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CONTENTS

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A. Legislation, Public Law 93–423.

B. Section-by-Section Analysis--

Part II. Public Works and Economic Development Act of 1965, as amended :

A. Legislation, Public Law 89_136, as amended.

B. Section-by-Section Analysis----

Part III. Appalachian Regional Development Act of 1965, as amended :

A. Legislation, Public Law 8944, amended.--

B. Section-by-Section Analysis-----

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INTRODUCTION

This is a revision of a compilation of the two economic development laws currently under the jurisdiction of the Public Works Committee. Both the Appalachian Regional Development Act and the Public Works and Economic Development Act have been in existence since 1965. Subsequent amendments to the original acts have occurred in 1967, 1969, 1970, 1971, 1973 and again in 1974.

Since the 1971 amendments extended the life of the regular Appalachian programs through fiscal year 1975 and its highway program through fiscal year 1978, it was not necessary to consider this legislation this year. Although the President's budget of this year called for a phase out of the EDA programs under the Public Works and Economic Development Act, Congress extended it through fiscal year 1976.

This year, three new programs were added to the Act. Title VIII authorized by the Disaster Relief Act of 1974 provides for an assistance program for the economic recovery of any major disaster area which suffered a dislocation of its economy of sufficient severity to require planning assistance, continued coordination of assistance under Federal aid programs and continued assistance toward restoration of the employment base. Title IX authorized by the 1974 amendments to the Act provides for a special economic development and adjustment assistance program to help State and local areas meet special needs arising from actual or threatened severe unemployment. Title X authorized by the Emergency Jobs and Unemployment Assistance Act of 1974 provides a program of emergency financial assistance to stimulate, maintain or expand job creating activities in areas, both urban and rural, which are suffering from unusually high levels of unemployment.

The Committee believes that the Administration has continually underestimated the usefulness and effectiveness of this legislation. We believe that the Economic Development Act should be continued until improved economic development legislation is enacted.

The Committee has already begun its hearings exploring the elements of a National Public Works Investment Policy as well as field hearings to receive legislative recommendations for new national economic development legislation. Information collected at these hearings should contribute to defining the objectives of new economic development legislation.

This Committee Print gives the current acts, as amended, and should be a valuable working tool for those interested in economic development, and Members of the Committee in their deliberations of future legislative actions deemed necessary to assure sound and balanced economic growth for our Nation.

JOHN A. BLATNIK, Chairman, Committee on Public Works.

PART I.-1974 AMENDMENTS TO THE PUBLIC WORKS


AND ECONOMIC DEVELOPMENT ACT OF 1965

A-Legislation, Public Law 93-423 AN ACT To amend the Public Works and Economic Development Act of 1965

to extend the authorization for a two-year period and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the first sentence of section 105 of the Public Works and Economic Development Act of 1965, as amended, is amended by striking the period at the end thereof and inserting a comma and the following: "not to exceed $200,000,000 for the fiscal year ending June 30, 1975, and not to exceed $250,000,000 for the fiscal year ending June 30, 1976.". The final sentence of section 105 of such Act, as amended, is amended by inserting immediately after the words "and June 30, 1974," the following: "and not less than 10 per centum nor more than 35 per centum of all appropriations made for the fiscal years ending June 30, 1975 and June 30, 1976,".

Sec. 2. Section 102 of the Public Works and Economic Development Act of 1965, as amended, is amended to read as follows:

"Sec. 102. For each of the fiscal years ending June 30, 1975, and June 30, 1976, not to exceed $30,000,000 of the funds authorized to be appropriated under section 105 of this Act for each such fiscal year shall be available for grants of operation of any health project funded under this title after the date of enactment of this section. Such grants may be made up to 100 per centum of the estimated cost of the first fiscal year of operation, and up to 100 per centum of the deficit in funds available for operation of the facility during the second fiscal year of operation. No grant shall be made for the second fiscal year of operation of any facility unless the agency operating such facility has adopted a plan satisfactory to the Secretary of Health, Education, and Welfare, providing for the funding of operations on a permanent basis. Any grant under this section shall be made upon the condition that the operation of the facility will be conducted under efficient management practices designed to obviate operating deficits, as determined by the Secretary of Health, Education, and Welfare."

Sec. 3 (a) Title IV of such Act is amended

(1) by adding the following new paragraph at the end of section 401(a):

"18) those areas which the Secretary of Labor determines, on the basis of average annual available unemployment statistics, were areas of substantial unemployment during the preceding calendar year.”; and

(2) by striking out the period at the end of section 401 (a) (7) and inserting in lieu thereof a semicolon.

(3)

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