-CITE-

40 USC CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS 01/06/03

-EXPCITE-

TITLE 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS

SUBTITLE IV - APPALACHIAN REGIONAL DEVELOPMENT

CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS

-HEAD-

CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS

-MISC1-

SUBCHAPTER I - PROGRAMS

Sec.

14501. Appalachian development highway system.

14502. Demonstration health projects.

14503. Assistance for proposed low- and middle-income housing

projects.

14504. Telecommunications and technology initiative.

14505. Entrepreneurship initiative.

14506. Regional skills partnerships.

14507. Supplements to federal grant programs.

SUBCHAPTER II - ADMINISTRATIVE

14521. Required level of expenditure.

14522. Consent of States.

14523. Program implementation.

14524. Program development criteria.

14525. State development planning process.

14526. Distressed and economically strong counties.

-End-

-CITE-

40 USC SUBCHAPTER I - PROGRAMS 01/06/03

-EXPCITE-

TITLE 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS

SUBTITLE IV - APPALACHIAN REGIONAL DEVELOPMENT

CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS

SUBCHAPTER I - PROGRAMS

-HEAD-

SUBCHAPTER I - PROGRAMS

-End-

-CITE-

40 USC Sec. 14501 01/06/03

-EXPCITE-

TITLE 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS

SUBTITLE IV - APPALACHIAN REGIONAL DEVELOPMENT

CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS

SUBCHAPTER I - PROGRAMS

-HEAD-

Sec. 14501. Appalachian development highway system

-STATUTE-

(a) Purpose. - To provide a highway system which, in conjunction

with the Interstate System and other Federal-aid highways in the

Appalachian region, will open up an area with a developmental

potential where commerce and communication have been inhibited by

lack of adequate access, the Secretary of Transportation may assist

in the construction of an Appalachian development highway system

and local access roads serving the Appalachian region. Construction

on the development highway system shall not be more than 3,025

miles. There shall not be more than 1,400 miles of local access

roads that serve specific recreational, residential, educational,

commercial, industrial, or similar facilities or facilitate a

school consolidation program.

(b) Commission Designations. -

(1) What is to be designated. - The Appalachian Regional

Commission shall transmit to the Secretary its designations of -

(A) the general corridor location and termini of the

development highways;

(B) local access roads to be constructed;

(C) priorities for the construction of segments of the

development highways; and

(D) other criteria for the program authorized by this

section.

(2) State transportation department recommendation required. -

Before a state member participates in or votes on designations,

the member must obtain the recommendations of the state

transportation department of the State which the member

represents.

(c) Addition to Federal-aid Primary System. - When completed,

each development highway not already on the Federal-aid primary

system shall be added to the system.

(d) Use of Specific Materials and Products. -

(1) Indigenous materials and products. - In the construction of

highways and roads authorized under this section, a State may

give special preference to the use of materials and products

indigenous to the Appalachian region.

(2) Coal derivatives. - For research and development in the use

of coal and coal products in highway construction and

maintenance, the Secretary may require each participating State,

to the maximum extent possible, to use coal derivatives in the

construction of not more than 10 percent of the roads authorized

under this subtitle.

(e) Federal Share. - Federal assistance to any construction

project under this section shall not be more than 80 percent of the

cost of the project.

(f) Construction Without Federal Amounts. -

(1) Payment of federal share. - When a participating State

constructs a segment of a development highway without the aid of

federal amounts and the construction is in accordance with all

procedures and requirements applicable to the construction of

segments of Appalachian development highways with those amounts,

except for procedures and requirements that limit a State to the

construction of projects for which federal amounts have

previously been appropriated, the Secretary, on application by

the State and with the approval of the Commission, may pay to the

State the federal share, which shall not be more than 80 percent

of the cost of the construction of the segment, from any amounts

appropriated and allocated to the State to carry out this

section.

(2) No commitment or obligation. - This subsection does not

commit or obligate the Federal Government to provide amounts for

segments of development highways constructed under this

subsection.

(g) Application of Title 23. -

(1) Sections 106(a) and 118. - Sections 106(a) and 118 of title

23 apply to the development highway system and the local access

roads.

(2) Construction and maintenance. - States are required to

maintain each development highway and local access road as

provided for Federal-aid highways in title 23. All other

provisions of title 23 that are applicable to the construction

and maintenance of Federal-aid primary and secondary highways and

which the Secretary decides are not inconsistent with this

subtitle shall apply to the system and roads, respectively.

-SOURCE-

(Pub. L. 107-217, Aug. 21, 2002, 116 Stat. 1265.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

14501(a) 40 App.:201(a) Pub. L. 89-4, title II, Sec.

(1st, 3d, last 201, Mar. 9, 1965, 79 Stat.

sentences). 10; Pub. L. 89-670, Sec.

8(b), Oct. 15, 1966, 80

Stat. 942; Pub. L. 90-103,

title I, Sec. 106, Oct. 11,

1967, 81 Stat. 258; Pub. L.

91-123, title I, Sec. 103,

Nov. 25, 1969, 83 Stat. 214;

Pub. L. 92-65, title II,

Sec. 204, Aug. 5, 1971, 85

Stat. 168; Pub. L. 94-188,

title I, Sec. 110, Dec. 31,

1975, 89 Stat. 1081; Pub. L.

95-599, title I, Sec.

138(a), (b), Nov. 6, 1978,

92 Stat. 2710; Pub. L.

96-506, Sec. 3(3), Dec. 8,

1980, 94 Stat. 2746; Pub. L.

97-35, title XVIII, Sec.

1822(a)(2), Aug. 13, 1981,

95 Stat. 767; Pub. L.

105-178, title I, Sec.

1117(c), title II, Sec.

1212(a)(2)(B)(iii), June 9,

1998, 112 Stat. 160, 193.

14501(b) 40 App.:201(b).

14501(c) 40 App.:201(c) (1st

sentence, last

sentence words

before "and each").

14501(d)(1) 40 App.:201(d).

14501(d)(2) 40 App.:201(e).

14501(e) 40 App.:201(f), (g).

14501(f) 40 App.:201(h).

14501(g)(1) 40 App.:201(a) (2d

sentence words

before 6th comma).

14501(g)(2) 40 App.:201(a) (2d

sentence words

after 6th comma),

(c) (last sentence

words after "to

such system").

--------------------------------------------------------------------

In subsection (c), the text of 40 App.:201(c) (1st sentence) is

omitted as obsolete because appropriations were not authorized

under 40 App.:201(g) after fiscal year 1982.

In subsection (e), the text of 40 App.:201(g) is omitted as

obsolete.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 14507, 14526, 14703,

14704 of this title.

-End-

-CITE-

40 USC Sec. 14502 01/06/03

-EXPCITE-

TITLE 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS

SUBTITLE IV - APPALACHIAN REGIONAL DEVELOPMENT

CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS

SUBCHAPTER I - PROGRAMS

-HEAD-

Sec. 14502. Demonstration health projects

-STATUTE-

(a) Purpose. - To demonstrate the value of adequate health

facilities and services to the economic development of the

Appalachian region, the Secretary of Health and Human Services may

make grants for the planning, construction, equipment, and

operation of multi-county demonstration health, nutrition, and

child care projects, including hospitals, regional health

diagnostic and treatment centers, and other facilities and services

necessary for the purposes of this section.

(b) Planning Grants. -

(1) Authority to provide amounts and make grants. - The

Secretary may provide amounts to the Appalachian Regional

Commission for the support of its Health Advisory Committee and

may make grants for expenses of planning necessary for the

development and operation of demonstration health projects for

the region.

(2) Limitation on available amounts. - The amount of a grant

under this section for planning shall not be more than 75 percent

of expenses.

(3) Sources of assistance. - The federal contribution may be

provided entirely from amounts authorized under this section or

in combination with amounts provided under other federal or

federal grant programs.

(4) Federal share. - Notwithstanding any provision of law

limiting the federal share in those other programs, amounts

appropriated to carry out this section may be used to increase

the federal share to the maximum percentage cost of a grant

authorized by this subsection.

(c) Construction and Equipment Grants. -

(1) Additional uses for construction grants. - Grants under

this section for construction may also be used for -

(A) the acquisition of privately owned facilities -

(i) not operated for profit; or

(ii) previously operated for profit if the Commission finds

that health services would not otherwise be provided in the

area served by the facility if the acquisition is not made;

and

(B) initial equipment.

(2) Standards for making grants. - Grants under this section

for construction shall be made in accordance with section 14523

of this title and shall not be incompatible with the applicable

provisions of title VI of the Public Health Service Act (42

U.S.C. 291 et seq.), the Developmental Disabilities Assistance

and Bill of Rights Act of 2000 (42 U.S.C. 15001 et seq.), and

other laws authorizing grants for the construction of

health-related facilities, without regard to any provisions in

those laws relating to appropriation authorization ceilings or to

allotments among the States.

(3) Limitation on available amounts. - A grant for the

construction or equipment of any component of a demonstration

health project shall not be more than 80 percent of the cost.

(4) Sources of assistance. - The federal contribution may be

provided entirely from amounts authorized under this section or

in combination with amounts provided under other federal grant

programs for the construction or equipment of health-related

facilities.

(5) Federal share. - Notwithstanding any provision of law

limiting the federal share in those other programs, amounts

authorized under this section may be used to increase federal

grants for component facilities of a demonstration health project

to a maximum of 80 percent of the cost of the facilities.

(d) Operation Grants. -

(1) Standards for making grants. - A grant for the operation of

a demonstration health project shall not be made -

(A) unless the facility is publicly owned, or owned by a

public or private nonprofit organization, and is not operated

for profit;

(B) after five years following the commencement of the

initial grant for operation of the project, except that child

development demonstrations assisted under this section during

fiscal year 1979 may be approved under section 14322 of this

title for continued support beyond that period, on request of

the State, if the Commission finds that no federal, state, or

local amounts are available to continue the project; and

(C) unless the Secretary of Health and Human Services is

satisfied that the operation of the project will be conducted

under efficient management practices designed to obviate

operating deficits.

(2) Limitation on available amounts. - Grants under this

section for the operation (including initial operating amounts

and operating deficits, which include the cost of attracting,

training, and retaining qualified personnel) of a demonstration

health project, whether or not constructed with amounts

authorized by this section, may be made for up to 50 percent of

the cost of that operation (or 80 percent of the cost of that

operation for a project to be carried out in a county for which a

distressed county designation is in effect under section 14526 of

this title).

(3) Sources of assistance. - The federal contribution may be

provided entirely from amounts appropriated to carry out this

section or in combination with amounts provided under other

federal grant programs for the operation of health related

facilities and the provision of health and child development

services, including parts A and B of title IV and title XX of the

Social Security Act (42 U.S.C. 601 et seq., 620 et seq., 1397 et

seq.).

(4) Federal share. - Notwithstanding any provision of law

limiting the federal share in those other programs, amounts

appropriated to carry out this section may be used to increase

federal grants for operating components of a demonstration health

project to the maximum percentage cost of a grant authorized by

this subsection.

(5) State deemed to meet requirement of providing assistance or

services on statewide basis. - Notwithstanding any provision of

the Social Security Act (42 U.S.C. 301 et seq.) requiring

assistance or services on a statewide basis, a State providing

assistance or services under a federal grant program described in

paragraph (2) in any area of the region approved by the

Commission is deemed to be meeting that requirement.

(e) Grant Sources and Use of Grants in Computing Allotments. -

Grants under this section -

(1) shall be made only out of amounts specifically appropriated

for the purpose of carrying out this subtitle; and

(2) shall not be taken into account in computing allotments

among the States under any other law.

(f) Maximum Commission Contribution. -

(1) In general. - Subject to paragraph (2), the Commission may

contribute not more than 50 percent of any project cost eligible

for financial assistance under this section from amounts

appropriated to carry out this subtitle.

(2) Distressed counties. - The maximum Commission contribution

for a project to be carried out in a county for which a

distressed county designation is in effect under section 14526 of

this title may be increased to the lesser of -

(A) 80 percent; or

(B) the maximum federal contribution percentage authorized by

this section.

(g) Emphasis on Occupational Diseases From Coal Mining. - To

provide for the further development of the Appalachian region's

human resources, grants under this section shall give special

emphasis to programs and research for the early detection,

diagnosis, and treatment of occupational diseases arising from coal

mining, such as black lung.

-SOURCE-

(Pub. L. 107-217, Aug. 21, 2002, 116 Stat. 1266.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

14502(a) 40 App.:202(a) (1st Pub. L. 89-4, title II, Sec.

sentence). 202(a)-(e), Mar. 9, 1965, 79

Stat. 11; Pub. L. 90-103,

title I, Sec. 107, Oct. 11,

1967, 81 Stat. 259; Pub. L.

91-123, title I, Sec. 104,

Nov. 25, 1969, 83 Stat. 214;

Pub. L. 92-65, title II,

Sec. 206, Aug. 5, 1971, 85

Stat. 169; Pub. L. 94-188,

title I, Sec. 111, Dec. 31,

1975, 89 Stat. 1081; Pub. L.

95-193, Sec. 1, Nov. 18,

1977, 91 Stat. 1412; Pub. L.

96-88, title V, Sec. 509(b),

Oct. 17, 1979, 93 Stat. 695;

Pub. L. 96-545, Sec. 2, Dec.

18, 1980, 94 Stat. 3215;

Pub. L. 105-393, title II,

Sec. 207(a), (c), Nov. 13,

1998, 112 Stat. 3620; Pub.

L. 107-149, Sec. 13(c), (d),

Mar. 12, 2002, 116 Stat. 71.

14502(b) 40 App.:202(d).

14502(c)( 40 App.:202(a) (2d

1), (2) sentence).

14502(c)( 40 App.:202(b).

3)- (5)

14502(d)(1) 40 App.:202(c)

(5th-last

sentences).

14502(d)( 40 App.:202(c)

2), (3) (1st, 2d sentences).

14502(d)(4) 40 App.:202(c) (4th

sentence).

14502(d)(5) 40 App.:202(c) (3d

sentence).

14502(e) 40 App.:202(a)

(last sentence).

14502(f) 40 App.:202(f). Pub. L. 89-4, title II, Sec.

202(f), as added Pub. L.

105-393, title II, Sec.

207(b), Nov. 13, 1998, 112

Stat. 3620.

14502(g) 40 App.:202(e).

--------------------------------------------------------------------

In subsection (c)(1)(A)(ii), the words "where the acquisition of

such facilities is the most cost-effective means for providing

increased health services" are omitted as unnecessary because of

the more narrow requirement that the Commission find that but for

the acquisition of the facility, the health services would not be

otherwise provided in the area served by the facility.

In subsection (f)(1), the words "After September 30, 1998" are

omitted as obsolete.

-REFTEXT-

REFERENCES IN TEXT

The Public Health Service Act, referred to in subsec. (c)(2), is

act July 1, 1944, ch. 373, 58 Stat. 682, as amended. Title VI of

the Act is classified generally to subchapter IV (Sec. 291 et seq.)

of chapter 6A of Title 42, The Public Health and Welfare. For

complete classification of this Act to the Code, see Short Title

note set out under section 201 of Title 42 and Tables.

The Developmental Disabilities Assistance and Bill of Rights Act

of 2000, referred to in subsec. (c)(2), is Pub. L. 106-402, Oct.

30, 2000, 114 Stat. 1677, as amended, which is classified

principally to chapter 144 (Sec. 15001 et seq.) of Title 42, The

Public Health and Welfare. For complete classification of this Act

to the Code, see Short Title note set out under section 15001 of

Title 42 and Tables.

The Social Security Act, referred to in subsec. (d)(3), (5), is

act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended, which is

classified generally to chapter 7 (Sec. 301 et seq.) of Title 42,

The Public Health and Welfare. Parts A and B of title IV of the Act

are classified generally to parts A (Sec. 601 et seq.) and B (Sec.

620 et seq.) of subchapter IV of chapter 7 of Title 42. Title XX of

the Act is classified generally to subchapter XX (Sec. 1397 et

seq.) of chapter 7 of Title 42. For complete classification of this

Act to the Code, see section 1305 of Title 42 and Tables.

-MISC2-

TERMINATION OF ADVISORY COMMITTEE

Advisory committees established after Jan. 5, 1973, to terminate

not later than the expiration of the 2-year period beginning on the

date of their establishment, unless, in the case of a committee

established by the President or an officer of the Federal

Government, such committee is renewed by appropriate action prior

to the expiration of such 2-year period, or in the case of a

committee established by the Congress, its duration is otherwise

provided by law. See section 14 of Pub. L. 92-463, Oct. 6, 1972, 86

Stat. 776, set out in the Appendix to Title 5, Government

Organization and Employees.

-End-

-CITE-

40 USC Sec. 14503 01/06/03

-EXPCITE-

TITLE 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS

SUBTITLE IV - APPALACHIAN REGIONAL DEVELOPMENT

CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS

SUBCHAPTER I - PROGRAMS

-HEAD-

Sec. 14503. Assistance for proposed low- and middle-income housing

projects

-STATUTE-

(a) Appalachian Housing Fund. -

(1) Establishment. - There is an Appalachian Housing Fund.

(2) Source and use of amounts in fund. - Amounts allocated to

the Secretary of Housing and Urban Development for the purposes

of this section shall be deposited in the Fund. The Secretary

shall use the Fund as a revolving fund to carry out those

purposes. Amounts in the Fund not needed for current operation

may be invested in bonds or other obligations the Federal

Government guarantees as to principal and interest. General

expenses of administration of this section may be charged to the

Fund.

(b) Purpose. - To encourage and facilitate the construction or

rehabilitation of housing to meet the needs of low- and

moderate-income families and individuals, the Secretary may make

grants and loans from the Fund, under terms and conditions the

Secretary may prescribe. The grants and loans may be made to

nonprofit, limited dividend, or cooperative organizations and

public bodies and are for planning and obtaining federally insured

mortgage financing or other financial assistance for housing

construction or rehabilitation projects for low- and

moderate-income families and individuals, in any area of the

Appalachian region the Appalachian Regional Commission establishes,

under -

(1) section 221 of the National Housing Act (12 U.S.C. 1715l);

(2) section 8 of the United States Housing Act of 1937 (42

U.S.C. 1437f);

(3) section 515 of the Housing Act of 1949 (42 U.S.C. 1485); or

(4) any other law of similar purpose administered by the

Secretary or any other department, agency, or instrumentality of

the Federal Government or a state government.

(c) Providing Amounts to States for Grants and Loans. - The

Secretary or the Commission may provide amounts to the States for

making grants and loans to nonprofit, limited dividend, or

cooperative organizations and public bodies for the purposes for

which the Secretary may provide amounts under this section.

(d) Loans. -

(1) Limitation on available amounts. - A loan under subsection

(b) shall not be more than 50 percent (or 80 percent for a

project to be carried out in a county for which a distressed

county designation is in effect under section 14526 of this

title) of the cost of planning and obtaining financing for a

project, including preliminary surveys and analyses of market

needs, preliminary site engineering and architectural fees, site

options, application and mortgage commitment fees, legal fees,

and construction loan fees and discounts.

(2) Interest. - A loan shall be made without interest, except

that a loan made to an organization established for profit shall

bear interest at the prevailing market rate authorized for an

insured or guaranteed loan for that type of project.

(3) Payment. - The Secretary shall require payment of a loan

made under this section, under terms and conditions the Secretary

may require, no later than on completion of the project. Except

for a loan to an organization established for profit, the

Secretary may cancel any part of a loan made under this section

on determining that a permanent loan to finance the project

cannot be obtained in an amount adequate for repayment of a loan

made under this section.

(e) Grants. -

(1) In general. - A grant under this section shall not be made

to an organization established for profit and, except as provided

in paragraph (2), shall not exceed 50 percent (or 80 percent for

a project to be carried out in a county for which a distressed

county designation is in effect under section 14526 of this

title) of expenses, incident to planning and obtaining financing

for a project, which the Secretary considers not to be

recoverable from the proceeds of a permanent loan made to finance

the project.

(2) Site development costs and offsite improvements. - The

Secretary may make grants and commitments for grants, and may

advance amounts under terms and conditions the Secretary may

require, to nonprofit, limited dividend, or cooperative

organizations and public bodies for reasonable site development

costs and necessary offsite improvements, such as sewer and water

line extensions, when the grant, commitment, or advance is

essential to the economic feasibility of a housing construction

or rehabilitation project for low- and moderate-income families

and individuals which otherwise meets the requirements for

assistance under this section. A grant under this paragraph for -

(A) the construction of housing shall not be more than 10

percent of the cost of the project; and

(B) the rehabilitation of housing shall not be more than 10

percent of the reasonable value of the rehabilitation housing,

as determined by the Secretary.

(f) Information, Advice, and Technical Assistance. - The

Secretary or the Commission may provide, or contract with public or

private organizations to provide, information, advice, and

technical assistance with respect to the construction,

rehabilitation, and operation by nonprofit organizations of housing

for low- or moderate- income families in areas of the region the

Commission establishes.

(g) Application of Certain Provisions. - Programs and projects

assisted under this section are subject to the provisions cited in

section 14701 of this title to the extent provided in the laws

authorizing assistance for low- and moderate-income housing.

-SOURCE-

(Pub. L. 107-217, Aug. 21, 2002, 116 Stat. 1268.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

14503(a) 40 App.:207(d). Pub. L. 89-4, title II, Sec.

207, as added Pub. L.

90-103, title I, Sec. 112,

Oct. 11, 1967, 81 Stat. 261;

Pub. L. 90-448, title II,

Sec. 201(f), Aug. 1, 1968,

82 Stat. 502; Pub. L.

91-123, title I, Sec. 106,

Nov. 25, 1969, 83 Stat. 215;

Pub. L. 92-65, title II,

Sec. 208, Aug. 5, 1971, 85

Stat. 169; Pub. L. 94-188,

title I, Sec. 113, Dec. 31,

1975, 89 Stat. 1082; Pub. L.

105-393, title II, Sec. 212,

Nov. 13, 1998, 112 Stat.

3621; Pub. L. 107-149, Sec.

13(e), Mar. 12, 2002, 116

Stat. 71.

14503(b) 40 App.:207(a).

14503(c) 40 App.:207(e)

(words after "areas

of the region").

14503(d) 40 App.:207(b).

14503(e) 40 App.:207(c).

14503(f) 40 App.:207(e)

(words before "and

may provide funds").

14503(g) 40 App.:207(f).

--------------------------------------------------------------------

Subsection (a)(1) is added for clarity and for consistency with

other titles of the United States Code.

In subsection (g), the words "notwithstanding such section" are

omitted as unnecessary.

-End-

-CITE-

40 USC Sec. 14504 01/06/03

-EXPCITE-

TITLE 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS

SUBTITLE IV - APPALACHIAN REGIONAL DEVELOPMENT

CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS

SUBCHAPTER I - PROGRAMS

-HEAD-

Sec. 14504. Telecommunications and technology initiative

-STATUTE-

(a) Projects To Be Assisted. - The Appalachian Regional

Commission may provide technical assistance, make grants, enter

into contracts, or otherwise provide amounts to persons or entities

in the region for projects -

(1) to increase affordable access to advanced

telecommunications, entrepreneurship, and management technologies

or applications in the region;

(2) to provide education and training in the use of

telecommunications and technology;

(3) to develop programs to increase the readiness of industry

groups and businesses in the region to engage in electronic

commerce; or

(4) to support entrepreneurial opportunities for businesses in

the information technology sector.

(b) Limitation on Available Amounts. - Not more than 50 percent

(or 80 percent in the case of a project to be carried out in a

county for which a distressed county designation is in effect under

section 14526 of this title) of the cost of any activity eligible

for a grant under this section may be provided from amounts

appropriated to carry out this section.

(c) Sources of Assistance. - Assistance under this section may be

provided entirely from amounts made available to carry out this

section, in combination with amounts made available under other

federal programs, or from any other source.

(d) Federal Share. - Notwithstanding any provision of law

limiting the federal share under any other federal program, amounts

made available to carry out this section may be used to increase

that federal share, as the Commission decides is appropriate.

-SOURCE-

(Pub. L. 107-217, Aug. 21, 2002, 116 Stat. 1270.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

14504(a) 40 App.:203(a). Pub. L. 89-4, title II, Sec.

203, as added Pub. L.

107-149, Sec. 5, Mar. 12,

2002, 116 Stat. 67.

14504(b) 40 App.:203(c).

14504(c) 40 App.:203(b)(1).

14504(d) 40 App.:203(b)(2).

--------------------------------------------------------------------

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 14703 of this title.

-End-

-CITE-

40 USC Sec. 14505 01/06/03

-EXPCITE-

TITLE 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS

SUBTITLE IV - APPALACHIAN REGIONAL DEVELOPMENT

CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS

SUBCHAPTER I - PROGRAMS

-HEAD-

Sec. 14505. Entrepreneurship initiative

-STATUTE-

(a) Business Incubator Service. - In this section, the term

"business incubator service" means a professional or technical

service necessary for the initiation and initial sustainment of the

operations of a newly established business, including a service

such as -

(1) a legal service, including aid in preparing a corporate

charter, partnership agreement, or basic contract;

(2) a service in support of the protection of intellectual

property through a patent, a trademark, or any other means;

(3) a service in support of the acquisition and use of advanced

technology, including the use of Internet services and Web-based

services; and

(4) consultation on strategic planning, marketing, or

advertising.

(b) Projects To Be Assisted. - The Appalachian Regional

Commission may provide technical assistance, make grants, enter

into contracts, or otherwise provide amounts to persons or entities

in the region for projects -

(1) to support the advancement of, and provide, entrepreneurial

training and education for youths, students, and businesspersons;

(2) to improve access to debt and equity capital by such means

as facilitating the establishment of development venture capital

funds;

(3) to aid communities in identifying, developing, and

implementing development strategies for various sectors of the

economy;

(4) to develop a working network of business incubators; and

(5) to support entities that provide business incubator

services.

(c) Limitation on Available Amounts. - Not more than 50 percent

(or 80 percent in the case of a project to be carried out in a

county for which a distressed county designation is in effect under

section 14526 of this title) of the cost of any activity eligible

for a grant under this section may be provided from amounts

appropriated to carry out this section.

(d) Sources of Assistance. - Assistance under this section may be

provided entirely from amounts made available to carry out this

section, in combination with amounts made available under other

federal programs, or from any other source.

(e) Federal Share. - Notwithstanding any provision of law

limiting the federal share under any other federal program, amounts

made available to carry out this section may be used to increase

that federal share, as the Commission decides is appropriate.

-SOURCE-

(Pub. L. 107-217, Aug. 21, 2002, 116 Stat. 1271.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

14505(a) 40 App.:204(a). Pub. L. 89-4, title II, Sec.

204, as added Pub. L.

107-149, Sec. 6, Mar. 12,

2002, 116 Stat. 68.

14505(b) 40 App.:204(b).

14505(c) 40 App.:204(d).

14505(d) 40 App.:204(c)(1).

14505(e) 40 App.:204(c)(2).

--------------------------------------------------------------------

-End-

-CITE-

40 USC Sec. 14506 01/06/03

-EXPCITE-

TITLE 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS

SUBTITLE IV - APPALACHIAN REGIONAL DEVELOPMENT

CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS

SUBCHAPTER I - PROGRAMS

-HEAD-

Sec. 14506. Regional skills partnerships

-STATUTE-

(a) Eligible Entity. - In this section, the term "eligible

entity" means a consortium that -

(1) is established to serve one or more industries in a

specified geographic area; and

(2) consists of representatives of -

(A) businesses (or a nonprofit organization that represents

businesses);

(B) labor organizations;

(C) State and local governments; or

(D) educational institutions.

(b) Projects To Be Assisted. - The Appalachian Regional

Commission may provide technical assistance, make grants, enter

into contracts, or otherwise provide amounts to eligible entities

in the region for projects to improve the job skills of workers for

a specified industry, including projects for -

(1) the assessment of training and job skill needs for the

industry;

(2) the development of curricula and training methods,

including, in appropriate cases, electronic learning or

technology-based training;

(3) the identification of training providers;

(4) the development of partnerships between the industry and

educational institutions, including community colleges;

(5) the development of apprenticeship programs;

(6) the development of training programs for workers, including

dislocated workers; and

(7) the development of training plans for businesses.

(c) Administrative Costs. - An eligible entity may use not more

than 10 percent of amounts made available to the eligible entity

under subsection (b) to pay administrative costs associated with

the projects described in subsection (b).

(d) Limitation on Available Amounts. - Not more than 50 percent

(or 80 percent in the case of a project to be carried out in a

county for which a distressed county designation is in effect under

section 14526 of this title) of the cost of any activity eligible

for a grant under this section may be provided from amounts

appropriated to carry out this section.

(e) Sources of Assistance. - Assistance under this section may be

provided entirely from amounts made available to carry out this

section, in combination with amounts made available under other

federal programs, or from any other source.

(f) Federal Share. - Notwithstanding any provision of law

limiting the federal share under any other federal program, amounts

made available to carry out this section may be used to increase

that Federal share, as the Commission decides is appropriate.

-SOURCE-

(Pub. L. 107-217, Aug. 21, 2002, 116 Stat. 1271.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

14506(a) 40 App.:205(a). Pub. L. 89-4, title II, Sec.

205, as added Pub. L.

107-149, Sec. 7, Mar. 12,

2002, 116 Stat. 69.

14506(b) 40 App.:205(b).

14506(c) 40 App.:205(c).

14506(d) 40 App.:205(e).

14506(e) 40 App.:205(d)(1).

14506(f) 40 App.:205(d)(2).

--------------------------------------------------------------------

-End-

-CITE-

40 USC Sec. 14507 01/06/03

-EXPCITE-

TITLE 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS

SUBTITLE IV - APPALACHIAN REGIONAL DEVELOPMENT

CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS

SUBCHAPTER I - PROGRAMS

-HEAD-

Sec. 14507. Supplements to federal grant programs

-STATUTE-

(a) Definition. -

(1) Federal grant programs. - In this section, the term

"federal grant programs" -

(A) means any federal grant program that provides assistance

for the acquisition or development of land, the construction or

equipment of facilities, or other community or economic

development or economic adjustment activities, including a

federal grant program authorized by -

(i) the Consolidated Farm and Rural Development Act (7

U.S.C. 1921 et seq.);

(ii) the Land and Water Conservation Fund Act of 1965 (16

U.S.C. 460l-4 et seq.);

(iii) the Watershed Protection and Flood Prevention Act (16

U.S.C. 1001 et seq.);

(iv) the Carl D. Perkins Vocational and Technical Education

Act of 1998 (20 U.S.C. 2301 et seq.);

(v) the Federal Water Pollution Control Act (33 U.S.C. 1251

et seq.) (known as the Clean Water Act);

(vi) title VI of the Public Health Services Act (42 U.S.C.

291 et seq.);

(vii) sections 201 and 209 of the Public Works and Economic

Development Act of 1965 (42 U.S.C. 3141, 3149);

(viii) title I of the Housing and Community Development Act

of 1974 (42 U.S.C. 5301 et seq.); and

(ix) part IV of title III of the Communications Act of 1934

(47 U.S.C. 390 et seq.); but

(B) does not include -

(i) the program for the construction of the development

highway system authorized by section 14501 of this title or

any other program relating to highway or road construction

authorized by title 23; or

(ii) any other program to the extent that financial

assistance other than a grant is authorized.

(2) Certain sewage treatment works deemed constructed with

federal grant assistance. - For the purpose of this section, any

sewage treatment works constructed pursuant to title II of the

Federal Water Pollution Control Act (33 U.S.C. 1281 et seq.)

(known as the Clean Water Act) without federal grant assistance

under that title is deemed to be constructed with that

assistance.

(b) Purpose. - To enable the people, States, and local

communities of the Appalachian region, including local development

districts, to take maximum advantage of federal grant programs for

which they are eligible but for which, because of their economic

situation, they cannot supply the required matching share, or for

which there are insufficient amounts available under the federal

law authorizing the programs to meet pressing needs of the region,

the Federal Cochairman may use amounts made available to carry out

this section -

(1) for any part of the basic federal contribution to projects

or activities under the federal grant programs authorized by

federal laws; and

(2) to increase the federal contribution to projects and

activities under the programs above the fixed maximum part of the

cost of the projects or activities otherwise authorized by the

applicable law.

(c) Certification Required. - For a program, project, or activity

for which any part of the basic federal contribution to the project

or activity under a federal grant program is proposed to be made

under subsection (b), the contribution shall not be made until the

responsible federal official administering the federal law

authorizing the contribution certifies that the program, project,

or activity meets the applicable requirements of the federal law

and could be approved for federal contribution under that law if

amounts were available under the law for the program, project, or

activity.

(d) Limitations in Other Laws Inapplicable. - Amounts provided

pursuant to this subtitle are available without regard to any

limitations on areas eligible for assistance or authorizations for

appropriation in any other law.

(e) Acceptance of Certain Material. - For a supplemental grant

for a project or activity under a federal grant program, the

Federal Cochairman shall accept any finding, report, certification,

or documentation required to be submitted to the head of the

department, agency, or instrumentality of the Federal Government

responsible for the administration of the program.

(f) Federal Share. - The federal portion of the cost of a project

or activity shall not -

(1) be increased to more than the percentages the Commission

establishes; nor

(2) be more than 80 percent of the cost.

(g) Maximum Commission Contribution. -

(1) In general. - Subject to paragraph (2), the Commission may

contribute not more than 50 percent of a project or activity cost

eligible for financial assistance under this section from amounts

appropriated to carry out this subtitle.

(2) Distressed counties. - The maximum Commission contribution

for a project or activity to be carried out in a county for which

a distressed county designation is in effect under section 14526

of this title may be increased to 80 percent.

-SOURCE-

(Pub. L. 107-217, Aug. 21, 2002, 116 Stat. 1272.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

14507(a) 40 App.:214(c). Pub. L. 89-4, title II, Sec.

214, Mar. 9, 1965, 79 Stat.

17; Pub. L. 90-103, title I,

Sec. 116, Oct. 11, 1967, 81

Stat. 263; Pub. L. 91-123,

title I, Sec. 107, Nov. 25,

1969, 83 Stat. 215; Pub. L.

91-258, title I, Sec.

52(b)(5), May 21, 1970, 84

Stat. 235; Pub. L. 92-65,

title II, Sec. 210, Aug. 5,

1971, 85 Stat. 171; Pub. L.

94-188, title I, Sec. 115,

Dec. 31, 1975, 89 Stat.

1083; Pub. L. 96-506, Sec.

3(4), Dec. 8, 1980, 94 Stat.

2746; Pub. L. 98-524, Sec.

4(e)(2), Oct. 19, 1984, 98

Stat. 2489; Pub. L. 104-208,

div. A, title I, Sec. 101(e)

[title VII, Sec. 709(a)(5)],

Sept. 30, 1996, 110 Stat.

3009-312; Pub. L. 105-332,

Sec. 3(g), Oct. 31, 1998,

112 Stat. 3126, Pub. L.

105-393, title II, Sec. 217,

Nov. 13, 1998, 112 Stat.

3622; Pub. L. 107-149, Sec.

13(c), (f), Mar. 12, 2002,

116 Stat. 71.

14507(b) 40 App.:214(a) (1st

sentence).

14507(c) 40 App.:214(a) (2d

sentence).

14507(d) 40 App.:214(a) (3d

sentence).

14507(e) 40 App.:214(a)

(last sentence).

14507(f) 40 App.:214(b)(1).

14507(g) 40 App.:214(b)(2).

--------------------------------------------------------------------

In subsection (a)(1)(A), before subclause (i), the words

"authorized by this Act or any other Act" are omitted as

unnecessary.

In subsection (a)(1)(B)(ii), the words "under this Act or any

other Act" and "a form of" are omitted as unnecessary.

In subsection (a)(2), the words "title II" are substituted for

"section 8(c)" because of the general amendment and revision of the

Federal Water Pollution Control Act by section 2 of the Federal

Water Pollution Control Act Amendments of 1972 (Public Law 92-500,

86 Stat. 816).

In subsection (g)(1), the words "after September 30, 1998" are

omitted as obsolete.

-REFTEXT-

REFERENCES IN TEXT

The Consolidated Farm and Rural Development Act, referred to in

subsec. (a)(1)(A)(i), is title III of Pub. L. 87-128, Aug. 8, 1961,

75 Stat. 307, as amended, which is classified principally to

chapter 50 (Sec. 1921 et seq.) of Title 7, Agriculture. For

complete classification of this Act to the Code, see Short Title

note set out under section 1921 of Title 7 and Tables.

The Land and Water Conservation Fund Act of 1965, referred to in

subsec. (a)(1)(A)(ii), is Pub. L. 88-578, Sept. 3, 1964, 78 Stat.

897, as amended, which is classified generally to part B (Sec.

460l-4 et seq.) of subchapter LXIX of chapter 1 of Title 16,

Conservation. For complete classification of this Act to the Code,

see Short Title note set out under section 460l-4 of Title 16 and

Tables.

The Watershed Protection and Flood Prevention Act, referred to in

subsec. (a)(1)(A)(iii), is act Aug. 4, 1954, ch. 656, 68 Stat. 666,

as amended, which is classified principally to chapter 18 (Sec.

1001 et seq.) of Title 16, Conservation. For complete

classification of this Act to the Code, see Short Title note set

out under section 1001 of Title 16 and Tables.

The Carl D. Perkins Vocational and Technical Education Act of

1998, referred to in subsec. (a)(1)(A)(iv), is Pub. L. 88-210, Dec.

18, 1963, 77 Stat. 403, as amended, which is classified generally

to chapter 44 (Sec. 2301 et seq.) of Title 20, Education. For

complete classification of this Act to the Code, see Short Title

note set out under section 2301 of Title 20 and Tables.

The Federal Water Pollution Control Act, referred to in subsec.

(a)(1)(A)(v), (2), is act June 30, 1948, ch. 758, as amended

generally by Pub. L. 92-500, Sec. 2, Oct. 18, 1972, 86 Stat. 816,

also known as the Clean Water Act, which is classified generally to

chapter 26 (Sec. 1251 et seq.) of Title 33, Navigation and

Navigable Waters. Title II of the Act is classified generally to

subchapter II (Sec. 1281 et seq.) of chapter 26 of Title 33. For

complete classification of this Act to the Code, see Short Title

note set out under section 1251 of Title 33 and Tables.

The Public Health Service Act, referred to in subsec.

(a)(1)(A)(vi), is act July 1, 1944, ch. 373, 58 Stat. 682, as

amended. Title VI of the Act is classified generally to subchapter

IV (Sec. 291 et seq.) of chapter 6A of Title 42, The Public Health

and Welfare. For complete classification of this Act to the Code,

see Short Title note set out under section 201 of Title 42 and

Tables.

The Housing and Community Development Act of 1974, referred to in

subsec. (a)(1)(A)(viii), is Pub. L. 93-383, Aug. 22, 1974, 88 Stat.

633, as amended. Title I of the Act is classified principally to

chapter 69 (Sec. 5301 et seq.) of Title 42, The Public Health and

Welfare. For complete classification of this Act to the Code, see

Short Title note set out under section 5301 of Title 42 and Tables.

The Communications Act of 1934, referred to in subsec.

(a)(1)(A)(ix), is act June 19, 1934, ch. 652, 48 Stat. 1064, as

amended. Part IV of title III of the Act is classified generally to

part IV (Sec. 390 et seq.) of subchapter III of chapter 5 of Title

47, Telegraphs, Telephones, and Radiotelegraphs. For complete

classification of this Act to the Code, see section 609 of Title 47

and Tables.

-End-

-CITE-

40 USC SUBCHAPTER II - ADMINISTRATIVE 01/06/03

-EXPCITE-

TITLE 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS

SUBTITLE IV - APPALACHIAN REGIONAL DEVELOPMENT

CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS

SUBCHAPTER II - ADMINISTRATIVE

-HEAD-

SUBCHAPTER II - ADMINISTRATIVE

-End-

-CITE-

40 USC Sec. 14521 01/06/03

-EXPCITE-

TITLE 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS

SUBTITLE IV - APPALACHIAN REGIONAL DEVELOPMENT

CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS

SUBCHAPTER II - ADMINISTRATIVE

-HEAD-

Sec. 14521. Required level of expenditure

-STATUTE-

A State or political subdivision of a State is not eligible to

receive benefits under this subtitle unless the aggregate

expenditure of state amounts, except expenditures for participation

in the Dwight D. Eisenhower System of Interstate and Defense

Highways and local and federal amounts, for the benefit of the area

within the State located in the Appalachian region is maintained at

a level which does not fall below the average level of those

expenditures for the State's last two full fiscal years prior to

March 9, 1965. In computing the level, a State's past expenditure

for participation in the Dwight D. Eisenhower System of Interstate

and Defense Highways and expenditures of local and federal amounts

shall not be included. The Commission shall recommend to the

President a lesser requirement when it finds that a substantial

population decrease in that part of a State which lies within the

region would not justify a state expenditure equal to the average

level of the last two years or when it finds that a State's average

level of expenditure in an individual program has been

disproportionate to the present need for that part of the State.

-SOURCE-

(Pub. L. 107-217, Aug. 21, 2002, 116 Stat. 1274.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

14521 40 App.:221. Pub. L. 89-4, title II, Sec.

221, Mar. 9, 1965, 79 Stat.

18; Pub. L. 90-103, title I,

Sec. 117, Oct. 11, 1967, 81

Stat. 263; Pub. L. 101-427,

Oct. 15, 1990, 104 Stat. 927.

--------------------------------------------------------------------

The words "or such Federal officer or officers as the President

may designate" are omitted because of 3:301.

-End-

-CITE-

40 USC Sec. 14522 01/06/03

-EXPCITE-

TITLE 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS

SUBTITLE IV - APPALACHIAN REGIONAL DEVELOPMENT

CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS

SUBCHAPTER II - ADMINISTRATIVE

-HEAD-

Sec. 14522. Consent of States

-STATUTE-

This subtitle does not require a State to engage in or accept a

program under this subtitle without its consent.

-SOURCE-

(Pub. L. 107-217, Aug. 21, 2002, 116 Stat. 1274.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

14522 40 App.:222. Pub. L. 89-4, title II, Sec.

222, Mar. 9, 1965, 79 Stat.

18.

--------------------------------------------------------------------

-End-

-CITE-

40 USC Sec. 14523 01/06/03

-EXPCITE-

TITLE 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS

SUBTITLE IV - APPALACHIAN REGIONAL DEVELOPMENT

CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS

SUBCHAPTER II - ADMINISTRATIVE

-HEAD-

Sec. 14523. Program implementation

-STATUTE-

(a) Requirements. - A program or project authorized under this

chapter shall not be implemented until -

(1) the responsible federal official has decided that

applications and plans relating to the program or project are not

incompatible with the provisions and objectives of federal laws

that the official administers that are not inconsistent with this

subtitle; and

(2) the Appalachian Regional Commission has approved the

program or project and has determined that it -

(A) meets the applicable criteria under section 14524 of this

title and the requirements of the development planning process

under section 14525 of this title; and

(B) will contribute to the development of the Appalachian

region.

(b) Decision Is Controlling. - A decision under subsection (a)(2)

is controlling and shall be accepted by the federal agencies.

-SOURCE-

(Pub. L. 107-217, Aug. 21, 2002, 116 Stat. 1274.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

14523 40 App.:223. Pub. L. 89-4, title II, Sec.

223, Mar. 9, 1965, 79 Stat.

18; Pub. L. 90-103, title I,

Sec. 118, Oct. 11, 1967, 81

Stat. 264; Pub. L. 94-188,

title I, Sec. 116, Dec. 31,

1975, 89 Stat. 1083.

--------------------------------------------------------------------

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 14502 of this title.

-End-

-CITE-

40 USC Sec. 14524 01/06/03

-EXPCITE-

TITLE 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS

SUBTITLE IV - APPALACHIAN REGIONAL DEVELOPMENT

CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS

SUBCHAPTER II - ADMINISTRATIVE

-HEAD-

Sec. 14524. Program development criteria

-STATUTE-

(a) Factors To Be Considered. - In considering programs and

projects to be given assistance under this subtitle, and in

establishing a priority ranking of the requests for assistance

presented to the Appalachian Regional Commission, the Commission

shall follow procedures that will ensure consideration of -

(1) the relationship of the project or class of projects to

overall regional development, including its location in a

severely and persistently distressed county or area;

(2) the population and area to be served by the project or

class of projects, including the per capita market income and the

unemployment rates in the area;

(3) the relative financial resources available to the State or

political subdivisions or instrumentalities of the State that

seek to undertake the project;

(4) the importance of the project or class of projects in

relation to other projects or classes of projects that may be in

competition for the same amounts;

(5) the prospects that the project for which assistance is

sought will improve, on a continuing rather than a temporary

basis, the opportunities for employment, the average level of

income, or the economic and social development of the area served

by the project; and

(6) the extent to which the project design provides for

detailed outcome measurements by which grant expenditures may be

evaluated.

(b) Limitation on Use. - Financial assistance made available

under this subtitle shall not be used to assist establishments

relocating from one area to another.

(c) Determination Required Before Amounts May Be Provided. -

Amounts may be provided for programs and projects in a State under

this subtitle only if the Commission determines that the level of

federal and state financial assistance under other laws for the

same type of programs or projects in that part of the State within

the Appalachian region will not be diminished in order to

substitute amounts authorized by this subtitle.

(d) Minimum Amount of Assistance to Distressed Counties and

Areas. - For each fiscal year, not less than 50 percent of the

amount of grant expenditures the Commission approves shall support

activities or projects that benefit severely and persistently

distressed counties and areas.

-SOURCE-

(Pub. L. 107-217, Aug. 21, 2002, 116 Stat. 1275.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

14524(a) 40 App.:224(a). Pub. L. 89-4, title II, Sec.

224(a), Mar. 9, 1965, 79

Stat. 18; Pub. L. 90-103,

title I, Sec. 119(a), Oct.

11, 1967, 81 Stat. 264; Pub.

L. 105-393, title II, Sec.

218(a), (b), Nov. 13, 1998,

112 Stat. 3622; Pub. L.

107-149, Secs. 8(a), 13(g),

Mar. 12, 2002, 116 Stat. 70,

72.

14524(b) 40 App.:224(b). Pub. L. 89-4, title II, Sec.

224(b), Mar. 9, 1965, 79

Stat. 19; Pub. L. 90-103,

title I, Sec. 119(b), Oct.

11, 1967, 81 Stat. 264; Pub.

L. 105-393, title II, Sec.

218(c), Nov. 13, 1998, 112

Stat. 3623.

14524(c) 40 App.:224(c). Pub. L. 89-4, title II, Sec.

224(c), as added Pub. L.

94-188, title I, Sec. 117,

Dec. 31, 1975, 89 Stat. 1084.

14524(d) 40 App.:224(d). Pub. L. 89-4, title II, Sec.

224(d), as added Pub. L.

107-149, Sec. 8(b), Mar. 12,

2002, 116 Stat. 70.

--------------------------------------------------------------------

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 14523 of this title.

-End-

-CITE-

40 USC Sec. 14525 01/06/03

-EXPCITE-

TITLE 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS

SUBTITLE IV - APPALACHIAN REGIONAL DEVELOPMENT

CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS

SUBCHAPTER II - ADMINISTRATIVE

-HEAD-

Sec. 14525. State development planning process

-STATUTE-

(a) State Development Plan. - Pursuant to policies the

Appalachian Regional Commission establishes, each state member

shall submit a development plan for the area of the State within

the Appalachian region. The plan shall -

(1) be submitted according to a schedule the Commission

prescribes;

(2) reflect the goals, objectives, and priorities identified in

the regional development plan and in any subregional development

plan that may be approved for the subregion of which the State is

a part;

(3) describe the state organization and continuous process for

Appalachian development planning, including -

(A) the procedures established by the State for the

participation of local development districts in the process;

(B) how the process is related to overall statewide planning

and budgeting processes; and

(C) the method of coordinating planning and projects in the

region under this subtitle, the Public Works and Economic

Development Act of 1965 (42 U.S.C. 3121 et seq.), and other

federal, state, and local programs;

(4) set forth the goals, objectives, and priorities of the

State for the region, as established by the Governor, and

identify the needs on which the goals, objectives, and priorities

are based; and

(5) describe the development strategies for achieving the

goals, objectives, and priorities, including funding sources, and

recommendations for specific projects to receive assistance under

this subtitle.

(b) Areawide Action Programs. - The Commission shall encourage

the preparation and execution of areawide action programs that

specify interrelated projects and schedules of actions, the

necessary agency funding, and other commitments to implement the

programs. The programs shall make appropriate use of existing plans

affecting the area.

(c) Local Development Districts. - Local development districts

certified by the State as described in section 14102(a)(2) of this

title provide the linkage between state and substate planning and

development. The districts shall assist the States in the

coordination of areawide programs and projects and may prepare and

adopt areawide plans or action programs. In carrying out the

development planning process, including the selection of programs

and projects for assistance, States shall consult with local

development districts, local units of government, and citizen

groups and shall consider the goals, objectives, priorities, and

recommendations of those bodies.

(d) Federal Responsibilities. - To the maximum extent

practicable, federal departments, agencies, and instrumentalities

undertaking or providing financial assistance for programs or

projects in the region shall -

(1) take into account the policies, goals, and objectives the

Commission and its member States establish pursuant to this

subtitle;

(2) recognize Appalachian state development strategies approved

by the Commission as satisfying requirements for overall economic

development planning under the programs or projects; and

(3) accept the boundaries and organization of any local

development district certified under this subtitle that the

Governor may designate as the areawide agency required under any

of those programs undertaken or assisted by those federal

departments, agencies, and instrumentalities.

-SOURCE-

(Pub. L. 107-217, Aug. 21, 2002, 116 Stat. 1275.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

14525(a) 40 App.:225(a). Pub. L. 89-4, title II, Sec.

225, as added Pub. L.

94-188, title I, Sec. 118,

Dec. 31, 1975, 89 Stat.

1084; Pub. L. 107-149, Sec.

13(h), Mar. 12, 2002, 116

Stat. 72.

14525(b) 40 App.:225(b)(2).

14525(c) 40 App.:225(b)(1).

14525(d) 40 App.:225(c).

--------------------------------------------------------------------

-REFTEXT-

REFERENCES IN TEXT

The Public Works and Economic Development Act of 1965, referred

to in subsec. (a)(3)(C), is Pub. L. 89-136, Aug. 26, 1965, 79 Stat.

552, as amended, which is classified principally to chapter 38

(Sec. 3121 et seq.) of Title 42, The Public Health and Welfare. For

complete classification of this Act to the Code, see Short Title

note set out under section 3121 of Title 42 and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 14523 of this title.

-End-

-CITE-

40 USC Sec. 14526 01/06/03

-EXPCITE-

TITLE 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS

SUBTITLE IV - APPALACHIAN REGIONAL DEVELOPMENT

CHAPTER 145 - SPECIAL APPALACHIAN PROGRAMS

SUBCHAPTER II - ADMINISTRATIVE

-HEAD-

Sec. 14526. Distressed and economically strong counties

-STATUTE-

(a) Designations. -

(1) In general. - The Appalachian Regional Commission, in

accordance with criteria the Commission may establish, each year

shall -

(A) designate as "distressed counties" those counties in the

Appalachian region that are the most severely and persistently

distressed; and

(B) designate two categories of economically strong counties,

consisting of -

(i) "competitive counties", which shall be those counties

in the region that are approaching economic parity with the

rest of the United States; and

(ii) "attainment counties", which shall be those counties

in the region that have attained or exceeded economic parity

with the rest of the United States.

(2) Annual review of designations. - The Commission shall -

(A) conduct an annual review of each designation of a county

under paragraph (1) to determine if the county still meets the

criteria for the designation; and

(B) renew the designation for another one-year period only if

the county still meets the criteria.

(b) Distressed Counties. - In program and project development and

implementation and in the allocation of appropriations made

available to carry out this subtitle, the Commission shall give

special consideration to the needs of counties for which a

distressed county designation is in effect under this section.

(c) Economically Strong Counties. -

(1) Competitive counties. - Except as provided in paragraphs

(3) and (4), assistance under this subtitle for a project that is

carried out in a county for which a competitive county

designation is in effect under this section shall not be more

than 30 percent of the project cost.

(2) Attainment counties. - Except as provided in paragraphs (3)

and (4), amounts may not be provided under this subtitle for a

project that is carried out in a county for which an attainment

county designation is in effect under this section.

(3) Exceptions. - Paragraphs (1) and (2) do not apply to -

(A) a project on the Appalachian development highway system

authorized by section 14501 of this title;

(B) a local development district administrative project

assisted under section 14321(a)(1)(A) of this title; or

(C) a multicounty project that is carried out in at least two

counties designated under this section if -

(i) at least one of the participating counties is

designated as a distressed county under this section; and

(ii) the project will be of substantial direct benefit to

at least one distressed county.

(4) Waiver. -

(A) In general. - The Commission may waive the requirements

of paragraphs (1) and (2) for a project when the recipient of

assistance for the project shows the existence of any of the

following:

(i) a significant pocket of distress in the part of the

county in which the project is carried out.

(ii) a significant potential benefit from the project in at

least one area of the region outside the designated county.

(B) Reports to congress. - The Commission shall submit to the

Committee on Environment and Public Works of the Senate and the

Committee on Transportation and Infrastructure of the House of

Representatives an annual report describing each waiver granted

under subparagraph (A) during the period covered by the report.

-SOURCE-

(Pub. L. 107-217, Aug. 21, 2002, 116 Stat. 1277.)

-MISC1-

HISTORICAL AND REVISION NOTES

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Revised Source (U.S. Code) Source (Statutes at Large)

Section

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14526 40 App.:226. Pub. L. 89-4, title II, Sec.

226, as added Pub. L.

105-393, title II, Sec. 219,

Nov. 13, 1998, 112 Stat.

3623.

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In subsection (a)(1), before clause (A), the words "Not later

than 90 days after November 13, 1988" are omitted as obsolete.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 14321, 14502, 14503,

14504, 14505, 14506, 14507 of this title.

-End-