An Act to revise and extend the Appalachian Regional Development Act of 1965
PL 90-103 (S.602), enacted 10/11/1967

81 STAT.] 
PUBLIC LAW 90-103-OCJ. llj 1967 
257 
Public Law 90-103 
AN ACT 
To revise and extend the Appalachian Regional Development Act of 1965, ^nd 
to amend the Public Works and Economic Development Act of 1965. 
Be it enacted hy the Senate and House of Representati/ves of the 
United States of America in Congress assembled, 
TITLE I—APPALACHIAN REGIONAL DEVELOPMENT ACT 
AMENDMENTS OF 1967 
SEC. 101. This title may be cited as the "Appalachian Regional De-
velopment Act Amendments of 1967". 
SEC. 102. Section 102 of the Appalachian Regional Development Act 
of 1965 (hereinafter in this title referred to as "the Act") is amended 
(1) by inserting "and" at the end of clause (7); (2) by striking out 
the semicolon and the word "and" at the end of clause (8) and insert-
ing in lieu thereof a period; and (3) by striking out clause (9). 
SEC. 103. Section 105 of the Act is amended to read as follows: 
October 11, 1967 
[S. 602] 
Appalachian Re-
gional Develop-
ment Act Amend-
ments of 1967. 
79 Stat. 7. 
40 u s e app. 102. 
40 u s e app. 105. 
"ADMINISTRATIVE EXPENSES OF THE COMMISSION 
"SEC. 105. (a) For the period ending on June 30,1967, the adminis-
trative expenses of the Commission shall be paid by the Federal Gov-
ernment. Thereafter, such expenses shall be paid 50 per centum by the 
Federal Government and 50 per centum by the States in the region, 
except that the expenses of the Federal Cochairman, his alternate, and 
his staif shall be paid solely by the Federal Government. The share to 
be paid by each State shall be determined by the Commission. The 
Federal Cochairman shall not participate or vote in such determina-
tion. No assistance authorized by this Act shall be furnished to any 
State or to any political sulbdivision or any resident of any State, nor 
shall the State member of the Commission participate or vote in any 
determination by the Commission while such State is delinquent in 
payment of its share of such expenses. 
"(b) To carry out this section, there is hereby authorized to be ap-
propriated to the Commission, to be available until expended, not to 
exceed $1,700,000 for the two-fiscal-year period ending June 30,1969. 
Not to exceed $400,000 of such authorization shall be available for the 
expenses of the Federal Cochairman, his alternate, and his staff. Unex-
jyended balances of appropriations under the authorization in this sec-
tion prior to amendment by the Appalachian Regional Development 
Act Amendments of 1967 shall remain available for the purposes of 
this section, as amended, until expended." 
SEC. 104. Clause (7) of section 106 of the Act, entitled "ADMINISTRA-
TIVE POWERS or THE COMMISSION", is amended to read as follows: 
"(7) enter into and perform such contracts, leases (including, 
notwithstanding any other provision of law, the lease of office 
space for any term expiring no later than June 30,1971), coopera-
tive agreements, or other transactions as may be necessary in carry-
ing out its functions and on such terms as it may deem appropriate, 
with any department, agency, or instrumentality of the United 
States (which is hereby so authorized to the extent not otherwise 
prohibited by law) or with any State, or any political subdivision, 
agency, or mstrumentality thereof, or with any person, firm, 
association, or corporation." 
SEC. 105. Title I of the Act is amended by inserting at the end thereof 
a new section as follows: 
Appropriation, 
40 u s e app. 106. 
40 u s e app. 
101-108. 
258 
PUBLIC LAW 90-103-OCT. 11, 1967 
[81 STAT. 
COMMISSION EMPLOYEE 
PROTECTIONS 
80 Stat. 468. 
"SEC. 109. Section 5334(a) of title 5, United States Code, is amended 
by adding at the end thereof the following new sentence: 'For the 
purpose of this subsection, an individual employed by the Appalachian 
Regional Commission under section 106(a) of the Appalachian 
40 use a
^
* .106. R^gion^l Development Act of 1966, or by a regional commission 
' J ' established pursuant to section 502 of the Public Works and Economic 
79 Stat. 564. 
Development Act of 1965, under section 506(2) of such Act, who was 
3186. 
* 
a Federal employee immediately prior to such employment by a 
commission and within six months after separation from such employ-
ment is employed in a position to which this subchapter applies, shall 
be treated as if transferred from a position in the executive branch 
to which this subchapter does not apply.'." 
II fl^l' i™ on, 
SEC. 106. Section 201 of the Act is amended to read as follows: 
40 u s e app. 201. 
a 
APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM 
t ..., 
.. 
"SEC. 201. (a) In order to provide a highway system which, in 
conjunction with the Interstate System and other Federal-aid high-
ways in the Appalachian region, will open up an area or areas with 
a developmental potential where commerce and communication have 
been inhibited by lack of adequate access, the Secretary of Transpor-
tation (hereafter in this section referred to as the 'Secretary') is 
authorized to assist in the construction of an Appalachian development 
highway system and local access roads serving the Appalachian 
72 Stat. 885. 
regiou. The provisions of title 23, United States Code, that are appli-
cable to the construction and maintenance of Federal-aid primary and 
secondary highways, and which the Secretar;^ determines are not 
inconsistent with this Act, shall apply, respectively, to the develop-
ment highway system and the local access roads. Construction on the 
development highway system shall not exceed two thousand seven hun-
dred miles. Construction of local access roads shall not exceed one 
thousand six hundred miles that will serve specific recreational, resi-
dential, educational, commercial, industrial, or other like facilities or 
e^'- r 
will facilitate a school consolidation program. 
"(b) The Commission shall transmit to the Secretary its designa-
tions of (1) the general corridor location and termini of the develop-
ment highways, (2) local access roads to be constructed, (3) priorities 
for the construction of segments of the development highways, and 
(4) other criteria for the program authorized by this section. Before 
any State member participates in or votes on such designations, he 
shall have obtained the recommendations of the State highway depart-
ment of the State which he represents. 
' 
"(c) In no event shall the Secretary assist in any construction (in-
cluding right-of-way acquisition) which would require for its com-
pletion the expenditure of Federal funds (other than funds available 
under title 23, United States Code) in excess of the appropriations 
authorization in subsection (g). On its completion each development 
highway not already on the Federal-aid primary system shall be 
added to such system and each development highway and local access 
road shall be required to be maintained by the State as provided for 
Federal-aid highways in title 23, United States Code. 
"(d) In the construction of highways and roads authorized under 
this section, the States may give special preference to the. use of ma-
terials and products indigenous to the Appalachian region. 
Road construe- 
«^g^ YoT the purposcs of rescarch. and development in the use of 
Use of coal 
coal and coal products in highway construction and maintenance, the 
derivatives. 
SecTetaiy is authorized to require each participating State, to the 
tion 
percentage. 
81 STAT.] 
PUBLIC LAW 9 0 - 1 0 3 - O C T . 11, 1967 
259 
maximum extent possible, to use coal derivatives in the construction of 
not to exceed 10 per centum of the roads authorized under this Act. 
"(f) Federal assistance to any construction project under this sec- ^Jj^^'^i^ 
tion shall not exceed 50 per centum of the costs of such project, unless 
the Commission determines that assistance in excess of such percentage 
is required in furtherance of the purposes of this Act, but in no event 
shall such Federal assistance exceed 70 per centum of such costs. 
"(g) To carry out this section, there is hereby authorized to be 
Appropriation. 
appropriated to the President, to be available until expended, $715,-
000,000 for the four-fiscal-year period ending June 30, 1971. 
" (h) (1) When a participating State proceeds to construct a segment 
of a development highway without the aid of Federal funds, in accord-
ance with all procedures and requirements applicable to the construc-
tion of segments of Appalachian development highways with such 
funds, except insofar as such procedures and requirements limit a 
State to the construction of projects for which Federal funds have 
previously been appropriated, the Secretary, upon application by the 
State and with the approval of the Commission, is authorized to pay 
to the State the Federal share not to exceed 70 per centum of the costs 
of the construction of such segment, from any sums appropriated and 
' 
' 
allocated to such State to carry out this section. 
"(2) This subsection shall not be construed as a commitment or 
obligation on the part of the United States to provide funds for seg-
ments of development highways constructed under this subsection, and 
shall not increase the limitation on construction in subsection (c)." 
SEC. 107. Section 202 of the Act is amended to read as follows: 
H ^}^^' ^^• 
40 use app. 
202. 
'DEMONSTRATION HEALTH PROJECTS 
42 use 2661 
note. 
"SEC. 202. (a) In order to demonstrate the value of adequate health 
facilities and services to the economic development of the region, the 
Secretary of Health, Education, and Welfare is authorized to make 
grants for the planning, construction, equipment, and operation of 
multicounty demonstration health projects, including hospitals, 
regional health diagnostic and treatment centers, and other facilities 
and services necessary to health. Grants for such construction (includ-
ing the acquisition of privately owned facilities not operated for 
profit and initial equipment) shall be made in accordance with the 
applicable provisions of title VI of the Public Health Service Act (42 
U.S.C. 291-291o), the Mental Retardation Facilities and Community 
^s stau 447. 
Mental Health Centers Construction Act of 1963 (77 Stat. 282), and 
other laws authorizing grants for the construction of health-related 
facilities, without regard to any provisions therein relating to appro-
priation aiithorization ceilings or to allotments among the States. 
Grants under this section shall be made solely out of funds specifically 
appropriated for the purpose of carrying out this Act and shall not 
be taken into account in the computation of the allotments among the 
States made pursuant to any other provision of law. 
" (b) No grant for the construction or equipment of any component 
Federal share. 
of a demonstration health project shall exceed 80 per centum of such 
costs. The Federal contribution may be provided entirely from funds 
authorized under this section or in combination with funds provided 
under other Federal grant-in-aid programs for the construction or 
equipment of health-related facilities. Notwithstanding any provision 
of law limiting the Federal share in such other programs, funds author-
ized under this section may be used to increase Federal grants for 
component facilities of a demonstration health project to a maximum 
of 80 per centum of the costs of such facilities. 
260 
PtJBLIC LAW 90-103-OCT. 11, 1967 
[81 STAT. 
"(c) Grants under this section for operation (including initial 
operating funds and operating deficits comprising among other items 
the costs of attracting, training, and retaining qualified personnel) of 
a demonstration health project, whether or not constructed with funds 
authorized by this section, may be made for uj) to 100 per centum of the 
costs thereof for the two-year period beginningj for each component 
„ . , 
,, 
facility or service assisted under any such operating grant, on the first 
day that such facility or service is in operation as a part of the project. 
For the next three years of operations such grants shall not exceed 
50 per centum of such costs. No grant for operation of a demonstration 
health project shall be made unless the facility is publicly owned, or 
owned by a public or private nonprofit organization, and is not 
operated for profit. No grants for operation of a demonstration health 
project shall be made after five years following the commencement 
of the initial grant for operation of the project. No such grants shall 
be made unle^ the Secretary of Health, Education, and Welfare is sat-
isfied that the operation of the project will be conducted under efficient 
management practices designed to obviate operating deficits. Notwith-
standing section 104 of the Public Works and Economic Development 
42 use 3134. 
j ^ ^ ^ Qf j9^5 (Y9 Stat. 554), a health-related facility constructed under 
title I of that Act may be a component of a demonstration health 
project eligible for operating grant assistance under this section. 
"(d) The Secretary of Health, Education, and Welfare is author-
ized to provide funds to the Commission for the support of its Health 
Advisory Committee and to make grants for expenses of planning 
;' 
necessary for the development and operation of demonstration health 
P
rojects for the region. The amount of any such grant shall not exceed 
5 per centum of such expenses. 
"(e) Not to exceed $50,000,000 of the funds authorized in section 401 
Post, p. 266. 
Q£ ^l^-g ^^^ £QJ. ^j^g two-fiscal-year period ending June 30, 1969, shall 
be available to carry out this section." 
In fi^co ^^' on. 
SEC. 108. Subsection (i) of section 203 of the Act, entitled "LAND 
4U u s e app. ZV6, 
^ ' 
II 
• 
T 1 . 
STABILIZATION, CONSERVATION, AND EROSION CONTROL' , IS a m e n d e d t o 
read as follows: 
" (i) Not to exceed $19,000,000 of the funds authorized in section 
401 of this Act for the two-fiscal-year period ending June 30,1969, 
shall be available to carry out this section." 
40 use app. 204. 
g^,^ ^Qg Sectiou 204 of the Act is amended by striking out sub-
section (b) and inserting in lieu thereof the following new subsec-
tions (b) and (c): 
producrs^rtsearch 
."(^) T^® Secretary of Agriculture is authorized to provide tech-
grants. ' 
nical assistance, make grants, enter into contracts, or otherwise pro-
vide funds, first to colleges, universities and other institutions of 
higher education (with priority to land grant schools), and thereafter 
to forest products research institutions in the region and other appro-
priate public and private organizations, which schools, institutions,, 
and organizations have the demonstrated capability to perform such 
researdi, for Appalachian hardwood products research, including 
* o:i i *' -1 
investigations, studies, and demonstrations, which will further the 
l>urposes of this Act. Funds shall be provided only for programs and 
projects which will contribute significantly to the development of 
' 
(1) Appalachian hardwood technology, (2) new or improved uses of 
Appalachian hardwood resources, (3) new or improved processes or 
methods for producing hardwood products, or (4) new or improved 
markets for such products. Funds under this section shall be provided 
solely out of sums specifically appropriated for the purpose of carry-
ing out this Act, and shall not be taken into account in the allocation 
or distribution of funds pursuant to any other provision of law. 
81 STAT. ] 
PUBLIC LAW 90-103-OCT. 11, 1967 
261 
Post, p. 266. 
"(c) Not to exceed $2,000,000 of the funds authorized in section 401 
of this Act for the two-fiscal-year period ending June 30,1969, shall be 
available to carry out the purposes of subsection (b) of this section." 
SEC. 110. (a) Clause (1) of subsection (a) of section 205 of the Act, ^J^^^^^^^^^^ 
entitled "MINING AKEA RESTORATION", is amended to read as follows: 
79 stat. 13. 
"(1) make financial contributions to States in the region to 
40 use app. 205. 
seal and fill voids in abandoned coal mines and abandoned oil 
and gas wells, and to reclaim and rehabilitate lands affected by 
the strip and surface mining and processing of coal and other 
minerals, including lands affected by waste piles, in accordance 
with provisions of the Act of July 15,1955 (30 U.S.C. 571 et seq.), 
^^ ^tat. 352. 
to the extent applicable, without regard to section 2(b) thereof 
• 
(30 U.S.C. 572(b)) or to any provisions therein limiting assist- 
^^ ^^^*- ^^'^• 
ance to anthracite coal formation, or to the Commonwealth of 
Pennsylvania. Grants under this paragraph shall be made wholly 
out of funds specifically appropriated for the purposes of carry-
ing out this Act." 
(b) Strike out clause (3) of subsection (a) of section 205 of the fg-l^at* ^4 
Act. 
(c) Subsection (b) of section 205 of the Act is amended to read as 
follows: 
" (b) For the fiscal years 1966, 1967, 1968, and 1969, not withstand-
ing any other provision of law, the Federal share of mining area 
restoration projects, including reasonable planning and engineering 
costs, carried out under subsection (a) of this section and conducted on 
lands other than federally owned lands shall not exceed 75 per centum 
of the total cost thereof. The non-Federal share of the total cost of any 
project carried out under subsection (a) of this section may include 
reasonable land acquisition costs incurred in acquiring land necessary 
for the purposes of implementing such project, if such land is acquired 
after the date of enactment of the Appalachian Regional Development 
Act Amendments of 1967." 
(d) The first sentence of subsection (d) of section 205 of the Act is 
amended to read as follows: "Not to exceed $30,000,000 of the funds 
^^ -s ^:"» 
authorized in section 401 of this Act for the two-fiscal-year period 
ending June 30,1969, shall be available to carry out this section." 
^' ' ' "' 
SEC. 111. Subsection (g) of section 206 of the Act, entitled "WATER 
^° ^^^ °PP- ^oe. 
RESOURCE SURVEY", is amended to read as follows: 
"(g) Not to exceed $2,000,000 of the funds authorized in section 
401 of this Act for the two-fiscal-year period ending June 30, 1969, 
shall be available to carry out this section." 
SEC. 112. Part A of title I I of the Act is amended by inserting at 
the end thereof a new section as follows: 
20T-206 
"ASSISTANCE FOR PLANNING AND OTHER PRELIMINARY 
EXPENSES 
OP 
fi " <i' 
PROPOSED HOUSING PROJECTS UNDER SECTION 221 OF T H E NATIONAL 
HOUSING ACT 
"SEC. 207. (a) In order to encourage and facilitate the construction 
or rehabilitation of housing to meet the needs of low- and moderate-
income families and individuals, the Secretary of Housing and Urban 
Development (hereafter in this section referred to as the 'Secretary') 
is authorized to make grants and loans from the Appalachian Housing 
Fund established by this section, under such terms and conditions as 
he may prescribe, to nonprofit, limited dividend, or cooperative organi-
zations, or to public bodies, for expenses of planning and of obtaining 
an insured mortgage for a housing construction or rehabilitation 
project, under section 221 of the National Housing Act (hereafter in 
^^ ^*^*- s^^-. 
this section referred to as 'section 221'), in any area of the Appalachian 
^ ^ use 1715z. 
79 Stat. 10. 
40 u s e app. 
262 
PUBLIC LAW 90-103-OCT. 11, 1967 
[81 STAT. 
68 Stat. 599. 
12 u s e 1715Z. 
Appalachian 
Housing Fund, 
Post, p. 266. 
79 Stat. 16. 
40 u s e app. 211, 
40 u s e app. 212. 
73 Stat. 678; 
78 Stat. 792, 
793; 79 Stat. 17. 
79 Stat. 21. 
40 u s e app. 403. 
Post, p. 266. 
79 Stat. 19. 
40 u s e app. 301. 
region determined by the Commission to have significant potential 
for future growth. 
*' (b) No ^rant under this section shall exceed 80 per centum of those 
administrative expenses, incident to planning a project and obtaining 
an insured mortgage under section 221, which the Secretary considers 
not to be recoverable from the proceeds of a mortgage insured under 
such section: Provided, That no grant shall be made to an organization 
established for profit. 
"(c) No loan under this section shall exceed 80 per centum of the 
cost of planning a project and obtaining an insured mortgage under 
section 221, including, but not limited to, preliminary surveys and 
analyses of market needs, preliminary site engineering and architec-
tural fees, site options. Federal Housing Administration and Federal 
National Mortgage Association fees, and construction loan fees and 
discounts. Loans may be made without interest, or at any market or 
below market interest rate authorized for a mortgage insured under 
section 221: Provided, That any loan made to an organization estab-
lished for profit shall bear interest at the prevailing market rate au-
thorized for a mortgage insured under such section. The Secretary 
may, except in the case of a loan to an organization established for 
profit, waive the repayment of all or any part of a loan made under 
this section, including interest, which he finds the borrower is unable 
to recover from the proceeds of a mortgage insured under section 
221. 
"(d) All funds allocated to the Secretary for the purposes of this 
section shall be deposited in a fund which shall be known as the Ap-
palachian Housing Fund and shall be used as a revolving fund by the 
Secretary for carrying out such purposes. General expenses of admin-
istration of this section may be charged to the fund. Moneys in the 
fund not needed for current operation may be invested in bonds or 
other obligations guaranteed as to principal and interest by the United 
States. 
" (e) Not to exceed $5,000,000 of the funds authorized in section 401 
of this Act for the two-fiscal-year period ending June 30,1969, shall be 
available to carry out this section." 
SEC. 113. (a) Subsection (a) of section 211 of the Act, entitled 
"VOCATIONAL EDUCATION FACILITIES", is amended by inserting before 
the word "needed" in the first sentence, the following: "and for the 
equipment of such facilities and other school facilities". 
(b) Subsection (b) of section 211 of the Act is amended to read as 
follows: 
"(b) Not to exceed $26,000,000 of the funds authorized in section 
401 of this Act for the two-fiscal-year period ending June 30, 1969,' 
shall be available to carry out this section." 
SEC. 114. Subsection (b) of section 212 of the Act, entitled "SEWAGE 
TREATMENT WORKS", is amended to read as follows: 
"(b) Not to exceed $6,000,000 of the funds authorized in section 
401 of this Act for the two-fiscal-year period ending June 30, 1969, 
shall be available to carry out this section." 
SEC. 115. (a) Section 701 (a) of the Housing Act of 1954 (40 U.S.C. 
461 (a)) is amended by striking out "and" at the end of clause (8) and 
all of clause (9) and inserting m lieu thereof the following: 
"(9) the Appalachian Regional Commission, for comprehen-
sive planning for the Appalachian region as defined by section 
403 of the Appalachian Kegional Development Act of 1965; and 
" (10) local develoj)ment districts, certified under section 301 of 
the Appalachian Regional Development Act of 1965, for compre-
hensive planning for their entire areas, or for metropolitan plan-
ning, urban planning, county planning, or small municipality 
81 STAT.] 
PUBLIC LAW 9 0 - 1 0 3 - O C T . 11, 196i7 
263 
planning within such areas in the Appalachian region, and for 
planning for Appalachian regional programs." 
(b) The proviso of the first sentence of section 701(b) of the 
Housing Act of 1954 is amended by inserting after "States" the words 
yJltlT^y^^' 
"and local development districts". 
40 use 46i. 
SEC. 116. Section 214 of the Act is amended to read as follows: 
H f
*
^
*
- ^^• 
40 use app. 
214. 
1 
"SUPPLEMENTS TO FEDERAL GRANT-IN-AID PROGRAMS 
"SEC. 214. (a) In order to enable the people, States, and local com-
munities of the region, including local development districts, to take 
maximum advantage of Federal grant-in-aid programs (as hereinafter 
defined) for which they are eligible but for which, because of their 
economic situation, they cannot supply the required matching share, 
the President is authorized to provide funds to the Federal Cochair-
man to be used for the sole purpose of increasing the Federal contribu-
tion to projects under Federal grant-in-aid programs, as hereafter 
.: j^.^ •• 
defined, above the fixed maximum portion of the cost of such projects 
otherwise authorized by the applicable law. Funds shall be so provided 
for Federal grant-in-aid programs for which funds are available under 
the Acts authorizing such programs and shall be available without 
regard to any appropriation authorization ceilings in such Acts. Any 
finding, report, certification, or documentation required to be submitted 
to the head of the department, agency, or instrumentality of the Fed-
eral Government responsible for the administration of any Federal 
grant-in-aid program shall be accepted by the Federal Cochairman 
with respect to a supplemental grant for any project under such 
program. 
"(b) The Federal portion of such costs shall not be increased in 
excess of the percentages established by the Commission, and shall in 
no event exceed 80 per centum thereof. 
"(c) The term 'Federal grant-in-aid programs' as used in this section inllld t^o^am^s"" 
means those Federal grant-in-aid programs authorized by this Act for 
the construction or equipment of facilities, and all other Federal grant-
in-aid programs authorized on or before December 31, 1967, by Acts 
other than this Act for the acquisition of land or the construction or 
equipment of facilities, including but not limited to grant-in-aid pro-
grams authorized by the following Acts: Federal Water Pollution 
Control Act; Watershed Protection and Flood Pevention Act; title ^g^uscf^00^1^11"°**' 
VI of the Public Health Service Act; Vocational Education Act of 42 use 291; "° *' 
1963; Library Services Act; Federal Airport Act; part IV of title I I I 20 use 35 note, 
of the Communications Act of 1934; Higher Education Facilities Act ?iJi"notLM7"usc 
of 1963; Land and Water Conservation Fund Act of 1965; National 390-397; 20 use 
Defense Education Act of 1958. The term shall not include (A) the lHu'^ltl^^ 2"^^ 
program for the construction of the development highway system use 401 note. 
authorized by section 201 of this Act or any other program relating 
"*"**' ^' ^
^
®
* 
to highway or road construction, or (B) any other program for which 
loans or other Federal financial assistance, except a grant-in-aid pro-
gram, is authorized by this or any other Act. 
"(d) Not to exceed $97,000,000 of the funds authorized in section 
401 of this Act for the two-fiscal-year period ending June 30, 1969, P°^*' P- 266. 
shall be available to carry out this section." 
SEC. 117. (a) The first sentence of section 221 of the Act, entitled 
H ulc ipp. 
"MAINTENANCE OF EFFORT", is amended by striking out "exclusive of 221. 
Federal funds," and inserting in lieu thereof the following: "exclusive 
of expenditures for participation in the National Svstem of Interstate 
and Defense Highways, and exclusive of local funds and Federal 
funds,". 
264 
PUBLIC LAW 90-103-OCT. 11, 1967 
[81 STAT. 
(b) The second sentence of such section is amended by inserting after 
"Highways" the following: "and expenditures of local funds and Fed-
eral funds". 
40 us^c ipp. 
^^^" ^^^' Section 223 of the Act is amended to read as follows: 
223. 
PROORAM IMPLEMENTATION 
"SEC. 223. No program or project authorized under any section of 
this title shall be implemented until (1) applications and plans relating 
to the program or project have been determined by the responsible 
Federal official to be compatible with the provisions and objectives of 
Federal laws which he administers that are not inconsistent with this 
Act, and (2) the Commission has approved such program or project 
and has determined that it meets the applicable criteria under section 
224 and will contribute to the development of the region, which deter-
mination shall be controlling." 
40 use app. 224. 
SEC. 119. (a) Subsection (a) of section 224 of the Act, entitled 
"PROGRAM DEVELOPMENT CRITERIA", is amended (1) by striking out 
"In developing recommendations on the" and inserting in lieu 
thereof: "In considering"; and (2) by striking out "within those 
recommendations". 
(b) Subsection (b) of such section is amended by striking out clause 
(1) and inserting in lieu thereof the foUow^ing: "(1) to assist estab-
lishments relocating from one area to another;". 
40 use app. 302. 
gj,^. 120. Sectlou 302 of the Act, entitled "GRANTS FOR ADMINISTRA-
TIVE EXPENSES OF LOCAL DEVELOPMENT DISTRICTS AND FOR RESEARCH AND 
DEMONSTRATION PROJECTS", is amended by (1) striking out subsections 
(a) through (c); (2) redesignating subsection (d) as subsection (e); 
and (3) inserting the following new subsections (a) through (d) : 
"(a) The President is authorized— 
"(1) to make grants to the Commission for administrative 
expenses, including technical services, of local development dis-
tricts, but (A) the amount of any such grant shall not exceed 75 
per centum of such expenses, (B) no grants for administrative 
expenses shall be made for a local development district for a 
period in excess of three years beginning on the date the initial 
grant is made for such development district, and (C) the local 
development district contributions for administrative expenses 
may be in cash or in kind, fairly evaluated, including but not 
limited to space, equipment, and services; and 
",(2) to make grants to the Commission for investigation, 
research, studies, technical assistance, and demonstration projects, 
and for training programs, but not for construction purposes, 
which will further the purposes of this Act. 
s'tud''^ pollution 
^^{h) The Commission is authorized to make a survey and study of 
acid pollution in the region resulting from mining activities and the 
effects of such pollution, in full cooperation with the Secretary of the 
Interior and other appropriate Federal, State, and local departments 
and agencies, with the objective of developing a comprehensive action 
program for the appropriate control, reduction, or elimination of such 
pr^sidert* and 
poUutiou iu the regiou or the effects of such pollution. The Commis-
eongre^ss. °" 
slou shall submit to the President a report, including specific recom-
mendations for such program and for the policies under w^hich it 
should be conducted, and the President shall submit the report to the 
Congress, together with his recommendations, jiot later than March 31, 
eontents. 
1969. The study shall, among other matters— 
"(1) Identify sources of acid mine pollution in the region and 
their type, area, ownership, and other characteristics; the relative 
contribution of each source; and the impact of each source on 
water quality in the streams affected. 
81 STAT.] 
PUBLIC LAW 90-103-OCT. 11, 1967 
265 
"(2) Identify present and potential water-using and other 
activities which are affected by acid mine pollution in the region, 
or originating in the region, and the economic and social costs 
and effects attributable to such pollution. 
• 
"(3) Identify known methods and costs for the control and 
. ' 
abatement of acid mine pollution. 
"(4) Estimate economic and social benefits, public and private, 
^ 
that are likely to result from reducing to various levels acid mine 
pollution in the streams of the region and identify the types of 
^ - :-
beneficiaries and the relative distribution of the benefits to such 
I 
beneficiaries. 
"(5) Consider the appropriate roles of Federal, State, and 
private interests in programs for the control, reduction, or elimi-
nation of acid mine pollution in the region and the relative costs 
which each should bear, including specifically (A) the extent, 
if any, to which private interests can bear the cost of such pro-
grams within the economics of mining activity, (B) the effective-
ness of past action by Federal, State, and local units of govern-
ment in remedying or controlling the adverse effects of acid mine 
pollution, (C) relationships which might be established among 
Federal, State, and local units of government, and with private 
interests, or implementing and funding such programs, and (D) 
the need for appropriate Federal and State legislation, including 
adequate enforcement provisions, for such programs. 
"(6) Formulate a program for the appropriate control, reduc- 
^ 
'" 
tion, or elimination of acid mine pollution in the region, including 
the identification of specific objectives and costs, with due con-
sideration to: (A) the developmental effects of the program, (B) 
the economic benefits of the program in relation to costs, (C) the 
social effects of the program, (D) the avoidance of unwarranted 
I 
financial 
gain to private interests, and (E) the types and sources 
of aid required to accomplish the program. 
"(c) (1) The Commission shall, as required by the President, main- reco"dr,*^^°^ 
tain accurate and complete records of transactions and activities maintenance. 
financed with Federal funds and report thereon to the President. The 
records of the Commission shall be available for audit with respect to 
such grants by the President and the Comptroller General or their 
duly authorized representatives. 
"(2) Recipients of Federal assistance under the provisions of this 
section shall, as required by the Commission, maintain accurate and 
complete records of transactions and activities financed with Federal 
funds and report thereon to the Commission. Such records shall be 
available for audit by the President, the Comptroller General, and the 
Commission or their duly authorized representatives. 
"(d) Not to exceed $11,000,000 of the funds authorized in section 
401 of this Act for the two-fiscal-year period ending June 30, 1969, 
^°^^' P- '^^^^ 
shall be available to carry out this section. Not to exceed $3,000,000 
of such authorization shall be available for the purposes of subsection 
(b)." 
SEC. 121. Section 303 of the Act is amended to read as follows: 
H s*^*- 20. 
40 u s e app. 303. 
il. 
PROJECT APPROVAL 
"SEC. 303. An application for a grant or for any other assistance for 
a program or project under this Act shall be made through the State 
member of the Commission representing such applicant, and such 
State member shall evaluate the application for approval. Only appli-
cations for p r o - a m s and projects which are approved by a State 
member as meeting the requirements for assistance under the Act shall 
266 
PUteLIC LAW 90-103-OCT. 11, 1967 
[81 STAT. 
be approved for assistance. No project shall be approved by the Com-
mission unless the Commission is satisfied that the project will be 
properly administered, operated, and maintained." 
It ^i^^' ^^'.«, 
SEC. 122. Section 401 of the Act is amended to read as follows: 
40 u s e app.401. 
li 
Ante, pp. 25 7, 
258. 
40 u s e app. 
403. 
Alabama. 
Mississippi. 
New York, 
Tennessee. 
79 <
V .
< 
42 J^•;: 2183. 
42 u s e 3185. 
42 u s e 3189. 
AUTHORIZATION OF APPROPRIATIONS 
"SEC. 401. In addition to the appropriations authorized in section 
105 and in section 201 for the Appalachian development highway sys-
tem and local access roads, there is hereby authorized to be appropri-
ated to the President, to be available until expended, not to exceed 
$170,000,000 for the two-fiscal-year period ending June 30, 1969, to 
carry out this Act." 
SEC. 123. (a) Section 403 of the Act, entitled "DEFINITION OF AP-
PALACHIAN REGION", is amended— 
(1) by inserting in the clause relating to the counties in Alabama 
after "Jefferson," the following: "Lamar," and after "Morgan," 
the following: "Pickens,"; 
(2) by inserting after the clause relating to the counties in 
Maryland the following: 
"In Mississippi, the counties of Alcorn, Benton, Chickasaw, 
Choctaw, Clay, Itawamba, Kemper, Lee, Lowndes, Marshall, 
Monroe, Noxubee, Oktibbeha, Pontotoc, Prentiss, Tippah, 
Tishomingo, Union, Webster, and Winston ; 
"In New York, the counties of Allegany, Broome, Cattarau-
gus, Chautauqua, Chemung, Chenango, Cortland, Delaware, 
Otsego, Schoharie, Schuyler, Steuben, Tioga, and Tomp-
kins;"; and 
(3) by inserting in the clause relating to the counties in Tennes-
see after "Campbell" the following: "Cannon,". 
(b) Such section is further amended by striking out the colon 
following "West Virginia" and inserting in lieu thereof a period, and 
by striking out all of the remainder of such section and inserting in 
lieu thereof the following: 
"No recommendation for any change in the definition of the Appa-
lachian region as set forth in this section shall be proposed or con-
sidered by the Commission without a prior resolution by the Committee 
on Public Works of the Senate or of the House of Representatives, 
directing a study of such change." 
TITLE II—AMENDMENTS TO T H E PUBLIC WORKS AND 
ECONOMIC DEVELOPMENT ACT OF 1965 
SEC. 201. Subsection (a) of section 503 of the Public Works and 
Economic Development Act of 1965 is amended by striking the 
semicolon after clause (2), inserting a comma, and the following: 
"including the development of a comprehensive long-range economic 
plan approved by the Secretary;". 
SEC. 202. Sulisection (c) of section 505 of the Public Works and 
Economic Development Act of 1965 is amended by adding at the end 
thereof the following: 
"Not to exceed $2,500,000 of the funds authorized to be appropriated 
by this subsection for each fiscal year shall be allocated by the Secretary 
to each regional commission to carry out the purposes of this section." 
SEC. 203. Section 509 of the Public Works and Economic Develop-
ment Act of 1965 is amended by redesignating such section as section 
510 and by inserting after section 508 the following new section 509: 
81 STAT.] 
PUBLIC LAW 90-103-OCT. 11, 1967 
267 
SUPPLEMENTS TO FEDERAL GRANT-IN-AID PROGRAMS 
"SEC. 509. (a) In order to enable the States and other entities within 
economic development regions established under this Act to take maxi-
mum advantage of Federal grant-in-aid programs (as hereinafter 
defined) for which they are eligible but for which, because of their 
economic situation, they cannot supply the required matching share, 
the Secretary shall, once a comprehensive long-range economic plan 
established pursuant to clause (2) of section 503(a) is in effect, pro-
vide funds pursuant to specific recommendations, to each of the Fed-
eral Cochairmen of the regional commissions heretofore or hereafter 
established under this title, to be used for the sole purpose of increas-
ing the Federal contribution to projects under such programs above the 
fixed maximum portion of the cost of such projects otherwise author-
ized by the applicable law. No program or project authorized under 
this section shall be implemented until (1) applications and plans 
relating to the program or project have been determined by the 
responsible Federal official to be compatible with the provisions and 
objectives of Federal laws which he administers that are not incon-
sistent with this Act, and (2) the Regional Commission involved has 
approved such program or project and has determined that it meets the 
applicable criteria under section 504 and will contribute to the develop-
ment of the region, which determination shall be controlling. Funds 
may be provided only for Federal grant-in-aid programs for which 
funds are available under the Act authorizing such programs. Funds 
so provided shall be available without regard to any appropriation 
authorization ceilings in such Act. 
"(b) The Federal portion of such costs shall not be increased in 
excess of the percentages established by each commission, and shall in 
no event exceed 80 per centum thereof. 
"(c) The term 'Federal grant-in-aid programs' as used in this 
section means all Federal grant-in-aid programs in existence on or 
before December 31, 1967, assisting in the acquisition of land or the 
construction or equipment of facilities, including but not limited to 
grant-in-aid programs authorized by title I of this Act and by the 
following Acts: Federal Water Pollution Control Act; Watershed 
Protection and Flood Prevention Act; title VI of the Public Health 
Service Act; Vocational Education Act of 1963; Library Services 
Act; Federal Airport Act; part IV of title I I I of the Communica-
tions Act of 1934; Higher Education Facilities Act of 1963; Land and 
Water Conservation Fund Act of 1965; and National Defense Educa-
tion Act of 1958. The term shall not include any program in which 
loans or other Federal financial assistance, except a grant-in-aid pro-
gram, is authorized by this or any other Act. Grants under this section 
shall be made solely out of funds specifically appropriated for the pur-
pose of carrying out this section, and shall not be taken into account 
in the computation of allocations among the States made pursuant to 
any other provision of law. 
"(d) There is hereby authorized to be appropriated to the Secre-
tary for each of the regional commissions for the purposes of this sec-
tion the sum of $5,000,000 for the period ending June 30, 1968, and 
the sum of $10,000,000 for the fiscal year ending June 30,1969. 
"(e) An application for a grant under this section shall be made 
through the State member of the Commission representing such appli-
cant, and such State member shall evaluate the application for 
approval. Only applications for programs and projects which are 
approved by a State member as meeting the requirements for assist-
ance under this section shall be approved for assistance." 
Ante, 
p. 266. 
79 Stat. 566. 
42 u s e 3184. 
"Federal grant-
in-aid programs." 
33 u s e 466 note; 
16 u s e 1001 
note; 42 USe 
291; 20 u s e 35 
note; 351 note; 
49 u s e 1101 
note; 47 USe 
390-397; 20 USe 
701 note; 16 USC 
460Z-4 note; 
20 USC 401 note. 
Appropriation, 
268 
PUBLIC LAW 90-104-OCT. 11, 1967 
[81 STAT. 
79 Stat. 569. 
42 u s e 3201-
3203. 
SEC. 204. The Public Works and Economic Development Act of 
1965 is amended by adding at the end of title VI tliereof the following 
new section: 
ADMINISTRATION, OPERATION, AND MAINTENANCE 
"SEC. 604. 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." 
Approved October 11, 1967. 
October 11, 1967 
[S. 1862] 
Small Business 
Act Amendments 
of 1967. 
Revolving funds. 
80 Stat. 132. 
15 u s e 633. 
Construction 
loans. 
72 Stat. 388. 
15 u s e 636. 
Disaster loans. 
80 Stat. 1319. 
Volunteer man-
agement coun-
selors. 
Travel expenses' 
etc. 
80 Stat. 1295. 
15 u s e 637. 
80 Stat. 499. 
Public Law 90-104 
AN ACT 
To amend the authorizing legislation of the Small Business Administration, and 
for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, 
, 
T I T L E I 
. .nv' -,:..^,>r-: 
- i, .r^ 
SEC. 101. This title may be cited as the "Small Business Act Amend-
ments of 1967". 
SEC. 102. Paragraph (4) of section 4(c) of the Small Business Act is 
amended— 
(1) by striking out "$1,400,000,000" and inserting in lieu there-
of "$1,900,000,000"; 
(2) by striking out "$400,000,000" and inserting in lieu thereof 
"$450,000,000"; 
(3) by striking out "$200,000,000" and inserting in lieu thereof 
"$300,000,000"; and 
(4) by striking out "$100,000,000" and inserting in lieu thereof 
"$200,000,000". 
SEC. 103. Paragraph (4) of section 7(a) is amended by striking out 
"except that a loan made for the purpose of constructing facilities may 
have a maturity of ten years" and inserting in lieu thereof "except that 
such portion of a loan made for the purpose of constructing facilities 
may have a maturity of fifteen years". 
SEC. 104. The subsection added to section 7 of the Small Business 
Act by the Disaster Eelief Act of 1966 (Public Law 89-769), and des-
ignated thereby as subsection (e), is redesignated as subsection (f). 
SEC. 105. Subparagraph (B) of paragraph (1) of section 8(b) of 
the Small Business Act is amended to read as follows: 
"(B) in the case of any individual or group of persons co-
operating with it in furtherance of the purposes of subparagraph 
(A), (i) to allow such an individual or group such use of the 
Administration's office facilities and related materials and services 
: J as the Administration deems appropriate; and (ii) to pay the 
transportation expenses and a per diem allowance in accordance 
w^ith section 5703 of title 5, United States Code, to any such in-
dividual for travel and subsistence expenses incurred at the request 
of the Administration in connection with travel to a point more 
than fifty miles distant from the home of that individual in pro-
„ 
viding gratuitous services to small businessmen in furtherance 
of the purposes of subparagraph (A) or in connection with at-
tendance at meetings sponsored by the Administration;".