I
103D CONGRESS
2D SESSION
H. R. 4267
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
APRIL 20, 1994
Mr. KANJORSKI (for himself, Mr. RIDGE, Mr. DOOLEY, Mrs. ROUKEMA, Mr.
KLINK, Mr. HINCHEY, Mr. FINGERHUT, Mr. LAFALCE, Mr. HOLDEN,
Mr. MCHALE, Mr. BORSKI, and Mr. KLEIN) introduced the following bill;
which was referred jointly to the Committees on Public Works and Trans-
portation, Banking, Finance and Urban Affairs, the Judiciary, and
Science, Space, and Technology
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 1994’’.
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 1994’.
‘‘(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-
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-