H.R. 4157 — Public Works and Economic Development Act Amendments of 1992

 
HR 4157 RFS
102d CONGRESS
2d Session
 H. R. 4157
IN THE SENATE OF THE UNITED STATES
October 3 (legislative day, SEPTEMBER 30), 1992
Received; read twice and referred to the Committee on Environment and
Public Works
AN ACT
To amend the Public Works and Economic Development Act of 1965 and the
Appalachian Regional Development Act of 1965.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
TITLE I--NATIONAL DEVELOPMENT INVESTMENT
SEC. 101. SHORT TITLE.
  This title may be cited as the `Public Works and Economic Development Act
  Amendments of 1992'.
SEC. 102. STATEMENT OF PURPOSE.
  Section 2 of the Public Works and Economic Development Act of 1965 is
  amended by adding at the end the following:
`Congress further declares that changing national and global economies have
created new problems and challenges for the Nation; that between 1982 and
1992 the United States has become a debtor rather than a creditor nation and
has been running a trade deficit; that United States export of industrial and
manufacturing jobs to other nations has reached an alarming level; and that,
therefore, the Federal Government, recognizing that the private sector remains
the ultimate generator of employment and economic growth, should promote
balanced national growth and economic development by providing Federal aid
to overcome infrastructure neglect in distressed areas, to encourage private
capital investment, business stability, and expansion by helping the Nation's
industrial and commercial resources become more competitive in national and
international markets.'.
SEC. 103. AMENDMENT TO TITLES I THROUGH VII OF PUBLIC WORKS AND ECONOMIC
DEVELOPMENT ACT OF 1965.
  The Public Works and Economic Development Act of 1965 is amended by striking
  titles I through VII and inserting the following:
`TITLE I--DEVELOPMENT INVESTMENT ASSISTANCE
`SEC. 101. DEVELOPMENT INVESTMENT ASSISTANCE.
  `(a) GRANTS- Upon application of an applicant qualifying under section 102
  and subject to the provisions of this title, the Secretary is authorized
  to make a grant to such applicant for one or more of the following:
  `(1) CONSTRUCTING AND IMPROVING PUBLIC FACILITIES- Construction, repair,
  rehabilitation, and improvement of public facilities, including demolition
  of existing structures and other site preparation measures, and the
  acquisition of land and other public works improvements to encourage and
  support private development.
  `(2) REVOLVING LOAN FUNDS- Establishment of revolving loan funds to promote
  establishment and growth of small businesses and to retain firms and
  entrepreneurs which contribute to the creation, retention, and expansion
  of private sector jobs.
  `(3) EMPLOYEE STOCK OWNERSHIP PLANS- Establishment of revolving loan funds
  to promote establishment of qualified employee ownership organizations
  which prevent economic dislocation, facilitate economic adjustment, or
  contribute to economic diversification and long-term economic vitality.
  `(b) TECHNICAL ASSISTANCE- Upon application of an applicant qualifying
  under section 102 and subject to the provisions of this title, the
  Secretary may provide technical assistance for improving and enhancing
  economic development.
`SEC. 102. QUALIFYING APPLICANTS AND LIMITATIONS ON LOCATIONS OF PROJECTS.
  `(a) APPLICANTS FOR DISTRESSED LOCAL GOVERNMENTS- The following entities
  may apply for assistance under section 101 for projects and activities to
  be carried out in the jurisdictional area of a unit of local government
  which meets the requirements of section 104:
  `(1) STATE GOVERNMENT- The State in which the unit of local government is
  located may apply if--
  `(A) such unit has a population of less than 50,000; and
  `(B) such unit is located outside the boundaries of an economic development
  district.
  `(2) LOCAL GOVERNMENT- The unit of local government may apply; except that--
  `(A) in any case in which the unit of local government has a population
  of less than 50,000 and is located outside the boundaries of an economic
  development district, such unit must consult the State in the preparation
  of the grant application; and
  `(B) in any case in which the unit of local government is located within
  the boundaries of an economic development district, such unit must consult
  such district in the preparation of the grant application.
  `(3) ECONOMIC DEVELOPMENT DISTRICT- The economic development district in
  which the unit of local government is located may apply.
  `(4) ECONOMIC DEVELOPMENT ORGANIZATION- A private or public nonprofit
  organization established for economic development purposes and representing
  an area within the jurisdictional area of the unit of local government
  may apply if--
  `(A) such unit has a population of 50,000 or more;
  `(B) such unit is located outside the boundaries of an economic development
  district; and
  `(C) the grant application has been approved by such unit.
  `(b) APPLICATIONS FOR INDIAN LANDS- An Indian tribe may apply for
  assistance under section 101 for projects and activities to be carried
  out on lands owned by, or held in trust for, such tribe if such lands meet
  the requirements of section 104.
  `(c) APPLICATIONS FOR POCKETS OF POVERTY- The following entities may
  apply for assistance under section 101 for projects and activities to be
  carried out in an area which meets the requirements of section 104 and
  is located in the jurisdictional area of a unit of local government which
  has a population of 50,000 or more and does not meet such requirements:
  `(1) LOCAL GOVERNMENT- The unit of local government may apply; except that
  in any case in which the unit of local government is located within the
  boundaries of an economic development district, such unit must consult
  such district in the preparation of the grant application.
  `(2) DEVELOPMENT ORGANIZATION AS APPLICANT- A private or public nonprofit
  organization established for economic development purposes and representing
  the area meeting the requirements of section 104 may apply if such
  organization consults the unit of local government in the preparation of
  the grant application.
`SEC. 103. APPLICATION FOR GRANT.
  `(a) CONTENTS- An application for assistance under this title shall include,
  but need not be limited to--
  `(1) a certification that the area over which the applicant has jurisdiction
  meets the requirements of section 104; except that--
  `(A) in any case in which the applicant is a State, economic development
  district, or an organization described in section 102(a)(4), the
  certification must be for the area over which the concerned unit of local
  government has jurisdiction;
  `(B) in any case in which the applicant is an Indian tribe, the certification
  must be for lands owned by, or held in trust for, such Indian tribe; and
  `(C) in any case in which the applicant is an organization described in
  section 102(c)(2), the certification must be for the area such organization
  represents;
  `(2) a certification relative to the performance of any responsibilities
  which the Secretary has agreed to accept under section 306; and
  `(3) a development investment strategy prepared in accordance with
  section 105.
  `(b) FACTORS TO BE CONSIDERED IN APPROVAL PROCESS- In approving applications
  for assistance under this title, the Secretary shall give consideration to--
  `(1) the severity of distress in the area for which the grant is to be made;
  `(2) the extent to which the grant will result in increased, or more
  stabilized, permanent employment in such area;
  `(3) the ratio of private sector investments committed in such area to
  the amount of the grant applied for;
  `(4) the extent to which the appropriate State and local governments have
  undertaken or agree to undertake other related actions to encourage economic
  development and the expansion of employment opportunities;
  `(5) the effectiveness of the development investment strategy and the
  degree to which the proposed project contributes to its implementation
  (including the strategy's relationship to economic problems identified
  in the strategy), expands employment opportunities in the existing labor
  market, provides incentives to retain private businesses, expands or
  improves public facilities, and encourages private investment; and
  `(6) the extent to which the strategy and activities are consistent
  with State and local goals and contribute to long-term economic growth
  and private sector employment opportunities and establish an overall
  strengthened economic and business environment which will be self-sustaining.
  `(c) LIMITATION ON ASSISTANCE FACILITATING RELOCATIONS- No assistance may be
  provided under this title for projects intended to facilitate the relocation
  of industrial or commercial plants or facilities from one area to another,
  unless the Secretary finds that such relocation would not significantly
  and adversely affect employment in, or the economic base of, the area from
  which the industrial or commercial plant or facility would be leaving.
`SEC. 104. DISTRESS REQUIREMENTS.
  `(a) CERTIFICATION- In order to be eligible for assistance under this
  title, the applicant must certify that the area which is required by
  section 102 to meet the requirements of this section meets one or more of
  the following criteria:
  `(1) The area has a per capita income of 80 percent or less of the national
  average.
  `(2) The area has an unemployment rate 1 percent above the national average
  percentage for the most recent 24-month period for which statistics are
  available.
  `(3) The area has experienced or is about to experience a sudden economic
  dislocation resulting in job loss that is significant both in terms of
  the number of jobs eliminated and the effect upon the employment rate of
  the area.
  `(b) DOCUMENTATION OF DISTRESS- Documentation of distress shall be supported
  by Federal data, when available, and in other cases by data available
  through the State government. Such documentation shall be accepted by
  the Secretary unless it is determined to be inaccurate. The most recent
  statistics available must be used.
`SEC. 105. DEVELOPMENT INVESTMENT STRATEGY.
  `(a) PREPARATION AND CONTENTS- Except as provided in subsection (b),
  an applicant for assistance under this title shall prepare a development
  investment strategy for the area which is required by section 102 to meet
  the requirements of section 104. The development investment strategy must--
  `(1) identify the economic development problems sought to be addressed by
  the grant;
  `(2) identify past, present, and projected future economic development
  investments in such area and public and private participants and sources
  of funding for such investments;
  `(3) identify the extent to which the development investment strategy
  takes into account--
  `(A) availability of developable land and space in the area;
  `(B) public works, public service, and development facilities in the area;
  `(C) availability of low-cost capital;
  `(D) tax policy on investments in the area;
  `(E) level of skill of the labor force; and
  `(F) ability of State and units of local government to provide financial
  assistance in the management and implementation of the strategy;
  `(4) set forth a strategy for addressing the economic problems identified
  in paragraph (1) and discusses the manner in which the strategy will solve
  such problems;
  `(5) provide a description of the projects necessary to implement the
  strategy, an estimate and analysis of the costs and anticipated benefits of
  implementing the strategy, and an estimate of the timetables for completion
  of such projects;
  `(6) provide a summary of public and private resources which are expected
  to be available for such projects; and
  `(7) provide a comprehensive plan which demonstrates participation in all
  phases of the development and implementation of the development investment
  strategy by a representative percentage of small business concerns owned
  and controlled by socially and economically disadvantaged individuals,
  as defined by section 8(d) of the Small Business Act (15 U.S.C. 637(d))
  and relevant subcontracting regulations promulgated pursuant thereto.
  `(b) CONSULTATION OF STATE OR ECONOMIC DEVELOPMENT DISTRICT- In any case
  in which a unit of local government is the eligible applicant under section
  102(a)(2), the unit of local government shall consult the State or economic
  development district, respectively, in the preparation of a development
  investment strategy.
  `(c) APPROVAL OF DEVELOPMENT ORGANIZATION'S STRATEGY- In any case in which
  a private or public nonprofit development organization within a unit of
  local government is the eligible applicant under section 102(c)(2), the
  organization must consult the unit of local government in the preparation
  of the organization's development investment strategy.
`SEC. 106. LIMITATIONS ON REVOLVING LOAN FUNDS.
  `(a) PURPOSES AND USES OF GRANTS- Grants under section 101(a) shall be
  for the purposes of stimulating small business development and promoting
  economic growth which contributes to an improved local tax base and the
  creation of permanent employment opportunities. Such grants may only be made
  to establish or recapitalize a revolving loan fund which will be used only--
  `(1) for making loans or guaranteeing loans to small businesses for
  initial or working capital, or the purchase, rehabilitation or expansion
  of facilities or equipment; and
  `(2) for making loans or guaranteeing loans to businesses if a relatively
  small amount of capital is needed to complete financing necessary to retain
  the business in the area.
  `(b) DISTRESS REQUIREMENTS- A grant made under section 101(a)(2) shall
  be made on the condition that the revolving loan fund established or
  recapitalized pursuant to such grant shall be used only for providing
  assistance described in subsection (a) in areas which meet the requirements
  of section 104.
  `(c) LIMITATION ON AMOUNT OF GRANT- No grant for the establishment or
  recapitalization of a revolving loan fund under section 101(a)(2) shall
  be made for more than $1,000,000.
  `(d) CREDIT ELSEWHERE TEST- No loan or guarantee shall be made from
  a revolving loan fund established or recapitalized pursuant to a grant
  under section 101(a)(2) unless the financial assistance applied for is not
  otherwise available from private lenders on terms which in the opinion of
  the administrator of the revolving loan fund will permit the accomplishment
  of the project.
  `(e) TERMS OF GRANTS-
  `(1) USE ASSURANCES- Any applicant for a grant for establishment or
  recapitalization of a revolving loan fund under section 101(a)(2) shall
  give assurances that amounts of any loan which are repaid to the fund will
  be available only for the purposes set forth in subsection (a).
  `(2) REPAYMENT ASSURANCES- No loan or guarantee may be made from a revolving
  loan fund established or recapitalized pursuant to a grant under section
  101(a)(2) unless the applicant for such loan or guarantee provides reasonable
  assurance of repayment of the loan.
  `(3) GRANTEE AS ADMINISTRATOR- The grantee of any grant for establishment
  or recapitalization of a revolving loan fund under section 101(a)(2)
  shall administer the fund.
  `(f) CONSIDERATION OF PAST PERFORMANCE- In determining whether or not to
  make a grant for recapitalization of a revolving loan fund established or
  recapitalized pursuant to a grant under section 101(a)(2), the Secretary
  shall consider past performance of such fund.
`SEC. 107. FEDERAL SHARE.
  `(a) CONSTRUCTION AND IMPROVEMENT PROJECTS- The amount of any grant for a
  project described in section 101(a)(1) shall be that amount which when added
  to amounts available from all other sources is sufficient to complete such
  project. In no event shall the amount of any such grant exceed 50 percent of
  such cost of completing the project as determined at the time of the grant
  application. The Secretary may increase the maximum percentage of a grant
  from 50 percent to not more than 80 percent of the costs of completing
  a project described in section 101(a)(1) for an area which the Secretary
  determines is one of the most distressed of the areas meeting the distress
  requirements of section 104; except that the Secretary may not increase
  such percentage for more than 25 percent of the grants made in any fiscal
  year. In developing guidelines for determining which areas are the most
  distressed, the Secretary shall consider whether (1) the median family
  income for the area for the most recent 24-month period for which data is
  available is less than or equal to 75 percent of the national average median
  family income for such period, or (2) the average unemployment rate for
  the area for such period is greater than or equal to 2 times the national
  average unemployment for such period. No additional funds shall be granted
  or otherwise made available under this Act for any project described in
  section 101(a)(1) for which a grant has been made under this Act.
  `(b) ESTABLISHMENT OF REVOLVING LOAN FUNDS- The amount of any grant for
  the establishment of a revolving loan fund under section 101(a) shall
  not exceed an amount which is equal to the amount of funds available from
  all other sources for the establishment of such revolving loan fund. The
  amount of any additional grant for the recapitalization of a revolving
  loan fund previously established with a grant under section 101(a)(2)
  shall not exceed an amount which is equal to  1/3  of the amount of funds
  available from all other sources for such recapitalization.
  `(c) INDIAN TRIBES- In the case of a grant to an Indian tribe under section
  101(a), the Secretary may reduce or waive any non-Federal share required
  by this section.
`SEC. 108. LIMITATIONS.
  `(a) OBLIGATIONS IN A STATE- Except for expenditures to Indian tribes,
  not more than 15 percent of the appropriations made for a fiscal year
  pursuant to this title may be expended in any one State.
  `(b) OBLIGATIONS TO A PERSON- The Secretary shall not obligate more than
  $4,000,000 in any fiscal year to any person (including any State or local
  government or public organization) for grants under this title, other than
  grants for establishment of qualified employee ownership organizations.
`SEC. 109. COMMUNITY DEVELOPMENT CORPORATIONS.
  `(a) GRANTS- The Secretary may make grants to community development
  corporations to assist small businesses by reducing the interest rates
  for economic development activities to be carried out by such businesses
  in areas meeting the distress requirements of section 104.
  `(b) AGGREGATE AMOUNT- The aggregate amount of grants under this section
  may not exceed $10,000,000 in any fiscal year.
`SEC. 110. OBLIGATION OF FUNDS.
  `(a) BY MAY 31- Not later than May 31 of each fiscal year, the Secretary
  shall obligate for grants under this title not less than 50 percent and
  not more than 60 percent of the funds appropriated for such fiscal year
  pursuant to this title.
  `(b) BY SEPTEMBER 30- Not later than September 30 of each fiscal year,
  the Secretary shall obligate for assistance under this title the remaining
  funds appropriated for such fiscal year pursuant to this title.
`SEC. 111. AUTHORIZATION OF APPROPRIATIONS.
  `There is authorized to be appropriated to carry out this title, to
  be available until expended, $200,000,000 per fiscal year for each of
  fiscal years 1993, 1994, and 1995. Not more than 25 percent of the amount
  appropriated pursuant to this section for any fiscal year shall be expended
  to carry out section 101(a)(2).
`TITLE II--INVESTMENT STRATEGY, PLANNING, EVALUATION, AND DEMONSTRATION
`SEC. 201. INVESTMENT STRATEGY AND PLANNING.
  `(a) GRANTS FOR ECONOMIC DEVELOPMENT PLANNING- The Secretary is authorized
  to make grants for economic development planning, including the preparation
  of development investment strategies under section 105 and the payment of
  administrative expenses, to--
  `(1) any State,
  `(2) any economic development district,
  `(3) any Indian tribe,
  `(4) any county if the jurisdictional area of such county meets the
  requirements of section 104 and is located outside of the boundaries of
  an economic development district, and
  `(5) any other unit of local government with a population of 50,000 or
  more if the jurisdictional area of such unit meets such requirements and
  is located outside of the boundaries of an economic development district.
The Secretary is also authorized to make grants for preparation of a
development investment strategy under section 105 to any unit of local
government with a population of 100,000 or more if the jurisdictional area of
such unit meets the requirements of section 104 and, in any case in which such
unit is located within the boundaries of an economic development district,
such unit consults the district in the preparation of the investment strategy.
  `(b) COMPREHENSIVE PLANNING REQUIREMENT- Planning carried out under this
  section shall be a part of a comprehensive planning process and shall be
  a continuous process involving public officials and private citizens in
  analyzing local economies, defining development goals, determining project
  opportunities, and formulating and implementing a development program.
  `(c) PREPARATION OF STATE PLANS- Any State economic development plan
  prepared with assistance under this section shall be prepared by the State
  with the active participation of units of local government and economic
  development districts located in whole or in part within such State and
  shall set goals for economic development within such State.
  `(d) ANNUAL STATE REPORTS- Each State receiving assistance under this
  section shall submit to the Secretary an annual report on the planning
  process assisted under this section.
  `(e) DISTRICT AND LOCAL PLANS CONSISTENT WITH STATE PLAN- Any economic
  development planning by an economic development district or a unit of local
  government for which a grant is made under this section shall consider
  the State economic development plan for the State in which such district
  or unit is located.
  `(f) COORDINATION OF RESOURCES- Grants under this section shall be used,
  to the maximum extent possible, to provide coordination of investment
  for community facilities, economic development, manpower training, and
  transportation services.
  `(g) ENCOURAGEMENT OF ASSISTANCE- Each applicant for assistance under this
  section is encouraged to provide project planning, financial analysis,
  marketing, management, feasibility studies, and other technical and
  financial assistance to communities and neighborhoods within its boundaries.
`SEC. 202. EVALUATION AND DEMONSTRATION.
  `(a) EVALUATION OF DEVELOPMENT INVESTMENT EFFORTS- The Secretary is
  authorized to conduct a program of evaluation of Federal, State, and local
  development investment efforts in order to--
  `(1) assist in determining the causes of unemployment, underemployment,
  severe economic adjustment problems, and chronic distress in areas and
  regions of the United States; and
  `(2) assist in formulating, implementing, or improving programs at the
  National, State, or local levels which are designed to increase employment
  in private firms, assist depressed industry sectors, or otherwise promote
  economic development or adjustment.
  `(b) DEMONSTRATION PROGRAMS-
  `(1) IN GENERAL- The Secretary is authorized to conduct demonstration
  programs to test the feasibility of new ways to increase productivity
  and growth designed to make the steel industry and related industries
  more competitive, to encourage the use and development of innovative
  technology and research in economic development, to match the labor force
  with projected labor markets, to improve United States competitiveness,
  and to encourage economic diversity and regional balance.
  `(2) REPORTS- Not later than 90 days after completion of each demonstration
  program conducted under this subsection, the Secretary shall transmit to
  Congress a report on the results of such program.
  `(c) ADMINISTRATION- Programs authorized under subsections (a) and (b) of
  this section may be carried out by the Secretary acting through the staff
  of the Department of Commerce, in cooperation with or by the provision
  of funding to other departments or agencies of the Federal Government,
  or by contract.
  `(d) GRANTS FOR MANAGEMENT AND TECHNICAL ASSISTANCE- The Secretary is
  authorized to make grants to colleges, universities, and other organizations
  to establish and support ongoing programs which provide to businesses
  and units of local government management and technical assistance for the
  purposes of promoting productivity, economic development, and employment
  opportunity.
`SEC. 203. FEDERAL SHARE.
  `(a) ECONOMIC DEVELOPMENT PLANNING- The amount of any grant under section
  201 may not exceed 75 percent of the cost of economic development planning
  or of the preparation of a development investment strategy.
  `(b) MANAGEMENT AND TECHNICAL ASSISTANCE- The amount of any grant under
  section 202(d) may not exceed 75 percent of the cost of establishing and
  supporting the ongoing management and technical assistance program.
  `(c) DETERMINATION OF NON-FEDERAL SHARE- In determining the amount of the
  non-Federal share of costs under this section, the Secretary shall give
  consideration to all contributions both in cash and in kind, including
  space, equipment, and services.
  `(d) INDIAN TRIBES- In the case of a grant to an Indian tribe under section
  201, the Secretary may reduce or waive any non-Federal share required by
  this section.
`SEC. 204. OBLIGATION OF FUNDS.
  `Not later than December 31 of each fiscal year, the Secretary shall obligate
  for grants under section 201, 90 percent of the funds appropriated for such
  fiscal year pursuant to this title, other than those funds made available
  for purposes of section 202. The remainder of such funds shall be obligated
  during such fiscal year only for making grants under section 201 in areas
  meeting the criteria set forth in section 104(a)(3).
`SEC. 205. AUTHORIZATION OF APPROPRIATIONS.
  `(a) IN GENERAL- There is authorized to be appropriated to carry out this
  title, to be available until expended, $50,000,000 per fiscal year for
  each of fiscal years 1993, 1994, and 1995.
  `(b) LIMITATION ON AMOUNT FOR SECTION 202- Of sums authorized to be
  appropriated under subsection (a) of this section, not to exceed $13,000,000
  in fiscal year 1993 and not to exceed $15,000,000 in each of fiscal years
  1994 and 1995 shall be available for purposes of section 202.
`TITLE III--ADMINISTRATION
`SEC. 301. DEFINITIONS.
  `For purposes of this Act, the following definitions apply:
  `(1) ECONOMIC DEVELOPMENT DISTRICT- The term `economic development district'
  means--
  `(A) an economic development district designated on or before January 1,
  1992, under section 403(a)(1) of the Public Works and Economic Development
  Act of 1965; and
  `(B) any district within a State which is designated by the Secretary,
  which district is of sufficient size or population and contains sufficient
  resources to foster economic development on a scale involving more than
  one county and does not contain within its boundaries any part of another
  economic development district designated under subparagraph (A) or under
  this subparagraph.
  `(2) JURISDICTIONAL AREA- The term `jurisdictional area' means the area
  over which a unit of local government has jurisdiction.
  `(3) INDIAN TRIBE- The term `Indian tribe' means the governing body of an
  Indian tribe, an Indian authority or tribal organization or entity, an Alaska
  Native village, or any Indian group which is recognized as an Indian tribe
  by the Secretary of the Interior, except that the term `Indian tribe' shall
  also include those bodies, authorities, organizations, entities, or groups
  not recognized by the Secretary of the Interior, if such body, authority,
  organization, entity, or group is recognized as a tribe or other similar
  appropriate entity by the State in which it is located and such State holds
  land in trust on behalf of such tribe or other similar appropriate entity.
  `(4) QUALIFIED EMPLOYEE OWNERSHIP ORGANIZATION- The term `qualified employee
  ownership organization' includes a qualified employee trust as defined in
  section 3(c)(2) of the Small Business Act, except that--
  `(A) such term shall not be limited to plans maintained by small business
  concerns or to loans guaranteed under such Act;
  `(B) in the case of any form of financial assistance, the principles of
  section 3(c)(2)(B) of such Act shall apply under regulations prescribed
  by the Secretary; and
  `(C) there shall be periodic reviews of the role, in the management of
  the concern involved, of employees to whose account stock is allocated.
  `(5) SECRETARY- The term `Secretary' means the Secretary of Commerce.
  `(6) SMALL BUSINESS CONCERN- The term `small business concern' means a
  business that is independently owned and operated, is not dominant in its
  field of operations, and meets such other criteria as the Secretary, after
  consultation with the Administrator of the Small Business Administration,
  may by regulation establish, including numbers of employees and dollar
  volume of business by industrial classes.
  `(7) STATE- The term `State' means the several States, the District of
  Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam,
  American Samoa, the Trust Territory of the Pacific Islands, and the
  Commonwealth of the Northern Marianas.
  `(8) UNIT OF LOCAL GOVERNMENT- The term `unit of local government' means
  any city, county, town, parish, village, or other general purpose political
  subdivision of a State.
`SEC. 302. APPOINTMENT OF ASSISTANT SECRETARY.
  `The Secretary shall administer this Act with the assistance of an Assistant
  Secretary of Commerce, established by section 601 of the Public Works and
  Economic Development Act of 1965. Such Assistant Secretary shall perform
  such functions as the Secretary may prescribe.
`SEC. 303. CONSULTATION WITH OTHER PERSONS AND AGENCIES.
  `The Secretary is authorized from time to time to call together and
  confer with any persons, including representatives of labor, management,
  agriculture, and government, who can assist in meeting the problems of
  area and regional unemployment or underemployment. The Secretary may make
  provisions for such consultation with interested departments and agencies
  as he may deem appropriate in the performance of the functions vested in
  him by this Act.
`SEC. 304. ADMINISTRATION OF ASSISTANCE.
  `No grant shall be approved under this Act unless the Secretary is satisfied
  that the project for which Federal assistance is granted will be properly
  and efficiently administered, operated, and maintained.
`SEC. 305. POWERS OF THE SECRETARY.
  `(a) LIST OF POWERS- In performing his duties under this Act, the Secretary
  is authorized to do the following:
  `(1) Adopt, alter, and use a seal, which shall be judicially noticed.
  `(2) Hold such hearings, sit and act at such times and places, and take
  such testimony, as the Secretary may deem advisable.
  `(3) Request directly from any executive department, bureau, agency,
  board, commission, office, independent establishment, or instrumentality
  information, suggestions, estimates, and statistics needed to carry
  out the purposes of this Act. Each department, bureau, agency, board,
  commission, office, establishment or instrumentality is authorized to
  furnish such information, suggestions, estimates, and statistics directly
  to the Secretary.
  `(4) Acquire, in any lawful manner, any property (real, personal, or mixed,
  tangible or intangible), whenever deemed necessary or appropriate to the
  conduct of the activities authorized by this Act.
  `(5) Procure by contract the temporary or intermittent services of experts
  and consultants or organizations therefor as authorized by section 3109(b)
  of title 5, United States Code, and allow them, while away from their
  homes or regular places of business, travel expenses (including per diem
  in lieu of subsistence) in accordance with section 5703 of title 5, United
  States Code, for persons in the Government service employed intermittently,
  while so employed.
  `(6) Sue and be sued in any court of record of a State having general
  jurisdiction or in any United States district court, and jurisdiction
  is conferred upon such district court to determine such controversies
  without regard to the amount in controversy; but no attachment, injunction,
  garnishment, or other similar process, mesne, or final, shall be issued
  against the Secretary or property of the Secretary.
  `(7) Establish such rules, regulations, and procedures as the Secretary
  may deem appropriate in carrying out the provisions of this Act.
  `(b) LIMITATION ON STATUTORY CONSTRUCTION- Nothing in this Act (including
  subsection (a)(6)) shall be construed to except the activities under
  this Act from the application of sections 517, 547, and 2679 of title 28,
  United States Code.
`SEC. 306. CERTIFICATION.
  `(a) ACCEPTANCE- The Secretary may discharge any of his responsibilities
  relative to a project for which a grant may be made under title I of
  this Act by accepting a certification by the applicant of the applicant's
  performance of such responsibilities.
  `(b) RESCISSION OF ACCEPTANCE- Acceptance by the Secretary of an applicant's
  certification under this section may be rescinded by the Secretary at any
  time if, in the opinion of the Secretary, it is necessary to do so.
  `(c) REGULATION- The Secretary shall issue such guidelines and regulations
  as may be necessary to carry out this section.
`SEC. 307. SAVINGS PROVISIONS.
  `(a) AFFECT ON PROCEEDINGS- No suit, action, or other proceeding lawfully
  commenced by or against the Secretary or Assistant Secretary or any other
  officer in his or her official capacity or in relation to the discharge of
  his or her official duties under the Public Works and Economic Development
  Act of 1965 shall abate by reason of the taking effect of the amendment by
  section 103 of the Public Works and Economic Development Act Amendments
  of 1992, but the court may, on a motion or supplemental petition filed
  at any time within 12 months after the effective date of such amendment,
  showing a necessity for the survival of such suit, action, or proceeding
  to obtain a settlement of the questions involved, allow such suit, action,
  or proceeding to be maintained by or against the Secretary or Assistant
  Secretary or such other officer of the Department of Commerce as may
  be appropriate.
  `(b) EXISTING REGULATIONS AND PROCEEDINGS- All rules, regulations, orders,
  authorizations, delegations, or other actions duly issued, made, or taken by
  or pursuant to applicable law, before the effective date of such amendment,
  by any agency, officer, or office pertaining to any functions, powers, and
  duties under the Public Works and Economic Development Act of 1965 shall
  continue in full force and effect after such effective date until modified
  or rescinded by the Secretary or such other officer of the Department of
  Commerce as, in accordance with applicable law, may be appropriate.
`SEC. 308. ANNUAL REPORT.
  `The Secretary shall make a comprehensive and detailed annual report to
  Congress of operations under this Act for each fiscal year beginning after
  the year ending September 30, 1992. Such report shall be printed and shall
  be transmitted to Congress not later than February 1 of the year following
  the fiscal year with respect to which such report is made.
`SEC. 309. PREVAILING RATE OF WAGE.
  `(a) GENERAL RULE- 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 Act of March 3, 1931, commonly known as the Davis-Bacon
  Act (46 Stat. 1494; 40 U.S.C. 276a-276a-5).
  `(b) ASSURANCE- The Secretary shall not extend any financial assistance
  under this Act for any project without first obtaining adequate assurance
  that the standards required by subsection (a) will be maintained upon the
  construction work.
  `(c) FUNCTION OF SECRETARY OF LABOR- The Secretary of Labor shall have,
  with respect to the standards required by subsection (a), the authority and
  functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176;
  64 Stat. 1267; 5 U.S.C. App.), and section 2 of the Act of June 13, 1934
  (48 Stat. 948; 40 U.S.C. 276c).
`SEC. 310. RECORD OF APPLICATIONS.
  `The Secretary shall maintain as a permanent part of the records of the
  Department of Commerce a list of each application approved for a grant
  under this Act, which shall be kept available for public inspection during
  the regular business hours of the Department of Commerce. The following
  information shall be posted in such list as soon as each application
  is approved:
  `(1) The name of the applicant.
  `(2) The amount and duration of the grant for which application is made.
  `(3) The purposes for which the proceeds of the grant are to be used.
`SEC. 311. RECORDS AND AUDIT.
  `(a) GENERAL RULES-
  `(1) RECORDS- Each recipient of a grant under this Act shall keep such
  records as the Secretary shall prescribe, including records which--
  `(A) fully disclose the amount and the disposition by such recipient of
  the proceeds of such grant, the total cost of the project or undertaking
  in connection with which such grant is given or used, and the amount and
  nature of that portion of the cost of the project or undertaking supplied
  by other sources; and
  `(B) review the efficiency, economy, and effectiveness of the project
  carried out under this Act.
  `(2) REPORTS TO SECRETARY- Not later than January 11 and July 11 of each
  year, each recipient shall transmit a report to the Secretary containing all
  information prescribed under paragraph (1) which relates to all activities
  carried out during the preceding period relating to grants made to it under
  this Act. Each report submitted in January of each year shall include an
  audited statement of all funds spent on the project or undertaking during
  the preceding fiscal year. Such statement shall be prepared in accordance
  with chapter 75 of title 31, United States Code, or agency regulations
  governing the audit of nonprofits.
  `(b) ACCESS TO INFORMATION- For the purpose of reviewing the efficiency,
  economy, and effectiveness of programs carried out under the provisions
  of the Act, including audit and examination, the Secretary and the
  Comptroller General of the United States, or any of their duly authorized
  representatives, shall have access to any books, documents, papers, and
  records of any recipient, subrecipient, contractor, or subcontractor that
  are pertinent to assistance received under this Act.
`SEC. 312. NONDISCRIMINATION REQUIREMENTS.
  `In administering this Act, the Secretary may not--
  `(1) discriminate in favor of or against any qualified applicant based
  on the fact that the area in which the project would be located is either
  rural or urban in character;
  `(2) create separate allocations of funds to provide assistance for urban
  and rural areas unless such allocations are based on objective findings
  of relative levels of distress in areas qualified for assistance under
  this Act; or
  `(3) deny assistance to a qualified applicant based on the fact that the
  project area is located in a State which has a low level of unemployment.
`SEC. 313. AUTHORIZATION OF APPROPRIATIONS.
  `There is authorized to be appropriated for salaries and administrative
  expenses to carry out the provisions of this Act $26,000,000 per fiscal
  year for each of fiscal years 1993, 1994, and 1995. Appropriations under
  this Act shall remain available until expended. Any contract entered into
  pursuant to this Act shall be effective only to such extent and in such
  amounts as may be provided in advance in an appropriation Act.'.
SEC. 104. AMENDMENT TO TITLE IX OF PUBLIC WORKS AND ECONOMIC DEVELOPMENT
ACT OF 1965.
  Section 905 of the Public Works and Economic Development Act of 1965 is
  amended to read as follows:
`SEC. 905. AUTHORIZATION OF APPROPRIATIONS.
  `There is authorized to be appropriated to carry out this title $50,000,000
  per fiscal year for each of fiscal years 1993, 1994, and 1995.'.
SEC. 105. AMENDMENT TO SHORT TITLE OF PUBLIC WORKS AND ECONOMIC DEVELOPMENT
ACT OF 1965.
  The Public Works and Economic Development Act of 1965 is amended by striking
  `That this Act may be cited as the `Public Works and Economic Development
  Act of 1965'.' and inserting the following:
`SECTION 1. SHORT TITLE.
  `This Act may be cited as the `National Development Investment Act'.'.
TITLE II--APPALACHIAN REGIONAL DEVELOPMENT
SEC. 201. SHORT TITLE.
  This title may be cited as the `Appalachian Regional Development Act
  Amendments of 1992'.
SEC. 202. FINDINGS AND PURPOSES.
  Section 2 of the Appalachian Regional Development Act of 1965 is amended--
  (1) in subsection (a) by striking the period at the end of the 6th sentence
  and inserting `and in severely distressed and underdeveloped counties and
  areas lacking resources for basic services.'; and
  (2) by adding at the end the following new subsection:
  `(c) The Congress further finds and declares that, while substantial
  progress has been made in fulfilling many of the objectives of this Act,
  rapidly changing national and global economics over the past decade have
  created new problems and challenges for rural areas throughout the Nation
  and especially for the Appalachian region. Thus, the problems of the region
  are not only to provide the infrastructure necessary to economic and human
  resource development, to develop its industry, and to generate a diversified
  regional economy, but to make the region's industrial and commercial
  resources more competitive in national and world markets. It is, therefore,
  also the purpose of this Act to provide a framework for coordinating Federal,
  State, and local initiatives to respond to the economic competitive challenge
  through improving the skills of the region's manpower, adapting and applying
  new technologies for the region's businesses, and improving the access of
  the region's businesses to the technical and financial resources necessary
  to their development while continuing to address the need to provide basic
  services for the more disadvantaged areas of the region so as to provide
  a fairer opportunity for the people of the region to share the quality of
  life generally enjoyed by citizens across this Nation.'.
SEC. 203. AUTHORIZATIONS FOR ADMINISTRATIVE EXPENSES.
  Section 105(b) of the Appalachian Regional Development Act of 1965 is
  amended by striking the period at the end and inserting the following: `,
  and not to exceed $3,800,000 per fiscal year for each of fiscal years 1993,
  1994, and 1995. Of amounts appropriated pursuant to the preceding sentence
  for each of fiscal years 1993, 1994, and 1995, not to exceed $1,300,000
  shall be available for expenses of the Federal cochairman, his alternate,
  and his staff.'.
SEC. 204. EXTENSION OF LEASE TERMS.
  Section 106(7) of the Appalachian Regional Development Act of 1965 is
  amended by striking `1982' and inserting `1995'.
SEC. 205. HIGHWAY SYSTEM.
  (a) AUTHORIZATION OF APPROPRIATIONS- Section 201(g) of the Appalachian
  Regional Development Act of 1965 is amended by striking the period at the
  end and inserting the following: `; and $144,000,000 per fiscal year for
  each of fiscal years 1993, 1994, and 1995.'.
  (b) FEDERAL SHARE-
  (1) GENERAL RULE- Section 201(h)(1) of such Act is amended by striking
  `70 per centum' and inserting `80 percent'.
  (2) APPLICABILITY- The amendment made by paragraph (1) shall apply to
  projects approved after March 31, 1979.
SEC. 206. DEFINITIONS.
  (a) UPDATING OF COVERED FEDERAL GRANT-IN-AID PROGRAMS- The first sentence
  of section 214(c) of the Appalachian Regional Development Act of 1965 is
  amended by striking `December 31, 1980' and inserting `October 1, 1996'.
  (b) LIMITATION ON COVERED ROAD PROJECTS- The second sentence of such section
  is amended by inserting `authorized by title 23, United States Code' after
  `road construction'.
SEC. 207. PROGRAM DEVELOPMENT CRITERIA.
  Section 224(a) of the Appalachian Regional Development Act of 1965 is
  amended by inserting before the semicolon at the end of paragraph (1)
  the following: `or in a severely distressed and underdeveloped county or
  area lacking resources for basic services'.
SEC. 208. REMOVAL OF LIMITATION.
  Section 224(b) of the Appalachian Regional Development Act of 1965 is
  amended--
  (1) by striking `(2) to finance' and all that follows through `(3)' and
  inserting `(2)'; and
  (2) by striking `(4)' and inserting `(3)'.
SEC. 209. MAXIMUM FEDERAL SHARE.
  Section 224 of the Appalachian Regional Development Act of 1965 is amended
  by adding at the end the following new subsection:
  `(d) MAXIMUM FEDERAL SHARE- Notwithstanding any other provision of this
  Act, after September 30, 1992, grants made with funds authorized under this
  Act shall not exceed 50 percent of the costs of any project approved under
  this Act (except projects under section 201); except that, notwithstanding
  any limitation of any other Federal law, such grants may increase the
  Federal contribution to any project being carried out under such other law
  and eligible for financial assistance under this Act to such percentage
  as the Commission determines appropriate within the limitations of this
  Act. The Commission may increase the maximum percentage of a grant from
  50 percent to not more than 80 percent of the costs of a project approved
  under this Act for a county which the Commission determines is one of
  the most distressed counties in the Appalachian region; except that the
  Commission may not increase such percentage for more than 25 percent of
  the grants made in any fiscal year.'.
SEC. 210. GRANTS FOR ADMINISTRATIVE EXPENSES AND DEMONSTRATION PROJECTS.
  (a) GENERAL RULE- Section 302(a)(3) of the Appalachian Regional Development
  Act of 1965 is amended--
  (1) by inserting after `technical assistance' the following: `(including
  technical assistance for business development and stabilization and
  application of technologies and productivity improvement)';
  (2) by inserting after `training programs' the following: `(including
  on-site employee training and programs to upgrade employability of the
  region's people)'; and
  (3) by inserting after `demonstrations' the following: `(including
  demonstrations of service consolidations and other methods of increasing
  efficiency of local governments, the establishment and operation by States,
  public agencies, or nonprofit development organizations of revolving funds
  for business assistance loans, the establishment and operation of business
  incubators and the provision of industrial facilities and equipment by
  public agencies and nonprofit organizations on such terms (including terms
  of reasonable recovery of grant funds upon resale) as are approved by the
  Commission, and the acquisition and development of land)'.
  (b) LIMITATIONS ON DEMONSTRATION GRANTS- Subsection (b)(1) of such section
  is amended--
  (1) by striking `, (3), or (4),' and inserting `or (4),';
  (2) by inserting `or economic' after `energy'; and
  (3) by striking the second sentence and inserting the following: `Funds in
  energy enterprise development loan funds established with grants previously
  approved by the Commission under this section may, upon approval of the
  Commission pursuant to section 303, after the date of the enactment of the
  Appalachian Regional Development Act Amendments of 1992, be made available
  for the purposes authorized in subsection (a)(3).'.
SEC. 211. AUTHORIZATION OF APPROPRIATIONS FOR GENERAL PROGRAM.
  Section 401 of the Appalachian Regional Development Act of 1965 is amended
  by adding at the end the following: `In addition to the appropriations
  authorized in section 105 for administrative expenses and in section 201(g)
  for the Appalachian development highway system and local access roads,
  there is authorized to be appropriated to the Commission, to be available
  until expended, to carry out this Act, $37,500,000 per fiscal year for
  each of fiscal years 1993, 1994, and 1995.'.
SEC. 212. DEFINITION OF APPALACHIAN REGION.
  The 12th undesignated paragraph of section 403 of the Appalachian Regional
  Development Act of 1965, relating to Virginia, is amended--
  (1) by inserting `Montgomery,' after `Lee,'; and
  (2) by inserting `Roanoke, Rockbridge,' after `Pulaski,'.
SEC. 213. EXTENSION OF TERMINATION DATE.
  Section 405 of the Appalachian Regional Development Act of 1965 is amended
  by striking `1982' and inserting `1995'.
SEC. 214. BUY-AMERICAN REQUIREMENT.
  (a) DETERMINATION BY THE COMMISSION- If the Appalachian Regional Commission,
  with the concurrence of the Secretary of Commerce and the United States
  Trade Representative, determines that the public interest so desires,
  the Commission is authorized to award to a domestic firm a contract made
  pursuant to the issuance of any grant made under this Act that, under the
  use of competitive procedures, would be awarded to a foreign firm, if--
  (1) the final product of the domestic firm will be completely assembled
  in the United States;
  (2) when completely assembled, not less than 51 percent of the final
  product of the domestic firm will be domestically produced; and
  (3) the difference between the bids submitted by the foreign and domestic
  firms is not more than 6 percent.
In determining under this subsection whether the public interest so requires,
the Commission shall take into account United States international obligations
and trade relations.
  (b) LIMITED APPLICATION- This section shall not apply to the extent
  to which--
  (1) such applicability would not be in the public interest;
  (2) compelling national security considerations require otherwise; or
  (3) the United States Trade Representative determines that such an award
  would be in violation of the General Agreement on Tariffs and Trade or an
  international agreement to which the United States is a party.
  (c) LIMITATION- This section shall apply only to contracts made related
  to the issuance of any grant made under this Act for which--
  (1) amounts are authorized by this Act (including the amendments made by
  this Act) to be made available; and
  (2) solicitation for bids are issued after the date of the enactment of
  this Act.
  (d) REPORT TO CONGRESS- The Commission shall report to the Congress on
  contracts covered under this section and entered into with foreign entities
  in fiscal years 1993 and 1994 and shall report to the Congress on the number
  of contracts that meet the requirements of subsection (a) but which are
  determined by the United States Trade Representative to be in violation
  of the General Agreement or an international agreement to which the United
  States is a party. The Commission shall also report to the Congress on the
  number of contracts covered under this Act (including the amendments made
  by this Act) and awarded based upon the parameters of this section.
  (e) DEFINITIONS- For purposes of this section, the following definitions
  apply:
  (1) SECRETARY- The term `Commission' means the Appalachian Regional
  Commission.
  (2) DOMESTIC FIRM- The term `domestic firm' means a business entity that
  is incorporated in the United States and that conducts business operations
  in the United States.
  (3) FOREIGN FIRM- The term `foreign firm' means a business entity not
  described in paragraph (2).
Passed the House of Representatives October 2, 1992.
Attest:
DONNALD K. ANDERSON,
Clerk.
Public Works and Economic Development Act Amendments of 1992

Sponsors

Subjects

Summary

Full Text

Legislative Actions

Ask about this bill
