[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 503 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                 S. 503

 To establish the SouthEast Crescent Authority, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 6, 2007

 Mrs. Dole (for herself, Mr. Nelson of Florida, Mr. Burr, Mr. Graham, 
 Mr. Chambliss, Mr. Isakson, Mr. Lott, Mr. Cochran, and Mr. Martinez) 
introduced the following bill; which was read twice and referred to the 
               Committee on Environment and Public Works

_______________________________________________________________________

                                 A BILL


 
 To establish the SouthEast Crescent Authority, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``SouthEast Crescent Authority Act of 
2007''.

SEC. 2. DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Authority.--The term ``Authority'' means the SouthEast 
        Crescent Authority established by section 3.
            (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) Non-profit entity.--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) Region.--The term ``region'' means the area covered by 
        the Authority (as described in section 16).

SEC. 3. SOUTHEAST CRESCENT AUTHORITY.

    (a) Establishment.--
            (1) In general.--There is established the SouthEast 
        Crescent Authority.
            (2) Composition.--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) 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--
                            (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) Alternate Members.--
            (1) State alternates.--
                    (A) Appointment.--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) Voting.--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 cochairperson.--The President shall 
        appoint an alternate Federal cochairperson.
            (3) Quorum.--
                    (A) In general.--Subject to the requirements of 
                this paragraph, the Authority shall determine what 
                constitutes a quorum of the Authority.
                    (B) Federal cochairperson.--The Federal 
                cochairperson or the Federal cochairperson's designee 
                must be present for the establishment of a quorum of 
                the Authority.
                    (C) State alternates.--A State alternate shall not 
                be counted toward the establishment of a quorum of the 
                Authority.
            (4) Delegation of power.--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) Decisions.--
            (1) Requirements for approval.--Except 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) Consultation.--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 members.--The 
        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 proposals.--The approval of project 
        and grant proposals is a responsibility of the Authority and 
        shall be carried out in accordance with section 10.
    (d) Duties.--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) Administration.--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 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).
    (g) Administrative Expenses.--
            (1) In general.--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) State share.--
                    (A) In general.--The share of administrative 
                expenses of the Authority to be paid by each State 
                shall be determined by the Authority.
                    (B) No federal participation.--The Federal 
                cochairperson shall not participate or vote in any 
                decision under subparagraph (A).
                    (C) Delinquent states.--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) Compensation.--
            (1) Federal cochairperson.--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 cochairperson.--The 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) In general.--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 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 to the Authority.
            (4) Detailed employees.--
                    (A) In general.--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) Violation.--Any person that violates this 
                paragraph shall be fined not more than $5,000, 
                imprisoned not more than 1 year, or both.
                    (C) Applicable law.--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) Additional personnel.--
                    (A) Compensation.--
                            (i) 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.
                            (ii) Exception.--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) 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 status.--No 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) Conflicts of Interest.--
            (1) In general.--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) Disclosure.--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) 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 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.

SEC. 4. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.

    (a) In General.--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) 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 State or Federal grant program; or
                    (C) from any other source.
            (2) Funding priority.--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) Eligible projects.--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) Federal share.--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.

SEC. 5. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

    (a) Federal Grant Program Funding.--In 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) Certification.--
            (1) In general.--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) In general.--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 cochairperson.--Any 
                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.

SEC. 6. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND ADMINISTRATIVE 
              EXPENSES.

    (a) Definition of Local Development District.--In 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) In general.--The Authority may make grants for 
        administrative expenses under this section.
            (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 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.
    (c) 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 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.

SEC. 7. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED COUNTIES.

    Not 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.

SEC. 8. DEVELOPMENT PLANNING PROCESS.

    (a) State Development Plan.--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) 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 
3(d)(2).
    (c) Consultation.--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) Public Participation.--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.

SEC. 9. 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 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 Relocation Assistance.--No financial assistance authorized 
by this Act shall be used to assist an establishment in relocating from 
1 area to another.
    (c) Reduction of Funds.--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. 10. 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 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) Votes for Decisions.--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.

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 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 on the transactions and activities to 
        the Authority.
            (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).

SEC. 13. ANNUAL REPORT.

    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.

SEC. 14. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated to the 
Authority to carry out this Act $40,000,000 for each of fiscal years 
2008 through 2012, 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 Authority.

SEC. 15. TERMINATION OF AUTHORITY.

    This Act shall have no force or effect on or after October 1, 2012.

SEC. 16. AREA COVERED BY SOUTHEAST CRESCENT AUTHORITY.

    SouthEast 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.
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