(a) (3) thereof, all economic development districts designated under section 403 (a) (1) of the Act, and all economic development centers designated under section 403 (a) (2) of the Act, shall be deemed terminated at midnight on December 31, 1971.

TRANSFER OF CERTAIN APPROPRIATIONS

SEC. 404 (a) Notwithstanding any provision of the Act.

(1) Fifty per centum of the total appropriation made under the Act, except for title V thereof, for the fiscal year ending June 30, 1972, shall not be obligated after December 31, 1971, and shall be transferred to and merged with the funds authorized under the authority of section 201: Provided, however, That an amount of such appropriation as would be in the ordinary course of business be obligated after December 31, 1971, for those purposes specified in section 402 hereof shall not be so transferred and shall remain available until June 30, 1972. for such purpose; and

(2) The full amount of the remaining 50 per centum may be obligated on or before December 31, 1971, but all such amounts as are unobligated prior to such date shall be transferred to and merged with the funds authorized under the authority of section 201.

(b) All collections and repayments deposited on or before December 31, 1971, in the Economic Development Revolving Fund established pursuant to section 203 of this Act shall be transferred to and merged with the funds authorized under the authority of section 201 and all collections and repayments received under the Act after December 31, 1971, shall be deposited in and merged with the funds authorized under the authority of section 201: Provided, however, That such amounts shall be retained in the Economic Development Revolving Fund as may be required to pay interest to the Treasury, pursuant to section 203 of the Act, on the amount of loans outstanding under the Act.

CERTAIN PROVISIONS REPEALED

SEC. 405. (a) Effective July 1, 1972, title V of the Act shall be deemed repealed.

(b) The Secretary of Commerce shall, no later than June 30, 1972, assume the administration of projects, the functions, powers, duties, and authorities, and the assets, liabilities, authorizations, apportionments, allocations, appropriations, and records which were, pursuant to title V of the Act and on or before June 30, 1972, undertaken by, vested in, or authorized to, the regional commissions established pursuant to title V of the Act.

(c) Each regional commission shall, prior to June 30, 1972, make such assignments to the Secretary of Commerce as may be necessary to enable him to fulfill his functions under subsection (b).

(d) On January 1, 1971, there shall be transferred to and merged with the funds authorized under the authority of section 201, all balances of appropriations made under the authorization of title V of the Act, unobligated as of such date, except such amounts available under such authorization and appropriation for the administrative expenses of the regional commissions to June 30, 1972.

(e) Notwithstanding section 510 of the Act, each regional commission shall, not later than June 30, 1972, make a comprehensive and detailed report to Congress with respect to such commission's activities during the fiscal year ending June 30, 1972.

PART B-APPALACHIAN REGIONAL DEVELOPMENT ACT OF 1965

DEFINITION

SEC. 406. For the purposes of this part, the word "Act" means the Appalachian Regional Development Act of 1965, as amended (40 App. U.S.C. 1-405).

TRANSFER OF APPROPRIATION BALANCES

SEC. 407. On January 1, 1972, there shall be transferred to and merged with the funds authorized under the authority of section 201, all balances of appropriations made under the authorizations in sections 201(g) and 401 of the Act, unobligated as of such date, except such amounts available under such authorization and appropriation.

(a) Which are required for programs and projects under sections 202, 203, 204, 205, 211, 212, 214, and 302 (a) (2) of the Act, approved by the Commission on or before December 31, 1971: Provided, however, That this section shall not be interpreted to prohibit the obligation of funds for construction overruns on projects for which financial assistance was approved on or before December 31, 1971.

(b) Which have been apportioned by the Commission to the States for the Appalachian development highway system in accordance with section 201 of the Act and sections 106 (a) and 118 of title 23, United States Code: Provided, however, That notwithstanding such sections, funds authorized under section 201 of the Act for the fiscal year ending June 30, 1973, shall not be so apportioned.

(c) Which are required to reimburse States for the Federal share of projects constructed without Federal funds in accordance with section 201 (h) of the Act which were approved by the Commission on or before December 31, 1971, and which are in excess of apportionments referred to in subsection (b);

(d) As may be necessary to provide for the administration and monitoring through completion of programs and projects approved by the Commission on or before December 31, 1971, including those for which funds have been apportioned or approved as provided under subsection (b) or (c) herein; (e) As may be required for:

(1) continuation of operating grants under section 202 of the Act to maintain and continue any demonstration projects for which a prior operating grant was approved on/or before December 31, 1971; and

(2) grants for administrative expenses of local development districts under section 302 of the Act to maintain such organizations: Provided, however, That such district had been certified under section 301 of the Act and a grant for its administrative expenses had been approved on or before December 31, 1971, until such time as the Governor of the State in which such project or district is located certifies that such project or district can be continued with State or other funds or that it shall no receive further assistance: Provided, however, That no such continuation grant or grant for administrative expenses of a district shall provide funds to maintain such project or district beyond June 30, 1972; and

(f) Which have been deposited in the Appalachian Housing Fund pursuant to section 207 (d) of the Act. Notwithstanding any provisions of this Rural Community Development Revenue Sharing Act of 1971, the Secretary of Housing and Urban Development may continue to make loans and grants as authorized in section 207 of the Act, upon applications approved by the Governor of the State or his designee.

APPALACHIAN REGIONAL COMMISSION

SEC. 408. Notwithstanding any other provision of law, the Appalachian Regional Commission established pursuant to section 101 of the Appalachian Act, and the Federal participation in, and support of, such Commission, Federal Cochairman and staffs authorized under sections 101, 105, and 106 of such Act shall continue after enactment of this Rural Community Development Revenue Sharing Act.

CONTINUATION OF AUTHORITIES

SEC. 409. All duties, responsibilities, authorities, and functions vested in the Secretaries of Transportation; Health, Education, and Welfare; Agriculture; Housing and Urban Development; and Labor; and in any other Federal department, agency, or officer under the Act shall, to the extent necessary to effectuate the purposes of this part and section, continue to be vested in such officials or such other officials as may be provided by law or as the President may direct.

PART C-DEPARTMENT OF AGRICULTURE

RURAL ENVIRONMENTAL ASSISTANCE PROGRAM

SEC. 410. No applications for Federal cost sharing for soil building and soiland water-conserving practices under sections 7 to 15, 16(a), and 17 of the Soil Conservation and Domestic Allotment Act, as amended (16 U.S.C. 590g-5900, 590p (a), and 590q), shall be approved after December 31, 1971, and all unused contract authority is rescinded after December 31, 1971.

WATER BANK

SEC. 411. No agreements shall be entered into under the Water Bank Act (84 Stat. 1468).

FORESTRY ASSISTANCE

SEC. 412. No funds shall be paid after December 31, 1971, to States or political subdivisions thereof for forestry and tree planting assistance, as authorized by sections 1, 2, and 4 of the Clarke-McNary Act, as amended and supplemented (16 U.S.C. 564, 565, 565a, 566 a and b, and 567), the White Pine Blister Rust Protection Act (16 U.S.C. 594a), the Forest Pest Control Act (16 U.S.C. 594-1 through 594-5), the Cooperative Forest Management Act, as amended (16 U.S.C. 568c and 568d), and section 401 of the Agriculture Act of 1956, as supplemented (16 U.S.C. 568e-568g).

WATER AND WASTE DISPOSAL SYSTEMS

SEC. 413. No grants shall be made after December 31, 1971, for

(a) activities authorized in section 306(a)(2) of the Consolidated Farmers Home Administration Act of 1961, as amended (7 U.S.C. 1926(a) (2)) or

(b) preparation of official comprehensive plans for the development of water or sewer systems in rural areas as authorized in section 306(a)(6) of said Act (7 U.S.C. 1926 (a) (6)).

GREAT PLAINS CONSERVATION

SEC. 414. No new contracts shall be entered into under the Great Plains conservation program authorized by section 16(b) of the Soil Conservation and Domestic Allotment Act, as amended (16 U.S.C. 590p (b)), after December 31, 1971.

RESOURCE CONSERVATION AND DEVELOPMENT

SEC. 415. Unless such project measure has been approved on or before December 31, 1971, no financial assistance shall be provided to carry out any project measures under the authority of section 32e of title III of the Bankhead-Jones Farm Tenant Act, as amended (7 U.S.C. 1011e), or sections 1-6 of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590a-f), in a resource conservation and development plan developed in the program for land stabilization and land conservation authorized under sections 31 and 32 of title III of the Bankhead-Jones Farm Tenant Act, as amended (7 U.S.C. 1010 and 1011).

EXTENSION SERVICE

SEC. 416. (a) No payments to States for extension work as authorized by the Smith-Lever Act, as amended (7 U.S.C. 341-349), and sections 204 (b) and 205 of the Agricultural Marketing Act of 1946, as amended (7 U.S.C. 1623 and 1624), shall be made after December 31, 1971. No payments shall be made by the Secretary after June 30, 1972, for the cost of the employer's share of Federal retirement and for benefits paid from the Employees' Compensation Fund for State cooperative extension employees.

(b) Equipment and other property in the possession of a land-grant university which was purchased in whole or part from funds made available for extension work shall remain the property of the university.

(c) The provisions of section 4152 (a) (F) of title 39, United States Code, relating to penalty mail for extension agents and directors are repealed, effective December 31, 1971.

(d) Any person who, by virtue of his position as a cooperative extension employee, currently has coverage under the Federal employees' inquiry compensation program authorized by chapter 81 of title 5, United States Code, the unemployment compensation program authorized by chapter 85 of title 5, United States Code, the Civil Service Retirement Act, chapter 83 of title 5, United States Code, the Federal employees' group life insurance program authorized by chapter 87 of title 5, United States Code, or the Federal employes' health benefits program authorized by chapter 89 of title 5, United States Code, may continue such coverage if an extension program is continued by the State: Provided, however, That, beginning on July 1, 1972, the State shall bear the employer's share of the costs of such programs.

LAND STABILIZATION, CONSERVATION, AND EROSION CONTROL

SEC. 417. No agreements shall be entered into under section 203 of the Appalachian Regional Development Act of 1965, as amended (79 Stat. 12), after December 31, 1971.

OUTSTANDING OBLIGATIONS

SEC. 418. (a) The Secretary of Agriculture is authorized to administer and carry out any commitments, contracts, agreements, and other obligations made or entered into under programs or activities terminated by sections 410 through 417 and for which funds have been obligaed, on or before the date specified for such termination: Provided, however, That in no event shall payments to State for extension work in fiscal year 1972 exceed 50 per centum of the appropriaitions for such purposes.

(b) There are hereby authorized to be appropriated without fiscal year limitation such sums as may be necessary for the purposes of this part for each fiscal year.

(c) Except for appropriations made pursuant to subsection (b), any funds appropriated for any program or activity terminated by sections 410 through 417 which would be used to finance operations which would be carried out if such program or activity had not been terminated, and which remain unobligated on the date specified for such termination shall be transferred and merged with the funds authorized under the authority of section 201.

DEPARTMENT OF AGRICULTURE,

OFFICE OF THE SECRETARY, Washington, D.C. April 6, 1971.

HON. SPIRO T. AGNEW,
President of the Senate,
Washington, D.C.

DEAR MR. PRESIDENT: I am transmitting herewith a draft bill to carry out the President's recommendations for a rural community development special revenue sharing program as set forth in his message to the Congress of March 10, 1971.

The President's proposal is designed to give citizens of States and local communities more effective tools and greater financial resources for dealing with rural development problems than in the past. The needs, problems, conditions, and opportunities for promoting economic and social development of rural areas are matters that are of special concern to, and within the particular competence of, those who live in the communities affected. State and local officials, and citizens in the communities involved, are often better able to match resources to problems than are government employees in Washington.

The President's proposal contemplates that in the first year of operation, special revenue sharing funds for rural development would be available in an amout equivalent to $1,100 million on a full-year basis. As the President stated, in his message of March 10, 1971:

"More money, plus more freedom to spend it, plus better planning in doing so, add up to better living for rural Americans and brighter futures for rural communities. Mutual benefits of the urban-rural partnership would be manifest as cities enjoyed the fruits of a healthy agricultural economy and the relief of more evenly distributed population growth, while rural areas felt the effect of new social and economic advantages. Rural and urban communities would no longer siphon off one another's strengths and resources nor shunt problems and burdens from one to the other. They would progress together in a dynamic balance, as partners in the best sense."

I urge that early and favorable consideration be given by the Congress to enactment of the "Rural Community Development Revenue Sharing Act of 1971."

The Office of Mangement and Budget advises that enactment of this bill would be in accord with the program of the President. Sincerely,

63-582-71-pt. 1—2

CLIFFORD M. HARDIN,
Secretary.

RURAL COMMUNITY DEVELOPMENT REVENUE SHARING ACT OF

1971

SECTION-BY-SECTION SUMMARY

SECTION 2-STATEMENT OF FINDINGS AND PURPOSE

Section 2 provides that Congress finds and declares that in order to provide more effective assistance to rural areas of the Nation for the purposes of stemming outmigration, stimulating and aiding economic development and the creation of job opportunities, providing more and better public works and community development facilities, and assisting in the solution of farm, home, and other community problems, it is necessary to establish a program by which States may share in national revenues; and that in order to implement an effective nationwide rural community development policy and to reallocate development resources, it is necessary to terminate and modify certain Federal development programs.

TITLE I-DEFINITIONS

SECTION 101-DEFINITIONS

Section 101 provides that the definitions continued in the following subsections are applicable for the purposes of this Act.

Subsection (a) provides that the term "rural area" means any county, parish or similiar political subdivision which either has a population density of less than 100 person per square mile or is not included within a Standard Metropolitan Statistical Area.

Subsection (b) provides that the term "rural population" means the total resident population of a rural area.

Subsection (c) provides that the term "rural development" means any program or activity of a State which directly benefits the residents of a rural area within such State, and that the term "rural community development programs and activities," includes, but is not limited to, the promotion, establishment, assistance, improvement, and encouragement of a great number of programs and activities related to rural development.

Subsection (d) provides that the term "rural per capita income" means the average personal income of the rural population of a State.

Subsection (e) provides that the term "fiscal year" means the fiscal year of the United States.

Subsection (f) provides that the word "Secretary" means the Secretary of Agriculture.

Subsection (g) provides that the word "State" means the several States, Puerto Rico, the Virgin Islands, and Guam.

Subsection (h) provides that the word "Governor" means the chief executive officer of each State.

Subsection (i) provides that the term "Attorney General" means the Attorney General of the United States.

Subsection (j) provides that the term "Standard Metropolitan Statistical Area" means such term as defined by the Office of Management and Budget. Subsection (k) provides that the term "personal income" means such term as defined by the Office of Business Economics of the Department of Commerce, or, as appropriately modified or changed by the Secretary.

Subsection (1) provides that the term "local government" means a municipality, county, or township as defined and used by the United States Bureau of the Census, but does not include school districts or special districts.

Subsection (m) provides that the term "State development plan" means a plan for the expenditure of funds through which a State is entitled under subsections (a) through (c) of section 202.

Subsection (n) provides that the term "State development planning system" includes a State development planning advisory commission, comprised of the Governor and one representative from each government planning board of each multi-jurisdictional planning district within the State, which shall advise the Governor with respect to the formulation of the State development plan. Such planning boards shall be comprised of elected officials from local governments affected and shall have such duties as the Governor may determine. Such multijurisdictional planning districts shall encompass the entire geographic area of the State.