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defined in subsection (c)(4)), direct grants-in-aid au-
thorized under this section, and Federal grant-in-aid
programs authorized by the Watershed Protection
and Flood Prevention Act (68 Stat. 666), and the
11 watersheds authorized by the Flood Control Act
of December 22, 1944 (58 Stat. 887), for which
they are eligible but for which, because of their eco-
nomic situation, they cannot supply the required
matching share.
‘‘(b) COST SHARING.—Subject to subsection (c), the
amount of any direct grant under this subsection for any
project shall not exceed 50 percent of the cost of such
project.
‘‘(c) REQUIREMENTS
APPLICABLE
TO
SUPPLE-
MENTARY GRANTS.—
‘‘(1) AMOUNT OF SUPPLEMENTARY GRANTS.—
‘‘(A) IN GENERAL.—Except as provided by
subparagraph (B), the amount of any supple-
mentary grant under this section for any
project shall not exceed the applicable percent-
age established by regulations promulgated by
the Administrator, 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.
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‘‘(B) EXCEPTION.—Notwithstanding sub-
paragraph (A), in the case of an Indian tribe,
a State (or a political subdivision of the State),
or a community development corporation which
the Administrator determines has exhausted its
effective taxing and borrowing capacity, the Ad-
ministrator shall reduce the non-Federal share
below the percentage specified in subparagraph
(A) or shall waive the non-Federal share in the
case of such a grant for a project in an area
described in section 502(a)(4).
‘‘(2) FORM
OF
SUPPLEMENTARY
GRANTS.—
Supplementary grants shall be made by the Admin-
istrator, in accordance with such regulations as the
Administrator may prescribe, by increasing the
amounts of direct grants authorized under this sec-
tion or by the payment of funds appropriated under
this Act to the heads of the departments, agencies,
and instrumentalities of the Federal Government re-
sponsible for the administration of the applicable
Federal programs.
‘‘(3) FEDERAL SHARE LIMITATIONS SPECIFIED
IN OTHER LAWS.—Notwithstanding any requirement
as to the amount or sources of non-Federal funds
that may otherwise be applicable to the Federal pro-
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gram involved, funds provided under this subsection
shall be used for the sole purpose of increasing the
Federal contribution to specific projects in areas de-
scribed in section 502(a) under such programs above
the fixed maximum portion of the cost of such
project otherwise authorized by the applicable law.
‘‘(4) 
DESIGNATED
FEDERAL
GRANT-IN-AID
PROGRAMS DEFINED.—In this subsection, the term
‘designated Federal grant-in-aid programs’ means
such existing or future Federal grant-in-aid pro-
grams assisting in the construction or equipping of
facilities as the Administrator may, in furtherance of
the purposes of this Act, designate as eligible for al-
location of funds under this section.
‘‘(5) CONSIDERATION OF RELATIVE NEED IN
DETERMINING
AMOUNT.—In 
determining 
the
amount of any supplementary grant available to any
project under this section, the Administrator shall
take into consideration the relative needs of the area
and the nature of the projects to be assisted.
‘‘(d) REGULATIONS.—The Administrator shall pre-
scribe rules, regulations, and procedures to carry out this
section which will assure that adequate consideration is
given to the relative needs of eligible areas. In prescribing
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such rules, regulations, and procedures the Administrator
shall consider among other relevant factors—
‘‘(1) the severity of the rates of unemployment
in the eligible areas and the duration of such unem-
ployment; and
‘‘(2) the income levels of families and the extent
of underemployment in eligible areas.
‘‘(e) REVIEW AND COMMENT UPON PROJECTS BY
LOCAL GOVERNMENTAL AUTHORITIES.—The Adminis-
trator 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. CONSTRUCTION COST INCREASES.
‘‘In any case where a grant (including a supplemental
grant) has been made by the Administrator 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 Administrator, in such costs, but in
no event shall the percentage of the Federal share of such
project exceed that originally provided for in such grant.
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‘‘SEC. 203. USE OF FUNDS IN PROJECTS CONSTRUCTED
UNDER PROJECTED COST.
‘‘In any case where a grant (including a supplemental
grant) has been made by the Administrator 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 de-
creases in costs, such underrun funds may be used to im-
prove the project either directly or indirectly as deter-
mined by the Administrator.
‘‘SEC. 204. CHANGED PROJECT CIRCUMSTANCES.
‘‘In any case where a grant (including a supplemental
grant) has been made by the Administrator 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 based upon the designs and specifications
which were the basis of the grant has changed, the Admin-
istrator may approve the use of grant funds on such
changed project if the Administrator determines that such
changed project meets the requirements of this title and
that such changes are necessary to enhance economic de-
velopment in the area.
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‘‘TITLE III—SPECIAL ECONOMIC
DEVELOPMENT AND ADJUST-
MENT ASSISTANCE
‘‘SEC. 301. STATEMENT OF PURPOSE.
‘‘The purpose of this title to provide special economic
development and adjustment assistance programs to help
State and local areas meet special needs arising from ac-
tual or threatened severe unemployment arising from eco-
nomic dislocation (including unemployment arising from
actions of the Federal Government, from defense base clo-
sures and realignments, and from compliance with envi-
ronmental requirements which remove economic activities
from a locality) and economic adjustment problems result-
ing from severe changes in economic conditions (including
long-term economic deterioration), and to encourage coop-
erative intergovernmental action to prevent or solve eco-
nomic adjustment problems. Nothing in this title is in-
tended to replace the efforts of the economic adjustment
program of the Department of Defense.
‘‘SEC. 302. SPECIAL ECONOMIC DEVELOPMENT AND AD-
JUSTMENT ASSISTANCE.
‘‘(a) IN GENERAL.—The Administrator is authorized
to make grants directly to any eligible recipient in an area
which the Administrator determines, in accordance with
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criteria to be established by the Administrator by regula-
tion—
‘‘(1) has experienced, or may reasonably be
foreseen to be about to experience, a special need to
meet an expected rise in unemployment, or other
economic adjustment problems (including those
caused by any action or decision of the Federal Gov-
ernment); or
‘‘(2) has demonstrated long-term economic de-
terioration.
‘‘(b) PURPOSES.—Amounts from grants under sub-
section (a) shall be used by an eligible recipient to carry
out or develop an investment strategy which—
‘‘(1) meets the requirements of section 503; and
‘‘(2) is approved by the Administrator.
‘‘(c) TYPES OF ASSISTANCE.—In carrying out an in-
vestment strategy using amounts from grants under sub-
section (a), an eligible recipient may provide assistance for
any of the following:
‘‘(1) Public facilities.
‘‘(2) Public services.
‘‘(3) Business development.
‘‘(4) Planning.
‘‘(5) Research and technical assistance.
‘‘(6) Administrative expenses.
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‘‘(7) Training.
‘‘(8) Relocation of individuals and businesses.
‘‘(9) Other assistance which demonstrably fur-
thers the economic adjustment objectives of this
title.
‘‘(d) DIRECT EXPENDITURE OR REDISTRIBUTION BY
RECIPIENT.—Amounts from grants under subsection (a)
may be used in direct expenditures by the eligible recipient
or through redistribution by the eligible recipient to public
and private entities in grants, loans, loan guarantees, pay-
ments to reduce interest on loan guarantees, or other ap-
propriate assistance, but no grant shall be made by an
eligible recipient to a private profit-making entity.
‘‘(e) COORDINATION.—The Administrator to the ex-
tent practicable shall coordinate the activities relating to
the requirements for investment strategies and making
grants and loans under this title with other Federal pro-
grams, States, economic development districts, and other
appropriate planning and development organizations.
‘‘(f) BASE CLOSINGS AND REALIGNMENTS.—
‘‘(1) LOCATION OF PROJECTS.—In any case in
which the Administrator determines a need for as-
sistance under subsection (a) due to the closure or
realignment of a military installation, the Adminis-
trator may make such assistance available for
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projects to be carried out on the military installation
and for projects to be carried out in communities ad-
versely affected by the closure or realignment.
‘‘(2) INTEREST IN PROPERTY.—Notwithstand-
ing any other provision of law, the Administrator
may provide to an eligible recipient any assistance
available under this Act for a project to be carried
out on a military installation that is closed or sched-
uled for closure or realignment without requiring
that the eligible recipient have title to the property
or a leasehold interest in the property for any speci-
fied term.
‘‘SEC. 303. ANNUAL REPORTS BY RECIPIENT.
‘‘Each eligible recipient which receives assistance
under this title from the Administrator shall annually dur-
ing the period such assistance continue to make a full and
complete report to the Administrator, in such manner as
the Administrator shall prescribe, and such report shall
contain an evaluation of the effectiveness of the economic
assistance provided under this title in meeting the need
it was designed to alleviate and the purposes of this title.
‘‘SEC. 304. SALE OF FINANCIAL INSTRUMENTS IN REVOLV-
ING LOAN FUNDS.
‘‘Any loan, loan guarantee, equity, or other financial
instrument in the portfolio of a revolving loan fund, in-
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cluding any financial instrument made available using
amounts from a grant made before the effective date speci-
fied in section 802, may be sold, encumbered, or pledged
at the discretion of the grantee of the Fund, to a third
party provided that the net proceeds of the transaction—
‘‘(1) shall be deposited into the Fund and may
only be used for activities 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 the grant.
‘‘SEC. 305. TREATMENT OF REVOLVING LOAN FUNDS.
‘‘(a) IN GENERAL.—Amounts from grants made
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 activities which are
consistent with the purposes of this title; and
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‘‘(2) shall be subject to the financial manage-
ment, accounting, reporting, and auditing standards
which were originally applicable to the grant.
‘‘(c) REGULATIONS.—Not later than 30 days after
the effective date specified in section 802, the Adminis-
trator shall issue regulations to carry out subsection (a).
‘‘(d) PUBLIC REVIEW AND COMMENT.—Before issu-
ing any final guidelines or administrative manuals govern-
ing the operation of revolving loan funds established using
amounts from grants under this title, the Administrator
shall provide reasonable opportunity for public review of
and comment on such guidelines and administrative
manuals.
‘‘(e) APPLICABILITY
TO PAST GRANTS.—The re-
quirements of this section applicable to amounts from
grants made under this title shall also apply to amounts
from grants made, before the effective date specified in
section 802, under title I of this Act, as in effect on the
day before such effective date.
‘‘TITLE IV—TECHNICAL ASSIST-
ANCE, RESEARCH, AND IN-
FORMATION
‘‘SEC. 401. TECHNICAL ASSISTANCE.
‘‘(a) IN GENERAL.—In carrying out its duties under
this Act, the Administrator may provide technical assist-
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ance which would be useful in alleviating or preventing
conditions 
of 
excessive 
unemployment 
or
underemployment to areas which the Administrator finds
have substantial need for such assistance. Such assistance
shall include project planning and feasibility studies, man-
agement and operational assistance, establishment of busi-
ness outreach centers, and studies evaluating the needs
of, and development potentialities for, economic growth of
such areas.
‘‘(b) PROCEDURES AND TERMS.—
‘‘(1) MANNER OF PROVIDING ASSISTANCE.—As-
sistance may be provided by the Administrator
through—
‘‘(A) members of the Administrator’s staff;
‘‘(B) the payment of funds authorized for
this section to departments or agencies of the
Federal Government;
‘‘(C) the employment of private individ-
uals, partnerships, firms, corporations, or suit-
able institutions under contracts entered into
for such purposes; or
‘‘(D) grants-in-aid to appropriate public or
private nonprofit State, area, district, or local
organizations.
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‘‘(2) REPAYMENT TERMS.—The Administrator,
in the Administrator’s discretion, may require the
repayment of assistance provided under this sub-
section and prescribe the terms and conditions of
such repayment.
‘‘(c) GRANTS
COVERING
ADMINISTRATIVE
EX-
PENSES.—
‘‘(1) IN
GENERAL.—The Administrator may
make grants to defray not to exceed 50 percent of
the administrative expenses of organizations which
the Administrator determines to be qualified to re-
ceive grants-in-aid under subsections (a) and (b); ex-
cept that in the case of a grant under this sub-
section to an Indian tribe, the Administrator is au-
thorized to defray up to 100 percent of such ex-
penses.
‘‘(2) 
DETERMINATION
OF
NON-FEDERAL
SHARE.—In determining the amount of the non-Fed-
eral share of such costs or expenses, the Adminis-
trator shall give due consideration to all contribu-
tions both in cash and in kind, fairly evaluated, in-
cluding contributions of space, equipment, and serv-
ices.
‘‘(3) 
USE
OF
GRANTS
WITH
PLANNING
GRANTS.—Where practicable, grants-in-aid author-
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ized under this subsection shall be used in conjunc-
tion with other available planning grants to assure
adequate and effective planning and economical use
of funds.
‘‘(d) AVAILABILITY OF TECHNICAL INFORMATION;
FEDERAL PROCUREMENT.—The Administrator shall aid
areas described in section 502(a) and other areas by fur-
nishing to interested individuals, communities, industries,
and enterprises within such areas any assistance, technical
information, market research, or other forms of assist-
ance, information, or advice which would be useful in alle-
viating or preventing conditions of excessive unemploy-
ment or underemployment within such areas. The Admin-
istrator may furnish the procurement divisions of the var-
ious departments, agencies, and other instrumentalities of
the Federal Government with a list containing the names
and addresses of business firms which are located in areas
described in section 502(a) and which are desirous of ob-
taining Government contracts for the furnishing of sup-
plies or services, and designating the supplies and services
such firms are engaged in providing.
‘‘SEC. 402. ECONOMIC DEVELOPMENT PLANNING.
‘‘(a) DIRECT GRANTS.—
‘‘(1) IN
GENERAL.—The Administrator may
make, upon application of any State, or city, or
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other political subdivision of a State, or sub-State
planning and development organization (including an
area described in section 502(a) or an economic de-
velopment district), direct grants to such State, city,
or other political subdivision, or organization to pay
up to 50 percent of the cost for economic develop-
ment planning.
‘‘(2) PLANNING
PROJECTS
SPECIFICALLY
IN-
CLUDED.—The planning for cities, other political
subdivisions, and sub-State planning and develop-
ment organizations (including areas described in sec-
tion 502(a) and economic development districts) as-
sisted under this section shall include systematic ef-
forts to reduce unemployment and increase incomes.
‘‘(3) PLANNING PROCESS.—The planning shall
be a continuous process involving public officials and
private citizens in analyzing local economies, defin-
ing development goals, determining project opportu-
nities, and formulating and implementing a develop-
ment program.
‘‘(4) COORDINATION
OF
ASSISTANCE
UNDER
SECTION 401(c).—The assistance available under
this section may be provided in addition to assist-
ance available under section 401(c) but shall not
supplant such assistance.
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‘‘(b) COMPLIANCE WITH REVIEW PROCEDURE.—The
planning assistance authorized under this title shall be
used in conjunction with any other available Federal plan-
ning assistance to assure adequate and effective planning
and economical use of funds.
‘‘TITLE V—ELIGIBILITY AND
INVESTMENT STRATEGIES
‘‘PART A—ELIGIBILITY
‘‘SEC. 501. ELIGIBLE RECIPIENT DEFINED.
‘‘In this Act, the term ‘eligible recipient’ means an
area described in section 502(a), an economic development
district designated under section 510, an Indian tribe, a
State, a city or other political subdivision of a State, or
a consortium of such political subdivisions, or a public or
private nonprofit organization or association acting in co-
operation with officials of such political subdivisions.
‘‘SEC. 502. AREA ELIGIBILITY.
‘‘(a) CERTIFICATION.—In order to be eligible for as-
sistance under title II, an applicant seeking assistance to
undertake a project in an area shall certify, as part of
an application for such assistance, that the area on the
date of submission of such application meets 1 or more
of the following criteria:
‘‘(1) The area has a per capita income of 80
percent or less of the national average.
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‘‘(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
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 subdivi-
sions or boundaries) which the Administrator deter-
mines 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 Administrator unless it is determined to be inac-
curate. The most recent statistics available shall be used.
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‘‘(c) PRIOR DESIGNATIONS.—Any designation of a
redevelopment area made before the effective date speci-
fied in section 802 shall not be effective after such effec-
tive date.
‘‘SEC. 503. INVESTMENT STRATEGY.
‘‘The Administrator may provide assistance under ti-
tles II and III to an applicant for a project only if the
applicant submits to the Administrator, as part of an ap-
plication for such assistance, and the Administrator ap-
proves an investment strategy which—
‘‘(1) identifies the economic development prob-
lems to be addressed using such assistance;
‘‘(2) identifies past, present, and projected fu-
ture economic development investments in the area
receiving such assistance and public and private par-
ticipants and sources of funding for such invest-
ments;
‘‘(3) sets forth a strategy for addressing the
economic problems identified pursuant to paragraph
(1) and describes how the strategy will solve such
problems;
‘‘(4) provides a description of the project nec-
essary to implement the strategy, estimates of costs,
and timetables; and
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‘‘(5) provides a summary of public and private
resources expected to be available for the project.
‘‘SEC. 504. APPROVAL OF PROJECTS.
‘‘Only applications for grants or other assistance
under this Act for specific projects shall be approved which
are certified by the State representing such applicant and
determined by the Administrator—
‘‘(1) to be included in a State investment strat-
egy;
‘‘(2) to have adequate assurance that the
project will be properly administered, operated, and
maintained; and
‘‘(3) to otherwise meet the requirements for as-
sistance under this Act.
‘‘PART B—ECONOMIC DEVELOPMENT DISTRICTS
‘‘SEC. 510. DESIGNATION OF ECONOMIC DEVELOPMENT
DISTRICTS AND ECONOMIC DEVELOPMENT
CENTERS.
‘‘(a) IN GENERAL.—In order that economic develop-
ment projects of broader geographic significance may be
planned and carried out, the Administrator may—
‘‘(1) designate appropriate ‘economic develop-
ment districts’ within the United States with the
concurrence of the States in which such districts will
be wholly or partially located, if—
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‘‘(A) the proposed district is of sufficient
size or population, and contains sufficient re-
sources, to foster economic development on a
scale involving more than a single area de-
scribed in section 502(a);
‘‘(B) the proposed district contains at least
1 area described in section 502(a);
‘‘(C) the proposed district contains 1 or
more areas described in section 502(a) or eco-
nomic development centers identified in an ap-
proved district investment strategy as having
sufficient size and potential to foster the eco-
nomic growth activities necessary to alleviate
the distress of the areas described in section
502(a) within the district; and
‘‘(D) the proposed district has a district
investment strategy which includes adequate
land use and transportation planning and con-
tains a specific program for district cooperation,
self-help, and public investment and is approved
by the State or States affected and by the Ad-
ministrator;
‘‘(2) designate as ‘economic development cen-
ters’, in accordance with such regulations as the Ad-
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ministrator shall prescribe, such areas as the Admin-
istrator may deem appropriate, if—
‘‘(A) the proposed center has been identi-
fied and included in an approved district invest-
ment strategy and recommended by the State
or States affected for such special designation;
‘‘(B) the proposed center is geographically
and economically so related to the district that
its economic growth may reasonably be expected
to contribute significantly to the alleviation of
distress in the areas described in section 502(a)
of the district; and
‘‘(C) the proposed center does not have a
population in excess of 250,000 according to
the most recent Federal census.
‘‘(3) provide financial assistance in accordance
with the criteria of this Act, except as may be herein
otherwise provided, for projects in economic develop-
ment centers designated under subsection (a)(2),
if—
‘‘(A) the project will further the objectives
of the investment strategy of the district in
which it is to be located;
‘‘(B) the project will enhance the economic
growth potential of the district or result in ad-
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ditional long-term employment opportunities
commensurate with the amount of Federal fi-
nancial assistance requested; and
‘‘(C) the amount of Federal financial as-
sistance requested is reasonably related to the
size, population, and economic needs of the dis-
trict;
‘‘(4) subject to the 50 percent non-Federal
share required for any project by section 201(c), in-
crease the amount of grant assistance authorized by
section 201 for projects within areas described in
section 502(a), by an amount not to exceed 10 per-
cent of the aggregate cost of any such project, in ac-
cordance with such regulations as the Administrator
shall prescribe if—
‘‘(A) the area described in section 502(a)
is situated within a designated economic devel-
opment district and is actively participating in
the economic development activities of the dis-
trict; and
‘‘(B) the project is consistent with an ap-
proved investment strategy.
‘‘(b) AUTHORITIES.—In designating economic devel-
opment districts and approving district investment strate-
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gies under subsection (a), the Administrator may, under
regulations prescribed by the Administrator—
‘‘(1) invite the several States to draw up pro-
posed district boundaries and to identify potential
economic development centers;
‘‘(2) cooperate with the several States—
‘‘(A) in sponsoring and assisting district
economic planning and development groups;
and
‘‘(B) in assisting such district groups to
formulate district investment strategies; and
‘‘(3) encourage participation by appropriate
local governmental authorities in such economic de-
velopment districts.
‘‘(c) TERMINATION OR MODIFICATION OF DESIGNA-
TIONS.—The Administrator shall by regulation prescribe
standards for the termination or modification of economic
development districts and economic development centers
designated under the authority of this section.
‘‘(d) DEFINITIONS.—In this Act, the following defini-
tions apply:
‘‘(1) ECONOMIC DEVELOPMENT DISTRICT.—The
term ‘economic development district’ refers to any
area within the United States composed of cooperat-
ing areas described in section 502(a) and, where ap-
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propriate, designated economic development centers
and neighboring counties or communities, which has
been designated by the Administrator as an eco-
nomic development district. Such term includes any
economic development district designated under sec-
tion 403 of this Act, as in effect on the day before
the effective date specified in section 802.
‘‘(2) ECONOMIC DEVELOPMENT CENTER.—The
term ‘economic development center’ refers to any
area within the United States which has been identi-
fied as an economic development center in an ap-
proved investment strategy and which has been des-
ignated by the Administrator as eligible for financial
assistance under this Act in accordance with the
provisions of this section.
‘‘(3) LOCAL
GOVERNMENT.—The term ‘local
government’ means any city, county, town, parish,
village, or other general-purpose political subdivision
of a State.
‘‘(e) PARTS OF ECONOMIC DEVELOPMENT DISTRICTS
NOT WITHIN AREAS DESCRIBED IN SECTION 502(a).—
The Administrator is authorized to provide the financial
assistance which is available to an area described in sec-
tion 502(a) under this Act to those parts of an economic
development district which are not within an area de-
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scribed in section 502(a), when such assistance will be of
a substantial direct benefit to an area described in section
502(a) within such district. Such financial assistance shall
be provided in the same manner and to the same extent
as is provided in this Act for an area described in section
502(a); except that nothing in this subsection shall be con-
strued to permit such parts to receive the increase in the
amount of grant assistance authorized in subsection
(a)(4).
‘‘TITLE VI—ADMINISTRATION
‘‘SEC. 601. APPOINTMENT OF ASSOCIATE ADMINISTRATOR;
FULL TIME EQUIVALENT EMPLOYEES.
‘‘(a) APPOINTMENT.—The Administrator shall carry
out the duties vested in the Administrator by this Act act-
ing through an Associate Administrator of the Small Busi-
ness Administration, who shall be appointed by the Presi-
dent by and with the advice and consent of the Senate.
‘‘(b) PAY.—The Associate Administrator shall be
compensated by the Federal Government at the rate pre-
scribed for level V of the Executive Schedule under section
5316 of title 5, United States Code.
‘‘(c) FULL TIME EQUIVALENT EMPLOYEES.—The
Administrator shall assign not to exceed 25 full time
equivalent employees of the Small Business Administra-
tion (excluding the Associate Administrator) to assist the
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Administrator in the carrying out the duties vested in the
Administrator by this Act.
‘‘SEC. 602. REGIONAL COOPERATIVE AGREEMENTS.
‘‘(a) IN GENERAL.—The Administrator shall make
grants and carry out such other functions under this Act
as the Administrator considers appropriate by entering
into cooperative agreements with 1 or more States on a
regional basis. Each State entering into such an agree-
ment shall be represented by the chief executive officer
of the State.
‘‘(b) TERMS AND CONDITIONS.—A cooperative agree-
ment entered into under subsection (a) shall include such
terms and conditions as the Administrator determines are
necessary to carry out the provisions of this Act. Such
terms and conditions at a minimum shall provide that no
decision concerning regional policies or approval of project
or grant applications may be made without the consent
of the Administrator and a majority of the States partici-
pating in the cooperative agreement.
‘‘(c) PARTICIPATION NOT REQUIRED.—No State
shall be required to enter into a cooperative agreement
under this section or to participate in any program estab-
lished by this Act.
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‘‘SEC. 603. ADMINISTRATIVE EXPENSES.
‘‘(a) PAYMENT BY STATES.—Fifty percent of the ad-
ministrative expenses incurred by States in participating
in a cooperative agreement entered into under section 602
shall be paid by such States and the remaining 50 percent
of such expenses shall be paid by the Federal Government.
‘‘(b) DETERMINATION OF STATE SHARE.—The share
of the administrative expenses to be paid by each State
participating in a cooperative agreement shall be deter-
mined by a majority vote of such States. The Adminis-
trator may not participate or vote in such determination.
‘‘(c) DELINQUENT PAYMENTS.—No assistance au-
thorized by this Act shall be furnished to any State or
to any political subdivision or resident of a State, nor shall
the State participate or vote in any decision described in
section 602(b), while such State is delinquent in the pay-
ment of such State’s share of the administrative expenses
described in subsection (a).
‘‘SEC. 604. FEDERAL SHARE.
‘‘Except as otherwise expressly provided by this Act,
the Federal share of the cost of any project funded with
amounts made available under this Act shall not exceed
50 percent of such cost.
‘‘SEC. 605. COOPERATION OF FEDERAL AGENCIES.
‘‘Each Federal department and agency, in accordance
with applicable laws and within the limits of available
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(ii)(I) 
The 
amount 
required 
under 
this
subclause is the amount of any deposit required
under section 8422(e)(1) of such title 5 with respect
to any prior service performed by the individual as
a commissioned officer of the National Oceanic and
Atmospheric Administration.
(II) To determine the amount required under
this subclause, first determine, for each year of serv-
ice with respect to which the deposit under subclause
(I) relates, the product of the normal-cost percent-
age for such year (as determined under the last sen-
tence of this subclause) multiplied by basic pay re-
ceived by the individual for any such service per-
formed in such year. Second, take the sum of the
amounts determined for the respective years under
the first sentence. Finally, subtract from such sum
the amount of the deposit under subclause (I). For
purposes of the first sentence, the normal-cost per-
centage for any year shall be as determined for such
year under the provisions of section 8423(a)(1) of
title 5, United States Code, except that, in the case
of any year before the first year for which any nor-
mal-cost percentage was determined under such pro-
visions, the normal-cost percentage for such first
year shall be used.
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(16) Section 1114 of title 44, United States
Code, is amended by striking ‘‘the Commissioner of
Patents,’’.
(17) Section 1123 of title 44, United States
Code, is amended by striking ‘‘the Patent Office.’’.
(18) Sections 1337 and 1338 of title 44, United
States Code, and the items relating to those sections
in the table of contents for chapter 13 of such title,
are repealed.
(19) Section 10(i) of the Trading With the
Enemy Act (50 U.S.C. App. 10(i)) is amended by
striking ‘‘Commissioner of Patents’’ and inserting
‘‘Commissioner of Patents and Trademarks’’.
(20) Section 8G(a)(2) of the Inspector General
Act of 1978 (5 U.S.C. App.) is amended by inserting
‘‘the Patent and Trademark Office,’’, after ‘‘the
Panama Canal Commission,’’.
Subtitle E—Miscellaneous
Provisions
SEC. 17501. REFERENCES.
Any reference in any other Federal law, Executive
order, rule, regulation, or delegation of authority, or any
document of or pertaining to a department or office from
which a function is transferred by this title—
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subparagraph (C) an amount equal to the credit
determined under subparagraph (B).
(B) AMOUNT OF CREDIT.—The credit de-
termined under this subparagraph for any tax-
able year to which this paragraph applies is an
amount equal to 1⁄3 of the excess (if any) of—
(i) the aggregate tax paid under sec-
tion 55 of such Code for taxable years be-
ginning after December 31, 1994, and be-
fore January 1, 1997, over
(ii) the amount of tax which would
have been imposed by such section 55 for
such taxable years had paragraph (1) ap-
plied to such taxable years.
(C) YEARS CREDIT ALLOWED.—The tax-
able years referred to in this subparagraph are
the first 3 taxable years of the taxpayer begin-
ning after December 31, 1996.
(D) COORDINATION WITH OTHER PROVI-
SIONS.—For purposes of the Internal Revenue
Code of 1986, the credit allowed under para-
graph (1) shall be treated as a credit allowed
under subpart C of part IV of subchapter A of
chapter 1 of such Code and as referred to in
paragraph (2) of 1324(b) of title 31, United