powers conferred by this title. Any banks insured by the Federal Deposit Insurance Corporation, when designated by the Secretary of the Treasury, may act as custodians and financial agents for the Secretary. Each Federal Reserve bank shall be entitled to be reimbursed for all expenses incurred as such fiscal agents.

PENALTIES

SEC. 114. With respect to lending activities authorized by this Act

(a) whoever makes any statement knowing it to be false, or whoever willfully overvalues any security, for the purpose of obtaining for himself or for any applicant any loan, or extension thereof by renewal, deferment of action, or otherwise, or the acceptance, release, or substitution of security therefor, or for the purpose of influencing in any way the action of the Secretary, or for the purpose of obtaining money, property, or anything of value, under this Act, shall be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both;

(b) whoever, being connected in any capacity with the Secretary (1) embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other things of value, whether belonging to it or pledged or otherwise entrusted to it, or (2) with intent to defraud the Secretary or any other body politic or corporate, or any individual, or to deceive any officer, auditor, or examiner of the Secretary makes any false entry in any book, report, or statement of or to the Secretary, or, without being duly authorized, draws any order or issues, puts forth, or assigns any note, debenture, bond, or other obligation, or draft bill of exchange, mortgage, judgment, or decree thereof, or (3) with intent to defraud participates, shares, receives directly or indirectly any money, profit, property, or benefit through any transaction, loan, commission, contract, or any other act of the Secretary, or (4) gives any unauthorized information concerning any future action or plans of the Secretary which might affect the value of securities, or, having such knowledge, invests or speculates, directly or indirectly, in the securities or property of any company or corporation receiving loans or other assistance from the Secretary shall be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both. As used in this section the term "Secretary" shall mean, with respect to the lending activities of the Housing and Home Finance Administrator authorized under this Act, the Housing and Home Finance Administrator.

USE OF OTHER FACILITIES

SEC. 115. (a) To avoid duplication of activities and minimize expense in carrying out the provisions of this Act, the Secretary shall to the extent practicable and with their consent use the available services and facilities of other agencies and instrumentalities of the Federal Government on a reimbursable basis.

(b) Departments and agencies of the Federal Government shall exercise their powers, duties, and functions in such manner as will assist in carrying out the objectives of this Act. This Act shall be supplemental to any existing authority and nothing herein shall be deemed to be restrictive of any existing powers, duties, and functions of any other department or agency of the Federal Government.

CONSULTANTS

SEC. 116. The Secretary is authorized to procure the temporary service of experts and consultants or organizations thereof, including stenographic reporting services, by contract or appointment and in such cases such service shall be without regard to the civil-service and classification laws, and, except in the case of stenographic reporting services by organizations, without regard to section 3709, Revised Statutes, as amended (41 U. S. C. 5). Any individual so employed may be compensated at a rate not in excess of $50 per diem, and, while such individual is away from his home or regular place of business, he may be allowed transportation and not to exceed $15 per diem in lieu of subsistence and other expenses.

ANNUAL REPORT

SEC. 117. The Secretary shall make a comprehensive annual report of his operations under this Act for the fiscal year ending on the preceding June 30to the President, for transmission to the Congress as soon as practicable in each year, but in no case later than the third day of the following January.

AUTHORIZATION FOR APPROPRIATIONS

SEC. 118. In addition to appropriations specifically authorized by sections 106 and 108, appropriations are further authorized for the carrying out of other provisions and purposes of this Act.

[S. 964, 85th Cong., 1st sess.]

A BILL To establish an effective program to alleviate conditions of substantial and persistent unemployment and underemployment in certain economically depressed

areas

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Area Redevelopment Act".

FINDINGS OF FACT

SEC. 2. The Congress hereby finds and declares that the maintenance of the national economy at a high level of prosperity and employment is vital to the best interests of the United States and that the existence of substantial and persistent unemployment or underemployment in certain areas of the Nation is jeopardizing the health, standard of living, and general welfare of the Nation. It is therefore the purpose of this Act to provide assistance to communities, industries, enterprises, and individuals in areas needing redevelopment to enable them to expand and adjust their productive activity to alleviate substantial and persistent unemployment or underemployment within such areas by providing new employment opportunities and developing and expanding existing facilities and resources without reducing employment in other areas of the United States.

AREA REDEVELOPMENT ADMINISTRATION

SEC. 3. In order to carry out the purposes of this Act, there is hereby established, within the executive branch of the Government, an Area Redevelopment Administration. Such Administration shall be under the direction and control of an Administrator (hereinafter referred to as "the Administrator") who shall be appointed by the President, by and with the advice and consent of the Senate, and who shall be compensated at the rate of $17,500 per annum.

ADVISORY COMMITTEES

SEC. 4. (a) There is hereby established a Government Advisory Committee on Area Redevelopment which shall be composed of the following members: The Administrator, as Chairman, the Secretary of the Interior, the Secretary of the Treasury, the Secretary of Defense, the Secretary of Agriculture, the Secretary of Commerce, the Secretary of Labor, the Secretary of Health, Education, and Welfare, the Administrator of the Small Business Administration, the Administrator of General Services, the Administrator of the Housing and Home Finance Agency, and the Director of the Office of Defense Mobilization. Such Committee, or any duly established subcommittee thereof, shall from time to time make recommendations to the Administrator relative to the carrying out of his duties under this Act, and the Administrator shall, in carrying out such duties, consult with such Committee, or any duly established subcommittee thereof. Such Committee shall hold meetings at the call of the Chairman, and such meetings shall be held at least twice during each calendar year.

(b) The Administrator shall appoint a National Public Advisory Committee on Area Redevelopment which shall consist of twelve members and which shall be composed of representatives of labor, management, agriculture, and the public in general. From the members appointed to such Committee the Administrator shall designate a Chairman. Such Committee, or any duly established subcommittee thereof, shall from time to time make recommendations to the Administrator relative to the carrying out of his duties under this Act. Such Committee shall hold not less than two meetings during each calendar year.

(c) The Administrator is authorized from time to time to call together and confer with representatives of the various parties in interest from any industry in which employment has dropped substantially over an extended period of years and which in consequence has been a primary source of high levels of unemployment in several areas designated by the Administrator as redevelopment areas.

Conferences convened under authority of this subsection shall consider with and recommend to the Administrator plans and programs with special reference to any such industry to carry out the purposes of this Act.

REDEVELOPMENT AREAS

SEC. 5. (a) The Administrator shall designate as "industrial redevelopment areas" those industrial areas within the United States in which he determines that there has existed substantial and persistent unemployment for any extended period of time. There shall be included among the areas so designated any industrial area in which there has existed unemployment for not less than (1) 12 per centum of the labor force for a period of one year immediately preceding the date on which an application for assistance is made under this Act, (2) 8 per centum of the labor force during at least fifteen months of the eighteen-month period immediately preceding such date, or (3) 6 per centum of the labor force during at least eight months in each of the two years immediately preceding such date.

(b) The Administrator shall also designate as "rural redevelopment areas" those rural areas within the United States in which he determines that there exist the largest number and percentage of low-income families, and a condition of substantial and persistent unemployment or underemployment. In making the designations under this subsection, the Administrator shall consider, among other relevant factors, the number of low-income farm families in the various rural areas of the United States, the proportion that such low-income families are to the total farm families of each of such areas, the relationship of the income levels of the families in each such area to the general levels of income in the United States, the current and prospective employment opportunities in each such area, and the availability of manpower in each such area for supplemental employment.

(c) In making the determinations provided for in this section, the Adminis trator shall be guided, but not conclusively governed, by pertinent studies made, and information and data collected or compiled, by (1) departments, agencies, and instrumentalities of the Federal Government, (2) State and local governments, (3) universities and land-grant colleges, and (4) private organizations. (d) Upon the request of the Administrator, the Secretary of Labor, the Secre tary of Agriculture, and the Director of the Bureau of the Census are respectively authorized to conduct such special studies, obtain such information, and compile and furnish to the Administrator such data as the Administrator may deem necessary or proper to enable him to make the determinations provided for in this section. The Administrator shall reimburse, out of any funds appropriated to carry out the purposes of this Act, the foregoing officers for any expenditures incurred by them under this section.

(e) As used in this Act, the term "redevelopment area" refers to any area within the United States which has been designated by the Administrator as an industrial redevelopment area or a rural redevelopment area, and may include one or more counties, or one or more municipalities, or a part of a county or municipality.

LOCAL AND REGIONAL COMMITTEES

In

SEC. 6. (a) The Administrator, upon determining that any area is a redevelopment area, shall appoint a local redevelopment committee (hereinafter referred to as a "local committee"), to be composed of not less than seven residents of such area who, as nearly as possible, are representative of labor, commercial, industrial, and agricultural groups. and of the residents generally of such area. appointing such local committee, the Administrator may include therein members of existing local redevelopment committees. Each local committee shall prepare plans and cost estimates, to the extent deemed desirable by it, for (1) the development of the resources of, and processing and marketing facilities in, the area which such committee represents, (2) the construction, rehabilitation, and alteration of industrial plants or other industrial and commercial facilities in such area, and (3) the purchase of machinery or equipment for use in such area, with a view to attracting new industries thereto and otherwise to stimulate economic activity therein. Each local committee shall enlist the support of local residents and private and public lending agencies in financing the carrying out of such plans. The Administrator shall, at the request of any local committee, make available to such committee such professional, technical, and other experts as may be necessary to enable such local committee properly to discharge its functions under this Act.

(b) The Administrator may establish regional advisory committees to represent two or more redevelopment areas when he finds that the establishment of such committees will facilitate the carrying out of the purposes of this Act. The members of such regional committees shall be appointed by the Administrator on the same basis as are members of local committees, and such regional committees shall cooperate with, and, to the extent possible, coordinate the activities of, the local committees within the regions represented by such regional committees.

(c) of the sums appropriated to carry out the purposes of this Act, not to exceed $1,500,000 shall be available to the Administrator for the purpose of assisting the local or regional committees established under this section to defray their administrative expenses, but no part thereof shall be available for the purpose of paying salaries or traveling expenses of the members of such committees.

LOANS

SEC. 7. (a) Upon application approved by any local committee, the Administrator is authorized to make loans to assist in financing the purchase or development of land for industrial usage within the redevelopment area represented by such committee, and the construction, rehabilitation, or alteration of industrial or commercial plants, or other manufacturing, commercial, or processing facilities, and the purchase of machinery or equipment for use, in such area, if he finds that

(1) the project for which financial assistance is sought is reasonably calculated to provide more than a temporary alleviation of unemployment or underemployment within the redevelopment area wherein it is, or will be, located:

(2) the funds requested for such project are not otherwise available on reasonable terms;

(3) the amount of the loan plus the amount of other available funds for such project are adequate to insure the completion thereof;

(4) the borrower (including any person, firm, or corporation which can reasonably be expected to become a successor in interest to the borrower) will not cause a transferral to, or relocation in, any plant or facility under this section, of business operations otherwise conducted by such borrower so as to effect a significant reduction in employment in any other area within the United States; and

(5) there is a reasonable expectation of repayment.

(b) No loan under this section shall be for an amount in excess of 75 per centum of the aggregate cost of the project for which such loan is made. Subject to section 14 (5), the maturity date of any such loan shall be not later than 40 years after the date such loan was made. Any such loan shall bear interest at a rate equal to the rate of interest paid by the Administrator on funds obtained from the Secretary of the Treasury as provided in section 10 of this Act, plus one-half of 1 per centum per annum.

(c) In making any loan under this section, the Administrator shall require that not less than 10 per centum, or more than 25 per centum, of the aggregate cost of the project for which such loan is made shall be supplied (1) by the State (including any agency, instrumentality, or political subdivision thereof) within which such project is to be located, or (2) by one or more community or area organizations, or persons, firms or corporations within the redevelopment area in which such project is to be located, as equity capital, or as a loan repayable only after the financial assistance provided under this section has been repaid in full, and, if such loan is secured, its security shall be subordinate to the lien or liens securing the financial assistance provided under this section: Provided, That in making any loan under this section with respect to an industrial redevelopment area, the Administrator shall require that not less than 5 per centum of the aggregate cost of the project for which such loan is made shall be supplied by nongovernmental sources. In determining the amount of participation required under this subsection with respect to any particular project, the Administrator shall give consideration to the financial condition of the State or local government, and to the per capita income of the residents of the redevelopment area, within which such project is to be located.

(d) As used in this section, the term "borrower" includes any agent, lessee or operating subcontractor thereof, or any person, firm, or corporation which directly or indirectly controls, is controlled by, or is under common control with, the borrower by reason of voting stock interest, common officers, directors or stockholders, voting trusts, or by any other direct or indirect means,

LOANS FOR PUBLIC FACILITIES

SEC. 8. (a) Upon the application of any State, or political subdivision thereof, Indian tribe, or private or public organization or association representing any redevelopment area or part thereof, the Administrator is authorized to make loans to assist in financing the purchase or development of land for public facility usage, and the construction, rehabilitation, alteration, expansion, or improvement of public facilities within any redevelopment area, if he finds that

(1) the project for which financial assistance is sought will provide more than a temporary alleviation of unemployment or underemployment in the redevelopment area wherein such project is, or will be, located, and will tend to improve the opportunities in such area for the successful establishment or expansion of industrial or commercial plants or facilities; (2) the funds requested for such project are not otherwise available on reasonable terms;

(3) the amount of the loan plus the amount of other available funds for such projects are adequate to insure the completion thereof; and

(4) there is a reasonable expectation of repayment.

(b) No loan under this section shall be for an amount in excess of 75 per centum of the aggregate cost of the project for which such loan is made. Subject to section 14 (5), the maturity date of any such loan shall be not later than 40 years after the date such loan is made. Any such loan shall bear interest at a rate equal to the rate of interest paid by the Administrator on funds obtained from the Secretary of the Treasury as provided in section 10 of this Act, plus one-half of 1 per centum per annum.

(c) In making any loan under this section, the Administrator shall require that not less than 10 per centum, nor more than 25 per centum, of the aggregate cost of the project for which such loan is made shall be supplied by the State (including any political subdivision thereof) within which such project is to be located as equity capital, or as a loan repayable only after the financial assistance provided under this section has been repaid in full, and, if such loan is secured, its security shall be subordinate to the lien or liens securing the financial assistance provided under this section. In determining the amount of participation required under this subsection with respect to any particular project, the Administrator shall give consideration to the financial condition of the State or local government, and to the per capita income of the residents of the redevelopment area, within which such project is to be located.

GRANTS FOR PUBLIC FACILITIES

SEC. 9. (a) The Administrator may conduct studies of needs in the various redevelopment areas throughout the United States for, and the probable cost of, land acquisition or development for public facility usage, and the construction, rehabilitation, alteration, expansion, or improvement of useful public facilities within such areas, and may receive proposals from any State, or political subdivision thereof, Indian tribe, or private or public organization or association representing any redevelopment area, or part thereof, relating to land acquisition or development for public facility usage, and the construction, rehabilitation, alteration, expansion, or improvement of public facilities within any such area. Any such proposal shall contain plans showing the project proposed to be undertaken, the cost thereof, and the contributions proposed to be made to such cost by the entity making the proposal. The Administrator, in consultation with such entity, is authorized to modify all or any part of such proposal.

(b) The Administrator, pursuant to a proposal received by him under this section, may make grants to any State, or political subdivision thereof, Indian tribe, or private or public organization or association representing any redevelopment area, or part thereof, for land acquisition or development for public facility usage, and the construction, rehabilitation, alteration, expansion, or improvement of public facilities within a redevelopment area, if he finds that-

(1) the project for which financial assistance is sought will provide more than a temporary alleviation of unemployment or underemployment in the redevelopment area wherein such project is, or will be, located, and will tend to improve the opportunities in such area for the successful establishment or expansion of industrial or commercial plants or facilities;

(2) the entity requesting the grant proposes to contribute to the cost of the project for which such grant is requested in proportion to its ability so to contribute; and