[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 66 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 66
To establish the SouthEast Crescent Authority, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 4, 2007
Mr. McIntyre (for himself and Mr. Hayes) 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 establish the SouthEast Crescent Authority, 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 ``SouthEast Crescent Authority Act of
2007''.
SEC. 2. DEFINITIONS.
In this Act, the following definitions apply:
(1) Authority.--The term ``Authority'' means the SouthEast
Crescent Authority established by section 3.
(2) Federal grant program.--The term ``Federal grant
program'' means a Federal grant program to provide assistance
in carrying out economic and community development activities.
(3) Non-profit entity.--The term ``non-profit entity''
means any entity with tax-exempt or non-profit status, as
defined by the Internal Revenue Service, that has been formed
for the purpose of economic development or has a proven record
of economic development experience.
(4) Region.--The term ``region'' means the area covered by
the Authority (as described in section 16).
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.--
(A) Appointment.--The State member of a
participating State may have a single alternate, who
shall be appointed by the Governor of the State from
among the Governor's cabinet or personal staff.
(B) Voting.--An alternate shall vote in the event
of the absence, death, disability, removal, or
resignation of the member for whom the individual is an
alternate.
(2) Alternate federal cochairperson.--The President shall
appoint an alternate Federal cochairperson.
(3) Quorum.--
(A) In general.--Subject to the requirements of
this paragraph, the Authority shall determine what
constitutes a quorum of the Authority.
(B) Federal cochairperson.--The Federal
cochairperson or the Federal cochairperson's designee
must be present for the establishment of a quorum of
the Authority.
(C) State alternates.--A State alternate shall not
be counted toward the establishment of a quorum of the
Authority.
(4) Delegation of power.--No power or responsibility of the
Authority specified in paragraphs (3) and (4) 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) Decisions.--
(1) Requirements for approval.--Except as provided in
subsection (g), decisions by the Authority shall require the
affirmative vote of the Federal cochairperson and of a majority
of the State members, exclusive of members representing States
delinquent under subsection (g)(2)(C).
(2) Consultation.--In matters coming before the Authority,
the Federal cochairperson, to the extent practicable, shall
consult with the Federal departments and agencies having an
interest in the subject matter.
(3) Decisions requiring quorum of state members.--The
following decisions may not be made without a quorum of State
members:
(A) A decision involving Authority policy.
(B) Approval of State, regional, or subregional
development plans or strategy statements.
(C) Modification or revision of the Authority's
code.
(D) Allocation of amounts among the States.
(E) Designation of a distressed county.
(4) Project and grant proposals.--The approval of project
and grant proposals is a responsibility of the Authority and
shall be carried out in accordance with section 10.
(d) Duties.--The Authority shall--
(1) develop, on a continuing 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 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 capital assets of the region based
on available research, demonstration projects, assessments, and
evaluations of the region prepared by Federal, State, or local
agencies, local development districts, and any other relevant
source;
(4)(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; and
(5) encourage private investment in industrial, commercial,
and other economic development projects in the region.
(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 or other
transactions as are necessary to carry out Authority duties;
(10) establish and maintain a central office located within
the Southeast Crescent Authority region and field offices at
such locations as the Authority may select; and
(11) provide for an appropriate level of representation in
Washington, D.C.
(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 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
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) carrying out the administrative duties
of the Authority;
(ii) directing 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 any of
the following persons has a financial interest:
(A) The member, alternate, officer, or employee.
(B) The spouse, minor child, or partner of the
member, alternate, officer, or employee.
(C) Any organization (other than a State or
political subdivision of the State) in which the
member, alternate, officer, or employee is serving as
an officer, director, trustee, partner, or employee.
(D) Any person or organization with whom the
member, alternate, officer, or employee is negotiating
or has any arrangement concerning prospective
employment.
(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 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 a
State or local government);
(2) to assist the region in obtaining job training,
employment-related education, and business development;
(3) to provide assistance to severely distressed and
underdeveloped areas; 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) Funding priority.--Not less than 50 percent of the
amount of expenditures approved by the Authority shall support
activities or projects that benefit severely and persistently
distressed counties and areas.
(3) Eligible projects.--The Authority may provide
assistance, make grants, enter into contracts, or otherwise
provide funds to eligible entities in the region for projects
that promote--
(A) business development;
(B) job training or employment-related education;
(C) local planning and leadership development;
(D) basic public infrastructure, including high-
tech infrastructure, in distressed counties and
isolated areas of distress; and
(E) any other project facilitating economic
development in the region.
(4) Federal share.--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) Federal Grant Program Funding.--In accordance with subsection
(b), 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.
(b) 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)(i) 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
(ii) a development district recognized by the
State; or
(B) if an entity described in subparagraph (A)(i)
or (A)(ii) does not exist, an entity designated by the
Authority that satisfies the criteria developed by the
Economic Development Administration for a local
development district; 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 establishes, 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. 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
3(d)(2).
(c) Consultation.--In carrying out the development planning
process, a State shall--
(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.--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.
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 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 in relation to other
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 and Federal cochairperson 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.--Upon certification 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 (including authorized representatives of
the Comptroller General).
(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).
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
2008 through 2012. Such sums shall 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, 2012.
SEC. 16. AREA COVERED BY SOUTHEAST CRESCENT AUTHORITY.
SouthEast Crescent Authority region shall include all parts of the
States of Virginia, North Carolina, South Carolina, Georgia, Alabama,
Mississippi, and Florida that are not eligible for assistance from the
Appalachian Regional Commission or the Delta Regional Authority.
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