IB 
Union Calendar No. 202 
110TH CONGRESS 
1ST SESSION H. R. 3246 
[Report No. 110–321, Part I] 
To amend title 40, United States Code, to provide a comprehensive regional 
approach to economic and infrastructure development in the most se-
verely economically distressed regions in the Nation. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 31, 2007 
Mr. OBERSTAR (for himself, Ms. NORTON, Mr. COSTELLO, Mr. MCHUGH, Mr. 
ALLEN, Mr. MICHAUD, Ms. SHEA-PORTER, Mr. HODES, Mr. HAYES, Mr. 
RODRIGUEZ, Mr. FILNER, Mr. GRIJALVA, Mr. ARCURI, Mr. LOEBSACK, 
Mr. BOSWELL, Mr. COHEN, Mr. ORTIZ, and Mr. JEFFERSON) introduced 
the following bill; which was referred to the Committee on Transportation 
and Infrastructure, and in addition to the Committee on Financial Serv-
ices, for a period to be subsequently determined by the Speaker, in each 
case for consideration of such provisions as fall within the jurisdiction of 
the committee concerned 
SEPTEMBER 7, 2007 
Additional sponsor: Mr. MCINTYRE 
SEPTEMBER 7, 2007 
Reported from the Committee on Transportation and Infrastructure with an 
amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
SEPTEMBER 7, 2007 
Committee on Financial Services discharged; committed to the Committee of 
the Whole House on the State of the Union and ordered to be printed 
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[For text of introduced bill, see copy of bill as introduced on July 31, 2007] 
A BILL 
To amend title 40, United States Code, to provide a com-
prehensive regional approach to economic and infrastruc-
ture development in the most severely economically dis-
tressed regions in the Nation. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Regional Economic and 
Infrastructure Development Act of 2007’’. 
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—Congress finds that— 
(1) certain regions of the Nation, including Ap-
palachia, the Mississippi Delta Region, the Northern 
Great Plains Region, the Southeast Crescent Region, 
the Southwest Border Region, the Northern Border 
Region, and rural Alaska, have suffered from chronic 
distress far above the national average; 
(2) an economically distressed region can suffer 
unemployment and poverty at a rate that is 150 per-
cent of the national average; and 
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(3) regional commissions are unique Federal- 
State partnerships that can provide targeted resources 
to alleviate pervasive economic distress. 
(b) PURPOSES.—The purposes of this Act are— 
(1) to provide a comprehensive regional ap-
proach to economic and infrastructure development in 
the most severely economically distressed regions in 
the Nation; and 
(2) to ensure that the most severely economically 
distressed regions in the Nation have the necessary 
tools to develop the basic building blocks for economic 
development, such as transportation and basic public 
infrastructure, job skills training, and business devel-
opment. 
SEC. 3. REGIONAL ECONOMIC AND INFRASTRUCTURE DE-
VELOPMENT. 
(a) IN GENERAL.—Title 40, United States Code, is 
amended— 
(1) by redesignating subtitle V as subtitle VI; 
and 
(2) by inserting after subtitle IV the following: 
‘‘Subtitle V—Regional Economic 
and Infrastructure Development 
‘‘Chapter 
Sec.
‘‘151. GENERAL PROVISIONS ................................................................... 15101
‘‘153. REGIONAL COMMISSIONS .............................................................. 15301
‘‘155. FINANCIAL ASSISTANCE ................................................................ 15501
‘‘157. ADMINISTRATIVE PROVISIONS ....................................................
15701 
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‘‘CHAPTER 151—GENERAL PROVISIONS 
‘‘Sec. 
‘‘15101. Definitions. 
‘‘§ 15101. Definitions 
‘‘In this subtitle, the following definitions apply: 
‘‘(1) 
COMMISSION.—The 
term 
‘Commission’ 
means a Commission established under section 15301. 
‘‘(2) LOCAL DEVELOPMENT DISTRICT.—The term 
‘local development district’ means an entity that— 
‘‘(A)(i) is an economic development district 
that is— 
‘‘(I) in existence on the date of enact-
ment of this chapter; and 
‘‘(II) located in the region; or 
‘‘(ii) if an entity described in clause (i) does 
not exist— 
‘‘(I) is organized and operated in a 
manner that ensures broad-based commu-
nity participation and an effective oppor-
tunity for local officials, community lead-
ers, and the public to contribute to the de-
velopment and implementation of programs 
in the region; 
‘‘(II) is governed by a policy board 
with at least a simple majority of members 
consisting of— 
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‘‘(aa) elected officials; or 
‘‘(bb) designees or employees of a 
general purpose unit of local govern-
ment that have been appointed to rep-
resent the unit of local government; 
and 
‘‘(III) is certified by the Governor or 
appropriate State officer as having a char-
ter or authority that includes the economic 
development of counties, portions of coun-
ties, or other political subdivisions within 
the region; and 
‘‘(B) has not, as certified by the Federal Co-
chairperson— 
‘‘(i) 
inappropriately 
used 
Federal 
grant funds from any Federal source; or 
‘‘(ii) appointed an officer who, during 
the period in which another entity inappro-
priately used Federal grant funds from any 
Federal source, was an officer of the other 
entity. 
‘‘(3) FEDERAL
GRANT
PROGRAM.—The term 
‘Federal grant program’ means a Federal grant pro-
gram to provide assistance in carrying out economic 
and community development activities. 
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‘‘(4) INDIAN TRIBE.—The term ‘Indian tribe’ has 
the meaning given the term in section 4 of the Indian 
Self-Determination and Education Assistance Act (25 
U.S.C. 450b). 
‘‘(5) NONPROFIT ENTITY.—The term ‘nonprofit 
entity’ means any entity with tax-exempt or non-
profit status, as defined by the Internal Revenue 
Service, that has been formed for the purpose of eco-
nomic development. 
‘‘(6) REGION.—The term ‘region’ means the area 
covered by a Commission as described in subchapter 
II of chapter 157. 
‘‘CHAPTER 153—REGIONAL COMMISSIONS 
‘‘Sec. 
‘‘15301. Establishment, membership, and employees. 
‘‘15302. Decisions. 
‘‘15303. Functions. 
‘‘15304. Administrative powers and expenses. 
‘‘15305. Meetings. 
‘‘15306. Personal financial interests. 
‘‘15307. Tribal representation on Northern Great Plains Regional Commission. 
‘‘15308. Tribal participation. 
‘‘15309. Annual report. 
‘‘§ 15301. Establishment, membership, and employees 
‘‘(a) ESTABLISHMENT.—There are established the fol-
lowing regional Commissions: 
‘‘(1) The Delta Regional Commission. 
‘‘(2) The Northern Great Plains Regional Com-
mission. 
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‘‘(2) ALTERNATE FEDERAL COCHAIRPERSONS.— 
Each Federal Cochairperson’s alternate shall be com-
pensated by the Federal Government at level V of the 
Executive Schedule as set out in section 5316 of title 
5. 
‘‘(3) STATE MEMBERS AND ALTERNATES.—Each 
State member and alternate shall be compensated by 
the State that they represent at the rate established by 
the laws of that State. 
‘‘(d) EXECUTIVE DIRECTOR AND STAFF.— 
‘‘(1) IN GENERAL.—A Commission shall appoint 
and fix the compensation of an executive director and 
such other personnel as are necessary to enable the 
Commission to carry out its duties. Compensation 
under this paragraph may not exceed the maximum 
rate of basic pay established for the Senior Executive 
Service under section 5382 of title 5, including any 
applicable locality-based comparability payment that 
may be authorized under section 5304(h)(2)(C) of that 
title. 
‘‘(2) EXECUTIVE DIRECTOR.—The executive di-
rector shall be responsible for carrying out the admin-
istrative duties of the Commission, directing the Com-
mission staff, and such other duties as the Commis-
sion may assign. 
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‘‘(e) NO FEDERAL EMPLOYEE STATUS.—No member, 
alternate, officer, or employee of a Commission (other than 
the Federal Cochairperson, the alternate Federal Cochair-
person, staff of the Federal Cochairperson, and any Federal 
employee detailed to the Commission) shall be considered 
to be a Federal employee for any purpose. 
‘‘§ 15302. Decisions 
‘‘(a) REQUIREMENTS FOR APPROVAL.—Except as pro-
vided in section 15304(c)(3), decisions by the Commission 
shall require the affirmative vote of the Federal Cochair-
person and a majority of the State members (exclusive of 
members representing States delinquent under section 
15304(c)(3)(C)). 
‘‘(b) CONSULTATION.—In matters coming before the 
Commission, the Federal Cochairperson shall, to the extent 
practicable, consult with the Federal departments and agen-
cies having an interest in the subject matter. 
‘‘(c) QUORUMS.—A Commission shall determine what 
constitutes a quorum for Commission meetings; except 
that— 
‘‘(1) any quorum shall include the Federal Co-
chairperson or the alternate Federal Cochairperson; 
and 
‘‘(2) a State alternate member shall not be 
counted toward the establishment of a quorum. 
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‘‘(d) PROJECTS AND GRANT PROPOSALS.—The ap-
proval of project and grant proposals shall be a responsi-
bility of each Commission and shall be carried out in ac-
cordance with section 15503. 
‘‘§ 15303. Functions 
‘‘A Commission shall— 
‘‘(1) assess the needs and assets of its region 
based on available research, demonstration projects, 
investigations, assessments, and evaluations of the re-
gion prepared by Federal, State, and local agencies, 
universities, local development districts, and other 
nonprofit groups; 
‘‘(2) develop, on a continuing basis, comprehen-
sive and coordinated economic and infrastructure de-
velopment strategies to establish priorities and ap-
prove grants for the economic development of its re-
gion, giving due consideration to other Federal, State, 
and local planning and development activities in the 
region; 
‘‘(3) not later than one year after the date of en-
actment of this section, and after taking into account 
State plans developed under section 15502, establish 
priorities in an economic and infrastructure develop-
ment plan for its region, including 5-year regional 
outcome targets; 
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‘‘(4)(A) enhance the capacity of, and provide 
support for, local development districts in its region; 
or 
‘‘(B) if no local development district exists in an 
area in a participating State in the region, foster the 
creation of a local development district; 
‘‘(5) encourage private investment in industrial, 
commercial, and other economic development projects 
in its region; 
‘‘(6) cooperate with and assist State governments 
with the preparation of economic and infrastructure 
development plans and programs for participating 
States; 
‘‘(7) formulate and recommend to the Governors 
and legislatures of States that participate in the 
Commission forms of interstate cooperation and, 
where appropriate, international cooperation; and 
‘‘(8) work with State and local agencies in devel-
oping appropriate model legislation to enhance local 
and regional economic development. 
‘‘§ 15304. Administrative powers and expenses 
‘‘(a) POWERS.—In carrying out its duties under this 
subtitle, a Commission may— 
‘‘(1) hold such hearings, sit and act at such 
times and places, take such testimony, receive such 
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evidence, and print or otherwise reproduce and dis-
tribute a description of the proceedings and reports 
on actions by the Commission as the Commission con-
siders appropriate; 
‘‘(2) authorize, through the Federal or State Co-
chairperson or any other member of the Commission 
designated by the Commission, the administration of 
oaths if the Commission determines that testimony 
should be taken or evidence received under oath; 
‘‘(3) request from any Federal, State, or local 
agency such information as may be available to or 
procurable by the agency that may be of use to the 
Commission in carrying out the duties of the Com-
mission; 
‘‘(4) adopt, amend, and repeal bylaws and rules 
governing the conduct of business and the perform-
ance of duties by the Commission; 
‘‘(5) request the head of any Federal agency, 
State agency, or local government to detail to the 
Commission such personnel as the Commission re-
quires to carry out its duties, each such detail to be 
without loss of seniority, pay, or other employee sta-
tus; 
‘‘(6) provide for coverage of Commission employ-
ees in a suitable retirement and employee benefit sys-
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tem by making arrangements or entering into con-
tracts with any participating State government or 
otherwise providing retirement and other employee 
coverage; 
‘‘(7) accept, use, and dispose of gifts or donations 
or services or real, personal, tangible, or intangible 
property; 
‘‘(8) enter into and perform such contracts, coop-
erative agreements, or other transactions as are nec-
essary to carry out Commission duties, including any 
contracts or cooperative agreements with a depart-
ment, agency, or instrumentality of the United States, 
a State (including a political subdivision, agency, or 
instrumentality of the State), or a person, firm, asso-
ciation, or corporation; and 
‘‘(9) maintain a government relations office in 
the District of Columbia and establish and maintain 
a central office at such location in its region as the 
Commission may select. 
‘‘(b) FEDERAL AGENCY COOPERATION.—A Federal 
agency shall— 
‘‘(1) cooperate with a Commission; and 
‘‘(2) provide, to the extent practicable, on request 
of the Federal Cochairperson, appropriate assistance 
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‘‘§ 15305. Meetings 
‘‘(a) INITIAL MEETING.—Each Commission shall hold 
an initial meeting not later than 180 days after the date 
of enactment of this section. 
‘‘(b) ANNUAL MEETING.—Each Commission shall con-
duct at least 1 meeting each year with the Federal Cochair-
person and at least a majority of the State members present. 
‘‘(c) ADDITIONAL MEETINGS.—Each Commission shall 
conduct additional meetings at such times as it determines 
and may conduct such meetings by electronic means. 
‘‘§ 15306. Personal financial interests 
‘‘(a) CONFLICTS OF INTEREST.— 
‘‘(1) NO ROLE ALLOWED.—Except as permitted 
by paragraph (2), an individual who is a State mem-
ber or alternate, or an officer or employee of a Com-
mission, shall not participate personally and substan-
tially as a member, alternate, officer, or employee of 
the Commission, through decision, approval, dis-
approval, recommendation, request for a ruling, or 
other determination, contract, claim, controversy, or 
other matter in which, to the individual’s knowledge, 
any of the following has a financial interest: 
‘‘(A) The individual. 
‘‘(B) The individual’s spouse, minor child, 
or partner. 
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‘‘(C) An organization (except a State or po-
litical subdivision of a State) in which the indi-
vidual is serving as an officer, director, trustee, 
partner, or employee. 
‘‘(D) Any person or organization with 
whom the individual is negotiating or has any 
arrangement concerning prospective employment. 
‘‘(2) EXCEPTION.—Paragraph (1) shall not 
apply if the individual, in advance of the proceeding, 
application, request for a ruling or other determina-
tion, contract, claim controversy, or other particular 
matter presenting a potential conflict of interest— 
‘‘(A) advises the Commission of the nature 
and circumstances of the matter presenting the 
conflict of interest; 
‘‘(B) makes full disclosure of the financial 
interest; and 
‘‘(C) receives a written decision of the Com-
mission that the interest is not so substantial as 
to be considered likely to affect the integrity of 
the services that the Commission may expect 
from the individual. 
‘‘(3) VIOLATION.—An individual violating this 
subsection shall be fined under title 18, imprisoned 
for not more than 1 year, or both. 
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‘‘(b) STATE MEMBER OR ALTERNATE.—A State mem-
ber or alternate member may not receive any salary, or any 
contribution to, or supplementation of, salary, for services 
on a Commission from a source other than the State of the 
member or alternate. 
‘‘(c) DETAILED EMPLOYEES.— 
‘‘(1) IN GENERAL.—No person detailed to serve a 
Commission shall receive any salary, or any contribu-
tion to, or supplementation of, salary, for services 
provided to the Commission from any source other 
than the State, local, or intergovernmental depart-
ment or agency from which the person was detailed 
to the Commission. 
‘‘(2) VIOLATION.—Any person that violates this 
subsection shall be fined under title 18, imprisoned 
not more than 1 year, or both. 
‘‘(d) FEDERAL COCHAIRMAN, ALTERNATE TO FED-
ERAL COCHAIRMAN, AND FEDERAL OFFICERS AND EMPLOY-
EES.—The Federal Cochairman, the alternate to the Fed-
eral Cochairman, and any Federal officer or employee de-
tailed to duty with the Commission are not subject to this 
section but remain subject to sections 202 through 209 of 
title 18. 
‘‘(e) RESCISSION.—A Commission may declare void 
any contract, loan, or grant of or by the Commission in 
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relation to which the Commission determines that there has 
been a violation of any provision under subsection (a)(1), 
(b), or (c), or any of the provisions of sections 202 through 
209 of title 18. 
‘‘§ 15307. Tribal representation on Northern Great 
Plains Regional Commission 
‘‘(a) TRIBAL COCHAIRPERSON.— 
‘‘(1) APPOINTMENT.—In addition to the members 
specified in section 15301(b)(1), the membership of 
the Northern Great Plains Regional Commission shall 
include a Tribal Cochairperson, to be appointed by 
the President, by and with the advice and consent of 
the Senate. The Tribal Cochairperson shall be a mem-
ber of an Indian tribe in the Commission’s region. 
‘‘(2) DUTIES.—In addition to the Federal Co-
chairperson and State Cochairperson, the Commission 
shall be headed by the Tribal Cochairperson, who 
shall serve as a liaison between the governments of In-
dian tribes in the region and the Commission. 
‘‘(b) ALTERNATE TRIBAL COCHAIRPERSON.— 
‘‘(1) APPOINTMENT.—The President shall ap-
point an alternate to the Tribal Cochairperson. 
‘‘(2) DUTIES.—The alternate Tribal Cochair-
person, when not actively serving as an alternate for 
the Tribal Cochairperson, shall perform such func-
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tions and duties as are delegated by the Tribal Co-
chairperson. 
‘‘(3) VOTING.—The alternate Tribal Cochair-
person shall vote in the case of the absence, death, dis-
ability, removal, or resignation of the Tribal Cochair-
person. 
‘‘(c) COMPENSATION.— 
‘‘(1) TRIBAL COCHAIRPERSON.—The Tribal Co-
chairperson shall be compensated by the Federal Gov-
ernment at level III of the Executive Schedule as set 
out in section 5314 of title 5. 
‘‘(2) ALTERNATE TRIBAL COCHAIRPERSON.—The 
Tribal Cochairperson’s alternate shall be compensated 
by the Federal Government at level V of the Executive 
Schedule as set out in section 5316 of title 5. 
‘‘(d) EXPENSES OF TRIBAL COCHAIRPERSON.—All ex-
penses of the Tribal Cochairperson, including expenses of 
the alternate and staff of the Tribal Cochairperson, shall 
be paid by the Federal Government. 
‘‘(e) DUTIES AND PRIVILEGES.—Except as provided in 
subsections (c) and (d), the Tribal Cochairperson shall have 
the same duties and privileges as the State Cochairperson. 
‘‘§ 15308. Tribal participation 
‘‘Governments of Indian tribes in the region of the 
Northern Great Plains Regional Commission or the South-
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west Border Regional Commission shall be allowed to par-
ticipate in matters before that Commission in the same 
manner and to the same extent as State agencies and in-
strumentalities in the region. 
‘‘§ 15309. Annual report 
‘‘(a) IN GENERAL.—Not later than 90 days after the 
last day of each fiscal year, each Commission shall submit 
to the President and Congress a report on the activities car-
ried out by the Commission under this subtitle in the fiscal 
year. 
‘‘(b) CONTENTS.—The report shall include— 
‘‘(1) a description of the criteria used by the 
Commission to designate counties under section 15702 
and a list of the counties designated in each category; 
‘‘(2) an evaluation of the progress of the Com-
mission in meeting the goals identified in the Com-
mission’s economic and infrastructure development 
plan under section 15303 and State economic and in-
frastructure development plans under section 15502; 
and 
‘‘(3) any policy recommendations approved by 
the Commission. 
‘‘CHAPTER 155—FINANCIAL ASSISTANCE 
‘‘Sec. 
‘‘15501. Economic and infrastructure development grants. 
‘‘15502. Comprehensive economic and infrastructure development plans. 
‘‘15503. Approval of applications for assistance. 
‘‘15504. Program development criteria. 
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‘‘15505. Local development districts and organizations. 
‘‘15506. Supplements to Federal grant programs. 
‘‘§ 15501. Economic and infrastructure development 
grants 
‘‘(a) IN GENERAL.—A Commission may make grants 
to States and local governments, Indian tribes, and public 
and nonprofit organizations for projects, approved in ac-
cordance with section 15503— 
‘‘(1) to develop the transportation infrastructure 
of its region; 
‘‘(2) to develop the basic public infrastructure of 
its region; 
‘‘(3) to develop the telecommunications infra-
structure of its region; 
‘‘(4) to assist its region in obtaining job skills 
training, skills development and employment-related 
education, entrepreneurship, technology, and business 
development; 
‘‘(5) to provide assistance to severely economi-
cally distressed and underdeveloped areas of its region 
that lack financial resources for improving basic 
health care and other public services; 
‘‘(6) to promote resource conservation, tourism, 
recreation, and preservation of open space in a man-
ner consistent with economic development goals; 
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‘‘(7) to promote the development of renewable 
and alternative energy sources; and 
‘‘(8) to otherwise achieve the purposes of this 
subtitle. 
‘‘(b) ALLOCATION OF FUNDS.—A Commission shall al-
locate at least 40 percent of any grant amounts provided 
by the Commission in a fiscal year for projects described 
in paragraphs (1) through (3) of subsection (a). 
‘‘(c) SOURCES OF GRANTS.—Grant amounts may be 
provided entirely from appropriations to carry out this sub-
title, in combination with amounts available under other 
Federal grant programs, or from any other source. 
‘‘(d) MAXIMUM COMMISSION CONTRIBUTIONS.— 
‘‘(1) IN GENERAL.—Subject to paragraphs (2) 
and (3), the Commission may contribute not more 
than 50 percent of a project or activity cost eligible 
for financial assistance under this section from 
amounts appropriated to carry out this subtitle. 
‘‘(2) DISTRESSED
COUNTIES.—The maximum 
Commission contribution for a project or activity to 
be carried out in a county for which a distressed 
county designation is in effect under section 15702 
may be increased to 80 percent. 
‘‘(3) SPECIAL RULE FOR REGIONAL PROJECTS.— 
A Commission may increase to 60 percent under 
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paragraph (1) and 90 percent under paragraph (2) 
the maximum Commission contribution for a project 
or activity if— 
‘‘(A) the project or activity involves 3 or 
more counties or more than one State; and 
‘‘(B) the Commission determines in accord-
ance with section 15302(a) that the project or ac-
tivity will bring significant interstate or multi-
county benefits to a region. 
‘‘(e) MAINTENANCE OF EFFORT.—Funds may be pro-
vided by a Commission for a program or project in a State 
under this section only if the Commission determines that 
the level of Federal or State financial assistance provided 
under a law other than this subtitle, for the same type of 
program or project in the same area of the State within 
region, will not be reduced as a result of funds made avail-
able by this subtitle. 
‘‘(f) NO RELOCATION ASSISTANCE.—Financial assist-
ance authorized by this section may not be used to assist 
a person or entity in relocating from one area to another. 
‘‘§ 15502. Comprehensive economic and infrastructure 
development plans 
‘‘(a) STATE PLANS.—In accordance with policies es-
tablished by a Commission, each State member of the Com-
mission shall submit a comprehensive economic and infra-
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structure development plan for the area of the region rep-
resented by the State member. 
‘‘(b) CONTENT OF PLAN.—A State economic and infra-
structure development plan shall reflect the goals, objectives, 
and priorities identified in any applicable economic and 
infrastructure development plan developed by a Commis-
sion under section 15303. 
‘‘(c) CONSULTATION WITH INTERESTED LOCAL PAR-
TIES.—In carrying out the development planning process 
(including the selection of programs and projects for assist-
ance), a State shall— 
‘‘(1) consult with local development districts, 
local units of government, and local colleges and uni-
versities; and 
‘‘(2) take into consideration the goals, objectives, 
priorities, and recommendations of the entities de-
scribed in paragraph (1). 
‘‘(d) PUBLIC PARTICIPATION.— 
‘‘(1) IN GENERAL.—A Commission and applica-
ble State and local development districts shall encour-
age and assist, to the maximum extent practicable, 
public participation in the development, revision, and 
implementation of all plans and programs under this 
subtitle. 
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‘‘(2) GUIDELINES.—A Commission shall develop 
guidelines for providing public participation, includ-
ing public hearings. 
‘‘§ 15503. Approval of applications for assistance 
‘‘(a) EVALUATION BY STATE MEMBER.—An applica-
tion to a Commission for a grant or any other assistance 
for a project under this subtitle shall be made through, and 
evaluated for approval by, the State member of the Commis-
sion representing the applicant. 
‘‘(b) CERTIFICATION.—An application to a Commis-
sion for a grant or other assistance for a project under this 
subtitle shall be eligible for assistance only on certification 
by the State member of the Commission representing the 
applicant that the application for the project— 
‘‘(1) describes ways in which the project complies 
with any applicable State economic and infrastruc-
ture development plan; 
‘‘(2) meets applicable criteria under section 
15504; 
‘‘(3) adequately ensures that the project will be 
properly administered, operated, and maintained; 
and 
‘‘(4) otherwise meets the requirements for assist-
ance under this subtitle. 
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‘‘(c) VOTES FOR DECISIONS.—On certification by a 
State member of a Commission of an application for a 
grant or other assistance for a specific project under this 
section, an affirmative vote of the Commission under section 
15302 shall be required for approval of the application. 
‘‘§ 15504. Program development criteria 
‘‘(a) IN GENERAL.—In considering programs and 
projects to be provided assistance by a Commission under 
this subtitle, and in establishing a priority ranking of the 
requests for assistance provided to the Commission, the 
Commission shall follow procedures that ensure, to the max-
imum extent practicable, consideration of— 
‘‘(1) the relationship of the project or class of 
projects to overall regional development; 
‘‘(2) the per capita income and poverty and un-
employment and outmigration rates in an area; 
‘‘(3) the financial resources available to the ap-
plicants for assistance seeking to carry out the 
project, with emphasis on ensuring that projects are 
adequately financed to maximize the probability of 
successful economic development; 
‘‘(4) the importance of the project or class of 
projects in relation to the other projects or classes of 
projects that may be in competition for the same 
funds; 
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‘‘(5) the prospects that the project for which as-
sistance is sought will improve, on a continuing rath-
er than a temporary basis, the opportunities for em-
ployment, the average level of income, or the economic 
development of the area to be served by the project; 
and 
‘‘(6) the extent to which the project design pro-
vides for detailed outcome measurements by which 
grant expenditures and the results of the expenditures 
may be evaluated. 
‘‘§ 15505. Local development districts and organiza-
tions 
‘‘(a) GRANTS TO LOCAL DEVELOPMENT DISTRICTS.— 
Subject to the requirements of this section, a Commission 
may make grants to a local development district to assist 
in the payment of development planning and administra-
tive expenses. 
‘‘(b) CONDITIONS FOR GRANTS.— 
‘‘(1) MAXIMUM
AMOUNT.—The amount of a 
grant awarded under this section may not exceed 80 
percent of the administrative and planning expenses 
of the local development district receiving the grant. 
‘‘(2) MAXIMUM PERIOD FOR STATE AGENCIES.— 
In the case of a State agency certified as a local de-
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velopment district, a grant may not be awarded to the 
agency under this section for more than 3 fiscal years. 
‘‘(3) LOCAL
SHARE.—The contributions of a 
local development district for administrative expenses 
may be in cash or in kind, fairly evaluated, including 
space, equipment, and services. 
‘‘(c) DUTIES OF LOCAL DEVELOPMENT DISTRICTS.— 
A local development district shall— 
‘‘(1) operate as a lead organization serving 
multicounty areas in the region at the local level; 
‘‘(2) assist the Commission in carrying out out-
reach activities for local governments, community de-
velopment groups, the business community, and the 
public; 
‘‘(3) serve as a liaison between State and local 
governments, nonprofit organizations (including com-
munity-based groups and educational institutions), 
the business community, and citizens; and 
‘‘(4) assist the individuals and entities described 
in paragraph (3) in identifying, assessing, and facili-
tating projects and programs to promote the economic 
development of the region. 
‘‘§ 15506. Supplements to Federal grant programs 
‘‘(a) FINDING.—Congress finds that certain States and 
local communities of the region, including local develop-
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ment districts, may be unable to take maximum advantage 
of Federal grant programs for which the States and commu-
nities are eligible because— 
‘‘(1) they lack the economic resources to provide 
the required matching share; or 
‘‘(2) there are insufficient funds available under 
the applicable Federal law with respect to a project 
to be carried out in the region. 
‘‘(b) FEDERAL GRANT PROGRAM FUNDING.—A Com-
mission, with the approval of the Federal Cochairperson, 
may use amounts made available to carry out this sub-
title— 
‘‘(1) for any part of the basic Federal contribu-
tion to projects or activities under the Federal grant 
programs authorized by Federal laws; and 
‘‘(2) to increase the Federal contribution to 
projects and activities under the programs above the 
fixed maximum part of the cost of the projects or ac-
tivities otherwise authorized by the applicable law. 
‘‘(c) CERTIFICATION REQUIRED.—For a program, 
project, or activity for which any part of the basic Federal 
contribution to the project or activity under a Federal grant 
program is proposed to be made under subsection (b), the 
Federal contribution shall not be made until the responsible 
Federal official administering the Federal law authorizing 
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the Federal contribution certifies that the program, project, 
or activity meets the applicable requirements of the Federal 
law and could be approved for Federal contribution under 
that law if amounts were available under the law for the 
program, project, or activity. 
‘‘(d) LIMITATIONS IN OTHER LAWS INAPPLICABLE.— 
Amounts provided pursuant to this subtitle are available 
without regard to any limitations on areas eligible for as-
sistance or authorizations for appropriation in any other 
law. 
‘‘(e) FEDERAL SHARE.—The Federal share of the cost 
of a project or activity receiving assistance under this sec-
tion shall not exceed 80 percent. 
‘‘(f) MAXIMUM COMMISSION CONTRIBUTION.—Section 
15501(d), relating to limitations on Commission contribu-
tions, shall apply to a program, project, or activity receiv-
ing assistance under this section. 
‘‘CHAPTER 157—ADMINISTRATIVE 
PROVISIONS 
‘‘SUBCHAPTER I—GENERAL PROVISIONS 
‘‘Sec. 
‘‘15701. Consent of States. 
‘‘15702. Distressed counties and areas. 
‘‘15703. Counties eligible for assistance in more than one region. 
‘‘15704. Inspector General; records. 
‘‘15705. Biannual meetings of representatives of all Commissions. 
‘‘15706. Relationship to other laws. 
‘‘SUBCHAPTER II—DESIGNATION OF REGIONS 
‘‘15731. Delta Regional Commission. 
‘‘15732. Northern Great Plains Regional Commission. 
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‘‘15733. Southeast Crescent Regional Commission. 
‘‘15734. Southwest Border Regional Commission. 
‘‘15735. Northern Border Regional Commission. 
‘‘SUBCHAPTER III—AUTHORIZATION OF APPROPRIATIONS 
‘‘15751. Authorization of appropriations. 
‘‘SUBCHAPTER I—GENERAL PROVISIONS 
‘‘§ 15701. Consent of States 
‘‘This subtitle does not require a State to engage in 
or accept a program under this subtitle without its consent. 
‘‘§ 15702. Distressed counties and areas 
‘‘(a) DESIGNATIONS.—Not later than 90 days after the 
date of enactment of this section, and annually thereafter, 
each Commission shall make the following designations: 
‘‘(1) DISTRESSED COUNTIES.—The Commission 
shall designate as distressed counties those counties in 
its region that are the most severely and persistently 
economically distressed and underdeveloped and have 
high rates of poverty, unemployment, or outmigra-
tion. 
‘‘(2) TRANSITIONAL
COUNTIES.—The Commis-
sion shall designate as transitional counties those 
counties in its region that are economically distressed 
and underdeveloped or have recently suffered high 
rates of poverty, unemployment, or outmigration. 
‘‘(3) ATTAINMENT COUNTIES.—The Commission 
shall designate as attainment counties, those counties 
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in its region that are not designated as distressed or 
transitional counties under this subsection. 
‘‘(4) ISOLATED AREAS OF DISTRESS.—The Com-
mission shall designate as isolated areas of distress, 
areas located in counties designated as attainment 
counties under paragraph (3) that have high rates of 
poverty, unemployment, or outmigration. 
‘‘(b) ALLOCATION.—A Commission shall allocate at 
least 50 percent of the appropriations made available to 
the Commission to carry out this subtitle for programs and 
projects designed to serve the needs of distressed counties 
and isolated areas of distress in the region. 
‘‘(c) ATTAINMENT COUNTIES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), funds may not be provided under this sub-
title for a project located in a county designated as 
an attainment county under subsection (a). 
‘‘(2) EXCEPTIONS.— 
‘‘(A) ADMINISTRATIVE EXPENSES OF LOCAL 
DEVELOPMENT DISTRICTS.—The funding prohi-
bition under paragraph (1) shall not apply to 
grants to fund the administrative expenses of 
local development districts under section 15505. 
‘‘(B) 
MULTICOUNTY
AND
OTHER 
PROJECTS.—A Commission may waive the ap-
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plication of the funding prohibition under para-
graph (1) with respect to— 
‘‘(i) a multicounty project that in-
cludes participation by an attainment 
county; and 
‘‘(ii) any other type of project, if a 
Commission determines that the project 
could bring significant benefits to areas of 
the region outside an attainment county. 
‘‘(3) ISOLATED AREAS OF DISTRESS.—For a des-
ignation of an isolated area of distress to be effective, 
the designation shall be supported— 
‘‘(A) by the most recent Federal data avail-
able; or 
‘‘(B) if no recent Federal data are available, 
by the most recent data available through the 
government of the State in which the isolated 
area of distress is located. 
‘‘§ 15703. Counties eligible for assistance in more than 
one region 
‘‘(a) LIMITATION.—A political subdivision of a State 
may not receive assistance under this subtitle in a fiscal 
year from more than one Commission. 
‘‘(b) SELECTION OF COMMISSION.—A political sub-
division included in the region of more than one Commis-
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‘‘§ 15705. Biannual meetings of representatives of all 
Commissions 
‘‘(a) IN GENERAL.—Representatives of each Commis-
sion, the Appalachian Regional Commission, and the 
Denali Commission shall meet biannually to discuss issues 
confronting regions suffering from chronic and contiguous 
distress and successful strategies for promoting regional de-
velopment. 
‘‘(b) CHAIR OF MEETINGS.—The chair of each meeting 
shall rotate among the Commissions, with the Appalachian 
Regional Commission to host the first meeting. 
‘‘§ 15706. Relationship to other laws 
‘‘Projects receiving assistance under this subtitle shall 
be treated in the manner provided in section 602 of the Pub-
lic Works and Economic Development Act of 1965 (42 
U.S.C. 3212). 
‘‘SUBCHAPTER II—DESIGNATION OF REGIONS 
‘‘§ 15731. Delta Regional Commission 
‘‘The region of the Delta Regional Commission shall 
consist of the following political subdivisions: 
‘‘(1) ALABAMA.—The counties of Barbour, Bul-
lock, Butler, Choctaw, Clarke, Conecuh, Dallas, 
Escambia, Greene, Hale, Lowndes, Macon, Marengo, 
Monroe, Perry, Pickens, Russell, Sumter, Washington, 
and Wilcox in the State of Alabama. 
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‘‘(2) ARKANSAS.—The counties of Arkansas, Ash-
ley, Baxter, Bradley, Calhoun, Chicot, Clay, Cleve-
land, Craighead, Crittenden, Cross, Dallas, Desha, 
Drew, Fulton, Grant, Greene, Independence, Izard, 
Jackson, Jefferson, Lawrence, Lee, Lincoln, Lonoke, 
Marion, Mississippi, Monroe, Ouachita, Phillips, 
Poinsett, Prairie, Pulaski, Randolph, St. Francis, 
Searcy, Sharp, Stone, Union, Van Buren, White, and 
Woodruff in the State of Arkansas. 
‘‘(3) ILLINOIS.—The counties of Alexander, 
Franklin, Gallatin, Hamilton, Hardin, Jackson, 
Johnson, Massac, Perry, Pope, Pulaski, Randolph, 
Saline, Union, White, and Williamson in the State of 
Illinois. 
‘‘(4) KENTUCKY.—The counties of Ballard, 
Caldwell, Calloway, Carlisle, Christian, Crittenden, 
Fulton, Graves, Henderson, Hickman, Hopkins, Liv-
ingston, Lyon, Marshall, McCracken, McLean, Muh-
lenberg, Todd, Trigg, Union, and Webster in the State 
of Kentucky. 
‘‘(5) LOUISIANA.—The parishes of Acadia, Allen, 
Ascension, 
Assumption, 
Avoyelles, 
Caldwell, 
Catahoula, Concordia, E. Baton Rouge, E. Carroll, E. 
Feliciana, Evangeline, Franklin, Grant, Iberia, 
Iberville, Jackson, Jefferson, Lafourche, LaSalle, Lin-
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coln, Livingston, Madison, Morehouse, Natchitoches, 
Orleans, Ouachita, Plaquemines, Pointe Coupee, 
Rapides, Richland, St. Bernard, St. Charles, St. Hel-
ena, St. James, St. John the Baptist, St. Landry, St. 
Martin, Tangipahoa, Tensas, Union, Washington, W. 
Baton Rouge, W. Carroll, W. Feliciana, and Winn in 
the State of Louisiana. 
‘‘(6) MISSISSIPPI.—The counties of Adams, 
Amite, Attala, Benton, Bolivar, Carroll, Claiborne, 
Coahoma, Copiah, Covington, DeSoto, Franklin, Gre-
nada, Hinds, Holmes, Humphreys, Issaquena, Jeffer-
son, Jefferson Davis, Lafayette, Lawrence, Leflore, 
Lincoln, Madison, Marion, Marshall, Montgomery, 
Panola, Pike, Quitman, Rankin, Sharkey, Simpson, 
Sunflower, Tallahatchie, Tate, Tippah, Tunica, 
Union, Walthall, Warren, Washington, Wilkinson, 
Yalobusha, and Yazoo in the State of Mississippi. 
‘‘(7) MISSOURI.—The counties Bollinger, Butler, 
Cape Girardeau, Carter, Crawford, Dent, Douglas, 
Dunklin, Howell, Iron, Madison, Mississippi, New 
Madrid, Oregon, Ozark, Pemiscott, Perry, Phelps, 
Reynolds, Ripley, Ste. Genevieve, St. Francois, Scott, 
Shannon, Stoddard, Texas, Washington, Wayne, and 
Wright in the State of Missouri. 
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‘‘(8) TENNESSEE.—The counties of Benton, Car-
roll, Chester, Crockett, Decatur, Dyer, Fayette, Gib-
son, Hardeman, Hardin, Haywood, Henderson, 
Henry, Lake, Lauderdale, McNairy, Madison, Obion, 
Shelby, Tipton, and Weakley in the State of Ten-
nessee. 
‘‘§ 15732. Northern Great Plains Regional Commission 
‘‘The region of the Northern Great Plains Regional 
Commission shall consist of the following: 
‘‘(1) All counties of the States of Iowa, Min-
nesota, Nebraska, North Dakota, and South Dakota. 
‘‘(2) The counties of Andrew, Atchison, Bu-
chanan, Caldwell, Carroll, Chariton, Clay, Clinton, 
Cooper, Daviess, DeKalb, Gentry, Grundy, Harrison, 
Holt, Howard, Jackson, Linn, Livingston, Mercer, 
Nodaway, Platte, Putnam, Schuyler, Sullivan, and 
Worth in the State of Missouri. 
‘‘§ 15733. Southeast Crescent Regional Commission 
‘‘The region of the Southeast Crescent Regional Com-
mission shall consist of all counties of the States of Vir-
ginia, North Carolina, South Carolina, Georgia, Alabama, 
Mississippi, and Florida not already served by the Appa-
lachian Regional Commission or the Delta Regional Com-
mission. 
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‘‘§ 15734. Southwest Border Regional Commission 
‘‘The region of the Southwest Border Regional Com-
mission shall consist of the following political subdivisions: 
‘‘(1) ARIZONA.—The counties of Cochise, Gila, 
Graham, Greenlee, La Paz, Maricopa, Pima, Pinal, 
Santa Cruz, and Yuma in the State of Arizona. 
‘‘(2) CALIFORNIA.—The counties of Imperial, Los 
Angeles, Orange, Riverside, San Bernardino, San 
Diego, and Ventura in the State of California. 
‘‘(3) NEW
MEXICO.—The counties of Catron, 
Chaves, Dona Ana, Eddy, Grant, Hidalgo, Lincoln, 
Luna, Otero, Sierra, and Socorro in the State of New 
Mexico. 
‘‘(4) TEXAS.—The counties of Atascosa, Bandera, 
Bee, Bexar, Brewster, Brooks, Cameron, Coke, Concho, 
Crane, Crockett, Culberson, Dimmit, Duval, Ector, 
Edwards, El Paso, Frio, Gillespie, Glasscock, Hi-
dalgo, Hudspeth, Irion, Jeff Davis, Jim Hogg, Jim 
Wells, Karnes, Kendall, Kenedy, Kerr, Kimble, 
Kinney, Kleberg, La Salle, Live Oak, Loving, Mason, 
Maverick, McMullen, Medina, Menard, Midland, 
Nueces, Pecos, Presidio, Reagan, Real, Reeves, San 
Patricio, Shleicher, Sutton, Starr, Sterling, Terrell, 
Tom Green Upton, Uvalde, Val Verde, Ward, Webb, 
Willacy, Wilson, Winkler, Zapata, and Zavala in the 
State of Texas. 
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(c) TRANSFER OF ASSETS AND PERSONNEL.— 
(1) DELTA REGIONAL COMMISSION.—There shall 
be transferred to the Delta Regional Commission such 
assets, funds, personnel, records, and other property of 
the Delta Regional Authority relating to the functions 
of the Authority as the Commission determines appro-
priate. 
(2) NORTHERN GREAT PLAINS REGIONAL COM-
MISSION.—There shall be transferred to the Northern 
Great Plains Regional Commission such assets, funds, 
personnel, records, and other property of the Northern 
Great Plains Regional Authority as the Commission 
determines appropriate. 
SEC. 6. EFFECTIVE DATE. 
This Act, and the amendments made by this Act, shall 
take effect on the first day of the first fiscal year beginning 
after the date of enactment of this Act. 
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Union Calendar No. 202 
110TH CONGRESS 
1ST SESSION 
H. R. 3246 
[Report No. 110–321, Part I] 
A BILL 
To amend title 40, United States Code, to provide 
a comprehensive regional approach to economic 
and infrastructure development in the most se-
verely economically distressed regions in the Na-
tion. 
SEPTEMBER 7, 2007 
Committee on Financial Services discharged; committed 
to the Committee of the Whole House on the State of 
the Union and ordered to be printed 
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