[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5243 Engrossed in House (EH)]

103d CONGRESS
  2d Session
                                H. R. 5243

_______________________________________________________________________

                                 AN ACT


 
   To amend the Public Works and Economic Development Act of 1965 to 
   reauthorize economic development programs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Economic 
Development Reauthorization Act of 1994''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Direct and supplementary grants.
Sec. 3. Grants for public works facilities.
Sec. 4. Repeal of financial assistance for sewer facilities.
Sec. 5. Relationship of overall economic development plan to public 
                            works and development facility loans.
Sec. 6. Elimination of overall economic development program.
Sec. 7. Redevelopment area loan program.
Sec. 8. Technical assistance, research, and information.
Sec. 9. Business outreach center demonstration project.
Sec. 10. Office of Strategic Economic Development Planning and Policy.
Sec. 11. Office of Economic Development Information.
Sec. 12. Authorization of appropriations for technical assistance, 
                            research, and information.
Sec. 13. Redevelopment areas.
Sec. 14. Annual review.
Sec. 15. Economic development districts.
Sec. 16. Equity between rural and urban areas.
Sec. 17. Applications for assistance.
Sec. 18. Performance evaluations of grant recipients.
Sec. 19. Transfer of funds.
Sec. 20. Extension of benefits.
Sec. 21. Supervision of Regional Counsels.
Sec. 22. Purpose.
Sec. 23. Definition of eligible recipient.
Sec. 24. Base closings and realignments.
Sec. 25. Outreach to communities adversely affected by closures and 
                            realignments of military installations.
Sec. 26. Treatment of revolving loan funds.
Sec. 27. Sale of financial instruments in revolving loan funds.
Sec. 28. Competitive communities pilot program.
Sec. 29. Special economic development and adjustment assistance.
Sec. 30. Compliance with Buy American Act.
Sec. 31. Regulatory relief.

SEC. 2. DIRECT AND SUPPLEMENTARY GRANTS.

    (a) Grants.--Section 101(a) of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3131(a)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``representing any redevelopment area or part thereof'' and 
        inserting ``acting in cooperation with an official of a local 
        government''; and
            (2) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``acquisition, construction'' and inserting 
                ``acquisition, design, engineering, construction'';
                    (B) by striking subparagraph (C) and inserting the 
                following new subparagraph:
                    ``(C) the area for which the project is to be 
                undertaken has an approved overall economic development 
                plan as provided in section 402 and such project is 
                consistent with such plan; and''; and
                    (C) in subparagraph (D)--
                            (i) by striking ``so designated under 
                        section 401(a)(6),'' and inserting ``described 
                        in section 401(a)(7),''; and
                            (ii) by striking ``area.'' and inserting 
                        ``area; and''.
    (b) Considerations for Supplementary Grants.--Section 101(c) of 
such Act is amended--
            (1) in the second and third sentences, by striking 
        ``designated as such under section 401(a)(6) of this Act.'' and 
        inserting ``described in section 401(a)(7).''; and
            (2) in the last sentence--
                    (A) by striking ``the area, the'' and inserting 
                ``the area and the''; and
                    (B) by striking ``, and the amount of such'' and 
                all that follows and inserting a period.

SEC. 3. GRANTS FOR PUBLIC WORKS FACILITIES.

    Section 105 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3135) is amended to read as follows:

``SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$195,000,000 for each of fiscal years 1995 through 1997. Such sums 
shall remain available until expended. Not less than 15 percent and not 
more than 35 percent of the amounts appropriated for any of fiscal 
years 1995 through 1997 under this section shall be expended in 
redevelopment areas described in section 401(a)(7).''.

SEC. 4. REPEAL OF FINANCIAL ASSISTANCE FOR SEWER FACILITIES.

    (a) In General.--Title I of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3131-3137) is amended--
            (1) by repealing section 106;
            (2) by redesignating section 107 as section 104; and
            (3) by moving such section 104 to appear after section 103.
    (b) Conforming Amendment.--Section 211(b)(3) of the Appalachian 
Regional Development Act of 1965 (40 U.S.C. App. 211(b)(3)) is amended 
in the last sentence by striking ``Notwithstanding'' and all that 
follows through ``education-related'' and inserting ``An education-
related''.

SEC. 5. RELATIONSHIP OF OVERALL ECONOMIC DEVELOPMENT PLAN TO PUBLIC 
              WORKS AND DEVELOPMENT FACILITY LOANS.

    Section 201(a) of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3141(a)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``representing any redevelopment area thereof'' and inserting 
        ``acting in cooperation with an official of a local 
        government''; and
            (2) by striking paragraph (5) and inserting the following 
        new paragraph:
            ``(5) such area has an approved overall economic 
        development plan as provided in section 402 and the project for 
        which financial assistance is sought is consistent with such 
        plan.''.

SEC. 6. ELIMINATION OF OVERALL ECONOMIC DEVELOPMENT PROGRAM.

    Section 202(b) of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3142(b)) is amended--
            (1) in paragraph (1), by striking ``Such financial 
        assistance shall not be extended'' and inserting ``The 
        applicant for such financial assistance shall include, in the 
        application of the applicant for such assistance, an assurance 
        that the assistance will not be used''; and
            (2) in paragraph (10), by striking ``there shall be 
        submitted to and approval of the Secretary an overall program 
        for the economic development of the area and'' and inserting 
        ``the applicant shall submit to the Secretary under section 
        402, and obtain approval of, an overall economic development 
        plan and there is''.

SEC. 7. REDEVELOPMENT AREA LOAN PROGRAM.

    (a) In General.--Section 204(a) of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3144(a)) is amended by striking the 
last two sentences.
    (b) Conforming Amendments.--
            (1) Section 2 of the Act entitled ``An Act to amend the 
        Public Works and Economic Development Act of 1965 to extend the 
        authorizations for title I through IV through fiscal year 
        1971'', approved July 6, 1970 (42 U.S.C. 3162 note) is 
        repealed.
            (2) Section 6 of the Act entitled ``An Act to amend the 
        Public Works and Economic Development Act of 1965 to extend the 
        authorizations for a one-year period'', approved June 18, 1973 
        (42 U.S.C. 3162 note) is amended--
                    (A) in subsection (a), by striking ``(a)''; and
                    (B) by striking subsection (b).

SEC. 8. TECHNICAL ASSISTANCE, RESEARCH, AND INFORMATION.

    Section 301(a)(1) of the Public Works and Economic Development Act 
of 1965 (42 U.S.C. 3151(a)(1)) is amended by striking ``areas which he 
has designated as redevelopment areas under this Act,'' and inserting 
``redevelopment areas,''.

SEC. 9. BUSINESS OUTREACH CENTER DEMONSTRATION PROJECT.

    Section 303 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3152) is amended to read as follows:

``SEC. 303. BUSINESS OUTREACH CENTER DEMONSTRATION PROJECT.

    ``(a) Definition.--As used in this section, the term `isolated 
small business' means a small business that is unable to effectively 
access small business services provided by a Federal, State, or local 
government due to linguistic, cultural, or geographic barriers, as 
determined by the Secretary.
    ``(b) Demonstration Project.--Using funds made available under this 
title, the Secretary shall conduct a demonstration project in each of 
fiscal years 1995 through 1997 for the purpose of demonstrating methods 
of assisting isolated small businesses to access small business 
services provided by Federal, State, and local governments.
    ``(c) Establishment of Centers.--In conducting the demonstration 
project under this section, the Secretary shall establish 3 business 
outreach centers. At least 1 of the centers shall be located in a rural 
area.
    ``(d) Duties of Centers.--Each business outreach center established 
under this section shall--
            ``(1) provide a one-stop clearinghouse to assist isolated 
        small businesses in accessing small business services provided 
        by Federal, State, and local governments; and
            ``(2) improve efficiency in the delivery of such services.
    ``(e) Services To Be Provided.--Each business outreach center 
established under this section shall provide each of the following 
services:
            ``(1) Outreach to isolated small businesses.
            ``(2) Assessment of the need of isolated small businesses 
        for assistance services.
            ``(3) Referral of isolated small businesses to small 
        business assistance agencies.
            ``(4) Preparation of materials required by isolated small 
        businesses for participation in small business assistance 
        programs.
            ``(5) Case management to ensure follow-up and quality 
        control of business services.
            ``(6) Coordination of networking among isolated small 
        businesses.
            ``(7) Quality control of small business assistance 
        services.''.

SEC. 10. OFFICE OF STRATEGIC ECONOMIC DEVELOPMENT PLANNING AND POLICY.

    Title III of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3151-3153) is amended by adding at the end the following new 
section:

``SEC. 305. OFFICE OF STRATEGIC ECONOMIC DEVELOPMENT PLANNING AND 
              POLICY.

    ``(a) Establishment.--The Secretary shall establish in the Economic 
Development Administration an Office of Strategic Economic Development 
Planning and Policy (referred to in this section as the `Office').
    ``(b) Director.--The Office shall be headed by a Director, who 
shall be appointed by the Secretary and who shall report to the 
Assistant Secretary for Economic Development.
    ``(c) Duties.--The duties of the Director are as follows:
            ``(1) Research, evaluation, and demonstration projects.--
        The Director shall support research, evaluation, and 
        demonstration projects to study and assess best practices in 
        economic development and to examine trends and changes in 
        economic conditions that affect regional development. The 
        Director shall conduct a study of innovative economic 
        development financing tools, including loan guarantees, rural 
        development investment zones, and other measures, that may be 
        employed to further economic development of States, regions, 
        and localities.
            ``(2) Policy development.--The Director shall develop and 
        submit to the Secretary recommendations on both short- and 
        long-term policies regarding economic development issues and 
        programs, to help foster the diffusion of innovative, best 
        practices in economic development throughout the Department of 
        Commerce.
            ``(3) Information and coordination.--The Director shall 
        establish procedures to ensure that the Economic Development 
        Administration assumes a central role in developing and 
        promoting means of greater coordination among States, regions, 
        and local communities in the design and implementation of 
        Federal economic development programs, and to foster 
        coordination among Federal economic development programs, to 
        reduce duplication and fragmentation of Federal economic 
        development efforts.
    ``(d) Federal Coordinating Council for Economic Development.--
            ``(1) In general.--There is established a Federal 
        Coordinating Council for Economic Development (referred to in 
        this subsection as the `Council').
            ``(2) Composition of the council.--
                    ``(A) In general.--The Council shall be composed of 
                representatives from Federal agencies, appointed by the 
                heads of the agencies, involved in matters that affect 
                regional economic development. The Secretary shall 
                determine the Federal agencies that are involved in 
                matters that affect regional economic development.
                    ``(B) Vacancies.--Any vacancy in the Council shall 
                not affect the powers of the Council, but shall be 
                filled in the same manner as the original appointment.
            ``(3) Duties.--The Council shall assist the Secretary in 
        providing a unifying framework for economic development efforts 
        and shall develop a governmentwide strategic plan for economic 
        development. The Council shall work to improve coordination of 
        Federal economic development efforts to eliminate duplication 
        and to direct Federal resources to improve economic conditions.
            ``(4) Travel expenses.--The members of the Council shall 
        not receive compensation for service on the Council but shall 
        be allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from the homes or regular places of business 
        of the members in the performance of services for the Council.
            ``(5) Facilities, supplies, and personnel.--
                    ``(A) In general.--Upon the request of the Council, 
                the Secretary shall provide to the Council any 
                facilities, supplies, and personnel necessary for the 
                Council to carry out the responsibilities of the 
                Council under this subsection.
                    ``(B) Details.--In the case of a detail of a 
                Federal Government employee under paragraph (1), the 
                employee may be detailed to the Council without 
                reimbursement. The detail shall be without interruption 
                or loss of civil service status or privilege.
            ``(6) Hearings.--The Council may hold such hearings, sit 
        and act at such times and places, take such testimony, and 
        receive such evidence as the Council considers advisable to 
        carry out this subsection.
            ``(7) Information from federal agencies.--The Council may 
        secure directly from any Federal department or agency such 
        information as the Council considers necessary to carry out 
        this subsection. Upon request of the Council, the head of such 
        department or agency shall furnish such information to the 
        Council.
            ``(8)  Postal services.--The Council may use the United 
        States mails in the same manner and under the same conditions 
        as other departments and agencies of the Federal Government.
            ``(9) Termination.--The Council shall terminate 1 year 
        after the date of the establishment of the Council.''.

SEC. 11. OFFICE OF ECONOMIC DEVELOPMENT INFORMATION.

    Title III of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3151-3153) (as amended by section 10) is further amended by 
adding at the end the following new section:

``SEC. 306. OFFICE OF ECONOMIC DEVELOPMENT INFORMATION.

    ``(a) Establishment.--The Secretary shall establish an Office of 
Economic Development Information (referred to in this section as the 
`Office') within the Office of Strategic Economic Development Planning 
and Policy.
    ``(b) Responsibilities.--The Office shall--
            ``(1) serve as a central information clearinghouse on 
        matters relating to economic development, economic adjustment, 
        disaster recovery, industrial retention, and defense 
        reinvestment programs and activities of the Federal and State 
        governments, including political subdivisions of the States; 
        and
            ``(2) help potential and actual applicants for economic 
        development, economic adjustment, disaster recovery, industrial 
        retention, and defense reinvestment assistance under Federal, 
        State, and local laws in locating and applying for such 
        assistance, including financial and technical assistance.
    ``(c) Information Data Bases.--
            ``(1) Uses.--The Office shall develop information data 
        bases for use by Federal departments and agencies, State and 
        local governmental agencies, public and private entities, and 
        individuals to assist such agencies, entities, and individuals 
        in the process of identifying and applying for assistance and 
        resources under economic development, economic adjustment, 
        disaster recovery, industrial retention, and defense 
        reinvestment programs and activities of the Federal, State, and 
        local governments.
            ``(2) Specific kinds of information required to be 
        included.--The data bases shall include each of the following 
        kinds of information:
                    ``(A) A comprehensive compilation of all relevant 
                information concerning available economic development, 
                economic adjustment, disaster recovery, industrial 
                retention, and defense reinvestment programs of the 
                Federal Government, including key contact personnel, 
                descriptions of the application process, eligibility 
                requirements and criteria, selection and followup 
                procedures, and other such relevant information.
                    ``(B) A compilation of major State and local 
                governmental economic development, economic adjustment, 
                disaster recovery, industrial retention, and defense 
                reinvestment assistance programs, including lists of 
                appropriate offices, officers, and contact personnel 
                connected with, or involved in, such programs.
                    ``(C) A compilation of relevant and available 
                economic data and trends, including information about 
                the national, regional, and local impacts of trade 
                agreements, defense spending and downsizing, 
                technological change, and other sources of substantial 
                economic dislocation.
                    ``(D) A compilation of case studies and best 
                practices in economic development, adjustment, and 
                reinvestment.
                    ``(E) A compilation of technology utilization 
                programs, assistance, and resources.
                    ``(F) A compilation of published works (books, 
                reports, articles, videos, and tapes), and selected 
                texts of such works, related to all facets of economic 
                development, economic adjustment, and defense 
                reinvestment.
                    ``(G) A compilation of information on case studies 
                on early warning and intervention efforts.
            ``(3) Points of public access.--
                    ``(A) In general.--The Office shall establish 
                several means to ensure easy access by the public and 
                others to such data bases, and to ensure that the data 
                bases be as accessible, user-friendly, culturally 
                neutral, and affordable as possible.
                    ``(B) Means of access.--Access to the data services 
                of the Office shall include each of the following 
                means:
                            ``(i) A toll-free nationwide telephone 
                        number to provide direct phone access to the 
                        public.
                            ``(ii) On-line electronic access through 
                        existing computer network services and publicly 
                        available computer data base access facilities, 
                        such as at repository libraries and by direct 
                        call-in via modem.
                            ``(iii) Printed manuals and orientation 
                        materials.
                            ``(iv) Periodic orientation workshops 
                        available to the public.
                            ``(v) On-call information specialists to 
                        address special problems requiring person-to-
                        person assistance.
    ``(d) Interagency Coordination.--The Secretary shall enter into 
such agreements and understandings as may be necessary with other 
Federal departments and agencies to coordinate the accomplishment of 
the objectives of this section.''.

SEC. 12. AUTHORIZATION OF APPROPRIATIONS FOR TECHNICAL ASSISTANCE, 
              RESEARCH, AND INFORMATION.

    Title III of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3151-3153) (as amended by section 11) is further amended by 
adding at the end the following new section:

``SEC. 307. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$50,000,000 for each of fiscal years 1995 through 1997. Such sums shall 
remain available until expended.''.

SEC. 13. REDEVELOPMENT AREAS.

    Section 401 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3161) is amended to read as follows:

``SEC. 401. AREA ELIGIBILITY.

    ``(a) Certification.--An applicant seeking assistance under title I 
or II to undertake a project for an area shall certify, as part of an 
application for such assistance, that the area on the date of 
submission of such application meets 1 or more of the following 
criteria:
            ``(1) The per capita income of the area is 80 percent or 
        less of the per capita income of the United States.
            ``(2) The average rate of unemployment in the area 
        (seasonally adjusted), as determined by the Secretary of Labor 
        for the most recent 24-month period for which statistics are 
        available, minus the national average rate of unemployment 
        (seasonally adjusted), as so determined, is equal to or exceeds 
        1 percent.
            ``(3) The average rate of unemployment in the area 
        (seasonally adjusted), as determined by the Secretary of Labor 
        for the most recent 12-month period for which statistics are 
        available, minus the national average rate of unemployment 
        (seasonally adjusted), as so determined, is equal to or exceeds 
        2 percent.
            ``(4) The area has experienced or is about to experience a 
        sudden economic dislocation resulting in job loss that is 
        significant both in terms of the number of jobs eliminated and 
        the effect on the rate of unemployment in the area (if 
        information on such rate is available), as such rate is 
        determined by the Secretary of Labor.
            ``(5) The population growth rate of the United States, as 
        determined by the Secretary of Commerce for an appropriate 
        period, minus the population growth rate of the area, as so 
        determined, is equal to or exceeds 3 percent.
            ``(6) The area has experienced a decline in total 
        employment that is equal to or exceeds 2 percent over the most 
        recent 5-year period for which statistics are available, as 
        such employment is determined by the Secretary of Labor, acting 
        through the Commissioner of Labor Statistics.
            ``(7) The area is a community or neighborhood (defined 
        without regard to political or other subdivisions or 
        boundaries) that the Secretary determines has 1 or more of the 
        following conditions:
                    ``(A) A large concentration of low-income persons.
                    ``(B) A rural or urban area having substantial 
                outmigration or substantial economic deterioration and 
                unemployment.
                    ``(C) Substantial unemployment.
    ``(b) Documentation.--
            ``(1) Data and statistics.--A certification made under 
        subsection (a) shall be supported by Federal data, if 
        available, and in other cases by data available through the 
        appropriate State government. The applicant shall use the most 
        recent statistics available to support the certification.
            ``(2) Acceptance of data.--The Secretary shall accept the 
        data unless the Secretary determines that the data are 
        inaccurate.
    ``(c) Special Rule.--With respect to a redevelopment area described 
in subsection (a)(7)--
            ``(1) the project to be carried out in the area shall not 
        be subject to section 101(a)(1)(A);
            ``(2) the area shall not be subject to section 
        101(a)(1)(C); and
            ``(3) the area shall not be considered to be a 
        redevelopment area for purposes of section 403(a)(1)(B).
    ``(d) Prior Designation.--Any designation of a redevelopment area 
for the purposes of this Act that was made before the date of enactment 
of the Economic Development Reauthorization Act of 1994 shall not be 
effective after such date.
    ``(e) Definition.--As used in this Act, the term `redevelopment 
area' means an area that is the subject of a certification that is--
            ``(1) described in subsection (a); and
            ``(2) submitted by an applicant as part of an application 
        for assistance--
                    ``(A) that is described in subsection (a); and
                    ``(B) for which the applicant obtains the approval 
                of the Secretary.''.

SEC. 14. ANNUAL REVIEW.

    (a) In General.--Section 402 of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3162) is amended to read as follows:

``SEC. 402. OVERALL ECONOMIC DEVELOPMENT PLAN AND INVESTMENT STRATEGY.

    ``(a) Overall Economic Development Plan and Investment Strategy.--
The Secretary may provide assistance under title I or II to an 
applicant for a project to be undertaken in an area only if the 
applicant has prepared and submitted to the Secretary, and obtained 
approval of, an overall economic development plan or an investment 
strategy. Such an overall economic development plan or investment 
strategy shall--
            ``(1) identify the economic development problems to be 
        addressed using such assistance;
            ``(2) identify past, present, and projected further 
        economic development investments in such area and public and 
        private participants and sources of funding for such 
        investments; and
            ``(3) set forth a strategy for addressing the economic 
        development problems identified pursuant to paragraph (1) and 
        describe how the strategy will solve such problems.
    ``(b) Application Requirements.--In submitting an application for 
assistance under title I or II, an applicant shall describe how the 
proposed project implements the plan or strategy, provide estimates of 
costs and timetables for completion for the project, and provide a 
summary of public and private resources expected to be available for 
the project.
    ``(c) Existing Plans and Investment Strategies.--To the maximum 
extent practicable, the Secretary shall approve under subsection (a) 
overall economic development plans, and overall economic development 
programs, that were approved by the Secretary under this Act before the 
date of enactment of the Economic Development Reauthorization Act of 
1994 and that substantially meet the requirements of this section.
    ``(d) Definition.--As used in this Act, the term `economic 
development plan' includes--
            ``(1) a plan or program described in subsection (c) and 
        submitted for approval under subsection (a); and
            ``(2) an investment strategy submitted for approval under 
        subsection (a) in lieu of such a plan.''.
    (b) Conforming Amendments.--
            (1) Trade act of 1974.--Section 273(c)(2) of the Trade Act 
        of 1974 (19 U.S.C. 2373(c)(2)) is amended--
                    (A) by striking ``overall economic development 
                program'' and inserting ``overall economic development 
                plan or investment strategy''; and
                    (B) by striking ``section 202(b)(10)'' and 
                inserting ``section 402''.
            (2) Community economic development act of 1981.--Section 
        626(b)(1) of the Community Economic Development Act of 1981 (42 
        U.S.C. 9815(b)(1)) is amended--
                    (A) by striking ``Publc'' and inserting ``Public'';
                    (B) by striking ``overall economic development 
                program'' and inserting ``overall economic development 
                plan or investment strategy''; and
                    (C) by striking ``section 202(b)(10)'' and 
                inserting ``section 402''.

SEC. 15. ECONOMIC DEVELOPMENT DISTRICTS.

    (a) Relationship to Overall Economic Development Plans.--Section 
403 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 
3171) is amended--
            (1) in subsections (a)(1)(C), (a)(1)(D), (a)(2)(A), 
        (a)(3)(A), (a)(4)(B), (e), and (i) by striking ``overall 
        economic development program'' and inserting ``overall economic 
        development plan'';
            (2) in subsection (a)(1)(D), by striking ``program'' the 
        second place the term appears and inserting ``plan''; and
            (3) in subsections (b) and (b)(2)(B), by striking ``overall 
        economic development programs'' and inserting ``overall 
        economic development plans''.
    (b) Relationship to Redevelopment Area.--Section 403(a)(4) of such 
Act is amended by striking ``(designated under section 401)''.
    (c) Economic Development District Defined.--Section 403(d) of such 
Act is amended by adding at the end the following new sentence: ``Such 
term includes any economic development district designated by the 
Secretary under this section before the date of enactment of the 
Economic Development Reauthorization Act of 1994, unless the Secretary 
terminates the designation.''.
    (d) Funding.--Section 403 of such Act is amended--
            (1) by striking subsection (g) and inserting the following 
        new subsection:
    ``(g) Amounts authorized to be appropriated under other sections of 
this Act shall be available for purposes of carrying out paragraphs (3) 
and (4) of subsection (a).'';
            (2) by striking subsection (h); and
            (3) by redesignating subsections (i) and (j) as subsections 
        (h) and (i), respectively.

SEC. 16. EQUITY BETWEEN RURAL AND URBAN AREAS.

    Title IV of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3161 et seq.) is amended by adding at the end the following 
new part:

             ``PART E--EQUITY BETWEEN RURAL AND URBAN AREAS

``SEC. 406. ALLOCATIONS BASED ON THE LEVEL OF ECONOMIC DISTRESS OF AN 
              AREA.

    ``Not later than 6 months after the date of enactment of the 
Economic Development Reauthorization Act of 1994, the Secretary shall 
issue and implement regulations containing criteria and procedures to 
prioritize allocations of Federal assistance made under this Act, so 
that, notwithstanding any other provision of this Act, the level of 
economic distress of an area, not a preference for a geographic area or 
a specific type of economic distress, is the primary factor considered 
by the Secretary in determining whether the area receives an allocation 
of Federal assistance under this Act.''.

SEC. 17. APPLICATIONS FOR ASSISTANCE.

    (a) Expedited Processing.--Title VI of the Public Works and 
Economic Development Act of 1965 (42 U.S.C. 3201-3204) is amended by 
adding at the end the following new section:

``SEC. 605. EXPEDITED PROCESSING OF APPLICATIONS.

    ``(a) Guidelines.--Not later than 60 days after the date of 
enactment of this section, the Assistant Secretary for Economic 
Development shall--
            ``(1) develop and publish in the Federal Register 
        guidelines that establish procedures to expedite the processing 
        of applications for assistance under this Act; and
            ``(2) transmit to the Committee on Public Works and 
        Transportation of the House of Representatives and the 
        Committee on Environment and Public Works of the Senate a 
        report containing such guidelines.
    ``(b) Contents.--Guidelines to be developed and published under 
subsection (a) shall, at a minimum, provide for--
            ``(1) increased reliance on self-certification by 
        applicants for such assistance to establish compliance with 
        other Federal laws;
            ``(2) greater use of uniform application forms and 
        procedures;
            ``(3) delegation of decisionmaking authority to regional 
        offices of the Economic Development Administration; and
            ``(4) reduction in the time and number of reviews conducted 
        by offices of the Department of Commerce other than the 
        Economic Development Administration.''.
    (b) Uniform Application Form.--Title VI of such Act (as amended by 
subsection (a)) is further amended by adding at the end the following 
new section:

``SEC. 606. UNIFORM APPLICATION FORM.

    ``(a) Development.--The Secretary shall, in cooperation with the 
heads of appropriate Federal departments and agencies, develop a 
general, simplified application form for grant assistance under this 
Act that may be used by all Federal departments and agencies that 
provide grant assistance.
    ``(b) Report.--Not later than 180 days after the date of enactment 
of this section, the Secretary shall transmit to Congress a report on 
use of the form developed pursuant to subsection (a) by Federal 
departments and agencies.''.

SEC. 18. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

    Title VI of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3201-3204) (as amended by subsections (a) and (b) of section 
17) is further amended by adding at the end the following new section:

``SEC. 607. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

    ``(a) In General.--At least once every 2 years, the Secretary shall 
conduct an evaluation of each university center receiving assistance 
under title III (referred to in this section as a `university center') 
and economic development district receiving grant assistance under this 
Act to assess the performance and contribution toward job creation of 
the recipient.
    ``(b) Criteria.--
            ``(1) Establishment.--The Secretary shall establish 
        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 contribution of the center to 
        providing technical assistance, conducting applied research, 
        and disseminating results of the activities of the center.
            ``(3) Criteria for economic development districts.--The 
        criteria for evaluation of an economic development district 
        shall, at a minimum, provide for an assessment of management 
        standards, financial accountability, and program performance.
    ``(c) Peer Review.--In conducting an evaluation of a university 
center under subsection (a), the Secretary shall provide for the 
participation in the evaluation of at least 1 other university center 
on a cost-reimbursement basis.''.

SEC. 19. TRANSFER OF FUNDS.

    Section 708 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3218) is amended by adding at the end the following new 
subsection:
    ``(d) Notwithstanding any other provision of law, the Secretary may 
accept such transfers of funds from other departments and agencies of 
the Federal Government as the Secretary determines to be appropriate 
and use such funds to carry out objectives of this Act, if the 
Secretary uses the funds to carry out objectives for which (and in 
accordance with the terms under which) the funds are specifically 
authorized and appropriated. Not more than 5 percent of such funds may 
be transferred to the account relating to salaries and expenses of the 
Economic Development Administration.''.

SEC. 20. EXTENSION OF BENEFITS.

    Section 715 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3225) is amended by striking ``such areas as may be 
designated as `redevelopment areas' or `economic development centers' 
under the authority of section 401 or 403 of this Act:'' and inserting 
``redevelopment areas and such areas as may be designated as `economic 
development centers' under section 403:''.

SEC. 21. SUPERVISION OF REGIONAL COUNSELS.

    Title VII of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3211-3226) is amended by adding at the end the following new 
section:

``SEC. 717. SUPERVISION OF REGIONAL COUNSELS.

    ``The Secretary shall take such actions as may be necessary to 
ensure that individuals serving as Regional Counsels of the Economic 
Development Administration report directly to their respective Regional 
Directors, except that the General Counsel shall have authority to make 
determinations relating to the technical legal ability of the 
individuals.''.

SEC. 22. PURPOSE.

    The first sentence of section 901 of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3241) is amended by striking ``It is 
the purpose of this title'' and inserting ``The purposes of title I and 
of this title are''.

SEC. 23. DEFINITION OF ELIGIBLE RECIPIENT.

    Section 902 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3242) is amended to read as follows:

``SEC. 902. DEFINITION.

    ``As used in this title, the term `eligible recipient' means a 
redevelopment area, an economic development district, an Indian tribe, 
a State, a city or other political subdivision of a State, a consortium 
of such political subdivisions, a public or private nonprofit 
organization, or a public or private nonprofit association.''.

SEC. 24. BASE CLOSINGS AND REALIGNMENTS.

    Section 903 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3243) is amended--
            (1) in the matter following subparagraph (B) of subsection 
        (a)(1), by striking ``unemployment compensation (in accordance 
        with subsection (d) of this section), rent supplements, 
        mortgage payment assistance, research,'' and inserting 
        ``administrative expenses, industrial retention,''; and
            (2) by adding at the end the following new subsection:
    ``(e)(1) In any case in which the Secretary determines that a need 
exists for assistance under subsection (a) due to the closure or 
realignment of a military installation, or for an industrial, a 
community, or a workforce adjustment due to a reduction in amounts made 
available under or termination of a defense contract, the Secretary may 
make such assistance available to an eligible recipient for a project 
to be carried out on the military installation, for a project to be 
carried out in a community adversely affected by the closure or 
realignment, or for defense conversion activities.
    ``(2) Notwithstanding any other provision of law, the Secretary may 
provide to an eligible recipient any assistance available under this 
title for a project to be carried out on a military installation that 
is closed or scheduled for closure or realignment, or for defense 
conversion activities, without requiring that the eligible recipient 
have title to the property on which the installation is located or the 
activities will be carried out, or a leasehold interest in the 
property, for any specified term.''.

SEC. 25. OUTREACH TO COMMUNITIES ADVERSELY AFFECTED BY CLOSURES AND 
              REALIGNMENTS OF MILITARY INSTALLATIONS.

    Title IX of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3241-3245) is amended--
            (1) by redesignating section 905 as section 909; and
            (2) by inserting after section 904 the following new 
        section:

``SEC. 905. OUTREACH TO COMMUNITIES ADVERSELY AFFECTED BY CLOSURES AND 
              REALIGNMENTS OF MILITARY INSTALLATIONS.

    ``(a) Designation of Agency Representatives.--The Assistant 
Secretary for Economic Development shall designate for each State in 
which communities are adversely affected by closures and realignments 
of military installations, an individual to serve as a representative 
of the Economic Development Administration. Such individual may be the 
State Economic Development Agency Representative or another qualified 
individual.
    ``(b) Responsibilities.--Individuals appointed as agency 
representatives under subsection (a) shall provide outreach and 
technical assistance, to communities adversely affected by closures and 
realignments of military installations, on obtaining assistance from 
the Economic Development Administration.''.

SEC. 26. TREATMENT OF REVOLVING LOAN FUNDS.

    Title IX of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3241-3245) (as amended by section 25) is further amended by 
inserting after section 905 the following new section:

``SEC. 906. TREATMENT OF REVOLVING LOAN FUNDS.

    ``(a) In General.--An amount made available through a grant made 
under this title that is used by an eligible recipient to establish a 
revolving loan fund shall not be treated, except as provided by 
subsection (b), as an amount derived from Federal funds for the 
purposes of any Federal law after such amount is loaned from the fund 
to a borrower and repaid to the fund.
    ``(b) Exceptions.--An amount described in subsection (a) that is 
loaned from a revolving loan fund to a borrower and repaid to the 
fund--
            ``(1) may be used only for a project that is consistent 
        with the purposes of this title; and
            ``(2) shall be subject to the financial management, 
        accounting, reporting, and auditing requirements that were 
        originally applicable to such amount on the date on which the 
        Secretary made the amount available to the recipient through a 
        grant described in subsection (a).
    ``(c) Regulations.--Not later than 30 days after the date of 
enactment of this section, the Secretary shall issue regulations to 
carry out subsection (a).
    ``(d) Public Review and Comment.--Before issuing any final 
guidelines or administrative manuals governing the operation of 
revolving loan funds established using amounts from grants made under 
this title, the Secretary shall provide reasonable opportunity for 
public review of and comment on such guidelines and administrative 
manuals.''.

SEC. 27. SALE OF FINANCIAL INSTRUMENTS IN REVOLVING LOAN FUNDS.

    Title IX of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3241-3245) (as amended by section 26) is further amended by 
inserting after section 906 the following new section:

``SEC. 907. SALE OF FINANCIAL INSTRUMENTS IN REVOLVING LOAN FUNDS.

    ``Any loan, loan guarantee, or other financial instrument in the 
portfolio of a revolving loan fund described in section 906 may be 
sold, at the discretion of the grant recipient that established the 
fund, to a third party. The proceeds of the sale--
            ``(1) shall be deposited in the fund and only used for 
        projects that are consistent with the purposes of this title; 
        and
            ``(2) shall be subject to the financial management, 
        accounting, reporting, and auditing requirements that were 
        originally applicable to the financial instrument on the date 
        on which the financial instrument was entered into.''.

SEC. 28. COMPETITIVE COMMUNITIES PILOT PROGRAM.

    Title IX of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3241-3245) (as amended by section 27) is further amended by 
inserting after section 907 the following new section:

``SEC. 908. COMPETITIVE COMMUNITIES PILOT PROGRAM.

    ``(a) Definition.--As used in this section, the term `eligible 
intermediary recipient' means--
            ``(1) a redevelopment area or an economic development 
        district established under title IV;
            ``(2) an Indian tribe;
            ``(3) a public-private entity sponsored by a State or other 
        political subdivision of a State, or by a community division of 
        a State;
            ``(4) a community development corporation;
            ``(5) a public or private not-for-profit corporation; and
            ``(6) a consortium of recipients described in any of 
        paragraphs (1) through (5);
that demonstrates the financial expertise, ability, and legal authority 
to provide the investment for a transaction, as well as the ability to 
develop and implement an overall economic development plan as provided 
in section 402.
    ``(b) Program.--The Secretary may establish a competitive 
communities pilot program and, in carrying out the program, may make 
grants, loans, or loan guarantees directly to or for the benefit of any 
eligible recipients (including eligible intermediary recipients) for 
the purpose of investing in identified business transactions that will 
create opportunities for long-term employment in economically 
distressed communities.
    ``(c) Applications.--To be eligible to receive financial assistance 
under this section, a person or an entity shall submit an application 
to the Secretary at such time, in such manner, and containing such 
information as the Secretary may require.
    ``(d) Panel of Experts.--The Secretary shall establish a panel of 
experts to review applications submitted to the Secretary under 
subsection (c). The panel shall consist of 7 members as follows:
            ``(1) The Secretary (or the designee of the Secretary).
            ``(2) The Assistant Secretary for Economic Development.
            ``(3) 1 Regional Director of the Economic Development 
        Administration, appointed by the Secretary.
            ``(4) 1 State Economic Development Representative, 
        appointed by the Secretary.
            ``(5) 3 private citizens with economic development and 
        business expertise, appointed by the Secretary.
    ``(e) Criteria for Selection.--The Secretary shall select 
recipients to receive financial assistance under this section, based on 
the quality of the applications submitted and the extent to which the 
applications describe activities to encompass investment initiatives 
that promote public and private sector partnerships to advance the 
competitiveness of the economy of local communities through the 
creation of long-term sustainable employment opportunities.
    ``(f) Deadlines.--
            ``(1) Action on applications.--In the case of each 
        application submitted under subsection (c) that is received by 
        a deadline established and published in the Federal Register, 
        the Secretary shall approve or disapprove the application on or 
        before the 60th day after the deadline.
            ``(2) Use of assistance.--Any agreement relating to an 
        amount of financial assistance under this section that is 
        entered into by the Secretary and an eligible recipient under 
        the program shall require that the eligible recipient provide 
        assistance to businesses using the amount on or before the 90th 
        day after the date of receipt of such amount or shall return 
        any remaining portion of such amount to the Secretary for 
        subsequent awards under the program.''.

SEC. 29. SPECIAL ECONOMIC DEVELOPMENT AND ADJUSTMENT ASSISTANCE.

    Section 909 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3245) (as redesignated by section 25(1)) is amended to 
read as follows:

``SEC. 909. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this title $50,000,000 for each of fiscal years 1995 through 1997. 
Such sums shall remain available until expended.
    ``(b) Additional Amounts.--In addition to the appropriations 
authorized by subsection (a), there are authorized to be appropriated 
to carry out this title $120,000,000 for fiscal year 1995, and such 
sums as may be necessary for each of fiscal years 1996 and 1997, to 
provide assistance for activities related to closures and realignments 
of military installations and for defense conversion activities and to 
provide assistance in the case of a natural disaster. Such sums shall 
remain available until expended.
    ``(c) Set-Aside for Competitive Communities Pilot Program.--Of the 
amounts appropriated under subsections (a) and (b), not more than 
$40,000,000 shall be available for fiscal year 1995 to carry out 
section 908, of which not more than $15,000,000 shall be available from 
amounts appropriated under subsection (a) and not more than $25,000,000 
shall be available from amounts appropriated under subsection (b).''.

SEC. 30. COMPLIANCE WITH BUY AMERICAN ACT.

    None of the funds made available under this title, or any amendment 
made by this title, may be expended to acquire articles, materials, or 
supplies, or to procure services, in violation of the applicable 
provisions of sections 2 through 4 of title III of the Act of March 3, 
1933 (commonly known as the ``Buy American Act'') (41 U.S.C. 10a- 10b-
1).

SEC. 31. REGULATORY RELIEF.

    The Assistant Secretary for Economic Development, acting on a 
petition from an entity impacted adversely by a Federal regulation on a 
matter of economic development described in the Public Works and 
Economic Development Act of 1965 (42 U.S.C. 3121 et seq.), shall notify 
the officer who is the head of the department or agency that issued and 
administers the regulation and suggest that the officer waive 
regulations that interfere with economic development. Nothing in this 
section shall be construed to preempt the authority of the head of a 
department or agency to waive regulations. Nothing in this section 
shall be construed to affect the ability of the Assistant Secretary for 
Economic Development to carry out the duties of the Assistant 
Secretary, as otherwise provided by law.

            Passed the House of Representatives October 7, 1994.

            Attest:






                                                                 Clerk.






103d CONGRESS

  2d Session

                               H. R. 5243

_______________________________________________________________________

                                 AN ACT

   To amend the Public Works and Economic Development Act of 1965 to 
   reauthorize economic development programs, and for other purposes.