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‘‘(A) A large concentration of low-income
persons (as defined in section 401(e)).
‘‘(B) Areas having substantial outmigra-
tion.
‘‘(C) Substantial underemployment or un-
employment.
An eligible recipient may include any local government or
group of local governments, economic development dis-
trict, Indian tribe, public or private nonprofit organization
or association, community-based organization, business or
worker organization, or any consortium of such entities,
that is able to demonstrate to the satisfaction of the Sec-
retary that they can carry out the objectives of this pro-
gram pursuant to the criteria and requirements estab-
lished in this section.
‘‘(e) SELECTION OF DEMONSTRATION PROJECTS.—
‘‘(1) IN GENERAL.—The Secretary shall make
grants to selected recipients from 3 areas suffering
from long-term economic distress.
‘‘(2) DISTRIBUTION.—One selected recipient
shall be from a rural area which has been subjected
to long-term economic distress as a result of a major
decline in the region’s key industries, 1 from an area
that is a combination of rural, small metropolitan,
and suburban communities, and 1 from an urban
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area with excessive unemployment, concentrated pov-
erty, and high crime.
‘‘(3) INDUSTRIAL
RETENTION
STRATEGY
RE-
QUIREMENT.—Of the 3 recipients described in para-
graph (2), at least 1 of the projects selected shall in-
clude an industrial retention strategy. The selected
recipient from a rural area shall not be required to
have an industrial retention strategy.
‘‘(f) GRANT SELECTION PROCESS.—
‘‘(1) NATIONAL COMPETITION.—The Secretary
shall select recipients of the challenge grants
through a nationally competitive process.
‘‘(2) ELIGIBILITY
REQUIREMENT.—Each se-
lected recipient must submit a comprehensive strat-
egy for generating sustained, long-term economic
growth and for both preserving and creating high-
quality jobs.
‘‘(3) PREFERENCE FOR CERTAIN PROJECTS.—
The Secretary shall give preference to eligible recipi-
ents which—
‘‘(A) utilize the Federal grant plus match-
ing funds to further leverage private and public
capital to create an even larger economic devel-
opment investment fund;
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‘‘(B) represent consortia or partnerships
comprised of at least 2 or more of the groups
identified in subsection (d); or
‘‘(C) intend to use their investment funds
to finance or leverage financing for new busi-
ness development and startups, industrial serv-
ices, industrial modernization of local-based
firms or industrial retention (including em-
ployee stock ownership plans and worker or
management buyouts), or other economic devel-
opment strategies that illustrate ‘best practices’
in economic development.
‘‘(4) BROAD-BASED PARTICIPATION TO BE EN-
COURAGED.—The Secretary shall strongly encourage
broad-based participation of public and private enti-
ties within an area in the development and imple-
mentation of the challenge grant proposals submit-
ted by eligible recipients.
‘‘(g) LIMITATIONS.—The investment funds estab-
lished by the selected recipients shall—
‘‘(1) not be used to permit units of State and
local government to offer tax inducements to attract
businesses to locate in the area; and
‘‘(2) be subject to the same conditions described
in section 202(b)(1).
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No area may receive an economic development challenge
grant if it has been designated an empowerment or enter-
prise community under section 13301 of the Omnibus
Budget Reconciliation Act of 1993.
‘‘(h) PERFORMANCE
EVALUATIONS; REPORT
TO
CONGRESS.—
‘‘(1) EVALUATION
OF
EFFECTIVENESS.—The
Secretary shall conduct performance evaluations of
the demonstration challenge grant project to assess
the effectiveness of this kind of program in generat-
ing sustained economic growth and job creation in
areas of the Nation experiencing long-term economic
distress.
‘‘(2) REPORT.—Based on the evaluations con-
ducted pursuant to paragraph (1), the Secretary
shall submit an annual report to Congress with rec-
ommendations for expansion, modification or termi-
nation of the program.
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—Of the
funds authorized to be appropriated under section 909,
there are authorized to be appropriated $25,000,000 per
fiscal year for fiscal years 1995 and 1996 to carry out
this section. Such sums shall remain available until ex-
pended.’’.
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SEC. 127. AUTHORIZATION OF APPROPRIATIONS.
Section 909 of the Public Works and Economic De-
velopment Act of 1965, as redesignated by section 122 of
this Act, is amended to read as follows:
‘‘SEC. 909. 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 $81,000,000 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
activities related to defense conversion.
‘‘(c) ADDITIONAL AMOUNTS.—In addition to the ap-
propriations authorized by subsection (a), there are au-
thorized to be appropriated to carry out this title such
sums as may be necessary to provide assistance for de-
fense conversion activities and to provide assistance in the
case of a natural disaster. Such sums shall remain avail-
able until expended.’’.
SEC. 128. REFERENCES TO THE SECRETARY.
(a) REFERENCES TO ‘‘HE’’.—The Public Works and
Economic Development Act of 1965 (42 U.S.C. 3121 et
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seq.) is amended by striking ‘‘he’’ and inserting ‘‘the Sec-
retary’’ in each of the following:
(1) Section 101(a)(1).
(2) The 4th sentence of section 101(c).
(3) Section 201(a).
(4) Section 202(b)(5).
(5) Section 202(b)(9)(B).
(6) The 1st sentence of section 301(b).
(7) Section 602(b), as redesignated by section
112(b) of this Act.
(8) Section 701(2).
(9) Section 701(4).
(10) Section 701(12)
(11) Section 706, as redesignated by section
117(b) of this Act.
(b) REFERENCES TO ‘‘HIS’’.—Such Act is further
amended by striking ‘‘his’’ and inserting ‘‘the Secretary’s’’
in each of the following:
(1) The 3d and 4th sentences of section 301(a).
(2) Section 701(4).
(3) Section 705, as redesignated by section
117(b) of this Act.
(4) Section 903(c).
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(c) REFERENCES TO ‘‘HIM’’.—Such Act is further
amended by striking ‘‘him’’ and inserting ‘‘the Secretary’’
in each of the following:
(1) Section 602(b), as redesignated by section
112(b) of this Act.
(2) Section 701(4) each place it appears.
(3) Section 701(6).
(4) Section 701(7) both places it appears.
(5) Section 701(9) both places it appears.
(d) OTHER REFERENCES.—Such Act is further
amended—
(1) in section 701 in the matter preceding para-
graph (1) by striking ‘‘his duties’’ and inserting ‘‘the
duties of the Secretary’’;
(2) in section 701(4) by striking ‘‘he shall de-
termine’’ and inserting ‘‘the Secretary determines’’;
(3) in section 701(6) by striking ‘‘he shall de-
termine’’ and inserting ‘‘the Secretary shall deter-
mine’’; and
(4) in section 701(11) by striking ‘‘his prop-
erty’’ and all that follows before the semicolon and
inserting ‘‘the Secretary’s property’’.
SEC. 129. 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
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violation of sections 2 through 4 of the Act of March 3,
1933 (41 U.S.C. 10a–10c; popularly known as the ‘‘Buy
American Act’’), which are applicable to those funds. The
Secretary of Commerce shall provide to each recipient of
such funds notice of the requirements specified in this sec-
tion and information on methods to comply with such re-
quirements.
SEC. 130. REGULATORY RELIEF.
The Administrator shall, upon petition from an entity
impacted adversely by Federal regulations on matters of
economic development as described in this Act, notify the
departments and agencies involved with promulgating and
administering those regulations and suggest to those de-
partments and agencies that regulations be waived which
interfere with economic development. Nothing in this sec-
tion shall affect the ability of the Administrator to carry
out his duties otherwise provided by law.
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 6th sentence and inserting ‘‘and in
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severely distressed and underdeveloped counties and
areas lacking resources for basic services.’’; and
(2) by adding at the end the following new sub-
section:
‘‘(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 na-
tional and global economics over the past decade have cre-
ated new problems and challenges for rural areas through-
out the Nation and especially for the Appalachian region.
Thus, the problems of the region are not only to provide
the infrastructure necessary to economic and human re-
source development, to develop its industry, and to gen-
erate a diversified regional economy, but to make the re-
gion’s industrial and commercial resources more competi-
tive in national and world markets. It is, therefore, also
the purpose of this Act to provide a framework for coordi-
nating Federal, State, and local initiatives to respond to
the economic competitive challenge through improving the
skills of the region’s manpower, adapting and applying
new technologies for the region’s businesses, and improv-
ing 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 basic serv-
ices for the more disadvantaged areas of the region so as
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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 Develop-
ment 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 additional meetings by electronic means
as the Commission considers advisable.’’;
(2) at the end of the third sentence of sub-
section (b) by striking ‘‘present’’; and
(3) at the end of the fourth sentence of sub-
section (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
appropriated to carry out this section $3,400,000 for
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fiscal year 1994 and $3,600,000 per fiscal year for
each of fiscal years 1995 and 1996. Such sums shall
remain 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 ex-
penses of the Federal Cochairman, the Federal Co-
chairman’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 fol-
lows:
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section
$160,000,000 for fiscal year 1994, $100,000,000 for each
of fiscal years 1995 and 1996, and such additional sums
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as may be necessary 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
striking ‘‘70 per centum’’ and inserting ‘‘80 per-
cent’’.
(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 Develop-
ment 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 Cochairman 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 Decem-
ber 31, 1980,’’.
(c) LIMITATION ON COVERED ROAD PROJECTS.—
The second sentence of section 214(c) of such Act is
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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
distressed and underdeveloped county or area lacking re-
sources 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
authorized under this Act to be used to assist establish-
ments 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.
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(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 con-
solidations and other methods of increasing effi-
ciency of local governments, the establishment and
operation by States, public agencies, or nonprofit de-
velopment organizations of revolving funds for busi-
ness assistance loans, the establishment and oper-
ation of business incubators and the provision of in-
dustrial facilities and equipment by public agencies
and nonprofit organizations on such terms (includ-
ing terms of reasonable recovery of grant funds
upon resale) as are approved by the Commission,
and the acquisition and development of land)’’.
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(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.—Sec-
tion 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 Develop-
ment 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 $83,400,000 per
fiscal year for each of fiscal years 1994, 1995, and 1996.
Such sums shall remain available until expended.’’.
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SEC. 210. DEFINITION OF APPALACHIAN REGION.
Section 403 of the Appalachian Regional Develop-
ment Act of 1965 (40 U.S.C. App. 403) is amended—
(1) in the 1st undesignated paragraph (relating
to Alabama) by inserting ‘‘Hale,;’’ after ‘‘Franklin,’’;
and
(2) in the 12th undesignated paragraph (relat-
ing 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 Develop-
ment 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 Re-
gional Development Task Force (hereinafter in this sec-
tion 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 characteris-
tics of the Appalachian Regional Commission (in-
cluding the Commission’s Federal-State partnership,
program flexibility, and regional approach) have con-
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tributed to the achievement of the Commission’s
goals; and
(2) whether or not such characteristics may be
used to address needs which may exist in other rural
areas suffering from economic distress, including the
Lower Mississippi delta, Mexican border, 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
President.
(B) Three members appointed by the
President pro tempore of the Senate.
(C) Three members appointed by the
Speaker 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,
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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
American Act’’), which are applicable to those funds. The
Appalachian Regional Commission shall provide to each
recipient of such funds notice of the requirements specified