[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2145 Reported in House (RH)]





                                                 Union Calendar No. 419

104th CONGRESS

  2d Session

                               H. R. 2145

                      [Report No. 104-693, Part I]

_______________________________________________________________________

                                 A BILL

 To reauthorize and make reforms to programs authorized by the Public 
Works and Economic Development Act of 1965 and the Appalachian Regional 
                        Development Act of 1965.

_______________________________________________________________________

                           September 6, 1996

 The Committee on Banking and Financial Services discharged; committed 
   to the Committee of the Whole House on the State of the Union and 
                         ordered to be printed





                                                 Union Calendar No. 419
104th CONGRESS
  2d Session
                                H. R. 2145

                      [Report No. 104-693, Part I]

 To reauthorize and make reforms to programs authorized by the Public 
Works and Economic Development Act of 1965 and the Appalachian Regional 
                        Development Act of 1965.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 31, 1995

Mr. Gilchrest (for himself, Mr. Shuster, Mr. Mineta, Mr. Wise, and Mr. 
   Wicker) introduced the following bill; which was referred to the 
Committee on Transportation and Infrastructure, and in addition to the 
    Committee on Banking and Financial Services, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

                             July 18, 1996

    Reported from the Committee on Transportation and Infrastructure

                             July 18, 1996

 Referral to the Committee on Banking and Financial Services extended 
          for a period ending not later than September 6, 1996

                           September 6, 1996

                      Additional sponsor: Mr. Ney

                           September 6, 1996

 The Committee on Banking and Financial Services discharged; committed 
   to the Committee of the Whole House on the State of the Union and 
                         ordered to be printed

_______________________________________________________________________

                                 A BILL


 
 To reauthorize and make reforms to programs authorized by the Public 
Works and Economic Development Act of 1965 and the Appalachian Regional 
                        Development Act of 1965.

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

SECTION 1. SHORT TITLE; EFFECTIVE DATE.

    (a) Short Title.--This Act may be cited as the ``Economic 
Development Partnership Act of 1995''.
    (b) Effective Date.--Except as otherwise expressly provided, this 
Act and the amendments made by this Act shall take effect on October 1, 
1995.

             TITLE I--PUBLIC WORKS AND ECONOMIC DEVELOPMENT

SEC. 101. REAUTHORIZATION OF PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT 
              OF 1965.

    The Public Works and Economic Development Act of 1965 (40 U.S.C. 
3131 et seq.) is amended by striking all after the first section and 
inserting the following:

``SEC. 2. FINDINGS AND DECLARATION.

    ``(a) Findings.--Congress finds that--
            ``(1) the maintenance of the national economy at a high 
        level is vital to the best interests of the United States, but 
        that some of our regions, counties, and communities are 
        suffering substantial and persistent unemployment and 
        underemployment that cause hardship to many individuals and 
        their families, and waste invaluable human resources;
            ``(2) to overcome this problem the Federal Government, in 
        cooperation with the States, should help areas and regions of 
        substantial and persistent unemployment and underemployment to 
        take effective steps in planning and financing their public 
        works and economic development;
            ``(3) Federal financial assistance, including grants for 
        public works and development facilities to communities, 
        industries, enterprises, and individuals in areas needing 
        development should enable such areas to help themselves achieve 
        lasting improvement and enhance the domestic prosperity by the 
        establishment of stable and diversified local economies and 
        improved local conditions, if such assistance is preceded by 
        and consistent with sound, long-range economic planning; and
            ``(4) under the provisions of this Act, new employment 
        opportunities should be created by developing and expanding new 
        and existing public works and other facilities and resources 
        rather than by merely transferring jobs from one area of the 
        United States to another.
    ``(b) Declaration.--Congress declares that, in furtherance of 
maintaining the national economy at a high level--
            ``(1) the assistance authorized by this Act should be made 
        available to both rural and urban areas;
            ``(2) such assistance should be made available for planning 
        for economic development prior to the actual occurrences of 
        economic distress in order to avoid such condition; and
            ``(3) such assistance should be used for long-term economic 
        rehabilitation in areas where long-term economic deterioration 
        has occurred or is taking place.

          ``TITLE I--ECONOMIC DEVELOPMENT REGIONAL COMMISSIONS

``SEC. 101. ESTABLISHMENT OF REGIONAL COMMISSIONS.

    ``(a) Establishment.--There is established for each region 
established by section 105 an Economic Development Regional Commission 
(hereinafter in this Act referred to as a `Regional Commission').
    ``(b) Membership.--
            ``(1) In general.--Each Regional Commission shall be 
        composed of 1 Federal member and 1 State member from each 
        participating State in the region represented by the Regional 
        Commission.
            ``(2) Federal cochairperson.--The Federal member of each 
        Regional Commission shall be the Secretary of Commerce 
        (hereinafter in this Act referred to as the `Secretary'). The 
        Secretary shall serve as the Federal Cochairperson of each 
        Regional Commission.
            ``(3) State members.--
                    ``(A) In general.--Each State member of a Regional 
                Commission shall be the chief executive officer of the 
                State. The State members of a Regional Commission shall 
                elect a Cochairperson from among such State members for 
                a term of not less than 1 year.
                    ``(B) Alternates.--Each State member of a Regional 
                Commission may have a single alternate, appointed by 
                the Chief Executive Officer from among members of the 
                Chief Executive Officer's cabinet or the Chief 
                Executive Officer's personal staff. An alternate shall 
                vote in the event of the absence, death, disability, 
                removal, or resignation of the State representative for 
                which he or she is an alternate. A State alternate 
                shall not be counted toward the establishment of a 
                quorum of the Commission in any instance in which a 
                quorum of the State members is required to be present.
    ``(c) Decisionmaking.--
            ``(1) Voting.--Decisions by a Regional Commission shall 
        require an affirmative vote of the Secretary (or the 
        Secretary's designee) and of the majority of the State members.
            ``(2) Quorum.--No decision of a Regional Commission 
        involving Commission policy, developing investment strategies, 
        or allocating funds among States may be made without the 
        Secretary (or the Secretary's designee) and a quorum of the 
        State members present. For purposes of this Act, the Secretary 
        (or the Secretary's designee) and a majority of the State 
        members shall constitute a quorum.

``SEC. 102. COOPERATION OF FEDERAL AGENCIES.

    ``Each Federal department and agency, in accordance with applicable 
laws and within the limits of available funds, shall cooperate with 
each Regional Commission in order to assist the Regional Commission in 
carrying out the functions of the Regional Commission.

``SEC. 103. ADMINISTRATIVE EXPENSES.

    ``(a) Payment by States.--Fifty percent of the administrative 
expenses of a Regional Commission (other than the expenses of the 
Secretary) shall be paid by the States in the region represented by the 
Regional Commission and the remaining 50 percent of such expenses shall 
be paid by the Federal Government. The expenses of the Secretary and 
the Secretary's staff shall be paid solely by the Federal Government.
    ``(b) Determination of State Share.--The share of the 
administrative expenses to be paid by each State shall be determined by 
the Regional Commission. The Secretary shall not participate or vote in 
such determination.
    ``(c) Delinquent Payments.--No assistance authorized by this Act 
shall be furnished to any State or to any political subdivision or 
resident of a State, nor shall the State member of a Regional 
Commission participate or vote in any determination by the Regional 
Commission, while such State is delinquent in the payment of such 
State's share of the administrative expenses of the Regional 
Commission.

``SEC. 104. ADMINISTRATIVE POWERS.

    ``To carry out its duties under this Act, consistent with 
regulations issued by the Secretary, a Regional Commission may take any 
of the following actions:
            ``(1) Adopt, amend, and repeal bylaws and rules governing 
        the conduct of the Regional Commission's business and the 
        performance of its functions.
            ``(2) Appoint and fix the pay of an executive director and 
        such other personnel as may be necessary to enable the Regional 
        Commission to carry out its functions; except that the 
        compensation for any individual so appointed shall not exceed 
        the rate of basic pay for level V of the Executive Schedule and 
        no member, officer, or employee of the Regional Commission, 
other than the Secretary, employees of the Secretary, and any Federal 
employees detailed under paragraph (3), shall be deemed a Federal 
employee for any purpose.
            ``(3) Request the head of a Federal department or agency to 
        detail to temporary duty with the Regional Commission such 
        personnel within the administrative jurisdiction of such head 
        as the Regional Commission may need for carrying out its 
        functions, and each such detail shall be without loss of 
        seniority, pay, or other employee status.
            ``(4) Arrange for the services of personnel from any State 
        or local government or any subdivision or agency thereof, or 
        any intergovernmental agency.
            ``(5) Make arrangements, including contracts, with any 
        participating State government for inclusion in a suitable 
        retirement and employee benefits system of such of its 
        personnel as may not be eligible for, or continue in, another 
        governmental retirement or employee benefit system, or 
        otherwise provide for such coverage of its personnel. The 
        Director of the Office of Personnel Management is authorized to 
        contract with a Regional Commission for continued coverage of 
        any Regional Commission employee who, on a date in the 6-month 
        period ending on the date of Regional Commission employment, 
        was a Federal employee, in the retirement program and other 
employee benefit programs of the Federal Government.
            ``(6) Accept, use, and dispose of gifts or donations of 
        services or property, real, personal, or mixed, tangible or 
        intangible.
            ``(7) Subject to the requirements of the Federal Property 
        and Administrative Services Act of 1949, enter into and perform 
        such contracts, leases, cooperative agreements, or other 
        transactions as may be necessary in carrying out the Regional 
        Commission's functions and on such terms as the Regional 
        Commission may deem appropriate, with any department, agency, 
        or instrumentality of the United States, or with any person, 
        firm, association, or corporation.
            ``(8) Take such other actions and incur such other expenses 
        as may be necessary and appropriate.

``SEC. 105. ESTABLISHMENT OF REGIONS.

    ``(a) In General.--For the purposes of this Act, there are 
established 8 regions of the United States as follows:
            ``(1) Region i.--Region I shall be composed of the States 
        of Alabama, Florida, Georgia, Kentucky, Mississippi, North 
        Carolina, South Carolina, and Tennessee.
            ``(2) Region ii.--Region II shall be composed of the States 
        of Arkansas, Louisiana, New Mexico, Oklahoma, and Texas.
            ``(3) Region iii.--Region III shall be composed of the 
        States of Illinois, Indiana, Michigan, Minnesota, Ohio, and 
        Wisconsin.
            ``(4) Region iv.--Region IV shall be composed of the States 
        of Colorado, Iowa, Kansas, Missouri, Montana, Nebraska, North 
        Dakota, South Dakota, Utah, and Wyoming.
            ``(5) Region v.--Region V shall be composed of the State of 
        California.
            ``(6) Region vi.--Region VI shall be composed of the States 
        of Alaska, Arizona, Hawaii, Idaho, Nevada, Oregon, and 
        Washington and American Samoa, Guam, the Marshall Islands, 
        Micronesia, and the Northern Mariana Islands.
            ``(7) Region vii.--Region VII shall be composed of the 
        States of Delaware, Maryland, New Jersey, New York, 
        Pennsylvania, Virginia, and West Virginia and the District of 
        Columbia.
            ``(8) Region viii.--Region VIII shall be composed of the 
        States of Connecticut, Maine, Massachusetts, New Hampshire, 
        Rhode Island, and Vermont and Puerto Rico and the Virgin 
        Islands.
    ``(b) Participation Not Required.--No State shall be required to 
participate in any program under this Act.

     ``TITLE II--GRANTS FOR PUBLIC WORKS AND DEVELOPMENT FACILITIES

``SEC. 201. DIRECT AND SUPPLEMENTARY GRANTS.

    ``(a) In General.--Upon the application of any eligible recipient, 
a Regional Commission may--
            ``(1) make direct grants for the acquisition or development 
        of land and improvements for public works, public service, or 
        development facility usage, and the acquisition, design and 
        engineering, construction, rehabilitation, alteration, 
        expansion, or improvement of such facilities, including related 
        machinery and equipment, within an area described in section 
        502(a), if the Regional Commission finds that--
                    ``(A) the project for which financial assistance is 
                sought will directly or indirectly--
                            ``(i) tend to improve the opportunities, in 
                        the area where such project is or will be 
                        located, for the successful establishment or 
                        expansion of industrial or commercial plants or 
                        facilities;
                            ``(ii) otherwise assist in the creation of 
                        additional long-term employment opportunities 
                        for such area; or
                            ``(iii) primarily benefit the long-term 
                        unemployed and members of low-income families;
                    ``(B) the project for which a grant is requested 
                will fulfill a pressing need of the area, or part 
                thereof, in which it is, or will be, located;
                    ``(C) the area for which a project is to be 
                undertaken has an approved investment strategy as 
                provided by section 503 and such project is consistent 
                with such strategy; and
                    ``(D) in the case of an area described in section 
                502(a)(4), the project to be undertaken will provide 
                immediate useful work to unemployed and underemployed 
                persons in that area; and
            ``(2) make supplementary grants in order to enable the 
        States and other entities within areas described in section 
        502(a) to take maximum advantage of designated Federal grant-
        in-aid programs (as defined in subsection (c)(4)), direct 
        grants-in-aid authorized under this section, and Federal grant-
        in-aid programs authorized by the Watershed Protection and 
        Flood Prevention Act (68 Stat. 666), and the 11 watersheds 
        authorized by the Flood Control Act of December 22, 1944 (58 
        Stat. 887), for which they are eligible but for which, because 
        of their economic situation, they cannot supply the required 
        matching share.
    ``(b) Cost Sharing.--Subject to subsection (c), the amount of any 
direct grant under this subsection for any project shall not exceed 50 
percent of the cost of such project.
    ``(c) Requirements Applicable to Supplementary Grants.--
            ``(1) Amount of supplementary grants.--
                    ``(A) In general.--Except as provided by 
                subparagraph (B), the amount of any supplementary grant 
                under this section for any project shall not exceed the 
                applicable percentage established by regulations 
                promulgated by the Secretary, but in no event shall the 
                non-Federal share of the aggregate cost of any such 
                project (including assumptions of debt) be less than 20 
                percent of such cost.
                    ``(B) Exceptions.--Notwithstanding subparagraph 
                (A)--
                            ``(i) in the case of a grant to an Indian 
                        tribe, a Regional Commission may reduce the 
                        non-Federal share below the percentage 
                        specified in subparagraph (A) or may waive the 
                        non-Federal share;
                            ``(ii) in the case of any State or a 
                        political subdivision of the State which the 
                        Regional Commission determines has exhausted 
                        its effective taxing and borrowing capacity, 
                        the Regional Commission shall reduce the non-
                        Federal share below the percentage specified in 
                        subparagraph (A) or shall waive the non-Federal 
                        share in the case of such a grant for a project 
                        in an area described in section 502(a)(4); and
                            ``(iii) in case of any community 
                        development corporation which the Regional 
                        Commission determines has exhausted its 
                        effective borrowing capacity, the Regional 
                        Commission may reduce the non-Federal share 
                        below the percentage specified in subparagraph 
                        (A) or waive the non-Federal share in the case 
                        of such a grant for a project in an area 
                        described in section 502(a)(4).
            ``(2) Form of supplementary grants.--Supplementary grants 
        shall be made by a Regional Commission, in accordance with such 
        regulations as the Secretary may prescribe, by increasing the 
        amounts of direct grants authorized under this section or by 
        the payment of funds appropriated under this Act to the heads 
        of the departments, agencies, and instrumentalities of the 
        Federal Government responsible for the administration of the 
        applicable Federal programs.
            ``(3) Federal share limitations specified in other laws.--
        Notwithstanding any requirement as to the amount or sources of 
        non-Federal funds that may otherwise be applicable to the 
        Federal program involved, funds provided under this subsection 
        shall be used for the sole purpose of increasing the Federal 
        contribution to specific projects in areas described in section 
        502(a) under such programs above the fixed maximum portion of 
the cost of such project otherwise authorized by the applicable law.
            ``(4) Designated federal grant-in-aid programs defined.--In 
        this subsection, the term `designated Federal grant-in-aid 
        programs' means such existing or future Federal grant-in-aid 
        programs assisting in the construction or equipping of 
        facilities as the Secretary may, in furtherance of the purposes 
        of this Act, designate as eligible for allocation of funds 
        under this section.
            ``(5) Consideration of relative need in determining 
        amount.--In determining the amount of any supplementary grant 
        available to any project under this section, a Regional 
        Commission shall take into consideration the relative needs of 
        the area and the nature of the projects to be assisted.
    ``(d) Regulations.--The Secretary shall prescribe rules, 
regulations, and procedures to carry out this section which will assure 
that adequate consideration is given to the relative needs of eligible 
areas. In prescribing such rules, regulations, and procedures the 
Secretary shall consider among other relevant factors--
            ``(1) the severity of the rates of unemployment in the 
        eligible areas and the duration of such unemployment; and
            ``(2) the income levels of families and the extent of 
        underemployment in eligible areas.
    ``(e) Review and Comment Upon Projects by Local Governmental 
Authorities.--The Secretary shall prescribe regulations which will 
assure that appropriate local governmental authorities have been given 
a reasonable opportunity to review and comment upon proposed projects 
under this section.

``SEC. 202. CONSTRUCTION COST INCREASES.

    ``In any case where a grant (including a supplemental grant) has 
been made by a Regional Commission under this title for a project and 
after such grant has been made but before completion of the project, 
the cost of such project based upon the designs and specifications 
which were the basis of the grant has been increased because of 
increases in costs, the amount of such grant may be increased by an 
amount equal to the percentage increase, as determined by the Regional 
Commission, in such costs, but in no event shall the percentage of the 
Federal share of such project exceed that originally provided for in 
such grant.

``SEC. 203. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.

    ``In any case where a grant (including a supplemental grant) has 
been made by a Regional Commission under this title for a project, and 
after such grant has been made but before completion of the project, 
the cost of such project based upon the designs and specifications 
which were the basis of the grant has decreased because of decreases in 
costs, such underrun funds may be used to improve the project either 
directly or indirectly as determined by the Regional Commission.

``SEC. 204. CHANGED PROJECT CIRCUMSTANCES.

    ``In any case where a grant (including a supplemental grant) has 
been made by a Regional Commission under this title for a project, and 
after such grant has been made but before completion of the project, 
the purpose or scope of such project based upon the designs and 
specifications which were the basis of the grant has changed, the 
Regional Commission may approve the use of grant funds on such changed 
project if the Regional Commission determines that such changed project 
meets the requirements of this title and that such changes are 
necessary to enhance economic development in the area.

  ``TITLE III--SPECIAL ECONOMIC DEVELOPMENT AND ADJUSTMENT ASSISTANCE

``SEC. 301. STATEMENT OF PURPOSE.

    ``The purpose of this title to provide special economic development 
and adjustment assistance programs to help State and local areas meet 
special needs arising from actual or threatened severe unemployment 
arising from economic dislocation, including unemployment arising from 
actions of the Federal Government and from compliance with 
environmental requirements which remove economic activities from a 
locality, and economic adjustment problems resulting from severe 
changes in economic conditions (including long-term economic 
deterioration), and to encourage cooperative intergovernmental action 
to prevent or solve economic adjustment problems. Nothing in this title 
is intended to replace the efforts of the economic adjustment program 
of the Department of Defense.

``SEC. 302. GRANTS BY REGIONAL COMMISSIONS.

    ``(a) In General.--A Regional Commission is authorized to make 
grants directly to any eligible recipient in an area which the Regional 
Commission determines, in accordance with criteria to be established by 
the Secretary by regulation--
            ``(1) has experienced, or may reasonably be foreseen to be 
        about to experience, a special need to meet an expected rise in 
        unemployment, or other economic adjustment problems (including 
        those caused by any action or decision of the Federal 
        Government); or
            ``(2) has demonstrated long-term economic deterioration.
    ``(b) Purposes.--Amounts from grants under subsection (a) shall be 
used by an eligible recipient to carry out or develop an investment 
strategy which--
            ``(1) meets the requirements of section 503; and
            ``(2) is approved by the Regional Commission.
    ``(c) Types of Assistance.--In carrying out an investment strategy 
using amounts from grants under subsection (a), an eligible recipient 
may provide assistance for any of the following:
            ``(1) Public facilities.
            ``(2) Public services.
            ``(3) Business development.
            ``(4) Planning.
            ``(5) Research and technical assistance.
            ``(6) Administrative expenses.
            ``(7) Training.
            ``(8) Relocation of individuals and businesses.
            ``(9) Other assistance which demonstrably furthers the 
        economic adjustment objectives of this title.
    ``(d) Direct Expenditure or Redistribution by Recipient.--Amounts 
from grants under subsection (a) may be used in direct expenditures by 
the eligible recipient or through redistribution by the eligible 
recipient to public and private entities in grants, loans, loan 
guarantees, payments to reduce interest on loan guarantees, or other 
appropriate assistance, but no grant shall be made by an eligible 
recipient to a private profit-making entity.
    ``(e) Coordination.--A Regional Commission to the extent 
practicable shall coordinate the activities relating to the 
requirements for investment strategies and making grants and loans 
under this title with other Federal programs, States, economic 
development districts, and other appropriate planning and development 
organizations.
    ``(f) Base Closings and Realignments.--
            ``(1) Location of projects.--In any case in which a 
        Regional Commission determines a need for assistance under 
        subsection (a) due to the closure or realignment of a military 
        installation, the Regional Commission may make such assistance 
        available for projects to be carried out on the military 
        installation and for projects to be carried out in communities 
        adversely affected by the closure or realignment.
            ``(2) Interest in property.--Notwithstanding any other 
        provision of law, a Regional Commission may provide to an 
        eligible recipient any assistance available under this Act for 
        a project to be carried out on a military installation that is 
        closed or scheduled for closure or realignment without 
        requiring that the eligible recipient have title to the 
        property or a leasehold interest in the property for any 
        specified term.

``SEC. 303. ANNUAL REPORTS BY RECIPIENT.

    ``Each eligible recipient which receives assistance under this 
title from a Regional Commission shall annually during the period such 
assistance continue to make a full and complete report to the Regional 
Commission, in such manner as the Regional Commission shall prescribe, 
and such report shall contain an evaluation of the effectiveness of the 
economic assistance provided under this title in meeting the need it 
was designed to alleviate and the purposes of this title.

``SEC. 304. SALE OF FINANCIAL INSTRUMENTS IN REVOLVING LOAN FUNDS.

    ``Any loan, loan guarantee, equity, or other financial instrument 
in the portfolio of a revolving loan fund, including any financial 
instrument made available using amounts from a grant made before the 
effective date of the Economic Development Partnership Act of 1995, may 
be sold, encumbered, or pledged at the discretion of the grantee of the 
Fund, to a third party provided that the net proceeds of the 
transaction--
            ``(1) shall be deposited into the Fund and may only be used 
        for activities which are consistent with the purposes of this 
        title; and
            ``(2) shall be subject to the financial management, 
        accounting, reporting, and auditing standards which were 
        originally applicable to the grant.

``SEC. 305. TREATMENT OF REVOLVING LOAN FUNDS.

    ``(a) In General.--Amounts from grants made under this title which 
are used by an eligible recipient to establish a revolving loan fund 
shall not be treated, except as provided by subsection (b), as amounts 
derived from Federal funds for the purposes of any Federal law after 
such amounts are loaned from the fund to a borrower and repaid to the 
fund.
    ``(b) Exceptions.--Amounts described in subsection (a) which are 
loaned from a revolving loan fund to a borrower and repaid to the 
fund--
            ``(1) may only be used for activities which are consistent 
        with the purposes of this title; and
            ``(2) shall be subject to the financial management, 
        accounting, reporting, and auditing standards which were 
        originally applicable to the grant.
    ``(c) Regulations.--Not later than 30 days after the effective date 
of the Economic Development Partnership Act of 1995, 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 under this 
title, the Secretary shall provide reasonable opportunity for public 
review of and comment on such guidelines and administrative manuals.
    ``(e) Applicability to Past Grants.--The requirements of this 
section applicable to amounts from grants made under this title shall 
also apply to amounts from grants made, before the effective date of 
the Economic Development Partnership Act of 1995, under title I of this 
Act, as in effect on the day before such effective date.

      ``TITLE IV--TECHNICAL ASSISTANCE, RESEARCH, AND INFORMATION

``SEC. 401. TECHNICAL ASSISTANCE.

    ``(a) In General.--In carrying out its duties under this Act, a 
Regional Commission may provide technical assistance which would be 
useful in alleviating or preventing conditions of excessive 
unemployment or underemployment to areas which the Regional Commission 
finds have substantial need for such assistance. Such assistance shall 
include project planning and feasibility studies, management and 
operational assistance, establishment of business outreach centers, and 
studies evaluating the needs of, and development potentialities for, 
economic growth of such areas.
    ``(b) Procedures and Terms.--
            ``(1) Manner of providing assistance.--Assistance may be 
        provided by a Regional Commission through--
                    ``(A) members of the Regional Commission's staff;
                    ``(B) the payment of funds authorized for this 
                section to departments or agencies of the Federal 
                Government;
                    ``(C) the employment of private individuals, 
                partnerships, firms, corporations, or suitable 
                institutions under contracts entered into for such 
                purposes; or
                    ``(D) grants-in-aid to appropriate public or 
                private nonprofit State, area, district, or local 
                organizations.
            ``(2) Repayment terms.--A Regional Commission, in its 
        discretion, may require the repayment of assistance provided 
        under this subsection and prescribe the terms and conditions of 
        such repayment.
    ``(c) Grants Covering Administrative Expenses.--
            ``(1) In general.--A Regional Commission may make grants to 
        defray not to exceed 75 percent of the administrative expenses 
        of organizations which the Regional Commission determines to be 
        qualified to receive grants-in-aid under subsections (a) and 
        (b); except that in the case of a grant under this subsection 
        to an Indian tribe, the Regional Commission is authorized to 
        defray up to 100 percent of such expenses.
            ``(2) Determination of non-federal share.--In determining 
        the amount of the non-Federal share of such costs or expenses, 
        a Regional Commission shall give due consideration to all 
        contributions both in cash and in kind, fairly evaluated, 
        including contributions of space, equipment, and services.
            ``(3) Use of grants with planning grants.--Where 
        practicable, grants-in-aid authorized under this subsection 
        shall be used in conjunction with other available planning 
        grants to assure adequate and effective planning and economical 
        use of funds.
    ``(d) Availability of Technical Information; Federal Procurement.--
A Regional Commission shall aid areas described in section 502(a) and 
other areas by furnishing to interested individuals, communities, 
industries, and enterprises within such areas any assistance, technical 
information, market research, or other forms of assistance, 
information, or advice which would be useful in alleviating or 
preventing conditions of excessive unemployment or underemployment 
within such areas. The Regional Commission may furnish the procurement 
divisions of the various departments, agencies, and other 
instrumentalities of the Federal Government with a list containing the 
names and addresses of business firms which are located in areas 
described in section 502(a) and which are desirous of obtaining 
Government contracts for the furnishing of supplies or services, and 
designating the supplies and services such firms are engaged in 
providing.

``SEC. 402. ECONOMIC DEVELOPMENT PLANNING.

    ``(a) Direct Grants.--
            ``(1) In general.--A Regional Commission may, upon 
        application of any State, or city, or other political 
        subdivision of a State, or sub-State planning and development 
        organization (including an area described in section 502(a) or 
        an economic development district), make direct grants to such 
        State, city, or other political subdivision, or organization to 
        pay up to 80 percent of the cost for economic development 
        planning.
            ``(2) Planning projects specifically included.--The 
        planning for cities, other political subdivisions, and sub-
        State planning and development organizations (including areas 
        described in section 502(a) and economic development districts) 
        assisted under this section shall include systematic efforts to 
        reduce unemployment and increase incomes.
            ``(3) Planning process.--The planning shall be a continuous 
        process involving public officials and private citizens in 
        analyzing local economies, defining development goals, 
        determining project opportunities, and formulating and 
        implementing a development program.
            ``(4) Coordination of assistance under section 401(c).--The 
        assistance available under this section may be provided in 
        addition to assistance available under section 401(c) but shall 
        not supplant such assistance.
    ``(b) Compliance With Review Procedure.--The planning assistance 
authorized under this title shall be used in conjunction with any other 
available Federal planning assistance to assure adequate and effective 
planning and economical use of funds.

            ``TITLE V--ELIGIBILITY AND INVESTMENT STRATEGIES

                         ``PART A--ELIGIBILITY

``SEC. 501. ELIGIBLE RECIPIENT DEFINED.

    ``In this Act, the term `eligible recipient' means an area 
described in section 502(a), an economic development district 
designated under section 510, an Indian tribe, a State, a city or other 
political subdivision of a State, or a consortium of such political 
subdivisions, or a public or private nonprofit organization or 
association acting in cooperation with officials of such political 
subdivisions.

``SEC. 502. AREA ELIGIBILITY.

    ``(a) Certification.--In order to be eligible for assistance under 
title II, an applicant seeking assistance to undertake a project in an 
area shall certify, as part of an application for such assistance, that 
the area on the date of submission of such application meets 1 or more 
of the following criteria:
            ``(1) The area has a per capita income of 80 percent or 
        less of the national average.
            ``(2) The area has an unemployment rate 1 percent above the 
        national average percentage for the most recent 24-month period 
        for which statistics are available.
            ``(3) The area has experienced or is about to experience a 
        sudden economic dislocation resulting in job loss that is 
        significant both in terms of the number of jobs eliminated and 
        the effect upon the employment rate of the area.
            ``(4) The area is a community or neighborhood (defined 
        without regard to political or other subdivisions or 
        boundaries) which the Secretary determines has one or more of 
        the following conditions:
                    ``(A) A large concentration of low-income persons.
                    ``(B) Rural areas having substantial out-migration.
                    ``(C) Substantial unemployment.
    ``(b) Documentation.--A certification made under subsection (a) 
shall be supported by Federal data, when available, and in other cases 
by data available through the State government. Such documentation 
shall be accepted by a Regional Commission unless it is determined to 
be inaccurate. The most recent statistics available shall be used.
    ``(c) Special Rule.--An area which a Regional Commission determines 
has 1 or more of the conditions described in subsection (a)(4)--
            ``(1) shall not be subject to the requirements of 
        subparagraphs (A) and (C) of section 201(a)(1); and
            ``(2) shall not be eligible to meet the requirements of 
        section 510(a)(1)(B).
    ``(d) Prior Designations.--Any designation of a redevelopment area 
made before the effective date of the Economic Development Partnership 
Act of 1995 shall not be effective after such effective date.

``SEC. 503. INVESTMENT STRATEGY.

    ``A Regional Commission may provide assistance under titles II and 
III to an applicant for a project only if the applicant submits to the 
Regional Commission, as part of an application for such assistance, and 
the Regional Commission approves an investment strategy which--
            ``(1) identifies the economic development problems to be 
        addressed using such assistance;
            ``(2) identifies past, present, and projected future 
        economic development investments in the area receiving such 
        assistance and public and private participants and sources of 
        funding for such investments;
            ``(3) sets forth a strategy for addressing the economic 
        problems identified pursuant to paragraph (1) and describes how 
        the strategy will solve such problems;
            ``(4) provides a description of the project necessary to 
        implement the strategy, estimates of costs, and timetables; and
            ``(5) provides a summary of public and private resources 
        expected to be available for the project.

``SEC. 504. APPROVAL OF PROJECTS.

    ``Only applications for grants or other assistance under this Act 
for specific projects shall be approved which are certified by the 
State member of the Regional Commission representing such applicant and 
determined by the Secretary--
            ``(1) to be included in a State investment strategy 
        approved by the Regional Commission;
            ``(2) to have adequate assurance that the project will be 
        properly administered, operated, and maintained; and
            ``(3) to otherwise meet the requirements for assistance 
        under this Act.

                ``PART B--ECONOMIC DEVELOPMENT DISTRICTS

``SEC. 510. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS AND ECONOMIC 
              DEVELOPMENT CENTERS.

    ``(a) In General.--In order that economic development projects of 
broader geographic significance may be planned and carried out, a 
Regional Commission may--
            ``(1) designate appropriate `economic development 
        districts' within the United States with the concurrence of the 
        States in which such districts will be wholly or partially 
        located, if--
                    ``(A) the proposed district is of sufficient size 
                or population, and contains sufficient resources, to 
                foster economic development on a scale involving more 
                than a single area described in section 502(a);
                    ``(B) the proposed district contains at least 1 
                area described in section 502(a);
                    ``(C) the proposed district contains 1 or more 
                areas described in section 502(a) or economic 
                development centers identified in an approved district 
                investment strategy as having sufficient size and 
                potential to foster the economic growth activities 
                necessary to alleviate the distress of the areas 
                described in section 502(a) within the district; and
                    ``(D) the proposed district has a district 
                investment strategy which includes adequate land use 
                and transportation planning and contains a specific 
                program for district cooperation, self-help, and public 
                investment and is approved by the State or States 
                affected and by the Regional Commission;
            ``(2) designate as `economic development centers', in 
        accordance with such regulations as the Secretary shall 
        prescribe, such areas as the Regional Commission may deem 
        appropriate, if--
                    ``(A) the proposed center has been identified and 
                included in an approved district investment strategy 
                and recommended by the State or States affected for 
                such special designation;
                    ``(B) the proposed center is geographically and 
                economically so related to the district that its 
                economic growth may reasonably be expected to 
                contribute significantly to the alleviation of distress 
                in the areas described in section 502(a) of the 
                district; and
                    ``(C) the proposed center does not have a 
                population in excess of 250,000 according to the most 
                recent Federal census.
            ``(3) provide financial assistance in accordance with the 
        criteria of this Act, except as may be herein otherwise 
        provided, for projects in economic development centers 
        designated under subsection (a)(2), if--
                    ``(A) the project will further the objectives of 
                the investment strategy of the district in which it is 
                to be located:
                    ``(B) the project will enhance the economic growth 
                potential of the district or result in additional long-
                term employment opportunities commensurate with the 
                amount of Federal financial assistance requested; and
                    ``(C) the amount of Federal financial assistance 
                requested is reasonably related to the size, 
                population, and economic needs of the district;
            ``(4) subject to the 20 percent non-Federal share required 
        for any project by section 201(c), increase the amount of grant 
        assistance authorized by section 201 for projects within areas 
        described in section 502(a), by an amount not to exceed 10 
        percent of the aggregate cost of any such project, in 
        accordance with such regulations as the Secretary shall 
        prescribe if--
                    ``(A) the area described in section 502(a) is 
                situated within a designated economic development 
                district and is actively participating in the economic 
                development activities of the district; and
                    ``(B) the project is consistent with an approved 
                investment strategy.
    ``(b) Authorities.--In designating economic development districts 
and approving district investment strategies under subsection (a), a 
Regional Commission may, under regulations prescribed by the 
Secretary--
            ``(1) invite the several States to draw up proposed 
        district boundaries and to identify potential economic 
        development centers;
            ``(2) cooperate with the several States--
                    ``(A) in sponsoring and assisting district economic 
                planning and development groups; and
                    ``(B) in assisting such district groups to 
                formulate district investment strategies; and
            ``(3) encourage participation by appropriate local 
        governmental authorities in such economic development 
        districts.
    ``(c) Termination or Modification of Designations.--The Secretary 
shall by regulation prescribe standards for the termination or 
modification of economic development districts and economic development 
centers designated under the authority of this section.
    ``(d) Definitions.--In this Act, the following definitions apply:
            ``(1) Economic development district.--The term `economic 
        development district' refers to any area within the United 
        States composed of cooperating areas described in section 
        502(a) and, where appropriate, designated economic development 
        centers and neighboring counties or communities, which has been 
        designated by a Regional Commission as an economic development 
        district. Such term includes any economic development district 
        designated by the Secretary under section 403 of this Act, as 
        in effect on the day before the effective date of the Economic 
        Development Partnership Act of 1995.
            ``(2) Economic development center.--The term `economic 
        development center' refers to any area within the United States 
        which has been identified as an economic development center in 
        an approved investment strategy and which has been designated 
        by a Regional Commission as eligible for financial assistance 
        under this Act in accordance with the provisions of this 
        section.
            ``(3) Local government.--The term `local government' means 
        any city, county, town, parish, village, or other general-
        purpose political subdivision of a State.
    ``(e) Parts of Economic Development Districts Not Within Areas 
Described in Section 502(a).-- A Regional Commission is authorized to 
provide the financial assistance which is available to an area 
described in section 502(a) under this Act to those parts of an 
economic development district which are not within an area described in 
section 502(a), when such assistance will be of a substantial direct 
benefit to an area described in section 502(a) within such district. 
Such financial assistance shall be provided in the same manner and to 
the same extent as is provided in this Act for an area described in 
section 502(a); except that nothing in this subsection shall be 
construed to permit such parts to receive the increase in the amount of 
grant assistance authorized subsection (a)(4).

                       ``TITLE VI--ADMINISTRATION

                      ``PART A--GENERAL PROVISIONS

``SEC. 601. APPOINTMENT OF UNDER SECRETARY.

    ``(a) In General.--The Secretary shall carry out the Secretary's 
duties under this Act acting through an Under Secretary of Commerce for 
Economic Development to be appointed by the President by and with the 
advice and consent of the Senate .
    ``(b) Amendment to Title 5, U.S.C.--Section 5314 of title 5, United 
States Code, is amended by inserting `Under Secretary of Commerce for 
Economic Development,' after `Under Secretary of Commerce,'.

``SEC. 602. OFFICE OF ECONOMIC DEVELOPMENT.

    ``(a) Establishment.--The Secretary shall establish an Office of 
Economic Development (hereinafter in this section referred to as the 
`Office') within the Department of Commerce.
    ``(b) Functions.--The head of the Office shall be the Under 
Secretary of Commerce for Economic Development who shall assist the 
Secretary in carrying out the Secretary's duties under this Act, 
including the issuance of rules, regulations, and policies.
    ``(c) Clearinghouse.--It shall be a duty of the Under Secretary in 
administering the Office--
            ``(1) to serve as a central information clearinghouse on 
        matters relating to economic development, economic adjustment, 
        disaster recovery, and defense conversion programs and 
        activities of the Federal and State governments, including 
        political subdivisions of the States; and
            ``(2) to help potential and actual applicants for economic 
        development, economic adjustment, disaster recovery, and 
        defense conversion assistance under Federal, State, and local 
        laws in locating and applying for such assistance, including 
        financial and technical assistance.

``SEC. 603. CONSULTATION WITH OTHER PERSONS AND AGENCIES.

    ``(a) Consultation on Problems Relating to Employment.--The 
Secretary is authorized from time to time to call together and confer 
with any persons, including representatives of labor, management, 
agriculture, and government, who can assist in meeting the problems of 
area and regional unemployment or underemployment.
    ``(b) Consultation on Administration of Act.--The Secretary may 
make provisions for such consultation with interested departments and 
agencies as the Secretary may deem appropriate in the performance of 
the functions vested in the Secretary by this Act.

``SEC. 604. ADMINISTRATION, OPERATION, AND MAINTENANCE.

    ``No Federal assistance shall be approved under this Act unless the 
Secretary is satisfied that the project for which Federal assistance is 
granted will be properly and efficiently administered, operated, and 
maintained.

``SEC. 605. AUTHORITY TO ESTABLISH INDEPENDENT AGENCY IN EVENT 
              DEPARTMENT OF COMMERCE IS ABOLISHED.

    ``In the event that the Department of Commerce is abolished by a 
law enacted after the effective date of the Economic Development 
Partnership Act of 1995, the President is authorized to establish an 
independent agency to carry out the duties of the Secretary under this 
Act.

``SEC. 606. TREATMENT OF ECONOMIC DEVELOPMENT EMPLOYEES.

    ``In considering applications for employment at Regional 
Commissions or in the Office of Economic Development, preference shall 
be given to current Economic Development Administration employees.

      ``PART B--ABOLISHMENT OF ECONOMIC DEVELOPMENT ADMINISTRATION

``SEC. 610. ABOLISHMENT.

    ``The Economic Development Administration of the Department of 
Commerce is abolished.

``SEC. 611. CONCLUSION OF BUSINESS.

    ``The Secretary shall provide for the conclusion of any outstanding 
affairs of the Economic Development Administration, including matters 
affecting the disposition of personnel.

``SEC. 612. SAVINGS PROVISIONS.

    ``(a) Existing Rights, Duties, and Obligations Not Affected.--This 
part shall not be construed as affecting the validity of any right, 
duty, or obligation of the United States or any other person arising 
under or pursuant to any contract, loan, or other instrument or 
agreement which was in effect on the day before the effective date of 
this part.
    ``(b) Continuation of Suits.--No action or other proceeding 
commenced by or against any officer or employee of the Economic 
Development Administration shall abate by reason of the enactment of 
this part; except that the Secretary shall be substituted for such 
officer or employee as a party to any such action or proceeding.

``SEC. 613. AMENDMENT TO TITLE 5, U.S.C.

    ``Section 5316 of title 5, United States Code, is amended by 
striking `Administrator for Economic Development.'.

                       ``TITLE VII--MISCELLANEOUS

``SEC. 701. POWERS OF SECRETARY.

    ``(a) In General.--In performing the Secretary's duties under this 
Act, the Secretary is authorized to--
            ``(1) adopt, alter, and use a seal, which shall be 
        judicially noticed;
            ``(2) subject to the civil-service and classification laws, 
        select, employ, appoint, and fix the compensation of such 
        personnel as may be necessary to carry out the provisions of 
        this Act;
            ``(3) hold such hearings, sit and act at such times and 
        places, and take such testimony, as the Secretary may deem 
        advisable;
            ``(4) request directly from any executive department, 
        bureau, agency, board, commission, office, independent 
        establishment, or instrumentality information, suggestions, 
        estimates, and statistics needed to carry out the purposes of 
        this Act; and each department, bureau, agency, board, 
        commission, office, establishment, or instrumentality is 
authorized to furnish such information, suggestions, estimates, and 
statistics directly to the Secretary;
            ``(5) under regulations prescribed by the Secretary, assign 
        or sell at public or private sale, or otherwise dispose of for 
        cash or credit, in the Secretary's discretion and upon such 
        terms and conditions and for such consideration as the 
        Secretary determines to be reasonable, any evidence of debt, 
        contract, claim, personal property, or security assigned to or 
        held by the Secretary in connection with assistance extended 
        under this Act, and collect or compromise all obligations 
        assigned to or held by the Secretary in connection with such 
        assistance until such time as such obligations may be referred 
to the Attorney General for suit or collection;
            ``(6) deal with, complete, renovate, improve, modernize, 
        insure, rent, or sell for cash or credit, upon such terms and 
        conditions and for such consideration as the Secretary 
        determines to be reasonable, any real or personal property 
        conveyed to, or otherwise acquired by the Secretary in 
        connection with assistance extended under this Act;
            ``(7) pursue to final collection, by way of compromise or 
        other administrative action, prior to reference to the Attorney 
        General, all claims against third parties assigned to the 
        Secretary in connection with assistance extended this Act;
            ``(8) acquire, in any lawful manner and in accordance with 
        the requirements of the Federal Property and Administrative 
        Services Act of 1949, any property (real, personal, or mixed, 
        tangible or intangible), whenever necessary or appropriate to 
        the conduct of the activities authorized under this Act;
            ``(9) in addition to any powers, functions, privileges, and 
        immunities otherwise vested in the Secretary, take any action, 
        including the procurement of the services of attorneys by 
        contract, determined by the Secretary to be necessary or 
        desirable in making, purchasing, servicing, compromising, 
        modifying, liquidating, or otherwise administratively dealing 
        with assets held in connection with financial assistance 
        extended under this Act;
            ``(10) employ experts and consultants or organizations as 
        authorized by section 3109 of title 5, United States Code, 
        compensate individuals so employed at rates not in excess of 
        $100 per diem, including travel time, and allow them, while 
        away from their homes or regular places of business, travel 
        expenses (including per diem in lieu of subsistence) as 
        authorized by section 5703 of title 5, United States Code, for 
        persons in the Government service employed intermittently, 
        while so employed, except that contracts for such employment 
        may be renewed annually;
            ``(11) sue and be sued in any court of record of a State 
        having general jurisdiction or in any United States district 
        court, and jurisdiction is conferred upon such district court 
        to determine such controversies without regard to the amount in 
        controversy; but no attachment, injunction, garnishment, or 
        other similar process, mesne or final, shall be issued against 
        the Secretary or the Secretary's property;
            ``(12) make discretionary grants, pursuant to authorities 
        otherwise available to a Regional Commission under this Act and 
        without regard to the requirements of section 504, to implement 
        significant regional initiatives, to take advantage of special 
        development opportunities, or to respond to emergency economic 
        distress in the region from the funds withheld from 
        distribution to the Regional Commissions; except that the 
        aggregate amount of such discretionary grants in any fiscal 
        year may not exceed 10 percent of the amounts appropriated 
        under title VIII for such fiscal year; and
            ``(13) establish such rules, regulations, and procedures as 
        the Secretary considers appropriate in carrying out the 
        provisions of this Act.
    ``(b) Deficiency Judgments.--The authority under subsection (a)(7) 
to pursue claims shall include the authority to obtain deficiency 
judgments or otherwise in the case of mortgages assigned to the 
Secretary.
    ``(c) Inapplicability of Certain Other Requirements.--Section 3709 
of the Revised Statutes of the United States shall not apply to any 
contract of hazard insurance or to any purchase or contract for 
services or supplies on account of property obtained by the Secretary 
as a result of assistance extended under this Act if the premium for 
the insurance or the amount of the insurance does not exceed $1,000.
    ``(d) Powers of Conveyance and Execution.--The power to convey and 
to execute, in the name of the Secretary, deeds of conveyance, deeds of 
release, assignments and satisfactions of mortgages, and any other 
written instrument relating to real or personal property or any 
interest therein acquired by the Secretary pursuant to the provisions 
of this Act may be exercised by the Secretary, or by any officer or 
agent appointed by the Secretary for such purpose, without the 
execution of any express delegation of power or power of attorney.

``SEC. 702. ALLOCATION OF FUNDS.

    The Secretary shall establish a formula for the equitable 
allocation among the Regional Commissions of amounts appropriated to 
carry out this Act.

``SEC. 703. PERFORMANCE MEASURES.

    ``The Secretary shall establish performance measures for grants and 
other assistance provided under this Act. Such performance measures 
shall be used to evaluate project proposals and conduct evaluations of 
projects receiving such assistance.

``SEC. 704. MAINTENANCE OF STANDARDS.

    ``The Secretary shall continue to implement and enforce the 
provisions of section 712 of this Act, as in effect on the day before 
the effective date of the Economic Development Partnership Act of 1995.

``SEC. 705. TRANSFER OF FUNCTIONS.

    ``The functions, powers, duties, and authorities and the assets, 
funds, contracts, loans, liabilities, commitments, authorizations, 
allocations, and records which are vested in or authorized to be 
transferred to the Secretary of the Treasury under section 29(b) of the 
Area Redevelopment Act, and all functions, powers, duties, and 
authorities under section 29(c) of such Act are hereby vested in the 
Secretary.

``SEC. 706. DEFINITION OF STATE.

    ``In this Act, the terms `State', `States', and `United States' 
include the several States and each of the other political entities 
included in a region established by section 105.

``SEC. 707. ANNUAL REPORT TO CONGRESS.

    ``The Secretary shall transmit a comprehensive and detailed annual 
report to Congress of the Secretary's and each Regional Commission's 
operations under this Act for each fiscal year beginning with the 
fiscal year ending September 30, 1996. Such report shall be printed and 
shall be transmitted to Congress not later than April 1 of the year 
following the fiscal year with respect to which such report is made.

``SEC. 708. USE OF OTHER FACILITIES.

    ``(a) Delegation of Functions to Other Federal Departments and 
Agencies.--The Secretary may delegate to the heads of other departments 
and agencies of the Federal Government any of the Secretary's 
functions, powers, and duties under this Act as the Secretary may deem 
appropriate, and to authorize the redelegation of such functions, 
powers, and duties by the heads of such departments and agencies.
    ``(b) Department and Agency Execution of Delegated Authority.--
Departments and agencies of the Federal Government shall exercise their 
powers, duties, and functions in such manner as will assist in carrying 
out the objectives of this Act.
    ``(c) Transfer Between Departments.--Funds authorized to be 
appropriated under this Act may be transferred between departments and 
agencies of the Government, if such funds are used for the purposes for 
which they are specifically authorized and appropriated.
    ``(d) Funds Transferred From Other Departments and Agencies.--In 
order to carry out the objectives of this Act, the Secretary may accept 
transfers of funds from other departments and agencies of the Federal 
Government if the funds are used for the purposes for which (and in 
accordance with the terms under which) the funds are specifically 
authorized and appropriated. Such transferred funds shall remain 
available until expended, and may be transferred to and merged with the 
appropriations under the heading `salaries and expenses' by the 
Secretary to the extent necessary to administer the program.

``SEC. 709. PENALTIES.

    ``(a) False Statements; Security Overvaluation.--Whoever makes any 
statement knowing it to be false, or whoever willfully overvalues any 
security, for the purpose of obtaining for such person or for any 
applicant any financial assistance under this Act or any extension of 
such assistance by renewal, deferment or action, or otherwise, or the 
acceptance, release, or substitution of security for such assistance, 
or for the purpose of influencing in any way the action of the 
Secretary or a Regional Commission or for the purpose of obtaining 
money, property, or anything of value, under this Act, shall be fined 
under title 18, United States Code, imprisoned for not more than 5 
years, or both.
    ``(b) Embezzlement and Fraud-Related Crimes.--Whoever, being 
connected in any capacity with the Secretary or a Regional Commission, 
in the administration of this Act--
            ``(1) embezzles, abstracts, purloins, or willfully 
        misapplies any moneys, funds, securities, or other things of 
        value, whether belonging to such person or pledged or otherwise 
        entrusted to such person;
            ``(2) with intent to defraud the Secretary or a Regional 
        Commission or any other body politic or corporate, or any 
        individual, or to deceive any officer, auditor, or examiner, 
        makes any false entry in any book, report, or statement of or 
        to the Secretary or a Regional Commission, or without being 
        duly authorized draws any orders or issues, puts forth, or 
        assigns any note, debenture, bond, or other obligation, or 
        draft, bill of exchange, mortgage, judgment, or decree thereof;
            ``(3) with intent to defraud participates or shares in or 
        receives directly or indirectly any money, profit, property, or 
        benefit through any transaction, loan, grant, commission, 
        contract, or any other act of the Secretary or a Regional 
        Commission; or
            ``(4) gives any unauthorized information concerning any 
        future action of plan of the Secretary or a Regional Commission 
        which might affect the value of securities, or having such 
        knowledge invests or speculates, directly or indirectly, in the 
        securities or property of any company or corporation 
receiving loans, grants, or other assistance from the Secretary or a 
Regional Commission,
shall be fined under title 18, United States Code, imprisoned for not 
more than 5 years, or both.

``SEC. 710. EMPLOYMENT OF EXPEDITERS AND ADMINISTRATIVE EMPLOYEES.

    ``No financial assistance shall be extended by a Regional 
Commission under this Act to any business enterprise unless the owners, 
partners, or officers of such business enterprise--
            ``(1) certify to the Regional Commission the names of any 
        attorneys, agents, and other persons engaged by or on behalf of 
        such business enterprise for the purpose of expediting 
        applications made to the Regional Commission for assistance of 
        any sort, under this Act, and the fees paid or to be paid to 
        any such person; and
            ``(2) execute an agreement binding such business 
        enterprise, for a period of 2 years after such assistance is 
        rendered by the Regional Commission to such business 
        enterprise, to refrain from employing, tendering any office or 
        employment to, or retaining for professional services, any 
        person who, on the date such assistance or any part thereof was 
        rendered, or within the 1-year period ending on such date, 
        shall have served as an officer, attorney, agent, or employee, 
        occupying a position or engaging in activities which the 
        Regional Commission determines involves discretion with respect 
        to the granting of assistance under this Act.

``SEC. 711. PERSONAL FINANCIAL INTERESTS.

    ``(a) In General.--Except as permitted by subsection (b), no State 
member or alternate and no officer or employee of a Regional Commission 
shall participate personally and substantially as member, alternate, 
officer, or employee, through decision, approval, disapproval, 
recommendation, the rendering of advice, investigation, or otherwise, 
in any proceeding, application, request for a ruling or other 
determination, contract, claim, controversy, or other particular matter 
in which, to the individual's knowledge, the individual, the 
individual's spouse, minor child, partner, organization (other than a 
State or political subdivision thereof) in which the individual is 
serving as officer, director, trustee, partner, or employee, or any 
person or organization with whom the individual is serving as officer, 
director, trustee, partner, or employee, or any person or organization 
with whom the individual is negotiating or has any arrangement 
concerning prospective employment, has a financial interest. Any 
individual who shall violate the provisions of this subsection shall be 
fined under title 18, United States Code, imprisoned for not more than 
2 years, or both.
    ``(b) Exception.--Subsection (a) shall not apply if the State 
member, alternate, officer, or employee first advises the Regional 
Commission of the nature and circumstances of the proceeding, 
application, request for a ruling or other determination, contract, 
claim, controversy, or other particular matter and makes full 
disclosure of the financial interest and receives in advance a written 
determination made by the Regional Commission that the interest is not 
so substantial as to be deemed likely to affect the integrity of the 
services which the Regional Commission may expect from such State 
member, alternate, officer, or employee.
    ``(c) Salaries.--No State member or alternate of a Regional 
Commission shall receive any salary, or any contribution to or 
supplementation of salary for the individual's services on the Regional 
Commission from any source other than the State of the individual. No 
individual detailed to serve the Regional Commission under authority of 
section 104 shall receive any salary or any contribution to or 
supplementation of salary for the individual's services on the Regional 
Commission from any source other than the State, local, or 
intergovernmental department or agency from which he was detailed or 
from the Regional Commission. Any individual who shall violate the 
provisions of this subsection shall be fined under title 18, United 
States Code, imprisoned for not more than 1 year, or both.
    ``(d) Nonapplicability to Federal Officials.--Notwithstanding any 
other provision of this section, the Secretary (or the Secretary's 
designee on a Regional Commission) and any Federal officers or 
employees detailed to duty with a Regional Commission pursuant to 
section 104 shall not be subject to such provisions but shall remain 
subject to sections 202 through 209 of title 18, United States Code.
    ``(e) Authority To Rescind Certain Agreements.--A Regional 
Commission may, in the Regional Commission's discretion, declare void 
and rescind any agreement to extend financial assistance under this Act 
entered into by the Regional Commission in relation to which the 
Regional Commission finds that there has been a violation of subsection 
(a) or (c) of this section or any of the provisions of sections 202 
through 209 of title 18, United States Code.

``SEC. 712. MAINTENANCE OF RECORDS OF APPROVED APPLICATIONS FOR 
              FINANCIAL ASSISTANCE; PUBLIC INSPECTION.

    ``(a) Maintenance of Record Required.--The Secretary shall maintain 
as a permanent part of the records of the Department of Commerce a list 
of applications approved for financial assistance under this Act, which 
shall be kept available for public inspection during the regular 
business hours of the Department of Commerce.
    ``(b) Posting to List.--The following information shall be posted 
in such list as soon as each application is approved:
            ``(1) The name of the applicant and, in the case of 
        corporate applications, the names of the officers and directors 
        thereof.
            ``(2) The amount and duration of the financial assistance 
        for which application is made.
            ``(3) The purposes for which the proceeds of the financial 
        assistance are to be used.

``SEC. 713. RECORDS AND AUDIT.

    ``(a) Recordkeeping and Disclosure Requirements.--Each recipient of 
assistance under this Act shall keep such records as the Secretary 
shall prescribe, including records which fully disclose the amount and 
the disposition by such recipient of the proceeds of such assistance, 
the total cost of the project or undertaking in connection with which 
such assistance is given or used, and the amount and nature of that 
portion of the cost of the project or undertaking supplied by other 
sources, and such other records as will facilitate an effective audit.
    ``(b) Access to Books for Examination and Audit.--The Secretary and 
the Comptroller General of the United States, or any of their duly 
authorized representatives, shall have access for the purpose of audit 
and examination to any books, documents, papers, and records of the 
recipient that are pertinent to assistance received under this Act.

``SEC. 714. PROHIBITION AGAINST A STATUTORY CONSTRUCTION WHICH MIGHT 
              CAUSE DIMINUTION IN OTHER FEDERAL ASSISTANCE.

    ``All financial and technical assistance authorized under this Act 
shall be in addition to any Federal assistance previously authorized, 
and no provision of this Act shall be construed as authorizing or 
permitting any reduction or diminution in the proportional amount of 
Federal assistance to which any State or other entity eligible under 
this Act would otherwise be entitled under the provisions of any other 
Act.

``SEC. 715. ACCEPTANCE OF APPLICANTS' CERTIFICATIONS.

    ``A Regional Commission may accept, when deemed appropriate, the 
applicants' certifications to meet the requirements of this Act.

                         ``TITLE VIII--FUNDING

``SEC. 801. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this Act 
$340,000,000 per fiscal year for each of fiscal years 1996, 1997, 1998, 
1999, and 2000. Such sums shall remain available until expended.

``SEC. 802. DEFENSE CONVERSION ACTIVITIES.

    ``In addition to the appropriations authorized by section 801, 
there are authorized to be appropriated to carry out this Act such sums 
as may be necessary to provide assistance for defense conversion 
activities. Such funding may include pilot projects for privatization 
and economic development activities for closed or realigned military 
installations. Such sums shall remain available until expended.''.

               TITLE II--APPALACHIAN REGIONAL DEVELOPMENT

SEC. 201. AMENDMENT OF APPALACHIAN REGIONAL DEVELOPMENT ACT OF 1965.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Appalachian Regional 
Development Act of 1965 (40 U.S.C. App. 1 et seq.).

SEC. 202. FINDINGS AND PURPOSES.

    Section 2 (40 U.S.C. App. 2) is amended by adding at the end the 
following:
    ``(c) 1995 Findings and Purposes.--The Congress further finds and 
declares that, while substantial progress has been made in fulfilling 
many of the objectives of this Act, rapidly changing national and 
global economies over the past decade have created new problems and 
challenges for rural areas throughout the Nation and especially for the 
Appalachian region. It is, therefore, also the purpose of this Act to 
assist the region in providing the infrastructure necessary for 
economic and human resource development, in developing its industry, in 
building entrepreneurial communities, in generating a diversified 
regional economy, and in making its industrial and commercial resources 
more competitive in national and world markets. It is further the 
purpose of this Act to provide a framework for coordinating Federal, 
State, and local initiatives to respond to the economic competitive 
challenge through improving the skills of the region's workforce, 
adapting and applying new technologies for the region's businesses, and 
improving the access of the region's businesses to the technical and 
financial resources necessary to their development. Finally, it is the 
purpose of this Act to address the needs of severely and persistently 
distressed and underdeveloped areas of the region so as to provide a 
fairer opportunity for the people of the region to share the quality of 
life generally enjoyed by citizens across this Nation.''.

SEC. 203. MEETINGS.

    (a) Annual Meeting Requirement.--Section 101(a) (40 U.S.C. App. 
101(a)) is amended by adding at the end the following: ``The Commission 
shall conduct at least one meeting each year with the Federal 
Cochairman and at least a majority of the State members present.''.
    (b) Additional Meetings by Electronic Means.--Section 101 (40 
U.S.C. App. 101) is amended--
            (1) in subsection (a), as amended by subsection (a) of this 
        section, by adding at the end the following: ``The Commission 
        may conduct such additional meetings by electronic means as the 
        Commission considers advisable, including meetings to decide 
        matters requiring an affirmative vote.''; and
            (2) in subsection (c) by striking ``to be present'' at the 
        end of the fourth sentence.
    (c) Decisions Requiring a Quorum.--Section 101(b) (40 U.S.C. App. 
101(b)) is amended by striking the third sentence and inserting the 
following: ``No decision involving Commission policy, approval of 
State, regional, or subregional development plans or implementing 
investment programs, any modification or revision of the Appalachian 
Regional Commission Code, any allocation of funds among the State, or 
any designation of a distressed county or an economically competitive 
county may be made without a quorum of State members.''.

SEC. 204. AUTHORIZATIONS FOR ADMINISTRATIVE EXPENSES.

    Section 105(b) (40 U.S.C. App. 105(b)) is amended to read as 
follows:
    ``(b) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section $3,645,000 per fiscal year for each 
        of fiscal years 1996 through 2000. Such sums shall remain 
        available until expended.
            ``(2) Expenses of federal cochairman.--Of the amounts 
        appropriated pursuant to paragraph (1), not to exceed 
        $1,245,000 per fiscal year for each of fiscal years 1996 
        through 2000 shall be available for expenses of the Federal 
        Cochairman, the Federal Cochairman's alternate, and the Federal 
        Cochairman's staff.''.

SEC. 205. ADMINISTRATIVE POWERS OF COMMISSION.

    (a) Authority To Lease.--Section 106(7) (40 U.S.C. App. 106(7)) is 
amended--
            (1) by inserting ``subject to the requirements of the 
        Federal Property and Administrative Services Act of 1949,'' 
        after ``(7)'';
            (2) by striking ``notwithstanding any other provision of 
        law,''; and
            (3) by striking ``1982'' and inserting ``2000''.
    (b) Authority to Maintain Temporary Office.--Section 106(8) (40 
U.S.C. App. 106(8)) is amended by inserting ``subject to the 
requirements of the Federal Property and Administrative Services Act of 
1949,'' after ``(8)''.

SEC. 206. HIGHWAY SYSTEM.

    (a) Authorization of Appropriations.--Section 201(g) (40 U.S.C. 
App. 201(g)) is amended to read as follows:
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $90,000,000 per fiscal year for 
each of fiscal years 1996 through 2000. Such sums shall remain 
available until expended.''.
    (b) Cost Sharing.--
            (1) In general.--Section 201(h)(1) (40 U.S.C. App. 
        201(h)(1)) is amended by striking ``70 per centum'' and 
        inserting ``80 percent''.
            (2) Applicability.--The amendment made by paragraph (1) 
        shall apply to projects approved after March 31, 1979.

SEC. 207. COST SHARING OF DEMONSTRATION HEALTH PROJECTS.

    (a) Operation Costs.--Section 202(c) (40 U.S.C. App. 202(c)) is 
amended in the first sentence by striking ``100 per centum of the costs 
thereof'' and all that follows through the period at the end of the 
second sentence and inserting ``50 percent of the costs thereof (or 80 
percent of such costs in the case of a project to be carried out in a 
county for which a distressed county designation is in effect under 
section 226).''.
    (b) Cost Sharing.--Section 202 (40 U.S.C. App. 202) is amended by 
adding at the end the following:
    ``(f) Maximum Commission Contribution After September 30, 1995.--
After September 30, 1995, not more than 50 percent of any project cost 
eligible for financial assistance under this section may be provided 
from funds appropriated to carry out this Act; except that such maximum 
Commission contribution may be increased to 80 percent, or to the 
percentage of the maximum Federal contribution authorized by this 
section, whichever is less, for a project to be carried out in a county 
for which a distressed county designation is in effect under section 
226.''.

SEC. 208. REPEAL OF LAND STABILIZATION, CONSERVATION, AND EROSION 
              CONTROL PROGRAM.

    Section 203 (40 U.S.C. App. 203) is repealed.

SEC. 209. REPEAL OF TIMBER DEVELOPMENT PROGRAM.

    Section 204 (40 U.S.C. App. 204) is repealed.

SEC. 210. REPEAL OF MINING AREA RESTORATION PROGRAM.

    Section 205 (40 U.S.C. App. 205) is repealed.

SEC. 211. REPEAL OF WATER RESOURCE SURVEY.

    Section 206 (40 U.S.C. App. 206) is repealed.

SEC. 212. COST SHARING OF HOUSING PROJECTS.

    (a) Loans.--Section 207(b) (40 U.S.C. App. 207(b)) is amended by 
striking ``80 per centum'' and inserting ``50 percent (or 80 percent in 
the case of a project to be carried out in a county for which a 
distressed county designation is in effect under section 226)''.
    (b) Grants.--Section 207(c)(1) (40 U.S.C. 207(c)(1)) is amended by 
striking ``80 per centum'' and inserting ``50 percent (or 80 percent in 
the case of a project to be carried out in a county for which a 
distressed county designation is in effect under section 226)''.

SEC. 213. REPEAL OF AIRPORT SAFETY IMPROVEMENTS PROGRAM.

    Section 208 (40 U.S.C. App. 208) is repealed.

SEC. 214. COST SHARING OF VOCATIONAL EDUCATION AND EDUCATION 
              DEMONSTRATION PROJECTS.

    (a) Operation Costs.--Section 211(b)(3) (40 U.S.C. App. 211(b)(3)) 
is amended in the first sentence by striking ``100 per centum of the 
costs thereof'' and all that follows through the period at the end of 
the second sentence and inserting ``50 percent of the costs thereof (or 
80 percent of such costs in the case of a project to be carried out in 
a county for which a distressed county designation is in effect under 
section 226).''
    (b) Cost Sharing.--Section 211 (40 U.S.C. App. 211) is amended by 
adding at the end the following:
    ``(c) Maximum Commission Contribution After September 30, 1995.--
After September 30, 1995, not more than 50 percent of any project cost 
eligible for financial assistance under this section may be provided 
from funds appropriated to carry out this Act; except that such maximum 
Commission contribution may be increased to 80 percent, or to the 
percentage of the maximum Federal contribution authorized by this 
section, whichever is less, for a project to be carried out in a county 
for which a distressed county designation is in effect under section 
226.''.

SEC. 215. SEWAGE TREATMENT WORKS PROGRAM.

    Section 212 (40 U.S.C. App. 212) is repealed.

SEC. 216. REPEAL OF AMENDMENTS TO HOUSING ACT OF 1954.

    Section 213 (40 U.S.C. App. 213) is repealed.

SEC. 217. SUPPLEMENTS TO FEDERAL GRANT-IN-AID PROGRAMS.

    (a) Availability of Amounts.--The first sentence of section 214(a) 
(40 U.S.C. App. 214(a)) is amended by striking ``the President is 
authorized to provide funds to the Federal Cochairman to be used'' and 
inserting ``the Federal Cochairman may use amounts made available to 
carry out this section''.
    (b) Cost Sharing.--Section 214(b) (40 U.S.C. App. 214(b)) is 
amended--
            (1) by striking ``(b)'' and inserting ``(b)(1)''; and
            (2) by adding at the end the following:
    ``(2) After September 30, 1995, not more than 50 percent of any 
project cost eligible for financial assistance under this section may 
be provided from funds appropriated to carry out this Act; except that 
such maximum Commission contribution may be increased to 80 percent for 
a project to be carried out in a county for which a distressed county 
designation is in effect under section 226.''.
    (c) Federal Grant-in-Aid Programs Defined.--The first sentence of 
section 214(c) (40 U.S.C. App. 214(c)) is amended by striking ``on or 
before December 31, 1980,''.
    (d) Limitation on Covered Road Projects.--The second sentence of 
section 214(c) is amended by inserting ``authorized by title 23, United 
States Code'' after ``road construction''.

SEC. 218. PROGRAM DEVELOPMENT CRITERIA.

    (a) Considerations.--Section 224(a) (40 U.S.C. App. 224(a)) is 
amended by inserting before the semicolon at the end of paragraph (1) 
the following: ``or in a severely and persistently distressed and 
underdeveloped county or area''.
    (b) Outcome Measurements.--Section 224(a) is further amended--
            (1) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (2) by adding at the end the following:
            ``(6) the extent to which the project design provides for 
        detailed outcome measurements by which grant expenditures may 
        be justified.''.
    (c) Removal of Limitations.--Section 224(b) (40 U.S.C. App. 224(b)) 
is amended to read as follows:
    ``(b) Limitation.--No financial assistance made available under 
this Act may be used to assist establishments relocating from one area 
to another.''.

SEC. 219. DISTRESSED AND ECONOMICALLY COMPETITIVE COUNTIES.

    Part C of title II (40 U.S.C. App. 221-225) is amended by adding at 
the end the following:

``SEC. 226. DISTRESSED AND ECONOMICALLY COMPETITIVE COUNTIES.

    ``(a) Designations.--Not later than 90 days after the effective 
date of the Economic Development Partnership Act of 1995, and annually 
thereafter, the Commission, in accordance with such criteria as the 
Commission may establish, shall--
            ``(1) designate as `distressed counties' those counties in 
        the region that are the most severely and persistently 
        distressed and underdeveloped; and
            ``(2) designate as `economically competitive counties' 
        those counties in the region which have attained substantial 
        economic parity with the rest of the Nation.
    ``(b) Period of Effectiveness.--In making annual designations under 
subsection (a), the Commission may discontinue an existing designation 
at the discretion of the Commission; except that any designation of a 
distressed county shall remain in effect for the 3-year period 
beginning on the date of the designation.
    ``(d) Funding Prohibition for Projects Located in Economically 
Competitive Counties.--
            ``(1) In general.--Except as provided by paragraph (2), no 
        funds may be provided under this Act for a project located in a 
        county for which an economically competitive county designation 
        is in effect under this section.
            ``(2) Exceptions.--The prohibition established by paragraph 
        (1) shall not apply to--
            ``(1) projects on the Appalachian development highway 
        system authorized by section 201;
            ``(2) local development district administrative projects 
        authorized by section 302(a)(1); or
            ``(3) discretionary grants authorized by section 302(a).''.

SEC. 220. GRANTS FOR ADMINISTRATIVE EXPENSES AND COMMISSION PROJECTS.

    (a) Availability of Amounts.--Section 302(a) (40 U.S.C. App. 
302(a)) is amended--
            (1) by striking ``The President'' and inserting ``The 
        Commission''; and
            (2) in paragraphs (1), (2), and (3) by striking ``to the 
        Commission'' each place it appears.
    (b) Cost Sharing.--Section 302(a) is further amended--
            (1) in paragraph (1) by striking ``75 per centum'' and 
        inserting ``50 percent''; and
            (2) by adding at the end the following: ``After September 
        30, 1995, not more than 50 percent of the cost of any activity 
        eligible for financial assistance under this section may be 
        provided from funds appropriated to carry out this Act (or 80 
        percent of such costs in the case of a project to be carried 
        out in a county for which a distressed county designation is in 
        effect under section 226); except that discretionary grants by 
        the Commission to implement significant regional initiatives, 
        to take advantage of special development opportunities, or to 
        respond to emergency economic distress in the region may be 
        made without regard to such percentage limitations. The 
        aggregate amount of discretionary grants referred to in the 
        preceding sentence in any fiscal year shall not exceed 10 
        percent of the amounts appropriated under section 401 for such 
        fiscal year.''.
    (c) Repeals.--Section 302 (40 U.S.C. App. 302) is amended--
            (1) by striking paragraphs (3) and (4) of subsection (b);
            (2) by striking subsection (d); and
            (3) by striking subsection (e).

SEC. 221. AUTHORIZATION OF APPROPRIATIONS FOR GENERAL PROGRAM.

    Section 401 (40 U.S.C. App. 401) is amended to read as follows:

``SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

    ``In addition to the appropriations authorized by section 105 for 
administrative expenses and by section 201(g) for the Appalachian 
development highway system and local access roads, there is authorized 
to be appropriated to the Commission to carry out this Act $88,355,000 
per fiscal year for each of fiscal years 1996 through 2000. Such sums 
shall remain available until expended.''.

SEC. 222. EXTENSION OF TERMINATION DATE.

    Section 405 (40 U.S.C. App. 405) is amended by striking ``1982'' 
and inserting ``2000''.