1.This Act may be cited as the
SouthEast Crescent Authority Act of
2005
.
2.In this Act, the following definitions
apply:
(1)The
term Authority means the SouthEast Crescent Authority established
by section 3.
(2)The term Federal grant program means a
Federal grant program to provide assistance in carrying out economic and
community development activities.
(3)The term non-profit entity means any entity
with tax-exempt or non-profit status, as defined by the Internal Revenue
Service, that has been formed for the purpose of economic development or has a
proven record of economic development experience.
(4)The
term region means the area covered by the Authority (as described
in section 16).
3.SouthEast
Crescent Authority
(a)
(1)There is established the SouthEast Crescent
Authority.
(2)The
Authority shall be composed of—
(A)a Federal member,
to be appointed by the President, with the advice and consent of the Senate;
and
(B)the Governor of
each State in the region that elects to participate in the Authority.
(3)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—
(i)shall be a
Governor of a participating State in the region; and
(ii)shall be elected
by the State members for a term of not less than 1 year.
(b)
(1)
(A)The
State member of a participating State may have a single alternate, who shall be
appointed by the Governor of the State from among the Governor’s cabinet or
personal staff.
(B)An
alternate shall vote in the event of the absence, death, disability, removal,
or resignation of the member for whom the individual is an alternate.
(2)Alternate
Federal cochairpersonThe President shall appoint an alternate
Federal cochairperson.
(3)
(A)Subject to the requirements of this paragraph, the
Authority shall determine what constitutes a quorum of the Authority.
(B)The Federal cochairperson or the Federal
cochairperson’s designee must be present for the establishment of a quorum of
the Authority.
(C)A State alternate shall not be counted toward the
establishment of a quorum of the Authority.
(4)No power or responsibility of the Authority specified in
paragraphs (3) and (4) of subsection (c), and no voting right of any Authority
member, shall be delegated to any person—
(A)who is not a
Authority member; or
(B)who is not
entitled to vote in Authority meetings.
(c)
(1)Requirements for
approvalExcept as provided in subsection (g), decisions by the
Authority shall require the affirmative vote of the Federal cochairperson and
of a majority of the State members, exclusive of members representing States
delinquent under subsection (g)(2)(C).
(2)In
matters coming before the Authority, the Federal cochairperson, to the extent
practicable, shall consult with the Federal departments and agencies having an
interest in the subject matter.
(3)Decisions
requiring quorum of State membersThe following decisions may not
be made without a quorum of State members:
(A)A decision
involving Authority policy.
(B)Approval of State,
regional, or subregional development plans or strategy statements.
(C)Modification or
revision of the Authority’s code.
(D)Allocation of
amounts among the States.
(E)Designation of a
distressed county.
(4)Project and
grant proposalsThe approval of project and grant proposals is a
responsibility of the Authority and shall be carried out in accordance with
section 10.
(d)The
Authority shall—
(1)develop, on a
continuing basis, 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)not later than 365
days after the date of enactment of this Act, establish priorities in a
development plan for the region (including 5-year regional outcome
targets);
(3)assess the needs
and capital assets of the region based on available research, demonstration
projects, assessments, and evaluations of the region prepared by Federal,
State, or local agencies, local development districts, and any other relevant
source;
(4)(A)enhance the capacity of,
and provide support for, local development districts in the region; or
(B)if no local development district
exists in an area in a participating State in the region, foster the creation
of a local development district; and
(5)encourage private
investment in industrial, commercial, and other economic development projects
in the region.
(e)In
carrying out subsection (d), 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 and reports on actions by the Authority as the Authority
considers appropriate;
(2)authorize, through
the Federal or State cochairperson or any other member of the Authority
designated by the Authority, the administration of oaths if the Authority
determines that testimony should be taken or evidence received under
oath;
(3)request from any
Federal, State, or local department or agency such information as may be
available to or procurable by the department or agency that may be of use to
the Authority in carrying out duties of the Authority;
(4)adopt, amend, and
repeal bylaws and rules governing the conduct of Authority business and the
performance of Authority duties;
(5)request the head of
any Federal department or agency to detail to the Authority 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 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;
(7)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;
(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
Authority duties;
(10)establish and
maintain a central office located within the Southeast Crescent Authority
region and field offices at such locations as the Authority may select;
and
(11)provide for an
appropriate level of representation in Washington, D.C.
(f)Federal agency
cooperationA 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).
(g)
(1)Administrative expenses of the Authority (except for the
expenses of the Federal cochairperson, including expenses of the alternate and
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 participating in the Authority, in an amount equal to 50 percent of
the administrative expenses.
(2)
(A)The share of administrative expenses of the Authority to
be paid by each State shall be determined by the Authority.
(B)The Federal cochairperson shall not participate or
vote in any decision under subparagraph (A).
(C)If a State is delinquent in payment of the State’s share
of administrative expenses of the Authority under this subsection—
(i)no
assistance under this Act shall be furnished to the State (including assistance
to a political subdivision or a resident of the State); and
(ii)no
member of the Authority from the State shall participate or vote in any action
by the Authority.
(h)
(1)The Federal cochairperson shall be compensated by
the Federal Government at level III of the Executive Schedule in subchapter II
of chapter 53 of title V, United States Code.
(2)Alternate
Federal cochairpersonThe alternate Federal cochairperson—
(A)shall be
compensated by the Federal Government at 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)A State shall compensate each member and alternate
representing the State on the Authority at the rate established by law of the
State.
(B)No additional
compensationNo 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 to the
Authority.
(4)
(A)No person detailed to serve the Authority under
subsection (e)(6) shall receive any salary or any contribution to or
supplementation of salary for services provided to the Authority from—
(i)any
source other than the State, local, or intergovernmental department or agency
from which the person was detailed; or
(ii)the
Authority.
(B)Any
person that violates this paragraph shall be fined not more than $5,000,
imprisoned not more than 1 year, or both.
(C)The Federal cochairperson, the alternate Federal
cochairperson, and any Federal officer or employee detailed to duty on the
Authority under subsection (e)(5) shall not be subject to subparagraph (A), but
shall remain subject to sections 202 through 209 of title 18, United States
Code.
(5)
(A)
(i)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.
(ii)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)The executive director shall be responsible for—
(i)the
carrying out of the administrative duties of the Authority;
(ii)direction of the
Authority staff; and
(iii)such other
duties as the Authority may assign.
(C)No Federal
employee statusNo member, alternate, officer, or employee of the
Authority (except the Federal cochairperson of the Authority, the alternate and
staff for the Federal cochairperson, and any Federal employee detailed to the
Authority under subsection (e)(5)) shall be considered to be a Federal employee
for any purpose.
(i)
(1)Except as provided under paragraph (2), no State member,
alternate, officer, or employee of the Authority shall participate personally
and substantially as a member, alternate, officer, or employee 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, to knowledge of the member, alternate,
officer, or employee any of the following persons has a financial
interest:
(A)The member,
alternate, officer, or employee.
(B)The spouse, minor child, or partner of the
member, alternate, officer, or employee.
(C)Any organization
(other than a State or political subdivision of the State) in which the member,
alternate, officer, or employee is serving as an officer, director, trustee,
partner, or employee.
(D)Any person or
organization with whom the member, alternate, officer, or employee is
negotiating or has any arrangement concerning prospective employment.
(2)Paragraph
(1) shall not apply if the State member, alternate, officer, or
employee—
(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, alternate, officer, or
employee.
(3)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 grantsThe 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 any provision under
subsection (h)(4), subsection (i), or sections 202 through 209 of title 18,
United States Code.
4.Economic and
community development grants
(a)The Authority may approve grants to States and public and
nonprofit entities for projects, approved in accordance with section 10—
(1)to develop the
infrastructure of the region for the purpose of facilitating economic
development in the region (except that grants for this purpose may only be made
to a State or local government);
(2)to assist the
region in obtaining job training, employment-related education, and business
development;
(3)to provide
assistance to severely distressed and underdeveloped areas; and
(4)to otherwise
achieve the purposes of this Act.
(b)
(1)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 State or Federal grant program; or
(C)from any other
source.
(2)Not less than 50 percent of the amount of expenditures
approved by the Authority shall support activities or projects that benefit
severely and persistently distressed counties and areas.
(3)The Authority may provide assistance, make grants, enter
into contracts, or otherwise provide funds to eligible entities in the region
for projects that promote—
(A)business
development;
(B)job training or
employment-related education;
(C)local planning and
leadership development;
(D)basic public
infrastructure, including high-tech infrastructure, in distressed counties and
isolated areas of distress; and
(E)any other project
facilitating economic development in the region.
(4)Notwithstanding any provision of law limiting the Federal
share in any grant program, funds appropriated to carry out this section may be
used to increase a Federal share in a grant program, as the Authority
determines appropriate.
5.Supplements to
Federal grant programs
(a)Federal grant
program fundingIn accordance with subsection (b), the Federal
cochairperson may use amounts made available to carry out this Act, without
regard to any limitations on areas eligible for assistance or authorizations
for appropriation under any other Act, to fund all or any portion of the basic
Federal contribution to a project or activity under a Federal grant program in
the region in an amount that is above the fixed maximum portion of the cost of
the project otherwise authorized by applicable law, but not to exceed 80
percent of the costs of the project.
(b)
(1)In the case of any program or project for which all or
any portion of the basic Federal contribution to the project under a Federal
grant program is proposed to be made under this section, no Federal
contribution shall be made until the Federal official administering the Federal
law authorizing the contribution certifies that the program or project—
(A)meets the
applicable requirements of the applicable Federal grant law; and
(B)could be approved
for Federal contribution under the law if funds were available under the law
for the program or project.
(2)Certification by
Authority
(A)The certifications and determinations required to be made
by the Authority for approval of projects under this Act in accordance with
section 10—
(i)shall be
controlling; and
(ii)shall be accepted
by the Federal agencies.
(B)Acceptance by
Federal cochairpersonAny finding, report, certification, or
documentation required to be submitted to the head of the department, agency,
or instrumentality of the Federal Government responsible for the administration
of any Federal grant program shall be accepted by the Federal cochairperson
with respect to a supplemental grant for any project under the program.
6.Local development
districts; certification and administrative expenses
(a)Definition of
local development districtIn this section, the term local
development district means an entity designated by the State
that—
(1)is—
(A)(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 development district recognized
by the State; or
(B)if an entity
described in subparagraph (A)(i) or (A)(ii) does not exist, an entity
designated by the Authority that satisfies the criteria developed by the
Economic Development Administration for a local development district;
and
(2)has not, as
certified by the Federal cochairperson—
(A)inappropriately
used Federal grant funds from any Federal source; or
(B)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.
(b)Grants to local
development districts
(1)The Authority may make grants for administrative expenses
under this section.
(2)
(A)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)The contributions of a local development district for
administrative expenses may be in cash or in kind, fairly evaluated, including
space, equipment, and services.
(c)Duties of local
development districtsA 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 organizations (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.
7.Distressed
counties and areas and nondistressed countiesNot later than 90 days after the date of
enactment of this Act, and annually thereafter, the Authority, in accordance
with such criteria as the Authority establishes, may designate—
(1)as distressed
counties, counties in the region that are the most severely and persistently
distressed and underdeveloped and have high rates of poverty, low per capita
income, or high rates of unemployment; and
(2)as
isolated areas of distress, areas located in nondistressed counties in the
region that are severely and persistently distressed as documented by
comparable statistical measures.
8.Development
planning process
(a)In accordance with policies established by the
Authority, each State member shall submit a development plan for the area of
the region represented by the State member.
(b)A State development plan submitted under subsection (a)
shall reflect the goals, objectives, and priorities identified in the regional
development plan developed under section 3(d)(2).
(c)In
carrying out the development planning process, a State shall—
(1)consult
with—
(A)local development
districts;
(B)local units of
government; and
(C)institutions of
higher learning; and
(2)take into
consideration the goals, objectives, priorities, and recommendations of the
entities described in paragraph (1).
(d)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.
9.Program
development criteria
(a)In considering programs and projects to be provided
assistance under this Act, and in establishing a priority ranking of the
requests for assistance provided by the Authority, the Authority shall follow
procedures that ensure, to the maximum extent practicable, consideration
of—
(1)the relationship of
the project to overall regional development;
(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 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 financial assistance authorized by this Act shall
be used to assist an establishment in relocating from 1 area to another.
(c)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.
10.Approval of
development plans and projects
(a)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 memberAn 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)An
application for a grant or other assistance for a project shall be approved
only on certification by the State member and 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)Upon certification of an application for a grant or
other assistance for a specific project under this section, an affirmative vote
of the Authority under section 3(c) shall be required for approval of the
application.
11.Nothing in this Act
requires any State to engage in or accept any program under this Act without
the consent of the State.
12.
(a)
(1)The Authority shall maintain accurate and complete
records of all transactions and activities of the Authority.
(2)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)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 on the
transactions and activities to the Authority.
(2)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).
13.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.
14.Authorization of
appropriations
(a)There is authorized to be appropriated to the Authority
to carry out this Act $40,000,000 for each of fiscal years 2006 through 2010,
to remain available until expended.
(b)Not more than 5 percent of the amount appropriated under
subsection (a) for a fiscal year shall be used for administrative expenses of
the Authority.
15.This Act shall have
no force or effect on or after October 1, 2010.
16.Area covered by
SouthEast Crescent AuthoritySouthEast Crescent Authority region shall
include all parts of the States of Virginia, North Carolina, South Carolina,
Georgia, Alabama, Mississippi, and Florida that are not eligible for assistance
from the Appalachian Regional Commission or the Delta Regional
Authority.