II 111th CONGRESS 1st Session S. 430 IN THE SENATE OF THE UNITED STATES February 12, 2009 Mr. Inhofe introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works A BILL To amend the Public Works and Economic Development Act of 1965 to reauthorize that Act, and for other purposes.
1.
Short title
This Act may be cited as the Economic Development Administration Reauthorization Act of 2009.
2.
Economic development partnerships
Section 101 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3131) is amended by adding at the end the following: (e)
Excellence in economic development awards
(1)
Establishment of program
To recognize innovative economic development strategies of national significance, the Secretary may establish and carry out a program, to be known as the Excellence in Economic Development Award Program (referred to in this subsection as the program). (2)
Eligible entities
To be eligible for recognition under the program, an entity shall be an eligible recipient that is not a for-profit organization or institution. (3)
Nominations
Before making an award under the program, the Secretary shall solicit nominations publicly, in accordance with such selection and evaluation procedures as the Secretary may establish in the solicitation. (4)
Categories
The categories of awards under the program shall include awards for— (A)urban or suburban economic development; (B)rural economic development; (C)environmental or energy economic development; (D)economic diversification strategies that respond to economic dislocations, including economic dislocations caused by natural disasters and military base realignment and closure actions; (E)university-led strategies to enhance economic development; (F)community- and faith-based social entrepreneurship; (G)historic preservation-led strategies to enhance economic development; and (H)such other categories as the Secretary determines to be appropriate. (5)
Provision of awards
The Secretary may provide to each entity selected to receive an award under this subsection a plaque, bowl, or similar article to commemorate the accomplishments of the entity. (6)
Funding
Of amounts made available to carry out this Act, the Secretary may use not more than $2,000 for each fiscal year to carry out this subsection. .
3.
Enhancement of recipient flexibility to deal with project assets
(a)
Revolving loan fund program flexibility
Section 209(d) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3149(d)) is amended by adding at the end the following: (5)
Conversion of project assets
(A)
Request
If a recipient determines that a revolving loan fund established using assistance provided under this section is no longer needed, or that the recipient could make better use of the assistance in light of the current economic development needs of the recipient if the assistance was made available to carry out any other project that meets the requirements of this Act, the recipient may submit to the Secretary a request to approve the conversion of the assistance. (B)
Methods of conversion
A recipient the request to convert assistance of which is approved under subparagraph (A) may accomplish the conversion by— (i)selling to a third party any assets of the applicable revolving loan fund; or (ii)retaining repayments of principal and interest amounts on loans provided through the applicable revolving loan fund. (C)
Requirements
(i)
Sale
(I)
In general
Subject to subclause (II), a recipient shall use the net proceeds from a sale of assets under subparagraph (B)(i) to pay any portion of the costs of 1 or more projects that meet the requirements of this Act. (II)
Treatment
For purposes of subclause (I), a project described in that subclause shall be considered to be eligible under section 301. (ii)
Retention of repayments
Retention by a recipient of any repayment under subparagraph (B)(ii) shall be carried out in accordance with a strategic reuse plan approved by the Secretary that provides for the increase of capital over time until sufficient amounts (including interest earned on the amounts) are accumulated to fund other projects that meet the requirements of this Act. (D)
Terms and conditions
The Secretary may require such terms and conditions regarding a proposed conversion of the use of assistance under this paragraph as the Secretary determines to be appropriate. (E)
Expediency requirement
The Secretary shall ensure that any assistance intended to be converted for use pursuant to this paragraph is used in an expeditious manner. (6)
Program administration
The Secretary may allocate not more than 2 percent of the amounts made available for grants under this section for the development and maintenance of an automated tracking and monitoring system to ensure the proper operation and financial integrity of the revolving loan program established under this section. . (b)
Maintenance of effort
Title VI of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3211 et seq.) is amended by adding at the end the following:
613.
Maintenance of effort
(a)
Expected period of best efforts
(1)
Establishment
To carry out the purposes of this Act, before providing investment assistance for a construction project under this Act, the Secretary shall establish the expected period during which the recipient of the assistance shall make best efforts to achieve the economic development objectives of the assistance. (2)
Treatment of property
To obtain the best efforts of a recipient during the period established under paragraph (1), during that period— (A)any property that is acquired or improved, in whole or in part, using investment assistance under this Act shall be held in trust by the recipient for the benefit of the project; and (B)the Secretary shall retain an undivided equitable reversionary interest in the property. (3)
Termination of Federal interest
(A)
In general
Beginning on the date on which the Secretary determines that a recipient has fulfilled the obligations of the recipient for the applicable period under paragraph (1), taking into consideration the economic conditions existing during that period, the Secretary may terminate the reversionary interest of the Secretary in any applicable property under paragraph (2)(B). (B)
Alternative method of termination
(i)
In general
On a determination by a recipient that the economic development needs of the recipient have changed during the period beginning on the date on which investment assistance for a construction project is provided under this Act and ending on the expiration of the expected period established for the project under paragraph (1), the recipient may submit to the Secretary a request to terminate the reversionary interest of the Secretary in property of the project under paragraph (2)(B) before the date described in subparagraph (A). (ii)
Approval
The Secretary may approve a request of a recipient under clause (i) if— (I)in any case in which the request is submitted during the 10-year period beginning on the date on which assistance is initially provided under this Act for the applicable project, the recipient repays to the Secretary an amount equal to 100 percent of the fair market value of the pro rata Federal share of the project; or (II)in any case in which the request is submitted after the expiration of the 10-year period described in subclause (I), the recipient repays to the Secretary an amount equal to the fair market value of the pro rata Federal share of the project as if that value had been amortized over the period established under paragraph (1), based on a straight-line depreciation of the project throughout the estimated useful life of the project. (b)
Terms and conditions
The Secretary may establish such terms and conditions under this section as the Secretary determines to be appropriate, including by extending the period of a reversionary interest of the Secretary under subsection (a)(2)(B) in any case in which the Secretary determines that the performance of a recipient is unsatisfactory. (c)
Previously extended assistance
(1)
In general
With respect to any recipient to which the term of provision of assistance was extended under this Act before the date of enactment of this section, the Secretary may approve a request of the recipient under subsection (a) in accordance with the requirements of this section to ensure uniform administration of this Act, notwithstanding any estimated useful life period that otherwise relates to the assistance. (2)
Conversion of use
If a recipient described in paragraph (1) demonstrates to the Secretary that the intended use of the project for which assistance was provided under this Act no longer represents the best use of the property used for the project, the Secretary may approve a request by the recipient to convert the property to a different use for the remainder of the term of the Federal interest in the property, subject to the condition that the new use shall be consistent with the purposes of this Act. (d)
Status of authority
The authority of the Secretary under this section is in addition to any authority of the Secretary pursuant to any law or grant agreement in effect on the date of enactment of this section.
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4.
Extension of authorization of appropriations
Section 701(a) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3231(a)) is amended— (1)in paragraph (1), by striking 2004 and inserting 2009; (2)in paragraph (2), by striking 2005 and inserting 2010; (3)in paragraph (3), by striking 2006 and inserting 2011; (4)in paragraph (4), by striking 2007 and inserting 2012; and (5)in paragraph (5), by striking 2008 and inserting 2013.
5.
Funding for grants for planning and grants for administrative expenses
Section 704 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3234) is amended to read as follows:
704.
Funding for grants for planning and grants for administrative expenses
(a)
In general
Subject to subsection (b), of the amounts made available under section 701 for each fiscal year, not less than $27,000,000 shall be made available to provide grants under section 203. (b)
Subject to total appropriations
For any fiscal year, the amount made available pursuant to subsection (a) shall be increased to— (1)$28,000,000, if the total amount made available under subsection 701(a) for the fiscal year is equal to or greater than $300,000,000; (2)$29,500,000, if the total amount made available under subsection 701(a) for the fiscal year is equal to or greater than $340,000,000; (3)$31,000,000, if the total amount made available under subsection 701(a) for the fiscal year is equal to or greater than $380,000,000; (4)$32,500,000, if the total amount made available under subsection 701(a) for the fiscal year is equal to or greater than $420,000,000; and (5)$34,500,000, if the total amount made available under subsection 701(a) for the fiscal year is equal to or greater than $460,000,000.
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