I
107TH CONGRESS
2D SESSION
H. R. 3618
To provide a framework for coordinating Federal, State, and local efforts
to meet the special needs of the SouthEast Crescent Region.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 23, 2002
Mr. MCINTYRE (for himself, Mr. SHOWS, Mr. BURR of North Carolina, Mr.
HILLIARD, Mr. JEFFERSON, Mr. GOODE, Ms. MCKINNEY, and Mr.
TOWNS) introduced the following bill; which was referred to the Com-
mittee on Transportation and Infrastructure, and in addition to the Com-
mittee on Financial Services, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
A BILL
To provide a framework for coordinating Federal, State,
and local efforts to meet the special needs of the South-
East Crescent Region.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress hereby finds and de-
clares the following:
(1) The SouthEast Crescent Region, while
abundant in natural resources and rich in potential,
lags behind the rest of the Nation in its economic
growth and that its people have not shared properly
in the Nation’s prosperity.
(2) The State and local governments and the
people of the SouthEast Crescent Region understand
their problems and have been working and will con-
tinue to work purposefully toward their solution.
(3) Regionwide development of the SouthEast
Crescent Region is feasible, desirable and urgently
needed.
(4) The SouthEast Crescent Region has the op-
portunity, in accommodating future growth and de-
velopment, to demonstrate local leadership and co-
ordinated planning so that public services, transpor-
tation, communications infrastructure, and other
community resources will be provided in a way com-
patible with the traditions of the region and so as
to enhance the quality of life for the people of the
region.
(b) PURPOSES.—The purposes of this Act are the fol-
lowing:
(1) To assist the SouthEast Crescent Region in
addressing its problems, to promote its economic de-
velopment, and to establish a framework for joint
Federal and State efforts toward providing the basic
SEC. 2. DEFINITIONS.
In this Act:
(1) AUTHORITY.—The term ‘‘Authority’’ means
the SouthEast Crescent Authority established by
section 3.
(2) REGION.—The term ‘‘region’’ means the
area covered by the Authority (as described in sec-
tion 16).
(3) FEDERAL
GRANT
PROGRAM.—The term
‘‘Federal grant program’’ means a Federal grant
program to provide assistance in carrying out eco-
nomic and community development activities.
SEC. 3. SOUTHEAST CRESCENT AUTHORITY.
(a) ESTABLISHMENT.—
(1) IN
GENERAL.—There is established the
SouthEast Crescent Authority.
(2) COMPOSITION.—The Authority shall be
composed of—
(A) a Federal member, to be appointed by
the President, with the advice and consent of
the Senate; and
(B) the Governor of each State in the re-
gion that elects to participate in the Authority.
(3) COCHAIRPERSONS.—The Authority shall be
headed by—
(A) the Federal member, who shall serve—
(i) as the Federal cochairperson; and
(ii) as a liaison between the Federal
Government and the Authority; and
(B) a State cochairperson, who—
(i) shall be a Governor of a partici-
pating State in the region; and
(ii) shall be elected by the State mem-
bers for a term of not less than 1 year.
(b) ALTERNATE MEMBERS.—
(1) 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 his Cabinet or personal staff.
(2) ALTERNATE FEDERAL COCHAIRPERSON.—
The President shall appoint an alternate Federal co-
chairperson.
(3) QUORUM.—The Authority shall determine
what constitutes a quorum for regular or special Au-
thority meetings. However, a State alternate shall
not be counted toward the establishment of a
quorum of the Authority in any instance in which a
quorum of the State members is required to be
present.
(4) DELEGATION OF POWER.—No power or re-
sponsibility of the Authority specified in paragraphs
(2) and (3) of subsection (c), and no voting right of
any Authority member, shall be delegated to any
person—
(A) who is not a Authority member; or
(B) who is not entitled to vote in Authority
meetings.
(c) VOTING.—
(1) IN GENERAL.—A decision by the Authority
shall require a majority vote of the Authority (not
including any member representing a State that is
delinquent under subsection (g)(2)(C)) to be effec-
tive.
(2) QUORUM.—A quorum of State members
shall be required to be present in person or by
agreed upon electronic means for the Authority to
make any policy decision, including—
(A) a modification or revision of a Author-
ity policy decision;
(B) approval of a State or regional devel-
opment plan; and
(C) any allocation of funds among the
States.
(3) PROJECT AND GRANT PROPOSALS.—The ap-
proval of project and grant proposals shall be—
(A) a responsibility of the Authority; and
(B) conducted in accordance with section
10.
(4) VOTING BY ALTERNATE MEMBERS.—An al-
ternate member shall vote in the case of the absence,
death, disability, removal, or resignation of the Fed-
eral or State representative for which the alternate
member is an alternate.
(d) DUTIES.—The Authority shall—
(1) develop, on a continuing basis, comprehen-
sive and coordinated plans and programs to establish
priorities and approve grants for the economic devel-
opment of the region, giving due consideration to
other Federal, State, and local planning and devel-
opment activities in the region;
(2) not later than 365 days after the date of
enactment of this Act, establish priorities in a devel-
opment plan for the region (including 5-year re-
gional outcome targets);
(3) assess the needs and assets of the region
based on available research, demonstrations, inves-
tigations, assessments, and evaluations of the region
prepared by Federal, State, and local agencies, uni-
versities, local development districts, and other non-
profit groups;
(4) formulate and recommend to the Governors
and legislatures of States that participate in the Au-
thority forms of interstate cooperation;
(5) work with State and local agencies in devel-
oping appropriate model legislation;
(6)(A) enhance the capacity of, and provide
support for, local development districts in the 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;
(7) encourage private investment in industrial,
commercial, 
and 
other 
economic 
development
projects in the region; and
(8) cooperate with and assist State governments
with economic development programs of partici-
pating States.
(e) ADMINISTRATION.—In carrying out subsection
(d), the Authority 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 Authority as the Authority con-
siders appropriate;
(2) authorize, through the Federal or State co-
chairperson or any other member of the Authority
designated by the Authority, the administration of
oaths if the Authority determines that testimony
should be taken or evidence received under oath; and
(3) request from any Federal, State, or local
department or agency such information as may be
available to or procurable by the department or
agency that may be of use to the Authority in car-
rying out duties of the Authority;
(4) adopt, amend, and repeal bylaws and rules
governing the conduct of Authority business and the
performance of Authority duties;
(5) request the head of any Federal department
or agency to detail to the Authority such personnel
as the Authority requires to carry out duties of the
Authority, each such detail to be without loss of se-
niority, pay, or other employee status;
(6) request the head of any State department
or agency or local government to detail to the Au-
thority such personnel as the Authority requires to
carry out duties of the Authority, each such detail
to be without loss of seniority, pay, or other em-
ployee status;
(7) provide for coverage of Authority employees
in a suitable retirement and employee benefit system
by—
(A) making arrangements or entering into
contracts with any participating State govern-
ment; or
(B) otherwise providing retirement and
other employee benefit coverage;
(8) accept, use, and dispose of gifts or dona-
tions of services or real, personal, tangible, or intan-
gible property;
(9) enter into and perform such contracts,
leases, cooperative agreements, or other transactions
as are necessary to carry out Authority duties, in-
cluding any contracts, leases, or cooperative agree-
ments with—
(A) any department, agency, or instrumen-
tality of the United States;
(B) any State (including a political sub-
division, agency, or instrumentality of the
State); or
(C) any person, firm, association, or cor-
poration; and
(10) establish and maintain a central office and
field offices at such locations as the Authority may
select.
(f) FEDERAL AGENCY COOPERATION.—A Federal
agency shall—
(1) cooperate with the Authority; and
(2) provide, on request of the Federal cochair-
person, appropriate assistance in carrying out this
Act, in accordance with applicable Federal laws (in-
cluding regulations).
(g) ADMINISTRATIVE EXPENSES.—
(1) IN GENERAL.—Administrative expenses of
the Authority (except for the expenses of the Fed-
eral cochairperson, including expenses of the alter-
nate and staff of the Federal cochairperson, which
shall be paid solely by the Federal Government)
shall be paid—
(A) by the Federal Government, in an
amount equal to 50 percent of the administra-
tive expenses; and
(B) by the States in the region partici-
pating in the Authority, in an amount equal to
50 percent of the administrative expenses.
(2) STATE SHARE.—
(A) IN GENERAL.—The share of adminis-
trative expenses of the Authority to be paid by
each State shall be determined by the Author-
ity.
(B) NO
FEDERAL
PARTICIPATION.—The
Federal cochairperson shall not participate or
vote in any decision under subparagraph (A).
(C) DELINQUENT STATES.—If a State is
delinquent in payment of the State’s share of
administrative expenses of the Authority under
this subsection—
(i) no assistance under this Act shall
be furnished to the State (including assist-
ance to a political subdivision or a resident
of the State); and
(ii) no member of the Authority from
the State shall participate or vote in any
action by the Authority.
(h) COMPENSATION.—
(1) FEDERAL
COCHAIRPERSON.—The Federal
cochairperson shall be compensated by the Federal
Government at level III of the Executive Schedule in
subchapter II of chapter 53 of title V, United States
Code.
(2) ALTERNATE FEDERAL COCHAIRPERSON.—
The alternate Federal cochairperson—
(A) shall be compensated by the Federal
Government at level V of the Executive Sched-
ule described in paragraph (1); and
(B) when not actively serving as an alter-
nate for the Federal cochairperson, shall per-
form such functions and duties as are delegated
by the Federal cochairperson.
(3) STATE MEMBERS AND ALTERNATES.—
(A) IN
GENERAL.—A State shall com-
pensate each member and alternate rep-
resenting the State on the Authority at the rate
established by law of the State.
(B) NO ADDITIONAL COMPENSATION.—No
State member or alternate member shall receive
any salary, or any contribution to or sup-
plementation of salary from any source other
than the State for services provided by the
member or alternate to the Authority.
(4) DETAILED EMPLOYEES.—
(A) IN GENERAL.—No person detailed to
serve the Authority under subsection (e)(6)
shall receive any salary or any contribution to
or supplementation of salary for services pro-
vided to the Authority from—
(i) any source other than the State,
local, or intergovernmental department or
agency from which the person was detailed;
or
(ii) the Authority.
(B) VIOLATION.—Any person that violates
this paragraph shall be fined not more than
$5,000, imprisoned not more than 1 year, or
both.
(C) APPLICABLE
LAW.—The Federal co-
chairperson, the alternate Federal cochair-
person, and any Federal officer or employee de-
tailed to duty on the Authority under sub-
section (e)(5) shall not be subject to subpara-
graph (A), but shall remain subject to sections
202 through 209 of title 18, United States
Code.
(5) ADDITIONAL PERSONNEL.—
(A) COMPENSATION.—
(i) IN GENERAL.—The Authority may
appoint and fix the compensation of an ex-
ecutive director and such other personnel
as are necessary to enable the Authority to
carry out the duties of the Authority.
(ii) 
EXCEPTION.—Compensation
under clause (i) shall not exceed the max-
imum rate for the Senior Executive Service
under section 5382 of title 5, United
States Code, including any applicable local-
ity-based comparability payment that may
be authorized under section 5304(h)(2)(C)
of that title.
(B) EXECUTIVE DIRECTOR.—The executive
director shall be responsible for—
(i) the carrying out of the administra-
tive duties of the Authority;
(ii) direction of the Authority staff;
and
(iii) such other duties as the Author-
ity may assign.
(C) NO FEDERAL EMPLOYEE STATUS.—No
member, alternate, officer, or employee of the
Authority (except the Federal cochairperson of
the Authority, the alternate and staff for the
Federal cochairperson, and any Federal em-
ployee detailed to the Authority under sub-
prospective employment; has a financial inter-
est.
(2) DISCLOSURE.—Paragraph (1) shall not
apply if the State member, alternate, officer, or
employee—
(A) immediately advises the Authority of
the nature and circumstances of the proceeding,
application, request for a ruling or other deter-
mination, contract, claim, controversy, or other
particular matter presenting a potential conflict
of interest;
(B) makes full disclosure of the financial
interest; and
(C) before the proceeding concerning the
matter presenting the conflict of interest, re-
ceives a written determination by the Authority
that the interest is not so substantial as to be
likely to affect the integrity of the services that
the Authority may expect from the State mem-
ber, alternate, officer, or employee.
(3) VIOLATION.—Any person that violates this
subsection shall be fined not more than $10,000, im-
prisoned not more than 2 years, or both.
(j) 
VALIDITY
OF
CONTRACTS, 
LOANS, 
AND
GRANTS.—The Authority may declare void any contract,
loan, or grant of or by the Authority in relation to which
the Authority determines that there has been a violation
of any provision under subsection (h)(4), subsection (i),
or sections 202 through 209 of title 18, United States
Code.
SEC. 
4. 
ECONOMIC 
AND 
COMMUNITY 
DEVELOPMENT
GRANTS.
(a) IN
GENERAL.—The Authority may approve
grants to States and public and nonprofit entities for
projects, approved in accordance with section 10—
(1) to develop the infrastructures of the region
for the purpose of facilitating economic development
in the region (except that grants for this purpose
may only be made to a State or local government);
(2) to assist the region in obtaining the job
training, employment-related education, and busi-
ness development that are needed to build and main-
tain strong local economies;
(3) to provide assistance to severely distressed
and underdeveloped areas that lack financial re-
sources for improving basic public services; and
(4) to otherwise achieve the purposes of this
Act.
(b) FUNDING.—
(1) IN GENERAL.—Funds for grants under sub-
section (a) may be provided—
(A) entirely from appropriations to carry
out this section;
(B) in combination with funds available
under another State or Federal grant program;
or
(C) from any other source.
(2) PRIORITY OF FUNDING.—To best build the
foundations for long-term economic development and
to complement other Federal and State resources in
the region, Federal funds available under this Act
shall be focused on the following activities to en-
hance the economic capacity of the region including:
(A) Basic public infrastructures in dis-
tressed counties and isolated areas of distress.
(B) Infrastructures for the purpose of fa-
cilitating economic development in the region.
(C) Business development, with emphasis
on entrepreneurship.
(D) Job training or employment-related
education, with emphasis on use of existing
public educational institutions located in the re-
gion.
(E) Access for residents to affordable,
quality health care.
(F) Local planning and leadership develop-
ment.
(3) Federal share in grant programs.—Not-
withstanding any provision of law limiting the Fed-
eral share in any grant program, funds appropriated
to carry out this section may be used to increase a
Federal share in a grant program, as the Authority
determines appropriate.
SEC. 5. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.
(a) FINDING.—Congress finds that certain States
and local communities of the region, including local devel-
opment districts, may be unable to take maximum advan-
tage of Federal grant programs for which the States and
communities are eligible because—
(1) they lack the economic resources to meet
the required matching share; or
(2) there are insufficient funds available under
the applicable Federal grant law authorizing the
program to meet pressing needs of the region.
(b) FEDERAL GRANT PROGRAM FUNDING.—In ac-
cordance with subsection (c), the Federal cochairperson
may use amounts made available to carry out this Act,
without regard to any limitations on areas eligible for as-
sistance or authorizations for appropriation under any
other Act, to fund all or any portion of the basic Federal
contribution to a project or activity under a Federal grant
program in the region in an amount that is above the fixed
maximum portion of the cost of the project otherwise au-
thorized by applicable law, but not to exceed 80 percent
of the costs of the project.
(c) CERTIFICATION.—
(1) IN GENERAL.—In the case of any program
or project for which all or any portion of the basic
Federal contribution to the project under a Federal
grant program is proposed to be made under this
section, no Federal contribution shall be made until
the Federal official administering the Federal law
authorizing the contribution certifies that the pro-
gram or project—
(A) meets the applicable requirements of
the applicable Federal grant law; and
(B) could be approved for Federal con-
tribution under the law if funds were available
under the law for the program or project.
(2) CERTIFICATION BY AUTHORITY.—
(A) IN GENERAL.—The certifications and
determinations required to be made by the Au-
thority for approval of projects under this Act
in accordance with section 10—
(i) shall be controlling; and
(ii) shall be accepted by the Federal
agencies.
(B) ACCEPTANCE BY FEDERAL COCHAIR-
PERSON.—Any finding, report, certification, or
documentation required to be submitted to the
head of the department, agency, or instrumen-
tality of the Federal Government responsible for
the administration of any Federal grant pro-
gram shall be accepted by the Federal cochair-
person with respect to a supplemental grant for
any project under the program.
SEC. 6. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION
AND ADMINISTRATIVE EXPENSES.
(a) DEFINITION
OF LOCAL DEVELOPMENT DIS-
TRICT.—In this section, the term ‘‘local development dis-
trict’’ means an entity designated by the State that—
(1) is—
(A) a planning district in existence on the
date of enactment of this Act that is recognized
by the Economic Development Administration
of the Department of Commerce; or
(II) by the State officer des-
ignated by the appropriate State law
to make the certification; and
(iv)(I) a nonprofit incorporated body
organized or chartered under the law of
the State in which the entity is located;
(II) a nonprofit agency or instrumen-
tality of a State or local government;
(III) a public organization established
before the date of enactment of this Act
under State law for creation of multijuris-
dictional, areawide planning organizations;
or
(IV) a nonprofit association or com-
bination of bodies, agencies, and instru-
mentalities described in subclauses (I)
through (III); and
(2) has not, as certified by the Federal
cochairperson—
(A) inappropriately used Federal grant
funds from any Federal source; or
(B) appointed an officer who, during the
period in which another entity inappropriately
used Federal grant funds from any Federal
source, was an officer of the other entity.
(b) GRANTS TO LOCAL DEVELOPMENT DISTRICTS.—
(1) IN
GENERAL.—The Authority may make
grants for administrative expenses under this sec-
tion.
(2) CONDITIONS FOR GRANTS.—
(A) MAXIMUM AMOUNT.—The amount of
any grant awarded under paragraph (1) shall
not exceed 80 percent of the administrative ex-
penses of the local development district receiv-
ing the grant.
(B) LOCAL SHARE.—The contributions of
a local development district for administrative
expenses may be in cash or in kind, fairly evalu-
ated, including space, equipment, and services.
(c) DUTIES OF LOCAL DEVELOPMENT DISTRICTS.—
A local development district shall—
(1) operate as a lead organization serving
multicounty areas in the region at the local level;
and
(2) serve as a liaison between State and local
governments, 
nonprofit 
organizations 
(including
community-based groups and educational institu-
tions), the business community, and citizens that—
(A) are involved in multijurisdictional plan-
ning;
(B) provide technical assistance to local ju-
risdictions and potential grantees; and
(C) provide leadership and civic develop-
ment assistance.
SEC. 7. DISTRESSED COUNTIES AND AREAS AND NONDIS-
TRESSED COUNTIES.
Not later than 90 days after the date of enactment
of this Act, and annually thereafter, the Authority, in ac-
cordance with such criteria as the Authority may
designate—
(1) as distressed counties, counties in the re-
gion that are the most severely and persistently dis-
tressed and underdeveloped and have high rates of
poverty, low per capita income, or high rates of un-
employment; and
(2) as isolated areas of distress, areas located
in nondistressed counties in the region that are se-
verely and persistently distressed as documented by
comparable statistical measures.
SEC. 8. DEVELOPMENT PLANNING PROCESS.
(a) STATE DEVELOPMENT PLAN.—In accordance
with policies established by the Authority, each State
member shall submit a development plan for the area of
the region represented by the State member.
(b) CONTENT OF PLAN.—A State development plan
submitted under subsection (a) shall reflect the goals, ob-
jectives, and priorities identified in the regional develop-
ment plan developed under section 3(d)(2).
(c) CONSULTATION WITH INTERESTED LOCAL PAR-
TIES.—In carrying out the development planning process
(including the selection of programs and projects for as-
sistance), a State may—
(1) consult with—
(A) local development districts;
(B) local units of government; and
(C) institutions of higher learning; and
(2) take into consideration the goals, objectives,
priorities, and recommendations of the entities de-
scribed in paragraph (1).
(d) PUBLIC PARTICIPATION.—
(1) IN GENERAL.—The Authority and applica-
ble State and local development districts shall en-
courage and assist, to the maximum extent prac-
ticable, public participation in the development, revi-
sion, and implementation of all plans and programs
under this Act.
(2) REGULATIONS.—The Authority shall de-
velop guidelines for providing public participation
described in paragraph (1), including public hear-
ings.
SEC. 9. PROGRAM DEVELOPMENT CRITERIA.
(a) IN GENERAL.—In considering programs and
projects to be provided assistance under this Act, and in
establishing a priority ranking of the requests for assist-
ance provided by the Authority, the Authority shall follow
procedures that ensure, to the maximum extent prac-
ticable, consideration of—
(1) the relationship of the project or class of
projects to overall regional development;
(2) the per capita income and poverty and un-
employment rates and other socioeconomic indicators
in an area;
(3) the financial resources available to the ap-
plicants for assistance seeking to carry out the
project, with emphasis on ensuring that projects are
adequately financed to maximize the probability of
successful economic development;
(4) the importance of the project or class of
projects in relation to other projects or classes of
projects that may be in competition for the same
funds;
(5) the prospects that the project for which as-
sistance is sought will improve, on a continuing rath-
er than a temporary basis, the opportunities for em-
ployment, the average level of income, or the eco-
nomic development of the area served by the project;
and
(6) the extent to which the project design pro-
vides for detailed outcome measurements by which
grant expenditures and the results of the expendi-
tures may be evaluated.
(b) NO RELOCATION ASSISTANCE.—No financial as-
sistance authorized by this Act shall be used to assist an
establishment in relocating from 1 area to another.
(c) REDUCTION OF FUNDS.—Funds may be provided
for a program or project in a State under this Act only
if the Authority determines that the level of Federal or
State financial assistance provided under a law other than
this Act, for the same type of program or project in the
same area of the State within the region, will not be re-
duced as a result of funds made available by this Act.
SEC. 
10. 
APPROVAL 
OF 
DEVELOPMENT 
PLANS 
AND
PROJECTS.
(a) IN GENERAL.—A State or regional development
plan or any multistate subregional plan that is proposed
for development under this Act shall be reviewed by the
Authority.