PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF 1965

As amended by the Proposed EDA Reauthorization Act of 2003

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (42 U.S.C. § 3121 note)

(a) Short Title.- This Act may be cited as the 'Public Works and Economic Development of 1965'.

(b) Table of contents.- The table of contents of this Act is as follows:

[omitted].

SEC. 2. FINDINGS AND DECLARATIONS. (42 U.S.C. § 3121)

(a) Findings.- Congress finds that -

(1) while the fundamentals for growth in the American economy remain strong [~~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 experiencing chronic [~~suffering economic distress in the form of~~] high unemployment, underemployment, low per capita incomes, [~~underemployment,~~] and outmigration as well as areas facing sudden and severe economic dislocations due to structural economic changes, changing trade patterns [~~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) sustained economic growth in our Nation, States, cities and rural areas is produced by expanding free enterprise through trade and enhanced competitiveness of regions;

[~~(2) as the economy of the United States continues to grow, those distressed areas contain significant human and infrastructure resources that are underused~~;

(3) the goal of Federal economic development programs is to raise the standard of living for all citizens and increase the wealth and overall rate of growth of the economy by encouraging local and regional communities to develop a more competitive and diversified economic base by:

(A) promoting job creation through increased innovation, productivity, and entrepreneurship; and

(B) empowering local and regional communities experiencing chronic high unemployment and low per capita income to attract substantially increased private-sector capital investment;

[(~~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, Tribal, and State organizations to maximize the impact of existing resources and enable regions, communities, and citizens to participate more fully in the American dream and national prosperity [~~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 achieve meaningful, long-lasting results, Federal, State, Tribal, and local economic development activities should have a clear focus, improved coordination, a comprehensive approach, common measures of success, and simplified and consistent requirements; and

[(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;]

(6) [~~(7)~~] Federal economic development efforts will be more effective if they are coordinated with, and build upon, the trade, workforce investment, and technology programs of the United States.[~~; and~~]

[(8) under this Act, new employment opportunities should be created by developing and expanding new and existing public works and other facilities and resources rather than by merely transferring jobs from one area of the United States to another.]

(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, Indian Tribes, and the Federal Government to increase their capacity to develop and implement comprehensive economic development strategies to enhance regional competitiveness in the global economy and support long-term development of regional economies ~~[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 focus on strengthening entrepreneurship and competitiveness, and take advantage of the development opportunities afforded by technological innovation and expanding and newly opened global markets.

SEC. 3. DEFINITIONS. (42 U.S.C. § 3122)

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);~~]

(i) [~~(ii)~~] an economic development district;

(ii) [~~(iii)~~] an Indian tribe;

(iii) [~~(iv)~~] a State;

(iv) [~~(v)~~] a city or other political subdivision of a State, including a special purpose unit of State or local government, or a consortium of political subdivisions;

(v)[~~(vi)~~] an institution of higher education or a consortium of institutions of higher education; or

(vi) ~~(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. The requirement under subparagraph (A)(vi) that the nonprofit organization or association is "acting in cooperation with officials of a political subdivision of a State" does not apply in the case of training, research and technical assistance grants under section 207 that are national or regional in scope.

(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 any Indian tribe, band, nation, pueblo, or other organized group or community, including any Alaska Native village or Regional Corporation (as defined in or established under the Alaska Native Claims Settlement Act (43 U.S.C. § 1601 et seq.)), that is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.

(8) Regional Commissions.- The term 'Regional Commissions' as used in section 403 of this Act refers to the regional economic development authorities: the Delta Regional Authority (Pub. L. No. 106-554, Sec. 1(a)(4) [Div. B, title VI], 114 Stat. 2763A-268) (7 U.S.C. § 2009aa et seq.), the Denali Commission (Pub. L. No. 105-277, Div. C, title III, 112 Stat. 2681-637) (42 U.S.C. § 3121 note), and the Northern Great Plains Regional Authority (Pub.L.No. 107-171, 116 Stat. 375) (7 U.S.C. § 2009bb et seq.).

(9) Secretary.- The term 'Secretary' means the Secretary of Commerce.

(10) [~~(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.

(11) [~~(10)~~] United States.- The term 'United States' means all of the States.

(12) University center.- The term 'university center' refers to a University Center for Economic Development established pursuant to the authority of section 207(a)(2)(D) of this Act.

TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND

COORDINATION

SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT PARTNERSHIPS. (42 U.S.C. § 3131)

(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, and nonprofit 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. (42 U.S.C. § 3132)

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. (42 U.S.C. § 3133)

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. (42 U.S.C. § 3141)

(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

(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.

(d) Sub-grants.- (1) Subject to paragraph (2), a recipient of a grant under this section may directly expend the grant funds or may redistribute the funds in the form of a sub-grant to other recipients eligible to receive assistance under this section to fund required components of the scope of work approved for the project.

(2) Under paragraph (1), a recipient may not redistribute grant funds to a for-profit entity.

SEC. 202. BASE CLOSINGS AND REALIGNMENTS. (42 U.S.C. § 3142)

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. (42 U.S.C. § 3143)

(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, to the maximum extent practicable, take into consideration regional economic development strategies [~~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 the economic development district plans and provide a justification for each inconsistency.~~]

(3) [~~(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;

(D) assist in carrying out state's workforce investment strategy (as outlined in the State plan required under section 112 of the Workforce Investment Act of 1998 (29 U.S.C. § 2822); and

(E) balance resources through the sound management of physical development.

(4) [~~(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.

(e) Sub-grants.- (1) Subject to paragraph (2), a recipient of a grant under this section may directly expend the grant funds or may redistribute the funds in the form of a sub-grant to other recipients eligible to receive assistance under this section to fund required components of the scope of work approved for the project.

(2) Under paragraph (1), a recipient may not redistribute grant funds to a for-profit entity.

SEC. 204. COST SHARING. (42 U.S.C. § 3144)

(a) Federal Share.- The Secretary shall issue regulations to establish the applicable grant rates for projects based on the relative needs of the areas in which the projects are located. Except as provided in subsection (c) below, the amount of a grant for a project under this title may not exceed 80 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, and assumptions of debt.

(c) Increase in Federal Share.-

(1) Indian tribes.--In the case of a grant to an Indian tribe, the Secretary may increase the Federal share above the percentage specified in subsection (a) up to 100 percent of the cost of the project.

(2) 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 increase the Federal share above the percentage specified in subsection (a) up to 100 percent of the cost of the project.

SEC. 205. GRANTS SUPPLEMENTING OTHER AGENCY GRANTS. (42 U.S.C. § 3145)

(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) is designated as eligible for an allocation of funds under this section by the Secretary; 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.- Subject to subsection (c) below, in order to assist eligible recipients to take advantage of designated Federal grant programs, 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 recipient's economic situation, cannot provide the required non-Federal share.

(c) Requirements Applicable to Supplementary Grants.--

(1) Amount of supplementary grants.- The share of the project cost supported by a supplementary grant under this section may not exceed the applicable grant rate under section 204.

(2) Form of supplementary grants.- The Secretary shall make supplementary grants by

(A) the payment of funds made available under this Act to the heads of the Federal agencies responsible for carrying out the applicable Federal programs, or

(B) the award of funds under this Act which will be combined with funds transferred from other Federal agencies in projects administered by the Secretary.

(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.

[~~SEC. 204. COST SHARING. (42 U.S.C. § 3144)~~

~~(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. (42 U.S.C. § 3145)~~

~~(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.

~~(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. (42 U.S.C. § 3146)

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; and

(3) allocations of assistance under this title promote job creation through increased innovation, productivity, and entrepreneurship, and financial assistance extended pursuant to those allocations will have a high probability of meeting or exceeding applicable performance requirements established in connection with extension of the assistance.

SEC. 207. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL ASSISTANCE. (42 U.S.C. § 3147)

(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;

(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) studies that evaluate the effectiveness of collaborations between projects funded under this act with projects funded under the Workforce Investment Act of 1998 (29 U.S.C. §2801 et seq.); and

(H) 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.

(c) Sub-grants.- A recipient of a grant under this section may directly expend the grant funds or may redistribute the funds in the form of a sub-grant to other recipients eligible to receive assistance under this section to fund required components of the scope of work approved for the project.

SEC. 208. [REPEALED.]

[~~SEC. 208. PREVENTION OF UNFAIR COMPETITION. (42 U.S.C. 3148)~~

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. (42 U.S.C. § 3149)

(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;

(3) international trade, for help in economic restructuring of the communities; or

(4) fishery failures, in areas with respect to which a determination that there is a commercial fishery failure has been made under section 312(a) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. § 1861a(a)).

(d) Direct Expenditure or Redistribution by Recipient.-

(1) In general.- Subject to paragraph (2), a[~~n 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), a[~~n eligible~~] recipient may not provide any grant to a private for-profit entity.

(e) Special Provisions relating to Revolving Loan Fund Grants.- The Secretary shall promulgate regulations to ensure the proper operation and financial integrity of revolving loan funds established by recipients with assistance under this section.

(1) Efficient administration.- In order to improve the ability to manage and administer the Federal interest in revolving loan funds and in accordance with regulations issued for such purposes, the Secretary may amend and consolidate grant agreements governing revolving loan funds to provide flexibility with respect to lending areas and borrower criteria. In addition, the Secretary may assign or transfer assets of a revolving loan fund to a third party for the purpose of liquidation and a third party may retain assets of the fund to defray costs related to liquidation. The Secretary may also take such other actions with respect to management and administration as the Secretary determines to be appropriate to carry out the purposes of this Act, including actions to enable revolving loan fund operators to sell or securitize loans to the secondary market (except that such actions may not include issuance of a Federal guaranty by the Secretary).

(2) Release of Federal interests.- The Secretary may release, in whole or in part, any property interest in connection with a revolving loan fund grant after the date that is 20 years after the date on which the grant was awarded, provided that the recipient-

(A) is in compliance with the terms of its grant and operating the fund at an acceptable level of performance as determined by the Secretary; and

(B) reimburses the government prior to the release for the amount of the Secretary's investment in the fund or the pro-rata share of the fund at the time of the release, whichever is less.

Any action taken by the Secretary pursuant to this subsection with respect to a revolving loan fund shall not constitute a new obligation provided that all grant funds associated with the original grant award have been disbursed to the recipient.

SEC. 210. CHANGED PROJECT CIRCUMSTANCES. (42 U.S.C. § 3150.)

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, subject (except for a grant for which funds were obligated in fiscal year 1995) to the availability of appropriations, 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. (42 U.S.C. § 3151)

In any case in which the Secretary has made 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 under section 201 or 209 of this title, and, before closeout [~~after the grant has been made but before completion~~] of the project, the Secretary determines that the cost of the project based on the designs and specifications that were the basis of the grant has decreased because of decreases in costs-

(1) without further appropriations action, the Secretary may approve[~~, subject to the availability of appropriations,~~] 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) may be used for other investments authorized for support under this Act ~~[shall be deposited in the general fund of the Treasury~~.

In addition to paragraphs (1) and (2) of this section, in the event of construction underruns in projects utilizing funds transferred from other Federal agencies pursuant to section 604 of this Act, the Secretary may utilize these funds in conjunction with paragraphs (1) or (2) with the approval of the originating agency or will return the funds to the originating agency.

SEC. 212. REPORTS BY RECIPIENTS. (42 U.S.C. § 3152)

(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. (42 U.S.C. § 3153)

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.

SEC. 214. SPECIAL IMPACT AREAS.

Special Impact Areas.- The Secretary is authorized to make grants, enter into contracts and provide technical assistance for projects and programs that the Secretary finds will fulfill a pressing need of the area and be useful in alleviating or preventing conditions of excessive unemployment or underemployment or assist in providing useful employment opportunities for the unemployed or underemployed residents in the area. In extending assistance under this section, the Secretary may waive, in whole or in part, as appropriate, the provisions of section 302 of this Act provided that the Secretary determines that such assistance will carry out the purposes of the Act.

SEC. 215. PERFORMANCE INCENTIVES.

(a) In accordance with regulations issued for such purposes, the Secretary may award transferable performance credits in an amount that does not exceed 10 percent of the grant amount awarded under section 201 or 209 of this Act on or after the effective date of this amendment. The Secretary shall base such performance incentives on the extent to which a recipient meets or exceeds performance requirements established in connection with extension of the assistance.

(b) A recipient awarded a transferable performance credit under this section may redeem the credit to increase the Federal share of a subsequent grant funded under sections 201 and 209 of this Act above the maximum Federal share allowable under section 204 up to 80 percent of the project cost. A performance credit must be redeemed within 5 years of its issue date.

(c) An original recipient may also sell or transfer the credit in its entirety to another eligible recipient for use in connection with a grant approved by the Secretary under this Act without reimbursement to the Secretary for redemption in accordance with subsection (b) above.

(d) The Secretary shall attach such terms and conditions or limitations as the Secretary deems appropriate in issuing a performance credit. Performance credits shall be paid out of appropriations for economic development assistance programs made available in the year of redemption to the extent of availability.

(e) The Secretary shall include information regarding issuance of performance credits in the annual report under section 603 of this Act.

TITLE III--ELIGIBILITY; COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

SEC. 301. ELIGIBILITY OF AREAS. ( 42 U.S.C. § 3161)

(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 one 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.

(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. (42 U.S.C. § 3162)

(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, maximizes effective development and use of the workforce (consistent with any applicable state and local workforce investment strategy under the Workforce Investment Act of 1998 (29 U.S.C. § 2801 et seq.), 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) to the satisfaction of the Secretary.

(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. (42 U.S.C. § 3171)

(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. ( 42 U.S.C. § 3172)

The Secretary shall, by regulation, promulgate standards for the termination or modification of the designation of economic development districts.

[~~SEC. 403. INCENTIVES. (42 U.S.C. § 3173)~~

(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. 403 [~~404~~]. PROVISION OF COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES TO APPALACHIAN REGIONAL COMMISSION. (42 U.S.C. § 3174)

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. § 14102)), 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. If any part of an economic development district is in a region covered by one or more other Regional Commissions as defined in section 3(8) of this Act, the economic development district shall ensure that a copy of the comprehensive economic development strategy of the district is provided to the affected regional commission.

SEC. 404 [~~405~~]. ASSISTANCE TO PARTS OF ECONOMIC DEVELOPMENT DISTRICTS NOT IN ELIGIBLE AREAS. (42 U.S.C. § 3175)

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. (42 U.S.C. § 3191)

(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. (42 U.S.C. § 3192)

In carrying out this Act, the Secretary shall-

(1) maintain a central information clearinghouse on the Internet with information on [~~matters relating to~~] economic development, economic adjustment, disaster recovery, defense conversion, and trade adjustment programs and activities of the Federal ~~[and State~~] government [s], links to State economic development organizations, and links to other appropriate economic development resources ~~[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~~] and State 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; and

(4) obtain appropriate information from other Federal agencies needed to carry out the duties under this Act.

SEC. 503. CONSULTATION WITH OTHER PERSONS AND AGENCIES. (42 U.S.C. § 3193)

(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. (42 U.S.C. § 3194)

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. (42 U.S.C. § 3195)~~

~~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. 505 [~~506~~]. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS. (42 U.S.C. § 3196)

(a) In General.- The Secretary shall conduct an evaluation of each university center and each economic development district that receives grant assistance under this Act (each referred to in this section as a `grantee') to assess the grantee's performance and contribution toward retention and creation of employment.

(b) Purpose of Evaluations of University Centers.- The purpose of the evaluations of university centers 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 Evaluations.- Evaluations under subsection (a) shall be conducted on a continuing basis so that each grantee is evaluated within 3 years after the first award of assistance to the grantee ~~[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 grantee receives the assistance.

(d) Evaluation Criteria.-

(1) Establishment.- The Secretary shall establish criteria for use in conducting evaluations under subsection (a).

(2) Evaluation criteria for university centers.- The criteria for evaluation of a university center shall, at a minimum, provide for an assessment of the center's contribution to providing technical assistance, conducting applied research, [~~and~~] disseminating results of the activities of the center, and measuring the outcome-based results of the university centers' activities.

(3) Evaluation criteria for economic development districts.- The criteria for evaluation of an economic development district shall, at a minimum, provide for an assessment of management standards, financial accountability, and program performance as evidenced by outcome-based results, including the number of jobs created or retained, and amount of private-sector funds leveraged.

(e) Peer Review.- In conducting an evaluation of an [~~university center or~~] economic development district under subsection (a), the Secretary shall provide for the participation of at least 1 other [~~university center or~~] economic development district, as appropriate, on a

cost-reimbursement basis.

SEC. 506 [~~507~~]. NOTIFICATION OF REORGANIZATION. (42 U.S.C. § 3197)

Not later than 30 days before the date of any reorganization of the offices, programs, or activities of the Economic Development Administration, the Secretary shall provide notification of the reorganization to the Committee on Environment and Public Works and the Committee on Appropriations of the Senate, and the Committee on Transportation and Infrastructure and the Committee on Appropriations of the House of Representatives.

TITLE VI--MISCELLANEOUS

SEC. 601. POWERS OF SECRETARY. (42 U.S.C. § 3211)

(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) 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) 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

(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.);

(D) the Community Emergency Drought Relief Act of 1977 (42 U.S.C. § 5184 note; Public Law No. 95-31).

(2) Release.- The Secretary may release, in whole or in part, any real property interest, or tangible personal 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. 602. MAINTENANCE OF STANDARDS. (42 U.S.C. § 3212)

All laborers and mechanics employed by contractors or subcontractors on projects assisted by the Secretary under this Act shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. § 3141 et seq. [~~§§ 276a-276a-5~~]). The Secretary shall not extend any financial assistance under this chapter for such a project without first obtaining adequate assurance that these labor standards will be maintained upon the construction work. The Secretary of Labor shall have, with respect to the labor standards specified in this provision, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267), and section 3145 [~~276c~~] of title 40.

SEC. 603. ANNUAL REPORT TO CONGRESS. (42 U.S.C. § 3213)

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. (42 U.S.C. § 3214)

(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.

(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. (42 U.S.C. § 3215)

(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. (42 U.S.C. § 3216)

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. (42 U.S.C. § 3217)

(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. (42 U.S.C. § 3218)

(a) Record keeping 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. (42 U.S.C. § 3219)

[(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. (42 U.S.C. § 3220)

Under terms and conditions determined by the Secretary, the Secretary may accept the certifications of an applicant for assistance under this Act that the applicant meets the requirements of this Act.

TITLE VII--FUNDING

SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS. (42 U.S.C. § 3231)

(a) Economic development assistance programs.- There are authorized to be appropriated for economic development assistance programs to carry out this Act $331,027,000 for fiscal year 2004, and such sums as may be necessary for fiscal years 2005, 2006, 2007, and 2008, to remain available until expended.

(b) Salaries and expenses.- There are authorized to be appropriated for salaries and expenses of administering this Act $33,377,000 for fiscal year 2004, and such sums as may be necessary for each of the fiscal years from 2005 through 2008, to remain available until expended.

[There are authorized to be appropriated to carry out this Act $397,969,000 for fiscal year 1999, $368,000,000 for fiscal year 2000, $335,000,000 for fiscal year 2001, $335,000,000 for fiscal year 2002, and $335,000,000 for fiscal year 2003, to remain available until

~~expended.~~]

SEC. 702. AUTHORIZATION OF APPROPRIATIONS FOR DEFENSE CONVERSION ACTIVITIES. (42 U.S.C. § 3232)

(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. (42 U.S.C. § 3233)

(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.⁽¹⁾

1. NOTE on 1998 Amendments:

Section 101 of Public Law No. 105-393 set out the short title for the 1998 amendments.

Section 102(a) set out the amendments to section 1 through the end of title VI of PWEDA.

Section 102(b) -

Paragraphs (1) and (2) amended section 712 of the old PWEDA to redesignate this section dealing with Davis-Bacon requirements on EDA-assisted projects as section 602 of the revised PWEDA and to make minor technical changes to citations;

Paragraph (3) struck the remaining provisions of title VII and inserted sections 701-703 above dealing with authorizations.

Sections 103 through 105 provided as follows:

" SEC. 103. CONFORMING AMENDMENT.

"Section 5316 of title 5, United States Code, is amended by striking 'Administrator for Economic Development'.

"SEC. 104. TRANSITION PROVISIONS. (42 U.S.C.§ 3121 note.)

"(a) Existing Rights, Duties, and Obligations.--This title, including the amendments made by this title, 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 title.

"(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 title.

"(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 effective date of this title) 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 title 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 title.

"SEC. 105. EFFECTIVE DATE. (42 U.S.C. § 3121 note)

"This title and the amendments made by this title 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.".