[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2364 Introduced in Senate (IS)]
105th CONGRESS
2d Session
S. 2364
To reauthorize and make reforms to programs authorized by the Public
Works and Economic Development Act of 1965.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 28, 1998
Mr. Chafee (for himself, Mr. Baucus, Mr. Warner, Ms. Snowe, Mr.
Kempthorne, Mr. Lieberman, Mr. Moynihan, Mr. Reid, Mrs. Boxer, Mr.
Lugar, Mr. Hollings, Ms. Collins, and Ms. Mikulski) introduced the
following bill; which was read twice and referred to the Committee on
Environment and Public Works
_______________________________________________________________________
A BILL
To reauthorize and make reforms to programs authorized by the Public
Works and Economic Development Act of 1965.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Economic
Development Administration Reform Act of 1998''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Reauthorization of Public Works and Economic Development Act of
1965.
Sec. 3. Conforming amendment.
Sec. 4. Transition provisions.
Sec. 5. Effective date.
SEC. 2. REAUTHORIZATION OF PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF
1965.
(a) Titles I Through VI.--Titles I through VI of the Public Works
and Economic Development Act of 1965 (42 U.S.C. 3121 et seq.) are
amended to read as follows:
``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. 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.''.
(b) Title VII.--The Public Works and Economic Development Act of
1965 (42 U.S.C. 3121 et seq.) is amended--
(1) by redesignating section 712 as section 602 and moving
that section to appear after section 601 (as amended by
subsection (a));
(2) in section 602 (as added by paragraph (1))--
(A) by striking the section heading and all that
follows through ``All'' and inserting the following:
``SEC. 602. MAINTENANCE OF STANDARDS.
``All''; and
(B) by striking ``sections 101, 201, 202, 403, 903,
and 1003'' and inserting ``this Act''; and
(3) by striking title VII (as amended by paragraph (1)) and
inserting the following:
``TITLE VII--FUNDING
``SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this Act
$397,969,000 for fiscal year 1999, $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.''.
(c) Titles VIII Through X.--The Public Works and Economic
Development Act of 1965 is amended by striking titles VIII through X
(42 U.S.C. 3231 et seq.).
SEC. 3. CONFORMING AMENDMENT.
Section 5316 of title 5, United States Code, is amended by striking
``Administrator for Economic Development.''.
SEC. 4. TRANSITION PROVISIONS.
(a) Existing Rights, Duties, and Obligations.--This Act, including
the amendments made by this Act, does not affect the validity of any
right, duty, or obligation of the United States or any other person
arising under any contract, loan, or other instrument or agreement that
was in effect on the day before the effective date of this Act.
(b) Continuation of Suits.--No action or other proceeding commenced
by or against any officer or employee of the Economic Development
Administration shall abate by reason of the enactment of this Act.
(c) Liquidating Account.--The Economic Development Revolving Fund
established under section 203 of the Public Works and Economic
Development Act of 1965 (42 U.S.C. 3143) (as in effect on the day
before the date of enactment of this Act) shall continue to be
available to the Secretary of Commerce as a liquidating account (as
defined in section 502 of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a)) for payment of obligations and expenses in connection
with financial assistance provided under--
(1) the Public Works and Economic Development Act of 1965
(42 U.S.C. 3121 et seq.);
(2) the Area Redevelopment Act (42 U.S.C. 2501 et seq.);
and
(3) the Trade Act of 1974 (19 U.S.C. 2101 et seq.).
(d) Administration.--The Secretary of Commerce shall take such
actions authorized before the effective date of this Act as are
appropriate to administer and liquidate grants, contracts, agreements,
loans, obligations, debentures, or guarantees made by the Secretary
under law in effect before the effective date of this Act.
SEC. 5. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take effect on a
date determined by the Secretary of Commerce, but not later than 90
days after the date of enactment of this Act.
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