[Congressional Record Volume 145, Number 124 (Wednesday, September 22, 1999)]
[Senate]
[Pages S11263-S11267]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. LINCOLN (for herself, Mr. Frist, Ms. Landrieu, Mr. 
        Hutchinson, Mr. Breaux, and Mr. Durbin):
  S. 1622. A bill to provide economic, planning, and coordination 
assistance needed for the development of the lower Mississippi River 
region; to the Committee on Environment and Public Works.


                the delta regional authority act of 1999

  Mrs. LINCOLN. Mr. President, today I am introducing the Delta 
Regional Authority Act of 1999, which is aimed at improving the economy 
of the Mississippi Delta region, the poorest region in the country.
  The lower Mississippi Delta region, following the course of the 
Mississippi River, stretches from southern Illinois to the Delta of the 
Mississippi and the Gulf of Mexico. According to the latest Census 
figures, communities in the Delta region of seven States--Illinois, 
Missouri, Kentucky, Tennessee, Arkansas, Mississippi, and Louisiana--
face a poverty rate of 22 percent while the national average is 12 
percent.
  This legislation seeks to build on efforts begun more than a decade 
ago, when Congress created the Lower Mississippi Delta Development 
Commission. Under the leadership of former Arkansas Senator Dale 
Bumpers, the Commission was charged with studying the unique problems 
of the Delta region and recommending a course of action. I refer my 
colleagues to Senator Bumpers' statement, which appears on page S25689 
of the September 27, 1988 Congressional Record, in which he introduced 
legislation authorizing the Commission. The Commission submitted its 
report, ``Realizing the Dream . . . Fulfilling the Potential,'' in 
1990. The Chairman of the Commission, former Arkansas Governor Bill 
Clinton, called the report a ``handbook for action.''
  The report highlighted problems facing the Delta, whose economy has 
traditionally been based on agriculture. The report noted the Delta 
faced high unemployment, low levels of income and education, welfare 
dependency, poor health care and housing, along with serious 
shortcomings in transportation infrastructure. Unfortunately, a decade 
after the report was issued, these problems still exist. While Congress 
took one bold step toward solving these problems when we passed welfare 
reform, there is still much to be done.
  In particular, this bill seeks to improve the infrastructure of the 
Delta region. It is common knowledge that when industries seek to 
expand and build new facilities, they look at the availability of 
roads, water systems

[[Page S11264]]

and other infrastructure. The Federal Government has tried to foster 
development in these areas by providing Federal grant monies, but we 
haven't approached the economic problems in the region with an 
appropriate understanding of the unique demographic and geographic 
challenges that face the Delta.
  Education programs are available, but if there's no technical 
assistance to help people actually access the grant resources, then the 
programs are essentially wasted. We can encourage young folks to pursue 
higher education and start their own businesses, but if there is no 
basic infrastructure, if transportation and other resources are 
inadequate, how can they succeed? For instance, in many areas of the 
Arkansas Delta there are no copy shops, computer repair stores, or 
office supply stores. These basic offerings that we take for granted in 
larger cities simply are not available and that is why creating a 
central location for technical assistance is so vital. We may not be 
able to put copy shops in place, but we can provide help that will be 
only a phone call or an e-mail away.
  Currently, many communities in the Delta have problems gaining 
federal grants for two reasons. First, they often don't have the 
technical expertise to complete the grant applications. Second, they 
often don't have enough money to meet the local matching requirement. 
The Delta Regional Authority created by this legislation will be 
authorized $30 million annually to provide technical assistance in the 
grant application process. In effect, local communities across the 
seven state region will have one-stop shopping when they need 
assistance completing grant applications and accessing resources for 
economic development. Second, the Delta Regional Authority will be 
authorized to provide money to help grant applicants meet the federal 
match. Certainly the matching dollar requirement in the grant 
application process is important to demonstrate the community's 
commitment to the project, but we shouldn't exclude the very 
communities who need grant assistance the most.
  The Delta Regional Authority will function along the same lines as 
the Appalachian Regional Commission. But it will operate entirely 
independently of the ARC. The Delta Regional Authority's mission will 
be to help create jobs, attract industrial development and grow the 
local economies by improving infrastructure, training the workforce and 
building local leadership.
  I would like to thank staff of the Appalachian Regional Commission, 
who worked very closely with us in drafting this legislation. Special 
thanks also is due to the National Association of Development 
Organizations, the Lower Mississippi Delta Development Center and many 
local economic development groups who provided suggestions and input. 
Last, but certainly not least, I would like to commend Representative 
Marion Berry, who represents my home in the First Congressional 
District of Arkansas, who has introduced companion legislation in the 
House of Representatives. I certainly hope that today's introduction of 
legislation is the first step toward making the Delta Regional 
Authority a reality.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1622

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Delta Regional Authority Act 
     of 1999''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) the lower Mississippi River region (referred to in this 
     Act as the ``region''), though rich in natural and human 
     resources, lags behind the rest of the United States in 
     economic growth and prosperity;
       (2) the region suffers from a greater proportion of 
     measurable poverty and unemployment than any other region of 
     the United States, resulting in a drain on the national 
     economy and diminishing national wealth;
       (3) the greatest hope for economic growth and 
     revitalization in the region lies in the creation of jobs, 
     the expansion of businesses, and the development of 
     entrepreneurial local economies;
       (4) the economic progress of the region requires an 
     adequate physical infrastructure, a skilled and trained 
     workforce, enhanced local leadership and civic capacity, and 
     greater opportunities for enterprise development and 
     entrepreneurship;
       (5) a concerted and coordinated effort among Federal, 
     State, and local agencies, the private sector, nonprofit 
     groups, and community-based organizations is needed if the 
     region is to share in the prosperity of the United States;
       (6) economic development planning on a regional or 
     multicounty basis offers the best prospect for achieving the 
     maximum benefit from public and private investments; and
       (7) improving the economy of the region requires a special 
     emphasis on those of the region that are most economically 
     distressed.
       (b) Purposes.--The purposes of this Act are--
       (1) to promote and encourage the economic development of 
     the region--
       (A) to ensure that the communities and people in the region 
     have the opportunity to participate more fully in the 
     prosperity of the United States; and
       (B) to ensure that the economy of the region reaches 
     economic parity with that of the rest of the United States;
       (2) to establish a formal framework for joint Federal-State 
     collaboration in meeting and focusing national attention on 
     the economic development needs of the region;
       (3) to assist the region in obtaining the basic 
     infrastructure, skills training, local leadership capacity, 
     and opportunities for enterprise development that are 
     essential for strong local economies;
       (4) to foster coordination among all levels of government, 
     the private sector, community organizations, and nonprofit 
     groups in crafting common regional strategies that will lead 
     to broader economic growth;
       (5) to strengthen efforts that emphasize regional 
     approaches to economic development and planning;
       (6) to encourage the participation of interested citizens, 
     public officials, groups, agencies, and others in developing 
     and implementing local and regional plans for broad-based 
     economic and community development; and
       (7) to focus special attention on areas of the region that 
     suffer from the greatest economic distress.

     SEC. 3. DELTA REGIONAL AUTHORITY.

       The Consolidated Farm and Rural Development Act (7 U.S.C. 
     1921 et seq.) is amended by adding at the end the following:
                 ``Subtitle F--Delta Regional Authority

     ``SEC. 382A. DEFINITIONS.

       ``In this subtitle:
       ``(1) Authority.--The term `Authority' means the Delta 
     Regional Authority established by section 382B.
       ``(2) Region.--The term `region' means areas in the States 
     of Arkansas, Illinois, Kentucky, Louisiana, Mississippi, 
     Missouri, and Tennessee, as defined under section 4 of the 
     Lower Mississippi Delta Development Act (Public Law 100-460; 
     42 U.S.C. 3121 note).
       ``(3) Federal grant program.--The term `Federal grant 
     program' means a Federal grant program to provide assistance 
     in--
       ``(A) acquiring or developing land;
       ``(B) constructing or equipping a facility; or
       ``(C) carrying out other community or economic development 
     or economic adjustment activities.

     ``SEC. 382B. DELTA REGIONAL AUTHORITY.

       ``(a) Establishment.--
       ``(1) In general.--There is established the Delta Regional 
     Authority.
       ``(2) Composition.--The Authority shall be composed of--
       ``(A) a Federal member, to be appointed by the President, 
     with the advice and consent of the Senate; and
       ``(B) the Governor (or a designee of the Governor) of each 
     State in the region that elects to participate in the 
     Authority.
       ``(3) Cochairpersons.--The Authority shall be headed by 2 
     cochairpersons, which shall be--
       ``(A) the Federal member, who shall serve--
       ``(i) as the Federal cochairperson; and
       ``(ii) as a liaison between the Federal Government and the 
     Authority; and
       ``(B) a State cochairperson, who--
       ``(i) shall be a Governor of a participating State in the 
     region; and
       ``(ii) shall be elected by the State members for a term of 
     not less than 1 year.
       ``(b) Alternate Members.--
       ``(1) State alternates.--Each State member may have a 
     single alternate, appointed by the Governor from among the 
     members of the cabinet or the personal staff of the Governor.
       ``(2) Alternate federal cochairperson.--The President shall 
     appoint an alternate Federal cochairperson.
       ``(3) Quorum.--A State alternate shall not be counted 
     toward the establishment of a quorum of the Authority in any 
     instance in which a quorum of the State members is required 
     to be present.
       ``(4) Delegation of power.--No power or responsibility of 
     the Authority specified in paragraphs (2) and (3) of 
     subsection (b), and no voting right of any Authority member, 
     shall be delegated to any person--
       ``(A) who is not a Authority member; or
       ``(B) who is not entitled to vote in Authority meetings.
       ``(c) Voting.--
       ``(1) In general.--Except as provided in section 382I(d), 
     decisions by the Authority

[[Page S11265]]

     shall require the affirmative vote of the Federal 
     cochairperson and of a majority of the State members (not 
     including a member representing a State that is delinquent 
     under subsection (g)(2)(C).
       ``(2) Quorum.--A quorum of State members shall be required 
     to be present for the Authority to make any policy decision, 
     including--
       ``(A) a modification or revision of a Authority policy 
     decision;
       ``(B) approval of a State or regional development plan; and
       ``(C) any allocation of funds among the States.
       ``(3) Project and grant proposals.--The approval of project 
     and grant proposals shall be--
       ``(A) a responsibility of the Authority; and
       ``(B) conducted in accordance with section 382I.
       ``(4) Voting by alternate members.--An alternate member 
     shall vote in the case of the absence, death, disability, 
     removal, or resignation of the State or Federal 
     representative for which the alternate member is an 
     alternate.
       ``(d) Duties.--The Authority shall--
       ``(1) develop, on a continuing basis, comprehensive and 
     coordinated plans and programs to establish priorities and 
     approve grants for the economic development of the region, 
     giving due consideration to other Federal, State, and local 
     planning and development activities in the region;
       ``(2) not later than 220 days after the date of enactment 
     of this subtitle, establish priorities in a development plan 
     for the region (including 5-year regional outcome targets);
       ``(3) provide for an understanding of the needs and assets 
     of the region through research, demonstration, investigation, 
     assessment, and evaluation of the region, in cooperation with 
     Federal, State, and local agencies, universities, local 
     development districts, and other nonprofit groups, as 
     appropriate;
       ``(4) review and study, in cooperation with the appropriate 
     agencies, Federal, State, and local public and private 
     programs in the region;
       ``(5) recommend any modification or addition to a program 
     described in paragraph (4) that could increase the 
     effectiveness of the program;
       ``(6) formulate and recommend interstate compacts and other 
     forms of interstate cooperation;
       ``(7) work with State and local agencies in developing 
     appropriate model legislation;
       ``(8) encourage the formation of, build the capacity of, 
     and provide support for, local development districts in the 
     region;
       ``(9) encourage private investment in industrial, 
     commercial, and other economic development projects in the 
     region;
       ``(10) serve as a focal point and coordinating unit for 
     region programs;
       ``(11) provide a forum for consideration of problems of the 
     region and proposed solutions for those problems; and
       ``(12) establish and involve citizens, special advisory 
     councils, and public conferences to consider and resolve 
     issues concerning the region.
       ``(e) Information.--In carrying out the duties of the 
     Authority under subsection (d), the Authority may--
       ``(1) hold such hearings, sit and act at such times and 
     places, take such testimony, receive such evidence, and print 
     or otherwise reproduce and distribute the proceedings and 
     reports on actions by the Authority as the Authority 
     considers appropriate;
       ``(2) authorize, through the Federal or State 
     cochairperson, or any other member of the Authority 
     designated by the Authority, the administration of oaths if 
     the Authority determines that testimony shall be taken or 
     evidence shall be received under oath; and
       ``(3) arrange for the head of any Federal, State, or local 
     department or agency to furnish to the Authority such 
     information as may be available to or procurable by the 
     department or agency;
       ``(4) adopt, amend, and repeal bylaws and rules governing 
     the conduct of Authority business and the performance of 
     Authority functions;
       ``(5) request the head of any Federal department or agency 
     to detail to the Authority such personnel as the Authority 
     requires to carry out functions of the Authority, each such 
     detail to be without loss of seniority, pay, or other 
     employee status;
       ``(6) request the head of any State department or agency or 
     local government to detail to the Authority such personnel as 
     the Authority requires to carry out functions of the 
     Authority, each such detail to be without loss of seniority, 
     pay, or other employee status;
       ``(7) provide for coverage of Authority employees in a 
     suitable retirement and employee benefit system by--
       ``(A) making arrangements or entering into contracts with 
     any participating State government; or
       ``(B) otherwise providing retirement and other employee 
     benefit coverage;
       ``(8) accept, use, and dispose of gifts or donations of 
     services or real, personal, tangible, or intangible property;
       ``(9) enter into and perform such contracts, leases, 
     cooperative agreements, or other transactions as are 
     necessary to carry out Authority duties, including any 
     contracts, leases, cooperative agreements, or any other 
     arrangement with--
       ``(A) any department, agency, or instrumentality of the 
     United States;
       ``(B) any State (including a political subdivision, agency, 
     or instrumentality of the State); or
       ``(C) any person, firm, association, or corporation;
       ``(10) establish and maintain a central office and field 
     offices at such locations as the Authority may select; and
       ``(11) take such other actions and incur such other 
     expenses as are necessary or appropriate.
       ``(f) Federal Agency Cooperation.--Federal agencies shall--
       ``(1) cooperate with the Authority; and
       ``(2) provide such assistance in carrying out this subtitle 
     as the Federal cochairperson may request.
       ``(g) Administrative Expenses.--
       ``(1) In general.--Administrative expenses of the Authority 
     shall be paid--
       ``(A) by the Federal Government, during the period 
     beginning on the date of enactment of this subtitle and 
     ending on September 30, 2000; and
       ``(B) after September 30, 2000 (except for the expenses of 
     the Federal cochairperson, including expenses of the 
     alternate and staff of the Federal cochairperson, which shall 
     be paid solely by the Federal Government)--
       ``(i) by the Federal Government, in an amount equal to 50 
     percent of the administrative expenses; and
       ``(ii) by the States in the region represented on the 
     Authority, in an amount equal to 50 percent of the 
     administrative expenses.
       ``(2) State share.--
       ``(A) In general.--The share of administrative expenses of 
     the Authority to be paid by each State shall be determined by 
     the Authority.
       ``(B) No federal participation.--The Federal cochairperson 
     shall not participate or vote in any decision under 
     subparagraph (A) to determine the share of administrative 
     expenses of the Authority to be paid by a State.
       ``(C) Delinquent states.--If a State is delinquent in 
     payment of the State's share of administrative expenses of 
     the Authority under this subsection--
       ``(i) no assistance under this subtitle shall be furnished 
     to the State (including assistance to a political subdivision 
     or a resident of the State); and
       ``(ii) no member of the Authority from the State shall 
     participate or vote in any action by the Authority.
       ``(h) Compensation.--
       ``(1) Federal cochairperson.--The Federal cochairperson 
     shall be compensated by the Federal Government at level III 
     of the Executive Schedule in subchapter II of chapter 53 of 
     title V, United States Code.
       ``(2) Alternate federal cochairperson.--The alternate 
     Federal cochairperson--
       ``(A) shall be compensated by the Federal Government at 
     level V of the Executive Schedule described in paragraph (1); 
     and
       ``(B) when not actively serving as an alternate for the 
     Federal cochairperson, shall perform such functions and 
     duties as are delegated by the Federal cochairperson.
       ``(3) State members and alternates.--
       ``(A) In general.--A State shall compensate each member and 
     alternate representing the State on the Authority at the rate 
     established by law of the State.
       ``(B) No additional compensation.--No State member or 
     alternate member shall receive any salary, or any 
     contribution to or supplementation of salary from any source 
     other than the State for services provided by the member or 
     alternate to the Authority.
       ``(4) Detailed employees.--
       ``(A) In general.--No person detailed to serve the 
     Authority under subsection (e)(6) shall receive any salary or 
     any contribution to or supplementation of salary for services 
     provided to the Authority from--
       ``(i) any source other than the State, local, or 
     intergovernmental department or agency from which the person 
     was detailed; or
       ``(ii) the Authority.
       ``(B) Violation.--Any person that violates this paragraph 
     shall be fined not more than $5,000, imprisoned not more than 
     1 year, or both.
       ``(C) Applicable law.--The Federal cochairperson, the 
     alternate Federal cochairperson, and any Federal officer or 
     employee detailed to duty on the Authority under subsection 
     (e)(5) shall not be subject to subparagraph (A), but shall 
     remain subject to sections 202 through 209 of title 18, 
     United States Code.
       ``(5) Additional personnel.--
       ``(A) Compensation.--
       ``(i) In general.--The Authority may appoint and fix the 
     compensation of an executive director and such other 
     personnel as are necessary to enable the Authority to carry 
     out the duties of the Authority.
       ``(ii) Exception.--Compensation described under clause (i) 
     shall not exceed the maximum rate for the Senior Executive 
     Service under section 5382 of title 5, United States Code, 
     including any applicable locality-based comparability payment 
     that may be authorized under section 5304(h)(2)(C) of that 
     title.
       ``(B) Executive director.--The executive director shall be 
     responsible for--
       ``(i) the carrying out of the administrative functions of 
     the Authority;
       ``(ii) direction of the Authority staff; and
       ``(iii) such other duties as the Authority may assign.
       ``(C) No federal employee status.--No member, alternate, 
     officer, or employee of the Authority (except the Federal 
     cochairperson of the Authority, the alternate and staff for 
     the Federal cochairperson, and any Federal employee detailed 
     to the Authority

[[Page S11266]]

     under subsection (e)(5)) shall be considered to be a Federal 
     employee for any purpose.
       ``(i) Conflicts of Interest.--
       ``(1) In general.--Except as provided under paragraph (2), 
     no State member, alternate, officer, or employee of the 
     Authority shall participate personally and substantially as a 
     member, alternate, officer, or employee of the Authority, 
     through decision, approval, disapproval, recommendation, the 
     rendering of advice, investigation, or otherwise, in any 
     proceeding, application, request for a ruling or other 
     determination, contract, claim, controversy, or other matter 
     in which, to knowledge of the member, alternate, officer, or 
     employee--
       ``(A) the member, alternate, officer, or employee;
       ``(B) the spouse, minor child, partner, or organization 
     (other than a State or political subdivision thereof) of the 
     member, alternate, officer, or employee, in which the member, 
     alternate, officer, or employee is serving as officer, 
     director, trustee, partner, or employee; or
       ``(C) any person or organization with whom the member, 
     alternate, officer, or employee is negotiating or has any 
     arrangement concerning prospective employment;
       has a financial interest.
       ``(2) Disclosure.--Paragraph (1) shall not apply if the 
     State member, alternate, officer, or employee--
       ``(A) immediately advises the Authority of the nature and 
     circumstances of the proceeding, application, request for a 
     ruling or other determination, contract, claim, controversy, 
     or other particular matter presenting a conflict of interest;
       ``(B) makes full disclosure of the financial interest; and
       ``(C) before the proceeding concerning the matter 
     presenting the conflict of interest, receives a written 
     determination by the Authority that the interest is not so 
     substantial as to be likely to affect the integrity of the 
     services that the Authority may expect from the State member, 
     alternate, officer, or employee.
       ``(3) Violation.--Any person that violates this subsection 
     shall be fined not more than $10,000, imprisoned not more 
     than 2 years, or both.
       ``(j) Validity of Contracts, Loans, and Grants.--The 
     Authority may declare void any contract, loan, or grant of or 
     by the Authority in relation to which the Authority 
     determines that there has been a violation of any provision 
     under subsection (h)(4), subsection (i), or sections 202 
     through 209 of title 18, United States Code.

     ``SEC. 382C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.

       ``(a) In General.--The Authority may approve grants to 
     States and public and nonprofit entities for projects, 
     approved in accordance with section 382I--
       ``(1) to assist the region in obtaining the job training 
     and employment-related education, leadership, business, and 
     civic development (with an emphasis on entrepreneurship), 
     that are needed to build and maintain strong local economies;
       ``(2) to provide assistance to severely distressed and 
     underdeveloped counties that lack financial resources for 
     improving basic services;
       ``(3) to fund--
       ``(A) research, demonstrations, evaluations, and 
     assessments of the region; and
       ``(B) training programs, and construction of necessary 
     facilities, and the provision of technical assistance 
     necessary to complete activities described in subparagraph 
     (A); or
       ``(4) to otherwise achieve the objectives of this subtitle.
       ``(b) Funding.--
       ``(1) In general.--Funds for grants under subsection (a) 
     may be provided--
       ``(A) entirely from appropriations to carry out this 
     section;
       ``(B) in combination with funds available under another 
     Federal or Federal grant program; or
       ``(C) from any other source.
       ``(2) Priority of funding.--To best build the foundations 
     for long-term, self-sustaining economies and to complement 
     other Federal and State resources in the region, Federal 
     funds available under this subtitle shall be focused on the 
     activities in the following order or priority:
       ``(A) Basic infrastructure in distressed counties.
       ``(B) Job-related infrastructure.
       ``(C) Job training or employment-related education.
       ``(D) Leadership and civic development.
       ``(E) Business development, with emphasis on 
     entrepreneurship.
       ``(3) Federal share in grant programs.--Notwithstanding any 
     provision of law limiting the Federal share in any grant 
     program, funds appropriated to carry out this section may be 
     used to increase a Federal share in a grant program, as the 
     Authority determines to be appropriate.

     ``SEC. 382D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

       ``(a) Finding.--Congress finds that certain people, States, 
     and local communities of the region, including local 
     development districts, are unable to take maximum advantage 
     of Federal grant programs for which the people are eligible 
     because--
       ``(1) they lack the economic resources to supply the 
     required matching share; or
       ``(2) there are insufficient funds available under the 
     applicable Federal grant law authorizing the program to meet 
     pressing needs of the region.
       ``(b) Federal Grant Program Funding.--In accordance with 
     subsection (c), the Federal cochairperson may use amounts 
     made available to carry out this subtitle, without regard to 
     any limitations on areas eligible for assistance or 
     authorizations for appropriation under any other Act to fund 
     all or any portion of the basic Federal contribution to a 
     project or activity under a Federal grant program in an 
     amount that is above the fixed maximum portion of the cost of 
     the project otherwise authorized by the applicable law, not 
     to exceed 80 percent of the costs of the project except as 
     provided in section 382F(b).
       ``(c) Certification.--
       ``(1) In general.--In the case of any program or project 
     for which all or any portion of the basic Federal 
     contribution to the project under a Federal grant program is 
     proposed to be made under this section, no Federal 
     contribution shall be made until the Federal official 
     administering the Federal law authorizing the contribution 
     certifies that the program or project--
       ``(A) meets the applicable requirements of the applicable 
     Federal grant law; and
       ``(B) could be approved for Federal contribution under the 
     law if funds were available under the law for the program or 
     project.
       ``(2) Certification by authority.--
       ``(A) In general.--The certifications and determinations 
     required to be made by the Authority for approval of projects 
     under this subtitle in accordance with section 382I--
       ``(i) shall be controlling; and
       ``(ii) shall be accepted by the Federal agencies.
       ``(B) Acceptance by federal cochairperson.--Any finding, 
     report, certification, or documentation required to be 
     submitted to the head of the department, agency, or 
     instrumentality of the Federal Government responsible for the 
     administration of any Federal grant program shall be accepted 
     by the Federal cochairperson with respect to a supplemental 
     grant for any project under the program.

     ``SEC. 382E. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND 
                   ADMINISTRATIVE EXPENSES.

       ``(a) Definition of Local Development District.--In this 
     section, the term ``local development district'' means an 
     entity that is--
       ``(1) organized and operated in a manner that ensures 
     broad-based community participation and an effective 
     opportunity for other nonprofit and citizen groups to 
     contribute to the development and implementation of programs 
     in the region;
       ``(2) certified to the Authority as having a charter or 
     authority that includes the economic development of counties 
     or parts of counties or other political subdivisions within 
     the region--
       ``(A) by the Governor of each State in which the entity is 
     located; or
       ``(B) by the State officer designated by the appropriate 
     State law to make the certification; and
       ``(3) is--
       ``(A) a nonprofit incorporated body organized or chartered 
     under the law of the State in which the entity is located;
       ``(B) a nonprofit agency or instrumentality of a State or 
     local government;
       ``(C) a nonprofit agency or instrumentality created through 
     an interstate compact; or
       ``(D) a nonprofit association or combination of bodies, 
     agencies, and instrumentalities described in subparagraphs 
     (A) through (C).
       ``(b) Grants to Local Development Districts.--
       ``(1) In general.--The Authority may make grants for 
     administrative expenses of local development districts.
       ``(2) Conditions for grants.--
       ``(A) Maximum amount.--The amount of any grant awarded 
     under paragraph (1) shall not exceed 80 percent of the 
     administrative expenses of the local development district 
     receiving the grant.
       ``(B) Maximum period.--No grant described in paragraph (1) 
     shall be awarded to a State agency certified as a local 
     development district for a period greater than 3 years.
       ``(C) Local share.--The contributions of a local 
     development district for administrative expenses may be in 
     cash or in kind, fairly evaluated, including space, 
     equipment, and services.
       ``(c) Duties of Local Development Districts.--Local 
     development districts--
       ``(1) shall operate as lead organizations serving 
     multicounty areas in the region at the local level; and
       ``(2) shall serve as a liaison between State and local 
     governments, nonprofit organizations (including community-
     based groups and educational institutions), the business 
     community, and citizens that--
       ``(A) are involved in multijurisdictional planning;
       ``(B) provide technical assistance to local jurisdictions 
     and potential grantees; and
       ``(C) provide leadership and civic development assistance.

     ``SEC. 382F. DISTRESSED COUNTIES AND ECONOMICALLY STRONG 
                   COUNTIES.

       ``(a) Designations.--Not later than 90 days after the date 
     of enactment of this subtitle, and annually thereafter, the 
     Authority, in accordance with such criteria as the Authority 
     may establish, shall designate--
       ``(1) as distressed counties, counties in the region that 
     are the most severely and persistently distressed and 
     underdeveloped;
       ``(2) as economically strong counties, counties in the 
     region that are approaching or

[[Page S11267]]

     have reached economic parity with the rest of the United 
     States; and
       ``(3) as isolated areas of distress, areas located in an 
     economically strong county that have high rates of poverty or 
     unemployment.
       ``(b) Distressed Counties.--
       ``(1) In general.--The Authority shall allocate at least 50 
     percent of the appropriations made available under section 
     382N for programs and projects designed to serve the needs of 
     distressed counties in the region.
       ``(2) Funding limitations.--The funding limitations under 
     section 382D(b) shall not apply to projects providing basic 
     services to residents in 1 or more distressed counties in the 
     region.
       ``(c) Economically Strong Counties.--
       ``(1) In general.--Except as provided in this subsection, 
     no funds shall be provided under this subtitle for a project 
     located in a county designated as an economically strong 
     county under subsection (a).
       ``(2) Exceptions.--
       ``(A) In general.--The funding prohibition under paragraph 
     (1) shall not apply to grants to fund the administrative 
     expenses of local development districts under section 
     382E(b).
       ``(B) Multicounty projects.--The Authority may approve 
     additional exceptions to the funding prohibition under 
     paragraph (1) for--
       ``(i) multicounty projects that include participation by an 
     economically strong county; and
       ``(ii) any other type of project, if the Authority 
     determines that the project could bring significant benefits 
     to areas of the region outside an economically strong county.
       ``(C) Isolated areas of distress.--
       ``(i) In general.--An isolated area of distress shall be 
     eligible for assistance at the discretion of the Authority.
       ``(ii) Determination.--A determination of eligibility of an 
     isolated area of distress for assistance shall be supported--

       ``(I) by the most recent Federal data available; or
       ``(II) if no recent Federal data are available, by the most 
     recent data available through the government of the State in 
     which the isolated area of distress is located.

     ``SEC. 382G. DEVELOPMENT PLANNING PROCESS.

       ``(a) State Development Plan.--In accordance with policies 
     established by the Authority, each State member shall submit 
     on such schedule as the Authority shall prescribe a 
     development plan for the area of the region represented by 
     the State member.
       ``(b) Content of Plan.--A State development plan submitted 
     under subsection (a) shall--
       ``(1) reflect the goals, objectives, and priorities 
     identified in the regional development plan under section 
     382B(d);
       ``(2) describe--
       ``(A) the organization and continuous process for 
     development planning of the State, including the procedures 
     established by the State for the participation of local 
     development districts in the development planning process;
       ``(B) the means by which the development planning process 
     of the State is related to overall State-wide planning and 
     budgeting processes; and
       ``(C) the method of coordinating planning and projects in 
     the region under this subtitle and other Federal, State, and 
     local programs;
       ``(3)(A) identify the goals, objectives, priorities, and 
     expected outcomes of the State for the region, as determined 
     by the Governor;
       ``(B) identify the needs on which those goals, objectives, 
     priorities are based; and
       ``(C) describe the development strategy for achieving and 
     the expected outcomes of those goals, objectives, and 
     priorities; and
       ``(4) describe how strategies proposed in the plan would 
     advance the objectives of this subtitle.
       ``(c) Consultation With Interested Local Parties.--In 
     carrying out the development planning process (including the 
     selection of programs and projects for assistance), a State 
     shall--
       ``(1) consult with--
       ``(A) local development districts;
       ``(B) local units of government; and
       ``(C) citizen groups; and
       ``(2) take into consideration the goals, objectives, 
     priorities, and recommendations of the entities identified in 
     paragraph (1).
       ``(d) Public Participation.--
       ``(1) In general.--The Authority and applicable State and 
     local development districts shall encourage and assist, to 
     the maximum extent practicable, public participation in the 
     development, revision, and implementation of all plans and 
     programs under this subtitle.
       ``(2) Regulations.--The Authority shall develop guidelines 
     specifying minimum goals for public participation described 
     in paragraph (1), including public hearings.

     ``SEC. 382H. PROGRAM DEVELOPMENT CRITERIA.

       ``(a) In General.--In considering programs and projects to 
     be provided assistance under this subtitle, and in 
     establishing a priority ranking of the requests for 
     assistance presented to the Authority, the Authority shall 
     follow procedures that ensure, to the maximum extent 
     practicable, consideration of--
       ``(1) the relationship of the project or class of projects 
     to overall regional development;
       ``(2) the per capita income and poverty and unemployment 
     rates in the area;
       ``(3) the financial resources available to the applicants 
     for assistance seeking to carry out the project;
       ``(4) the importance of the project or class of projects in 
     relation to other projects or classes of projects that may be 
     in competition for the same funds;
       ``(5) the prospects that the project for which assistance 
     is sought will improve, on a continuing rather than a 
     temporary basis, the opportunities for employment, the 
     average level of income, or the economic and social 
     development of the area served by the project; and
       ``(6) the extent to which the project design provides for 
     detailed outcome measurements by which grant expenditures and 
     the results of the expenditures may be evaluated.
       ``(b) No Relocation Assistance.--No financial assistance 
     authorized by this subtitle shall be used to assist a person 
     or entity in relocating from 1 area to another.
       ``(c) Reduction of Funds.--Funds may be provided for a 
     program or project in a State under this subtitle only if the 
     Authority determines that the level of Federal or State 
     financial assistance provided under a law other than this 
     subtitle, for the same type of program or project in the same 
     area of the State within the region, will not be reduced so 
     as to substitute funds authorized by this subtitle.

     ``SEC. 382I. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.

       ``(a) In General.--A State or regional development plan or 
     any multistate subregional plan that is proposed for 
     development under this subtitle shall be reviewed for 
     approval by the Authority in accordance with section 
     382B(e)(3).
       ``(b) Evaluation by State Member.--An application for a 
     grant or any other assistance for a project under this 
     subtitle shall be made through and evaluated for approval by 
     the State member of the Authority representing the applicant.
       ``(c) Certification.--An application for a grant or other 
     assistance for a project shall be approved only on 
     certification by the State member and the Federal 
     cochairperson that the application--
       ``(1) reflects an intent that the project comply with any 
     applicableState development plan;
       ``(2) meets applicable criteria under section 382H;
       ``(3) provides adequate assurance that the proposed project 
     will be properly administered, operated, and maintained; and
       ``(4) otherwise meets the requirements of this subtitle.
       ``(d) Votes for Decisions.--The certification by a State 
     member of an application for a grant or other assistance for 
     a specific project under this section shall, when joined by 
     an affirmative vote of the Federal cochairperson for the 
     application, be considered to satisfy the requirements for 
     affirmative votes for decisions under section 382B.

     ``SEC. 382J. CONSENT OF STATES.

       Nothing in this subtitle requires any State to engage in or 
     accept any program under this subtitle without the consent of 
     the State.

     ``SEC. 382K. RECORDS.

       ``(a) Records of the Authority.--
       ``(1) In general.--The Authority shall maintain accurate 
     and complete records of all transactions and activities of 
     the Authority financed with Federal funds.
       ``(2) Availability.--All records of the Authority shall be 
     available for audit and examination by the Comptroller 
     General of the United States (including authorized 
     representatives of the Comptroller General).
       ``(b) Records of Recipients of Federal Assistance.--
       ``(1) In general.--Recipients of Federal assistance under 
     this subtitle shall, as required by the Authority, maintain 
     accurate and complete records of transactions and activities 
     financed with Federal funds and report on the transactions 
     and activities to the Authority.
       ``(2) Availability.--All records described in paragraph (1) 
     shall be available for audit by the Comptroller General of 
     the United States and the Authority or their duly authorized 
     representatives.

     ``SEC. 382L. ANNUAL REPORT.

       ``Not later than 180 days after the end of each fiscal 
     year, the Authority shall submit to the President and to 
     Congress a report describing the activities carried out under 
     this subtitle.

     ``SEC. 382M. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There is authorized to be appropriated 
     to the Authority to carry out this subtitle $30,000,000 for 
     each of fiscal years 2001 through 2005, to remain available 
     until expended.
       ``(b) Administrative Expenses.--Not more than 5 percent of 
     the amount appropriated under subsection (a) shall be used 
     for administrative expenses.''.

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