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Telegram, May 29, 1964.

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Summary report of the President's Appalachian Regional Commis-
sion....

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United Mine Workers of America, letter, May 21, 1964.

U.S. Dept. of the Interior, letter and enclosed copy of report, "A
Dynamic Program for Economic Development of the Appalachian
Region," excerpt from Congressional Record, May 14, 1964, page
10603

Wakefield, S. A., director, Division of Flood Control and Water Re-
source Development, Department of Natural Resources, Ken-
tucky, statement.

Ward, Henry, Kentucky commissioner of highways, statement...

Water Services, Inc., letter, June 16, 1964, by Clyde A. Farris, Jr..

West Virginia Labor Federation, AFL-CIO, letter, May 22, 1964..

West Virginia Manufacturers Association, letter, May 22, 1964....

West Virginia University, letter, May 21, 1964-

Whisman, John D., assistant for area development to Governor
Breathitt, of Kentucky, etc., statement

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APPALACHIAN REGIONAL DEVELOPMENT ACT OF 1964

TUESDAY, MAY 5, 1964

HOUSE OF REPRESENTATIVES,

AD HOC SUBCOMMITTEE ON
APPALACHIAN REGIONAL DEVELOPMENT
OF THE COMMITTEE ON PUBLIC WORKS,

Washington, D.C.

The ad hoc subcommittee met at 10 a.m., pursuant to notice, in room 1302, Longworth Building, Hon. Charles A. Buckley (chairman of the full committee) presiding.

(H.R. 11065 and H.R. 11066 follows:)

[H.R. 11065, H.R. 11066, 88th Cong., 2d sess.]

A BILL To provide public works and economic development programs and the planning and coordination needed to assist in the 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 1964".

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 and are prepared 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 a 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.

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 appointed by the President, by and with the advice and consent of the Senate, and one member from each State in the Appalachian region as defined in section 502 (hereinafter referred to as the "region"). The Federal member shall be a Cochairman of the Commission. Each State member shall 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) Decisions by the Commission shall require the affirmative vote of the Federal member and of a majority of the State members (exclusive of members rep

resenting States delinquent under section 105). In matters coming before the Commission, the Federal member shall, to the extent practicable, consult with the Federal departments and agencies having an 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 Federal member shall appoint an alternate for himself without regard to the Classification Act of 1949. An alternate shall vote in the event of the absence, death, disability, removal, or resignation of the State or Federal member for which he is an alternate.

(d) The Federal member shall be compensated by the Federal Government at the rate set forth in section 106(a) of the Federal Executive Pay Act of 1956 (5 U.S.C. 2205(a)). 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, and when not actively serving as an alternate for the Federal member shall perform such functions and duties as are delegated to him by the Federal member. Each State member and his alternate shall be compensated by the States which they represent at the rate established by the law of such State.

FUNCTIONS OF THE COMMISSION

SEC. 102. Where relevant to carrying out the purposes of this Act, the Commission shall

(a) 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;

(b) conduct and sponsor investigations, research, and studies, and, in cooperation with Federal, State, and local agencies, sponsor demonstration projects;

(c) 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;

(d) 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;

(e) encourage the formation of local development districts:

(f) encourage private investment in industrial, commercial, recreational, and other appropriate projects;

(g) serve as a focal point and coordinating unit for Appalachian programs; and

(h) provide a forum for consideration of problems of the region and proposed solutions, and establish and utilize, as appropriate, citizens' advisory councils and conferences.

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

(a) 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

(b) 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 establish such procedures and make such ar rangements as he deems necessary to provide effective and continuing liaison between the Federal Government and the Commission, and to obtain a coordinated review within the Federal Government of the plans and recommendations submitted by the Commission pursuant to sections 102 and 103.

EXPENSES OF COMMISSION

SEC. 105. For the period ending on June 30 of the second full Federal fiscal year following the date of enactment of this Act, the 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 in accordance with such formula as it shall deem equitable. No assistance authorized by this Act shall be furnished to any State or to any political subdivision or any resident of any State while such State is delinquent in payment of its share of such expenses.

ADMINISTRATIVE POWERS OF COMMISSION

SEC. 106. To carry out its duties under this Act, the Commission is authorized to (a) adopt, amend, and repeal bylaws, rules, and regulations governing the conduct of its business and the performance of its functions;

(b) 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: Provided, That such compensation shall not exceed the salary of the Federal member of the Commission as provided in section 101: And provided further, That no member, alternate, officer, or employee of the Commission, other than the Federal member of the Commission and his alternate and Federal employees detailed to the Commission under subsection (c), shall be deemed a Federal employee for any purpose;

(c) request the head of any Federal department or agency (who is hereby so authorized) to detail to temporary duty with the Commission, on a reimbursable or, where appropriate, nonreimbursable basis, 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;

(d) arrange for the services of personnel from any State or local government or any subdivision or agency thereof, or any intergovernmental agency; (e) 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;

(f) accept, use, and dispose of gifts or donations of services or property, real, personal, or mixed, tangible or intangible;

(g) 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;

(h) maintain a temporary office in the District of Columbia and establish a permanent office at such location in the region as it may select and field offices at such other places as it may deem appropriate; and

(i) 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

(a) 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:

(b) arrange for the head of any Federal department or agency (who is hereby so authorized, to the extent not otherwise prohibited by law) to furnish to the Commission, on a reimbursable or, where appropriate, nonreimbursable basis, such information as may be available to or procurable by such department or agency; and

(c) keep accurate and complete records of its doings and transactions, which shall, to the extent not prohibited by law, be made available for public inspection during ordinary office hours.

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, investigation, or otherwise, in any proceeding, application, request for a ruling or other determination, contract, claim, controversy, or other particular matter in which, to his knowledge, he, his spouse, minor child, partner, organization (other than a State or political subdivision thereof) in which he is serving as officer, director, trustee, partner, or employee, or any person or organization with whom he is negotiating or has any arrangement concerning prospective employment, has a financial interest. Any person who shall violate the provisions of this subsection shall be fined not more than $10,000, or imprisoned not more than two years, or both.

(b) Subsection (a) hereof shall not apply if the State member, alternate. officer, or employee first advises the Commission of the nature and circumstances of the proceeding, application, request for a ruling or other determination, contract, claim, controversy, or other particular matter and makes full disclosure of the financial interest and receives in advance a written determination made by the Commission that the interest is not so substantial as to be deemed likely to affect the integrity of the services which the Commission may expect from such State member, alternate, officer, or employee.

(c) No State member or alternate and no officer or employee of the Commission, including any person serving it pursuant to section 106(d), shall receive any salary, or any contribution to or supplementation of salary, as compensation for his services to the Commission, from any source other than his State, in the case of a member or alternate, or the Commission or a source referred to in section 106(d), in the case of an officer or employee. Any person who shall violate the provisions of this subsection shall be fined not more than $5,000, or imprisoned not more than one year, or both.

(d) Notwithstanding any of the preceding provisions of this section, the Federal member and alternate of the Commission and any Federal officers or employees detailed to duty with it pursuant to section 106 (c) shall not be subject to such provisions but shall remain subject to the provisions of sections 202 through 209 of title 18, United States Code.

(e) The Commission may, in its discretion, declare void and rescind any contract, loan, or grant in relation to which it finds that there has been a violation of subsection (a) or (c) of this section, or of any of the provisions of sections 202 through 209 of title 18, United States Code.

TITLE II-SPECIAL APPALACHIAN PROGRAMS

PART A-NEW PROGRAMS

DEVELOPMENT HIGHWAYS AND ACCESS ROADS

SEC. 201. (a) The Secretary of Commerce (hereafter in this section referred to as the "Secretary") is authorized to assist in the construction in the region of development highways (not to exceed a total of two thousand three hundred and fifty miles in length) that, in conjunction with the interstate and other Federal-aid highways in the region will provide a system which will open up an area or areas with a developmental potential where commerce and communication have been inhibited by lack of adequate access. Teh Secretary is also authorized to assist in the construction in the region of local access roads (not to exceed a total of five hundred miles in length) that will serve specific recreational, residential, industrial, or other like facilities or will facilitate a school consolidation program. Assistance under this section shall be provided within the amount appropriated therefor, and otherwise in accordance with those provisions of title 23, United States Code, that are applicable to Federal-aid primary highways and are not inconsistent with the purposes of this Act or the provisions of this section.

(b) As soon as feasible, the Commission shall submit to the Secretary its recommendations with respect to (1) the general corridor location and termini of the development highways, (2) the designation of local access roads to be constructed, (3) priorities for construction of the local access roads and of the major segments of the development highways, and (4) other criteria for the

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