[Congressional Record (Bound Edition), Volume 150 (2004), Part 3]
[Senate]
[Pages 3213-3219]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. WYDEN (for himself, Mr. Stevens, and Ms. Murkowski):
  S. 2160. A bill to regulate interstate commerce by prohibiting the 
sale of children's personally identifiable information for commercial 
marketing purposes; to the Committee on Commerce, Science, and 
Transportation.
   Mr. WYDEN. Mr. President and colleagues, there is now clear evidence 
that it is open season for large-scale commercial marketing to the 
Nation's smallest children. As a result, today I am introducing with 
the distinguished chairman of the Senate Appropriations Committee, 
Senator Stevens, legislation to protect the privacy of America's 
children.
   I suspect parents of very young children would not want their 
children's names and addresses, their e-mail addresses, their ages and 
other data treated as a simple marketplace commodity to be freely 
bought and sold for a profit with no questions asked. Yet that is 
exactly what happens every day.
   Parents may not be aware of it, but large list brokers routinely 
advertise and sell information on very young children for marketing 
purposes. Their lists cover millions of children and often include such 
data as ethnicity, family income, and hobbies or interests. In short, 
commercial trafficking in personal information about very young 
children is surprisingly commonplace.
   How extreme has it gotten? Take a look at this example. The broker 
of this list says on their Web site that they have more than 15 million 
names of children from the ages of 2 to 13. They said they update it 
monthly. That is why it is clear it is open season for large-scale 
marketing to the country's smallest children, which has concerned 
Senator Stevens and I. The list brokers break it down for the 
marketers, as well, to help them target the very young.
   On this next graphic, a list broker offers marketing lists that only 
contain the names of preschool children ages 2 to 5. If that is too 
young for a particular marketer's needs, the marketer could pursue 
lists of elementary school children ages 5 through 11 or junior high 
school kids age 11 to 13. These lists of young children are advertised 
openly on the Internet for anyone who is interested.
   We can see the details promised: Full name, address, and age. My 
view is that is not information about youngsters that parents want 
available for sale without the consent of the parents. But it is 
happening now all the time because there is big money in marketing to 
the very young. Children, of course, influence the purchases of their 
parents. Sometimes they have money to spend of their own. As a result, 
an estimated $12 billion per year is spent on marketing to these very 
young children.
   Unfortunately, with all the money involved, the ethics of direct 
marketing to children and appropriate limits get short shrift. The very 
young are not likely to understand the intent and tactics of marketing 
pitches the way adults do and may be more vulnerable to influence, 
manipulation, and questionable and deceptive tactics. The wholesale 
trafficking of specific information about individual youngsters and the 
use of that information to target and contact those children for 
marketing purposes is something that most parents find very troubling.
   The suggested use for these lists runs the gamut. Here is another 
list broker that has 20 million names of children in preschool through 
eighth grade. They have all kinds of suggestions. We can see a few of 
the examples on the chart that make it clear exactly how great this 
potential market is.
   That is why I am introducing today, with the bipartisan support of 
our colleague, the distinguished chairman of the Senate Appropriations 
Committee, Senator Stevens, a privacy act to protect our youngsters.
   The bill's premise is simple: Trafficking in data on very young 
children for the purpose of commercial marketing should not be 
permitted in our country. Specifically, the bill bans the selling or 
purchasing of personal information about people that the seller and 
purchaser know to be very young. There would be an exception for cases 
where the parent is given express consent, provided that the parent had 
notice of what he or she was consenting to and was not required to 
grant consent as a condition of obtaining a desired product or service.
  There would also be an exception for the sale of information for 
nonmarketing purposes as long as the purchaser certifies it will 
neither use the information for marketing nor allow others to do so. 
This exception would allow, for example, health care officials to still 
use available data to track the spread of a disease or for students, of 
course, to get information about various academic activities. The list 
buyers would have to certify that lists are not being purchased or 
resold for marketing; otherwise they will be in violation of the law.
  The bill's enforcement provisions track those of the Children's 
Online Privacy Protection Act. Primary enforcement authority would rest 
with the Federal Trade Commission, and State attorneys general would be 
authorized to bring enforcement actions as well.
  I think we all understand marketers have products they want to get 
out, and lists are a big part of their trade. But it is one proposition 
when the person on the list is an adult; it is quite another to be 
buying and selling and trafficking in all of this data and all of these 
lists on the very young.
  I say to the Senate, if you just spend a little time on the Internet, 
you will

[[Page 3214]]

see what I have concluded; that it is open season for the large-scale 
marketing that is targeted at very small children, and we ought to make 
an effort to draw some lines.
  Yes, marketing is accepted and important with respect to adults. But 
I hope my colleagues will join me and Senator Stevens today in 
supporting a commonsense effort to limit the way in which data is used 
and commercialized about America's smallest children.
  Mr. President, I ask unanimous consent that the text of the 
legislation I am introducing today with Senator Stevens be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2160

       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 ``Children's Listbroker 
     Privacy Act''.

     SEC. 2. FINDINGS.

       The Congress finds the following:
       (1) Commercial list brokers routinely advertise and sell 
     detailed information on children, including names, addresses, 
     ages, and other data, for use in marketing. This data is 
     commonly available on children as young as two years old, 
     enabling marketers to target specific demographics such as 
     junior high school, elementary school, or even preschool.
       (2) Commercially available marketing databases can be very 
     large, covering millions of children.
       (3) Commercially available marketing databases can include 
     a variety of information on the children they cover, from 
     ethnicity to family income to hobbies and interests.
       (4) Money spent on marketing to children has been estimated 
     at $12 billion per year.
       (5) Several Federal statutes, including section 1061 of the 
     No Child Left Behind Act, the Children's Online Privacy 
     Protection Act, and the Family and Educational Rights and 
     Privacy Act, restrict the collection and disclosure of 
     information about children or students under specified 
     circumstances. When data on children is collected in a manner 
     that is outside the scope of those statutes, however, Federal 
     law does not significantly restrict the commercial sale or 
     resale of such data.
       (6) The ability to sell information about children to 
     marketers for a profit creates an economic incentive to find 
     new and creative ways to collect and compile such 
     information, and possibly to circumvent or subvert the intent 
     of those Federal statutes that do govern the collection of 
     information about children or students. There are a variety 
     of means and sources that marketers and list brokers can and 
     do use to compile names, addresses, and other data about 
     children.

     SEC. 3. RESTRICTION ON SALE OR PURCHASE OF CHILDREN'S 
                   PERSONAL INFORMATION.

       (a) In General.--It is unlawful--
       (1) to sell personal information about an individual the 
     seller knows to be a child;
       (2) to purchase personal information about an individual 
     identified by the seller as a child, for the purpose of 
     marketing to that child; or
       (3) for a person who has provided a certification pursuant 
     to subsection (b)(2), in connection with the purchase of 
     personal information about an individual identified by the 
     seller as a child, to engage in any practice that violates 
     the terms of the certification.
       (b) Exceptions.--
       (1) Parental consent.--Subsection (a) does not apply to any 
     sale, purchase, or use of personal information about a child 
     if the parent of the child has granted express consent to 
     that sale, purchase, or use of the information.
       (2) Certification.--Subsection (a)(1) shall not apply to 
     the sale of personal information about a child if the 
     purchaser certifies to the seller, electronically or in 
     writing, before the sale is completed--
       (A) the purpose for which the information will be used by 
     the purchaser; and
       (B) that the purchaser will neither--
       (i) use the information for marketing that child; nor
       (ii) permit the information to be used by others for the 
     purpose of marketing to that child.

     SEC. 4. ADMINISTRATION AND ENFORCEMENT.

       (a) In General.--Except as provided in subsection (b), this 
     Act shall be enforced by the Commission as if the violation 
     of section 3 of this Act were an unfair or deceptive act or 
     practice proscribed under section 18(a)(1)(B) of the Federal 
     Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
       (b) Enforcement by Certain Other Agencies.--Compliance with 
     this Act shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25A of the 
     Federal Reserve Act (12 U.S.C. 601 and 611), by the Board; 
     and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.) by 
     the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (b) of its 
     powers under any Act referred to in that subsection, a 
     violation of section 3 of this Act I is deemed to be a 
     violation of a requirement imposed under that Act. In 
     addition to its powers under any provision of law 
     specifically referred to in subsection (b), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under section 3 of this Act, any other authority conferred on 
     it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating section 3 of this Act in 
     the same manner, by the same means, and with the same 
     jurisdiction, powers, and duties as though all applicable 
     terms and provisions of the Federal Trade Commission Act (15 
     U.S.C. 41 et seq.) were incorporated into and made a part of 
     this Act. Any entity that violates any provision of that 
     section is subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of that 
     section.
       (f) Preservation of Commission Authority.--Nothing 
     contained in this section shall be construed to limit the 
     authority of the Commission under any other provision of law.

     SEC. 5. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil Actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that section 3 of this Act, the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction--
       (A) to enjoin that practice;
       (B) to enforce compliance with the rule;
       (C) to obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) to obtain such other relief as the court may consider 
     to be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exception.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.

[[Page 3215]]

       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this subtitle shall 
     be construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of section 2 of this Act, no State may, during the 
     pendency of that action, institute an action under subsection 
     (a) against any defendant named in the complaint in that 
     action for violation of that section.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 6. DEFINITIONS.

       In this Act:
       (1) Child.--The term ``child'' means an individual under 
     the age of 16.
       (2) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (3) Express consent.--
       (A) In general.--The term ``express consent'' means an 
     affirmative indication of permission in writing or electronic 
     form. The term ``express consent'' does not include consent 
     inferred from a failure to indicate affirmatively that 
     consent is denied or withheld.
       (B) Prerequisites.--Express consent is not valid unless--
       (i) before granting the consent the individual granting the 
     consent was informed of the purpose for which the information 
     would be sold, purchased, or used; and
       (ii) consent was not granted as a condition for making a 
     product, service, or warranty available to the individual or 
     the child to which the information pertains.
       (4) Marketing.--The term ``marketing'' means making a 
     communication to encourage the purchase or use of a 
     commercial product or service. For purposes of this 
     paragraph, a product or service shall be considered to be 
     commercial if some or all of the proceeds from the sale inure 
     to the benefit of an enterprise conducted for profit.
       (5) Parent.--The term ``parent'' includes a legal guardian.
       (6) Personal information.--The term ``personal 
     information'' means identifiable information about an 
     individual, including--
       (A) a name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address or online username;
       (D) a telephone number;
       (E) a Social Security number; or
       (F) any other information that permits a specific 
     individual to be identified.
       (7) Purchase; sell; sale.--In section 3, the terms 
     ``purchase'', ``sell'', and ``sale'' include the purchase and 
     sale of the right to use personal information, without regard 
     to whether--
       (A) the right is limited or unlimited;
       (B) the transaction is characterized as a purchase, sale, 
     lease, or otherwise; and
       (C) the consideration for the transaction is monetary, 
     goods, or services.

     SEC. 7. EFFECTIVE DATE.

       This Act takes effect 6 months after the date of enactment.

  Mr. STEVENS. Mr. President, I am proud to introduce, with my 
colleague from Oregon, a bill which protects children from being 
strategically targeted by commercial advertising.
  I was shocked to learn that presently there is no law that restricts 
companies from purchasing databases which contain information about 
children.
  In fact, websites have been brought to my attention that actually 
sell lists of children as young as pre-school.
  The thought of companies acquiring lists of information about kids 
that are barely past the toddler stage is appalling.
  These companies actually market that the lists can be selected and 
purchased by sorting according to different age groups. They suggest 
possible commercial uses for the lists such as for magazines, amusement 
parks, child care services, etc.
  One of the websites even points out that many high school students 
have their own credit cards or have use of their parents' credit cards. 
The website then suggests that companies could buy these lists so they 
could market to children various products such as clothing, computers, 
etc.
  The bill that we are introducing today will deter entities from 
selling these lists of personal information about children to be used 
for commercial purposes.
  The bill will prohibit anyone from selling or buying personal 
information about a person who is known to be under 16 years of age 
unless: 1. The parent has given express consent; or 2. The buyer 
certifies that the information is being obtained for strictly non-
marketing purposes. If that is the case, they can't subsequently sell 
the information to a commercial marketing group.
  The enforcement will be by the Federal Trade Commission and the 50 
attorney generals.
  I look forward to working with my colleague from Oregon and others on 
this bill.
                                 ______
                                 
      By Mrs. BOXER:
  S. 2161. A bill to amend title 5, United States Code, to establish a 
national health program administered by the Office of Personnel 
Management to offer Federal employee health benefits plans to 
individuals who are not Federal employees, and for other purposes; to 
the Committee on Finance.
  Mrs. BOXER. Mr. President, over 43 million Americans are uninsured, 
which means that one in every 7 Americans has no health insurance. It 
is not surprising that two-thirds of the uninsured are low-income. What 
may be surprising to some is that most of the uninsured--8 in 10--come 
from working families. Most of these uninsured are not eligible for 
public health insurance programs, such as Medicaid or SCHIP.
  Lack of health insurance too often means poorer health care. The 
uninsured receive less preventive care, are diagnosed at more advanced 
disease stages, and once diagnosed, tend to receive less therapeutic 
care. The Institute of Medicine estimates that 18,000 Americans die 
prematurely each year due to the effects of a lack of health insurance.
  The plight of the uninsured has consequences that reach beyond the 
uninsured. In 2001, the uninsured amounted to about $35 billion in 
uncompensated care. Those costs are borne by all of us through higher 
health care costs and government-funded reimbursements.
  Furthermore, the Institute of Medicine suggests that the reduced 
health and higher mortality of the uninsured costs society between $65 
billion and $130 billion a year, and concludes that public programs are 
likely to have higher budgetary costs than they would if everyone under 
65 had health insurance. In addition, the Urban Institute recently 
found that if people were covered by insurance, there could be savings 
to Medicare and Medicaid of $10 billion a year.
  Even those who have health insurance find it extremely expensive and 
of poor quality. It is time to expand access to affordable, quality 
health insurance for all Americans.
  The bill I am introducing today, the ``Universal Access to Affordable 
Insurance for All Americans Act of 2004,'' is a partial solution that 
will give Americans access to the same health insurance program as 
Members of Congress.
  It establishes a separate risk pool within the Federal Employee 
Health Benefit Program for individuals who wish to purchase individual 
or family coverage. The Office of Personnel Management would make at 
least one private health insurance plan available through the FEHBP to 
non-Federal employees. While individuals will have access to the same 
program as Federal employees, the entry of others into FEHBP will not 
affect Federal employees at all.
  My bill also makes this insurance affordable by establishing 
advanceable, refundable tax credits for certain low and middle-income 
participants. For those below poverty, the credit is 100 percent. The 
credit is gradually decreased up to 400 percent of poverty. So a family 
of 4 making $18,850 or less would receive a 100 percent credit. A 
family of 4 making $75,000 would receive a 30 percent credit.
  We need to begin implementing measures to provide all Americans with 
access to affordable health coverage. My bill is a step toward this 
goal.
                                 ______
                                 
      By Mr. CRAPO:

[[Page 3216]]

  S. 2162. A bill to implement the Inland Northwest Economic Adjustment 
Strategy, and for other purposes; to the Committee on Environment and 
Public Works.
  Mr. CRAPO. Mr. President, I rise today to introduce legislation 
establishing the Inland Northwest Economic Adjustment Strategy (INEAS), 
a blueprint to address severe economic distress in the Inland Northwest 
region.
  In recent years, communities throughout the Nation have confronted 
challenging economic times. However, as most begin to embark on the 
path towards economic recovery, the natural resource-based economies of 
the Inland Northwest remain in ruins.
  Founded on the industries of forestry, mining, agriculture, 
commercial fisheries and other natural resource based commodities, the 
economies of Oregon, Washington, Montana, and my home State of Idaho 
once served a critical role in our Nation's economic development. 
However, modern Federal natural resource policies, regulations, and 
trade agreements have devastated this once thriving region of the 
country. For example, between 1989 and 2003, 123 mills were closed and 
an additional 3,816 million board feet in timber production was lost, 
costing the region roughly 24,000 jobs. The numerous counties where 
more than 75 percent of land is owned by the Federal Government, will 
never recover from the 89 percent decline in federal timber harvests 
seen over the past decade. Clearly, as Federal policy continues to 
contribute to the demise of this region's economy, we all have a 
responsibility to support alternative economic opportunities for 
growth.
  The Inland Northwest Economic Adjustment Strategy is envisioned as 
temporary regional assistance, designed to address severe economic 
distress in 137 counties and 23 tribes across these four Northwestern 
States. With a strong focus on business development, INEAS will seek to 
increase good paying jobs, global competitiveness, community 
sustainability, and quality of life for these devastated economies. 
Along with the assistance of this Federal economic adjustment package, 
funding from States, tribes, and private partners will be brought 
together to support regional business clusters, entrepreneurial 
development, technology commercialization, and community sustainability 
for those whose way of life has been forever changed, in part by 
Federal policies and regulations.
  This model has served many other regions of the Nation to restore 
economic viability. This plan to assist the Inland Northwest will help 
reaffirm our commitment to ensuring the viability of the region matches 
its beauty and potential, as well as the entrepreneurial spirit of its 
people.
  I invite my colleagues to join me in supporting economic recovery for 
these crippled Northwest communities through this legislation. 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. 2162

       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.

       This Act may be cited as the ``Inland Northwest 
     Revitalization Act''.
       (a) Short Title.--This Act may be cited as the ``Inland 
     Northwest Revitalization Act''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.

             TITLE I--INLAND NORTHWEST REGIONAL PARTNERSHIP

Sec. 101. Establishment, membership, and employees.
Sec. 102. Decisions.
Sec. 103. Functions.
Sec. 104.Administrative powers and expenses.
Sec. 105. Meetings.
Sec. 106. Public participation.
Sec. 107. Annual report.

                     TITLE II--FINANCIAL ASSISTANCE

Sec. 201. Grants and other assistance.
Sec. 202. Approval of projects.

 TITLE III--INLAND NORTHWEST REGIONAL PARTNERSHIP REGIONAL INITIATIVES

Sec. 301. Inland Northwest business cluster initiative.
Sec. 302. Entrepreneurial development initiative.
Sec. 303. Technology commercialization initiative.
Sec. 304. Community readiness initiative.
Sec. 305. Regional workforce development.

                        TITLE IV--ADMINISTRATION

Sec. 401. Consent of States.
Sec. 402. Program implementation.
Sec. 403. Program development criteria.
Sec. 404.Regional development planning process.
Sec. 405. Distressed and economically strong counties.

                         TITLE V--MISCELLANEOUS

Sec. 501. Authorization of appropriations.
Sec. 502. Cessation of effectiveness.

     SEC. 2. PURPOSES.

       The purposes of this Act are--
       (1) to assist the Inland Northwest Region in--
       (A) making the industrial and commercial resources of the 
     Region more competitive in national and world markets;
       (B) generating a diversified regional economy;
       (C) developing the industry of the Region;
       (D) building entrepreneurial communities;
       (E) providing the infrastructure necessary for economic and 
     human resource development; and
       (F) addressing problems unique to the Region;
       (2) to provide a framework for coordinating Federal, State, 
     tribal, and local initiatives to respond to the economic 
     competitiveness challenges in the Region by--
       (A) adapting and applying new technologies for businesses 
     in the Region;
       (B) improving the access of those businesses to the 
     technical and financial resources necessary to development of 
     the businesses;
       (C) improving the skills of the workforce of the Region;
       (D) using the actions of the Healthy Forests Restoration 
     Act of 2003 (Public Law 108-148) to sustain rural communities 
     and local economies of the Region in addition to forest 
     ecosystems;
       (E) anticipating the effects of alternative energy policies 
     and practices; and
       (F) implementing programs and projects carried out in the 
     Region by Federal, State, tribal, and local governmental 
     agencies so as to better meet the special problems generated 
     in the Region by the natural resource and federal land 
     management policies of the United States;
       (3) as the Region obtains necessary physical and 
     transportation facilities and develops human resources, to 
     assist the Region in generating a diversified industry so 
     that the Region will be able to support itself through the 
     workings of a strengthened free enterprise economy; and
       (4) to address the needs of severely and persistently 
     distressed areas of the Region, and to focus special 
     attention on the areas of greatest need, so as to provide a 
     fairer opportunity for the people of the Region to share the 
     quality of life generally enjoyed by citizens across the 
     United States.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Cooperative extension service.--The term ``Cooperative 
     Extension Service'' means the Cooperative State Research, 
     Education, and Extension Service of the Department of 
     Agriculture.
       (2) Local development district.--The term ``local 
     development district'' means an entity located in the Region 
     that is an economic development district that is--
       (A) 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;
       (B) governed by a policy board with at least a simple 
     majority of members consisting of--
       (i) elected officials; and
       (ii) designees or employees of a general purpose unit of 
     local government that have been appointed to represent the 
     unit of local government; and
       (C) 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.
       (3) Manufacturing extension partnership.--The term 
     ``manufacturing extension partnership'' means a partnership 
     of that name administered by the National Institute of 
     Standards and Technology of the Department of Commerce.
       (4) Partnership.--The term ``Partnership'' means the Inland 
     Northwest Regional Partnership established by section 101(a).
       (5) Region.--The term ``Region'' means the area of the 
     inland northwestern United States consisting of--
       (A) all counties in the State of Idaho (including any 
     political subdivision and tribal nations located within such 
     a county);
       (B) all counties in the State of Montana (including any 
     political subdivision and tribal nations located within such 
     a county);
       (C) in the State of Washington, the counties of Adams, 
     Asotin, Benton, Chelan, Columbia, Douglas, Ferry, Franklin, 
     Garfield,

[[Page 3217]]

     Grant, Kittitas, Klickitat, Lincoln, Okanogan, Pend Oreille, 
     Skamania, Spokane, Stevens, Walla Walla, Whitman, and Yakima; 
     and
       (D) in the State of Oregon, the counties of Baker, Crook, 
     Deschutes, Gilliam, Grant, Harney, Hood River, Jefferson, 
     Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, 
     Wallowa, Wasco, and Wheeler.
       (6) Resource conservation and development area.--The term 
     ``resource conservation and development area'' means a 
     designated area (as defined in section 1528(4) of the 
     Agriculture and Food Act of 1981 (16 U.S.C. 3451(4)).
       (7) Small business development center.--The term ``small 
     business development center'' means any of the approximately 
     1,000 small business development centers that is--
       (A) established by the Small Business Administration for 
     the purpose of providing management and technical assistance 
     to small businesses; and
       (B) administered by the Office of Small Business 
     Development Centers.
       (8) State.--The term ``State'' means the State of Idaho, 
     Montana, Oregon, or Washington.
       (9) State rural development council.--The term ``State 
     rural development council'' has the meaning given the term in 
     section 378(a)(4) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2008m(a)(4)).
             TITLE I--INLAND NORTHWEST REGIONAL PARTNERSHIP

     SEC. 101. ESTABLISHMENT, MEMBERSHIP, AND EMPLOYEES.

       (a) Establishment.--There is established an Inland 
     Northwest Regional Partnership.
       (b) Membership.--The Partnership shall be comprised of 40 
     members, including, for each State--
       (1) 3 representatives designated by the Governor of the 
     State;
       (2) the Director for Rural Development of the Department of 
     Agriculture for the State;
       (3) the representative of the Economic Development 
     Administration of the Department of Commerce for the State;
       (4) the leader of at least 1 Indian tribe located in the 
     State, nominated by an Indian tribe in the State and 
     appointed by the Affiliated Tribes of Northwest Indians;
       (5) the mayor of at least 1 city in each State, selected by 
     the respective State municipal associations;
       (6) a county commissioner from each State, selected by the 
     respective county associations;
       (7) an industry leader from the State, nominated by 
     industry associations and appointed by the Governor of the 
     State; and
       (8) a small business leader from the State, nominated by a 
     chamber of commerce in the State and appointed by the 
     Governor of the State.
       (c) Cochairpersons and Executive Committee.--
       (1) Cochairpersons.--The Partnership shall select from 
     among the members of the Partnership the following 5 
     Cochairpersons:
       (A) A State Cochairperson selected from among the 12 
     members of the Partnership that represent State government.
       (B) A Federal Cochairperson selected from among the members 
     of the Partnership that are--
       (i) State directors of rural development of the Department 
     of Agriculture; or
       (ii) economic development representatives for each State 
     under the Economic Development Administration of the 
     Department of Commerce.
       (C) A tribal Cochairperson selected from among the members 
     of the Partnership that are leaders of Indian tribes.
       (D) A local Cochairperson selected from among the members 
     of the Partnership that are--
       (i) the mayors of a city in a State; and
       (ii) county commissioners from a State.
       (E) A private Cochairperson selected from among the members 
     of the Partnership that are--
       (i) industry leaders from a State; or
       (ii) small business leaders from a State.
       (2) Executive committee.--
       (A) In general.--The 5 Cochairpersons of the Partnership 
     shall form the Executive Committee of the Partnership.
       (B) Chairperson.--The Executive Committee of the 
     Partnership shall select a Chairperson from the members of 
     the Executive Committee.
       (C) Powers and duties.--The powers and duties of the 
     Executive Committee shall be established by policies 
     developed and adopted by the Partnership.
       (d) Delegation.--A power or responsibility of the 
     Partnership specified in section 102(c), and a vote of any 
     member of the Partnership, may not be delegated to an 
     individual who is--
       (1) not a member of the Partnership; or
       (2) not entitled to vote in Partnership meetings.
       (e) Status of Personnel.--
       (1) In general.--No employee of the Partnership shall be 
     considered to be a Federal employee for any purpose.
       (2) Detailed personnel.--A Federal employee detailed under 
     subsection (a)(3) or (b)(1) of section 106 shall not be 
     considered to be an employee of the Partnership.

     SEC. 102. DECISIONS.

       (a) Requirements for Approval.--A decision by the 
     Partnership shall require the affirmative vote of a majority 
     of the members present.
       (b) Consultation.--The Federal Cochairperson, to the 
     maximum extent practicable, shall consult with the Federal 
     departments and agencies having an interest in the subject 
     matter of matters before the Partnership.
       (c) Decisions Requiring Quorum of Members.--A quorum of 21 
     members is required for the Partnership to decide matters 
     involving--
       (1) policy of the Partnership;
       (2) approval of development plans or strategy statements;
       (3) modification or revision of the Partnership Code;
       (4) allocation of amounts among the States;
       (5) designation of--
       (A) a distressed county; or
       (B) an economically strong county; or
       (6) approval of project and grant proposals.

     SEC. 103. FUNCTIONS.

       (a) In General.--In carrying out this title, the 
     Partnership shall--
       (1) coordinate, implement, and monitor--
       (A) the strategic regional initiative described in sections 
     301 through 305; and
       (B) projects developed by the Partnership;
       (2) receive and disburse funds from Federal, State, tribal, 
     and private sources designated for Inland Northwest economic 
     adjustment strategy projects and programs;
       (3) conduct and sponsor investigations, research, and 
     studies (including an inventory and analysis of the resources 
     of the Region) and, in cooperation with Federal, State, 
     tribal, and local agencies, sponsor demonstration projects to 
     foster regional productivity and growth;
       (4) review and study, in cooperation with the agency 
     involved, Federal, State, tribal, and local public and 
     private programs and, as appropriate, recommend modifications 
     which will increase the effectiveness of those programs in 
     the Region;
       (5) encourage private investment in industrial, commercial, 
     and recreational projects;
       (6) serve as a focal point and coordinating unit for 
     programs in the Region;
       (7) seek to coordinate the economic development activities 
     of, and the use of economic development resources by, Federal 
     agencies in the Region; and
       (8) carry out such other projects and activities as are 
     appropriate to promote regional, interstate, and local 
     economic development.
       (b) Identification of Needs and Goals of Subregional 
     Areas.--In carrying out the functions in subsection (a), the 
     Partnership shall identify the characteristics of, and may 
     distinguish between the needs and goals of, appropriate 
     subregional areas.

     SEC. 104. ADMINISTRATIVE POWERS AND EXPENSES.

       (a) Powers.--To carry out its duties under this title, the 
     Partnership may--
       (1) establish bylaws for the Partnership;
       (2) appoint and compensate necessary personnel for the 
     Partnership;
       (3) enter into contracts to carry out the responsibilities 
     of the Partnership;
       (4) subject to section 101(e), request the head of any 
     Federal department or agency to detail to temporary duty with 
     the Partnership any personnel within the administrative 
     jurisdiction of the head of the department or agency that the 
     Partnership may need for carrying out its functions, provided 
     that each detail is without loss of seniority, pay, or other 
     employee status;
       (5) arrange for the services of personnel from any State or 
     local government, subdivision or agency of a State or local 
     government, or intergovernmental agency;
       (6) accept, use, and dispose of gifts or donations of 
     services or any property; and
       (7) take such other actions and incur such other expenses 
     as may be appropriate.
       (b) Authorizations.--
       (1) Detail of employees.--Subject to section 101(e), the 
     head of a Federal department or agency may detail personnel 
     under subsection (a)(2).
       (2) Enter into and perform transactions.--A department, 
     agency, or instrumentality of the Government may enter into 
     and perform a contract, lease, cooperative agreement, or 
     other transaction under subsection (a).
       (c) Expenses.--
       (1) In general.--Subject to paragraph (3), administrative 
     expenses of the Partnership shall be shared equally by the 
     Federal Government, participating Indian tribes, and the 
     States in the Region.
       (2) Amount paid by each state.--The Partnership shall 
     determine the amount to be paid by each State.
       (3) Delinquent states.--During the period that a State or 
     Indian tribe is delinquent in payment of the share of that 
     State or Indian tribe of administrative expenses--
       (A) assistance authorized by this title shall not be 
     furnished to the delinquent State or Indian tribe, including 
     any political subdivision or any resident of that State; and
       (B) a State or tribal member of the Partnership shall not 
     participate or vote in any decision by the Partnership.

     SEC. 105. MEETINGS.

       The Partnership shall conduct at least 1 meeting each year 
     with at least a majority of the members present.

[[Page 3218]]

     SEC. 106. PUBLIC PARTICIPATION.

       (a) In General.--The Partnership shall provide for and 
     encourage public participation in the development, revision, 
     and implementation of all plans and programs under this title 
     by the Partnership, any State, or any local development 
     district.
       (b) Guidelines.--The Partnership shall develop and publish 
     minimum guidelines for public participation, including public 
     hearings.

     SEC. 107. ANNUAL REPORT.

       Not later than 180 days after the end of each fiscal year, 
     the Partnership shall submit to the Governor of each State 
     and to the President, for transmittal to Congress, a report 
     describing the activities carried out under this title during 
     the fiscal year.
                     TITLE II--FINANCIAL ASSISTANCE

     SEC. 201. GRANTS AND OTHER ASSISTANCE.

       (a) Authorization to Make Grants.--
       (1) In general.--The Partnership may make grants to 
     qualified organizations within the Region for the purposes of 
     implementing an Inland Northwest economic adjustment 
     strategy.
       (2) Limitation on available amounts.--
       (A) In general.--Except as provided in subparagraph (B), 
     not more than 50 percent (or, in the case of a project to be 
     carried out in a county for which a distressed county 
     designation is in effect under section 405, 80 percent) of 
     the cost of any activity eligible for financial assistance 
     under this section may be provided from amounts appropriated 
     to carry out this title.
       (B) Discretionary grants.--
       (i) In general.--Discretionary grants made by the 
     Partnership to implement significant regional initiatives, to 
     take advantage of special development opportunities, or to 
     respond to emergency economic distress in the Region may be 
     made without regard to the percentage limitations specified 
     in subparagraph (A).
       (ii) Limitation on aggregate amount.--For each fiscal year, 
     the aggregate amount of discretionary grants under clause (i) 
     shall not be more than 50 percent of the amount appropriated 
     under section 503 for the fiscal year.
       (3) Sources of grants.--Grant amounts may be provided 
     entirely from appropriations to carry out this section, in 
     combination with amounts available under other Federal or 
     Federal grant programs, or from any other source.
       (4) Federal share.--Notwithstanding any provision of law 
     limiting the Federal share in any other Federal program, 
     amounts made available to carry out this section may be used 
     to increase that Federal share, as the Partnership determines 
     to be appropriate.
       (b) Records.--
       (1) Partnership.--
       (A) In general.--The Partnership shall--
       (i) maintain accurate and complete records of transactions 
     and activities financed with Federal amounts; and
       (ii) include a summary of those transactions and activities 
     in the annual report under section 107.
       (B) Audit.--The records described in subparagraph (A)(i) 
     shall be available for audit by the President and the 
     Comptroller General.
       (2) Recipients of federal assistance.--
       (A) In general.--A recipient of Federal assistance under 
     this section, as required by the Partnership, shall--
       (i) maintain accurate and complete records of transactions 
     and activities financed with Federal amounts; and
       (ii) report to the Partnership on the transactions and 
     activities.
       (B) Audit.--The records described in subparagraph (A)(i) 
     shall be available for audit by the President, the 
     Comptroller General, and the Partnership.

     SEC. 202. APPROVAL OF PROJECTS.

       (a) In General.--An application for a grant or for other 
     assistance for a specific project under this title shall be 
     made through a member of the Partnership representing the 
     applicant.
       (b) Evaluation.--
       (1) In general.--The member shall evaluate the application 
     for approval in accordance with paragraph (2).
       (2) Requirements for approval.--For an application to be 
     approved, the member shall certify, and the executive 
     committee shall determine, that the application--
       (A) implements the Partnership-approved regional 
     development strategy;
       (B) adequately ensures that the project will be properly 
     administered, operated, and maintained and that project 
     results will be measured; and
       (C) otherwise meets the requirements for assistance under 
     this title.
 TITLE III--INLAND NORTHWEST REGIONAL PARTNERSHIP REGIONAL INITIATIVES

     SEC. 301. INLAND NORTHWEST BUSINESS CLUSTER INITIATIVE.

       The Partnership may provide technical assistance, provide 
     grants, enter into contracts, or otherwise provide amounts to 
     persons or entities in the Region for business cluster 
     development efforts that--
       (1) increase the competitiveness and sustainability of 
     clusters of related businesses; and
       (2) bring together groups of related business leaders, 
     industry experts, and related stakeholders and technical 
     assistance providers to develop and implement cluster 
     developments and projects.

     SEC. 302. ENTREPRENEURIAL DEVELOPMENT INITIATIVE.

       The Partnership may provide technical assistance, provide 
     grants, enter into contracts, or otherwise provide amounts to 
     individuals or entities in the Region for entrepreneurial 
     development efforts that--
       (1) organize, educate, and direct local communities in the 
     Region to identify obstacles to the competitiveness and 
     growth of existing businesses;
       (2) assist communities in addressing those obstacles in 
     business retention and expansion programs with specific 
     implementation actions;
       (3) promote and encourage the growth of entrepreneurial 
     activity in the Region;
       (4) bring together entrepreneurship practitioners, academic 
     experts, business leaders, and technical assistance providers 
     to identify, develop and implement a prioritized action plan 
     to encourage entrepreneurship across the Region;
       (5) form a working network of business incubator managers 
     and stakeholders, academic experts, business leaders, and 
     technical assistance providers;
       (6) increase affordable access to advanced 
     telecommunications, entrepreneurship, and information 
     technologies or applications in the Region;
       (7) provide education and training in the use of 
     telecommunications and technology; or
       (8) develop programs to increase the readiness of industry 
     groups and businesses in the Region to engage in electronic 
     commerce.

     SEC. 303. TECHNOLOGY COMMERCIALIZATION INITIATIVE.

       The Partnership may provide technical assistance, provide 
     grants, enter into contracts, or otherwise provide amounts to 
     individuals and entities in the Region for technology 
     commercialization efforts that--
       (1) increase the transfer of technology from universities, 
     national laboratories, and other technology centers to 
     businesses, and foster technology business development, in 
     the Region;
       (2) create a network of universities, national 
     laboratories, business leaders, industry experts, and States; 
     and
       (3) implement strategies and projects that promote the 
     growth and development of technology-related business through 
     technology transfer and related activities.

     SEC. 304. COMMUNITY READINESS INITIATIVE.

       The Partnership may provide technical assistance, provide 
     grants, enter into contracts, or otherwise provide amounts to 
     persons or entities in the Region for capacity-building 
     efforts that--
       (1) increase the competitiveness and sustainability of 
     local communities;
       (2) bring together rural capacity-building practitioners, 
     academic experts, related stakeholders, and technical 
     assistance providers; and
       (3) implement a system of providing assistance for basic 
     community strategic planning, delivering more specialized 
     community assessments, and delivering training to communities 
     across the Region, using existing service providers to the 
     maximum extent practicable.

     SEC. 305. REGIONAL WORKFORCE DEVELOPMENT.

       (a) Definition of Eligible Entity.--In this section, the 
     term ``eligible entity'' means a consortium that--
       (1) is established to serve 1 or more industries in a 
     specified geographic area; and
       (2) consists of representatives of--
       (A) businesses (or a nonprofit organization that represents 
     businesses);
       (B) labor organizations;
       (C) State and local governments; or
       (D) educational institutions.
       (b) Projects To Be Assisted.--The Partnership may provide 
     technical assistance, provide grants, enter into contracts, 
     or otherwise provide amounts to eligible entities in the 
     Region for projects to improve the job skills of workers for 
     a specified industry.
                        TITLE IV--ADMINISTRATION

     SEC. 401. CONSENT OF STATES.

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

     SEC. 402. PROGRAM IMPLEMENTATION.

       (a) Requirements.--A program, project, or activity 
     authorized under this chapter shall not be implemented 
     until--
       (1) the responsible Federal official determines that--
       (A) applications and plans relating to the program, 
     project, or activity are not incompatible with this title; 
     and
       (B) objectives of Federal laws that the official 
     administers are not inconsistent with this title; and
       (2) the Partnership has approved the program, project, or 
     activity and has determined that the program, project, or 
     activity--
       (A) meets the applicable criteria under section 403 and the 
     requirements of the development planning process under 
     section 404; and
       (B) will contribute to the development of the Region.
       (b) Decision Is Controlling.--A decision under subsection 
     (a)(2) shall apply to, and be accepted by, Federal agencies.

     SEC. 403. PROGRAM DEVELOPMENT CRITERIA.

       (a) Factors To Be Considered.--In considering programs, 
     projects, and activities to be

[[Page 3219]]

     provided assistance under this title, and in establishing a 
     priority ranking of the requests for assistance presented to 
     the Partnership, the Partnership shall follow procedures that 
     will ensure consideration of--
       (1) the relationship of the program, project, or activity 
     or class of programs, projects, or activities to overall 
     regional development, including the location of the program, 
     project, or activity in a severely and persistently 
     distressed county or area;
       (2) the population and area to be served by the program, 
     project, or activity or class of programs, projects, or 
     activities, including the per capita market income and the 
     unemployment rates in the area;
       (3) the relative financial resources available to the State 
     or political subdivisions or instrumentalities of the State 
     that seek to undertake the program, project, or activity;
       (4) the importance of the program, project, or activity or 
     class of programs, projects, or activities in relation to 
     other programs, projects, or activities or classes of 
     programs, projects, or activities that may be in competition 
     for the same amounts;
       (5) the prospects that the program, project, or activity 
     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 program, 
     project, or activity; and
       (6) the extent to which the program, project, or activity 
     design provides for detailed outcome measurements by which 
     grant expenditures may be evaluated.
       (b) Limitation on Use.--Financial assistance made available 
     under this title shall not be used to assist establishments 
     relocating from 1 area to another.
       (c) Determination Required Before Amounts May Be 
     Provided.--Amounts may be provided for programs, projects, or 
     activities in a State under this title only if the 
     Partnership determines that the level of Federal and State 
     financial assistance under other laws for the same type of 
     programs, projects, or activities in that part of the State 
     within the Region will not be diminished in order to 
     substitute amounts authorized by this title.
       (d) Minimum Amount of Assistance to Distressed Counties and 
     Areas.--For each fiscal year, not less than 50 percent of the 
     amount of grant expenditures approved by the Partnership 
     shall support activities or projects that benefit severely 
     and persistently distressed counties and areas.

     SEC. 404. REGIONAL DEVELOPMENT PLANNING PROCESS.

       (a) Regional Planning and Coordination.--
       (1) In general.--In accordance with such guidelines as 
     shall be established by the Partnership, each State and 
     tribal member shall be encouraged to submit to the 
     Partnership a development plan for the 1 or more areas of the 
     State, or area under the jurisdiction of the tribal member, 
     within the Region.
       (2) Requirements.--The plan shall--
       (A) reflect the goals, objectives, and priorities 
     identified in the regional development plan and in any 
     subregional development plan that may be approved for the 
     subregion of which the State is a part;
       (B) describe the goals, objectives, and priorities of the 
     State for the Region, as established by the Governor, and 
     identify the needs on which the goals, objectives, and 
     priorities are based; and
       (C) describe the development strategies for achieving the 
     goals, objectives, and priorities (including availability of 
     funding sources and recommendations for specific projects to 
     receive assistance under this title).
       (b) Region-Wide Action Programs.--
       (1) In general.--The Partnership shall encourage the 
     preparation and execution of area-wide action programs.
       (2) Existing plans.--The action programs shall make 
     appropriate use of existing plans affecting the area.
       (c) Federal Responsibilities.--To the maximum extent 
     practicable, Federal departments, agencies, and 
     instrumentalities undertaking or providing financial 
     assistance for programs, projects, or activities in the 
     Region shall--
       (1) take into account the policies, goals, and objectives 
     the Partnership and member States of the Partnership 
     established under this Act; and
       (2) recognize development strategies for the Region that 
     are approved by the Partnership as satisfying requirements 
     for overall economic development planning under the programs, 
     projects, or activities.

     SEC. 405. DISTRESSED AND ECONOMICALLY STRONG COUNTIES.

       (a) Designations.--
       (1) In general.--The Partnership, in accordance with such 
     criteria as the Partnership may establish, shall annually--
       (A) designate as ``distressed counties'' those counties in 
     the Region that are the most severely and persistently 
     distressed; and
       (B) designate 2 categories of economically strong counties, 
     consisting of--
       (i) ``competitive counties'', which shall be those counties 
     in the Region that are approaching economic parity with the 
     rest of the United States; and
       (ii) ``attainment counties'', which shall be those counties 
     in the Region that have attained or exceeded economic parity 
     with the rest of the United States.
       (2) Annual review of designations.--The Partnership shall--
       (A) conduct an annual review of each designation of a 
     county under paragraph (1) to determine if the county still 
     meets the criteria for the designation; and
       (B) renew the designation for another 1-year period only if 
     the county still meets the criteria.
       (b) Distressed Counties.--In developing and implementing 
     programs, projects, and activities under this title, and in 
     allocating amounts made available to carry out this title, 
     the Partnership shall give special consideration to the needs 
     of counties for which a distressed county designation is in 
     effect under this section.
       (c) Economically Strong Counties.--
       (1) Competitive counties.--Except as provided in paragraphs 
     (3) and (4), assistance under this title for a program, 
     project, or activity that is carried out in a county for 
     which a competitive county designation is in effect under 
     this section shall not be more than 30 percent of the cost of 
     the program, project, or activity.
       (2) Attainment counties.--Except as provided in paragraphs 
     (3) and (4), amounts may not be provided under this title for 
     a program, project, or activity that is carried out in a 
     county for which an attainment county designation is in 
     effect under this section.
       (3) Exceptions.--Paragraphs (1) and (2) do not apply to a 
     multicounty project that is carried out in at least 2 
     counties designated under this section, if--
       (A) at least 1 of the participating counties is designated 
     as a distressed county under this section; and
       (B) the project will be of substantial direct benefit to at 
     least 1 distressed county.
       (4) Waiver.--The Partnership may waive the requirements of 
     paragraphs (1) and (2) for a program, project, or activity if 
     the recipient of assistance for the program, project, or 
     activity demonstrates the existence of any of the following:
       (A) A significant area of distress in the part of the 
     county in which the program, project, or activity is carried 
     out.
       (B) A significant potential benefit from the program, 
     project, or activity in at least 1 area of the Region outside 
     the designated county.
                         TITLE V--MISCELLANEOUS

     SEC. 501. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     such sums as are necessary to carry out this Act.
       (b) Availability.--Amounts made available under subsection 
     (a) shall remain available until expended.

     SEC. 502. CESSATION OF EFFECTIVENESS.

       This Act (except subsections (a)(1) and (b) of section 102) 
     ceases to be effective October 1, 2012.

                          ____________________