[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2454 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 2454
To reauthorize and improve the program authorized by the Public Works
and Economic Development Act of 1965.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 12, 2003
Mr. LaTourette (for himself, Mr. Young of Alaska, Mr. Oberstar, and Ms.
Norton) (all by request) introduced the following bill; which was
referred to the Committee on Transportation and Infrastructure, and in
addition to the Committee on 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 improve the program authorized by the Public Works
and Economic 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.
Short Title.--This Act may be cited as the ``Economic Development
Administration Reauthorization Act of 2003''.
SEC. 2. FINDINGS AND DECLARATIONS.
Section 2 of the Public Works and Economic Development Act of 1965,
as amended (``PWEDA'') (42 U.S.C. 3121), is revised to read as follows:
``SEC. 2. FINDINGS AND DECLARATIONS.
``(a) Findings.--Congress finds that--
``(1) while the fundamentals for growth in the American
economy remain strong, there continue to be areas experiencing
chronic high unemployment, underemployment, low per capita
incomes, and outmigration as well as areas facing sudden and
severe economic dislocations due to structural economic
changes, changing trade patterns, certain Federal actions
(including environmental requirements that result in the
removal of economic activities from a locality), and natural
disasters;
``(2) sustained economic growth in our Nation, States,
cities and rural areas is produced by expanding free enterprise
through trade and enhanced competitiveness of regions;
``(3) the goal of Federal economic development programs is
to raise the standard of living for all citizens and increase
the wealth and overall rate of growth of the economy by
encouraging local and regional communities to develop a more
competitive and diversified economic base by:
``(A) promoting job creation through increased
innovation, productivity, and entrepreneurship; and
``(B) empowering local and regional communities
experiencing chronic high unemployment and low per
capita income to attract substantially increased
private-sector capital investment;
``(4) while economic development is an inherently local
process, the Federal Government should work in partnership with
public and private local, regional, tribal and State
organizations to maximize the impact of existing resources and
enable regions, communities, and citizens to participate more
fully in the American dream and national prosperity;
``(5) in order to avoid wasteful duplication of effort and
achieve meaningful, long-lasting results, Federal, State,
tribal and local economic development activities should have a
clear focus, improved coordination, a comprehensive approach,
common measures of success, and simplified and consistent
requirements; and
``(6) Federal economic development efforts will be more
effective if they are coordinated with, and build upon, the
trade, workforce investment, and technology programs of the
United States.
``(b) Declarations.--Congress declares that, in order to promote a
strong and growing economy throughout the United States:
``(1) assistance under this Act should be made available to
both rural and urban distressed communities;
``(2) local communities should work in partnership with
neighboring communities, Indian tribes, the States, and the
Federal Government to increase their capacity to develop and
implement comprehensive economic development strategies to
enhance regional competitiveness in the global economy and
support long-term development of regional economies; and
``(3) whether suffering from long-term distress or a sudden
dislocation, distressed communities should be encouraged to
focus on strengthening entrepreneurship and competitiveness,
and to take advantage of the development opportunities afforded
by technological innovation and expanding and newly opened
global markets.''.
SEC. 3. DEFINITIONS.
Section 3 of PWEDA (42 U.S.C. 3122) is amended as follows:
(1) Subparagraph (4)(A) of this section is amended by
striking subparagraph (i) and redesignating successive
subparagraphs (ii) through (vii) as (i) through (vi) and
revising subparagraph (iv) as re-designated to read as follows:
``(iv) a city or other political
subdivision of a State, including a special
purpose unit of State or local government, or a
consortium of political subdivisions;''.
(2) Subparagraph (4)(B) is amended by adding at the end
thereof a new sentence: ``The requirement under subparagraph
(A)(vi) that the nonprofit organization or association is
``acting in cooperation with officials of a political
subdivision of a State'' does not apply in the case of
research, training and technical assistance grants under
section 207 that are national or regional in scope.''.
(3) Paragraphs (8), (9) and (10) are amended by re-
designating them as paragraphs (9), (10), and (11) and a new
paragraph (8) is added as follows:
``(8) Regional commissions.--The term `Regional
Commissions' as used in section 403 of this Act refers to the
regional economic development authorities: the Delta Regional
Authority (Public Law No. 106-554, sec. 1(a)(4) [div. B, title
VI], 114 Stat. 2763A-268) (7 U.S.C. 2009aa et seq.), the Denali
Commission (Public Law No. 105-277, div. C, title III, 112
Stat. 2681-637) (42 U.S.C. 3121 note), and the Northern Great
Plains Regional Authority (Public Law No. 107-171, 116 Stat.
375) (7 U.S.C. 2009bb et seq.).''.
(4) A new paragraph (12) is added at the end to read as
follows:
``(12) University center.--The term `university center'
refers to a University Center for Economic Development
established pursuant to the authority of section 207(a)(2)(D)
of this Act.''.
SEC. 4. WORKING WITH NONPROFIT ORGANIZATIONS IN ESTABLISHMENT OF
ECONOMIC DEVELOPMENT PARTNERSHIPS.
Section 101 of PWEDA (42 U.S.C. 3131) is amended as follows:
(1) In subsection (b) strike ``and multi-State regional
organizations'' and insert in lieu thereof ``multi-State
regional organizations, and nonprofit organizations''.
(2) In subsection (d), strike ``adjoining'' each time it
occurs.
SEC. 5. SUB-GRANTS IN CONNECTION WITH PUBLIC WORKS PROJECTS.
Section 201 of PWEDA (42 U.S.C. 3141) is amended by adding a new
subsection (d) as follows:
``(d) Sub-Grants.--
``(1) Subject to paragraph (2), a recipient of a grant
under this section may directly expend the grant funds or may
redistribute the funds in the form of a sub-grant to other
recipients eligible to receive assistance under this section to
fund required components of the scope of work approved for the
project.
``(2) Under paragraph (1), a recipient may not redistribute
grant funds to a for-profit entity.''.
SEC. 6. CLARIFICATION OF GRANTS FOR STATE PLANNING.
Section 203 of PWEDA (42 U.S.C. 3143) is amended as follows:
(1) Revise paragraph (1) of subsection (d) to read as
follows:
``(1) Development.--Any State plan developed with
assistance under this section shall, to the maximum extent
practicable, take into consideration regional economic
development strategies.'';
(2) Strike paragraph (3) of subsection (d) in its entirety
and re-designate paragraphs (4) and (5) as (3) and (4);
(3) Revise re-designated paragraph (3) of subsection (d) by
striking ``and'' at the end of subparagraph (C) and re-
designating current subparagraph (D) as (E) and adding a new
subparagraph (D) to read as follows:
``(D) assist in carrying out state's workforce
investment strategy (as outlined in the State plan
required under section 112 of the Workforce Investment
Act of 1998 (29 U.S.C. 2822)); and'';
(4) Add a new subsection (e) at the end thereof as follows:
``(e) Sub-Grants.--
``(1) Subject to paragraph (2), a recipient of a grant
under this section may directly expend the grant funds or may
redistribute the funds in the form of a sub-grant to other
recipients eligible to receive assistance under this section to
fund required components of the scope of work approved for the
project.
``(2) Under paragraph (1), a recipient may not redistribute
grant funds to a for-profit entity.''.
SEC. 7. SIMPLIFICATION OF DETERMINATION OF GRANT RATES.
Sections 204 and 205 of PWEDA (42 U.S.C. 3144, 3145) are amended to
read as follows:
``SEC. 204. COST SHARING.
``(a) Federal Share.--The Secretary shall issue regulations to
establish the applicable grant rates for projects based on the relative
needs of the areas in which the projects are located. Except as
provided in subsection (c) below, the amount of a grant for a project
under this title may not exceed 80 percent of the cost of the project.
``(b) Non-Federal Share.--In determining the amount of the non-
Federal share of the cost of a project, the Secretary may provide
credit toward the non-Federal share for all contributions both in cash
and in-kind, fairly evaluated, including contributions of space,
equipment, and services, and assumptions of debt.
``(c) Increase in Federal Share.--
``(1) Indian tribes.--In the case of a grant to an Indian
tribe, the Secretary may increase the Federal share above the
percentage specified in subsection (a) up to 100 percent of the
cost of the project.
``(2) Certain states, political subdivisions, and nonprofit
organizations.--In the case of a grant to a State (or a
political subdivision of a State), that the Secretary
determines has exhausted its effective taxing and borrowing
capacity, or in the case of a grant to a nonprofit organization
that the Secretary determines has exhausted its effective
borrowing capacity, the Secretary may increase the Federal
share above the percentage specified in subsection (a) up to
100 percent of the cost of the project.
``SEC. 205. GRANTS SUPPLEMENTING OTHER AGENCY GRANTS (42 U.S.C. 3145).
``(a) Definition of Designated Federal Grant Program.--In this
section, the term `designated Federal grant program' means any Federal
grant program that--
``(1) provides assistance in the construction or equipping
of public works, public service, or development facilities;
``(2) is designated as eligible for an allocation of funds
under this section by the Secretary; and
``(3) assists projects that are--
``(A) eligible for assistance under this title; and
``(B) consistent with a comprehensive economic
development strategy.
``(b) Supplementary Grants.--Subject to subsection (c) below, in
order to assist eligible recipients to take advantage of designated
Federal grant programs, on the application of an eligible recipient,
the Secretary may make a supplementary grant for a project for which
the eligible recipient is eligible but, because of the recipient's
economic situation, for which the eligible recipient cannot provide the
required non-Federal share.
``(c) Requirements Applicable to Supplementary Grants.--
``(1) Amount of supplementary grants.--The share of the
project cost supported by a supplementary grant under this
section may not exceed the applicable grant rate under section
204.
``(2) Form of supplementary grants.--The Secretary shall
make supplementary grants by--
``(A) the payment of funds made available under
this Act to the heads of the Federal agencies
responsible for carrying out the applicable Federal
programs; or
``(B) the award of funds under this Act which will
be combined with funds transferred from other Federal
agencies in projects administered by the Secretary.
``(3) Federal share limitations specified in other laws.--
Notwithstanding any requirement as to the amount or source of
non-Federal funds that may be applicable to a Federal program,
funds provided under this section may be used to increase the
Federal share for specific projects under the program that are
carried out in areas described in section 301(a) above the
Federal share of the cost of the project authorized by the law
governing the program.''.
SEC. 8. REGULATIONS ON ALLOCATIONS TO ENSURE JOB CREATION POTENTIAL.
Subsection 206 of PWEDA (42 U.S.C. 3146) is amended by striking
``and'' at the end of subparagraph (1)(C), inserting ``and'' at the end
of paragraph (2), and adding a new paragraph (3) at the end thereof to
read as follows:
``(3) allocations of assistance under this title promote
job creation through increased innovation, productivity, and
entrepreneurship, and financial assistance extended pursuant to
such allocations will have a high probability of meeting or
exceeding applicable performance requirements established in
connection with extension of the assistance.''.
SEC. 9. INCREASED FLEXIBILITY IN GRANTS FOR TRAINING, RESEARCH, AND
TECHNICAL ASSISTANCE.
(a) Section 207 of PWEDA (42 U.S.C. 3147) is amended by striking
``and'' at the end of subparagraph (2)(F) of subsection (a), re-
designating current subparagraph (G) as (H), and adding a new
subparagraph (G) to read as follows:
``(G) studies that evaluate the effectiveness of
collaborations between projects funded under this Act
with projects funded under the Workforce Investment Act
of 1998 (29 U.S.C. 2801 et seq.); and''.
(b) Section 207 is further amended by adding a new subsection (c)
to read as follows:
``(c) Sub-Grants.--A recipient of a grant under this section may
directly expend the grant funds or may redistribute the funds in the
form of a sub-grant to other recipients eligible to receive assistance
under this section to fund required components of the scope of work
approved for the project.''.
SEC. 10. REMOVAL OF SECTION.
Section 208 of PWEDA (42 U.S.C. 3148) is stricken in its entirety
and insert in lieu thereof:
``SEC. 208. [REPEALED].''.
SEC. 11. IMPROVEMENTS IN ADMINISTRATION GRANTS FOR ECONOMIC ADJUSTMENT
INVOLVING REVOLVING LOAN FUND PROJECTS.
(a) Subsection (d) of section 209 of PWEDA (42 U.S.C. 3149) is
amended by striking ``an eligible'' in each case it occurs in
paragraphs (1) and (2) and inserting in lieu thereof ``a recipient''.
(b) Section 209 of PWEDA (42 U.S.C. 3149) is amended by adding a
new subsection (e) at the end thereof as follows:
``(e) Special Provisions Relating to Revolving Loan Fund Grants.--
The Secretary shall promulgate regulations to ensure the proper
operation and financial integrity of revolving loan funds established
by recipients with assistance under this section.
``(1) Efficient administration.--In order to improve the
ability to manage and administer the Federal interest in
revolving loan funds and in accordance with regulations issued
for such purposes, the Secretary may amend and consolidate
grant agreements governing revolving loan funds to provide
flexibility with respect to lending areas and borrower
criteria. In addition, the Secretary may assign or transfer
assets of a revolving loan fund to a third party for the
purpose of liquidation and a third party may retain assets of
the fund to defray costs related to liquidation. The Secretary
may also take such other actions with respect to management and
administration as the Secretary determines to be appropriate to
carry out the purposes of this Act, including actions to enable
revolving loan funds operators to sell or securitize loans to
the secondary market (except that such actions may not include
issuance of a Federal guaranty by the Secretary).
``(2) Release of federal interests.--The Secretary may
release, in whole or in part, any property interest in
connection with a revolving loan fund grant after the date that
is 20 years after the date on which the grant was awarded,
provided that the recipient--
``(A) is in compliance with the terms of its grant
and operating the fund at an acceptable level of
performance as determined by the Secretary; and
``(B) reimburses the government prior to the
release for the amount of the Secretary's investment in
the fund or the pro-rata share of the fund at the time
of the release, whichever is less.
Any action taken by the Secretary pursuant to this subsection with
respect to a revolving loan fund shall not constitute a new obligation
provided that all grant funds associated with the original grant award
have been disbursed to the recipient.''.
SEC. 12. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.
Section 211 of PWEDA (42 U.S.C. 3151) is amended to read as
follows:
``SEC. 211. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.
``In any case in which the Secretary has made a grant for a
construction project under sections 201 or 209 of this title, and
before closeout of the project, the Secretary determines that the cost
of the project based on the designs and specifications that were the
basis of the grant has decreased because of decreases in costs--
``(1) without further appropriations action, the Secretary
may approve the use of the excess funds or a portion of the
funds to improve the project; and
``(2) any amount of excess funds remaining after
application of paragraph (1) may be used for other investments
authorized for support under this Act.
In addition to paragraphs (1) and (2) of this section, in the event of
construction underruns in projects utilizing funds transferred from
other Federal agencies pursuant to section 604 of this Act, the
Secretary may utilize these funds in conjunction with paragraphs (1) or
(2) with the approval of the originating agency or will return the
funds to the originating agency.''.
SEC. 13. SPECIAL IMPACT AREAS.
Title II of PWEDA is further amended by adding a new section 214 as
follows:
``SEC. 214. SPECIAL IMPACT AREAS.
``The Secretary is authorized to make grants, enter into contracts
and provide technical assistance for projects and programs that the
Secretary finds will fulfill a pressing need of the area and be useful
in alleviating or preventing conditions of excessive unemployment or
underemployment or assist in providing useful employment opportunities
for the unemployed or underemployed residents in the area. In extending
assistance under this section, the Secretary may waive, in whole or in
part, as appropriate, the provisions of section 302 of this Act
provided that the Secretary determines that such assistance will carry
out the purposes of the Act.''.
SEC. 14. PERFORMANCE INCENTIVES.
Title II of PWEDA is further amended by adding a new section 215 as
follows:
``SEC. 215. PERFORMANCE INCENTIVES.
``(a) In accordance with regulations issued for such purposes, the
Secretary may award transferable performance credits in an amount that
does not exceed 10 percent of the grant amount awarded under sections
201 or 209 of this Act on or after the effective date of this
amendment. The Secretary shall base such performance incentives on the
extent to which a recipient meets or exceeds performance requirements
established in connection with extension of the assistance.
``(b) A recipient awarded a transferable performance credit under
this section may redeem the credit to increase the Federal share of a
subsequent grant funded under sections 201 and 209 of this Act above
the maximum Federal share allowable under section 204 up to 80 percent
of the project cost. A performance credit must be redeemed within 5
years of its issue date.
``(c) An original recipient may also sell or transfer the credit in
its entirety to another eligible recipient for use in connection with a
grant approved by the Secretary under this Act without reimbursement to
the Secretary for redemption in accordance with subsection (b) above.
``(d) The Secretary shall attach such terms and conditions or
limitations as the Secretary deems appropriate in issuing a performance
credit. Performance credits shall be paid out of appropriations for
economic development assistance programs made available in the year of
redemption to the extent of availability.
``(e) The Secretary shall include information regarding issuance of
performance credits in the annual report under section 603 of this
Act.''.
SEC. 15. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.
Subparagraph (a)(3)(A) of section 302 of PWEDA (42 U.S.C. 3162) is
amended by adding ``maximizes effective development and use of the
workforce (consistent with any applicable state and local workforce
investment strategy under the Workforce Investment Act of 1998 (29
U.S.C. 2801 et seq.),'' between ``access,'' and ``enhances''.
SEC. 16. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS.
Subparagraph (a)(3)(B) of section 401 of PWEDA (42 U.S.C. 3171) is
amended by striking ``by each affected State and''.
SEC. 17. DISTRICT INCENTIVES.
Section 403 of PWEDA (42 U.S.C. 3173) is amended by striking it in
its entirety and redesignating sections 404 and 405 as sections 403 and
404. Section 403 as re-designated is amended by adding at the end the
following new sentence: ``If any part of an economic development
district is in a region covered by one or more other Regional
Commissions as defined in section 3(8) of this Act, the economic
development district shall ensure that a copy of the comprehensive
economic development strategy of the district is provided to the
affected regional commission.''.
SEC. 18. ECONOMIC DEVELOPMENT INFORMATION CLEARINGHOUSE.
Section 502 of PWEDA (42 U.S.C. 3192) is amended to read as
follows:
``SEC. 502. ECONOMIC DEVELOPMENT INFORMATION CLEARINGHOUSE.
``In carrying out this Act, the Secretary shall--
``(1) maintain a central information clearinghouse on the
Internet with information on economic development, economic
adjustment, disaster recovery, defense conversion, and trade
adjustment programs and activities of the Federal Government,
links to State economic development organizations, and links to
other appropriate economic development resources;
``(2) assist potential and actual applicants for economic
development, economic adjustment, disaster recovery, defense
conversion, and trade adjustment assistance under Federal and
State laws in locating and applying for the assistance;
``(3) assist areas described in section 301(a) and other
areas by providing to interested persons, communities,
industries, and businesses in the areas any technical
information, market research, or other forms of assistance,
information, or advice that would be useful in alleviating or
preventing conditions of excessive unemployment or
underemployment in the areas; and
``(4) obtain appropriate information from other Federal
agencies needed to carry out the duties under this Act.''.
SEC. 19. REMOVAL OF UNUSED AUTHORITY.
Section 505 of PWEDA (42 U.S.C. 3195) is amended by striking it in
its entirety and sections 506 and 507 are re-designated as sections 505
and 506.
SEC. 20. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.
Section 505 of PWEDA (42 U.S.C. 3196) as re-designated is amended
as follows:
(1) In subsection (c), strike ``after the effective date of
the Economic Development Administration Reform Act of 1998''.
(2) In paragraph (d)(2), strike ``and'' before
``disseminating results'' and insert ``, and measuring the
outcome-based results of the university centers' activities''
before the period at the end thereof.
(3) In paragraph (d)(3) of section 506, insert before the
period at the end thereof ``as evidenced by outcome-based
results, including the number of jobs created or retained, and
amount of private-sector funds leveraged''.
(4) In subsection (e) of section 506, strike ``university
center or'' each occasion it occurs.
SEC. 21. CITATION CORRECTIONS.
Section 602 PWEDA (42 U.S.C. 3212) is amended by striking the
citations to ``40 U.S.C. 276A--276A-5'' and ``section 276c'' and
inserting in lieu thereof, ``40 U.S.C. 3141 et seq.'' and ``section
3154'', respectively.
SEC. 22. DELETION OF UNNECESSARY PROVISION.
Section 609 of PWEDA (42 U.S.C. 3219) is amended by striking
subsection (a) in its entirety and striking the subsection designation
``(b)''.
SEC. 23. GENERAL AUTHORIZATION OF APPROPRIATIONS.
Section 701 of PWEDA (42 U.S.C. 3231) is amended to read as
follows:
``SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.
``(a) Economic Development Assistance Programs.--There are
authorized to be appropriated for economic development assistance
programs to carry out this Act $331,027,000 for fiscal year 2004, and
such sums as may be necessary for fiscal years 2005, 2006, 2007, and
2008, to remain available until expended.
``(b) Salaries and Expenses.--There are authorized to be
appropriated for salaries and expenses of administering this Act
$33,377,000 for fiscal year 2004, and such sums as may be necessary for
each of the fiscal years from 2005 through 2008, to remain available
until expended.''.
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