[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5742 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 5742

         To establish the Southwest Regional Border Authority.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 29, 2006

  Mr. Reyes 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 establish the Southwest Regional Border Authority.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Southwest Regional 
Border Authority Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
              TITLE I--SOUTHWEST REGIONAL BORDER AUTHORITY

Sec. 101. Membership and voting.
Sec. 102. Duties and powers.
Sec. 103. Authority personnel matters.
               TITLE II--GRANTS AND DEVELOPMENT PLANNING

Sec. 201. Infrastructure development and improvement.
Sec. 202. Technology development.
Sec. 203. Community development and entrepreneurship.
Sec. 204. Education and workforce development.
Sec. 205. Funding.
Sec. 206. Supplements to Federal grant programs.
Sec. 207. Demonstration projects.
Sec. 208. Local development districts; certification and administrative 
                            expenses.
Sec. 209. Distressed counties and areas and economically strong 
                            counties.
Sec. 210. Development planning process.
                       TITLE III--ADMINISTRATION

Sec. 301. Program development criteria.
Sec. 302. Approval of development plans and projects.
Sec. 303. Consent of States.
Sec. 304. Records.
Sec. 305. Annual report.
Sec. 306. Authorization of appropriations.
Sec. 307. Termination of authority.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) a rapid increase in population in the Southwest border 
        region is placing a significant strain on the infrastructure of 
        the region, including transportation, water and wastewater, 
        public health, and telecommunications;
            (2) 20 percent of the residents of the region have incomes 
        below the poverty level;
            (3) unemployment rates in counties in the region are up to 
        5 times the national unemployment rate;
            (4) per capita personal income in the region is 
        significantly below the national average and much of the income 
        in the region is distributed through welfare programs, 
        retirement programs, and unemployment payments;
            (5) a lack of adequate access to capital in the region--
                    (A) has created economic disparities between 
                communities in the region and communities outside the 
                region; and
                    (B) has made it difficult for businesses to start 
                up in the region;
            (6) it has been difficult for displaced workers in the 
        region to find employment because many workers--
                    (A) have limited English language proficiency; and
                    (B) lack adequate English language and job 
                training;
            (7) many residents of the region live in communities 
        referred to as ``colonias'' that lack basic necessities, 
        including running water, sewers, storm drainage, and 
        electricity;
            (8) many of the problems that exist in the region could be 
        solved or ameliorated by technology that would contribute to 
        economic development in the region;
            (9) while numerous Federal, State, and local programs 
        target financial resources to the region, those programs are 
        often uncoordinated, duplicative, and, in some cases, 
        unavailable to eligible border communities because those 
        communities cannot afford the required funding match;
            (10) Congress has established several regional economic 
        development commissions, including the Appalachian Regional 
        Commission, the Delta Regional Authority, and the Denali 
        Commission, to improve the economies of those areas of the 
        United States that experience the greatest economic distress; 
        and
            (11) many of the counties in the region are among the most 
        economically distressed in the United States and would benefit 
        from a regional economic development commission.
    (b) Purposes.--The purposes of this Act are--
            (1) to establish a regional economic development authority 
        for the Southwest Border region to address critical issues 
        relating to the economic health and well-being of the residents 
        of the region;
            (2) to provide funding to communities in the region to 
        stimulate and foster infrastructure development, technology 
        development, community development and entrepreneurship, and 
        education and workforce development in the region;
            (3) to increase the total amount of Federal funding 
        available for border economic development projects by 
        coordinating with and reducing duplication of other Federal, 
        State, and local programs; and
            (4) to empower the people of the region through the use of 
        local development districts and State and regional development 
        plans that reflect State and local priorities.

SEC. 3. DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Attainment county.--The term ``attainment county'' 
        means an economically strong county that is not a distressed 
        county or a competitive county.
            (2) Authority.--The term ``Authority'' means the Southwest 
        Regional Border Authority established by section 101(a)(1).
            (3) Binational region.--The term ``binational region'' 
        means the area in the United States and Mexico that is within 
        150 miles of the international border between the United States 
        and Mexico.
            (4) Business incubator service.--The term ``business 
        incubator service'' means--
                    (A) a legal service, including aid in preparing a 
                corporate charter, partnership agreement, or contract;
                    (B) a service in support of the protection of 
                intellectual property through a patent, a trademark, or 
                any other means;
                    (C) a service in support of the acquisition or use 
                of advanced technology, including the use of Internet 
                services and Web-based services; and
                    (D) consultation on strategic planning, marketing, 
                or advertising.
            (5) Competitive county.--The term ``competitive county'' 
        means an economically strong county that meets at least 1, but 
        not all, of the criteria for a distressed county specified in 
        paragraph (5).
            (6) Distressed county.--The term ``distressed county'' 
        means a county in the region that--
                    (A)(i) has a poverty rate that is at least 150 
                percent of the poverty rate of the United States;
                    (ii) has a per capita market income that is not 
                more than 67 percent of the per capita market income of 
                the United States; and
                    (iii) has a 3-year unemployment rate that is at 
                least 150 percent of the unemployment rate of the 
                United States; or
                    (B)(i) has a poverty rate that is at least 200 
                percent of the poverty rate of the United States; and
                    (ii)(I) has a per capita market income that is not 
                more than 67 percent of the per capita market income of 
                the United States; or
                    (II) has a 3-year unemployment rate that is at 
                least 150 percent of the unemployment rate of the 
                United States.
            (7) Economically strong county.--The term ``economically 
        strong county'' means a county in the region that is not a 
        distressed county.
            (8) Federal grant program.--The term ``Federal grant 
        program'' means a Federal grant program to provide assistance 
        in--
                    (A) acquiring or developing land;
                    (B) constructing or equipping a highway, road, 
                bridge, or facility; or
                    (C) carrying out other economic development 
                activities.
            (9) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (10) Isolated area of distress.--The term ``isolated area 
        of distress'' means an area located in an economically strong 
        county that has a high rate of poverty, unemployment, or 
        outmigration, as determined by the Authority.
            (11) Local development district.--The term ``local 
        development district'' means an entity that--
                    (A)(i) is an economic development district that 
                is--
                            (I) in existence on the date of enactment 
                        of this Act; and
                            (II) recognized by the Economic Development 
                        Administration; and
                            (III) located in the region; or
                    (ii) if an entity described in clause (i) does not 
                exist--
                            (I) is organized and operated in a manner 
                        that ensures broad-based community 
                        participation and an effective opportunity for 
                        local officials, community leaders, and the 
                        public to contribute to the development and 
                        implementation of programs in the region;
                            (II) is governed by a policy board with at 
                        least a simple majority of members consisting 
                        of designees or employees of a general purpose 
                        unit of local government that have been 
                        appointed to represent the unit of local 
                        government or elected officials; and
                            (III) is certified by the Governor or 
                        appropriate State officer as having a charter 
                        or authority that includes the economic 
                        development of counties, portions of counties, 
                        or other political subdivisions within the 
                        region; 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.
            (12) Region.--The term ``region'' means--
                    (A) the counties of Cochise, Gila, Graham, 
                Greenlee, La Paz, Maricopa, Pima, Pinal, Santa Cruz, 
                and Yuma in the State of Arizona;
                    (B) the counties of Imperial, Los Angeles, Orange, 
                Riverside, San Bernardino, San Diego, and Ventura in 
                the State of California;
                    (C) the counties of Catron, Chaves, Dona Ana, Eddy, 
                Grant, Hidalgo, Lincoln, Luna, Otero, Sierra, and 
                Socorro in the State of New Mexico; and
                    (D) the counties of Atascosa, Bandera, Bee, Bexar, 
                Brewster, Brooks, Cameron, Coke, Concho, Crane, 
                Crockett, Culberson, Dimmit, Duval, Ector, Edwards, El 
                Paso, Frio, Gillespie, Glasscock, Hidalgo, Hudspeth, 
                Irion, Jeff Davis, Jim Hogg, Jim Wells, Karnes, 
                Kendall, Kenedy, Kerr, Kimble, Kinney, Kleberg, La 
                Salle, Live Oak, Loving, Mason, Maverick, McMullen, 
                Medina, Menard, Midland, Nueces, Pecos, Presidio, 
                Reagan, Real, Reeves, San Patricio, Shleicher, Sutton, 
                Starr, Sterling, Terrell, Tom Green, Upton, Uvalde, Val 
                Verde, Ward, Webb, Willacy, Wilson, Winkler, Zapata, 
                and Zavala in the State of Texas.
            (13) Small business.--The term ``small business'' has the 
        meaning given the term ``small business concern'' in section 
        3(a) of the Small Business Act (15 U.S.C. 632(a)).

              TITLE I--SOUTHWEST REGIONAL BORDER AUTHORITY

SEC. 101. MEMBERSHIP AND VOTING.

    (a) Establishment.--
            (1) In general.--There is established the Southwest 
        Regional Border Authority.
            (2) Composition.--The Authority 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 (or a designee of the Governor) of each State 
                in the region that elects to participate in the 
                Authority.
            (3) Cochairpersons.--The Authority 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 Authority; and
                    (B) a State cochairperson, who shall--
                            (i) be a Governor of a State described in 
                        paragraph (2)(B);
                            (ii) be elected by the State members for a 
                        term of not more than 2 years; and
                            (iii) serve only 1 term during any 4 year 
                        period.
    (b) Alternate Members.--
            (1) State alternates.--The State member of a State 
        described in paragraph (2)(B) may have a single alternate, who 
        shall be--
                    (A) a resident of that State; and
                    (B) appointed by the Governor of the State, from 
                among the members of the cabinet or personal staff of 
                the Governor.
            (2) Alternate federal cochairperson.--The President shall 
        appoint an alternate Federal cochairperson.
            (3) Quorum.--Subject to subsection (d)(4), a State 
        alternate member shall not be counted toward the establishment 
        of a quorum of the members of the Authority in any case in 
        which a quorum of the State members is required to be present.
            (4) Delegation of power.--No power or responsibility of the 
        Authority specified in paragraph (2) or (3) of subsection (d), 
        and no voting right of any member of the Authority, shall be 
        delegated to any person who is not--
                    (A) a member of the Authority; or
                    (B) entitled to vote at meetings of the Authority.
    (c) Meetings.--
            (1) Initial meeting.--The initial meeting of the Authority 
        shall be conducted not later than the date that is the earlier 
        of--
                    (A) 180 days after the date of enactment of this 
                Act; or
                    (B) 60 days after the date on which the Federal 
                cochairperson is appointed.
            (2) Other meetings.--The Authority shall hold meetings at 
        such times as the Authority determines, but not less often than 
        semiannually.
            (3) Location.--Meetings of the Authority shall be 
        conducted, on a rotating basis, at a site in the region in each 
        of the States of Arizona, California, New Mexico, and Texas.
    (d) Voting.--
            (1) In general.--To be effective, a decision by the 
        Authority shall require the approval of the Federal 
        cochairperson and not less than 60 percent of the State members 
        of the Authority (not including any member representing a State 
        that is delinquent under section 102(d)(2)(D)).
            (2) Quorum.--
                    (A) In general.--A majority of the State members 
                shall constitute a quorum.
                    (B) Required for policy decision.--A quorum of 
                State members shall be required to be present for the 
                Authority to make any policy decision, including--
                            (i) a modification or revision of a policy 
                        decision of the Authority;
                            (ii) approval of a State or regional 
                        development plan; and
                            (iii) any allocation of funds among the 
                        States.
            (3) Project and grant proposals.--The approval of project 
        and grant proposals shall be--
                    (A) a responsibility of the Authority; and
                    (B) conducted in accordance with section 302.
            (4) Voting by alternate members.--An alternate member shall 
        vote in the case of the absence, death, disability, removal, or 
        resignation of the Federal or State member for which the 
        alternate member is an alternate.

SEC. 102. DUTIES AND POWERS.

    (a) Duties.--The Authority shall--
            (1) develop comprehensive and coordinated plans and 
        programs to establish priorities and approve grants for the 
        economic development of the region, giving due consideration to 
        other Federal, State, and local planning and development 
        activities in the region;
            (2) conduct and sponsor investigations, research, and 
        studies, including an inventory and analysis of the resources 
        of the region, using, in part, the materials compiled by the 
        Interagency Task Force on the Economic Development of the 
        Southwest Border established by Executive Order No. 13122 (64 
        Fed. Reg. 29201);
            (3) sponsor demonstration projects under section 207;
            (4)(A) enhance the capacity of, and provide support for, 
        local development districts in the region; or
            (B) if there is no local development district described in 
        clause (i) of section 3(11)(A) for a portion of the region, 
        foster the creation of a local development district;
            (5) review and study Federal, State, and local public and 
        private programs and, as appropriate, recommend modifications 
        or additions to increase the effectiveness of the programs;
            (6) formulate and recommend, as appropriate, interstate and 
        international compacts and other forms of interstate and 
        international cooperation;
            (7) encourage private investment in industrial, commercial, 
        and recreational projects in the region;
            (8) provide a forum for consideration of the problems of 
        the region and any proposed solutions to those problems;
            (9) establish and use, as appropriate, citizens, special 
        advisory counsels, and public conferences; and
            (10) provide a coordinating mechanism to avoid duplication 
        of efforts among the border programs of the Federal agencies 
        and the programs established under the North American Free 
        Trade Agreement entered into by the United States, Mexico, and 
        Canada on December 17, 1992.
    (b) Powers.--In carrying out subsection (a), the Authority 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 Authority as the 
        Authority considers appropriate;
            (2) request from any Federal, State, or local agency such 
        information as may be available to or procurable by the agency 
        that may be of use to the Authority in carrying out the duties 
        of the Authority;
            (3) maintain an accurate and complete record of all 
        transactions and activities of the Authority, to be available 
        for audit and examination by the Comptroller General of the 
        United States;
            (4) adopt, amend, and repeal bylaws and rules governing the 
        conduct of business and the performance of duties of the 
        Authority;
            (5) request the head of any Federal agency to detail to the 
        Authority, for a specified period of time, such personnel as 
        the Authority requires to carry out duties of the Authority, 
        each such detail to be without loss of seniority, pay, or other 
        employee status;
            (6) request the head of any State department or agency or 
        local government to detail to the Authority, for a specified 
        period of time, such personnel as the Authority requires to 
        carry out the duties of the Authority, each such detail to be 
        without loss of seniority, pay, or other employee status;
            (7) make recommendations to the President regarding--
                    (A) the expenditure of funds at the Federal, State, 
                and local levels under this Act; and
                    (B) additional Federal, State, and local 
                legislation that may be necessary to further the 
                purposes of this Act;
            (8) provide for coverage of Authority employees in a 
        suitable retirement and employee benefit system by--
                    (A) making arrangements or entering into contracts 
                with any participating State government; or
                    (B) otherwise providing retirement and other 
                employee benefit coverage;
            (9) accept, use, and dispose of gifts or donations of 
        services or real, personal, tangible, or intangible property;
            (10) enter into and perform such contracts, leases, 
        cooperative agreements, or other transactions as are necessary 
        to carry out the duties of the Authority;
            (11) establish and maintain--
                    (A) a headquarters for the Authority, to be located 
                at a site that is not more than 100 kilometers from the 
                international border between the United States and 
                Mexico; and
                    (B) at least 1 field office in each of the States 
                of Arizona, California, New Mexico, and Texas, to be 
                located at appropriate sites in the region that are not 
                more than 100 kilometers from the international border 
                between the United States and Mexico; and
            (12) provide for an appropriate level of representation in 
        Washington, D.C.
    (c) Federal Agency Cooperation.--A Federal agency shall--
            (1) cooperate with the Authority; and
            (2) provide, on request of the Federal cochairperson, 
        appropriate assistance in carrying out this Act, in accordance 
        with applicable Federal laws (including regulations).
    (d) Administrative Expenses.--
            (1) In general.--
                    (A) Administrative expenses.--Subject to paragraph 
                (2), administrative expenses of the Authority shall be 
                paid--
                            (i) by the Federal Government, in an amount 
                        equal to 60 percent of the administrative 
                        expenses; and
                            (ii) by the States in the region that elect 
                        to participate in the Authority, in an amount 
                        equal to 40 percent of the administrative 
                        expenses.
                    (B) Expenses of federal chairperson.--All expenses 
                of the Federal cochairperson, including expenses of the 
                alternate and staff of the Federal cochairperson, shall 
                be paid by the Federal Government.
            (2) State share.--
                    (A) In general.--Subject to subparagraph (C), the 
                share of administrative expenses of the Authority to be 
                paid by each State shall be determined by a unanimous 
                vote of the State members of the Authority.
                    (B) No federal participation.--The Federal 
                cochairperson shall not participate or vote in any 
                decision under subparagraph (A).
                    (C) Limitation.--A State shall not pay less than 10 
                nor more than 40 percent of the share of administrative 
                expenses of the Authority determined under paragraph 
                (1)(A)(ii).
                    (D) Delinquent states.--During any period in which 
                a State is more than 1 year delinquent in payment of 
                the State's share of administrative expenses of the 
                Authority under this subsection (as determined by the 
                Secretary)--
                            (i) no assistance under this Act shall be 
                        provided to the State (including assistance to 
                        a political subdivision or a resident of the 
                        State) for any project not approved as of the 
                        date of the commencement of the delinquency; 
                        and
                            (ii) no member of the Authority from the 
                        State shall participate or vote in any action 
                        by the Authority.
                    (E) Effect on assistance.--A State's share of 
                administrative expenses of the Authority under this 
                subsection shall not be taken into consideration in 
                determining the amount of assistance provided to the 
                State under title II.

SEC. 103. AUTHORITY PERSONNEL MATTERS.

    (a) Compensation of Members.--
            (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 in 
        subchapter II of chapter 53 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 described in paragraph (1); 
                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 alternates.--
                    (A) In general.--A State shall compensate each 
                member and alternate member representing the State on 
                the Authority at the rate established by State law.
                    (B) No additional compensation.--No State member or 
                alternate member shall receive any salary, or any 
                contribution to or supplementation of salary, from any 
                source other than the State for services provided by 
                the member or alternate member to the Authority.
    (b) Detailed Employees.--
            (1) In general.--No person detailed to serve the Authority 
        under section 102(b)(6) shall receive any salary, or any 
        contribution to or supplementation of salary, for services 
        provided to the Authority from--
                    (A) any source other than the State, local, or 
                intergovernmental department or agency from which the 
                person was detailed; or
                    (B) the Authority.
            (2) Violation.--Any person that violates this subsection 
        shall be fined not more than $5,000, imprisoned not more than 1 
        year, or both.
    (c) Additional Personnel.--
            (1) Compensation.--
                    (A) In general.--The Authority may appoint and fix 
                the compensation of an executive director and such 
                other personnel as are necessary to enable the 
                Authority to carry out the duties of the Authority.
                    (B) Exception.--Compensation under subparagraph (A) 
                shall not exceed the maximum rate of basic pay 
                established 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.
            (2) Executive director.--The executive director shall be 
        responsible for--
                    (A) carrying out the administrative duties of the 
                Authority;
                    (B) directing the Authority staff; and
                    (C) carrying out such other duties as the Authority 
                may assign.
            (3) No federal employee status.--No member, alternate, 
        officer, or employee of the Authority (other than the Federal 
        cochairperson, the alternate Federal cochairperson, staff of 
        the Federal cochairperson, and any Federal employee detailed to 
        the Authority under subsection (b)) shall be considered to be a 
        Federal employee for any purpose.
    (d) Conflicts of Interest.--
            (1) In general.--Except as provided under paragraph (2), no 
        State member, State alternate, officer, employee, or detailee 
        of the Authority shall participate personally and substantially 
        as a member, alternate, officer, employee, or detailee of the 
        Authority, 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 the member, alternate, officer, employee, or 
        detailee has a financial interest.
            (2) Disclosure.--Paragraph (1) shall not apply if the State 
        member, State alternate, officer, employee, or detailee--
                    (A) immediately advises the Authority 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 Authority that the interest is not 
                so substantial as to be likely to affect the integrity 
                of the services that the Authority may expect from the 
                State member, State alternate, officer, employee, or 
                detailee.
            (3) Violation.--Any person that violates this subsection 
        shall be fined not more than $10,000, imprisoned not more than 
        2 years, or both.
    (e) Validity of Contracts, Loans, and Grants.--The Authority may 
declare void any contract, loan, or grant of or by the Authority in 
relation to which the Authority determines that there has been a 
violation of subsection (b), subsection (d), or any of sections 202 
through 209 of title 18, United States Code.
    (f) Applicable Labor Standards.--
            (1) In general.--All laborers and mechanics employed by 
        contractors or subcontractors in the construction, alteration, 
        or repair, including painting and decorating, of projects, 
        buildings, and works funded by the United States under this 
        Act, shall be paid wages at not less than the prevailing wages 
        on similar construction in the locality as determined by the 
        Secretary of Labor in accordance with sections 3141-3144, 3146, 
        and 3147 of title 40, United States Code.
            (2) Authority.--With respect to the determination of wages 
        under paragraph (1), the Secretary of Labor shall have the 
        authority and functions set forth in Reorganization Plan No. 14 
        of 1950 (64 Stat. 1267) and section 3145 of title 40, United 
        States Code.

               TITLE II--GRANTS AND DEVELOPMENT PLANNING

SEC. 201. INFRASTRUCTURE DEVELOPMENT AND IMPROVEMENT.

    The Authority may approve grants to States, local governments, 
Indian tribes, and public and nonprofit organizations in the region for 
projects, approved in accordance with section 302, to develop and 
improve the transportation, water and wastewater, public health, and 
telecommunications infrastructure of the region.

SEC. 202. TECHNOLOGY DEVELOPMENT AND DEPLOYMENT.

    The Authority may approve grants to small businesses, universities, 
national laboratories, and nonprofit organizations in the region to 
research, develop, demonstrate, and deploy technology that addresses--
            (1) water quality;
            (2) water quantity;
            (3) pollution;
            (4) transportation;
            (5) energy consumption;
            (6) public health;
            (7) border and port security; and
            (8) any other related matter that stimulates job creation 
        or enhances economic development in the region, as determined 
        by the Authority.

SEC. 203. COMMUNITY DEVELOPMENT AND ENTREPRENEURSHIP.

    The Authority may approve grants to States, local governments, 
Indian tribes, small businesses, and public or nonprofit entities for 
projects, approved in accordance with section 302--
            (1) to create dynamic local economies by--
                    (A) recruiting businesses to the region; and
                    (B) increasing and expanding international trade to 
                other countries;
            (2) to foster entrepreneurship by--
                    (A) supporting the advancement of, and providing 
                entrepreneurial training and education for, youths, 
                students, and businesspersons;
                    (B) improving access to debt and equity capital by 
                facilitating the establishment of development venture 
                capital funds and other appropriate means;
                    (C) providing aid to communities in identifying, 
                developing, and implementing development strategies for 
                various sectors of the economy; and
                    (D)(i) developing a working network of business 
                incubators; and
                    (ii) supporting entities that provide business 
                incubator services; and
            (3) to promote civic responsibility and leadership through 
        activities that include--
                    (A) the identification and training of emerging 
                leaders;
                    (B) the encouragement of citizen participation; and
                    (C) the provision of assistance for strategic 
                planning and organization development.

SEC. 204. EDUCATION AND WORKFORCE DEVELOPMENT.

    The Authority, in coordination with State and local workforce 
development boards, may approve grants to States, local governments, 
Indian tribes, small businesses, and public or nonprofit entities for 
projects, approved in accordance with section 302--
            (1) to assist the region in obtaining the job training, 
        employment-related education, and business development (with an 
        emphasis on entrepreneurship) that are needed to build and 
        maintain strong local economies; and
            (2) to supplement in-plant training programs offered by 
        State and local governments to attract new businesses to the 
        region.

SEC. 205. FUNDING.

    (a) In General.--Funds for grants under sections 201 through 204 
may be provided--
            (1) entirely from appropriations to carry out this Act;
            (2) in combination with funds available under another 
        Federal grant program or other Federal program; or
            (3) in combination with funds from any other source, 
        including--
                    (A) State and local governments, nonprofit 
                organizations, and the private sector in the United 
                States;
                    (B) the federal and local government of, and 
                private sector in, Mexico; and
                    (C) the North American Development Bank.
    (b) Priority of Funding.--
            (1) In general.--Subject to paragraph (2), the Authority 
        shall award funding to each State in the region for activities 
        in accordance with an order of priority to be determined by the 
        State.
            (2) Funding for border counties.--For each fiscal year, the 
        Authority shall allocate at least 60 percent of the amounts 
        made available under section 306 for programs and projects 
        designed to serve the needs of--
                    (A) distressed counties located along the 
                international border between the United States and 
                Mexico; and
                    (B) isolated areas of distress located within 
                counties along the international border between the 
                United States and Mexico.
    (c) Binational Projects.--
            (1) Prohibition on provision of funding to non-united 
        states entities.--The Authority shall not award funding to any 
        entity that is not incorporated in the United States.
            (2) Funding of binational projects.--The Authority may 
        award funding to a project in which an entity that is 
        incorporated outside the United States participates if, for any 
        fiscal year, the entity matches with an equal amount, in cash 
        or in-kind, the assistance received under this Act for the 
        fiscal year.

SEC. 206. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

    (a) Finding.--Congress finds that certain States and local 
communities of the region, including local development districts, may 
be unable to take maximum advantage of Federal grant programs for which 
the States and communities are eligible because--
            (1) they lack the economic resources to provide the 
        required matching share; or
            (2) there are insufficient funds available under the 
        Federal law authorizing the Federal grant program to meet 
        pressing needs of the region.
    (b) 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 (c), the Authority, with the 
approval of the Federal cochairperson and with respect to a project to 
be carried out in the region, may--
            (1) increase the Federal share of the costs of a project 
        under any Federal grant program to not more than 90 percent 
        (except as provided in section 209(b)); and
            (2) use amounts made available to carry out this Act to pay 
        all or a portion of the increased Federal share.
    (c) Certifications.--
            (1) In general.--In the case of any project for which all 
        or any portion of the basic 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--
                    (A) meets (except as provided in subsection (b)) 
                the applicable requirements of the applicable Federal 
                grant program; and
                    (B) could be approved for Federal contribution 
                under the Federal grant program if funds were available 
                under the law for the project.
            (2) Certification by authority.--
                    (A) In general.--The certifications and 
                determinations required to be made by the Authority for 
                approval of projects under this Act in accordance with 
                section 302--
                            (i) shall be controlling; and
                            (ii) shall be accepted by the Federal 
                        agencies.
                    (B) Acceptance by federal cochairperson.--In the 
                case of any project described in paragraph (1), any 
                finding, report, certification, or documentation 
                required to be submitted with respect to the project to 
                the head of the department, 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. 207. DEMONSTRATION PROJECTS.

    (a) In General.--For each fiscal year, the Authority may approve 
not more than 10 demonstration projects to carry out activities 
described in sections 201 through 204, of which not more than 3 shall 
be carried out in any 1 State.
    (b) Requirements.--A demonstration project carried out under this 
section shall--
            (1) be carried out on a multistate or multicounty basis; 
        and
            (2) be developed in accordance with the regional 
        development plan prepared under section 210(d).

SEC. 208. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND ADMINISTRATIVE 
              EXPENSES.

    (a) Grants to Local Development Districts.--
            (1) In general.--The Authority shall 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) Maximum period.--No grant described in 
                paragraph (1) shall be awarded for a period greater 
                than 3 years to a State agency certified as a local 
                development district.
                    (C) Local share.--The contributions of a local 
                development district for administrative expenses may be 
                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;
            (2) assist the Authority in carrying out outreach 
        activities for local governments, community development groups, 
        the business community, and the public;
            (3) serve as a liaison between State and local governments, 
        nonprofit organizations (including community-based groups and 
        educational institutions), the business community, and 
        citizens; and
            (4) assist the individuals and entities described in 
        paragraph (3) in identifying, assessing, and facilitating 
        projects and programs to promote the economic development of 
        the region.

SEC. 209. DISTRESSED COUNTIES AND AREAS AND ECONOMICALLY STRONG 
              COUNTIES.

    (a) Designations.--At the initial meeting of the Authority and 
annually thereafter, the Authority, in accordance with such criteria as 
the Authority may establish, shall designate--
            (1) distressed counties;
            (2) economically strong counties;
            (3) attainment counties;
            (4) competitive counties; and
            (5) isolated areas of distress.
    (b) Distressed Counties.--
            (1) In general.--For each fiscal year, the Authority shall 
        allocate at least 50 percent of the amounts made available 
        under section 306 for programs and projects designed to serve 
        the needs of distressed counties and isolated areas of distress 
        in the region.
            (2) Funding limitations.--The funding limitations under 
        section 206(b) shall not apply to a project to provide 
        transportation or basic public services to residents of 1 or 
        more distressed counties or isolated areas of distress in the 
        region.
    (c) Economically Strong Counties.--
            (1) Attainment counties.--Except as provided in paragraph 
        (3), the Authority shall not provide funds for a project 
        located in a county designated as an attainment county under 
        subsection (a)(3).
            (2) Competitive counties.--Except as provided in paragraph 
        (3), the Authority shall not provide more than 30 percent of 
        the total cost of any project carried out in a county 
        designated as a competitive county under subsection (a)(2)(B).
            (3) Exceptions.--
                    (A) In general.--The funding prohibition under 
                paragraph (1) and the funding limitation under 
                paragraph (2) shall not apply to grants to fund the 
                administrative expenses of local development districts 
                under section 208(a).
                    (B) Multicounty projects.--If the Authority 
                determines that a project could bring significant 
                benefits to areas of the region outside an attainment 
                or competitive county, the Authority may waive the 
                application of the funding prohibition under paragraph 
                (1) and the funding limitation under paragraph (2) to--
                            (i) a multicounty project that includes 
                        participation by an attainment or competitive 
                        county; or
                            (ii) any other type of project.
            (4) Isolated areas of distress.--For a designation of an 
        isolated area of distress for assistance to be effective, the 
        designation shall be supported--
                    (A) by the most recent Federal data available; or
                    (B) if no recent Federal data are available, by the 
                most recent data available through the government of 
                the State in which the isolated area of distress is 
                located.

SEC. 210. DEVELOPMENT PLANNING PROCESS.

    (a) State Development Plan.--In accordance with policies 
established by the Authority, each State member shall submit an annual 
development plan for the area of the region represented by the State 
member to assist the Authority in determining funding priorities under 
section 205(b).
    (b) Consultation With Interested Parties.--In carrying out the 
development planning process (including the selection of programs and 
projects for assistance), a State shall--
            (1) consult with--
                    (A) local development districts; and
                    (B) local units of government;
            (2) take into consideration the goals, objectives, 
        priorities, and recommendations of the entities described in 
        paragraph (1); and
            (3) solicit input on and take into consideration the 
        potential impact of the State development plan on the 
        binational region.
    (c) Public Participation.--
            (1) In general.--The Authority 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.
            (2) Regulations.--The Authority shall develop guidelines 
        for providing public participation described in paragraph (1), 
        including public hearings.
    (d) Regional Development Plan.--The Authority shall prepare an 
annual regional development plan that--
            (1) is based on State development plans submitted under 
        subsection (a);
            (2) takes into account--
                    (A) the input of the private sector, academia, and 
                nongovernmental organizations; and
                    (B) the potential impact of the regional 
                development plan on the binational region;
            (3) establishes 5-year goals for the development of the 
        region;
            (4) identifies and recommends to the States--
                    (A) potential multistate or multicounty projects 
                that further the goals for the region; and
                    (B) potential development projects for the 
                binational region; and
            (5) identifies and recommends to the Authority for funding 
        demonstration projects under section 207.

                       TITLE III--ADMINISTRATION

SEC. 301. PROGRAM DEVELOPMENT CRITERIA.

    (a) In General.--In considering programs and projects to be 
provided assistance under this Act, and in establishing a priority 
ranking of the requests for assistance provided to the Authority, the 
Authority shall follow procedures that ensure, to the maximum extent 
practicable, consideration of--
            (1) the relationship of the project or class of projects to 
        overall regional development;
            (2) the per capita income and poverty and unemployment 
        rates 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 socioeconomic importance of the project or class of 
        projects in relation to other projects or classes of 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 project design 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 a person or entity in relocating 
from 1 area to another, except that financial assistance may be used as 
otherwise authorized by this Act to attract businesses from outside the 
region to the region.
    (c) Maintenance of Effort.--Funds may be provided for a program or 
project in a State under this Act only if the Authority determines that 
the level of Federal or State financial assistance provided under a law 
other than this Act, for the same type of program or 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. 302. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.

    (a) In General.--A State or regional development plan or any 
multistate subregional plan that is proposed for development under this 
Act shall be reviewed by the Authority.
    (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 Authority 
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 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 301;
            (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 by a State member of the 
Authority of an application for a grant or other assistance for a 
specific project under this section, an affirmative vote of the 
Authority under section 101(d) shall be required for approval of the 
application.

SEC. 303. 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. 304. RECORDS.

    (a) Records of the Authority.--
            (1) In general.--The Authority shall maintain accurate and 
        complete records of all transactions and activities of the 
        Authority.
            (2) Availability.--All records of the Authority 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 Authority, maintain accurate and 
        complete records of transactions and activities financed with 
        Federal funds and report to the Authority 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 Authority (including authorized 
        representatives of the Comptroller General and the Authority).
    (c) Annual Audit.--The Comptroller General of the United States 
shall audit the activities, transactions, and records of the Authority 
on an annual basis.

SEC. 305. ANNUAL REPORT.

    (a) In General.--Not later than 180 days after the end of each 
fiscal year, the Authority shall submit to the President and to 
Congress a report describing the activities carried out under this Act.
    (b) Contents.--
            (1) In general.--The report shall include--
                    (A) an evaluation of the progress of the 
                Authority--
                            (i) in meeting the goals set forth in the 
                        regional development plan and the State 
                        development plans; and
                            (ii) in working with other Federal agencies 
                        and the border programs administered by the 
                        Federal agencies;
                    (B) examples of notable projects in each State;
                    (C) a description of all demonstration projects 
                funded under section 306(b) during the fiscal year 
                preceding submission of the report; and
                    (D) any policy recommendations approved by the 
                Authority.
            (2) Initial report.--In addition to the contents specified 
        in paragraph (1), the initial report submitted under this 
        section shall include--
                    (A) a determination as to whether the creation of a 
                loan fund to be administered by the Authority is 
                necessary; and
                    (B) if the Authority determines that a loan fund is 
                necessary--
                            (i) a request for the authority to 
                        establish a loan fund; and
                            (ii) a description of the eligibility 
                        criteria and performance requirements for the 
                        loans.

SEC. 306. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to the 
Authority to carry out this Act, to remain available until expended--
            (1) $50,000,000 for fiscal year 2008;
            (2) $75,000,000 for fiscal year 2009;
            (3) $90,000,000 for fiscal year 2010;
            (4) $92,000,000 for fiscal year 2011; and
            (5) $94,000,000 for fiscal year 2012.
    (b) Demonstration Projects.--Of the funds made available under 
subsection (a), $5,000,000 for each fiscal year shall be available to 
the Authority to carry out section 207.

SEC. 307. TERMINATION OF AUTHORITY.

    The authority provided by this Act terminates effective October 1, 
2012.
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