Text: H.R.2015 — 101st Congress (1989-1990)All Information (Except Text)

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Reported to Senate

 
 
Calendar No. 929
101st CONGRESS
2d Session
 H. R. 2015
AN ACT
To amend the Public Works and Economic Development Act of 1965 and the
Appalachian Regional Development Act of 1965.
October 4 (legislative day, OCTOBER 2), 1990
Reported with amendments
HR 2015 RS
Calendar No. 929
101st CONGRESS
2d Session
 H.R. 2015
IN THE SENATE OF THE UNITED STATES
April 19 (legislative day, APRIL 18), 1990
Received; read twice and referred to the Committee on Environment and
Public Works
October 4 (legislative day, OCTOBER 2), 1990
Reported by Mr. BURDICK, with amendments
[Omit the part struck through and insert the part printed in italic]
AN ACT
To amend the Public Works and Economic Development Act of 1965 and the
Appalachian Regional Development Act of 1965.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
TITLE I--NATIONAL DEVELOPMENT INVESTMENT
SEC. 101. SHORT TITLE.
  This title may be cited as the `Public Works and Economic Development Act
  Amendments of 1990'.
SEC. 102. AMENDMENT TO PUBLIC WORKS AND ECONOMIC ACT OF 1965.
  The Public Works and Economic Development Act of 1965 is amended to read
  as follows:
`SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
  `(a) SHORT TITLE- This Act may be cited as the `National Development
  Investment Act'.
  `(b) TABLE OF CONTENTS-
`TITLE I--DEVELOPMENT INVESTMENT ASSISTANCE
`Sec. 101. Findings and purposes.
`Sec. 102. Development investment assistance.
`Sec. 103. Qualifying applicants and limitations on locations of projects.
`Sec. 104. Application for grant.
`Sec. 105. Distress requirements.
`Sec. 106. Development investment strategy.
`Sec. 107. Limitations on revolving loan funds.
`Sec. 108. Federal share.
`Sec. 109. Limitations.
`Sec. 110. Community development corporations.
`Sec. 111. Obligation of funds.
`Sec. 112. Authorization of appropriations.
`TITLE II--INVESTMENT STRATEGY, PLANNING, EVALUATION, AND DEMONSTRATION
`Sec. 201. Investment strategy and planning.
`Sec. 202. Evaluation and demonstration.
`Sec. 203. Federal share.
`Sec. 204. Obligation of funds.
`Sec. 205. Authorization of appropriations.
`TITLE III--ADMINISTRATION
`Sec. 301. Definitions.
`Sec. 302. Appointment of assistant secretary.
`Sec. 303. Consultation with other persons and agencies.
`Sec. 304. Administration of assistance.
`Sec. 305. Powers of the Secretary.
`Sec. 306. Certification.
`Sec. 307. Savings provisions.
`Sec. 308. Annual report.
`Sec. 309. Prevailing rate of wage.
`Sec. 310. Record of applications.
`Sec. 311. Records and audit.
`Sec. 312. Nondiscrimination requirements.
`Sec. 313. Authorization of appropriations.
`TITLE I--DEVELOPMENT INVESTMENT ASSISTANCE
`SEC. 101. FINDINGS AND PURPOSES.
  `(a) FINDINGS- The Congress finds and declares the following:
  `(1) Historical and structural economic patterns in national and world
  markets have resulted in disparate economic conditions among various areas
  and communities in the United States.
  `(2) Some areas and communities suffer from substantial and persistent
  unemployment and underemployment.
  `(3) Economic distress caused by structural problems, severe dislocations,
  or cyclical downturns adversely affects communities and areas and their
  residents, industry sectors, and groups within the population. Among the
  most severely affected in distressed areas are socially and economically
  disadvantaged individuals from groups which suffer the effects of past
  and present discriminatory practices.
  `(4) The changing national and global economies over the past decade have
  created new problems and challenges for the Nation. Our trade deficit has
  increased to serious proportions while our export of manufactured goods
  to other nations has dropped dramatically, and our export of industrial
  jobs to other nations has reached an alarming level.
  `(5) The private sector remains the ultimate generator of employment
  and economic growth, but the public sector must reverse decades of
  infrastructure neglect as a necessary concomitant to private business
  stability and expansion.
  `(6) It is in the national interest to develop a partnership between the
  public and private sectors to plan and implement development and adjustment
  activities to alleviate such distress.
  `(7) Delivering and coordinating Federal assistance to economically
  distressed areas and industries and groups within those areas is crucial
  to the health of the national economy and the well-being of the Nation's
  citizens.
  `(b) PURPOSES- The Congress declares that the purposes of this Act are--
  `(1) to promote balanced national growth and economic development by
  providing Federal aid to distressed areas in--
  `(A) planning and financing public works,
  `(B) promoting business assistance and other development activities to
  foster additional long-term employment opportunities for the unemployed
  and underemployed, and
  `(C) benefiting the socially and economically disadvantaged, through the
  stimulation of private investment through Federal assistance;
  `(2) to make the Nation's industrial and commercial resources more
  competitive in national and international markets;
  `(3) to build, rehabilitate, and repair public infrastructure where it is
  inadequate to support and encourage private investment in the area;
  `(4) to recognize and rely upon improved State and local governments'
  capacity to direct their own destinies; and
  `(5) to link public and private funds to foster coordination of resources
  between these sectors, in order to leverage the maximum investment in the
  long-term economic vitality of all areas.
`SEC. 102. DEVELOPMENT INVESTMENT ASSISTANCE.
  `(a) GRANTS- Upon application of an applicant qualifying under section 103
  and subject to the provisions of this title, the Secretary is authorized
  to make a grant to such applicant for one or more of the following:
  `(1) CONSTRUCTING AND IMPROVING PUBLIC FACILITIES- Construction, repair,
  rehabilitation, and improvement of public facilities, including demolition
  of existing structures and other site preparation measures, and the
  acquisition of land and other public works improvements to encourage and
  support private development.
  `(2) REVOLVING LOAN FUNDS- Establishment of revolving loan funds to promote
  establishment and growth of small businesses and to retain firms and
  entrepreneurs which contribute to the creation, retention, and expansion
  of private sector jobs.
  `(3) EMPLOYEE STOCK OWNERSHIP PLANS- Establishment of revolving loan funds
  to promote establishment of qualified employee ownership organizations
  which prevent economic dislocation, facilitate economic adjustment, or
  contribute to economic diversification and long-term economic vitality.
  `(b) TECHNICAL ASSISTANCE- Upon application of an applicant qualifying
  under section 103 and subject to the provisions of this title, the
  Secretary may provide technical assistance for improving and enhancing
  economic development.
`SEC. 103. QUALIFYING APPLICANTS AND LIMITATIONS ON LOCATIONS OF PROJECTS.
  `(a) APPLICANTS FOR DISTRESSED LOCAL GOVERNMENTS- The following entities
  may apply for assistance under section 102 for projects and activities to
  be carried out in the jurisdictional area of a unit of local government
  which meets the requirements of section 105:
  `(1) STATE GOVERNMENT- The State in which the unit of local government is
  located may apply if--
  `(A) such unit has a population of less than 50,000; and
  `(B) such unit is located outside the boundaries of an economic development
  district.
  `(2) LOCAL GOVERNMENT- The unit of local government may apply; except that--
  `(A) in any case in which the unit of local government has a population
  of less than 50,000 and is located outside the boundaries of an economic
  development district, such unit must consult the State in the preparation
  of the grant application; and
  `(B) in any case in which the unit of local government is located within
  the boundaries of an economic development district, such unit must consult
  such district in the preparation of the grant application.
  `(3) ECONOMIC DEVELOPMENT DISTRICT- The economic development district in
  which the unit of local government is located may apply.
  `(4) ECONOMIC DEVELOPMENT ORGANIZATION- A private or public nonprofit
  organization established for economic development purposes and representing
  an area within the jurisdictional area of the unit of local government
  may apply if--
  `(A) such unit has a population of 50,000 or more;
  `(B) such unit is located outside the boundaries of an economic development
  district; and
  `(C) the grant application has been approved by such unit.
  `(b) APPLICATIONS FOR INDIAN LANDS- An Indian tribe may apply for
  assistance under section 102 for projects and activities to be carried
  out on lands owned by, or held in trust for, such tribe if such lands meet
  the requirements of section 105.
  `(c) APPLICATIONS FOR POCKETS OF POVERTY- The following entities may
  apply for assistance under section 102 for projects and activities to be
  carried out in an area which meets the requirements of section 105 and
  is located in the jurisdictional area of a unit of local government which
  has a population of 50,000 or more and does not meet such requirements:
  `(1) LOCAL GOVERNMENT- The unit of local government may apply; except that
  in any case in which the unit of local government is located within the
  boundaries of an economic development district, such unit must consult
  such district in the preparation of the grant application.
  `(2) DEVELOPMENT ORGANIZATION AS APPLICANT- A private or public nonprofit
  organization established for economic development purposes and representing
  the area meeting the requirements of section 105 may apply if such
  organization consults the unit of local government in the preparation of
  the grant application.
`SEC. 104. APPLICATION FOR GRANT.
  `(a) CONTENTS- An application for assistance under this title shall include,
  but need not be limited to--
  `(1) a certification that the area over which the applicant has jurisdiction
  meets the requirements of section 105; except that--
  `(A) in any case in which the applicant is a State, economic development
  district, or an organization described in section 103(a)(4), the
  certification must be for the area over which the concerned unit of local
  government has jurisdiction;
  `(B) in any case in which the applicant is an Indian tribe, the certification
  must be for lands owned by, or held in trust for, such Indian tribe; and
  `(C) in any case in which the applicant is an organization described in
  section 103(c)(2), the certification must be for the area such organization
  represents;
  `(2) a certification relative to the performance of any responsibilities
  which the Secretary has agreed to accept under section 306; and
  `(3) a development investment strategy prepared in accordance with
  section 106.
  `(b) FACTORS TO BE CONSIDERED IN APPROVAL PROCESS- In approving applications
  for assistance under this title, the Secretary shall give consideration to--
  `(1) the severity of distress in the area for which the grant is to be made;
  `(2) the extent to which the grant will result in increased, or more
  stabilized, permanent employment in such area;
  `(3) the ratio of private sector investments committed in such area to
  the amount of the grant applied for;
  `(4) the extent to which the appropriate State and local governments have
  undertaken or agree to undertake other related actions to encourage economic
  development and the expansion of employment opportunities;
  `(5) the effectiveness of the development investment strategy and the
  degree to which the proposed project contributes to its implementation
  (including the strategy's relationship to economic problems identified
  in the strategy), expands employment opportunities in the existing labor
  market, provides incentives to retain private businesses, expands or
  improves public facilities, and encourages private investment; and
  `(6) the extent to which the strategy and activities are consistent
  with State and local goals and contribute to long-term economic growth
  and private sector employment opportunities and establish an overall
  strengthened economic and business environment which will be self-sustaining.
  `(c) LIMITATION ON ASSISTANCE FACILITATING RELOCATIONS- No assistance may be
  provided under this title for projects intended to facilitate the relocation
  of industrial or commercial plants or facilities from one area to another,
  unless the Secretary finds that such relocation would not significantly
  and adversely affect employment in, or the economic base of, the area from
  which the industrial or commercial plant or facility would be leaving.
`SEC. 105. DISTRESS REQUIREMENTS.
  `(a) CERTIFICATION- In order to be eligible for assistance under this
  title, the applicant must certify that the area which is required by
  section 103 to meet the requirements of this section meets one or more of
  the following criteria:
  `(1) The area has a per capita income of 80 percent or less of the national
  average.
  `(2) The area has an unemployment rate 1 percent above the national average
  percentage for the most recent 24-month period for which statistics are
  available.
  `(3) The area has experienced or is about to experience a sudden economic
  dislocation resulting in job loss that is significant both in terms of
  the number of jobs eliminated and the effect upon the employment rate of
  the area.
  `(4) The area has a Labor Force Participation rate of 90 percent or less
  of the national average.
  `(b) DOCUMENTATION OF DISTRESS- Documentation of distress shall be supported
  by Federal data, when available, and in other cases by data available
  through the State government. Such documentation shall be accepted by
  the Secretary unless it is determined to be inaccurate. The most recent
  statistics available must be used.
`SEC. 106. DEVELOPMENT INVESTMENT STRATEGY.
  `(a) PREPARATION AND CONTENTS- Except as provided in subsection (b),
  an applicant for assistance under this title shall prepare a development
  investment strategy for the area which is required by section 103 to meet
  the requirements of section 105. The development investment strategy must--
  `(1) identify the economic development problems sought to be addressed by
  the grant;
  `(2) identify past, present, and projected future economic development
  investments in such area and public and private participants and sources
  of funding for such investments;
  `(3) identify the extent to which the development investment strategy
  takes into account--
  `(A) availability of developable land and space in the area;
  `(B) public works, public service, and development facilities in the area;
  `(C) availability of low-cost capital;
  `(D) tax policy on investments in the area;
  `(E) level of skill of the labor force; and
  `(F) ability of State and units of local government to provide financial
  assistance in the management and implementation of the strategy;
  `(4) set forth a strategy for addressing the economic problems identified
  in paragraph (1) and discusses the manner in which the strategy will solve
  such problems;
  `(5) provide a description of the projects necessary to implement the
  strategy, an estimate and analysis of the costs and anticipated benefits of
  implementing the strategy, and an estimate of the timetables for completion
  of such projects;
  `(6) provide a summary of public and private resources which are expected
  to be available for such projects; and
  `(7) provide a comprehensive plan which demonstrates participation in all
  phases of the development and implementation of the development investment
  strategy by a representative percentage of small business concerns owned
  and controlled by socially and economically disadvantaged individuals,
  as defined by section 8(d) of the Small Business Act (15 U.S.C. 637(d))
  and relevant subcontracting regulations promulgated pursuant thereto.
  `(b) CONSULTATION OF STATE OR ECONOMIC DEVELOPMENT DISTRICT- In any case
  in which a unit of local government is the eligible applicant under section
  103(a)(2), the unit of local government shall consult the State or economic
  development district, respectively, in the preparation of a development
  investment strategy.
  `(c) APPROVAL OF DEVELOPMENT ORGANIZATION'S STRATEGY- In any case in which
  a private or public nonprofit development organization within a unit of
  local government is the eligible applicant under section 103(c)(2), the
  organization must consult the unit of local government in the preparation
  of the organization's development investment strategy.
`SEC. 107. LIMITATIONS ON REVOLVING LOAN FUNDS.
  `(a) PURPOSES AND USES OF GRANTS- Grants under section 102(a) shall be
  for the purposes of stimulating small business development and promoting
  economic growth which contributes to an improved local tax base and the
  creation of permanent employment opportunities. Such grants may only be made
  to establish or recapitalize a revolving loan fund which will be used only--
  `(1) for making loans or guaranteeing loans to small businesses for
  initial or working capital, or the purchase, rehabilitation or expansion
  of facilities or equipment; and
  `(2) for making loans or guaranteeing loans to businesses if a relatively
  small amount of capital is needed to complete financing necessary to retain
  the business in the area.
  `(b) DISTRESS REQUIREMENTS- A grant made under section 102(a)(2) shall
  be made on the condition that the revolving loan fund established or
  recapitalized pursuant to such grant shall be used only for providing
  assistance described in subsection (a) in areas which meet the requirements
  of section 105.
  `(c) LIMITATION ON AMOUNT OF GRANT- No grant for the establishment or
  recapitalization of a revolving loan fund under section 102(a)(2) shall
  be made for more than $1,000,000.
  `(d) CREDIT ELSEWHERE TEST- No loan or guarantee shall be made from
  a revolving loan fund established or recapitalized pursuant to a grant
  under section 102(a)(2) unless the financial assistance applied for is not
  otherwise available from private lenders on terms which in the opinion of
  the administrator of the revolving loan fund will permit the accomplishment
  of the project.
  `(e) TERMS OF GRANTS-
  `(1) USE ASSURANCES- Any applicant for a grant for establishment or
  recapitalization of a revolving loan fund under section 102(a)(2) shall
  give assurances that amounts of any loan which are repaid to the fund will
  be available only for the purposes set forth in subsection (a).
  `(2) REPAYMENT ASSURANCES- No loan or guarantee may be made from a revolving
  loan fund established or recapitalized pursuant to a grant under section
  102(a)(2) unless the applicant for such loan or guarantee provides reasonable
  assurance of repayment of the loan.
  `(3) GRANTEE AS ADMINISTRATOR- The grantee of any grant for establishment
  or recapitalization of a revolving loan fund under section 102(a)(2)
  shall administer the fund.
  `(f) CONSIDERATION OF PAST PERFORMANCE- In determining whether or not to
  make a grant for recapitalization of a revolving loan fund established or
  recapitalized pursuant to a grant under section 102(a)(2), the Secretary
  shall consider past performance of such fund.
`SEC. 108. FEDERAL SHARE.
  `(a) CONSTRUCTION AND IMPROVEMENT PROJECTS- The amount of any grant for a
  project described in section 102(a)(1) shall be that amount which when added
  to amounts available from all other sources is sufficient to complete such
  project. In no event shall the amount of any such grant exceed 50 percent of
  such cost of completing the project as determined at the time of the grant
  application. The Secretary may increase the maximum percentage of a grant
  from 50 percent to not more than 80 percent of the costs of completing
  a project described in section 102(a)(1) for an area which the Secretary
  determines is one of the most distressed of the areas meeting the distress
  requirements of section 105; except that the Secretary may not increase
  such percentage for more than 25 percent of the grants made in any fiscal
  year. In developing guidelines for determining which areas are the most
  distressed, the Secretary shall consider whether (1) the median family
  income for the area for the most recent 24-month period for which data is
  available is less than or equal to 75 percent of the national average median
  family income for such period, or (2) the average unemployment rate for
  the area for such period is greater than or equal to 2 times the national
  average unemployment for such period. No additional funds shall be granted
  or otherwise made available under this Act for any project described in
  section 102(a)(1) for which a grant has been made under this Act.
  `(b) ESTABLISHMENT OF REVOLVING LOAN FUNDS- The amount of any grant for
  the establishment of a revolving loan fund under section 102(a) shall
  not exceed an amount which is equal to the amount of funds available from
  all other sources for the establishment of such revolving loan fund. The
  amount of any additional grant for the recapitalization of a revolving
  loan fund previously established with a grant under section 102(a)(2)
  shall not exceed an amount which is equal to  1/3  of the amount of funds
  available from all other sources for such recapitalization.
  `(c) INDIAN TRIBES- In the case of a grant to an Indian tribe under section
  102(a), the Secretary may reduce or waive any non-Federal share required
  by this section.
`SEC. 109. LIMITATIONS.
  `(a) OBLIGATIONS IN A STATE- Except for expenditures to Indian tribes,
  not more than 15 percent of the appropriations made for a fiscal year
  pursuant to this title may be expended in any one State.
  `(b) OBLIGATIONS TO A PERSON- The Secretary shall not obligate more than
  $4,000,000 in any fiscal year to any person (including any State or local
  government or public organization) for grants under this title, other than
  grants for establishment of qualified employee ownership organizations.
`SEC. 110. COMMUNITY DEVELOPMENT CORPORATIONS.
  `(a) GRANTS- The Secretary may make grants to community development
  corporations to assist small businesses by reducing the interest rates
  for economic development activities to be carried out by such businesses
  in areas meeting the distress requirements of section 105.
  `(b) AGGREGATE AMOUNT- The aggregate amount of grants under this section
  may not exceed $10,000,000 in any fiscal year.
`SEC. 111. CONGRESSIONALLY MANDATED PROJECTS.
  Any Economic Development Administration project mandated by Congress must
  meet the eligibility criteria as defined by The Public Works and Economic
  Development Act of 1965 as amended.
 [Struck out->] `SEC. 111.  [] `SEC. 112.  [] $144,000,000  [