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115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-749
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TREATING BARRIERS TO PROSPERITY ACT OF 2018
_______
June 12, 2018.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Shuster, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 5294]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 5294) to amend title 40, United
States Code, to address the impact of drug abuse on economic
development in Appalachia, and for other purposes, having
considered the same, report favorably thereon without amendment
and recommend that the bill do pass.
CONTENTS
Page
Purpose of Legislation........................................... 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 3
Legislative History and Consideration............................ 4
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 4
New Budget Authority and Tax Expenditures........................ 4
Congressional Budget Office Cost Estimate........................ 4
Performance Goals and Objectives................................. 5
Advisory of Earmarks............................................. 5
Duplication of Federal Programs.................................. 6
Disclosure of Directed Rule Makings.............................. 6
Federal Mandate Statement........................................ 6
Preemption Clarification......................................... 6
Advisory Committee Statement..................................... 6
Applicability of Legislative Branch.............................. 6
Section-by-Section Analysis of Legislation....................... 6
Changes in Existing Law Made by the Bill, as Reported............ 7
Purpose of Legislation
H.R. 5294, the Treating Barriers to Prosperity Act, amends
title 40, United States Code, to address the impact of drug
abuse on economic development in Appalachia, and for other
purposes.
Background and Need for Legislation
The Appalachian Regional Commission (ARC) was created in
the Appalachian Regional Development Act of 1965 (Public Law
89-4). The primary function of ARC is to provide economic
development assistance to a 13-state region. The region
includes all of West Virginia and parts of Alabama, Georgia,
Kentucky, Maryland, Mississippi, New York, North Carolina,
South Carolina, Ohio, Pennsylvania, Tennessee, and Virginia.
ARC is a federal-state governmental agency consisting of the
governors of the 13 Appalachian states and a federal co-
chairman. Project proposals must originate in, and be approved
by, a state. The Commission allocates the level of funding to
each state.
In 2017, ARC commissioned two reports specifically
examining potential health challenges to economic development
in Appalachia. In August 2017, ARC issued ``Health Disparities
in Appalachia'' and ``Appalachian Diseases of Despair.''\1\
These reports detail the health disparities in Appalachia and,
more specifically, the impact of the opioid crisis in
Appalachia. Specifically, the reports noted:
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\1\See Appalachian Diseases of Despair, Prepared for the
Appalachian Regional Commission, The Walsh Center for Rural Health
Analysis, NORC at the University of Chicago (2017); Health Disparities
in Appalachia, The Cecil G. Sheps Center for Health Services Research,
the University of North Carolina at Chapel Hill (2017).
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The household income in Appalachia is 80
percent of the U.S. average, and 17 percent of
Appalachians live below the poverty level.\2\
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\2\Data Snapshot, Income and Poverty in Appalachia, Appalachian
Regional Commission.
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Nationally, the majority of drug overdose
deaths involve opioids and, since 1999, the number of
overdose deaths involving opioids has quadrupled.\3\
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\3\See Record Overdose Deaths, Opioid Overdose, Centers for Disease
Control and Prevention: https://www.cdc.gov/drugoverdose/epidemic/
index.html.
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Between 1999 and 2014, while the overall
mortality rate in non-Appalachian states decreased by
10 percent, the overall mortality rate in Appalachia
increased by 5 percent. By 2015, the overall mortality
rate in Appalachia was 32 percent higher than in the
non-Appalachian regions of the United States.
In 2015, among 15- to 64-year-olds in
Appalachia, there were 5,594 overdose deaths--65
percent higher in Appalachia than to the rest of the
Nation. The disparities were greatest among people 25
to 54 years old.
In 2015, 69 percent of the overdose deaths
were caused by opioids.
In comparing the mortality rates for
diseases of despair within states with Appalachian
portions and non-Appalachian portions--the differences
were stark. For example, in 2015, the mortality rate in
Appalachian portions of Maryland were 63 percent higher
than in non-Appalachian portions. In Pennsylvania, the
difference was 28 percent, and in Kentucky it was 26
percent.
The reports highlight that when examining specifically
overdose deaths, those individuals who are 25 to 44 years old
experienced mortality rates 70 percent higher than the non-
Appalachian states. Typically, this group includes those in
their prime working years which has created a significant
challenge to economic development in the region. For example,
the Pennsylvania Chamber of Business and Industry, citing a
report released in September 2017, noted that opioids are
responsible for 20 percent of the workforce decline for men and
25 percent for women.\4\ The Pennsylvania Chamber further noted
that addressing the opioid epidemic is an integral component of
workforce strategy.\5\
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\4\``Where Have All the Workers Gone?'' Alan B. Krueger, Princeton
University, September 2017.
\5\Gene Barr, President and CEO, Pennsylvania Chamber of Business
and Industry testimony Before the Center for Rural Pennsylvania,
October 26, 2017.
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In testimony before the Subcommittee on Economic
Development, Public Buildings, and Emergency Management on
December 12, 2017, the then-Federal Co-Chair Earl Gohl of the
Appalachian Regional Commission detailed the specific
impediments to job creation due to opioid and other drug abuse.
Mr. Gohl noted the impact of opioid abuse on workers in their
prime productive years and how the abuse is stunting economic
potential of the region by creating a ``doughnut-hole'' in the
workforce\6\--people in their prime working years (25 to 54
years ago) being impacted the most. He further noted the
challenges are compounded by proportionately fewer health
professionals in the region.\7\
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\6\``Diseases of Despair'' typically refers to drug and alcohol
abuse, related health concerns, and suicide.
\7\Statement of Earl Gohl, Federal Co-Chair, Appalachian Regional
Commission, before the House Subcommittee on Economic Development,
Public Buildings and Emergency Management, House Committee on
Transportation and Infrastructure, December 12, 2017.
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Because the opioid crisis has created challenges to
spurring economic development and job creation in already
distressed communities, positioning economic development
agencies such as ARC to help overcome these barriers is needed.
The provisions of the bill ensure funding is specifically
focused on impediments to job creation and economic
development, ensures states in the Appalachian region can
effectively share best practices, and ties in clearer authority
to attract health-based businesses, workers and technology to
the region. While the ARC's existing authority has provided ARC
the ability to support certain efforts to combat the opioid
crisis, clarifying and strengthening that role is critical to
economic development in the region.
Hearings
The Subcommittee on Economic Development, Public Buildings,
and Emergency Management held the following hearing on subjects
related to matters contained in H.R. 5294:
``The Opioid Epidemic in Appalachia: Addressing
Hurdles to Economic Development in the Region'' held on
December 12, 2017. The purpose of the hearing was to
examine the impact of the opioid crisis on efforts in
Appalachia to spur economic development and growth in
distressed communities, to explore possible solutions
to the crisis, and to examine the role of federal
economic development programs, such as the Appalachian
Regional Commission (ARC), in addressing this epidemic.
Legislative History and Consideration
On March 15, 2018, Representative Lou Barletta (R-PA)
introduced H.R. 5294 amending title 40, United States Code, to
address the impact of drug abuse on economic development in
Appalachia, and for other purposes. The bill was referred
solely to the Committee on Transportation and Infrastructure.
On April 12, 2018, the Committee on Transportation and
Infrastructure met in open session and ordered the bill
reported favorably to the House by voice vote with a quorum
present.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each record vote
on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against. There were no recorded votes taken in connection
with consideration of H.R. 5294.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
New Budget Authority and Tax Expenditures
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Congressional Budget Office Cost Estimate
With respect to the requirement of clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives and section
402 of the Congressional Budget Act of 1974, the Committee has
received the enclosed cost estimate for H.R. 5294 from the
Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 10, 2018.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5294, the Treating
Barriers to Prosperity Act of 2018.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Robert Reese.
Sincerely,
Keith Hall,
Director.
Enclosure.
H.R. 5294--Treating Barriers to Prosperity Act of 2018
H.R. 5294 would clarify that the Appalachian Regional
Commission (ARC) may enter into contracts with and provide
grants to people and organizations in Appalachia for projects
and other activities aimed at reducing drug abuse and the
negative effects of drug abuse, including opioid abuse, in the
region. Such projects would include facilitating the sharing of
best practices among states for reducing drug abuse; creating
programs designed to reduce harm to the workforce from drug
abuse; attracting relevant health care services, businesses,
and workers to the region; and developing infrastructure to
support greater use of telemedicine in Appalachia.
Under current law, $110 million annually through 2020 is
authorized to be appropriated to ARC to carry out various
provisions in law, including the opioid provisions in H.R.
5294. Because the bill would not increase the amounts
authorized to be appropriated for those projects, CBO estimates
that implementing H.R. 5294 would have no budgetary effects. In
2018, ARC allocated approximately $3 million of the $155
million provided to ARC to projects addressing the opioid
crisis and other drug abuse in Appalachia.
Enacting H.R. 5294 would not affect direct spending or
revenues; therefore, pay-as-you-go procedures do not apply.
CBO estimates that enacting H.R. 5294 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2029.
H.R. 5294 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is Robert Reese.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Performance Goals and Objectives
With respect to the requirement of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goal and objective of this legislation is to amend
title 40, United States Code, to address the impact of drug
abuse on economic development in Appalachia, and for other
purposes.
Advisory of Earmarks
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee is required to include a list
of congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), and 9(g) of
rule XXI of the Rules of the House of Representatives. No
provision in the bill includes an earmark, limited tax benefit,
or limited tariff benefit under clause 9(e), 9(f), or 9(g) of
rule XXI.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee finds that no provision
of H.R. 5294 establishes or reauthorizes a program of the
federal government known to be duplicative of another federal
program, a program that was included in any report from the
Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Disclosure of Directed Rule Makings
Pursuant to section 3(i) of H. Res. 5, 115th Cong. (2017),
the Committee finds that enacting H.R. 5294 does not direct the
completion of a specific rulemaking within the meaning of
section 551 of title 5, United States Code.
Federal Mandate Statement
The Committee adopts as its own the estimate of federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee states that H.R. 5294 does not
preempt any state, local, or tribal law.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are created by this
legislation.
Applicability of Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
Section-by-Section Analysis of Legislation
Section 1. Short title
Section 1 provides that the Act may be cited as the
``Treating Barriers to Prosperity Act of 2018.''
Section 2. Drug abuse mitigation initiative
Section 2 amends Chapter 145 of title 40, United States
Code, by inserting a new section at the end that authorizes the
Appalachian Regional Commission to provide technical assistance
to, make grants to, enter into contracts with, or otherwise
provide amounts to individuals or entities in Appalachia for
projects and activities to address drug abuse, including opioid
abuse, in the region.
The section also clarifies that the projects and activities
may include facilitating the sharing of best practices;
initiating or expanding programs designed to eliminate or
reduce the harm to the workforce and economic growth of the
region that results from such abuse; attracting and retaining
relevant health care services, businesses, and workers; and
developing relevant infrastructure, including broadband
infrastructure, that support the use of telemedicine.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, 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):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
TITLE 40, UNITED STATES CODE
* * * * * * *
SUBTITLE IV--APPALACHIAN REGIONAL DEVELOPMENT
* * * * * * *
CHAPTER 145--SPECIAL APPALACHIAN PROGRAMS
SUBCHAPTER I--PROGRAMS
Sec.
14501. Appalachian development highway system.
* * * * * * *
14510. Drug abuse mitigation initiative.
* * * * * * *
SUBCHAPTER I--PROGRAMS
* * * * * * *
Sec. 14510. Drug abuse mitigation initiative
(a) In General.--The Appalachian Regional Commission may
provide technical assistance to, make grants to, enter into
contracts with, or otherwise provide amounts to individuals or
entities in the Appalachian region for projects and activities
to address drug abuse, including opioid abuse, in the region,
including projects and activities--
(1) to facilitate the sharing of best practices among
States, counties, and other experts in the region with
respect to reducing such abuse;
(2) to initiate or expand programs designed to
eliminate or reduce the harm to the workforce and
economic growth of the region that results from such
abuse;
(3) to attract and retain relevant health care
services, businesses, and workers; and
(4) to develop relevant infrastructure, including
broadband infrastructure that supports the use of
telemedicine.
(b) Limitation on Available Amounts.--Of the cost of any
activity eligible for a grant under this section--
(1) not more than 50 percent may be provided from
amounts appropriated to carry out this section; and
(2) notwithstanding paragraph (1)--
(A) in the case of a project to be carried
out in a county for which a distressed county
designation is in effect under section 14526,
not more than 80 percent may be provided from
amounts appropriated to carry out this section;
and
(B) in the case of a project to be carried
out in a county for which an at-risk
designation is in effect under section 14526,
not more than 70 percent may be provided from
amounts appropriated to carry out this section.
(c) Sources of Assistance.--Subject to subsection (b), a
grant provided under this section may be provided from amounts
made available to carry out this section in combination with
amounts made available--
(1) under any other Federal program (subject to the
availability of subsequent appropriations); or
(2) from any other source.
(d) Federal Share.--Notwithstanding any provision of law
limiting the Federal share under any other Federal program,
amounts made available to carry out this section may be used to
increase that Federal share, as the Appalachian Regional
Commission determines to be appropriate.
* * * * * * *
