[Congressional Bills 105th Congress]
[From the U.S. Government Printing Office]
[S. 2364 Enrolled Bill (ENR)]
S.2364
One Hundred Fifth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-seventh day of January, one thousand nine hundred and ninety-
eight
An Act
To reauthorize and make reforms to programs authorized by 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,

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(a) Short Title.--This Act may be cited as the ``Economic
Development Administration and Appalachian Regional Development Reform
Act of 1998''.
(b) Table of Contents.--The table of contents of this Act is as
follows:

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a2eaab6adc063d78b329d8d3fe751c01effa207ebee03b4badfe0d64fb37d83a

TITLE I

-ECONOMIC DEVELOPMENT

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TITLE II

-APPALACHIAN REGIONAL DEVELOPMENT

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This title may be cited as the ``Economic Development
Administration Reform Act of 1998''.

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

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(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.

d2e8660a9db58e2353bf468fad5c0adfcd18fed4db7ed7fb9552ea69984d0498

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.

6b4385eaadde182a4aeb1018bb80fc66c9665ecc3af9b4796c772efd7f37e8eb

This title may be cited as the ``Appalachian Regional Development
Reform Act of 1998''.

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Section 2 of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is amended by adding at the end the following:
``(c) 1998 Findings and Purposes.--
``(1) Findings.--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
economies over the past decade have created new problems and
challenges for rural areas throughout the United States and
especially for the Appalachian region.
``(2) Purposes.--In addition to the purposes stated in
subsections (a) and (b), it is the purpose of this Act--
``(A) to assist the Appalachian region in--
``(i) providing the infrastructure necessary for
economic and human resource development;
``(ii) developing the region's industry;
``(iii) building entrepreneurial communities;
``(iv) generating a diversified regional economy; and
``(v) making the region's industrial and commercial
resources more competitive in national and world markets;
``(B) to provide a framework for coordinating Federal,
State, and local initiatives to respond to the economic
competitiveness challenges in the Appalachian region through--
``(i) improving the skills of the region's workforce;
``(ii) adapting and applying new technologies for the
region's businesses; and
``(iii) improving the access of the region's businesses
to the technical and financial resources necessary to
development of the businesses; and
``(C) to address the needs of severely and persistently
distressed areas of the Appalachian region and focus special
attention on the areas of greatest need so as to provide a
fairer opportunity for the people of the region to share the
quality of life generally enjoyed by citizens across the United
States.''.

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(a) Annual Meeting Requirement.--Section 101 of the Appalachian
Regional Development Act of 1965 (40 U.S.C. App.) is amended--
(1) by striking ``(a) There'' and inserting the following:
``(a) In General.--
``(1) Establishment.--There''; and
(2) by adding at the end the following:
``(2) Meetings.--
``(A) In general.--The Commission shall conduct at least 1
meeting each year with the Federal Cochairman and at least a
majority of the State members present.''.
(b) Additional Meetings by Electronic Means.--Section 101 of the
Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is
amended--
(1) in subsection (a)(2) (as added by subsection (a)(2)), by
adding at the end the following:
``(B) Additional meetings.--The Commission may conduct such
additional meetings by electronic means as the Commission
considers advisable, including meetings to decide matters
requiring an affirmative vote.''; and
(2) in the fourth sentence of subsection (c), by striking ``to
be present''.
(c) Decisions Requiring a Quorum.--Section 101(b) of the
Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is
amended by striking the third sentence and inserting the following: ``A
decision involving Commission policy, approval of any State, regional,
or subregional development plan or implementing investment program, any
modification or revision of the Appalachian Regional Commission Code,
any allocation of funds among the States, or any designation of a
distressed county or an economically strong county shall not be made
without a quorum of the State members.''.

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Section 105 of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is amended--
(1) by striking ``(a) For the period'' in the first sentence
and all that follows through ``such expenses'' in the second
sentence and inserting ``Administrative expenses of the
Commission''; and
(2) by striking subsection (b).

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Section 106(2) of the Appalachian Regional Development Act of 1965
(40 U.S.C. App.) is amended by striking ``the salary of the alternate
to the Federal Cochairman on the Commission as provided in section
101'' and inserting ``the maximum rate of basic pay for the Senior
Executive Service under section 5382 of title 5, United States Code,
including any applicable locality-based comparability payment that may
be authorized under section 5304(h)(2)(C) of that title''.

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Section 106(7) of the Appalachian Regional Development Act of 1965
(40 U.S.C. App.) is amended by striking ``1982'' and inserting
``2001''.

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(a) Operation Costs.--Section 202(c) of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App.) is amended by striking ``100
per centum of the costs thereof'' in the first sentence and all that
follows through the period at the end of the second sentence and
inserting ``50 percent of the costs of that operation (or 80 percent of
those costs in the case of a project to be carried out in a county for
which a distressed county designation is in effect under section
226).''.
(b) Cost Sharing.--Section 202 of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App.) is amended by adding at the
end the following:
``(f) Maximum Commission Contribution After September 30, 1998.--
``(1) In general.--Subject to paragraph (2), after September
30, 1998, a Commission contribution of not more than 50 percent of
any project cost eligible for financial assistance under this
section may be provided from funds appropriated to carry out this
Act.
``(2) Distressed counties.--In the case of a project to be
carried out in a county for which a distressed county designation
is in effect under section 226, the maximum Commission contribution
under paragraph (1) may be increased to the lesser of--
``(A) 80 percent; or
``(B) the maximum Federal contribution percentage
authorized by this section.''.
(c) Technical Amendments.--Section 202 of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App.) is amended--
(1) by striking ``Secretary of Health, Education, and Welfare''
each place it appears and inserting ``Secretary of Health and Human
Services''; and
(2) in subsection (c), by striking the last sentence.

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CONTROL PROGRAM.
Section 203 of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is repealed.

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Section 204 of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is repealed.

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Section 205 of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is repealed.

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Section 206 of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is repealed.

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(a) Loans.--Section 207(b) of the Appalachian Regional Development
Act of 1965 (40 U.S.C. App.) is amended in the first sentence by
striking ``80 per centum'' and inserting ``50 percent (or 80 percent in
the case of a project to be carried out in a county for which a
distressed county designation is in effect under section 226)''.
(b) Grants.--Section 207(c)(1) of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App.) is amended by striking ``80
per centum'' and inserting ``50 percent (or 80 percent in the case of a
project to be carried out in a county for which a distressed county
designation is in effect under section 226)''.

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Section 208 of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is repealed.

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DEMONSTRATION PROJECTS.
(a) Operation Costs.--Section 211(b)(3) of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App.) is amended by striking ``100
per centum of the costs thereof'' in the first sentence and all that
follows through the period at the end of the second sentence and
inserting ``50 percent of the costs of that operation (or 80 percent of
those costs in the case of a project to be carried out in a county for
which a distressed county designation is in effect under section
226).''.
(b) Cost Sharing.--Section 211 of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App.) is amended by adding at the
end the following:
``(c) Maximum Commission Contribution After September 30, 1998.--
``(1) In general.--Subject to paragraph (2), after September
30, 1998, a Commission contribution of not more than 50 percent of
any project cost eligible for financial assistance under this
section may be provided from funds appropriated to carry out this
Act.
``(2) Distressed counties.--In the case of a project to be
carried out in a county for which a distressed county designation
is in effect under section 226, the maximum Commission contribution
under paragraph (1) may be increased to the lesser of--
``(A) 80 percent; or
``(B) the maximum Federal contribution percentage
authorized by this section.''.
(c) Technical Amendments.--Section 211 of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App.) is amended--
(1) in subsection (a), by striking ``Secretary of Health,
Education, and Welfare'' and inserting ``Secretary of Education'';
and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``Secretary of the
Department of Health, Education, and Welfare'' and inserting
``Secretary of Education''; and
(B) in paragraph (3), by striking the last sentence.

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Section 212 of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is repealed.

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Section 213 of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is repealed.

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(a) Availability of Amounts.--Section 214(a) of the Appalachian
Regional Development Act of 1965 (40 U.S.C. App.) is amended in the
first sentence by striking ``the President is authorized to provide
funds to the Federal Cochairman to be used'' and inserting ``the
Federal Cochairman may use amounts made available to carry out this
section''.
(b) Cost Sharing.--Section 214(b) of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App.) is amended--
(1) by striking ``(b) The Federal'' and inserting the
following:
``(b) Cost Sharing.--
``(1) In general.--The Federal''; and
(2) by adding at the end the following:
``(2) Maximum commission contribution after september 30,
1998.--
``(A) In general.--Subject to subparagraph (B), after
September 30, 1998, a Commission contribution of not more than
50 percent of any project cost eligible for financial
assistance under this section may be provided from funds
appropriated to carry out this Act.
``(B) Distressed counties.--In the case of a project to be
carried out in a county for which a distressed county
designation is in effect under section 226, the maximum
Commission contribution under subparagraph (A) may be increased
to 80 percent.''.
(c) Definition of Federal Grant-in-Aid Programs.-- Section 214(c)
of the Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is
amended in the first sentence--
(1) by striking ``on or before December 31, 1980,''; and
(2) by striking ``Titles I and IX of the Public Works and
Economic Development Act of 1965'' and inserting ``sections 201 and
209 of the Public Works and Economic Development Act of 1965''.
(d) Limitation on Covered Road Projects.--Section 214(c) of the
Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is
amended in the second sentence by inserting ``authorized by title 23,
United States Code'' after ``road construction''.

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(a) Considerations.--Section 224(a)(1) of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App.) is amended by inserting before
the semicolon at the end the following: ``or in a severely and
persistently distressed county or area''.
(b) Outcome Measurements.--Section 224(a) of the Appalachian
Regional Development Act of 1965 (40 U.S.C. App.) is amended--
(1) in paragraph (5), by striking the period at the end and
inserting ``; and''; and
(2) by adding at the end the following:
``(6) the extent to which the project design provides for
detailed outcome measurements by which grant expenditures may be
evaluated.''.
(c) Removal of Limitations.--Section 224 of the Appalachian
Regional Development Act of 1965 (40 U.S.C. App.) is amended by
striking subsection (b) and inserting the following:
``(b) Limitation.--Financial assistance made available under this
Act shall not be used to assist establishments relocating from one area
to another.''.
(d) Conforming Amendment.--Section 302(b)(1) of the Appalachian
Regional Development Act of 1965 (40 U.S.C. App.) is amended in the
first sentence by striking ``Notwithstanding'' and all that follows
through ``the Commission'' and inserting ``The Commission''.

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Part C of title II of the Appalachian Regional Development Act of
1965 (40 U.S.C. App.) is amended by adding at the end the following:
``SEC. 226. DISTRESSED AND ECONOMICALLY STRONG COUNTIES.
``(a) Designations.--
``(1) In general.--Not later than 90 days after the date of
enactment of this section, and annually thereafter, the Commission,
in accordance with such criteria as the Commission may establish,
shall--
``(A) designate as `distressed counties' those counties in
the region that are the most severely and persistently
distressed; and
``(B) designate 2 categories of economically strong
counties, consisting of--
``(i) `competitive counties', which shall be those
counties in the region that are approaching economic parity
with the rest of the United States; and
``(ii) `attainment counties', which shall be those
counties in the region that have attained or exceeded
economic parity with the rest of the United States.
``(2) Annual review of designations.--The Commission shall--
``(A) conduct an annual review of each designation of a
county under paragraph (1) to determine if the county still
meets the criteria for the designation; and
``(B) renew the designation for another 1-year period only
if the county still meets the criteria.
``(b) Distressed Counties.--In program and project development and
implementation and in the allocation of appropriations made available
to carry out this Act, the Commission shall give special consideration
to the needs of those counties for which a distressed county
designation is in effect under this section.
``(c) Economically Strong Counties.--
``(1) Competitive counties.--Except as provided in paragraphs
(3) and (4), in the case of a project that is carried out in a
county for which a competitive county designation is in effect
under this section, assistance under this Act shall be limited to
not more than 30 percent of the project cost.
``(2) Attainment counties.--Except as provided in paragraphs
(3) and (4), no funds may be provided under this Act for a project
that is carried out in a county for which an attainment county
designation is in effect under this section.
``(3) Exceptions.--The requirements of paragraphs (1) and (2)
shall not apply to--
``(A) any project on the Appalachian development highway
system authorized by section 201;
``(B) any local development district administrative project
assisted under section 302(a)(1); or
``(C) any multicounty project that is carried out in 2 or
more counties designated under this section if--
``(i) at least 1 of the participating counties is
designated as a distressed county under this section; and
``(ii) the project will be of substantial direct
benefit to 1 or more distressed counties.
``(4) Waiver.--
``(A) In general.--The Commission may waive the
requirements of paragraphs (1) and (2) for a project upon a
showing by the recipient of assistance for the project of 1 or
more of the following:
``(i) The existence of a significant pocket of distress
in the part of the county in which the project is carried
out.
``(ii) The existence of a significant potential benefit
from the project in 1 or more areas of the region outside
the designated county.
``(B) Reports to congress.--The Commission shall submit to
the Committee on Environment and Public Works of the Senate and
the Committee on Transportation and Infrastructure of the House
of Representatives an annual report describing each waiver
granted under subparagraph (A) during the period covered by the
report.''.

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PROJECTS.
(a) Availability of Amounts.--Section 302(a) of the Appalachian
Regional Development Act of 1965 (40 U.S.C. App.) is amended--
(1) by striking ``The President'' and inserting ``The
Commission''; and
(2) in paragraphs (1), (2), and (3), by striking ``to the
Commission'' each place it appears.
(b) Cost Sharing.--Section 302(a) of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App.) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``75 per centum'' and
inserting ``50 percent''; and
(B) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively;
(2) by redesignating paragraphs (1), (2), and (3) as
subparagraphs (A), (B), and (C), respectively;
(3) by striking ``(a) The'' and inserting the following:
``(a) Authorization To Make Grants.--
``(1) In general.--The'';
(4) by adjusting the margins of subparagraphs (A), (B), and (C)
(as redesignated by paragraph (2)) to reflect the amendment made by
paragraph (3); and
(5) by adding at the end the following:
``(2) Cost sharing after september 30, 1998.--
``(A) In general.--Except as provided in subparagraph (B),
after September 30, 1998, not more than 50 percent (or 80
percent in the case of a project to be carried out in a county
for which a distressed county designation is in effect under
section 226) of the costs of any activity eligible for
financial assistance under this section may be provided from
funds appropriated to carry out this Act.
``(B) Discretionary grants.--
``(i) In general.--Discretionary grants made by the
Commission to implement significant regional initiatives,
to take advantage of special development opportunities, or
to respond to emergency economic distress in the region may
be made without regard to the percentage limitations
specified in subparagraph (A).
``(ii) Limitation on aggregate amount.--For each fiscal
year, the aggregate amount of discretionary grants referred
to in clause (i) shall not exceed 10 percent of the amounts
appropriated under section 401 for the fiscal year.''.
(c) Conforming and Technical Amendments.--
(1) Section 302 of the Appalachian Regional Development Act of
1965 (40 U.S.C. App.) is amended--
(A) in subsection (b)--
(i) in paragraph (2), by striking ``Federal Energy
Administration, the Energy Research and Development
Administration'' and inserting ``Secretary of Energy''; and
(ii) by striking paragraphs (3) and (4); and
(B) by striking subsections (d) and (e).
(2) Section 210(a) of title 35, United States Code, is
amended--
(A) by striking paragraph (11); and
(B) by redesignating paragraphs (12) through (22) as
paragraphs (11) through (21), respectively.

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Section 401 of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is amended to read as follows:
``SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--In addition to amounts authorized by section 201
and other amounts made available for the Appalachian development
highway system program, there are authorized to be appropriated to the
Commission to carry out this Act--
``(1) $68,000,000 for fiscal year 1999;
``(2) $69,000,000 for fiscal year 2000; and
``(3) $70,000,000 for fiscal year 2001.
``(b) Availability.--Sums made available under subsection (a) shall
remain available until expended.''.

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Section 405 of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is amended by striking ``1982'' and inserting ``2001''.

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Section 5334(a) of title 5, United States Code, is amended in the
second sentence by striking ``title 40, appendix, or by a regional
commission established pursuant to section 3182 of title 42, under
section 3186(a)(2) of that title'' and inserting ``the Appalachian
Regional Development Act of 1965 (40 U.S.C. App.)''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

04f67bd0ebbce25b644f72f1a0c71023914ebe58e5b54d5ee59ff2518e8f8bfc

Economic Development Administration Reform Act of 1998 — S. 2364

Other Sections

TITLE I

TITLE II

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