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<PRE>[DOCID: f:s1681is.txt]






107th CONGRESS
  1st Session
                                S. 1681

  To establish the Northern Great Plains Rural Development Authority.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 13, 2001

 Mr. Johnson (for himself, Mr. Wellstone, Mr. Harkin, Mr. Dashle, and 
  Mr. Dorgan) introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
  To establish the Northern Great Plains Rural Development Authority.

    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 ``Northern Great Plains Rural 
Development Authority Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the rural economy of the Northern Great Plains region 
        is undergoing a substantial and potentially threatening 
        transformation;
            (2) the Northern Great Plains region suffers from 
        substantial measurable poverty, unemployment, outmigration, 
        underemployment, aging of the population, and low per capita 
        income;
            (3) the Northern Great Plains region is highly rural, has a 
        highly dispersed population, and contains reservations of many 
        Indian tribes;
            (4) many of the basic industries of the rural Northern 
        Great Plains region relating to natural resources are under 
        stress;
            (5) a concerted Federal, State, and local public and 
        private effort is needed if the rural Northern Great Plains 
        region is to share in the general prosperity of the United 
        States;
            (6) the creation of jobs and expansion of businesses, 
        including small businesses, offer the greatest hope for rural 
        economic growth and revitalization in the Northern Great Plains 
        region;
            (7) the availability of capital, technology, market 
        information, infrastructure development, educational 
        opportunities, health care, housing, recreational activities, 
        and resource development are essential to successful business 
        development in the rural Northern Great Plains region;
            (8) the transportation needs of the rural Northern Great 
        Plains region must be addressed through highway and bridge 
        construction, air service availability, and rail service and 
        river transport development;
            (9) because of the social, geographic, weather, historical, 
        and cultural aspects and economic problems of the rural 
        Northern Great Plains region, planning for this unique region 
        is desirable and urgently needed;
            (10) in the rural Northern Great Plains region, the tourism 
        industry offers significant additional potential for supporting 
        economic development and job growth, fostered by the wise 
        stewardship of natural resources; and
            (11) the Northern Great Plains Rural Development Commission 
        authorized by Congress provided--
                    (A) valuable services, including the identification 
                of critical regional needs; and
                    (B) substantial recommendations relating to the 
                long term economic viability of the Northern Great 
                Plains region.

SEC. 3. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

    The Consolidated Farm and Rural Development Act is amended by 
adding at the end the following:

         ``Subtitle G--Northern Great Plains Regional Authority

``SEC. 383A. DEFINITIONS.

    ``In this subtitle:
            ``(1) Authority.--The term `Authority' means the Northern 
        Great Plains Regional Authority established by section 383B.
            ``(2) Federal grant program.--The term `Federal grant 
        program' means a Federal grant program to provide assistance 
        in--
                    ``(A) acquiring or developing land;
                    ``(B) constructing or equipping a highway, road, 
                bridge, or facility; or
                    ``(C) carrying out other economic development 
                activities.
            ``(3) Region.--The term `region' means the States of Iowa, 
        Minnesota, Nebraska, North Dakota, and South Dakota.

``SEC. 383B. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

    ``(a) Establishment.--
            ``(1) In general.--There is established the Northern Great 
        Plains Region Regional 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 (or a designee of 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--
                    ``(A) a resident of that State; and
                    ``(B) appointed by the Governor of the State.
            ``(2) Alternate federal cochairperson.--The President shall 
        appoint an alternate Federal cochairperson.
            ``(3) Quorum.--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 an 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 for the Authority to make any policy decision, 
        including--
                    ``(A) a modification or revision of an 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 383I.
            ``(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 continui
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ng basis, comprehensive and 
        coordinated plans and programs to 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 220 days after the date of enactment 
        of this subtitle, 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;
            ``(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 subtitle, 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 subtitle 
                        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 
        5, 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 
   
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             Authority under subsection (e)(6) shall receive any 
                salary or any contribution to or supplementation of 
                salary for services provided to the Authority from--
                            ``(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. 383C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.

    ``(a) In General.--The Authority may approve grants to States, 
local governments, and public and nonprofit organizations for projects, 
approved in accordance with section 383I--
            ``(1) to develop the transportation and telecommunication 
        infrastructure of the region for the purpose of facilitating 
        economic development in the region (except that grants for this 
        purpose may only be made to States, local governments, and 
        nonprofit organizations);
            ``(2) to assist the region in obtaining the job training, 
        employment-related education, and business development (with an 
        emphasis on entrepreneurship) 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;
            ``(4) to provide assistance to severely distressed and 
        underdeveloped areas that lack financial resources for 
        equipping industrial parks and related facilities; and
            ``(5) to otherwise achieve the purposes of this subtitle.
    ``(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 Federal 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 subtitle shall be focused on the 
        activities in the following order or priority:
                    ``(A) Basic public infrastructure in distressed 
                counties and isolated areas of distress.
                    ``(B) Transportation and telecommunication 
                infrastructure for the purpose of facilitating economic 
                development in the region.
                    ``(C) Business development, with emphasis on 
                entrepreneurship.
                    ``(D) Job training or employment-related 
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education, 
                with emphasis on use of existing public educational 
                institutions located in the region.
            ``(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. 383D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

    ``(a) Finding.--Congress finds that certain States and local 
communities of the region, including local 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 subtitle, 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 90 
percent of the costs of the project (except as provided in section 
383F(b)).
    ``(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 subtitle in accordance 
                with section 383I--
                            ``(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. 383E. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND 
              ADMINISTRATIVE EXPENSES.

    ``(a) Definition of Local Development District.--In this section, 
the term `local development district' means an entity that--
            ``(1) is--
                    ``(A) a planning district in existence on the date 
                of enactment of this subtitle that is recognized by the 
Economic Development Administration of the Department of Commerce; or
                    ``(B) where an entity described in subparagraph (A) 
                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 subtitle 
                        under State law for creation of multi-
                        jurisdictional, area-wide 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) Maximum period.--No grant described in 
                paragraph (1) shall be awarded to a State agency 
                certified as a local development district for a period 
                greater than 3 years.
                    ``(C) 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;
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                    ``(B) provide technical assistance to local 
                jurisdictions and potential grantees; and
                    ``(C) provide leadership and civic development 
                assistance.

``SEC. 383F. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED COUNTIES.

    ``(a) Designations.--Not later than 90 days after the date of 
enactment of this subtitle, and annually thereafter, the Authority, in 
accordance with such criteria as the Authority may establish, shall 
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, unemployment, or 
        outmigration;
            ``(2) as nondistressed counties, counties in the region 
        that are not designated as distressed counties under paragraph 
        (1); and
            ``(3) as isolated areas of distress, areas located in 
        nondistressed counties (as designated under paragraph (2)) that 
        have high rates of poverty, unemployment, or outmigration.
    ``(b) Distressed Counties.--
            ``(1) In general.--The Authority shall allocate at least 75 
        percent of the appropriations made available under section 383M 
        for programs and projects designed to serve the needs of 
        distressed counties and isolated areas of distress in the 
        region.
            ``(2) Funding limitations.--The funding limitations under 
        section 383D(b) shall not apply to a project providing 
        transportation or telecommunication or basic public services to 
        residents of 1 or more distressed counties or isolated areas of 
        distress in the region.
    ``(c) Nondistressed Counties.--
            ``(1) In general.--Except as provided in this subsection, 
        no funds shall be provided under this subtitle for a project 
        located in a county designated as a nondistressed county under 
        subsection (a)(2).
            ``(2) Exceptions.--
                    ``(A) In general.--The funding prohibition under 
                paragraph (1) shall not apply to grants to fund the 
                administrative expenses of local development districts 
                under section 383E(b).
                    ``(B) Multicounty projects.--The Authority may 
                waive the application of the funding prohibition under 
                paragraph (1) to--
                            ``(i) a multicounty project that includes 
                        participation by a nondistressed county; or
                            ``(ii) any other type of project;
                if the Authority determines that the project could 
                bring significant benefits to areas of the region 
                outside a nondistressed county.
                    ``(C) Isolated areas of distress.--For a 
                designation of an isolated area of distress for 
                assistance to be effective, the designation shall be 
                supported--
                            ``(i) by the most recent Federal data 
                        available; or
                            ``(ii) if no recent Federal data are 
                        available, by the most recent data available 
                        through the government of the State in which 
                        the isolated area of distress is located.
    ``(d) Transportation, Telecommunication, and Basic Public 
Infrastructure.--The Authority shall allocate at least 50 percent of 
any funds made available under section 383M for transportation, 
telecommunication, and basic public infrastructure projects authorized 
under paragraphs (1) and (3) of section 383C(a).

``SEC. 383G. DEVELOPMENT 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 
383B(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; and
                    ``(B) local units of government; 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 subtitle.
            ``(2) Regulations.--The Authority shall develop guidelines 
        for providing public participation described in paragraph (1), 
        including public hearings.

``SEC. 383H. PROGRAM DEVELOPMENT CRITERIA.

    ``(a) In General.--In considering programs and projects to be 
provided assistance under this subtitle, 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 
        and outmigration rates 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 subtitle shall be used to assist a person or entity in 
relocating from one area to another, except that financial assistance 
may be used as otherwise authorized by this title to attract businesses 
from outside the region to the region.
    ``(c) Reduction of Funds.--Funds may be provided for a program or 
project in a State under this subtitle only if the Authority determines 
that the level of Federal or State financial assistance provided under 
a law other than this subtitle, 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 subtitle.

``SEC. 383I. 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 
subtitle 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 subtitle 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 m
fed
ember 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 383H;
            ``(3) provides adequate assurance that the proposed project 
        will be properly administered, operated, and maintained; and
            ``(4) otherwise meets the requirements of this subtitle.
    ``(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 383B(c) shall be required for approval of the 
application.

``SEC. 383J. CONSENT OF STATES.

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

``SEC. 383K. 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 
        subtitle 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, the Inspector General of the Department of 
        Agriculture, and the Authority (including authorized 
        representatives of the Comptroller General, the Inspector 
        General of the Department of Agriculture, and the Authority).
    ``(c) Annual Audit.--The Inspector General of the Department of 
Agriculture shall audit the activities, transactions, and records of 
the Authority on an annual basis.

``SEC. 383L. 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 subtitle.

``SEC. 383M. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There is authorized to be appropriated to the 
Authority to carry out this subtitle $30,000,000 for each of fiscal 
years 2002 through 2006, 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.
    ``(c) Minimum State Share of Grants.--Notwithstanding any other 
provision of this subtitle, for any fiscal year, the aggregate amount 
of grants received by a State and all persons or entities in the State 
under this subtitle shall be not less than \1/3\ of the product 
obtained by multiplying--
            ``(1) the aggregate amount of grants under this subtitle 
        for the fiscal year; and
            ``(2) the ratio that--
                    ``(A) the population of the State (as determined by 
                the Secretary of Commerce based on the most recent 
                decennial census for which data are available); bears 
                to
                    ``(B) the population of the region (as so 
                determined).

``SEC. 383N. TERMINATION OF AUTHORITY.

    ``This subtitle and the authority provided under this subtitle 
expire on October 1, 2006.''.
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