Section 111.-Conforming amendment: Amends section 405 of the act to conform to the amendment in section 201 continuing the Appalachian highway program beyond July 1, 1971.

SECTION-BY-SECTION ANALYSIS OF TITLE II, AMENDMENTS TO TITLE V OF THE PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF 1965, OF PUBLIC LAW 91-123

Section 201.-Short title: Cites title II as the Regional Action Planning Commission Amendments of 1969.

Section 202.-Regional boundaries: Amends section 501 of Public Works and Economic Development Act of 1965 (hereinafter referred to in this title as "the Act") to provide that the Secretary of Commerce, upon request of the Public Works Committee of either the House of Representatives or the Senate, shall study the advisability of changing the geographical area of any economic development region designated under such section.

Section 203.-Regional, technical, and planning assistance, and administrative expenses of commissions: Amends section 505 of the Act as follows:

First. Expands the authority for technical and planning assistance under section 505 of the act to permit broader use of funds for planning, studies, investigations, training programs and demonstration projects as follows:

(a) The Secretary has separate authority under subsection 505(a) (1) to assist the commissions by undertaking planning, investigations, studies, training programs and demonstration projects which would be useful in aiding the commissions to carry out their functions. Such assistance may be provided through members of his staff or through public agencies, private individuals, institutions or firms, or through grants-in-aid to the commissions.

(b) Commissions are given independent authority in subsection 505 (a) (2) to engage in activities which will further the purposes of the Act, after they are approved by the Secretary of Commerce. These activities are to be carried out through the Federal departments or agencies or by contract with private individuals or institutions, or through grants-in-aid to State or local Government agencies. Demonstration projects and training programs, to the maximum extent possible, are to be carried out through public agencies or institutions.

Second: Confirms that regional action planning commissions' administrative expenses after the first 2 years of operations will be shared 50-50 by the Federal Government and the States, except that the Federal Government will continue to pay the full cost of the administrative expenses of the Federal cochairmen and their staffs.

Third: Subsection 505 (c) limits the total expenditures by the Secretary for assistance under subsection 505 (a) (1) and for administrative expenses of the commissions under subsection 505 (b) to a maximum of 10 percent of the funds appropriated for any fiscal year under subsection 509 (d) of the act.

Section 204.-Headquarters of Federal cochairmen: Amends section 506 of the Act to direct the Federal cochairman of each regional action planning commission to maintain his headquarters office in the District of Columbia.

Section 205.-Supplements to Federal grant-in-aid programs; title V authorization: Amends section 509 of the act as follows:

First: Supplemental funds: (a) Provides additional funds for Federal grant-in-aid programs authorized on or before December 31, 1970, which assist in land acquisition or the construction or equipment of facilities; (b) permits section 509 funds to be used for all or any portion of the basic Federal grant for any project authorized by an eligible grant-in-aid program, where funds are not available under the Federal grant-in-aid Act authorizing such program to meet pressing needs of the region. The responsible Federal official administering the basic grant-in-aid program must certify that the project meets the requirements of that program and could be approved for a Federal contribution under that program if funds were available; (c) continues present authority for supplemental grants under which the total Federal share may be increased to a maximum of 80 percent of the project costs; and (d) the Commission can approve grants for a program under section 509 only if it determines that the level of Federal and State financial assistance for the same type of program in that portion of the State within the region will not be diminished in order to substitute section 509 funds.

Second: Title V authorization-authorizes the appropriation of $255 million to the Secretary to carry out title V for the 2-fiscal-year period ending June 30, 1971. Provides that the Secretary, after deducting funds authorized for his technical assistance activities and for administrative expenses of the commissions under subsections 505 (a) (1) and 505(b), shall apportion the remainder of the sums appropriated for any fiscal year to the regional commissions. Not less than 10 percent, nor more than 25 percent of such remaining amounts shall be allocated to any one regional commission. All available funds must be apportioned to the regional commissions prior to the end of the fiscal year for which appropriated.

Section 206.-Coordination; Alaska; Regional Transportation Systems: Amends title V of the Act by adding at the end three new sections as follows:

First Section 511 requires the Secretary and the Federal cochairmen to coordinate their respective activities under titles I, II, and V of this act.

Second: Section 512 authorizes the appropriation of $500,000 to the Federal Field Committee for Development Planning in Alaska, for the 2-fiscal-year period ending June 30, 1971, to plan economic development programs and projects in Alaska in cooperation with the State of Alaska. This section does not preclude the establishment of a regional commission for Alaska.

Third: Section 513 authorizes the Secretary of Transportation, acting jointly with the regional commissions, to conduct and facilitate investigations and studies of all types and modes of transportation relevant to the needs of the economic development regions, to carry out demonstration projects which he determines to be necessary to the conduct of such investigations and studies and to report the results, together with his recommendations and those of each regional com

mission, to Congress not later than January 10, 1971. An additional $20 million is authorized to carry out this section. This section does not preclude the use of other funds available under any other section of the act for authorized transportation projects.

SECTION-BY-SECTION ANALYSIS OF TITLE III, AMENDMENTS TO THE PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF 1965, OF PUBLIC LAW 91-123

Section 301.-Indian tribes; Authorization: Amends section 101 (c) of title I of the Public Works and Economic Development Act of 1965 (hereinafter referred to in this title as "the Act") as follows:

First: Permits the Secretary in the case of grants to Indian tribes to reduce or entirely waive the required non-federal share below the minimum of 20 percent otherwise required.

Second: Amends section 105 to extend the annual authorization of $500 million to June 30, 1970, for direct and supplementary grants for public works and development facilities.

Section 302.-Demonstration projects: Amends section 301 of the Act to authorize the Secretary 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 productivity and growth, prevent out-migration, and otherwise carry out the purposes of this Act.

Section 303.-Authorization: Amends section 302 of the Act to increase the authorization for title III of the Act for the fiscal ing on June 30, 1970, from $25 million to $50 million.

year endSection 304.-Redevelopment areas: Amends section 401 of the act as follows:

First: Requires the Secretary to designate as redevelopment areas those areas selected for assistance under part D of title I of the Economic Opportunity Act of 1964 and authorizes the Secretary to designate as redevelopment areas those areas which he determines meet the purposes of section 150 of part D of title I of the Economic Opportunity Act of 1964 and otherwise meet the requirements of the Economic Development Act.

The purpose of section 150 of the Economic Opportunity Act is to establish special programs for the solution of critical problems in particular communities or neighborhoods (defined without regard to political or other subdivisions or boundaries) within those urban areas having especially large concentrations of low-income persons, and within those rural areas having substantial outmigration to eligible urban areas.

Second: The areas that the Secretary designates under this amendment would not be eligible to meet the requirements for establishing an economic development district in accordance with section 403 (a) (1) (B) of the Economic Development Act.

Third: Those areas designated by the Secretary are exempt from the population and boundary limitations in section 401 (b) (3) and (4) and are not considered a redevelopment area for the purposes of determining the continued eligibility of an area designated in accordance with section 401 (d) which requires the designation of at least. one redevelopment area in each state.

39-801 0-70- -3

PART II-APPALACHIAN REGIONAL DEVELOPMENT

ACT OF 1965, AS AMENDED

A-Legislation, P.L. 89-4, as Amended

AN ACT To provide public works and economic development programs and the planning and coordination needed to assist in development or 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 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. The public investments made in the region under this Act shall be concentrated in areas where there is a significant 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.