§ 3143. Economic Development Revolving Fund.

Funds obtained by the Secretary under section 3141 of this title, loan funds obtained under section 3171 of this title, and collections and repayments received under this chapter, shall be deposited in an economic development revolving fund (hereinafter referred to as the "fund"), which is hereby established in the Treasury of the United States, and which shall be available to the Secretary for the purpose of extending financial assistance under sections 3141, 3142, and 3171 of this title, and for the payment of all obligations and expenditures arising in connection therewith. There shall also be credited to the fund such funds as have been paid into the area redevelopment fund or may be received from obligations outstanding under the Area Redevelopment Act. The fund shall pay into miscellaneous receipts of the Treasury, following the close of each fiscal year, interest on the amount of loans outstanding under this chapter computed in such manner and at such rate as may be determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, adjusted to the nearest one-eighth of 1 per centum, during the month of June preceding the fiscal year in which the loans were made. (Pub. L. 89-136, title II, § 203, Aug. 26, 1965, 79 Stat. 558.)

REFERENCES IN TEXT

The Area Redevelopment Act, referred to in text, was formerly set out as chapter 28 of this title and is now covered by this chapter.

SUBCHAPTER III.-TECHNICAL ASSISTANCE, RESEARCH, AND INFORMATION

§ 3151. Technical assistance.

(a) Use of Secretary's staff members; contracts; grants; repayment.

In carrying out his duties under this chapter the Secretary is authorized to provide technical assistance which would be useful in alleviating or preventing conditions of excessive unemployment or underemployment (1) to areas which he has designated as redevelopment areas under this chapter, and (2) to other areas which he finds have substantial need for such assistance. Such assistance shall include project planning and feasibility studies, management and operational assistance, and studies evaluating the needs of, and developing potentialities for, economic growth of such areas. Such assistance may be provided by the Secretary through members of his staff, through the payment of funds authorized for this section to other departments or agencies of the Federal Government, through the employment of private individuals, partnerships, firms, corporations, or suitable institutions, under contracts entered into for such purposes, or through grants-in-aid to appropriate public or private nonprofit State, area, district, or local organizations. The Secretary, in his discretion, may require the

repayment of assistance provided under this subsection and prescribe the terms and conditions of such repayment.

(b) Grants covering administrative expenses; use of funds in conjunction with other grants.

The Secretary is authorized to make grants to defray not to exceed 75 per centum of the administrative expenses of organizations which he determines to be qualified to receive grants-in-aid under subsection (a) hereof. In determining the amount of the non-Federal share of such costs or expenses, the Secretary shall give due consideration to all contributions both in cash and in kind, fairly evaluated, including but not limited to space, equipment, and services. Where practicable, grants-in-aid authorized under this subsection shall be used in conjunction with other available planning grants, such as urban planning grants authorized under the Housing Act of 1954, as amended, and highway planning and research grants authorized under the Federal Aid Highway Act of 1962, to assure adequate and effective planning and economical use of funds. (c) Research in causes of chronic depression; availability of resulting data; annual report.

To assist in the long-range accomplishment of the purposes of this chapter, the Secretary, in cooperation with other agencies having similar functions, shall establish and conduct a continuing program of study, training, and research to (A) assist in determining the causes of unemployment, underemployment, underdevelopment, and chronic depression in the various areas and regions of the Nation, (B) assist in the formulation and implementation of national, State, and local programs which will raise income levels and otherwise produce solutions to the problems resulting from these conditions, and (C) assist in providing the personnel needed to conduct such programs. The program of study, training, and research may be conducted by the Secretary through members of this staff, through payment of funds authorized for this section to other departments or agencies of the Federal Government, or through the employment of private individuals, partnerships, firms, corporations, or suitable institutions, under contracts entered into for such purposes, or through grants to such individuals, organizations, or institutions, or through conferences and similar meetings organized for such purposes. The Secretary shall make available to interested individuals and organizations the results of such research. The Secretary shall include in his annual report under section 3217 of this title a detailed statement concerning the study and research conducted under this section together with his findings resulting therefrom and his recommendations for legislative and other action. (d) Availability of technical information in redevelopment areas; Federal procurement in redevelopment areas.

The Secretary shall aid redevelopment areas and other areas by furnishing to interested individuals, communities, industries, and enterprises within such areas any assistance, technical information, market

research, or other forms of assistance, information, or advice which would be useful in alleviating or preventing conditions of excessive unemployment or underemployment within such areas. The Secretary may furnish the procurement divisions of the various departments, agencies, and other instrumentalities of the Federal Government with a list containing the names and addresses of business firms which are located in redevelopment areas and which are desirous of obtaining Government contracts for the furnishing of supplies or services, and designating the supplies and services such firms are engaged in providing.

(e) Omitted.

(f) Grants and contracts for demonstration projects within regional development areas; purposes.

The Secretary is authorized to make grants, enter into contracts or otherwise provide funds for any demonstration project within a redevelopment area or areas which he determines is designed to foster regional productivity and growth, prevent outmigration, and otherwise carry out the purposes of this chapter. (Pub. L. 89-136, title III, § 301, Aug. 26, 1965, 79 Stat. 558; Pub. L. 91-123, title III, § 302, Nov. 25, 1969, 83 Stat. 219.)

REFERENCES IN TEXT

The urban planning grants authorized under the Housing Act of 1954, referred to in subsec. (b), are provided for in sections 460-462 of Title 40, Public Buildings, Property, and Works. For classification of the Housing Act of 1954 generally, see tables volume.

Highway planning and research grants, authorized under the Federal Aid Highway Act of 1962, referred to in subsec. (b), are provided for in section 307 of Title 23, Highways. For classification of the Federal Aid Highway Act of 1962 generally, see tables volume.

CODIFICATION

Subsec. (e) made provision for an independent study board consisting of governmental and non-governmental experts to investigate the effects of governmental procurement, scientific, technical, and other related policies upon regional economic development. Such board was directed to complete its study and submit its report and recommendations for better coordination of such policies not later than Aug. 26, 1967.

AMENDMENTS

1969-Subsec. (f). Pub. L. 91-123 added subsec. (f). SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3211 of this title.

§ 3152. Authorization of appropriations.

There is hereby authorized to be appropriated $25,000,000 annually for the purposes of this subchapter, for the fiscal year ending June 30, 1966, and for each fiscal year thereafter through the fiscal year ending June 30, 1969, and $50,000,000 per fiscal year for the fiscal years ending June 30, 1970, and June 30, 1971. (Pub. L. 89-136, title III, § 302, Aug. 26, 1965, 79 Stat. 560; Pub. L. 91-123, title III, § 303, Nov. 25, 1969, 83 Stat. 219; Pub. L. 91-304, § 1(c), July 6, 1970, 84 Stat. 375.)

AMENDMENTS

1970-Pub. L. 91-304 authorized appropriation of $50,000,000 for the fiscal year ending June 30, 1971. 1969-Pub. L. 91-123 increased authorized appropriation from $25,000,000 to $50,000,000 for the fiscal year ending June 30, 1970.

SUBCHAPTER IV.-AREA AND DISTRICT

ELIGIBILITY

PART A.-REDEVELOPMENT AREAS

§ 3161. Area eligibility.

(a) Criteria for determining eligible areas; unemployment; median family income; Indian lands: loss of major source of employment.

The Secretary shall designate as "redevelopment areas"

(1) those areas in which he determines, upon the basis of standards generally comparable with those set forth in paragraphs (A) and (B), that there has existed substantial and persistent unemployment for an extended period of time and those areas in which he determines there has been a substantial loss of population due to lack of employment opportunity. There shall be included among the areas so designated any area—

(A) where the Secretary of Labor finds that the current rate of unemployment, as determined by appropriate annual statistics for the most recent available calendar year, is 6 per centum or more and has averaged at least 6 per centum for the qualifying time periods specified in paragraph (B); and

(B) where the Secretary of Labor finds that the annual average rate of unemployment has been at least

(i) 50 per centum above the national average for three of the preceding four calendar years, or

(ii) 75 per centum above the national average for two of the preceding three calendar years, or

(iii) 100 per centum above the national average for one of the preceding two calendar

years.

The Secretary of Labor shall find the facts and provide the data to be used by the Secretary in making the determinations required by this subsection;

(2) those additional areas which have a median family income not in excess of 40 per centum of the national median, as determined by the most recent available statistics for such areas;

(3) those additional Federal or State Indian reservations or trust or restricted Indian-owned land areas which the Secretary, after consultation with the Secretary of the Interior or an appropriate State agency, determines manifest the greatest degree of economic distress on the basis of unemployment and income statistics and other appropriate evidence of economic underdevelopment;

(4) upon request of such areas, those additional areas in which the Secretary determines that the loss, removal, curtailment, or closing of a major source of employment has caused within three years prior to, or threatens to cause within three years after, the date of the request an unusual and abrupt rise in unemployment of such magnitude that the unemployment rate for the area at the time of the request exceeds the national aver

age, or can reasonably be expected to exceed the national average, by 50 per centum or more unless assistance is provided. Notwithstanding any provision of subsection (b) of this section to the contrary, an area designated under the authority of this paragraph may be given a reasonable time after designation in which to submit the overall economic development program required by section 3142(b) (10) of this title;

(5) notwithstanding any provision of this section to the contrary, those additional areas which were designated redevelopment areas under the Area Redevelopment Act on or after March 1, 1965: Provided, however, That the continued eligibility of such areas after the first annual review of eligibility conducted in accordance with section 3162 of this title shall be dependent on their qualification for designation under the standards of economic need set forth in subsections (a) (1) through (a) (4) of this section;

(6) those areas selected for assistance under part D of title I of the Economic Opportunity Act of 1964, and those areas which the Secretary determines meet the purposes of section 150 of part D of title I of the Economic Opportunity Act of 1964, and which otherwise meet the requirements of this chapter, except that no redevelopment area established under this paragraph shall be eligible to meet the requirement of section 3171(a) (1) (B) of this title.

(b) Size and boundaries of redevelopment areas. The size and boundaries of redevelopment areas shall be as determined by the Secretary: Provided, however, That

(1) no area shall be designated until it has an approved overall economic development program in accordance with section 3142(b) (10) of this title;

(2) any area which does not submit an acceptable overall economic development program in accordance with section 3142(b) (10) of this title within a reasonable time after notification of eligibility for designation, shall not thereafter be designated prior to the next annual review of eligibility in accordance with section 3162 of this title;

(3) no area shall be designated which does not have a population of at least one thousand five hundred persons, except that this limitation shall not apply to any area designated under subsection (a) (3) or (a) (6) of this section; and

(4) except for areas designated under subsections (a) (3), (a) (4) and (a) (6) hereof, no area shall be designated which is smaller than a "labor area" (as defined by the Secretary of Labor), a county, or a municipality with a population of over two hundred and fifty thousand, whichever in the opinion of the Secretary is appropriate.

(c) Use of data compiled by other Secretaries in making determination of redevelopment areas. Upon the request of the Secretary, the Secretary of Labor, the Secretary of Agriculture, the Secretary of the Interior, and such other heads of agencies as may be appropriate are authorized to conduct

such special studies, obtain such information, and compile and furnish to the Secretary such data as the Secretary may deem necessary or proper to enable him to make the determinations provided for in this section. The Secretary shall reimburse when appropriate, out of any funds appropriated to carry out the purposes of this chapter, the foregoing officers for any expenditures incurred by them under this section.

(d) Designation of areas most nearly qualifying as redevelopment areas in event of failure of any area in State to qualify under preceding subsections.

If a State has no area designated under the preceding subsections of this section as a redevelopment area, the Secretary shall designate as a redevelopment area that area in such State which in his opinion most nearly qualifies under such preceding subsections. An area so designated shall have its eligibility terminated in accordance with the provisions of section 3162 of this title if any other area within the same State subsequently has become qualified or been designated under any other subsection of this section other than subsection (a) (6) as of the time of the annual review prescribed by section 3162 of this title: Provided, That the Secretary shall not terminate any designation of an area in a State as a redevelopment area if to do so would result in such State having no redevelopment area. (e) Definitions.

As used in this chapter, the term "redevelopment area" refers to any area within the United States which has been designated by the Secretary as a redevelopment area. (Pub. L. 89-136, title IV, § 401, Aug. 26, 1965, 79 Stat. 560; Pub. L. 89-794, title XI, § 1102, Nov. 8, 1966, 80 Stat. 1477; Pub. L. 91-123, title III, § 304, Nov. 25, 1969, 83 Stat. 219.)

REFERENCES IN TEXT

The Area Redevelopment Act, referred to in subsec. (a) (5), was Pub. L. 87-27, May 1, 1961, 75 Stat. 47, formerly classified to chapter 28 of this title, and was omitted from the Code as executed. The provisions are now covered by this chapter.

Part D of title I of the Economic Opportunity Act of 1964, referred to in subsec. (a) (6), is classified to section 2763 et seq. of this title.

Section 150 of part D of title I of the Economic Opportunity Act of 1964, referred to in subsec. (a) (6), is classifiled to section 2763 of this title.

AMENDMENTS

1969 Subsec. (a). Pub. L. 91-123, § 304 (a), added par. (6).

Subsec. (b) (3). Pub. L. 91-123, § 304 (b), inserted a reference to subsec. (a) (6) of this section.

Subsec. (b) (4). Pub. L. 91-123, § 304 (c), inserted a reference to subsec. (a) (6) of this section.

Subsec. (d). Pub. L. 91-123, § 304 (d), provided for the termination of eligibility in accordance with the provisions of section 3162 of this title of any designated area if any other area within the same state becomes qualified or designated under any subsection of this section other than subsec. (a) (6).

1966 Subsec. (b) (3). Pub. L. 89-794 substituted "except that this limitation shall not apply to any area designated under subsection (a) (3) of this section; and" for "except for areas designated under subsection (a) (3) of this section, which shall have a population of not less than one thousand persons; and".

Ex. ORD. No. 11307. COORDINATION OF FEDERAL PROGRAMS AFFECTING AGRICULTURAL AND RURAL AREA DEVELOPMENT Ex. Ord. No. 11307, Sept. 30, 1966, 31 F.R. 12917, provided:

WHEREAS the development of our Nation's agricultural and rural areas has undergone radical changes due to technological advancements and the increasing urbanization of the Nation's society and economy; and

WHEREAS the living standards and welfare of the rural area population depend upon a successful accommodation to these changes; and

WHEREAS Congress has vested responsibilities in the Secretary of Agriculture for the administration of numerous programs aimed at the achievement of sound agricultural and rural development; and

WHEREAS such programs are closely interrelated with important programs and activities administered by other Federal departments and agencies, which affect agricultural and rural area development; and

WHEREAS the President has directed the Secretary of Agriculture to put the facilities of Department of Agriculture field offices at the disposal of all Federal agencies to assist them in making their programs effective in rural areas, and jointly with the Director of the Bureau of the Budget to review with the head of each department or agency the administrative obstacles which may stand in the way of equitable distribution in rural areas of the benefits of their programs and to propose administrative or legislative steps which can be taken to assure that equity is attained to assure full participation by rural areas; and

WHEREAS the highest level of coordination is required between the Department of Agriculture and such other Federal departments and agencies in order to achieve the maximum beneficial impact on agricultural and rural area development:

NOW, THEREFORE, by virtue of the authority vested in me as President of the United States, it is ordered as follows:

SECTION 1. Responsibility of the Secretary. (a) The Secretary of Agriculture shall take the initiative in identifying problems of agricultural and rural area development which require the cooperation of various Federal departments and agencies for their effective solution, and pursuant thereto shall convene, or authorize his representatives to convene, meetings at appropriate times and places, to which he shall invite the heads of such departments and agencies as may be responsible for interrelated programs or activities, or representatives designated by them, for the following purposes:

(1) To provide a forum for consideration of mutual problems concerning Federal programs and activities affecting agricultural and rural area development and for the exchange of information needed to achieve coordination of, and to avoid dupliction in, such programs and activities.

(2) To promote cooperation among Federal departments and agencies in achieving consistent policies, practices, and procedures for administration of their programs affecting agricultural and rural area development.

(3) To consult with and obtain the advice of appropriate Federal departments and agencies with respect to: (A) intergovernmental relations and cooperation in promoting sound agricultural and rural area development;

(B) provision of information and technical assistance to State and local governments in solving agricultural and rural area development problems; and

(C) encouragement of comprehensive planning of, and effective regional, State, and local cooperation in agricultural and rural area development activities.

(4) To identify agricultural and rural area development problems of particular States, regions, or localities which require interagency or intergovernmental coordination.

(b) The Secretary shall make arrangements with such Federal departments and agencies for such working groups as they shall agree may be desirable to consider special problems arising with respect to matters described in subsection (a) of this section.

SEC. 2. Agency responsibilities. The heads of Federal departments and agencies having programs which have an impact on agricultural or rural area development shall to the extent permitted by law and funds available, furnish information, at the request of the Secretary, pertaining to programs within the responsibilities of such departments or agencies, and such additional information as will assist the Secretary in developing solutions to agricultural and rural area development problems.

SEC. 3. Construction. Nothing in this Order shall be construed as subjecting any function vested by law in, or assigned pursuant to law to, any Federal department or agency or head thereof to the authority of any other agency or officer or as abrogating or restricting any such function in any manner.

SEC. 4. Administrative arrangements. (a) Each executive department and agency participating under section 1 or section 2 shall furnish necessary assistance for effectuating the provisions of this Order as authorized by section 214 of the Act of May 3, 1945, 59 Stat. 134 (31 U.S.C. 691).

(b) The Department of Agriculture shall provide necessary administrative services pursuant to this Order. SEC. 5. Executive Order 11122 of October 16, 1963, establishing the Rural Development Committee, is hereby superseded.

LYNDON B. JOHNSON.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 3162, 3171, 3225 of this title.

§ 3162. Annual review of area eligibility; termination of eligibility; notification of change of classification.

The Secretary shall conduct an annual review of all areas designated in accordance with section 3161 of this title, and on the basis thereof shall terminate or modify the designations of such areas in accordance with objective standards which he shall prescribe by regulation. No area previously designated shall retain its designated status unless it maintains a currently approved overall economic development program in accordance with section 3142 (b) (10) of this title. No termination of eligibility shall (1) be made without thirty days' prior notification to the area concerned, (2) affect the validity of any application filed, or contract or undertaking entered into, with respect to such area pursuant to this chapter prior to such termination, (3) prevent any such area from again being designated a redevelopment area under section 3161 of this title if the Secretary determines it to be eligible under such section, or (4) be made in the case of any designated area where the Secretary determines that an improvement in the unemployment rate of a designated area is primarily the result of increased employment in occupations not likely to be permanent. The Secretary shall keep the departments and agencies of the Federal Government, and interested State or local agencies, advised at all times of any changes made hereunder with respect to the classification of any area. (Pub. L. 89-136, title IV, § 402, Aug. 26, 1965, 79 Stat. 561.)

TERMINATION OR MODIFICATION OF DESIGNATION AS REDEVELOPMENT AREA AFTER MAY 1, 1970 AND BEFORE JUNE 1,

1971

Pub. L. 91-304, § 2, July 6, 1970, 84 Stat. 375, provided that: "Notwithstanding section 402 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3162) [this section], no area designated as a redevelopment area for the purposes of such Act [see Short Title note set out under section 3121 of this title] shall have such designation terminated or modified in accordance with

such section after May 1, 1970, and before June 1, 1971, unless the local governing body of the county qualified under existing criteria for de-designation specifically requests de-designation action."

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3132, 3161 of this title.

PART B.-ECONOMIC DEVELOPMENT DISTRICTS §3171. District eligibility.

(a) Authority to designate economic development districts; criteria; economic development centers; increases of grants.

In order that economic development projects of broader geographical significance may be planned and carried out, the Secretary is authorized—

(1) to designate appropriate "economic development districts" within the United States with the concurrence of the States in which such districts will be wholly or partially located, if—

(A) the proposed district is of sufficient size or population, and contains sufficient resources, to foster economic development on a scale involving more than a single redevelopment area; (B) the proposed district contains two or more redevelopment areas;

(C) the proposed district contains one or more redevelopment areas or economic development centers identified in an approved district overall economic development program as having sufficient size and potential to foster the economic growth activities necessary to alleviate the distress of the redevelopment areas within the district; and

(D) the proposed district has a district overall economic development program which includes adequate land use and transportation planning and contains a specific program for district cooperation, self-help, and public investment and is approved by the State or States affected and by the Secretary;

(2) to designate as "economic development centers," in accordance with such regulations as he shall prescribe, such areas as he may deem appropriate, if—

(A) the proposed center has been identified and included in an approved district overall economic development program and recommended by the State or States affected for such special designation;

(B) the proposed center is geographically and economically so related to the district that its economic growth may reasonably be expected to contribute significantly to the alleviation of distress in the redevelopment areas of the district; and

(C) the proposed center does not have a population in excess of two hundred and fifty thousand according to the last preceding Federal census.

(3) to provide financial assistance in accordance with the criteria of sections 3131, 3141, and 3142 of this title, except as may be herein otherwise provided, for projects in economic development centers designated under subsection (a) (2) above, if

(A) the project will further the objectives of the overall economic development program of the district in which it is to be located;

(B) the project will enhance the economic growth potential of the district or result in additional long-term employment opportunities commensurate with the amount of Federal financial assistance requested; and

(C) the amount of Federal financial assistance requested is reasonably related to the size, population, and economic needs of the district;

(4) subject to the 20 per centum non-Federal share required for any project by section 3131(c) of this title, to increase the amount of grant assistance authorized by section 3131 of this title for projects within redevelopment areas (designated under section 3161 of this title), by an amount not to exceed 10 per centum of the aggregate cost of any such project, in accordance with such regulations as he shall prescribe if—

(A) the redevelopment area is situated within a designated economic development district and is actively participating in the economic development activities of the district; and

(B) the project is consistent with an approved district overall economic development program.

(b) State proposals; state and local participation.

In designating economic development districts and approving district overall economic development programs under subsection (a) of this section, the Secretary is authorized, under regulations prescribed by him—

(1) to invite the several States to draw up proposed district boundaries and to identify potential economic development centers;

(2) to cooperate with the several States

(A) in sponsoring and assisting district economic planning and development groups, and (B) in assisting such district groups to formulate district overall economic development programs;

(3) to encourage participation by appropriate local governmental authorities in such economic development districts.

(c) Termination and modification of districts and centers.

The Secretary shall by regulation prescribe standards for the termination or modification of economic development districts and economic development centers designated under the authority of this section.

(d) Definition of economic development district.

As used in this chapter, the term "economic development district" refers to any area within the United States composed of cooperating redevelopment areas and, where appropriate, designated economic development centers and neighboring counties or communities, which has been designated by the Secretary as an economic development district. (e) Definition of economic development center.

As used in this chapter, the term "economic development center" refers to any area within the United