Union Calendar No. 270
103D CONGRESS
2D SESSION
H. R. 2442
[Report No. 103–423, Parts I and II]
A BILL
To reauthorize appropriations under the Public
Works and Economic Development Act of 1965,
as amended, to revise administrative provisions
of the Act to improve the authority of the Sec-
retary of Commerce to administer grant pro-
grams, and for other purposes.
APRIL 26, 1994
Reported from the Committee on Banking, Finance and
Urban Affairs with amendments, committed to the
Committee of the Whole House on the State of the
Union, and ordered to be printed
IB
Union Calendar No. 270
103D CONGRESS
2D SESSION
H. R. 2442
[Report No. 103–423, Parts I and II]
To reauthorize appropriations under the Public Works and Economic Develop-
ment Act of 1965, as amended, to revise administrative provisions of
the Act to improve the authority of the Secretary of Commerce to
administer grant programs, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 16, 1993
Mr. WISE (for himself, Mr. MINETA, Mr. SHUSTER, and Ms. MOLINARI) (all
by request) introduced the following bill; which was referred to the Com-
mittee on Public Works and Transportation
FEBRUARY 10, 1994
Reported with amendments, referred to the Committee on Banking, Finance
and Urban Affairs for a period ending not later than April 22, 1994, for
consideration of such provisions of the bill and amendments as fall within
the jurisdiction of that committee pursuant to clause 1(d), rule X
[Strike out all after the enacting clause and insert the part printed in italic]
APRIL 22, 1994
Referral to the Committee on Banking, Finance and Urban Affairs extended
for a period ending not later than April 26, 1994
APRIL 26, 1994
Additional sponsors: Mr. ROGERS and Mr. BARLOW
APRIL 26, 1994
Reported from the Committee on Banking, Finance and Urban Affairs with
amendments, committed to the Committee of the Whole House on the
State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in boldface]
[For text of introduced bill, see copy of bill as introduced on June 16, 1993]
A BILL
To reauthorize appropriations under the Public Works and
Economic Development Act of 1965, as amended, to
revise administrative provisions of the Act to improve
the authority of the Secretary of Commerce to administer
grant programs, 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’’.
TITLE I—ECONOMIC
DEVELOPMENT PROGRAMS
SEC. 101. GRANTS FOR PUBLIC WORKS FACILITIES.
Section 105 of the Public Works and Economic Devel-
opment Act of 1965 (42 U.S.C. 3135) is amended to read
as follows:
‘‘SEC. 105. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There is authorized to be appro-
priated to carry out this title $160,000,000 for fiscal year
1994 and $175,000,000 per fiscal year for each of fiscal
years 1995 and 1996. Such sums shall remain available
until expended.
‘‘(b) EXPENDITURES IN REDEVELOPMENT AREAS.—
Not less than 15 percent nor more than 35 percent of the
amounts appropriated pursuant to subsection (a) in a fiscal
year shall be expended in areas which qualify as redevelop-
ment areas under section 401(a)(4).’’.
SEC. 102. TECHNICAL ASSISTANCE, RESEARCH, AND INFOR-
MATION.
Section 303 of the Public Works and Economic Devel-
opment Act of 1965 (42 U.S.C. 3152) is amended to read
as follows:
‘‘SEC. 303. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this title $37,100,000 for fiscal year 1994 and $50,000,000
per fiscal year for each of fiscal years 1995 and 1996. Such
sums shall remain available until expended.’’.
SEC. 103. BUSINESS OUTREACH CENTER DEMONSTRATION
PROJECT.
Title III of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3151–3153) is amended by
adding at the end the following new section:
‘‘SEC. 305. BUSINESS OUTREACH CENTER DEMONSTRATION
PROJECT.
‘‘(a) IN GENERAL.—The Secretary shall conduct a
project in each of fiscal years 1994 through 1996 with funds
made available under this title for the purpose of dem-
onstrating methods of assisting isolated small businesses to
access small business services provided by Federal, State,
and local governments.
‘‘(b) ESTABLISHMENT OF CENTERS.—In conducting
the demonstration project under this section, the Secretary
shall establish three business outreach centers.
‘‘(c) PURPOSE OF CENTERS.—It shall be the purpose
of each business outreach center established under this sec-
tion—
‘‘(1) to provide a one-stop clearinghouse to assist
isolated small businesses in accessing small business
services provided by Federal, State, and local govern-
ments; and
‘‘(2) to improve efficiency in the delivery of such
services.
‘‘(d) SERVICES TO BE PROVIDED.—Each business out-
reach center established under this section shall provide 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 busi-
ness 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 assistance
services.
‘‘(e) ISOLATED SMALL BUSINESS DEFINED.—For the
purposes of this section, the term ‘isolated small business’
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 geographic
barriers.’’.
SEC. 104. REDEVELOPMENT AREAS.
(a) IN GENERAL.—Section 401 of the Public Works
and Economic Development Act of 1965 (42 U.S.C. 3161)
is amended to read as follows:
‘‘SEC. 401. AREA ELIGIBILITY.
‘‘(a) CERTIFICATION.—In order to qualify as a redevel-
opment area under this Act, an applicant seeking assistance
under this Act to undertake a project for such area shall
certify, as part of an application for such assistance, that
the area on the date of submission of such application meets
one or more of the following criteria:
‘‘(1) The area has a per capita income of 80 per-
cent 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 ex-
perience a sudden economic dislocation resulting in
job loss that is significant both in terms of the num-
ber of jobs eliminated and the effect upon the employ-
ment 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 one 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.—An area which qualifies as a re-
development area under subsection (a)(4)—
‘‘(1) shall not be subject to the requirements of
subparagraphs (A) and (C) of section 101(a)(1); and
‘‘(2) shall not be eligible to meet the requirements
of section 403(a)(1)(B).
‘‘(d) PRIOR DESIGNATIONS.—Any designation of a re-
development area under this title before the date of the en-
actment of the Economic Development Reauthorization Act
of 1994 shall not be effective after such date of enactment.’’.
(b) CONFORMING AMENDMENTS.—Section 101 of such
Act (42 U.S.C. 3131) is amended—
(1) in subsection (a)(1)(D) by striking ‘‘section
401(a)(6)’’ and inserting ‘‘section 401(a)(4)’’; and
(2) in subsection (c) by striking ‘‘section
401(a)(6)’’ each place it appears and inserting ‘‘sec-
tion 401(a)(4)’’.
SEC. 105. INVESTMENT STRATEGY.
(a) IN GENERAL.—Section 402 of the Public Works
and Economic Development Act of 1965 (42 U.S.C. 3162)
is amended to read as follows:
‘‘SEC. 402. INVESTMENT STRATEGY.
‘‘The Secretary may provide assistance under this Act
to an applicant for a project to be undertaken in a redevel-
opment area only if the applicant submits to the Secretary,
as part of an application for such assistance, and the Sec-
retary approves an investment strategy which—
‘‘(1) identifies the economic development prob-
lems to be addressed using such assistance;
‘‘(2) identifies past, present, and projected future
economic development investments in such area and
public and private participants and sources of fund-
ing for such investments; and
‘‘(3) sets forth a strategy for addressing the eco-
nomic problems identified pursuant to paragraph (1)
and describes how the strategy will solve such prob-
lems.’’
(b) ELIMINATION OF OVERALL ECONOMIC DEVELOP-
MENT PROGRAM.—Section 202(b) of such Act (42 U.S.C.
3142(b)) is amended by striking paragraph (10).
(c) CONFORMING AMENDMENTS.—
(1) TITLE
I.—Subparagraph (C) of section
101(a)(1) of such Act (42 U.S.C. 3131(a)(1)) is
amended to read as follows:
‘‘(C) the area for which the project is to be
undertaken has an approved investment strategy
as provided by section 402 and such project is
consistent with such strategy; and’’.
(2) TITLE II.—Paragraph (5) of section 201(a)
of such Act (42 U.S.C. 3141(a)) is amended to read
as follows:
‘‘(5) such area has an approved investment
strategy as provided by section 402 and the project
for which financial assistance is sought is consistent
with such strategy.’’.
(3) TITLE III.—Section 302(a) of such Act (42
U.S.C. 3151a(a)) is amended—
(A) in the fourth sentence by striking ‘‘over-
all State economic development plan’’ and in-
serting ‘‘State investment strategy’’;
(B) in the fifth sentence—
(i) by striking ‘‘plan’’ each place it ap-
pears and inserting ‘‘strategy’’; and
(ii) by striking ‘‘plans’’ each place it
appears and inserting ‘‘strategies’’; and
(C) in the sixth sentence by striking ‘‘Any
overall State economic development planning’’
and inserting ‘‘Development of any State invest-
ment strategy’’.
(4) TITLE
IV.—Section 403 of such Act (42
U.S.C. 3171) is amended—
(A) in subsections (a)(1)(C), (a)(1)(D),
(a)(2)(A), (a)(3)(A), (a)(4)(B), (e), and (i) by
striking ‘‘overall economic development pro-
gram’’ and inserting ‘‘investment strategy’’;
(B) in subsection (a)(1)(D) by striking
‘‘program’’ the second place it appears and in-
serting ‘‘strategy’’; and
(C) in subsections (b) and (b)(2)(B) by
striking ‘‘overall economic development pro-
grams’’ and inserting ‘‘investment strategies’’.
SEC. 106. ECONOMIC DEVELOPMENT DISTRICTS.
(a) ECONOMIC DEVELOPMENT DISTRICT DEFINED.—
Section 403(d) of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3171(d)) is amended by add-
ing at the end the following new sentence: ‘‘Such term in-
cludes any economic development district designated by the
Secretary under this section before the date of the enactment
of the Economic Development Reauthorization Act of
1994.’’.
(b) FUNDING.—Section 403(g) of such Act (42 U.S.C.
3171(g)) is amended to read as follows:
‘‘(g) FUNDING.—Amounts authorized to be appro-
priated under other sections of this Act shall be available
for purposes of carrying out subsections (a)(3) and (a)(4).’’.
SEC. 107. APPLICATIONS FOR ASSISTANCE.
(a) EXPEDITED PROCESSING.—Title VI of the Public
Works and Economic Development Act of 1965 (42 U.S.C.
3201–3204) is amended by adding at the end the following
new section:
‘‘SEC. 605. EXPEDITED PROCESSING OF APPLICATIONS.
‘‘(a) GUIDELINES.—Not later than 60 days after the
date of the enactment of this section, the Assistant Secretary
for Economic Development shall—
‘‘(1) publish guidelines to expedite the processing
of applications for assistance under this Act; and
‘‘(2) transmit to the Committee on Public Works
and Transportation of the House of Representatives
and the Committee on Environment and Public
Works of the Senate a report containing such guide-
lines.
‘‘(b) CONTENTS.—Guidelines to be published under
subsection (a) shall, at a minimum, provide for the follow-
ing:
‘‘(1) Increased reliance on self-certification by
applicants to establish compliance with other Federal
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.’’.
(b) UNIFORM APPLICATION FORM.—Title IV of such
Act is further amended by adding at the end the following
new section:
‘‘SEC. 606. UNIFORM APPLICATION FORM.
‘‘(a) DEVELOPMENT.—The Secretary shall, in coopera-
tion with the heads of appropriate Federal departments and
agencies, develop a general, simplified application 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 developed pursuant
to subsection (a) by Federal departments and agencies.’’.
SEC. 108. PERFORMANCE EVALUATIONS OF GRANT RECIPI-
ENTS.
Title VI of the Public Works and Economic Develop-
ment Act of 1965 is further amended by adding at the end
the following new section:
‘‘SEC. 607. PERFORMANCE EVALUATIONS OF GRANT RECIPI-
ENTS.
‘‘(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 assistance, con-
ducting applied research, and disseminating 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 one other university
center on a cost-reimbursement basis.’’.
SEC. 109. TRANSFER OF FUNDS.
Section 708 of the Public Works and Economic Devel-
opment Act of 1965 (42 U.S.C. 3218) is amended by adding
at the end the following new subsection:
‘‘(d) FUNDS TRANSFERRED FROM OTHER DEPART-
MENTS AND AGENCIES.—In order to carry out the objectives
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 spe-
cifically authorized and appropriated.’’.
SEC. 110. SUPERVISION OF REGIONAL COUNSELS.
Title VII of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3211–3226) is amended by
adding at the end the following new section:
‘‘SEC. 717. SUPERVISION OF REGIONAL COUNSELS.
‘‘The Secretary shall take such actions as may be nec-
essary to ensure that individuals serving as Regional Coun-
sels of the Economic Development Administration report
directly to their respective Regional Director.’’.
SEC. 111. BASE CLOSINGS AND REALIGNMENTS.
Section 903 of the Public Works and Economic Devel-
opment Act of 1965 (42 U.S.C. 3243) is amended by adding
at the end the following new subsection:
‘‘(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 realignment
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 car-
ried out in communities adversely affected by the clo-
sure or realignment.
‘‘(2) INTEREST IN PROPERTY.—Notwithstnading
any other provision of law, the Secretary may provide
to an eligible recipient any assistance available under
the 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 recipi-
ent have title to the property or a leasehold interest
in the property for any specified term.’’.
SEC. 112. TREATMENT OF REVOLVING LOAN FUNDS.
Title IX of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3241–3245) is amended—
(1) by redesignating section 905 as section 907;
and
(2) by inserting after section 904 the following
new section:
‘‘SEC. 905. 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 provided
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 repaid to the fund.
‘‘(b) EXCEPTIONS.—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
date of the enactment of this section, the Secretary shall
issue regulations to carry out subsection (a).
‘‘(d) PUBLIC REVIEW AND COMMENT.—Before issuing
any final guidelines or administrative manuals governing
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. 113. OUTREACH TO COMMUNITIES ADVERSELY AF-
FECTED BY DEFENSE BASE CLOSURES.
Title IX of the Public Works and Economic Develop-
ment Act of 1965 is further amended by inserting after sec-
tion 905 the following new section:
‘‘SEC. 906. OUTREACH TO COMMUNITIES ADVERSELY AF-
FECTED BY DEFENSE BASE CLOSURES.
‘‘(a) DESIGNATION OF AGENCY REPRESENTATIVES.—
The Assistant Secretary for Economic Development shall
designate for each State in which communities are ad-
versely affected by defense base closures an individual to
serve as a representative of the Economic Development Ad-
ministration. Such individual may be the State Economic
Development Agency Representative or another qualified
individual.
‘‘(b) RESPONSIBILITIES.—Individuals appointed as
agency representatives under subsection (a) shall provide
outreach and technical assistance to communities adversely
affected by defense base closures on obtaining assistance
from the Economic Development Administration.’’.
SEC. 114. SPECIAL ECONOMIC DEVELOPMENT AND ADJUST-
MENT ASSISTANCE.
Section 907 of the Public Works and Economic Devel-
opment Act of 1965, as redesignated by section 112 of this
Act, is amended to read as follows:
‘‘SEC. 907. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There is authorized to be appro-
priated to carry out this title $115,542,000 for fiscal year
1994 and $100,000,000 per fiscal year for each of fiscal
years 1995 and 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 1994, not less than $80,000,000 shall be
available for purposes of assisting eligible recipients in ac-
tivities related to defense conversion.
‘‘(c) ADDITIONAL AMOUNTS.—In addition to the ap-
propriations authorized by subsection (a), there are 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.’’.
SEC. 115. COMPLIANCE WITH BUY AMERICAN ACT.
None of the funds made available under this title, or
any amendment made by this title, may be expended in
violation of sections 2 through 4 of the Act of March 3, 1933
(41 U.S.C. 10a–10c; popularly known as the ‘‘Buy Amer-
ican Act’’), which are applicable to those funds.
TITLE II—APPALACHIAN
REGIONAL DEVELOPMENT
SEC. 201. FINDINGS AND PURPOSES.
Section 2 of the Appalachian Regional Development
Act of 1965 (40 U.S.C. App. 2) is amended—
(1) in subsection (a) by striking the period at the
end of the sixth sentence and inserting ‘‘and in se-
verely distressed and underdeveloped counties and
areas lacking resources for basic services.’’; and
(2) by adding at the end the following new subsection:
‘‘(c) The Congress further finds and declares that,
while substantial progress has been made in fulfilling many
of the objectives of this Act, rapidly changing national and
global economics over the past decade have created new
problems and challenges for rural areas throughout the Na-
tion and especially for the Appalachian region. Thus, the
problems of the region are not only to provide the infra-
structure necessary to economic and human resource devel-
opment, to develop its industry, and to generate a diversi-
fied regional economy, but to make the region’s industrial
and commercial resources more competitive in national and
world markets. It is, therefore, also the purpose of this Act
to provide a framework for coordinating Federal, State, and
local initiatives to respond to the economic competitive
challenge through improving the skills of the region’s man-
power, adapting and applying new technologies for the re-
gion’s businesses, and improving the access of the region’s
businesses to the technical and financial resources necessary
to their development while continuing to address the need
to provide basis services for the more disadvantaged areas
of the region so as to provide a fairer opportunity for the
people of the region to share the quality of life generally
enjoyed by citizens across this Nation.’’.
SEC. 202. MEETINGS.
Section 101 of the Appalachian Regional Development
Act of 1965 (40 U.S.C. App. 101) is amended—
(1) in subsection (a) by adding at the end the
following: ‘‘The Commission shall conduct at least one
meeting each year with the presence of the Federal
Cochairman and at least a majority of the State
members. The Commission may conduct such addi-
tional meetings by electronic means as the Commis-
sion considers advisable.’’;
(2) at the end of the third sentence of subsection
(b) by striking ‘‘present’’; and
(3) at the end of the fourth sentence of subsection
(c) by striking ‘‘to be present’’.
SEC. 203. AUTHORIZATIONS FOR ADMINISTRATIVE EX-
PENSES.
Section 105(b) of the Appalachian Regional Develop-
ment Act of 1965 (40 U.S.C. App. 105(b)) is amended to
read as follows:
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There is authorized to be ap-
propriated to carry out this section $3,400,000 for fis-
cal year 1994 and $4,000,000 per fiscal year for each
of fiscal years 1995 and 1996. Such sums shall re-
main available until expended.
‘‘(2) EXPENSES OF FEDERAL COCHAIRMAN.—Of
amounts appropriated pursuant to paragraph (1),
not to exceed $1,102,000 for fiscal year 1994 and not
to exceed $1,500,000 per fiscal year for each of fiscal
years 1995 and 1996 shall be available for expenses
of the Federal Cochairman, the Federal Cochairman’s
alternate, and the Federal Cochairman’s staff.’’.
SEC. 204. EXTENSION OF LEASE TERMS.
Section 106(7) of the Appalachian Regional Develop-
ment Act of 1965 (40 U.S.C. App. 106(7)) is amended by
striking ‘‘1982’’ and inserting ‘‘1996’’.
SEC. 205. HIGHWAY SYSTEM.
(a) AUTHORIZATION
OF APPROPRIATIONS.—Section
201(g) of the Appalachian Regional Development Act of
1965 (40 U.S.C. App. 201(g)) is amended to read as follows:
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$160,000,000 for fiscal year 1994 and $150,000,000 per fis-
cal year for each of fiscal years 1995 and 1996. Such sums
shall remain available until expended.’’.
(b) FEDERAL SHARE.—
(1) GENERAL RULE.—Section 201(h)(1) of such
Act (40 U.S.C. App. 201(h)(1)) is amended by strik-
ing ‘‘70 per centum’’ and inserting ‘‘80 percent’’.
(2) APPLICABILITY.—The amendment made by
paragraph (1) shall apply to projects approved after
March 31, 1979.
SEC. 206. SUPPLEMENTS TO FEDERAL GRANT-IN-AID PRO-
GRAMS.
(a) AVAILABILITY OF AMOUNTS.—The first sentence of
section 214(a) of the Appalachian Regional Development
Act of 1965 (40 U.S.C. App. 214(a)) is amended by striking
‘‘the President is authorized to provide funds to the Federal
Cochairman to be used’’ and inserting ‘‘the Federal Co-
chairman may use amounts made available under this
section’’.
(b) FEDERAL GRANT-IN-AID PROGRAMS DEFINED.—
The first sentence of section 214(c) of such Act (40 U.S.C.
App. 214(c)) is amended by striking ‘‘on or before December
31, 1980,’’.
(c) LIMITATION ON COVERED ROAD PROJECTS.—The
second sentence of section 214(c) of such Act is amended
by inserting ‘‘authorized by title 23, United States Code’’
after ‘‘road construction’’.
SEC. 207. PROGRAM DEVELOPMENT CRITERIA.
(a) CONSIDERATIONS.—Section 224(a) of the Appa-
lachian Regional Development Act of 1965 (40 U.S.C. App.
224(a)) is amended by inserting before the semicolon at the
end of paragraph (1) the following: ‘‘or in a severely dis-
tressed and underdeveloped county or area lacking resources
for basic services’’.
(b) REMOVAL
OF LIMITATIONS.—Section 224(b) of
such Act (40 U.S.C. App. 224(b)) is amended to read as
follows:
‘‘(b) LIMITATION.—No financial assistance shall be au-
thorized under this Act to be used to assist establishments
relocating from one area to another.’’.
SEC. 208. GRANTS FOR ADMINISTRATIVE EXPENSES AND
DEMONSTRATION PROJECTS.
(a) AVAILABILITY OF AMOUNTS.—Section 302(a) of the
Appalachian Regional Development Act of 1965 (40 U.S.C.
App. 302(a)) is amended—
(1) by striking ‘‘The President’’ and inserting
‘‘The Commission’’; and
(2) in paragraphs (1), (2), and (3) by striking
‘‘to the Commission’’ each place it appears.
(b) RESEARCH
AND DEMONSTRATION PROJECTS.—
Section 302(a)(3) of such Act (40 U.S.C. App. 302(a)(3))
is amended—
(1) by inserting after ‘‘technical assistance’’ the
following: ‘‘(including technical assistance for busi-
ness development and stabilization and application of
technologies 
(including 
telecommunication 
tech-
nologies) and productivity improvement)’’;
(2) by inserting after ‘‘training programs’’ the
following: ‘‘(including on-site employee training and
programs to upgrade employability of the region’s
people)’’; and
(3) by inserting after ‘‘demonstrations’’ the fol-
lowing: ‘‘(including demonstrations of service consoli-
dations and other methods of increasing efficiency of
local governments, the establishment and operation by
States, public agencies, or nonprofit development or-
ganizations of revolving funds for business assistance
loans, the establishment and operation of business in-
cubators and the provision of industrial facilities and
equipment by public agencies and nonprofit organiza-
tions on such terms (including terms of reasonable re-
covery of grant funds upon resale) as are approved by
the Commission, and the acquisition and development
of land)’’.
(c) 
SOLID
WASTE
DISPOSAL
DEMONSTRATION
PROJECTS.—Section 302(b) of such Act (40 U.S.C. App.
302(b)) is amended by adding at the end the following new
paragraph:
‘‘(5) The Commission shall carry out projects at not
less than 2 sites in the Appalachian region for the purpose
of demonstrating solid waste disposal techniques in rural
areas.’’.
(d) REPEAL OF PROVISION ON USE OF INFORMATION FROM
RESEARCH
AND
DEVELOPMENT
ACTIVITIES.—Section
302(e) of such Act (40 U.S.C. 302(e)) is repealed.
SEC. 209. AUTHORIZATION OF APPROPRIATIONS FOR GEN-
ERAL PROGRAM.
Section 401 of the Appalachian Regional Development
Act of 1965 (40 U.S.C. App. 401) is amended to read as
follows:
‘‘SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
‘‘In addition to the appropriations authorized in sec-
tion 105 for administrative expenses and in section 201(g)
for the Appalachian development highway system and local
access roads, there is authorized to be appropriated to the
Commission to carry out this Act $85,600,000 per fiscal
year for each of fiscal years 1994, 1995, and 1996. Such
sums shall remain available until expended.’’.
SEC. 210. DEFINITION OF APPALACHIAN REGION.
Section 403 of the Appalachian Regional Development
Act of 1965 (40 U.S.C. App. 403) is amended—
(1) in the first undesignated paragraph (relating
to Alabama) by inserting ‘‘Hale,’’ after ‘‘Franklin,’’;
and
(2) in the 12th undesignated paragraph (relating
to Virginia)—
(A) by inserting ‘‘Montgomery,’’ after
‘‘Lee,’’; and
(B) by inserting ‘‘Roanoke, Rockbridge,’’
after ‘‘Pulaski,’’.
SEC. 211. EXTENSION OF TERMINATION DATE.
Section 405 of the Appalachian Regional Development
Act of 1965 (40 U.S.C. App. 405) is amended by striking
‘‘1982’’ and inserting ‘‘1996’’.
SEC. 212. REGIONAL DEVELOPMENT TASK FORCE.
(a) ESTABLISHMENT.—There is established a Regional
Development Task Force (hereinafter in this section referred
to as the ‘‘Task Force’’).
(b) DUTIES.—It shall be the duty of the Task Force
to conduct a study on—
(1) the extent to which the unique characteristics
of the Appalachian Regional Commission (including
the Commission’s Federal-State partnership, program
flexibility, and regional approach) have contributed to
the achievement of the Commission’s goals; and
(2) whether or not the Commission can utilize
such characteristics to address needs which may exist
in other rural areas suffering from economic distress,
including the Lower Mississippi delta, Mexican bor-
der, and Ozark areas.
(c) MEMBERSHIP.—
(1) VOTING MEMBERS.—The Task Force shall be
composed of 9 voting members appointed, not later
than 90 days after the date of the enactment of this
Act, as follows:
(A) Three members appointed by the Presi-
dent.
(B) Three members appointed by the Presi-
dent pro tempore of the Senate.
(C) Three members appointed by the Speak-
er of the House of Representatives.
(2) EX
OFFICIO
MEMBERS.—The Federal and
State Cochairmen of the Appalachian Regional Com-
mission shall serve as ex officio, nonvoting members
of the Task Force.
(d) FACILITIES, SUPPLIES, AND PERSONNEL.—Upon
the request of the Task Force, the Appalachian Regional
Commission shall provide to the Task Force any facilities,
supplies, and personnel necessary for the Task Force to
carry out its responsibilities under this Act; except that the
total cost of such facilities, supplies, and personnel shall
not exceed $500,000.
(e) USE
OF OTHER STUDIES.—In conducting the
study under subsection (b), the Commission shall incor-
porate the results of other studies on the needs of rural areas
described in subsection (b) and shall not duplicate such
studies.
(f) REPORT.—Not later than 9 months after the date
of the first meeting of the Task Force, the Task Force shall
transmit to Congress a report on the results of the study
conducted under subsection (b).
(g) TERMINATION.—The Task Force shall terminate on
the date of transmittal of the report under subsection (f).
SEC. 213. COMPLIANCE WITH BUY AMERICAN ACT.
None of the funds made available under this title, or
any amendment made by this title, may be expended in
violation of sections 2 through 4 of the Act of March 3, 1933
(41 U.S.C. 10a–10c; popularly known as the ‘‘Buy Amer-
ican Act’’), which are applicable to those funds.
Amend the title so as to read: ‘‘A bill to reauthorize
economic development programs under the Public Works
and Economic Development Act of 1965 and the Appa-
lachian Regional Development Act of 1965 for fiscal
years 1994 through 1996, and for other purposes.’’.
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Economic
Development Reauthorization Act of 1994’’.
TITLE I—ECONOMIC
DEVELOPMENT PROGRAMS
SEC. 101. REAUTHORIZATION OF THE EDA THROUGH THE
ENACTMENT OF THE ECONOMIC DEVELOP-
MENT FINANCING ACT OF 1994.
The Public Works and Economic Develop-
ment 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 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 pro-
jected 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 Plan-
ning 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
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. Transfer of functions of area redevelopment ad-
ministration.
‘‘Sec. 603. Separability.
‘‘Sec. 604. Definition of State.
‘‘Sec. 605. Annual report to Congress.
‘‘Sec. 606. Use of other facilities.
‘‘Sec. 607. Authorization of appropriations.
‘‘Sec. 608. Penalties.
‘‘Sec. 609. Employment of expediters and administrative
employees.
‘‘Sec. 610. Labor standards; rate of wages; assurance of
maintenance of standards; enforcement.
‘‘Sec. 611. Maintenance of records of approved applications
for financial assistance; public inspection.
‘‘Sec. 612. Records and audit.
‘‘Sec. 613. Prohibition against a statutory construction
which might cause diminution in other Fed-
eral assistance.
‘‘Sec. 614. Acceptance of applicants’ certifications.
‘‘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 dem-
onstration 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 Commer-
cialization Corporation.
‘‘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 maintenance 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 sub-
stantial 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
‘‘(b) DECLARATION.—The Congress declares
that, in furtherance of maintaining the na-
tional 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 occurrences of economic
distress in order to avoid such condition;
and
‘‘(3) 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, In-
dian tribe, or private or public nonprofit or-
ganization or association, the Secretary of
Commerce (hereafter in this Act referred to as
the ‘Secretary’) may—
‘‘(1) make direct grants for the acqui-
sition or development of land and im-
provements for public works, public serv-
ice, or development facility usage, and
the acquisition, design and engineering,
construction, rehabilitation, alteration,
expansion, or improvement of such facili-
ties, including related machinery and
equipment if the Secretary finds that—
‘‘(A) the project for which finan-
cial assistance is sought will directly
or indirectly—
‘‘(i) tend to improve the op-
portunities, in the area where
such project is or will be located,
for the successful establishment
or expansion of industrial or com-
mercial plants or facilities,
‘‘(ii) otherwise assist in the
creation of additional long-term
employment 
opportunities 
for
such area, or
‘‘(iii) 
primarily 
benefit 
the
long-term unemployed and mem-
bers of low-income families;
‘‘(B) the project for which a grant
is requested 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 strategy and such project
is consistent with such strategy; and
‘‘(D) in the case of an area de-
scribed 
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 enable the States and other enti-
ties to take maximum advantage of des-
ignated Federal grant-in-aid programs (as
hereinafter defined), direct grants-in-aid
authorized under this section, and Fed-
eral grant-in-aid programs authorized by
the Watershed Protection and Flood Pre-
vention Act and the 11 watersheds au-
thorized by the Flood Control Act of De-
cember 22, 1944, for which they are eligi-
ble but for which, because of their eco-
nomic situation, they cannot supply the
required matching share.
‘‘(b) MAXIMUM
PROPORTION
OF
DIRECT
GRANT FUNDS TO TOTAL PROJECT COST.—Sub-
ject 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
REGULATIONS; MAXIMUM
GRANTS; REQUIRED
NON-FEDERAL SHARE.—The amount of any sup-
plementary grant under this section for any
project shall not exceed the applicable per-
centage established by regulations promul-
gated by the Secretary, but in no event shall
the non-Federal share of the aggregate cost of
any such project (including assumptions of
debt) be less than 20 percent of such cost, ex-
cept that in the case of a grant to an Indian
tribe, the Secretary may reduce the non-Fed-
eral share below such percentage or may
waive the non-Federal share. In the case of
any State or political subdivision thereof
which the Secretary determines has ex-
hausted its effective taxing and borrowing ca-
pacity, 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 commu-
nity development corporation which the Sec-
retary determines has exhausted its effective
borrowing capacity, the Secretary may re-
duce the non-Federal share below such per-
centage 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 ac-
cordance with such regulations as the Sec-
retary shall prescribe, by increasing the
amounts of direct grants authorized under
this section or by the payment of funds appro-
priated under this Act to the heads of the de-
partments, agencies, and instrumentalities of
the Federal Government responsible for the
administration of the applicable Federal pro-
grams. Notwithstanding any requirement as
to the amount or sources of non-Federal funds
that may otherwise be applicable to the Fed-
eral program involved, funds provided under
this subsection shall be used for the sole pur-
pose of increasing the Federal contribution to
specific projects under such programs above
the fixed maximum portion of the cost of such
project otherwise authorized by the applica-
ble law. The term ‘designated 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 Sec-
retary shall take into consideration the rel-
ative needs of the area and the nature of the
project to be assisted.
‘‘(d) REGULATIONS; FACTORS TO BE CONSID-
ERED IN PRESCRIBING REGULATIONS.—-The Sec-
retary shall prescribe regulations and proce-
dures to carry out this section which will as-
sure that adequate consideration is given to
the relative needs of eligible areas. In pre-
scribing such rules, regulations, and proce-
dures the Secretary shall consider among
other relevant factors—
‘‘(1) the severity of the rates of unem-
ployment in the eligible areas and the du-
ration of such unemployment, and
‘‘(2) the income levels of families and
the extent of underemployment in eligi-
ble areas.
‘‘(e) REVIEW AND COMMENT UPON PROJECTS
BY LOCAL GOVERNMENTAL AUTHORITIES.—The
Secretary shall prescribe regulations which
will assure that appropriate local govern-
mental authorities have been given a reason-
able opportunity to review and comment
upon proposed projects under this section.
‘‘SEC. 102. LIMITATION OF FUNDS EXPENDED IN ANY 1
STATE.
‘‘Not more than 15 percent of the appro-
priations 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 $160,000,000 for fiscal year
1994 and $130,924,000 for fiscal year 1995.
Such sums shall remain available until ex-
pended.
‘‘SEC. 104. FINANCIAL ASSISTANCE FOR SEWER FACILITIES.
‘‘No financial assistance shall be extended
under this Act for sewer or other waste dis-
posal facilities unless the appropriate agency
of the State in which the project is located
certifies that such facilities meet applicable
Federal, State, interstate, or local water qual-
ity 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 designs 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 designs 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
which was 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 political subdivision of any
State, any Indian tribe, or any private or pub-
lic nonprofit organization or association, the
Secretary may purchase evidences of indebt-
edness and make loans to assist in financing—
‘‘(1) the purchase or development of
land and improvements for public works,
public service, or development facility
usage, including public works, public
service, and development facility usage,
to be provided by agencies of the Federal
Government pursuant to legislation re-
quiring that non-Federal entities bear
some part of the cost of providing such
works, service, or usage; and
‘‘(2) the acquisition, construction, re-
habilitation, alteration, expansion, or im-
provement of such facilities, including re-
lated machinery and equipment.
‘‘(b) CONDITIONS.—The Secretary may pro-
vide financial assistance under subsection (a)
only if the Secretary finds that—
‘‘(1) the project for which financial as-
sistance is sought will directly or indi-
rectly—
‘‘(A) tend to improve the opportu-
nities, in the area where such project
is or will be located, for the success-
ful establishment or expansion of in-
dustrial or commercial plants or fa-
cilities,
‘‘(B) otherwise assist in the cre-
ation of additional long-term employ-
ment opportunities for such area, or
‘‘(C) primarily benefit the long-
term unemployed and members of
low-income families;
‘‘(2) the funds requested for such
project are not otherwise available from
private lenders or from other Federal
agencies on terms which in the opinion of
the Secretary will permit the accomplish-
ment of the project;
‘‘(3) the amount of the loan plus the
amount of other available funds for such
project are adequate to ensure the com-
pletion of the project;
‘‘(4) there is a reasonable expectation
of repayment; and
‘‘(5) such area has an approved in-
vestment 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 extensions 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 sec-
tion shall bear interest at a rate not less
than a rate determined by the Secretary
of the Treasury taking into consideration
the current average market yield on out-
standing marketable obligations of the
United States with remaining periods to
maturity comparable to the average ma-
turities of such loans, adjusted to the
nearest 1⁄8 of 1 percent, minus not to ex-
ceed 1⁄2 of 1 percent per annum.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—
There are hereby authorized to be appro-
priated 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 governmental authorities
have been given a reasonable opportunity to
review and comment upon proposed projects
under this section.
‘‘SEC. 202. BUSINESS LOANS AND LOAN GUARANTEES.
‘‘(a) IN GENERAL.—
‘‘(1) FINANCIAL
ASSISTANCE
AUTHOR-
IZED.—Subject to section 401, the Sec-
retary may assist in the financing the
purchase or development of land and fa-
‘‘(A) AUTHORIZATION.—In addition
to any other financial assistance
under this subchapter, the Secretary
may, in the case of any loan guaran-
tee under authority of paragraph (1)
of this section, pay to or on behalf of
the private borrower an amount suffi-
cient to reduce up to 4 percentage
points the interest paid by such bor-
rower on such guaranteed loans.
‘‘(B) MAXIMUM
AMOUNT
OF
BUY-
DOWN.—No payment under this para-
graph 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.—
Payments made to or on behalf of
such borrower shall be made no less
often than annually.
‘‘(3) WORKING CAPITAL LOANS AND GUAR-
ANTEES.—The Secretary may assist in fi-
nancing any industrial or commercial ac-
tivity by—
‘‘(A) 
making 
working 
capital
loans;
‘‘(B) guaranteeing working capital
loans made to private borrowers by
private lending institutions upon ap-
plication of such institution and upon
such terms and conditions as the Sec-
retary may prescribe, except that no
such guarantee shall at any time ex-
ceed 90 percent of the amount of the
outstanding unpaid balance of such
loan;
‘‘(C) 
guaranteeing 
rental 
pay-
ments of leases for buildings and
equipment, except that no such guar-
antee shall exceed 90 percent of the
remaining rental payments required
by the lease; and
‘‘(D) paying those debts with re-
spect 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 des-
ignated area;
‘‘(ii) avoid a significant rise in
unemployment; or
‘‘(iii) create new or increased
employment.
‘‘(b) TERMS AND CONDITIONS.—Financial as-
sistance under this section shall be on such
terms and conditions as the Secretary deter-
mines, subject to the following restrictions
and limitations:
‘‘(1) Such financial assistance shall
not be extended to assist establishments
relocating from 1 area to another or to
assist subcontractors whose purpose is to
divest, or whose economic success is de-
pendent upon divesting, other contrac-
tors or subcontractors of contracts there-
tofore customarily performed by them,
except that this limitation shall not be
construed as prohibiting assistance for
the expansion of an existing business en-
tity through the establishment of a new
branch, affiliate, or subsidiary of such en-
tity if the Secretary finds that the estab-
lishment of such branch, affiliate, or sub-
sidiary will not result in an increase in
unemployment of the area of original lo-
cation or in any other area where such
entity conducts business operations, un-
less the Secretary has reason to believe
that such branch, affiliate, or subsidiary
is being established with the intention of
closing down the operations of the exist-
ing 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 pub-
lic (including Indian tribes), which have
been approved for such assistance 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 instrumentality is di-
rectly concerned with problems of eco-
nomic development in such State or sub-
division.
‘‘(3) The project for which financial
assistance is sought shall be reasonably
calculated to provide more than a tem-
porary alleviation of unemployment or
underemployment within the area in
which the project is or will be located.
‘‘(4) No loan or guarantee may be ex-
tended under this section unless the fi-
nancial assistance applied for is not oth-
erwise available from private lenders or
from other Federal agencies on terms
which in the opinion of the Secretary will
permit 
the 
accomplishment 
of 
the
project.
‘‘(5) The Secretary may not make any
loan without a participation unless the
Secretary determines that the loan can-
not be made on a participation basis.
‘‘(6) No evidences of indebtedness
may be purchased and no loans may be
made or guaranteed unless the Secretary
is determined that there is reasonable as-
surance 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 pur-
chase may be purchased under this sec-
tion, except that this paragraph shall not
apply to securities or obligations re-
ceived by the Secretary as a claimant in
bankruptcy or equitable reorganization
or as a creditor in other proceedings at-
tendant upon insolvency of the obligor.
‘‘(8) Loans made and evidences of in-
debtedness purchased under this section
shall bear interest at a rate not less than
a rate determined by the Secretary of the
Treasury taking into consideration the
current average market yield on out-
standing marketable obligations of the
United States with remaining periods to
maturity comparable to the average ma-
turities 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 aggregate cost to the appli-
cant (excluding all other Federal aid in
connection with the undertaking) of ac-
quiring or developing land and facilities
(including machinery and equipment),
and of constructing, altering, 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 provided under this sec-
tion, shall be sufficient to pay such
aggregate cost;
‘‘(B) not less than 15 percent of
such aggregate 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 secured, the se-
curity for the loan shall be subordi-
nate and inferior to the lien or liens
securing such Federal financial as-
sistance;
‘‘(C) 
except 
with 
respect 
to
projects involving financial participa-
tion by Indian tribes, not less than 5
percent of such aggregate cost shall
be supplied by the State or any agen-
cy, instrumentality, or political sub-
division of a State, or by a community
or area organization which is non-
governmental in character, unless the
Secretary shall determine in accord-
ance with objective standards pre-
scribed by regulation that all or part
of such funds are not reasonably
available to the project because of the
economic distress of the area or for
other good cause, in which case the
Secretary may waive the requirement
of this provision to the extent of such
unavailability, and allow the funds
required by this subsection to be sup-
plied by the applicant or by such
other non-Federal source as may rea-
sonably be available to the project;
and
‘‘(D) to the extent the Secretary
finds such action necessary to en-
courage financial participation in a
particular project by other lenders
and investors, and except as other-
wise provided in subparagraph (B),
any Federal financial assistance ex-
tended under this section may be re-
payable only after other loans made
in connection with such project have
been repaid in full, and the security,
if any, for such Federal financial as-
sistance may be subordinate and infe-
rior 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 established before the date of the enact-
ment of the Economic Development Financing
Act of 1994 shall continue to be available to
the Secretary as a liquidating account as de-
fined under section 502 of the Federal Credit
Reform Act of 1990 for payment of obligations
and costs in connection with financial assist-
ance 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
establish an Office of Strategic Economic De-
velopment Planning and Policy (hereafter in
this section referred to as ‘the Office’).
‘‘(b) DUTIES.—The duties of the head of the
Office are as follows:
‘‘(1) RESEARCH, EVALUATION AND DEM-
ONSTRATION.—To support research, eval-
uation and demonstration projects to
study and assess best practices in eco-
nomic 
development 
and 
to 
examine
trends and changes in economic condi-
tions that affect regional development.
‘‘(2) 
POLICY
DEVELOPMENT.—To 
de-
velop recommendations on both short-
and long-term policies regarding eco-
nomic development issues and programs,
to help foster the diffusion of innovative,
best practices in economic development
throughout 
the 
Department 
of 
Com-
merce.
‘‘(3) COORDINATION.—To take a leading
role in developing and promoting means
for greater coordination among States,
regions and local communities in the de-
sign and implementation of economic de-
velopment strategies, and shall work in
conjunction with Federal agencies on de-
veloping and implementing means for re-
ducing fragmentation and increase co-
ordination among Federal programs that
provide economic development assist-
ance.
‘‘(4) INFORMATION
DISSEMINATION.—To
sponsor and support conferences, work-
shops, and other forums to bring together
the best scholars and practitioners in the
field to effectively disseminate knowl-
edge of the state-of-the-art in economic
development to Federal, State, and local
development organizations. It shall also
disseminate information on all aspects of
economic 
development 
through 
elec-
tronic and printed media, making such
information widely accessible.
‘‘(c) RESEARCH
IN CAUSES
OF LONG-TERM
ECONOMIC DETERIORATION.—
‘‘(1) IN
GENERAL.—To assist in the
long-range accomplishment of the pur-
poses of this Act, the Secretary, in co-
operation with other agencies having
similar functions, shall establish and con-
duct a continuing program of study,
training, and research to—
‘‘(A) assist in determining the
causes 
of 
unemployment, 
under-
employment, underdevelopment, and
chronic depression in the various
areas and regions of the Nation,
‘‘(B) assist in the formulation and
implementation of national, State,
and local programs which will raise
income levels and otherwise produce
solutions to the problems resulting
from these conditions, and
‘‘(C) assist in providing the per-
sonnel needed to conduct such pro-
grams.
‘‘(2) MANNER OF PROVIDING STUDY, AS-
SISTANCE.—The program of study, train-
ing, and research may be conducted by
the Secretary through—
‘‘(A) members of the Secretary’s
staff;
‘‘(B) the payment of funds author-
ized for this section to other depart-
ments or agencies of the Federal Gov-
ernment;
‘‘(C) the employment of private in-
dividuals, partnerships, firms, cor-
porations, or suitable institutions;
‘‘(D) contracts entered into for
such purposes;
‘‘(E) grants to such individuals,
organizations, or institutions as the
Secretary determines to be appro-
priate; or
‘‘(F) 
conferences 
and 
similar
meetings organized for such pur-
poses.
‘‘(3) AVAILABILITY
OF
RESULTS
OF
RE-
SEARCH.—The Secretary shall make avail-
able to interested individuals and organi-
zations the results of such research.
‘‘(4) ANNUAL REPORT OF SECRETARY.—
The Secretary shall include in the annual
report under section 606 a detailed state-
ment concerning the study and research
conducted under this section together
with the Secretary’s findings and conclu-
sions and such recommendations for leg-
islative and other action as the Secretary
may consider appropriate.
‘‘(d) GEOGRAPHIC ANALYSIS TOOL.—
‘‘(1) IN GENERAL.—The Secretary shall,
in cooperation 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 Development Financing Act of
1994, the Secretary shall transmit to Con-
gress a report on use of the computerized
geographic analysis tool developed pur-
suant to paragraph (1) by Federal depart-
ments and agencies.
‘‘(e) INDEPENDENT ADVISORY COMMITTEE.—
The Secretary shall establish an advisory
committee made up of representatives from
major State, local, and nonprofit economic de-
velopment 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
ECONOMIC DEVELOPMENT.—
‘‘(1) IN GENERAL.—The Secretary shall
establish 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 representa-
tives from the Federal agencies involved
in matters that affect regional economic
development.
‘‘(3) DUTIES.—The council shall assist
in providing a unifying framework for
economic and regional development ef-
forts and develop a governmentwide stra-
tegic plan for economic development.
‘‘(g) GRANTS
AND
CONTRACTS
FOR
DEM-
ONSTRATION
PROJECTS; PURPOSES.—The Sec-
retary may make grants, enter into contracts,
or otherwise provide funds for any dem-
onstration project in an eligible area which
the Secretary determines is designed to foster
regional productivity 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
establish the Office of Economic Development
Information (hereafter in this section re-
ferred to as the ‘Office’) within the Office of
Strategic Economic Development Planning
and Policy.
‘‘(b) DUTIES.—The duties of the head of the
Office shall be to—
‘‘(1) serve as a central information
clearinghouse on matters relating to eco-
nomic 
development, 
economic 
adjust-
ment, industrial retention, disaster recov-
ery, and defense conversion programs
and activities of the Federal and State
governments, including political subdivi-
sions of the States; and
‘‘(2) help potential and actual appli-
cants for economic development, eco-
nomic adjustment, disaster recovery, in-
dustrial retention, and defense conver-
sion assistance under Federal, State and
local laws in locating and applying for
such assistance, including financial and
technical assistance.
‘‘(c) INFORMATION DATA BASES.—
‘‘(1) USES.—The Office shall develop
information data bases for use by Federal
departments and agencies, State and
local governmental agencies, public and
private entities, and individuals to assist
such agencies, entities, and individuals in
the process of identifying and applying
for assistance and resources under eco-
nomic 
development, 
economic 
adjust-
ment, disaster recovery, industrial reten-
tion, and defense conversion programs
and activities of the Federal, State, and
local governments.
‘‘(2) SPECIFIC
KINDS
OF
INFORMATION
REQUIRED
TO
BE
INCLUDED.—The data
bases shall include the following kinds of
information:
‘‘(A) A comprehensive compilation
of all relevant information concern-
ing available economic development,
economic adjustment, disaster recov-
ery, industrial retention, and defense
conversion programs of the Federal
Government, including key contact
people, descriptions of the applica-
tion process, eligibility requirements
and criteria, selection and followup
procedures, and other such relevant
information.
‘‘(B) A compilation of major State
and local governmental economic de-
velopment, economic adjustment, dis-
aster relief, industrial retention, and
defense conversion assistance pro-
grams, including lists of appropriate
offices, officers, and contact person-
nel connected with, or involved in,
such programs.
‘‘(C) A compilation of relevant and
available economic data and trends,
including information about the na-
tional, regional and local impacts of
trade agreements, defense spending
and 
downsizing, 
technological
change, and other sources of substan-
tial economic dislocation.
‘‘(D) A compilation of case studies
and ‘best practices’ in economic de-
velopment, adjustment and conver-
sion.
‘‘(E) A compilation of technology
development, deployment, diffusion,
and commercialization programs, as-
sistance and resources provided by
Federal agencies, including listings of
technologies, processes, and other
proprietary rights owned, or held in
part, by the Federal Government, and
other such information as referred to
in section 722 and any other relevant
information, such as major State and
local programs, to assist technology
development, deployment and com-
mercialization in economic develop-
ment, adjustment and conversion ef-
forts.
‘‘(F) A compilation of published
works (books, reports, articles, vid-
eos, and tapes), and selected texts of
such works, related to all facets of
economic development, economic ad-
justment 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
establish several mechanisms to as-
sure easy access by the public and
others to such data bases, and to as-
sure that the data bases be as acces-
sible, user-friendly, culturally neu-
tral, and affordable as possible.
‘‘(B) OUTREACH.—The Office shall
conduct an extensive outreach to
States and communities, and to a
wide range of constituencies, includ-
ing State and local government offi-
cials, chambers of commerce, indus-
trial organizations, labor unions, and
community-based 
organizations, 
to
publicize the existence of the data
banks and other assistance and serv-
ices provided 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 in-
clude the following means:
‘‘(i) A toll-free nationwide tele-
phone number to provide direct
phone access to the public.
‘‘(ii) On-line electronic access
through existing computer net-
work services and publicly avail-
able computer data base access
facilities, such as at repository li-
braries and by direct call-in via
modem.
‘‘(iii) Printed manuals and ori-
entation materials.
‘‘(iv) 
Periodic 
orientation
workshops available to the public.
‘‘(v) On-call information spe-
cialists to address special prob-
lems requiring person-to-person
assistance.
‘‘(d) CONSULTATIVE MEETINGS.—The Office
shall conduct, on an annual basis, consult-
ative meetings and briefings with constitu-
encies from several different types of dis-
tressed areas and regions, drawn from local
and State governments, economic develop-
ment districts, Indian tribes, business, labor,
community and public interest organizations
and academic institutions. Such meetings and
briefings shall be held in these different areas
to introduce the Office’s programs and re-
ceive comments and recommendations con-
cerning the Office’s services and how to ex-
pand 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 cooperation with the heads of appropriate
Federal departments and agencies, develop a
general, simplified application form for grant
assistance under this Act which shall 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 re-
port on use of the form developed 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 du-
ties of the Secretary under this Act, the Sec-
retary 
may 
provide 
technical 
assistance
which would be useful in alleviating or pre-
venting conditions of excessive unemploy-
ment or underemployment to areas which the
Secretary finds have substantial need for
such assistance, including assistance for
project planning and feasibility studies, man-
agement and operational assistance, and stud-
ies evaluating the needs of, and developing
potentialities for, economic growth of such
areas.
‘‘(b) PROCEDURES AND TERMS.—
‘‘(1) MANNER
OF
PROVIDING
ASSIST-
ANCE.—Assistance may be provided by the
Secretary through—
‘‘(A) members of the Secretary’s
staff;
‘‘(B) the payment of funds author-
ized for this section to other depart-
ments or agencies of the Federal Gov-
ernment;
‘‘(C) the employment of private in-
dividuals, partnerships, firms, cor-
porations, or suitable institutions;
‘‘(D) contracts entered into for
such purposes; or
‘‘(E) grants-in-aid to appropriate
public or private nonprofit State,
area, district, or local organizations.
‘‘(2) 
REPAYMENT
TERMS.—The 
Sec-
retary, in the Secretary’s discretion, may
require the repayment of assistance pro-
vided under this subsection and pre-
scribe the terms and conditions of such
repayment.
‘‘(c) GRANTS COVERING ADMINISTRATIVE EX-
PENSES.—
‘‘(1) IN GENERAL.—The Secretary may
make grants to defray not to exceed 75
percent of the administrative expenses of
organizations which he determines to be
qualified to receive grants-in-aid under
subsection (a), except that in the case of
a grant under this subsection to an In-
dian tribe the Secretary is authorized to
defray up to 100 percent of such ex-
penses.
‘‘(2) DETERMINATION
OF
NON-FEDERAL
SHARE.—In determining the amount of the
non-Federal share of administrative costs
or expenses, the Secretary shall give due
consideration to all contributions both in
cash and in kind, fairly evaluated, includ-
ing space, equipment, and services.
‘‘(3) USE
OF
GRANTS
WITH
PLANNING
GRANTS.—Where practicable, grants-in-aid
authorized under this subsection shall be
used in conjunction with other available
planning grants, such as planning activi-
ties described in section 105(a)(13) of the
Housing and Community Development
Act of 1974 and highway planning and re-
search grants authorized under the Fed-
eral Aid Highway Act of 1962, to assure
adequate and effective planning and eco-
nomical use of funds.
‘‘(d) AVAILABILITY OF TECHNICAL INFORMA-
TION; FEDERAL PROCUREMENT.—The Secretary
shall aid areas by furnishing to interested in-
dividuals, communities, industries, and enter-
prises within such areas any assistance, tech-
nical information, market research, or other
forms of assistance, information, or advice
which would be useful in alleviating or pre-
venting conditions of excessive unemploy-
ment or underemployment within such areas.
The Secretary may furnish the procurement
divisions of the various departments, agen-
cies, and other instrumentalities of the Fed-
eral Government with a list containing the
names and addresses of business firms which
are desirous of obtaining Government con-
tracts for the furnishing of supplies or serv-
ices, and designating the supplies and serv-
ices 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 development or-
ganization (including an economic devel-
opment district), make direct grants to
such State, city, other political subdivi-
sion, or organization to pay up to 80 per-
cent of the cost for economic develop-
ment planning.
‘‘(2) PLANNING PROJECTS SPECIFICALLY
INCLUDED.—The planning for cities, other
political subdivisions, and sub-State plan-
ning and development organizations (in-
cluding an economic development dis-
trict) assisted under this section shall in-
clude systematic efforts to reduce unem-
ployment and increase incomes.
‘‘(3) PLANNING PROCESS.—The planning
shall be a continuous process involving
public officials and private citizens in
analyzing local economies, defining de-
velopment goals, determining project op-
portunities, and formulating and imple-
menting a development program.
‘‘(4) COOPERATIVE DEVELOPMENT OF IN-
VESTMENT
STRATEGY.—Any State invest-
ment strategy prepared with assistance
under this section shall be prepared co-
operatively by the State, the political sub-
divisions of the State, and the economic
development districts located in whole or
in part within such State.
‘‘(5) STATE CERTIFICATION.—Upon com-
pletion of any such strategy, the State
shall certify to the Secretary that—
‘‘(A) in the preparation of such
State investment strategy, the local
and economic development district
strategies were considered and, to the
fullest extent possible, such State
strategy is consistent with such local
and economic development district
strategies; and
‘‘(B) such State strategy is consist-
ent with such local and economic de-
velopment district strategies, or, if
such State strategy is not consistent
with such local and economic devel-
opment district strategies, all of the
inconsistencies of the State strategy
with the local and economic develop-
ment district strategies, and the jus-
tification for each of these inconsist-
encies.
‘‘(6) COMPREHENSIVE
PLANNING
PROC-
ESS.—The development of any State in-
vestment strategy shall be a part of a
comprehensive 
planning 
process 
that
shall consider the provisions of public
works to—
‘‘(A) stimulate and channel devel-
opment, economic opportunities, and
choices for individuals;
‘‘(B) support sound land use;
‘‘(C) enhance and protect the en-
vironment including the conservation
and preservation of open spaces and
environmental quality;
‘‘(D) provide public services; and
‘‘(E) balance physical and human
resources 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 ad-
dition to assistance available under sec-
tion 311(c) but shall not supplant such as-
sistance.
‘‘(8) ANNUAL
REPORT
BY
RECIPIENT.—
Each State receiving assistance under
this subsection shall submit to the Sec-
retary an annual report on the planning
process assisted under this subsection.
‘‘(b) COMPLIANCE
WITH
REVIEW
PROCE-
DURE.—The planning assistance authorized
under this title shall be used in conjunction
with any other available Federal planning as-
sistance to assure adequate and effective
planning and economical use of funds.
‘‘SEC. 313. BUSINESS OUTREACH CENTER DEMONSTRATION
PROJECT.
‘‘(a) IN GENERAL.—The Secretary shall con-
duct a project in each of fiscal years 1994
through 1996 with funds made available
under this title for the purpose of demonstrat-
ing methods of assisting isolated small busi-
nesses to access small business services pro-
vided by Federal, State, and local govern-
ments.
‘‘(b) ESTABLISHMENT OF CENTERS.—In con-
ducting the demonstration project under this
section, the Secretary shall establish 3 busi-
ness outreach centers. At least 2 of these busi-
ness outreach centers shall be established in
rural areas.
‘‘(c) PURPOSE OF CENTERS.—It shall be the
purpose of each business outreach center es-
tablished under this section—
‘‘(1) to provide a one-stop clearing-
house to assist isolated small businesses
in accessing small business services pro-
vided by Federal, State, and local govern-
ments; and
‘‘(2) to improve efficiency in the deliv-
ery of such services.
‘‘(d) SERVICES
TO
BE
PROVIDED.—Each
business outreach center established under
this section shall provide the following serv-
ices:
‘‘(1) Outreach to isolated small busi-
nesses.
‘‘(2) Assessment of the need of iso-
lated small businesses for assistance serv-
ices.
‘‘(3) Referral of isolated small busi-
nesses to small business assistance agen-
cies.
‘‘(4) Preparation of materials required
by isolated small businesses for participa-
tion in small business assistance pro-
grams.
‘‘(5) Case management to assure fol-
low up and quality control of business
services.
‘‘(6) 
Coordination 
of 
networking
among isolated small businesses.
‘‘(7) Quality control of small business
assistance services.
‘‘(e) ISOLATED SMALL BUSINESS DEFINED.—
For the purposes of this section, the term ‘iso-
lated small business’ means a small business
that is unable to effectively access small busi-
ness services provided by Federal, State, and
local governments due to linguistic, cultural,
or geographic barriers.
‘‘SEC. 314. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to
carry out this title $37,100,000 for fiscal year
1994 and $50,000,000 for fiscal year 1995. Such
sums shall remain available until expended.
‘‘TITLE IV—ELIGIBILITY AND
INVESTMENT STRATEGIES
‘‘SEC. 401. AREA ELIGIBILITY.
‘‘(a) CERTIFICATION.—In order to be eligi-
ble for assistance under title I or II, an appli-
cant seeking assistance to undertake a project
shall certify, as part of an application 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 fol-
lowing criteria:
‘‘(1) The area has a per capita income
of 80 percent or less of the national aver-
age.
‘‘(2) The area has an unemployment
rate 1 percent 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 subdivisions or bound-
aries) which the Secretary determines
has 1 or more of the following conditions:
‘‘(A) A large concentration of low-
income persons.
‘‘(B) Rural areas having substan-
tial outmigration or substantial eco-
nomic deterioration and unemploy-
ment or underemployment.
‘‘(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 gov-
ernment. Such documentation shall be accept-
ed 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 criteria of subsection (a) shall be subject
to the requirements of subparagraphs (A) and
(C) of section 101(a)(1).
‘‘(d) 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 na-
tional 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 appli-
cation for such assistance, and the Secretary
approves an investment strategy which—
‘‘(1) identifies the economic develop-
ment problems to be addressed using
such assistance;
‘‘(2) identifies past, present, and pro-
jected future economic development in-
vestments in such area and public and
private participants and sources of fund-
ing for such investments;
‘‘(3) sets forth a strategy for address-
ing the economic problems identified
pursuant to paragraph (1) and describes
how the strategy will solve such prob-
lems;
‘‘(4) provides a description of the
project necessary to implement the strat-
egy, 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 ‘eco-
nomic development district’ means—
‘‘(1) an economic development district
designated before the date of enactment
of the Economic Development Financing
Act of 1994 under section 403(a) of the
Public Works and Economic 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 Sec-
retary;
‘‘(B) is of sufficient size or popu-
lation and contains sufficient re-
sources to foster economic develop-
ment on a scale involving more than
1 county; and
‘‘(C) does not contain within its
boundaries any part of another eco-
nomic 
development 
district 
des-
ignated under subparagraph (A).
‘‘SEC. 404. FUNDING.
‘‘Amounts authorized to be appropriated
under other sections of this Act shall be avail-
able for the purposes of carrying out this title.
‘‘TITLE V—ADMINISTRATION
‘‘SEC. 501. APPOINTMENT OF ASSISTANT SECRETARY OF
COMMERCE FOR ECONOMIC DEVELOPMENT;
COMPENSATION.
‘‘(a) ADMINISTRATION
OF
ACT.—The Sec-
retary shall, with the assistance of an Assist-
ant Secretary of Commerce, administer this
Act.
‘‘(b) 
APPOINTMENT
OF
ASSISTANT
SEC-
RETARY.—
‘‘(1) IN
GENERAL.—The Assistant Sec-
retary 
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
appointed under paragraph (1) shall per-
form such functions as the Secretary may
prescribe.
‘‘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 representatives of
labor, management, agriculture, and govern-
ment, 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 depart-
ments and agencies as he may deem appro-
priate 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 satis-
fied that the project for which Federal assist-
ance is granted will be properly and effi-
ciently administered, operated, and main-
tained.
‘‘SEC. 504. EXPEDITED PROCESSING OF APPLICATIONS.
‘‘(a) GUIDELINES.—Not later than 60 days
after the date of the enactment of the Eco-
nomic Development Financing Act of 1994, the
Assistant Secretary for Economic Develop-
ment shall—
‘‘(1) publish guidelines to expedite the
processing 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 Represent-
atives and the Committee on Environ-
ment and Public Works and the Commit-
tee on Banking, Housing, and Urban Af-
fairs of the Senate a report containing
such guidelines.
‘‘(1) ESTABLISHMENT.—The Secretary
shall establish criteria for use in conduct-
ing evaluations under subsection (a).
‘‘(2) CRITERIA
FOR
UNIVERSITY
CEN-
TERS.—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 disseminating results of the center’s
activities.
‘‘(3) CRITERIA FOR ECONOMIC DEVELOP-
MENT DISTRICTS.—The criteria for evalua-
tion of an economic development district
shall, at a minimum, provide for an as-
sessment of management standards, fi-
nancial accountability, and program per-
formance.
‘‘(c) PEER REVIEW.—In conducting an eval-
uation of a university center under sub-
section (a), the Secretary shall provide for the
participation of at least 1 other university
center on a cost-reimbursement basis.
‘‘TITLE VI—MISCELLANEOUS
‘‘SEC. 601. POWERS OF SECRETARY.
‘‘(a) IN GENERAL.—In performing the du-
ties of the Secretary under this Act, the Sec-
retary 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 tes-
timony, as the Secretary may deem advis-
able;
‘‘(3) request directly from any execu-
tive department, bureau, agency, board,
commission, office, independent estab-
lishment, or instrumentality information,
suggestions, 
estimates, 
and 
statistics
needed to carry out the purposes of this
Act; and each department, bureau, agen-
cy, board, commission, office, establish-
ment or instrumentality is authorized to
furnish such information, suggestions, es-
timates, and statistics directly to the Sec-
retary;
‘‘(4) under regulations prescribed by
the Secretary, assign or sell at public or
private sale, or otherwise dispose of for
cash or credit, in the Secretary’s discre-
tion and upon such terms and conditions
and for such consideration as the Sec-
retary determines to be reasonable, any
evidence of debt, contract, claim, per-
sonal property, or security assigned to or
held by the Secretary in connection with
grants or loans made or evidences of in-
debtedness purchased 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 obli-
gations 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 in-
debtedness purchased under this Act, be-
yond 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 liquidation of such
loan or evidence of indebtedness;
‘‘(6) deal with, complete, renovate, im-
prove, modernize, insure, rent, or sell for
cash or credit, upon such terms and con-
ditions and for such consideration as the
Secretary determines to be reasonable,
any real or personal property conveyed
to, or otherwise acquired by, the Sec-
retary in connection with grants or loans
made or evidences of indebtedness pur-
chased under this Act;
‘‘(7) pursue to final collection, by way
of compromise or other administrative
action, prior to reference to the Attorney
General, all claims against 3d parties as-
signed 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 property (real, personal, or mixed,
tangible or intangible), whenever nec-
essary or appropriate to the conduct of
activities under this Act;
‘‘(9) in addition to any powers, func-
tions, privileges, and immunities other-
wise vested in the Secretary, take any ac-
tion, including the procurement of the
services of attorneys by contract, deter-
mined by the Secretary to be necessary
or desirable in making, purchasing, serv-
icing, compromising, modifying, liquidat-
ing, or otherwise administratively deal-
ing with or realizing on loans made or
evidences 
of 
indebtedness 
purchased
under this Act;
‘‘(10) employ experts and consultants
or organizations 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 ex-
penses (including per diem in lieu of sub-
sistence) as authorized by section 5703 of
title 5 for persons in the Government
service employed intermittently, while so
employed, except that contracts for such
employment may be renewed annually;
‘‘(11) sue and be sued in any court of
record of a State having general jurisdic-
tion or in any United States district
court, and jurisdiction is conferred upon
such district court to determine such
controversies 
without 
regard 
to 
the
amount in controversy; but no attach-
ment, injunction, garnishment, or other
similar process, mesne or final, shall be
issued against the Secretary or his prop-
erty; and
‘‘(12) establish such regulations and
procedures as the Secretary may deem
appropriate in carrying out the provi-
sions of this Act.
‘‘(b) DEFICIENCY JUDGMENTS.—The author-
ity 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 Sec-
retary.
‘‘(c) INAPPLICABILITY OF CERTAIN OTHER RE-
QUIREMENTS.—Section 3709 of the Revised
Statutes of the United States shall not apply
to any contract of hazard 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 EXECU-
TION.—The power to convey and to execute, in
the name of the Secretary, deeds of convey-
ance, deeds of release, assignments and satis-
factions of mortgages, and any other written
instrument relating to real or personal prop-
erty 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 Sec-
retary for such purpose, without the execu-
tion of any express delegation 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. TRANSFER OF FUNCTIONS OF AREA REDEVELOP-
MENT ADMINISTRATION.
‘‘The functions, powers, duties, and au-
thorities and the assets, funds, contracts,
loans, liabilities, commitments, authoriza-
tions, allocations, and records which are vest-
ed in or authorized to be transferred to the
Secretary of the Treasury under section 29(b)
of the Area Redevelopment Act, and all func-
tions, powers, duties, and authorities under
section 29(c) of such Act are hereby vested in
the Secretary.
‘‘SEC. 603. SEPARABILITY.
‘‘Notwithstanding any other evidence of
the intent of Congress, it is hereby declared
to be the intent of Congress that if any provi-
sion of this Act or the application thereof to
any persons or circumstances shall be ad-
judged by any court of competent jurisdiction
to be invalid, such judgment 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 oper-
ation to the provision of this Act or the appli-
cation thereof to the persons and cir-
cumstances directly involved in the con-
troversy in which such judgment shall have
been rendered.
‘‘SEC. 604. 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. 605. ANNUAL REPORT TO CONGRESS.
‘‘The Secretary shall make a comprehen-
sive and detailed annual report to the Con-
gress of his operations under this Act for each
fiscal year beginning with the fiscal year end-
ing September 30, 1995. Such report shall be
printed and shall be transmitted to the Con-
gress not later than July 1 of the year follow-
ing the fiscal year with respect to which such
report is made.
‘‘SEC. 606. USE OF OTHER FACILITIES.
‘‘(a) DELEGATION OF FUNCTIONS TO OTHER
FEDERAL
DEPARTMENTS
AND
AGENCIES.—The
Secretary may delegate to the heads of other
departments and agencies of the Federal Gov-
ernment any of the Secretary’s functions,
powers, and duties under this Act as he may
deem appropriate, and to authorize the re-
delegation of such functions, powers, and du-
ties by the heads of such departments and
agencies.
‘‘(b) DEPARTMENT AND AGENCY EXECUTION
OF DELEGATED AUTHORITY.—Departments and
agencies of the Federal Government shall ex-
ercise their powers, duties, and functions in
such manner as will assist in carrying out the
objectives of this Act.
‘‘(c) TRANSFER OF FUNDS.—
‘‘(1) 
TRANSFER
BETWEEN
DEPART-
MENTS.—Funds authorized to be appro-
priated under this Act may be trans-
ferred between departments and agencies
of the Government, if such funds are used
for the purposes for which they are spe-
cifically authorized and appropriated.
‘‘(2) TRANSFER
FOR
OTHER
PURPOSES
UNDER THIS ACT.—Funds authorized to be
appropriated under this Act may be
transferred 
between 
functions 
estab-
lished under different titles of this Act, if
such funds are used for the purposes for
which they are specifically authorized
and appropriated. Such transferred funds
shall remain available until expended,
and may be transferred to and merged
with the appropriations under the head-
ing ‘salaries and expenses’ by the Sec-
retary to the extent necessary to admin-
ister the program.
‘‘(d) FUNDS TRANSFERRED FROM OTHER DE-
PARTMENTS AND AGENCIES.—In order to carry
out the objectives of this Act, the Secretary
may accept transfers of funds from other de-
partments and agencies of the Federal Gov-
ernment if the funds are used for the pur-
poses for which (and in accordance with the
terms under which) the funds are specifically
authorized and appropriated. Such trans-
ferred funds shall remain available until ex-
pended, and may be transferred to and
merged with the appropriations under the
heading ‘salaries and expenses’ by the Sec-
retary to the extent necessary to administer
the program.
‘‘SEC. 607. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are hereby authorized to be appro-
priated 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 appro-
priated to carry out those provisions of the
Act for which specific authority for appro-
priations is not otherwise provided in this Act
not to exceed $36,000,000 for the fiscal year
ending September 30, 1995. Appropriations
authorized under this Act shall remain avail-
able until expended unless otherwise pro-
vided by appropriations Acts. Amounts au-
thorized to be appropriated under this sec-
tion may be used to support a personnel 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 appropriated to carry out
the purposes of this Act are authorized to be
expended for the payment of all obligations
and expenditures arising from actions to pro-
tect the Government’s interest in grant prop-
erty.
‘‘SEC. 608. PENALTIES.
‘‘(a) FALSE STATEMENTS; SECURITY OVER-
VALUATION.—Whoever makes any statement
knowing it to be false, or whoever willfully
100
overvalues any security, for the purpose of
obtaining for such person or for any applicant
any financial assistance under this Act or any
extension of any such assistance by renewal,
deferment, or action, or otherwise, or the ac-
ceptance, release, or substitution of security
for such assistance, or for the purpose of in-
fluencing in any way the action of the Sec-
retary, or for the purpose of obtaining money,
property, or anything of value, under this Act,
shall be fined 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 ca-
pacity with the Secretary, in the administra-
tion 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 Sec-
retary or any other body politic or cor-
101
porate, or any individual, or to deceive
any officer, auditor, or examiner, makes
any false entry in any book, report, or
statement of or to the Secretary, or with-
out 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 partici-
pates 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 informa-
tion concerning any future action or plan
of the Secretary which might affect the
value of securities, or having such knowl-
edge invests or speculates, directly or in-
directly, in the securities or property of
any company or corporation receiving
loans, grants, or other assistance from
the Secretary,
102
shall be fined under title 18, United States
Code, imprisoned for not more than 5 years,
or both.
‘‘SEC. 609. EMPLOYMENT OF EXPEDITERS AND ADMINIS-
TRATIVE EMPLOYEES.
‘‘No financial assistance shall be extended
by the Secretary under this Act to any busi-
ness 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 ex-
pediting applications made to the Sec-
retary 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 business enterprise, for a period of
2 years after such assistance is rendered
by the Secretary to such business enter-
prise, to refrain from employing, ten-
dering any office or employment to, or re-
taining for professional services, any per-
son who, on the date such assistance or
103
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 Sec-
retary 
determines 
involves 
discretion
with respect to the granting of assistance
under this Act.
‘‘SEC. 610. LABOR STANDARDS; RATE OF WAGES; ASSUR-
ANCE OF MAINTENANCE OF STANDARDS; EN-
FORCEMENT.
‘‘All laborers and mechanics employed by
contractors or subcontractors on projects as-
sisted by the Secretary under this Act shall be
paid wages at rates not less than those pre-
vailing on similar construction in the locality
as determined by the Secretary of Labor in ac-
cordance with the Act of March 3, 1931,
known as the Davis-Bacon Act. The Secretary
shall not extend any financial assistance
under this Act for such a project without first
obtaining adequate assurance that these
labor standards will be maintained upon the
construction work. The Secretary of Labor
shall have, with respect to the labor stand-
104
ards 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. 611. 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 Com-
merce a list of applications approved for fi-
nancial assistance under this Act, which shall
be kept available for public inspection during
the regular business hours of the Department
of Commerce.
‘‘(b) POSTING TO LIST.—The following infor-
mation 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.
105
‘‘(2) The amount and duration of the
loan or grant for which application is
made.
‘‘(3) The purposes for which the pro-
ceeds of the loan or grant are to be used.
‘‘(4) A general description of the secu-
rity offered in the case of a loan.
‘‘SEC. 612. RECORDS AND AUDIT.
‘‘(a) RECORDKEEPING AND DISCLOSURE RE-
QUIREMENTS.—Each recipient of assistance
under this Act shall keep such records as the
Secretary shall prescribe, including records
which fully disclose the amount and the dis-
position by such recipient of the proceeds of
such assistance, the total cost of the project
or undertaking in connection 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 Comptrol-
ler General of the United States, or any of
their duly authorized representatives, shall
106
have access for the purpose of audit and ex-
amination to any books, documents, papers,
and records of the recipient that are perti-
nent to assistance received under this Act.
‘‘SEC. 613. PROHIBITION AGAINST A STATUTORY CON-
STRUCTION WHICH MIGHT CAUSE DIMINU-
TION IN OTHER FEDERAL ASSISTANCE.
‘‘All financial and technical assistance au-
thorized under this Act shall be in addition to
any Federal assistance previously authorized,
and no provision hereof shall be construed as
authorizing or permitting any reduction or
diminution in the proportional amount of
Federal assistance to which any State or any
other entity eligible under this Act would oth-
erwise be entitled under the provisions of any
other Act.
‘‘SEC. 614. ACCEPTANCE OF APPLICANTS’ CERTIFICATIONS.
‘‘The Secretary may accept, when deemed
appropriate, the applicants’ certifications to
meet the requirements of this Act.
107
‘‘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 economic development and adjust-
ment assistance programs to help State and
local areas meet special needs arising from
actual or threatened severe unemployment
arising from economic dislocation, including
unemployment arising from actions of the
Federal Government and from compliance
with environmental requirements which re-
move economic activities from a locality, and
economic adjustment problems resulting from
severe changes in economic conditions (in-
cluding long-term economic deterioration),
and to encourage cooperative intergovern-
mental action to prevent or solve economic
adjustment problems. Nothing in this title is
intended to replace the efforts of the eco-
nomic adjustment program of the Department
of Defense.
108
‘‘SEC. 702. ELIGIBLE RECIPIENT DEFINED.
‘‘As used in this title, the term ‘eligible re-
cipient’ means an economic development dis-
trict (as defined in section 411), an Indian
tribe, a State, a city or other political subdivi-
sion of a State, or a consortium of such politi-
cal subdivisions, or a public or private non-
profit organization 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 experienced, 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 (includ-
ing those caused by any action or de-
cision of the Federal Government); or
‘‘(B) the Secretary determines has
demonstrated long-term economic de-
terioration, to carry out or develop a
plan which—
109
‘‘(i) meets the requirements of
subsection (b); and
‘‘(ii) is approved by the Sec-
retary to use such grants for any
of the following:
‘‘(I) Public facilities.
‘‘(II) Public services.
‘‘(III) 
Business 
develop-
ment.
‘‘(IV) Industrial retention.
‘‘(V) Planning.
‘‘(VI) Research.
‘‘(VII) 
Technical 
assist-
ance.
‘‘(VIII) Administrative ex-
penses.
‘‘(IX) Training.
‘‘(X) Relocation of individ-
uals and businesses.
‘‘(XI) Assistance to busi-
ness through trade adjust-
ment assistance centers.
‘‘(XII) 
Other 
assistance
which demonstrably furthers
the 
economic 
development
110
and adjustment objectives of
this title.
‘‘(2) DIRECT
EXPENDITURE
OR
REDIS-
TRIBUTION
BY
RECIPIENT.—Grants under
paragraph (1) may be used in direct ex-
penditures by the eligible recipient 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 re-
search or provide technical assistance for
purposes of this title directly 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 unless the plan—
111
‘‘(1) identifies each economic develop-
ment 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 carrying out each such planned activ-
ity;
‘‘(4) contains assurances satisfactory
to the Secretary that the proceeds from
the repayment of loans made by the eligi-
ble recipient with funds granted under
this title will be used for economic devel-
opment or adjustment; and
‘‘(5) be in such form and contain such
additional information as the Secretary
shall prescribe.
‘‘(c) COORDINATION
OF
ACTIVITIES
WITH
OTHER FEDERAL PROGRAMS, REGIONAL COMMIS-
SIONS, STATES, ETC.—The Secretary to the ex-
tent practicable shall coordinate the activities
relating to the requirements for plans and
making grants, loans, and loan guarantees
under this title with other Federal programs,
112
States, economic development districts and
other appropriate planning and development
organizations.
‘‘(d) PRIORITIZING NEEDS
AND SELECTION
CRITERIA FOR ASSISTANCE.—
‘‘(1) IN GENERAL.—The Secretary shall
prescribe regulations and procedures to
carry out this title which establish a
method to prioritize applications and
award funding in a manner which takes
into consideration the relative needs of
eligible areas and the capacity of the ap-
plicant organizations.
‘‘(2) FACTORS
TO
BE
CONSIDERED.—In
prescribing such regulations and proce-
dures the Secretary shall consider among
other relevant factors—
‘‘(A) the severity of the current
and anticipated rates of unemploy-
ment 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;