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have a special need to meet economic adjustment problems and have submitted a plan to use such grants authorized by the section. Such grants may be used for public facilities, public services, business development, unemployment compensation, rent supplements, mortgage payment assistance, planning, research, technnical assistance, training, relocation of individuals, and other purposes. Grants may be used directly by eligible recipients or redistributed by the recipient to public and nonprofit private entities. Grants for unemployment compensation to be made to the State.

(b) The plan submitted for approval must identify the need, describe the activity proposed to meet the need, and the method of carrying out each activity.

It must also contain assurances that the proceeds from the repayment of loans be used for economic adjustment and contain other information required by the Secretary.

(c) Requires Secretary to coordinate his activities in requiring plans and making grants and loans under this title with regional commissions, States, districts and other appropriate organizations.

(d) Authorizes the Secretary to transfer grants to Secretary of Labor to be administered by him. The Secretary of Labor may grant such assistance as he deems appropriate while individual is unemployed. This assistance is available to an individual not otherwise disqualified under State law, up to one year after unemployment commences. Payments may not exceed amounts authorized by State law and is reduced by other unemployment compensation or insurance available. The Secretary of Labor is to provide this assistance through agreements with States that have an adequate system for administering assistance.

Section 904-Reports and evaluation: Requires an evaluation report of the effectiveness of the grant in meeting the need by recipient to the Secretary. It also requires an annual report by the Secretary to the Congress with his recommendations.

Section 905.-Authorization of appropriations: Authorizes an appropriation of $75 million for the fiscal year ending June 30, 1975, and $100 million for the fiscal year ending June 30, 1976, to carry out the title.

TITLE X-JOB OPPORTUNITIES PROGRAM

Section 1001.-Statement of purpose: Declares purpose of title is to provide emergency financial assistance to stimulate job creating activities in areas suffering from unusually high levels of unemploy

ment.

Section 1002.-Definitions: Defines "eligible area" as any area designated by the Secretary of Labor as having unemployment in excess of 6.5% for three consecutive months, areas of substantial unemployment designated under the Comprehensive Employment and Training Act, and areas designated by the Secretary of Commerce under the Public Works and Economic Development Act.

Section 1003.-Program authorized: The Secretary is authorized to provide financial assistance to programs and projects identified. through a review process designed to create jobs in areas of high un

employment. Programs and projects are administered according to existing laws except for provisions regarding the allocation of funds, limitations on the amount of the grant, and Federal, State and local contribution requirements. In allocating funds, priority consideration is given to programs and projects which:

(1) will reduce unemployment in eligible areas
(2) can be started promptly

(3) can be substantially completed within 12 months
(4) consistent with development plans of area
(5) are labor intensive.

Section 1004.-Program review: Each Federal department, agency, and regional commission is to make a review within 45 days of enactment and submit to the Secretary of Labor and Commerce projects and programs they feel have the greatest potential of creating jobs for the unemployed in eligible areas. Within 30 days the Secretary of Commerce must make an allocation of funds for programs and projects of greatest priority.

Section 1005.-Limitations on use of funds: One-half of the funds appropriated are for programs and projects where not more than 25% of the funds will be used for non-labor costs.

Section 1006.-Rules and regulations: Secretary of Commerce is to prescribe rules and regulations to carry out title that will assure that funds will be equitably distributed between urban and rural applicants.

Section 1007.-Authorization of Appropriations: Authorizes an appropriation of $500 million for fiscal year 1975 to carry out the title but no obligation of funds may be made after a determination that the national average rate of unemployment has receded below 6.5% for three consecutive calendar months.

Section 1008.-Termination date: No obligation of funds may be made after December 31, 1975.

OTHER LEGISLATION AFFECTING THIS ACT

Section 2 of Public Law 91-304 dated July 6, 1970 is amended to extend the moratorium period on the dedesignation of any area from May 1, 1970 to June 30, 1976.

Section 112 of Public Law 92-65 dated August 5, 1971, prohibits discrimination because of sex under any program or activity under the

Act.

Section 7 of Public Law 93-46 dated June 18, 1973, requires a report to Congress within 30 days after enactment from the "Inter-Agency Economic Adjustment Committee" listing details of utilizing unused defense property and other efforts to assist each community with plans for its economic development.

Section 8 of Public Law 93-46 dated June 18, 1973, requires the President to instruct the Secretary of Commerce and the Office of Management and Budget to examine past and current Federal efforts to secure balanced national economic development and to submit proposal to Congress within six months for restructuring Federal economic programs into coordinated plan for assistance.

Section 3(b) of Public Law 93-423 dated September 27, 1974, deems areas designated under Title I, Title IV areas on date of enactment of this Act.

PART III.-APPALACHIAN REGIONAL DEVELOPMENT ACT OF 1965, AS AMENDED

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

AN ACT To provide public works aud 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 ex-. pected 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.

(81)

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 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 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 as a focal point and coordinating unit for Appalachian programs; and

(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.

(9) Repealed.1

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, 1967, the administrative expenses of the Commission shall be paid by the Federal Government. Thereafter, such expenses shall be paid 50 per centum by the Federal Government and 50 per centum by the States in the region, except that the expenses of the Federal Cochairman, his alternate, and his staff shall be paid solely by the Federal Government. 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.

1 Sec. 102(9), providing for advice by the Commission to the Secretary of Commerce on proposed grants for administrative expenses of local development districts, repealed by sec. 102 of the Appalachian Regional Development Act Amendments of 1967, 81 Stat. 257.

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