(3)(A) a comprehensive economic development strategy for addressing the economic problems identified under paragraph (1) in a manner that promotes economic development and opportunity, fosters effective transportation access, enhances and protects the environment, and balances resources through sound management of development; and

(B) a description of how the strategy will solve the problems.

(b) APPROVAL OF COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY.-The Secretary shall approve a comprehensive economic development strategy that meets the requirements of subsection (a) to the satisfaction of the Secretary.

(c) APPROVAL OF OTHER PLAN.-The Secretary may accept as a comprehensive economic development strategy a satisfactory plan developed under another federally supported program.

TITLE IV-ECONOMIC DEVELOPMENT

DISTRICTS

SEC. 401. [42 U.S.C. 3171] DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS.

(a) IN GENERAL.-In order that economic development projects of broad geographic significance may be planned and carried out, the Secretary may designate appropriate economic development districts in the United States, with the concurrence of the States in which the districts will be wholly or partially located, if—

(1) the proposed district is of sufficient size or population, and contains sufficient resources, to foster economic development on a scale involving more than a single area described in section 301(a);

(2) the proposed district contains at least 1 area described in section 301(a); and

(3) the proposed district has a comprehensive economic development strategy that

(A) contains a specific program for intra-district cooperation, self-help, and public investment; and

(B) is approved by each affected State and by the Secretary.

(b) AUTHORITIES.-The Secretary may, under regulations promulgated by the Secretary

(1) invite the States to determine boundaries for proposed economic development districts;

(2) cooperate with the States

(A) in sponsoring and assisting district economic planning and economic development groups; and

(B) in assisting the district groups in formulating comprehensive economic development strategies for districts; and

(3) encourage participation by appropriate local government entities in the economic development districts.

SEC. 402. [42 U.S.C. 3172] TERMINATION OR MODIFICATION OF ECONOMIC DEVELOPMENT DISTRICTS.

The Secretary shall, by regulation, promulgate standards for the termination or modification of the designation of economic development districts.

SEC. 403. [42 U.S.C. 3173] INCENTIVES.

(a) IN GENERAL.-Subject to the non-Federal share requirement under section 205(c)(1), the Secretary may increase the amount of grant assistance for a project in an economic development district by an amount that does not exceed 10 percent of the cost of the project, in accordance with such regulations as the Secretary shall promulgate, if—

(1) the project applicant is actively participating in the economic development activities of the district; and

(2) the project is consistent with the comprehensive economic development strategy of the district.

(b) REVIEW OF INCENTIVE SYSTEM.-In promulgating regulations under subsection (a), the Secretary shall review the current incentive system to ensure that the system is administered in the most direct and effective manner to achieve active participation by project applicants in the economic development activities of economic development districts.

SEC. 404. [42 U.S.C. 3174] PROVISION OF COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES TO APPALACHIAN REGIONAL COMMISSION.

If any part of an economic development district is in the Appalachian region (as defined in section 403 of the Appalachian Regional Development Act of 1965 (40 U.S.C. App.)), the economic development district shall ensure that a copy of the comprehensive economic development strategy of the district is provided to the Appalachian Regional Commission established under that Act. SEC. 405. [42 U.S.C. 3175] ASSISTANCE TO PARTS OF ECONOMIC DEVELOPMENT DISTRICTS NOT IN ELIGIBLE AREAS.

Notwithstanding section 301, the Secretary may provide such assistance as is available under this Act for a project in a part of an economic development district that is not in an area described in section 301(a), if the project will be of a substantial direct benefit to an area described in section 301(a) that is located in the district.

TITLE V-ADMINISTRATION

SEC. 501. [42 U.S.C. 3191] ASSISTANT SECRETARY FOR ECONOMIC DEVELOPMENT.

(a) IN GENERAL.-The Secretary shall carry out this Act through an Assistant Secretary of Commerce for Economic Development, to be appointed by the President, by and with the advice and consent of the Senate.

(b) COMPENSATION.-The Assistant Secretary of Commerce for Economic Development shall be compensated at the rate payable for level IV of the Executive Schedule under section 5315 of title 5, United States Code.

(c) DUTIES.-The Assistant Secretary of Commerce for Economic Development shall carry out such duties as the Secretary shall require and shall serve as the administrator of the Economic Development Administration of the Department.

SEC. 502. E[42 U.S.C. 3192] ECONOMIC DEVELOPMENT INFORMATION CLEARINGHOUSE.

In carrying out this Act, the Secretary shall

(1) maintain a central information clearinghouse on matters relating to economic development, economic adjustment, disaster recovery, defense conversion, and trade adjustment programs and activities of the Federal and State governments, including political subdivisions of States;

(2) assist potential and actual applicants for economic development, economic adjustment, disaster recovery, defense conversion, and trade adjustment assistance under Federal, State, and local laws in locating and applying for the assistance; and

(3) assist areas described in section 301(a) and other areas by providing to interested persons, communities, industries, and businesses in the areas any technical information, market research, or other forms of assistance, information, or advice that would be useful in alleviating or preventing conditions of excessive unemployment or underemployment in the areas. SEC. 503. [42 U.S.C. 3193] CONSULTATION WITH OTHER PERSONS AND AGENCIES.

(a) CONSULTATION ON PROBLEMS RELATING TO EMPLOYMENT.The Secretary may consult with any persons, including representatives of labor, management, agriculture, and government, who can assist in addressing the problems of area and regional unemployment or underemployment.

(b) CONSULTATION ON ADMINISTRATION OF ACT.-The Secretary may provide for such consultation with interested Federal agencies as the Secretary determines to be appropriate in the performance of the duties of the Secretary under this Act.

SEC. 504. [42 U.S.C. 3194] ADMINISTRATION, OPERATION, AND MAINTENANCE.

The Secretary shall approve Federal assistance under this Act only if the Secretary is satisfied that the project for which Federal assistance is granted will be properly and efficiently administered, operated, and maintained.

SEC. 505. [42 U.S.C. 3195] BUSINESSES DESIRING FEDERAL CONTRACTS.

The Secretary may provide the procurement divisions of Federal agencies with a list consisting of

(1) the names and addresses of businesses that are located in areas described in section 301(a) and that wish to obtain Federal Government contracts for the provision of supplies or services; and

(2) the supplies and services that each business provides. SEC. 506. [42 U.S.C. 3196] PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

(a) IN GENERAL.-The Secretary shall conduct an evaluation of each university center and each economic development district that

receives grant assistance under this Act (each referred to in this section as a "grantee") to assess the grantee's performance and contribution toward retention and creation of employment.

(b) PURPOSE OF EVALUATIONS OF UNIVERSITY CENTERS.-The purpose of the evaluations of university centers under subsection (a) shall be to determine which university centers are performing well and are worthy of continued grant assistance under this Act, and which should not receive continued assistance, so that university centers that have not previously received assistance may receive assistance.

(c) TIMING OF EVALUATIONS.-Evaluations under subsection (a) shall be conducted on a continuing basis so that each grantee is evaluated within 3 years after the first award of assistance to the grantee after the effective date of the Economic Development Administration Reform Act of 1998, and at least once every 3 years thereafter, so long as the grantee receives the assistance.

(d) EVALUATION CRITERIA.

(1) ESTABLISHMENT.-The Secretary shall establish criteria for use in conducting evaluations under subsection (a).

(2) EVALUATION CRITERIA FOR UNIVERSITY CENTERS.-The criteria for evaluation of a university center shall, at a minimum, provide for an assessment of the center's contribution to providing technical assistance, conducting applied research, and disseminating results of the activities of the center.

(3) EVALUATION CRITERIA FOR ECONOMIC DEVELOPMENT DISTRICTS.-The criteria for evaluation of an economic development district shall, at a minimum, provide for an assessment of management standards, financial accountability, and program performance.

(e) PEER REVIEW.-In conducting an evaluation of a university center or economic development district under subsection (a), the Secretary shall provide for the participation of at least 1 other university center or economic development district, as appropriate, on a cost-reimbursement basis.

SEC. 507. [42 U.S.C. 3197] NOTIFICATION OF REORGANIZATION.

Not later than 30 days before the date of any reorganization of the offices, programs, or activities of the Economic Development Administration, the Secretary shall provide notification of the reorganization to the Committee on Environment and Public Works and the Committee on Appropriations of the Senate, and the Committee on Transportation and Infrastructure and the Committee on Appropriations of the House of Representatives.

TITLE VI-MISCELLANEOUS

SEC. 601. [42 U.S.C. 3211] POWERS OF SECRETARY.

(a) IN GENERAL.-In carrying out the duties of the Secretary under this Act, the Secretary may

(1) adopt, alter, and use a seal, which shall be judicially noticed;

(2) subject to the civil service and classification laws, select, employ, appoint, and fix the compensation of such personnel as are necessary to carry out this Act;

(3) hold such hearings, sit and act at such times and places, and take such testimony, as the Secretary determines to be appropriate;

(4) request directly, from any Federal agency, board, commission, office, or independent establishment, such information, suggestions, estimates, and statistics as the Secretary determines to be necessary to carry out this Act (and each Federal agency, board, commission, office, or independent establishment may provide such information, suggestions, estimates, and statistics directly to the Secretary);

(5) under regulations promulgated by the Secretary—

(A) assign or sell at public or private sale, or otherwise dispose of for cash or credit, in the Secretary's discretion and on such terms and conditions and for such consideration as the Secretary determines to be reasonable, any evidence of debt, contract, claim, personal property, or security assigned to or held by the Secretary in connection with assistance provided under this Act; and

(B) collect or compromise all obligations assigned to or held by the Secretary in connection with that assistance until such time as the obligations are referred to the Attorney General for suit or collection;

(6) deal with, complete, renovate, improve, modernize, insure, rent, or sell for cash or credit, on such terms and conditions and for such consideration as the Secretary determines to be reasonable, any real or personal property conveyed to or otherwise acquired by the Secretary in connection with assistance provided under this Act;

(7) pursue to final collection, by means of compromise or other administrative action, before referral to the Attorney General, all claims against third parties assigned to the Secretary in connection with assistance provided under this Act;

(8) acquire, in any lawful manner, any property (real, personal, or mixed, tangible or intangible), to the extent appropriate in connection with assistance provided under this Act;

(9) in addition to any powers, functions, privileges, and immunities otherwise vested in the Secretary, take any action, including the procurement of the services of attorneys by contract, determined by the Secretary to be necessary or desirable in making, purchasing, servicing, compromising, modifying, liquidating, or otherwise administratively dealing with assets held in connection with financial assistance provided under this Act;

(10)(A) employ experts and consultants or organizations as authorized by section 3109 of title 5, United States Code, except that contracts for such employment may be renewed annually;

(B) compensate individuals so employed, including compensation for travel time; and

(C) allow individuals so employed, while away from their homes or regular places of business, travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code, for persons employed intermittently in the Federal Government service;