[Congressional Record Volume 140, Number 145 (Friday, October 7, 1994)]
[House]
[Page H]
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[Congressional Record: October 7, 1994]
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                              {time}  1830
 
            ECONOMIC DEVELOPMENT REAUTHORIZATION ACT OF 1994

  Mr. WISE. Mr. Speaker, I ask unanimous consent that the Committee on 
Public Works and Transportation and the Committee on Banking, Finance 
and Urban Affairs be discharged from further consideration of the bill 
(H.R. 5243) to amend the Public Works and Economic Development Act of 
1965 to reauthorize economic development program, and for other 
purposes, and ask for its immediate consideration.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore (Mr. Sharp). Is there objection to the 
request of the gentleman from West Virginia?
  Mr. DUNCAN. Mr. Speaker, reserving the right to object, and I will 
not object, I yield to the distinguished chairman of the Subcommittee 
on Economic Development, the gentleman from West Virginia [Mr. Wise], 
for a brief explanation of the bill.
  Mr. WISE. Mr. Speaker, for the first time in 14 years, Congress has a 
realistic opportunity to reauthorize the Economic Development 
Administration with adoption of H.R. 5243. This bill mirrors S. 2257, a 
bill which we hope Senators Baucus, Chair of the Environment and Public 
Works Committee, and Senator Chafee, the Committee's ranking member, 
will bring to the Floor of the other body very shortly.
  Many people are responsible for this historic moment and I would like 
to take this opportunity to thank the Subcommittee's ranking member 
Susan Molinari and our full committee chairman Norm Mineta and its 
ranking member Bud Shuster for all of their hard work on this bill. I 
would also like to thank members of the Banking Committee, particularly 
full committee chairman Gonzalez and ranking member Leach and Banking 
Subcommittee chairman Kanjorski and ranking member Ridge for their 
efforts on this bill. Moreover, I want to thank Environment and Public 
Works chairman Baucus and ranking member Chafee for their ongoing 
efforts to reauthorize EDA. Finally, I want to thank Secretary of 
Commerce Ron Brown for his leadership on these issues and his 
articulation of EDA's role in the administration's efforts to help our 
distressed communities.
  The Economic Development Administration has embarked on a new 
beginning. Last May, the House overwhelmingly passed H.R. 2442, a bill 
which closely reflects the bill we take up today. During debate of H.R. 
2442 on the House floor, I asked ``Who are you going to call''--when 
you need to put a water system into an industrial park; when the 
Defense Department decides that it must close your community's No. 1 
employer, its military base; or when your community is hit by a 
devastating flood, earthquake, or hurricane? Three hundred and twenty-
eight Members of the House, from both sides of the aisle, said they 
were going to call the Economic Development Administration and with 
that vote we overwhelmingly passed H.R. 2442, the Economic Development 
Reauthorization Act of 1994.
  H.R. 5243 authorizes the Economic Development Administration for a 
period of 3 years through fiscal year 1997. Several of the provisions 
contained in the bill address past criticisms of EDA. Gone are the 
inefficient bureaucracies; gone are the archaic eligibility 
requirements; and gone are the time-consuming and cumbersome approval 
processes.
  However, the Economic Development Reauthorization Act of 1994 does 
not only improve EDA's existing programs it builds upon them. H.R. 5243 
includes programs which will help communities meet the economic 
development challenges of the 1990's. For instance, H.R. 5243 includes 
a competitive communities pilot program which will encourage local 
communities, private businesses, labor organizations, and the Federal 
Government to forge partnerships to help distressed communities build 
the necessary competitive industrial base to meet today's economic 
challenges. With EDA's assistance, high-growth businesses will become 
the anchors of our distressed communities.
  Using this additional tool, together with EDA's public works, defense 
conversion, and technical assistance programs, these communities will 
be able to encourage business start-ups of high-growth companies; 
enable existing businesses and industries to flourish; create jobs; and 
compete on a global scale.
  I thank the gentleman for yielding and I urge adoption of H.R. 5243.
  Mr. DUNCAN. Mr. Speaker, further reserving the right to object, I 
yield to the gentleman from California [Mr. Mineta], the distinguished 
chairman of the full committee.
  Mr. MINETA. Mr. Speaker, I thank the gentleman for yielding.
  I, too, rise in strong support of H.R. 5243, the Economic Development 
Reauthorization Act of 1994.
  In doing so, I join with Congressman Wise, Chair of the Subcommittee 
on Economic Development, in commending the efforts of all those 
individuals who have worked to bring this legislation forward. 
Moreover, I would like to take this opportunity to pay special tribute 
to the gentleman from West Virginia for his leadership on this bill. I 
also appreciate the cooperation and assistance of the ranking 
Republican on the subcommittee, Ms. Molinari. With adoption of H.R. 
5243, Congress will be able to reauthorize the Economic Development 
Administration for the first time in more than a decade.
  Although our Nation's economy has improved in recent months, 
desperate conditions continue to exist in too many of America's inner 
cities and distressed rural communities. These communities, suffering 
from the problems of crime, poverty, drugs, unemployment, and 
homelessness, have become the home of a marginal class of Americans who 
are no longer able to share in the American dream.
  This bill renews the Economic Development Administration's efforts to 
ensure that all communities have the opportunity to share in our 
economic future and all Americans share in the dream. H.R. 5243 
launches EDA on a mission founded on reform, responsibility, 
efficiency, and accountability.
  In addition, the bill builds upon EDA's existing programs to further 
empower communities to carry out innovative strategies to promote 
economic growth. For instance, the Competitive Communities pilot 
program of H.R. 5243 will help communities which are outside the 
mainstream of economic growth create high-wage jobs in globally 
competitive businesses and develop the necessary industrial base for 
the future.
  These reforms of EDA's existing programs, together with the new 
economic development tools of H.R. 5243, will better enable the 
Economic Development Administration to help our distressed communities 
help themselves and better compete in the global marketplace. In this 
way, we can ensure that our Nation's economic development programs are 
second to none.
  I thank the gentleman for yielding and I urge adoption of H.R. 5243, 
and, again, applaud the distinguished Gentleman from West Virginia for 
making this historic moment possible.
  Mr. DUNCAN. Mr. Speaker, further reserving the right to object, I 
yield to the gentleman from Pennsylvania [Mr. Kanjorski].
  Mr. KANJORSKI. Mr. Speaker, I want to take this opportunity to 
congratulate the chairman of the Committee on Public Works and 
Transportation, the gentleman from California [Mr. Mineta], the 
chairman of the Committee on Banking, Finance and Urban Affairs, the 
gentleman from Texas [Mr. Gonzalez], the chairman of the subcommittee, 
the gentleman from West Virginia [Mr. Wise], the Committee on Public 
Works and Transportation, and the members of my subcommittee, who have 
worked hard over the last year.
  This is an opportunity for this Congress to show not only that those 
on this side of the aisle have been very effective in working together 
to try to get this bill through and completed, but also it shows 
cooperation with the other side of the aisle, that economic development 
is very important in this country. It had overwhelming support in the 
House in May when it passed the House by a margin of almost 3 to 1.
  This bill, unfortunately, does not include some of the work that we 
would have liked to have seen in the original House bill, but it does 
narrow the focus, make the agency much more efficient, effective, and 
user-friendly.
  Particularly I would like to thank the ranking members of the full 
committee and the subcommittee, and particularly my ranking Member, the 
gentleman from Pennsylvania (Mr. Ridge). He and I struggled for well 
over a year in putting our contributions into this bill, and I think it 
will go a long way toward paving the way for economic development in 
the United States, towards the 21st century.
  This is an historic moment. We are about to pass a bill that will 
authorize the Department of Commerce's Economic Development 
Administration (EDA) for the first time since 1980.
  EDA was created in 1965 to help communities recover from serious 
economic dislocations. During the 1960s and 1970s, the EDA aided 
numerous economically distressed communities throughout the nation in 
their efforts to get back on their feet. Even though its budget was 
drastically cut during the 1980s, EDA continued to play an important 
role in helping communities, especially rural communities, respond to 
economic distress.
  In recent years, EDA has been called upon once again to meet rapidly 
growing demands for assistance from an increasing number of regions and 
communities experiencing a wide range of economic difficulties.
  The EDA has been playing a major role in natural disaster relief. It 
is helping communities from Florida, to Kansas, to Los Angeles, to 
Hawaii recover from the hurricanes, floods, fires, and earthquakes that 
have plagued this country over the last couple of years.
  EDA is a key agency involved in implementing the economic 
diversification and conversion efforts of communities and businesses 
throughout the nation hurt by defense contract cutbacks and military 
base closures.
  EDA is helping numerous other rural and urban communities suffering 
from long-term economic decline, or from sudden economic shocks due to 
major plant closings, as they struggle to build sustainable economies 
that are competitive in the global economy.
  In May of this year, the House passed H.R. 2442, the Economic 
Development Reauthorization Act of 1994 by a three-to-one margin, 
illustrating the broad bipartisan support for this measure. The Senate 
Committee on Environment and Public Works recently reported out S. 2257 
which contains most of the provisions in Title I of the House-passed 
bill. That bill is expected to be taken up under unanimous consent 
before adjournment; however, the other body is proceeding toward 
adjournment as a slower pace than the House.
  Therefore, the House Committee on Banking, Finance and Urban Affairs 
has joined with the Committee on Public Works and Transportation to 
introduce in the House a bill which is identical to S. 2257. By 
adopting this new bill in the House now, we will not be faced with the 
unpleasant prospect that the Senate does not act on its bill until 
after the House has adjourned and therefore have the reauthorization 
die.
  Although there are some things in the House-passed legislation that I 
personally would liked to have seen retained in the Senate bill, S. 
2257--and by extension, the new measure we are now introducing--is a 
good and important bill. It not only reauthorizes EDA, but helps to 
further efforts already underway to significantly retool the agency, to 
make it far more effective, responsive, and user-friendly:
  It tightens EDA's eligibility criteria for targeting its assistance 
grants, so that only communities with genuine economic distress can 
qualify.
  It requires the EDA to dramatically expedite its processing of grants 
applications, reducing the response time to just 60 days.
  It requires performance evaluations of the agency's technical and 
planning assistance programs.
  It expands the category of eligible recipients so that innovative 
community development corporations and other not-for-profit economic 
development organizations can now qualify for EDA assistance.
  It creates an Office of Strategic Economic Development Planning and 
Policy to support research, evaluation, and demonstration projects on 
``best practices'' in economic development, and to develop both short- 
and long-term policies regarding economic development issues. The 
Office is in particular directed to study and evaluate innovative 
economic development financing tools, such as loan guarantees. This 
important new office will enable EDA to take a leadership role in 
fostering the development and diffusion of state-of-the-art knowledge 
and approaches to economic development at the Federal, State and local 
level.

  S. 2257 also requires that the new Office establish and lead a new 
Federal Coordinating Council for Economic Development comprised of 
representatives of all Federal agencies engaged in economic development 
activities. To overcome the current fragmentation of such programs 
within the Federal Government, this effort will attempt to develop a 
unified framework for designing and implementing a government-wide 
strategy for addressing economic development issues.
  It authorizes a new Office of Economic Development Information, which 
expands the roles and responsibilities of an existing conversion 
information clearinghouse created last year by administrative action.
  It authorizes EDA's new competitive communities pilot program. This 
initiative will provide assistance to distressed communities in a 
national competition, with awards given to the best proposals for 
stimulating new private sector business activities, including the 
modernization, expansion, recruitment, and development of high-growth 
industries that generate new long-term jobs.
  It requires the Secretary to issue and implement regulations that 
will effectively prioritize allocations by the EDA based on the level 
of distress of an area, rather than on preference for geographic area 
or a specific type of economic distress.
  It makes it easier for EDA to provide support to communities with 
military base closures, even before an installation has actually 
closed, thus giving communities adequate time to make and implement 
their response strategies.
  It defederalizes EDA revolving loan funds after the initial repayment 
of loans, thus removing some of the burden of Federal regulations on 
further utilization of these funds for new economic development 
projects.
  It allows loans and other financial instruments in an EDA revolving 
loan fund to be sold to a third party. This also will expand the 
utility of these funds for new economic development activities within 
the region in which the loan fund operates.
  This impressive list includes only some of the innovative provisions 
in this legislation that I believe will help EDA become one of the most 
effective Federal agencies in this Government. I therefore strongly 
urge my colleagues to vote for this bill, which will make the 
reauthorization of the Economic Development Administration a reality 
for the first time in 14 years.
  Mr. DUNCAN. Mr. Speaker, further reserving the right to object, I 
yield to my friend, the gentleman from Erie, PA [Mr. Ridge], the next 
Governor of Pennsylvania.
  Mr. RIDGE. Mr. Speaker, I thank the gentleman for yielding.
  I want to thank my colleague, the gentleman from Pennsylvania, with 
whom I have had the pleasure and privilege of chairing the 
subcommittee.
  I would just tell my colleagues that the appropriation of this $415 
million in this measure, given both the technical amendments we have 
made to the EDA proposal, streamlining the application process, 
expanding these dollars through loan guarantees, using them to leverage 
more private dollars, providing for the sale of these loans to the 
secondary market; we are going to recycle these Federal dollars so we 
will again expand a little bit further the pool of these resources to 
help communities combat either long-term economic decline, deal with 
defense conversion, deal with natural-disaster relief.
  Again, the technical changes, as well as the changes that we brought 
into this EDA Program to expand the pool of resources through loan 
guarantees and through recycling and securitization, really enhance 
this authorization.
  I am grateful to my colleagues for giving me the opportunity to 
participate in the dialog. More importantly, I am grateful for the 
opportunity to work with them during the past 2 years to make 
substantial improvements in this economic development tool.
  Mr. DUNCAN. Mr. Speaker, further reserving the right to object, I 
thank especially our outstanding chairman, the gentleman from 
California [Mr. Mineta], for his explanation of this bill, along with 
the chairman of the subcommittee, the gentleman from West Virginia [Mr. 
Wise], for his help, and the other gentlemen who spoke.
  At this time I will state that there is no Member on this side of the 
aisle who has any objection to this bill.
  Mr. Speaker, I withdraw my reservation of objection.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from West Virginia?
  There was no objection.
  The Clerk read the bill, as follows:

                               H.R. 5243

       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 ``Economic 
     Development Reauthorization Act of 1994''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:
       Sec. 1. Short title; table of contents.
       Sec. 2. Direct and supplementary grants.
       Sec. 3. Grants for public works facilities.
       Sec. 4. Repeal of financial assistance for sewer 
           facilities.
       Sec. 5. Relationship of overall economic development plan 
           to public works and development facility loans.
       Sec. 6. Elimination of overall economic development 
           program.
       Sec. 7. Redevelopment area loan program.
       Sec. 8. Technical assistance, research, and information.
       Sec. 9. Business outreach center demonstration project.
       Sec. 10. Office of Strategic Economic Development Planning 
           and Policy.
       Sec. 11. Office of Economic Development Information.
       Sec. 12. Authorization of appropriations for technical 
           assistance, research, and information.
       Sec. 13. Redevelopment areas.
       Sec. 14. Annual review.
       Sec. 15. Economic development districts.
       Sec. 16. Equity between rural and urban areas.
       Sec. 17. Applications for assistance.
       Sec. 18. Performance evaluations of grant recipients.
       Sec. 19. Transfer of funds.
       Sec. 20. Extension of benefits.
       Sec. 21. Supervision of Regional Counsels.
       Sec. 22. Purpose.
       Sec. 23. Definition of eligible recipient.
       Sec. 24. Base closings and realignments.
       Sec. 25. Outreach to communities adversely affected by 
           closures and realignments of military installations.
       Sec. 26. Treatment of revolving loan funds.
       Sec. 27. Sale of financial instruments in revolving loan 
           funds.
       Sec. 28. Competitive communities pilot program.
       Sec. 29. Special economic development and adjustment 
           assistance.
       Sec. 30. Compliance with Buy American Act.
       Sec. 31. Regulatory relief.

     SEC. 2. DIRECT AND SUPPLEMENTARY GRANTS.

       (a) Grants.--Section 101(a) of the Public Works and 
     Economic Development Act of 1965 (42 U.S.C. 3131(a)) is 
     amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``representing any redevelopment area or part thereof'' and 
     inserting ``acting in cooperation with an official of a local 
     government''; and
       (2) in paragraph (1)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``acquisition, construction'' and inserting ``acquisition, 
     design, engineering, construction'';
       (B) by striking subparagraph (C) and inserting the 
     following new subparagraph:
       ``(C) the area for which the project is to be undertaken 
     has an approved overall economic development plan as provided 
     in section 402 and such project is consistent with such plan; 
     and''; and
       (C) in subparagraph (D)--
       (i) by striking ``so designated under section 401(a)(6),'' 
     and inserting ``described in section 401(a)(7),''; and
       (ii) by striking ``area.'' and inserting ``area; and''.
       (b) Considerations for Supplementary Grants.--Section 
     101(c) of such Act is amended--
       (1) in the second and third sentences, by striking 
     ``designated as such under section 401(a)(6) of this Act.'' 
     and inserting ``described in section 401(a)(7).''; and
       (2) in the last sentence--
       (A) by striking ``the area, the'' and inserting ``the area 
     and the''; and
       (B) by striking ``, and the amount of such'' and all that 
     follows and inserting a period.

     SEC. 3. GRANTS FOR PUBLIC WORKS FACILITIES.

       Section 105 of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3135) is amended to read as follows:

     ``SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title $195,000,000 for each of fiscal years 1995 through 
     1997. Such sums shall remain available until expended. Not 
     less than 15 percent and not more than 35 percent of the 
     amounts appropriated for any of fiscal years 1995 through 
     1997 under this section shall be expended in redevelopment 
     areas described in section 401(a)(7).''.

     SEC. 4. REPEAL OF FINANCIAL ASSISTANCE FOR SEWER FACILITIES.

       (a) In General.--Title I of the Public Works and Economic 
     Development Act of 1965 (42 U.S.C. 3131-3137) is amended--
       (1) by repealing section 106;
       (2) by redesignating section 107 as section 104; and
       (3) by moving such section 104 to appear after section 103.
       (b) Conforming Amendment.--Section 211(b)(3) of the 
     Appalachian Regional Development Act of 1965 (40 U.S.C. App. 
     211(b)(3)) is amended in the last sentence by striking 
     ``Notwithstanding'' and all that follows through ``education-
     related'' and inserting ``An education-related''.

     SEC. 5. RELATIONSHIP OF OVERALL ECONOMIC DEVELOPMENT PLAN TO 
                   PUBLIC WORKS AND DEVELOPMENT FACILITY LOANS.

       Section 201(a) of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3141(a)) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``representing any redevelopment area thereof'' and inserting 
     ``acting in cooperation with an official of a local 
     government''; and
       (2) by striking paragraph (5) and inserting the following 
     new paragraph:
       ``(5) such area has an approved overall economic 
     development plan as provided in section 402 and the project 
     for which financial assistance is sought is consistent with 
     such plan.''.

     SEC. 6. ELIMINATION OF OVERALL ECONOMIC DEVELOPMENT PROGRAM.

       Section 202(b) of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3142(b)) is amended--
       (1) in paragraph (1), by striking ``Such financial 
     assistance shall not be extended'' and inserting ``The 
     applicant for such financial assistance shall include, in the 
     application of the applicant for such assistance, an 
     assurance that the assistance will not be used''; and
       (2) in paragraph (10), by striking ``there shall be 
     submitted to and approval of the Secretary an overall program 
     for the economic development of the area and'' and inserting 
     ``the applicant shall submit to the Secretary under section 
     402, and obtain approval of, an overall economic development 
     plan and there is''.

     SEC. 7. REDEVELOPMENT AREA LOAN PROGRAM.

       (a) In General.--Section 204(a) of the Public Works and 
     Economic Development Act of 1965 (42 U.S.C. 3144(a)) is 
     amended by striking the last two sentences.
       (b) Conforming Amendments.--
       (1) Section 2 of the Act entitled ``An Act to amend the 
     Public Works and Economic Development Act of 1965 to extend 
     the authorizations for title I through IV through fiscal year 
     1971'', approved July 6, 1970 (42 U.S.C. 3162 note) is 
     repealed.
       (2) Section 6 of the Act entitled ``An Act to amend the 
     Public Works and Economic Development Act of 1965 to extend 
     the authorizations for a one-year period'', approved June 18, 
     1973 (42 U.S.C. 3162 note) is amended--
       (A) in subsection (a), by striking ``(a)''; and
       (B) by striking subsection (b).

     SEC. 8. TECHNICAL ASSISTANCE, RESEARCH, AND INFORMATION.

       Section 301(a)(1) of the Public Works and Economic 
     Development Act of 1965 (42 U.S.C. 3151(a)(1)) is amended by 
     striking ``areas which he has designated as redevelopment 
     areas under this Act,'' and inserting ``redevelopment 
     areas,''.

     SEC. 9. BUSINESS OUTREACH CENTER DEMONSTRATION PROJECT.

       Section 303 of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3152) is amended to read as follows:

     ``SEC. 303. BUSINESS OUTREACH CENTER DEMONSTRATION PROJECT.

       ``(a) Definition.--As used in this section, the term 
     `isolated small business' means a small business that is 
     unable to effectively access small business services provided 
     by a Federal, State, or local government due to linguistic, 
     cultural, or geographic barriers, as determined by the 
     Secretary.
       ``(b) Demonstration Project.--Using funds made available 
     under this title, the Secretary shall conduct a demonstration 
     project in each of fiscal years 1995 through 1997 for the 
     purpose of demonstrating methods of assisting isolated small 
     businesses to access small business services provided by 
     Federal, State, and local governments.
       ``(c) Establishment of Centers.--In conducting the 
     demonstration project under this section, the Secretary shall 
     establish 3 business outreach centers. At least 1 of the 
     centers shall be located in a rural area.
       ``(d) Duties of Centers.--Each business outreach center 
     established under this section shall--
       ``(1) provide a one-stop clearinghouse to assist isolated 
     small businesses in accessing small business services 
     provided by Federal, State, and local governments; and
       ``(2) improve efficiency in the delivery of such services.
       ``(e) Services To Be Provided.--Each business outreach 
     center established under this section shall provide each of 
     the following services:
       ``(1) Outreach to isolated small businesses.
       ``(2) Assessment of the need of isolated small businesses 
     for assistance services.
       ``(3) Referral of isolated small businesses to small 
     business assistance agencies.
       ``(4) Preparation of materials required by isolated small 
     businesses for participation in small business assistance 
     programs.
       ``(5) Case management to ensure follow-up and quality 
     control of business services.
       ``(6) Coordination of networking among isolated small 
     businesses.
       ``(7) Quality control of small business assistance 
     services.''.

     SEC. 10. OFFICE OF STRATEGIC ECONOMIC DEVELOPMENT PLANNING 
                   AND POLICY.

       Title III of the Public Works and Economic Development Act 
     of 1965 (42 U.S.C. 3151-3153) is amended by adding at the end 
     the following new section:

     ``SEC. 305. OFFICE OF STRATEGIC ECONOMIC DEVELOPMENT PLANNING 
                   AND POLICY.

       ``(a) Establishment.--The Secretary shall establish in the 
     Economic Development Administration an Office of Strategic 
     Economic Development Planning and Policy (referred to in this 
     section as the `Office').
       ``(b) Director.--The Office shall be headed by a Director, 
     who shall be appointed by the Secretary and who shall report 
     to the Assistant Secretary for Economic Development.
       ``(c) Duties.--The duties of the Director are as follows:
       ``(1) Research, evaluation, and demonstration projects.--
     The Director shall support research, evaluation, and 
     demonstration projects to study and assess best practices in 
     economic development and to examine trends and changes in 
     economic conditions that affect regional development. The 
     Director shall conduct a study of innovative economic 
     development financing tools, including loan guarantees, rural 
     development investment zones, and other measures, that may be 
     employed to further economic development of States, regions, 
     and localities.
       ``(2) Policy development.--The Director shall develop and 
     submit to the Secretary recommendations on both short- and 
     long-term policies regarding economic development issues and 
     programs, to help foster the diffusion of innovative, best 
     practices in economic development throughout the Department 
     of Commerce.
       ``(3) Information and coordination.--The Director shall 
     establish procedures to ensure that the Economic Development 
     Administration assumes a central role in developing and 
     promoting means of greater coordination among States, 
     regions, and local communities in the design and 
     implementation of Federal economic development programs, and 
     to foster coordination among Federal economic development 
     programs, to reduce duplication and fragmentation of Federal 
     economic development efforts.
       ``(d) Federal Coordinating Council for Economic 
     Development.--
       ``(1) In general.--There is established a Federal 
     Coordinating Council for Economic Development (referred to in 
     this subsection as the `Council').
       ``(2) Composition of the council.--
       ``(A) In general.--The Council shall be composed of 
     representatives from Federal agencies, appointed by the heads 
     of the agencies, involved in matters that affect regional 
     economic development. The Secretary shall determine the 
     Federal agencies that are involved in matters that affect 
     regional economic development.
       ``(B) Vacancies.--Any vacancy in the Council shall not 
     affect the powers of the Council, but shall be filled in the 
     same manner as the original appointment.
       ``(3) Duties.--The Council shall assist the Secretary in 
     providing a unifying framework for economic development 
     efforts and shall develop a governmentwide strategic plan for 
     economic development. The Council shall work to improve 
     coordination of Federal economic development efforts to 
     eliminate duplication and to direct Federal resources to 
     improve economic conditions.
       ``(4) Travel expenses.--The members of the Council shall 
     not receive compensation for service on the Council but shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the homes or regular places of business 
     of the members in the performance of services for the 
     Council.
       ``(5) Facilities, supplies, and personnel.--
       ``(A) In general.--Upon the request of the Council, the 
     Secretary shall provide to the Council any facilities, 
     supplies, and personnel necessary for the Council to carry 
     out the responsibilities of the Council under this 
     subsection.
       ``(B) Details.--In the case of a detail of a Federal 
     Government employee under paragraph (1), the employee may be 
     detailed to the Council without reimbursement. The detail 
     shall be without interruption or loss of civil service status 
     or privilege.
       ``(6) Hearings.--The Council may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Council considers advisable to 
     carry out this subsection.
       ``(7) Information from federal agencies.--The Council may 
     secure directly from any Federal department or agency such 
     information as the Council considers necessary to carry out 
     this subsection. Upon request of the Council, the head of 
     such department or agency shall furnish such information to 
     the Council.
       ``(8)  Postal services.--The Council may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       ``(9) Termination.--The Council shall terminate 1 year 
     after the date of the establishment of the Council.''.

     SEC. 11. OFFICE OF ECONOMIC DEVELOPMENT INFORMATION.

       Title III of the Public Works and Economic Development Act 
     of 1965 (42 U.S.C. 3151-3153) (as amended by section 10) is 
     further amended by adding at the end the following new 
     section:

     ``SEC. 306. OFFICE OF ECONOMIC DEVELOPMENT INFORMATION.

       ``(a) Establishment.--The Secretary shall establish an 
     Office of Economic Development Information (referred to in 
     this section as the `Office') within the Office of Strategic 
     Economic Development Planning and Policy.
       ``(b) Responsibilities.--The Office shall--
       ``(1) serve as a central information clearinghouse on 
     matters relating to economic development, economic 
     adjustment, disaster recovery, industrial retention, and 
     defense reinvestment programs and activities of the Federal 
     and State governments, including political subdivisions of 
     the States; and
       ``(2) help potential and actual applicants for economic 
     development, economic adjustment, disaster recovery, 
     industrial retention, and defense reinvestment assistance 
     under Federal, State, and local laws in locating and applying 
     for such assistance, including financial and technical 
     assistance.
       ``(c) Information Data Bases.--
       ``(1) Uses.--The Office shall develop information data 
     bases for use by Federal departments and agencies, State and 
     local governmental agencies, public and private entities, and 
     individuals to assist such agencies, entities, and 
     individuals in the process of identifying and applying for 
     assistance and resources under economic development, economic 
     adjustment, disaster recovery, 
     industrial retention, and defense reinvestment programs and 
     activities of the Federal, State, and local governments.
       ``(2) Specific kinds of information required to be 
     included.--The data bases shall include each of the following 
     kinds of information:
       ``(A) A comprehensive compilation of all relevant 
     information concerning available economic development, 
     economic adjustment, disaster recovery, industrial retention, 
     and defense reinvestment programs of the Federal Government, 
     including key contact personnel, descriptions of the 
     application process, eligibility requirements and criteria, 
     selection and followup procedures, and other such relevant 
     information.
       ``(B) A compilation of major State and local governmental 
     economic development, economic adjustment, disaster recovery, 
     industrial retention, and defense reinvestment assistance 
     programs, including lists of appropriate offices, officers, 
     and contact personnel connected with, or involved in, such 
     programs.
       ``(C) A compilation of relevant and available economic data 
     and trends, including information about the national, 
     regional, and local impacts of trade agreements, defense 
     spending and downsizing, technological change, and other 
     sources of substantial economic dislocation.
       ``(D) A compilation of case studies and best practices in 
     economic development, adjustment, and reinvestment.
       ``(E) A compilation of technology utilization programs, 
     assistance, and resources.
       ``(F) A compilation of published works (books, reports, 
     articles, videos, and tapes), and selected texts of such 
     works, related to all facets of economic development, 
     economic adjustment, and defense reinvestment.
       ``(G) A compilation of information on case studies on early 
     warning and intervention efforts.
       ``(3) Points of public access.--
       ``(A) In general.--The Office shall establish several means 
     to ensure easy access by the public and others to such data 
     bases, and to ensure that the data bases be as accessible, 
     user-friendly, culturally neutral, and affordable as 
     possible.
       ``(B) Means of access.--Access to the data services of the 
     Office shall include each of the following means:
       ``(i) A toll-free nationwide telephone number to provide 
     direct phone access to the public.
       ``(ii) On-line electronic access through existing computer 
     network services and publicly available computer data base 
     access facilities, such as at repository libraries and by 
     direct call-in via modem.
       ``(iii) Printed manuals and orientation materials.
       ``(iv) Periodic orientation workshops available to the 
     public.
       ``(v) On-call information specialists to address special 
     problems requiring person-to-person assistance.
       ``(d) Interagency Coordination.--The Secretary shall enter 
     into such agreements and understandings as may be necessary 
     with other Federal departments and agencies to coordinate the 
     accomplishment of the objectives of this section.''.

     SEC. 12. AUTHORIZATION OF APPROPRIATIONS FOR TECHNICAL 
                   ASSISTANCE, RESEARCH, AND INFORMATION.

       Title III of the Public Works and Economic Development Act 
     of 1965 (42 U.S.C. 3151-3153) (as amended by section 11) is 
     further amended by adding at the end the following new 
     section:

     ``SEC. 307. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title $50,000,000 for each of fiscal years 1995 through 1997. 
     Such sums shall remain available until expended.''.

     SEC. 13. REDEVELOPMENT AREAS.

       Section 401 of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3161) is amended to read as follows:

     ``SEC. 401. AREA ELIGIBILITY.

       ``(a) Certification.--An applicant seeking assistance under 
     title I or II to undertake a project for an area shall 
     certify, as part of an application for such assistance, that 
     the area on the date of submission of such application meets 
     1 or more of the following criteria:
       ``(1) The per capita income of the area is 80 percent or 
     less of the per capita income of the United States.
       ``(2) The average rate of unemployment in the area 
     (seasonally adjusted), as determined by the Secretary of 
     Labor for the most recent 24-month period for which 
     statistics are available, minus the national average rate of 
     unemployment (seasonally adjusted), as so determined, is 
     equal to or exceeds 1 percent.
       ``(3) The average rate of unemployment in the area 
     (seasonally adjusted), as determined by the Secretary of 
     Labor for the most recent 12-month period for which 
     statistics are available, minus the national average rate of 
     unemployment (seasonally adjusted), as so determined, is 
     equal to or exceeds 2 percent.
       ``(4) The area has experienced or is about to experience a 
     sudden economic dislocation resulting in job loss that is 
     significant both in terms of the number of jobs eliminated 
     and the effect on the rate of unemployment in the area (if 
     information on such rate is available), as such rate is 
     determined by the Secretary of Labor.
       ``(5) The population growth rate of the United States, as 
     determined by the Secretary of Commerce for an appropriate 
     period, minus the population growth rate of the area, as so 
     determined, is equal to or exceeds 3 percent.
       ``(6) The area has experienced a decline in total 
     employment that is equal to or exceeds 2 percent over the 
     most recent 5-year period for which statistics are available, 
     as such employment is determined by the Secretary of Labor, 
     acting through the Commissioner of Labor Statistics.
       ``(7) The area is a community or neighborhood (defined 
     without regard to political or other subdivisions or 
     boundaries) that the Secretary determines has 1 or more of 
     the following conditions:
       ``(A) A large concentration of low-income persons.
       ``(B) A rural or urban area having substantial outmigration 
     or substantial economic deterioration and unemployment.
       ``(C) Substantial unemployment.
       ``(b) Documentation.--
       ``(1) Data and statistics.--A certification made under 
     subsection (a) shall be supported by Federal data, if 
     available, and in other cases by data available through the 
     appropriate State government. The applicant shall use the 
     most recent statistics available to support the 
     certification.
       ``(2) Acceptance of data.--The Secretary shall accept the 
     data unless the Secretary determines that the data are 
     inaccurate.
       ``(c) Special Rule.--With respect to a redevelopment area 
     described in subsection (a)(7)--
       ``(1) the project to be carried out in the area shall not 
     be subject to section 101(a)(1)(A);
       ``(2) the area shall not be subject to section 
     101(a)(1)(C); and
       ``(3) the area shall not be considered to be a 
     redevelopment area for purposes of section 403(a)(1)(B).
       ``(d) Prior Designation.--Any designation of a 
     redevelopment area for the purposes of this Act that was made 
     before the date of enactment of the Economic Development 
     Reauthorization Act of 1994 shall not be effective after such 
     date.
       ``(e) Definition.--As used in this Act, the term 
     `redevelopment area' means an area that is the subject of a 
     certification that is--
       ``(1) described in subsection (a); and
       ``(2) submitted by an applicant as part of an application 
     for assistance--
       ``(A) that is described in subsection (a); and
       ``(B) for which the applicant obtains the approval of the 
     Secretary.''.

     SEC. 14. ANNUAL REVIEW.

       (a) In General.--Section 402 of the Public Works and 
     Economic Development Act of 1965 (42 U.S.C. 3162) is amended 
     to read as follows:

     ``SEC. 402. OVERALL ECONOMIC DEVELOPMENT PLAN AND INVESTMENT 
                   STRATEGY.

       ``(a) Overall Economic Development Plan and Investment 
     Strategy.--The Secretary may provide assistance under title I 
     or II to an applicant for a project to be undertaken in an 
     area only if the applicant has prepared and submitted to the 
     Secretary, and obtained approval of, an overall economic 
     development plan or an investment strategy. Such an overall 
     economic development plan or investment strategy shall--
       ``(1) identify the economic development problems to be 
     addressed using such assistance;
       ``(2) identify past, present, and projected further 
     economic development investments in such area and public and 
     private participants and sources of funding for such 
     investments; and
       ``(3) set forth a strategy for addressing the economic 
     development problems identified pursuant to paragraph (1) and 
     describe how the strategy will solve such problems.
       ``(b) Application Requirements.--In submitting an 
     application for assistance under title I or II, an applicant 
     shall describe how the proposed project implements the plan 
     or strategy, provide estimates of costs and timetables for 
     completion for the project, and provide a summary of public 
     and private resources expected to be available for the 
     project.
       ``(c) Existing Plans and Investment Strategies.--To the 
     maximum extent practicable, the Secretary shall approve under 
     subsection (a) overall economic development plans, and 
     overall economic development programs, that were approved by 
     the Secretary under this Act before the date of enactment of 
     the Economic Development Reauthorization Act of 1994 and that 
     substantially meet the requirements of this section.
       ``(d) Definition.--As used in this Act, the term `economic 
     development plan' includes--
       ``(1) a plan or program described in subsection (c) and 
     submitted for approval under subsection (a); and
       ``(2) an investment strategy submitted for approval under 
     subsection (a) in lieu of such a plan.''.
       (b) Conforming Amendments.--
       (1) Trade act of 1974.--Section 273(c)(2) of the Trade Act 
     of 1974 (19 U.S.C. 2373(c)(2)) is amended--
       (A) by striking ``overall economic development program'' 
     and inserting ``overall economic development plan or 
     investment strategy''; and
       (B) by striking ``section 202(b)(10)'' and inserting 
     ``section 402''.
       (2) Community economic development act of 1981.--Section 
     626(b)(1) of the Community Economic Development Act of 1981 
     (42 U.S.C. 9815(b)(1)) is amended--
       (A) by striking ``Publc'' and inserting ``Public'';
       (B) by striking ``overall economic development program'' 
     and inserting ``overall economic development plan or 
     investment strategy''; and
       (C) by striking ``section 202(b)(10)'' and inserting 
     ``section 402''.

     SEC. 15. ECONOMIC DEVELOPMENT DISTRICTS.

       (a) Relationship to Overall Economic Development Plans.--
     Section 403 of the Public Works and Economic Development Act 
     of 1965 (42 U.S.C. 3171) is amended--
       (1) in subsections (a)(1)(C), (a)(1)(D), (a)(2)(A), 
     (a)(3)(A), (a)(4)(B), (e), and (i) by striking ``overall 
     economic development program'' and inserting ``overall 
     economic development plan'';
       (2) in subsection (a)(1)(D), by striking ``program'' the 
     second place the term appears and inserting ``plan''; and
       (3) in subsections (b) and (b)(2)(B), by striking ``overall 
     economic development programs'' and inserting ``overall 
     economic development plans''.
       (b) Relationship to Redevelopment Area.--Section 403(a)(4) 
     of such Act is amended by striking ``(designated under 
     section 401)''.
       (c) Economic Development District Defined.--Section 403(d) 
     of such Act is amended by adding at the end the following new 
     sentence: ``Such term includes any economic development 
     district designated by the Secretary under this section 
     before the date of enactment of the Economic Development 
     Reauthorization Act of 1994, unless the Secretary terminates 
     the designation.''.
       (d) Funding.--Section 403 of such Act is amended--
       (1) by striking subsection (g) and inserting the following 
     new subsection:
       ``(g) Amounts authorized to be appropriated under other 
     sections of this Act shall be available for purposes of 
     carrying out paragraphs (3) and (4) of subsection (a).'';
       (2) by striking subsection (h); and
       (3) by redesignating subsections (i) and (j) as subsections 
     (h) and (i), respectively.

     SEC. 16. EQUITY BETWEEN RURAL AND URBAN AREAS.

       Title IV of the Public Works and Economic Development Act 
     of 1965 (42 U.S.C. 3161 et seq.) is amended by adding at the 
     end the following new part:

             ``PART E--EQUITY BETWEEN RURAL AND URBAN AREAS

     ``SEC. 406. ALLOCATIONS BASED ON THE LEVEL OF ECONOMIC 
                   DISTRESS OF AN AREA.

       ``Not later than 6 months after the date of enactment of 
     the Economic Development Reauthorization Act of 1994, the 
     Secretary shall issue and implement regulations containing 
     criteria and procedures to prioritize allocations of Federal 
     assistance made under this Act, so that, notwithstanding any 
     other provision of this Act, the level of economic distress 
     of an area, not a preference for a geographic area or a 
     specific type of economic distress, is the primary factor 
     considered by the Secretary in determining whether the area 
     receives an allocation of Federal assistance under this 
     Act.''.

     SEC. 17. APPLICATIONS FOR ASSISTANCE.

       (a) Expedited Processing.--Title VI of the Public Works and 
     Economic Development Act of 1965 (42 U.S.C. 3201-3204) is 
     amended by adding at the end the following new section:

     ``SEC. 605. EXPEDITED PROCESSING OF APPLICATIONS.

       ``(a) Guidelines.--Not later than 60 days after the date of 
     enactment of this section, the Assistant Secretary for 
     Economic Development shall--
       ``(1) develop and publish in the Federal Register 
     guidelines that establish procedures to expedite the 
     processing of applications for assistance under this Act; and
       ``(2) transmit to the Committee on Public Works and 
     Transportation of the House of Representatives and the 
     Committee on Environment and Public Works of the Senate a 
     report containing such guidelines.
       ``(b) Contents.--Guidelines to be developed and published 
     under subsection (a) shall, at a minimum, provide for--
       ``(1) increased reliance on self-certification by 
     applicants for such assistance to establish compliance with 
     other Federal laws;
       ``(2) greater use of uniform application forms and 
     procedures;
       ``(3) delegation of decisionmaking authority to regional 
     offices of the Economic Development Administration; and
       ``(4) reduction in the time and number of reviews conducted 
     by offices of the Department of Commerce other than the 
     Economic Development Administration.''.
       (b) Uniform Application Form.--Title VI of such Act (as 
     amended by subsection (a)) is further amended by adding at 
     the end the following new section:

     ``SEC. 606. UNIFORM APPLICATION FORM.

       ``(a) Development.--The Secretary shall, in cooperation 
     with the heads of appropriate Federal departments and 
     agencies, develop a general, simplified application form for 
     grant assistance under this Act that may be used by all 
     Federal departments and agencies that provide grant 
     assistance.
       ``(b) Report.--Not later than 180 days after the date of 
     enactment of this section, the Secretary shall transmit to 
     Congress a report on use of the form developed pursuant to 
     subsection (a) by Federal departments and agencies.''.

     SEC. 18. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

       Title VI of the Public Works and Economic Development Act 
     of 1965 (42 U.S.C. 3201-3204) (as amended by subsections (a) 
     and (b) of section 17) is further amended by adding at the 
     end the following new section:

     ``SEC. 607. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

       ``(a) In General.--At least once every 2 years, the 
     Secretary shall conduct an evaluation of each university 
     center receiving assistance under title III (referred to in 
     this section as a `university center') and economic 
     development district receiving grant assistance under this 
     Act to assess the performance and contribution toward job 
     creation of the recipient.
       ``(b) Criteria.--
       ``(1) Establishment.--The Secretary shall establish 
     criteria for use in conducting evaluations under subsection 
     (a).
       ``(2) Criteria for university centers.--The criteria for 
     evaluation of a university center shall, at a minimum, 
     provide for an assessment of the contribution of the center 
     to providing technical assistance, conducting applied 
     research, and disseminating results of the activities of the 
     center.
       ``(3) Criteria for economic development districts.--The 
     criteria for evaluation of an economic development district 
     shall, at a minimum, provide for an assessment of management 
     standards, financial accountability, and program performance.
       ``(c) Peer Review.--In conducting an evaluation of a 
     university center under subsection (a), the Secretary shall 
     provide for the participation in the evaluation of at least 1 
     other university center on a cost-reimbursement basis.''.

     SEC. 19. TRANSFER OF FUNDS.

       Section 708 of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3218) is amended by adding at the end 
     the following new subsection:
       ``(d) Notwithstanding any other provision of law, the 
     Secretary may accept such transfers of funds from other 
     departments and agencies of the Federal Government as the 
     Secretary determines to be appropriate and use such funds to 
     carry out objectives of this Act, if the Secretary uses the 
     funds to carry out objectives for which (and in accordance 
     with the terms under which) the funds are specifically 
     authorized and appropriated. Not more than 5 percent of such 
     funds may be transferred to the account relating to salaries 
     and expenses of the Economic Development Administration.''.

     SEC. 20. EXTENSION OF BENEFITS.

       Section 715 of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3225) is amended by striking ``such 
     areas as may be designated as `redevelopment areas' or 
     `economic development centers' under the authority of section 
     401 or 403 of this Act:'' and inserting ``redevelopment areas 
     and such areas as may be designated as `economic development 
     centers' under section 403:''.

     SEC. 21. SUPERVISION OF REGIONAL COUNSELS.

       Title VII of the Public Works and Economic Development Act 
     of 1965 (42 U.S.C. 3211-3226) is amended by adding at the end 
     the following new section:

     ``SEC. 717. SUPERVISION OF REGIONAL COUNSELS.

       ``The Secretary shall take such actions as may be necessary 
     to ensure that individuals serving as Regional Counsels of 
     the Economic Development Administration report directly to 
     their respective Regional Directors, except that the General 
     Counsel shall have authority to make determinations relating 
     to the technical legal ability of the individuals.''.

     SEC. 22. PURPOSE.

       The first sentence of section 901 of the Public Works and 
     Economic Development Act of 1965 (42 U.S.C. 3241) is amended 
     by striking ``It is the purpose of this title'' and inserting 
     ``The purposes of title I and of this title are''.

     SEC. 23. DEFINITION OF ELIGIBLE RECIPIENT.

       Section 902 of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3242) is amended to read as follows:

     ``SEC. 902. DEFINITION.

       ``As used in this title, the term `eligible recipient' 
     means a redevelopment area, an economic development district, 
     an Indian tribe, a State, a city or other political 
     subdivision of a State, a consortium of such political 
     subdivisions, a public or private nonprofit organization, or 
     a public or private nonprofit association.''.

     SEC. 24. BASE CLOSINGS AND REALIGNMENTS.

       Section 903 of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3243) is amended--
       (1) in the matter following subparagraph (B) of subsection 
     (a)(1), by striking ``unemployment compensation (in 
     accordance with subsection (d) of this section), rent 
     supplements, mortgage payment assistance, research,'' and 
     inserting ``administrative expenses, industrial retention,''; 
     and
       (2) by adding at the end the following new subsection:
       ``(e)(1) In any case in which the Secretary determines that 
     a need exists for assistance under subsection (a) due to the 
     closure or realignment of a military installation, or for an 
     industrial, a community, or a workforce adjustment due to a 
     reduction in amounts made available under or termination of a 
     defense contract, the Secretary may make such assistance 
     available to an eligible recipient for a project to be 
     carried out on the military installation, for a project to be 
     carried out in a community adversely affected by the closure 
     or realignment, or for defense conversion activities.
       ``(2) Notwithstanding any other provision of law, the 
     Secretary may provide to an eligible recipient any assistance 
     available under this title for a project to be carried out on 
     a military installation that is closed or scheduled for 
     closure or realignment, or for defense conversion activities, 
     without requiring that the eligible recipient have title to 
     the property on which the installation is located or the 
     activities will be carried out, or a leasehold interest in 
     the property, for any specified term.''.

     SEC. 25. OUTREACH TO COMMUNITIES ADVERSELY AFFECTED BY 
                   CLOSURES AND REALIGNMENTS OF MILITARY 
                   INSTALLATIONS.

       Title IX of the Public Works and Economic Development Act 
     of 1965 (42 U.S.C. 3241-3245) is amended--
       (1) by redesignating section 905 as section 909; and
       (2) by inserting after section 904 the following new 
     section:

     ``SEC. 905. OUTREACH TO COMMUNITIES ADVERSELY AFFECTED BY 
                   CLOSURES AND REALIGNMENTS OF MILITARY 
                   INSTALLATIONS.

       ``(a) Designation of Agency Representatives.--The Assistant 
     Secretary for Economic Development shall designate for each 
     State in which communities are adversely affected by closures 
     and realignments of military installations, an individual to 
     serve as a representative of the Economic Development 
     Administration. Such individual may be the State Economic 
     Development Agency Representative or another qualified 
     individual.
       ``(b) Responsibilities.--Individuals appointed as agency 
     representatives under subsection (a) shall provide outreach 
     and technical assistance, to communities adversely affected 
     by closures and realignments of military installations, on 
     obtaining assistance from the Economic Development 
     Administration.''.

     SEC. 26. TREATMENT OF REVOLVING LOAN FUNDS.

       Title IX of the Public Works and Economic Development Act 
     of 1965 (42 U.S.C. 3241-3245) (as amended by section 25) is 
     further amended by inserting after section 905 the following 
     new section:

     ``SEC. 906. TREATMENT OF REVOLVING LOAN FUNDS.

       ``(a) In General.--An amount made available through a grant 
     made under this title that is used by an eligible recipient 
     to establish a revolving loan fund shall not be treated, 
     except as provided by subsection (b), as an amount derived 
     from Federal funds for the purposes of any Federal law after 
     such amount is loaned from the fund to a borrower and repaid 
     to the fund.
       ``(b) Exceptions.--An amount described in subsection (a) 
     that is loaned from a revolving loan fund to a borrower and 
     repaid to the fund--
       ``(1) may be used only for a project that is consistent 
     with the purposes of this title; and
       ``(2) shall be subject to the financial management, 
     accounting, reporting, and auditing requirements that were 
     originally applicable to such amount on the date on which the 
     Secretary made the amount available to the recipient through 
     a grant described in subsection (a).
       ``(c) Regulations.--Not later than 30 days after the date 
     of enactment of this section, the Secretary shall issue 
     regulations to carry out subsection (a).
       ``(d) Public Review and Comment.--Before issuing any final 
     guidelines or administrative manuals governing the operation 
     of revolving loan funds established using amounts from grants 
     made under this title, the Secretary shall provide reasonable 
     opportunity for public review of and comment on such 
     guidelines and administrative manuals.''.

     SEC. 27. SALE OF FINANCIAL INSTRUMENTS IN REVOLVING LOAN 
                   FUNDS.

       Title IX of the Public Works and Economic Development Act 
     of 1965 (42 U.S.C. 3241-3245) (as amended by section 26) is 
     further amended by inserting after section 906 the following 
     new section:

     ``SEC. 907. SALE OF FINANCIAL INSTRUMENTS IN REVOLVING LOAN 
                   FUNDS.

       ``Any loan, loan guarantee, or other financial instrument 
     in the portfolio of a revolving loan fund described in 
     section 906 may be sold, at the discretion of the grant 
     recipient that established the fund, to a third party. The 
     proceeds of the sale--
       ``(1) shall be deposited in the fund and only used for 
     projects that are consistent with the purposes of this title; 
     and
       ``(2) shall be subject to the financial management, 
     accounting, reporting, and auditing requirements that were 
     originally applicable to the financial instrument on the date 
     on which the financial instrument was entered into.''.

     SEC. 28. COMPETITIVE COMMUNITIES PILOT PROGRAM.

       Title IX of the Public Works and Economic Development Act 
     of 1965 (42 U.S.C. 3241-3245) (as amended by section 27) is 
     further amended by inserting after section 907 the following 
     new section:

     ``SEC. 908. COMPETITIVE COMMUNITIES PILOT PROGRAM.

       ``(a) Definition.--As used in this section, the term 
     `eligible intermediary recipient' means--
       ``(1) a redevelopment area or an economic development 
     district established under title IV;
       ``(2) an Indian tribe;
       ``(3) a public-private entity sponsored by a State or other 
     political subdivision of a State, or by a community division 
     of a State;
       ``(4) a community development corporation;
       ``(5) a public or private not-for-profit corporation; and
       ``(6) a consortium of recipients described in any of 
     paragraphs (1) through (5);
     that demonstrates the financial expertise, ability, and legal 
     authority to provide the investment for a transaction, as 
     well as the ability to develop and implement an overall 
     economic development plan as provided in section 402.
       ``(b) Program.--The Secretary may establish a competitive 
     communities pilot program and, in carrying out the program, 
     may make grants, loans, or loan guarantees directly to or for 
     the benefit of any eligible recipients (including eligible 
     intermediary recipients) for the purpose of investing in 
     identified business transactions that will create 
     opportunities for long-term employment in economically 
     distressed communities.
       ``(c) Applications.--To be eligible to receive financial 
     assistance under this section, a person or an entity shall 
     submit an application to the Secretary at such time, in such 
     manner, and containing such information as the Secretary may 
     require.
       ``(d) Panel of Experts.--The Secretary shall establish a 
     panel of experts to review applications submitted to the 
     Secretary under subsection (c). The panel shall consist of 7 
     members as follows:
       ``(1) The Secretary (or the designee of the Secretary).
       ``(2) The Assistant Secretary for Economic Development.
       ``(3) 1 Regional Director of the Economic Development 
     Administration, appointed by the Secretary.
       ``(4) 1 State Economic Development Representative, 
     appointed by the Secretary.
       ``(5) 3 private citizens with economic development and 
     business expertise, appointed by the Secretary.
       ``(e) Criteria for Selection.--The Secretary shall select 
     recipients to receive financial assistance under this 
     section, based on the quality of the applications submitted 
     and the extent to which the applications describe activities 
     to encompass investment initiatives that promote public and 
     private sector partnerships to advance the competitiveness of 
     the economy of local communities through the creation of 
     long-term sustainable employment opportunities.
       ``(f) Deadlines.--
       ``(1) Action on applications.--In the case of each 
     application submitted under subsection (c) that is received 
     by a deadline established and published in the Federal 
     Register, the Secretary shall approve or disapprove the 
     application on or before the 60th day after the deadline.
       ``(2) Use of assistance.--Any agreement relating to an 
     amount of financial assistance under this section that is 
     entered into by the Secretary and an eligible recipient under 
     the program shall require that the eligible recipient provide 
     assistance to businesses using the amount on or before the 
     90th day after the date of receipt of such amount or shall 
     return any remaining portion of such amount to the Secretary 
     for subsequent awards under the program.''.

     SEC. 29. SPECIAL ECONOMIC DEVELOPMENT AND ADJUSTMENT 
                   ASSISTANCE.

       Section 909 of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3245) (as redesignated by section 
     25(1)) is amended to read as follows:

     ``SEC. 909. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     to carry out this title $50,000,000 for each of fiscal years 
     1995 through 1997. Such sums shall remain available until 
     expended.
       ``(b) Additional Amounts.--In addition to the 
     appropriations authorized by subsection (a), there are 
     authorized to be appropriated to carry out this title 
     $120,000,000 for fiscal year 1995, and such sums as may be 
     necessary for each of fiscal years 1996 and 1997, to provide 
     assistance for activities related to closures and 
     realignments of military installations and for defense 
     conversion activities and to provide assistance in the case 
     of a natural disaster. Such sums shall remain available until 
     expended.
       ``(c) Set-Aside for Competitive Communities Pilot 
     Program.--Of the amounts appropriated under subsections (a) 
     and (b), not more than $40,000,000 shall be available for 
     fiscal year 1995 to carry out section 908, of which not more 
     than $15,000,000 shall be available from amounts appropriated 
     under subsection (a) and not more than $25,000,000 shall be 
     available from amounts appropriated under subsection (b).''.

     SEC. 30. COMPLIANCE WITH BUY AMERICAN ACT.

       None of the funds made available under this title, or any 
     amendment made by this title, may be expended to acquire 
     articles, materials, or supplies, or to procure services, in 
     violation of the applicable provisions of sections 2 through 
     4 of title III of the Act of March 3, 1933 (commonly known as 
     the ``Buy American Act'') (41 U.S.C. 10a-10b-1).

     SEC. 31. REGULATORY RELIEF.

       The Assistant Secretary for Economic Development, acting on 
     a petition from an entity impacted adversely by a Federal 
     regulation on a matter of economic development described in 
     the Public Works and Economic Development Act of 1965 (42 
     U.S.C. 3121 et seq.), shall notify the officer who is the 
     head of the department or agency that issued and administers 
     the regulation and suggest that the officer waive regulations 
     that interfere with economic development. Nothing in this 
     section shall be construed to preempt the authority of the 
     head of a department or agency to waive regulations. Nothing 
     in this section shall be construed to affect the ability of 
     the Assistant Secretary for Economic Development to carry out 
     the duties of the Assistant Secretary, as otherwise provided 
     by law.

  The bill was ordered to be engrossed and read a third time, was read 
the third time, and passed, and a motion to reconsider was laid on the 
table.

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