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<PRE>[DOCID: f:s1206enr.txt]
        S.1206

                      One Hundred Seventh Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
          the twenty-third day of January, two thousand and two


                                 An Act


 
To reauthorize the Appalachian Regional Development Act of 1965, and for 
                             other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Appalachian Regional Development Act 
Amendments of 2002''.

SEC. 2. PURPOSES.

    (a) This Act.--The purposes of this Act are--
        (1) to reauthorize the Appalachian Regional Development Act of 
    1965 (40 U.S.C. App.); and
        (2) to ensure that the people and businesses of the Appalachian 
    region have the knowledge, skills, and access to telecommunication 
    and technology services necessary to compete in the knowledge-based 
    economy of the United States.
    (b) Appalachian Regional Development Act of 1965.--Section 2 of the 
Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is 
amended--
        (1) in subsection (b), by inserting after the third sentence 
    the following: ``Consistent with the goal described in the 
    preceding sentence, the Appalachian region should be able to take 
    advantage of eco-industrial development, which promotes both 
    employment and economic growth and the preservation of natural 
    resources.''; and
        (2) in subsection (c)(2)(B)(ii), by inserting ``, including 
    eco-industrial development technologies'' before the semicolon.

SEC. 3. FUNCTIONS OF THE COMMISSION.

    Section 102(a) of the Appalachian Regional Development Act of 1965 
(40 U.S.C. App.) is amended--
        (1) in paragraph (5), by inserting ``, and support,'' after 
    ``formation of'';
        (2) in paragraph (7), by striking ``and'' at the end;
        (3) in paragraph (8), by striking the period at the end and 
    inserting a semicolon; and
        (4) by adding at the end the following:
        ``(9) encourage the use of eco-industrial development 
    technologies and approaches; and
        ``(10) seek to coordinate the economic development activities 
    of, and the use of economic development resources by, Federal 
    agencies in the region.''.

SEC. 4. INTERAGENCY COORDINATING COUNCIL ON APPALACHIA.

    Section 104 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App.) is amended--
        (1) by striking ``The President'' and inserting ``(a) In 
    General.--The President''; and
        (2) by adding at the end the following:
    ``(b) Interagency Coordinating Council on Appalachia.--
        ``(1) Establishment.--In carrying out subsection (a), the 
    President shall establish an interagency council to be known as the 
    `Interagency Coordinating Council on Appalachia'.
        ``(2) Membership.--The Council shall be composed of--
            ``(A) the Federal Cochairman, who shall serve as 
        Chairperson of the Council; and
            ``(B) representatives of Federal agencies that carry out 
        economic development programs in the region.''.

SEC. 5. TELECOMMUNICATIONS AND TECHNOLOGY INITIATIVE.

    Title II of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App.) is amended by inserting after section 202 the following:

``SEC. 203. TELECOMMUNICATIONS AND TECHNOLOGY INITIATIVE.

    ``(a) In General.--The Commission may provide technical assistance, 
make grants, enter into contracts, or otherwise provide funds to 
persons or entities in the region for projects--
        ``(1) to increase affordable access to advanced 
    telecommunications, entrepreneurship, and management technologies 
    or applications in the region;
        ``(2) to provide education and training in the use of 
    telecommunications and technology;
        ``(3) to develop programs to increase the readiness of industry 
    groups and businesses in the region to engage in electronic 
    commerce; or
        ``(4) to support entrepreneurial opportunities for businesses 
    in the information technology sector.
    ``(b) Source of Funding.--
        ``(1) In general.--Assistance under this section may be 
    provided--
            ``(A) exclusively from amounts made available to carry out 
        this section; or
            ``(B) from amounts made available to carry out this section 
        in combination with amounts made available under any other 
        Federal program or from any other source.
        ``(2) Federal share requirements specified in other laws.--
    Notwithstanding any provision of law limiting the Federal share 
    under any other Federal program, amounts made available to carry 
    out this section may be used to increase that Federal share, as the 
    Commission determines to be appropriate.
    ``(c) Cost Sharing for Grants.--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 a grant under this section 
may be provided from funds appropriated to carry out this section.''.

SEC. 6. ENTREPRENEURSHIP INITIATIVE.

    Title II of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App.) is amended by inserting after section 203 (as added by 
section 5) the following:

``SEC. 204. ENTREPRENEURSHIP INITIATIVE.

    ``(a) Definition of Business Incubator Service.--In this section, 
the term `business incubator service' means a professional or technical 
service necessary for the initiation and initial sustainment of the 
operations of a newly established business, including a service such 
as--
        ``(1) a legal service, including aid in preparing a corporate 
    charter, partnership agreement, or basic contract;
        ``(2) a service in support of the protection of intellectual 
    property through a patent, a trademark, or any other means;
        ``(3) a service in support of the acquisition and use of 
    advanced technology, including the use of Internet services and 
    Web-based services; and
        ``(4) consultation on strategic planning, marketing, or 
    advertising.
    ``(b) Projects To Be Assisted.--The Commission may provide 
technical assistance, make grants, enter into contracts, or otherwise 
provide funds to persons or entities in the region for projects--
        ``(1) to support the advancement of, and provide, 
    entrepreneurial training and education for youths, students, and 
    businesspersons;
        ``(2) to improve access to debt and equity capital by such 
    means as facilitating the establishment of development venture 
    capital funds;
        ``(3) to aid communities in identifying, developing, and 
    implementing development strategies for various sectors of the 
    economy; and
        ``(4)(A) to develop a working network of business incubators; 
    and
        ``(B) to support entities that provide business incubator 
    services.
    ``(c) Source of Funding.--
        ``(1) In general.--Assistance under this section may be 
    provided--
            ``(A) exclusively from amounts made available to carry out 
        this section; or
            ``(B) from amounts made available to carry out this section 
        in combination with amounts made available under any other 
        Federal program or from any other source.
        ``(2) Federal share requirements specified in other laws.--
    Notwithstanding any provision of law limiting the Federal share 
    under any other Federal program, amounts made available to carry 
    out this section may be used to increase that Federal share, as the 
    Commission determines to be appropriate.
    ``(d) Cost Sharing for Grants.--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 cou
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nty designation is in effect under section 226) 
of the costs of any activity eligible for a grant under this section 
may be provided from funds appropriated to carry out this section.''.

SEC. 7. REGIONAL SKILLS PARTNERSHIPS.

    Title II of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App.) is amended by inserting after section 204 (as added by 
section 6) the following:

``SEC. 205. REGIONAL SKILLS PARTNERSHIPS.

    ``(a) Definition of Eligible Entity.--In this section, the term 
`eligible entity' means a consortium that--
        ``(1) is established to serve 1 or more industries in a 
    specified geographic area; and
        ``(2) consists of representatives of--
            ``(A) businesses (or a nonprofit organization that 
        represents businesses);
            ``(B) labor organizations;
            ``(C) State and local governments; or
            ``(D) educational institutions.
    ``(b) Projects To Be Assisted.--The Commission may provide 
technical assistance, make grants, enter into contracts, or otherwise 
provide funds to eligible entities in the region for projects to 
improve the job skills of workers for a specified industry, including 
projects for--
        ``(1) the assessment of training and job skill needs for the 
    industry;
        ``(2) the development of curricula and training methods, 
    including, in appropriate cases, electronic learning or technology-
    based training;
        ``(3)(A) the identification of training providers; and
        ``(B) the development of partnerships between the industry and 
    educational institutions, including community colleges;
        ``(4) the development of apprenticeship programs;
        ``(5) the development of training programs for workers, 
    including dislocated workers; and
        ``(6) the development of training plans for businesses.
    ``(c) Administrative Costs.--An eligible entity may use not more 
than 10 percent of the funds made available to the eligible entity 
under subsection (b) to pay administrative costs associated with the 
projects described in subsection (b).
    ``(d) Source of Funding.--
        ``(1) In general.--Assistance under this section may be 
    provided--
            ``(A) exclusively from amounts made available to carry out 
        this section; or
            ``(B) from amounts made available to carry out this section 
        in combination with amounts made available under any other 
        Federal program or from any other source.
        ``(2) Federal share requirements specified in other laws.--
    Notwithstanding any provision of law limiting the Federal share 
    under any other Federal program, amounts made available to carry 
    out this section may be used to increase that Federal share, as the 
    Commission determines to be appropriate.
    ``(e) Cost Sharing for Grants.--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 a grant under this section 
may be provided from funds appropriated to carry out this section.''.

SEC. 8. PROGRAM DEVELOPMENT CRITERIA.

    (a) Elimination of Growth Center Criteria.--Section 224(a)(1) of 
the Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is 
amended by striking ``in an area determined by the State have a 
significant potential for growth or''.
    (b) Assistance to Distressed Counties and Areas.--Section 224 of 
the Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is 
amended by adding at the end the following:
    ``(d) Assistance to Distressed Counties and Areas.--For fiscal year 
2003 and each fiscal year thereafter, not less than 50 percent of the 
amount of grant expenditures approved by the Commission shall support 
activities or projects that benefit severely and persistently 
distressed counties and areas.''.
SEC. 9. GRANTS FOR ADMINISTRATIVE EXPENSES OF LOCAL DEVELOPMENT 
DISTRICTS.
    Section 302(a)(1)(A)(i) of the Appalachian Regional Development Act 
of 1965 (40 U.S.C. App.) is amended by inserting ``(or, at the 
discretion of the Commission, 75 percent of such expenses in the case 
of a local development district that has a charter or authority that 
includes the economic development of a county or part of a county for 
which a distressed county designation is in effect under section 226)'' 
after ``such expenses''.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    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) $88,000,000 for each of fiscal years 2002 through 2004;
        ``(2) $90,000,000 for fiscal year 2005; and
        ``(3) $92,000,000 for fiscal year 2006.
    ``(b) Telecommunications and Technology Initiative.--Of the amounts 
made available under subsection (a), the following amounts may be made 
available to carry out section 203:
        ``(1) $10,000,000 for fiscal year 2002.
        ``(2) $8,000,000 for fiscal year 2003.
        ``(3) $5,000,000 for each of fiscal years 2004 through 2006.
    ``(c) Availability.--Sums made available under subsection (a) shall 
remain available until expended.''.

SEC. 11. ADDITION OF COUNTIES TO APPALACHIAN REGION.

    Section 403 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App.) is amended--
        (1) in the third undesignated paragraph (relating to 
    Kentucky)--
            (A) by inserting ``Edmonson,'' after ``Cumberland,'';
            (B) by inserting ``Hart,'' after ``Harlan,''; and
            (C) by striking ``Montogomery,'' and inserting 
        ``Montgomery,''; and
        (2) in the fifth undesignated paragraph (relating to 
    Mississippi)--
            (A) by inserting ``Montgomery,'' after ``Monroe,''; and
            (B) by inserting ``Panola,'' after ``Oktibbeha,''.

SEC. 12. TERMINATION.

    Section 405 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App.) is amended by striking ``2001'' and inserting ``2006''.

SEC. 13. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Section 101(b) of the Appalachian Regional Development Act of 
1965 (40 U.S.C. App.) is amended in the third sentence by striking 
``implementing investment program'' and inserting ``strategy 
statement''.
    (b) Section 106(7) of the Appalachian Regional Development Act of 
1965 (40 U.S.C. App.) is amended by striking ``expiring no later than 
September 30, 2001''.
    (c) Sections 202, 214, and 302(a)(1)(C) of the Appalachian Regional 
Development Act of 1965 (40 U.S.C. App.) are amended by striking 
``grant-in-aid programs'' each place it appears and inserting ``grant 
programs''.
    (d) Section 202(a) of the Appalachian Regional Development Act of 
1965 (40 U.S.C. App.) is amended in the second sentence by striking 
``title VI of the Public Health Service Act (42 U.S.C. 291-291o), the 
Mental Retardation Facilities and Community Mental Health Centers 
Construction Act of 1963 (77 Stat. 282),'' and inserting ``title VI of 
the Public Health Service Act (42 U.S.C. 291 et seq.), the 
Developmental Disabilities Assistance and Bill of Rights Act of 2000 
(42 U.S.C. 15001 et seq.),''.
    (e) Section 207(a) of the Appalachian Regional Development Act of 
1965 (40 U.S.C. App.) is amended by striking ``section 221 of the 
National Housing Act, section 8 of the United States Housing Act of 
1937, section 515 of the Housing Act of 1949,'' and inserting ``section 
221 of the National Housing Act (12 U.S.C. 1715l), section 8 of the 
United States Housing Act of 1937 (42 U.S.C. 1437f), section 515 of the 
Housing Act of 1949 (42 U.S.C. 1485),''.
    (f) Section 214 of the Appalachian Regional Development Act of 1965 
(40 U.S.C. App.) is amended--
        (1) in the section heading, by striking ``grant-in-aid'' a
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nd 
    inserting ``grant'';
        (2) in subsection (a)--
            (A) by striking ``grant-in-aid Act'' each place it appears 
        and inserting ``Act'';
            (B) in the first sentence, by striking ``grant-in-aid 
        Acts'' and inserting ``Acts'';
            (C) by striking ``grant-in-aid program'' each place it 
        appears and inserting ``grant program''; and
            (D) by striking the third sentence;
        (3) by striking subsection (c) and inserting the following:
    ``(c) Definition of Federal Grant Program.--
        ``(1) In general.--In this section, the term `Federal grant 
    program' means any Federal grant program authorized by this Act or 
    any other Act that provides assistance for--
            ``(A) the acquisition or development of land;
            ``(B) the construction or equipment of facilities; or
            ``(C) any other community or economic development or 
        economic adjustment activity.
        ``(2) Inclusions.--In this section, the term `Federal grant 
    program' includes a Federal grant program such as a Federal grant 
    program authorized by--
            ``(A) the Consolidated Farm and Rural Development Act (7 
        U.S.C. 1921 et seq.);
            ``(B) the Land and Water Conservation Fund Act of 1965 (16 
        U.S.C. 460l-4 et seq.);
            ``(C) the Watershed Protection and Flood Prevention Act (16 
        U.S.C. 1001 et seq.);
            ``(D) the Carl D. Perkins Vocational and Technical 
        Education Act of 1998 (20 U.S.C. 2301 et seq.);
            ``(E) the Federal Water Pollution Control Act (33 U.S.C. 
        1251 et seq.);
            ``(F) title VI of the Public Health Service Act (42 U.S.C. 
        291 et seq.);
            ``(G) sections 201 and 209 of the Public Works and Economic 
        Development Act of 1965 (42 U.S.C. 3141, 3149);
            ``(H) title I of the Housing and Community Development Act 
        of 1974 (42 U.S.C. 5301 et seq.); or
            ``(I) part IV of title III of the Communications Act of 
        1934 (47 U.S.C. 390 et seq.).
        ``(3) Exclusions.--In this section, the term `Federal grant 
    program' does not include--
            ``(A) the program for construction of the Appalachian 
        development highway system authorized by section 201;
            ``(B) any program relating to highway or road construction 
        authorized by title 23, United States Code; or
            ``(C) any other program under this Act or any other Act to 
        the extent that a form of financial assistance other than a 
        grant is authorized.''; and
        (4) by striking subsection (d).
    (g) Section 224(a)(2) of the Appalachian Regional Development Act 
of 1965 (40 U.S.C. App.) is amended by striking ``relative per capita 
income'' and inserting ``per capita market income''.
    (h) Section 225 of the Appalachian Regional Development Act of 1965 
(40 U.S.C. App.)--
        (1) in subsection (a)(3), by striking ``development program'' 
    and inserting ``development strategies''; and
        (2) in subsection (c)(2), by striking ``development programs'' 
    and inserting ``development strategies''.
    (i) Section 303 of the Appalachian Regional Development Act of 1965 
(40 U.S.C. App.) is amended--
        (1) in the section heading, by striking ``investment programs'' 
    and inserting ``strategy statements'';
        (2) in the first sentence, by striking ``implementing 
    investments programs'' and inserting ``strategy statements''; and
        (3) by striking ``implementing investment program'' each place 
    it appears and inserting ``strategy statement''.
    (j) Section 403 of the Appalachian Regional Development Act of 1965 
(40 U.S.C. App.) is amended in the next-to-last undesignated paragraph 
by striking ``Committee on Public Works and Transportation'' and 
inserting ``Committee on Transportation and Infrastructure''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

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