I
105TH CONGRESS
2D SESSION
H. R. 4275
To reauthorize and make reforms to programs authorized by the Public
Works and Economic Development Act of 1965 and the Appalachian
Regional Development Act of 1965.
IN THE HOUSE OF REPRESENTATIVES
JULY 20, 1998
Mr. SHUSTER (for himself, Mr. OBERSTAR, Mr. KIM, and Mr. TRAFICANT)
introduced the following bill; which was referred to the Committee on
Transportation and Infrastructure, and in addition to the Committee on
Banking and Financial Services, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To reauthorize and make reforms to programs authorized
by the Public Works and Economic Development Act
of 1965 and the Appalachian Regional Development Act
of 1965.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Economic Development
Partnership Act of 1998’’.
TITLE I—PUBLIC WORKS AND
ECONOMIC 
DEVELOPMENT
PROGRAMS
Subtitle A—Reauthorizations
SEC. 101. AMENDMENT OF PUBLIC WORKS AND ECONOMIC
DEVELOPMENT ACT OF 1965.
The Public Works and Economic Development Act of
1965 (42 U.S.C. 3121 et seq.) is amended by striking all
after the first section and inserting the following:
‘‘SEC. 2. FINDINGS AND DECLARATION.
‘‘(a) FINDINGS.—Congress finds that—
‘‘(1) the maintenance of the national economy
at a high level is vital to the best interests of the
United States, but some of our regions, counties,
and communities are suffering substantial and per-
sistent unemployment and underemployment that
cause hardship to many individuals and their fami-
lies and waste invaluable human resources;
‘‘(2) to overcome this problem the Federal Gov-
ernment, in cooperation with the States, should help
areas and regions of substantial and persistent un-
employment and underemployment to take effective
steps in planning and financing their public works
and economic development, with cooperation among
area local governments;
‘‘(3) Federal financial assistance, including
grants for public works and development facilities, to
communities, industries, enterprises, and individuals
in areas needing development should enable such
areas to help themselves achieve lasting improve-
ment and enhance domestic prosperity by the estab-
lishment of stable and diversified local economies,
sustainable development, and improved local condi-
tions, if such assistance is preceded by and consist-
ent with sound, long-range economic planning; and
‘‘(4) under the provisions of this Act, new em-
ployment opportunities should be created by develop-
ing and expanding new and existing public works
and other facilities and resources rather than by
merely transferring jobs from one area of the United
States to another.
‘‘(b) DECLARATION.—Congress declares that, in fur-
therance of maintaining the national economy at a high
level—
‘‘(1) the assistance authorized by this Act
should be made available to both rural and urban
areas;
‘‘(2) such assistance should be made available
for planning for economic development prior to the
actual occurrences of economic distress in order to
avoid such condition; and
‘‘(3) such assistance should be used for long-
term economic rehabilitation in areas where long-
term economic deterioration has occurred or is tak-
ing place.
‘‘TITLE I—ECONOMIC DEVELOP-
MENT 
PARTNERSHIPS, 
CO-
OPERATION, AND COORDINA-
TION
‘‘SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT
PARTNERSHIPS.
‘‘(a) IN GENERAL.—In providing assistance under
this Act, the Secretary shall cooperate with States and
other entities to ensure that, consistent with national ob-
jectives, Federal programs are compatible with, and fur-
ther the objectives of, State, regional, and local economic
development plans and comprehensive economic develop-
ment strategies.
‘‘(b) TECHNICAL ASSISTANCE.—The Secretary shall
provide to States, local governmental subdivisions of
States, sub-State regional organizations (including organi-
zations that cross State boundaries), and multi-State re-
gional organizations technical assistance that the Sec-
retary determines may be necessary or desirable to—
‘‘(1) alleviate economic distress;
‘‘(2) encourage and support public-private part-
nerships for the formation and improvement of eco-
nomic development strategies that promote the
growth of the national economy;
‘‘(3) stimulate modernization and technological
advances in the generation and commercialization of
goods and services; and
‘‘(4) enhance the effectiveness of United States
firms in the global economy.
‘‘(c) INTERGOVERNMENTAL REVIEW.—The Secretary
shall issue regulations to ensure that appropriate State
and local governmental authorities will be given a reason-
able opportunity to review and comment on proposed eco-
nomic development projects that the Secretary determines
may have a significant and direct impact on the economy
of the area.
‘‘(d) COOPERATIVE AGREEMENTS.—The Secretary
may enter into a cooperative agreement with 2 or more
adjoining States, or an organization consisting of such
States, in support of effective economic development. The
agreement shall provide for suitable participation by other
governmental and non-governmental parties that rep-
resent significant interests in and perspectives on eco-
nomic development in the area.
‘‘SEC. 102. COOPERATION OF FEDERAL AGENCIES.
‘‘Each Federal department and agency, in accordance
with applicable laws and within the limits of available
funds, shall exercise its powers, duties, and functions, and
shall cooperate with the Secretary, in a manner that will
assist the Secretary in carrying out the objectives of this
Act.
‘‘TITLE II—GRANTS FOR PUBLIC
WORKS AND ECONOMIC DE-
VELOPMENT
‘‘SEC. 201. PUBLIC WORKS GRANTS.
‘‘(a) DIRECT GRANTS.—Upon the application of an
eligible recipient, the Secretary may make direct grants
for—
‘‘(1) acquisition or development of land and im-
provements for public works, public service, or devel-
opment facility usage; and
‘‘(2) acquisition, design and engineering, con-
struction, rehabilitation, alteration, expansion, or im-
provement of such facilities, including related ma-
chinery and equipment.
‘‘(b) SELECTION OF PROJECTS.—The Secretary may
provide assistance for a project under this section only if
the Secretary finds that—
‘‘(1) the project will directly or indirectly—
‘‘(c) LIMITATION.—Not more than 15 percent of the
amounts made available to carry out this section in a fiscal
year may be expended in any one State.
‘‘SEC. 202. CONSTRUCTION COST INCREASES.
‘‘(a) IN GENERAL.—Subject to subsection (b), the
Secretary may increase the amount of a grant (including
a supplemental grant) made for a construction project
under this title (or title I of this Act, as in effect before
the date of enactment of the Economic Development Part-
nership Act of 1998) if, after the grant has been made
but before completion of the project, the cost of the project
has increased and if an increase in the amount of the
grant is necessary for the satisfactory completion and op-
eration of the project.
‘‘(b) LIMITATIONS.—The Secretary may not increase
the amount of a grant for a project under subsection (a)
if—
‘‘(1) the increase would cause the Federal share
of the cost of the project to exceed the maximum
percentage permitted for the project under this Act,
as in effect at the time of the increase;
‘‘(2) the amount of the increase exceeds 15 per-
cent of the original estimated cost of the project; or
‘‘(3) the amount of the increase exceeds the dif-
ference between the estimated cost of the project on
the date of the increase and the original estimated
cost of the project.
‘‘SEC. 203. PLANNING AND ADMINISTRATIVE EXPENSES.
‘‘(a) DIRECT GRANTS.—Upon the application of an
eligible recipient, the Secretary may make direct grants
for economic development planning and for the adminis-
trative expenses of organizations undertaking such plan-
ning.
‘‘(b) PLANNING TO REDUCE UNEMPLOYMENT AND
INCREASE INCOMES.—The planning for cities, other polit-
ical subdivisions, Indian tribes, and sub-State planning
and development organizations (including areas described
in section 302(a) and economic development districts) as-
sisted under this section shall include systematic efforts
to reduce unemployment and increase incomes.
‘‘(c) PLANNING PROCESS.—Planning assisted under
this section shall be a continuous process, involving public
officials and private citizens, in analyzing local economies,
defining development goals, determining project opportu-
nities, and formulating and implementing a development
program.
‘‘(d) USE OF OTHER FEDERAL FUNDS.—Planning
assistance received under this section shall be used in con-
junction with any other available Federal planning assist-
ance to ensure adequate and effective planning and eco-
nomical use of funds.
‘‘(e) STATE PLANS.—
‘‘(1) PREPARATION OF PLANS.—A State plan
prepared with assistance under this section shall be
prepared cooperatively by the State, political subdivi-
sions of the State, and the economic development
district located in whole or in part within the State,
as a comprehensive economic development strategy.
‘‘(2) CONSISTENCY WITH LOCAL AND ECONOMIC
DEVELOPMENT DISTRICT PLANS.—Upon completion
of a State plan prepared with assistance under this
section, the State shall—
‘‘(A) certify to the Secretary that in the
preparation of the State plan, the local and eco-
nomic development district plans were consid-
ered and, to the fullest extent possible, the
State plan is consistent with such plans; and
‘‘(B) identify any inconsistencies between
the State plan and the local and economic de-
velopment district plans, with the justification
for each inconsistency.
‘‘(3) CONSIDERATIONS.—Any overall State eco-
nomic development planning shall be a part of a
comprehensive planning process that shall consider
providing public works to—
‘‘(A) stimulate and channel development,
economic opportunities, and choices for individ-
uals;
‘‘(B) support sound land use;
‘‘(C) foster effective transportation access;
‘‘(D) promote sustainable development;
‘‘(E) enhance and protect the environment,
including the conservation and preservation of
open spaces and environmental quality;
‘‘(F) provide public services;
‘‘(G) promote technology development; and
‘‘(H) balance physical and human re-
sources through the management and control of
physical development.
‘‘(4) ANNUAL REPORT.—A State receiving as-
sistance under this subsection shall transmit to the
Secretary an annual report on the planning process
of the State.
‘‘SEC. 204. COST SHARING.
‘‘Subject to section 205, the amount of a direct grant
for a project under this title may not exceed 50 percent
of the cost of the project. In determining the amount of
the non-Federal share, the Secretary shall give due consid-
eration to all contributions, both in cash and in kind, fairly
evaluated, including contributions of space, equipment,
and services.
‘‘SEC. 205. SUPPLEMENTARY GRANTS.
‘‘(a) 
AUTHORITY
TO
MAKE
SUPPLEMENTARY
GRANTS.—
‘‘(1) IN GENERAL.—Upon the application of an
eligible recipient, the Secretary may make a supple-
mentary grant for a project for which the applicant
is eligible but, because of the economic situation of
the applicant, for which the applicant cannot supply
the required non-Federal share.
‘‘(2) TYPES
OF
ASSISTANCE.—Supplementary
grants under this section may include grants to en-
able States and other entities within areas described
in section 302(a) to take maximum advantage of
designated Federal grant-in-aid programs (as de-
fined in subsection (b)(4)), direct grants-in-aid au-
thorized under this title, Federal grant-in-aid pro-
grams authorized by the Watershed Protection and
Flood Prevention Act (68 Stat. 666), and the 11 wa-
tersheds authorized by the Flood Control Act of De-
cember 22, 1944 (58 Stat. 887).
‘‘(b) REQUIREMENTS
APPLICABLE
TO
SUPPLE-
MENTARY GRANTS.—
‘‘(1) AMOUNT OF GRANTS.—The amount of a
supplementary grant for a project under this section
may not exceed the applicable percentage to be es-
tablished by the Secretary by regulation, but in no
event may the non-Federal share of the aggregate
cost of any such project (including assumptions of
debt) be less than 20 percent of such cost, except as
provided by paragraph (6).
‘‘(2) FORM OF GRANTS.—Supplementary grants
shall be made by the Secretary, in accordance with
regulations to be issued by the Secretary, by increas-
ing the amounts of direct grants authorized under
this title or by the payment of funds appropriated
under this Act to the heads of the departments,
agencies, and instrumentalities of the Federal Gov-
ernment responsible 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 section
may be used for the purpose of increasing the Fed-
eral contribution to a project in an area described in
section 302(a) under the Federal program above the
fixed maximum portion of the cost of the project
otherwise authorized by the applicable law.
‘‘(4) 
DESIGNATED
FEDERAL
GRANT-IN-AID
PROGRAMS DEFINED.—In this section, the term ‘des-
ignated Federal grant-in-aid programs’ means such
existing or future Federal grant-in-aid programs as-
sisting in the construction or equipping of facilities
as the Secretary may, in furtherance of the purposes
of this Act, designate as eligible for allocation of
funds under this section.
‘‘(5) CONSIDERATION OF RELATIVE NEED IN
DETERMINING
AMOUNT.—In 
determining 
the
amount of a supplementary grant available for a
project under this title, the Secretary shall take into
consideration the relative needs of the area and the
nature of the project to be assisted.
‘‘(6) EXCEPTIONS.—
‘‘(A) GRANTS TO INDIAN TRIBES.—In the
case of a grant to an Indian tribe, or in the
case of a grant for assistance authorized by sec-
tion 209(d), the Secretary may reduce the non-
Federal share below the percentage specified in
subsection (b)(1) or waive the non-Federal
share.
‘‘(B) GRANTS TO STATES, POLITICAL SUB-
DIVISIONS, AND NON-PROFITS.— In the case of
a grant to a State (or a political subdivision of
the State) that the Secretary determines has
exhausted its effective taxing and borrowing ca-
pacity, or in the case of a grant to a non-profit
organization that the Secretary determines has
exhausted its effective borrowing capacity, the
Secretary may reduce the non-Federal share
below the percentage specified in subsection
(b)(1) or may waive the non-Federal share
for—
‘‘(i) a project in an area described in
section 302(a)(3); or
‘‘(ii) a project the nature of which the
Secretary determines, in writing, warrants
the reduction or waiver of the non-Federal
share.
‘‘SEC. 206. REGULATIONS TO ENSURE RELATIVE NEEDS
ARE MET.
‘‘The Secretary shall issue rules, regulations, and
procedures to carry out this title to ensure that adequate
consideration is given to the relative needs of eligible
areas. In issuing such rules, regulations, and procedures
for assistance under section 201, 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.
‘‘SEC. 207. TRAINING, RESEARCH, AND TECHNICAL ASSIST-
ANCE.
‘‘(a) DIRECT GRANTS.—
‘‘(1) IN GENERAL.—Upon the application of an
eligible recipient, the Secretary may make direct
grants for training, research, and technical assist-
ance, including grants for program evaluation and
economic impact analyses, that would be useful in
alleviating or preventing conditions of excessive un-
employment or underemployment.
‘‘(2) TYPES
OF
ASSISTANCE.—Direct grants
under this section may include grants for project
planning and feasibility studies, demonstrations of
innovative activities or strategic economic develop-
ment investments, management and operational ac-
tivities or strategic economic development invest-
ments, management and operational assistance, es-
tablishment of university centers, establishment of
business outreach centers, and studies evaluating the
needs of, and development potentialities for, eco-
nomic growth of areas that the Secretary finds have
substantial need for such assistance.
‘‘(3) AUTHORITY
TO
WAIVE
NON-FEDERAL
SHARE.—The Secretary may waive the non-Federal
share in the case of a project under this section,
without regard to section 204 or 205.
‘‘(b) FORMS OF ASSISTANCE.—In carrying out the
Secretary’s duties under this Act, the Secretary may—
‘‘(1) provide research and technical assistance
through members of the staff of the Secretary;
‘‘(2) make payments of funds authorized to
carry out this section to departments or agencies of
the Federal Government;
‘‘(3) provide for the employment of private indi-
viduals, partnerships, firms, corporations, or suitable
institutions under contracts entered into for such
purposes; or
‘‘(4) award grants under this title.
‘‘SEC. 208. RELOCATION OF INDIVIDUALS AND BUSINESSES.
‘‘Grants to eligible recipients under this Act shall in-
clude amounts that may be required to provide relocation
assistance to affected persons, as required by the Uniform
Relocation Assistance and Real Property Acquisition Poli-
cies Act 1970 (42 U.S.C. 4601 et seq.).
‘‘SEC. 209. ECONOMIC ADJUSTMENT.
‘‘(a) DIRECT GRANTS.—Upon the application of an
eligible recipient, the Secretary may make direct grants
for public facilities, public services, business development
(including a revolving loan fund), planning, technical as-
sistance, training, and other assistance that demonstrably
furthers the economic adjustment objectives of this Act,
including activities to alleviate long-term economic deterio-
ration and sudden and severe economic dislocations.
‘‘(b) SELECTION OF PROJECTS.—The Secretary may
provide assistance for a project under this section only if
the Secretary finds that—
‘‘(1) the project will help the area for which the
project is to be undertaken meet a special need aris-
ing from—
‘‘(A) actual or threatened severe unemploy-
ment arising from economic dislocation, includ-
ing unemployment arising from actions of the
Federal Government; or
‘‘(B) economic adjustment problems result-
ing from severe changes in economic conditions
(including long-term economic deterioration);
and
‘‘(2) except with respect to planning projects,
the project is consistent with a comprehensive eco-
nomic development strategy that has been developed
in accordance with section 303 for the area for
which the project is to be undertaken.
‘‘(c) ACTIVITIES RELATED
TO DEFENSE REDUC-
TIONS.—In order to help the communities diversify their
economies, assistance under this section shall extend to
activities identified by communities impacted by military
base closures, defense contractor cutbacks, and Depart-
ment of Energy defense-related reductions. Nothing in
this subsection is intended to replace the efforts of the
economic adjustment program of the Department of the
Defense.
‘‘(d) POST-DISASTER ACTIVITIES.—Assistance under
this section shall extend to post-disaster activities in areas
affected by natural or other disasters.
‘‘(e) ACTIVITIES
RELATED
TO
INTERNATIONAL
TRADE.—Assistance under this section shall extend to ac-
tivities identified by communities that have suffered eco-
nomic injury caused by international trade in order to help
the communities restructure their economies.
‘‘SEC. 210. DIRECT EXPENDITURE OR REDISTRIBUTION BY
RECIPIENT.
‘‘Amounts from grants under section 209 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 may be made by an eli-
gible recipient to a private profit-making entity.
‘‘SEC. 211. CHANGED PROJECT CIRCUMSTANCES.
‘‘In any case in which a grant (including a supple-
mental grant) has been made by the Secretary for a
project under this title (or under this Act, as in effect on
the day before the date of enactment of the Economic De-
velopment Partnership Act of 1998), and after the grant
has been made but before completion of the project, the
purpose or scope of the project that was the basis of the
grant has changed, the Secretary may approve the use of
grant funds for the changed project if the Secretary deter-
mines that the changed project meets the requirements of
this title and that the changes are necessary to enhance
economic development in the area.
‘‘SEC. 212. USE OF FUNDS IN PROJECTS CONSTRUCTED
UNDER PROJECTED COST.
‘‘In any case in which a grant (including a supple-
mental grant) has been made by the Secretary under this
title (or under this Act, as in effect on the day before the
date of enactment of the Economic Development Partner-
ship Act of 1998) for a construction project, and after
the grant has been made but before completion of the
project, the cost of the project (based upon the designs
and specifications that were the basis of the grant) has
decreased because of decreases in costs, the underrun
funds may be used to improve the project either directly
or indirectly, as determined by the Secretary.
‘‘SEC. 213. BASE CLOSINGS AND REALIGNMENTS.
‘‘(a) LOCATION OF PROJECTS.—In any case in which
the Secretary determines there is a need for assistance
under this title due to the closure or realignment of a mili-
tary installation or a Department of Energy defense-relat-
ed installation, the Secretary may make such assistance
available for projects to be carried out on the installation
and for projects to be carried out in communities adversely
affected by the closure or realignment.
‘‘(b) INTEREST IN PROPERTY.—Notwithstanding any
other provision of law, the Secretary may provide to an
eligible recipient any assistance made available under this
Act for a project to be carried out on a military installa-
tion, or a Department of Energy defense-related installa-
tion, that is closed or scheduled for closure or realignment
without requiring the eligible recipient to have title to the
property or a leasehold interest in the property for any
specified term.
‘‘SEC. 214. PREVENTION OF UNFAIR COMPETITION.
‘‘Financial assistance under this Act may not be ex-
tended to any project if—
‘‘(1) the assistance would result in an increase
in the production of goods, materials, or commod-
ities, or the availability of services or facilities; and
‘‘(2) there is not sufficient demand for such
goods, materials, commodities, services, or facilities
to employ the efficient capacity of existing competi-
tive commercial or industrial enterprises.
‘‘SEC. 215. 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 date of enactment
of the Economic Development Partnership Act of 1998,
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. 216. REPORTS BY RECIPIENT.
‘‘(a) IN GENERAL.—The Secretary shall require all
recipients of assistance under this Act to submit reports
to the Secretary.
‘‘(b) REQUIREMENTS.—Reports under subsection (a)
shall—
‘‘(1) be submitted at such intervals and in such
manner as the Secretary shall prescribe by regula-
tion, not to exceed 10 years from the time of close-
out of the assistance award; and
‘‘(2) contain an evaluation of the effectiveness
of the economic assistance provided under this Act
in meeting the need the assistance was designed to
alleviate and the purposes of this Act.
‘‘(c) REVOLVING LOAN FUNDS.—
‘‘(1) IN
GENERAL.—Except as provided by
paragraph (2), reports of the activities of a revolving
loan fund may be required at such intervals as may
be provided by regulation.
‘‘(2) LIMITATION.—After final disbursements of
assistance to establish a revolving loan fund (includ-
ing assistance provided before the date of enactment
of the Economic Development Partnership Act of
1998), reports of activities of the revolving loan fund
may not be required more frequently than annually.
‘‘TITLE III—DEFINITIONS, ELIGI-
BILITY, 
AND 
COMPREHEN-
SIVE 
ECONOMIC 
DEVELOP-
MENT STRATEGIES
‘‘SEC. 301. DEFINITIONS.
‘‘In this Act, the following definitions apply:
‘‘(1) ECONOMIC DEVELOPMENT DISTRICT.—The
term ‘economic development district’ means an area
in the United States composed of cooperating areas
described in section 302(a) and, where appropriate,
designated economic development centers and neigh-
boring counties or communities, that has been des-
ignated by the Secretary as an economic develop-
ment district. The term includes any economic devel-
opment district designated by the Secretary under
section 403 of this Act, as in effect on the day be-
fore the date of enactment of the Economic Develop-
ment Partnership Act of 1998.
‘‘(2) ECONOMIC DEVELOPMENT CENTER.—The
term ‘economic development center’ means an area
in the United States that has been identified as an
economic development center in an approved com-
prehensive economic development strategy and that
has been designated by the Secretary as eligible for
financial assistance under this Act in accordance
with the provisions of this Act.
‘‘(3) ELIGIBLE RECIPIENT.—The term ‘eligible
recipient’ means—
‘‘(A) an area described in section 302(a);
‘‘(B) an economic development district des-
ignated under section 401;
‘‘(C) an Indian tribe, a State, a city or
other political subdivision of a State, or a con-
sortium of such political subdivisions;
‘‘(D) an institution of higher education or
a consortium of such institutions; or
‘‘(E) a public or private nonprofit organi-
zation or association acting in cooperation with
officials of such political subdivision.
For grants made under section 207, the term also
includes private individuals and for-profit organiza-
tions.
‘‘(4) GRANT.—The term ‘grant’ includes a co-
operative agreement, as that term is used in the
Federal Grant and Cooperative Agreement Act of
1977.
‘‘(5) INDIAN TRIBE.—The term ‘Indian tribe’
means any Indian tribe, band, nation, pueblo, or
other organized group or community, including any
Alaska Native village or regional corporation as de-
fined in or established pursuant to the Alaska Na-
tive Claims Settlement Act, which is recognized as
eligible for the special programs and services pro-
vided by the United States to Indians because of
their status as Indians.
‘‘(6) SECRETARY.—The term ‘Secretary’ means
the Secretary of Commerce.
‘‘(7) STATE.—The terms ‘State’, ‘States’, and
‘United States’ include the several States, the Dis-
trict of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa,
the Republic of the Marshall Islands, the Federated
States of Micronesia, the Republic of Palau, and the
Commonwealth of the Northern Mariana Islands.
‘‘SEC. 302. AREA ELIGIBILITY.
‘‘(a) CERTIFICATION.—In order to be eligible for as-
sistance for activities described in section 201 or 209, an
applicant shall certify, as part of an application for such
assistance, that the project will serve an area (which may
be defined without regard to political or other boundaries)
that 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 that
is at least 1 percent above the national average per-
centage for the most recent 24-month period for
which statistics are available.
‘‘(3) The area is determined by the Secretary to
have experienced, or to be reasonably foreseen as
about to experience, a special need to meet an ex-
pected rise in unemployment or other economic ad-
justment problem (including those caused by any ac-
tion or decision of the Federal Government).
‘‘(4) The area is determined by the Secretary to
be a pocket of poverty or high unemployment within
a larger community of less economic distress and
has demonstrated a resistance to economic recovery
without assistance under this Act.
‘‘(b) DOCUMENTATION.—A certification made under
subsection (a) shall be supported by Federal data, when
available or, in the absence of recent Federal data, by data
available through the State government. Such documenta-
tion shall be accepted by the Secretary unless the Sec-
retary determines the documentation to be inaccurate. The
most recent statistics available shall be used. Areas cer-
tified as meeting the criteria of subsection (a), including
pockets of poverty or high unemployment within larger
communities of less economic distress, may be defined
without regard to political or other subdivisions or bound-
aries.
‘‘(c) PRIOR DESIGNATIONS.—Any designation of a
redevelopment area made before the date of enactment of
the Economic Development Partnership Act of 1998 shall
not be effective after such date.
‘‘SEC. 303. COMPREHENSIVE ECONOMIC DEVELOPMENT
STRATEGY.
‘‘(a) IN GENERAL.—The Secretary may provide as-
sistance under section 201, 208, or 209 (except planning
assistance under section 209) to an applicant for a project
only if the applicant submits to the Secretary, as part of
an application for the assistance, a comprehensive eco-
nomic development strategy that—
‘‘(1) identifies the economic development prob-
lems to be addressed using the assistance;
‘‘(2) identifies past, present, and projected fu-
ture economic development investments in the area
receiving the assistance and public and private par-
ticipants and sources of funding for the investments;
and
‘‘(3) sets forth a strategy for addressing the
economic problems identified pursuant to paragraph
(1) and describes how the strategy will solve the
problems.
‘‘(b) OTHER PLAN.—The Secretary may accept as a
comprehensive economic development strategy a satisfac-
tory plan prepared under another Federally supported
program.
‘‘TITLE IV—ECONOMIC
DEVELOPMENT DISTRICTS
‘‘SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT
DISTRICTS AND ECONOMIC DEVELOPMENT
CENTERS.
‘‘(a) IN GENERAL.—In order that economic develop-
ment projects of broader geographic significance may be
planned and carried out, the Secretary may take the ac-
tions authorized by this section.
‘‘(b) DESIGNATION
OF ECONOMIC DEVELOPMENT
DISTRICTS.—The Secretary may designate appropriate
‘economic development districts’ within the United States
with the concurrence of the States in which such districts
will be wholly or partially located, if—
‘‘(1) the proposed district is of sufficient size or
population, and contains sufficient resources, to fos-
ter economic development on a scale involving more
than a single area described in section 302(a);
‘‘(2) the proposed district contains at least 1
area described in section 302(a);
‘‘(3) the proposed district contains 1 or more
areas described in section 302(a) or economic devel-
opment centers identified in an approved district
comprehensive economic development strategy as
having sufficient size and potential to foster the eco-
nomic growth activities necessary to alleviate the dis-
tress of the areas described in section 302(a) within
the district; and
‘‘(4) the proposed district has a district com-
prehensive economic development strategy that—
‘‘(A) includes sustainable development and
adequate land use and transportation planning;
‘‘(B) contains a specific program for dis-
trict cooperation, self-help, and public invest-
ment; and
‘‘(C) is approved by the State or States af-
fected and by the Secretary.
‘‘(c) DESIGNATION
OF ECONOMIC DEVELOPMENT
CENTERS.—The Secretary may designate as ‘economic de-
velopment centers’, under regulations to be issued by the
Secretary, areas that the Secretary considers appropriate,
if—
‘‘(1) the proposed center has been identified
and included in an approved district comprehensive
economic development strategy and recommended by
the State or States affected for such special designa-
tion;
‘‘(2) the proposed center is geographically and
economically so related to the district that its eco-
nomic growth may reasonably be expected to con-
tribute significantly to the alleviation of distress in
the areas described in section 302(a) of the district;
and
‘‘(3) the proposed center does not have a popu-
lation in excess of 250,000 according to the most re-
cent Federal census.
‘‘(d) PROVISION OF FINANCIAL ASSISTANCE.—The
Secretary may provide financial assistance in accordance
with the criteria of this Act, except as otherwise expressly
provided, for projects in economic development centers
designated under subsection (c), if—
‘‘(1) the project will further the objectives of
the comprehensive economic development strategy of
the district in which the project will be located;
‘‘(2) the project will enhance the economic
growth potential of the district or result in addi-
tional long-term employment opportunities commen-
surate with the amount of Federal financial assist-
ance requested; and
‘‘(3) the amount of Federal financial assistance
requested is reasonably related to the size, popu-
lation, and economic needs of the district.
‘‘(e) AUTHORITIES.—The Secretary may, under regu-
lations to be issued by the Secretary—
‘‘(1) invite the several States to draw up pro-
posed economic development district boundaries and
to identify potential economic development centers;
‘‘(2) encourage the States to consult with ap-
propriate local governmental authorities in the pro-
posal of economic development district boundaries or
their modification;
‘‘(3) 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 comprehensive economic de-
velopment strategies; and
‘‘SEC 404. STRATEGY PROVIDED TO APPALACHIAN RE-
GIONAL COMMISSION.
‘‘An economic development district designated by the
Secretary under this title shall ensure that a copy of the
district’s comprehensive economic development strategy is
furnished to the Appalachian Regional Commission estab-
lished under the Appalachian Regional Development Act
of 1965 if any part of such district is within the Appalach-
ian region.
‘‘SEC. 405. PARTS NOT WITHIN AREAS DESCRIBED IN SEC-
TION 302(a).
‘‘The Secretary is authorized to provide financial as-
sistance available to an area described in section 302(a)
under this Act to those parts of an economic development
district that are not within an area described in section
302(a), if the Secretary determines, in writing, that the
assistance will be of a substantial direct benefit to an area
described in section 302(a) within such district. Such fi-
nancial 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 302(a).
‘‘TITLE V—ADMINISTRATION
‘‘SEC. 501. UNDER SECRETARY OF COMMERCE FOR ECO-
NOMIC DEVELOPMENT.
‘‘(a) APPOINTMENT.—The Secretary shall administer
this Act with assistance of an Under Secretary of Com-
merce for Economic Development to be appointed by the
President by and with the advice and consent of the Sen-
ate.
‘‘(b) DUTIES.—The Under Secretary of Commerce
for Economic Development shall perform such functions
as the Secretary may prescribe and will serve as the ad-
ministrator of the Economic Development Administration
within the Department of Commerce.
‘‘SEC. 502. OFFICE OF ECONOMIC DEVELOPMENT INFORMA-
TION.
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish in the Economic Development Administration an Of-
fice of Economic Development Information (hereinafter in
this section referred to as the ‘Office’).
‘‘(b) DUTIES.—The Office shall—
‘‘(1) serve as a central information clearing-
house on matters relating to economic development
programs and activities of the Federal Government
and State governments, including political subdivi-
sions of States;
‘‘(2) help potential and actual applicants for
economic development assistance under Federal,
State, and local laws in locating and applying for
such assistance, including financial and technical as-
sistance; and
‘‘(3) Relevant and available economic data and
trends, including information about the national, re-
gional, and local impacts of trade agreements, de-
fense spending and downsizing, technological change,
and other sources of substantial economic disloca-
tion.
‘‘(4) Case studies and best practices in eco-
nomic development, adjustment, and reinvestment.
‘‘(5) Technology utilization programs, assist-
ance, and resources.
‘‘(6) Compilations of published works (including
bibliographies, books, reports, articles, videos, and
tapes), and selected texts of such works, related to
all facets of economic development.
‘‘(7) Information concerning current revolving
loan fund programs and finance programs directly
related to economic development objectives.
‘‘(8) Resources that assist in identifying poten-
tial sources of capital for businesses, including re-
volving loan funds, venture capital, and other capital
tools.
‘‘(9) Resources, including geographic informa-
tion systems, that assist economic developers in un-
derstanding and pursuing sustainable development
and initiatives.
‘‘(d) PUBLIC ACCESS TO DATA SERVICES.—The Of-
fice shall establish the means to ensure easy access by the
public to the Office’s information clearinghouse, and shall
take all appropriate steps to ensure that the clearinghouse
and its resources are as accessible and user-friendly as
possible. As soon as practicable, and until replaced by a
means determined by the Secretary to be more effective
in accomplishing the purposes of this section, access to
the data services of the Office shall include each of the
following means:
‘‘(1) An Internet web site, with sorted key loca-
tions by economic development related topic, for
users to access lists of various Governmentwide and
other economic development web site resources.
‘‘(2) A toll-free nationwide telephone number to
provide direct phone access to the public.
‘‘(3) On-line electronic access through existing
computer network services and publicly available
computer database access facilities.
‘‘(4) Printed manuals and orientation materials.
‘‘(5) Periodic orientation workshops available to
the public.
‘‘(6) On-call information specialists to address
special problems requiring person-to-person assist-
ance.
‘‘(e) COORDINATION WITH OTHER FEDERAL DE-
PARTMENTS AND AGENCIES.—The Secretary shall enter
into such agreements and understandings as may be nec-
essary with other Federal departments and agencies to co-
ordinate the accomplishment of the objectives of this sec-
tion.
‘‘(f) ECONOMIC DEVELOPMENT DEFINED.—In this
section, the term ‘‘economic development’’ includes eco-
nomic adjustment, disaster recovery, industrial retention,
and defense reinvestment.
‘‘SEC. 503. CONSULTATION WITH OTHER PERSONS AND
AGENCIES.
‘‘(a) CONSULTATION ON PROBLEMS RELATING TO
EMPLOYMENT.—The Secretary may confer with any per-
sons, including representatives of labor, management, ag-
riculture, and government, who can assist in meeting the
problems of area and regional unemployment.
‘‘(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. 504. ADMINISTRATION, OPERATION, AND MAINTE-
NANCE.
‘‘Federal assistance may not be approved under this
Act unless the Secretary is satisfied that the project for
which the Federal assistance is to be granted will be prop-
erly and efficiently administered, operated, and main-
tained.
‘‘SEC. 505. FIRMS DESIRING FEDERAL CONTRACTS.
‘‘The Secretary may furnish the procurement divi-
sions of the various departments, agencies, and other in-
strumentalities of the Federal Government with a list—
‘‘(1) containing the names and addresses of
business firms that are located in areas of high eco-
nomic distress and are seeking Government con-
tracts for the furnishing of supplies or services; and
‘‘(2) designating the supplies and services that
the firms provide.
‘‘SEC. 506. AMENDMENTS TO TITLE 5, U.S.C.
‘‘Title 5, United States Code, is amended—
‘‘(1) in section 5314 by inserting ‘, Under Sec-
retary of Commerce for Economic Development,’
after ‘Under Secretary of Commerce for Export Ad-
ministration’; and
‘‘(2) in section 5316 by striking ‘Administrator
for Economic Development.’.
‘‘SEC. 507. NOTIFICATION OF REORGANIZATION.
‘‘The Secretary shall notify the Committees on
Transportation and Infrastructure and on Appropriations
of the House of Representatives and the Committees on
Environment and Public Works and on Appropriations of
the Senate of any reorganization of the offices, programs,
or activities of the Economic Development Administration
on or before the 30th day preceding the date of the reorga-
nization.
‘‘SEC. 508. PERFORMANCE EVALUATIONS OF GRANT RE-
CIPIENTS.
‘‘(a) IN GENERAL.—The Secretary shall conduct an
evaluation of each university center and economic develop-
ment district receiving grant assistance under this Act to
assess the grantee’s performance and contribution toward
job retention and creation. Evaluations shall be conducted
on a continuing basis so that each grantee will be evalu-
ated within 3 years after the first award of assistance to
the grantee after the date of enactment of the Economic
Development Partnership Act of 1998, and at least once
every 3 years thereafter, so long as the grantee continues
to receive such assistance.
‘‘(b) CRITERIA.—
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish criteria for use in conducting evaluations
under subsection (a).
‘‘(2) CRITERIA
FOR
UNIVERSITY
CENTERS.—
The criteria for evaluation of a university center
shall, at a minimum, provide for an assessment of
the center’s contribution to providing technical as-
sistance, conducting applied research, and dissemi-
nating results of the center’s activities.
‘‘(3) CRITERIA FOR ECONOMIC DEVELOPMENT
DISTRICTS.—The criteria for evaluation of an eco-
nomic development district shall, at a minimum, pro-
vide for an assessment of management standards, fi-
nancial accountability, and program performance.
‘‘(c) PEER REVIEW.—In conducting an evaluation of
a university center or economic development district under
subsection (a), the Secretary shall provide for the partici-
pation of at least one other university center or economic
development district, as appropriate, on a cost-reimburse-
ment basis.
‘‘SEC. 509. COORDINATION.
‘‘(a) IN GENERAL.—The Secretary shall actively co-
ordinate with other Federal programs, States, economic
development districts, and other appropriate planning and
development organizations the activities relating to the re-
quirements for comprehensive economic development
strategies and making grants under this Act.
‘‘(b) FEDERAL COORDINATING COUNCIL FOR ECO-
NOMIC DEVELOPMENT.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a Federal Coordinating Council for Economic
Development.
‘‘(2) COMPOSITION OF COUNCIL.—The Council
shall be composed of representatives from Federal
agencies involved in matters that affect regional eco-
nomic development.
‘‘(3) DUTIES.—The Council shall assist in pro-
viding a unifying framework for economic and re-
gional development efforts and develop a Govern-
mentwide strategic plan for economic development.
‘‘SEC. 510. ECONOMIC DEVELOPMENT REVOLVING LOAN
FUND TASK FORCE.
‘‘(a) ESTABLISHMENT.—The Secretary of Commerce
shall establish, within the Department of Commerce, an
Economic Development Revolving Loan Fund Task Force.
‘‘(b) MEMBERSHIP.—The members of the Task Force
shall include, at a minimum, representatives of—
‘‘(1) the Economic Development Administra-
tion;
‘‘(2) the Office of Inspector General of the De-
partment of Commerce;
‘‘(3) current operators of revolving loan funds
established with assistance provided under the Pub-
lic Works and Economic Development Act of 1965;
and
‘‘(4) economic development organizations.
‘‘(c) DUTIES.—The Task Force shall review the fi-
nancial management, accounting, reporting, and auditing
standards and requirements of revolving loan funds de-
scribed in subsection (b)(3).
‘‘(d) RECOMMENDATIONS.—Based upon its review,
the Task Force shall make recommendations to the Sec-
retary to better streamline and lessen revolving loan fund
reporting requirements.
‘‘TITLE VI—MISCELLANEOUS
‘‘SEC. 601. POWERS OF SECRETARY.
‘‘(a) IN GENERAL.—In performing the Secretary’s
duties under this Act, the Secretary is authorized to take
the following actions:
‘‘(1) To adopt, alter, and use a seal, which shall
be judicially noticed.
‘‘(2) Subject to the civil-service and classifica-
tion laws, to select, employ, appoint, and fix the
compensation of such personnel as may be necessary
to carry out the provisions of this Act.
‘‘(3) To hold such hearings, sit and act at such
times and places, and take such testimony, as the
Secretary may deem advisable.
‘‘(4) To request directly from any executive de-
partment, bureau, agency, board, commission, office,
independent establishment, or instrumentality infor-
mation, suggestions, estimates, and statistics needed
to carry out the purposes of this Act. Each depart-
ment, bureau, agency, board, commission, office, es-
tablishment, or instrumentality is authorized to fur-
nish such information, suggestions, estimates, and
statistics directly to the Secretary.
‘‘(5) Under regulations prescribed by the Sec-
retary, to assign or sell at public or private sale, or
otherwise 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 the Act, and to 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) To 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) To pursue to final collection, by way of
compromise or other administrative action, prior to
reference to the Attorney General, all claims against
third parties assigned to the Secretary in connection
with assistance extended under this Act.
‘‘(8) To acquire, in any lawful manner, any
property (real, personal, or mixed, tangible or intan-
gible), whenever necessary or appropriate in connec-
tion with assistance extended under this Act.
‘‘(9) In addition to any powers, functions, privi-
leges, and immunities otherwise vested in the Sec-
retary, to 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, modi-
fying, liquidating, or otherwise administratively deal-
ing with assets held in connection with financial as-
sistance extended under this Act.
‘‘(10) To employ experts and consultants or or-
ganizations as authorized by section 3109 of title 5,
United States Code, compensate individuals so em-
ployed, including travel time, and allow them, while
away from their homes or regular places of business,
travel expenses (including per diem in lieu of sub-
sistence) as authorized by section 5703 of title 5,
United States Code, for persons in the Government
service employed intermittently, while so employed,
except that contracts for such employment may be
renewed annually.
‘‘(11) To establish performance measures for
grants and other assistance provided under this Act,
and use such performance measures to evaluate the
economic impact of economic development assistance
programs. The establishment and use of such per-
formance measures shall be provided by the Sec-
retary through members of the Secretary’s staff,
through the employment of appropriate parties
under contracts entered into for such purposes, or
through grants to such parties for such purposes,
using any funds made available by appropriation to
carry out this Act.
‘‘(12) To conduct environmental reviews and
incur necessary expenses to evaluate and monitor
the environmental impact of economic development
assistance provided and proposed to be provided
under this Act, including costs associated with the
representation and defense of actions of the Sec-
retary related to the environmental impact of such
assistance, using any funds made available by appro-
priation to carry out section 207 of this Act.
‘‘(13) To sue and be sued in any court of
record of a State having general jurisdiction or in
any United States district court. Jurisdiction is con-
ferred upon such district court to determine such
controversies 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.
‘‘(14) To establish such rules, regulations, and
procedures 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) PROPERTY INTERESTS.—The powers of the Sec-
retary, pursuant to this section, in relation to property ac-
quired by the Secretary in connection with assistance ex-
tended under this Act, shall extend to property interests
of the Secretary in relation to projects approved under the
Public Works and Economic Development Act of 1965,
title I of the Public Works Employment Act of 1976, title
II of the Trade Act of 1974, and the Community Emer-
gency Drought Relief Act of 1977.
‘‘(e) 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. 602. 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 date of enactment of the Economic
Development Partnership Act of 1998.
‘‘SEC. 603. ANNUAL REPORT TO CONGRESS.
‘‘The Secretary shall transmit a comprehensive and
detailed annual report to Congress on the Secretary’s ac-
tivities under this Act for fiscal year 1998 and each fiscal
year thereafter. Such report shall be printed and transmit-
ted to Congress not later than July 1 of the year following
the fiscal year with respect to which the report is to be
made.
‘‘SEC. 604. 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 authorize the redelega-
tion of such functions, powers, and duties by the heads
of such departments and agencies.
‘‘(b) 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.
‘‘(c) 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. 605. 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
for the purpose of obtaining money, property, or anything
of value, under this Act, shall be fined under title 18,
United States Code, imprisoned for not more than 5 years,
or both.
‘‘(b) 
EMBEZZLEMENT
AND
FRAUD-RELATED
CRIMES.—Whoever, being connected in any capacity with
the Secretary in the administration 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
any other politic or corporate, or any individual, or
to deceive any officer, auditor, or examiner, makes
any false entry in any book, report, or statement of
or to the Secretary or without being duly authorized
draws any orders or issues, puts forth, or assigns
any note, debenture, bond, or other obligation, or
draft, bill of exchange, mortgage, judgment, or de-
cree 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
‘‘(4) gives any unauthorized information con-
cerning any future action or plan of the Secretary
that might affect the value of securities, or having
such knowledge invests or speculates, directly or in-
directly, in the securities or property of any com-
pany or corporation receiving loans, grants, or other
assistance from the Secretary, shall be fined under
title 18, United States Code, imprisoned for not
more than 5 years, or both.
‘‘SEC. 606. EMPLOYMENT OF EXPEDITERS AND ADMINIS-
TRATIVE EMPLOYEES.
‘‘Financial assistance may not be extended by the
Secretary under this Act to any business enterprise unless
the owners, partners, or officers of such business enter-
prise—
‘‘(1) certify to the Secretary 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 Secretary 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 Secretary to such busi-
ness enterprise, to refrain from employing, tendering
any office or employment to, or retaining for profes-
sional services, any person who, on the date such as-
sistance 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 activities that
the Secretary determines involves discretion with re-
spect to the granting of assistance under this Act.
‘‘SEC. 607. MAINTENANCE OF RECORDS OF APPROVED AP-
PLICATIONS FOR FINANCIAL ASSISTANCE;
PUBLIC INSPECTION.
‘‘(a) MAINTENANCE OF RECORD REQUIRES.—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 that
will be kept available for public Inspection during the reg-
ular business hours of the Department of Commerce.
‘‘(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. 608. 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 that fully disclose the amount and the disposi-
tion by such recipient of the proceeds of such assistance,
the total cost of the project or undertaking in connection
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, the Inspector General of the De-
partment of Commerce, 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. 609. PROHIBITION AGAINST A STATUTORY CON-
STRUCTION THAT MIGHT CAUSE DIMINUTION
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
may be construed as authorizing or permitting any reduc-
tion or diminution in the proportional amount of Federal
assistance that any State or other entity eligible under this
Act would otherwise be entitled to receive under the provi-
sions of any other Act.
‘‘SEC. 610. ACCEPTANCE OF APPLICANTS’ CERTIFICATIONS.
‘‘The Secretary may accept, when deemed appro-
priate, the applicants’ certifications to meet the require-
ments of this Act.
‘‘TITLE VII—FUNDING
‘‘SEC. 701. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this Act $368,000,000 for each of fiscal years 1999
through 2003. Such sums shall remain available until ex-
pended.
‘‘SEC. 702. ADMINISTRATIVE EXPENSES.
‘‘In addition to the appropriations authorized by sec-
tion 701, there are authorized to be appropriated for ad-
ministrative expenses of the Secretary in carrying out this
Act such sums as may be necessary for each of fiscal years
1999 through 2003. Such sums shall remain available
until expended.
‘‘SEC. 703. DEFENSE CONVERSION ACTIVITIES.
‘‘In addition to the appropriations authorized by sec-
tion 701 for defense conversion activities, there are au-
thorized to be appropriated to carry out this Act for each
of fiscal years 2000 through 2003 such sums as may be
necessary to provide assistance for such activities. Such
sums shall remain available until expended.’’.
SEC. 2. SAVINGS PROVISIONS.
(a) EXISTING RIGHTS, DUTIES, AND OBLIGATIONS
NOT AFFECTED.—This Act shall not be construed as af-
fecting the validity of any right, duty, or obligation of the
United States or any other person arising out of or pursu-
ant to any contract, loan, or other instrument or agree-
ment that was in effect on the day before the date of en-
actment of this Act.
(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 Act.
(c) LIQUIDATING ACCOUNT.—The Economic Devel-
opment Revolving Fund established under section 203 of
the Public Works and Economic Development Act of 1965
shall continue to be available to the Secretary as a liq-
uidating account as defined under section 502 of the Fed-
eral Credit Reform Act of 1990 for payment of obligations
and expenses in connection with financial assistance ex-
tended under this Act, the Public Works and Economic
Development Act of 1965, the Area Redevelopment Act,
and the Trade Act of 1974.
(d) ADMINISTRATION.—The Secretary shall take
such actions as authorized before the date of enactment
of this Act as necessary or appropriate to administer and
liquidate existing grants, contracts, agreements, loans, ob-
ligations, debentures, or guarantees heretofore made by
the Secretary or the Secretary’s delegate pursuant to pro-
visions in effect immediately prior to the date of enact-
ment of this Act.
Subtitle B—Innovative Financing
Pilot Programs
SEC. 121. PUBLIC WORKS LOAN GUARANTEES.
(a) IN GENERAL.—Upon the joint application of a
private lending institution and a State, a political subdivi-
sion of a State, an Indian tribe, or a private or public
nonprofit organization or association, the Secretary of
Commerce is authorized to guarantee a loan made by the
private lending institution to the State, political subdivi-
sion, Indian tribe, or organization or association for any
purpose for which the Secretary can make a direct grant
under section 201 of the Public Works and Economic De-
velopment Act of 1965.
(b) TERMS
AND CONDITIONS.—A loan guarantee
made for a project under this section shall be subject to
such terms and conditions as the Secretary may prescribe.
Such terms and conditions, at a minimum, shall include
the following:
(1) The guarantee may be made only if the Sec-
retary finds that the project meets the requirements
of the Public Works and Economic Development Act
of 1965.
(2) The guarantee may not at any time exceed
90 percent of the amount of the outstanding balance
of the loan.
(3) The guarantee may be made only if finan-
cial assistance for the project is not otherwise avail-
able from private lenders or from other Federal
sources on terms that the Secretary finds are likely
to permit accomplishment of the project.
(4) The guarantee may be made only if the Sec-
retary finds that there is reasonable expectation of
repayment of the loan.
(5) The guarantee may not exceed 30 years.
(c) FUNDING.—Not more than 10 percent of the
amounts appropriated to carry out section 201 of the Pub-
lic Works and Economic Development Act of 1965 for
each of fiscal years 1999 through 2003 may be used to
carry out this section.
SEC. 122. LOAN ASSISTANCE DEMONSTRATION PROGRAM.
(a) IN GENERAL.—The Secretary of Commerce shall
carry out a program to demonstrate the effectiveness of
encouraging economic development by making grants for
reducing interest rates on loans for economic development
activities. The Secretary shall carry out this section acting
through the Under Secretary of Commerce for Economic
Development.
(b) REQUIREMENTS.—Each recipient of a grant
under the demonstration program shall—
(1) use the grant amount to assist businesses
and nonprofit organizations by reducing interest
rates on loans for economic development activities by
an amount not to exceed 60 percent of the market
rate of interest on any such loan; and
(2) inform businesses and nonprofit organiza-
tions of the availability of such loan interest rate re-
duction assistance.
(c) TERMS AND CONDITIONS.—In administering the
demonstration program, the Secretary shall—
(1) ensure that any project receiving assistance
under this section meets the requirements of the
Public Works and Economic Development Act of
1965 (42 U.S.C. 3121 et seq.);
(2) establish criteria and procedures for select-
ing recipients under the program with national geo-
graphic diversity, ensuring representation of rural
and urban areas;
(3) establish requirements for implementation
of the program by recipients of assistance under the
program; and
(4) provide for the collection and reporting of
information sufficient to provide the basis for a de-
termination of the costs and effectiveness of the pro-
gram.
(d) ECONOMIC
DEVELOPMENT
ACTIVITIES
DE-
FINED.—In this section, the term ‘‘economic development
activities’’ means activities that—
(1) are part of a project supported by grant as-
sistance under this Act; or
(2) are supported by a loan from a revolving
loan fund established under this Act (including a
fund established with assistance provided before the
date of enactment of the Economic Development
Partnership Act of 1998).
(e) FUNDING.—Not more than 10 percent of the
amounts appropriated to carry out section 209 of the Pub-
lic Works and Economic Development Act of 1965 for
each of fiscal years 1999 through 2003 may be used to
carry out this section.
SEC. 123. LAND CONVEYANCE.
(a) IN GENERAL.—The Secretary of Commerce shall
convey, at fair market value (as determined by the Sec-
retary), to the city of Two Harbors, Minnesota, or its des-
ignee, the parcel of land described in subsection (b).
(b) LAND DESCRIPTION.—The parcel of land re-
ferred to in subsection (a) consists of approximately 21.55
acres known as the J and J Casting site, in Lake County,
Minnesota, together with a road easement, all as described
in the deed of the United States Marshal, dated March
22, 1988, executed pursuant to the order of sale of the
United States District Court for the District of Minnesota,
dated May 15, 1987, in case Civil No. 5–86–300.
(c) DELEGATION
OF AUTHORITY.—The Secretary
shall carry out this section acting through the Under Sec-
retary of Commerce for Economic Development.
SEC. 124. REPORTS.
(a) ANNUAL REPORT.—Not later than September 30
of each of fiscal years 1999 through 2003, the Secretary
of Commerce shall transmit to Congress a report contain-
ing an evaluation of the effectiveness of loan guarantees
and grants made under this subtitle.
(b) LONG-TERM PROGRAM.—
(1) STUDY.—The Secretary shall conduct a
study regarding the effects and costs of carrying out
a long-term and expanded program for guaranteeing
loans and making grants under this subtitle, includ-
ing a determination of national scope.
(2) REPORTS.—Not later than September 30,
2001, the Secretary shall transmit to Congress a re-
port containing the results of the study conducted
under paragraph (1), together with any rec-
ommendations for carrying out an effective dem-
onstration program of national scope under this sub-
title.
SEC. 125. COMPLIANCE WITH BUY AMERICAN ACT.
None of the funds made available to carry out this
Act, or any amendment made by this Act, may be ex-
pended in violation of the provisions of sections 2 through
4 of the Act of March 3, 1933 (41 U.S.C. 10a–10c; popu-
larly know as the ‘‘Buy American Act’’) that are applica-
ble to those funds. The Secretary of Commerce shall pro-
vide each recipient of such funds notice of the require-
ments specified in this section and information on methods
to comply with such requirements.
TITLE II—APPALACHIAN
REGIONAL DEVELOPMENT
SEC. 201. AMENDMENT OF APPALACHIAN REGIONAL DE-
VELOPMENT ACT OF 1965.
Except as otherwise expressly provided, whenever in
this title 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) 1998 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 areas of
the region and focus special attention on the areas of
greatest need so as to provide a fairer opportunity for the
people of the region to share the quality of life generally
enjoyed by citizens across this Nation.’’.
SEC. 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 strong county may be made
without a quorum of State members.’’.
SEC. 204. ADMINISTRATIVE EXPENSES.
Section 105 (40 U.S.C. App. 105) is amended—
(1) by striking ‘‘(a) For the period’’ and all
that follows through ‘‘such expenses’’ the first place
it appears and inserting ‘‘Administrative expenses of
the Commission’’; and
(2) by striking subsection (b).
SEC. 205. COMPENSATION OF EMPLOYEES.
Section 106(2) (40 U.S.C. App. 106(2)) is amended
by striking ‘‘the salary of the alternate to the Federal Co-
Chairman on the Commission as provided in section 101’’
and inserting ‘‘the maximum rate for the Senior Executive
Service under section 5382 of title 5, United States Code,
including any applicable locality-based comparability pay-
ment that may be authorized under section 5304(h)(2)(c)
of such title 5.’’.
SEC. 206. ADMINISTRATIVE POWERS OF COMMISSION.
Section 106(7) (40 U.S.C. App. 106(7)) is amended
by striking ‘‘1982’’ and inserting ‘‘2003’’.
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, 1998.—After September 30, 1998, 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.
SEC. 211. REPEAL OF WATER RESOURCE SURVEY.
Section 206 (40 U.S.C. App. 206) is repealed.
SEC. 212. COST SHARING OF HOUSING PROJECTS.
(a) LOANS.—Section 207(b) (40 U.S.C. App. 207(b))
is amended by striking ‘‘80 per centum’’ and inserting ‘‘50
percent (or 80 percent 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) 
GRANTS.—Section 
207(c)(1) 
(40 
U.S.C.
207(c)(1)) is amended by striking ‘‘80 per centum’’ and
inserting ‘‘50 percent (or 80 percent 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)’’.
SEC. 213. REPEAL OF AIRPORT SAFETY IMPROVEMENTS
PROGRAM.
Section 208 (40 U.S.C. App. 208) is repealed.
SEC. 214. COST SHARING OF VOCATIONAL EDUCATION AND
EDUCATION DEMONSTRATION PROJECTS.
(a) OPERATION
COSTS.—Section 211(b)(3) (40
U.S.C. App. 211(b)(3)) 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 211 (40 U.S.C. App.
211) is amended by adding at the end the following:
‘‘(c) MAXIMUM COMMISSION CONTRIBUTION AFTER
SEPTEMBER 30, 1998.—After September 30, 1998, 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, 1998, 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 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 evaluated.’’.
(c) REMOVAL OF LIMITATIONS.—Section 224(b) (40
U.S.C. App. 224(b)) is amended to read as follows:
‘‘(b) LIMITATION.—Financial assistance made avail-
able under this Act may not be used to assist establish-
ments relocating from one area to another.’’.
SEC. 219. DISTRESSED AND ECONOMICALLY STRONG COUN-
TIES.
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 STRONG
COUNTIES.
‘‘(a) DESIGNATIONS.—Not later than 90 days after
the date of enactment of this section, and annually there-
after, the Commission, 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
‘‘(2) designate two categories of economically
strong counties, as follows:
‘‘(A) ‘competitive counties’ which shall be
those counties in the region which are ap-
proaching economic parity with the rest of the
Nation; and
‘‘(B) ‘attainment counties’ which shall be
those counties in the region which have attained
or exceeded economic parity with the rest of the
Nation.
‘‘(b) DISTRESSED
COUNTIES.—In program and
project development and implementation and in the alloca-
tion of appropriations made available to carry out this Act,
the Commission shall give special consideration to the
needs of those counties for which a distressed designation
is in effect under this section.
‘‘(c) FUNDING PROHIBITION
FOR PROJECTS LO-
CATED IN ECONOMICALLY STRONG COUNTIES.—
‘‘(1) COMPETITIVE COUNTIES.—Except as pro-
vided by paragraphs (3) and (4), assistance under
this Act shall be limited to no more than 30 percent
of project cost for a project located in a county for
which a competitive county designation is in effect
under this section.
‘‘(2) ATTAINMENT COUNTIES.—Except as pro-
vided by paragraphs (3) and (4), no funds may be
provided under this Act for a project located in a
county for which an attainment county designation
is in effect under this section.
‘‘(3) EXCEPTIONS.—The prohibitions estab-
lished by paragraphs (1) and (2) shall not apply
to—
‘‘(A) projects on the Appalachian develop-
ment highway system authorized by section
201;
‘‘(B) local development district administra-
tive projects authorized by section 302(a)(1); or
‘‘(C) a multicounty project that includes a
county or counties designated as ‘competitive’
or ‘attainment’ under this section provided all
participating counties share in the costs and
benefits of the project.
‘‘(4) WAIVER.—The prohibitions established by
paragraphs (1) and (2) may be waived by the Com-
mission for a particular project upon a showing of
one or more of the following:
‘‘(A) The existence of a significant pocket
of distress in the part of the county in which
the project is located.
‘‘(B) A significant decline in economic con-
ditions affecting the county which is not re-
flected in current designation data.
‘‘(C) The existence of a significant poten-
tial benefit from the project in areas of the re-
gion outside the designated county.’’.
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, 1998, 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 amounts authorized by section 201
or otherwise made available for the Appalachian develop-
ment highway system program, there is authorized to be
appropriated to the Commission to carry out this Act—
‘‘(1) $67,000,000 for fiscal year 1999;
‘‘(2) $72,000,000 for fiscal year 2000;
‘‘(3) $75,000,000 for fiscal year 2001;
‘‘(4) $75,000,000 for fiscal year 2002; and
‘‘(5) $80,000,000 for fiscal year 2003.
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 ‘‘2003’’.
Æ