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<PRE>[DOCID: f:h3618ih.txt]






107th CONGRESS
  2d Session
                                H. R. 3618

   To provide a framework for coordinating Federal, State, and local 
  efforts to meet the special needs of the SouthEast Crescent Region.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 23, 2002

 Mr. McIntyre (for himself, Mr. Shows, Mr. Burr of North Carolina, Mr. 
   Hilliard, Mr. Jefferson, Mr. Goode, Ms. McKinney, and Mr. Towns) 
 introduced the following bill; which was referred to the Committee on 
Transportation and Infrastructure, and in addition to the Committee on 
 Financial Services, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To provide a framework for coordinating Federal, State, and local 
  efforts to meet the special needs of the SouthEast Crescent Region.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress hereby finds and declares the 
following:
            (1) The SouthEast Crescent Region, while abundant in 
        natural resources and rich in potential, lags behind the rest 
        of the Nation in its economic growth and that its people have 
        not shared properly in the Nation's prosperity.
            (2) The State and local governments and the people of the 
        SouthEast Crescent Region understand their problems and have 
        been working and will continue to work purposefully toward 
        their solution.
            (3) Regionwide development of the SouthEast Crescent Region 
        is feasible, desirable and urgently needed.
            (4) The SouthEast Crescent Region has the opportunity, in 
        accommodating future growth and development, to demonstrate 
        local leadership and coordinated planning so that public 
        services, transportation, communications infrastructure, and 
        other community resources will be provided in a way compatible 
        with the traditions of the region and so as to enhance the 
        quality of life for the people of the region.
    (b) Purposes.--The purposes of this Act are the following:
            (1) To assist the SouthEast Crescent Region in addressing 
        its problems, to promote its economic development, and to 
        establish a framework for joint Federal and State efforts 
        toward providing the basic facilities essential to its growth 
        and attacking its common problems and addressing its common 
        needs on a coordinated and concerted regional basis.
            (2) To provide a framework for coordinating Federal, State, 
        and local efforts toward--
                    (A) planning for growth and change in the SouthEast 
                Crescent Region so as to maximize the economic benefits 
                and minimize future social and environmental costs; and
                    (B) implementing programs and projects carried out 
                in the region by Federal, State, and local governmental 
                agencies so as to better meet the problems of the 
                region.
            (3) To assist the SouthEast Crescent Region in--
                    (A) providing the infrastructures necessary for 
                economic and human resources development;
                    (B) developing the region's economic base;
                    (C) building entrepreneurial communities;
                    (D) generating a diversified regional economy; and
                    (E) making the region's human, economic, and 
                natural resources more competitive in national and 
                world markets.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Authority.--The term ``Authority'' means the SouthEast 
        Crescent Authority established by section 3.
            (2) Region.--The term ``region'' means the area covered by 
        the Authority (as described in section 16).
            (3) Federal grant program.--The term ``Federal grant 
        program'' means a Federal grant program to provide assistance 
        in carrying out economic and community development activities.

SEC. 3. SOUTHEAST CRESCENT AUTHORITY.

    (a) Establishment.--
            (1) In general.--There is established the SouthEast 
        Crescent Authority.
            (2) Composition.--The Authority shall be composed of--
                    (A) a Federal member, to be appointed by the 
                President, with the advice and consent of the Senate; 
                and
                    (B) the Governor of each State in the region that 
                elects to participate in the Authority.
            (3) Cochairpersons.--The Authority shall be headed by--
                    (A) the Federal member, who shall serve--
                            (i) as the Federal cochairperson; and
                            (ii) as a liaison between the Federal 
                        Government and the Authority; and
                    (B) a State cochairperson, who--
                            (i) shall be a Governor of a participating 
                        State in the region; and
                            (ii) shall be elected by the State members 
                        for a term of not less than 1 year.
    (b) Alternate Members.--
            (1) State alternates.--The State member of a participating 
        State may have a single alternate, who shall be appointed by 
        the Governor of the State from among his Cabinet or personal 
        staff.
            (2) Alternate federal cochairperson.--The President shall 
        appoint an alternate Federal cochairperson.
            (3) Quorum.--The Authority shall determine what constitutes 
        a quorum for regular or special Authority meetings. However, a 
        State alternate shall not be counted toward the establishment 
        of a quorum of the Authority in any instance in which a quorum 
        of the State members is required to be present.
            (4) Delegation of power.--No power or responsibility of the 
        Authority specified in paragraphs (2) and (3) of subsection 
        (c), and no voting right of any Authority member, shall be 
        delegated to any person--
                    (A) who is not a Authority member; or
                    (B) who is not entitled to vote in Authority 
                meetings.
    (c) Voting.--
            (1) In general.--A decision by the Authority shall require 
        a majority vote of the Authority (not including any member 
        representing a State that is delinquent under subsection 
        (g)(2)(C)) to be effective.
            (2) Quorum.--A quorum of State members shall be required to 
        be present in person or by agreed upon electronic means for the 
        Authority to make any policy decision, including--
                    (A) a modification or revision of a Authority 
                policy decision;
                    (B) approval of a State or regional development 
                plan; and
                    (C) any allocation of funds among the States.
            (3) Project and grant proposals.--The approval of project 
        and grant proposals shall be--
                    (A) a responsibility of the Authority; and
                    (B) conducted in accordance with section 10.
            (4) Voting by alternate members.--An alternate member shall 
        vote in the case of the absence, death, disability, removal, or 
        resignation of the Federal or State representative for which 
        the alternate member is an alternate.
    (d) Duties.--The Authority shall--
            (1) develop, on a continuing basis, comprehensive and 
        coordinated plans and programs to 
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establish priorities and 
        approve grants for the economic development of the region, 
        giving due consideration to other Federal, State, and local 
        planning and development activities in the region;
            (2) not later than 365 days after the date of enactment of 
        this Act, establish priorities in a development plan for the 
        region (including 5-year regional outcome targets);
            (3) assess the needs and assets of the region based on 
        available research, demonstrations, investigations, 
        assessments, and evaluations of the region prepared by Federal, 
        State, and local agencies, universities, local development 
        districts, and other nonprofit groups;
            (4) formulate and recommend to the Governors and 
        legislatures of States that participate in the Authority forms 
        of interstate cooperation;
            (5) work with State and local agencies in developing 
        appropriate model legislation;
            (6)(A) enhance the capacity of, and provide support for, 
        local development districts in the region; or
            (B) if no local development district exists in an area in a 
        participating State in the region, foster the creation of a 
        local development district;
            (7) encourage private investment in industrial, commercial, 
        and other economic development projects in the region; and
            (8) cooperate with and assist State governments with 
        economic development programs of participating States.
    (e) Administration.--In carrying out subsection (d), the Authority 
may--
            (1) hold such hearings, sit and act at such times and 
        places, take such testimony, receive such evidence, and print 
        or otherwise reproduce and distribute a description of the 
        proceedings and reports on actions by the Authority as the 
        Authority considers appropriate;
            (2) authorize, through the Federal or State cochairperson 
        or any other member of the Authority designated by the 
        Authority, the administration of oaths if the Authority 
        determines that testimony should be taken or evidence received 
        under oath; and
            (3) request from any Federal, State, or local department or 
        agency such information as may be available to or procurable by 
        the department or agency that may be of use to the Authority in 
        carrying out duties of the Authority;
            (4) adopt, amend, and repeal bylaws and rules governing the 
        conduct of Authority business and the performance of Authority 
        duties;
            (5) request the head of any Federal department or agency to 
        detail to the Authority such personnel as the Authority 
        requires to carry out duties of the Authority, each such detail 
        to be without loss of seniority, pay, or other employee status;
            (6) request the head of any State department or agency or 
        local government to detail to the Authority such personnel as 
        the Authority requires to carry out duties of the Authority, 
each such detail to be without loss of seniority, pay, or other 
employee status;
            (7) provide for coverage of Authority employees in a 
        suitable retirement and employee benefit system by--
                    (A) making arrangements or entering into contracts 
                with any participating State government; or
                    (B) otherwise providing retirement and other 
                employee benefit coverage;
            (8) accept, use, and dispose of gifts or donations of 
        services or real, personal, tangible, or intangible property;
            (9) enter into and perform such contracts, leases, 
        cooperative agreements, or other transactions as are necessary 
        to carry out Authority duties, including any contracts, leases, 
        or cooperative agreements with--
                    (A) any department, agency, or instrumentality of 
                the United States;
                    (B) any State (including a political subdivision, 
                agency, or instrumentality of the State); or
                    (C) any person, firm, association, or corporation; 
                and
            (10) establish and maintain a central office and field 
        offices at such locations as the Authority may select.
    (f) Federal Agency Cooperation.--A Federal agency shall--
            (1) cooperate with the Authority; and
            (2) provide, on request of the Federal cochairperson, 
        appropriate assistance in carrying out this Act, in accordance 
        with applicable Federal laws (including regulations).
    (g) Administrative Expenses.--
            (1) In general.--Administrative expenses of the Authority 
        (except for the expenses of the Federal cochairperson, 
        including expenses of the alternate and staff of the Federal 
        cochairperson, which shall be paid solely by the Federal 
        Government) shall be paid--
                    (A) by the Federal Government, in an amount equal 
                to 50 percent of the administrative expenses; and
                    (B) by the States in the region participating in 
                the Authority, in an amount equal to 50 percent of the 
                administrative expenses.
            (2) State share.--
                    (A) In general.--The share of administrative 
                expenses of the Authority to be paid by each State 
                shall be determined by the Authority.
                    (B) No federal participation.--The Federal 
                cochairperson shall not participate or vote in any 
                decision under subparagraph (A).
                    (C) Delinquent states.--If a State is delinquent in 
                payment of the State's share of administrative expenses 
                of the Authority under this subsection--
                            (i) no assistance under this Act shall be 
                        furnished to the State (including assistance to 
                        a political subdivision or a resident of the 
                        State); and
                            (ii) no member of the Authority from the 
                        State shall participate or vote in any action 
                        by the Authority.
    (h) Compensation.--
            (1) Federal cochairperson.--The Federal cochairperson shall 
        be compensated by the Federal Government at level III of the 
        Executive Schedule in subchapter II of chapter 53 of title V, 
        United States Code.
            (2) Alternate federal cochairperson.--The alternate Federal 
        cochairperson--
                    (A) shall be compensated by the Federal Government 
                at level V of the Executive Schedule described in 
                paragraph (1); and
                    (B) when not actively serving as an alternate for 
                the Federal cochairperson, shall perform such functions 
                and duties as are delegated by the Federal 
                cochairperson.
            (3) State members and alternates.--
                    (A) In general.--A State shall compensate each 
                member and alternate representing the State on the 
                Authority at the rate established by law of the State.
                    (B) No additional compensation.--No State member or 
                alternate member shall receive any salary, or any 
                contribution to or supplementation of salary from any 
                source other than the State for services provided by 
                the member or alternate to the Authority.
            (4) Detailed employees.--
                    (A) In general.--No person detailed to serve the 
                Authority under subsection (e)(6) shall receive any 
                salary or any contribution to or supplementation of 
                salary for services provided to the Authority from--
      
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                      (i) any source other than the State, local, 
                        or intergovernmental department or agency from 
                        which the person was detailed; or
                            (ii) the Authority.
                    (B) Violation.--Any person that violates this 
                paragraph shall be fined not more than $5,000, 
                imprisoned not more than 1 year, or both.
                    (C) Applicable law.--The Federal cochairperson, the 
                alternate Federal cochairperson, and any Federal 
                officer or employee detailed to duty on the Authority 
                under subsection (e)(5) shall not be subject to 
                subparagraph (A), but shall remain subject to sections 
                202 through 209 of title 18, United States Code.
            (5) Additional personnel.--
                    (A) Compensation.--
                            (i) In general.--The Authority may appoint 
                        and fix the compensation of an executive 
                        director and such other personnel as are 
necessary to enable the Authority to carry out the duties of the 
Authority.
                            (ii) Exception.--Compensation under clause 
                        (i) shall not exceed the maximum rate 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.
                    (B) Executive director.--The executive director 
                shall be responsible for--
                            (i) the carrying out of the administrative 
                        duties of the Authority;
                            (ii) direction of the Authority staff; and
                            (iii) such other duties as the Authority 
                        may assign.
                    (C) No federal employee status.--No member, 
                alternate, officer, or employee of the Authority 
                (except the Federal cochairperson of the Authority, the 
                alternate and staff for the Federal cochairperson, and 
                any Federal employee detailed to the Authority under 
                subsection (e)(5)) shall be considered to be a Federal 
                employee for any purpose.
    (i) Conflicts of Interest.--
            (1) In general.--Except as provided under paragraph (2), no 
        State member, alternate, officer, or employee of the Authority 
        shall participate personally and substantially as a member, 
        alternate, officer, or employee of the Authority, through 
        decision, approval, disapproval, recommendation, the rendering 
        of advice, investigation, or otherwise, in any proceeding, 
        application, request for a ruling or other determination, 
        contract, claim, controversy, or other matter in which, to 
        knowledge of the member, alternate, officer, or employee--
                    (A) the member, alternate, officer, or employee;
                    (B) the spouse, minor child, partner, or 
                organization (other than a State or political 
                subdivision of the State) of the member, alternate, 
                officer, or employee, in which the member, alternate, 
                officer, or employee is serving as officer, director, 
                trustee, partner, or employee; or
                    (C) any person or organization with whom the 
                member, alternate, officer, or employee is negotiating 
                or has any arrangement concerning prospective 
                employment; has a financial interest.
            (2) Disclosure.--Paragraph (1) shall not apply if the State 
        member, alternate, officer, or employee--
                    (A) immediately advises the Authority of the nature 
                and circumstances of the proceeding, application, 
                request for a ruling or other determination, contract, 
                claim, controversy, or other particular matter 
                presenting a potential conflict of interest;
                    (B) makes full disclosure of the financial 
                interest; and
                    (C) before the proceeding concerning the matter 
                presenting the conflict of interest, receives a written 
                determination by the Authority that the interest is not 
                so substantial as to be likely to affect the integrity 
                of the services that the Authority may expect from the 
                State member, alternate, officer, or employee.
            (3) Violation.--Any person that violates this subsection 
        shall be fined not more than $10,000, imprisoned not more than 
        2 years, or both.
    (j) Validity of Contracts, Loans, and Grants.--The Authority may 
declare void any contract, loan, or grant of or by the Authority in 
relation to which the Authority determines that there has been a 
violation of any provision under subsection (h)(4), subsection (i), or 
sections 202 through 209 of title 18, United States Code.

SEC. 4. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.

    (a) In General.--The Authority may approve grants to States and 
public and nonprofit entities for projects, approved in accordance with 
section 10--
            (1) to develop the infrastructures of the region for the 
        purpose of facilitating economic development in the region 
        (except that grants for this purpose may only be made to a 
        State or local government);
            (2) to assist the region in obtaining the job training, 
        employment-related education, and business development that are 
        needed to build and maintain strong local economies;
            (3) to provide assistance to severely distressed and 
        underdeveloped areas that lack financial resources for 
        improving basic public services; and
            (4) to otherwise achieve the purposes of this Act.
    (b) Funding.--
            (1) In general.--Funds for grants under subsection (a) may 
        be provided--
                    (A) entirely from appropriations to carry out this 
                section;
                    (B) in combination with funds available under 
                another State or Federal grant program; or
                    (C) from any other source.
            (2) Priority of funding.--To best build the foundations for 
        long-term economic development and to complement other Federal 
        and State resources in the region, Federal funds available 
        under this Act shall be focused on the following activities to 
        enhance the economic capacity of the region including:
                    (A) Basic public infrastructures in distressed 
                counties and isolated areas of distress.
                    (B) Infrastructures for the purpose of facilitating 
                economic development in the region.
                    (C) Business development, with emphasis on 
                entrepreneurship.
                    (D) Job training or employment-related education, 
                with emphasis on use of existing public educational 
                institutions located in the region.
                    (E) Access for residents to affordable, quality 
                health care.
                    (F) Local planning and leadership development.
            (3) Federal share in grant programs.--Notwithstanding any 
        provision of law limiting the Federal share in any grant 
        program, funds appropriated to carry out this section may be 
        used to increase a Federal share in a grant program, as the 
        Authority determines appropriate.

SEC. 5. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

    (a) Finding.--Congress finds that certain States and local 
communities of the region, including loca
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l development districts, may 
be unable to take maximum advantage of Federal grant programs for which 
the States and communities are eligible because--
            (1) they lack the economic resources to meet the required 
        matching share; or
            (2) there are insufficient funds available under the 
        applicable Federal grant law authorizing the program to meet 
        pressing needs of the region.
    (b) Federal Grant Program Funding.--In accordance with subsection 
(c), the Federal cochairperson may use amounts made available to carry 
out this Act, without regard to any limitations on areas eligible for 
assistance or authorizations for appropriation under any other Act, to 
fund all or any portion of the basic Federal contribution to a project 
or activity under a Federal grant program in the region in an amount 
that is above the fixed maximum portion of the cost of the project 
otherwise authorized by applicable law, but not to exceed 80 percent of 
the costs of the project.
    (c) Certification.--
            (1) In general.--In the case of any program or project for 
        which all or any portion of the basic Federal contribution to 
        the project under a Federal grant program is proposed to be 
        made under this section, no Federal contribution shall be made 
        until the Federal official administering the Federal law 
        authorizing the contribution certifies that the program or 
        project--
                    (A) meets the applicable requirements of the 
                applicable Federal grant law; and
                    (B) could be approved for Federal contribution 
                under the law if funds were available under the law for 
                the program or project.
            (2) Certification by authority.--
                    (A) In general.--The certifications and 
                determinations required to be made by the Authority for 
                approval of projects under this Act in accordance with 
                section 10--
                            (i) shall be controlling; and
                            (ii) shall be accepted by the Federal 
                        agencies.
                    (B) Acceptance by federal cochairperson.--Any 
                finding, report, certification, or documentation 
                required to be submitted to the head of the department, 
                agency, or instrumentality of the Federal Government 
                responsible for the administration of any Federal grant 
                program shall be accepted by the Federal cochairperson 
                with respect to a supplemental grant for any project 
                under the program.

SEC. 6. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND ADMINISTRATIVE 
              EXPENSES.

    (a) Definition of Local Development District.--In this section, the 
term ``local development district'' means an entity designated by the 
State that--
            (1) is--
                    (A) a planning district in existence on the date of 
                enactment of this Act that is recognized by the 
                Economic Development Administration of the Department 
                of Commerce; or
                    (B) a development district recognized by the State; 
                or
                    (C) where an entity described in subparagraph (A) 
                or (B) does not exist--
                            (i) organized and operated in a manner that 
                        ensures broad-based community participation and 
                        an effective opportunity for other nonprofit 
                        groups to contribute to the development and 
                        implementation of programs in the region;
                            (ii) governed by a policy board with at 
                        least a simple majority of members consisting 
                        of elected officials or employees of a general 
                        purpose unit of local government who have been 
                        appointed to represent the government;
                            (iii) certified to the Authority as having 
                        a charter or authority that includes the 
                        economic development of counties or parts of 
                        counties or other political subdivisions within 
                        the region--
                                    (I) by the Governor of each State 
                                in which the entity is located; or
                                    (II) by the State officer 
                                designated by the appropriate State law 
                                to make the certification; and
                            (iv)(I) a nonprofit incorporated body 
                        organized or chartered under the law of the 
                        State in which the entity is located;
                            (II) a nonprofit agency or instrumentality 
                        of a State or local government;
                            (III) a public organization established 
                        before the date of enactment of this Act under 
                        State law for creation of multijurisdictional, 
                        areawide planning organizations; or
                            (IV) a nonprofit association or combination 
                        of bodies, agencies, and instrumentalities 
                        described in subclauses (I) through (III); and
            (2) has not, as certified by the Federal cochairperson--
                    (A) inappropriately used Federal grant funds from 
                any Federal source; or
                    (B) appointed an officer who, during the period in 
                which another entity inappropriately used Federal grant 
funds from any Federal source, was an officer of the other entity.
    (b) Grants to Local Development Districts.--
            (1) In general.--The Authority may make grants for 
        administrative expenses under this section.
            (2) Conditions for grants.--
                    (A) Maximum amount.--The amount of any grant 
                awarded under paragraph (1) shall not exceed 80 percent 
                of the administrative expenses of the local development 
                district receiving the grant.
                    (B) Local share.--The contributions of a local 
                development district for administrative expenses may be 
                in cash or in kind, fairly evaluated, including space, 
                equipment, and services.
    (c) Duties of Local Development Districts.--A local development 
district shall--
            (1) operate as a lead organization serving multicounty 
        areas in the region at the local level; and
            (2) serve as a liaison between State and local governments, 
        nonprofit organizations (including community-based groups and 
        educational institutions), the business community, and citizens 
        that--
                    (A) are involved in multijurisdictional planning;
                    (B) provide technical assistance to local 
                jurisdictions and potential grantees; and
                    (C) provide leadership and civic development 
                assistance.

SEC. 7. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED COUNTIES.

    Not later than 90 days after the date of enactment of this Act, and 
annually thereafter, the Authority, in accordance with such criteria as 
the Authority may designate--
            (1) as distressed counties, counties in the region that are 
        the most severely and persistently distressed and 
        underdeveloped and have high rates of poverty, low per capita 
        income, or high rates of unemployment; and
            (2) as isolated areas of distress, areas located in 
        nondistressed counties in the region that are severely and 
        persistently distressed as documented by comparable statistical 
        measures.

SEC. 8. DE
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VELOPMENT PLANNING PROCESS.

    (a) State Development Plan.--In accordance with policies 
established by the Authority, each State member shall submit a 
development plan for the area of the region represented by the State 
member.
    (b) Content of Plan.--A State development plan submitted under 
subsection (a) shall reflect the goals, objectives, and priorities 
identified in the regional development plan developed under section 
3(d)(2).
    (c) Consultation With Interested Local Parties.--In carrying out 
the development planning process (including the selection of programs 
and projects for assistance), a State may--
            (1) consult with--
                    (A) local development districts;
                    (B) local units of government; and
                    (C) institutions of higher learning; and
            (2) take into consideration the goals, objectives, 
        priorities, and recommendations of the entities described in 
        paragraph (1).
    (d) Public Participation.--
            (1) In general.--The Authority and applicable State and 
        local development districts shall encourage and assist, to the 
        maximum extent practicable, public participation in the 
        development, revision, and implementation of all plans and 
        programs under this Act.
            (2) Regulations.--The Authority shall develop guidelines 
        for providing public participation described in paragraph (1), 
        including public hearings.

SEC. 9. PROGRAM DEVELOPMENT CRITERIA.

    (a) In General.--In considering programs and projects to be 
provided assistance under this Act, and in establishing a priority 
ranking of the requests for assistance provided by the Authority, the 
Authority shall follow procedures that ensure, to the maximum extent 
practicable, consideration of--
            (1) the relationship of the project or class of projects to 
        overall regional development;
            (2) the per capita income and poverty and unemployment 
        rates and other socioeconomic indicators in an area;
            (3) the financial resources available to the applicants for 
        assistance seeking to carry out the project, with emphasis on 
        ensuring that projects are adequately financed to maximize the 
        probability of successful economic development;
            (4) the importance of the project or class of projects in 
        relation to other projects or classes of projects that may be 
        in competition for the same funds;
            (5) the prospects that the project for which assistance is 
        sought will improve, on a continuing rather than a temporary 
        basis, the opportunities for employment, the average level of 
        income, or the economic development of the area served by the 
        project; and
            (6) the extent to which the project design provides for 
        detailed outcome measurements by which grant expenditures and 
        the results of the expenditures may be evaluated.
    (b) No Relocation Assistance.--No financial assistance authorized 
by this Act shall be used to assist an establishment in relocating from 
1 area to another.
    (c) Reduction of Funds.--Funds may be provided for a program or 
project in a State under this Act only if the Authority determines that 
the level of Federal or State financial assistance provided under a law 
other than this Act, for the same type of program or project in the 
same area of the State within the region, will not be reduced as a 
result of funds made available by this Act.

SEC. 10. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.

    (a) In General.--A State or regional development plan or any 
multistate subregional plan that is proposed for development under this 
Act shall be reviewed by the Authority.
    (b) Evaluation by State Member.--An application for a grant or any 
other assistance for a project under this Act shall be made through and 
evaluated for approval by the State member of the Authority 
representing the applicant.
    (c) Certification.--An application for a grant or other assistance 
for a project shall be approved only on certification by the State 
member that the application for the project--
            (1) describes ways in which the project complies with any 
        applicable State development plan;
            (2) meets applicable criteria under section 9;
            (3) provides adequate assurance that the proposed project 
        will be properly administered, operated, and maintained; and
            (4) otherwise meets the requirements of this Act.
    (d) Votes for Decisions.--On certification by a State member of the 
Authority of an application for a grant or other assistance for a 
specific project under this section, an affirmative vote of the 
Authority under section 3(c) shall be required for approval of the 
application.

SEC. 11. CONSENT OF STATES.

    Nothing in this Act requires any State to engage in or accept any 
program under this Act without the consent of the State.

SEC. 12. RECORDS.

    (a) Records of the Authority.--
            (1) In general.--The Authority shall maintain accurate and 
        complete records of all transactions and activities of the 
        Authority.
            (2) Availability.--All records of the Authority shall be 
        available for audit and examination by the Comptroller General 
        of the United States and the Inspector General of the 
        Department of Agriculture (including authorized representatives 
        of the Comptroller General and the Inspector General of the 
        Department of Agriculture).
    (b) Records of Recipients of Federal Assistance.--
            (1) In general.--A recipient of Federal funds under this 
        Act shall, as required by the Authority, maintain accurate and 
        complete records of transactions and activities financed with 
        Federal funds and report on the transactions and activities to 
        the Authority.
            (2) Availability.--All records required under paragraph (1) 
        shall be available for audit by the Comptroller General of the 
        United States, and the Authority (including authorized 
        representatives of the Comptroller General, and the Authority).
    (c) Annual Audit.--The Authority shall secure an independent 
auditor to audit the activities, transactions, and records of the 
Authority on an annual basis.

SEC. 13. ANNUAL REPORT.

    Not later than 180 days after the end of each fiscal year, the 
Authority shall submit to the President and to Congress a report 
describing the activities carried out under this Act.

SEC. 14. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated to the 
Authority to carry out this Act $40,000,000 for each of fiscal years 
2003 through 2007, to remain available until expended.
    (b) Administrative Expenses.--Not more than 5 percent of the amount 
appropriated under subsection (a) for a fiscal year shall be used for 
administrative expenses of the Authority.

SEC. 15. TERMINATION OF AUTHORITY.

    This Act shall have no force or effect on or after October 1, 2007.

SEC. 16. AREA COVERED BY SOUTHEAST CRESCENT AUTHORITY.

    (a) In General.--The SouthEast Crescent Authority shall include all 
parts of the States of Virginia, North Carolina, South Carolina, 
Georgia, Alabama, Mississippi, and Florida not already served by the 
Appalachian Regional Commission or the Delta Regional Authority.
    (b) Additional Areas Eligible for Inclusion.--Upon adoption by the 
government of any of the following counties in Alabama of a formal 
resolution indicating the decision of the county to be included in the 
SouthEast Crescent Authority, the county shall be so included: Barbour, 
Bullock, Choctaw, Clarke, Dallas, Greene, Hale, Lowndes, Macon, 
Marengo, Perry, Pickens, Russell, Sumter, Washington, Wilcox.
                                 &lt;all&gt;

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