Jackson County (W. Va.) Improvement Association_. National Association of Manufacturers_ National Coal Policy Conference, Inc.. National Independent Coal Operators Association. West Virginia, State of__ COMMUNICATIONS McCarthy, Senator Eugene J.: Letter, dated January 22, 1965, to Senator 104 Moody, Joseph E., president, National Coal Policy Conference, Inc.: 193 Nelson, Hon. Gaylord: Letter, dated January 20, 1965, to Senator Ran- 174 Radin, Alex, general manager, American Public Power Association: 192 Randolph, Senator Jennings; Letter, dated January 15, 1965, to Hon. Rhodes, Hon. James A., Governor of Ohio: Telegram, dated January 21, Robinson, Charles A., staff engineer and staff counsel, National Rural Electric Cooperative Association: Letter, dated January 21, 1965, to Tawes, J. Millard, Governor of Maryland: Letter, dated January 22 1965, Weller, J. Rev. Jack, Whitesville, W. Va., chairman, Presbyterian Appa- 70 169 194 APPALACHIAN REGIONAL DEVELOPMENT ACT OF 1965 TUESDAY, JANUARY 19, 1965 U.S. SENATE, COMMITTEE ON PUBLIC WORKS, Washington, D.C. The committee met at 10 a.m., pursuant to call, in room 4200, Senate Office Building, Senator Jennings Randolph presiding. Present: Senators Randolph, Montoya, Cooper, and Fong. Also present: Ron M. Linton, chief clerk and staff director; Richard E. Gerrish, assistant chief clerk; and Richard B. Royce, professional staff member. Senator RANDOLPH. Good morning, ladies and gentlemen. In order to eliminate any misconceptions regarding these hearings, I draw your attention to the fact that the hearings are conducted by the full Čommittee on Public Works, not a subcommittee, as has occasionally been reported. Senator Pat McNamara, of Michigan, the distinguished chairman of the committee, has requested me, as the ranking member of the majority on the committee, to conduct the hearings on S. 3. This was the procedure last year and is being continued this year, so, for the record, we desire you to know that a subcommittee is not hearing this legislation, but the Committee on Public Works this year, as last year, is in the process of considering this legislation. At the outset, it is our desire to have the record reflect that the very able member of this committee, Senator Caleb Boggs, of Delaware, has written a letter indicating that he would be present, except that he is in his own State today attending the inaugural ceremonies of the Governor of Delaware. At this point I might also mention that yesterday I attended the inaugural ceremonies of the Governor of West Virginia, and we had one of the heaviest snowstorms that we have had in the Charleston area for many years. Even though travel was most difficult and weather conditions were most adverse, there were many thousands of persons who gathered in an almost blinding snowstorm to attend those important ceremonies. I believe it is significant not that a new Governor comes in, but that people are intensely interested in public affairs. Regardless of conditions, they commit themselves to certain ceremonies which go with the inauguration of the Governors of our respective States. This morning the Public Works Committee opens its hearings on S. 3. This measure has been designated as the Appalachian Regional Development Act of 1965. 1 (S. 3 follows:) [S. 3, 89th Cong., 1st sess.] A BILL To provide public works and economic development programs and the planning and coordination needed to assist in development of the Appalachian region 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 "Appalachian Regional Development Act of 1965". FINDINGS AND STATEMENT OF PURPOSE SEC. 2. The Congress hereby finds and declares that the Appalachian region of the United States, while abundant in natural resources and rich in potential, lags behind the rest of the Nation in its economic growth and that its people have not shared properly in the Nation's prosperity. The region's uneven past development, with its historical reliance on a few basic industries and a marginal agriculture, has failed to provide the economic base that is a vital prerequisite for vigorous, self-sustaining growth. The State and local governments and the people of the region understand their problems and have been working and will continue to work purposefully toward their solution. The Congress recognizes the comprehensive report of the President's Appalachian Regional Commission documenting these findings and concludes that regionwide development is feasible, desirable, and urgently needed. It is, therefore, the purpose of this Act to assist the region in meeting its special problems, to promote its economic development, and to establish & framework for joint Federal and State efforts toward providing the basic facilities essential to its growth and attacking its common problems and meeting its common needs on a coordinated and concerted regional basis. The public investments made in the region under this Act shall be concentrated in areas where there is the greatest potential for future growth, and where the expected return on public dollars invested will be the greatest. The States will be responsible for recommending local and State projects, within their borders, which will receive assistance under this Act. As the region obtains the needed physical and transportation facilities and develops its human resources, the Congress expects that the region will generate a diversified industry, and that the region will then be able to support itself, through the workings of a strengthened free enterprise economy. TITLE I-THE APPALACHIAN REGIONAL COMMISSION MEMBERSHIP AND VOTING SEC. 101. (a) There is hereby established an Appalachian Regional Commission (hereinafter referred to as the "Commission") which shall be composed of one Federal member, hereinafter referred to as the "Federal Cochairman", appointed by the President by and with the advice and consent of the Senate, and one member from each participating State in the Appalachian region. The Federal Cochairman shall be one of the two Cochairmen of the Commission. Each State member may be the Governor, or his designee, or such other person as may be provided by the law of the State which he represents. The State members of the Commission shall elect a Cochairman of the Commission from among their number. (b) Except as provided in section 105, decisions by the Commission shall require the affirmative vote of the Federal Cochairman and of a majority of the State members (exclusive of members representing States delinquent under section 105). In matters coming before the Commission, the Federal Cochairman shall, to the extent practicable, consult with the Federal departments and agencies having on interest in the subject matter. (c) Each State member shall have an alternate, appointed by the Governor or as otherwise may be provided by the law of the State which he represents. The President, by and with the advice and consent of the Senate, shall appoint an alternate for the Federal Cochairman. An alternate shall vote in the event of the absence, death, disability, removal, or resignation of the State or Federal representative for which he is an alternate. (d) The Federal Cochairman shall be compensated by the Federal Government at level IV of the Federal Executive Salary Schedule of the Federal Executive Salary Act of 1964. His alternate shall be compensated by the Federal Government at not to exceed the maximum scheduled rate for grade GS-18 of the Classification Act of 1949, as amended, and when not actively serving as an alternate for the Federal Cochairman shall perform such functions and duties as are delegated to him by the Federal Cochairman. Each State member and his alternate shall be compensated by the State which they represent at the rate established by the law of such State. FUNCTIONS OF THE COMMISSION SEC. 102. In carrying out the purposes of this Act, the Commission shall (1) develop, on a continuing basis, comprehensive and coordinated plans and programs and establish priorities thereunder, giving due consideration to other Federal, State, and local planning in the region; (2) conduct and sponsor investigations, research, and studies, including an inventory and analysis of the resources of the region, and, in cooperation with Federal, State, and local agencies, sponsor demonstration projects designed to foster regional productivity and growth; (3) review and study, in cooperation with the agency involved, Federal, State, and local public and private programs and, where appropriate, recommend modifications or additions which will increase their effectiveness in the region; (4) formulate and recommend, where appropriate, interstate compacts and other forms of interstate cooperation, and work with State and local agencies in developing appropriate model legislation; (5) encourage the formation of local development districts; (6) encourage private investment in industrial, commercial, and recreational projects; (7) serve programs; as a focal point and coordinating unit for Appalachian (8) provide a forum for consideration of problems of the region and proposed solutions and establish and utilize, as appropriate, citizens and special advisory councils and public conferences; and (9) advise the Secretary of Commerce on applications for grants for administrative expenses to local development districts. RECOMMENDATIONS SEC. 103. The Commission may, from time to time, make recommendations to the President and to the State Governors and appropriate local officials with respect to (1) the expenditure of funds by Federal, State, and local departments and agencies in the region in the fields of natural resources, agriculture, education, training, health and welfare, and other fields related to the purposes of this Act; and (2) such additional Federal, State, and local legislation or administrative actions as the Commission deems necessary to further the purposes of this Act. LIAISON BETWEEN FEDERAL GOVERNMENT AND THE COMMISSION SEC. 104. The President shall provide effective and continuing liaison between the Federal Government and the Commission and a coordinated review within the Federal Government of the plans and recommendations submitted by the Commission pursuant to sections 102 and 103. ADMINISTRATIVE EXPENSES OF THE COMMISSION SEC. 105. (a) For the period ending on June 30 of the second full Federal fiscal year following the date of enactment of this Act, the administrative expenses of the Commission shall be paid by the Federal Government. Thereafter, such expenses shall be paid equally by the Federal Government and the States in the region. The share to be paid by each State shall be determined by the Commission. The Federal Cochairman shall not participate or vote in such determination. No assistance authorized by this Act shall be furnished to any State or to any political subdivision or any resident of any State, nor shall the State member of the Commission participate or vote in any determination by the Commission while such State is delinquent in payment of its share of such expenses. (b) Not to exceed $2,200,000 of the funds authorized in section 401 of this Act shall be available to carry out this section. ADMINISTRATIVE POWERS OF COMMISSION SEC. 106. To carry out its duties under this Act, the Commission is authorized to (1) adopt, amend, and repeal bylaws, rules, and regulations governing the conduct of its business and the performance of its functions. (2) appoint and fix the compensation of an executive director and such other personnel as may be necessary to enable the Commission to carry out its functions, except that such compensation shall not exceed the salary of the alternate to the Federal Cochairman on the Commission as provided in section 101. No member, alternate, officer, or employee of the Commission, other than the Federal Cochairman on the Commission and his alternate and Federal employees detailed to the Commission under paragraph (3) shall be deemed a Federal employee for any purpose. (3) request the head of any Federal department or agency (who is hereby so authorized) to detail to temporary duty with the Commission such personnel within his administrative jurisdiction as the Commission may need for carrying out its functions, each such detail to be without loss of seniority, pay, or other employee status. (4) arrange for the services of personnel from any State or local government or any subdivision or agency thereof, or any intergovernmental agency. (5) make arrangements, including contracts, with any participating State government for inclusion in a suitable retirement and employee benefit system of such of its personnel as may not be eligible for, or continue in, another governmental retirement or employee benefit system, or otherwise provide for such coverage of its personnel. The Civil Service Commission of the United States is authorized to contract with the Commission for continued coverage of Commission employees, who at date of Commission employment are Federal employees, in the retirement program and other employee benefit programs of the Federal Government. (6) accept, use, and dispose of gifts or donations of services or property, real, personal, or mixed, tangible or intangible. (7) enter into and perform such contracts, leases, cooperative agreements, or other transactions as may be necessary in carrying out its functions and on such terms as it may deem appropriate, with any department, agency, or instrumentality of the United States or with any State, or any political subdivision, agency, or instrumentality thereof, or with any person, firm, association, or corporation. (8) maintain a temporary office in the District of Columbia and establish a permanent office at such location as it may select and field offices at such other places as it may deem appropriate. (9) take such other actions and incur such other expenses as may be necessary or appropriate. INFORMATION SEC. 107. In order to obtain information needed to carry out its duties, the Commission shall (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 so much of its proceedings and reports thereon as it may deem advisable, a Cochairman of the Commission, or any member of the Commission designated by the Commission for the purpose, being hereby authorized to administer oaths when it is determined by the Commission that testimony shall be taken or evidence received under oath; (2) arrange for the head of any Federal, State, or local department or agency (who is hereby so authorized to the extent not otherwise prohibited by law) to furnish to the Commission such information as may be available to or procurable by such department or agency; and (3) keep accurate and complete records of its doings and transactions which shall be made available for public inspection. PERSONAL FINANCIAL INTERESTS SEC. 108. (a) Except as permitted by subsection (b) hereof, no State member or alternate and no officer or employee of the Commission shall participate personally and substantially as member, alternate, officer, or employee, through decision, approval, disapproval, recommendation, the rendering of advice, in |