[Senate Report 105-332]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 575
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-332
_______________________________________________________________________


 
         ECONOMIC DEVELOPMENT ADMINISTRATION REFORM ACT OF 1998

                                _______
                                

               September 14, 1998.--Ordered to be printed

_______________________________________________________________________


    Mr. Chafee, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 2364]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred the bill (S. 2364) to reauthorize and make reforms to 
programs authorized by the Public Works and Economic 
Development Act of 1965, having considered the same, reports 
favorably thereon and recommends that the bill do pass.

                           General Statement

    S. 2364 provides for the reauthorization and reform of the 
Economic Development Administration (EDA). The bill replaces 
the Public Works and Development Act of 1965 (PWEDA) with a new 
title that revises and updates the Act to better reflect EDA's 
mission and better target EDA resources to economically 
distressed communities.

                               Background

    EDA and its mission were created by Congress by the 
enactment of the Public Works and Economic Development Act of 
1965. PWEDA established a framework amended several times since 
for Federal assistance for economic development efforts that, 
according to the congressional findings listed in PWEDA, were 
designed to ``help areas and regions of substantial and 
persistent unemployment and underemployment to take effective 
steps in planning and financing their public works and economic 
development,'' and ``enable such areas to help themselves 
achieve lasting improvement and enhance the domestic prosperity 
by the establishment of stable and diversified local economic 
and improved local conditions.''
    To meet these objectives, the agency provides assistance to 
distressed States and localities through grants for public 
infrastructure, economic adjustment, planning, and technical 
assistance, all of which are intended to promote a transition 
to long-term employment and growth. The assistance is provided 
to communities on a cost-shared basis, with the Federal/non-
Federal ratio varying according to program.
    EDA programs are administered by the Assistant Secretary 
for Economic Development at the Department of Commerce via six 
regional offices (Atlanta, Austin, Chicago, Denver, 
Philadelphia, and Seattle) and additional field 
representatives. EDA also works with a network of economic 
development organizations and entities, including economic 
development districts, university centers, and trade adjustment 
assistance centers. The major EDA programs are as follows:

          Public Works: The public works program the 
        largest at EDA focuses on infrastructure projects 
        intended to help distressed communities support private 
        sector investments. Eligible projects include: water 
        and sewer facilities, access roads to industrial parks, 
        port improvements, and business incubator facilities. 
        Average fiscal year 1997 grant: $886,031.
          Economic Adjustment: This program provides 
        assistance to areas threatened by economic problems 
        resulting from structural economic changes (such as 
        natural disasters, military base closures, industrial 
        layoffs, and long-term economic deterioration). 
        Eligible projects include: development of adjustment 
        strategies and creation of business development 
        programs (such as revolving loan funds, organizational 
        development, market research). Average fiscal year 1997 
        grant: $1,260,026.
          Planning: EDA's planning programs include 
        both State and local assistance. For Economic 
        Development Districts and Indian Tribes, grants for 
        administrative expenses are provided to start economic 
        development programs. Eligible activities include 
        preparation of overall development strategies as well 
        as implementation assistance. Average fiscal year 1997 
        grant: $55,000 (district); $44,000 (Indian). States and 
        urban areas may receive grants to support development 
        planning and build institutional capacity. Eligible 
        activities include economic analysis, goal definition, 
        and program formulation. Average fiscal year 1997 
        grant: $69,000 (State); $83,000 (urban).
          Technical Assistance: At the local level, EDA 
        provides grants to solve specific development problems, 
        respond to opportunities, and build local 
        organizational capacity in distressed areas. Eligible 
        activities include feasibility studies of projects or 
        programs. Average fiscal year 1997 grant: $27,000. At 
        the national level, EDA awards grants to develop and 
        disseminate information about economic development 
        issues, and provide resources to intermediary 
        organizations that give technical assistance to local, 
        district, and State economic development organizations. 
        Average fiscal year 1997 grant: $120,000.
          Trade Adjustment Assistance: EDA also 
        supports a network of twelve Trade Adjustment 
        Assistance Centers that offer assistance to businesses 
        injured by imports. This assistance is authorized under 
        the Trade Act of 1974.

    Funding for EDA programs last was authorized in 1982. Since 
then, the agency has operated without authorization, but 
continued to receive funding through the annual appropriations 
process. While EDA reauthorization legislation has been 
proposed in both houses in virtually every Congress since, no 
legislation has been enacted. Reauthorization has been stymied 
in large part as a result of longstanding debate over the role 
of the Federal government in local economic development, and 
the effectiveness and focus of EDA programs, with several 
unsuccessful efforts taking place in the Senate in the late 
1970s and the 1980s to reduce or eliminate the agency.
    In recent years, in response to congressional concerns, EDA 
officials have undertaken significant reforms of EDA procedures 
and programs. Through administrative actions, the agency itself 
has been streamlined, undergoing an agency-wide reorganization 
process that has resulted in the development of a comprehensive 
Strategic Plan, the implementation of program performance 
measures in accordance with the 1993 Government Performance and 
Results Act (GPRA), accelerated resolution of outstanding 
Inspector General audit issues, and the hiring of a Chief 
Financial Officer. The number of agency staff was reduced over 
the two-year period between 1995 and 1997 by nearly 30 percent 
(from 355 to 255), with the number of political appointees 
dropping by more than 60 percent (from 14 to 5). With regard to 
delivery of services, EDA has reduced its regulations by more 
than 60 percent, simplified the grant application process and 
begun moving toward an on-line applications process, 
implemented a team-based approach in delivery of services, and 
increased delegation of grant approval authority to regional 
offices. Finally, and importantly, EDA officials have worked to 
tighten current selection criteria to help ensure that 
assistance is directed to economically distressed areas.
    EDA also has commissioned independent evaluations of its 
major grant programs and projects funded thereunder. In May 
1997, a research team led by Rutgers University and including 
the New Jersey Institute of Technology, Columbia University, 
the National Association of Regional Councils, Princeton 
University, and the University of Cincinnati issued a final 
report on EDA's Public Works Program. The research team 
concluded that of the 205 projects receiving closeout payments 
in fiscal year 1990, 99 percent were completed, and 96 percent 
produced permanent jobs. According to the researchers, every $1 
million in EDA public works investment created or retained 327 
jobs, and leveraged $10.08 million in private sector 
investment. In November 1997, the same team produced a report 
on EDA's Defense Adjustment Program. For the 190 projects 
studied, every $1 million in EDA defense adjustment 
infrastructure investment created or retained 124 jobs and 
leveraged $2.2 million in private sector investment.
    Other evaluations recently commissioned by EDA include a 
1997 comprehensive study of business incubator investments by 
the University of Michigan, the National Business Incubation 
Association, Ohio University, and the Southern Technology 
Council; a study by the State Science & Technology Institute on 
science and technology strategic planning; a 1998 Information 
Design Associates report on cluster-based economic development; 
and 1996 and 1998 evaluations by Aguirre International 
regarding EDA efforts in Hurricane Andrew and Midwest flood 
recovery, respectively. In addition, EDA officials have 
contracted for or proposed several other studies evaluating EDA 
performance and programs.
    In response to the changes under way at EDA, Environment 
and Public Works Committee Chairman Chafee, with Ranking Member 
Baucus and Subcommittee on Transportation and Infrastructure 
Chairman Warner, on July 28, 1998, introduced the Economic 
Development Administration Reform Act (S. 2364), legislation to 
reform and reauthorize the EDA and its programs and operations. 
Joining them as original cosponsors of the bill were Senators 
Snowe, Kempthorne, Lieberman, Moynihan, Reid, Boxer, Lugar, 
Hollings, Collins, and Mikulski.
    As reported, S. 2364 reauthorizes EDA for 5 years, with 
declining authorization levels that are consistent with the 
Administration's budget request; better targets EDA assistance 
to communities suffering high economic distress by eliminating 
or tightening the criteria for eligibility; requires 50/50 
Federal/local cost-sharing, with limited exceptions, for all 
EDA grant programs; provides for increased evaluation of EDA 
programs and operations; locks in administrative reforms 
recently undertaken by the agency; and deletes virtually all of 
three titles of PWEDA (Title II, regarding loans and loan 
guarantees; Title VIII, regarding disaster assistance and 
Recovery Planning Councils; Title X, regarding short-term job 
opportunities project). A section-by-section analysis follows.

                      Section-by-Section Analysis

Section 1. Short title; Table of Contents
    This section provides that the Act may be cited as the 
``Economic Development Administration Reform Act of 1998,'' and 
provides a table of contents.
Section 2. Reauthorization of Public Works and Economic Development Act 
        of 1965
    Amends the 1965 Public Works and Economic Development Act 
(PWEDA), as follows:
            Sec. 1. Short Title; Table of Contents
    This section effectively replaces the existing PWEDA by 
providing that the changes made by this Act may be cited as the 
``Public Works and Economic Development Act of 1965.'' A table 
of contents is provided.
            Sec. 2. Findings and Declarations
    This section provides updated findings and declarations, 
with an emphasis on the inherently local nature of economic 
development and the need for improved local planning and 
coordination.
            Sec. 3. Definitions
    This section, which consolidates definitions now scattered 
throughout the existing Public Works and Economic Development 
Act of 1965, provides updated definitions for ``comprehensive 
economic development strategy,'' ``Department,'' ``economic 
development district,'' ``eligible recipient,'' ``Federal 
agency,'' ``grant,'' ``Indian tribe,'' ``Secretary,'' 
``State,'' and ``United States.''

title i--economic development partnerships cooperation and coordination

            Sec. 101. Establishment of Economic Development 
                    Partnerships
    This section authorizes the Secretary of Commerce to 
cooperate with States and localities to ensure that Federal 
assistance is consistent with local economic objectives, 
provide technical assistance to States and localities where 
appropriate, promulgate regulations to ensure State and local 
review of projects with significant direct economic impact, and 
enter into cooperation agreements with two or more States.
            Sec. 102. Cooperation of Federal Agencies
    This section requires Federal departments and agencies to 
cooperate with the Secretary in carrying out the Act.
    To ensure that Federal economic development assistance is 
effective, better coordination of Federal activities is needed. 
Toward that end, EDA should aggressively pursue efforts to 
increase the efficiency of the Federal response to distressed 
communities by working with other Federal agencies to 
coordinate and generally improve Federal activities. Where 
appropriate, EDA is to be considered the lead agency in these 
efforts. The Secretary is expected to issue a progress report 
on such coordination efforts to the Senate Environment and 
Public Works Committee by June 1, 1999.
            Sec. 103. Coordination
    This section requires the Secretary to coordinate 
activities relating to the comprehensive economic strategies 
with other Federal programs, States, economic development 
districts, and other appropriate planning and development 
organizations.

       title ii--grants for public works and economic development

            Sec. 201. Grants for Public Works and Economic Development
    This section allows the Secretary to make grants to 
eligible recipients for the acquisition or development of land 
and improvements for public works facilities, as well as 
acquisition, design, or construction of such facilities. Such 
grants may be made only if the Secretary determines that the 
project 1) will improve the opportunities for successful 
establishment or expansion of industrial or commercial 
facilities, help create long-term employment, or primarily 
benefit the long-term unemployed and low-income; 2) will 
fulfill a pressing need of the area; and 3) is located in an 
area for which there exists a comprehensive economic 
development strategy. A State may not receive more than 15 
percent of the amount of the total public works grants provided 
under this section.
    This section permits two new uses design and engineering 
for public works and economic development grants. By allowing 
EDA grant monies to be used in conjunction with local funding 
for such work, this new authority is intended to promote 
identification of the most effective response to (and avoidance 
of possible miscalculations regarding) community economic 
development needs, and thus a decreased likelihood of project 
delays or cost overruns.
    In implementing this section (as well as Section 209), the 
Secretary is expected to carefully scrutinize project 
applications to ensure that those projects selected for 
assistance are likely to provide clear long-term economic 
benefits to the community in question, and that such projects 
both fit within and contribute importantly to the 
implementation of the local comprehensive economic development 
strategy. Projects developed with Section 201 or other EDA 
grant program monies should not be those that will result only 
in short-term employment or economic gains or that are 
inconsistent with local development strategies.
            Sec. 202. Base Closings and Realignments
    This section allows the Secretary to provide assistance for 
projects carried out on military or Dept of Energy 
installations regardless of whether the recipient has title to 
the property.
    The language of this section is virtually identical to that 
included in past appropriations bills that fund EDA activities. 
It is intended to allow meritorious economic development 
projects to be carried out on military bases that have been 
closed or are scheduled for closure, but whose title at the 
time of the project construction remains with the Federal 
government.
            Sec. 203. Grants for Planning and Grants for Administrative 
                    Expenses
    Pursuant to this section, the Secretary may make grants to 
eligible recipients for economic development planning and the 
administrative expenses of such planning. If the recipient in 
question also is receiving other Federal planning aid, that aid 
must be coordinated with the EDA assistance to ensure that the 
monies are used in an economical and effective manner that 
avoids overlap or waste.
    Any State that applies for assistance under this section in 
developing a State economic development plan is required to 
develop that plan in conjunction with local governments and 
local economic development districts. To receive assistance, 
the State must have or develop a comprehensive economic 
development strategy that is consistent with local and district 
plans (or if inconsistent, that outlines the justification for 
such inconsistencies).
    Economic development is inherently a local effort, and 
economic development initiatives undertaken without the active 
participation of the local community stand little chance of 
success. To increase the likelihood of success, grants provided 
under this section are intended to encourage local communities 
to begin (or continue) comprehensive planning efforts that aim 
to achieve steady economic development, and that work with or 
build upon regional economic development initiatives. The 
greater the community investment in planning, the greater the 
likelihood of EDA assistance achieving solid results.
            Sec. 204. Cost Sharing
    This section limits the Federal share of all grants made 
under this title to 50 percent of the cost of a project, with 
the Secretary allowed to credit toward the non-Federal share 
cash and in-kind contributions.
    Under current law, match rates for EDA assistance vary by 
program. Some programs such as the public works program require 
a 50 percent local match, while others such as the economic 
adjustment program routinely allow a local share of just 25 
percent. To reflect the importance of local participation and 
investment in worthwhile economic development activities, this 
section establishes a basic 50/50 match for all grant 
assistance provided by EDA.
            Sec. 205. Supplementary Grants
    This section allows the Secretary to make supplementary 
grants for projects for which the recipient, as a result of 
economic hardship, cannot provide the matching share. Grants 
may be used by eligible recipients to meet the match 
requirements of EDA programs or of other Federal grant programs 
specifically designated by the Secretary that 1) deal with 
construction or equipping of public works or development 
facilities, and 2) aid projects that are eligible under this 
Act and are consistent with the area's comprehensive economic 
development strategy. The minimum local share for recipients in 
such circumstances is 20 percent; further reductions are 
authorized only for Indian tribes, for States and localities 
that have exhausted their taxing and borrowing capacity, and 
for nonprofit organizations that have exhausted their borrowing 
capacity.
    The supplemental grant authority provided under this 
section is intended to address those situations of serious 
economic distress in which an eligible community clearly would 
be unable to participate in EDA programs absent the matching 
fund assistance. Likewise, with regard to the limited number of 
communities listed as eligible to qualify for a reduction in or 
waiver of the 20 percent minimum local share, such reductions 
or waivers are intended to apply only for those communities and 
Indian tribes whose economic situations are grave.
            Sec. 206. Regulations on Relative Needs and Allocations.
    This section requires the Secretary, in drafting 
regulations for EDA assistance, to take into account the 
relative needs of eligible areas based on relevant factors, 
among them 1) the severity of the rates, and duration, of 
unemployment; 2) the income levels and extent of 
underemployment; and 3) population outmigration and the extent 
to which it is causing economic injury.
    Section 206 also directs the Secretary to prioritize 
allocations of EDA aid so as to ensure that the level of 
economic distress of an area and not a preference for a 
geographic area or for a specific type of distress is the 
primary factor in the allocation of funding. Past allocations 
of aid have resulted in urban areas receiving substantially 
less EDA assistance over the years than rural areas. The 
Secretary is expected to ensure that priorities for allocations 
are balanced fairly and assigned according to level of economic 
distress.
            Sec. 207. Grants for Training, Research, and Technical 
                    Assistance.
    Under this section, the Secretary is authorized to make 
grants for training, research, and technical assistance 
(including grants for program evaluation and economic impact 
analyses) that would be useful in preventing or alleviating 
conditions of excessive un- or underemployment. Activities that 
may qualify for assistance under this section include project 
planning, feasibility studies, demonstrations, management and 
operational assistance, the establishment of university or 
business outreach centers, and development potential evaluation 
studies.
    This section provides EDA new statutory authority to 
provide grants for program evaluation and economic impact 
analysis. This change is important and reflects the shared 
interest of the Secretary and the Congress in encouraging 
credible evaluations of the impact and effectiveness of EDA 
assistance that may provide recommendations for the future 
scope and/or administration of EDA programs, and prevent 
wasteful or needless disbursement of taxpayer monies. As noted, 
recent independent evaluations of EDA have provided helpful 
feedback regarding EDA assistance.
    Section 207 also permits the Secretary to reduce or waive 
the non-Federal share. The Secretary may exercise this 
authority only where a technical assistance project merits such 
action and would not otherwise be feasible.
            Sec. 208. Prevention of Unfair Competition
    This section retains the current law prohibition against 
use of EDA assistance for any projects that would increase 
production in an area for which there is insufficient demand to 
employ the efficient capacity of existing enterprises.
            Sec. 209. Grants for Economic Adjustment
    Section 209 authorizes the Secretary to make economic 
adjustment grants to alleviate long-term economic deterioration 
and sudden and severe economic dislocation and to further the 
economic adjustment objectives of the Act; these grants may be 
redistributed, but not as grants to private for-profit 
entities. Projects assisted under this section may include the 
development of public facilities, public services, and business 
development (including the establishment of revolving loan 
funds). [With regard to revolving loan funds (RLFs), the 
Secretary is expected to review RLF financial management and 
reporting requirements to ensure that RLFs established with 
funds provided under this section are operated effectively and 
achieve their stated goals.]
    To qualify for funds under this section, projects must be 
located in an area that has a comprehensive economic 
development strategy, and must help meet a special need arising 
from 1) actual or threatened severe unemployment, or 2) 
economic adjustment problems resulting from severe changes in 
economic conditions. Among the communities that may be assisted 
by economic adjustment grants are those whose economies have 
been injured by military base closures, disasters, or 
international trade; however, communities suffering economic 
injury as a result of other severe changes in economic 
conditions such as population outmigration also may qualify.
            Sec. 210. Changed Project Circumstances
    Section 210 permits the Secretary to approve the use of 
grant funds for a project whose scope or purpose has been 
modified, as long as the modified project is consistent with 
the comprehensive economic development strategy submitted as 
part of the project's original grant application, and the 
modifications are necessary to enhance economic development in 
the project area. The authority granted under this section is 
intended to allow modifications to a project that is underway 
but has come up against an unanticipated problem, as long as 
the modifications continue to fulfill the goals of the original 
application and will enhance the area's economic development. 
This section is not intended to authorize the continuation of 
grants to projects that for all intents and purposes constitute 
new projects and should be resubmitted to EDA for approval.
            Sec. 211. Use of Funds in Projects Constructed Under 
                    Project Cost
    This section allows the Secretary, with respect to grants 
made for construction projects under the Act, to approve the 
use of any excess funds resulting from cost decreases for 
improvements to that project, with all remaining funds returned 
to the general fund of the Treasury.
    In implementing this section, the Secretary is expected to 
ensure that grantees have demonstrated and documented to his 
satisfaction that a proposed improvement would expand the 
benefits to be provided by the project, make the project more 
efficient, or better serve the need for which the project was 
designed. For example, eligible improvements may be based upon 
inclusion of innovative techniques that were not available at 
the time of application, or consist of elements of the original 
application that were not funded solely due to insufficiency of 
grant funds. Funding in excess of the amount required for 
approved improvements are to be returned to the Treasury.
            Sec. 212. Reports by Recipient
    This section requires all recipients of assistance to 
submit regular reports to the Secretary on the effectiveness of 
the assistance in meeting the need it was designed to address. 
The Secretary is authorized to request such reports at such 
intervals he determines are appropriate, for up to 10 years 
after the closeout of the award.
    As noted, regular evaluation of EDA-assisted programs and 
projects can serve as important tools for the agency and 
Congress in their efforts to ensure that EDA programs are 
targeted and effective, and do not waste taxpayer funds.
            Sec. 213. Prohibition on Use of Funds For Attorney's and 
                    Consultant's Fees
    This section prohibits the use of EDA assistance for any 
attorney or consultant fees incurred in obtaining grants or 
contracts under this title. The language of this section is 
virtually identical to that included in past appropriations 
bills that fund EDA activities. It is intended to ensure that 
no taxpayer monies are spent on fees charged by attorneys or 
consultants hired to aid applicants obtain EDA assistance.

 title iii--eligibility; comprehensive economic development strategies

            Sec. 301. Eligibility of Areas
    Section 301 provides the basic eligibility requirements for 
economically distressed areas. This section limits eligibility 
for public works (Sec. 201) or economic adjustment (Sec. 209) 
assistance to those areas that have 1) a per capita income of 
80 percent or less of the national average; 2) an unemployment 
rate that for the most recent 24 months has been at least one 
percent greater than the national average; or 3) experienced or 
is about to experience a special need arising from actual or 
threatened severe unemployment or economic adjustment problems 
resulting from severe short- or long-term changes in economic 
conditions.
    This section is intended to ensure that EDA assistance and 
resources are targeted only to those communities that are 
suffering serious economic distress, rather than those 
experiencing a minor economic downturn for which there exist 
sufficient community resources to address and remedy the 
situation. Current law now provides nine separate eligibility 
criteria by which areas may qualify for EDA aid. This section 
eliminates most of these vague or overly broad criteria, 
including the criterion for the Public Works Incentive Program 
(PWIP) (whose mandate for projects providing ``immediate useful 
work'' does not correspond with EDA's mission of promoting 
long-term economic growth). The remainder are consolidated into 
three criteria that will ensure that EDA assistance is targeted 
to truly distressed communities. Toward that end, the Secretary 
is directed to promulgate regulations that will fulfill this 
goal.
    As listed above, the first two criteria provide clear 
thresholds for aid, while the third allows the necessary 
flexibility to address other situations of serious distress 
that, for a number of reasons, may not meet the first two 
requirements but that clearly would be considered by the 
Secretary and Congress as deserving of assistance. Among the 
latter situations are those involving communities affected by 
major, discrete events such as military base closures or 
presidentially-declared disasters or emergencies. Others may 
include those involving communities experiencing important but 
gradual long-term changes in economic conditions that in turn 
result in economic distress. One clear example of such a 
gradual change is population outmigration, which in many rural 
and urban communities often can cause serious economic problems 
that merit EDA assistance.
    In implementing this section, the Secretary need not define 
the applicant's area as consisting of the entire community; as 
noted by Section 209, smaller areas of poverty within a larger 
community in less economic distress may be considered for 
eligibility for public works or economic adjustment assistance.
    Section 209 also eliminates all ``redevelopment area'' 
designations made before the effective date of this Act. 
Currently, under PWEDA, a community designated as a 
redevelopment area is considered eligible for EDA assistance; 
moreover, PWEDA specifically mandates that all redevelopment 
area designations, once made, remain in existence, regardless 
of any changes in economic condition. As a result, 
approximately 80 percent of the nation's population live in 
areas that technically would qualify for EDA assistance, 
although agency funding practices limit the assistance to areas 
of greatest distress. Under this section, this would no longer 
be the case, and eligibility would be approved or rejected 
based on current economic factors.
            Sec. 302. Comprehensive Economic Development Strategy
    This section requires that applicants for public works 
(Sec. 201) or economic adjustment (Sec. 209) assistance submit 
with their applications for assistance 1) an identification of 
the economic development problems to be addressed; 2) an 
identification of past, present, and project future economic 
development investments for the area and sources of funding for 
such investments; and 3) a comprehensive economic development 
strategy for addressing the problems identified in a sound 
manner and a description of how the strategy will solve those 
problems. For purposes of this section, the Secretary may 
accept as a comprehensive economic development plan a 
satisfactory plan developed under another federally-supported 
program.
    The comprehensive strategy required by this section is 
intended to serve as the foundation for the major EDA-assisted 
economic development activities. It ensures that EDA 
contributions to local economic development projects go forward 
only after the local community has developed a clear and 
carefully considered strategy for alleviating economic distress 
and promoting economic growth.

                title iv--economic development districts

            Sec. 401. Designation of Economic Development Districts
    This section permits the Secretary to designate Economic 
Development Districts (EDDs) to promote economic development on 
a broader geographic basis. EDDs must be of sufficient size to 
foster economic development on a larger scale, contain at least 
one area described in Section 301, and have a comprehensive 
economic development strategy that has been approved by each 
State involved and the Secretary. EDDs can help foster local 
economic development efforts by promoting regional cooperation 
in the pursuit of common economic goals.
    Section 401 does not provide further authority for the 
designation of ``Economic Development Centers,'' a term that no 
longer is relevant or necessary under the structure of this 
Act.
            Sec. 402. Termination or Modification of Economic 
                    Development Districts
    This section directs the Secretary to promulgate standards 
for the termination or modification of the designation of EDDs.
            Sec. 403. Incentives
    Section 403 authorizes the Secretary to provide an increase 
of up to 10 percent of the cost of a project within an EDD if 
the applicant is actively participating in EDD activities and 
the project is consistent with the EDD's comprehensive economic 
development strategy, as long as the increase does not cause 
the non-Federal share of the cost of the project to be less 
than 20 percent.
    Incentives can help encourage greater community 
participation and coordination, increasing the likelihood of a 
successful project for the benefit of the community. While an 
increase of 10 percent is permitted as an incentive, the 
Secretary is not required or expected to provide the full 10 
percent increase in every case; the Secretary should do so only 
in those cases where the level of participation clearly 
warrants such action.
    Section 403 also requires the Secretary to review the 
existing incentive system to ensure it is administered in the 
most direct and effective manner possible. The current system 
appears to be needlessly complicated and may require revision.
            Sec. 404. Provision of Comprehensive Economic Development 
                    Strategies to Appalachian Regional Commission
    This section directs each EDD in the Appalachian region to 
provide a copy of its comprehensive economic development 
strategy to the Appalachian Regional Commission to promote 
coordination of regional economic development activities.
            Sec. 405. Assistance to Parts of Economic Development 
                    Districts Not in Eligible Areas
    Section 405 allows the Secretary to provide assistance to 
projects in areas in EDDs that are not eligible areas as 
defined in Sec. 301, as long as the project would be of 
substantial direct benefit to that area.
    This authority is provided to allow the Secretary to 
maximize potential for economic growth in an eligible area in 
the rare circumstances where that goal is best achieved by 
assisting a project outside the area. For example, an 
industrial park project near a severely distressed neighborhood 
may provide long-term employment opportunities to the members 
of that neighborhood.

                        title v--administration

            Sec. 501. Assistant Secretary for Economic Development
    This section directs the Secretary to carry out this Act 
through an Assistant Secretary for Economic Development, who is 
to be appointed by the President and confirmed by the Senate.
            Sec. 502. Economic Development Information Clearinghouse
    This section directs the Secretary to serve as a central 
information clearinghouse on the economic development, economic 
adjustment, disaster, defense conversion, and trade adjustment 
activities of the Federal, State, and local governments; help 
applicants locate and apply for such programs; and help 
persons, businesses, and communities in eligible areas receive 
technical information on how to alleviate unemployment.
    Section 502 is intended to provide distressed communities 
with one source for information regarding Federal, and to the 
extent possible, State and local assistance for a variety of 
situations.
            Sec. 503. Consultation with Other Persons and Agencies
    Section 503 allows the Secretary to consult with persons 
including representatives of labor, management, agriculture, 
and government who are able to assist in addressing the 
problems of area and regional unemployment and underemployment.
            Sec. 504. Administration, Operation, and Maintenance
    This section continues current law by prohibiting the 
approval of any assistance unless the Secretary is satisfied 
that the project receiving aid will be properly and efficiently 
administered, operated, and maintained.
            Sec. 505. Businesses Desiring Federal Contracts
    This section permits the Secretary to provide other Federal 
agencies with a list of names of businesses located in eligible 
areas that wish to obtain Federal contracts for supplies and 
services.
            Sec. 506. Review of University Centers
    Section 506 requires the Secretary to conduct periodic 
reviews of university centers receiving EDA assistance to 
determine whether they merit continued assistance, and to allow 
qualified universities not receiving assistance the opportunity 
to do so. Reviews, which are to occur at least once every 3 
years, must assess each center's performance regarding the 
retention and creation of employment. Toward that end, the 
Secretary is directed to establish criteria including the 
center's contribution to technical assistance or applied 
research, and its dissemination of the results of its work for 
use in conducting reviews.
    This section is intended to ensure that EDA funds are being 
used wisely and effectively. In addition, it is meant to allow 
qualified universities that now are not participating as a 
university center a fair opportunity to contribute to economic 
development research.

                        title vi--miscellaneous

            Sec. 601. Powers of the Secretary
    Section 601 authorizes the Secretary to carry out a number 
of standard duties, including using a seal, appointing 
compensation, holding hearings and taking testimony, requesting 
information from other agencies, pursuing claims against third 
parties, employing experts, establishing performance measures, 
and conducting environmental reviews. This section also extends 
the Secretary's current authority to protect property interests 
acquired through loans to property interests arising from 
grants, and allows the release of those property interests 20 
years after the original grant is awarded.
            Sec. 602. Maintenance of Standards
    Section 602 continues current law requirements for wage 
payments made under this Act.
            Sec. 603. Annual Report to Congress
    This section requires the Secretary, no later than July 1, 
2000, and every July 1 thereafter, to submit a comprehensive 
and detailed annual report on EDA activities under this Act 
during the previous fiscal year.
            Sec. 604. Delegation of Functions and Transfer of Funds 
                    Among Federal Agencies
    Section 604 permits Secretary to delegate functions to 
other agencies, where appropriate, and transfer funds to and 
accept funds from other agencies for authorized purposes.
            Sec. 605: Penalties
    This section establishes penalties for making false 
statements or committing embezzlement or fraud.
            Sec. 606. Employment of Expediters and Administrative 
                    Employees
    This section requires businesses receiving assistance under 
this Act to certify the names of and fees paid to persons 
helping to expedite applications, and agree to refrain for 2 
years from employing former Department of Commerce employees 
who had discretion over granting assistance.
            Sec. 607. Maintenance and Public Inspection of List of 
                    Approved Applications for Financial Assistance
    Section 607 requires the Secretary to maintain a list of 
approved applications, and make the list available for public 
inspection.
            Sec. 608. Records and Audits
    This section requires recipients to keep records on the 
amount and disposition of the assistance, the total cost of the 
project, the amount and portion of the project's cost provided 
by other sources, and other records that allow for an effective 
audit. In addition, this section provides access to the records 
for the Secretary, the Comptroller General of the United 
States, and, for the first time, the Inspector General of the 
Department of Commerce. This provision is intended to help 
ensure that EDA resources are spent in accordance with law and 
in a manner that aids effective economic development in 
distressed communities.
            Sec. 609. Relationship to Assistance Under Other Law
    Section 609 clarifies that assistance authorized under this 
Act is in addition to any assistance authorized before the 
Act's effective date.
            Sec. 610. Acceptance of Certifications by Applicants
    This section allows the Secretary to accept certifications 
from applicants that they meet the Act's requirements.

                           title vii--funding

            Sec. 701. General Authorization of Appropriations
    Section 701 provides an authorization level of $397,969,000 
for fiscal year 1999, $338,379,000 for fiscal year 2000, 
$306,000,000 for fiscal year 2001, $277,000,000 for fiscal year 
2002, and $277,000,000 for fiscal year 2003. These amounts 
reflect the levels requested by the Administration for the next 
5 fiscal years.
            Sec. 702. Authorization of Appropriations for Defense 
                    Conversion Activities
    This section provides authorization for additional funds, 
in the amount of such sums as are necessary, for defense 
conversion activities (including pilot projects relating to 
privatization or development of closed or realigned military or 
Department of Energy installations).
    It is expected that this authorization will apply to funds 
provided through the supplemental appropriations process for 
specific closures or realignments. While the authorization is 
not limited, in requesting funds for this purpose, the 
Secretary is expected to estimate to the best of his ability 
the level of funding required to fit the need at hand.
            Sec. 703. Authorization of Appropriations for Disaster 
                    Economic Recovery Activities
    This section provides authorization for additional funds, 
in the amount of such sums as are necessary, for economic 
recovery activities after a presidentially declared disaster or 
emergency. The Secretary is given discretion to reduce or waive 
the non-Federal share for such assistance in cases where he 
deems such a reduction or waiver to be warranted.
    It is expected that this authorization will apply to funds 
provided through the supplemental appropriations process for 
specific disasters. As with the case of base closures, while 
this authorization is not limited, in requesting funds for this 
purpose, the Secretary is expected to estimate to the best of 
his ability the level of funding required to fit the need at 
hand.
Section 3. Conforming Amendment
    This section strikes an obsolete and never-used provision 
in current law regarding the position of Administrator of 
Economic Development.
Section 4. Transition Provisions
    Section 4 provides for a variety of provisions on existing 
rights, continuation of suits, liquidating accounts.
Section 5. Effective Date
    This section provides that this Act and the amendments made 
by this Act shall go into effect no later than 90 days after 
the date of enactment.

                                Hearings

    On July 14, 1998, the Subcommittee on Transportation and 
Infrastructure of the Senate Committee on Environment and 
Public Works held a hearing on the Economic Development 
Administration and on the Economic Development Partnership Act 
(S. 1647), transmitted to Congress by Secretary of Commerce 
William M. Daley and introduced by Ranking Minority Member 
Baucus.
    Testifying at the hearing were Secretary Daley and 
Assistant Secretary for Economic Development Phillip A. 
Singerman; Dr. Robert Burchell of the Center for Urban Policy 
Research of Rutgers University; Mr. Dewitt John of the Center 
for Economy and the Environment of the National Academy of 
Public Administration; Pulaski County, Arkansas, Judge/
Executive Floyd Villines on behalf of the Coalition for 
Economic Development; and Mr. Eric Thompson on behalf of the 
National Association of Development Organizations and the Lower 
Savannah Council of Governments.

                             Rollcall Votes

    Section 7(b) of rule XXVI of the Standing Rules of the 
Senate and the rules of the Committee on Environment and Public 
Works require that any rollcall votes taken during 
consideration of legislation be noted in the report.
    On July 29, 1998, S. 2364 was considered by the full 
committee, and approved by voice vote. No amendments to the 
bill were offered. No rollcall votes occurred in relation to 
the bill.

                    Evaluation of Regulatory Impact

    Section 11(b) of rule XXVI of the Standing Rules of the 
Senate requires publication in the report of the committee's 
estimate of the regulatory impact of the bill as reported. S. 
2364, as reported, is expected to impose no new regulatory 
impact. This bill will not affect the personal privacy of 
individuals.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(P.L. 104-4), the committee makes the following evaluation of 
the Federal mandates contained in the reported bill. S. 2364, 
as reported, imposes no Federal intergovernmental mandates on 
State, local, or tribal governments.

                          Cost of Legislation

    Section 403 of the Congressional Budget and Impoundment 
Control Act requires that a statement of the cost of the 
reported bill, prepared by the Congressional Budget Office, be 
included in the report. That statement follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 13, 1998.

Hon. John H. Chafee, Chairman,
Committee on Environment and Public Works,
U.S. Senate, Washington, DC.

    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 2364, the Economic 
Development Administration Reform Act of 1998.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Gary Brown 
(for Federal costs), who can be reached at 226-2860, and Lisa 
Cash Driskill (for the State and local impact), who can be 
reached at 225-3220.

            Sincerely,
                                           June E. O'Neill,
                                                          Director.
                                ------                                


               Congressional Budget Office Cost Estimate

S. 2364, Economic Development Administration Reform Act of 
1998, as ordered reported by the Senate Committee on 
Environment and Public Works on July 29, 1998.
Summary
    S. 2364 would reauthorize and modify programs administered 
by the Economic Development Administration (EDA). For these 
purposes, it would authorize the appropriation of $448 million 
in 1999 and $1.8 billion over the 1999-2003 period. CBO 
estimates that $1.1 billion of these amounts would be spent 
over the next 5 years, assuming appropriation of the authorized 
sums.
    The bill also would allow EDA to expend certain funds that, 
under current law, would not be spent. CBO estimates that such 
authority would result in direct spending of $10 million over 
fiscal years 1999 through 2002 (with no effect in fiscal year 
2003). Because S. 2364 would affect direct spending, pay-as-
you-go procedures would apply.
    The legislation contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act 
(UMRA) and would impose no costs on State, local, or tribal 
governments.
Estimated cost to the Federal Government
    The estimated budgetary impact of S. 2364 is shown in the 
following table. The costs of this legislation fall within 
budget function 450 (community and regional development).

                                                                                                                
                                     By Fiscal Year, in Millions of Dollars                                     
----------------------------------------------------------------------------------------------------------------
                                                                   1998    1999    2000    2001    2002    2003 
----------------------------------------------------------------------------------------------------------------
                SPENDING SUBJECT TO APPROPRIATION                                                               
                                                                                                                
EDA Spending Under Current Law..................................                                                
    Budget Authority \1\........................................     351       0       0       0       0       0
    Estimated Outlays...........................................     419     351     259     178      76      10
                                                                                                                
Proposed Changes................................................                                                
    Estimated Authorization Level...............................       0     448     388     356     327     327
    Estimated Outlays...........................................       0      52     139     214     307     362
                                                                                                                
EDA Spending Under S. 2364......................................                                                
    Estimated Authorization Level \1\...........................     351     448     388     356     327     327
    Estimated Outlays...........................................     419     403     398     392     383     372
                                                                                                                
                   CHANGES IN DIRECT SPENDING                                                                   
                                                                                                                
Estimated Budget Authority......................................       0       0       0       0       0       0
Estimated Outlays...............................................       0       1       3       3       3       0
----------------------------------------------------------------------------------------------------------------
\1\ The 1998 level is the amount appropriated for that year for the programs that would be reauthorized by S.   
  2364.                                                                                                         

Basis of estimate
    For purposes of this estimate, CBO assumes that S. 2364 
will be enacted by the beginning of fiscal year 1999 and that 
all amounts authorized or estimated to be authorized by the 
bill will be appropriated for each year. Estimated outlays are 
based on historical rates of spending for EDA programs.
Spending Subject to Appropriation
    S. 2364 would authorize the appropriation of $398 million 
in 1999, $338 million in 2000, $306 million in 2001, and $277 
million in each of fiscal years 2002 and 2003 for EDA's 
administrative costs and economic development program. (The 
bill would not authorize funding for EDA's Trade Adjustment 
Assistance program.)
    The bill also would authorize such sums as necessary for 
assisting communities affected by natural disasters and the 
downsizing of the Department of Defense and Department of 
Energy. Based on annual appropriations to EDA for disaster-
related activities over the past 5 years, CBO estimates that 
additional funding for disaster assistance would average about 
$50 million per year over the 1999-2003 period. Based on 
information provided by EDA, CBO estimates that additional 
funding would probably not be necessary to deal with the 
consequences of Federal downsizing unless the Congress enacts 
legislation requiring additional closings or reductions.
Direct Spending
    Expiring Funds. S. 2364 would allow recipients of EDA 
grants, under certain conditions, to use funds that, under 
current law, would not be spent because the scope or purpose of 
the project that they were originally provided for has changed 
or the cost of the project was lower than anticipated. As is 
the case under current law, EDA's authority to spend funds 
would continue to expire 5 years after the date on which such 
funds are obligated. CBO estimates that, under current law, 
about $10 million of previously appropriated funding will lapse 
each year over the 1999-2002 period. From those amounts, CBO 
estimates that, under S. 2364, about $1 million in additional 
outlays would occur in 1999 and about $3 million in additional 
outlays would occur for each of fiscal years 2000 through 2002.
    Expanded Use of EDA Liquidating Account. Enacting S. 2364 
also would affect direct spending because the bill would 
authorize EDA to use loan repayments to pay expenses associated 
with seizing, protecting, or conveying assets. For example, 
under the bill, loan proceeds would be available for taking 
over property that was acquired with an EDA grant but is now 
being used for purposes that are inconsistent with the terms of 
the original grant. Once the property was acquired, the funds 
also could be used to pay the costs of transferring the land to 
nonfederal ownership (for example, the costs of conducting 
environmental impact statements). CBO expects that this 
authority would allow EDA to acquire or convey additional 
assets and that, on average, the proceeds that would result 
from conveying these assets would offset any increases in 
spending, resulting in no significant net change in direct 
spending for each year.
Pay-as-you-go Considerations
    The Balanced Budget and Emergency Deficit Control Act sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts. The net changes in outlays and 
governmental receipts that are subject to pay-as-you-go 
procedures are shown in the following table. For the purposes 
of enforcing pay-as-you-go procedures, only the effects in the 
current year, the budget year, and the succeeding 4 years are 
counted.

                                                                                                                
                                     By Fiscal Year, in Millions of Dollars                                     
----------------------------------------------------------------------------------------------------------------
                                      1998   1999   2000   2001   2002   2003   2004   2005   2006   2007   2008
----------------------------------------------------------------------------------------------------------------
Changes in outlays.................      0      1      3      3      3      0      0      0      0      0      0
Changes in receipts\1\.............                                                                             
----------------------------------------------------------------------------------------------------------------
\1\Not applicable                                                                                               

Estimated impact on State, local, and tribal governments
    S. 2364 contains no intergovernmental mandates as defined 
in UMRA and would impose no costs on State, local, or tribal 
governments. The bill would reauthorize the Economic 
Development Administration, with most of the money going to 
grants for public infrastructure and economic development 
activities. The bill would tighten the eligibility criteria for 
grant funding and generally drop the maximum Federal match from 
80 percent to 50 percent, changes that would codify the current 
practices of the program. Finally, the bill would, under 
certain circumstances, expand the possible uses of grant funds 
provided for specific projects.
Estimated impact on the private sector
    The bill would impose no new private-sector mandates as 
defined in UMRA.
Previous CBO estimate
    On August 6, 1998, CBO provided an estimate for H.R. 4275, 
the Economic Development Partnership Act of 1998, as ordered 
reported by the House Committee on Transportation and 
Infrastructure on July 23, 1998. Unlike S. 2364, H.R. 4275 
would reauthorize and modify programs administered by the 
Appalachian Regional Commission, in addition to those of EDA. 
It would authorize the appropriation of $2.4 billion for these 
purposes over the 1999-2003 period, of which $2 billion would 
be for EDA.

Estimate prepared by: Federal Costs: Gary Brown (226-2860); 
Impact on State, Local, and Tribal Governments: Lisa Cash 
Driskill (225-3220).

Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis

                        Changes in Existing Law

    In compliance with section 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill 
as reported are shown as follows: Existing law proposed to be 
omitted is enclosed in [black brackets], new matter is printed 
in italic, existing law in which no change is proposed is shown 
in roman:
                                ------                                

                                                  Public Law 89-136


           PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF 1965

           [As Amended Through P.L. 104-89, January 4, 1996]

 AN ACT To provide grants for public works and development facilities, 
other financial assistance and the planning and coordination needed to 
  alleviate conditions of substantial and persistent unemployment and 
      underemployment in economically distressed areas and regions

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled. That this 
Act may be cited as the ``Public Works and Economic Development 
Act of 1965''.

                          statement of purpose

    Sec. 2. [42 U.S.C. 3121] The Congress declares that the 
maintenance of the national economy at a high level is vital to 
the best interests of the United States, but that some of our 
regions, counties, and communities are suffering substantial 
and persistent unemployment cause hardship to many individuals 
and their families, and waste invaluable human resources; that 
to overcome this problem the Federal Government, in cooperation 
with the States, should help areas and regions of substantial 
and persistent unemployment and underemployment to take 
effective steps in planning and financing their public works 
and economic development; that Federal financial assistance, 
including grants for public works and development facilities to 
communities, industries, enterprises, and individuals in areas 
needing development should enable such areas to help themselves 
achieve lasting improvement and enhance the domestic prosperity 
by the establishment of stable and diversified local economies 
and improved local conditions, provided that such assistant is 
preceded by and consistent with sound, long-range economic 
planning; and that under the provisions of this Act new 
employment opportunities should be created by developing and 
expanding new and existing public works and other facilities 
and resources rather than by merely transferring jobs from one 
area of the United States to another. Congress further declares 
that, in furtherance of maintaining the national economy at a 
high level, the assistance authorized by this Act should be 
made available to both rural and urban areas; that such 
assistance be available for planning for economic development 
prior to the actual occurrences of economic distress in order 
to avoid such condition; and that such assistance be used for 
long-term economic rehabilitation in areas where long-term 
economic deterioration has occurred or is taking place.

      [TITLE I--GRANTS FOR PUBLIC WORKS AND DEVELOPMENT FACILITIES

    [Sec. 101. [42 U.S.C. 3131] (a) Upon the application of any 
State, or political subdivision thereof, Indian tribe, or 
private or public nonprofit organization or association 
representing any redevelopment area or part thereof, the 
Secretary of Commerce (hereinafter referred to as the 
Secretary) is authorized--
            [(1) to make direct grants for the acquisition or 
        development of land and improvements for public works, 
        public service, or development facility usage, and the 
        acquisition, construction, rehabilitation, alteration, 
        expansion, or improvement of such facilities, including 
        related machinery and equipment, within a redevelopment 
        area, if he finds that--
                    [(A) the project for which financial 
                assistance is sought will directly or 
                indirectly (i) tend to improve the 
                opportunities, in the area where such project 
                is or will be located, for the successful 
                establishment or expansion of industrial or 
                commercial plants or facilities, (ii) otherwise 
                assist in the creation of additional long-term 
                employment opportunities for such area, or 
                (iii) primarily benefit the long-term 
                unemployed and members of low-income families 
                or otherwise substantially further the 
                objectives of the Economic Opportunity Act of 
                1964;
                    [(B) the project for which a grant is 
                requested will fulfill a pressing need of the 
                area, or part thereof, in which it is, or will 
                be, located;
                    [(C) the area for which a project is to be 
                undertaken has an approved overall economic 
                development program as provided in section 
                202(b)(10) and such project is consistent with 
                such program; and
                    [(D) in the case of a redevelopment area so 
                designated under section 401(a)(6), the project 
                to be undertaken will provide immediate useful 
                work to unemployed and underemployed persons in 
                that area.
            [(2) to make supplementary grants in order to 
        enable the States and other entities within 
        redevelopment areas to take maximum advantage of 
        designated Federal grant-in-aid programs (as 
        hereinafter defined), direct grants-in-aid authorized 
        under this section, and Federal grant-in-aid programs 
        authorized by the Watershed Protection and Flood 
        Prevention Act (68 Stat. 666, as amended), and the 
        eleven watersheds authorized by the Flood Control Act 
        of December 22, 1944, as amended and supplemented (58 
        Stat. 887), for which they are eligible but for which, 
        because of their economic situation, they cannot supply 
        the required matching share.
    [(b) Subject to subsection (c) hereof, the amount of any 
direct grant under this section for any project shall not 
exceed 50 per centum of the cost of such project.
    [(c) The amount of any supplementary grant under this 
section for any project shall not exceed the applicable 
percentage established by regulations promulgated by the 
Secretary, but in no event shall the non-Federal share of the 
aggregate cost of any such project (including assumptions of 
debt) be less than 20 per centum of such cost, except that in 
the case of a grant to an Indian tribe, the Secretary may 
reduce the non-Federal share below such per centum or may waive 
the non-Federal share. In the case of any State or political 
subdivision thereof which the Secretary determines has 
exhausted its effective taxing and borrowing capacity, the 
Secretary shall reduce the non-Federal share below such per 
centum or shall waive the non-Federal share in the case of such 
a grant for a project in a redevelopment area designated as 
such under section 401(a)(6) of this Act. In case of any 
community development corporation which the Secretary 
determines has exhausted its effective borrowing capacity, the 
Secretary may reduce the non-Federal share below such per 
centum or waive the non-Federal share in the case of such a 
grant for a project in a redevelopment area designated as such 
under section 401(a)(6) of this Act. Supplementary grants shall 
be made by the Secretary, in accordance with such regulations 
as he shall prescribe, by increasing the amounts of direct 
grants authorized under this section or by the payment of funds 
appropriated under this Act to the heads of the departments, 
agencies, and instrumentalities of the Federal Government 
responsible for the administration of the applicable Federal 
programs. Notwithstanding any requirement as to the amount or 
sources of non-Federal funds that may otherwise be applicable 
to the Federal program involved, funds provided under this 
subsection shall be used for the sole purpose of increasing the 
Federal contribution to specific projects in redevelopment 
areas under such programs above the fixed maximum portion of 
the cost of such project otherwise authorized by the applicable 
law. The term ``designated Federal grant-in-aid programs,'' as 
used in this subsection, means such existing or future Federal 
grant-in-aid programs assisting in the construction or 
equipping of facilities as the Secretary may, in furtherance of 
the purposes of this Act, designate as eligible for allocation 
of funds under this section. In determining the amount of any 
supplementary grant available to any project under this 
section, the Secretary shall take into consideration the 
relative needs of the area, the nature of the projects to be 
assisted, and the amount of such fair user charges or other 
revenues as the project may reasonably be expected to generate 
in excess of those which would amortize the local share of 
initial costs and provide for its successful operation and 
maintenance (including depreciation).
    [(d) The Secretary shall prescribe rules, regulations, and 
procedures to carry out this section which will assure that 
adequate consideration is given to the relative needs of 
eligible areas. In prescribing such rules, regulations, and 
procedures the Secretary shall consider among other relevant 
factors (1) the severity of the rates of unemployment in the 
eligible areas and the duration of such unemployment and (2) 
the income levels of families and the extent of underemployment 
in eligible areas.
    [(f) The Secretary shall prescribe regulations which will 
assure that appropriate local governmental authorities have 
been given a reasonable opportunity to review and comment upon 
proposed projects under this section.
    [Sec. 102. [42 U.S.C. 3132] For each of the fiscal years 
ending June 30, 1975, June 30, 1976, September 30, 1977, 
September 30, 1978, September 30, 1979, September 30, 1980, 
September 30, 1981, and September 30, 1982, not to exceed 
$30,000,000 of the funds authorized to be appropriated under 
section 105 of this Act for each such fiscal year, and for the 
period beginning July 1, 1976, and ending September 30, 1976, 
not to exceed $7,500,000 of the funds authorized to be 
appropriated under such section 105 for such period, shall be 
available for grants for operation of any health project funded 
under this title after the date of enactment of this section. 
Such grants may be made up to 100 per centum of the estimated 
cost of the first year of operation, and up to 100 per centum 
of the deficit in funds available for operation of the facility 
during the second fiscal year of operation. No grant shall be 
made for the second fiscal year of operation of any facility 
unless the agency operating such facility has adopted a plan 
satisfactory to the Secretary of Health, Education, and 
Welfare, providing for the funding of operations on a permanent 
basis. Any grant under this section shall be made upon the 
condition that the operation of the facility will be conducted 
under efficient management practices designed to obviate 
operating deficits, as determined by the Secretary of Health, 
Education, and Welfare.
    [Sec. 103. [42 U.S.C. 3133] Not more than 15 per centum of 
the appropriations made pursuant to this title may be expended 
in any one State.
    [Sec. 105. [42 U.S.C. 3135] There is hereby authorized to 
be appropriated to carry out this title not to exceed 
$500,000,000 for the fiscal year ending June 30, 1966, and for 
each fiscal year thereafter through fiscal year ending June 30, 
1971, not to exceed $800,000,000 per fiscal year for the fiscal 
years ending June 30, 1972, and June 30, 1973, not to exceed 
$200,000,000 for the fiscal year ending June 30, 1974, and not 
to exceed $200,000,000 for the fiscal year ending June 30, 
1975, and not to exceed $250,000,000 for the fiscal year ending 
June 30, 1976, not to exceed $62,500,000 for the period 
beginning July 1, 1976, and ending September 30, 1976, and not 
to exceed $425,000,000 per fiscal year for the fiscal years 
ending September 30, 1977, September 30, 1978, September 30, 
1979, September 30, 1980, and September 30, 1981, and not to 
exceed $150,000,000 for the fiscal year ending September 30, 
1982. Any amounts authorized for the fiscal year ending June 
30, 1972, under this section but not appropriated may be 
appropriated for the fiscal year ending June 30, 1973. Not less 
than 25 per centum nor more than 35 per centum of all 
appropriations made for the fiscal years ending June 30, 1972, 
June 30, 1973, and June 30, 1974, and not less than 15 per 
centum nor more than 35 per centum of all appropriations made 
for the fiscal years ending June 30, 1975 and June 30, 1976, 
the period beginning July 1, 1976, and ending September 30, 
1976, and the fiscal years ending September 30, 1977, September 
30, 1978, September 30, 1979, September 30, 1980, September 30, 
1981, and September 30, 1982, under authority of the preceding 
sentences shall be expended in redevelopment areas designated 
as such under section 401(a)(6) of this Act.

               [financial assistance for sewer facilities

    [Sec. 106. [42 U.S.C. 3136] No financial assistance, 
through grants, loans, guarantees, or otherwise, shall be made 
under this Act to be used directly or indirectly for sewer or 
other waste disposal facilities unless the Secretary of Health, 
Education, and Welfare certifies to the Secretary that any 
waste material carried by such facilities will be adequately 
treated before it is discharged into any Public waterway so as 
to meet applicable Federal, State, interstate, or local water 
quality standards.

                      [construction cost increases

    [Sec. 107. [42 U.S.C. 3137] In any case where a grant 
(including a supplemental grant) has been made under this title 
for a project and after such grant has been made but before 
completion of the project, the cost of such project based upon 
the designs and specifications which were the basis of the 
grant has been increased because of increases in costs, the 
amount of such grant may be increased by an amount equal to the 
percentage increase, as determined by the Secretary, in such 
costs, but in no event shall the percentage of the Federal 
share of such project exceed that originally provided for in 
such grant.

                 [TITLE II--OTHER FINANCIAL ASSISTANCE

              [public works and development facility loans

    [Sec. 201. [42 U.S.C. 3141] (a) Upon the application of any 
State, or political subdivision thereof, Indian tribe, or 
private or public nonprofit organization or association 
representing any redevelopment area or part thereof, the 
Secretary is authorized to purchase evidence of indebtedness 
and to make loans to assist in financing the purchase or 
development of land and improvements for public works, public 
service, or development facility usage, including public works, 
public service, or development facility usage, to be provided 
by agencies of the Federal Government pursuant to legislation 
requiring that non-Federal entities bear some part of the cost 
thereof, and the acquisition, construction, rehabilitation, 
alteration, expansion, or improvement of such facilities, 
including related machinery and equipment, within a 
redevelopment area, if he finds that--
            [(1) the project for which financial assistance 
        sought will directly or indirectly--
                    [(A) tend to improve the opportunities, in 
                the area where such project is or will be 
                located, for the successful establishment or 
                expansion of industrial or commercial plants or 
                facilities,
                    [(B) otherwise assist in the creation of 
                additional long-term employment opportunities 
                for such area, or
                    [(C) primarily benefit the long-term 
                unemployed and members of low-income families 
                or otherwise substantially further the 
                objectives of the Economic Opportunity Act of 
                1964;
            [(2) the funds requested for such project are not 
        otherwise available from private lenders or from other 
        Federal agencies on terms which in the opinion of the 
        Secretary will permit the accomplishment of the 
        project;
            [(3) the amount of the loan plus the amount of 
        other available funds for such project are adequate to 
        insure the completion thereof;
            [(4) there is a reasonable expectation of 
        repayment; and
            [(5) such area has an approved overall economic 
        development program as provided in section 202(b)(10) 
        and the project for which financial assistance is 
        sought is consistent with such program.
    [(b) Subject to section 710(5), no loan, including renewals 
or extensions thereof, shall be made under this section for a 
period exceeding forty years, and no evidence of indebtedness 
maturing more than forty years from the date of purchase shall 
be purchased under this section. Such loans shall bear interest 
at a rate not less than a rate determined by the Secretary of 
the Treasury taking into consideration the current average 
market yield on outstanding marketable obligations of the 
United States with remaining periods to maturity comparable to 
the average maturities of such loans, adjusted to the nearest 
one-eight of 1 per centum, less not exceed one-half of 1 per 
centum per annum.
    [(c) There are hereby authorized to be appropriated such 
sums as may be necessary to carry out the provisions of this 
section and section 202, except that annual appropriations for 
the purposes of purchasing evidence of indebtedness, paying 
interest supplement to or on behalf of private entities making 
and participating in loans, and guaranteeing loans, shall not 
exceed $170,000,000 for the fiscal year ending June 30, 1966, 
and for each fiscal year thereafter through the fiscal year 
ending June 30, 1973, and shall not exceed $55,000,000 for the 
fiscal year ending June 30, 1974, and shall not exceed 
$75,000,000 for the fiscal years ending June 30, 1975, and June 
30, 1976, and shall not exceed $18,750,000 for the period 
beginning July 1, 1976, and ending September 30, 1976, and 
shall not exceed $200,000,000 per fiscal year for the fiscal 
years ending September 30, 1977, September 30, 1978, September 
30, 1979, September 30, 1980, and September 30, 1981, and not 
to exceed $46,500,000 for the fiscal year ending September 30, 
1982.
    [(e) The Secretary shall prescribe regulations which will 
assure that appropriate local governmental authorities have 
been given a reasonable opportunity to review and comment upon 
proposed projects under this section.

                         [loans and guarantees

    [Sec. 202. [42 U.S.C. 3142] (a)(1) The Secretary is 
authorized to aid in financing, within a redevelopment area, 
the purchase or development of land and facilities (including 
machinery and equipment) for industrial or commercial usage, 
including the construction of new buildings, the rehabilitation 
of abandoned or unoccupied buildings, and the alteration, 
conversion, or enlargement of existing buildings by (A) 
purchasing evidences of indebtedness, (B) making loans (which 
for purposes of this section shall include participation in 
loans). (C) guaranteeing loans made to private borrowers by 
private lending institutions, for any of the purposes referred 
to in this paragraph upon application of such institution and 
upon such terms and conditions as the Secretary may prescribe, 
except that no such guarantee shall at any time exceed 90 per 
centum of the amount of the outstanding unpaid balance of such 
loan.
    [(2) In addition to any other financial assistance under 
this title, the Secretary is authorized, in the case of any 
loan guarantee under authority of paragraph (1) of this 
section, to pay to or on behalf of the private borrower an 
amount sufficient to reduce up to 4 percentage points the 
interest paid by such borrower on such guaranteed loans. No 
payment under this paragraph shall result in the interest rate 
being paid by a borrower on such a guaranteed loan being less 
than the rate of interest for such a loan if it were made under 
section 201 of this Act. Payment made to or on behalf of such 
borrower shall be made no less often than annually.
    [(3) The Secretary is authorized to aid in financing any 
industrial or commercial activity within a redevelopment area 
by (A) making working capital loans, (B) guaranteeing working 
capital loans made to private borrowers by private lending 
institutions upon application of such institution and upon such 
terms and conditions as the Secretary may prescribe, except 
that no such guarantee shall at any time exceed 90 per centum 
of the amount of the outstanding unpaid balance of such loan, 
(C) guaranteeing rental payment of leases for buildings and 
equipment, except that no such guarantee shall exceed 90 per 
centum of the remaining rental payments required by the lease, 
(D) paying those debts with respect to which a lien against 
property has been legally obtained (including the refinancing 
of any such debt) in any case where the Secretary determines 
that it is essential to do so in order to save employment in a 
designated area, to avoid a significant rise in unemployment, 
or to create new or increased employment.
    [(b) Financial assistance under this section shall be on 
such terms and conditions as the Secretary determines, subject, 
however, to the following restrictions and limitations:
    [(1) Such financial assistance shall not be extended to 
assist establishments relocating from one area to another or to 
assist subcontractors whose purpose is to divest, or whose 
economic success is dependent upon divesting, other contractors 
or subcontractors of contracts theretofore customarily 
performed by them: Provided, however, That such limitations 
shall not be construed to prohibit assistance for the expansion 
of an existing business entity through the establishment of a 
new branch, affiliate, or subsidiary of such entity if the 
Secretary finds that the establishment of such branch, 
affiliate, or subsidiary will not result in increase in 
unemployment of the area of original location or in any other 
area where such entity conducts business operations, unless the 
Secretary has reason to believe that such branch, affiliate, or 
subsidiary is being established with the intention of closing 
down the operations of the existing business entity in the area 
of its original location or in any other area where it conducts 
such operations.
    [(2) Such assistance shall be extended only to applicants, 
both private and public (including Indian tribes), which have 
been approved for such assistance by an agency or 
instrumentality of the State or political subdivision thereof 
in which the project to be financed is located, and which 
agency or instrumentality is directly concerned with problems 
of economic development in such State or subdivision.
    [(3) The project for which financial assistance is sought 
must be reasonably calculated to provide more than a temporary 
alleviation of unemployment or underemployment within the 
redevelopment area wherein it is or will be located.
    [(4) No loan or guarantee shall be extended hereunder 
unless the financial assistance applied for is not otherwise 
available from private lenders or from other Federal agencies 
on terms which in the opinion of the Secretary will permit the 
accomplishment of the project.
    [(5) The Secretary shall not make any loan without a 
participation unless he determines that the loan cannot be made 
on a participation basis.
    [(6) No evidence of indebtedness shall be purchased and no 
loans shall be made or guaranteed unless it is determined that 
there is reasonable assurance of repayment.
    [(7) Subject to section 701(5) of this Act, no loan or 
guarantee, including renewals or extension thereof, may be made 
hereunder for a period exceeding twenty-five years and no 
evidences of indebtedness maturing more than twenty-five years 
from date of purchase may be purchased hereunder: Provided, 
That the foregoing restrictions on maturities shall not apply 
to securities or obligations received by the Secretary as a 
claimant in bankruptcy or equitable reorganization or as a 
creditor in other proceedings attendant upon insolvency of the 
obligor.
    [(8) Loans made and evidences if indebtedness purchased 
under this section shall bear interest at a rate not less than 
a rate determined by the Secretary of the Treasury taking into 
consideration the current average market yield on outstanding 
marketable obligations of the United States with remaining 
periods to maturity comparable to the average maturities of 
such loans, adjusted to the nearest one-eighth of 1 per centum, 
plus additional charge, if any, toward covering other costs of 
the program as the Secretary may determine to be consistent 
with its purpose.
    [(9) Loan assistance (other than for a working capital 
loan) shall not exceed 65 per centum of the aggregate cost to 
the applicant (excluding all other Federal aid in connection 
with the undertaking) of acquiring or developing land and 
facilities (including machinery and equipment), and of 
constructing, altering, converting, rehabilitating, or 
enlarging the building or buildings of the particular project, 
and shall, among others, be on the condition that--
            [(A) other funds are available in an amount which 
        which together with the assistance provided hereunder, 
        shall be sufficient to pay such aggregate cost;
            [(B) not less than 15 per centum of such aggregate 
        cost be supplied as equity capital or as a loan 
        repayable in no shorter period of time and at no faster 
        an amortization rate than the Federal financial 
        assistance extended under this section is being repaid, 
        and if such a loan is secured, its security shall be 
        subordinate and inferior to the lien or liens securing 
        such Federal financial assistance: Provided, however, 
        That, except in projects involving financial 
        participation by Indian tribes, not less than 5 per 
        centum of such aggregate cost shall be supplied by the 
        State or any agency, instrumentality, or political 
        subdivision thereof, or by a community or area 
        organization which is nongovernmental in character, 
        unless the Secretary shall determine in accordance with 
        the objective standards promulgated by regulation that 
        all or part of such funds are not reasonably available 
        to the project because of the economic distress of the 
        area or for other good cause, in which case he may 
        waive the requirement of this provision to the extent 
        of such unavailability, and allow the funds required by 
        this subsection to be supplied by the applicant or by 
        such other non-Federal source as may reasonably be 
        available to the project;
            [(C) to the extent the Secretary finds such action 
        necessary to encourage financial participation in a 
        particular project by other lenders and investors, and 
        except as otherwise provided in subparagraph (B), any 
        Federal financial assistance extended under this 
        section may be repayable only after other loans made in 
        connection with such project have been repaid in full, 
        and the security, if any, for such Federal financial 
        assistance may be subordinate and inferior to the lien 
        or liens securing other loans made in connection with 
        the same project.
    [(10) No such assistance shall be extended unless there 
shall be submitted to and approval of the Secretary an overall 
program for the economic development of the area and a finding 
by the State, or any agency, instrumentality, or local 
political subdivision thereof, that the project for which 
financial assistance is sought is consistent with such program: 
Provided, That nothing in this Act shall authorize financial 
assistance for any project prohibited by laws of the State or 
local political subdivision in which the project would be 
located, nor prevent the Secretary from requiring such periodic 
revisions of previously approved overall economic development 
programs as he may deem appropriate.

                      [economic development funds

    [Sec. 203. [42 U.S.C. 3143] Funds obtained by the Secretary 
under section 201; loan funds obtained under section 403, and 
collections and repayments received under this Act, shall be 
deposited in an economic development revolving fund (hereunder 
referred to as the ``fund''), which is hereby established in 
the Treasury of the United States, and which shall be available 
to the Secretary for the purpose of extending financial 
assistance under sections 201, 202, and 403, and for the 
payment of all obligations and expenditures arising in 
connection therewith. There shall also be credited to the fund 
such funds as have been paid into the area development fund or 
may be received from obligations outstanding under the Area 
Redevelopment Act. The fund shall pay into miscellaneous 
receipts of the Treasury, following the close of each fiscal 
year, interest on the amount of loans outstanding under this 
Act computed in such manner and at such rate as may be 
determined by the Secretary of the Treasury taking into 
consideration the current average market yield on outstanding 
marketable obligations of the United States with remaining 
periods to maturity comparable to the average maturities of 
such loans, adjusted to the nearest one-eighth of 1 per centum, 
during the month of September preceding the fiscal year in 
which the loans were made.

                    [redevelopment area loan program

    [Sec. 204. [42 U.S.C. 3144] (a) If a redevelopment area 
prepares a plan for the redevelopment of the area or a part 
thereof and submits such plan to the Secretary for his approval 
and the Secretary approves such plan, the Secretary is 
authorized to make an interest free loan to such area for the 
purpose of carrying out such plan. Such plan may include 
industrial land assembly, land banking, acquisition of surplus 
government property, acquisition of industrial sites including 
acquisition of abandoned properties with redevelopment 
potential, real estate development including redevelopment and 
rehabilitation of historical buildings for industrial and 
commercial use, rehabilitation and renovation of usable empty 
factory buildings for industrial and commercial use, and other 
investments which will accelerate recycling of land and 
facilities for job creating economic activity. Any such 
interest free loan shall be made on condition (1) that the area 
will use such interest free loan to makes loans to carry out 
such plan, (2) the repayment of any loan made by the area from 
such interest free loan shall be placed by such area in a 
revolving fund available solely for the making of other loans 
by the area, upon approval by the Secretary, for the economic 
redevelopment of the area. Any such interest free loan shall be 
repaid to the United States by a redevelopment area whenever 
such area has its designation as a redevelopment area 
terminated or modified under section 402 of this Act. This 
section shall not apply to any redevelopment area whose 
designation as a redevelopment area would be terminated or 
modified under section 402 of this Act except for the 
provisions of section 2 of the Act entitled ``An Act to amend 
the Public Works and Economic Development Act of 1965 to extend 
the authorizations for title I through IV through fiscal year 
1971'', approved July 6, 1970 (P.L. 91-304).
    [(b)(1) Each eligible recipient which receives assistance 
under this section shall annually during the period such 
assistance continues make a full and complete report to the 
Secretary, in such manner as the Secretary shall prescribe, and 
such report shall contain an evaluation of the effectiveness of 
the economic assistance provided under this section in meeting 
the need it was designed to alleviate and the purposes of this 
section.
    [(2) The Secretary shall include in the annual report 
pursuant to section 707 of this Act a consolidated report with 
his recommendations, if any, on the assistance authorized under 
this section, in a form which he deems appropriate.
    [(c) There is authorized to be appropriated to carry out 
this section not to exceed $125,000,000 per fiscal year for the 
fiscal years ending September 30, 1977, and September 30, 1979, 
September 30, 1980, and September 30, 1981.

      [TITLE III--TECHNICAL ASSISTANCE, RESEARCH, AND INFORMATION

    [Sec. 301. [42 U.S.C. 3151] (a) In carrying out his duties 
under this Act the Secretary is authorized to provide technical 
assistance which would be useful in alleviating or preventing 
conditions of excessive unemployment or underemployment (1) to 
areas which he has designated as redevelopment areas under this 
Act, and (2) to other areas which he finds have substantial 
need for such assistance. Such assistance shall include project 
planning and feasibility studies, management and operational 
assistance, and studies evaluating the needs of, and 
development potentialities for, economic growth of such areas. 
Such assistance may be provided by the Secretary through 
members of his staff, through the payment of funds authorized 
for this section to other departments or agencies of the 
Federal Government, through the employment of private 
individuals, partnerships, firms, corporations, or suitable 
institutions, under contracts entered into for such purposes, 
or through grants-in-aid to appropriate public or private 
nonprofit State, area, district, or local organizations. The 
Secretary, in his discretion, may require the repayment of 
assistance provided under this subsection and prescribe the 
terms and conditions of such repayment.
    [(b) The Secretary is authorized to make grants to defray 
not to exceed 75 per centum of the administrative expenses of 
organizations which he determines to be qualified to receive 
grants-in-aid under subsection (a) hereof, except that in the 
case of a grant under this subsection to an Indian tribe the 
Secretary is authorized to defray up to 100 per centum of such 
expenses. In determining the amount of the non-Federal share of 
such costs or expenses, the Secretary shall give due 
consideration to all contributions both in cash and in kind, 
fairly evaluated, including but not limited to space, 
equipment, and services. Where practicable grants-in-aid 
authorized under this subsection shall be used in conjunction 
with other available planning grants, such as urban planning 
grants, authorized under the Housing Act of 1954, as amended, 
and highway planning and research grants authorized under the 
Federal-aid Highway Act of 1962, to assure adequate and 
effective planning and economical use of funds.
    [(c) To assist in the long-range accomplishment of the 
purposes of this Act, the Secretary, in cooperation with other 
agencies having similar functions, shall establish and conduct 
a continuing program of study, training, and research to (A) 
assist in determining the causes of unemployment, 
underemployment, underdevelopment, and chronic depression in 
the various areas and regions of the Nation, (B) assist in the 
formulation and implementation of national, State, and local 
programs which will raise income levels and otherwise produce 
solutions to the problems resulting from these conditions, and 
(C) assist in providing the personnel needs to conduct such 
programs. The program of study, training, and research may be 
conducted by the Secretary through members of his staff, 
through payment of funds authorized for this section to other 
departments or agencies of the Federal Government, or through 
the employment of private individuals, partnerships, firms, 
corporations, or suitable institutions, under contracts entered 
into for such purposes, or through grants to such individuals, 
organizations, or institutions, or through conferences, and 
similar meetings organized for such purposes. The Secretary 
shall make available to interested individuals and 
organizations the results of such research. The Secretary shall 
include in his annual report under section 707 a detailed 
statement concerning the study and research conducted under 
this section together with his findings resulting therefrom and 
his recommendations for legislative and other action.
    [(d) The Secretary shall aid redevelopment areas and other 
areas by furnishing to interested individuals, communities, 
industries, and enterprises within such areas any assistance, 
technical information, market research, or other forms of 
assistance, information, or advice which would be useful in 
alleviating or preventing conditions of excessive unemployment 
or underemployment within such areas. The Secretary may furnish 
the procurement divisions of the various departments, agencies, 
and other instrumentalities of the Federal Government with a 
list containing the names and addresses of business firms which 
are located in redevelopment areas and which are desirous of 
obtaining Government contracts for the furnishing of supplies 
or services, and designating the supplies and services such 
firms are engaged in providing.
    [(e) The Secretary shall establish an independent study 
board consisting of governmental and on governmental experts to 
investigate the effects of Government procurement, scientific, 
technical, and other related policies, upon regional economic 
development. Any Federal officer or employee may, with the 
consent of the head of the department or agency in which he is 
employed, serve as a member of such board, but shall receive no 
additional compensation for such service. Other members of such 
board may be compensated in accordance with the provisions of 
section 701(10). The board shall report its findings, together 
with recommendations for the better coordination of such 
policies, to the Secretary, who shall transmit the report to 
the Congress not later than two years after the enactment of 
this Act.
    [(f) The Secretary is authorized to make grants, enter into 
contracts or otherwise provide funds for any demonstration 
project within a redevelopment area or areas which he 
determines is designed to foster regional productivity and 
growth, prevent out migration, and otherwise carry out the 
purposes of this Act.
    [Sec. 302. [42 U.S.C. 3151a] (a) The Secretary is 
authorized, upon application of any State, or city, or other 
political subdivision of a State, or sub-State planning and 
development organization (including a redevelopment area or an 
economic development district), to make direct grants to such 
State, city, or other political subdivision, or organization to 
pay up to 80 per centum of the cost for economic development 
planning. The planning for cities, other political 
subdivisions, and sub-State planning and development 
organizations (including redevelopment areas and economic 
development districts) assisted under this section shall 
include systematic efforts to reduce unemployment and increase 
incomes. Such planning shall be a continuous process involving 
public officials and private citizens in analyzing local 
economics, defining development goals, determining project 
opportunities, and formulating and implementing a development 
program. Any overall State economic development plan prepared 
with assistance under this section shall be prepared 
cooperatively by the State, its political subdivisions, and the 
economic development districts located in whole or in part 
within such State. Upon completion of any such plan, the State 
shall certify to the Secretary (1) that in the preparation of 
such State plan, the local and economic development district 
plans were considered and, to the fullest extent possible, such 
State plan is consistent with such local and economic 
development district plans, and (2) that such State plan is 
consistent, with such local and economic development district 
plans, or, if such State plan is not consistent with such local 
and economic development district plans, all of the 
inconsistencies of the State plan with the local and economic 
development district plans, and the justification for each of 
these inconsistencies. Any overall State economic development 
planning shall be a part of a comprehensive planning process 
that shall consider the provision of public works to stimulate 
and channel development, economic opportunities and choices for 
individuals; to support sound land use, to enhance and protect 
the environment including the conservation and preservation of 
open spaces and environmental quality, to provide public 
services, and to balance physical and human resources through 
the management and control of physical development. The 
assistance available under this section may be provided in 
addition to assistance available under section 301(b) of this 
Act but shall not supplant such assistance and shall be 
available to develop an annual inventory of specific 
recommendations for assistance under section 304 of this Act. 
Each State receiving assistance under this subsection shall 
submit to the Secretary an annual report on the planning 
process assisted under this subsection.
    [(b) In addition, the Secretary is authorized to assist 
economic development districts in--
            [(1) providing technical assistance (other than by 
        grant) to local governments within the district; and
            [(2) carrying out any review procedure required 
        pursuant to title IV of the Intergovernmental 
        Cooperation Act of 1968, if such district has been 
        designated as the agency to conduct such review.
    [(c) The planning assistance authorized under this title 
shall be used in accordance with the review procedure required 
pursuant to title IV of the Intergovernmental Cooperation Act 
of 1968 and shall be used in conjunction with any other 
available Federal planning assistance to assure adequate and 
effective planning and economical use of funds.
    [Sec. 303. [42 U.S.C. 3152] (a) There is hereby authorized 
to be appropriated $25,000,000 annually for the purposes of 
Sections 301 and 302 of this Act, for the fiscal year ending 
June 30, 1966, and for each fiscal year thereafter through the 
fiscal year ending June 30, 1969, $50,000,000 per fiscal year 
for the fiscal years ending June 30, 1970, June 30, 1971, June 
30, 1972, and June 30, 1973, and $35,000,000 for the fiscal 
year ending June 30, 1974 and $75,000,000 per fiscal year for 
the fiscal years ending June 30, 1975, and June 30, 1976, 
$18,750,000 for the period beginning July 1, 1976, and ending 
September 30, 1976, and $75,000,000 per fiscal year for the 
fiscal years ending September 30, 1977, September 30, 1978, 
September 30, 1979, September 30, 1980, and September 30, 1981, 
and not to exceed $35,500,000 for the fiscal year ending 
September 30, 1982.
    [(b) Not to exceed $15,000,000 in each of the fiscal years 
ending June 30, 1975, and June 30, 1976. September 30, 1977, 
September 30, 1978, September 30, 1979, September 30, 1980, 
September 30, 1981, and September 30, 1982, of the sums 
authorized to be appropriated under subsection (a) of this 
section, shall be available to make grants to States.

                     [supplemental and basic grants

    [Sec. 304. [42 U.S.C. 3153] (a) There are hereby authorized 
to be appropriated $35,000,000 for the fiscal year ending June 
30, 1975, and $75,000,000 for the fiscal year ending June 30, 
1976, $18,750,000 for the period beginning July 1, 1976, and 
ending September 30, 1976, and $75,000,000 per fiscal year for 
the fiscal year ending September 30, 1977, September 30, 1978, 
September 30, 1979, September 30, 1980, and September 30, 1981, 
for apportionment by the Secretary among the States for the 
purpose of supplementing or making grants and loans authorized 
under titles I, II, III (other than planning grants authorized 
under sections 301(b) and 302), IV, and IX of this Act. Such 
funds shall be apportioned among the States in the ratio which 
all grants made under title I of this Act since August 26, 
1965, in each State bear to the total of all such grants made 
in all the States since August 26, 1965.
    [(b) Funds apportioned to a State pursuant to subsection 
(a) shall be available for supplementing or making such grants 
or loans if the State makes a contribution of at least 25 per 
centum of the amount of such grant or loan in each case. Funds 
apportioned to a State under subsection (a) shall remain 
available to such State until obligated or expended by it.
    [(c) Funds apportioned to a State pursuant to this section 
may be used by the Governor in supplementing grants or loans 
with respect to any project or assistance authorized under 
title I, II, III (other than planning grants authorized under 
sections 301(b) and 302), IV, or IX of this Act, and approved 
by the Secretary after July 1, 1974. Such grants may be used to 
reduce or waive the non-Federal share otherwise required by 
this Act, subject to the requirements of subsection (b) of this 
section.
    [(d) In the case of any grant or loan for which all or any 
portion of the basic Federal contribution to the project under 
this Act is proposed to be made with funds available under this 
section, no such Federal contribution shall be made until the 
Secretary of Commerce certifies that such project meets all of 
the requirements of this Act and could be approved for Federal 
contributions under this Act if funds were available under this 
Act (other than section 509) for such project. Funds may be 
provided for projects in a State under this section only if the 
Secretary determines that the level of Federal and State 
financial assistance under this Act (other than section 509) 
and under Acts other than this Act, for the same type of 
projects in the State, will not be diminished in order to 
substitute funds authorized by this section.
    [(e) After June 30, 1975, funds apportioned to a State 
pursuant to this section shall be used by the Governor in a 
manner which is consistent with the State planning process 
assisted under section 302 of this Act, if such planning 
process has been established in such State.

                [TITLE IV--AREA AND DISTRICT ELIGIBILITY

                      [Part A--Redevelopment Areas

                           [area eligibility

    [Sec. 401. [42 U.S.C. 3161] (a) The Secretary shall 
designate as ``redevelopment areas''--
    [(1) those areas in which he determines, upon the basis of 
standards generally comparable with those set forth in 
paragraphs (A) and (B), that there has existed substantial and 
persistent unemployment for an extended period of time and 
those areas in which he determines there has been a substantial 
loss of population due to lack of employment opportunity. There 
shall be included among the areas so designated any area--
                    [(A) where the Secretary of Labor finds 
                that the current rate of unemployment, as 
                determined by appropriate annual statistics for 
                the most recent twelve consecutive months, is 6 
                per centum or more and has averaged at least 6 
                per centum for the qualifying time periods 
                specified in paragraph (B); and
                    [(B) where the Secretary of Labor finds 
                that the annual average rate of unemployment 
                has been at least--
                            [(i) 50 per centum above the 
                        national average for three of the 
                        preceding four calendar years, or
                            [(ii) 75 per centum above the 
                        national average for two of the 
                        preceding three calendar years, or
                            [(iii) 100 per centum above the 
                        national average for one of the 
                        preceding two calendar years.
        The Secretary of Labor shall find the facts and provide 
        the data to be used by the Secretary in making the 
        determinations required by this subsection;
            [(2) those additional areas which have a median 
        family income not in excess of 50 per centum of the 
        national median, as determined by the most recent 
        available statistics for such areas;
            [(3) those additional Federal or State Indian 
        reservations or trust or restricted Indian-owned land 
        areas which the Secretary, after consultation with the 
        Secretary of the Interior or an appropriate State 
        agency, determines manifest the greatest degree of 
        economic distress on the basis of unemployment and 
        income statistics and other appropriate evidence of 
        economic underdevelopment; Provided, however, That 
        uninhabited Federal or State Indian reservations or 
        trust or restricted Indian-owned land areas may be 
        designated where such designation would permit 
        assistance to Indian tribes, with a direct beneficial 
        effect on the economic well-being of Indians;
            [(4) upon request of such areas, those additional 
        areas in which the Secretary determines that the loss, 
        removal, curtailment, or closing of a major source of 
        employment has caused within three years prior to, or 
        threatens to cause within three years after, the date 
        of the request an unusual and abrupt rise in 
        unemployment of such magnitude that the unemployment 
        rate for the area at the time of the request exceeds 
        the national average, or can reasonably be expected to 
        exceed the national average, by 50 per centum or more 
        unless assistance is provided. Notwithstanding any 
        provision of subsection 401(b) to the contrary, an area 
        designated under the authority of this paragraph may be 
        given a reasonable time after designation in which to 
        submit the overall economic development program 
        required by subsection 202(b)(10) of this Act;
            [(5) notwithstanding any provision of this section 
        to the contrary, those additional areas which were 
        designated redevelopment areas under the Area 
        Redevelopment Act on or after March 1, 1965; Provided, 
        however, That the continued eligibility of such areas 
        after the first annual review of eligibility conducted 
        in accordance with section 402 of this Act shall be 
        dependent on their qualification for designation under 
        the standards of economic need set forth in subsections 
        (a)(1) through (a)(4) of this section;
            [(6) those communities or neighborhoods (defined 
        without regard to political or other subdivisions or 
        boundaries) which the Secretary determines have one of 
        the following conditions:
                    [(A) a large concentration of low-income 
                persons;
                    [(B) rural areas having substantial 
                outmigration;
                    [(C) substantial unemployment; or
                    [(D) an actual or threatened abrupt rise of 
                unemployment due to the closing or curtailment 
                of a major source of employment.
        No redevelopment area established under this paragraph 
        shall be subject to the requirements of subparagrphs 
        (A) and (C) of paragraph (1) of subsection (a) of 
        section 101 of this Act. No redevelopment area 
        established under this paragraph shall be eligible to 
        meet the requirements of section 403(a)(1)(B) of this 
        Act;
            [(7) those areas where per capita employment has 
        declined significantly during the next preceding ten-
        year period for which appropriate statistics are 
        available;
            [(8) those areas which the Secretary of Labor 
        determines, on the basis of average annual available 
        unemployment statistics, to have experienced 
        unemployment which is both substantial and above the 
        national average for the preceding twenty-four months;
            [(9) those areas which the Secretary determines 
        have demonstrated long-term economic deterioration.
        (b) The size and boundaries of redevelopment areas 
        shall be as determined by the Secretary: Provided, 
        however, That--
            [(1) no area shall be designated until it has an 
        approved overall economic development program in 
        accordance with subsection 202(b)(10) of this Act;
            [(2) any area which does not submit an acceptable 
        overall economic development program in accordance with 
        subsection 202(b)(10) of this Act within the reasonable 
        time after notification of eligibility for designation, 
        shall not thereafter be designated prior to the next 
        annual review of eligibility in accordance with section 
        402 of this Act;
            [(3) no area shall be designated which does not 
        have a population of at least one thousand five hundred 
        persons, except that this limitation shall not apply to 
        any area designated under section 401 (a)(3) or (a)(6); 
        and.
            [(4) except for areas designated under subsections 
        (a)(3), (a)(4) and (a)(6) hereof, no area shall be 
        designated which is smaller than a ``labor area'' (as 
        defined by the Secretary of Labor), a country, or 
        municipality with a population of over twenty-five 
        thousand, whichever in the opinion of the Secretary is 
        appropriate. Nothing in this subsection shall prevent 
        any municipality, designated as a redevelopment area or 
        eligible to be designated as a redevelopment area, from 
        combining with any other community having mutual 
        economic interests and transportation and marketing 
        patterns for the purposes of such designation.
    [(c) Upon the request of the Secretary, the Secretary of 
Labor, the Secretary of Agriculture, the Secretary of the 
Interior, and such other heads of agencies as may be 
appropriate are authorized to conduct such special studies, 
obtain such information,and compile and furnish to the 
Secretary such data as the Secretary may deem necessary or 
proper to enable him to make the determinations provided for in 
this section. The Secretary shall reimburse when appropriate, 
out of any funds appropriated to carry out the purposes of this 
Act, the foregoing officers for any expenditures incurred by 
them under this section.
    [(d) If a State has no area designated under the preceding 
subsections of this section as a redevelopment area, the 
Secretary shall designate as a redevelopment area that area in 
such State which in his opinion most nearly qualifies under 
such preceding subsections. An area so designated shall have 
its eligibility terminated in accordance with the provisions of 
section 402 if any other area within the same State 
subsequently has become qualified or been designated under any 
other subsection of this section other than subsection (a)(6) 
as of the time of the annual review prescribed by section 402: 
Provided, That the Secretary shall not terminate any 
designation of an area in a State as a redevelopment area if to 
do so would result in such State having no redevelopment area.
    [(e) As used in this Act, the term ``redevelopment area'' 
refers to any area within the United States which has been 
designated by the Secretary as a redevelopment area.

                   [annual review of area eligibility

    [Sec. 402. [42 U.S.C. 3162] The Secretary shall conduct an 
annual review of all areas designated in accordance with 
section 401 of this Act, and on the basis of such reviews shall 
terminate or modify such designation whenever such an area no 
longer satisfies the designation requirements of section 401, 
but in no event shall such designation of an area be terminated 
prior to the expiration of the third year after the date such 
area was so designated. No area previously designated shall 
retain its designated status unless it maintains a currently 
approved overall economic development program in accordance 
with subsection 202(b)(10). No termination of eligibility shall 
(1) be made without thirty days' prior notification to the area 
concerned, (2) affect the validity of any application filed, or 
contract or undertaking entered into, with respect to such area 
pursuant to this Act prior to such termination, (3) prevent any 
such area from again being designated a redevelopment area 
under section 401 of this Act if the Secretary determines it to 
be eligible under such section, or (4) be made in the case of 
any designated area where the Secretary determines that an 
improvement in the unemployment rate of a designated area is 
primarily the result of increased employment in occupations not 
likely to be permanent, The Secretary shall keep the 
departments and agencies of the Federal Government, and 
interested State or local agencies, advised at all times of any 
changes made hereunder with respect to the classification of 
any area.

                [Part B--Economic Development Districts

    [Sec. 403. [42 U.S.C. 3171] (a) In order that economic 
development projects of broader geographic significance may be 
planned and carried out, the Secretary is authorized--
            [(1) to designate appropriate ``economic 
        development districts'' within the United States with 
        the concurrence of the States in which such districts 
        will be wholly or partially located, if--
                    [(A) the proposed district is of sufficient 
                size or population, and contains sufficient 
                resources, to foster economic development on a 
                scale involving more than a single 
                redevelopment area;
                    [(B) the proposed district contains at 
                least one redevelopment area;
                    [(C) the proposed district contains one or 
                more redevelopment areas or economic 
                development centers identified in an approved 
                district overall economic development program 
                as having sufficient size and potential to 
                foster the economic growth activities necessary 
                to alleviate the distress of the redevelopment 
                areas within the district; and
                    [(D) the proposed district has a district 
                overall economic development program which 
                includes adequate land use and transportation 
                planning and contains a specific program for 
                district cooperation, self-help, and public 
                investment and is approved by the State or 
                States affected and by the Secretary;
            [(2) to designate as ``economic development 
        centers,'' in accordance with such regulations as he 
        shall prescribe, such areas as he may deem appropriate, 
        if--
                    [(A) the proposed center has been 
                identified and included in an approved district 
                overall economic development program and 
                recommended by the State or States affected for 
                such special designation:
                    [(B) the proposed center is geographically 
                and economically so related to the district 
                that its economic growth may reasonably be 
                expected to contribute significantly to the 
                alleviation of distress in the redevelopment 
                areas of the district; and
                    [(C) the proposed center does not have a 
                population in excess of two hundred and fifty 
                thousand according to the last preceding 
                Federal census.
            [(3) to provide financial assistance in accordance 
        with the criteria of sections 101, 201, and 202 of this 
        Act, except as may be herein otherwise provided, for 
        projects in economic development centers designed under 
        subsection (a)(2) above, if--
                    [(A) the project will further the 
                objectives of the overall economic development 
                program of the district in which it is to be 
                located:
                    [(B) the project will enhance the economic 
                growth potential of the district or result in 
                additional long-term employment opportunities 
                commensurate with the amount of Federal 
                financial assistance requested; and
                    [(C) the amount of Federal financial 
                assistance requested is reasonably related to 
                the size, population, and economic needs of the 
                district;
            [(4) subject to the 20 per centum non-Federal share 
        required for any project by subsection 101(c) of this 
        Act, to increase the amount of grant assistance 
        authorized by section 101 for projects within 
        redevelopment areas (designated under section 401), by 
        an amount not to exceed 10 per centum of the aggregate 
        cost of any such project, in accordance with such 
        regulations as he shall prescribe if--
                    [(A) the redevelopment area is situated 
                within a designated economic development 
                district and is actively participating in the 
                economic development activities of the 
                district; and
                    [(B) the project is consistent with an 
                approved district overall economic development 
                program.
    [(b) In designating economic development districts and 
approving district overall economic development programs under 
subsection (a) of this section, the Secretary is authorized, 
under regulations prescribed by him--
            [(1) to invite the several States to draw up 
        proposed district boundaries and to identify potential 
        economic development centers;
            [(2) to cooperate with the several States--
                    [(A) in sponsoring and assisting district 
                economic planning and development groups, and
                    [(B) in assisting such district groups to 
                formulate district overall economic development 
                programs;
            [(3) to encourage participation by appropriate 
        local governmental authorities in such economic 
        development districts.
    [(c) The Secretary shall by regulation prescribe standards 
for the termination or modification of economic development 
districts and economic development centers designated under the 
authority of this section.
    [(d) As used in this Act, the term ``economic development 
district'' refers to any area within the United States composed 
of cooperating redevelopment areas and, where appropriate, 
designated economic development centers and neighboring 
counties or communities, which has been designated by the 
Secretary as an economic development district.
    [(e) As used in this Act, the term ``economic development 
center'' refers to any area within the United States which has 
been identified as an economic development center in an 
approved district overall economic development program and 
which has been designated by the Secretary as eligible for 
financial assistance under sections 101, 201, and 202 of this 
Act in accordance with the provisions of this section.
    [(f) For the purpose of this Act the term ``local 
government'' means any city, county, town, parish, village, or 
other general-purpose political subdivision of a State.
    [(g) There is hereby authorized to be appropriated not to 
exceed $50,000,000 for the fiscal year ending June 30, 1967, 
and for each fiscal year thereafter through the fiscal year 
ending June 30, 1973, and not to exceed $45,000,000 per fiscal 
year for the fiscal years ending June 30, 1974, June 30, 1975, 
and June 30, 1976, not to exceed $11,250,000 for the period 
beginning July 1, 1976, and ending September 30, 1976, and not 
to exceed $45,000,000 per fiscal year for the fiscal years 
ending September 30, 1977, September 30, 1978, September 30, 
1979, September 30, 1980, September 30, 1981, for financial 
assistance extended under the provisions of subsection (a)(3) 
and (A)(4) hereof.
    [(h) In order to allow time for adequate and careful 
district planning, subsection (g) of this section shall not be 
effective until one year from the date of enactment.
    [(i) Each economic development district designated by the 
Secretary under this section shall as soon as practicable after 
the date of enactment of this section or after its designation 
provide that a copy of the district overall economic 
development program be furnished to the appropriate regional 
commission established under title V of this Act, if any part 
of such proposed district is within such a region or to the 
Appalachian Regional Commission established under the 
Appalachian Regional Development Act of 1965, if any part of 
such proposed district is within the Appalachian region.
    [(j) The Secretary is authorized to provide the financial 
assistance which is available to a redevelopment area under 
this Act to those parts of an economic development district 
which are not within a redevelopment area, when such assistance 
will be of a substantial direct benefit to a redevelopment area 
within such district. Such financial assistance shall be 
provided in the same manner and to the same extent as is 
provided in this Act for a redevelopment area, except that 
nothing in this subsection shall be construed to permit such 
parts to receive the increase in the amount of grant assistance 
authorized in paragraph (4) of subsection (a) of this section.

                  [Part C--Indian Economic Development

    [Sec. 404. [42 U.S.C. 3172] In order to assure a minimum 
Federal commitment to alleviate economic distress of Indians, 
in addition to their eligibility for assistance with funds 
authorized under other parts of this Act, there are authorized 
to be appropriated not to exceed $25,000,000 per fiscal year 
for the fiscal years ending June 30, 1975, and June 30, 1976, 
not to exceed $6,250,000 for the period beginning July 1, 1976, 
and ending September 30, 1976, and not to exceed $25,000,000 
per fiscal year for the fiscal years ending September 30, 1977, 
September 30, 1978, September 30, 1979, September 30, 1980, 
September 30, 1981, for the purpose of providing assistance 
under this Act to Indian tribes. Such sums shall be in addition 
to all other funds made available to Indian tribes under this 
Act.

               [Part D--Unemployment Rate Determinations

    [Sec. 405. [42 U.S.C. 3173] Whenever any provision of this 
Act requires the Secretary of Labor, or the Secretary, to make 
any determination or other finding relating to the unemployment 
rate of any area, information regarding such unemployment rate 
may be furnished either by the Federal Government or by a 
State. Unemployment rates furnished by a State shall be 
accepted by the Secretary unless he determines that such rates 
are inaccurate. The Secretary shall provide technical 
assistance to State and local governments in the calculation of 
unemployment rates to insure their validity and 
standardization.

                       [TITLE VI--ADMINISTRATION

    [Sec. 601. [42 U.S.C. 3201] (a) The Secretary shall 
administer this Act and, with the assistance of an Assistant 
Secretary of Commerce, in addition to those already provided 
for, shall supervise and direct the Administrator created 
herein, and coordinate the Federal cochairmen appointed 
heretofore or subsequent to this Act. The Assistant Secretary 
created by this section shall be appointed by the President by 
and with the advice and consent of the Senate. Such Assistant 
Secretary shall perform such functions as the Secretary may 
prescribe. There shall be appointed by the President, by and 
with the advice and consent of the Senate, an Administrator for 
Economic Development who shall be compensated at the rate 
provided for level V of the Federal Executive Salary Schedule 
who shall perform such duties as are assigned by the Secretary.
    [(b) Paragraph (12) of subsection (d) of section 303 of the 
Federal Executive Salary Act of 1964 is amended by striking out 
``(4)'' and inserting in lieu thereof ``(5)''.
    [(c) Subsection (e) of section 303 of the Federal Executive 
Salary Act of 1964 is amended by adding at the end thereof the 
following new paragraph:
    [``(100) Administrator for Economic Development.''

          [advisory committee on regional economic development

    [Sec. 602. [42 U.S.C. 3202] The Secretary shall appoint a 
National Public Advisory Committee on Regional Economic 
Development which shall consist of twenty-five members and 
shall be composed of representatives of labor, management, 
agriculture, State and local governments, and the public in 
general. From the members appointed to such Committee the 
Secretary shall designate a Chairman. Such Committee, or any 
duly established subcommittee thereof, shall from time to time 
make recommendations to the Secretary relative to the carrying 
out of his duties under this Act. Such Committee shall hold not 
less than two meetings during each calendar year.

             [consultation with other persons and agencies

    [ Sec. 603. [42 U.S.C. 3203] (a) The Secretary is 
authorized from time to time to call together and confer with 
any persons, including representatives of labor, management, 
agriculture, and government, who can assist in meeting the 
problems of area and regional unemployment or underemployment.
    [(b) The Secretary may make provisions for such 
consultation with interested departments and agencies as he may 
deem appropriate in the performance of the functions vested in 
him by this Act.

              [administration, operation, and maintenance

    [Sec. 604. [42 U.S.C. 3204] No Federal assistance shall be 
approved under this Act unless the Secretary is satisfied that 
the project for which Federal assistance is granted will be 
properly and efficiently administered, operated, and 
maintained.

                       [TITLE VII--MISCELLANEOUS

                          [powers of secretary

    [Sec. 701. [42 U.S.C. 3211] In performing his duties under 
this Act, the Secretary is authorized to--
            [(1) adopt, alter, and use a seal, which shall be 
        judicially noticed;
            [(2) hold such hearings, sit and act at such times 
        and places, and take such testimony, as he may deem 
        advisable.
            [(3) request directly from any executive 
        department, bureau, agency, board, commission, office, 
        independent establishment, or instrumentality 
        information, suggestions, estimates, and statistics 
        needed to carry out the purposes of this Act; and each 
        department, bureau, agency, board, commission, office, 
        establishment or instrumentality is authorized to 
        furnish such information, suggestions, estimates, and 
        statistics directly to the Secretary;
            [(4) under regulations prescribed by him, assign or 
        sell at public or private sale, or otherwise dispose of 
        for cash or credit, in his discretion and upon such 
        terms and conditions and for such consideration as he 
        shall determine to be reasonable, any evidence of debt, 
        contract, claim, personal property, or security 
        assigned to or held by him in connection with loans 
        made or evidences of indebtedness purchased under this 
        Act, and collect or compromise all obligations assigned 
        to or held by him in connection with such loans or 
        evidences of indebtedness until such time as such 
        obligations may be referred to the Attorney General for 
        suit or collection;
            [(5) further extend the maturity of or renew any 
        loan made or evidence of indebtedness purchased under 
        this Act, beyond the periods stated in such loan or 
        evidence of indebtedness or in this Act, for additional 
        periods not to exceed ten years, if such extension or 
        renewal will aid in the orderly liquidation of such 
        loan or evidence of indebtedness;
            [(6) deal with, complete, renovate, improve, 
        modernize, insure, rent, or sell for cash or credit, 
        upon such terms and conditions and for such 
        consideration as he shall determine to be reasonable, 
        any real or personal property conveyed to, or otherwise 
        acquired by him in connection with loans made or 
        evidences of indebtedness purchased under this Act;
            [(7) pursue to final collection, by way of 
        compromise or other administrative action, prior to 
        reference to the Attorney General, all claims against 
        third parties assigned to him in connection with loans 
        made or evidences of indebtedness purchased under this 
        Act. This shall include authority to obtain deficiency 
        judgments or otherwise in the case of mortgages 
        assigned to the Secretary. Section 3709 of the Revised 
        Statutes, as amended (41 U.S.C. 5), shall not apply to 
        any contract of hazard insurance or to any purchase or 
        contract for services or supplies on account of 
        property obtained by the Secretary as a result of loans 
        made or evidences of indebtedness purchased under this 
        Act if the premium therefor or the amount thereof does 
        not exceed $1,000. The power to convey and to execute, 
        in the name of the Secretary, deeds of conveyance, 
        deeds of release, assignments and satisfactions of 
        mortgages, and any other written instrument relating to 
        real or personal property or any interest therein 
        acquired by the Secretary pursuant to the provisions of 
        this Act may be exercised by the Secretary or by any 
        officer or agent appointed by him for that purpose 
        without the execution of any express delegation of 
        power or power of attorney;
            [(8) acquire, in any lawful manner, any property 
        (real, personal, or mixed, tangible or intangible), 
        whenever deemed necessary or appropriate to the conduct 
        of the activities authorized in sections 201, 202, 301, 
        403, and 503 of this Act;
            [(9) in addition to any powers, functions, 
        privileges, and immunities otherwise vested in him, 
        take any and all actions, including the procurement of 
        the services of attorneys by contract, determined by 
        him to be necessary or desirable in making, purchasing, 
        servicing, compromising, modifying, liquidating, or 
        otherwise administratively dealing with or realizing on 
        loans made or evidences of indebtedness purchased under 
        this Act;
            [(10) employ experts and consultants or 
        organizations therefor as authorized by section 15 of 
        the Administrative Expenses Act of 1946 (5 U.S.C. 55a), 
        compensate individuals so employed at rates not in 
        excess of $100 per diem, including travel time, and 
        allow them, while away from their homes or regular 
        places of business, travel expenses (including per diem 
        in lieu of subsistence) as authorized by section 5 of 
        such Act (5 U.S.C. 73b-2) for persons in the Government 
        service employed intermittently, while so employed: 
        Provided, however, That contracts for such employment 
        may be renewed annually;
            [(11) sue and be sued in any court of record of a 
        State having general jurisdiction or in any United 
        States district court, and jurisdiction is conferred 
        upon such district court to determine such 
        controversies without regard to the amount in 
        controversy; but no attachment, injunction, 
        garnishment, or other similar process, mesne or final, 
        shall be issued against the Secretary or his property. 
        Nothing herein shall be construed to except the 
        activities under this Act from the application of 
        sections 507(b) and 2679 of title 28, United States 
        Code, and of section 367 of the Revised Statutes (5 
        U.S.C. 316); and
            [(12) establish such rules, regulations and 
        procedures as he may deem appropriate in carrying out 
        the provisions of this Act.

                   [prevention of unfair competition

    [Sec. 702. [42 U.S.C. 3212] No financial assistance under 
this Act shall be extended to any project when the result would 
be to increase the production of goods, materials, or 
commodities, or the availability of services or facilities, 
when there is not sufficient demand for such goods, materials, 
commodities, services, or facilities, to employ the efficient 
capacity of existing competitive commercial or industrial 
enterprises.

                          [savings provisions

    [Sec. 703. [42 U.S.C. 3213] (a) No suit, action, or other 
proceedings lawfully commenced by or against the Administrator 
or any other officer of the Area Redevelopment Administration 
in his official capacity or in relation to the discharge of his 
official duties under the Area Redevelopment Act, shall abate 
by reason of the taking effect of the provisions of this Act, 
but the court may, on motion or supplemental petition filed at 
any time within twelve months after such taking effect, showing 
a necessity for the survival of such suit, action, or other 
proceeding to obtain a settlement of the questions involved, 
allow the same to be maintained by or against the Secretary or 
the Administrator or such other officer of the Department of 
Commerce as may be appropriate.
    [(b) Except as may be otherwise expressly provided in this 
Act, all powers and authorities conferred by this Act shall be 
cumulative and additional to and not in derogation of any 
powers and authorities otherwise existing. All rules, 
regulations, orders, authorizations, delegations, or other 
actions duly issued, made, or taken by or pursuant to 
applicable law, prior to the effective date of this Act, by any 
agency, officer, or office pertaining to any functions, powers, 
and duties under the Area Redevelopment Act shall continue in 
full force and effect after the effective date of this Act 
until modified or rescinded by the Secretary or such other 
officer of the Department of Commerce as, in accordance with 
applicable law, may be appropriate.

 [transfer of functions, effective date, and limitations on assistance

    [Sec. 704. [42 U.S.C. 3214] (a) The functions, powers, 
duties, and authorities and the assets, funds, contracts, 
loans, liabilities, commitments, authorizations, allocations, 
and records which are vested in or authorized to be transferred 
to the Secretary of the Treasury under section 29(b) of the 
Area Redevelopment Act, and all functions, powers, duties, and 
authorities under section 29(c) of the Area Redevelopment Act 
are hereby vested in the Secretary.
    [(b) The President may designate a person to act as 
Administrator under this Act until the office is filled as 
provided in this Act or until the expiration of the first 
period of sixty days following the effective date of this Act, 
which shall first occur. While so acting such person shall 
receive compensation at the rate provided by this Act for such 
office.
    [(c) The provisions of this Act shall take effect upon 
enactment unless herein explicitly otherwise provided.
    [(d) Notwithstanding any requirements of this Act relating 
to the eligibility of areas, projects for which applications 
are pending before the Area Redevelopment Administration on the 
effective date of this Act shall for a period of one year 
thereafter be eligible for consideration by the Secretary for 
such assistance under the provisions of this Act as he may 
determine to be appropriate.
    [(e) No financial assistance authorized under this Act 
shall be used to finance the cost of facilities for the 
generation, transmission, or distribution of electrical energy, 
or to finance the cost of facilities for the production or 
transmission of gas (natural, manufactured, or mixed), except 
(1) for projects specifically authorized by Congress, and (2) 
for local projects for industrial parks and industrial or 
commercial areas in communities where the electrical energy or 
gas supply is, or is threatened to be interrupted or curtailed 
resulting in a loss of jobs, or where the purpose is to save 
jobs, or create new jobs, on condition that (A) the Secretary 
finds that project financing is not available from private 
lenders or other Federal agencies on terms which, in the 
opinion of the Secretary, will permit accomplishment of the 
project, and (B) the State or Federal regulatory body 
regulating such service determines that the facility to be 
financed will not compete with an existing public utility 
rendering such a service to the public at rates or charges 
subject to regulation by such State or Federal regulatory body, 
or if there is a determination of competition, the State or 
Federal regulatory body must make a determination that in the 
area to be served by the facility for which the financial 
assistance is to be extended there is a need for an increase in 
such service (taking into consideration reasonably foreseeable 
future needs) which the existing public utility is not able to 
meet through its existing facilities or through an expansion 
which it agrees to undertake. Not more than $7,000,000 
approximated to carry out titles I and II of this Act may be 
expended annually for such projects.

                             [separability

    [Sec. 705. [42 U.S.C. 3215] Notwithstanding any other 
evidence of the intent of Congress, it is hereby declared to be 
the intent of Congress that if any provision of this Act or the 
application thereof to any persons or circumstances shall be 
adjudged by any court of competent jurisdiction to be invalid 
such judgment shall not affect, impair, or invalidate the 
remainder of this Act or its application to other persons and 
circumstances, but shall be confined in its operation to the 
provision of this Act or the application thereof to the persons 
and circumstances directly involved in the controversy in which 
such judgment shall have been rendered.

                          [application of act

    [Sec. 706. [42 U.S.C. 3216] As used in this Act, the terms 
``State'', ``States'', and ``United States'' include the 
several States, the District of Columbia, the Commonwealth of 
Puerto Rico, the Virgin Islands, Guam, and American Samoa.

                             [annual report

    [Sec. 707. [42 U.S.C. 3217] The Secretary shall make a 
comprehensive and detailed annual report to the Congress of his 
operations under this Act for each fiscal year beginning with 
the fiscal year ending June 30, 1966. Such report shall be 
printed and shall be transmitted to the Congress not later than 
April 1 of the year following the fiscal year with respect to 
which such report is made.

                        [use of other facilities

    [Sec. 708. [42 U.S.C. 3218] (a) The Secretary is authorized 
to delegate to the heads of other departments and agencies of 
the Federal Government any of the Secretary's functions, 
powers, and duties this Act as he may deem appropriate, and to 
authorize the redelegation of such functions, powers, and 
duties by the heads of such departments and agencies.
    [(b) Departments and agencies of the Federal Government 
shall exercise their powers, duties, and functions in such 
manner as will assist in carrying out the objectives of this 
Act.
    [(c) Funds authorized to be appropriated under this Act may 
be transferred between departments and agencies of the 
Government, if such funds are used for the purposes for which 
they are specifically authorized and appropriated.

                             [appropriation

    [Sec. 709. [42 U.S.C. 3219] There are hereby authorized to 
be appropriated such sums as may be necessary to carry out 
those provisions of the Act for which specific authority for 
appropriations is not otherwise provided in this Act, except 
that there are hereby authorized to be appropriated to carry 
out those provisions of the Act for which specific authority 
for appropriations is not otherwise provided in this Act not to 
exceed $25,000,000 for the fiscal year ending September 30, 
1982. Appropriations authorized under this Act shall remain 
available until expended unless otherwise provided by 
appropriations Acts.

                               [penalties

    [Sec. 710. [42 U.S.C. 3220] (a) Whoever makes any statement 
knowing it to be false, or whoever will fully overvalues any 
security, for the purpose of obtaining for himself or for any 
applicant any financial assistance under section 101, 201, or 
403 or any extension thereof by renewal, deferment or action, 
or otherwise, or the acceptance, release, or substitution of 
security therefor, or for the purpose of influencing in any way 
the action of the Secretary or for the purpose of obtaining 
money, property, or anything of value, under this Act, shall be 
punished by a fine of not more than $10,000 or by imprisonment 
for not more than five years, or both.
    [(b) Whoever, being connected in any capacity with the 
Secretary, in the administration of this Act (1) embezzles, 
abstracts, purloins, or willfully misapplies any moneys, funds, 
securities, or other things of value, whether belonging to him 
or pledged or otherwise entrusted to him, or (2) with intent to 
defraud the Secretary or any other body politic or corporate, 
or any individual, or to deceive any officer, auditor, or 
examiner, makes any false entry in any book, report or 
statement of or to the Secretary, or without being duly 
authorized draws any orders of issues, puts forth, or assigns 
any note, debenture, bond, or other obligation, or draft, bill 
of exchange, mortgage, judgment, or decree thereof, or (3) with 
intent to defraud participates or shares in or receives 
directly or indirectly any money, profit, property, or benefit 
through any transaction, loan, grant, commission, contract, or 
any other act of the Secretary, or (4) gives any unauthorized 
information concerning any future action of plan of the 
Secretary which might affect the value of securities, or having 
such knowledge invests or speculates, directly or indirectly, 
in the securities or property of any company or corporation 
receiving loans, grants, or other assistance from the 
Secretary, shall be punished by a fine of not more than $10,000 
or by imprisonment for not more than five years, or both.

         [employment of expediters and administrative employees

    [Sec. 711. [42 U.S.C. 3221] No financial assistance shall 
be extended by the Secretary under section 101, 201, 202, or 
403 to any business enterprise unless the owners, partners, or 
officers of such business enterprise (1) certify to the 
Secretary the names of any attorneys, agents, and other persons 
engaged by or on behalf of such business enterprise for the 
purpose of expediting applications made to the Secretary for 
assistance of any sort, under this Act, and the fees paid or to 
be paid to any such person; and (2) execute an agreement 
binding such business enterprise, for a period of two years 
after such assistance is rendered by the Secretary to such 
business enterprise, to refrain from employing tendering any 
office or employment to, or retaining for professional 
services, any person who, on the date such assistance or any 
part thereof was rendered, or within one year prior thereto, 
shall have served as an officer, attorney, agent, or employee, 
occupying a position or engaging in activities which the 
Secretary shall have determined involve discretion with respect 
to the granting of assistance under this Act.
    [Sec. 712.]

                        [record of applications

    [Sec. 713. [42 U.S.C. 3223] The Secretary shall maintain as 
a permanent part of the records of the Department of Commerce a 
list of applications approved for financial assistance under 
section 101, 201, 202, or 403, which shall be kept available 
for public inspection during the regular business hours of the 
Department of Commerce. The following information shall be 
posted in such list as soon as each application is approved; 
(1) the name of the applicant and, in the case of corporate 
applications, the names of the officers and directors thereof, 
(2) the amount and duration of the loan or grant for which 
application is made, (3) the purposes for which the proceeds of 
the loan or grant are to be used, and (4) a general description 
of the security offered in the case of a loan.

                           [records and audit

    [Sec. 714. [42 U.S.C. 3224] (a) Each recipient of 
assistance under this Act shall keep such records as the 
Secretary shall prescribe, including records which fully 
disclose the amount and the disposition by such recipient of 
the proceeds of such assistance the total cost of the project 
or undertaking in connection with which such assistance is 
given or used, and the amount and nature of that portion of the 
cost of the project or undertaking supplied by other sources, 
and such other records as will facilitate an effective audit.
    [(b) The Secretary and the Comptroller General of the 
United States, or any of their duly authorized representatives, 
shall have access for the purpose of audit and examination to 
any books, documents, papers, and records of the recipient that 
are pertinent to assistance received under this Act.

                         [conforming amendment

    [Sec. 715. [42 U.S.C. 3225] All benefits heretofore 
specially made available (and not subsequently revoked) under 
other Federal programs to persons or to public or private 
organizations, corporations, or entities in areas designated by 
the Secretary as ``redevelopment areas'' under section 5 of the 
Area Redevelopment Act, are hereby also extended, insofar as 
practicable, to such areas as may be designated as 
``redevelopment areas'' or ``economic development centers'' 
under the authority of section 401 or 403 of this Act: 
Provided, however, That this section shall not be construed as 
limiting such administrative discretion as may have been 
conferred under any other law.
    [Sec. 716. [42 U.S.C. 3226] All financial and technical 
assistance authorized under this Act shall be in addition to 
any Federal assistance previously authorized, and no provision 
hereof shall be construed as authorizing or permitting any 
reduction or diminution in the proportional amount of Federal 
assistance to which any State or other entity eligible under 
this Act would otherwise be entitled under the provisions of 
any other Act.]
``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
    (a) Short Title.--This Act may be cited as the ``Public 
Works and Economic Development Act of 1965''.
    (b) Table of Contents.--The table of contents of this Act 
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and declarations.
Sec. 3. Definitions.
TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND COORDINATION

Sec. 101. Establishment of economic development partnerships.
Sec. 102. Cooperation of Federal agencies.
Sec. 103. Coordination.
       TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

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

Sec. 301. Eligibility of areas.
Sec. 302. Comprehensive economic development strategies.
                TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS

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

Sec. 501. Assistant Secretary for Economic Development.
Sec. 502. Economic development information clearinghouse.
Sec. 503. Consultation with other persons and agencies.
Sec. 504. Administration, operation, and maintenance.
Sec. 505. Businesses desiring Federal contracts.
Sec. 506. Review of university centers.
                        TITLE VI--MISCELLANEOUS

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

Sec. 701. General authorization of appropriations.
Sec. 702. Authorization of appropriations for defense conversion 
                            activities.
Sec. 703. Authorization of appropriations for disaster economic 
                            recovery activities.
SEC. 2. FINDINGS AND DECLARATIONS.
    (a) Findings.--Congress finds that--
            (1) while the economy of the United States is 
        undergoing a sustained period of economic growth 
        resulting in low unemployment and increasing incomes, 
        there continue to be areas suffering economic distress 
        in the form of high unemployment, low incomes, 
        underemployment, and outmigration as well as areas 
        facing sudden economic dislocations due to industrial 
        restructuring and relocation, defense base closures and 
        procurement cutbacks, certain Federal actions 
        (including environmental requirements that result in 
        the removal of economic activities from a locality), 
        and natural disasters;
            (2) as the economy of the United States continues 
        to grow, those distressed areas contain significant 
        human and infrastructure resources that are underused;
            (3) expanding international trade and the 
        increasing pace of technological innovation offer both 
        a challenge and an opportunity to the distressed 
        communities of the United States;
            (4) while economic development is an inherently 
        local process, the Federal Government should work in 
        partnership with public and private local, regional, 
        and State organizations to ensure that existing 
        resources are not wasted and all Americans have an 
        opportunity to participate in the economic growth of 
        the United States;
            (5) in order to avoid wasteful duplication of 
        effort and to limit the burden on distressed 
        communities, Federal, State, and local economic 
        development activities should be better planned and 
        coordinated and Federal program requirements should be 
        simplified and made more consistent;
            (6) the goal of Federal economic development 
        activities should be to work in partnership with local, 
        regional, and State public and private organizations to 
        support the development of private sector businesses 
        and jobs in distressed communities; and
            (7) Federal economic development efforts will be 
        more effective if they are coordinated with, and build 
        upon, the trade and technology programs of the United 
        States.
    (b) Declarations.--Congress declares that, in order to 
promote a strong and growing economy throughout the United 
States--
            (1) assistance under this Act should be made 
        available to both rural and urban distressed 
        communities;
            (2) local communities should work in partnership 
        with neighboring communities, the States, and the 
        Federal Government to increase their capacity to 
        develop and implement comprehensive economic 
        development strategies to address existing, or deter 
        impending, economic distress; and
            (3) whether suffering from long-term distress or a 
        sudden dislocation, distressed communities should be 
        encouraged to take advantage of the development 
        opportunities afforded by technological innovation and 
        expanding and newly opened global markets.
SEC. 3. DEFINITIONS.
    In this Act:
            (1) Comprehensive economic development strategy.--
        The term ``comprehensive economic development 
        strategy'' means a comprehensive economic development 
        strategy approved by the Secretary under section 302.
            (2) Department.--The term ``Department'' means the 
        Department of Commerce.
            (3) Economic development district.--
                    (A) In general.--The term ``economic 
                development district'' means any area in the 
                United States that--
                            (i) is composed of areas described 
                        in section 301(a) and, to the extent 
                        appropriate, neighboring counties or 
                        communities; and
                            (ii) has been designated by the 
                        Secretary as an economic development 
                        district under section 401.
                    (B) Inclusion.--The term ``economic 
                development district'' includes any economic 
                development district designated by the 
                Secretary under section 403 (as in effect on 
                the day before the effective date of the 
                Economic Development Administration Reform Act 
                of 1998).
            (4) Eligible recipient.--
                    (A) In general.--The term ``eligible 
                recipient'' means--
                            (i) an area described in section 
                        301(a);
                            (ii) an economic development 
                        district;
                            (iii) an Indian tribe;
                            (iv) a State;
                            (v) a city or other political 
                        subdivision of a State or a consortium 
                        of political subdivisions;
                            (vi) an institution of higher 
                        education or a consortium of 
                        institutions of higher education; or
                            (vii) a public or private nonprofit 
                        organization or association acting in 
                        cooperation with officials of a 
                        political subdivision of a State.
                    (B) Training, research, and technical 
                assistance grants.--In the case of grants under 
                section 207, the term ``eligible recipient'' 
                also includes private individuals and for-
                profit organizations.
            (5) Federal agency.--The term ``Federal agency'' 
        means a department, agency, or instrumentality of the 
        United States.
            (6) Grant.--The term ``grant'' includes a 
        cooperative agreement (within the meaning of chapter 63 
        of title 31, United States Code).
            (7) Indian tribe.--The term ``Indian tribe'' means 
        an Indian or Alaska Native tribe, band, nation, pueblo, 
        village, or community that the Secretary of the 
        Interior recognizes as an Indian tribe under section 
        104 of the Federally Recognized Indian Tribe List Act 
        of 1994 (25 U.S.C. 479a-1).
            (8) Secretary.--The term ``Secretary'' means the 
        Secretary of Commerce.
            (9) State.--The term ``State'' means a State, the 
        District of Columbia, the Commonwealth of Puerto Rico, 
        the Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the 
        Republic of the Marshall Islands, the Federated States 
        of Micronesia, and the Republic of Palau.
            (10) United states.--The term ``United States'' 
        means all of the States.

 TITLE I_ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND COORDINATION

SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT PARTNERSHIPS.
    (a) In General.--In providing assistance under this title, 
the Secretary shall cooperate with States and other entities to 
ensure that, consistent with national objectives, Federal 
programs are compatible with and further the objectives of 
State, regional, and local economic development plans and 
comprehensive economic development strategies.
    (b) Technical Assistance.--The Secretary may provide such 
technical assistance to States, political subdivisions of 
States, sub-State regional organizations (including 
organizations that cross State boundaries), and multi-State 
regional organizations as the Secretary determines is 
appropriate to--
            (1) alleviate economic distress;
            (2) encourage and support public-private 
        partnerships for the formation and improvement of 
        economic development strategies that sustain and 
        promote economic development across the United States; 
        and
            (3) promote investment in infrastructure and 
        technological capacity to keep pace with the changing 
        global economy.
    (c) Intergovernmental Review.--The Secretary shall 
promulgate regulations to ensure that appropriate State and 
local government agencies have been given a reasonable 
opportunity to review and comment on proposed projects under 
this title that the Secretary determines may have a significant 
direct impact on the economy of the area.
    (d) Cooperation Agreements.--
            (1) In general.--The Secretary may enter into a 
        cooperation agreement with any 2 or more adjoining 
        States, or an organization of any 2 or more adjoining 
        States, in support of effective economic development.
            (2) Participation.--Each cooperation agreement 
        shall provide for suitable participation by other 
        governmental and nongovernmental entities that are 
        representative of significant interests in and 
        perspectives on economic development in an area.
SEC. 102. COOPERATION OF FEDERAL AGENCIES.
    In accordance with applicable laws and subject to the 
availability of appropriations, each Federal agency shall 
exercise its powers, duties and functions, and shall cooperate 
with the Secretary, in such manner as will assist the Secretary 
in carrying out this title.
SEC. 103. COORDINATION.
    The Secretary shall coordinate activities relating to the 
preparation and implementation of comprehensive economic 
development strategies under this Act with Federal agencies 
carrying out other Federal programs, States, economic 
development districts, and other appropriate planning and 
development organizations.

       TITLE II_GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

SEC. 201. GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT.
    (a) In General.--On the application of an eligible 
recipient, the Secretary may make grants for--
            (1) acquisition or development of land and 
        improvements for use for a public works, public 
        service, or development facility; and
            (2) acquisition, design and engineering, 
        construction, rehabilitation, alteration, expansion, or 
        improvement of such a facility, including related 
        machinery and equipment.
    (b) Criteria for Grant.--The Secretary may make a grant 
under this section only if the Secretary determines that--
            (1) the project for which the grant is applied for 
        will, directly or indirectly--
                    (A) improve the opportunities, in the area 
                where the project is or will be located, for 
                the successful establishment or expansion of 
                industrial or commercial plants or facilities;
                    (B) assist in the creation of additional 
                long-term employment opportunities in the area; 
                or
                    (C) primarily benefit the long-term 
                unemployed and members of low-income families;
            (2) the project for which the grant is applied for 
        will fulfill a pressing need of the area, or a part of 
        the area, in which the project is or will be located; 
        and
            (3) the area for which the project is to be carried 
        out has a comprehensive economic development strategy 
        and the project is consistent with the strategy.
    (c) Maximum Assistance for Each State.--Not more than 15 
percent of the amounts made available to carry out this section 
may be expended in any 1 State.
SEC. 202. BASE CLOSINGS AND REALIGNMENTS.
    Notwithstanding any other provision of law, the Secretary 
may provide to an eligible recipient any assistance available 
under this title for a project to be carried out on a military 
or Department of Energy installation that is closed or 
scheduled for closure or realignment without requiring that the 
eligible recipient have title to the property or a leasehold 
interest in the property for any specified term.
SEC. 203. GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE EXPENSES.
    (a) In General.--On the application of an eligible 
recipient, the Secretary may make grants to pay the costs of 
economic development planning and the administrative expenses 
of organizations that carry out the planning.
    (b) Planning Process.--Planning assisted under this title 
shall be a continuous process involving public officials and 
private citizens in--
            (1) analyzing local economies;
            (2) defining economic development goals;
            (3) determining project opportunities; and
            (4) formulating and implementing an economic 
        development program that includes systematic efforts to 
        reduce unemployment and increase incomes.
    (c) Use of Planning Assistance.--Planning assistance under 
this title shall be used in conjunction with any other 
available Federal planning assistance to ensure adequate and 
effective planning and economical use of funds.
    (d) State Plans.--
            (1) Development.--Any State plan developed with 
        assistance under this section shall be developed 
        cooperatively by the State, political subdivisions of 
        the State, and the economic development districts 
        located wholly or partially in the State.
            (2) Comprehensive economic development strategy.--
        As a condition of receipt of assistance for a State 
        plan under this subsection, the State shall have or 
        develop a comprehensive economic development strategy.
            (3) Certification to the secretary.--On completion 
        of a State plan developed with assistance under this 
        section, the State shall--
                    (A) certify to the Secretary that, in the 
                development of the State plan, local and 
                economic development district plans were 
                considered and, to the maximum extent 
                practicable, the State plan is consistent with 
                the local and economic development district 
                plans; and
                    (B) identify any inconsistencies between 
                the State plan and the local and economic 
                development district plans and provide a 
                justification for each inconsistency.
            (4) Comprehensive planning process.--Any overall 
        State economic development planning assisted under this 
        section shall be a part of a comprehensive planning 
        process that shall consider the provision of public 
        works to--
                    (A) promote economic development and 
                opportunity;
                    (B) foster effective transportation access;
                    (C) enhance and protect the environment; 
                and
                    (D) balance resources through the sound 
                management of physical development.
            (5) Report to secretary.--Each State that receives 
        assistance for the development of a plan under this 
        subsection shall submit to the Secretary an annual 
        report on the planning process assisted under this 
        subsection.
SEC. 204. COST SHARING.
    (a) Federal Share.--Subject to section 205, the amount of a 
grant for a project under this title shall not exceed 50 
percent of the cost of the project.
    (b) Non-Federal Share.--In determining the amount of the 
non-Federal share of the cost of a project, the Secretary may 
provide credit toward the non-Federal share for all 
contributions both in cash and in-kind, fairly evaluated, 
including contributions of space, equipment, and services.
SEC. 205. SUPPLEMENTARY GRANTS.
    (a) Definition of Designated Federal Grant Program.--In 
this section, the term ``designated Federal grant program'' 
means any Federal grant program that--
            (1) provides assistance in the construction or 
        equipping of public works, public service, or 
        development facilities;
            (2) the Secretary designates as eligible for an 
        allocation of funds under this section; and
            (3) assists projects that are--
                    (A) eligible for assistance under this 
                title; and
                    (B) consistent with a comprehensive 
                economic development strategy.
    (b) Supplementary Grants.--
            (1) In general.--On the application of an eligible 
        recipient, the Secretary may make a supplementary grant 
        for a project for which the eligible recipient is 
        eligible but, because of the eligible recipient's 
        economic situation, for which the eligible recipient 
        cannot provide the required non-Federal share.
            (2) Purposes of grants.--Supplementary grants under 
        paragraph (1) may be made for purposes that shall 
        include enabling eligible recipients to use--
                    (A) designated Federal grant programs; and
                    (B) direct grants authorized under this 
                title.
    (c) Requirements Applicable to Supplementary Grants.--
            (1) Amount of supplementary grants.--Subject to 
        paragraph (4), the amount of a supplementary grant 
        under this title for a project shall not exceed the 
        applicable percentage of the cost of the project 
        established by regulations promulgated by the 
        Secretary, except that the non-Federal share of the 
        cost of a project (including assumptions of debt) shall 
        not be less than 20 percent.
            (2) Form of supplementary grants.--In accordance 
        with such regulations as the Secretary may promulgate, 
        the Secretary shall make supplementary grants by 
        increasing the amounts of grants authorized under this 
        title or by the payment of funds made available under 
        this Act to the heads of the Federal agencies 
        responsible for carrying out the applicable Federal 
        programs.
            (3) Federal share limitations specified in other 
        laws.--Notwithstanding any requirement as to the amount 
        or source of non-Federal funds that may be applicable 
        to a Federal program, funds provided under this section 
        may be used to increase the Federal share for specific 
        projects under the program that are carried out in 
        areas described in section 301(a) above the Federal 
        share of the cost of the project authorized by the law 
        governing the program.
            (4) Lower non-federal share.--
                    (A) Indian tribes.--In the case of a grant 
                to an Indian tribe, the Secretary may reduce 
                the non-Federal share below the percentage 
                specified in paragraph (1) or may waive the 
                non-Federal share.
                    (B) Certain states, political subdivisions, 
                and nonprofit organizations.--In the case of a 
                grant to a State, or a political subdivision of 
                a State, that the Secretary determines has 
                exhausted its effective taxing and borrowing 
                capacity, or in the case of a grant to a 
                nonprofit organization that the Secretary 
                determines has exhausted its effective 
                borrowing capacity, the Secretary may reduce 
                the non-Federal share below the percentage 
                specified in paragraph (1).
SEC. 206. REGULATIONS ON RELATIVE NEEDS AND ALLOCATIONS.
    In promulgating rules, regulations, and procedures for 
assistance under this title, the Secretary shall ensure that--
            (1) the relative needs of eligible areas are given 
        adequate consideration by the Secretary, as determined 
        based on, among other relevant factors--
                    (A) the severity of the rates of 
                unemployment in the eligible areas and the 
                duration of the unemployment;
                    (B) the income levels and the extent of 
                underemployment in eligible areas; and
                    (C) the outmigration of population from 
                eligible areas and the extent to which the 
                outmigration is causing economic injury in the 
                eligible areas; and
            (2) allocations of assistance under this title are 
        prioritized to ensure that the level of economic 
        distress of an area, rather than a preference for a 
        geographic area or a specific type of economic 
        distress, is the primary factor in allocating the 
        assistance.
SEC. 207. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL ASSISTANCE.
    (a) In General.--
            (1) Grants.--On the application of an eligible 
        recipient, the Secretary may make grants for training, 
        research, and technical assistance, including grants 
        for program evaluation and economic impact analyses, 
        that would be useful in alleviating or preventing 
        conditions of excessive unemployment or 
        underemployment.
            (2) Types of assistance.--Grants under paragraph 
        (1) may be used for--
                    (A) project planning and feasibility 
                studies;
                    (B) demonstrations of innovative activities 
                or strategic economic development investments;
                    (C) management and operational assistance;
                    (D) establishment of university centers;
                    (E) establishment of business outreach 
                centers;
                    (F) studies evaluating the needs of, and 
                development potential for, economic growth of 
                areas that the Secretary determines have 
                substantial need for the assistance; and
                    (G) other activities determined by the 
                Secretary to be appropriate.
            (3) Reduction or waiver of non-federal share.--In 
        the case of a project assisted under this section, the 
        Secretary may reduce or waive the non-Federal share, 
        without regard to section 204 or 205, if the Secretary 
        finds that the project is not feasible without, and 
        merits, such a reduction or waiver.
    (b) Methods of Provision of Assistance.--In providing 
research and technical assistance under this section, the 
Secretary, in addition to making grants under subsection (a), 
may--
            (1) provide research and technical assistance 
        through officers or employees of the Department;
            (2) pay funds made available to carry out this 
        section to Federal agencies; or
            (3) employ private individuals, partnerships, 
        businesses, corporations, or appropriate institutions 
        under contracts entered into for that purpose.
SEC. 208. PREVENTION OF UNFAIR COMPETITION.
    No financial assistance under this Act shall be extended to 
any project when the result would be to increase the production 
of goods, materials, or commodities, or the availability of 
services or facilities, when there is not sufficient demand for 
such goods, materials, commodities, services, or facilities, to 
employ the efficient capacity of existing competitive 
commercial or industrial enterprises.
SEC. 209. GRANTS FOR ECONOMIC ADJUSTMENT.
    (a) In General.--On the application of an eligible 
recipient, the Secretary may make grants for development of 
public facilities, public services, business development 
(including funding of a revolving loan fund), planning, 
technical assistance, training, and any other assistance to 
alleviate long-term economic deterioration and sudden and 
severe economic dislocation and further the economic adjustment 
objectives of this title.
    (b) Criteria for Assistance.--The Secretary may provide 
assistance under this section only if the Secretary determines 
that--
            (1) the project will help the area to meet a 
        special need arising from--
                    (A) actual or threatened severe 
                unemployment; or
                    (B) economic adjustment problems resulting 
                from severe changes in economic conditions; and
            (2) the area for which a project is to be carried 
        out has a comprehensive economic development strategy 
        and the project is consistent with the strategy, except 
        that this paragraph shall not apply to planning 
        projects.
    (c) Particular Community Assistance.--Assistance under this 
section may include assistance provided for activities 
identified by communities, the economies of which are injured 
by--
            (1) military base closures or realignments, defense 
        contractor reductions in force, or Department of Energy 
        defense-related funding reductions, for help in 
        diversifying their economies through projects to be 
        carried out on Federal Government installations or 
        elsewhere in the communities;
            (2) disasters or emergencies, in areas with respect 
        to which a major disaster or emergency has been 
        declared under the Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act (42 U.S.C. 5121 et seq.), 
        for post-disaster economic recovery; or
            (3) international trade, for help in economic 
        restructuring of the communities.
    (d) Direct Expenditure or Redistribution by Recipient.--
            (1) In general.--Subject to paragraph (2), an 
        eligible recipient of a grant under this section may 
        directly expend the grant funds or may redistribute the 
        funds to public and private entities in the form of a 
        grant, loan, loan guarantee, payment to reduce interest 
        on a loan guarantee, or other appropriate assistance.
            (2) Limitation.--Under paragraph (1), an eligible 
        recipient may not provide any grant to a private for-
        profit entity.
SEC. 210. CHANGED PROJECT CIRCUMSTANCES.
    In any case in which a grant (including a supplementary 
grant described in section 205) has been made by the Secretary 
under this title (or made under this Act, as in effect on the 
day before the effective date of the Economic Development 
Administration Reform Act of 1998) for a project, and, after 
the grant has been made but before completion of the project, 
the purpose or scope of the project that was the basis of the 
grant is modified, the Secretary may approve the use of grant 
funds for the modified project if the Secretary determines 
that--
            (1) the modified project meets the requirements of 
        this title and is consistent with the comprehensive 
        economic development strategy submitted as part of the 
        application for the grant; and
            (2) the modifications are necessary to enhance 
        economic development in the area for which the project 
        is being carried out.
SEC. 211. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.
    In any case in which a grant (including a supplementary 
grant described in section 205) has been made by the Secretary 
under this title (or made under this Act, as in effect on the 
day before the effective date of the Economic Development 
Administration Reform Act of 1998) for a construction project, 
and, after the grant has been made but before completion of the 
project, the cost of the project based on the designs and 
specifications that was the basis of the grant has decreased 
because of decreases in costs--
            (1) the Secretary may approve the use of the excess 
        funds or a portion of the funds to improve the project; 
        and
            (2) any amount of excess funds remaining after 
        application of paragraph (1) shall be deposited in the 
        general fund of the Treasury.
SEC. 212. REPORTS BY RECIPIENTS.
    (a) In General.--Each recipient of assistance under this 
title shall submit reports to the Secretary at such intervals 
and in such manner as the Secretary shall require by 
regulation, except that no report shall be required to be 
submitted more than 10 years after the date of closeout of the 
assistance award.
    (b) Contents.--Each report shall contain an evaluation of 
the effectiveness of the economic assistance provided under 
this title in meeting the need that the assistance was designed 
to address and in meeting the objectives of this Act.
SEC. 213. PROHIBITION ON USE OF FUNDS FOR ATTORNEY'S AND CONSULTANT'S 
        FEES.
    Assistance made available under this title shall not be 
used directly or indirectly for an attorney's or consultant's 
fee incurred in connection with obtaining grants and contracts 
under this title.

  TITLE III_ELIGIBILITY; COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

SEC. 301. ELIGIBILITY OF AREAS.
    (a) In General.--For a project to be eligible for 
assistance under section 201 or 209, the project shall be 
located in an area that, on the date of submission of the 
application, meets 1 or more of the following criteria:
            (1) Low per capita income.--The area has a per 
        capita income of 80 percent or less of the national 
        average.
            (2) Unemployment rate above national average.--The 
        area has an unemployment rate that is, for the most 
        recent 24-month period for which data are available, at 
        least 1 percent greater than the national average 
        unemployment rate.
            (3) Unemployment or economic adjustment problems.--
        The area is an area that the Secretary determines has 
        experienced or is about to experience a special need 
        arising from actual or threatened severe unemployment 
        or economic adjustment problems resulting from severe 
        short-term or long-term changes in economic conditions.
    (b) Political Boundaries of Areas.--An area that meets 1 or 
more of the criteria of subsection (a), including a small area 
of poverty or high unemployment within a larger community in 
less economic distress, shall be eligible for assistance under 
section 201 or 209 without regard to political or other 
subdivisions or boundaries.
    (c) Documentation.--
            (1) In general.--A determination of eligibility 
        under subsection (a) shall be supported by the most 
        recent Federal data available, or, if no recent Federal 
        data is available, by the most recent data available 
        through the government of the State in which the area 
        is located.
            (2) Acceptance by secretary.--The documentation 
        shall be accepted by the Secretary unless the Secretary 
        determines that the documentation is inaccurate.
    (d) Prior Designations.--Any designation of a redevelopment 
area made before the effective date of the Economic Development 
Administration Reform Act of 1998 shall not be effective after 
that effective date.
SEC. 302. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.
    (a) In General.--The Secretary may provide assistance under 
section 201 or 209 (except for planning assistance under 
section 209) to an eligible recipient for a project only if the 
eligible recipient submits to the Secretary, as part of an 
application for the assistance--
            (1) an identification of the economic development 
        problems to be addressed using the assistance;
            (2) an identification of the past, present, and 
        projected future economic development investments in 
        the area receiving the assistance and public and 
        private participants and sources of funding for the 
        investments; and
            (3)(A) a comprehensive economic development 
        strategy for addressing the economic problems 
        identified under paragraph (1) in a manner that 
        promotes economic development and opportunity, fosters 
        effective transportation access, enhances and protects 
        the environment, and balances resources through sound 
        management of development; and
            (B) a description of how the strategy will solve 
        the problems.
    (b) Approval of Comprehensive Economic Development 
Strategy.--The Secretary shall approve a comprehensive economic 
development strategy that meets the requirements of subsection 
(a).
    (c) Approval of Other Plan.--The Secretary may accept as a 
comprehensive economic development strategy a satisfactory plan 
developed under another federally supported program.

                TITLE IV_ECONOMIC DEVELOPMENT DISTRICTS

SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS.
    (a) In General.--In order that economic development 
projects of broad geographic significance may be planned and 
carried out, the Secretary may designate appropriate economic 
development districts in the United States, with the 
concurrence of the States in which the districts will be wholly 
or partially located, if--
            (1) the proposed district is of sufficient size or 
        population, and contains sufficient resources, to 
        foster economic development on a scale involving more 
        than a single area described in section 301(a);
            (2) the proposed district contains at least 1 area 
        described in section 301(a); and
            (3) the proposed district has a comprehensive 
        economic development strategy that--
                    (A) contains a specific program for intra-
                district cooperation, self-help, and public 
                investment; and
                    (B) is approved by each affected State and 
                by the Secretary.
    (b) Authorities.--The Secretary may, under regulations 
promulgated by the Secretary--
            (1) invite the States to determine boundaries for 
        proposed economic development districts;
            (2) cooperate with the States--
                    (A) in sponsoring and assisting district 
                economic planning and economic development 
                groups; and
                    (B) in assisting the district groups in 
                formulating comprehensive economic development 
                strategies for districts; and
            (3) encourage participation by appropriate local 
        government entities in the economic development 
        districts.
SEC. 402. TERMINATION OR MODIFICATION OF ECONOMIC DEVELOPMENT 
        DISTRICTS.
    The Secretary shall, by regulation, promulgate standards 
for the termination or modification of the designation of 
economic development districts.
SEC. 403. INCENTIVES.
    (a) In General.--Subject to the non-Federal share 
requirement under section 205(c)(1), the Secretary may increase 
the amount of grant assistance for a project in an economic 
development district by an amount that does not exceed 10 
percent of the cost of the project, in accordance with such 
regulations as the Secretary shall promulgate, if--
            (1) the project applicant is actively participating 
        in the economic development activities of the district; 
        and
            (2) the project is consistent with the 
        comprehensive economic development strategy of the 
        district.
    (b) Review of Incentive System.--In promulgating 
regulations under subsection (a), the Secretary shall review 
the current incentive system to ensure that the system is 
administered in the most direct and effective manner to achieve 
active participation by project applicants in the economic 
development activities of economic development districts.
SEC. 404. PROVISION OF COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES TO 
        APPALACHIAN REGIONAL COMMISSION.
    If any part of an economic development district is in the 
Appalachian region (as defined in section 403 of the 
Appalachian Regional Development Act of 1965 (40 U.S.C. App.)), 
the economic development district shall ensure that a copy of 
the comprehensive economic development strategy of the district 
is provided to the Appalachian Regional Commission established 
under that Act.
SEC. 405. ASSISTANCE TO PARTS OF ECONOMIC DEVELOPMENT DISTRICTS NOT IN 
        ELIGIBLE AREAS.
    Notwithstanding section 301, the Secretary may provide such 
assistance as is available under this Act for a project in a 
part of an economic development district that is not in an area 
described in section 301(a), if the project will be of a 
substantial direct benefit to an area described in section 
301(a) that is located in the district.

                         TITLE V_ADMINISTRATION

SEC. 501. ASSISTANT SECRETARY FOR ECONOMIC DEVELOPMENT.
    (a) In General.--The Secretary shall carry out this Act 
through an Assistant Secretary of Commerce for Economic 
Development, to be appointed by the President, by and with the 
advice and consent of the Senate.
    (b) Compensation.--The Assistant Secretary of Commerce for 
Economic Development shall be compensated at the rate payable 
for level IV of the Executive Schedule under section 5315 of 
title 5, United States Code.
    (c) Duties.--The Assistant Secretary of Commerce for 
Economic Development shall carry out such duties as the 
Secretary shall require and shall serve as the administrator of 
the Economic Development Administration of the Department.
SEC. 502. ECONOMIC DEVELOPMENT INFORMATION CLEARINGHOUSE.
    In carrying out this Act, the Secretary shall--
            (1) maintain a central information clearinghouse on 
        matters relating to economic development, economic 
        adjustment, disaster recovery, defense conversion, and 
        trade adjustment programs and activities of the Federal 
        and State governments, including political subdivisions 
        of States;
            (2) assist potential and actual applicants for 
        economic development, economic adjustment, disaster 
        recovery, defense conversion, and trade adjustment 
        assistance under Federal, State, and local laws in 
        locating and applying for the assistance; and
            (3) assist areas described in section 301(a) and 
        other areas by providing to interested persons, 
        communities, industries, and businesses in the areas 
        any technical information, market research, or other 
        forms of assistance, information, or advice that would 
        be useful in alleviating or preventing conditions of 
        excessive unemployment or underemployment in the areas.
SEC. 503. CONSULTATION WITH OTHER PERSONS AND AGENCIES.
    (a) Consultation on Problems Relating to Employment.--The 
Secretary may consult with any persons, including 
representatives of labor, management, agriculture, and 
government, who can assist in addressing the problems of area 
and regional unemployment or underemployment.
    (b) Consultation on Administration of Act.--The Secretary 
may provide for such consultation with interested Federal 
agencies as the Secretary determines to be appropriate in the 
performance of the duties of the Secretary under this Act.
SEC. 504. ADMINISTRATION, OPERATION, AND MAINTENANCE.
    The Secretary shall approve Federal assistance under this 
Act only if the Secretary is satisfied that the project for 
which Federal assistance is granted will be properly and 
efficiently administered, operated, and maintained.
SEC. 505. BUSINESSES DESIRING FEDERAL CONTRACTS.
    The Secretary may provide the procurement divisions of 
Federal agencies with a list consisting of--
            (1) the names and addresses of businesses that are 
        located in areas described in section 301(a) and that 
        wish to obtain Federal Government contracts for the 
        provision of supplies or services; and
            (2) the supplies and services that each business 
        provides.
SEC. 506. REVIEW OF UNIVERSITY CENTERS.
    (a) In General.--The Secretary shall conduct a review of 
each university center that receives grant assistance under 
this Act to assess the center's performance and contribution 
toward retention and creation of employment.
    (b) Purpose of Reviews.--The purpose of the reviews under 
subsection (a) shall be to determine which university centers 
are performing well and are worthy of continued grant 
assistance under this Act, and which should not receive 
continued assistance, so that university centers that have not 
previously received assistance may receive assistance.
    (c) Timing of Reviews.--Reviews under subsection (a) shall 
be conducted on a continuing basis so that each university 
center is reviewed within 3 years after the first award of 
grant assistance to the center after the effective date of the 
Economic Development Administration Reform Act of 1998, and at 
least once every 3 years thereafter, so long as the university 
center receives the assistance.
    (d) Criteria.--The Secretary shall establish criteria for 
use in conducting reviews under subsection (a), which criteria 
shall, at a minimum, provide for an assessment of each 
university center's--
            (1) contribution to providing technical assistance 
        or conducting applied research; and
            (2) dissemination of the results of the activities 
        of the center assisted under this Act.

                         TITLE VI_MISCELLANEOUS

SEC. 601. POWERS OF SECRETARY.
    (a) In General.--In carrying out the duties of the 
Secretary under this Act, the Secretary may--
            (1) adopt, alter, and use a seal, which shall be 
        judicially noticed;
            (2) subject to the civil service and classification 
        laws, select, employ, appoint, and fix the compensation 
        of such personnel as are necessary to carry out this 
        Act;
            (3) hold such hearings, sit and act at such times 
        and places, and take such testimony, as the Secretary 
        determines to be appropriate;
            (4) request directly, from any Federal agency, 
        board, commission, office, or independent 
        establishment, such information, suggestions, 
        estimates, and statistics as the Secretary determines 
        to be necessary to carry out this Act (and each Federal 
        agency, board, commission, office, or independent 
        establishment may provide such information, 
        suggestions, estimates, and statistics directly to the 
        Secretary);
            (5) consistent with chapter 37 of title 31, United 
        States Code, under regulations promulgated by the 
        Secretary--
                    (A) assign or sell at public or private 
                sale, or otherwise dispose of for cash or 
                credit, in the Secretary's discretion and on 
                such terms and conditions and for such 
                consideration as the Secretary determines to be 
                reasonable, any evidence of debt, contract, 
                claim, personal property, or security assigned 
                to or held by the Secretary in connection with 
                assistance provided under this Act; and
                    (B) collect or compromise all obligations 
                assigned to or held by the Secretary in 
                connection with that assistance until such time 
                as the obligations are referred to the Attorney 
                General for suit or collection;
            (6) deal with, complete, renovate, improve, 
        modernize, insure, rent, or sell for cash or credit, on 
        such terms and conditions and for such consideration as 
        the Secretary determines to be reasonable, any real or 
        personal property conveyed to or otherwise acquired by 
        the Secretary in connection with assistance provided 
        under this Act;
            (7) consistent with chapter 37 of title 31, United 
        States Code, pursue to final collection, by means of 
        compromise or other administrative action, before 
        referral to the Attorney General, all claims against 
        third parties assigned to the Secretary in connection 
        with assistance provided under this Act;
            (8) acquire, in any lawful manner, any property 
        (real, personal, or mixed, tangible or intangible), to 
        the extent appropriate in connection with assistance 
        provided under this Act;
            (9) in addition to any powers, functions, 
        privileges, and immunities otherwise vested in the 
        Secretary, take any action, including the procurement 
        of the services of attorneys by contract, determined by 
        the Secretary to be necessary or desirable in making, 
        purchasing, servicing, compromising, modifying, 
        liquidating, or otherwise administratively dealing with 
        assets held in connection with financial assistance 
        provided under this Act;
            (10)(A) employ experts and consultants or 
        organizations as authorized by section 3109 of title 5, 
        United States Code, except that contracts for such 
        employment may be renewed annually;
            (B) compensate individuals so employed, including 
        compensation for travel time; and
            (C) allow individuals so employed, while away from 
        their homes or regular places of business, travel 
        expenses, including per diem in lieu of subsistence, as 
        authorized by section 5703 of title 5, United States 
        Code, for persons employed intermittently in the 
        Federal Government service;
            (11) establish performance measures for grants and 
        other assistance provided under this Act, and use the 
        performance measures to evaluate the economic impact of 
        economic development assistance programs under this 
        Act, which establishment and use of performance 
        measures shall be provided by the Secretary through--
                    (A) officers or employees of the 
                Department;
                    (B) the employment of persons under 
                contracts entered into for such purposes; or
                    (C) grants to persons, using funds made 
                available to carry out this Act;
            (12) conduct environmental reviews and incur 
        necessary expenses to evaluate and monitor the 
        environmental impact of economic development assistance 
        provided and proposed to be provided under this Act, 
        including expenses associated with the representation 
        and defense of the actions of the Secretary relating to 
        the environmental impact of the assistance, using any 
        funds made available to carry out section 207;
            (13) sue and be sued in any court of record of a 
        State having general jurisdiction or in any United 
        States district court, except that no attachment, 
        injunction, garnishment, or other similar process, 
        mesne or final, shall be issued against the Secretary 
        or the property of the Secretary; and
            (14) establish such rules, regulations, and 
        procedures as the Secretary considers appropriate for 
        carrying out this Act.
    (b) Deficiency Judgments.--The authority under subsection 
(a)(7) to pursue claims shall include the authority to obtain 
deficiency judgments or otherwise pursue claims relating to 
mortgages assigned to the Secretary.
    (c) Inapplicability of Certain Other Requirements.--Section 
3709 of the Revised Statutes (41 U.S.C. 5) shall not apply to 
any contract of hazard insurance or to any purchase or contract 
for services or supplies on account of property obtained by the 
Secretary as a result of assistance provided under this Act if 
the premium for the insurance or the amount of the services or 
supplies does not exceed $1,000.
    (d) Property Interests.--
            (1) In general.--The powers of the Secretary under 
        this section, relating to property acquired by the 
        Secretary in connection with assistance provided under 
        this Act, shall extend to property interests of the 
        Secretary relating to projects approved under--
                    (A) this Act;
                    (B) title I of the Public Works Employment 
                Act of 1976 (42 U.S.C. 6701 et seq.);
                    (C) title II of the Trade Act of 1974 (19 
                U.S.C. 2251 et seq.); and
                    (D) the Community Emergency Drought Relief 
                Act of 1977 (42 U.S.C. 5184 note; Public Law 
                95-31).
            (2) Release.--The Secretary may release, in whole 
        or in part, any property interest in connection with a 
        grant after the date that is 20 years after the date on 
        which the grant was awarded.
    (e) Powers of Conveyance and Execution.--The power to 
convey and to execute, in the name of the Secretary, deeds of 
conveyance, deeds of release, assignments and satisfactions of 
mortgages, and any other written instrument relating to real or 
personal property or any interest in such property acquired by 
the Secretary under this Act may be exercised by the Secretary, 
or by any officer or agent appointed by the Secretary for that 
purpose, without the execution of any express delegation of 
power or power of attorney.

     [SEC. 712. [42 U.S.C. 322] PREVAILING RATE OF WAGE AND FORTY-HOUR 
                                 WEEK]

SEC. 602. MAINTENANCE OF STANDARDS.
    All laborers and mechanics employed by contractors or 
subcontractors on projects assisted by the Secretary under this 
Act shall be paid wages at rates not less than those prevailing 
on similar construction in the locality as determined by the 
Secretary of Labor in accordance with the Davis-Bacon Act, as 
amended (40 U.S.C. 276a-276a-5). The Secretary shall not extend 
any financial assistance under [sections 101, 201, 202, 403, 
903, and 1003] this Act, for such project without first 
obtaining adequate assurance that these labor standards will be 
maintained upon the construction work. The Secretary of Labor 
shall have, with respect to the labor standards specified in 
this provision, the authority and functions sent forth in 
Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 
1267; 5 U.S.C. 133z-15), and section 2 of the Act of June 13, 
1934, as amended (40 U.S.C. 276c).
SEC. 603. ANNUAL REPORT TO CONGRESS.
    Not later than July 1, 2000, and July 1 of each year 
thereafter, the Secretary shall submit to Congress a 
comprehensive and detailed annual report on the activities of 
the Secretary under this Act during the most recently completed 
fiscal year.
SEC. 604. DELEGATION OF FUNCTIONS AND TRANSFER OF FUNDS AMONG FEDERAL 
        AGENCIES.
    (a) Delegation of Functions to Other Federal Agencies.--The 
Secretary may--
            (1) delegate to the heads of other Federal agencies 
        such functions, powers, and duties of the Secretary 
        under this Act as the Secretary determines to be 
        appropriate; and
            (2) authorize the redelegation of the functions, 
        powers, and duties by the heads of the agencies.
    (b) Transfer of Funds to Other Federal Agencies.--Funds 
authorized to be appropriated to carry out this Act may be 
transferred between Federal agencies, if the funds are used for 
the purposes for which the funds are specifically authorized 
and appropriated.
    (c) Transfer of Funds From Other Federal Agencies.--
            (1) In general.--Subject to paragraph (2), for the 
        purposes of this Act, the Secretary may accept 
        transfers of funds from other Federal agencies if the 
        funds are used for the purposes for which (and in 
        accordance with the terms under which) the funds are 
        specifically authorized and appropriated.
            (2) Use of funds.--The transferred funds--
                    (A) shall remain available until expended; 
                and
                    (B) may, to the extent necessary to carry 
                out this Act, be transferred to and merged by 
                the Secretary with the appropriations for 
                salaries and expenses.
SEC. 605. PENALTIES.
    (a) False Statements; Security Overvaluation.--A person 
that makes any statement that the person knows to be false, or 
willfully overvalues any security, for the purpose of--
            (1) obtaining for the person or for any applicant 
        any financial assistance under this Act or any 
        extension of the assistance by renewal, deferment, or 
        action, or by any other means, or the acceptance, 
        release, or substitution of security for the 
        assistance;
            (2) influencing in any manner the action of the 
        Secretary; or
            (3) obtaining money, property, or any thing of 
        value, under this Act;
shall be fined under title 18, United States Code, imprisoned 
not more than 5 years, or both.
    (b) Embezzlement and Fraud-Related Crimes.--A person that 
is connected in any capacity with the Secretary in the 
administration of this Act and that--
            (1) embezzles, abstracts, purloins, or willfully 
        misapplies any funds, securities, or other thing of 
        value, that is pledged or otherwise entrusted to the 
        person;
            (2) with intent to defraud the Secretary or any 
        other person or entity, or to deceive any officer, 
        auditor, or examiner--
                    (A) makes any false entry in any book, 
                report, or statement of or to the Secretary; or
                    (B) without being duly authorized, draws 
                any order or issue, puts forth, or assigns any 
                note, debenture, bond, or other obligation, or 
                draft, bill of exchange, mortgage, judgment, or 
                decree thereof;
            (3) with intent to defraud, participates or shares 
        in or receives directly or indirectly any money, 
        profit, property, or benefit through any transaction, 
        loan, grant, commission, contract, or any other act of 
        the Secretary; or
            (4) gives any unauthorized information concerning 
        any future action or plan of the Secretary that might 
        affect the value of securities, or having such 
        knowledge invests or speculates, directly or 
        indirectly, in the securities or property of any 
        company or corporation receiving loans, grants, or 
        other assistance from the Secretary;
shall be fined under title 18, United States Code, imprisoned 
not more than 5 years, or both.
SEC. 606. EMPLOYMENT OF EXPEDITERS AND ADMINISTRATIVE EMPLOYEES.
    Assistance shall not be provided by the Secretary under 
this Act to any business unless the owners, partners, or 
officers of the business--
            (1) certify to the Secretary the names of any 
        attorneys, agents, and other persons engaged by or on 
        behalf of the business for the purpose of expediting 
        applications made to the Secretary for assistance of 
        any kind, under this Act, and the fees paid or to be 
        paid to the person for expediting the applications; and
            (2) execute an agreement binding the business, for 
        the 2-year period beginning on the date on which the 
        assistance is provided by the Secretary to the 
        business, to refrain from employing, offering any 
        office or employment to, or retaining for professional 
        services, any person who, on the date on which the 
        assistance or any part of the assistance was provided, 
        or within the 1-year period ending on that date--
                    (A) served as an officer, attorney, agent, 
                or employee of the Department; and
                    (B) occupied a position or engaged in 
                activities that the Secretary determines 
                involved discretion with respect to the 
                granting of assistance under this Act.
SEC. 607. MAINTENANCE AND PUBLIC INSPECTION OF LIST OF APPROVED 
        APPLICATIONS FOR FINANCIAL ASSISTANCE.
    (a) In General.--The Secretary shall--
            (1) maintain as a permanent part of the records of 
        the Department a list of applications approved for 
        financial assistance under this Act; and
            (2) make the list available for public inspection 
        during the regular business hours of the Department.
    (b) Additions to List.--The following information shall be 
added to the list maintained under subsection (a) as soon as an 
application described in subsection (a)(1) is approved:
            (1) The name of the applicant and, in the case of a 
        corporate application, the name of each officer and 
        director of the corporation.
            (2) The amount and duration of the financial 
        assistance for which application is made.
            (3) The purposes for which the proceeds of the 
        financial assistance are to be used.
SEC. 608. RECORDS AND AUDITS.
    (a) Recordkeeping and Disclosure Requirements.--Each 
recipient of assistance under this Act shall keep such records 
as the Secretary shall require, including records that fully 
disclose--
            (1) the amount and the disposition by the recipient 
        of the proceeds of the assistance;
            (2) the total cost of the project in connection 
        with which the assistance is given or used;
            (3) the amount and nature of the portion of the 
        cost of the project provided by other sources; and
            (4) such other records as will facilitate an 
        effective audit.
    (b) Access to Books for Examination and Audit.--The 
Secretary, the Inspector General of the Department, and the 
Comptroller General of the United States, or any duly 
authorized representative, shall have access for the purpose of 
audit and examination to any books, documents, papers, and 
records of the recipient that relate to assistance received 
under this Act.
SEC. 609. RELATIONSHIP TO ASSISTANCE UNDER OTHER LAW.
    (a) Previously Authorized Assistance.--Except as otherwise 
provided in this Act, all financial and technical assistance 
authorized under this Act shall be in addition to any Federal 
assistance authorized before the effective date of the Economic 
Development Administration Reform Act of 1998.
    (b) Assistance Under Other Acts.--Nothing in this Act 
authorizes or permits any reduction in the amount of Federal 
assistance that any State or other entity eligible under this 
Act is entitled to receive under any other Act.
SEC. 610. ACCEPTANCE OF CERTIFICATIONS BY APPLICANTS.
    Under terms and conditions determined by the Secretary, the 
Secretary may accept the certifications of an applicant for 
assistance under this Act that the applicant meets the 
requirements of this Act.

                           TITLE VII_FUNDING

SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.
    There are authorized to be appropriated to carry out this 
Act $397,969,000 for fiscal year 1999, $338,379,000 for fiscal 
year 2000, $306,000,000 for fiscal year 2001, $277,000,000 for 
fiscal year 2002, and $277,000,000 for fiscal year 2003, to 
remain available until expended.
SEC. 702. AUTHORIZATION OF APPROPRIATIONS FOR DEFENSE CONVERSION 
        ACTIVITIES.
    (a) In General.--In addition to amounts made available 
under section 701, there are authorized to be appropriated such 
sums as are necessary to carry out section 209(c)(1), to remain 
available until expended.
    (b) Pilot Projects.--Funds made available under subsection 
(a) may be used for activities including pilot projects for 
privatization of, and economic development activities for, 
closed or realigned military or Department of Energy 
installations.
SEC. 703. AUTHORIZATION OF APPROPRIATIONS FOR DISASTER ECONOMIC 
        RECOVERY ACTIVITIES.
    (a) In General.--In addition to amounts made available 
under section 701, there are authorized to be appropriated such 
sums as are necessary to carry out section 209(c)(2), to remain 
available until expended.
    (b) Federal Share.--The Federal share of the cost of 
activities funded with amounts made available under subsection 
(a) shall be up to 100 percent.

           [TITLE VIII--ECONOMIC RECOVERY FOR DISASTER AREAS

                           [purpose of title

    [Sec. 801. [42 U.S.C. 3231] (a) It is the purpose of this 
title to provide assistance for the economic recovery, after 
the period of emergency aid and replacement of essential 
facilities and services, of any major disaster area which has 
suffered a dislocation of its economy of sufficient severity to 
require (1) assistance in planning for development to replace 
that lost in the major disaster; (2) continued coordination of 
assistance available under Federal-aid programs; and (3) 
continued assistance toward the restoration of the employment 
base.
    [(b) As used in this title, the term ``major disaster'' 
means a major disaster declared by the President in accordance 
with the Disaster Relief and Emergency Assistance Act.

                      [disaster recovery planning

    [Sec. 802. [42 U.S.C. 3232] (a)(1) In the case of any area 
affected by a major disaster the Governor may request the 
President for assistance under this title. The Governor, within 
thirty days after authorization of such assistance by the 
President, shall designate a Recovery Planning Council for such 
area or for each part thereof.
    [(2) Such Recovery Planning Council shall be composed of 
not less than five members, a majority of whom shall be local 
elected officials of political subdivisions within the affected 
areas, at least one representative of the State, and a 
representative of the Federal Government appointed by the 
President in accordance with paragraph (3) of this subsection. 
During the major disaster, the Federal coordinating officer 
shall also serve on the Recovery Planning Council.
    [(3) The Federal representative on such Recovery Planning 
Council may be the Chairman of the Federal Regional Council for 
the affected area, or a member of the Federal Regional Council 
designated by the Chairman of such Regional Council. The 
Federal representative on such Recovery Planning Council may be 
the Federal Cochairman of the Regional Commission established 
pursuant to title V of this Act, or the Appalachian Regional 
Development Act of 1965, or his designee, where all of the area 
affected by a major disaster is within the boundaries of such 
Commission.
    [(4) The Governor may designate an existing 
multijurisdictional organization as the Recovery Planning 
Council where such organization complies with paragraph (2) of 
this subsection with the addition of State and Federal 
representatives except that if all or part of an area affected 
by a major disaster is within the jurisdiction of an existing 
multijurisdictional organization established under title VI of 
this Act or title III of the Appalachian Regional Development 
Act of 1965, such organization, with the addition of State and 
Federal representatives in accordance with paragraph (2) of 
this subsection, shall be designated by the Governor as the 
Recovery Planning Council. In any case in which such title III 
or IV organizations is designated as the Recovery Planning 
Council under this paragraph, some local elected officials of 
political subdivisions within the affected areas must be 
appointed to serve on such Recovery Planning Council. Where 
possible, the organization designated as the Recovery Planning 
Council shall be or shall be subsequently designated as the 
appropriate agency required by section 204 of the Demonstration 
Cities and Metropolitan Development Act of 1966 (42 U.S.C. 
3334) and by the Intergovernmental Cooperation Act of 1968 
(Public Law 90-577; 82 Stat. 1098).
    [(5) The Recovery Planning Council shall include private 
citizens as members to the extent feasible, and shall provide 
for and encourage public participation in its deliberations and 
decisions.
    [(b) The Recovery Planning Council (1) shall review 
existing plans for the affected area; and (2) may recommend to 
the Governor and responsible local governments such revisions 
as it determines necessary for the economic recovery of the 
area, including the development of new plans and the 
preparation of a recovery investment plan for the 5-year period 
following the declaration of the major disaster. The Recovery 
Planning Council shall accept as one element of the recovery 
investment plans determinations made under section 406(c) of 
the Disaster Relief and Emergency Assistance Act.
    [(c)(1) A recovery investment plan prepared by a Recovery 
Planning Council may recommend the revision, deletion, 
reprogramming, or additional approval of Federal-aid projects 
and programs within the area--
            [(A) for which application has been made but 
        approval not yet granted;
            [(B) for which funds have been obligated or 
        approval granted but construction not yet begun;
            [(C) for which funds have been or are scheduled to 
        be apportioned within the five years after the 
        declaration of the disaster;
            [(D) which may otherwise be available to the area 
        under any State schedule or revised State schedule of 
        priorities; or
            [(E) which may reasonably be anticipated as 
        becoming available under existing programs.
    [(2) Upon the recommendation of the Recovery Planning 
Council and the request for the Governor, any funds for 
projects or programs identified pursuant to paragraph (1) of 
this subsection may, to any extent consistent with 
appropriation Acts, be placed in reserve by the responsible 
Federal agency for use in accordance with such recommendations. 
Upon the request of the Governor and with the concurrence of 
affected local governments, such funds may be transferred to 
the Recovery Planning Council to be expended in the 
implementation of the recovery investment plan, except that no 
such transfer may be made unless such expenditure is for a 
project or program for which such funds originally were made 
available by an appropriation Act.

       [public works and development facilities grants and loans

    [Sec. 803. [42 U.S.C. 3233] (a) The President is authorized 
to provide funds to any Recovery Planning Council for the 
implementation of a recovery investment plan by public bodies. 
Such funds may be used--
            [(1) to make loans for the acquisition or 
        development of land and improvements for public works, 
        public service, or development facility usage, 
        including the acquisition or development of parks or 
        open spaces, and the acquisition, construction, 
        rehabilitation, alteration, expansion, or improvement 
        of such facilities, including related machinery and 
        equipment, and
            [(2) to make supplementary grants to increase the 
        Federal share for projects for which funds are reserved 
        pursuant to subsection (c)(2) of section 802 of this 
        Act, or other Federal-aid projects in the affected 
        area.
    [(b) Grants and loans under this section may be made to any 
State, local government, or private or public nonprofit 
organization representing any area or part thereof affected by 
a major disaster.
    [(c) No supplementary grant shall increase the Federal 
share of the cost of any project to greater than 90 per centum, 
except in the case of a grant for the benefit of Indians or 
Alaska Natives, or in the case of any State or local government 
which the President determines has exhausted its effective 
taxing and borrowing capacity.
    [(d) Loans under this section shall bear interest at a rate 
determined by the Secretary of the Treasury taking into 
consideration the current average market yield on outstanding 
marketable obligations of the United States with remaining 
periods to maturity comparable to the average maturities of 
such loans, adjusted to the nearest one-eighth of 1 per centum 
per annum.
    [(e) Financial assistance under this title shall not be 
extended to assist establishments relocating from one area to 
another or to assist subcontractors whose purpose is to divest, 
or whose economic success is dependent upon divesting, other 
contractors or subcontractors of contracts therefore 
customarily performed by them. Such limitations shall not be 
construed to prohibit assistance for the expansion of an 
existing business entity through the establishment of a new 
branch, affiliate, or subsidiary of such entity if the 
Secretary of Commerce finds that the establishment of such 
branch, affiliate, or subsidiary will not result in an increase 
in unemployment of the area of original location or in any 
other area where such entity conducts business operations, 
unless the Secretary has reason to believe that such branch, 
affiliate, or subsidiary is being established with the 
intention of closing down the operations of the existing 
business entity in the area of its original location or in any 
other area where it conducts such operations.

                            [loan guarantees

    [Sec. 804. [42 U.S.C. 3234] The President is authorized to 
provide funds to Recovery Planning Councils to guarantee loans 
made to private borrowers by private lending institutions (1) 
to aid in financing any project within any area affected by a 
major disaster for the purchase or development of land and 
facilities (including machinery and equipment) for industrial 
or commercial usage including the construction of new 
buildings, and rehabilitation of abandoned or unoccupied 
buildings, and the alteration, conversion or enlargement of 
existing buildings; and (2) for working capital in connection 
with projects in areas assisted under paragraph (1), upon 
application of such institution and upon such terms and 
conditions as the President may prescribe. No such guarantee 
shall at any time exceed 90 per centum of the amount of the 
outstanding unpaid balance of such loan.

                         [technical assistance

    [Sec. 805. [42 U.S.C. 3235] (a) In carrying out the 
purposes of this title the President is authorized to provide 
technical assistance which would be useful in facilitating 
economic recovery in areas affected by major disasters. Such 
assistance shall include project planning and feasibility 
studies, management and operational assistance, and studies 
evaluating the needs of, and developing potentialities for, 
economic recovery of such areas. Such assistance may be 
provided by the President directly, through the payment of 
funds authorized for this title to other departments or 
agencies of the Federal Government, through the employment of 
private individuals, partnerships, firms, corporations or 
suitable institutions, under contracts entered into for such 
purposes, or through grants-in-aid to appropriate public or 
private non-profit State, area, district, or local 
organization.
    [(b) The President is authorized to make grants to defray 
not to exceed 75 per centum of the administrative expenses of 
Recovery Planning Councils designated pursuant to section 802 
of this Act. In determining the amount of the non-Federal share 
of such costs or expenses, the President shall give due 
consideration to all contributions both in cash and in kind, 
fairly evaluated including but not limited to space, equipment, 
and services. Where practicable, grants-in-aid authorized under 
this subsection shall be used in conjunction with other 
available planning grants, to assure adequate and effective 
planning and economical use of funds.

   [TITLE IX--SPECIAL ECONOMIC DEVELOPMENT AND ADJUSTMENT ASSISTANCE

                                [purpose

    [Sec. 901. [42 U.S.C. 3241] It is the purpose of this title 
to provide special economic development and adjustment 
assistance programs to help State and local areas meet special 
needs arising from actual or threatened severe unemployment 
arising from economic dislocation, including unemployment 
arising from actions of the Federal Government and from 
compliance with environmental requirements which remove 
economic activities from a locality, and economic adjustment 
problems resulting from severe changes in economic conditions 
(including long-term economic deterioration), and to encourage 
cooperative intergovernmental action to prevent or solve 
economic adjustment problems. Nothing in this title is intended 
to replace the efforts of the economic adjustment program of 
the Department of Defense.

                              [definition

    [Sec. 902. [42 U.S.C. 3242] As used in this title, the term 
``eligible recipient'' means a redevelopment area or economic 
development district established under title IV of this Act, an 
Indian tribe, a State, a city or other political subdivision of 
a State, or consortium of such political subdivisions.

                          [grants by secretary

    [Sec. 903. [42 U.S.C. 3243] (a)(1) The Secretary is 
authorized to make grants directly to any eligible recipient in 
an area (A) which the Secretary has determined has experienced, 
or may reasonably be foreseen to be about to experience, a 
special need to meet an expected rise in unemployment, or other 
economic adjustment problems (including those caused by any 
action or decision of the Federal Government), or (B) which the 
Secretary determines has demonstrated long-term economic 
deterioration, to carry out or develop a plan which meets the 
requirements of subsection (b) of this section and which is 
approved by the Secretary, to use such grants for any of the 
following: public facilities, public services, business 
development, planning, unemployment compensation (in accordance 
with subsection (d) of this section), rent supplements, 
mortgage payment assistance, research, technical assistance, 
training, relocation of individuals and businesses, and other 
assistance which demonstrably furthers the economic adjustment 
objectives of this title.
    [(2)(A) Such grants may be used in direct expenditures by 
the eligible recipient or through redistribution by it to 
public and private entities in grants, loans, loan guarantees, 
payments to reduce interest on loan guarantees, or other 
appropriate assistance, but no grant shall be made by an 
eligible recipient to a private profitmaking entity.
    [(B) Grants for unemployment compensation shall be made to 
the State. Grants for any other purpose shall be made to any 
appropriate eligible recipient capable of carrying out such 
purpose.
    [(b) No plan shall be approved by the Secretary under this 
section unless such plan shall--
            [(1) identify each economic development and 
        adjustment need of the area for which assistance is 
        sought under this title;
            [(2) describe each activity planned to meet each 
        such need;
            [(3) explain the details of the method of carrying 
        out each such planned activity;
            [(4) contain assurances satisfactory to the 
        Secretary that the proceeds from the repayment of loans 
        made by the eligible recipient with funds granted under 
        this title will be used for economic adjustment; and
            [(5) be in such form and contain such additional 
        information as the Secretary shall prescribe.
    [(c) The Secretary to the extent practicable shall 
coordinate his activities in requiring plans and making grants 
and loans under this title with regional commissions, States, 
economic development districts and other appropriate planning 
and development organizations.
    [(d) In each case in which the Secretary determines a need 
for assistance under subsection (a) of this section due to an 
increase in unemployment and makes a grant under this section, 
the Secretary may transfer funds available for such grant to 
the Secretary of Labor and the Secretary of Labor is authorized 
to provide to any individual unemployed as a result of the 
dislocation for which such grant is made, such assistance as he 
deems appropriate while the individual is unemployed. Such 
assistance as the Secretary of labor may provide shall be 
available to an individual not otherwise disqualified under 
State law for unemployment compensation benefits, as long as 
the individual's unemployment caused by the dislocation 
continues or until the individual is reemployed in a suitable 
position, but no longer than one year after the unemployment 
commences. Such assistance for a week of employment shall not 
exceed the maximum weekly amount authorized under the 
unemployment compensation law of the State in which the 
dislocation occurred, and the amount of assistance under this 
subsection shall be reduced by any amount of unemployment 
compensation or of private income protection insurance 
compensation available to such individual for such week of 
employment. The Secretary of Labor is directed to provide such 
assistance through agreements with States which, in his 
judgment, have an adequate system for administering such 
assistance through existing State agencies.

                        [reports and evaluation

    [Sec. 904. [42 U.S.C. 3244] (a) Each eligible recipient 
which receives assistance under this title shall annually 
during the period such assistance continues make a full and 
complete report to the Secretary, in such manner as the 
Secretary shall prescribe, and such report shall contain an 
evaluation of the effectiveness of the economic assistance 
provided under this title in meeting the need it was designed 
to alleviate and the purposes of this title.
    [(b) The Secretary shall include in the annual report 
pursuant to section 707 of this Act a consolidated report with 
his recommendations, if any, on the assistance authorized under 
this title, in a form which he deems appropriate.

                    [authorization of appropriations

    [Sec. 905. [42 U.S.C. 3245] There is authorized to be 
appropriated to carry out this title not to exceed $75,000,000 
for the fiscal year ending June 30, 1975, and $100,000,000 for 
the fiscal year ending June 30, 1976, not to exceed $25,000,000 
for the transition quarter ending September 30, 1976, and not 
to exceed $100,000,000 per fiscal year for the fiscal years 
ending September 30, 1977, September 30, 1978, September 30, 
1979, September 30, 1980, and September 30, 1981, and not to 
exceed $33,000,000 for the fiscal year ending September 30, 
1982.

                  [TITLE X--JOB OPPORTUNITIES PROGRAM

                         [statement of purpose

    [Sec. 1001. [42 U.S.C. 3246] It is the purpose of this 
title to provide emergency financial assistance to stimulate, 
maintain or expand job creating activities in areas, both urban 
and rural, which are suffering from unusually high levels of 
unemployment.

                              [definitions

    [Sec. 1002. [42 U.S.C. 3246a] For the purpose of this title 
the term ``eligible area'' means any area, which the Secretary 
of Labor designates as an area which has a rate of unemployment 
equal to or in excess of 7 per centum for the most recent 
calendar quarter or any area designated pursuant to section 
204(c) of the Comprehensive Employment and Training Act of 1973 
which has unemployment equal to or in excess of 7 per centum 
with special consideration given to areas with unemployment 
rates above the national average.

                          [program authorized

    [Sec. 1003. [42 U.S.C. 3246b] (a) To carry out the purposes 
of this title, the Secretary of Commerce, in accordance with 
the provisions of this title, is authorized from funds 
appropriated and made available under section 1007 of this 
title to provide financial assistance to programs and projects 
identified through the review process described in section 1004 
to expand or accelerate the job creating impact of such 
programs or projects for unemployed persons in eligible areas. 
Programs and projects for which funds are made available under 
this title shall not be approved until the officials of the 
appropriate units of general government in the affected areas 
have an adequate opportunity to comment on the specific 
proposal.
    [(b) Whenever funds are made available by the Secretary of 
Commerce under this title for any program or project, the head 
of the department, agency, or instrumentality of the Federal 
Government administering the law authorizing such assistance 
shall, except as otherwise provided in this subsection, 
administer the law authorizing such assistance in accordance 
with all applicable provisions of that law, except provisions 
relating to--
            [(1) requiring allocation of funds among the 
        States,
            [(2) limits upon the total amount of such grants 
        for any period, and
            [(3) the Federal contribution to any State or local 
        government, whenever the President or head of such 
        department, agency, or instrumentality of the Federal 
        Government determines that any non-Federal contribution 
        cannot reasonably be obtained by the State or local 
        government concerned.
    [(c) Where necessary to effectively carry out the purposes 
of this title, the Secretary of Commerce is authorized to 
assist eligible areas in making applications for grants under 
this title.
    [(d) Notwithstanding any other provisions of this title, 
funds allocated by the Secretary of Commerce shall be available 
only for a program or project which the Secretary identifies 
and selects pursuant to this subsection, and which can be 
initiated or implemented promptly and substantially completed 
within twelve months after allocation is made. In identifying 
and selecting programs and projects pursuant to this 
subsection, the Secretary shall (1) give priority to programs 
and projects which are most effective in creating and 
maintaining productive employment, including permanent and 
skilled employment measured as the amount of such direct and 
indirect employment generated or supported by the additional 
expenditures of Federal funds under this title, and (2) 
consider the appropriations of the proposed activity to the 
number and needs of unemployed persons in the eligible area.
    [(e)(1) The Secretary, if the national unemployment rate is 
equal to or exceeds 7 per centum for the most recent calendar 
quarter, shall expedite and give priority to grant applications 
submitted for such areas having unemployment in excess of the 
national average rate of unemployment for the most recent 
calendar quarter. Seventy per centum of the funds appropriated 
pursuant to this title shall be available only for grants in 
areas as defined in the first sentence of this subsection.
    [(2) Not more than 15 per centum of all amounts 
appropriated to carry out this title shall be available under 
this title for projects or programs within any one State, 
except that in the case of Guam, Virgin Islands, and American 
Samoa, not less than one-half of 1 per centum in the aggregate 
shall be available for such projects or programs.

                            [program review

    [Sec. 1004. [42 U.S.C. 3246c] (a) Within forty-five days 
after any funds are appropriated to the Secretary to carry out 
the purposes of this title, after the date of enactment of the 
Public Works and Economic Development Act Amendments of 1976, 
each department, agency, or instrumentality of the Federal 
Government, each regional commission established by section 101 
of the Appalachian Regional Development Act of 1965 or pursuant 
to section 502 of this Act, shall (1) complete a review of its 
budget, plans, and programs and including State, substate, and 
local development plans filed with such department, agency or 
commission; (2) evaluate the job creation effectiveness of 
programs and projects for which funds are proposed to be 
obligated in the calendar year and additional programs and 
projects (including new or revised programs and projects 
submitted under subsection (b) for which funds could be 
obligated in such year with Federal financial assistance under 
this title; and (3) submit to the Secretary of Commerce 
recommendations for programs and projects which have the 
greatest potential to stimulate the creation of jobs for 
unemployed persons in eligible areas. Within forty-five days of 
the receipt of such recommendations the Secretary of Commerce 
shall review such recommendations, and after consultation with 
such department, agency, instrumentality, regional commission, 
State, or local government make allocations of funds in 
accordance with section 1003(d) of this title.
    [(b) States and political subdivisions in any eligible area 
may, pursuant to subsection (a), submit to the appropriate 
department, agency, or instrumentality of the Federal 
Government (or regional commission) program and project 
applications for Federal financial assistance provided under 
this title.
    [(c) The Secretary, in reviewing programs and projects 
recommended for any eligible area shall give priority to 
programs and projects originally sponsored by States and 
political subdivisions, including, but not limited to, new or 
revised programs and projects submitted in accordance with this 
section.

                         [rules and regulations

    [Sec. 1005. [42 U.S.C. 3246e] The Secretary of Commerce 
shall prescribe such rules, regulations, and procedures to 
carry out the provisions of this title as will assure that 
adequate consideration is given to the relative needs of 
applicants for assistance in rural eligible areas and the 
relative needs of applicants for assistance in urban eligible 
areas and to any equitable distribution of funds authorized 
under this title between rural and urban eligible applicants 
unless this would require project grants to be made in areas 
which do not meet the criteria of this title.

                    [authorization of appropriations

    [Sec. 1006. [42 U.S.C. 3246f] (a) There are hereby 
authorized to be appropriated to carry out the provisions of 
this title $81,250,000 for each calendar quarter of a fiscal 
year during which the national average unemployment is equal to 
or exceeds 7 per centum on the average. No further 
appropriations of funds is authorized under this section if a 
determination is made that the national average rate of 
unemployment has receded below an average of 7 per centum for 
the most recent calendar quarter as determined by the Secretary 
of Labor.
    [(b) Funds authorized by subsection (a) are available for 
grants by the Secretary when the national average unemployment 
is equal to or in excess of an average of 7 per centum for the 
most recent calendar quarter. If the national average 
unemployment rate recedes below an average of 7 per centum for 
the most recent calendar quarter, the authority of the 
Secretary to make grants or obligate funds under this title is 
terminated. Grants may not be made until the national average 
unemployment has equalled or exceeded an average of 7 per 
centum for the most recent calendar quarter.
    [(c) Funds authorized to carry out this title shall be in 
addition to, and not in lieu of, any amounts authorized by 
other provisions of law.

                           [termination date

    [Sec. 1007. [42 U.S.C. 3246g] Notwithstanding any other 
provision of this title, no further obligations of funds 
appropriated under this title shall be made by the Secretary of 
Commerce after September 30, 1981.

                          [construction costs

    [Sec. 1008. [42 U.S.C. 3246h] No program or project 
originally approved for funds under an existing program shall 
be determined to be ineligible for Federal financial assistance 
under this title solely because of increased construction 
costs.]
                              ----------                              


                           UNITED STATES CODE

TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES

           *       *       *       *       *       *       *


Sec.  5316. Positions at level V
    Level V of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:

           *       *       *       *       *       *       *

            [Administrator for Economic Development.]

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