[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2400 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2400

    To provide job creation and assistance, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 28, 2001

  Mr. McHugh introduced the following bill; which was referred to the 
   Committee on Education and the Workforce, and in addition to the 
Committees on Ways and Means, the Judiciary, Agriculture, 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 provide job creation and assistance, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural America Job Assistance and 
Creation Act''.

SEC. 2. GRANTS FOR REGIONAL SKILLS ALLIANCE SKILL DEVELOPMENT.

    (a) Authorization.--
            (1) In general.--The Secretary of Labor, in consultation 
        with the Secretary of Commerce, shall award grants to eligible 
        entities described in subsection (b) to assist such entities to 
        improve the job skills necessary for employment in specific 
        industries.
            (2) Eligible entities described.--
                    (A) In general.--An eligible entity described in 
                this subsection is a consortium that--
                            (i) shall consist of representatives from 
                        not less than 5 businesses, or a lesser number 
                        of businesses if such lesser number of 
                        businesses employs at least 30 percent of the 
                        employees in the industry involved in the 
                        region (or a nonprofit organization that 
                        represents such businesses);
                            (ii) may consist of representatives from--
                                    (I) labor organizations;
                                    (II) State and local government; 
                                and
                                    (III) educational institutions;
                            (iii) is established to serve one or more 
                        particular industries; and
                            (iv) is established to serve a particular 
                        geographic region.
                    (B) Majority of representatives.--A majority of the 
                representatives comprising the consortium shall be 
                representatives described in subparagraph (A)(i).
            (3) Priority for small businesses.--In providing grants 
        under paragraph (1), the Secretary of Labor shall give priority 
        to an eligible entity if a majority of representatives forming 
        the entity represent small-business concerns (as defined in 
        section 3(a) of the Small Business Act (15 U.S.C. 632(a))).
            (4) Maximum amount of grant.--The amount of a grant awarded 
        to an eligible entity under paragraph (1) may not exceed 
        $1,000,000 for any fiscal year.
    (b) Use of Amounts.--
            (1) In general.--The Secretary of Labor may not award a 
        grant under subsection (a) to an eligible entity unless such 
        entity agrees to use amounts received from such grant to 
        improve the job skills necessary for employment by businesses 
        in the industry with respect to which such entity was 
        established.
            (2) Conduct of program.--
                    (A) In general.--In carrying out the program 
                described in paragraph (1), the eligible entity may 
                provide for--
                            (i) an assessment of training and job skill 
                        needs for the industry;
                            (ii) the development of a sequence of skill 
                        standards that are benchmarked to advanced 
                        industry practices;
                            (iii) the development of curriculum and 
                        training methods, including, where appropriate, 
                        e-learning or technology-based training;
                            (iv) the purchase, lease, or receipt of 
                        donations of training equipment;
                            (v) the identification of training 
                        providers and the development of partnerships 
                        between the industry and educational 
                        institutions, including community colleges;
                            (vi) the development of apprenticeship 
                        programs;
                            (vii) the development of training programs 
                        for workers, including dislocated workers;
                            (viii) the development of training plans 
                        for businesses; and
                            (ix) the development of the membership of 
                        the entity.
                    (B) Additional requirement.--In carrying out the 
                program described in paragraph (1), the eligible entity 
                shall provide for the development and tracking of 
                performance outcome measures for the program and the 
                training providers involved in the program.
            (3) Administrative costs.--The eligible entity may use not 
        more than 10 percent of the amount of a grant to pay for 
        administrative costs associated with the program described in 
        paragraph (1).
    (c) Requirement of Matching Funds.--
            (1) In general.--The Secretary of Labor may not award a 
        grant under subsection (a) to an eligible entity unless such 
        entity agrees that the entity will make available non-Federal 
        contributions toward the costs of carrying out activities under 
        the grant in an amount that is not less than $2 for each $1 of 
        Federal funds provided under the grant, of which--
                    (A) $1 shall be provided by the businesses 
                participating in the entity; and
                    (B) $1 shall be provided by the State or local 
                government involved.
            (2) Other contributions.--
                    (A) Equipment.--Equipment donations to facilities 
                that are not owned or operated by the members of the 
                eligible entity involved and that are shared by such 
                members may be included in determining compliance with 
                paragraph (1).
                    (B) Limitation.--An eligible entity may not include 
                in-kind contributions in complying with the requirement 
                of paragraph (1). The Secretary of Labor may consider 
                such donations in ranking applications.
    (d) Limit on Administrative Expenses.--The Secretary of Labor may 
use not more than 5 percent of the amounts made available to carry out 
this section to pay the Federal administrative costs associated with 
awarding grants under this section.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $50,000,000 for each of fiscal 
years 2002, 2003, and 2004, and such sums as are necessary for each 
fiscal year thereafter.

SEC. 3. GRANTS FOR REGIONAL SKILLS ALLIANCE PLANNING.

    (a) Authorization.--
            (1) In general.--The Secretary of Labor, in consultation 
        with the Secretary of Commerce, shall award grants to States to 
        enable such States to assist businesses, organizations, and 
        agencies described in section 2(a)(2) in conducting planning to 
        form consortia described in such section.
            (2) Maximum amount of grant.--The amount of a grant awarded 
        to a State under paragraph (1) may not exceed $500,000 for any 
        fiscal year.
    (b) Application.--The Secretary of Labor may not award a grant 
under subsection (a) to a State unless such State submits to the 
Secretary an application at such time, in such manner, and containing 
such information as the Secretary may reasonably require.
    (c) Requirement of Matching Funds.--The Secretary of Labor may not 
award a grant under subsection (a) to a State unless such State agrees 
that it will make available non-Federal contributions toward the costs 
of carrying out activities under this section in an amount that is not 
less than $1 for each $1 of Federal funds provided under the grant.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $5,000,000 for fiscal year 2002.

SEC. 4. GRANTS FOR SUPPORT OF BUSINESS INCUBATOR ACTIVITIES.

    (a) Purpose.--It is the purpose of this section to encourage 
entrepreneurial creativity and risk taking through the support of the 
furnishing of business incubator services for newly established small 
businesses and medium-sized businesses.
    (b) Grant Program.--To achieve the purpose of this section, the 
Secretary of Commerce shall carry out a program to provide, through 
grants, financial assistance for the establishment and support of 
entities that provide business incubator services in support of the 
initiation and initial sustainment of business activities by newly 
established small businesses and medium-sized businesses.
    (c) Awards of Grants.--
            (1) Eligibility requirements.--The Secretary shall 
        prescribe the eligibility requirements for the awarding of 
        grants under this section.
            (2) Competitive selection.--The Secretary shall use a 
        competitive process for the awarding of grants under this 
        section and, under that process, select recipients of the 
        grants on the basis of merit, with priority given to 
        underserved rural and urban communities.
            (3) Applications for grants.--The Secretary shall prescribe 
        the form and content of applications required for grants under 
        this section.
    (d) Additional Administrative Authorities.--
            (1) Cost-sharing.--The Secretary may require the recipient 
        of a grant under this section to defray a specific level of its 
        operating expenses for business incubator services out of funds 
        available from sources other than the Federal Government.
            (2) Additional terms and conditions.--The Secretary, in 
        awarding a grant, may impose any other terms and conditions for 
        the use of the proceeds of the grant that the Secretary 
        determines appropriate for carrying out the purpose of this 
        section and to protect the interests of the United States, 
        including the requirement that entities providing business 
        incubator services that receive a grant under this section 
        develop a plan for ultimately becoming self-sufficient.
    (e) Definitions.--In this section:
            (1) Business incubator services.--The term ``business 
        incubator services'' includes professional and technical 
        services necessary for the initiation and initial sustainment 
        of operations of a newly established business, including such 
        services as the following:
                    (A) Legal services.--Legal services, including aid 
                in preparing corporate charters, partnership 
                agreements, and basic contracts.
                    (B) Intellectual property services.--Services in 
                support of the protection of intellectual property 
                through patents, trademarks, or otherwise.
                    (C) Technology services.--Services in support of 
                the acquisition and use of advanced technology, 
                including the use of Internet services and web-based 
                services.
                    (D) Planning.--Advice on--
                            (i) strategic planning; and
                            (ii) marketing, including advertising.
            (2) Small business and medium-sized business.--
                    (A) Secretary to prescribe.--The Secretary shall 
                prescribe the definitions of the terms ``small 
                business'' and ``medium-sized business'' for the 
                purpose of this section.
                    (B) Small business standards.--In defining the term 
                ``small business'' for the purpose of this section, the 
                Secretary shall apply the standards applicable for the 
                definition of the term ``small-business concern'' under 
                section 3 of the Small Business Act (15 U.S.C. 632).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
    (f) Regulations.--The Secretary shall prescribe regulations for the 
grant program administered under this section.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated for the Department of Commerce to carry out this section 
$50,000,000 for fiscal year 2002, and $200,000,000 for each fiscal year 
thereafter.

SEC. 5. STUDY OF RURAL INFRASTRUCTURE AND CAPITAL NEEDS.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study of the infrastructure of, the venture capital available 
for investment in, and the programs of the Federal Government that are 
designed to assist the rural areas of the United States, and shall 
evaluate how the infrastructure, venture capital, and programs could be 
better used to enhance the rural areas, including through a focus on 
expanding economic development and small business loan and grant 
programs to include projects related to tourism and agriculture.
    (b) Report to Congress.--Not later than 6 months after the date of 
enactment of this Act, the Comptroller General shall prepare and submit 
a written report that contains the results of the evaluation required 
by subsection (a) to the following committees of the Congress:
            (1) The Committee on Agriculture of the House of 
        Representatives.
            (2) The Committee on Agriculture, Nutrition, and Forestry 
        of the Senate.
            (3) The Committee on Energy and Commerce of the House of 
        Representatives.
            (4) The Committee on Commerce, Science, and Transportation 
        of the Senate.
            (5) The Committees on Small Business of the House of 
        Representatives and the Senate.

SEC. 6. NOTIFICATION OF FEDERAL AND STATE ELECTED OFFICIALS PRIOR TO 
              DISLOCATION OF WORKERS.

    Section 3(a)(2) of the Worker Adjustment and Retraining 
Notification Act (29 U.S.C. 2102(a)(2)) is amended by inserting 
``Federal, State, and'' after ``the unit of''.

SEC. 7. SUBMISSION OF H-1B LABOR CONDITION APPLICATION AT SAME TIME AS 
              CLASSIFICATION PETITION.

    Section 212(n)(1) of the Immigration and Nationality Act (8 U.S.C. 
1182(n)(1)) is amended by adding at the end the following: ``The 
application under this paragraph shall be submitted by an employer at 
the same time as the classification petition is filed under section 214 
relating to the H-1B nonimmigrants who are the subject of the 
application.''.

SEC. 8. EXCLUSION FROM INCOME OF SEVERANCE PAYMENT AMOUNTS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by redesignating section 139 as section 
140 and by inserting after section 138 the following new section:

``SEC. 139. SEVERANCE PAYMENTS.

    ``(a) In General.--In the case of an individual, gross income shall 
not include any qualified severance payment.
    ``(b) Limitation.--The amount to which the exclusion under 
subsection (a) applies shall not exceed $25,000 with respect to each 
separation from employment described in subsection (c)(1)(B).
    ``(c) Qualified Severance Payment.--For purposes of this section--
            ``(1) In general.--The term `qualified severance payment' 
        means any payment received by an individual if--
                    ``(A) such payment was paid by such individual's 
                employer on account of such individual's separation 
                from employment, and
                    ``(B) such separation was in connection with a 
                reduction in the work force of the employer.
            ``(2) Limitation.--Such term shall not include any payment 
        received by an individual if the aggregate payments received 
        with respect to the separation from employment exceed 
        $150,000.''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by striking the item 
relating to section 139 and inserting the following new items:

                              ``Sec. 139. Severance payments.
                              ``Sec. 140. Cross references to other 
                                        Acts.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.

SEC. 9. EXPANSION OF WORK OPPORTUNITY TAX CREDIT.

    (a) In General.--Section 51(d)(1) of the Internal Revenue Code of 
1986 (relating to members of targeted groups) is amended by striking 
``or'' at the end of subparagraph (G), by striking the period at the 
end of subparagraph (H) and inserting ``, or'', and by adding at the 
end the following:
                    ``(I) a qualified small business employee.''.
    (b) Qualified Small Business Employee.--Section 51(d) of the 
Internal Revenue Code of 1986 is amended by redesignating paragraphs 
(10) through (12) as paragraphs (11) through (13), respectively, and by 
inserting after paragraph (9) the following:
            ``(10) Qualified small business employee.--
                    ``(A) In general.--The term `qualified small 
                business employee' means any individual--
                            ``(i) hired by a qualified small business 
                        located in a development zone, or
                            ``(ii) hired by a qualified small business 
                        and who is certified by the designated local 
                        agency as residing in such a development zone.
                    ``(B) Qualified small business.--The term 
                `qualified small business' has the meaning given the 
                term `small employer' by section 4980D(d)(2).
                    ``(C) Development zone.--For purposes of this 
                section--
                            ``(i) In general.--The term `development 
                        zone' means any area--
                                    ``(I) which is nominated under the 
                                procedures defined in sections 
                                1400E(a)(1)(A) and 1400E(a)(4) for 
                                renewal communities;
                                    ``(II) which the Secretary of 
                                Housing and Urban Development 
                                designates as a development zone, after 
                                consultation with the Secretary of 
                                Commerce;
                                    ``(III) which has a population of 
                                not less than 5,000 and not more than 
                                150,000;
                                    ``(IV) which has a poverty rate not 
                                less than 20 percent (within the 
                                meaning of section 1400E(c)(3)(C));
                                    ``(V) which has an average annual 
                                rate of job growth of less than 2 
                                percent during any 3 years of the 
                                preceding 5-year period; and
                                    ``(VI) which, during the period 
                                beginning January 1, 1990 and ending 
                                with the date of the enactment of this 
                                section, has a net out-migration of 
                                inhabitants, or other population loss, 
                                from the area of at least 2 percent of 
                                the population of the area during such 
                                period.
                            ``(ii) Number of designations.--The 
                        Secretary of Housing and Urban Development may 
                        not designate more than 100 development zones.
                    ``(D) Special rules for determining amount of 
                credit.--For purposes of applying this subpart to wages 
                paid or incurred to any qualified small business 
                employee--
                            ``(i) subsection (a) shall be applied by 
                        substituting `20 percent of the qualified 
                        first, second, third, fourth, or fifth year 
                        wages' for `40 percent of the qualified first 
                        year wages', and
                            ``(ii) in lieu of paragraphs (2) and (3) of 
                        subsection (b), the following definitions and 
                        special rule shall apply:
                                    ``(I) Qualified first-year wages.--
                                The term `qualified first-year wages' 
                                means, with respect to any individual, 
                                qualified wages attributable to service 
                                rendered during the 1-year period 
                                beginning with the day the individual 
                                begins work for the employer.
                                    ``(II) Qualified second-year 
                                wages.--The term `qualified second-year 
                                wages' means, with respect to any 
                                individual, qualified wages 
                                attributable to service rendered during 
                                the 1-year period beginning on the day 
                                after the last day of the 1-year period 
                                with respect to such individual 
                                determined under subclause (I).
                                    ``(III) Qualified third-year 
                                wages.--The term `qualified third-year 
                                wages' means, with respect to any 
                                individual, qualified wages 
                                attributable to service rendered during 
                                the 1-year period beginning on the day 
                                after the last day of the 1-year period 
                                with respect to such individual 
                                determined under subclause (II).
                                    ``(IV) Qualified fourth-year 
                                wages.--The term `qualified fourth-year 
                                wages' means, with respect to any 
                                individual, qualified wages 
                                attributable to service rendered during 
                                the 1-year period beginning on the day 
                                after the last day of the 1-year period 
                                with respect to such individual 
                                determined under subclause (III).
                                    ``(V) Qualified fifth-year wages.--
                                The term `qualified fifth-year wages' 
                                means, with respect to any individual, 
                                qualified wages attributable to service 
                                rendered during the 1-year period 
                                beginning on the day after the last day 
                                of the 1-year period with respect to 
                                such individual determined under 
                                subclause (IV).
                                    ``(VI) Only first $15,000 of wages 
                                per year taken into account.--The 
                                amount of the qualified first, second, 
                                third, fourth, and fifth year wages 
                                which may be taken into account with 
                                respect to any individual shall not 
                                exceed $15,000 per year.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after the date of 
enactment of this Act.

SEC. 10. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

    The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et 
seq.) is amended by adding at the end the following:

``SEC. 381P. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

    ``(a) Definitions.--In this section:
            ``(1) Agency with rural responsibilities.--The term `agency 
        with rural responsibilities' means any executive agency (as 
        defined in section 105 of title 5, United States Code) that--
                    ``(A) implements Federal law targeted at rural 
                areas, including--
                            ``(i) the Act of April 24, 1950 (commonly 
                        known as the Granger-Thye Act) (64 Stat. 82, 
                        chapter 9);
                            ``(ii) the Intergovernmental Cooperation 
                        Act of 1968 (82 Stat. 1098);
                            ``(iii) section 41742 of title 49, United 
                        States Code;
                            ``(iv) the Rural Development Act of 1972 
                        (86 Stat. 657);
                            ``(v) the Rural Development Policy Act of 
                        1980 (94 Stat. 1171);
                            ``(vi) the Rural Electrification Act of 
                        1936 (2 U.S.C. 901 et seq.);
                            ``(vii) amendments made to section 334 of 
                        the Public Health Service Act (42 U.S.C. 254g) 
                        by the Rural Health Clinics Act of 1983 (97 
                        Stat. 1345); and
                            ``(viii) the Rural Housing Amendments of 
                        1983 (97 Stat. 1240) and the amendments made by 
                        the Rural Housing Amendments of 1983 to title V 
                        of the Housing Act of 1949 (42 U.S.C. 1471 et 
                        seq.); or
                    ``(B) administers programs that have a significant 
                impact on rural areas, including--
                            ``(i) the Appalachian Regional Commission;
                            ``(ii) the Department of Agriculture;
                            ``(iii) the Department of Commerce;
                            ``(iv) the Department of Defense;
                            ``(v) the Department of Education;
                            ``(vi) the Department of Energy;
                            ``(vii) the Department of Health and Human 
                        Services;
                            ``(viii) the Department of Housing and 
                        Urban Development;
                            ``(ix) the Department of the Interior;
                            ``(x) the Department of Justice;
                            ``(xi) the Department of Labor;
                            ``(xii) the Department of Transportation;
                            ``(xiii) the Department of the Treasury;
                            ``(xiv) the Department of Veterans Affairs;
                            ``(xv) the Environmental Protection Agency;
                            ``(xvi) the Federal Emergency Management 
                        Administration;
                            ``(xvii) the Small Business Administration;
                            ``(xviii) the Social Security 
                        Administration;
                            ``(xix) the Federal Reserve System;
                            ``(xx) the United States Postal Service;
                            ``(xxi) the Corporation for National 
                        Service;
                            ``(xxii) the National Endowment for the 
                        Arts and the National Endowment for the 
                        Humanities; and
                            ``(xxiii) other agencies, commissions, and 
                        corporations.
            ``(2) Council.--The term `Council' means the National Rural 
        Development Council established by subsection (c).
            ``(3) Partnership.--The term `Partnership' means the 
        National Rural Development Partnership established by 
        subsection (b).
            ``(4) Rural area.--The term `rural area' means--
                    ``(A) all the territory of a State that is not 
                within the boundary of any standard metropolitan 
                statistical area, as designated by the Director of the 
                Office of Management and Budget;
                    ``(B) all territory within any standard 
                metropolitan statistical area described in subparagraph 
                (A) within a census tract having a population density 
                of less than 20 persons per square mile, as determined 
                by the Secretary according to the most recent census of 
                the United States as of any date; and
                    ``(C) such areas as a State Rural Development 
                Council may identify as rural.
            ``(5) State rural development council.--The term `State 
        rural development council' means a State rural development 
        council that meets the requirements of subsection (d).
    ``(b) Establishment.--
            ``(1) In general.--There is established a National Rural 
        Development Partnership composed of--
                    ``(A) the National Rural Development Council 
                established under subsection (a); and
                    ``(B) State rural development councils established 
                under subsection (d).
            ``(2) Purposes.--The purposes of the Partnership are--
                    ``(A) to empower and build the capacity of States 
                and rural communities within States to design unique 
                responses to their own special rural development needs, 
                with local determinations of progress and selection of 
                projects and activities;
                    ``(B) to encourage participants to be flexible and 
                innovative in establishing new partnerships and trying 
                fresh, new approaches to rural development issues, with 
                responses to rural development that use different 
                approaches to fit different situations; and
                    ``(C) to encourage all 5 partners of the 
                Partnership (Federal, State, local, and tribal 
                governments, the private sector, and nonprofit 
                organizations) to be fully engaged and share equally in 
                decisions.
            ``(3) Role of federal government.--The role of the Federal 
        Government in the Partnership should be that of a partner, 
        coach, and facilitator, with Federal agencies authorized--
                    ``(A) to cooperate closely with States to implement 
                the Partnership;
                    ``(B) to provide States with the technical and 
                administrative support necessary to plan and implement 
                tailored rural development strategies to meet local 
                needs;
                    ``(C) to delegate decisionmaking to other levels;
                    ``(D) to ensure that the head of each department 
                and agency specified in subsection (a)(1)(B) designates 
                a senior-level agency official to represent the 
                department or agency, respectively, on the Council and 
                directs appropriate field staff to participate fully 
                with the State rural development council within their 
                jurisdiction; and
                    ``(E) to enter into cooperative agreements with, 
                and to provide grants and other assistance to, State 
                rural development councils, regardless of the form of 
                legal organization of a State rural development council 
                and notwithstanding any other provision of law.
            ``(4) Role of private and nonprofit sector organizations.--
        Private and nonprofit sector organizations are encouraged--
                    ``(A) to act as full partners in the Partnership 
                and State rural development councils; and
                    ``(B) to cooperate with participating government 
                organizations in developing innovative problem 
                approaches to rural development.
    ``(c) National Rural Development Council.--
            ``(1) Establishment.--There is established a National Rural 
        Development Council.
            ``(2) Composition.--The Council shall be composed of--
                    ``(A) 1 representative of each agency with rural 
                responsibilities that elects to participate in the 
                Council; and
                    ``(B) representatives of local, regional, State, 
                tribal, and nongovernmental profit and nonprofit 
                organizations that elect to participate in the 
                activities of the Council.
            ``(3) Duties.--The Council shall--
                    ``(A) provide support for the work of the State 
                rural development councils;
                    ``(B) facilitate coordination among Federal 
                programs and activities, and with State, local, tribal, 
                and private programs and activities, affecting rural 
                development;
                    ``(C) enhance the effectiveness, responsiveness, 
                and delivery of Federal programs in rural areas;
                    ``(D) gather and provide to Federal authorities 
                information and input for the development and 
                implementation of Federal programs impacting rural 
                economic and community development;
                    ``(E) review and comment on policies, regulations, 
                and proposed legislation that affect or would affect 
                rural areas;
                    ``(F) provide technical assistance to State rural 
                development councils for the implementation of Federal 
                programs; and
                    ``(G) develop and facilitate strategies to reduce 
                or eliminate administrative and regulatory impediments.
            ``(4) Election not to participate.--An agency with rural 
        responsibilities that elects not to participate in the 
        Partnership shall submit to Congress a report that describes--
                    ``(A) how the programmatic responsibilities of the 
                Federal agency that target or have an impact on rural 
                areas are better achieved without participation by the 
                agency in the Partnership; and
                    ``(B) a more effective means of partnership-
                building and collaboration to achieve the programmatic 
                responsibilities of the agency.
            ``(5) Performance evaluations.--In conducting a performance 
        evaluation of an employee of an agency with rural 
        responsibilities, the agency shall consider any comments 
        submitted by a State rural development council.
    ``(d) State Rural Development Councils.--
            ``(1) Establishment.--Each State may elect to participate 
        in the Partnership by entering into a memorandum of agreement 
        with the Secretary to establish a State rural development 
        council.
            ``(2) State diversity.--Each State rural development 
        council shall--
                    ``(A) have a nonpartisan and nondiscriminatory 
                membership that is broad and representative of the 
                economic, social, and political diversity of the State; 
                and
                    ``(B) carry out programs and activities in a manner 
                that reflects the diversity of the State.
            ``(3) Duties.--Each State rural development council shall--
                    ``(A) facilitate collaboration among Federal, 
                State, local, and tribal governments and the private 
                and nonprofit sectors in the planning and 
                implementation of programs and policies that target or 
                have an impact on rural areas of the State;
                    ``(B) enhance the effectiveness, responsiveness, 
                and delivery of Federal and State programs in rural 
                areas of the State;
                    ``(C) gather and provide to the Council and other 
                appropriate organizations information on the condition 
                of rural areas in the State;
                    ``(D) monitor and report on policies and programs 
                that address, or fail to address, the needs of the 
                rural areas of the State;
                    ``(E) facilitate the formulation of local needs 
                assessments for the rural areas of the State and 
                participate in the development of criteria for the 
                distribution of Federal funds to the rural areas of the 
                State;
                    ``(F) provide comments to the Council and other 
                appropriate organizations on policies, regulations, and 
                proposed legislation that affect or would affect the 
                rural areas of the State;
                    ``(G) in conjunction with the Council, facilitate 
                the development of strategies to reduce or eliminate 
                conflicting or duplicative administrative or regulatory 
                requirements of Federal, State, local, and tribal 
                governments;
                    ``(H) use grant or cooperative agreement funds 
                available to the Partnership to--
                            ``(i) retain an Executive Director and such 
                        support staff as are necessary to facilitate 
                        and implement the directives of the State rural 
                        development council; and
                            ``(ii) defray expenses associated with 
                        carrying out subparagraphs (A) through (G) and 
                        subparagraph (J);
                    ``(I) be authorized to solicit funds to supplement 
                and match funds granted under subparagraph (H); and
                    ``(J) be authorized to engage in all other 
                appropriate activities.
            ``(4) Comments or recommendations.--
                    ``(A) In general.--A State rural development 
                council may provide comments and recommendations to an 
                agency with rural responsibilities related to the 
                activities of the State rural development council 
                within the State.
                    ``(B) Agency.--The agency with rural 
                responsibilities shall provide to the State rural 
                development council a written response to the comments 
                or recommendations.
            ``(5) Actions of state rural development council members.--
        When carrying out a program or activity authorized by a State 
        rural development council, a member of the Council shall be 
        regarded as an employee of the Federal Government for purposes 
        of chapter 171 of title 28, United States Code.
            ``(6) Federal participation in state rural development 
        councils.--
                    ``(A) In general.--Subject to subparagraph (B), 
                Federal employees may participate in a State rural 
                development council.
                    ``(B) Conflicts.--A Federal employee who 
                participates in a State rural development council shall 
                not participate in the making of any council decision 
                if the agency represented by the Federal employee has 
                any financial or other interest in the outcome of the 
                decision.
                    ``(C) Federal guidance.--The Attorney General shall 
                issue guidance to all Federal employees that 
                participate in State rural development councils that 
                describes specific decisions that--
                            ``(i) would constitute a conflict of 
                        interest for the Federal employee; and
                            ``(ii) from which the Federal employee must 
                        recuse himself or herself.
    ``(e) Administration of the Partnership.--
            ``(1) Detail of employees.--In order to provide experience 
        in intergovernmental collaboration,  with the approval of the 
head of an agency with rural responsibilities that elects to 
participate in the Partnership, an employee of the agency with rural 
responsibilities is encouraged to be detailed to the Partnership 
without reimbursement, and such detail shall be without interruption or 
loss of civil service status or privilege.
            ``(2) Additional support.--The Secretary shall provide for 
        any additional support staff to the Partnership as the 
        Secretary determines to be necessary to carry out the duties of 
        the Partnership.
            ``(3) Panel.--
                    ``(A) In general.--A panel consisting of 
                representatives of the Council and State rural 
                development councils shall be established to lead and 
                coordinate the strategic operation, policies, and 
                practices of the Partnership.
                    ``(B) Annual reports.--In conjunction with the 
                Council and State rural development councils, the panel 
                shall prepare and submit to Congress an annual report 
                on the activities of the Partnership.
    ``(f) Funding.--
            ``(1) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are necessary to 
        carry out this section.
            ``(2) Federal agencies.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, in order to carry out the purposes 
                described in subsection (b)(2), the Partnership shall 
                be eligible to receive grants, gifts, contributions, or 
                technical assistance from, or enter into contracts 
                with, any Federal department or agency, to the extent 
                otherwise permitted by law.
                    ``(B) Assistance.--Federal departments and agencies 
                are encouraged to use funds made available for programs 
                that target or impact rural areas to provide assistance 
                to, and enter into contracts with, the Partnership, as 
                described in subparagraph (A).
            ``(3) Contributions.--The Partnership may accept private 
        contributions.
    ``(g) Matching Requirements for State Rural Development Councils.--
A State rural development council shall provide matching funds, or in-
kind goods or services, to support the activities of the State rural 
development council in an amount that is not less than 25 percent of 
the amount of Federal funds received under the agreement described in 
subsection (d)(1).
    ``(h) Termination.--The authority provided under this section shall 
terminate 5 years after the date of enactment of this section.''.

SEC. 11. ESTABLISHMENT OF NORTHERN NEW YORK TRAVEL AND TOURISM RESEARCH 
              CENTER.

    The Secretary of Agriculture shall make a grant to the William C. 
Merwin Rural Services Institute of the State University of New York at 
Potsdam, New York, for the establishment and operation of a Northern 
New York Travel and Tourism Research Center at the institute.
                                 <all>