113
‘‘(C) the economic development
record of the applicant organization,
including the organization’s prior ex-
perience and its capacity to leverage
or attract funding from the private
sector;
‘‘(D) the ability of the applicant
organization to raise funds necessary
to meet any matching requirements
applicable to the assistance provided
under this title;
‘‘(E) how the applicant organiza-
tion will coordinate or create part-
nerships with other organizations in
the community and the extent to
which the applicant will increase the
resources for economic development
activities through such coordination
or by forging partnerships with pri-
vate financial institutions;
‘‘(F) the applicant organization’s
record in targeting assistance to eco-
nomically 
distressed 
communities;
and
114
‘‘(G) 
the 
unique 
development
needs of urban areas with popu-
lations of 400,000 or less.
‘‘(e) BASE CLOSINGS AND REALIGNMENTS.—
‘‘(1) LOCATION
OF
PROJECTS.—In any
case in which the Secretary determines a
need for assistance under subsection (a)
due to the closure or realignment of a
military installation, the Secretary may
make 
such 
assistance 
available 
for
projects to be carried out on the military
installation and for projects to be carried
out in communities adversely affected by
the closure or realignment.
‘‘(2) INTEREST IN PROPERTY.—Notwith-
standing any other provision of law, the
Secretary may provide to an eligible re-
cipient any assistance available under
this Act for a project to be carried out on
a military installation that is closed or
scheduled for closure or realignment
without requiring that the eligible recipi-
ent have title to the property or a lease-
hold interest in the property for any
specified term.
115
‘‘SEC. 704. ANNUAL REPORTS BY RECIPIENT AND SEC-
RETARY.
‘‘(a) RECIPIENT’S
REPORT.—Each eligible
recipient which receives assistance under
this title shall annually during the period
such assistance continues make a full and
complete report to the Secretary, in such
manner as the Secretary shall prescribe, and
such report shall contain an evaluation of the
effectiveness of the economic assistance pro-
vided under this title in meeting the need it
was designed to alleviate and the purposes of
this title.
‘‘(b) SECRETARY’S REPORT.—The Secretary
shall include in the annual report pursuant to
section 3217 of this title a consolidated report
with his recommendations, if any, on the as-
sistance authorized under this title, in a form
which he deems appropriate.
‘‘SEC. 705. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There is authorized to
be appropriated to carry out this title
$115,542,000 
for 
fiscal 
year 
1994 
and
$124,800,000 for fiscal year 1995. Such sums
shall remain available until expended.
116
‘‘(b) SET-ASIDE FOR DEFENSE CONVERSION
ACTIVITIES.—Of amounts appropriated pursu-
ant to subsection (a) for fiscal year 1994, not
less than $80,000,000 shall be available for
purposes of assisting eligible recipients in ac-
tivities related to defense conversion.
‘‘(c) ADDITIONAL AMOUNTS.—In addition to
the appropriations authorized by subsection
(a), there is authorized to be appropriated to
carry out this title such sums as may be nec-
essary to provide assistance for defense con-
version activities and to provide assistance in
the case of a natural disaster. Such sums shall
remain available until expended.
‘‘Subtitle B—Economic
Development Financing
‘‘SEC. 711. GUARANTEED LOAN PROGRAM.
‘‘(a) IN GENERAL.—To the extent the Sec-
retary deems it appropriate to carry out the
purposes of this title, the Secretary may guar-
antee loans made to private borrowers by pri-
vate lending institutions, community develop-
ment financial institutions, and other lenders
as the Secretary considers appropriate, ex-
cept that the Secretary may guarantee loans
117
of less than $750,000 only if the borrower is
not eligible for a loan guarantee under the
Small Business Act.
‘‘(b) ELIGIBLE
ACTIVITIES.—Activities for
which loans may be guaranteed under this
title include the development of land and fa-
cilities (including machinery and equipment)
for industrial or commercial usage (such as
the construction of new buildings and the re-
habilitation of abandoned or unoccupied
buildings, and alterations, conversion, or en-
largement of existing buildings), or for the
provision of working capital.
‘‘(c) TERMS AND CONDITIONS.—
‘‘(1) IN GENERAL.—The Secretary may
make such guarantees upon application
of the lenders and upon such terms and
conditions as the Secretary may pre-
scribe, except that no such guarantee
shall at any time exceed 90 percent of the
amount of the outstanding unpaid bal-
ance of such loans.
‘‘(2) PRESUMPTION OF VALIDITY.—Guar-
antees under paragraph (1) shall be con-
clusive evidence that the guarantee has
118
been properly obtained, that the underly-
ing loan qualifies for such guarantee, and
that, but for fraud or material misrepre-
sentation by the holder, such guarantee
will be presumed to be valid, legal, and
enforceable.
‘‘(3) FULL FAITH AND CREDIT OF U.S.—
Guarantees under paragraph (1) shall
have the full faith and credit of the Unit-
ed States Government.
‘‘(4) 
LENDER
RESPONSIBILITIES.—No
guarantee may be provided unless the
lender is responsible and makes adequate
provision for servicing the loan on rea-
sonable terms and for protecting the fi-
nancial interest of the United States.
‘‘(5) PROHIBITION
ON
CERTAIN
LOAN
GUARANTEES.—No loan may be guaranteed
if the proceeds of such loan are excluded
from gross income for the purposes of
Chapter 1 of the Internal Revenue Code
of 1986 or if the guarantee provides suffi-
cient collateral or security, as determined
by the Secretary, for other obligations
the income from which is so excluded.
119
‘‘(d) PREFERRED LENDER PREFERENCE.—To
the extent feasible, the Secretary shall con-
duct the guarantee program established
under this section on a preferred lender basis
and authorize lenders, in accordance with
agreements entered into between the Sec-
retary and such lenders, to take such actions
on the Secretary’s behalf as the Secretary
deems appropriate, including the determina-
tion of eligibility and creditworthiness and
loan monitoring, collection and liquidation.
‘‘SEC. 712. PILOT EQUITY FINANCE PROGRAM.
‘‘(a) IN GENERAL.—In order to study the
feasibility and desirability of a program of eq-
uity financing, the Secretary shall establish a
5-year pilot program under which the Sec-
retary may, either directly or through grants
made to eligible recipients (as defined in sec-
tion 702), purchase or commit to purchase
nonvoting equity instruments, with or with-
out equity warrants, or commit to guarantee
the payment of up to 50 percent of the re-
demption price of, and dividends on, such eq-
uity instruments of private United States
businesses or nonprofit organizations and as-
120
sociations for the purpose of providing cap-
ital for any project which is consistent with
the provisions of this title.
‘‘(b) ESTABLISHMENT
OF FUND.—For pur-
poses of conducting the pilot program pro-
vided under subsection (a), the Secretary
shall establish an Equity Investment Revolv-
ing Fund to carry out the purposes of this sec-
tion.
‘‘(c) DISPOSAL
OF EQUITY INSTRUMENTS.—
The Secretary shall endeavor to dispose of
any equity instruments purchased or guaran-
teed under this section within the 10-year pe-
riod beginning on the date of the acquisition
of such interest.
‘‘(d) USE OF PAYMENTS.—
‘‘(1) USE
OF
PAYMENTS
TO
THE
SEC-
RETARY.—Amounts received by the Sec-
retary from the payment of dividends
and the redemption of equity instruments
shall be deposited in the Equity Invest-
ment Revolving Fund and shall be avail-
able to make or guarantee additional eq-
uity investments consistent with this sec-
tion.
121
‘‘(2) USE OF PAYMENTS TO ELIGIBLE RE-
CIPIENT INTERMEDIARIES.—Of the amounts
received 
by 
eligible 
recipient
intermediaries from the payment of divi-
dends and the redemption of equity in-
struments—
‘‘(A) up to 50 percent may be re-
tained by such organizations to make
or guarantee additional equity invest-
ments consistent with this section;
and
‘‘(B) no less than 50 percent shall
be returned to the Secretary to be de-
posited into the Fund established
under subsection (b) to make or guar-
antee additional equity investments
consistent with this section.
‘‘(e) INVESTMENT OF EXCESS FUNDS.—If the
Secretary determines that the amount of
money in the Fund exceeds the current re-
quirements of the Fund, the Secretary may di-
rect the Secretary of the Treasury to invest
such amounts in obligations of the United
States, in obligations guaranteed by the
United States Government, or in such other
122
obligations or securities of the United States
as the Secretary of the Treasury deems appro-
priate.
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—
Of the funds authorized to be appropriated
under section 705, there are authorized to be
appropriated $10,000,000 for fiscal year 1995,
to carry out this section. Such sums shall re-
main available until expended.
‘‘SEC. 713. TREATMENT OF REVOLVING LOAN FUNDS.
‘‘(a) IN GENERAL.—Amounts from grants
under this title which are used by an eligible
recipient to establish a revolving loan fund
shall not be treated, except as provided by
subsection (b), as amounts derived from Fed-
eral 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) EXCEPTION.—Amounts described in
subsection (a) which are loaned from a revolv-
ing loan fund to a borrower and repaid to the
fund—
‘‘(1) may only be used for projects
which are consistent with the purposes of
this title; and
123
‘‘(2) shall be subject to the financial
management, accounting, reporting, and
auditing standards which were originally
applicable to such amounts.
‘‘(c) REGULATIONS.—Not later than 30 days
after the enactment of this section, the Sec-
retary shall issue regulations to carry out sub-
section (a).
‘‘(d) PUBLIC REVIEW AND COMMENT.—Before
issuing any final guidelines or administrative
manuals governing the operation of revolving
loan funds established using amounts from
grants under this title, the Secretary shall
provide reasonable opportunity for public re-
view of and comment on such guidelines and
administrative manuals.
‘‘SEC. 714. 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 may be sold, at the
discretion of the grantee of the Fund, to a
third party provided that the proceeds of the
sale—
124
‘‘(1) shall be deposited in the Fund
and only used for projects which are con-
sistent with the purposes of this title, and
‘‘(2) shall be subject to the financial
management, accounting, reporting, and
auditing standards which were originally
applicable to the financial instrument.
‘‘SEC. 715. ECONOMIC DEVELOPMENT CHALLENGE GRANTS
DEMONSTRATION PROJECT.
‘‘(a) IN GENERAL.—In order to study the
feasibility and desirability of using challenge
grants to generate new pools of investment
capital in areas suffering from long-term eco-
nomic deterioration, the Secretary shall es-
tablish a multiyear demonstration project
under which the Secretary shall provide
grants to selected recipients, to be matched
by the recipients 1 dollar for every 2 Federal
dollars, for the purpose of establishing sub-
stantially leveraged financing for business de-
velopment and other innovative economic de-
velopment efforts.
‘‘(b) FEDERAL
AND COMMUNITY CONTRIBU-
TIONS.—
125
‘‘(1) IN GENERAL.—The Secretary shall
grant 2 dollars for every 1 dollar raised
by 
each 
selected 
recipient, 
up 
to
$10,000,000 per year per selected recipi-
ent.
‘‘(2) USE OF OTHER FEDERAL FUNDS IN
CONJUNCTION
WITH
CHALLENGE
GRANT.—
Funds from other Federal programs may
be used in conjunction or merged with
the challenge grant and matching funds
to form a larger investment fund.
‘‘(c) ESTABLISHMENT AND USE OF FUNDS.—
‘‘(1) ESTABLISHMENT.—For purposes of
this Act, an investment fund established
by a selected recipient consists of—
‘‘(A) the economic development
challenge grant received by the se-
lected recipient;
‘‘(B) the matching funds required
under subsection (b); and
‘‘(C) any such other funds that
may be derived from other sources,
including other Federal funds.
‘‘(2) USE.—An investment fund shall
be used by the selected recipients for the
126
purposes of generating long-term sustain-
able 
economic 
development 
and 
job
growth in areas identified by the selected
recipients, pursuant to the requirements
and limitations of eligibility and perform-
ance in subsections (d), (e), (f), (g) and
(h).
‘‘(d) ELIGIBLE RECIPIENTS.—The Secretary
shall make grants to any eligible recipients
for use in an area which must meet 1 or more
of the following criteria:
‘‘(1) The area has a per capita income
of 80 percent or less of the national aver-
age.
‘‘(2) The area has an unemployment
rate 1 percent above the national average
percentage for the more recent 24-month
period for which statistics are available.
‘‘(3) The area has been determined by
the Secretary to have at least 1 of the fol-
lowing conditions:
‘‘(A) A large concentration of low-
income persons (as defined in section
401(e)).
127
‘‘(B) Areas having substantial out-
migration.
‘‘(C) 
Substantial 
underemploy-
ment or unemployment.
An eligible recipient may include any local
government or group of local governments,
economic development district, Indian tribe,
public or private nonprofit organization or
association, community-based organization,
business or worker organization, or any con-
sortium of such entities, that is able to dem-
onstrate to the satisfaction of the Secretary
that they can carry out the objectives of this
program pursuant to the criteria and require-
ments established in this section.
‘‘(e) 
SELECTION
OF
DEMONSTRATION
PROJECTS.—
‘‘(1) IN GENERAL.—The Secretary shall
make grants to selected recipients from 4
to 5 areas suffering from long-term eco-
nomic distress.
‘‘(2) DISTRIBUTION.—At least 1 selected
recipient shall be from a rural area, 1
from a declining industrial area, 1 from
an area that is a combination of rural,
128
small metropolitan, and suburban com-
munities, and 1 from an urban area with
excessive unemployment, concentrated
poverty, and high crime.
‘‘(3) INDUSTRIAL
RETENTION
STRATEGY
REQUIREMENT.—Of the 4 recipients de-
scribed in paragraph (2), at least 1 of the
projects selected shall include an indus-
trial retention strategy.
‘‘(f) GRANT SELECTION PROCESS.—
‘‘(1) NATIONAL COMPETITION.—The Sec-
retary shall select recipients of the chal-
lenge grants through a nationally com-
petitive process.
‘‘(2) ELIGIBILITY
REQUIREMENT.—Each
selected recipient must submit a com-
prehensive strategy for generating sus-
tained, long-term economic growth and
for both preserving and creating high-
quality jobs.
‘‘(3) 
PREFERENCE
FOR
CERTAIN
PROJECTS.—The Secretary shall give pref-
erence to eligible recipients which—
‘‘(A) utilize the Federal grant plus
matching funds to further leverage
129
private and public capital to create
an even larger economic development
investment fund;
‘‘(B) represent consortia or part-
nerships comprised of at least 2 or
more of the groups identified in sub-
section (d); or
‘‘(C) intend to use their invest-
ment funds to finance or leverage fi-
nancing for new business develop-
ment and startups, industrial serv-
ices, 
industrial 
modernization 
of
local-based firms or industrial reten-
tion (including employee stock own-
ership plans and worker or manage-
ment buyouts), or other economic de-
velopment strategies that illustrate
‘best practices’ in economic develop-
ment.
‘‘(4) BROAD-BASED PARTICIPATION TO BE
ENCOURAGED.—The Secretary shall strong-
ly encourage broad-based participation of
public and private entities within an area
in the development and implementation
130
of the challenge grant proposals submit-
ted by eligible recipients.
‘‘(g) LIMITATIONS.—The investment funds
established 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 lo-
cate in the area; and
‘‘(2) be subject to the same conditions
described in section 202(b)(1).
No area may receive an economic develop-
ment challenge grant if it has been designated
an empowerment or enterprise 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 chal-
lenge grant project to assess the effec-
tiveness of this kind of program in gener-
ating sustained economic growth and job
creation in areas of the Nation experienc-
ing long-term economic distress.
131
‘‘(2) REPORT.—Based on the evalua-
tions conducted pursuant to paragraph
(1), the Secretary shall submit an annual
report to Congress with recommenda-
tions for expansion, modification or ter-
mination of the program.
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—
Of the funds authorized to be appropriated
under section 705, there are authorized to be
appropriated $30,000,000 for fiscal year 1995
to carry out this section. Such sums shall re-
main available until expended.
‘‘Subtitle C—Business Development
Assistance
‘‘SEC. 721. FINDINGS, PURPOSES, AND DEFINITIONS.
‘‘(a) FINDINGS.—The Congress hereby finds
the following:
‘‘(1) Through its support and funding
of research and development in this Na-
tion’s Federal agencies, laboratories, and
educational institutions, the Federal Gov-
ernment has fostered the creation of
thousands of technologies, processes, and
other proprietary rights owned, or held
132
in whole or part, by the Federal Govern-
ment.
‘‘(2) If commercialized, these tech-
nologies, processes, and other propri-
etary rights owned, or held in whole or
part, by the Federal Government hold the
potential to be a significant tool to foster
economic development and to create sig-
nificant numbers of new jobs at good
wages for American workers.
‘‘(3) The Federal Government has not
been sufficiently effective in encouraging
the commercialization of these tech-
nologies, processes, and other propri-
etary rights owned, or held in whole or
part, by the Federal Government.
‘‘(4) The Federal Government does
not have an effective mechanism to en-
courage the commercialization of these
technologies, processes, and other propri-
etary rights by businesses located in
parts of the Nation in need of economic
development.
‘‘(5) Throughout the Federal Govern-
ment, there is no single inventory or
133
source of information on technologies,
processes, and other proprietary rights
owned, or held in whole or part, by the
Federal Government.
‘‘(6) 
Information 
on 
technologies,
processes, and other proprietary rights
owned, or held in whole or part, by the
Federal Government is not standardized
in form or content, is separately main-
tained by numerous Federal agencies and
departments, and is not easily accessible
by the public.
‘‘(7) Businesses and entrepreneurs in
areas in need of economic development
are largely unaware of the existence of
these technologies, processes, and other
proprietary rights and largely unaware
of the possibilities for obtaining the
rights to these technologies, processes,
and other proprietary rights for the pur-
pose of commercialization.
‘‘(8) It is in the economic interest of
the United States to facilitate the private
sector commercialization of technologies,
processes, and other proprietary rights
134
by United States businesses located in
areas in need of economic development.
‘‘(9) Greater effectiveness will be
achieved through the utilization of the
private sector corporate structure and
profit incentives in facilitating the com-
mercialization of technologies, processes,
and other proprietary rights than can
reasonably be expected by the Federal
Government performing this function.
‘‘(b) PURPOSES.—The purposes of this sub-
title are as follows:
‘‘(1) To provide assistance to private-
sector United States businesses, located
in areas in need of economic develop-
ment, 
to 
commercialize 
technologies,
processes, and other proprietary rights
owned, or held in whole or part, by the
Federal Government.
‘‘(2) To create new employment op-
portunities by facilitating the commer-
cialization of technologies, processes, and
other proprietary rights by United States
businesses and entrepreneurs in areas in
need of economic development.
135
‘‘(3) To develop a single, comprehen-
sive data base of information on tech-
nologies, processes, and other propri-
etary rights owned, or held in whole or
part, by the Federal Government, which
is standardized and easily accessible.
‘‘(4) To heighten the awareness of
United 
States 
businesses 
and 
entre-
preneurs of the availability for commer-
cialization of technologies, processes, and
other proprietary rights owned, or held
in whole or part, by the Federal Govern-
ment.
‘‘(c) DEFINITIONS.—For purposes of this
subtitle, the following definitions shall apply:
‘‘(1) SECRETARY.—The term ‘Secretary’
means the Secretary of Commerce.
‘‘(2) CORPORATION.—The term ‘Cor-
poration’ means the Business Develop-
ment and Technology Commercialization
Corporation established under this sub-
title.
‘‘(3) BOARD.—The term ‘Board’ means
the Board of Directors of the Business
136
Development and Technology Commer-
cialization Corporation.
‘‘(4) QUALIFIED
CONCERN.—The term
‘qualified 
concern’ 
means 
a 
United
States-based consortium, a private United
States business, or an educational institu-
tion participating in a joint project with
1 or more private United States busi-
nesses, for the development and commer-
cialization of technologies, processes, and
other proprietary rights—
‘‘(A) owned or held in whole or
part by Federal departments, agen-
cies, or government-controlled cor-
porations;
‘‘(B) developed in Federal labora-
tories;
‘‘(C) arising in the course of feder-
ally funded research at educational
institutions, other units of govern-
ment, or with private concerns; or
‘‘(D) which are made available to
the Federal Government by private
concerns.
137
‘‘SEC. 722. CONSOLIDATION OF INFORMATION ON TECH-
NOLOGIES.
‘‘(a) ESTABLISHMENT
OF DATA.—The Sec-
retary shall establish and maintain an inte-
grated, comprehensive data base describing
all technologies, processes, and other propri-
etary rights owned, or held in whole or part,
by the Federal Government, or which origi-
nated in the course of federally funded re-
search in which the Federal Government has
an interest.
‘‘(b) STANDARDIZATION
AND ACCESSIBILITY
OF INFORMATION.—The Secretary shall take
such steps as are necessary to ensure that the
information contained in the data base estab-
lished under subsection (a) is in a standard-
ized form, is accessible and usable in a man-
ner as simple and easy to use as possible, rec-
ognizing the needs of small- and medium-
sized businesses.
‘‘(c) RESPONSIBILITIES.—In carrying out
this section, the Secretary shall—
‘‘(1) consult with and, to the extent
practicable, utilize the capabilities of
other executive agencies, as appropriate,
138
to ensure the efficient and effective im-
plementation of this section; and
‘‘(2) explore, with other executive
agencies, ways to avoid duplication of ef-
fort by consolidating the administration
of the program established by this sec-
tion with any other similar Federal pro-
gram, and as part of such consolidation
may delegate administrative functions, as
necessary and appropriate, to another ex-
ecutive agency.
‘‘(d) OTHER FEDERAL AGENCIES.—Other ex-
ecutive agencies shall provide such informa-
tion, and in such form, as determined by the
Secretary and shall cooperate with the Sec-
retary in carrying out this section.
‘‘(e) ACCESS TO THE DATA BASE.—
‘‘(1) ACCESS TO THE DATA BASE BY THE
CORPORATION.—Except 
as 
provided 
in
paragraph (3), the Secretary shall pro-
vide unlimited access to the data base es-
tablished under this section to the Busi-
ness Development and Technology Com-
mercialization Corporation established
under this part, without fee, to assist the
139
Corporation in meeting its responsibil-
ities under this part.
‘‘(2) ACCESS TO THE DATA BASE BY THE
PUBLIC.—Except as provided in paragraph
(3), the Secretary shall, by regulation, de-
velop and implement procedures provid-
ing for access to the data base estab-
lished under this section to members of
the general public.
‘‘(3) RESTRICTIONS.—If, in consultation
with the heads of other executive agen-
cies, the Secretary determines that access
by the Corporation or any other person
to information contained in the data base
established under this section would—
‘‘(A) threaten national security;
‘‘(B) violate the proprietary rights
of any private interest; or
‘‘(C) be otherwise inappropriate,
the Secretary shall take such steps as the
Secretary may determine to be appro-
priate to limit access to the information
in the data base described in subpara-
graph (A), (B), or (C) to the Corporation
or any other person.
140
‘‘(f) REVIEW
OF CURRENT FEDERAL TECH-
NOLOGY TRANSFER EFFORTS.—
‘‘(1) IN GENERAL.—The Secretary shall
conduct a review of all technology trans-
fer and commercialization activities with-
in all Federal departments, agencies, and
laboratories, or which are otherwise sup-
ported by Federal funds. This review
shall identify those activities which may
overlap 
or 
duplicate 
the 
technology
transfer and commercialization activities
provided for under this subtitle.
‘‘(2) REPORTS.—Before the end of the
1-year period beginning on the date of
the enactment of the Economic Develop-
ment Financing Act of 1994, the Secretary
shall issue a report to the Congress de-
scribing in detail—
‘‘(A) the findings of the review di-
rected under paragraph (1),
‘‘(B) the funding levels of each ex-
isting Federal technology transfer
and commercialization activities, and
‘‘(C) 
recommendations 
for 
the
modification or elimination of any ex-
141
isting Federal technology transfer
and 
commercialization 
activities
which he finds to be duplicative of
the activities provided for under this
subtitle.
‘‘SEC. 723. BUSINESS DEVELOPMENT AND TECHNOLOGY
COMMERCIALIZATION CORPORATION.
‘‘(a) ESTABLISHMENT OF CORPORATION.—
‘‘(1) IN GENERAL.—There shall be es-
tablished a Business Development and
Technology Commercialization Corpora-
tion (hereafter in this section referred to
as the ‘Corporation’).
‘‘(2) PURPOSE.—The Corporation shall
be operated for the purpose of fostering
economic growth, assisting in the cre-
ation of new employment opportunities,
and strengthening the industrial base of
the United States by providing credit for
businesses and by facilitating the trans-
fer 
and 
commercialization 
of 
tech-
nologies, processes, and other propri-
etary rights—
‘‘(A) owned or held in whole or
part by Federal departments, agen-
142
cies, or government controlled cor-
porations;
‘‘(B) developed in Federal labora-
tories;
‘‘(C) arising in the course of feder-
ally funded research at educational
institutions, other units of govern-
ment, or with private concerns; and
‘‘(D) which are made available by
private concerns.
‘‘(3) CORPORATION
NOT
AN
ESTABLISH-
MENT
OF
THE
UNITED
STATES.—The Cor-
poration shall not be an agency or estab-
lishment of the United States.
‘‘(b) PROCESS OF ORGANIZATION.—
‘‘(1) INCORPORATION.—
‘‘(A) IN
GENERAL.—The Secretary
of Commerce, the Secretary of Labor,
and the Administrator of the Small
Business Administration shall serve
as the incorporators of the Business
Development and Technology Com-
mercialization Corporation and as
the initial members of the Board of
Directors 
established 
under 
sub-
143
section (c)(1) until their successors
are elected and qualified.
‘‘(B) NECESSARY
ACTION
AUTHOR-
IZED.—The incorporators referred to
in subparagraph (A) shall take such
other actions as may be necessary to
establish the Corporation, including
the filing of articles of incorporation.
‘‘(2) 
OWNERSHIP
OF
THE
CORPORA-
TION.—
‘‘(A) RETENTION
OF
FEDERAL
GOV-
ERNMENT INTEREST.—The Federal Gov-
ernment shall retain a 60 percent
nonvoting equity ownership of the
Corporation, except as otherwise pro-
vided under this subtitle.
‘‘(B) SOLICITATION
OF
PROPOSALS
FOR EQUITY INVESTMENT AND MANAGE-
MENT.—Before the end of the 6-month
period beginning on the date of the
enactment of the Economic Develop-
ment Financing Act of 1994, the Sec-
retary of Commerce shall solicit pro-
posals for the sale of the remaining
40 percent of the equity ownership in
144
the Corporation to a United States
private entity or consortium which
will assume the management and op-
eration of the Corporation.
‘‘(C) DEADLINE FOR TRANSFER.—The
sale of the equity ownership interests
pursuant to paragraph (3) shall be
completed before the end of the 6-
month period beginning on the date
of the enactment of the Economic De-
velopment Financing Act of 1994.
‘‘(D) SUBSEQUENT
STOCK
OFFER-
ING.—Any subsequent stock offering
in the Corporation will be managed
in such a manner that 60 percent of
such 
offering 
is 
conveyed 
as
nonvoting equity ownership, without
cost, to the Federal Government.
‘‘(3) SELECTION
CRITERIA
AND
PROCE-
DURES FOR THE SALE OF 40 PERCENT OF THE
EQUITY IN THE CORPORATION.—
‘‘(A) IN GENERAL.—The President,
in consultation with the Secretary of
Commerce, shall make the final selec-
tion of a proposal for the sale of 40
145
percent of the equity in the Corpora-
tion, as provided under this sub-
section.
‘‘(B) CRITERIA
FOR
SELECTING
A
PROPOSAL
TO
RECOMMEND
TO
THE
PRESIDENT.—In selecting a proposal to
recommend to the President for the
sale of 40 percent of the equity in the
Corporation, as described in subpara-
graph (A), the Secretary of Commerce
shall take into consideration the fol-
lowing factors—
‘‘(i) the quality of the oper-
ational plan;
‘‘(ii) the soundness of the fi-
nancing of the organization and
of the operational plan;
‘‘(iii) the qualifications of, and
the diversity of talents and skills
represented by, the submitters of
the proposal, including the extent
to which a combination of organi-
zations is submitting a joint pro-
posal;
146
‘‘(iv) whether a State govern-
ment, or unit of a State govern-
ment, is participating financially
with the organization submitting
a proposal;
‘‘(v) the intentions of the sub-
mitters of the proposal to locate
the headquarters of the Corpora-
tion in an area which is not lo-
cated in the 50 largest Metropoli-
tan Statistical Areas, based on the
1990 Census; and
‘‘(vi) such other factors as the
incorporators determine to be ap-
propriate in meeting the objec-
tives of this Act.
‘‘(C) PROCEDURES FOR SELECTING A
PROPOSAL
TO
RECOMMEND
TO
THE
PRESIDENT.—In selecting a proposal to
recommend to the President for the
sale of 40 percent of the equity in the
Corporation, as described in subpara-
graph (A), the Secretary of Commerce
shall ensure that in the selection
process—
147
‘‘(i) not less than 3 proposals
are identified as proposals to re-
ceive further consideration, as
provided in clauses (ii) and (iii),
except that, if fewer than 3 pro-
posals are received, each of them
shall receive further consider-
ation;
‘‘(ii) a review procedure is im-
plemented under which the spon-
sors of the proposals identified in
clause (i) are provided an oppor-
tunity to make personal presen-
tations of their proposals to the
Secretary or the Secretary’s des-
ignee; and
‘‘(iii) individual negotiations
for the revision of proposals iden-
tified in clause (i) may be entered
into.
‘‘(4) CONVERSION OF NONVOTING EQUITY
TO VOTING EQUITY.—Before the solicitation
for proposals in accordance with para-
graph (2)(B), the Secretary shall pre-
scribe regulations setting forth the cir-
148
cumstances under which the Federal
Government’s 60 percent nonvoting eq-
uity ownership may be converted into
voting equity ownership in order to meet
the objectives of this Act or otherwise
protect the interests of the American tax-
payers.
‘‘(c) DIRECTORS, OFFICERS, AND EMPLOY-
EES.—
‘‘(1) BOARD OF DIRECTORS.—
‘‘(A) APPOINTMENT
AND
NUMBER.—
The Corporation shall be under the
management of a Board of Directors
(hereafter in this section referred to
as the ‘Board’) consisting of individ-
uals who are citizens of the United
States, of whom 1 shall be elected by
the Board to serve as chairperson.
‘‘(B) TERM.—The members of the
Board shall be elected annually by
the stockholders of the Corporation.
‘‘(C) PROHIBITION ON CONFLICTS OF
INTEREST.—
‘‘(i) IN
GENERAL.—A director
may not participate in the delib-
149
erations on, or vote on, a matter
regarding an application, claim,
or other matter pending before
the Corporation if, to the direc-
tor’s knowledge, the director, the
director’s spouse, minor child,
parent, sibling, or partner, or any
organization, other than the Cor-
poration, in which the director is
serving as an officer, director,
trustee, partner, or employee, or
any person with whom the direc-
tor is negotiating or has any ar-
rangement concerning perspec-
tive employment, has a financial
interest in the matter.
‘‘(ii) CONSEQUENCE
OF
VIOLA-
TION.—A director who violates
this subparagraph shall be sub-
ject to removal from the Board,
but such a violation shall not im-
pair, nullify, or otherwise affect
the validity of any otherwise law-
ful action by the Corporation in
which such director participated.
150
‘‘(D) 
COMPENSATION
OF
THE
BOARD.—
‘‘(i) AMOUNT.—The rate of com-
pensation 
of 
members 
of 
the
Board shall be fixed by the stock-
holders of the Corporation.
‘‘(ii) FUNDS.—Funds for such
compensation 
shall 
be 
drawn
from the capital and earnings of
the Corporation.
‘‘(E) 
BYLAWS.—The 
Board 
may
adopt and amend bylaws governing
the operation of the Corporation in a
manner consistent with the provi-
sions of this title and the articles of
incorporation of the Corporation.
‘‘(2) OFFICERS AND EMPLOYEES.—
‘‘(A) 
APPOINTMENT.—The 
Board
shall appoint a chief executive offi-
cer, who shall have the authority to
appoint such other officers and em-
ployees as the officer determines to
be necessary to carry out the provi-
sions of this section and the functions
of the Corporation.
151
‘‘(B) PROHIBITION ON CONFLICTS OF
INTEREST.—
‘‘(i) IN GENERAL.—An officer or
employee may not participate in a
matter regarding an application,
claim, or other matter pending
before the Corporation if, to such
person’s knowledge, the person,
the person’s spouse, minor child,
parent, sibling, or partner, or an
organization, other than the Cor-
poration, in which the person is
serving as an officer, director,
trustee, partner, or employee, or
any person with whom the person
is negotiating or has any arrange-
ment concerning perspective em-
ployment, has a financial interest
in the matter.
‘‘(ii) CONSEQUENCE
OF
VIOLA-
TION.—An officer or employee who
violates this subparagraph shall
be subject to termination, but
such a violation shall not impair,
nullify, or otherwise affect the va-
152
lidity of any otherwise lawful ac-
tion by the Corporation in which
such officer or employee partici-
pated.
‘‘(C) COMPENSATION
OF
OFFICERS
AND EMPLOYEES.—
‘‘(i) IN
GENERAL.—Subject to
clause (i), the rate of compensa-
tion of the chief executive officer,
and all officers and employees, of
the Corporation shall be fixed by
the Board.
‘‘(ii) DELEGATION TO C.E.O.—At
the discretion of the Board, the
Board may delegate to the chief
executive officer, subject to the
provisions of subparagraph (B),
the authority to fix the rate of
compensation for other officers
and employees.
‘‘(D) SOURCE
OF
FUNDS
FOR
COM-
PENSATION.—Funds for compensation
for the chief executive officer, and for
all officers and employees, shall be
153
drawn from the capital and earnings
of the Corporation.
‘‘(E) TENURE.—Officers and em-
ployees shall serve at the pleasure of
the Board.
‘‘(d) GENERAL POWERS.—The Corporation
shall have the power to do the following:
‘‘(1) Have succession in the name of
the Corporation.
‘‘(2) Adopt, alter, and use a corporate
seal.
‘‘(3) Sue and be sued in the name of
the Corporation.
‘‘(4) Make and carry out contracts.
‘‘(5) Exercise such other incidental
powers not inconsistent with this section
that are necessary or appropriate to
carry out the purposes and functions of
the Corporation, including the usual
powers conferred upon a corporation by
the District of Columbia Business Cor-
poration Act.
‘‘(6) Modify the name of the Corpora-
tion.
‘‘(e) PROMOTION OF TECHNOLOGIES.—
154
‘‘(1) MARKETING
OF
TECHNOLOGIES.—
The Corporation shall undertake an ag-
gressive, multifaceted outreach program
to increase awareness of the availability
of technologies, processes, and other pro-
prietary rights to qualified concerns
under this subtitle. This program shall
emphasize the use of new information
technologies, including the utilization of
cable television and the modern elec-
tronic media, and the data base estab-
lished under this subtitle.
‘‘(2) 
UTILIZATION
OF
CABLE
TELE-
VISION.—
‘‘(A) IN
GENERAL.—In implement-
ing the outreach program provided
under paragraph (1), the Corporation
shall enter into contracts for the es-
tablishment of a cable television net-
work devoted to marketing efforts for
the 
commercialization 
of 
tech-
nologies, processes, and other propri-
etary rights—
‘‘(i) owned or held in whole or
part 
by 
Federal 
departments,
155
agencies, 
or 
government 
con-
trolled corporations,
‘‘(ii) developed in Federal lab-
oratories,
‘‘(iii) arising in the course of
federally funded research at edu-
cational institutions, other units
of government or with private
concerns; and
‘‘(iv) 
which 
are 
otherwise
made available to the government
by private concerns.
‘‘(B) PROMOTIONAL
FEES.—Under
terms negotiated between the Sec-
retary and the Corporation, the Sec-
retary is authorized to make pay-
ments to the Corporation for pro-
motional fees for the production of
segments for broadcast over cable tel-
evision, or other appropriate media,
which identify—
‘‘(i) the technologies described
in paragraph (A);
‘‘(ii) their potential commer-
cial applications; and
156
‘‘(iii) methods available for ob-
taining additional information on
the technologies.
‘‘(3) TECHNICAL ASSISTANCE.—
‘‘(A) IN
GENERAL.—The Corpora-
tion shall, upon request, provide tech-
nical assistance and services, as ap-
propriate and needed, to qualified
concerns under this subtitle.
‘‘(B) 
FEES.—The 
Corporation
may—
‘‘(i) charge fees for technical
assistance and services provided
under this section in amounts suf-
ficient to cover the reasonable
cost of such assistance and serv-
ices; and
‘‘(ii) waive such fees on a case-
by-case basis.
‘‘(4) OUTREACH TO SPECIFIC AREAS AND
SMALL BUSINESSES.—The Corporation shall
seek to ensure that qualified concerns
and small businesses located in areas de-
termined by the Secretary of Commerce
to have a depressed economy or chron-
157
ically high unemployment are notified of
the availability of assistance through the
program established under this section
and, to the extent practicable, to encour-
age and facilitate the participation of
such qualified concerns and small busi-
nesses in such program.
‘‘(f) AUTHORITY TO REPRESENT THE GOVERN-
MENT.—
‘‘(1) IN GENERAL.—In accordance with
regulations prescribed by the Secretary,
the Corporation shall act as an agent,
and represent the interests, of the Fed-
eral Government in facilitating the trans-
fer of technologies, processes, and other
proprietary rights to qualified concerns
under this Act.
‘‘(2) RIGHTS OF QUALIFIED CONCERNS.—
In accordance with regulations promul-
gated by the Secretary, the Corporation
is authorized to convey, to qualified con-
cerns, under terms and conditions to be
negotiated between the Corporations and
qualified concerns, such rights which
may be necessary and appropriate to fa-
158
cilitate the commercialization of tech-
nologies, processes, and other propri-
etary rights as provided under this Act.
‘‘(3) MINIMUM RIGHTS OF THE FEDERAL
GOVERNMENT.—In 
the 
conveyance 
of
rights to qualified concerns as provided
for under paragraph (2), the Corporation
shall ensure the following:
‘‘(A) The conveyance agreement
contains language providing for the
right of the Corporation to revoke the
rights provided under paragraph (2)
if—
‘‘(i) the qualified concern does
not demonstrate that it is under-
taking a good faith effort to
achieve the commercialization of
the technology, process, or other
proprietary right; or
‘‘(ii) the Secretary certifies
that the interests of national se-
curity or the general welfare of
the American people necessitates
the revocation of such rights.
159
‘‘(B) The Federal Government re-
tains a license to such technologies,
processes, 
and 
other 
proprietary
rights for the Government’s own use.
‘‘(C) The Federal Government re-
ceives in compensation for the con-
veyance of such rights—
‘‘(i) royalty fees;
‘‘(ii) partial equity ownership
in the qualified concerns to whom
such rights are conveyed;
‘‘(iii) the right to share in the
earnings of the qualified entity
proportionate to the value of the
rights so conveyed; or
‘‘(iv) a sum of money or other
compensation that the Corpora-
tion 
determines 
to 
be 
appro-
priate.
‘‘(g) FINANCING OF CORPORATION.—
‘‘(1) CAPITAL STOCK.—The Corporation
may issue and have outstanding, in such
amounts as it shall determine, shares of
capital stock, without par value, which
160
shall carry voting rights and be eligible
for dividends.
‘‘(2) NONVOTING
SECURITY
ISSUES
AND
CERTIFICATES OF INDEBTEDNESS.—The Cor-
poration may issue, in addition to the
stock authorized by paragraph (1) of this
section, nonvoting securities, bonds, de-
bentures, and other certificates of indebt-
edness as it may determine.
‘‘(h) CONSULTATION WITH FEDERAL AGEN-
CIES, AND WITH PRIVATE PARTIES.—
‘‘(1) 
CONSULTATION
WITH
FEDERAL
AGENCIES.—In carrying out this title, the
Board and the Corporation shall consult
frequently with the Secretary of Com-
merce, and such Federal agencies and de-
partments as is appropriate, to ensure co-
ordination and the maximum utilization
of all related Federal resources to pro-
mote technology transfer and commer-
cialization.
‘‘(2) CONSULTATION WITH PRIVATE PAR-
TIES.—In carrying out this section, the
Board and the Corporation shall solicit
comments from private parties, including
161
representatives of finance, industry, and
organized labor on the role of the Cor-
poration and the needs of private parties.
‘‘(i) AUDIT BY COMPTROLLER GENERAL.—The
Comptroller General of the United States may
audit the financial transactions of the Cor-
poration. For the purposes of carrying out
such an audit, the Comptroller General shall
have access to all books, records, and prop-
erty belonging to, or in the possession of, the
Corporation. In the case of a person or entity
which has entered into a financial relation-
ship with the Corporation, the Comptroller
General shall have access only to those books,
records, and property belonging to, or in the
possession of, the person or entity which per-
tain to the Corporation and which are nec-
essary to carry out the audit. The Comptroller
General shall make a report of each such
audit to the Congress and the President.
‘‘(j) ADMINISTRATION.—
‘‘(1) HEARINGS.—The Board may hold
such hearings, sit and act at such times
and places, take such testimony, receive
such evidence, and publish or otherwise
162
distribute so much of its proceedings and
reports as it may deem advisable.
‘‘(2) OFFICE
SPACE
AND
EQUIPMENT.—
The Board may acquire, furnish, and
equip such office space as it determines
necessary.
‘‘(3) NECESSARY EXPENSES.—The Board
may incur such necessary expenses and
exercise such powers as are consistent
and reasonably required to perform its
functions.
‘‘(4) RECORDS.—To the extent per-
mitted by law, all appropriate records
and papers of the Board shall be made
available for public inspection.
‘‘(5) AID
FROM
FEDERAL
AGENCIES.—
Upon the request of the Board, the head
of a Federal department or agency is au-
thorized to—
‘‘(A) furnish to the Board such in-
formation as the Board deems nec-
essary for carrying out its functions
and as is available to the agency; and
‘‘(B) detail for temporary duty, on
a reimbursable basis, such personnel
163
as the Board deems necessary to
carry out its functions.
‘‘(k) MISCELLANEOUS PROVISIONS.—
‘‘(1) JURISDICTION.—
‘‘(A) IN
GENERAL.—Whenever the
Corporation is a party to any civil ac-
tion under this title, such action shall
be deemed to arise under the laws of
the United States. No attachment or
execution may be issued against the
Corporation, or any property thereof,
prior to entry of final judgment.
‘‘(B) 
CITIZENSHIP
OF
CORPORA-
TION.—The 
Corporation 
shall 
be
deemed to be a citizen only of the
District of Columbia for the purpose
of determining the original jurisdic-
tion of the district courts of the Unit-
ed States in civil actions to which the
Corporation is a party.
‘‘(2) BUSINESS ACTIVITY AND QUALIFICA-
TION.—The Corporation shall be deemed
to be qualified to do business in each
State in which it performs any activity
authorized under this title.
164
‘‘SEC. 724. ASSISTANCE TO BUSINESSES IN SECURING FI-
NANCING.
‘‘(a) INFORMATION
CLEARINGHOUSE.—The
Corporation established under this subtitle
shall act as a one-stop clearinghouse for infor-
mation to assist qualified concerns identify
sources of business development and tech-
nology commercialization financing available
through the Federal Government as well as
through applicable State and local govern-
ment programs and through private sources.
‘‘(b) AGENT
OF
THE
FEDERAL
GOVERN-
MENT.—The Corporation may act as an agent
of the Federal Government for purposes of ac-
cepting applications for financial assistance
and their submission to the appropriate Fed-
eral agency on behalf of a qualified concern.
‘‘SEC. 725. TECHNICAL ASSISTANCE FOR LENDERS AND
BORROWERS.
‘‘(a) IN GENERAL.—The Corporation shall,
upon request, provide technical assistance
and services, as appropriate and needed, to
lenders and borrowers under this title, and
shall ensure that such lenders and borrowers
have ready access to appropriate assistance
165
in order to aid such lenders and borrowers in
achieving the purposes of this subtitle.
‘‘(b) FEES.—The Corporation may—
‘‘(1) charge fees for technical assist-
ance and services provided under this
section in amounts sufficient to cover the
reasonable cost of such assistance and
services; and
‘‘(2) waive such fees on a case-by-case
basis.’’.
SEC. 102. 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.
TITLE II—APPALACHIAN
REGIONAL DEVELOPMENT
SEC. 201. FINDINGS AND PURPOSES.
Section 2 of the Appalachian Regional De-
velopment Act of 1965 (40 U.S.C. App. 2) is
amended—
166
(1) in subsection (a) by striking the
period at the end of the 6th sentence and
inserting ‘‘and in severely distressed and
underdeveloped counties and areas lack-
ing resources for basic services.’’; and
(2) by adding at the end the following
new subsection:
‘‘(c) The Congress further finds and de-
clares that, while substantial progress has
been made in fulfilling many of the objectives
of this Act, rapidly changing national and
global economics over the past decade have
created new problems and challenges for
rural areas throughout the Nation and espe-
cially for the Appalachian region. Thus, the
problems of the region are not only to provide
the infrastructure necessary to economic and
human resource development, to develop its
industry, and to generate a diversified re-
gional economy, but to make the region’s in-
dustrial and commercial resources more com-
petitive in national and world markets. It is,
therefore, also the purpose of this Act to pro-
vide a framework for coordinating Federal,
State, and local initiatives to respond to the
167
economic competitive challenge through im-
proving the skills of the region’s manpower,
adapting and applying new technologies for
the region’s businesses, and improving the ac-
cess of the region’s businesses to the technical
and financial resources necessary to their de-
velopment while continuing to address the
need to provide basic services for the more
disadvantaged areas of the region so as to
provide a fairer opportunity for the people of
the region to share the quality of life gen-
erally enjoyed by citizens across this Nation.’’.
SEC. 202. MEETINGS.
Section 101 of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App. 101)
is amended—
(1) in subsection (a) by adding at the
end the following:
‘‘The Commission shall conduct at least 1
meeting each year with the presence of the
Federal Cochairman and at least a majority of
the State members. The Commission may con-
duct such additional meetings by electronic
means as the Commission considers advis-
able.’’;
168
(2) at the end of the 3d sentence of
subsection (b) by striking ‘‘present’’; and
(3) at the end of the 4th sentence of
subsection (c) by striking ‘‘to be present’’.
SEC. 203. AUTHORIZATIONS FOR ADMINISTRATIVE EX-
PENSES.
Section 105(b) of the Appalachian Re-
gional Development 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 sec-
tion $3,400,000 for fiscal year 1994 and
$3,600,000 for fiscal year 1995. Such sums
shall remain available until expended.
‘‘(2) EXPENSES
OF
FEDERAL
COCHAIR-
MAN.—Of amounts appropriated pursuant
to paragraph (1), not to exceed $1,102,000
for fiscal year 1994 and not to exceed
$1,500,000 for fiscal year 1995 shall be
available for expenses of the Federal Co-
chairman, the Federal Cochairman’s al-
ternate, and the Federal Cochairman’s
staff.’’.
169
SEC. 204. EXTENSION OF LEASE TERMS.
Section 106(7) of the Appalachian Re-
gional Development Act of 1965 (40 U.S.C.
App. 106(7)) is amended by striking ‘‘1982’’ and
inserting ‘‘1995’’.
SEC. 205. HIGHWAY SYSTEM.
(a) AUTHORIZATION
OF APPROPRIATIONS.—
Section 201(g) of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App.
201(g)) is amended to read as follows:
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—
There is authorized to be appropriated to
carry out this section $160,000,000 for fiscal
year 1994 and $100,000,000 for fiscal year 1995.
Such sums shall remain available until ex-
pended.’’.
(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 percent’’.
(2) APPLICABILITY.—The amendment
made by paragraph (1) shall apply to
projects approved after March 31, 1979.
170
SEC. 206. SUPPLEMENTS TO FEDERAL GRANT-IN-AID PRO-
GRAMS.
(a) AVAILABILITY
OF
AMOUNTS.—The 1st
sentence of section 214(a) of the Appalachian
Regional Development Act of 1965 (40 U.S.C.
App. 214(a)) is amended by striking ‘‘the
President is authorized to provide funds to
the Federal Cochairman to be used’’ and in-
serting ‘‘the Federal Cochairman may use
amounts made available under this section’’.
(b) FEDERAL GRANT-IN-AID PROGRAMS DE-
FINED.—The 1st sentence of section 214(c) of
such Act (40 U.S.C. App. 214(c)) is amended by
striking ‘‘on or before December 31, 1980,’’.
(c) 
LIMITATION
ON
COVERED
ROAD
PROJECTS.—The 2d sentence of section 214(c)
of such Act is amended by inserting ‘‘author-
ized by title 23, United States Code’’ after
‘‘road construction’’.
SEC. 207. PROGRAM DEVELOPMENT CRITERIA.
(a) CONSIDERATIONS.—Section 224(a) of the
Appalachian Regional Development Act of
1965 (40 U.S.C. App. 224(a)) is amended by in-
serting before the semicolon at the end of
paragraph (1) the following: ‘‘or in a severely
171
distressed and underdeveloped county or
area lacking resources for basic services’’.
(b) 
REMOVAL
OF
LIMITATIONS.—Section
224(b) of such Act (40 U.S.C. App. 224(b)) is
amended to read as follows:
‘‘(b) LIMITATION.—No financial assistance
shall be authorized under this Act to be used
to assist establishments relocating from 1
area to another.’’.
SEC. 208. GRANTS FOR ADMINISTRATIVE EXPENSES AND
DEMONSTRATION PROJECTS.
(a) AVAILABILITY
OF
AMOUNTS.—Section
302(a) of the Appalachian Regional Develop-
ment Act of 1965 (40 U.S.C. App. 302(a)) is
amended—
(1) by striking ‘‘The President’’ and
inserting ‘‘The Commission’’; and
(2) in paragraphs (1), (2), and (3) by
striking ‘‘to the Commission’’ each place
it appears.
(b) 
RESEARCH
AND
DEMONSTRATION
PROJECTS.—Section 302(a)(3) of such Act (40
U.S.C. App. 302(a)(3)) is amended—
(1) by inserting after ‘‘technical as-
sistance’’ the following: ‘‘(including tech-
172
nical assistance for business development
and stabilization and application of tech-
nologies 
(including 
telecommunication
technologies) and productivity improve-
ment)’’;
(2) by inserting after ‘‘training pro-
grams’’ the following: ‘‘(including on-site
employee training and programs to up-
grade employability of the region’s peo-
ple)’’; and
(3) by inserting after ‘‘demonstra-
tions’’ the following: ‘‘(including dem-
onstrations of service consolidations and
other methods of increasing efficiency of
local governments, the establishment and
operation by States, public agencies, or
nonprofit development organizations of
revolving funds for business assistance
loans, the establishment and operation of
business incubators and the provision of
industrial facilities and equipment by
public agencies and nonprofit organiza-
tions on such terms (including terms of
reasonable recovery of grant funds upon
resale) as are approved by the Commis-
173
sion, and the acquisition and develop-
ment of land)’’.
(c) SOLID WASTE DISPOSAL DEMONSTRATION
PROJECTS.—Section 302(b) of such Act (40
U.S.C. App. 302(b)) is amended by adding at
the end the following new paragraph:
‘‘(5) The Commission shall carry out
projects at not less than 2 sites in the Appa-
lachian region for the purpose of demonstrat-
ing solid waste disposal techniques in rural
areas.’’.
(d) REPEAL OF PROVISION ON USE OF INFOR-
MATION FROM RESEARCH AND DEVELOPMENT AC-
TIVITIES.—Section 302(e) of such Act (40 U.S.C.
302(e)) is repealed.
SEC. 209. AUTHORIZATION OF APPROPRIATIONS FOR GEN-
ERAL PROGRAM.
Section 401 of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App. 401)
is amended to read as follows:
‘‘SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
‘‘In addition to the appropriations author-
ized in section 105 for administrative ex-
penses and in section 201(g) for the Appalach-
ian development highway system and local ac-
174
cess roads, there is authorized to be appro-
priated to the Commission to carry out this
Act $83,400,000 per fiscal year for each of fis-
cal years 1994 and 1995. Such sums shall re-
main available until expended.’’.
SEC. 210. DEFINITION OF APPALACHIAN REGION.
Section 403 of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App. 403)
is amended—
(1) in the 1st undesignated paragraph
(relating to Alabama) by inserting ‘‘Hale,’’
after ‘‘Franklin,’’; and
(2) in the 12th undesignated para-
graph (relating to Virginia)—
(A) by inserting ‘‘Montgomery,’’
after ‘‘Lee,’’; and
(B) 
by 
inserting 
‘‘Roanoke,
Rockbridge,’’ after ‘‘Pulaski,’’.
SEC. 211. EXTENSION OF TERMINATION DATE.
Section 405 of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App. 405)
is amended by striking ‘‘1982’’ and inserting
‘‘1995’’.
175
SEC. 212. REGIONAL DEVELOPMENT TASK FORCE.
(a) ESTABLISHMENT.—There is established
a Regional Development Task Force (herein-
after in this section referred to as the ‘‘Task
Force’’).
(b) DUTIES.—It shall be the duty of the
Task Force to conduct a study on—
(1) the extent to which the unique
characteristics of the Appalachian Re-
gional Commission (including the Com-
mission’s Federal-State partnership, pro-
gram flexibility, and regional approach)
have contributed to the achievement of
the Commission’s goals; and
(2) whether or not the Commission
can utilize such characteristics to ad-
dress needs which may exist in other
rural areas suffering from economic dis-
tress, 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:
176
(A) 3 members appointed by the
President.
(B) 3 members appointed by the
President pro tempore of the Senate.
(C) 3 members appointed by the
Speaker of the House of Representa-
tives.
(2) EX OFFICIO MEMBERS.—The Federal
and State Cochairmen of the Appalachian
Regional Commission shall serve as ex
officio, nonvoting members of the Task
Force.
(d) FACILITIES, SUPPLIES, AND PERSONNEL.—
Upon the request of the Task Force, the Appa-
lachian Regional Commission shall provide to
the Task Force any facilities, supplies, and
personnel necessary for the Task Force to
carry out its responsibilities under this Act;
except that the total cost of such facilities,
supplies, and personnel shall not exceed
$500,000.
(e) USE OF OTHER STUDIES.—In conducting
the study under subsection (b), the Commis-
sion shall incorporate the results of other
studies on the needs of rural areas described
177
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 re-
port 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.
Amend the title so as to read: ‘‘A bill to reauthorize
economic development programs under the Public Works
and Economic Development Act of 1965 and the Appa-
lachian Regional Development Act of 1965 for fiscal
years 1994 and 1995, to reenact the Public Works and
Economic Development Act of 1965 as the Economic De-
velopment Financing Act of 1994, and for other pur-
poses.’’.
HR 2442 RH——2
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