESS.—The
Secretary shall conduct performance evaluations of
the demonstration challenge grant project to assess
the effectiveness of this kind of program in generat-
ing sustained economic growth and job creation in
areas of the Nation experiencing long-term economic
distress.
‘‘(2) REPORT.—Based on the evaluations con-
ducted pursuant to paragraph (1), the Secretary
shall submit an annual report to Congress with rec-
ommendations for expansion, modification or termi-
nation of the program.
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—In addi-
tion to the funds authorized to be appropriated under sec-
tion 705, there is authorized to be appropriated
$30,000,000 for fiscal year 1996 to carry out this section.
Such sums shall remain available until expended.
‘‘Subtitle C—Business Development
Assistance
‘‘SEC. 721. FINDINGS, PURPOSES, AND DEFINITIONS.
‘‘(a) FINDINGS.—The Congress hereby finds the
following:
‘‘(1) Through its support and funding of re-
search and development in this Nation’s Federal
agencies, laboratories, and educational institutions,
the Federal Government has fostered the creation of
thousands of patents, licenses, technologies, and
processes owned, or held in whole or part, by the
Federal Government.
‘‘(2) If commercialized, these patents, licenses,
technologies, and processes owned, or held in whole
or part, by the Federal Government hold the poten-
tial to be a significant tool to foster economic devel-
opment and to create significant numbers of new
jobs at good wages for American workers.
‘‘(3) The Federal Government has not been suf-
ficiently effective in encouraging the commercializa-
tion of these patents, licenses, technologies, and
processes owned, or held in whole or part, by the
Federal Government.
‘‘(4) The Federal Government does not have an
effective mechanism to encourage the commercializa-
tion of these patents, licenses, technologies, and
processes by businesses located in parts of the Na-
tion in need of economic development.
‘‘(5) Throughout the Federal Government,
there is no single inventory or source of information
on patents, licenses, technologies, and processes
owned, or held in whole or part, by the Federal
Government.
‘‘(6) Information on patents, licenses, tech-
nologies, and processes owned, or held in whole or
part, by the Federal Government is not standardized
in form or content, is separately maintained by nu-
merous Federal agencies and departments, and is
not easily accessible by the public.
‘‘(7) Businesses and entrepreneurs in areas in
need of economic development are largely unaware of
the existence of these patents, licenses, technologies,
and processes, and largely unaware of the possibili-
ties for obtaining the rights to these patents, li-
censes, technologies, and processes for the purpose
of commercialization.
‘‘(8) It is in the economic interest of the United
States to facilitate the private sector commercializa-
tion of patents, licenses, technologies, and processes
by United States businesses located in areas in need
of economic development.
‘‘(9) Greater effectiveness will be achieved
through the utilization of the private sector cor-
porate structure and profit incentives in facilitating
the commercialization of patents, licenses, tech-
nologies, and processes than can reasonably be ex-
pected by the Federal Government performing this
function.
‘‘(b) PURPOSES.—The purposes of this subtitle are
as follows:
‘‘(1) To provide assistance to private-sector
United States businesses, located in areas in need of
economic development, to commercialize patents, li-
censes, technologies, and processes owned, or held in
whole or part, by the Federal Government.
‘‘(2) To create new employment opportunities
by facilitating the commercialization of patents, li-
censes, technologies, and processes by United States
businesses and entrepreneurs in areas in need of
economic development.
‘‘(3) To develop a single, comprehensive data
base of information on patents, licenses, tech-
nologies, and processes owned, or held in whole or
part, by the Federal Government, which is standard-
ized and easily accessible.
‘‘(4) To heighten the awareness of United
States businesses and entrepreneurs of the availabil-
ity for commercialization of patents, licenses, tech-
nologies, and processes owned, or held in whole or
part, by the Federal Government.
‘‘(c) DEFINITIONS.—For purposes of this subtitle,
the following definitions shall apply:
‘‘(1) SECRETARY.—The term ‘Secretary’ means
the Secretary of Commerce.
‘‘(2) CORPORATION.—The term ‘Corporation’
means the Business Development and Technology
Commercialization Corporation established under
this subtitle.
‘‘(3) BOARD.—The term ‘Board’ means the
Board of Directors of the Business Development and
Technology Commercialization Corporation.
‘‘(4) QUALIFIED CONCERN.—The term ‘quali-
fied concern’ means a United States-based consor-
tium, a private United States business, or an edu-
cational institution participating in a joint project
with 1 or more private United States businesses, for
the development and commercialization of patents,
licenses, processes, and technologies—
‘‘(A) owned or held in whole or part by
Federal departments, agencies, or government-
controlled corporations;
‘‘(B) developed in Federal laboratories;
‘‘(C) arising in the course of federally
funded research at educational institutions,