[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4275 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4275

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 20, 1998

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

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic Development Partnership Act 
of 1998''.

        TITLE I--PUBLIC WORKS AND ECONOMIC DEVELOPMENT PROGRAMS

                      Subtitle A--Reauthorizations

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

    The Public Works and Economic Development Act of 1965 (42 U.S.C. 
3121 et seq.) is amended by striking all after the first section and 
inserting the following:

``SEC. 2. FINDINGS AND DECLARATION.

    ``(a) Findings.--Congress finds that--
            ``(1) the maintenance of the national economy at a high 
        level is vital to the best interests of the United States, but 
        some of our regions, counties, and communities are suffering 
        substantial and 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, with cooperation among area 
        local governments;
            ``(3) Federal financial assistance, including grants for 
        public works and development facilities, to communities, 
        industries, enterprises, and individuals in areas needing 
        development should enable such areas to help themselves achieve 
        lasting improvement and enhance domestic prosperity by the 
        establishment of stable and diversified local economies, 
        sustainable development, 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 PARTNERSHIPS, COOPERATION, AND 
                              COORDINATION

``SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT PARTNERSHIPS.

    ``(a) In General.--In providing assistance under this Act, the 
Secretary shall cooperate with States and other entities to ensure 
that, consistent with national objectives, Federal programs are 
compatible with, and further the objectives of, State, regional, and 
local economic development plans and comprehensive economic development 
strategies.
    ``(b) Technical Assistance.--The Secretary shall provide to States, 
local governmental subdivisions of States, sub-State regional 
organizations (including organizations that cross State boundaries), 
and multi-State regional organizations technical assistance that the 
Secretary determines may be necessary or desirable to--
            ``(1) alleviate economic distress;
            ``(2) encourage and support public-private partnerships for 
        the formation and improvement of economic development 
        strategies that promote the growth of the national economy;
            ``(3) stimulate modernization and technological advances in 
        the generation and commercialization of goods and services; and
            ``(4) enhance the effectiveness of United States firms in 
        the global economy.
    ``(c) Intergovernmental Review.--The Secretary shall issue 
regulations to ensure that appropriate State and local governmental 
authorities will be given a reasonable opportunity to review and 
comment on proposed economic development projects that the Secretary 
determines may have a significant and direct impact on the economy of 
the area.
    ``(d) Cooperative Agreements.--The Secretary may enter into a 
cooperative agreement with 2 or more adjoining States, or an 
organization consisting of such States, in support of effective 
economic development. The agreement shall provide for suitable 
participation by other governmental and non-governmental parties that 
represent significant interests in and perspectives on economic 
development in the area.

``SEC. 102. COOPERATION OF FEDERAL AGENCIES.

    ``Each Federal department and agency, in accordance with applicable 
laws and within the limits of available funds, shall exercise its 
powers, duties, and functions, and shall cooperate with the Secretary, 
in a manner that will assist the Secretary in carrying out the 
objectives of this Act.

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

``SEC. 201. PUBLIC WORKS GRANTS.

    ``(a) Direct Grants.--Upon the application of an eligible 
recipient, the Secretary may make direct grants for--
            ``(1) acquisition or development of land and improvements 
        for public works, public service, or development facility 
        usage; and
            ``(2) acquisition, design and engineering, construction, 
        rehabilitation, alteration, expansion, or improvement of such 
        facilities, including related machinery and equipment.
    ``(b) Selection of Projects.--The Secretary may provide assistance 
for a project under this section only if the Secretary finds that--
            ``(1) the project will directly or indirectly--
                    ``(A) tend to improve opportunities in the area in 
                which the project will be located for the successful 
                establishment or expansion of industrial or commercial 
                plants or facilities;
                    ``(B) otherwise assist in the creation of 
                additional long-term employment opportunities for the 
                area;
                    ``(C) primarily benefit long-term unemployed 
                individuals and members of low-income families; or
                    ``(D) in the case of a project that will be located 
                in an area described in paragraph (3) or (4) of section 
                302(a), enhance the economic growth potential of the 
                area or result in additional long-term employment 
                opportunities commensurate with the amount of Federal 
                financial assistance requested;
            ``(2) the project will fulfill all or part of a pressing 
        need of the area in which the project will be located; and
            ``(3) the project is consistent with a comprehensive 
        economic development strategy that has been developed in 
        accordance with section 303 for the area in which the project 
        will be located.
    ``(c) Limitation.--Not more than 15 percent of the amounts made 
available to carry out this section in a fiscal year may be expended in 
any one State.

``SEC. 202. CONSTRUCTION COST INCREASES.

    ``(a) In General.--Subject to subsection (b), the Secretary may 
increase the amount of a grant (including a supplemental grant) made 
for a construction project under this title (or title I of this Act, as 
in effect before the date of enactment of the Economic Development 
Partnership Act of 1998) if, after the grant has been made but before 
completion of the project, the cost of the project has increased and if 
an increase in the amount of the grant is necessary for the 
satisfactory completion and operation of the project.
    ``(b) Limitations.--The Secretary may not increase the amount of a 
grant for a project under subsection (a) if--
            ``(1) the increase would cause the Federal share of the 
        cost of the project to exceed the maximum percentage permitted 
        for the project under this Act, as in effect at the time of the 
        increase;
            ``(2) the amount of the increase exceeds 15 percent of the 
        original estimated cost of the project; or
            ``(3) the amount of the increase exceeds the difference 
        between the estimated cost of the project on the date of the 
increase and the original estimated cost of the project.

``SEC. 203. PLANNING AND ADMINISTRATIVE EXPENSES.

    ``(a) Direct Grants.--Upon the application of an eligible 
recipient, the Secretary may make direct grants for economic 
development planning and for the administrative expenses of 
organizations undertaking such planning.
    ``(b) Planning To Reduce Unemployment and Increase Incomes.--The 
planning for cities, other political subdivisions, Indian tribes, and 
sub-State planning and development organizations (including areas 
described in section 302(a) and economic development districts) 
assisted under this section shall include systematic efforts to reduce 
unemployment and increase incomes.
    ``(c) Planning Process.--Planning assisted under this section shall 
be a continuous process, involving public officials and private 
citizens, in analyzing local economies, defining development goals, 
determining project opportunities, and formulating and implementing a 
development program.
    ``(d) Use of Other Federal Funds.--Planning assistance received 
under this section shall be used in conjunction with any other 
available Federal planning assistance to ensure adequate and effective 
planning and economical use of funds.
    ``(e) State Plans.--
            ``(1) Preparation of plans.--A State plan prepared with 
        assistance under this section shall be prepared cooperatively 
        by the State, political subdivisions of the State, and the 
        economic development district located in whole or in part 
        within the State, as a comprehensive economic development 
        strategy.
            ``(2) Consistency with local and economic development 
        district plans.--Upon completion of a State plan prepared with 
        assistance under this section, the State shall--
                    ``(A) certify to the Secretary that in the 
                preparation of the State plan, the local and economic 
                development district plans were considered and, to the 
                fullest extent possible, the State plan is consistent 
                with such plans; and
                    ``(B) identify any inconsistencies between the 
                State plan and the local and economic development 
                district plans, with the justification for each 
                inconsistency.
            ``(3) Considerations.--Any overall State economic 
        development planning shall be a part of a comprehensive 
        planning process that shall consider providing public works 
        to--
                    ``(A) stimulate and channel development, economic 
                opportunities, and choices for individuals;
                    ``(B) support sound land use;
                    ``(C) foster effective transportation access;
                    ``(D) promote sustainable development;
                    ``(E) enhance and protect the environment, 
                including the conservation and preservation of open 
                spaces and environmental quality;
                    ``(F) provide public services;
                    ``(G) promote technology development; and
                    ``(H) balance physical and human resources through 
                the management and control of physical development.
            ``(4) Annual report.--A State receiving assistance under 
        this subsection shall transmit to the Secretary an annual 
        report on the planning process of the State.

``SEC. 204. COST SHARING.

    ``Subject to section 205, the amount of a direct grant for a 
project under this title may not exceed 50 percent of the cost of the 
project. In determining the amount of the non-Federal share, the 
Secretary shall give due consideration to all contributions, both in 
cash and in kind, fairly evaluated, including contributions of space, 
equipment, and services.

``SEC. 205. SUPPLEMENTARY GRANTS.

    ``(a) Authority To Make Supplementary Grants.--
            ``(1) In general.--Upon the application of an eligible 
        recipient, the Secretary may make a supplementary grant for a 
        project for which the applicant is eligible but, because of the 
        economic situation of the applicant, for which the applicant 
        cannot supply the required non-Federal share.
            ``(2) Types of assistance.--Supplementary grants under this 
        section may include grants to enable States and other entities 
        within areas described in section 302(a) to take maximum 
        advantage of designated Federal grant-in-aid programs (as 
        defined in subsection (b)(4)), direct grants-in-aid authorized 
        under this title, 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).
    ``(b) Requirements Applicable to Supplementary Grants.--
            ``(1) Amount of grants.--The amount of a supplementary 
        grant for a project under this section may not exceed the 
        applicable percentage to be established by the Secretary by 
        regulation, but in no event may the non-Federal share of the 
        aggregate cost of any such project (including assumptions of 
        debt) be less than 20 percent of such cost, except as provided 
        by paragraph (6).
            ``(2) Form of grants.--Supplementary grants shall be made 
        by the Secretary, in accordance with regulations to be issued 
        by the Secretary, by increasing the amounts of direct grants 
        authorized under this title or by the payment of funds 
        appropriated under this Act to the heads of the departments, 
        agencies, and instrumentalities of the Federal 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 section may 
        be used for the purpose of increasing the Federal contribution 
        to a project in an area described in section 302(a) under the 
        Federal program above the fixed maximum portion of the cost of 
        the project otherwise authorized by the applicable law.
            ``(4) Designated federal grant-in-aid programs defined.--In 
        this section, the term `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 a supplementary grant 
        available for a project under this title, the Secretary shall 
        take into consideration the relative needs of the area and the 
        nature of the project to be assisted.
            ``(6) Exceptions.--
                    ``(A) Grants to indian tribes.--In the case of a 
                grant to an Indian tribe, or in the case of a grant for 
                assistance authorized by section 209(d), the Secretary 
                may reduce the non-Federal share below the percentage 
                specified in subsection (b)(1) or waive the non-Federal 
                share.
                    ``(B) Grants to states, political subdivisions, and 
                non-profits.-- In the case of a grant to a State (or a 
                political subdivision of the State) that the Secretary 
                determines has exhausted its effective taxing and 
                borrowing capacity, or in the case of a grant to a non-
                profit organization that the Secretary determines has 
                exhausted its effective borrowing capacity, the 
                Secretary may reduce the non-Federal share below the 
                percentage specified in subsection (b)(1) or may waive 
                the non-Federal share for--
                            ``(i) a project in an area described in 
                        section 302(a)(3); or
                            ``(ii) a project the nature of which the 
                        Secretary determines, in writing, warrants the 
                        reduction or waiver of the non-Federal share.

``SEC. 206. REGULATIONS TO ENSURE RELATIVE NEEDS ARE MET.

    ``The Secretary shall issue rules, regulations, and procedures to 
carry out this title to ensure that adequate consideration is given to 
the relative needs of eligible areas. In issuing such rules, 
regulations, and procedures for assistance under section 201, the 
Secretary shall 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.

``SEC. 207. TRAINING, RESEARCH, AND TECHNICAL ASSISTANCE.

    ``(a) Direct Grants.--
            ``(1) In general.--Upon the application of an eligible 
        recipient, the Secretary may make direct grants for training, 
        research, and technical assistance, including grants for 
        program evaluation and economic impact analyses, that would be 
        useful in alleviating or preventing conditions of excessive 
        unemployment or underemployment.
            ``(2) Types of assistance.--Direct grants under this 
        section may include grants for project planning and feasibility 
        studies, demonstrations of innovative activities or strategic 
        economic development investments, management and operational 
        activities or strategic economic development investments, 
        management and operational assistance, establishment of 
        university centers, establishment of business outreach centers, 
and studies evaluating the needs of, and development potentialities 
for, economic growth of areas that the Secretary finds have substantial 
need for such assistance.
            ``(3) Authority to waive non-federal share.--The Secretary 
        may waive the non-Federal share in the case of a project under 
        this section, without regard to section 204 or 205.
    ``(b) Forms of Assistance.--In carrying out the Secretary's duties 
under this Act, the Secretary may--
            ``(1) provide research and technical assistance through 
        members of the staff of the Secretary;
            ``(2) make payments of funds authorized to carry out this 
        section to departments or agencies of the Federal Government;
            ``(3) provide for the employment of private individuals, 
        partnerships, firms, corporations, or suitable institutions 
        under contracts entered into for such purposes; or
            ``(4) award grants under this title.

``SEC. 208. RELOCATION OF INDIVIDUALS AND BUSINESSES.

    ``Grants to eligible recipients under this Act shall include 
amounts that may be required to provide relocation assistance to 
affected persons, as required by the Uniform Relocation Assistance and 
Real Property Acquisition Policies Act 1970 (42 U.S.C. 4601 et seq.).

``SEC. 209. ECONOMIC ADJUSTMENT.

    ``(a) Direct Grants.--Upon the application of an eligible 
recipient, the Secretary may make direct grants for public facilities, 
public services, business development (including a revolving loan 
fund), planning, technical assistance, training, and other assistance 
that demonstrably furthers the economic adjustment objectives of this 
Act, including activities to alleviate long-term economic deterioration 
and sudden and severe economic dislocations.
    ``(b) Selection of Projects.--The Secretary may provide assistance 
for a project under this section only if the Secretary finds that--
            ``(1) the project will help the area for which the project 
        is to be undertaken meet a special need arising from--
                    ``(A) actual or threatened severe unemployment 
                arising from economic dislocation, including 
                unemployment arising from actions of the Federal 
                Government; or
                    ``(B) economic adjustment problems resulting from 
                severe changes in economic conditions (including long-
                term economic deterioration); and
            ``(2) except with respect to planning projects, the project 
        is consistent with a comprehensive economic development 
        strategy that has been developed in accordance with section 303 
        for the area for which the project is to be undertaken.
    ``(c) Activities Related to Defense Reductions.--In order to help 
the communities diversify their economies, assistance under this 
section shall extend to activities identified by communities impacted 
by military base closures, defense contractor cutbacks, and Department 
of Energy defense-related reductions. Nothing in this subsection is 
intended to replace the efforts of the economic adjustment program of 
the Department of the Defense.
    ``(d) Post-Disaster Activities.--Assistance under this section 
shall extend to post-disaster activities in areas affected by natural 
or other disasters.
    ``(e) Activities Related to International Trade.--Assistance under 
this section shall extend to activities identified by communities that 
have suffered economic injury caused by international trade in order to 
help the communities restructure their economies.

``SEC. 210. DIRECT EXPENDITURE OR REDISTRIBUTION BY RECIPIENT.

    ``Amounts from grants under section 209 may be used in direct 
expenditures by the eligible recipient or through redistribution by the 
eligible recipient to public and private entities in grants, loans, 
loan guarantees, payments to reduce interest on loan guarantees, or 
other appropriate assistance, but no grant may be made by an eligible 
recipient to a private profit-making entity.

``SEC. 211. CHANGED PROJECT CIRCUMSTANCES.

    ``In any case in which a grant (including a supplemental grant) has 
been made by the Secretary for a project under this title (or under 
this Act, as in effect on the day before the date of enactment of the 
Economic Development Partnership Act of 1998), and after the grant has 
been made but before completion of the project, the purpose or scope of 
the project that was the basis of the grant has changed, the Secretary 
may approve the use of grant funds for the changed project if the 
Secretary determines that the changed project meets the requirements of 
this title and that the changes are necessary to enhance economic 
development in the area.

``SEC. 212. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.

    ``In any case in which a grant (including a supplemental grant) has 
been made by the Secretary under this title (or under this Act, as in 
effect on the day before the date of enactment of the Economic 
Development Partnership Act of 1998) for a construction project, and 
after the grant has been made but before completion of the project, the 
cost of the project (based upon the designs and specifications that 
were the basis of the grant) has decreased because of decreases in 
costs, the underrun funds may be used to improve the project either 
directly or indirectly, as determined by the Secretary.

``SEC. 213. BASE CLOSINGS AND REALIGNMENTS.

    ``(a) Location of Projects.--In any case in which the Secretary 
determines there is a need for assistance under this title due to the 
closure or realignment of a military installation or a Department of 
Energy defense-related installation, the Secretary may make such 
assistance available for projects to be carried out on the installation 
and for projects to be carried out in communities adversely affected by 
the closure or realignment.
    ``(b) Interest in Property.--Notwithstanding any other provision of 
law, the Secretary may provide to an eligible recipient any assistance 
made available under this Act for a project to be carried out on a 
military installation, or a Department of Energy defense-related 
installation, that is closed or scheduled for closure or realignment 
without requiring the eligible recipient to have title to the property 
or a leasehold interest in the property for any specified term.

``SEC. 214. PREVENTION OF UNFAIR COMPETITION.

    ``Financial assistance under this Act may not be extended to any 
project if--
            ``(1) the assistance would result in an increase in the 
        production of goods, materials, or commodities, or the 
        availability of services or facilities; and
            ``(2) there is not sufficient demand for such goods, 
        materials, commodities, services, or facilities to employ the 
        efficient capacity of existing competitive commercial or 
        industrial enterprises.

``SEC. 215. 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 
date of enactment of the Economic Development Partnership Act of 1998, 
may be sold, encumbered, or pledged at the discretion of the grantee of 
the Fund, to a third party provided that the net proceeds of the 
transaction--
            ``(1) shall be deposited into the Fund and may only be used 
        for activities which are consistent with the purposes of this 
        title; and
            ``(2) shall be subject to the financial management, 
        accounting, reporting, and auditing standards which were 
        originally applicable to the grant.

``SEC. 216. REPORTS BY RECIPIENT.

    ``(a) In General.--The Secretary shall require all recipients of 
assistance under this Act to submit reports to the Secretary.
    ``(b) Requirements.--Reports under subsection (a) shall--
            ``(1) be submitted at such intervals and in such manner as 
        the Secretary shall prescribe by regulation, not to exceed 10 
        years from the time of closeout of the assistance award; and
            ``(2) contain an evaluation of the effectiveness of the 
        economic assistance provided under this Act in meeting the need 
        the assistance was designed to alleviate and the purposes of 
        this Act.
    ``(c) Revolving Loan Funds.--
            ``(1) In general.--Except as provided by paragraph (2), 
        reports of the activities of a revolving loan fund may be 
        required at such intervals as may be provided by regulation.
            ``(2) Limitation.--After final disbursements of assistance 
        to establish a revolving loan fund (including assistance 
        provided before the date of enactment of the Economic 
        Development Partnership Act of 1998), reports of activities of 
        the revolving loan fund may not be required more frequently 
        than annually.

   ``TITLE III--DEFINITIONS, ELIGIBILITY, AND COMPREHENSIVE ECONOMIC 
                         DEVELOPMENT STRATEGIES

``SEC. 301. DEFINITIONS.

    ``In this Act, the following definitions apply:
            ``(1) Economic development district.--The term `economic 
        development district' means an area in the United States 
        composed of cooperating areas described in section 302(a) and, 
        where appropriate, designated economic development centers and 
        neighboring counties or communities, that has been designated 
        by the Secretary as an economic development district. The term 
        includes any economic development district designated by the 
        Secretary under section 403 of this Act, as in effect on the 
        day before the date of enactment of the Economic Development 
        Partnership Act of 1998.
            ``(2) Economic development center.--The term `economic 
        development center' means an area in the United States that has 
        been identified as an economic development center in an 
        approved comprehensive economic development strategy and that 
        has been designated by the Secretary as eligible for financial 
        assistance under this Act in accordance with the provisions of 
        this Act.
            ``(3) Eligible recipient.--The term `eligible recipient' 
        means--
                    ``(A) an area described in section 302(a);
                    ``(B) an economic development district designated 
                under section 401;
                    ``(C) an Indian tribe, a State, a city or other 
                political subdivision of a State, or a consortium of 
                such political subdivisions;
                    ``(D) an institution of higher education or a 
                consortium of such institutions; or
                    ``(E) a public or private nonprofit organization or 
                association acting in cooperation with officials of 
                such political subdivision.
        For grants made under section 207, the term also includes 
        private individuals and for-profit organizations.
            ``(4) Grant.--The term `grant' includes a cooperative 
        agreement, as that term is used in the Federal Grant and 
        Cooperative Agreement Act of 1977.
            ``(5) Indian tribe.--The term `Indian tribe' means any 
        Indian tribe, band, nation, pueblo, or other organized group or 
        community, including any Alaska Native village or regional 
        corporation as defined in or established pursuant to the Alaska 
        Native Claims Settlement Act, which is recognized as eligible 
        for the special programs and services provided by the United 
        States to Indians because of their status as Indians.
            ``(6) Secretary.--The term `Secretary' means the Secretary 
        of Commerce.
            ``(7) State.--The terms `State', `States', and `United 
        States' include the several States, the District of Columbia, 
        the Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
        American Samoa, the Republic of the Marshall Islands, the 
        Federated States of Micronesia, the Republic of Palau, and the 
        Commonwealth of the Northern Mariana Islands.

``SEC. 302. AREA ELIGIBILITY.

    ``(a) Certification.--In order to be eligible for assistance for 
activities described in section 201 or 209, an applicant shall certify, 
as part of an application for such assistance, that the project will 
serve an area (which may be defined without regard to political or 
other boundaries) that on the date of submission of such application 
meets 1 or more of the following criteria:
            ``(1) The area has a per capita income of 80 percent or 
        less of the national average.
            ``(2) The area has an unemployment rate that is at least 1 
        percent above the national average percentage for the most 
        recent 24-month period for which statistics are available.
            ``(3) The area is determined by the Secretary to have 
        experienced, or to be reasonably foreseen as about to 
        experience, a special need to meet an expected rise in 
        unemployment or other economic adjustment problem (including 
        those caused by any action or decision of the Federal 
        Government).
            ``(4) The area is determined by the Secretary to be a 
        pocket of poverty or high unemployment within a larger 
        community of less economic distress and has demonstrated a 
        resistance to economic recovery without assistance under this 
        Act.
    ``(b) Documentation.--A certification made under subsection (a) 
shall be supported by Federal data, when available or, in the absence 
of recent Federal data, by data available through the State government. 
Such documentation shall be accepted by the Secretary unless the 
Secretary determines the documentation to be inaccurate. The most 
recent statistics available shall be used. Areas certified as meeting 
the criteria of subsection (a), including pockets of poverty or high 
unemployment within larger communities of less economic distress, may 
be defined without regard to political or other subdivisions or 
boundaries.
    ``(c) Prior Designations.--Any designation of a redevelopment area 
made before the date of enactment of the Economic Development 
Partnership Act of 1998 shall not be effective after such date.

``SEC. 303. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY.

    ``(a) In General.--The Secretary may provide assistance under 
section 201, 208, or 209 (except planning assistance under section 209) 
to an applicant for a project only if the applicant submits to the 
Secretary, as part of an application for the assistance, a 
comprehensive economic development strategy that--
            ``(1) identifies the economic development problems to be 
        addressed using the assistance;
            ``(2) identifies past, present, and projected future 
        economic development investments in the area receiving the 
        assistance and public and private participants and sources of 
        funding for the investments; and
            ``(3) sets forth a strategy for addressing the economic 
        problems identified pursuant to paragraph (1) and describes how 
        the strategy will solve the problems.
    ``(b) Other Plan.--The Secretary may accept as a comprehensive 
economic development strategy a satisfactory plan prepared under 
another Federally supported program.

               ``TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS

``SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS AND ECONOMIC 
              DEVELOPMENT CENTERS.

    ``(a) In General.--In order that economic development projects of 
broader geographic significance may be planned and carried out, the 
Secretary may take the actions authorized by this section.
    ``(b) Designation of Economic Development Districts.--The Secretary 
may designate appropriate `economic development districts' within the 
United States with the concurrence of the States in which such 
districts will be wholly or partially located, if--
            ``(1) the proposed district is of sufficient size or 
        population, and contains sufficient resources, to foster 
        economic development on a scale involving more than a single 
        area described in section 302(a);
            ``(2) the proposed district contains at least 1 area 
        described in section 302(a);
            ``(3) the proposed district contains 1 or more areas 
        described in section 302(a) or economic development centers 
        identified in an approved district comprehensive economic 
        development strategy as having sufficient size and potential to 
        foster the economic growth activities necessary to alleviate 
        the distress of the areas described in section 302(a) within 
        the district; and
            ``(4) the proposed district has a district comprehensive 
        economic development strategy that--
                    ``(A) includes sustainable development and adequate 
                land use and transportation planning;
                    ``(B) contains a specific program for district 
                cooperation, self-help, and public investment; and
                    ``(C) is approved by the State or States affected 
                and by the Secretary.
    ``(c) Designation of Economic Development Centers.--The Secretary 
may designate as `economic development centers', under regulations to 
be issued by the Secretary, areas that the Secretary considers 
appropriate, if--
            ``(1) the proposed center has been identified and included 
        in an approved district comprehensive economic development 
        strategy and recommended by the State or States affected for 
        such special designation;
            ``(2) 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 302(a) of the district; and
            ``(3) the proposed center does not have a population in 
        excess of 250,000 according to the most recent Federal census.
    ``(d) Provision of Financial Assistance.--The Secretary may provide 
financial assistance in accordance with the criteria of this Act, 
except as otherwise expressly provided, for projects in economic 
development centers designated under subsection (c), if--
            ``(1) the project will further the objectives of the 
        comprehensive economic development strategy of the district in 
        which the project will be located;
            ``(2) the project will enhance the economic growth 
        potential of the district or result in additional long-term 
        employment opportunities commensurate with the amount of 
        Federal financial assistance requested; and
            ``(3) the amount of Federal financial assistance requested 
        is reasonably related to the size, population, and economic 
        needs of the district.
    ``(e) Authorities.--The Secretary may, under regulations to be 
issued by the Secretary--
            ``(1) invite the several States to draw up proposed 
        economic development district boundaries and to identify 
        potential economic development centers;
            ``(2) encourage the States to consult with appropriate 
        local governmental authorities in the proposal of economic 
        development district boundaries or their modification;
            ``(3) cooperate with the several States--
                    ``(A) in sponsoring and assisting district economic 
                planning and development groups; and
                    ``(B) in assisting such district groups to 
                formulate district comprehensive economic development 
                strategies; and
            ``(4) encourage participation by appropriate local 
        governmental authorities in such economic development 
        districts.

``SEC. 402. TERMINATION OR MODIFICATION.

    ``The Secretary shall issue regulations to prescribe standards for 
the termination or modification of economic development districts and 
economic development centers designated under the authority of section 
401.

``SEC. 403. BONUS.

    ``Subject to the 20 percent non-Federal share requirement of 
205(b)(1), the Secretary may increase the amount of grant assistance 
authorized by sections 204 and 205 for projects within designated 
economic development districts by an amount not to exceed 10 percent of 
the aggregate cost of the project, in accordance with regulations to be 
issued by the Secretary, if--
            (1) the project applicant is actively participating in the 
        economic development activities of the district; and
            (2) the project is consistent with an approved district 
        comprehensive economic development strategy.

``SEC 404. STRATEGY PROVIDED TO APPALACHIAN REGIONAL COMMISSION.

    ``An economic development district designated by the Secretary 
under this title shall ensure that a copy of the district's 
comprehensive economic development strategy is furnished to the 
Appalachian Regional Commission established under the Appalachian 
Regional Development Act of 1965 if any part of such district is within 
the Appalachian region.

``SEC. 405. PARTS NOT WITHIN AREAS DESCRIBED IN SECTION 302(A).

    ``The Secretary is authorized to provide financial assistance 
available to an area described in section 302(a) under this Act to 
those parts of an economic development district that are not within an 
area described in section 302(a), if the Secretary determines, in 
writing, that the assistance will be of a substantial direct benefit to 
an area described in section 302(a) within such district. Such 
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 
302(a).

                       ``TITLE V--ADMINISTRATION

``SEC. 501. UNDER SECRETARY OF COMMERCE FOR ECONOMIC DEVELOPMENT.

    ``(a) Appointment.--The Secretary shall administer this Act with 
assistance of 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) Duties.--The Under Secretary of Commerce for Economic 
Development shall perform such functions as the Secretary may prescribe 
and will serve as the administrator of the Economic Development 
Administration within the Department of Commerce.

``SEC. 502. OFFICE OF ECONOMIC DEVELOPMENT INFORMATION.

    ``(a) Establishment.--The Secretary shall establish in the Economic 
Development Administration an Office of Economic Development 
Information (hereinafter in this section referred to as the `Office').
    ``(b) Duties.--The Office shall--
            ``(1) serve as a central information clearinghouse on 
        matters relating to economic development programs and 
        activities of the Federal Government and State governments, 
        including political subdivisions of States;
            ``(2) help potential and actual applicants for economic 
        development assistance under Federal, State, and local laws in 
        locating and applying for such assistance, including financial 
        and technical assistance; and
            ``(3) develop electronic links or other connections to 
        information databases provided by Federal departments and 
        agencies, State and local governmental agencies, public and 
        private entities, and individuals to assist other such 
        agencies, entities, and individuals in the process of 
        identifying and applying for assistance and resources under 
        economic development programs and activities of the Federal, 
        State, and local governments.
    ``(c) Electronic Links and Connections.--The databases to which the 
Office shall develop electronic links or other connections shall 
include the following kinds of information:
            ``(1) Relevant information concerning available economic 
        development programs of the Federal Government, including key 
        contact personnel, descriptions of the application process, 
        eligibility requirements and criteria, selection and follow-up 
        procedures, and other such relevant information.
            ``(2) Relevant information concerning major State and local 
        governmental economic development programs, including lists of 
        appropriate offices, officers, and contact personnel connected 
        with, or involved in, such programs.
            ``(3) 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.
            ``(4) Case studies and best practices in economic 
        development, adjustment, and reinvestment.
            ``(5) Technology utilization programs, assistance, and 
        resources.
            ``(6) Compilations of published works (including 
        bibliographies, books, reports, articles, videos, and tapes), 
        and selected texts of such works, related to all facets of 
        economic development.
            ``(7) Information concerning current revolving loan fund 
        programs and finance programs directly related to economic 
        development objectives.
            ``(8) Resources that assist in identifying potential 
        sources of capital for businesses, including revolving loan 
        funds, venture capital, and other capital tools.
            ``(9) Resources, including geographic information systems, 
        that assist economic developers in understanding and pursuing 
        sustainable development and initiatives.
    ``(d) Public Access to Data Services.--The Office shall establish 
the means to ensure easy access by the public to the Office's 
information clearinghouse, and shall take all appropriate steps to 
ensure that the clearinghouse and its resources are as accessible and 
user-friendly as possible. As soon as practicable, and until replaced 
by a means determined by the Secretary to be more effective in 
accomplishing the purposes of this section, access to the data services 
of the Office shall include each of the following means:
            ``(1) An Internet web site, with sorted key locations by 
        economic development related topic, for users to access lists 
        of various Governmentwide and other economic development web 
        site resources.
            ``(2) A toll-free nationwide telephone number to provide 
        direct phone access to the public.
            ``(3) On-line electronic access through existing computer 
        network services and publicly available computer database 
        access facilities.
            ``(4) Printed manuals and orientation materials.
            ``(5) Periodic orientation workshops available to the 
        public.
            ``(6) On-call information specialists to address special 
        problems requiring person-to-person assistance.
    ``(e) Coordination With Other Federal Departments and Agencies.--
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.
    ``(f) Economic Development Defined.--In this section, the term 
``economic development'' includes economic adjustment, disaster 
recovery, industrial retention, and defense reinvestment.

``SEC. 503. CONSULTATION WITH OTHER PERSONS AND AGENCIES.

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

``SEC. 504. ADMINISTRATION, OPERATION, AND MAINTENANCE.

    ``Federal assistance may not be approved under this Act unless the 
Secretary is satisfied that the project for which the Federal 
assistance is to be granted will be properly and efficiently 
administered, operated, and maintained.

``SEC. 505. FIRMS DESIRING FEDERAL CONTRACTS.

    ``The Secretary may furnish the procurement divisions of the 
various departments, agencies, and other instrumentalities of the 
Federal Government with a list--
            ``(1) containing the names and addresses of business firms 
        that are located in areas of high economic distress and are 
        seeking Government contracts for the furnishing of supplies or 
        services; and
            ``(2) designating the supplies and services that the firms 
        provide.

``SEC. 506. AMENDMENTS TO TITLE 5, U.S.C.

    ``Title 5, United States Code, is amended--
            ``(1) in section 5314 by inserting `, Under Secretary of 
        Commerce for Economic Development,' after `Under Secretary of 
        Commerce for Export Administration'; and
            ``(2) in section 5316 by striking `Administrator for 
        Economic Development.'.

``SEC. 507. NOTIFICATION OF REORGANIZATION.

    ``The Secretary shall notify the Committees on Transportation and 
Infrastructure and on Appropriations of the House of Representatives 
and the Committees on Environment and Public Works and on 
Appropriations of the Senate of any reorganization of the offices, 
programs, or activities of the Economic Development Administration on 
or before the 30th day preceding the date of the reorganization.

``SEC. 508. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

    ``(a) In General.--The Secretary shall conduct an evaluation of 
each university center and economic development district receiving 
grant assistance under this Act to assess the grantee's performance and 
contribution toward job retention and creation. Evaluations shall be 
conducted on a continuing basis so that each grantee will be evaluated 
within 3 years after the first award of assistance to the grantee after 
the date of enactment of the Economic Development Partnership Act of 
1998, and at least once every 3 years thereafter, so long as the 
grantee continues to receive such assistance.
    ``(b) Criteria.--
            ``(1) Establishment.--The Secretary shall 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 center's contribution to providing 
        technical assistance, conducting applied research, and 
        disseminating results of the center's activities.
            ``(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 or economic development district under subsection (a), the 
Secretary shall provide for the participation of at least one other 
university center or economic development district, as appropriate, on 
a cost-reimbursement basis.

``SEC. 509. COORDINATION.

    ``(a) In General.--The Secretary shall actively coordinate with 
other Federal programs, States, economic development districts, and 
other appropriate planning and development organizations the activities 
relating to the requirements for comprehensive economic development 
strategies and making grants under this Act.
    ``(b) Federal Coordinating Council for Economic Development.--
            ``(1) In general.--The Secretary shall establish a Federal 
        Coordinating Council for Economic Development.
            ``(2) Composition of council.--The Council shall be 
        composed of representatives from Federal agencies involved in 
        matters that affect regional economic development.
            ``(3) Duties.--The Council shall assist in providing a 
        unifying framework for economic and regional development 
        efforts and develop a Governmentwide strategic plan for 
        economic development.

``SEC. 510. ECONOMIC DEVELOPMENT REVOLVING LOAN FUND TASK FORCE.

    ``(a) Establishment.--The Secretary of Commerce shall establish, 
within the Department of Commerce, an Economic Development Revolving 
Loan Fund Task Force.
    ``(b) Membership.--The members of the Task Force shall include, at 
a minimum, representatives of--
            ``(1) the Economic Development Administration;
            ``(2) the Office of Inspector General of the Department of 
        Commerce;
            ``(3) current operators of revolving loan funds established 
        with assistance provided under the Public Works and Economic 
        Development Act of 1965; and
            ``(4) economic development organizations.
    ``(c) Duties.--The Task Force shall review the financial 
management, accounting, reporting, and auditing standards and 
requirements of revolving loan funds described in subsection (b)(3).
    ``(d) Recommendations.--Based upon its review, the Task Force shall 
make recommendations to the Secretary to better streamline and lessen 
revolving loan fund reporting requirements.

                       ``TITLE VI--MISCELLANEOUS

``SEC. 601. POWERS OF SECRETARY.

    ``(a) In General.--In performing the Secretary's duties under this 
Act, the Secretary is authorized to take the following actions:
            ``(1) To adopt, alter, and use a seal, which shall be 
        judicially noticed.
            ``(2) Subject to the civil-service and classification laws, 
        to select, employ, appoint, and fix the compensation of such 
        personnel as may be necessary to carry out the provisions of 
        this Act.
            ``(3) To hold such hearings, sit and act at such times and 
        places, and take such testimony, as the Secretary may deem 
        advisable.
            ``(4) To request directly from any executive department, 
        bureau, agency, board, commission, office, independent 
        establishment, or instrumentality information, suggestions, 
        estimates, and statistics needed to carry out the purposes of 
        this Act. 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, to 
        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 the Act, and to 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) To 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) To pursue to final collection, by way of compromise 
        or other administrative action, prior to reference to the 
        Attorney General, all claims against third parties assigned to 
        the Secretary in connection with assistance extended under this 
        Act.
            ``(8) To acquire, in any lawful manner, any property (real, 
        personal, or mixed, tangible or intangible), whenever necessary 
        or appropriate in connection with assistance extended under 
        this Act.
            ``(9) In addition to any powers, functions, privileges, and 
        immunities otherwise vested in the Secretary, to take any 
        action, including the procurement of the services of attorneys 
        by contract, determined by the Secretary to be necessary or 
        desirable in making, purchasing, servicing, compromising, 
        modifying, liquidating, or otherwise administratively dealing 
        with assets held in connection with financial assistance 
        extended under this Act.
            ``(10) To employ experts and consultants or organizations 
        as authorized by section 3109 of title 5, United States Code, 
        compensate individuals so employed, 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) To establish performance measures for grants and 
        other assistance provided under this Act, and use such 
        performance measures to evaluate the economic impact of 
        economic development assistance programs. The establishment and 
        use of such performance measures shall be provided by the 
        Secretary through members of the Secretary's staff, through the 
        employment of appropriate parties under contracts entered into 
        for such purposes, or through grants to such parties for such 
        purposes, using any funds made available by appropriation to 
        carry out this Act.
            ``(12) To conduct environmental reviews and incur necessary 
        expenses to evaluate and monitor the environmental impact of 
economic development assistance provided and proposed to be provided 
under this Act, including costs associated with the representation and 
defense of actions of the Secretary related to the environmental impact 
of such assistance, using any funds made available by appropriation to 
carry out section 207 of this Act.
            ``(13) To sue and be sued in any court of record of a State 
        having general jurisdiction or in any United States district 
        court. Jurisdiction is 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.
            ``(14) To establish such rules, regulations, and procedures 
        as the Secretary considers appropriate in carrying out the 
        provisions of this Act.
    ``(b) Deficiency Judgments.--The authority under subsection (a)(7) 
to pursue claims shall include the authority to obtain deficiency 
judgments or otherwise in the case of mortgages assigned to the 
Secretary.
    ``(c) Inapplicability of Certain Other 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) Property Interests.--The powers of the Secretary, pursuant to 
this section, in relation to property acquired by the Secretary in 
connection with assistance extended under this Act, shall extend to 
property interests of the Secretary in relation to projects approved 
under the Public Works and Economic Development Act of 1965, title I of 
the Public Works Employment Act of 1976, title II of the Trade Act of 
1974, and the Community Emergency Drought Relief Act of 1977.
    ``(e) Powers of Conveyance and Execution.--The power to convey and 
to execute, in the name of the Secretary, deeds of conveyance, deeds of 
release, 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. 602. 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 date of enactment of the Economic Development Partnership Act of 
1998.

``SEC. 603. ANNUAL REPORT TO CONGRESS.

    ``The Secretary shall transmit a comprehensive and detailed annual 
report to Congress on the Secretary's activities under this Act for 
fiscal year 1998 and each fiscal year thereafter. Such report shall be 
printed and transmitted to Congress not later than July 1 of the year 
following the fiscal year with respect to which the report is to be 
made.

``SEC. 604. USE OF OTHER FACILITIES.

    ``(a) Delegation of Functions to Other 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 authorize the redelegation of such functions, powers, 
and duties by the heads of such departments and agencies.
    ``(b) Transfer Between Departments.--Funds authorized to be 
appropriated under this Act may be transferred between departments and 
agencies of the Government, if such funds are used for the purposes for 
which they are specifically authorized and appropriated.
    ``(c) 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. 605. 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 for the purpose of obtaining money, property, or anything 
of value, under this Act, shall be fined under title 18, United States 
Code, imprisoned for not more than 5 years, or both.
    ``(b) Embezzlement and Fraud-Related Crimes.--Whoever, being 
connected in any capacity with the Secretary in the administration of 
this Act--
            ``(1) embezzles, abstracts, purloins, or willfully 
        misapplies any moneys, funds, securities, or other things of 
        value, whether belonging to such person or pledged or otherwise 
        entrusted to such person;
            ``(2) with intent to defraud the Secretary or any other 
        politic or corporate, or any individual, or to deceive any 
        officer, auditor, or examiner, makes any false entry in any 
        book, report, or statement of or to the Secretary or without 
        being duly authorized draws any orders or issues, puts forth, 
        or assigns any note, debenture, bond, or other obligation, or 
        draft, bill of exchange, mortgage, judgment, or 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
            ``(4) gives any unauthorized information concerning any 
        future action or plan of the Secretary that 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, shall be fined under 
        title 18, United States Code, imprisoned for not more than 5 
        years, or both.

``SEC. 606. EMPLOYMENT OF EXPEDITERS AND ADMINISTRATIVE EMPLOYEES.

    ``Financial assistance may not be extended by the Secretary under 
this Act to any business enterprise unless the owners, partners, or 
officers of such business enterprise--
            ``(1) certify to the Secretary the names of any attorneys, 
        agents, and other persons engaged by or on behalf of such 
        business enterprise for the purpose of expediting applications 
        made to the Secretary for assistance of any sort, under this 
        Act, and the fees paid or to be paid to any such person; and
            ``(2) execute an agreement binding such business 
        enterprise, for a period of 2 years after such assistance is 
        rendered by the Secretary 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 that the Secretary 
        determines involves discretion with respect to the granting of 
        assistance under this Act.

``SEC. 607. MAINTENANCE OF RECORDS OF APPROVED APPLICATIONS FOR 
              FINANCIAL ASSISTANCE; PUBLIC INSPECTION.

    ``(a) Maintenance of Record Requires.--The Secretary shall maintain 
as a permanent part of the records of the Department of Commerce a list 
of applications approved for financial assistance under this Act that 
will 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. 608. 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 that 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, 
the Inspector General of the Department of Commerce, 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. 609. PROHIBITION AGAINST A STATUTORY CONSTRUCTION THAT 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 may be construed as authorizing or 
permitting any reduction or diminution in the proportional amount of 
Federal assistance that any State or other entity eligible under this 
Act would otherwise be entitled to receive under the provisions of any 
other Act.

``SEC. 610. ACCEPTANCE OF APPLICANTS' CERTIFICATIONS.

    ``The Secretary may accept, when deemed appropriate, the 
applicants' certifications to meet the requirements of this Act.

                          ``TITLE VII--FUNDING

``SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this Act 
$368,000,000 for each of fiscal years 1999 through 2003. Such sums 
shall remain available until expended.

``SEC. 702. ADMINISTRATIVE EXPENSES.

    ``In addition to the appropriations authorized by section 701, 
there are authorized to be appropriated for administrative expenses of 
the Secretary in carrying out this Act such sums as may be necessary 
for each of fiscal years 1999 through 2003. Such sums shall remain 
available until expended.

``SEC. 703. DEFENSE CONVERSION ACTIVITIES.

    ``In addition to the appropriations authorized by section 701 for 
defense conversion activities, there are authorized to be appropriated 
to carry out this Act for each of fiscal years 2000 through 2003 such 
sums as may be necessary to provide assistance for such activities. 
Such sums shall remain available until expended.''.

SEC. 2. SAVINGS PROVISIONS.

    (a) Existing Rights, Duties, and Obligations Not Affected.--This 
Act shall not be construed as affecting the validity of any right, 
duty, or obligation of the United States or any other person arising 
out of or pursuant to any contract, loan, or other instrument or 
agreement that was in effect on the day before the date of enactment of 
this Act.
    (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 Act.
    (c) Liquidating Account.--The Economic Development Revolving Fund 
established under section 203 of the Public Works and Economic 
Development Act of 1965 shall continue to be available to the Secretary 
as a liquidating account as defined under section 502 of the Federal 
Credit Reform Act of 1990 for payment of obligations and expenses in 
connection with financial assistance extended under this Act, the 
Public Works and Economic Development Act of 1965, the Area 
Redevelopment Act, and the Trade Act of 1974.
    (d) Administration.--The Secretary shall take such actions as 
authorized before the date of enactment of this Act as necessary or 
appropriate to administer and liquidate existing grants, contracts, 
agreements, loans, obligations, debentures, or guarantees heretofore 
made by the Secretary or the Secretary's delegate pursuant to 
provisions in effect immediately prior to the date of enactment of this 
Act.

            Subtitle B--Innovative Financing Pilot Programs

SEC. 121. PUBLIC WORKS LOAN GUARANTEES.

    (a) In General.--Upon the joint application of a private lending 
institution and a State, a political subdivision of a State, an Indian 
tribe, or a private or public nonprofit organization or association, 
the Secretary of Commerce is authorized to guarantee a loan made by the 
private lending institution to the State, political subdivision, Indian 
tribe, or organization or association for any purpose for which the 
Secretary can make a direct grant under section 201 of the Public Works 
and Economic Development Act of 1965.
    (b) Terms and Conditions.--A loan guarantee made for a project 
under this section shall be subject to such terms and conditions as the 
Secretary may prescribe. Such terms and conditions, at a minimum, shall 
include the following:
            (1) The guarantee may be made only if the Secretary finds 
        that the project meets the requirements of the Public Works and 
        Economic Development Act of 1965.
            (2) The guarantee may not at any time exceed 90 percent of 
        the amount of the outstanding balance of the loan.
            (3) The guarantee may be made only if financial assistance 
        for the project is not otherwise available from private lenders 
        or from other Federal sources on terms that the Secretary finds 
        are likely to permit accomplishment of the project.
            (4) The guarantee may be made only if the Secretary finds 
        that there is reasonable expectation of repayment of the loan.
            (5) The guarantee may not exceed 30 years.
    (c) Funding.--Not more than 10 percent of the amounts appropriated 
to carry out section 201 of the Public Works and Economic Development 
Act of 1965 for each of fiscal years 1999 through 2003 may be used to 
carry out this section.

SEC. 122. LOAN ASSISTANCE DEMONSTRATION PROGRAM.

    (a) In General.--The Secretary of Commerce shall carry out a 
program to demonstrate the effectiveness of encouraging economic 
development by making grants for reducing interest rates on loans for 
economic development activities. The Secretary shall carry out this 
section acting through the Under Secretary of Commerce for Economic 
Development.
    (b) Requirements.--Each recipient of a grant under the 
demonstration program shall--
            (1) use the grant amount to assist businesses and nonprofit 
        organizations by reducing interest rates on loans for economic 
        development activities by an amount not to exceed 60 percent of 
        the market rate of interest on any such loan; and
            (2) inform businesses and nonprofit organizations of the 
        availability of such loan interest rate reduction assistance.
    (c) Terms and Conditions.--In administering the demonstration 
program, the Secretary shall--
            (1) ensure that any project receiving assistance under this 
        section meets the requirements of the Public Works and Economic 
        Development Act of 1965 (42 U.S.C. 3121 et seq.);
            (2) establish criteria and procedures for selecting 
        recipients under the program with national geographic 
        diversity, ensuring representation of rural and urban areas;
            (3) establish requirements for implementation of the 
        program by recipients of assistance under the program; and
            (4) provide for the collection and reporting of information 
        sufficient to provide the basis for a determination of the 
        costs and effectiveness of the program.
    (d) Economic Development Activities Defined.--In this section, the 
term ``economic development activities'' means activities that--
            (1) are part of a project supported by grant assistance 
        under this Act; or
            (2) are supported by a loan from a revolving loan fund 
        established under this Act (including a fund established with 
        assistance provided before the date of enactment of the 
        Economic Development Partnership Act of 1998).
    (e) Funding.--Not more than 10 percent of the amounts appropriated 
to carry out section 209 of the Public Works and Economic Development 
Act of 1965 for each of fiscal years 1999 through 2003 may be used to 
carry out this section.

SEC. 123. LAND CONVEYANCE.

    (a) In General.--The Secretary of Commerce shall convey, at fair 
market value (as determined by the Secretary), to the city of Two 
Harbors, Minnesota, or its designee, the parcel of land described in 
subsection (b).
    (b) Land Description.--The parcel of land referred to in subsection 
(a) consists of approximately 21.55 acres known as the J and J Casting 
site, in Lake County, Minnesota, together with a road easement, all as 
described in the deed of the United States Marshal, dated March 22, 
1988, executed pursuant to the order of sale of the United States 
District Court for the District of Minnesota, dated May 15, 1987, in 
case Civil No. 5-86-300.
    (c) Delegation of Authority.--The Secretary shall carry out this 
section acting through the Under Secretary of Commerce for Economic 
Development.

SEC. 124. REPORTS.

    (a) Annual Report.--Not later than September 30 of each of fiscal 
years 1999 through 2003, the Secretary of Commerce shall transmit to 
Congress a report containing an evaluation of the effectiveness of loan 
guarantees and grants made under this subtitle.
    (b) Long-Term Program.--
            (1) Study.--The Secretary shall conduct a study regarding 
        the effects and costs of carrying out a long-term and expanded 
        program for guaranteeing loans and making grants under this 
        subtitle, including a determination of national scope.
            (2) Reports.--Not later than September 30, 2001, the 
        Secretary shall transmit to Congress a report containing the 
        results of the study conducted under paragraph (1), together 
        with any recommendations for carrying out an effective 
        demonstration program of national scope under this subtitle.

SEC. 125. COMPLIANCE WITH BUY AMERICAN ACT.

    None of the funds made available to carry out this Act, or any 
amendment made by this Act, may be expended in violation of the 
provisions of sections 2 through 4 of the Act of March 3, 1933 (41 
U.S.C. 10a-10c; popularly know as the ``Buy American Act'') that are 
applicable to those funds. The Secretary of Commerce shall provide each 
recipient of such funds notice of the requirements specified in this 
section and information on methods to comply with such requirements.

               TITLE II--APPALACHIAN REGIONAL DEVELOPMENT

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

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other 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) 1998 Findings and Purposes.--The Congress further finds and 
declares that, while substantial progress has been made in fulfilling 
many of the objectives of this Act, rapidly changing national and 
global economies over the past decade have created new problems and 
challenges for rural areas throughout the Nation and especially for the 
Appalachian region. It is, therefore, also the purpose of this Act to 
assist the region in providing the 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 areas of the region and focus special attention on the areas 
of greatest need so as to provide a fairer opportunity for the people 
of the region to share the quality of life generally enjoyed by 
citizens across this Nation.''.

SEC. 203. MEETINGS.

    (a) Annual Meeting Requirement.--Section 101(a) (40 U.S.C. App. 
101(a)) is amended by adding at the end the following: ``The Commission 
shall conduct at least one meeting each year with the Federal 
Cochairman and at least a majority of the State members present.''.
    (b) Additional Meetings by Electronic Means.--Section 101 (40 
U.S.C. App. 101) is amended--
            (1) in subsection (a), as amended by subsection (a) of this 
        section, by adding at the end the 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 strong county 
may be made without a quorum of State members.''.

SEC. 204. ADMINISTRATIVE EXPENSES.

    Section 105 (40 U.S.C. App. 105) is amended--
            (1) by striking ``(a) For the period'' and all that follows 
        through ``such expenses'' the first place it appears and 
        inserting ``Administrative expenses of the Commission''; and
            (2) by striking subsection (b).

SEC. 205. COMPENSATION OF EMPLOYEES.

    Section 106(2) (40 U.S.C. App. 106(2)) is amended by striking ``the 
salary of the alternate to the Federal Co-Chairman on the Commission as 
provided in section 101'' and inserting ``the maximum rate for the 
Senior Executive Service under section 5382 of title 5, United States 
Code, including any applicable locality-based comparability payment 
that may be authorized under section 5304(h)(2)(c) of such title 5.''.

SEC. 206. ADMINISTRATIVE POWERS OF COMMISSION.

    Section 106(7) (40 U.S.C. App. 106(7)) is amended by striking 
``1982'' and inserting ``2003''.

SEC. 207. COST SHARING OF DEMONSTRATION HEALTH PROJECTS.

    (a) Operation Costs.--Section 202(c) (40 U.S.C. App. 202(c)) is 
amended in the first sentence by striking ``100 per centum of the costs 
thereof'' and all that follows through the period at the end of the 
second sentence and inserting ``50 percent of the costs thereof (or 80 
percent of such costs in the case of a project to be carried out in a 
county for which a distressed county designation is in effect under 
section 226).''.
    (b) Cost Sharing.--Section 202 (40 U.S.C. App. 202) is amended by 
adding at the end the following:
    ``(f) Maximum Commission Contribution After September 30, 1998.--
After September 30, 1998, not more than 50 percent of any project cost 
eligible for 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, 1998.--
After September 30, 1998, not more than 50 percent of any project cost 
eligible for financial assistance under this section may be provided 
from funds 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, 1998, 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 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 evaluated.''.
    (c) Removal of Limitations.--Section 224(b) (40 U.S.C. App. 224(b)) 
is amended to read as follows:
    ``(b) Limitation.--Financial assistance made available under this 
Act may not be used to assist establishments relocating from one area 
to another.''.

SEC. 219. DISTRESSED AND ECONOMICALLY STRONG 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 STRONG COUNTIES.

    ``(a) Designations.--Not later than 90 days after the date of 
enactment of this section, 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
            ``(2) designate two categories of economically strong 
        counties, as follows:
                    ``(A) `competitive counties' which shall be those 
                counties in the region which are approaching economic 
                parity with the rest of the Nation; and
                    ``(B) `attainment counties' which shall be those 
                counties in the region which have attained or exceeded 
                economic parity with the rest of the Nation.
    ``(b) Distressed Counties.--In program and project development and 
implementation and in the allocation of appropriations made available 
to carry out this Act, the Commission shall give special consideration 
to the needs of those counties for which a distressed designation is in 
effect under this section.
    ``(c) Funding Prohibition for Projects Located in Economically 
Strong Counties.--
            ``(1) Competitive counties.--Except as provided by 
        paragraphs (3) and (4), assistance under this Act shall be 
        limited to no more than 30 percent of project cost for a 
        project located in a county for which a competitive county 
        designation is in effect under this section.
            ``(2) Attainment counties.--Except as provided by 
        paragraphs (3) and (4), no funds may be provided under this Act 
        for a project located in a county for which an attainment 
        county designation is in effect under this section.
            ``(3) Exceptions.--The prohibitions established by 
        paragraphs (1) and (2) shall not apply to--
                    ``(A) projects on the Appalachian development 
                highway system authorized by section 201;
                    ``(B) local development district administrative 
                projects authorized by section 302(a)(1); or
                    ``(C) a multicounty project that includes a county 
                or counties designated as `competitive' or `attainment' 
                under this section provided all participating counties 
                share in the costs and benefits of the project.
            ``(4) Waiver.--The prohibitions established by paragraphs 
        (1) and (2) may be waived by the Commission for a particular 
        project upon a showing of one or more of the following:
                    ``(A) The existence of a significant pocket of 
                distress in the part of the county in which the project 
                is located.
                    ``(B) A significant decline in economic conditions 
                affecting the county which is not reflected in current 
                designation data.
                    ``(C) The existence of a significant potential 
                benefit from the project in areas of the region outside 
                the designated county.''.

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

    (a) Availability of Amounts.--Section 302(a) (40 U.S.C. App. 
302(a)) is amended--
            (1) by striking ``The President'' and inserting ``The 
        Commission''; and
            (2) in paragraphs (1), (2), and (3) by striking ``to the 
        Commission'' each place it appears.
    (b) Cost Sharing.--Section 302(a) is further amended--
            (1) in paragraph (1) by striking ``75 per centum'' and 
        inserting ``50 percent''; and
            (2) by adding at the end the following: ``After September 
        30, 1998, not more than 50 percent of the cost of any activity 
        eligible for financial 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 amounts authorized by section 201 or otherwise 
made available for the Appalachian development highway system program, 
there is authorized to be appropriated to the Commission to carry out 
this Act--
            ``(1) $67,000,000 for fiscal year 1999;
            ``(2) $72,000,000 for fiscal year 2000;
            ``(3) $75,000,000 for fiscal year 2001;
            ``(4) $75,000,000 for fiscal year 2002; and
            ``(5) $80,000,000 for fiscal year 2003.
Such sums shall remain available until expended.''.

SEC. 222. EXTENSION OF TERMINATION DATE.

    Section 405 (40 U.S.C. App. 405) is amended by striking ``1982'' 
and inserting ``2003''.
                                 <all>