[Congressional Record Volume 144, Number 144 (Monday, October 12, 1998)]
[Senate]
[Pages S12418-S12426]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         ECONOMIC DEVELOPMENT ADMINISTRATION REFORM ACT OF 1998

                                 ______
                                 

                       CHAFEE AMENDMENT NO. 3814

  Mr. JEFFORDS (for Mr. Chafee) proposed an amendment to the bill (S. 
2364) to reauthorize and make reforms to programs authorized by the 
Public Works and Economic Development Act of 1965; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Economic 
     Development Administration and Appalachian Regional 
     Development Reform Act of 1998''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                     TITLE I--ECONOMIC DEVELOPMENT

Sec. 101. Short title.
Sec. 102. Reauthorization of Public Works and Economic Development Act 
              of 1965.
Sec. 103. Conforming amendment.
Sec. 104. Transition provisions.
Sec. 105. Effective date.

               TITLE II--APPALACHIAN REGIONAL DEVELOPMENT

Sec. 201. Short title.
Sec. 202. Findings and purposes.
Sec. 203. Meetings.
Sec. 204. Administrative expenses.
Sec. 205. Compensation of employees.
Sec. 206. Administrative powers of Commission.
Sec. 207. Cost sharing of demonstration health projects.
Sec. 208. Repeal of land stabilization, conservation, and erosion 
              control program.
Sec. 209. Repeal of timber development program.
Sec. 210. Repeal of mining area restoration program.
Sec. 211. Repeal of water resource survey.
Sec. 212. Cost sharing of housing projects.
Sec. 213. Repeal of airport safety improvements program.
Sec. 214. Cost sharing of vocational education and education 
              demonstration projects.
Sec. 215. Repeal of sewage treatment works program.
Sec. 216. Repeal of amendments to Housing Act of 1954.
Sec. 217. Supplements to Federal grant-in-aid programs.
Sec. 218. Program development criteria.
Sec. 219. Distressed and economically strong counties.
Sec. 220. Grants for administrative expenses and commission projects.
Sec. 221. Authorization of appropriations for general program.
Sec. 222. Extension of termination date.
Sec. 223. Technical amendment.

                     TITLE I--ECONOMIC DEVELOPMENT

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Economic Development 
     Administration Reform Act of 1998''.

     SEC. 102. REAUTHORIZATION OF PUBLIC WORKS AND ECONOMIC 
                   DEVELOPMENT ACT OF 1965.

       (a) First Section Through Title VI--The Public Works and 
     Economic Development Act of 1965 (42 U.S.C. 3121 et seq.) is 
     amended by striking the first section and all that follows 
     through the end of title VI and inserting the following:

     ``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       ``(a) Short Title.--This Act may be cited as the `Public 
     Works and Economic Development Act of 1965'.
       ``(b) Table of Contents.--The table of contents of this Act 
     is as follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. Findings and declarations.
``Sec. 3. Definitions.

     ``TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND 
                              COORDINATION

``Sec. 101. Establishment of economic development partnerships.
``Sec. 102. Cooperation of Federal agencies.
``Sec. 103. Coordination.

      ``TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

``Sec. 201. Grants for public works and economic development.
``Sec. 202. Base closings and realignments.
``Sec. 203. Grants for planning and grants for administrative expenses.
``Sec. 204. Cost sharing.
``Sec. 205. Supplementary grants.
``Sec. 206. Regulations on relative needs and allocations.
``Sec. 207. Grants for training, research, and technical assistance.
``Sec. 208. Prevention of unfair competition.
``Sec. 209. Grants for economic adjustment.
``Sec. 210. Changed project circumstances.
``Sec. 211. Use of funds in projects constructed under projected cost.
``Sec. 212. Reports by recipients.
``Sec. 213. Prohibition on use of funds for attorney's and consultant's 
              fees.

``TITLE III--ELIGIBILITY; COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

``Sec. 301. Eligibility of areas.
``Sec. 302. Comprehensive economic development strategies.

               ``TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS

``Sec. 401. Designation of economic development districts.
``Sec. 402. Termination or modification of economic development 
              districts.
``Sec. 403. Incentives.
``Sec. 404. Provision of comprehensive economic development strategies 
              to Appalachian Regional Commission.
``Sec. 405. Assistance to parts of economic development districts not 
              in eligible areas.

                       ``TITLE V--ADMINISTRATION

``Sec. 501. Assistant Secretary for Economic Development.
``Sec. 502. Economic development information clearinghouse.
``Sec. 503. Consultation with other persons and agencies.
``Sec. 504. Administration, operation, and maintenance.
``Sec. 505. Businesses desiring Federal contracts.
``Sec. 506. Performance evaluations of grant recipients.
``Sec. 507. Notification of reorganization.

                       ``TITLE VI--MISCELLANEOUS

``Sec. 601. Powers of Secretary.
``Sec. 602. Maintenance of standards.
``Sec. 603. Annual report to Congress.
``Sec. 604. Delegation of functions and transfer of funds among Federal 
              agencies.
``Sec. 605. Penalties.
``Sec. 606. Employment of expediters and administrative employees.
``Sec. 607. Maintenance and public inspection of list of approved 
              applications for financial assistance.
``Sec. 608. Records and audits.
``Sec. 609. Relationship to assistance under other law.
``Sec. 610. Acceptance of certifications by applicants.

                          ``TITLE VII--FUNDING

``Sec. 701. General authorization of appropriations.
``Sec. 702. Authorization of appropriations for defense conversion 
              activities.
``Sec. 703. Authorization of appropriations for disaster economic 
              recovery activities.

     ``SEC. 2. FINDINGS AND DECLARATIONS.

       ``(a) Findings.--Congress finds that--
       ``(1) while the economy of the United States is undergoing 
     a sustained period of economic growth resulting in low 
     unemployment and increasing incomes, there continue to be 
     areas suffering economic distress in the form of high 
     unemployment, low incomes, underemployment, and outmigration 
     as well as areas facing sudden economic dislocations due to 
     industrial restructuring and relocation, defense base 
     closures and procurement cutbacks, certain Federal actions 
     (including environmental requirements that result in the 
     removal of economic activities from a locality), and natural 
     disasters;
       ``(2) as the economy of the United States continues to 
     grow, those distressed areas contain significant human and 
     infrastructure resources that are underused;
       ``(3) expanding international trade and the increasing pace 
     of technological innovation offer both a challenge and an 
     opportunity to the distressed communities of the United 
     States;
       ``(4) while economic development is an inherently local 
     process, the Federal Government should work in partnership 
     with public and private local, regional, and State 
     organizations to ensure that existing resources are not 
     wasted and all Americans have an opportunity to participate 
     in the economic growth of the United States;
       ``(5) in order to avoid wasteful duplication of effort and 
     to limit the burden on distressed communities, Federal, 
     State, and local economic development activities should be 
     better planned and coordinated and Federal program 
     requirements should be simplified and made more consistent;
       ``(6) the goal of Federal economic development activities 
     should be to work in partnership with local, regional, and 
     State public and private organizations to support the 
     development of private sector businesses and jobs in 
     distressed communities;
       ``(7) Federal economic development efforts will be more 
     effective if they are coordinated with, and build upon, the 
     trade and technology programs of the United States; and

[[Page S12419]]

       ``(8) under this Act, new employment opportunities should 
     be created by developing and expanding new and existing 
     public works and other facilities and resources rather than 
     by merely transferring jobs from one area of the United 
     States to another.
       ``(b) Declarations.--Congress declares that, in order to 
     promote a strong and growing economy throughout the United 
     States--
       ``(1) assistance under this Act should be made available to 
     both rural and urban distressed communities;
       ``(2) local communities should work in partnership with 
     neighboring communities, the States, and the Federal 
     Government to increase their capacity to develop and 
     implement comprehensive economic development strategies to 
     address existing, or deter impending, economic distress; and
       ``(3) whether suffering from long-term distress or a sudden 
     dislocation, distressed communities should be encouraged to 
     take advantage of the development opportunities afforded by 
     technological innovation and expanding and newly opened 
     global markets.

     ``SEC. 3. DEFINITIONS.

       ``In this Act:
       ``(1) Comprehensive economic development strategy.--The 
     term `comprehensive economic development strategy' means a 
     comprehensive economic development strategy approved by the 
     Secretary under section 302.
       ``(2) Department.--The term `Department' means the 
     Department of Commerce.
       ``(3) Economic development district.--
       ``(A) In general.--The term `economic development district' 
     means any area in the United States that--
       ``(i) is composed of areas described in section 301(a) and, 
     to the extent appropriate, neighboring counties or 
     communities; and
       ``(ii) has been designated by the Secretary as an economic 
     development district under section 401.
       ``(B) Inclusion.--The term `economic development district' 
     includes any economic development district designated by the 
     Secretary under section 403 (as in effect on the day before 
     the effective date of the Economic Development Administration 
     Reform Act of 1998).
       ``(4) Eligible recipient.--
       ``(A) In general.--The term `eligible recipient' means--
       ``(i) an area described in section 301(a);
       ``(ii) an economic development district;
       ``(iii) an Indian tribe;
       ``(iv) a State;
       ``(v) a city or other political subdivision of a State or a 
     consortium of political subdivisions;
       ``(vi) an institution of higher education or a consortium 
     of institutions of higher education; or
       ``(vii) a public or private nonprofit organization or 
     association acting in cooperation with officials of a 
     political subdivision of a State.
       ``(B) Training, research, and technical assistance 
     grants.--In the case of grants under section 207, the term 
     `eligible recipient' also includes private individuals and 
     for-profit organizations.
       ``(5) Federal agency.--The term `Federal agency' means a 
     department, agency, or instrumentality of the United States.
       ``(6) Grant.--The term `grant' includes a cooperative 
     agreement (within the meaning of chapter 63 of title 31, 
     United States Code).
       ``(7) Indian tribe.--The term `Indian tribe' means any 
     Indian tribe, band, nation, pueblo, or other organized group 
     or community, including any Alaska Native village or Regional 
     Corporation (as defined in or established under the Alaska 
     Native Claims Settlement Act (43 U.S.C. 1601 et seq.)), that 
     is recognized as eligible for the special programs and 
     services provided by the United States to Indians because of 
     their status as Indians.
       ``(8) Secretary.--The term `Secretary' means the Secretary 
     of Commerce.
       ``(9) State.--The term `State' means a State, the District 
     of Columbia, the Commonwealth of Puerto Rico, the Virgin 
     Islands, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, the Republic of the Marshall 
     Islands, the Federated States of Micronesia, and the Republic 
     of Palau.
       ``(10) United states.--The term `United States' means all 
     of the States.

     ``TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND 
                              COORDINATION

     ``SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT 
                   PARTNERSHIPS.

       ``(a) In General.--In providing assistance under this 
     title, the Secretary shall cooperate with States and other 
     entities to ensure that, consistent with national objectives, 
     Federal programs are compatible with and further the 
     objectives of State, regional, and local economic development 
     plans and comprehensive economic development strategies.
       ``(b) Technical Assistance.--The Secretary may provide such 
     technical assistance to States, political subdivisions of 
     States, sub-State regional organizations (including 
     organizations that cross State boundaries), and multi-State 
     regional organizations as the Secretary determines is 
     appropriate to--
       ``(1) alleviate economic distress;
       ``(2) encourage and support public-private partnerships for 
     the formation and improvement of economic development 
     strategies that sustain and promote economic development 
     across the United States; and
       ``(3) promote investment in infrastructure and 
     technological capacity to keep pace with the changing global 
     economy.
       ``(c) Intergovernmental Review.--The Secretary shall 
     promulgate regulations to ensure that appropriate State and 
     local government agencies have been given a reasonable 
     opportunity to review and comment on proposed projects under 
     this title that the Secretary determines may have a 
     significant direct impact on the economy of the area.
       ``(d) Cooperation Agreements.--
       ``(1) In general.--The Secretary may enter into a 
     cooperation agreement with any 2 or more adjoining States, or 
     an organization of any 2 or more adjoining States, in support 
     of effective economic development.
       ``(2) Participation.--Each cooperation agreement shall 
     provide for suitable participation by other governmental and 
     nongovernmental entities that are representative of 
     significant interests in and perspectives on economic 
     development in an area.

     ``SEC. 102. COOPERATION OF FEDERAL AGENCIES.

       ``In accordance with applicable laws and subject to the 
     availability of appropriations, each Federal agency shall 
     exercise its powers, duties and functions, and shall 
     cooperate with the Secretary, in such manner as will assist 
     the Secretary in carrying out this title.

     ``SEC. 103. COORDINATION.

       ``The Secretary shall coordinate activities relating to the 
     preparation and implementation of comprehensive economic 
     development strategies under this Act with Federal agencies 
     carrying out other Federal programs, States, economic 
     development districts, and other appropriate planning and 
     development organizations.

      ``TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

     ``SEC. 201. GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT.

       ``(a) In General.--On the application of an eligible 
     recipient, the Secretary may make grants for--
       ``(1) acquisition or development of land and improvements 
     for use for a public works, public service, or development 
     facility; and
       ``(2) acquisition, design and engineering, construction, 
     rehabilitation, alteration, expansion, or improvement of such 
     a facility, including related machinery and equipment.
       ``(b) Criteria for Grant.--The Secretary may make a grant 
     under this section only if the Secretary determines that--
       ``(1) the project for which the grant is applied for will, 
     directly or indirectly--
       ``(A) improve the opportunities, in the area where the 
     project is or will be located, for the successful 
     establishment or expansion of industrial or commercial plants 
     or facilities;
       ``(B) assist in the creation of additional long-term 
     employment opportunities in the area; or
       ``(C) primarily benefit the long-term unemployed and 
     members of low-income families;
       ``(2) the project for which the grant is applied for will 
     fulfill a pressing need of the area, or a part of the area, 
     in which the project is or will be located; and
       ``(3) the area for which the project is to be carried out 
     has a comprehensive economic development strategy and the 
     project is consistent with the strategy.
       ``(c) Maximum Assistance for Each State.--Not more than 15 
     percent of the amounts made available to carry out this 
     section may be expended in any 1 State.

     ``SEC. 202. BASE CLOSINGS AND REALIGNMENTS.

       ``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 or Department of Energy installation that is closed 
     or scheduled for closure or realignment without requiring 
     that the eligible recipient have title to the property or a 
     leasehold interest in the property for any specified term.

     ``SEC. 203. GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE 
                   EXPENSES.

       ``(a) In General.--On the application of an eligible 
     recipient, the Secretary may make grants to pay the costs of 
     economic development planning and the administrative expenses 
     of organizations that carry out the planning.
       ``(b) Planning Process.--Planning assisted under this title 
     shall be a continuous process involving public officials and 
     private citizens in--
       ``(1) analyzing local economies;
       ``(2) defining economic development goals;
       ``(3) determining project opportunities; and
       ``(4) formulating and implementing an economic development 
     program that includes systematic efforts to reduce 
     unemployment and increase incomes.
       ``(c) Use of Planning Assistance.--Planning assistance 
     under this title shall be used in conjunction with any other 
     available Federal planning assistance to ensure adequate and 
     effective planning and economical use of funds.
       ``(d) State Plans.--
       ``(1) Development.--Any State plan developed with 
     assistance under this section shall be developed 
     cooperatively by the State, political subdivisions of the 
     State, and the economic development districts located wholly 
     or partially in the State.
       ``(2) Comprehensive economic development strategy.--As a 
     condition of receipt of assistance for a State plan under 
     this subsection, the State shall have or develop a

[[Page S12420]]

     comprehensive economic development strategy.
       ``(3) Certification to the secretary.--On completion of a 
     State plan developed with assistance under this section, the 
     State shall--
       ``(A) certify to the Secretary that, in the development of 
     the State plan, local and economic development district plans 
     were considered and, to the maximum extent practicable, the 
     State plan is consistent with the local and economic 
     development district plans; and
       ``(B) identify any inconsistencies between the State plan 
     and the local and economic development district plans and 
     provide a justification for each inconsistency.
       ``(4) Comprehensive planning process.--Any overall State 
     economic development planning assisted under this section 
     shall be a part of a comprehensive planning process that 
     shall consider the provision of public works to--
       ``(A) promote economic development and opportunity;
       ``(B) foster effective transportation access;
       ``(C) enhance and protect the environment; and
       ``(D) balance resources through the sound management of 
     physical development.
       ``(5) Report to secretary.--Each State that receives 
     assistance for the development of a plan under this 
     subsection shall submit to the Secretary an annual report on 
     the planning process assisted under this subsection.

     ``SEC. 204. COST SHARING.

       ``(a) Federal Share.--Subject to section 205, the amount of 
     a grant for a project under this title shall not exceed 50 
     percent of the cost of the project.
       ``(b) Non-Federal Share.--In determining the amount of the 
     non-Federal share of the cost of a project, the Secretary may 
     provide credit toward the non-Federal share for all 
     contributions both in cash and in-kind, fairly evaluated, 
     including contributions of space, equipment, and services.

     ``SEC. 205. SUPPLEMENTARY GRANTS.

       ``(a) Definition of Designated Federal Grant Program.--In 
     this section, the term `designated Federal grant program' 
     means any Federal grant program that--
       ``(1) provides assistance in the construction or equipping 
     of public works, public service, or development facilities;
       ``(2) the Secretary designates as eligible for an 
     allocation of funds under this section; and
       ``(3) assists projects that are--
       ``(A) eligible for assistance under this title; and
       ``(B) consistent with a comprehensive economic development 
     strategy.
       ``(b) Supplementary Grants.--
       ``(1) In general.--On the application of an eligible 
     recipient, the Secretary may make a supplementary grant for a 
     project for which the eligible recipient is eligible but, 
     because of the eligible recipient's economic situation, for 
     which the eligible recipient cannot provide the required non-
     Federal share.
       ``(2) Purposes of grants.--Supplementary grants under 
     paragraph (1) may be made for purposes that shall include 
     enabling eligible recipients to use--
       ``(A) designated Federal grant programs; and
       ``(B) direct grants authorized under this title.
       ``(c) Requirements Applicable to Supplementary Grants.--
       ``(1) Amount of supplementary grants.--Subject to paragraph 
     (4), the amount of a supplementary grant under this title for 
     a project shall not exceed the applicable percentage of the 
     cost of the project established by regulations promulgated by 
     the Secretary, except that the non-Federal share of the cost 
     of a project (including assumptions of debt) shall not be 
     less than 20 percent.
       ``(2) Form of supplementary grants.--In accordance with 
     such regulations as the Secretary may promulgate, the 
     Secretary shall make supplementary grants by increasing the 
     amounts of grants authorized under this title or by the 
     payment of funds made available under this Act to the heads 
     of the Federal agencies responsible for carrying out the 
     applicable Federal programs.
       ``(3) Federal share limitations specified in other laws.--
     Notwithstanding any requirement as to the amount or source of 
     non-Federal funds that may be applicable to a Federal 
     program, funds provided under this section may be used to 
     increase the Federal share for specific projects under the 
     program that are carried out in areas described in section 
     301(a) above the Federal share of the cost of the project 
     authorized by the law governing the program.
       ``(4) Lower non-federal share.--
       ``(A) Indian tribes.--In the case of a grant to an Indian 
     tribe, the Secretary may reduce the non-Federal share below 
     the percentage specified in paragraph (1) or may waive the 
     non-Federal share.
       ``(B) Certain states, political subdivisions, and nonprofit 
     organizations.--In the case of a grant to a State, or a 
     political subdivision of a State, that the Secretary 
     determines has exhausted its effective taxing and borrowing 
     capacity, or in the case of a grant to a nonprofit 
     organization that the Secretary determines has exhausted its 
     effective borrowing capacity, the Secretary may reduce the 
     non-Federal share below the percentage specified in paragraph 
     (1).

     ``SEC. 206. REGULATIONS ON RELATIVE NEEDS AND ALLOCATIONS.

       ``In promulgating rules, regulations, and procedures for 
     assistance under this title, the Secretary shall ensure 
     that--
       ``(1) the relative needs of eligible areas are given 
     adequate consideration by the Secretary, as determined based 
     on, among other relevant factors--
       ``(A) the severity of the rates of unemployment in the 
     eligible areas and the duration of the unemployment;
       ``(B) the income levels and the extent of underemployment 
     in eligible areas; and
       ``(C) the outmigration of population from eligible areas 
     and the extent to which the outmigration is causing economic 
     injury in the eligible areas; and
       ``(2) allocations of assistance under this title are 
     prioritized to ensure that the level of economic distress of 
     an area, rather than a preference for a geographic area or a 
     specific type of economic distress, is the primary factor in 
     allocating the assistance.

     ``SEC. 207. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL 
                   ASSISTANCE.

       ``(a) In General.--
       ``(1) Grants.--On the application of an eligible recipient, 
     the Secretary may make grants for training, research, and 
     technical assistance, including grants for program evaluation 
     and economic impact analyses, that would be useful in 
     alleviating or preventing conditions of excessive 
     unemployment or underemployment.
       ``(2) Types of assistance.--Grants under paragraph (1) may 
     be used for--
       ``(A) project planning and feasibility studies;
       ``(B) demonstrations of innovative activities or strategic 
     economic development investments;
       ``(C) management and operational assistance;
       ``(D) establishment of university centers;
       ``(E) establishment of business outreach centers;
       ``(F) studies evaluating the needs of, and development 
     potential for, economic growth of areas that the Secretary 
     determines have substantial need for the assistance; and
       ``(G) other activities determined by the Secretary to be 
     appropriate.
       ``(3) Reduction or waiver of non-federal share.--In the 
     case of a project assisted under this section, the Secretary 
     may reduce or waive the non-Federal share, without regard to 
     section 204 or 205, if the Secretary finds that the project 
     is not feasible without, and merits, such a reduction or 
     waiver.
       ``(b) Methods of Provision of Assistance.--In providing 
     research and technical assistance under this section, the 
     Secretary, in addition to making grants under subsection (a), 
     may--
       ``(1) provide research and technical assistance through 
     officers or employees of the Department;
       ``(2) pay funds made available to carry out this section to 
     Federal agencies; or
       ``(3) employ private individuals, partnerships, businesses, 
     corporations, or appropriate institutions under contracts 
     entered into for that purpose.

     ``SEC. 208. PREVENTION OF UNFAIR COMPETITION.

       ``No financial assistance under this Act shall be extended 
     to any project when the result would be to increase the 
     production of goods, materials, or commodities, or the 
     availability of services or facilities, when there is not 
     sufficient demand for such goods, materials, commodities, 
     services, or facilities, to employ the efficient capacity of 
     existing competitive commercial or industrial enterprises.

     ``SEC. 209. GRANTS FOR ECONOMIC ADJUSTMENT.

       ``(a) In General.--On the application of an eligible 
     recipient, the Secretary may make grants for development of 
     public facilities, public services, business development 
     (including funding of a revolving loan fund), planning, 
     technical assistance, training, and any other assistance to 
     alleviate long-term economic deterioration and sudden and 
     severe economic dislocation and further the economic 
     adjustment objectives of this title.
       ``(b) Criteria for Assistance.--The Secretary may provide 
     assistance under this section only if the Secretary 
     determines that--
       ``(1) the project will help the area to meet a special need 
     arising from--
       ``(A) actual or threatened severe unemployment; or
       ``(B) economic adjustment problems resulting from severe 
     changes in economic conditions; and
       ``(2) the area for which a project is to be carried out has 
     a comprehensive economic development strategy and the project 
     is consistent with the strategy, except that this paragraph 
     shall not apply to planning projects.
       ``(c) Particular Community Assistance.--Assistance under 
     this section may include assistance provided for activities 
     identified by communities, the economies of which are injured 
     by--
       ``(1) military base closures or realignments, defense 
     contractor reductions in force, or Department of Energy 
     defense-related funding reductions, for help in diversifying 
     their economies through projects to be carried out on Federal 
     Government installations or elsewhere in the communities;
       ``(2) disasters or emergencies, in areas with respect to 
     which a major disaster or emergency has been declared under 
     the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.), for post-disaster 
     economic recovery;
       ``(3) international trade, for help in economic 
     restructuring of the communities; or

[[Page S12421]]

       ``(4) fishery failures, in areas with respect to which a 
     determination that there is a commercial fishery failure has 
     been made under section 312(a) of the Magnuson-Stevens 
     Fishery Conservation and Management Act (16 U.S.C. 1861a(a)).
       ``(d) Direct Expenditure or Redistribution by Recipient.--
       ``(1) In general.--Subject to paragraph (2), an eligible 
     recipient of a grant under this section may directly expend 
     the grant funds or may redistribute the funds to public and 
     private entities in the form of a grant, loan, loan 
     guarantee, payment to reduce interest on a loan guarantee, or 
     other appropriate assistance.
       ``(2) Limitation.--Under paragraph (1), an eligible 
     recipient may not provide any grant to a private for-profit 
     entity.

     ``SEC. 210. CHANGED PROJECT CIRCUMSTANCES.

       ``In any case in which a grant (including a supplementary 
     grant described in section 205) has been made by the 
     Secretary under this title (or made under this Act, as in 
     effect on the day before the effective date of the Economic 
     Development Administration Reform Act of 1998) for a project, 
     and, after the grant has been made but before completion of 
     the project, the purpose or scope of the project that was the 
     basis of the grant is modified, the Secretary may approve, 
     subject (except for a grant for which funds were obligated in 
     fiscal year 1995) to the availability of appropriations, the 
     use of grant funds for the modified project if the Secretary 
     determines that--
       ``(1) the modified project meets the requirements of this 
     title and is consistent with the comprehensive economic 
     development strategy submitted as part of the application for 
     the grant; and
       ``(2) the modifications are necessary to enhance economic 
     development in the area for which the project is being 
     carried out.

     ``SEC. 211. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER 
                   PROJECTED COST.

       ``In any case in which a grant (including a supplementary 
     grant described in section 205) has been made by the 
     Secretary under this title (or made under this Act, as in 
     effect on the day before the effective date of the Economic 
     Development Administration Reform Act of 1998) for a 
     construction project, and, after the grant has been made but 
     before completion of the project, the cost of the project 
     based on the designs and specifications that was the basis of 
     the grant has decreased because of decreases in costs--
       ``(1) the Secretary may approve, subject to the 
     availability of appropriations, the use of the excess funds 
     or a portion of the funds to improve the project; and
       ``(2) any amount of excess funds remaining after 
     application of paragraph (1) shall be deposited in the 
     general fund of the Treasury.

     ``SEC. 212. REPORTS BY RECIPIENTS.

       ``(a) In General.--Each recipient of assistance under this 
     title shall submit reports to the Secretary at such intervals 
     and in such manner as the Secretary shall require by 
     regulation, except that no report shall be required to be 
     submitted more than 10 years after the date of closeout of 
     the assistance award.
       ``(b) Contents.--Each report shall contain an evaluation of 
     the effectiveness of the economic assistance provided under 
     this title in meeting the need that the assistance was 
     designed to address and in meeting the objectives of this 
     Act.

     ``SEC. 213. PROHIBITION ON USE OF FUNDS FOR ATTORNEY'S AND 
                   CONSULTANT'S FEES.

       ``Assistance made available under this title shall not be 
     used directly or indirectly for an attorney's or consultant's 
     fee incurred in connection with obtaining grants and 
     contracts under this title.

``TITLE III--ELIGIBILITY; COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

     ``SEC. 301. ELIGIBILITY OF AREAS.

       ``(a) In General.--For a project to be eligible for 
     assistance under section 201 or 209, the project shall be 
     located in an area that, on the date of submission of the 
     application, meets 1 or more of the following criteria:
       ``(1) Low per capita income.--The area has a per capita 
     income of 80 percent or less of the national average.
       ``(2) Unemployment rate above national average.--The area 
     has an unemployment rate that is, for the most recent 24-
     month period for which data are available, at least 1 percent 
     greater than the national average unemployment rate.
       ``(3) Unemployment or economic adjustment problems.--The 
     area is an area that the Secretary determines has experienced 
     or is about to experience a special need arising from actual 
     or threatened severe unemployment or economic adjustment 
     problems resulting from severe short-term or long-term 
     changes in economic conditions.
       ``(b) Political Boundaries of Areas.--An area that meets 1 
     or more of the criteria of subsection (a), including a small 
     area of poverty or high unemployment within a larger 
     community in less economic distress, shall be eligible for 
     assistance under section 201 or 209 without regard to 
     political or other subdivisions or boundaries.
       ``(c) Documentation.--
       ``(1) In general.--A determination of eligibility under 
     subsection (a) shall be supported by the most recent Federal 
     data available, or, if no recent Federal data is available, 
     by the most recent data available through the government of 
     the State in which the area is located.
       ``(2) Acceptance by secretary.--The documentation shall be 
     accepted by the Secretary unless the Secretary determines 
     that the documentation is inaccurate.
       ``(d) Prior Designations.--Any designation of a 
     redevelopment area made before the effective date of the 
     Economic Development Administration Reform Act of 1998 shall 
     not be effective after that effective date.

     ``SEC. 302. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.

       ``(a) In General.--The Secretary may provide assistance 
     under section 201 or 209 (except for planning assistance 
     under section 209) to an eligible recipient for a project 
     only if the eligible recipient submits to the Secretary, as 
     part of an application for the assistance--
       ``(1) an identification of the economic development 
     problems to be addressed using the assistance;
       ``(2) an identification of the past, present, and projected 
     future economic development investments in the area receiving 
     the assistance and public and private participants and 
     sources of funding for the investments; and
       ``(3)(A) a comprehensive economic development strategy for 
     addressing the economic problems identified under paragraph 
     (1) in a manner that promotes economic development and 
     opportunity, fosters effective transportation access, 
     enhances and protects the environment, and balances resources 
     through sound management of development; and
       ``(B) a description of how the strategy will solve the 
     problems.
       ``(b) Approval of Comprehensive Economic Development 
     Strategy.--The Secretary shall approve a comprehensive 
     economic development strategy that meets the requirements of 
     subsection (a) to the satisfaction of the Secretary.
       ``(c) Approval of Other Plan.--The Secretary may accept as 
     a comprehensive economic development strategy a satisfactory 
     plan developed under another federally supported program.

               ``TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS

     ``SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS.

       ``(a) In General.--In order that economic development 
     projects of broad geographic significance may be planned and 
     carried out, the Secretary may designate appropriate economic 
     development districts in the United States, with the 
     concurrence of the States in which the districts will be 
     wholly or partially located, if--
       ``(1) the proposed district is of sufficient size or 
     population, and contains sufficient resources, to foster 
     economic development on a scale involving more than a single 
     area described in section 301(a);
       ``(2) the proposed district contains at least 1 area 
     described in section 301(a); and
       ``(3) the proposed district has a comprehensive economic 
     development strategy that--
       ``(A) contains a specific program for intra-district 
     cooperation, self-help, and public investment; and
       ``(B) is approved by each affected State and by the 
     Secretary.
       ``(b) Authorities.--The Secretary may, under regulations 
     promulgated by the Secretary--
       ``(1) invite the States to determine boundaries for 
     proposed economic development districts;
       ``(2) cooperate with the States--
       ``(A) in sponsoring and assisting district economic 
     planning and economic development groups; and
       ``(B) in assisting the district groups in formulating 
     comprehensive economic development strategies for districts; 
     and
       ``(3) encourage participation by appropriate local 
     government entities in the economic development districts.

     ``SEC. 402. TERMINATION OR MODIFICATION OF ECONOMIC 
                   DEVELOPMENT DISTRICTS.

       ``The Secretary shall, by regulation, promulgate standards 
     for the termination or modification of the designation of 
     economic development districts.

     ``SEC. 403. INCENTIVES.

       ``(a) In General.--Subject to the non-Federal share 
     requirement under section 205(c)(1), the Secretary may 
     increase the amount of grant assistance for a project in an 
     economic development district by an amount that does not 
     exceed 10 percent of the cost of the project, in accordance 
     with such regulations as the Secretary shall promulgate, if--
       ``(1) the project applicant is actively participating in 
     the economic development activities of the district; and
       ``(2) the project is consistent with the comprehensive 
     economic development strategy of the district.
       ``(b) Review of Incentive System.--In promulgating 
     regulations under subsection (a), the Secretary shall review 
     the current incentive system to ensure that the system is 
     administered in the most direct and effective manner to 
     achieve active participation by project applicants in the 
     economic development activities of economic development 
     districts.

     ``SEC. 404. PROVISION OF COMPREHENSIVE ECONOMIC DEVELOPMENT 
                   STRATEGIES TO APPALACHIAN REGIONAL COMMISSION.

       ``If any part of an economic development district is in the 
     Appalachian region (as defined in section 403 of the 
     Appalachian Regional Development Act of 1965 (40 U.S.C.

[[Page S12422]]

     App.)), the economic development district shall ensure that a 
     copy of the comprehensive economic development strategy of 
     the district is provided to the Appalachian Regional 
     Commission established under that Act.

     ``SEC. 405. ASSISTANCE TO PARTS OF ECONOMIC DEVELOPMENT 
                   DISTRICTS NOT IN ELIGIBLE AREAS.

       ``Notwithstanding section 301, the Secretary may provide 
     such assistance as is available under this Act for a project 
     in a part of an economic development district that is not in 
     an area described in section 301(a), if the project will be 
     of a substantial direct benefit to an area described in 
     section 301(a) that is located in the district.

                       ``TITLE V--ADMINISTRATION

     ``SEC. 501. ASSISTANT SECRETARY FOR ECONOMIC DEVELOPMENT.

       ``(a) In General.--The Secretary shall carry out this Act 
     through an Assistant Secretary of Commerce for Economic 
     Development, to be appointed by the President, by and with 
     the advice and consent of the Senate.
       ``(b) Compensation.--The Assistant Secretary of Commerce 
     for Economic Development shall be compensated at the rate 
     payable for level IV of the Executive Schedule under section 
     5315 of title 5, United States Code.
       ``(c) Duties.--The Assistant Secretary of Commerce for 
     Economic Development shall carry out such duties as the 
     Secretary shall require and shall serve as the administrator 
     of the Economic Development Administration of the Department.

     ``SEC. 502. ECONOMIC DEVELOPMENT INFORMATION CLEARINGHOUSE.

       ``In carrying out this Act, the Secretary shall--
       ``(1) maintain a central information clearinghouse on 
     matters relating to economic development, economic 
     adjustment, disaster recovery, defense conversion, and trade 
     adjustment programs and activities of the Federal and State 
     governments, including political subdivisions of States;
       ``(2) assist potential and actual applicants for economic 
     development, economic adjustment, disaster recovery, defense 
     conversion, and trade adjustment assistance under Federal, 
     State, and local laws in locating and applying for the 
     assistance; and
       ``(3) assist areas described in section 301(a) and other 
     areas by providing to interested persons, communities, 
     industries, and businesses in the areas any technical 
     information, market research, or other forms of assistance, 
     information, or advice that would be useful in alleviating or 
     preventing conditions of excessive unemployment or 
     underemployment in the areas.

     ``SEC. 503. CONSULTATION WITH OTHER PERSONS AND AGENCIES.

       ``(a) Consultation on Problems Relating to Employment.--The 
     Secretary may consult with any persons, including 
     representatives of labor, management, agriculture, and 
     government, who can assist in addressing the problems of area 
     and regional unemployment or underemployment.
       ``(b) Consultation on Administration of Act.--The Secretary 
     may provide for such consultation with interested Federal 
     agencies as the Secretary determines to be appropriate in the 
     performance of the duties of the Secretary under this Act.

     ``SEC. 504. ADMINISTRATION, OPERATION, AND MAINTENANCE.

       ``The Secretary shall approve Federal assistance under this 
     Act only if the Secretary is satisfied that the project for 
     which Federal assistance is granted will be properly and 
     efficiently administered, operated, and maintained.

     ``SEC. 505. BUSINESSES DESIRING FEDERAL CONTRACTS.

       ``The Secretary may provide the procurement divisions of 
     Federal agencies with a list consisting of--
       ``(1) the names and addresses of businesses that are 
     located in areas described in section 301(a) and that wish to 
     obtain Federal Government contracts for the provision of 
     supplies or services; and
       ``(2) the supplies and services that each business 
     provides.

     ``SEC. 506. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

       ``(a) In General.--The Secretary shall conduct an 
     evaluation of each university center and each economic 
     development district that receives grant assistance under 
     this Act (each referred to in this section as a `grantee') to 
     assess the grantee's performance and contribution toward 
     retention and creation of employment.
       ``(b) Purpose of Evaluations of University Centers.--The 
     purpose of the evaluations of university centers under 
     subsection (a) shall be to determine which university centers 
     are performing well and are worthy of continued grant 
     assistance under this Act, and which should not receive 
     continued assistance, so that university centers that have 
     not previously received assistance may receive assistance.
       ``(c) Timing of Evaluations.--Evaluations under subsection 
     (a) shall be conducted on a continuing basis so that each 
     grantee is evaluated within 3 years after the first award of 
     assistance to the grantee after the effective date of the 
     Economic Development Administration Reform Act of 1998, and 
     at least once every 3 years thereafter, so long as the 
     grantee receives the assistance.
       ``(d) Evaluation Criteria.--
       ``(1) Establishment.--The Secretary shall establish 
     criteria for use in conducting evaluations under subsection 
     (a).
       ``(2) Evaluation criteria for university centers.--The 
     criteria for evaluation of a university center shall, at a 
     minimum, provide for an assessment of the center's 
     contribution to providing technical assistance, conducting 
     applied research, and disseminating results of the activities 
     of the center.
       ``(3) Evaluation 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.
       ``(e) Peer Review.--In conducting an evaluation of a 
     university center or economic development district under 
     subsection (a), the Secretary shall provide for the 
     participation of at least 1 other university center or 
     economic development district, as appropriate, on a cost-
     reimbursement basis.

     ``SEC. 507. NOTIFICATION OF REORGANIZATION.

       ``Not later than 30 days before the date of any 
     reorganization of the offices, programs, or activities of the 
     Economic Development Administration, the Secretary shall 
     provide notification of the reorganization to the Committee 
     on Environment and Public Works and the Committee on 
     Appropriations of the Senate, and the Committee on 
     Transportation and Infrastructure and the Committee on 
     Appropriations of the House of Representatives.
                       ``TITLE VI--MISCELLANEOUS

     ``SEC. 601. POWERS OF SECRETARY.

       ``(a) In General.--In carrying out the duties of the 
     Secretary under this Act, the Secretary may--
       ``(1) adopt, alter, and use a seal, which shall be 
     judicially noticed;
       ``(2) subject to the civil service and classification laws, 
     select, employ, appoint, and fix the compensation of such 
     personnel as are necessary to carry out this Act;
       ``(3) hold such hearings, sit and act at such times and 
     places, and take such testimony, as the Secretary determines 
     to be appropriate;
       ``(4) request directly, from any Federal agency, board, 
     commission, office, or independent establishment, such 
     information, suggestions, estimates, and statistics as the 
     Secretary determines to be necessary to carry out this Act 
     (and each Federal agency, board, commission, office, or 
     independent establishment may provide such information, 
     suggestions, estimates, and statistics directly to the 
     Secretary);
       ``(5) under regulations promulgated by the Secretary--
       ``(A) assign or sell at public or private sale, or 
     otherwise dispose of for cash or credit, in the Secretary's 
     discretion and on such terms and conditions and for such 
     consideration as the Secretary determines to be reasonable, 
     any evidence of debt, contract, claim, personal property, or 
     security assigned to or held by the Secretary in connection 
     with assistance provided under this Act; and
       ``(B) collect or compromise all obligations assigned to or 
     held by the Secretary in connection with that assistance 
     until such time as the obligations are referred to the 
     Attorney General for suit or collection;
       ``(6) deal with, complete, renovate, improve, modernize, 
     insure, rent, or sell for cash or credit, on such terms and 
     conditions and for such consideration as the Secretary 
     determines to be reasonable, any real or personal property 
     conveyed to or otherwise acquired by the Secretary in 
     connection with assistance provided under this Act;
       ``(7) pursue to final collection, by means of compromise or 
     other administrative action, before referral to the Attorney 
     General, all claims against third parties assigned to the 
     Secretary in connection with assistance provided under this 
     Act;
       ``(8) acquire, in any lawful manner, any property (real, 
     personal, or mixed, tangible or intangible), to the extent 
     appropriate in connection with assistance provided under this 
     Act;
       ``(9) in addition to any powers, functions, privileges, and 
     immunities otherwise vested in the Secretary, take any 
     action, including the procurement of the services of 
     attorneys by contract, determined by the Secretary to be 
     necessary or desirable in making, purchasing, servicing, 
     compromising, modifying, liquidating, or otherwise 
     administratively dealing with assets held in connection with 
     financial assistance provided under this Act;
       ``(10)(A) employ experts and consultants or organizations 
     as authorized by section 3109 of title 5, United States Code, 
     except that contracts for such employment may be renewed 
     annually;
       ``(B) compensate individuals so employed, including 
     compensation for travel time; and
       ``(C) allow individuals so employed, while away from their 
     homes or regular places of business, travel expenses, 
     including per diem in lieu of subsistence, as authorized by 
     section 5703 of title 5, United States Code, for persons 
     employed intermittently in the Federal Government service;
       ``(11) establish performance measures for grants and other 
     assistance provided under this Act, and use the performance 
     measures to evaluate the economic impact of economic 
     development assistance programs under this Act, which 
     establishment and use of performance measures shall be 
     provided by the Secretary through--
       ``(A) officers or employees of the Department;
       ``(B) the employment of persons under contracts entered 
     into for such purposes; or
       ``(C) grants to persons, using funds made available to 
     carry out this Act;

[[Page S12423]]

       ``(12) conduct environmental reviews and incur necessary 
     expenses to evaluate and monitor the environmental impact of 
     economic development assistance provided and proposed to be 
     provided under this Act, including expenses associated with 
     the representation and defense of the actions of the 
     Secretary relating to the environmental impact of the 
     assistance, using any funds made available to carry out 
     section 207;
       ``(13) sue and be sued in any court of record of a State 
     having general jurisdiction or in any United States district 
     court, except that no attachment, injunction, garnishment, or 
     other similar process, mesne or final, shall be issued 
     against the Secretary or the property of the Secretary; and
       ``(14) establish such rules, regulations, and procedures as 
     the Secretary considers appropriate for carrying out this 
     Act.
       ``(b) Deficiency Judgments.--The authority under subsection 
     (a)(7) to pursue claims shall include the authority to obtain 
     deficiency judgments or otherwise pursue claims relating to 
     mortgages assigned to the Secretary.
       ``(c) Inapplicability of Certain Other Requirements.--
     Section 3709 of the Revised Statutes (41 U.S.C. 5) shall not 
     apply to any contract of hazard insurance or to any purchase 
     or contract for services or supplies on account of property 
     obtained by the Secretary as a result of assistance provided 
     under this Act if the premium for the insurance or the amount 
     of the services or supplies does not exceed $1,000.
       ``(d) Property Interests.--
       ``(1) In general.--The powers of the Secretary under this 
     section, relating to property acquired by the Secretary in 
     connection with assistance provided under this Act, shall 
     extend to property interests of the Secretary relating to 
     projects approved under--
       ``(A) this Act;
       ``(B) title I of the Public Works Employment Act of 1976 
     (42 U.S.C. 6701 et seq.);
       ``(C) title II of the Trade Act of 1974 (19 U.S.C. 2251 et 
     seq.); and
       ``(D) the Community Emergency Drought Relief Act of 1977 
     (42 U.S.C. 5184 note; Public Law 95-31).
       ``(2) Release.--The Secretary may release, in whole or in 
     part, any real property interest, or tangible personal 
     property interest, in connection with a grant after the date 
     that is 20 years after the date on which the grant was 
     awarded.
       ``(e) Powers of Conveyance and Execution.--The power to 
     convey and to execute, in the name of the Secretary, deeds of 
     conveyance, deeds of release, assignments and satisfactions 
     of mortgages, and any other written instrument relating to 
     real or personal property or any interest in such property 
     acquired by the Secretary under this Act may be exercised by 
     the Secretary, or by any officer or agent appointed by the 
     Secretary for that purpose, without the execution of any 
     express delegation of power or power of attorney.

     ``SEC. 603. ANNUAL REPORT TO CONGRESS.

       ``Not later than July 1, 2000, and July 1 of each year 
     thereafter, the Secretary shall submit to Congress a 
     comprehensive and detailed annual report on the activities of 
     the Secretary under this Act during the most recently 
     completed fiscal year.

     ``SEC. 604. DELEGATION OF FUNCTIONS AND TRANSFER OF FUNDS 
                   AMONG FEDERAL AGENCIES.

       ``(a) Delegation of Functions to Other Federal Agencies.--
     The Secretary may--
       ``(1) delegate to the heads of other Federal agencies such 
     functions, powers, and duties of the Secretary under this Act 
     as the Secretary determines to be appropriate; and
       ``(2) authorize the redelegation of the functions, powers, 
     and duties by the heads of the agencies.
       ``(b) Transfer of Funds to Other Federal Agencies.--Funds 
     authorized to be appropriated to carry out this Act may be 
     transferred between Federal agencies, if the funds are used 
     for the purposes for which the funds are specifically 
     authorized and appropriated.
       ``(c) Transfer of Funds From Other Federal Agencies.--
       ``(1) In general.--Subject to paragraph (2), for the 
     purposes of this Act, the Secretary may accept transfers of 
     funds from other Federal agencies if the funds are used for 
     the purposes for which (and in accordance with the terms 
     under which) the funds are specifically authorized and 
     appropriated.
       ``(2) Use of funds.--The transferred funds--
       ``(A) shall remain available until expended; and
       ``(B) may, to the extent necessary to carry out this Act, 
     be transferred to and merged by the Secretary with the 
     appropriations for salaries and expenses.

     ``SEC. 605. PENALTIES.

       ``(a) False Statements; Security Overvaluation.--A person 
     that makes any statement that the person knows to be false, 
     or willfully overvalues any security, for the purpose of--
       ``(1) obtaining for the person or for any applicant any 
     financial assistance under this Act or any extension of the 
     assistance by renewal, deferment, or action, or by any other 
     means, or the acceptance, release, or substitution of 
     security for the assistance;
       ``(2) influencing in any manner the action of the 
     Secretary; or
       ``(3) obtaining money, property, or any thing of value, 
     under this Act;

     shall be fined under title 18, United States Code, imprisoned 
     not more than 5 years, or both.
       ``(b) Embezzlement and Fraud-Related Crimes.--A person that 
     is connected in any capacity with the Secretary in the 
     administration of this Act and that--
       ``(1) embezzles, abstracts, purloins, or willfully 
     misapplies any funds, securities, or other thing of value, 
     that is pledged or otherwise entrusted to the person;
       ``(2) with intent to defraud the Secretary or any other 
     person or entity, or to deceive any officer, auditor, or 
     examiner--
       ``(A) makes any false entry in any book, report, or 
     statement of or to the Secretary; or
       ``(B) without being duly authorized, draws any order or 
     issue, puts forth, or assigns any note, debenture, bond, or 
     other obligation, or draft, bill of exchange, mortgage, 
     judgment, or decree thereof;
       ``(3) with intent to defraud, participates or shares in or 
     receives directly or indirectly any money, profit, property, 
     or benefit through any transaction, loan, grant, commission, 
     contract, or any other act of the Secretary; or
       ``(4) gives any unauthorized information concerning any 
     future action or plan of the Secretary that might affect the 
     value of securities, or having such knowledge invests or 
     speculates, directly or indirectly, in the securities or 
     property of any company or corporation receiving loans, 
     grants, or other assistance from the Secretary;

     shall be fined under title 18, United States Code, imprisoned 
     not more than 5 years, or both.

     ``SEC. 606. EMPLOYMENT OF EXPEDITERS AND ADMINISTRATIVE 
                   EMPLOYEES.

       ``Assistance shall not be provided by the Secretary under 
     this Act to any business unless the owners, partners, or 
     officers of the business--
       ``(1) certify to the Secretary the names of any attorneys, 
     agents, and other persons engaged by or on behalf of the 
     business for the purpose of expediting applications made to 
     the Secretary for assistance of any kind, under this Act, and 
     the fees paid or to be paid to the person for expediting the 
     applications; and
       ``(2) execute an agreement binding the business, for the 2-
     year period beginning on the date on which the assistance is 
     provided by the Secretary to the business, to refrain from 
     employing, offering any office or employment to, or retaining 
     for professional services, any person who, on the date on 
     which the assistance or any part of the assistance was 
     provided, or within the 1-year period ending on that date--
       ``(A) served as an officer, attorney, agent, or employee of 
     the Department; and
       ``(B) occupied a position or engaged in activities that the 
     Secretary determines involved discretion with respect to the 
     granting of assistance under this Act.

     ``SEC. 607. MAINTENANCE AND PUBLIC INSPECTION OF LIST OF 
                   APPROVED APPLICATIONS FOR FINANCIAL ASSISTANCE.

       ``(a) In General.--The Secretary shall--
       ``(1) maintain as a permanent part of the records of the 
     Department a list of applications approved for financial 
     assistance under this Act; and
       ``(2) make the list available for public inspection during 
     the regular business hours of the Department.
       ``(b) Additions to List.--The following information shall 
     be added to the list maintained under subsection (a) as soon 
     as an application described in subsection (a)(1) is approved:
       ``(1) The name of the applicant and, in the case of a 
     corporate application, the name of each officer and director 
     of the corporation.
       ``(2) The amount and duration of the financial assistance 
     for which application is made.
       ``(3) The purposes for which the proceeds of the financial 
     assistance are to be used.

     ``SEC. 608. RECORDS AND AUDITS.

       ``(a) Recordkeeping and Disclosure Requirements.--Each 
     recipient of assistance under this Act shall keep such 
     records as the Secretary shall require, including records 
     that fully disclose--
       ``(1) the amount and the disposition by the recipient of 
     the proceeds of the assistance;
       ``(2) the total cost of the project in connection with 
     which the assistance is given or used;
       ``(3) the amount and nature of the portion of the cost of 
     the project provided by other sources; and
       ``(4) such other records as will facilitate an effective 
     audit.
       ``(b) Access to Books for Examination and Audit.--The 
     Secretary, the Inspector General of the Department, and the 
     Comptroller General of the United States, or any duly 
     authorized representative, shall have access for the purpose 
     of audit and examination to any books, documents, papers, and 
     records of the recipient that relate to assistance received 
     under this Act.

     ``SEC. 609. RELATIONSHIP TO ASSISTANCE UNDER OTHER LAW.

       ``(a) Previously Authorized Assistance.--Except as 
     otherwise provided in this Act, all financial and technical 
     assistance authorized under this Act shall be in addition to 
     any Federal assistance authorized before the effective date 
     of the Economic Development Administration Reform Act of 
     1998.
       ``(b) Assistance Under Other Acts.--Nothing in this Act 
     authorizes or permits any reduction in the amount of Federal 
     assistance that any State or other entity eligible under this 
     Act is entitled to receive under any other Act.

[[Page S12424]]

     ``SEC. 610. ACCEPTANCE OF CERTIFICATIONS BY APPLICANTS.

       ``Under terms and conditions determined by the Secretary, 
     the Secretary may accept the certifications of an applicant 
     for assistance under this Act that the applicant meets the 
     requirements of this Act.''.
       (b) Title VII.--The Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3121 et seq.) is amended--
       (1) by redesignating section 712 as section 602 and moving 
     that section to appear after section 601 (as amended by 
     subsection (a));
       (2) in section 602 (as added by paragraph (1))--
       (A) by striking the section heading and all that follows 
     through ``All'' and inserting the following:

     ``SEC. 602. MAINTENANCE OF STANDARDS.

       ``All''; and
       (B) by striking ``sections 101, 201, 202, 403, 903, and 
     1003'' and inserting ``this Act''; and
       (3) by striking title VII (as amended by paragraph (1)) and 
     inserting the following:
                          ``TITLE VII--FUNDING

     ``SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     Act $397,969,000 for fiscal year 1999, $368,000,000 for 
     fiscal year 2000, $335,000,000 for fiscal year 2001, 
     $335,000,000 for fiscal year 2002, and $335,000,000 for 
     fiscal year 2003, to remain available until expended.

     ``SEC. 702. AUTHORIZATION OF APPROPRIATIONS FOR DEFENSE 
                   CONVERSION ACTIVITIES.

       ``(a) In General.--In addition to amounts made available 
     under section 701, there are authorized to be appropriated 
     such sums as are necessary to carry out section 209(c)(1), to 
     remain available until expended.
       ``(b) Pilot Projects.--Funds made available under 
     subsection (a) may be used for activities including pilot 
     projects for privatization of, and economic development 
     activities for, closed or realigned military or Department of 
     Energy installations.

     ``SEC. 703. AUTHORIZATION OF APPROPRIATIONS FOR DISASTER 
                   ECONOMIC RECOVERY ACTIVITIES.

       ``(a) In General.--In addition to amounts made available 
     under section 701, there are authorized to be appropriated 
     such sums as are necessary to carry out section 209(c)(2), to 
     remain available until expended.
       ``(b) Federal Share.--The Federal share of the cost of 
     activities funded with amounts made available under 
     subsection (a) shall be up to 100 percent.''.
       (c) Titles VIII Through X.--The Public Works and Economic 
     Development Act of 1965 is amended by striking titles VIII 
     through X (42 U.S.C. 3231 et seq.).

     SEC. 103. CONFORMING AMENDMENT.

       Section 5316 of title 5, United States Code, is amended by 
     striking ``Administrator for Economic Development.''.

     SEC. 104. TRANSITION PROVISIONS.

       (a) Existing Rights, Duties, and Obligations.--This title, 
     including the amendments made by this title, does not affect 
     the validity of any right, duty, or obligation of the United 
     States or any other person arising under any contract, loan, 
     or other instrument or agreement that was in effect on the 
     day before the effective date of this title.
       (b) Continuation of Suits.--No action or other proceeding 
     commenced by or against any officer or employee of the 
     Economic Development Administration shall abate by reason of 
     the enactment of this title.
       (c) Liquidating Account.--The Economic Development 
     Revolving Fund established under section 203 of the Public 
     Works and Economic Development Act of 1965 (42 U.S.C. 3143) 
     (as in effect on the day before the effective date of this 
     title) shall continue to be available to the Secretary of 
     Commerce as a liquidating account (as defined in section 502 
     of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) for 
     payment of obligations and expenses in connection with 
     financial assistance provided under--
       (1) the Public Works and Economic Development Act of 1965 
     (42 U.S.C. 3121 et seq.);
       (2) the Area Redevelopment Act (42 U.S.C. 2501 et seq.); 
     and
       (3) the Trade Act of 1974 (19 U.S.C. 2101 et seq.).
       (d) Administration.--The Secretary of Commerce shall take 
     such actions authorized before the effective date of this 
     title as are appropriate to administer and liquidate grants, 
     contracts, agreements, loans, obligations, debentures, or 
     guarantees made by the Secretary under law in effect before 
     the effective date of this title.

     SEC. 105. EFFECTIVE DATE.

       This title and the amendments made by this title shall take 
     effect on a date determined by the Secretary of Commerce, but 
     not later than 90 days after the date of enactment of this 
     Act.
               TITLE II--APPALACHIAN REGIONAL DEVELOPMENT

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Appalachian Regional 
     Development Reform Act of 1998''.

     SEC. 202. FINDINGS AND PURPOSES.

       Section 2 of the Appalachian Regional Development Act of 
     1965 (40 U.S.C. App.) is amended by adding at the end the 
     following:
       ``(c) 1998 Findings and Purposes.--
       ``(1) Findings.--Congress further finds and declares that, 
     while substantial progress has been made in fulfilling many 
     of the objectives of this Act, rapidly changing national and 
     global economies over the past decade have created new 
     problems and challenges for rural areas throughout the United 
     States and especially for the Appalachian region.
       ``(2) Purposes.--In addition to the purposes stated in 
     subsections (a) and (b), it is the purpose of this Act--
       ``(A) to assist the Appalachian region in--
       ``(i) providing the infrastructure necessary for economic 
     and human resource development;
       ``(ii) developing the region's industry;
       ``(iii) building entrepreneurial communities;
       ``(iv) generating a diversified regional economy; and
       ``(v) making the region's industrial and commercial 
     resources more competitive in national and world markets;
       ``(B) to provide a framework for coordinating Federal, 
     State, and local initiatives to respond to the economic 
     competitiveness challenges in the Appalachian region 
     through--
       ``(i) improving the skills of the region's workforce;
       ``(ii) adapting and applying new technologies for the 
     region's businesses; and
       ``(iii) improving the access of the region's businesses to 
     the technical and financial resources necessary to 
     development of the businesses; and
       ``(C) to address the needs of severely and persistently 
     distressed areas of the Appalachian region and focus special 
     attention on the areas of greatest need so as to provide a 
     fairer opportunity for the people of the region to share the 
     quality of life generally enjoyed by citizens across the 
     United States.''.

     SEC. 203. MEETINGS.

       (a) Annual Meeting Requirement.--Section 101 of the 
     Appalachian Regional Development Act of 1965 (40 U.S.C. App.) 
     is amended--
       (1) by striking ``(a) There'' and inserting the following:
       ``(a) In General.--
       ``(1) Establishment.--There''; and
       (2) by adding at the end the following:
       ``(2) Meetings.--
       ``(A) In general.--The Commission shall conduct at least 1 
     meeting each year with the Federal Cochairman and at least a 
     majority of the State members present.''.
       (b) Additional Meetings by Electronic Means.--Section 101 
     of the Appalachian Regional Development Act of 1965 (40 
     U.S.C. App.) is amended--
       (1) in subsection (a)(2) (as added by subsection (a)(2)), 
     by adding at the end the following:
       ``(B) Additional meetings.--The Commission may conduct such 
     additional meetings by electronic means as the Commission 
     considers advisable, including meetings to decide matters 
     requiring an affirmative vote.''; and
       (2) in the fourth sentence of subsection (c), by striking 
     ``to be present''.
       (c) Decisions Requiring a Quorum.--Section 101(b) of the 
     Appalachian Regional Development Act of 1965 (40 U.S.C. App.) 
     is amended by striking the third sentence and inserting the 
     following: ``A decision involving Commission policy, approval 
     of any State, regional, or subregional development plan or 
     implementing investment program, any modification or revision 
     of the Appalachian Regional Commission Code, any allocation 
     of funds among the States, or any designation of a distressed 
     county or an economically strong county shall not be made 
     without a quorum of the State members.''.

     SEC. 204. ADMINISTRATIVE EXPENSES.

       Section 105 of the Appalachian Regional Development Act of 
     1965 (40 U.S.C. App.) is amended--
       (1) by striking ``(a) For the period'' in the first 
     sentence and all that follows through ``such expenses'' in 
     the second sentence and inserting ``Administrative expenses 
     of the Commission''; and
       (2) by striking subsection (b).

     SEC. 205. COMPENSATION OF EMPLOYEES.

       Section 106(2) of the Appalachian Regional Development Act 
     of 1965 (40 U.S.C. App.) is amended by striking ``the salary 
     of the alternate to the Federal Cochairman on the Commission 
     as provided in section 101'' and inserting ``the maximum rate 
     of basic pay for the Senior Executive Service under section 
     5382 of title 5, United States Code, including any applicable 
     locality-based comparability payment that may be authorized 
     under section 5304(h)(2)(C) of that title''.

     SEC. 206. ADMINISTRATIVE POWERS OF COMMISSION.

       Section 106(7) of the Appalachian Regional Development Act 
     of 1965 (40 U.S.C. App.) is amended by striking ``1982'' and 
     inserting ``2001''.

     SEC. 207. COST SHARING OF DEMONSTRATION HEALTH PROJECTS.

       (a) Operation Costs.--Section 202(c) of the Appalachian 
     Regional Development Act of 1965 (40 U.S.C. App.) is amended 
     by striking ``100 per centum of the costs thereof'' in the 
     first sentence and all that follows through the period at the 
     end of the second sentence and inserting ``50 percent of the 
     costs of that operation (or 80 percent of those costs in the 
     case of a project to be carried out in a county for which a 
     distressed county designation is in effect under section 
     226).''.
       (b) Cost Sharing.--Section 202 of the Appalachian Regional 
     Development Act of 1965 (40 U.S.C. App.) is amended by adding 
     at the end the following:
       ``(f) Maximum Commission Contribution After September 30, 
     1998.--
       ``(1) In general.--Subject to paragraph (2), after 
     September 30, 1998, a Commission contribution of not more 
     than 50 percent of any

[[Page S12425]]

     project cost eligible for financial assistance under this 
     section may be provided from funds appropriated to carry out 
     this Act.
       ``(2) Distressed counties.--In the case of a project to be 
     carried out in a county for which a distressed county 
     designation is in effect under section 226, the maximum 
     Commission contribution under paragraph (1) may be increased 
     to the lesser of--
       ``(A) 80 percent; or
       ``(B) the maximum Federal contribution percentage 
     authorized by this section.''.
       (c) Technical Amendments.--Section 202 of the Appalachian 
     Regional Development Act of 1965 (40 U.S.C. App.) is 
     amended--
       (1) by striking ``Secretary of Health, Education, and 
     Welfare'' each place it appears and inserting ``Secretary of 
     Health and Human Services''; and
       (2) in subsection (c), by striking the last sentence.

     SEC. 208. REPEAL OF LAND STABILIZATION, CONSERVATION, AND 
                   EROSION CONTROL PROGRAM.

       Section 203 of the Appalachian Regional Development Act of 
     1965 (40 U.S.C. App.) is repealed.

     SEC. 209. REPEAL OF TIMBER DEVELOPMENT PROGRAM.

       Section 204 of the Appalachian Regional Development Act of 
     1965 (40 U.S.C. App.) is repealed.

     SEC. 210. REPEAL OF MINING AREA RESTORATION PROGRAM.

       Section 205 of the Appalachian Regional Development Act of 
     1965 (40 U.S.C. App.) is repealed.

     SEC. 211. REPEAL OF WATER RESOURCE SURVEY.

       Section 206 of the Appalachian Regional Development Act of 
     1965 (40 U.S.C. App.) is repealed.

     SEC. 212. COST SHARING OF HOUSING PROJECTS.

       (a) Loans.--Section 207(b) of the Appalachian Regional 
     Development Act of 1965 (40 U.S.C. App.) is amended in the 
     first sentence by striking ``80 per centum'' and inserting 
     ``50 percent (or 80 percent in the case of a project to be 
     carried out in a county for which a distressed county 
     designation is in effect under section 226)''.
       (b) Grants.--Section 207(c)(1) of the Appalachian Regional 
     Development Act of 1965 (40 U.S.C. App.) is amended by 
     striking ``80 per centum'' and inserting ``50 percent (or 80 
     percent in the case of a project to be carried out in a 
     county for which a distressed county designation is in effect 
     under section 226)''.

     SEC. 213. REPEAL OF AIRPORT SAFETY IMPROVEMENTS PROGRAM.

       Section 208 of the Appalachian Regional Development Act of 
     1965 (40 U.S.C. App.) is repealed.

     SEC. 214. COST SHARING OF VOCATIONAL EDUCATION AND EDUCATION 
                   DEMONSTRATION PROJECTS.

       (a) Operation Costs.--Section 211(b)(3) of the Appalachian 
     Regional Development Act of 1965 (40 U.S.C. App.) is amended 
     by striking ``100 per centum of the costs thereof'' in the 
     first sentence and all that follows through the period at the 
     end of the second sentence and inserting ``50 percent of the 
     costs of that operation (or 80 percent of those costs in the 
     case of a project to be carried out in a county for which a 
     distressed county designation is in effect under section 
     226).''
       (b) Cost Sharing.--Section 211 of the Appalachian Regional 
     Development Act of 1965 (40 U.S.C. App.) is amended by adding 
     at the end the following:
       ``(c) Maximum Commission Contribution After September 30, 
     1998.--
       ``(1) In general.--Subject to paragraph (2), after 
     September 30, 1998, a Commission contribution of not more 
     than 50 percent of any project cost eligible for financial 
     assistance under this section may be provided from funds 
     appropriated to carry out this Act.
       ``(2) Distressed counties.--In the case of a project to be 
     carried out in a county for which a distressed county 
     designation is in effect under section 226, the maximum 
     Commission contribution under paragraph (1) may be increased 
     to the lesser of--
       ``(A) 80 percent; or
       ``(B) the maximum Federal contribution percentage 
     authorized by this section.''.
       (c) Technical Amendments.--Section 211 of the Appalachian 
     Regional Development Act of 1965 (40 U.S.C. App.) is 
     amended--
       (1) in subsection (a), by striking ``Secretary of Health, 
     Education, and Welfare'' and inserting ``Secretary of 
     Education''; and
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``Secretary of the 
     Department of Health, Education, and Welfare'' and inserting 
     ``Secretary of Education''; and
       (B) in paragraph (3), by striking the last sentence.

     SEC. 215. REPEAL OF SEWAGE TREATMENT WORKS PROGRAM.

       Section 212 of the Appalachian Regional Development Act of 
     1965 (40 U.S.C. App.) is repealed.

     SEC. 216. REPEAL OF AMENDMENTS TO HOUSING ACT OF 1954.

       Section 213 of the Appalachian Regional Development Act of 
     1965 (40 U.S.C. App.) is repealed.

     SEC. 217. SUPPLEMENTS TO FEDERAL GRANT-IN-AID PROGRAMS.

       (a) Availability of Amounts.--Section 214(a) of the 
     Appalachian Regional Development Act of 1965 (40 U.S.C. App.) 
     is amended in the first sentence by striking ``the President 
     is authorized to provide funds to the Federal Cochairman to 
     be used'' and inserting ``the Federal Cochairman may use 
     amounts made available to carry out this section''.
       (b) Cost Sharing.--Section 214(b) of the Appalachian 
     Regional Development Act of 1965 (40 U.S.C. App.) is 
     amended--
       (1) by striking ``(b) The Federal'' and inserting the 
     following:
       ``(b) Cost Sharing.--
       ``(1) In general.--The Federal''; and
       (2) by adding at the end the following:
       ``(2) Maximum commission contribution after september 30, 
     1998.--
       ``(A) In general.--Subject to subparagraph (B), after 
     September 30, 1998, a Commission contribution of not more 
     than 50 percent of any project cost eligible for financial 
     assistance under this section may be provided from funds 
     appropriated to carry out this Act.
       ``(B) Distressed counties.--In the case of a project to be 
     carried out in a county for which a distressed county 
     designation is in effect under section 226, the maximum 
     Commission contribution under subparagraph (A) may be 
     increased to 80 percent.''.
       (c) Definition of Federal Grant-in-Aid Programs.-- Section 
     214(c) of the Appalachian Regional Development Act of 1965 
     (40 U.S.C. App.) is amended in the first sentence--
       (1) by striking ``on or before December 31, 1980,''; and
       (2) by striking ``Titles I and IX of the Public Works and 
     Economic Development Act of 1965'' and inserting ``sections 
     201 and 209 of the Public Works and Economic Development Act 
     of 1965''.
       (d) Limitation on Covered Road Projects.--Section 214(c) of 
     the Appalachian Regional Development Act of 1965 (40 U.S.C. 
     App.) is amended in the second sentence by inserting 
     ``authorized by title 23, United States Code'' after ``road 
     construction''.

     SEC. 218. PROGRAM DEVELOPMENT CRITERIA.

       (a) Considerations.--Section 224(a)(1) of the Appalachian 
     Regional Development Act of 1965 (40 U.S.C. App.) is amended 
     by inserting before the semicolon at the end the following: 
     ``or in a severely and persistently distressed county or 
     area''.
       (b) Outcome Measurements.--Section 224(a) of the 
     Appalachian Regional Development Act of 1965 (40 U.S.C. App.) 
     is amended--
       (1) in paragraph (5), by striking the period at the end and 
     inserting ``; and''; and
       (2) by adding at the end the following:
       ``(6) the extent to which the project design provides for 
     detailed outcome measurements by which grant expenditures may 
     be evaluated.''.
       (c) Removal of Limitations.--Section 224 of the Appalachian 
     Regional Development Act of 1965 (40 U.S.C. App.) is amended 
     by striking subsection (b) and inserting the following:
       ``(b) Limitation.--Financial assistance made available 
     under this Act shall not be used to assist establishments 
     relocating from 1 area to another.''.
       (d) Conforming Amendment.--Section 302(b)(1) of the 
     Appalachian Regional Development Act of 1965 (40 U.S.C. App.) 
     is amended in the first sentence by striking 
     ``Notwithstanding'' and all that follows through ``the 
     Commission'' and inserting ``The Commission''.

     SEC. 219. DISTRESSED AND ECONOMICALLY STRONG COUNTIES.

       Part C of title II of the Appalachian Regional Development 
     Act of 1965 (40 U.S.C. App.) is amended by adding at the end 
     the following:

     ``SEC. 226. DISTRESSED AND ECONOMICALLY STRONG COUNTIES.

       ``(a) Designations.--
       ``(1) In general.--Not later than 90 days after the date of 
     enactment of this section, and annually thereafter, the 
     Commission, in accordance with such criteria as the 
     Commission may establish, shall--
       ``(A) designate as `distressed counties' those counties in 
     the region that are the most severely and persistently 
     distressed; and
       ``(B) designate 2 categories of economically strong 
     counties, consisting of--
       ``(i) `competitive counties', which shall be those counties 
     in the region that are approaching economic parity with the 
     rest of the United States; and
       ``(ii) `attainment counties', which shall be those counties 
     in the region that have attained or exceeded economic parity 
     with the rest of the United States.
       ``(2) Annual review of designations.--The Commission 
     shall--
       ``(A) conduct an annual review of each designation of a 
     county under paragraph (1) to determine if the county still 
     meets the criteria for the designation; and
       ``(B) renew the designation for another 1-year period only 
     if the county still meets the criteria.
       ``(b) Distressed Counties.--In program and project 
     development and implementation and in the allocation of 
     appropriations made available to carry out this Act, the 
     Commission shall give special consideration to the needs of 
     those counties for which a distressed county designation is 
     in effect under this section.
       ``(c) Economically Strong Counties.--
       ``(1) Competitive counties.--Except as provided in 
     paragraphs (3) and (4), in the case of a project that is 
     carried out in a county for which a competitive county 
     designation is in effect under this section, assistance under 
     this Act shall be limited to not more than 30 percent of the 
     project cost.
       ``(2) Attainment counties.--Except as provided in 
     paragraphs (3) and (4), no funds may be provided under this 
     Act for a project that

[[Page S12426]]

     is carried out in a county for which an attainment county 
     designation is in effect under this section.
       ``(3) Exceptions.--The requirements of paragraphs (1) and 
     (2) shall not apply to--
       ``(A) any project on the Appalachian development highway 
     system authorized by section 201;
       ``(B) any local development district administrative project 
     assisted under section 302(a)(1); or
       ``(C) any multicounty project that is carried out in 2 or 
     more counties designated under this section if--
       ``(i) at least 1 of the participating counties is 
     designated as a distressed county under this section; and
       ``(ii) the project will be of substantial direct benefit to 
     1 or more distressed counties.
       ``(4) Waiver.--
       ``(A) In general.--The Commission may waive the 
     requirements of paragraphs (1) and (2) for a project upon a 
     showing by the recipient of assistance for the project of 1 
     or more of the following:
       ``(i) The existence of a significant pocket of distress in 
     the part of the county in which the project is carried out.
       ``(ii) The existence of a significant potential benefit 
     from the project in 1 or more areas of the region outside the 
     designated county.
       ``(B) Reports to congress.--The Commission shall submit to 
     the Committee on Environment and Public Works of the Senate 
     and the Committee on Transportation and Infrastructure of the 
     House of Representatives an annual report describing each 
     waiver granted under subparagraph (A) during the period 
     covered by the report.''.

     SEC. 220. GRANTS FOR ADMINISTRATIVE EXPENSES AND COMMISSION 
                   PROJECTS.

       (a) Availability of Amounts.--Section 302(a) of the 
     Appalachian Regional Development Act of 1965 (40 U.S.C. App.) 
     is amended--
       (1) by striking ``The President'' and inserting ``The 
     Commission''; and
       (2) in paragraphs (1), (2), and (3), by striking ``to the 
     Commission'' each place it appears.
       (b) Cost Sharing.--Section 302(a) of the Appalachian 
     Regional Development Act of 1965 (40 U.S.C. App.) is 
     amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by striking ``75 per centum'' and 
     inserting ``50 percent''; and
       (B) by redesignating subparagraphs (A), (B), and (C) as 
     clauses (i), (ii), and (iii), respectively;
       (2) by redesignating paragraphs (1), (2), and (3) as 
     subparagraphs (A), (B), and (C), respectively;
       (3) by striking ``(a) The'' and inserting the following:
       ``(a) Authorization To Make Grants.--
       ``(1) In general.--The'';
       (4) by adjusting the margins of subparagraphs (A), (B), and 
     (C) (as redesignated by paragraph (2)) to reflect the 
     amendment made by paragraph (3); and
       (5) by adding at the end the following:
       ``(2) Cost sharing after september 30, 1998.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     after September 30, 1998, not more than 50 percent (or 80 
     percent in the case of a project to be carried out in a 
     county for which a distressed county designation is in effect 
     under section 226) of the costs of any activity eligible for 
     financial assistance under this section may be provided from 
     funds appropriated to carry out this Act.
       ``(B) Discretionary grants.--
       ``(i) In general.--Discretionary grants made by the 
     Commission to implement significant regional initiatives, to 
     take advantage of special development opportunities, or to 
     respond to emergency economic distress in the region may be 
     made without regard to the percentage limitations specified 
     in subparagraph (A).
       ``(ii) Limitation on aggregate amount.--For each fiscal 
     year, the aggregate amount of discretionary grants referred 
     to in clause (i) shall not exceed 10 percent of the amounts 
     appropriated under section 401 for the fiscal year.''.
       (c) Conforming and Technical Amendments.--
       (1) Section 302 of the Appalachian Regional Development Act 
     of 1965 (40 U.S.C. App.) is amended--
       (A) in subsection (b)--
       (i) in paragraph (2), by striking ``Federal Energy 
     Administration, the Energy Research and Development 
     Administration'' and inserting ``Secretary of Energy''; and
       (ii) by striking paragraphs (3) and (4); and
       (B) by striking subsections (d) and (e).
       (2) Section 210(a) of title 35, United States Code, is 
     amended--
       (A) by striking paragraph (11); and
       (B) by redesignating paragraphs (12) through (22) as 
     paragraphs (11) through (21), respectively.

     SEC. 221. AUTHORIZATION OF APPROPRIATIONS FOR GENERAL 
                   PROGRAM.

       Section 401 of the Appalachian Regional Development Act of 
     1965 (40 U.S.C. App.) is amended to read as follows:

     ``SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--In addition to amounts authorized by 
     section 201 and other amounts made available for the 
     Appalachian development highway system program, there are 
     authorized to be appropriated to the Commission to carry out 
     this Act--
       ``(1) $68,000,000 for fiscal year 1999;
       ``(2) $69,000,000 for fiscal year 2000; and
       ``(3) $70,000,000 for fiscal year 2001.
       ``(b) Availability.--Sums made available under subsection 
     (a) shall remain available until expended.''.

     SEC. 222. EXTENSION OF TERMINATION DATE.

       Section 405 of the Appalachian Regional Development Act of 
     1965 (40 U.S.C. App.) is amended by striking ``1982'' and 
     inserting ``2001''.

     SEC. 223. TECHNICAL AMENDMENT.

       Section 5334(a) of title 5, United States Code, is amended 
     in the second sentence by striking ``title 40, appendix, or 
     by a regional commission established pursuant to section 3182 
     of title 42, under section 3186(a)(2) of that title'' and 
     inserting ``the Appalachian Regional Development Act of 1965 
     (40 U.S.C. App.)''.
       Amend the title so as to read: ``A bill to reauthorize and 
     make reforms to programs authorized by the Public Works and 
     Economic Development Act of 1965 and the Appalachian Regional 
     Development Act of 1965.''.

                          ____________________