United States Public Health Service, the Chief of Engineers of the Army, the Chief of the Forestry Service, the Administrator of General Services, the Housing and Home Finance Administrator, an Assistant Secretary of the Interior, an Assistant Secretary of Labor, an Assistant Postmaster General, an Assistant Secretary of Defense, the Director of Defense Mobilization, and the Chairman of the Atomic Energy Commission.

DEPRESSED AREAS

SEC. 6. (a) Areas within the United States in which the Administrator has determined that there has existed unemployment of not less than (1) 9 per centum of the labor force for at least eighteen months, or (2) 6 per centum of the labor force for at least three years immediately prior to the date on which application for assistance is made under this Act, shall be designated as "depressed areas".

(b) (1) In making the determinations provided for in subsection (a) of this section, the Administrator shall be guided by, but not conclusively governed by, pertinent studies, information, and data conducted, collected, or compiled by the various departments, agencies, and instrumentalities of the Federal Government, by State and local governments, and by private organizations.

(2) Upon the request of the Administrator, the Secretary of Labor is authorized and directed to conduct such special studies, obtain such information, and compile such data as the Administrator may deem necessary or proper to enable him to make the determinations provided for by subsection (a) of this section.

LOCAL COMMITTEES

SEC. 7. The Administrator, upon determining that any area is a depressed area, shall appoint a local industrial development committee (hereinafter referred to as a "local committee"), to be composed of not less than five citizens of such area. Each local committee shall prepare plans and cost estimates for the construction of industrial plants and other industrial and commercial facilities to attract new industries to the area which such committee represents, and shall enlist the support of local citizens and private and public lending agencies for financing such construction.

LOANS

SEC. 8 (a) Upon application therefor by a local committee, the Administrator is authorized to make loans to assist in financing the construction, within the depressed area represented by such committee, of industrial plants or other industrial or commercial facilities if he finds that

(1) the construction of such plant or facility is reasonably calculated to alleviate unemployment within the depressed area wherein it is to be located;

(2) funds for the construction of such plant or facility are not otherwise available on reasonable terms;

(3) the amount of the loan plus the amount of private funds available for the construction of such plant or facility are adequate to insure the completion of such plant or facility;

(4) the construction of such plant or facility will not result in the attracting to the depressed area in which such plant or facility is to be located an industry which is presently located in a depressed area, or which would, if induced to relocate in the area in which the plant or facility is to be located, become a depressed area; and

(5) after construction the plant or facility will be utilized by firms or organizations on a basis to provide more than temporary alleviation of unemployment.

(b) No loan made under subsection (a) of this section shall be for an amount in excess of 66% per centum of the cost of construction of the project for which such loan is made, nor shall the maturity date of any such loan be later than forty years after the date such loan was made.

(c) Not more than $100,000,000 of the funds authorized to be raised under section 10 of this Act shall be available for the purpose of making loans under this section.

ASSISTANCE TO PUBLIC FACILITIES

SEC. 9. (a) The Administrator, in consultation with the members of the Advisory Committee, shall conduct continuing studies of needs throughout depressed areas for useful public facilities, with a view to determining each of the various types of public facilities needed, the probable cost of construction of each such facility, and the estimated number of jobs which would be provided in and near such depressed area by the construction of each such public facility. (b) (1) The Administrator is authorized to receive proposals from States, Territories, possessions, political subdivisions of States (including municipalities), and private or public organizations and associations relating to works of public facilities construction. Such proposals shall contain plans showing the work proposed to be performed, and the cost thereof, and shall contain proposals for contributions to the cost thereof by the entity making the proposal, proportioned to its ability to pay such contributions. The Administrator, in consultation with the entity which makes a proposal, is authorized to modify all or any part of such proposal.

(2) The Administrator shall periodically review proposals received under this subsection, and shall adopt such proposals as, in his view, will substantially aid in carrying out the purposes of this Act.

(c) The Administrator, after consultation with the entity of entities most directly affected, is authorized to initiate programs of public facilities construction without the necessity for proposals therefor having been made under subsection (b).

(d) The Administrator shall select projects to be constructed under this section on the basis of the degree to which the construction of such project will result in the most effective and economic alleviation of unemployment within the depressed area wherein such project is to be constructed.

(e) (1) The Administrator shall assist, by making grants or loans, in the construction of any project selected for construction by him as the result of the submission of a proposal provided for in subsection (b), but he shall not make any loan or grant to assist in the construction of any project with respect to which a grant or loan under any other Federal program or State programs partially financed by Federal grants is, or upon application therefor would be, obtainable.

(2) In the case of any project which is in a category of projects with respect to the construction of which assistance, by means of grants or loans, is provided under another Federal program or State program partially financed by Federal grants, but which is not eligible for such assistance, or for which such assistance cannot be obtained, the Administrator shall, in determining the amount and conditions under which a grant or loan will be made under this subsection, be governed by the amounts and conditions of the grants or loans provided for by such Federal or State program.

(f) The Administrator is authorized to proceed with the construction of any project initiated by him under subsection (c) without any requirement of local contributions toward the construction of such project.

(g) The Administrator shall provide by regulations for the supervision of construction conducted under this section to insure that Federal funds are not wasted or dissipated.

(h) Not more than $100,000,000 of the funds authorized to be raised under section 10 of this Act shall be available for the purpose of carrying out the provisions of this section.

FUNDS

SEC. 10. To obtain funds for grants and loans under this Act, the Administrator may, with the approval of the President, issue and have outstanding at any one time notes and obligations for purchase by the Secretary of the Treasury in an amount not to exceed $200,000,000. Such notes or other obligations shall be in such forms and denominations, have such maturities, and be subject to such terms and conditions as may be prescribed by such officer or agency, with the approval of the Secretary of the Treasury. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average rate on outstanding marketable obligations of the United States as of the last day of the month preceding the issuance of such notes or other obligations. The Secretary of the Treasury is authorized and directed to purchase any notes and other obligations issued under this section and for such purpose is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second

Liberty Bond Act, as amended, and the purposes for which securities may be issued under such Act, as amended, are extended to include any purchases of such notes and other obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this section. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated in every respect as public debt transactions of the United States.

PROCUREMENT

SEC. 11. (a) Each department, agency, or other instrumentality of the Federal Government engaged in the procurement of any supplies or services for use by or on behalf of the United States shail, to the maximum practicable extent, procure such supplies or services from contractors in depressed areas or from contractors who in furnishing the same will undertake to provide for the employment of additional individuals in depressed areas.

(b) The Administrator shall furnish all departments, agencies, and instrumentalities of the Federal Government with a list of areas which he has designated as depressed areas under this Act together with a list of the services and supplies which are most abundantly available in each of such areas.

INFORMATION

SEC. 12. The Administrator shall aid depressed 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 is obtainable from the various departments, agencies, and instrumentalities of the Federal Government and which would be useful in alleviating conditions of excessive unemployment within such areas.

POWERS OF ADMINISTRATOR

SEC. 13. For the purposes of performing his duties, the Administrator is authorized to

(a) hold such hearings, to sit and act at such times and places, and to take such testimony, as the Administrator may deem advisable;

(b) secure directly from any executive department, bureau, agency, board, commission, office, independent establishment, or instrumenality information, suggestions, estimates, and statistics needed to carry out the purposes of this section; and each department, bureau, agency, board, commission, office, establishment, or instrumentality is authorized and directed to furnish such information, suggestions, estimates, and statistics directly to the Administrator;

(c) require by subpena or otherwise the attendance of witnesses and the production of books, papers, and documents, to administer oaths, to take testimony, to have printing and binding done; and to make such expenditures as he deems advisable within the amount appropriated therefor. The Administrator may administer oaths or affirmations to witnesses appearing before him. Subpenas shall be issued under the signature of the Adminis trator and shall be served by any person designated by him. The Administrator is authorized to exercise any of the powers conferred upon the Securities and Exchange Commission by subsection (c) of section 21 of the Securities and Exchange Act of 1934, and subsection (d) of such section shall be applicable to witnesses before the Administrator; and

(d) establish such rules, regulations, and procedures as may be appropriate to permit the Administrator to perform the functions prescribed in this Act.

TAX RELIEF

SEC. 14 (a) The first sentence of section 168 (e) (1) of the Internal Revenue Code of 1954 (relating to amortization of emergency facilities) is amended by striking out "has certified as necessary in the interest of national defense during the emergency period, and only such portion of such amount as such authority has certified as attributable to defense purposes" and inserting in lieu thereof "has certified as necessary in the interest of national defense or to relieve unemployment in areas designated as 'depressed areas' by the Administrator of the Depressed Areas Administration during the emergency period, and only such portion of such amount as such authority has certified as attributable to such purposes."

(b) The amendment made by this section shall be effective only with respect to taxable years beginning after December 31, 1954.

VOCATIONAL TRAINING

SEC. 15. (a) The Secretary of Labor shall

(1) prescribe and provide suitable training for unemployed individuals residing in depressed areas who are in need of retraining, reemployment, vocational education, or vocational rehabilitation;

(2) utilize and extend all existing Federal Government facilities, and utilize the facilities of any other governmental agency maintained by joint Federal and State contributions, to carry out the purposes of this section; and

(3) by agreement or contract with public or private institutions or establishments, provide for such additional training facilities as may be necessary to accomplish the purposes of this section.

(b) The Secretary of Labor shall have the power and the duty to cooperate with existing Federal, State, and local agencies and officials in charge of existing programs relating to retraining, reemployment, vocational education, and vocational rehabilitation for the purpose of coordinating his activities with those of such Federal, State, and local agencies.

UNEMPLOYMENT COMPENSATION

SEC. 16. (a) The Secretary of Labor shall on behalf of the United States enter into an agreement with any State in which a depressed area is located under which the State, as agent of the United States, will make supplementary payments of compensation to unemployed individuals within the depressed areas of such State as provided for in this section, and will otherwise cooperate with the Secretary and with other State agencies in making payments of compensation under this section.

(b) Supplementary payments of unemployment compensation under this section shall be made only to unemployed individuals who have been certified by the Secretary of Labor to be undergoing training for a new job.

(c) In the case of individuals who accept or continue in training under section 15 of this Act or who have been certified under subsection (b) of this section after the expiration of the State unemployment compensation, the Federal Government will continue to pay unemployment compensation benefits under the State unemployment compensation laws for a period of not exceeding thirteen weeks.

SURPLUS FOOD SUPPLIES

SEC. 17. (a) The last sentence of section 407 of the Agricultural Act of 1949 is amended to read as follows: "Except on a reimbursable basis, the Corporation shall not bear any costs in connection with making such commodity available beyond the cost of the commodity to the Corporation in store, the cost of processing it into a form suitable for home or institutional use if it is a food commodity, and the handling and transportation costs in making delivery of the commodity to designated agencies at one or more central locations in each State."

(b) The next to last sentence of section 416 of the Agricultural Act of 1949 is amended to read as follows: "The Commodity Credit Corporation may pay (i) with respect to food commodities disposed of under this section, the cost of processing them into a form suitable for home or institutional use, and (ii) with respect to all commodities disposed of under this section, reprocessing, packaging, transporting, handling, and other charges accruing up to the time of their delivery to a Federal agency or to the designated State or private agency, in the case of commodities made available for use within the United States, or their delivery free alongside ship or free on board export carrier at point of export, in the case of commodities made available for use outside the United States.”

APPROPRIATION

SEC. 18. There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of this Act.

Purpose

DIGEST OF DOUGLAS DEPRESSED AREAS BILL, S. 2663

** to provide assistance to communities, industries, enterprises, and individuals to depressed areas to enable them so to adjust their productive activity as to effectively alleviate excessive unemployment within such areas.

Organization

1. Creates Depressed Areas Administration with Administrator.

2. Advisory committee consisting of heads of major Federal bureaus.

Depressed areas defined

or

1. Areas where 9 percent unemployment has existed for at least 18 months,

2. Areas where at least 6 percent have been unemployed for at least 3 years. (Studies made to determine these facts by Administrator and Department of Labor.)

Local committees

1. Once such area is determined, local industrial committee is appointed by Administrator, consisting of five citizens.

Loans

May make loans in financing construction of industrial plants.

1. Need established by findings showing

(a) construction of facility reasonably calculated to alleviate unemployment.

(b) funds for construction not otherwise available.

(c) amount of loan plus private funds available to insure completion.

(d) construction of facility will not rob another depressed area or cause another area to become depressed.

(e) facility constructed will not be merely temporary.

2. No loan in excess of 66% percent of cost of construction, nor for longer than 40 years.

3. $100 million authorized for making loans.

Assistance to public facilities

1. Administrator directed to make studies of need, and with advice of advisory committee can by loans or grants initiate programs of public facilties with or without proposals from States, municipalities, and private organizations. 2. $100 million authorized for such public facilities assistance.

Funds for industrial plants and public facilities

Administrator with approval of President issues notes and obligations not exceeding $200 million. Secretary of the Treasury may purchase and sell such notes.

Procurement

Governmental departments shall procure supplies and services from local firms where practicable.

Information

Administrator shall furnish areas with technical assistance and information from governmental agencies and departments.

Powers of administrator

1. Hold hearings, issue subpenas, establish rules.

2. Secure assistance from all other governmental agencies.

Tax relief

1. Provides fast tax write-off benefits for new plants.

Vocational training

1. Secretary of Labor to provide suitable training for unemployed.

2. Cooperation with existing retraining facilities and State programs.

Unemployment compensation

1. Agree with State for payment of supplementary payments in depressed areas for those engaged in retraining program.