[Congressional Record Volume 144, Number 140 (Thursday, October 8, 1998)]
[Senate]
[Pages S11988-S11989]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DASCHLE (for himself and Mr. Murkowski):
  S. 2595. A bill to amend the Housing and Community Development Act of 
1974 to provide affordable housing and community development assistance 
to rural areas with excessively high rates of outmigration and low per 
capita income levels; to the Committee on Banking, Housing, and Urban 
Affairs.


                     the rural recovery act of 1998

  Mr. DASCHLE. Mr. President, today I am introducing legislation that 
will help rural areas affected by severe population loss improve their 
economic conditions and create high-paying jobs. We are experiencing 
first-hand the challenge of retaining entire generations in many parts 
of rural South Dakota as the agricultural crisis deepens and fewer and 
fewer young people can find economically-rewarding opportunities that 
give them reason to stay. As a result, young people are being forced to 
leave the towns in which they grew up for better jobs in urban areas, 
causing a depressing loss of generational continuity and a foreboding 
sign for the future of these rural communities.
  Too often we forget that while the economic growth experienced in our 
urban areas is a necessary element of a sound national economy, the 
health and vitality of our rural areas are just as critical to our 
Nation's economic future, and to its character. If nothing is done to 
address the out-migration that is currently being experienced by our 
most rural communities, we will continue to jeopardize the future of 
rural America.
  That is why I am introducing legislation to provide these critical 
rural areas with the resources necessary to create the good jobs that 
will help young families remain active residents of the rural 
communities in which they choose to live. The Rural Recovery Act of 
1998 would provide a minimum of $250,000 per year to counties and 
tribes with out-migration levels of fifteen percent or higher, per-
capita income levels that are below the national average, and whose 
exterior borders are not adjacent to a metropolitan area.
  The legislation authorizes the United States Department of Housing 
and Urban Development to set aside $50 million in Community Development 
Block Grant funding. The money, which is already included in the 
agency's budget, will be allocated on a formula basis to rural counties 
and tribes suffering from out migration and low per-capita income 
levels.
  County and tribal governments will be able to use this Federal 
funding to improve their industrial parks, purchase land for 
development, build affordable housing and develop economic recovery 
strategies. All of these important steps will help rural communities 
address their economic challenges and plan for stable long-term growth 
and development.
  While Federal agencies such as the United States Department of 
Agriculture's Office of Rural Development and the Economic Development 
Administration do provide aid for rural development purposes, there are 
no federal programs that provide a steady source of funding for rural 
areas most affected by severe out migration and low per-capita income. 
For these areas, the process of encouraging economic growth is arduous. 
I strongly believe the Rural Recovery Act of 1998 will provide the long 
term assistance required to aid the coordinated efforts of local 
community leaders as they begin economic recovery efforts that will 
ensure a bright future for rural America.
  In August, Senator Murkowski and I introduced legislation to provide 
assistance to rural communities that experience extremely high electric 
power rates. Today, I am pleased that he has agreed to join me in 
cosponsoring this legislation to assist rural areas with high out-
migration and low per-capita incomes. It is important that Congress do 
whatever it can to assist these economically-challenged rural areas to 
remain vibrant participants in the American Dream. Senator Murkowski 
and I expect to combine these bills and introduce them as a single 
piece of legislation next year.
  I hope that my colleagues will join Senator Murkowski and I during 
the 106th Congress to enact these important new policies. I ask 
unanimous consent that the full text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2596

       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 ``Rural Recovery Act of 
     1998''.

     SEC. 2. RURAL RECOVERY COMMUNITY DEVELOPMENT BLOCK GRANTS.

       Title I of the Housing and Community Development Act of 
     1974 (42 U.S.C. 5301 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 123. RURAL RECOVERY COMMUNITY DEVELOPMENT BLOCK 
                   GRANTS.

       ``(a) Findings; Purpose.--
       ``(1) Findings.--Congress finds that--
       ``(A) a modern infrastructure, including affordable 
     housing, wastewater and water service, and advanced 
     technology capabilities is a necessary ingredient of a modern 
     society and development of a prosperous economy with minimal 
     environmental impacts;

[[Page S11989]]

       ``(B) the Nation's rural areas face critical social, 
     economic, and environmental problems, arising in significant 
     measure from the growing cost of infrastructure development 
     in rural areas that suffer from low per capita income and 
     high rates of outmigration and are not adequately addressed 
     by existing Federal assistance programs; and
       ``(C) the future welfare of the Nation and the well-being 
     of its citizens depend on the establishment and maintenance 
     of viable rural areas as social, economic, and political 
     entities.
       ``(2) Purpose.--The purpose of this section is to provide 
     for the development and maintenance of viable rural areas 
     through the provision of affordable housing and community 
     development assistance to eligible units of general local 
     government and eligible Indian tribes in rural areas with 
     excessively high rates of outmigration and low per capita 
     income levels.
       ``(b) Definitions.--In this section:
       ``(1) Eligible unit of general local government.--The term 
     `eligible unit of general local government' means a unit of 
     general local government that is the governing body of a 
     rural recovery area.
       ``(2) Eligible indian tribe.--The term `eligible Indian 
     tribe' means the governing body of an Indian tribe that is 
     located in a rural recovery area.
       ``(3) Grantee.--The term `grantee' means an eligible unit 
     of general local government or eligible Indian tribe that 
     receives a grant under this section.
       ``(4) Indian tribe.--The term `Indian tribe' means any 
     Indian tribe, band, group, and nation, including Alaska 
     Indians, Aleuts, and Eskimos, and any Alaskan Native Village, 
     of the United States, which is considered an eligible 
     recipient under the Indian Self-Determination and Education 
     Assistance Act (Public Law 93-638) or was considered an 
     eligible recipient under chapter 67 of title 31, United 
     States Code, prior to the repeal of such chapter.
       ``(5) Rural recovery area.--The term `rural recovery area' 
     means any geographic area represented by a unit of general 
     local government or an Indian tribe--
       ``(A) the borders of which are not adjacent to a 
     metropolitan area;
       ``(B) in which--
       ``(i) the annual population outmigration level equals or 
     exceeds 15 percent, as determined by Secretary of 
     Agriculture; and
       ``(ii) the per capita income is less than that of the 
     national nonmetropolitan average; and
       ``(C) that does not include a city with a population of 
     more than 2,500.
       ``(6) Unit of general local government.--
       ``(A) In general.--The term `unit of general local 
     government' means any city, county, town, township, parish, 
     village, borough (organized or unorganized), or other general 
     purpose political subdivision of a State; Guam, the Northern 
     Mariana Islands, the Virgin Islands, Puerto Rico, and 
     American Samoa, or a general purpose political subdivision 
     thereof; a combination of such political subdivisions that, 
     except as provided in section 106(d)(4), is recognized by the 
     Secretary; the District of Columbia; and the Trust Territory 
     of the Pacific Islands.
       ``(B) Other entities included.--The term also includes a 
     State or a local public body or agency (as defined in section 
     711 of the Housing and Urban Development Act of 1970), 
     community association, or other entity, that is approved by 
     the Secretary for the purpose of providing public facilities 
     or services to a new community as part of a program meeting 
     the eligibility standards of section 712 of the Housing and 
     Urban Development Act of 1970 or title IV of the Housing and 
     Urban Development Act of 1968.
       ``(c) Grant Authority.--The Secretary may make grants in 
     accordance with this section to eligible units of general 
     local government and eligible Indian tribes that meet the 
     requirements of subsection (d) to carry out eligible 
     activities described in subsection (f).
       ``(d) Eligibility Requirements.--
       ``(1) Statement of rural development objectives.--In order 
     to receive a grant under this section for a fiscal year, an 
     eligible unit of general local government or eligible Indian 
     tribe--
       ``(A) shall--
       ``(i) publish a proposed statement of rural development 
     objectives and a description of the proposed eligible 
     activities described in subsection (f) for which the grant 
     will be used; and
       ``(ii) afford residents of the rural recovery area served 
     by the eligible unit of general local government or eligible 
     Indian tribe with an opportunity to examine the contents of 
     the proposed statement and the proposed eligible activities 
     published under clause (i), and to submit comments to the 
     eligible unit of general local government or eligible Indian 
     tribe, as applicable, on--

       ``(I) the proposed statement and the proposed eligible 
     activities; and
       ``(II) the overall community development performance of the 
     eligible unit of general local government or eligible Indian 
     tribe, as applicable; and

       ``(B) based on any comments received under subparagraph 
     (A)(ii), prepare and submit to the Secretary--
       ``(i) a final statement of rural development objectives;
       ``(ii) a description of the eligible activities described 
     in subsection (f) for which a grant received under this 
     section will be used; and
       ``(iii) a certification that the eligible unit of general 
     local government or eligible Indian tribe, as applicable, 
     will comply with the requirements of paragraph (2).
       ``(2) Public notice and comment.--In order to enhance 
     public accountability and facilitate the coordination of 
     activities among different levels of government, an eligible 
     unit of general local government or eligible Indian tribe 
     that receives a grant under this section shall, as soon as 
     practicable after such receipt, provide the residents of the 
     rural recovery area served by the eligible unit of general 
     local government or eligible Indian tribe, as applicable, 
     with--
       ``(A) a copy of the final statement submitted under 
     paragraph (1)(B);
       ``(B) information concerning the amount made available 
     under this section and the eligible activities to be 
     undertaken with that amount;
       ``(C) reasonable access to records regarding the use of any 
     amounts received by the eligible unit of general local 
     government or eligible Indian tribe under this section in any 
     preceding fiscal year; and
       ``(D) reasonable notice of, and opportunity to comment on, 
     any substantial change proposed to be made in the use of 
     amounts received under this section from 1 eligible activity 
     to another.
       ``(e) Distribution of Grants.--
       ``(1) In general.--In each fiscal year, the Secretary shall 
     distribute to each eligible unit of general local government 
     and eligible Indian tribe that meets the requirements of 
     subsection (d)(1) a grant in an amount described in paragraph 
     (2).
       ``(2) Amount.--Of the total amount made available to carry 
     out this section in each fiscal year, the Secretary shall 
     distribute to each grantee the amount equal to the greater 
     of--
       ``(A) the pro rata share of the grantee, as determined by 
     the Secretary, based on the combined annual population 
     outmigration level (as determined by Secretary of 
     Agriculture) and the per capita income for the rural recovery 
     area served by the grantee; and
       ``(B) $250,000.
       ``(f) Eligible Activities.--Each grantee shall use amounts 
     received under this section for 1 or more of the following 
     eligible activities, which may be undertaken either directly 
     by the grantee, or by any local economic development 
     corporation, regional planning district, nonprofit community 
     development corporation, or statewide development 
     organization authorized by the grantee:
       ``(1) The acquisition, construction, repair, 
     reconstruction, operation, maintenance, or installation of 
     facilities for water and wastewater service or any other 
     infrastructure needs determined to be critical to the further 
     development or improvement of a designated industrial park.
       ``(2) The acquisition or disposition of real property 
     (including air rights, water rights, and other interests 
     therein) for rural community development activities.
       ``(3) The development of telecommunications infrastructure 
     within a designated industrial park that encourages high 
     technology business development in rural areas.
       ``(4) Activities necessary to develop and implement a 
     comprehensive rural development plan, including payment of 
     reasonable administrative costs related to planning and 
     execution of rural development activities.
       ``(5) Affordable housing initiatives.
       ``(g) Performance and Evaluation Report.--
       ``(1) In general.--Each grantee shall annually submit to 
     the Secretary a performance and evaluation report, concerning 
     the use of amounts received under this section.
       ``(2) Contents.--Each report submitted under paragraph (1) 
     shall include a description of--
       ``(i) publish a proposed statement of rural development 
     objectives and a description of the proposed eligible 
     activities described in subsection (f) for which the grant 
     will be used; and
       ``(A) the eligible activities carried out by the grantee 
     with amounts received under this section, and the degree to 
     which the grantee has achieved the rural development 
     objectives included in the final statement submitted under 
     subsection (d)(1);
       ``(B) the nature of and reasons for any change in the rural 
     development objectives or the eligible activities of the 
     grantee after submission of the final statement under 
     subsection (d)(1); and
       ``(C) any manner in which the grantee would change the 
     rural development objectives of the grantee as a result of 
     the experience of the grantee in administering amounts 
     received under this section.
       ``(h) Retention of Income.--A grantee may retain any income 
     that is realized from the grant, if--
       ``(1) the income was realized after the initial 
     disbursement of amounts to the grantee under this section; 
     and
       ``(2) the--
       ``(A) grantee agrees to utilize the income for 1 or more 
     eligible activities; or
       ``(B) amount of the income is determined by the Secretary 
     to be so small that compliance with subparagraph (A) would 
     create an unreasonable administrative burden on the grantee.
       ``(i) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $50,000,000 for 
     each of fiscal years 1999 through 2005.''.




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