[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 527 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 527

   To establish the Southern Regional Commission for the purpose of 
breaking the cycle of persistent poverty among the southeastern States.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 5, 2003

  Mr. Miller introduced the following bill; which was read twice and 
       referred to the Committee on Environment and Public Works

_______________________________________________________________________

                                 A BILL


 
   To establish the Southern Regional Commission for the purpose of 
breaking the cycle of persistent poverty among the southeastern States.

    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 ``Southern Regional Commission Act of 
2003''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the rural southeast has been historically marked by 
        high poverty rates, low education levels, poor economic 
        conditions, and poor quality of life, for individuals of all 
        ages;
            (2) recent studies--
                    (A) have documented the social costs of persistent 
                poverty;
                    (B) have documented that the rural southeast--
                            (i) experiences greater levels of overall 
                        poverty than the Appalachian region or the 
                        Delta region; but
                            (ii) has not been made the subject of a 
                        focused Federal program to address poverty; and
                    (C) argue for the need for a governmental 
                commission to build on the efforts of States, local 
                governments, and community-based entities to focus on 
                ending persistent poverty and building wealth;
            (3) the structure of the Appalachian Regional Commission 
        serves as a successful model for building wealth and improving 
        the conditions of communities that suffer from persistent 
        poverty; and
            (4) a commission for the rural southeast established on the 
        model of the Appalachian Regional Commission is critical--
                    (A) to address the gaps in education, health, 
                housing, transportation, technology, and infrastructure 
                in the southeastern poverty belt; and
                    (B) to break the cycle of persistent poverty in the 
                region.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Commission.--The term ``Commission'' means the Southern 
        Regional Commission established by section 4(a).
            (2) Federal grant program.--The term ``Federal grant 
        program'' means a Federal grant program to provide assistance 
        in carrying out economic and community development activities.
            (3) Local development district.--The term ``local 
        development district'' means an entity that--
                    (A) is designated by the State and is--
                            (i) a planning district in existence on the 
                        date of enactment of this Act that is 
                        recognized by the Economic Development 
                        Administration of the Department of Commerce; 
                        or
                            (ii) a special district that is--
                                    (I) designated after consultation 
                                with each appropriate State agency and 
                                the Governor; and
                                    (II) responsible for addressing the 
                                causes and effects of persistent 
                                poverty; and
                    (B) has not, as certified by the Federal 
                cochairperson--
                            (i) inappropriately used Federal grant 
                        funds from any Federal source; or
                            (ii) appointed an officer who, during the 
                        period in which another entity inappropriately 
                        used Federal grant funds from any Federal 
                        source, was an officer of the other entity.
            (4) Nonprofit entity.--The term ``nonprofit entity'' means 
        any entity with tax-exempt or nonprofit status (as determined 
        by the Internal Revenue Service) that--
                    (A) has been formed for the purpose of economic 
                development; or
                    (B) has a proven record of economic development 
                experience.
            (5) Region.--The term ``region'' means the area consisting 
        of--
                    (A) in the State of Alabama, the counties of 
                Barbour, Bullock, Butler, Choctaw, Clarke, Coffee, 
                Conecuh, Covington, Crenshaw, Dale, Dallas, Escambia, 
                Geneva, Greene, Henry, Houston, Lee, Lowndes, Marengo, 
                Monroe, Perry, Pike, Russell, Sumter, Washington, and 
                Wilcox;
                    (B) in the State of Florida, the counties of 
                Alachua, Baker, Bay, Bradford, Calhoun, Columbia, 
                Dixie, Franklin, Gadsden, Gilchrist, Gulf, Hamilton, 
                Holmes, Jackson, Jefferson, Lafayette, Leon, Levy, 
                Liberty, Madison, Putnam, Suwannee, Taylor, Union, 
                Walton, and Washington;
                    (C) in the State of Georgia, the counties of 
                Appling, Atkinson, Bacon, Baker, Baldwin, Ben Hill, 
                Berrien, Bleckley, Brantley, Brooks, Bulloch, Burke, 
                Calhoun, Candler, Charlton, Clarke, Clay, Clinch, 
                Coffee, Colquit, Cook, Crawford, Crisp, Decatur, Dodge, 
                Dooly, Dougherty, Early, Echols, Emanuel, Evans, 
                Glascock, Glynn, Grady, Greene, Hancock, Irwin, Jasper, 
                Jeff Davis, Jefferson, Jenkins, Johnson, Lanier, 
                Laurens, Liberty, Lincoln, Long, Lowndes, Macon, 
                Marion, McDuffie, McIntosh, Meriwether, Miller, 
                Mitchell, Montgomery, Oglethorpe, Peach, Pierce, 
                Pulaski, Putnam, Quitman, Randolph, Schley, Screven, 
                Seminole, Stewart, Sumter, Talbot, Taliaferro, 
                Tattnall, Taylor, Telfair, Terrell, Thomas, Tift, 
                Toombs, Treutlen, Troup, Turner, Twiggs, Ware, Warren, 
                Washington, Wayne, Webster, Wheeler, Wilcox, Wilkes, 
                Wilkinson, and Worth;
                    (D) in the State of Mississippi, the counties of 
                Clarke, Forrest, George, Greene, Hancock, Jasper, 
                Jones, Lamar, Lauderdale, Leake, Neshoba, Newton, Pearl 
                River, Perry, Scott, Smith, Stone, and Wayne;
                    (E) in the State of North Carolina, the counties of 
                Anson, Beaufort, Bertie, Bladen, Caswell, Chowan, 
                Columbus, Craven, Duplin, Edgecombe, Gates, Greene, 
                Halifax, Harnett, Hertford, Hoke, Hyde, Jones, Lenoir, 
                Martin, Montgomery, Nash, New Hanover, Northampton, 
                Pamilco, Pasquotank, Pender, Perquimans, Pitt, 
                Richmond, Robeson, Sampson, Scotland, Tyrrell, Vance, 
                Warren, Washington, Wayne, and Wilson;
                    (F) in the State of South Carolina, the counties of 
                Abbeville, Allendale, Bamberg, Barnwell, Calhoun, 
                Chester, Chesterfield, Clarendon, Colleton, Darlington, 
                Dillon, Edgefield, Fairfield, Florence, Georgetown, 
                Greenwood, Hampton, Jasper, Lee, Marion, Marlboro, 
                McCormick, Newberry, Orangeburg, Saluda, Sumter, Union, 
                and Williamsburg; and
                    (G) in the State of Virginia, the counties of 
                Brunswick, Buckingham, Charlotte, Cumberland, Danville, 
                Emporia, Greensville, Halifax, Lunenburg, Mecklenburg, 
                Nottoway, Prince Edward, Southampton, and Sussex.

SEC. 4. SOUTHERN REGIONAL COMMISSION.

    (a) Establishment.--
            (1) In general.--There is established the Southern Regional 
        Commission.
            (2) Composition.--The Commission shall be composed of--
                    (A) a Federal member, to be appointed by the 
                President, by and with the advice and consent of the 
                Senate; and
                    (B) State members, who shall consist of the 
                Governor of each State in the region that elects to 
                participate in the Commission.
            (3) Cochairpersons.--The Commission shall be headed by--
                    (A) the Federal member, who shall serve--
                            (i) as the Federal cochairperson; and
                            (ii) as a liaison between the Federal 
                        Government and the Commission; and
                    (B) a State cochairperson, who shall be--
                            (i) a Governor of a State described in 
                        paragraph (2)(B); and
                            (ii) elected by the State members for a 
                        term of not less than 1 year.
    (b) Alternate Members.--
            (1) Alternate federal cochairperson.--The President shall 
        appoint an alternate Federal cochairperson.
            (2) State alternate members.--
                    (A) Appointment.--The State member of a State 
                described in subsection (a)(2)(B) may have a single 
                alternate member, who shall be appointed by the 
                Governor of the State from among the cabinet or 
                personal staff of the Governor.
                    (B) Voting.--An alternate member shall vote in the 
                event of the absence, death, disability, removal, or 
                resignation of the member for whom the individual is an 
                alternate member.
            (3) Quorum.--
                    (A) In general.--Subject to subparagraphs (B) and 
                (C), the Commission shall determine what constitutes a 
                quorum of the Commission.
                    (B) Federal cochairperson.--To establish a quorum 
                of the Commission, the Federal cochairperson or a 
                designee of the Federal cochairperson shall be present.
                    (C) State alternate members.--A State alternate 
                member shall not be counted toward the establishment of 
                a quorum of the Commission.
            (4) Delegation of power.--No power or responsibility of the 
        Commission specified in paragraph (3) or (4) of subsection (c), 
        and no voting right of any member of the Commission, shall be 
        delegated to any individual who--
                    (A) is not a Commission member; or
                    (B) is not entitled to vote in Commission meetings.
    (c) Decisions.--
            (1) Requirements for approval.--Except as provided in 
        subsection (g), each decision by the Commission shall require 
        the affirmative vote of the Federal cochairperson and a 
        majority of the State members, excluding members representing 
States delinquent under subsection (g)(2)(C).
            (2) Consultation.--In any matter coming before the 
        Commission, the Federal cochairperson, to the maximum extent 
        practicable, shall consult with Federal agencies having an 
        interest in the matter.
            (3) Decisions requiring quorum of state members.--The 
        following decisions may not be made without a quorum of State 
        members:
                    (A) A decision involving Commission policy.
                    (B) Approval of a State, regional, or subregional 
                development plan or strategy statement.
                    (C) Modification or revision of the code of the 
                Commission.
                    (D) Allocation among the States of amounts made 
                available under this Act.
            (4) Project and grant proposals.--The approval of project 
        and grant proposals shall be--
                    (A) a responsibility of the Commission; and
                    (B) carried out in accordance with section 10.
    (d) Duties.--The Commission shall--
            (1) develop, on a continuing basis, giving due 
        consideration to other Federal, State, and local planning and 
        development activities in the region, comprehensive and 
        coordinated plans and programs to establish priorities and 
        approve grants aimed at breaking the cycle of persistent 
        poverty by increasing the capacity of individuals--
                    (A) to participate in the economy; and
                    (B) to build wealth;
            (2) not later than 1 year after the date of enactment of 
        this Act, establish priorities in a targeted strategy for the 
        region (including 5-year outcome targets for the region);
            (3)(A) use the findings of Phase I of the Study on 
        Persistent Poverty in the South, prepared by the University of 
        Georgia and dated 2002; and
            (B) assess any needs and capital assets of the region that 
        are not addressed by the study referred to in subparagraph (A) 
        based on available research, demonstration projects, 
        assessments, and evaluations of the region prepared by--
                    (i) Federal, State, or local agencies;
                    (ii) private nonprofit entities focused on 
                development of the region, such as the Southern Growth 
                Policies Board;
                    (iii) local development districts;
                    (iv) local community-based entities and 
                collaboratives;
                    (v) institutions of higher education; or
                    (vi) any other relevant source;
            (4) enhance the capacity of, and provide support for, local 
        development districts in the region;
            (5) support and enhance State resources and activities 
        designed to address persistent poverty;
            (6) promote multijurisdictional efforts at the local level 
        intended to maximize local resources;
            (7) support community-based efforts designed to address 
        persistent poverty;
            (8) encourage private investment in industrial, commercial, 
        and other economic development projects in the region; and
            (9) engage land-grant colleges and universities (as defined 
        in section 1404 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)) to 
        provide research support for each State included in the region.
    (e) Administration.--In carrying out subsection (d), the Commission 
may--
            (1) hold such hearings, sit and act at such times and 
        places, take such testimony, receive such evidence, and print 
        or otherwise reproduce and distribute a description of the 
        proceedings of, and reports on actions by, the Commission as 
        the Commission considers appropriate;
            (2) authorize, through the Federal or State cochairperson 
        or any other member of the Commission designated by the 
        Commission, the administration of oaths, if the Commission 
        determines that testimony should be taken or evidence received 
        under oath;
            (3) request from any Federal, State, or local agency such 
        information as is available to or procurable by the agency and 
        may be of use to the Commission in carrying out the duties of 
        the Commission;
            (4) adopt, amend, and repeal bylaws and rules governing the 
        conduct of the business of the Commission and the performance 
        of the duties of the Commission;
            (5) request the head of any Federal agency to detail to the 
        Commission such personnel as the Commission requires to carry 
        out the duties of the Commission, each such detail to be 
        without loss of seniority, pay, or other employee status;
            (6) request the head of any State agency or local 
        government to detail to the Commission such personnel as the 
        Commission requires to carry out the duties of the Commission, 
        each such detail to be without loss of seniority, pay, or other 
        employee status;
            (7) provide for coverage of Commission employees in a 
        suitable retirement and employee benefit system by--
                    (A) making arrangements or entering into contracts 
                with any State government of a State in the region that 
                elects to participate in the Commission; or
                    (B) otherwise providing retirement and other 
                employee benefit coverage;
            (8) accept, use, and dispose of gifts or donations of 
        services or real, personal, tangible, or intangible property;
            (9) enter into and perform such contracts or other 
        transactions as are necessary to carry out the duties of the 
        Commission;
            (10) establish and maintain a central office located within 
        the region and field offices at such locations as the 
        Commission may select; and
            (11) provide for an appropriate level of representation in 
        Washington, District of Columbia.
    (f) Federal Agency Cooperation.--A Federal agency shall--
            (1) cooperate with the Commission; and
            (2) provide, on request of the Federal cochairperson, 
        appropriate assistance in carrying out this Act, in accordance 
        with applicable Federal laws (including regulations).
    (g) Administrative Expenses.--
            (1) In general.--Administrative expenses of the Commission 
        (other than the expenses of the Federal cochairperson, 
        including expenses of the alternate Federal cochairperson and 
        the staff of the Federal cochairperson, which shall be paid 
        solely by the Federal Government) shall be paid--
                    (A) by the Federal Government, in an amount equal 
                to 50 percent of the administrative expenses; and
                    (B) by the States in the region that elect to 
                participate in the Commission, in an amount equal to 50 
                percent of the administrative expenses.
            (2) State share.--
                    (A) In general.--The share of administrative 
                expenses of the Commission to be paid by each State 
                shall be determined by the Commission.
                    (B) No federal participation.--The Federal 
                cochairperson shall not participate or vote in any 
                decision under subparagraph (A).
                    (C) Delinquent states.--During any period in which 
                a State is delinquent in payment of the State's share 
                of administrative expenses of the Commission under this 
                subsection--
                            (i) no assistance under this Act shall be 
                        provided to the State (including assistance to 
                        a political subdivision or a resident of the 
                        State); and
                            (ii) no member of the Commission from the 
                        State shall participate or vote in any action 
                        by the Commission.
    (h) Compensation.--
            (1) Federal cochairperson.--The Federal cochairperson shall 
        be compensated by the Federal Government at the annual rate of 
        basic pay prescribed for level III of the Executive Schedule 
        under section 5314 of title 5, United States Code.
            (2) Alternate federal cochairperson.--The alternate Federal 
        cochairperson--
                    (A) shall be compensated by the Federal Government 
                at the annual rate of basic pay prescribed for level V 
                of the Executive Schedule under section 5316 of title 
                5, United States Code; and
                    (B) when not actively serving as an alternate for 
                the Federal cochairperson, shall perform such functions 
                and duties as are delegated by the Federal 
                cochairperson.
            (3) State members and alternate state members.--
                    (A) In general.--A State shall compensate each 
                member and alternate member representing the State on 
                the Commission at the rate established by State law.
                    (B) No additional compensation.--No State member or 
                alternate State member shall receive any salary, or any 
                contribution to or supplementation of salary, for 
                services provided by the member or alternate member to 
                the Commission from any source other than the State.
            (4) Detailed personnel.--
                    (A) State detailees.--
                            (i) In general.--No individual detailed to 
                        the Commission under subsection (e)(6) shall 
                        receive any salary, or any contribution to or 
                        supplementation of salary, for services 
                        provided to the Commission from--
                                    (I) any source other than the 
                                State, local, or intergovernmental 
                                agency from which the individual was 
                                detailed; or
                                    (II) the Commission.
                            (ii) Violation.--Any individual that 
                        violates this subparagraph shall be fined not 
                        more than $5,000, imprisoned not more than 1 
                        year, or both.
                    (B) Federal personnel.--The Federal cochairperson, 
                the alternate Federal cochairperson, and any Federal 
                officer or employee detailed to the Commission under 
                subsection (e)(5) shall be subject to sections 202 
                through 209 of title 18, United States Code.
            (5) Additional personnel.--
                    (A) Compensation.--
                            (i) In general.--Subject to clause (ii), 
                        the Commission may appoint and fix the 
compensation of an executive director and such other personnel as are 
necessary to enable the Commission to carry out the duties of the 
Commission.
                            (ii) Maximum compensation.--Compensation 
                        under clause (i) shall not exceed 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 that title.
                    (B) Executive director.--The executive director 
                shall be responsible for--
                            (i) carrying out the administrative duties 
                        of the Commission;
                            (ii) directing the Commission staff; and
                            (iii) carrying out such other duties as the 
                        Commission may assign.
                    (C) Federal employee status.--No member, alternate 
                member, officer, or employee of the Commission (except 
                the Federal cochairperson of the Commission, the 
                alternate Federal cochairperson, staff for the Federal 
                cochairperson, and any Federal officer or employee 
                detailed to the Commission under subsection (e)(5)) 
                shall be considered to be a Federal employee for any 
                purpose.
    (i) Conflicts of Interest.--
            (1) In general.--Except as provided under paragraph (2), no 
        State member, alternate State member, officer, or employee of 
        the Commission shall participate personally and substantially 
        as a member, alternate member, officer, or employee of the 
        Commission, through decision, approval, disapproval, 
        recommendation, the rendering of advice, investigation, or 
        otherwise, in any proceeding, application, request for a ruling 
        or other determination, contract, claim, controversy, or other 
        matter in which, to knowledge of the member, alternate member, 
        officer, or employee, any of the following persons has a 
        financial interest:
                    (A) The member, alternate member, officer, or 
                employee.
                    (B) The spouse, minor child, partner, or 
                organization (other than a State or political 
                subdivision of the State) of the member, alternate 
                member, officer, or employee, in which the member, 
                alternate member, officer, or employee is serving as 
                officer, director, trustee, partner, or employee.
                    (C) Any individual or organization with whom the 
                member, alternate member, officer, or employee is 
                negotiating or has any arrangement concerning 
                prospective employment.
            (2) Disclosure.--Paragraph (1) shall not apply if the State 
        member, alternate State member, officer, or employee--
                    (A) immediately advises the Commission of the 
                nature and circumstances of the proceeding, 
                application, request for a ruling or other 
                determination, contract, claim, controversy, or other 
                particular matter presenting a potential conflict of 
                interest;
                    (B) makes full disclosure of the financial 
                interest; and
                    (C) before the proceeding concerning the matter 
                presenting the conflict of interest, receives a written 
                determination by the Commission that the interest is 
                not so substantial as to be likely to affect the 
                integrity of the services that the Commission may 
                expect from the State member, alternate State member, 
                officer, or employee.
            (3) Violation.--Any person that violates this subsection 
        shall be fined not more than $10,000, imprisoned not more than 
        2 years, or both.
    (j) Validity of Contracts, Loans, and Grants.--The Commission may 
declare void any contract, loan, or grant of the Commission in relation 
to which the Commission determines that there has been a violation of 
subsection (h)(4), subsection (i), or any of sections 202 through 209 
of title 18, United States Code.

SEC. 5. COMMUNITY AND ECONOMIC DEVELOPMENT GRANTS.

    (a) In General.--The Commission may approve grants to States and 
public and nonprofit entities for projects, approved in accordance with 
section 10--
            (1) to increase the capacity of individuals in the region 
        to participate in the economy through improvements in 
        education, health care, and other factors that are essential 
        for the development of full human potential;
            (2) to assist the region in obtaining job training, 
        employment-related education, and business development;
            (3) to develop the infrastructure of the region for the 
        purpose of facilitating economic development in the region 
        (except that grants for this purpose may be made only to a 
        State or local government); and
            (4) to otherwise achieve the purposes of this Act.
    (b) Funding.--
            (1) In general.--Funds for grants under subsection (a) may 
        be provided--
                    (A) entirely from appropriations to carry out this 
                section;
                    (B) in combination with funds available under 
                another Federal or State grant program; or
                    (C) from any other source.
            (2) Eligible projects.--The Commission may provide 
        assistance to, make grants to, enter into contracts with, or 
        otherwise provide funds to eligible entities in the region for 
        projects that promote--
                    (A) opportunities for life-long learning;
                    (B) access to health care;
                    (C) job training or employment-related education;
                    (D) business development;
                    (E) affordable housing;
                    (F) local leadership development;
                    (G) basic public infrastructure, including high-
                tech infrastructure; and
                    (H) other efforts to reverse persistent poverty in 
                the region.

SEC. 6. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

    (a) Federal Grant Program Funding.--Notwithstanding any provision 
of law limiting the Federal share, the areas eligible for assistance, 
or the authorizations of appropriations, under any Federal grant 
program, and in accordance with subsection (b), the Federal 
cochairperson may, with respect to a project to be carried out in the 
region--
            (1) increase the Federal share of the costs of a project 
        under any Federal grant program to not more than 80 percent; 
        and
            (2) use amounts made available to carry out this Act to pay 
        all or a portion of the increased Federal share.
    (b) Certification.--In the case of any project for which all or any 
portion of the Federal share of the costs of the project is proposed to 
be paid under this section, no Federal contribution shall be made until 
the Federal official administering the Federal law that authorizes the 
Federal grant program certifies that the project--
            (1) meets (except as provided in subsection (a)) the 
        applicable requirements of the applicable Federal grant 
        program; and
            (2) could be approved for Federal contribution under the 
        Federal grant program if funds were available under the law for 
        the project.
    (c) Certification by Commission.--The certifications and 
determinations required to be made by the Commission for approval of 
projects under this Act in accordance with section 10--
            (1) shall be controlling; and
            (2) shall be accepted by Federal agencies.
    (d) Acceptance by Federal Cochairperson.--In the case of any 
project described in subsection (b), any finding, report, 
certification, or documentation required to be submitted with respect 
to the project to the head of the agency or instrumentality of the 
Federal Government responsible for the administration of the Federal 
grant program under which the project is carried out shall be accepted 
by the Federal cochairperson.

SEC. 7. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND ADMINISTRATIVE 
              EXPENSES.

    (a) Grants to Local Development Districts.--
            (1) In general.--The Commission may make grants to local 
        development districts to pay the administrative expenses of the 
        local development districts.
            (2) Conditions for grants.--
                    (A) Maximum amount.--The amount of any grant 
                awarded under paragraph (1) shall not exceed 80 percent 
                of the administrative expenses of the local development 
                district receiving the grant.
                    (B) Local development district share.--The local 
                development district share of the administrative 
                expenses may be provided in cash or in kind, fairly 
                evaluated, including space, equipment, and services.
    (b) Duties of Local Development Districts.--A local development 
district shall--
            (1) operate as a lead organization serving multicounty 
        areas in the region at the local level; and
            (2) serve as a liaison between State and local governments, 
        nonprofit entities (including community-based groups and 
        educational institutions), the business community, and citizens 
        that--
                    (A) are involved in multijurisdictional planning;
                    (B) provide technical assistance to local 
                jurisdictions and potential grantees; and
                    (C) provide leadership and civic development 
                assistance.

SEC. 8. DEVELOPMENT PLANNING PROCESS.

    (a) State Development Plan.--In accordance with policies 
established by the Commission, each State member shall submit to the 
Commission a development plan for the area of the region represented by 
the State member.
    (b) Content of Plan.--A State development plan submitted under 
subsection (a) shall reflect the goals, objectives, and priorities 
identified in the regional development plan developed under section 
4(d)(2).
    (c) Consultation.--In carrying out the development planning 
process, a State shall--
            (1) consult with--
                    (A) local development districts;
                    (B) units of local government;
                    (C) institutions of higher learning;
                    (D) nonprofit entities (including community-based 
                groups and private entities focused on development of 
                the region, such as the Southern Growth Policies 
                Board);
                    (E) the business community; and
                    (F) citizens; and
            (2) take into consideration the goals, objectives, 
        priorities, and recommendations of the entities described in 
        paragraph (1).
    (d) Public Participation.--The Commission and applicable State and 
local development districts shall encourage and assist, to the maximum 
extent practicable, public participation in the development, revision, 
and implementation of all plans and programs under this Act.
    (e) Annual Strategy Statement.--Not later than December 15 of each 
year, the Governor of each State in the region shall submit to the 
Commission a strategy statement describing the program of the State for 
achieving the goals and objectives identified in the State development 
plan of the State submitted under subsection (a).

SEC. 9. PROGRAM DEVELOPMENT CRITERIA.

    (a) In General.--In considering projects to be assisted under this 
Act, and in establishing a priority ranking of the requests for 
assistance provided by the Commission, the Commission shall follow 
procedures that ensure, to the maximum extent practicable, 
consideration of--
            (1) the relationship of the project to overall development 
        of the region;
            (2) the per capita income and poverty and unemployment 
        rates and other socioeconomic indicators in an area;
            (3) the financial resources available to the applicants for 
        assistance seeking to carry out the project, with emphasis on 
        ensuring that projects are adequately financed to maximize the 
        probability of successful economic development;
            (4) the importance of the project in relation to other 
        projects that may be in competition for the same funds;
            (5) the prospects that the project for which assistance is 
        sought will improve, on a continuing rather than a temporary 
        basis, the opportunities for employment, the average level of 
        income, or the economic development of the area to be served by 
        the project; and
            (6) the extent to which the design of the project provides 
        for detailed outcome measurements by which grant expenditures 
        and the results of the expenditures may be evaluated.
    (b) No Relocation Assistance.--No financial assistance authorized 
by this Act shall be used to assist an entity in relocating from 1 area 
to another.
    (c) Maintenance of Effort.--Funds may be provided for a project in 
a State under this Act only if the Commission determines that the level 
of Federal or State financial assistance provided under a law other 
than this Act, for the same type of project in the same area of the 
State within the region, will not be reduced as a result of funds made 
available by this Act.

SEC. 10. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.

    (a) In General.--A State or regional development plan or a 
multistate subregional plan that is proposed for development under this 
Act shall be reviewed by the Commission.
    (b) Evaluation by State Member.--An application for a grant or any 
other assistance for a project under this Act shall be made through, 
and evaluated for approval by, the State member of the Commission 
representing the applicant.
    (c) Certification.--An application for a grant or other assistance 
for a project shall be approved only on certification by the State 
member and the Federal cochairperson that the application for the 
project--
            (1) describes ways in which the project complies with any 
        applicable State development plan;
            (2) meets applicable criteria under section 9;
            (3) provides adequate assurance that the proposed project 
        will be properly administered, operated, and maintained; and
            (4) otherwise meets the requirements of this Act.
    (d) Votes for Decisions.--On certification of an application for a 
grant or other assistance for a specific project under this section, an 
affirmative vote of the Commission under section 4(c) shall be required 
for approval of the application.

SEC. 11. CONSENT OF STATES.

    Nothing in this Act requires any State to engage in or accept any 
program under this Act without the consent of the State.

SEC. 12. RECORDS.

    (a) Records of the Commission.--
            (1) In general.--The Commission shall maintain accurate and 
        complete records of all transactions and activities of the 
        Commission.
            (2) Availability.--All records of the Commission shall be 
        available for audit and examination by the Comptroller General 
        of the United States (including authorized representatives of 
        the Comptroller General).
    (b) Records of Recipients of Federal Assistance.--
            (1) In general.--A recipient of Federal funds under this 
        Act shall, as required by the Commission--
                    (A) maintain accurate and complete records of 
                transactions and activities financed with Federal 
                funds; and
                    (B) submit to the Commission reports on the 
                transactions and activities.
            (2) Availability.--All records required under paragraph (1) 
        shall be available for audit by the Comptroller General of the 
        United States and the Commission (including authorized 
        representatives of the Comptroller General and the Commission).

SEC. 13. ANNUAL REPORT.

    Not later than 180 days after the end of each fiscal year, the 
Commission shall submit to the President and to Congress a report 
describing the activities carried out under this Act in the fiscal 
year.

SEC. 14. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated to the 
Commission to carry out this Act $20,000,000 for each of fiscal years 
2004 through 2008, to remain available until expended.
    (b) Administrative Expenses.--Not more than 5 percent of the amount 
appropriated under subsection (a) for a fiscal year shall be used for 
administrative expenses of the Commission.

SEC. 15. TERMINATION OF AUTHORITY.

    The authority provided by this Act terminates effective October 1, 
2008.
                                 <all>