[Congressional Record Volume 149, Number 31 (Wednesday, February 26, 2003)]
[Senate]
[Pages S2849-S2855]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BINGAMAN (for himself, Mrs. Hutchison, and Mrs. Boxer):
  S. 458. A bill to establish the Southwest Regional Border Authority; 
to the Committee on Environment and Public Works.
  Mr. BINGAMAN. Mr. President, I rise today to introduce legislation 
along with Senator Kay Bailey Hutchison that will help raise the 
standard of living for hundreds of thousands of Americans who live near 
the U.S.-Mexico Border. The ``Southwest Regional Border Authority Act'' 
would create an economic development authority for the Southwest border 
region, charged with awarding grants to border communities in support 
of their local economic development projects.
  The need for a Regional Border Authority is acute: the poverty rate 
in the Southwest border region is 20 percent--nearly double the 
national average; unemployment rates in Southwest border counties often 
reach as high as five times the national unemployment rate; per capita 
personal income in the region is greatly below the national average; 
and lack of adequate access to capital has made it difficult for 
businesses to start up in the region.
  In addition, the development of key infrastructures--such as water 
and wastewater, transportation, public health, and telecommunications--
has not kept pace with the population explosion and the increase in 
cross-border commerce.
  The counties in the Southwest border region are among the most 
economically distressed in the nation. In fact, there are only a few 
such regions of economic distress throughout the country--almost all of 
which are currently served by regional economic development 
commissions. These commissions, which are authorized by Congress, 
include the Appalachian Regional Commission, the Delta Regional 
Authority, and the Denali Commission. In order to address the needs of 
the border region in a similar fashion, I propose the creation of a 
regional economic development authority for the Southwest border.
  My bill, which is modeled after the Appalachian Regional Commission, 
is based on four guiding principles. First, it starts from the premise 
that the people who live in the southwest border region know best when 
it comes to making decisions that affect their communities. Second, it 
employs a regional approach to economic development and encourages 
communities to work across county and state lines when appropriate. All 
too often, past efforts to improve the Southwest border region have hit 
roadblocks as a result of poor coordination and communication between 
communities.
  Third, it creates an economic development entity that is 
independent--meaning it will be able to make decisions that are in the 
best interest of border communities, without being subject to the 
politics of Federal agencies. Finally, it brings together 
representatives of the four Southwest border States and the Federal 
Government as equal partners, all of whom will work to improve the 
quality of life and standard of living for border residents.
  This is not just another commission, and it is certainly not just 
another grant program. I believe the Southwest Regional Border 
Authority not only will help leverage new private sector funding, but 
also will help better target Federal funding to those projects that are 
most likely to achieve the desired outcome of increased economic 
development.
  The legislation accomplishes this through a sensible mechanism of 
development planning. Under the bill, communities in each of the four 
border States will work through ``local development districts'' to 
create development plans that reflect the needs and priorities specific 
to each locality. These local development plans then go to the State in 
which the communities are located, where they become the basis for a 
State development plan. The four State development plans, in turn, from 
the basis for a regional development plan, which is put together by the 
Authority. The purpose of this planning process is to ensure that local 
priorities are reflected in the projects funded by the Authority, while 
also

[[Page S2850]]

providing flexibility to the Authority to fund projects that are 
regional in nature.
  This process has several advantages. First, by ensuring that Federal 
dollars are targeted to projects that have gone through thorough 
planning at the local level, we will greatly improve the probability of 
success for those projects--thereby increasing the Federal Government's 
return on its investment. Second, local development plans are essential 
to attracting private sector funding. Increased private investment 
means less need for Federal, State, and local public sector funding. 
Third, combining resources in such a way will help communities get more 
funding then they can currently get from any one program. This is 
particularly important now as we in Congress grapple with how to fund 
the needs of the border in the current budget climate.
  I believe there are additional benefits to be derived from the Border 
Authority. As the only independent, quasi-Federal entity charged with 
economic development for the entire Southwest border region, the 
Authority will become a clearinghouse of sorts on all the funding 
available to the border region. This will enable the Authority to help 
border communities learn which programs are best suited to their needs 
and most likely to achieve the goals of their local development plans. 
Another benefit is its focus on economically distressed counties. Under 
the bill, the Authority can provide funding to increase the Federal 
share of a federal grant program to up to 90 percent of the total cost. 
This is particularly helpful to the many communities that are often 
unable to utilize federal funding because they can't afford the 
required local match.
  For far too long the needs of the Southwest Border have been ignored, 
overlooked, or underfunded. I am confident that the creation of a 
Southwest Regional Border Authority not only will call attention to the 
great needs that exist along the border, but also provide resources to 
local communities where the dollars will do the most good. I urge the 
Senate to move swiftly on this legislation, and I ask my colleagues for 
their support.
  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:

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Southwest 
     Regional Border Authority Act''.
       (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 purposes.
Sec. 3. Definitions.

              TITLE I--SOUTHWEST REGIONAL BORDER AUTHORITY

Sec. 101. Membership and voting.
Sec. 102. Duties and powers.
Sec. 103. Authority personnel matters.

               TITLE II--GRANTS AND DEVELOPMENT PLANNING

Sec. 201. Infrastructure development and improvement.
Sec. 202. Technology development.
Sec. 203. Community development and entrepreneurship.
Sec. 204. Education and workforce development.
Sec. 205. Funding.
Sec. 206. Supplements to Federal grant programs.
Sec. 207. Demonstration projects.
Sec. 208. Local development districts; certification and administrative 
              expenses.
Sec. 209. Distressed counties and areas and economically strong 
              counties.
Sec. 210. Development planning process.

                       TITLE III--ADMINISTRATION

Sec. 301. Program development criteria.
Sec. 302. Approval of development plans and projects.
Sec. 303. Consent of States.
Sec. 304. Records.
Sec. 305. Annual report.
Sec. 306. Authorization of appropriations.
Sec. 307. Termination of authority.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) a rapid increase in population in the Southwest border 
     region is placing a significant strain on the infrastructure 
     of the region, including transportation, water and 
     wastewater, public health, and telecommunications;
       (2) 20 percent of the residents of the region have incomes 
     below the poverty level;
       (3) unemployment rates in counties in the region are up to 
     5 times the national unemployment rate;
       (4) per capita personal income in the region is 
     significantly below the national average and much of the 
     income in the region is distributed through welfare programs, 
     retirement programs, and unemployment payments;
       (5) a lack of adequate access to capital in the region--
       (A) has created economic disparities between communities in 
     the region and communities outside the region; and
       (B) has made it difficult for businesses to start up in the 
     region;
       (6) it has been difficult for displaced workers in the 
     region to find employment because many workers--
       (A) have limited English language proficiency; and
       (B) lack adequate English language and job training;
       (7) many residents of the region live in communities 
     referred to as ``colonias'' that lack basic necessities, 
     including running water, sewers, storm drainage, and 
     electricity;
       (8) many of the problems that exist in the region could be 
     solved or ameliorated by technology that would contribute to 
     economic development in the region;
       (9) while numerous Federal, State, and local programs 
     target financial resources to the region, those programs are 
     often uncoordinated, duplicative, and, in some cases, 
     unavailable to eligible border communities because those 
     communities cannot afford the required funding match;
       (10) Congress has established several regional economic 
     development commissions, including the Appalachian Regional 
     Commission, the Delta Regional Authority, and the Denali 
     Commission, to improve the economies of those areas of the 
     United States that experience the greatest economic distress; 
     and
       (11) many of the counties in the region are among the most 
     economically distressed in the United States and would 
     benefit from a regional economic development commission.
       (b) Purposes.--The purposes of this Act are--
       (1) to establish a regional economic development authority 
     for the Southwest Border region to address critical issues 
     relating to the economic health and well-being of the 
     residents of the region;
       (2) to provide funding to communities in the region to 
     stimulate and foster infrastructure development, technology 
     development, community development and entrepreneurship, and 
     education and workforce development in the region;
       (3) to increase the total amount of Federal funding 
     available for border economic development projects by 
     coordinating with and reducing duplication of other Federal, 
     State, and local programs; and
       (4) to empower the people of the region through the use of 
     local development districts and State and regional 
     development plans that reflect State and local priorities.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Attainment county.--The term ``attainment county'' 
     means an economically strong county that is not a distressed 
     county or a competitive county.
       (2) Authority.--The term ``Authority'' means the Southwest 
     Regional Border Authority established by section 101(a)(1).
       (3) Binational region.--The term ``binational region'' 
     means the area in the United States and Mexico that is within 
     150 miles of the international border between the United 
     States and Mexico.
       (4) Business incubator service.--The term ``business 
     incubator service'' means--
       (A) a legal service, including aid in preparing a corporate 
     charter, partnership agreement, or contract;
       (B) a service in support of the protection of intellectual 
     property through a patent, a trademark, or any other means;
       (C) a service in support of the acquisition or use of 
     advanced technology, including the use of Internet services 
     and Web-based services; and
       (D) consultation on strategic planning, marketing, or 
     advertising.
       (5) Competitive county.--The term ``competitive county'' 
     means an economically strong county that meets at least 1, 
     but not all, of the criteria for a distressed county 
     specified in paragraph (5).
       (6) Distressed county.--The term ``distressed county'' 
     means a county in the region that--
       (A)(i) has a poverty rate that is at least 150 percent of 
     the poverty rate of the United States;
       (ii) has a per capita market income that is not more than 
     67 percent of the per capita market income of the United 
     States; and
       (iii) has a 3-year unemployment rate that is at least 150 
     percent of the unemployment rate of the United States; or
       (B)(i) has a poverty rate that is at least 200 percent of 
     the poverty rate of the United States; and
       (ii)(I) has a per capita market income that is not more 
     than 67 percent of the per capita market income of the United 
     States; or
       (II) has a 3-year unemployment rate that is at least 150 
     percent of the unemployment rate of the United States.
       (7) Economically strong county.--The term ``economically 
     strong county'' means a county in the region that is not a 
     distressed county.
       (8) Federal grant program.--The term ``Federal grant 
     program'' means a Federal grant program to provide assistance 
     in--

[[Page S2851]]

       (A) acquiring or developing land;
       (B) constructing or equipping a highway, road, bridge, or 
     facility; or
       (C) carrying out other economic development activities.
       (9) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (10) Isolated area of distress.--The term ``isolated area 
     of distress'' means an area located in an economically strong 
     county that has a high rate of poverty, unemployment, or 
     outmigration, as determined by the Authority.
       (11) Local development district.--The term ``local 
     development district'' means an entity that--
       (A)(i) is an economic development district that is--
       (I) in existence on the date of enactment of this Act; and
       (II) recognized by the Economic Development Administration; 
     and
       (III) located in the region; or
       (ii) if an entity described in clause (i) does not exist--
       (I) is organized and operated in a manner that ensures 
     broad-based community participation and an effective 
     opportunity for local officials, community leaders, and the 
     public to contribute to the development and implementation of 
     programs in the region;
       (II) is governed by a policy board with at least a simple 
     majority of members consisting of--

       (aa) elected officials; or
       (bb) designees or employees of a general purpose unit of 
     local government that have been appointed to represent the 
     unit of local government; and

       (III) is certified by the Governor or appropriate State 
     officer as having a charter or authority that includes the 
     economic development of counties, portions of counties, or 
     other political subdivisions within the region; and
       (B) has not, as certified by the Federal cochairperson--
       (i) inappropriately used Federal grant funds from any 
     Federal source; or
       (ii) appointed an officer who, during the period in which 
     another entity inappropriately used Federal grant funds from 
     any Federal source, was an officer of the other entity.
       (12) Region.--The term ``region'' means--
       (A) the counties of Cochise, Gila, Graham, Greenlee, La 
     Paz, Maricopa, Pima, Pinal, Santa Cruz, and Yuma in the State 
     of Arizona;
       (B) the counties of Imperial, Los Angeles, Orange, 
     Riverside, San Bernardino, San Diego, and Ventura in the 
     State of California;
       (C) the counties of Catron, Chaves, Dona Ana, Eddy, Grant, 
     Hidalgo, Lincoln, Luna, Otero, Sierra, and Socorro in the 
     State of New Mexico; and
       (D) the counties of Atascosa, Bandera, Bee, Bexar, 
     Brewster, Brooks, Cameron, Coke, Concho, Crane, Crockett, 
     Culberson, Dimmit, Duval, Ector, Edwards, El Paso, Frio, 
     Gillespie, Glasscock, Hidalgo, Hudspeth, Irion, Jeff Davis, 
     Jim Hogg, Jim Wells, Karnes, Kendall, Kenedy, Kerr, Kimble, 
     Kinney, Kleberg, La Salle, Live Oak, Loving, Mason, Maverick, 
     McMullen, Medina, Menard, Midland, Nueces, Pecos, Presidio, 
     Reagan, Real, Reeves, San Patricio, Shleicher, Sutton, Starr, 
     Sterling, Terrell, Tom Green, Upton, Uvalde, Val Verde, Ward, 
     Webb, Willacy, Wilson, Winkler, Zapata, and Zavala in the 
     State of Texas.
       (13) Small business.--The term ``small business'' has the 
     meaning given the term ``small business concern'' in section 
     3(a) of the Small Business Act (15 U.S.C. 632(a)).

              TITLE I--SOUTHWEST REGIONAL BORDER AUTHORITY

     SEC. 101. MEMBERSHIP AND VOTING.

       (a) Establishment.--
       (1) In general.--There is established the Southwest 
     Regional Border Authority.
       (2) Composition.--The Authority shall be composed of--
       (A) a Federal member, to be appointed by the President, by 
     and with the advice and consent of the Senate; and
       (B) State members, who shall consist of 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--
       (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 shall--
       (i) be a Governor of a State described in paragraph (2)(B);
       (ii) be elected by the State members for a term of not more 
     than 2 years; and
       (iii) serve only 1 term during any 4 year period.
       (b) Alternate Members.--
       (1) State alternates.--The State member of a State 
     described in paragraph (2)(B) may have a single alternate, 
     who shall be--
       (A) a resident of that State; and
       (B) appointed by the Governor of the State, from among the 
     members of the cabinet or personal staff of the Governor.
       (2) Alternate federal cochairperson.--The President shall 
     appoint an alternate Federal cochairperson.
       (3) Quorum.--Subject to subsection (d)(4), a State 
     alternate member shall not be counted toward the 
     establishment of a quorum of the members of the Authority in 
     any case 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 paragraph (2) or (3) of subsection 
     (d), and no voting right of any member of the Authority, 
     shall be delegated to any person who is not--
       (A) a member of the Authority; or
       (B) entitled to vote at meetings of the Authority.
       (c) Meetings.--
       (1) Initial meeting.--The initial meeting of the Authority 
     shall be conducted not later than the date that is the 
     earlier of--
       (A) 180 days after the date of enactment of this Act; or
       (B) 60 days after the date on which the Federal 
     cochairperson is appointed.
       (2) Other meetings.--The Authority shall hold meetings at 
     such times as the Authority determines, but not less often 
     than semiannually.
       (3) Location.--Meetings of the Authority shall be 
     conducted, on a rotating basis, at a site in the region in 
     each of the States of Arizona, California, New Mexico, and 
     Texas.
       (d) Voting.--
       (1) In general.--To be effective, a decision by the 
     Authority shall require the approval of the Federal 
     cochairperson and not less than 60 percent of the State 
     members of the Authority (not including any member 
     representing a State that is delinquent under section 
     102(d)(2)(D)).
       (2) Quorum.--
       (A) In general.--A majority of the State members shall 
     constitute a quorum.
       (B) Required for policy decision.--A quorum of State 
     members shall be required to be present for the Authority to 
     make any policy decision, including--
       (i) a modification or revision of a policy decision of the 
     Authority;
       (ii) approval of a State or regional development plan; and
       (iii) 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 302.
       (4) Voting by alternate members.--An alternate member shall 
     vote in the case of the absence, death, disability, removal, 
     or resignation of the Federal or State member for which the 
     alternate member is an alternate.

     SEC. 102. DUTIES AND POWERS.

       (a) Duties.--The Authority shall--
       (1) develop 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) conduct and sponsor investigations, research, and 
     studies, including an inventory and analysis of the resources 
     of the region, using, in part, the materials compiled by the 
     Interagency Task Force on the Economic Development of the 
     Southwest Border established by Executive Order No. 13122 (64 
     Fed. Reg. 29201);
       (3) sponsor demonstration projects under section 207;
       (4)(A) enhance the capacity of, and provide support for, 
     local development districts in the region; or
       (B) if there is no local development district described in 
     clause (i) of section 3(11)(A) for a portion of the region, 
     foster the creation of a local development district;
       (5) review and study Federal, State, and local public and 
     private programs and, as appropriate, recommend modifications 
     or additions to increase the effectiveness of the programs;
       (6) formulate and recommend, as appropriate, interstate and 
     international compacts and other forms of interstate and 
     international cooperation;
       (7) encourage private investment in industrial, commercial, 
     and recreational projects in the region;
       (8) provide a forum for consideration of the problems of 
     the region and any proposed solutions to those problems;
       (9) establish and use, as appropriate, citizens, special 
     advisory counsels, and public conferences; and
       (10) provide a coordinating mechanism to avoid duplication 
     of efforts among the border programs of the Federal agencies 
     and the programs established under the North American Free 
     Trade Agreement entered into by the United States, Mexico, 
     and Canada on December 17, 1992.
       (b) Powers.--In carrying out subsection (a), 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 a description of the 
     proceedings of, and reports on actions by, the Authority as 
     the Authority considers appropriate;
       (2) request from any Federal, State, or local agency such 
     information as may be available to or procurable by the 
     agency that may be of use to the Authority in carrying out 
     the duties of the Authority;
       (3) maintain an accurate and complete record of all 
     transactions and activities of the Authority, to be available 
     for audit and examination by the Comptroller General of the 
     United States;
       (4) adopt, amend, and repeal bylaws and rules governing the 
     conduct of business and the performance of duties of the 
     Authority;

[[Page S2852]]

       (5) request the head of any Federal agency to detail to the 
     Authority, for a specified period of time, such personnel as 
     the Authority requires to carry out duties 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, for a specified 
     period of time, such personnel as the Authority requires to 
     carry out the duties of the Authority, each such detail to be 
     without loss of seniority, pay, or other employee status;
       (7) make recommendations to the President regarding--
       (A) the expenditure of funds at the Federal, State, and 
     local levels under this Act; and
       (B) additional Federal, State, and local legislation that 
     may be necessary to further the purposes of this Act;
       (8) 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;
       (9) accept, use, and dispose of gifts or donations of 
     services or real, personal, tangible, or intangible property;
       (10) enter into and perform such contracts, leases, 
     cooperative agreements, or other transactions as are 
     necessary to carry out the duties of the Authority;
       (11) establish and maintain--
       (A) a headquarters for the Authority, to be located at a 
     site that is not more than 100 kilometers from the 
     international border between the United States and Mexico; 
     and
       (B) at least 1 field office in each of the States of 
     Arizona, California, New Mexico, and Texas, to be located at 
     appropriate sites in the region that are not more than 100 
     kilometers from the international border between the United 
     States and Mexico; and
       (12) provide for an appropriate level of representation in 
     Washington, D.C.
       (c) Federal Agency Cooperation.--A Federal agency shall--
       (1) cooperate with the Authority; and
       (2) provide, on request of the Federal cochairperson, 
     appropriate assistance in carrying out this Act, in 
     accordance with applicable Federal laws (including 
     regulations).
       (d) Administrative Expenses.--
       (1) In general.--
       (A) Administrative expenses.--Subject to paragraph (2), 
     administrative expenses of the Authority shall be paid--
       (i) by the Federal Government, in an amount equal to 60 
     percent of the administrative expenses; and
       (ii) by the States in the region that elect to participate 
     in the Authority, in an amount equal to 40 percent of the 
     administrative expenses.
       (B) Expenses of federal chairperson.--All expenses of the 
     Federal cochairperson, including expenses of the alternate 
     and staff of the Federal cochairperson, shall be paid by the 
     Federal Government.
       (2) State share.--
       (A) In general.--Subject to subparagraph (C), the share of 
     administrative expenses of the Authority to be paid by each 
     State shall be determined by a unanimous vote of the State 
     members of the Authority.
       (B) No federal participation.--The Federal cochairperson 
     shall not participate or vote in any decision under 
     subparagraph (A).
       (C) Limitation.--A State shall not pay less than 10 nor 
     more than 40 percent of the share of administrative expenses 
     of the Authority determined under paragraph (1)(A)(ii).
       (D) Delinquent states.--During any period in which a State 
     is more than 1 year delinquent in payment of the State's 
     share of administrative expenses of the Authority under this 
     subsection (as determined by the Secretary)--
       (i) no assistance under this Act shall be provided to the 
     State (including assistance to a political subdivision or a 
     resident of the State) for any project not approved as of the 
     date of the commencement of the delinquency; and
       (ii) no member of the Authority from the State shall 
     participate or vote in any action by the Authority.
       (E) Effect on assistance.--A State's share of 
     administrative expenses of the Authority under this 
     subsection shall not be taken into consideration in 
     determining the amount of assistance provided to the State 
     under title II.

     SEC. 103. AUTHORITY PERSONNEL MATTERS.

       (a) Compensation of Members.--
       (1) Federal cochairperson.--The Federal cochairperson shall 
     be compensated by the Federal Government at the annual rate 
     of basic pay prescribed for level III of the Executive 
     Schedule in subchapter II of chapter 53 of title 5, United 
     States Code.
       (2) Alternate federal cochairperson.--The alternate Federal 
     cochairperson--
       (A) shall be compensated by the Federal Government at the 
     annual rate of basic pay prescribed for 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 member representing the State on the Authority at 
     the rate established by State law.
       (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 member to the Authority.
       (b) Detailed Employees.--
       (1) In general.--No person detailed to serve the Authority 
     under section 102(b)(6) shall receive any salary, or any 
     contribution to or supplementation of salary, for services 
     provided to the Authority from--
       (A) any source other than the State, local, or 
     intergovernmental department or agency from which the person 
     was detailed; or
       (B) the Authority.
       (2) Violation.--Any person that violates this subsection 
     shall be fined not more than $5,000, imprisoned not more than 
     1 year, or both.
       (c) Additional Personnel.--
       (1) Compensation.--
       (A) 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.
       (B) Exception.--Compensation under subparagraph (A) shall 
     not exceed the maximum rate of basic pay established 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.
       (2) Executive director.--The executive director shall be 
     responsible for--
       (A) carrying out the administrative duties of the 
     Authority;
       (B) directing the Authority staff; and
       (C) carrying out such other duties as the Authority may 
     assign.
       (3) No federal employee status.--No member, alternate, 
     officer, or employee of the Authority (other than the Federal 
     cochairperson, the alternate Federal cochairperson, staff of 
     the Federal cochairperson, and any Federal employee detailed 
     to the Authority under subsection (b)) shall be considered to 
     be a Federal employee for any purpose.
       (d) Conflicts of Interest.--
       (1) In general.--Except as provided under paragraph (2), no 
     State member, State alternate, officer, employee, or detailee 
     of the Authority shall participate personally and 
     substantially as a member, alternate, officer, employee, or 
     detailee 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 the member, alternate, 
     officer, employee, or detailee has a financial interest.
       (2) Disclosure.--Paragraph (1) shall not apply if the State 
     member, State alternate, officer, employee, or detailee--
       (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 potential 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, State alternate, 
     officer, employee, or detailee.
       (3) Violation.--Any person that violates this subsection 
     shall be fined not more than $10,000, imprisoned not more 
     than 2 years, or both.
       (e) 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 subsection (b), 
     subsection (d), or any of sections 202 through 209 of title 
     18, United States Code.
       (f) Applicable Labor Standards.--
       (1) In general.--All laborers and mechanics employed by 
     contractors or subcontractors in the construction, 
     alteration, or repair, including painting and decorating, of 
     projects, buildings, and works funded by the United States 
     under this Act, shall be paid wages at not less than the 
     prevailing wages on similar construction in the locality as 
     determined by the Secretary of Labor in accordance with the 
     Act of March 3, 1931 (40 U.S.C. 276a et seq.).
       (2) Authority.--With respect to the determination of wages 
     under paragraph (1), the Secretary of Labor shall have the 
     authority and functions set forth in Reorganization Plan No. 
     14 of 1950 (64 Stat. 1267) and section 2 of the Act of June 
     13, 1934 (40 U.S.C. 276c).

               TITLE II--GRANTS AND DEVELOPMENT PLANNING

     SEC. 201. INFRASTRUCTURE DEVELOPMENT AND IMPROVEMENT.

       The Authority may approve grants to States, local 
     governments, Indian tribes, and public and nonprofit 
     organizations in the region for projects, approved in 
     accordance with section 302, to develop and improve the 
     transportation, water and wastewater, public health, and 
     telecommunications infrastructure of the region.

     SEC. 202. TECHNOLOGY DEVELOPMENT AND DEPLOYMENT.

       The Authority may approve grants to small businesses, 
     universities, national laboratories, and nonprofit 
     organizations in the

[[Page S2853]]

     region to research, develop, demonstrate, and deploy 
     technology that addresses--
       (1) water quality;
       (2) water quantity;
       (3) pollution;
       (4) transportation;
       (5) energy consumption;
       (6) public health;
       (7) border and port security; and
       (8) any other related matter that stimulates job creation 
     or enhances economic development in the region, as determined 
     by the Authority.

     SEC. 203. COMMUNITY DEVELOPMENT AND ENTREPRENEURSHIP.

       The Authority may approve grants to States, local 
     governments, Indian tribes, small businesses, and public or 
     nonprofit entities for projects, approved in accordance with 
     section 302--
       (1) to create dynamic local economies by--
       (A) recruiting businesses to the region; and
       (B) increasing and expanding international trade to other 
     countries;
       (2) to foster entrepreneurship by--
       (A) supporting the advancement of, and providing 
     entrepreneurial training and education for, youths, students, 
     and businesspersons;
       (B) improving access to debt and equity capital by 
     facilitating the establishment of development venture capital 
     funds and other appropriate means;
       (C) providing aid to communities in identifying, 
     developing, and implementing development strategies for 
     various sectors of the economy; and
       (D)(i) developing a working network of business incubators; 
     and
       (ii) supporting entities that provide business incubator 
     services; and
       (3) to promote civic responsibility and leadership through 
     activities that include--
       (A) the identification and training of emerging leaders;
       (B) the encouragement of citizen participation; and
       (C) the provision of assistance for strategic planning and 
     organization development.

     SEC. 204. EDUCATION AND WORKFORCE DEVELOPMENT.

       The Authority, in coordination with State and local 
     workforce development boards, may approve grants to States, 
     local governments, Indian tribes, small businesses, and 
     public or nonprofit entities for projects, approved in 
     accordance with section 302--
       (1) to assist the region in obtaining the job training, 
     employment-related education, and business development (with 
     an emphasis on entrepreneurship) that are needed to build and 
     maintain strong local economies; and
       (2) to supplement in-plant training programs offered by 
     State and local governments to attract new businesses to the 
     region.

     SEC. 205. FUNDING.

       (a) In General.--Funds for grants under sections 201 
     through 204 may be provided--
       (1) entirely from appropriations to carry out this Act;
       (2) in combination with funds available under another 
     Federal grant program or other Federal program; or
       (3) in combination with funds from any other source, 
     including--
       (A) State and local governments, nonprofit organizations, 
     and the private sector in the United States;
       (B) the federal and local government of, and private sector 
     in, Mexico; and
       (C) the North American Development Bank.
       (b) Priority of Funding.--
       (1) In general.--Subject to paragraph (2), the Authority 
     shall award funding to each State in the region for 
     activities in accordance with an order of priority to be 
     determined by the State.
       (2) Funding for border counties.--For each fiscal year, the 
     Authority shall allocate at least 60 percent of the amounts 
     made available under section 306 for programs and projects 
     designed to serve the needs of--
       (A) distressed counties located along the international 
     border between the United States and Mexico; and
       (B) isolated areas of distress located within counties 
     along the international border between the United States and 
     Mexico.
       (c) Binational Projects.--
       (1) Prohibition on provision of funding to non-united 
     states entities.--The Authority shall not award funding to 
     any entity that is not incorporated in the United States.
       (2) Funding of binational projects.--The Authority may 
     award funding to a project in which an entity that is 
     incorporated outside the United States participates if, for 
     any fiscal year, the entity matches with an equal amount, in 
     cash or in-kind, the assistance received under this Act for 
     the fiscal year.

     SEC. 206. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

       (a) Finding.--Congress finds that certain States and local 
     communities of the region, including local development 
     districts, may be unable to take maximum advantage of Federal 
     grant programs for which the States and communities are 
     eligible because--
       (1) they lack the economic resources to provide the 
     required matching share; or
       (2) there are insufficient funds available under the 
     Federal law authorizing the Federal grant program to meet 
     pressing needs of the region.
       (b) Federal Grant Program Funding.--Notwithstanding any 
     provision of law limiting the Federal share, the areas 
     eligible for assistance, or the authorizations of 
     appropriations, under any Federal grant program, and in 
     accordance with subsection (c), the Authority, with the 
     approval of the Federal cochairperson and with respect to a 
     project to be carried out in the region, may--
       (1) increase the Federal share of the costs of a project 
     under any Federal grant program to not more than 90 percent 
     (except as provided in section 209(b)); and
       (2) use amounts made available to carry out this Act to pay 
     all or a portion of the increased Federal share.
       (c) Certifications.--
       (1) In general.--In the case of any project for which all 
     or any portion of the basic Federal share of the costs of the 
     project is proposed to be paid under this section, no Federal 
     contribution shall be made until the Federal official 
     administering the Federal law that authorizes the Federal 
     grant program certifies that the project--
       (A) meets (except as provided in subsection (b)) the 
     applicable requirements of the applicable Federal grant 
     program; and
       (B) could be approved for Federal contribution under the 
     Federal grant program if funds were available under the law 
     for the 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 Act in accordance with section 302--
       (i) shall be controlling; and
       (ii) shall be accepted by the Federal agencies.
       (B) Acceptance by federal cochairperson.--In the case of 
     any project described in paragraph (1), any finding, report, 
     certification, or documentation required to be submitted with 
     respect to the project to the head of the department, agency, 
     or instrumentality of the Federal Government responsible for 
     the administration of the Federal grant program under which 
     the project is carried out shall be accepted by the Federal 
     cochairperson.

     SEC. 207. DEMONSTRATION PROJECTS.

       (a) In General.--For each fiscal year, the Authority may 
     approve not more than 10 demonstration projects to carry out 
     activities described in sections 201 through 204, of which 
     not more than 3 shall be carried out in any 1 State.
       (b) Requirements.--A demonstration project carried out 
     under this section shall--
       (1) be carried out on a multistate or multicounty basis; 
     and
       (2) be developed in accordance with the regional 
     development plan prepared under section 210(d).

     SEC. 208. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND 
                   ADMINISTRATIVE EXPENSES.

       (a) Grants to Local Development Districts.--
       (1) In general.--The Authority shall make grants to local 
     development districts to pay the administrative expenses of 
     the 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 for a period greater than 3 years to a State 
     agency certified as a local development district.
       (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.
       (b) Duties of Local Development Districts.--A local 
     development district shall--
       (1) operate as a lead organization serving multicounty 
     areas in the region at the local level;
       (2) assist the Authority in carrying out outreach 
     activities for local governments, community development 
     groups, the business community, and the public;
       (3) serve as a liaison between State and local governments, 
     nonprofit organizations (including community-based groups and 
     educational institutions), the business community, and 
     citizens; and
       (4) assist the individuals and entities described in 
     paragraph (3) in identifying, assessing, and facilitating 
     projects and programs to promote the economic development of 
     the region.

     SEC. 209. DISTRESSED COUNTIES AND AREAS AND ECONOMICALLY 
                   STRONG COUNTIES.

       (a) Designations.--At the initial meeting of the Authority 
     and annually thereafter, the Authority, in accordance with 
     such criteria as the Authority may establish, shall 
     designate--
       (1) distressed counties;
       (2) economically strong counties;
       (3) attainment counties;
       (4) competitive counties; and
       (5) isolated areas of distress.
       (b) Distressed Counties.--
       (1) In general.--For each fiscal year, the Authority shall 
     allocate at least 50 percent of the amounts made available 
     under section 306 for programs and projects designed to serve 
     the needs of distressed counties and isolated areas of 
     distress in the region.
       (2) Funding limitations.--The funding limitations under 
     section 206(b) shall not apply to a project to provide 
     transportation or basic public services to residents of 1 or 
     more distressed counties or isolated areas of distress in the 
     region.
       (c) Economically Strong Counties.--
       (1) Attainment counties.--Except as provided in paragraph 
     (3), the Authority shall

[[Page S2854]]

     not provide funds for a project located in a county 
     designated as an attainment county under subsection (a)(3).
       (2) Competitive counties.--Except as provided in paragraph 
     (3), the Authority shall not provide more than 30 percent of 
     the total cost of any project carried out in a county 
     designated as a competitive county under subsection 
     (a)(2)(B).
       (3) Exceptions.--
       (A) In general.--The funding prohibition under paragraph 
     (1) and the funding limitation under paragraph (2) shall not 
     apply to grants to fund the administrative expenses of local 
     development districts under section 208(a).
       (B) Multicounty projects.--If the Authority determines that 
     a project could bring significant benefits to areas of the 
     region outside an attainment or competitive county, the 
     Authority may waive the application of the funding 
     prohibition under paragraph (1) and the funding limitation 
     under paragraph (2) to--
       (i) a multicounty project that includes participation by an 
     attainment or competitive county; or
       (ii) any other type of project.
       (4) Isolated areas of distress.--For a designation of an 
     isolated area of distress for assistance to be effective, the 
     designation shall be supported--
       (A) by the most recent Federal data available; or
       (B) 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. 210. DEVELOPMENT PLANNING PROCESS.

       (a) State Development Plan.--In accordance with policies 
     established by the Authority, each State member shall submit 
     an annual development plan for the area of the region 
     represented by the State member to assist the Authority in 
     determining funding priorities under section 205(b).
       (b) Consultation With Interested 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; and
       (B) local units of government;
       (2) take into consideration the goals, objectives, 
     priorities, and recommendations of the entities described in 
     paragraph (1); and
       (3) solicit input on and take into consideration the 
     potential impact of the State development plan on the 
     binational region.
       (c) 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 Act.
       (2) Regulations.--The Authority shall develop guidelines 
     for providing public participation described in paragraph 
     (1), including public hearings.
       (d) Regional Development Plan.--The Authority shall prepare 
     an annual regional development plan that--
       (1) is based on State development plans submitted under 
     subsection (a);
       (2) takes into account--
       (A) the input of the private sector, academia, and 
     nongovernmental organizations; and
       (B) the potential impact of the regional development plan 
     on the binational region;
       (3) establishes 5-year goals for the development of the 
     region;
       (4) identifies and recommends to the States--
       (A) potential multistate or multicounty projects that 
     further the goals for the region; and
       (B) potential development projects for the binational 
     region; and
       (5) identifies and recommends to the Authority for funding 
     demonstration projects under section 207.

                       TITLE III--ADMINISTRATION

     SEC. 301. PROGRAM DEVELOPMENT CRITERIA.

       (a) In General.--In considering programs and projects to be 
     provided assistance under this Act, and in establishing a 
     priority ranking of the requests for assistance provided 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 an area;
       (3) the financial resources available to the applicants for 
     assistance seeking to carry out the project, with emphasis on 
     ensuring that projects are adequately financed to maximize 
     the probability of successful economic development;
       (4) the socioeconomic 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 development of the area to be 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 Act shall be used to assist a person or 
     entity in relocating from 1 area to another, except that 
     financial assistance may be used as otherwise authorized by 
     this Act to attract businesses from outside the region to the 
     region.
       (c) Maintenance of Effort.--Funds may be provided for a 
     program or project in a State under this Act only if the 
     Authority determines that the level of Federal or State 
     financial assistance provided under a law other than this 
     Act, for the same type of program or project in the same area 
     of the State within the region, will not be reduced as a 
     result of funds made available by this Act.

     SEC. 302. 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 Act shall be reviewed by the 
     Authority.
       (b) Evaluation by State Member.--An application for a grant 
     or any other assistance for a project under this Act 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 that the application for 
     the project--
       (1) describes ways in which the project complies with any 
     applicable State development plan;
       (2) meets applicable criteria under section 301;
       (3) provides adequate assurance that the proposed project 
     will be properly administered, operated, and maintained; and
       (4) otherwise meets the requirements of this Act.
       (d) Votes for Decisions.--On certification by a State 
     member of the Authority of an application for a grant or 
     other assistance for a specific project under this section, 
     an affirmative vote of the Authority under section 101(d) 
     shall be required for approval of the application.

     SEC. 303. CONSENT OF STATES.

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

     SEC. 304. 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.
       (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.--A recipient of Federal funds under this 
     Act shall, as required by the Authority, maintain accurate 
     and complete records of transactions and activities financed 
     with Federal funds and report to the Authority on the 
     transactions and activities.
       (2) Availability.--All records required under paragraph (1) 
     shall be available for audit by the Comptroller General of 
     the United States and the Authority (including authorized 
     representatives of the Comptroller General and the 
     Authority).
       (c) Annual Audit.--The Comptroller General of the United 
     States shall audit the activities, transactions, and records 
     of the Authority on an annual basis.

     SEC. 305. ANNUAL REPORT.

       (a) In General.--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 Act.
       (b) Contents.--
       (1) In general.--The report shall include--
       (A) an evaluation of the progress of the Authority--
       (i) in meeting the goals set forth in the regional 
     development plan and the State development plans; and
       (ii) in working with other Federal agencies and the border 
     programs administered by the Federal agencies;
       (B) examples of notable projects in each State;
       (C) a description of all demonstration projects funded 
     under section 306(b) during the fiscal year preceding 
     submission of the report; and
       (D) any policy recommendations approved by the Authority.
       (2) Initial report.--In addition to the contents specified 
     in paragraph (1), the initial report submitted under this 
     section shall include--
       (A) a determination as to whether the creation of a loan 
     fund to be administered by the Authority is necessary; and
       (B) if the Authority determines that a loan fund is 
     necessary--
       (i) a request for the authority to establish a loan fund; 
     and
       (ii) a description of the eligibility criteria and 
     performance requirements for the loans.

     SEC. 306. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     the Authority to carry out this Act, to remain available 
     until expended--
       (1) $50,000,000 for fiscal year 2004;
       (2) $75,000,000 for fiscal year 2005;
       (3) $90,000,000 for fiscal year 2006;
       (4) $92,000,000 for fiscal year 2007; and
       (5) $94,000,000 for fiscal year 2008.
       (b) Demonstration Projects.--Of the funds made available 
     under subsection (a),

[[Page S2855]]

     $5,000,000 for each fiscal year shall be available to the 
     Authority to carry out section 207.

     SEC. 307. TERMINATION OF AUTHORITY.

       The authority provided by this Act terminates effective 
     October 1, 2008.
                                 ______