I 
109TH CONGRESS 
1ST SESSION H. R. 1349 
To amend title 40, United States Code, to provide a comprehensive regional 
approach to economic and infrastructure development in the most se-
verely distressed regions in the Nation. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 16, 2005 
Mr. OBERSTAR (for himself and Ms. NORTON) introduced the following bill; 
which was referred to the Committee on Transportation and Infrastruc-
ture, and in addition to the Committee on Financial Services, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To amend title 40, United States Code, to provide a com-
prehensive regional approach to economic and infrastruc-
ture development in the most severely distressed regions 
in the Nation. 
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 ‘‘Regional Economic 
and Infrastructure Development Act of 2005’’.
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—Congress finds that— 
(1) between January 2001 and December 2004, 
the number of unemployed workers in the United 
States increased from 5,900,000 to 8,000,000, an 
increase of more than 35 percent; 
(2) people living in economically distressed, un-
derdeveloped regions are among the most affected by 
the economic downturn; 
(3) certain regions of the Nation, including Ap-
palachia, the Mississippi Delta Region, the Northern 
Great Plains Region, the Southeast Crescent Region, 
the Southwest Border Region, and rural Alaska, 
have suffered from chronic distress far above the na-
tional average; 
(4) an economically distressed region can suffer 
unemployment and poverty at a rate that is 150 per-
cent of the national average; and 
(5) regional commissions are unique Federal- 
State partnerships that can provide targeted re-
sources to alleviate pervasive economic distress. 
(b) PURPOSES.—The purposes of this Act are— 
(1) to provide a comprehensive regional ap-
proach to economic and infrastructure development 
in the most severely distressed regions in the Nation; 
and
(2) to ensure that the most severely distressed 
regions in the Nation have the necessary tools to de-
velop the basic building blocks for economic develop-
ment, such as transportation and basic public infra-
structure, job skills training, and business develop-
ment. 
SEC. 3. REGIONAL ECONOMIC AND INFRASTRUCTURE DE-
VELOPMENT. 
(a) IN GENERAL.—Title 40, United States Code, is 
amended— 
(1) by redesignating subtitle V as subtitle VI; 
and 
(2) by inserting after subtitle IV the following: 
‘‘SUBTITLE V—REGIONAL ECONOMIC AND 
INFRASTRUCTURE DEVELOPMENT 
‘‘CHAPTER 
Sec. 
‘‘151. GENERAL PROVISIONS ............................................................
15101 
‘‘153. REGIONAL COMMISSIONS .......................................................
15301 
‘‘155. FINANCIAL ASSISTANCE .........................................................
15501 
‘‘157. ADMINISTRATIVE PROVISIONS .............................................
15701 
‘‘CHAPTER 151—GENERAL PROVISIONS 
‘‘Sec. 
‘‘15101. Definitions. 
‘‘§ 15101. Definitions 
‘‘In this subtitle, the following definitions apply: 
‘‘(1) COMMISSION.—The term ‘Commission’ 
means a Commission established under section 
15301.
‘‘(2) LOCAL
DEVELOPMENT
DISTRICT.—The 
term ‘local development district’ means an entity 
that— 
‘‘(A)(i) is an economic development district 
that is— 
‘‘(I) in existence on the date of enact-
ment of this chapter; and 
‘‘(II) located in the region; or 
‘‘(ii) if an entity described in clause (i) 
does not exist— 
‘‘(I) is organized and operated in a 
manner that ensures broad-based commu-
nity participation and an effective oppor-
tunity for local officials, community lead-
ers, and the public to contribute to the de-
velopment and implementation of programs 
in the region; 
‘‘(II) is governed by a policy board 
with at least a simple majority of members 
consisting of— 
‘‘(aa) elected officials; or 
‘‘(bb) designees or employees of a 
general purpose unit of local govern-
ment that have been appointed to rep-
resent the unit of local government; 
and 
‘‘(III) is certified by the Governor or 
appropriate State officer as having a char-
ter or authority that includes the economic 
development of counties, portions of coun-
ties, or other political subdivisions within 
the region; and 
‘‘(B) has not, as certified by the Federal 
Cochairperson— 
‘‘(i) 
inappropriately 
used 
Federal 
grant funds from any Federal source; or 
‘‘(ii) appointed an officer who, during 
the period in which another entity inappro-
priately used Federal grant funds from any 
Federal source, was an officer of the other 
entity. 
‘‘(3) FEDERAL
GRANT
PROGRAM.—The term 
‘Federal grant program’ means a Federal grant pro-
gram to provide assistance in carrying out economic 
and community development activities. 
‘‘(4) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given the term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b).
‘‘(5) NONPROFIT ENTITY.—The term ‘nonprofit 
entity’ means any entity with tax-exempt or non-
profit status, as defined by the Internal Revenue 
Service, that has been formed for the purpose of eco-
nomic development. 
‘‘(6) REGION.—The term ‘region’ means the 
area covered by a Commission as described in sub-
chapter II of chapter 157. 
‘‘CHAPTER 153—REGIONAL COMMISSIONS 
‘‘Sec. 
‘‘15301. Establishment, membership, and employees. 
‘‘15302. Decisions. 
‘‘15303. Functions. 
‘‘15304. Administrative powers and expenses. 
‘‘15305. Meetings. 
‘‘15306. Personal financial interests. 
‘‘15307. Tribal representation on Northern Great Plains Regional Commission. 
‘‘15308. Tribal participation. 
‘‘15309. Annual report. 
‘‘§ 15301. Establishment, membership, and employees 
‘‘(a) ESTABLISHMENT.—There are established the 
following regional Commissions: 
‘‘(1) The Delta Regional Commission. 
‘‘(2) The Northern Great Plains Regional Com-
mission. 
‘‘(3) The Southeast Crescent Regional Commis-
sion. 
‘‘(4) The Southwest Border Regional Commis-
sion. 
‘‘(b) MEMBERSHIP.—
‘‘(1) FEDERAL
AND
STATE
MEMBERS.—Each 
Commission shall be composed of the following mem-
bers: 
‘‘(A) A Federal Cochairperson, to be ap-
pointed by the President, by and with the ad-
vice and consent of the Senate. 
‘‘(B) The Governor of each participating 
State in the region of the Commission. 
‘‘(2) ALTERNATE MEMBERS.— 
‘‘(A) 
ALTERNATE
FEDERAL
COCHAIR-
PERSON.—The President shall appoint an alter-
nate Federal Cochairperson for each Commis-
sion. The alternate Federal Cochairperson, 
when not actively serving as an alternate for 
the Federal Cochairperson, shall perform such 
functions and duties as are delegated by the 
Federal Cochairperson. 
‘‘(B) STATE
ALTERNATES.—The State 
member of a participating State may have a 
single alternate, who shall be appointed by the 
Governor of the State from among the members 
of the Governor’s cabinet or personal staff. 
‘‘(C) VOTING.—An alternate member shall 
vote in the case of the absence, death, dis-
ability, removal, or resignation of the Federal
or State member for which the alternate mem-
ber is an alternate. 
‘‘(3) COCHAIRPERSONS.—A Commission shall 
be headed by— 
‘‘(A) the Federal Cochairperson, who shall 
serve as a liaison between the Federal Govern-
ment and the Commission; and 
‘‘(B) a State Cochairperson, who shall be 
a Governor of a participating State in the re-
gion and shall be elected by the State members 
for a term of not less than 1 year. 
‘‘(4) CONSECUTIVE TERMS.—A State member 
may not be elected to serve as State Cochairperson 
for more than 2 consecutive terms. 
‘‘(c) COMPENSATION.— 
‘‘(1) FEDERAL COCHAIRPERSONS.—Each Fed-
eral Cochairperson shall be compensated by the Fed-
eral Government at level III of the Executive Sched-
ule as set out in section 5314 of title 5. 
‘‘(2) 
ALTERNATE
FEDERAL
COCHAIR-
PERSONS.—Each Federal Cochairperson’s alternate 
shall be compensated by the Federal Government at 
level V of the Executive Schedule as set out in sec-
tion 5316 of title 5.
‘‘(3) STATE
MEMBERS
AND
ALTERNATES.— 
Each State member and alternate shall be com-
pensated by the State that they represent at the rate 
established by the laws of that State. 
‘‘(d) EXECUTIVE DIRECTOR AND STAFF.— 
‘‘(1) IN
GENERAL.—A Commission shall ap-
point and fix the compensation of an executive direc-
tor and such other personnel as are necessary to en-
able the Commission to carry out its duties. Com-
pensation under this paragraph may not exceed the 
maximum rate of basic pay established for the Sen-
ior Executive Service under section 5382 of title 5, 
including any applicable locality-based comparability 
payment that may be authorized under section 
5304(h)(2)(C) of that title. 
‘‘(2) EXECUTIVE DIRECTOR.—The executive di-
rector shall be responsible for carrying out the ad-
ministrative duties of the Commission, directing the 
Commission staff, and such other duties as the Com-
mission may assign. 
‘‘(e) NO FEDERAL EMPLOYEE STATUS.—No mem-
ber, alternate, officer, or employee of a Commission (other 
than the Federal Cochairperson, the alternate Federal Co-
chairperson, staff of the Federal Cochairperson, and any
Federal employee detailed to the Commission) shall be 
considered to a Federal employee for any purpose. 
‘‘§ 15302. Decisions 
‘‘(a) REQUIREMENTS
FOR APPROVAL.—Except as 
provided in section 15304(c)(3), decisions by the Commis-
sion shall require the affirmative vote of the Federal Co-
chairperson and a majority of the State members (exclu-
sive of members representing States delinquent under sec-
tion 15304(c)(3)(C)). 
‘‘(b) CONSULTATION.—In matters coming before the 
Commission, the Federal Cochairperson shall, to the ex-
tent practicable, consult with the Federal departments and 
agencies having an interest in the subject matter. 
‘‘(c) QUORUMS.—A Commission shall determine what 
constitutes a quorum for Commission meetings; except 
that— 
‘‘(1) any quorum shall include the Federal Co-
chairperson or the alternate Federal Cochairperson; 
and 
‘‘(2) a State alternate member shall not be 
counted toward the establishment of a quorum. 
‘‘(d) PROJECTS AND GRANT PROPOSALS.—The ap-
proval of project and grant proposals shall be a responsi-
bility of each Commission and shall be carried out in ac-
cordance with section 15503.
‘‘§ 15303. Functions 
‘‘A Commission shall— 
‘‘(1) assess the needs and assets of its region 
based on available research, demonstration projects, 
investigations, assessments, and evaluations of the 
region prepared by Federal, State, and local agen-
cies, universities, local development districts, and 
other nonprofit groups; 
‘‘(2) develop, on a continuing basis, comprehen-
sive and coordinated economic and infrastructure de-
velopment strategies to establish priorities and ap-
prove grants for the economic development of its re-
gion, giving due consideration to other Federal, 
State, and local planning and development activities 
in the region; 
‘‘(3) not later than 1 year after the date of en-
actment of this section, and after taking into ac-
count State plans developed under section 15502, es-
tablish priorities in an economic and infrastructure 
development plan for its region, including 5-year re-
gional outcome targets; 
‘‘(4)(A) enhance the capacity of, and provide 
support for, local development districts in its region; 
or
‘‘(B) if no local development district exists in 
an area in a participating State in the region, foster 
the creation of a local development district; 
‘‘(5) encourage private investment in industrial, 
commercial, 
and 
other 
economic 
development 
projects in its region; 
‘‘(6) cooperate with and assist State govern-
ments with the preparation of economic and infra-
structure development plans and programs for par-
ticipating States; 
‘‘(7) formulate and recommend to the Gov-
ernors and legislatures of States that participate in 
the Commission forms of interstate cooperation and, 
where appropriate, international cooperation; and 
‘‘(8) work with State and local agencies in de-
veloping appropriate model legislation to enhance 
local and regional economic development. 
‘‘§ 15304. Administrative powers and expenses 
‘‘(a) POWERS.—In carrying out its duties under this 
subtitle, a Commission may— 
‘‘(1) hold such hearings, sit and act at such 
times and places, take such testimony, receive such 
evidence, and print or otherwise reproduce and dis-
tribute a description of the proceedings and reports
on actions by the Commission as the Commission 
considers appropriate; 
‘‘(2) authorize, through the Federal or State 
Cochairperson or any other member of the Commis-
sion designated by the Commission, the administra-
tion of oaths if the Commission determines that tes-
timony should be taken or evidence received under 
oath; 
‘‘(3) request from any Federal, State, or local 
agency such information as may be available to or 
procurable by the agency that may be of use to the 
Commission in carrying out the duties of the Com-
mission; 
‘‘(4) adopt, amend, and repeal bylaws and rules 
governing the conduct of business and the perform-
ance of duties by the Commission; 
‘‘(5) request the head of any Federal agency, 
State agency, or local government to detail to the 
Commission such personnel as the Commission re-
quires to carry out its duties, each such detail to be 
without loss of seniority, pay, or other employee sta-
tus; 
‘‘(6) provide for coverage of Commission em-
ployees in a suitable retirement and employee benefit 
system by making arrangements or entering into
contracts with any participating State government 
or otherwise providing retirement and other em-
ployee coverage; 
‘‘(7) accept, use, and dispose of gifts or dona-
tions or services or real, personal, tangible, or intan-
gible property; 
‘‘(8) enter into and perform such contracts, co-
operative agreements, or other transactions as are 
necessary to carry out Commission duties, including 
any contracts or cooperative agreements with a de-
partment, agency, or instrumentality of the United 
States, a State (including a political subdivision, 
agency, or instrumentality of the State), or a person, 
firm, association, or corporation; and 
‘‘(9) maintain a government relations office in 
the District of Columbia and establish and maintain 
a central office at such location in its region as the 
Commission may select. 
‘‘(b) FEDERAL AGENCY COOPERATION.—A Federal 
agency shall— 
‘‘(1) cooperate with a Commission; and 
‘‘(2) provide, to the extent practicable, on re-
quest of the Federal Cochairperson, appropriate as-
sistance in carrying out this subtitle, in accordance 
with applicable Federal laws (including regulations).
‘‘(c) ADMINISTRATIVE EXPENSES.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the administrative expenses of a Commission shall 
be paid— 
‘‘(A) by the Federal Government, in an 
amount equal to 50 percent of the administra-
tive expenses of the Commission; and 
‘‘(B) by the States participating in the 
Commission, in an amount equal to 50 percent 
of the administrative expenses. 
‘‘(2) EXPENSES
OF
THE
FEDERAL
COCHAIR-
PERSON.—All expenses of the Federal Cochair-
person, including expenses of the alternate and staff 
of the Federal Cochairperson, shall be paid by the 
Federal Government. 
‘‘(3) STATE SHARE.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the share of administrative expenses 
of a Commission to be paid by each State of the 
Commission shall be determined by a unani-
mous vote of the State members of the Com-
mission. 
‘‘(B) NO FEDERAL PARTICIPATION.—The 
Federal Cochairperson shall not participate or 
vote in any decision under subparagraph (A).
‘‘(C) DELINQUENT STATES.—During any 
period in which a State is more than 1 year de-
linquent in payment of the State’s share of ad-
ministrative expenses of the Commission under 
this subsection— 
‘‘(i) no assistance under this subtitle 
shall be provided to the State (including 
assistance to a political subdivision or a 
resident of the State) for any project not 
approved as of the date of the commence-
ment of the delinquency; and 
‘‘(ii) no member of the Commission 
from the State shall participate or vote in 
any action by the Commission. 
‘‘(4) EFFECT ON ASSISTANCE.—A State’s share 
of administrative expenses of a Commission under 
this subsection shall not be taken into consideration 
when determining the amount of assistance provided 
to the State under this subtitle. 
‘‘§ 15305. Meetings 
‘‘(a) INITIAL MEETING.—Each Commission shall 
hold an initial meeting not later than 180 days after the 
date of enactment of this section. 
‘‘(b) ANNUAL MEETING.—Each Commission shall 
conduct at least 1 meeting each year with the Federal Co-
chairperson and at least a majority of the State members 
present. 
‘‘(c) ADDITIONAL
MEETINGS.—Each Commission 
shall conduct additional meetings at such times as it deter-
mines and may conduct such meetings by electronic 
means. 
‘‘§ 15306. Personal financial interests 
‘‘(a) CONFLICTS OF INTEREST.— 
‘‘(1) NO ROLE ALLOWED.—Except as permitted 
by paragraph (2), an individual who is a State mem-
ber or alternate, or an officer or employee of a Com-
mission, shall not participate personally and sub-
stantially as a member, alternate, officer, or em-
ployee of the Commission, through decision, ap-
proval, disapproval, recommendation, request for a 
ruling, or other determination, contract, claim, con-
troversy, or other matter in which, to the individ-
ual’s knowledge, any of the following has a financial 
interest: 
‘‘(A) The individual. 
‘‘(B) The individual’s spouse, minor child, 
or partner. 
‘‘(C) An organization (except a State or 
political subdivision of a State) in which the in-