than the expenses of the Secretary) shall be paid by the
States in the region represented by the Regional Commis-
sion and the remaining 50 percent of such expenses shall
be paid by the Federal Government. The expenses of the
Secretary and the Secretary’s staff shall be paid solely by
the Federal Government.
‘‘(b) DETERMINATION OF STATE SHARE.—The share
of the administrative expenses to be paid by each State
shall be determined by the Regional Commission. The Sec-
retary shall 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 member of a Regional Commission participate
or vote in any determination by the Regional Commission,
while such State is delinquent in the payment of such
State’s share of the administrative expenses of the Re-
gional Commission.
‘‘SEC. 104. ADMINISTRATIVE POWERS.
‘‘To carry out its duties under this Act, consistent
with regulations issued by the Secretary, a Regional Com-
mission may take any of the following actions:
‘‘(1) Adopt, amend, and repeal bylaws and rules
governing the conduct of the Regional Commission’s
business and the performance of its functions.
‘‘(2) Appoint and fix the pay of an executive di-
rector and such other personnel as may be necessary
to enable the Regional Commission to carry out its
functions; except that the compensation for any indi-
vidual so appointed shall not exceed the rate of basic
pay for level V of the Executive Schedule and no
member, officer, or employee of the Regional Com-
mission, other than the Secretary, employees of the
Secretary, and any Federal employees detailed under
paragraph (3), shall be deemed a Federal employee
for any purpose.
‘‘(3) Request the head of a Federal department
or agency to detail to temporary duty with the Re-
gional Commission such personnel within the admin-
istrative jurisdiction of such head as the Regional
Commission may need for carrying out its functions,
and each such detail shall be without loss of senior-
ity, pay, or other employee status.
‘‘(4) Arrange for the services of personnel from
any State or local government or any subdivision or
agency thereof, or any intergovernmental agency.
‘‘(5) Make arrangements, including contracts,
with any participating State government for inclu-
sion in a suitable retirement and employee benefits
system of such of its personnel as may not be eligi-
ble for, or continue in, another governmental retire-
ment or employee benefit system, or otherwise pro-
vide for such coverage of its personnel. The Director
of the Office of Personnel Management is authorized
to contract with a Regional Commission for contin-
ued coverage of any Regional Commission employee
who, on a date in the 6-month period ending on the
date of Regional Commission employment, was a
Federal employee, in the retirement program and
other employee benefit programs of the Federal Gov-
ernment.
‘‘(6) Accept, use, and dispose of gifts or dona-
tions of services or property, real, personal, or
mixed, tangible or intangible.
‘‘(7) Subject to the requirements of the Federal
Property and Administrative Services Act of 1949,
enter into and perform such contracts, leases, coop-
erative agreements, or other transactions as may be
necessary in carrying out the Regional Commission’s
functions and on such terms as the Regional Com-
mission may deem appropriate, with any depart-
ment, agency, or instrumentality of the United
States, or with any person, firm, association, or cor-
poration.
‘‘(8) Take such other actions and incur such
other expenses as may be necessary and appropriate.
‘‘SEC. 105. ESTABLISHMENT OF REGIONS.
‘‘(a) IN GENERAL.—For the purposes of this Act,
there are established 8 regions of the United States as
follows:
‘‘(1) REGION I.—Region I shall be composed of
the States of Alabama, Florida, Georgia, Kentucky,
Mississippi, North Carolina, South Carolina, and
Tennessee.
‘‘(2) REGION II.—Region II shall be composed
of the States of Arkansas, Louisiana, New Mexico,
Oklahoma, and Texas.
‘‘(3) REGION III.—Region III shall be composed
of the States of Illinois, Indiana, Michigan, Min-
nesota, Ohio, and Wisconsin.
‘‘(4) REGION IV.—Region IV shall be composed
of the States of Colorado, Iowa, Kansas, Missouri,
Montana, Nebraska, North Dakota, South Dakota,
Utah, and Wyoming.
‘‘(5) REGION V.—Region V shall be composed
of the State of California.
‘‘(6) REGION VI.—Region VI shall be composed
of the States of Alaska, Arizona, Hawaii, Idaho, Ne-
vada, Oregon, and Washington and American
Samoa, Guam, the Marshall Islands, Micronesia,
and the Northern Mariana Islands.
‘‘(7) REGION VII.—Region VII shall be com-
posed of the States of Delaware, Maryland, New
Jersey, New York, Pennsylvania, Virginia, and West
Virginia and the District of Columbia.
‘‘(8) REGION VIII.—Region VIII shall be com-
posed of the States of Connecticut, Maine, Massa-
chusetts, New Hampshire, Rhode Island, and Ver-
mont and Puerto Rico and the Virgin Islands.
‘‘(b) PARTICIPATION NOT REQUIRED.—No State
shall be required to participate in any program under this
Act.
‘‘TITLE II—GRANTS FOR PUBLIC
WORKS AND DEVELOPMENT
FACILITIES
‘‘SEC. 201. DIRECT AND SUPPLEMENTARY GRANTS.
‘‘(a) IN GENERAL.—Upon the application of any eli-
gible recipient, a Regional Commission may—
‘‘(1) make direct grants for the acquisition or
development of land and improvements for public
works, public service, or development facility usage,
and the acquisition, design and engineering, con-
struction, rehabilitation, alteration, expansion, or im-
provement of such facilities, including related ma-
chinery and equipment, within an area described in
section 502(a), if the Regional Commission finds
that—
‘‘(A) the project for which financial assist-
ance is sought will directly or indirectly—
‘‘(i) tend to improve the opportunities,
in the area where such project is or will be
located, for the successful establishment or
expansion of industrial or commercial
plants or facilities;
‘‘(ii) otherwise assist in the creation
of additional long-term employment oppor-
tunities for such area; or
‘‘(iii) primarily benefit the long-term
unemployed and members of low-income
families;
‘‘(B) the project for which a grant is re-
quested will fulfill a pressing need of the area,
or part thereof, in which it is, or will be, lo-
cated;
‘‘(C) the area for which a project is to be
undertaken has an approved investment strat-
egy as provided by section 503 and such project
is consistent with such strategy; and
‘‘(D) in the case of an area described in
section 502(a)(4), the project to be undertaken
will provide immediate useful work to unem-
ployed and underemployed persons in that area;
and
‘‘(2) make supplementary grants in order to en-
able the States and other entities within areas de-
scribed in section 502(a) to take maximum advan-
tage of designated Federal grant-in-aid programs (as
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.—
case of such a grant for a project in an
area described in section 502(a)(4); and
‘‘(iii) in case of any community devel-
opment corporation which the Regional
Commission determines has exhausted its
effective borrowing capacity, the Regional
Commission may reduce the non-Federal
share below the percentage specified in
subparagraph (A) or 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 a Regional
Commission, in accordance with such regulations as
the Secretary 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-
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 Secretary may, in furtherance of the
purposes of this Act, designate as eligible for alloca-
tion 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, a Regional Commission
shall take into consideration the relative needs of the
area and the nature of the projects to be assisted.
‘‘(d) REGULATIONS.—The Secretary shall prescribe
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 such
rules, regulations, and procedures the Secretary shall con-
sider 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 Secretary
shall prescribe regulations which will assure that appro-
priate local governmental authorities have been given a
reasonable opportunity to review and comment upon pro-
posed projects under this section.
‘‘SEC. 202. CONSTRUCTION COST INCREASES.
‘‘In any case where a grant (including a supplemental
grant) has been made by a Regional Commission 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 Regional Commission, 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.
‘‘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 a Regional Commission 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 Regional Commission.
‘‘SEC. 204. CHANGED PROJECT CIRCUMSTANCES.
‘‘In any case where a grant (including a supplemental
grant) has been made by a Regional Commission 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 Re-
gional Commission may approve the use of grant funds
on such changed project if the Regional Commission deter-
mines that such changed project meets the requirements
of this title and that such changes are necessary to en-
hance economic development in the area.
‘‘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 and from compliance
with environmental requirements which remove economic
activities from a locality, and economic adjustment prob-
lems resulting from severe changes in economic conditions
(including long-term economic deterioration), and to en-
courage cooperative intergovernmental action to prevent
or solve economic adjustment problems. Nothing in this
title is intended to replace the efforts of the economic ad-
justment program of the Department of Defense.
‘‘SEC. 302. GRANTS BY REGIONAL COMMISSIONS.
‘‘(a) IN GENERAL.—A Regional Commission is au-
thorized to make grants directly to any eligible recipient
in an area which the Regional Commission determines, in
accordance with criteria to be established by the Secretary
by regulation—
‘‘(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 Regional Commission.
‘‘(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.
‘‘(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.—A Regional Commission to the
extent 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 a Regional Commission determines a need for
assistance under subsection (a) due to the closure or
realignment of a military installation, the Regional
Commission may make such assistance available for
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, a Regional Commis-
sion may provide to an eligible recipient any assist-
ance available under this Act for a project to be car-
ried out on a military installation that is closed or
scheduled for closure or realignment without requir-
ing that the eligible recipient have title to the prop-
erty or a leasehold interest in the property for any
specified term.
‘‘SEC. 303. ANNUAL REPORTS BY RECIPIENT.
‘‘Each eligible recipient which receives assistance
under this title from a Regional Commission shall annu-
ally during the period such assistance continue to make
a full and complete report to the Regional Commission,
in such manner as the Regional Commission shall pre-
scribe, 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-
cluding any financial instrument made available using
amounts from a grant made before the effective date of
the Economic Development Partnership Act of 1995, 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
‘‘(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 of the Economic Development Partner-
ship Act of 1995, the Secretary 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 Secretary 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 of the Eco-
nomic Development Partnership Act of 1995, 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, a Regional Commission may provide technical as-
sistance which would be useful in alleviating or preventing
conditions of excessive unemployment or underemploy-
ment to areas which the Regional Commission finds have
substantial need for such assistance. Such assistance shall
include project planning and feasibility studies, manage-
ment and operational assistance, establishment of business
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 a Regional Commission
through—
‘‘(A) members of the Regional Commis-
sion’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.
‘‘(2) REPAYMENT
TERMS.—A Regional Com-
mission, in its discretion, may require the repayment
of assistance provided under this subsection and pre-
scribe the terms and conditions of such repayment.
‘‘(c) GRANTS
COVERING
ADMINISTRATIVE
EX-
PENSES.—
‘‘(1) IN
GENERAL.—A Regional Commission
may make grants to defray not to exceed 75 percent
of the administrative expenses of organizations
which the Regional Commission determines to be
qualified to receive grants-in-aid under subsections
(a) and (b); except that in the case of a grant under
this subsection to an Indian tribe, the Regional
Commission is authorized to defray up to 100 per-
cent of such expenses.
‘‘(2) 
DETERMINATION
OF
NON-FEDERAL
SHARE.—In determining the amount of the non-Fed-
eral share of such costs or expenses, a Regional
Commission shall give due consideration to all con-
tributions both in cash and in kind, fairly evaluated,
including contributions of space, equipment, and
services.
‘‘(3) 
USE
OF
GRANTS
WITH
PLANNING
GRANTS.—Where practicable, grants-in-aid author-
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.—A Regional Commission shall
aid areas described in section 502(a) and other areas by
furnishing to interested individuals, communities, indus-
tries, and enterprises within such areas any assistance,
technical information, market research, or other forms of
assistance, information, or advice which would be useful
in alleviating or preventing conditions of excessive unem-
ployment or underemployment within such areas. The Re-
gional Commission may furnish the procurement divisions
of the various departments, agencies, and other instru-
mentalities of the Federal Government with a list contain-
ing the names and addresses of business firms which are
located in areas described in section 502(a) and which are
desirous of obtaining Government contracts for the fur-
nishing of supplies or services, and designating the sup-
plies and services such firms are engaged in providing.
‘‘SEC. 402. ECONOMIC DEVELOPMENT PLANNING.
‘‘(a) DIRECT GRANTS.—
‘‘(1) IN
GENERAL.—A Regional Commission
may, upon application of any State, or city, or other
political subdivision of a State, or sub-State plan-
ning and development organization (including an
area described in section 502(a) or an economic de-
velopment district), make direct grants to such
State, city, or other political subdivision, or organi-
zation to pay up to 80 percent of the cost for eco-
nomic development 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 assistance
available under section 401(c) but shall not supplant
such assistance.
‘‘(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.
‘‘(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 Secretary determines
has one or more of the following conditions:
‘‘(A) A large concentration of low-income
persons.
‘‘(B) Rural areas having substantial out-
migration.
‘‘(C) Substantial unemployment.
‘‘(b) DOCUMENTATION.—A certification made under
subsection (a) shall be supported by Federal data, when
available, and in other cases by data available through the
State government. Such documentation shall be accepted
by a Regional Commission unless it is determined to be
inaccurate. The most recent statistics available shall be
used.
‘‘(c) SPECIAL RULE.—An area which a Regional
Commission determines has 1 or more of the conditions
described in subsection (a)(4)—
‘‘(1) shall not be subject to the requirements of
subparagraphs (A) and (C) of section 201(a)(1); and
‘‘(2) shall not be eligible to meet the require-
ments of section 510(a)(1)(B).
‘‘(d) PRIOR DESIGNATIONS.—Any designation of a
redevelopment area made before the effective date of the
Economic Development Partnership Act of 1995 shall not
be effective after such effective date.
‘‘SEC. 503. INVESTMENT STRATEGY.
‘‘A Regional Commission may provide assistance
under titles II and III to an applicant for a project only
if the applicant submits to the Regional Commission, as
part of an application for such assistance, and the Re-
‘‘(1) to be included in a State investment strat-
egy approved by the Regional Commission;
‘‘(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, a Regional Commission 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—
‘‘(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 Re-
gional Commission;
‘‘(2) designate as ‘economic development cen-
ters’, in accordance with such regulations as the
Secretary shall prescribe, such areas as the Regional
Commission 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-
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 20 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 Secretary
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-
gies under subsection (a), a Regional Commission may,
under regulations prescribed by the Secretary—
‘‘(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 Secretary 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-
propriate, designated economic development centers
and neighboring counties or communities, which has
been designated by a Regional Commission as an
economic development district. Such term includes
any economic development district designated by the
Secretary under section 403 of this Act, as in effect
on the day before the effective date of the Economic
Development Partnership Act of 1995.
‘‘(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 a Regional Commission as eligible for fi-
nancial 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).—
A Regional Commission is authorized to provide the finan-
cial assistance which is available to an area described in
section 502(a) under this Act to those parts of an eco-
nomic development district which are not within an area
described in section 502(a), when such assistance will be
of a substantial direct benefit to an area described in sec-
tion 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 construed to permit such parts to receive the increase
in the amount of grant assistance authorized subsection
(a)(4).
‘‘TITLE VI—ADMINISTRATION
‘‘PART A—GENERAL PROVISIONS
‘‘SEC. 601. APPOINTMENT OF UNDER SECRETARY.
‘‘(a) IN GENERAL.—The Secretary shall carry out
the Secretary’s duties under this Act acting through an
Under Secretary of Commerce for Economic Development
to be appointed by the President by and with the advice
and consent of the Senate .
‘‘(b) AMENDMENT
TO TITLE 5, U.S.C.—Section
5314 of title 5, United States Code, is amended by insert-
ing ‘Under Secretary of Commerce for Economic Develop-
ment,’ after ‘Under Secretary of Commerce,’.
‘‘SEC. 602. OFFICE OF ECONOMIC DEVELOPMENT.
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish an Office of Economic Development (hereinafter in
this section referred to as the ‘Office’) within the Depart-
ment of Commerce.
‘‘(b) FUNCTIONS.—The head of the Office shall be
the Under Secretary of Commerce for Economic Develop-
ment who shall assist the Secretary in carrying out the
Secretary’s duties under this Act, including the issuance
of rules, regulations, and policies.
‘‘(c) CLEARINGHOUSE.—It shall be a duty of the
Under Secretary in administering the Office—
‘‘(1) to serve as a central information clearing-
house on matters relating to economic development,
economic adjustment, disaster recovery, and defense
conversion programs and activities of the Federal
and State governments, including political subdivi-
sions of the States; and
‘‘(2) to help potential and actual applicants for
economic development, economic adjustment, disas-
ter recovery, and defense conversion assistance
under Federal, State, and local laws in locating and
applying for such assistance, including financial and
technical assistance.
‘‘SEC. 603. CONSULTATION WITH OTHER PERSONS AND
AGENCIES.
‘‘(a) CONSULTATION ON PROBLEMS RELATING TO
EMPLOYMENT.—The Secretary is authorized from time to
time to call together and confer with any persons, includ-
ing representatives of labor, management, agriculture, and
government, who can assist in meeting the problems of
area and regional unemployment or underemployment.
‘‘(b) CONSULTATION ON ADMINISTRATION OF ACT.—
The Secretary may make provisions for such consultation
with interested departments and agencies as the Secretary
may deem appropriate in the performance of the functions
vested in the Secretary by this Act.
‘‘SEC. 604. ADMINISTRATION, OPERATION, AND MAINTE-
NANCE.
‘‘No Federal assistance shall be approved under this
Act unless the Secretary is satisfied that the project for
which Federal assistance is granted will be properly and
efficiently administered, operated, and maintained.
‘‘SEC. 605. AUTHORITY TO ESTABLISH INDEPENDENT AGEN-
CY IN EVENT DEPARTMENT OF COMMERCE IS
ABOLISHED.
‘‘In the event that the Department of Commerce is
abolished by a law enacted after the effective date of the
Economic Development Partnership Act of 1995, the
President is authorized to establish an independent agency
to carry out the duties of the Secretary under this Act.
‘‘SEC. 606. TREATMENT OF ECONOMIC DEVELOPMENT EM-
PLOYEES.
‘‘In considering applications for employment at Re-
gional Commissions or in the Office of Economic Develop-
ment, preference shall be given to current Economic De-
velopment Administration employees.
‘‘PART B—ABOLISHMENT OF ECONOMIC
DEVELOPMENT ADMINISTRATION
‘‘SEC. 610. ABOLISHMENT.
‘‘The Economic Development Administration of the
Department of Commerce is abolished.
‘‘SEC. 611. CONCLUSION OF BUSINESS.
‘‘The Secretary shall provide for the conclusion of any
outstanding affairs of the Economic Development Admin-
istration, including matters affecting the disposition of
personnel.
‘‘SEC. 612. SAVINGS PROVISIONS.
‘‘(a) EXISTING RIGHTS, DUTIES, AND OBLIGATIONS
NOT AFFECTED.—This part shall not be construed as af-
fecting the validity of any right, duty, or obligation of the
United States or any other person arising under or pursu-
ant to any contract, loan, or other instrument or agree-
ment which was in effect on the day before the effective
date of this part.
‘‘(b) CONTINUATION OF SUITS.—No action or other
proceeding commenced by or against any officer or em-
ployee of the Economic Development Administration shall
abate by reason of the enactment of this part; except that
the Secretary shall be substituted for such officer or em-
ployee as a party to any such action or proceeding.
‘‘SEC. 613. AMENDMENT TO TITLE 5, U.S.C.
‘‘Section 5316 of title 5, United States Code, is
amended by striking ‘Administrator for Economic Devel-
opment.’.
‘‘TITLE VII—MISCELLANEOUS
‘‘SEC. 701. POWERS OF SECRETARY.
‘‘(a) IN GENERAL.—In performing the Secretary’s
duties under this Act, the Secretary is authorized to—
‘‘(1) adopt, alter, and use a seal, which shall be
judicially noticed;
‘‘(2) subject to the civil-service and classifica-
tion laws, select, employ, appoint, and fix the com-
pensation of such personnel as may be necessary to
carry out the provisions of this Act;
‘‘(3) hold such hearings, sit and act at such
times and places, and take such testimony, as the
Secretary may deem advisable;
‘‘(4) request directly from any executive depart-
ment, bureau, agency, board, commission, office,
independent establishment, or instrumentality infor-
mation, suggestions, estimates, and statistics needed
to carry out the purposes of this Act; and each de-
partment, bureau, agency, board, commission, office,
establishment, or instrumentality is authorized to
furnish such information, suggestions, estimates,
and statistics directly to the Secretary;
‘‘(5) under regulations prescribed by the Sec-
retary, assign or sell at public or private sale, or oth-
erwise dispose of for cash or credit, in the Sec-
retary’s discretion and upon such terms and condi-
tions and for such consideration as the Secretary de-
termines to be reasonable, any evidence of debt, con-
tract, claim, personal property, or security assigned
to or held by the Secretary in connection with assist-
ance extended under this Act, and collect or com-
promise all obligations assigned to or held by the
Secretary in connection with such assistance until
such time as such obligations may be referred to the
Attorney General for suit or collection;
‘‘(6) deal with, complete, renovate, improve,
modernize, insure, rent, or sell for cash or credit,
upon such terms and conditions and for such consid-
eration as the Secretary determines to be reasonable,
any real or personal property conveyed to, or other-
wise acquired by the Secretary in connection with
assistance extended under this Act;
‘‘(7) pursue to final collection, by way of com-
promise or other administrative action, prior to ref-
erence to the Attorney General, all claims against
third parties assigned to the Secretary in connection
with assistance extended this Act;
‘‘(8) acquire, in any lawful manner and in ac-
cordance with the requirements of the Federal Prop-
erty and Administrative Services Act of 1949, any
property (real, personal, or mixed, tangible or intan-
gible), whenever necessary or appropriate to the con-
duct of the activities authorized under this Act;
‘‘(9) in addition to any powers, functions, privi-
leges, and immunities otherwise vested in the Sec-
retary, take any action, including the procurement of
the services of attorneys by contract, determined by
the Secretary to be necessary or desirable in making,
purchasing, servicing, compromising, modifying, liq-
uidating, or otherwise administratively dealing with
assets held in connection with financial assistance
extended under this Act;
‘‘(10) employ experts and consultants or organi-
zations as authorized by section 3109 of title 5,
United States Code, compensate individuals so em-
ployed at rates not in excess of $100 per diem, in-
cluding travel time, and allow them, while away from
their homes or regular places of business, travel ex-
penses (including per diem in lieu of subsistence) as
authorized by section 5703 of title 5, United States
Code, for persons in the Government service em-
ployed intermittently, while so employed, except that
contracts for such employment may be renewed an-
nually;
‘‘(11) sue and be sued in any court of record
of a State having general jurisdiction or in any Unit-
ed States district court, and jurisdiction is conferred
upon such district court to determine such con-
troversies without regard to the amount in con-
troversy; but no attachment, injunction, garnish-
ment, or other similar process, mesne or final, shall
be issued against the Secretary or the Secretary’s
property;
‘‘(12) make discretionary grants, pursuant to
authorities otherwise available to a Regional Com-
mission under this Act and without regard to the re-
quirements of section 504, to implement significant
regional initiatives, to take advantage of special de-
velopment opportunities, or to respond to emergency
economic distress in the region from the funds with-
held from distribution to the Regional Commissions;
except that the aggregate amount of such discre-
tionary grants in any fiscal year may not exceed 10
percent of the amounts appropriated under title VIII
for such fiscal year; and
‘‘(13) establish such rules, regulations, and pro-
cedures as the Secretary considers appropriate in
carrying out the provisions of this Act.
‘‘(b) 
DEFICIENCY
JUDGMENTS.—The 
authority
under subsection (a)(7) to pursue claims shall include the
authority to obtain deficiency judgments or otherwise in
the case of mortgages assigned to the Secretary.
‘‘(c) INAPPLICABILITY
OF CERTAIN OTHER RE-
QUIREMENTS.—Section 3709 of the Revised Statutes of
the United States shall not apply to any contract of haz-
ard insurance or to any purchase or contract for services
or supplies on account of property obtained by the Sec-
retary as a result of assistance extended under this Act
if the premium for the insurance or the amount of the
insurance does not exceed $1,000.
‘‘(d) POWERS OF CONVEYANCE AND EXECUTION.—
The power to convey and to execute, in the name of the
Secretary, deeds of conveyance, deeds of release, assign-
ments and satisfactions of mortgages, and any other writ-
ten instrument relating to real or personal property or any
interest therein acquired by the Secretary pursuant to the
provisions of this Act may be exercised by the Secretary,
or by any officer or agent appointed by the Secretary for
such purpose, without the execution of any express delega-
tion of power or power of attorney.
‘‘SEC. 702. ALLOCATION OF FUNDS.
The Secretary shall establish a formula for the equi-
table allocation among the Regional Commissions of
amounts appropriated to carry out this Act.
‘‘SEC. 703. PERFORMANCE MEASURES.
‘‘The Secretary shall establish performance measures
for grants and other assistance provided under this Act.
Such performance measures shall be used to evaluate
project proposals and conduct evaluations of projects re-
ceiving such assistance.
‘‘SEC. 704. MAINTENANCE OF STANDARDS.
‘‘The Secretary shall continue to implement and en-
force the provisions of section 712 of this Act, as in effect
on the day before the effective date of the Economic Devel-
opment Partnership Act of 1995.
‘‘SEC. 705. TRANSFER OF FUNCTIONS.
‘‘The functions, powers, duties, and authorities and
the assets, funds, contracts, loans, liabilities, commit-
ments, authorizations, allocations, and records which are
vested in or authorized to be transferred to the Secretary
of the Treasury under section 29(b) of the Area Redevel-
opment Act, and all functions, powers, duties, and authori-
ties under section 29(c) of such Act are hereby vested in
the Secretary.
‘‘SEC. 706. DEFINITION OF STATE.
‘‘In this Act, the terms ‘State’, ‘States’, and ‘United
States’ include the several States and each of the other
political entities included in a region established by section
105.
‘‘SEC. 707. ANNUAL REPORT TO CONGRESS.
‘‘The Secretary shall transmit a comprehensive and
detailed annual report to Congress of the Secretary’s and
each Regional Commission’s operations under this Act for
each fiscal year beginning with the fiscal year ending Sep-
tember 30, 1996. Such report shall be printed and shall
be transmitted to Congress not later than April 1 of the
year following the fiscal year with respect to which such
report is made.
‘‘SEC. 708. USE OF OTHER FACILITIES.
‘‘(a) DELEGATION OF FUNCTIONS TO OTHER FED-
ERAL DEPARTMENTS
AND AGENCIES.—The Secretary
may delegate to the heads of other departments and agen-
cies of the Federal Government any of the Secretary’s
functions, powers, and duties under this Act as the Sec-
retary may deem appropriate, and to authorize the redele-
gation of such functions, powers, and duties by the heads
of such departments and agencies.
‘‘(b) DEPARTMENT
AND AGENCY EXECUTION
OF
DELEGATED AUTHORITY.—Departments and agencies of
the Federal Government shall exercise their powers, du-
ties, and functions in such manner as will assist in carry-
ing out the objectives of this Act.
‘‘(c) TRANSFER BETWEEN DEPARTMENTS.—Funds
authorized to be appropriated under this Act may be
transferred between departments and agencies of the Gov-
ernment, if such funds are used for the purposes for which
they are specifically authorized and appropriated.
‘‘(d) FUNDS TRANSFERRED FROM OTHER DEPART-
MENTS AND AGENCIES.—In order to carry out the objec-
tives of this Act, the Secretary may accept transfers of
funds from other departments and agencies of the Federal
Government if the funds are used for the purposes for
which (and in accordance with the terms under which) the
funds are specifically authorized and appropriated. Such
transferred funds shall remain available until expended,
and may be transferred to and merged with the appropria-
tions under the heading ‘salaries and expenses’ by the Sec-
retary to the extent necessary to administer the program.
‘‘SEC. 709. PENALTIES.
‘‘(a) 
FALSE
STATEMENTS; 
SECURITY
OVER-
VALUATION.—Whoever makes any statement knowing it
to be false, or whoever willfully overvalues any security,
for the purpose of obtaining for such person or for any
applicant any financial assistance under this Act or any
extension of such assistance by renewal, deferment or ac-
tion, or otherwise, or the acceptance, release, or substi-
tution of security for such assistance, or for the purpose
of influencing in any way the action of the Secretary or
a Regional Commission or for the purpose of obtaining
money, property, or anything of value, under this Act,
shall be fined under title 18, United States Code, impris-
oned for not more than 5 years, or both.
‘‘(b) 
EMBEZZLEMENT
AND
FRAUD-RELATED
CRIMES.—Whoever, being connected in any capacity with
the Secretary or a Regional Commission, in the adminis-
tration of this Act—
‘‘(1) embezzles, abstracts, purloins, or willfully
misapplies any moneys, funds, securities, or other
things of value, whether belonging to such person or
pledged or otherwise entrusted to such person;
‘‘(2) with intent to defraud the Secretary or a
Regional Commission or any other body politic or
corporate, or any individual, or to deceive any offi-
cer, auditor, or examiner, makes any false entry in
any book, report, or statement of or to the Secretary
or a Regional Commission, or without being duly au-
thorized draws any orders or issues, puts forth, or
assigns any note, debenture, bond, or other obliga-
tion, or draft, bill of exchange, mortgage, judgment,
or decree thereof;
‘‘(3) with intent to defraud participates or
shares in or receives directly or indirectly any
money, profit, property, or benefit through any
transaction, loan, grant, commission, contract, or
any other act of the Secretary or a Regional Com-
mission; or
‘‘(4) gives any unauthorized information con-
cerning any future action of plan of the Secretary or
a Regional Commission which might affect the value
of securities, or having such knowledge invests or
speculates, directly or indirectly, in the securities or
property of any company or corporation receiving
loans, grants, or other assistance from the Secretary
or a Regional Commission,
shall be fined under title 18, United States Code, impris-
oned for not more than 5 years, or both.
‘‘SEC. 710. EMPLOYMENT OF EXPEDITERS AND ADMINIS-
TRATIVE EMPLOYEES.
‘‘No financial assistance shall be extended by a Re-
gional Commission under this Act to any business enter-
prise unless the owners, partners, or officers of such busi-
ness enterprise—
‘‘(1) certify to the Regional Commission the
names of any attorneys, agents, and other persons
engaged by or on behalf of such business enterprise
for the purpose of expediting applications made to
the Regional Commission for assistance of any sort,
under this Act, and the fees paid or to be paid to
any such person; and
‘‘(2) execute an agreement binding such busi-
ness enterprise, for a period of 2 years after such
assistance is rendered by the Regional Commission
to such business enterprise, to refrain from employ-
ing, tendering any office or employment to, or re-
taining for professional services, any person who, on
the date such assistance or any part thereof was
rendered, or within the 1-year period ending on such
date, shall have served as an officer, attorney, agent,
or employee, occupying a position or engaging in ac-
tivities which the Regional Commission determines
involves discretion with respect to the granting of
assistance under this Act.
‘‘SEC. 711. PERSONAL FINANCIAL INTERESTS.
‘‘(a) IN GENERAL.—Except as permitted by sub-
section (b), no State member or alternate and no officer
or employee of a Regional Commission shall participate
personally and substantially as member, alternate, officer,
or employee, through decision, approval, disapproval, rec-
ommendation, the rendering of advice, investigation, or
otherwise, in any proceeding, application, request for a
ruling or other determination, contract, claim, con-
troversy, or other particular matter in which, to the indi-
vidual’s knowledge, the individual, the individual’s spouse,
minor child, partner, organization (other than a State or
political subdivision thereof) in which the individual is
serving as officer, director, trustee, partner, or employee,
or any person or organization with whom the individual
is serving as officer, director, trustee, partner, or em-
ployee, or any person or organization with whom the indi-
vidual is negotiating or has any arrangement concerning
prospective employment, has a financial interest. Any indi-
vidual who shall violate the provisions of this subsection
shall be fined under title 18, United States Code, impris-
oned for not more than 2 years, or both.
‘‘(b) EXCEPTION.—Subsection (a) shall not apply if
the State member, alternate, officer, or employee first ad-
vises the Regional Commission of the nature and cir-
cumstances of the proceeding, application, request for a
ruling or other determination, contract, claim, con-
troversy, or other particular matter and makes full disclo-
sure of the financial interest and receives in advance a
written determination made by the Regional Commission
that the interest is not so substantial as to be deemed like-
ly to affect the integrity of the services which the Regional
Commission may expect from such State member, alter-
nate, officer, or employee.
‘‘(c) SALARIES.—No State member or alternate of a
Regional Commission shall receive any salary, or any con-
tribution to or supplementation of salary for the individ-
ual’s services on the Regional Commission from any
source other than the State of the individual. No individ-
ual detailed to serve the Regional Commission under au-
thority of section 104 shall receive any salary or any con-
tribution to or supplementation of salary for the individ-
ual’s services on the Regional Commission from any
source other than the State, local, or intergovernmental
department or agency from which he was detailed or from
the Regional Commission. Any individual who shall violate
the provisions of this subsection shall be fined under title
18, United States Code, imprisoned for not more than 1
year, or both.
‘‘(d) NONAPPLICABILITY TO FEDERAL OFFICIALS.—
Notwithstanding any other provision of this section, the
Secretary (or the Secretary’s designee on a Regional Com-
mission) and any Federal officers or employees detailed
to duty with a Regional Commission pursuant to section
104 shall not be subject to such provisions but shall re-
main subject to sections 202 through 209 of title 18, Unit-
ed States Code.
‘‘(e) AUTHORITY TO RESCIND CERTAIN AGREE-
MENTS.—A Regional Commission may, in the Regional
Commission’s discretion, declare void and rescind any
agreement to extend financial assistance under this Act
entered into by the Regional Commission in relation to
which the Regional Commission finds that there has been
a violation of subsection (a) or (c) of this section or any
of the provisions of sections 202 through 209 of title 18,
United States Code.
‘‘SEC. 712. MAINTENANCE OF RECORDS OF APPROVED AP-
PLICATIONS FOR FINANCIAL ASSISTANCE;
PUBLIC INSPECTION.
‘‘(a) MAINTENANCE OF RECORD REQUIRED.—The
Secretary shall maintain as a permanent part of the
records of the Department of Commerce a list of applica-
tions approved for financial assistance under this Act,
which shall be kept available for public inspection during
the regular business hours of the Department of Com-
merce.
‘‘(b) POSTING TO LIST.—The following information
shall be posted in such list as soon as each application
is approved:
‘‘(1) The name of the applicant and, in the case
of corporate applications, the names of the officers
and directors thereof.
‘‘(2) The amount and duration of the financial
assistance for which application is made.
‘‘(3) The purposes for which the proceeds of the
financial assistance are to be used.
‘‘SEC. 713. RECORDS AND AUDIT.
‘‘(a) RECORDKEEPING AND DISCLOSURE REQUIRE-
MENTS.—Each recipient of assistance under this Act shall
keep such records as the Secretary shall prescribe, includ-
ing records which fully disclose the amount and the dis-
position by such recipient of the proceeds of such assist-
ance, the total cost of the project or undertaking in con-
nection with which such assistance is given or used, and
the amount and nature of that portion of the cost of the
project or undertaking supplied by other sources, and such
other records as will facilitate an effective audit.
‘‘(b) ACCESS
TO BOOKS
FOR EXAMINATION
AND
AUDIT.—The Secretary and the Comptroller General of
the United States, or any of their duly authorized rep-
resentatives, shall have access for the purpose of audit and
examination to any books, documents, papers, and records
of the recipient that are pertinent to assistance received
under this Act.
‘‘SEC. 714. PROHIBITION AGAINST A STATUTORY CON-
STRUCTION WHICH MIGHT CAUSE DIMINU-
TION IN OTHER FEDERAL ASSISTANCE.
‘‘All financial and technical assistance authorized
under this Act shall be in addition to any Federal assist-
ance previously authorized, and no provision of this Act
shall be construed as authorizing or permitting any reduc-
tion or diminution in the proportional amount of Federal
assistance to which any State or other entity eligible under
this Act would otherwise be entitled under the provisions
of any other Act.
‘‘SEC. 715. ACCEPTANCE OF APPLICANTS’ CERTIFICATIONS.
‘‘A Regional Commission may accept, when deemed
appropriate, the applicants’ certifications to meet the re-
quirements of this Act.
‘‘TITLE VIII—FUNDING
‘‘SEC. 801. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this Act $340,000,000 per fiscal year for each of fiscal
years 1996, 1997, 1998, 1999, and 2000. Such sums shall
remain available until expended.
‘‘SEC. 802. DEFENSE CONVERSION ACTIVITIES.
‘‘In addition to the appropriations authorized by sec-
tion 801, there are authorized to be appropriated to carry
out this Act such sums as may be necessary to provide
assistance for defense conversion activities. Such funding
may include pilot projects for privatization and economic
development activities for closed or realigned military in-
stallations. Such sums shall remain available until ex-
pended.’’.
TITLE II—APPALACHIAN
REGIONAL DEVELOPMENT
SEC. 201. AMENDMENT OF APPALACHIAN REGIONAL DE-
VELOPMENT ACT OF 1965.
Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of the Appalachian Regional De-
velopment Act of 1965 (40 U.S.C. App. 1 et seq.).
SEC. 202. FINDINGS AND PURPOSES.
Section 2 (40 U.S.C. App. 2) is amended by adding
at the end the following:
‘‘(c) 1995 FINDINGS AND PURPOSES.—The Congress
further finds and declares that, while substantial progress
has been made in fulfilling many of the objectives of this
Act, rapidly changing national and global economies over
the past decade have created new problems and challenges
for rural areas throughout the Nation and especially for
the Appalachian region. It is, therefore, also the purpose
of this Act to assist the region in providing the infrastruc-
ture necessary for economic and human resource develop-
ment, in developing its industry, in building entrepreneur-
ial communities, in generating a diversified regional econ-
omy, and in making its industrial and commercial re-
sources more competitive in national and world markets.
It is further the purpose of this Act to provide a frame-
work for coordinating Federal, State, and local initiatives
to respond to the economic competitive challenge through
improving the skills of the region’s workforce, adapting
and applying new technologies for the region’s businesses,
and improving the access of the region’s businesses to the
technical and financial resources necessary to their devel-
opment. Finally, it is the purpose of this Act to address
the needs of severely and persistently distressed and un-
derdeveloped areas of the region so as to provide a fairer
opportunity for the people of the region to share the qual-
ity of life generally enjoyed by citizens across this
Nation.’’.
SEC. 203. MEETINGS.
(a) ANNUAL
MEETING
REQUIREMENT.—Section
101(a) (40 U.S.C. App. 101(a)) is amended by adding at
the end the following: ‘‘The Commission shall conduct at
least one meeting each year with the Federal Cochairman
and at least a majority of the State members present.’’.
(b) 
ADDITIONAL
MEETINGS
BY
ELECTRONIC
MEANS.—Section 101 (40 U.S.C. App. 101) is amended—
(1) in subsection (a), as amended by subsection
(a) of this section, by adding at the end the follow-
ing: ‘‘The Commission may conduct such additional
meetings by electronic means as the Commission
considers advisable, including meetings to decide
matters requiring an affirmative vote.’’; and
(2) in subsection (c) by striking ‘‘to be present’’
at the end of the fourth sentence.
(c) DECISIONS
REQUIRING
A
QUORUM.—Section
101(b) (40 U.S.C. App. 101(b)) is amended by striking
the third sentence and inserting the following: ‘‘No deci-
sion involving Commission policy, approval of State, re-
gional, or subregional development plans or implementing
investment programs, any modification or revision of the
Appalachian Regional Commission Code, any allocation of
funds among the State, or any designation of a distressed
county or an economically competitive county may be
made without a quorum of State members.’’.
SEC. 204. AUTHORIZATIONS FOR ADMINISTRATIVE EX-
PENSES.
Section 105(b) (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 $3,645,000
per fiscal year for each of fiscal years 1996 through
2000. Such sums shall remain available until ex-
pended.
‘‘(2) EXPENSES OF FEDERAL COCHAIRMAN.—
Of the amounts appropriated pursuant to paragraph
(1), not to exceed $1,245,000 per fiscal year for
each of fiscal years 1996 through 2000 shall be
available for expenses of the Federal Cochairman,
the Federal Cochairman’s alternate, and the Federal
Cochairman’s staff.’’.
SEC. 205. ADMINISTRATIVE POWERS OF COMMISSION.
(a) AUTHORITY TO LEASE.—Section 106(7) (40
U.S.C. App. 106(7)) is amended—
(1) by inserting ‘‘subject to the requirements of
the Federal Property and Administrative Services
Act of 1949,’’ after ‘‘(7)’’;
(2) by striking ‘‘notwithstanding any other pro-
vision of law,’’; and
(3) by striking ‘‘1982’’ and inserting ‘‘2000’’.
(b) AUTHORITY
TO MAINTAIN TEMPORARY OF-
FICE.—Section 106(8) (40 U.S.C. App. 106(8)) is amend-
ed by inserting ‘‘subject to the requirements of the Fed-
eral Property and Administrative Services Act of 1949,’’
after ‘‘(8)’’.
SEC. 206. HIGHWAY SYSTEM.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
201(g) (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
$90,000,000 per fiscal year for each of fiscal years 1996
through 2000. Such sums shall remain available until ex-
pended.’’.
(b) COST SHARING.—
(1) IN
GENERAL.—Section 201(h)(1) (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.
SEC. 207. COST SHARING OF DEMONSTRATION HEALTH
PROJECTS.
(a) OPERATION COSTS.—Section 202(c) (40 U.S.C.
App. 202(c)) is amended in the first sentence by striking
‘‘100 per centum of the costs thereof’’ and all that follows
through the period at the end of the second sentence and
inserting ‘‘50 percent of the costs thereof (or 80 percent
of such costs in the case of a project to be carried out
in a county for which a distressed county designation is
in effect under section 226).’’.
(b) COST SHARING.—Section 202 (40 U.S.C. App.
202) is amended by adding at the end the following:
‘‘(f) MAXIMUM COMMISSION CONTRIBUTION AFTER
SEPTEMBER 30, 1995.—After September 30, 1995, not
more than 50 percent of any project cost eligible for finan-
cial assistance under this section may be provided from
funds appropriated to carry out this Act; except that such
maximum Commission contribution may be increased to
80 percent, or to the percentage of the maximum Federal
contribution authorized by this section, whichever is less,
for a project to be carried out in a county for which a
distressed county designation is in effect under section
226.’’.
SEC. 208. REPEAL OF LAND STABILIZATION, CONSERVA-
TION, AND EROSION CONTROL PROGRAM.
Section 203 (40 U.S.C. App. 203) is repealed.
SEC. 209. REPEAL OF TIMBER DEVELOPMENT PROGRAM.
Section 204 (40 U.S.C. App. 204) is repealed.
SEC. 210. REPEAL OF MINING AREA RESTORATION PRO-
GRAM.
Section 205 (40 U.S.C. App. 205) is repealed.
(b) COST SHARING.—Section 211 (40 U.S.C. App.
211) is amended by adding at the end the following:
‘‘(c) MAXIMUM COMMISSION CONTRIBUTION AFTER
SEPTEMBER 30, 1995.—After September 30, 1995, not
more than 50 percent of any project cost eligible for finan-
cial assistance under this section may be provided from
funds appropriated to carry out this Act; except that such
maximum Commission contribution may be increased to
80 percent, or to the percentage of the maximum Federal
contribution authorized by this section, whichever is less,
for a project to be carried out in a county for which a
distressed county designation is in effect under section
226.’’.
SEC. 215. SEWAGE TREATMENT WORKS PROGRAM.
Section 212 (40 U.S.C. App. 212) is repealed.
SEC. 216. REPEAL OF AMENDMENTS TO HOUSING ACT OF
1954.
Section 213 (40 U.S.C. App. 213) is repealed.
SEC. 217. SUPPLEMENTS TO FEDERAL GRANT-IN-AID PRO-
GRAMS.
(a) AVAILABILITY OF AMOUNTS.—The first sentence
of section 214(a) (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 to
carry out this section’’.
(b) COST SHARING.—Section 214(b) (40 U.S.C. App.
214(b)) is amended—
(1) by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’;
and
(2) by adding at the end the following:
‘‘(2) After September 30, 1995, not more than 50
percent of any project cost eligible for financial assistance
under this section may be provided from funds appro-
priated to carry out this Act; except that such maximum
Commission contribution may be increased to 80 percent
for a project to be carried out in a county for which a
distressed county designation is in effect under section
226.’’.
(c) FEDERAL GRANT-IN-AID PROGRAMS DEFINED.—
The first sentence of section 214(c) (40 U.S.C. App.
214(c)) is amended by striking ‘‘on or before December
31, 1980,’’.
(d) LIMITATION ON COVERED ROAD PROJECTS.—
The second sentence of section 214(c) is amended by in-
serting ‘‘authorized by title 23, United States Code’’ after
‘‘road construction’’.
SEC. 218. PROGRAM DEVELOPMENT CRITERIA.
(a) CONSIDERATIONS.—Section 224(a) (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
and persistently distressed and underdeveloped county or
area’’.
(b) OUTCOME MEASUREMENTS.—Section 224(a) is
further amended—
(1) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and
(2) by adding at the end the following:
‘‘(6) the extent to which the project design pro-
vides for detailed outcome measurements by which
grant expenditures may be justified.’’.
(c) REMOVAL OF LIMITATIONS.—Section 224(b) (40
U.S.C. App. 224(b)) is amended to read as follows:
‘‘(b) LIMITATION.—No financial assistance made
available under this Act may be used to assist establish-
ments relocating from one area to another.’’.
SEC. 219. DISTRESSED AND ECONOMICALLY COMPETITIVE
COUNTIES.
Part C of title II (40 U.S.C. App. 221–225) is
amended by adding at the end the following:
‘‘SEC. 226. DISTRESSED AND ECONOMICALLY COMPETITIVE
COUNTIES.
‘‘(a) DESIGNATIONS.—Not later than 90 days after
the effective date of the Economic Development Partner-
ship Act of 1995, and annually thereafter, the Commis-
sion, in accordance with such criteria as the Commission
may establish, shall—
‘‘(1) designate as ‘distressed counties’ those
counties in the region that are the most severely and
persistently distressed and underdeveloped; and
‘‘(2) designate as ‘economically competitive
counties’ those counties in the region which have at-
tained substantial economic parity with the rest of
the Nation.
‘‘(b) PERIOD OF EFFECTIVENESS.—In making an-
nual designations under subsection (a), the Commission
may discontinue an existing designation at the discretion
of the Commission; except that any designation of a dis-
tressed county shall remain in effect for the 3-year period
beginning on the date of the designation.
‘‘(d) FUNDING PROHIBITION
FOR PROJECTS LO-
CATED IN ECONOMICALLY COMPETITIVE COUNTIES.—
‘‘(1) IN
GENERAL.—Except as provided by
paragraph (2), no funds may be provided under this
Act for a project located in a county for which an
economically competitive county designation is in ef-
fect under this section.
‘‘(2) EXCEPTIONS.—The prohibition established
by paragraph (1) shall not apply to—
‘‘(1) projects on the Appalachian development
highway system authorized by section 201;
‘‘(2) local development district administrative
projects authorized by section 302(a)(1); or
‘‘(3) discretionary grants authorized by section
302(a).’’.
SEC. 220. GRANTS FOR ADMINISTRATIVE EXPENSES AND
COMMISSION PROJECTS.
(a) AVAILABILITY OF AMOUNTS.—Section 302(a) (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) COST
SHARING.—Section 302(a) is further
amended—
(1) in paragraph (1) by striking ‘‘75 per cen-
tum’’ and inserting ‘‘50 percent’’; and
(2) by adding at the end the following: ‘‘After
September 30, 1995, not more than 50 percent of
the cost of any activity eligible for financial assist-
ance under this section may be provided from funds
appropriated to carry out this Act (or 80 percent of
such costs in the case of a project to be carried out
in a county for which a distressed county designa-
tion is in effect under section 226); except that dis-
cretionary grants by the Commission to implement
significant regional initiatives, to take advantage of
special development opportunities, or to respond to
emergency economic distress in the region may be
made without regard to such percentage limitations.
The aggregate amount of discretionary grants re-
ferred to in the preceding sentence in any fiscal year
shall not exceed 10 percent of the amounts appro-
priated under section 401 for such fiscal year.’’.
(c) REPEALS.—Section 302 (40 U.S.C. App. 302) is
amended—
(1) by striking paragraphs (3) and (4) of sub-
section (b);
(2) by striking subsection (d); and
(3) by striking subsection (e).
SEC. 221. AUTHORIZATION OF APPROPRIATIONS FOR GEN-
ERAL PROGRAM.
Section 401 (40 U.S.C. App. 401) is amended to read
as follows:
‘‘SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
‘‘In addition to the appropriations authorized by sec-
tion 105 for administrative expenses and by 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 $88,355,000 per
fiscal year for each of fiscal years 1996 through 2000.
Such sums shall remain available until expended.’’.
SEC. 222. EXTENSION OF TERMINATION DATE.
Section 405 (40 U.S.C. App. 405) is amended by
striking ‘‘1982’’ and inserting ‘‘2000’’.