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[79 STAT.

" W A R R A N T OFFICERS Years of service computed under section 205

•'Pay grade 2 or less •\V-4.. W-3 W-2 W-1

$435.60 396.00 346.60 288.90

Over 2

Over 3

Over 4

Over 6

Over 8

Over 10

$467.10 429.30 375.00 331.50

$467.10 429.30 375.00 331.50

$477.90 434.70 385.80 358.80

$499.80 440.10 407.40 375.00

$521.40 472.60 429.30 391.20

$543.00 499.80 445.50 407. 40

Over 14

-

Over 16

Over 18

Over 20

Over 22

Over 26

$608.40 532.20 477.90 440.10

-

---

$581.40 516.00 461.70 423.90

Years of service computed under section 205

"Pay grade

\V-4 \V-3 W-2 W-1

Over 12

$630.30 548.40 494.40 456.30

$646.50 565.20 510.60 472.50

$668.10 586.80 526.80 489.00

$690.00 608.40 648.40 489.00

$744. 00 630.30 548.40 489.00

Over 30 $744.00 630.30 648.40 489.00

'ENLISTED M E M B E R S Years of service computed under section 205

" P a y grade 2 or less E-9 E-8 E-7 E-6 E-6 E-4 --E-3 E-2 El E-1 (under 4 months)

-

Over 2

$261.00 225.00 194.10 163.50 117.90 97.50 93.90

$312.90 273.00 239.10 204.90 164.70 136.50 125.10

Over 3

$324.30 284.40 260.50 216.00 176.40 136.50 125.10

Over 4

$335.70 296.80 261.60 233.10 187.80 136.60 125.10

Over 6

$347. io 307.50 278. 70 244.80 187.80 136.50 126.10

Over 8

Over 10

$415.20 358.20 318.60 290.10 244.80 187.80 136.50 125.10

$494.70 426.60 369.60 330.00 301.60 244.80 187.80 136.60 125.10

Years of service computed under section 205 Over 14

P a y and allowa n c e s, annual review. 76 Stat. 489.

Report to Congress.

Report to Congress.

$506.10 438.00 381.30 347.10 312.90 244.80 187.80 136.50 125.10

87.90

"Pay grade

E-9 E-8 E-7 E-6-E-5 E-4 E-3 E-2 E-1

Over 12

---

-

Over 16

Over 18

Over 20

Over 22

$517.80 449.40 398.40 358.20 318.60 244.80 187.80 136. 50 125.10

$629.20 460.80 409.60 369.60 318.60 244.80 187. 8C 136.60 125.10

$540.60 472.20 420.90 376.60 318.60 244.80 187.80 136. 50 126.10

$561. 70 483.60 426. 60 375. 60 318.60 244.80 187.80 136.50 126.10

$580.50 512.10 465.10 375.60 318.60 244.80 187.80 136.50 126.10

Over 26

Over 30

$636.90 $636.90 568.80 568.80 512.10 612.10 376.60 375.60 318. 60 318.60 244.80 244.80 187.80 187.80 136. 50 136.50 125.10 125.10."

SEC. 2. (a) Chapter 19, title 37, United States Code, is amended by adding the following new section at the end thereof: ^'§1008. Presidential recommendations concerning adjustments and changes in pay and allowances " (a) The President shall direct an annual review of the adequacy of the pays and allowances authorized by this title for members of the uniformed services. Upon completion of this review, but not later than March 81 of each year, the President shall submit to Congress a detailed report summarizing the results of such annual review together with any recommendations for adjustments in the lates of pay and allowances authorized by this title. " (b) "Ulienever the President considers it appropriate, but in no event later than January 1, 1967, and not less than once each four years thereafter, he shall direct a complete reA'iew of the principles and concepts of the compensation system for members of the uniformed services. Upon completion of such rcA'iew he shall submit a detailed report to Congress summarizing the results of such review

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together with any recommendations lie may have proposing changes in the statutory salary system and other elements of the compensation structure provided members of the uniformed services." (b) The chapter analysis of chapter 19, title 37, f n i t e d States Code, is amended by adding the following new item: ••1008. Presidential recommendations concerning adjustments and changes in pay and allowances."

SEC. 8. Section 308 of title 37, United States Code, is amended by adding the following: " (g) Lender regulations to be prescribed by the Secretary of Defense, or the Secretary of the Treasury with respect to the Coast Guard when it is not operating as a service in the Navy, a member who is designated as havnig a critical military skill and who is entitled to a bonus computed under subsection (a) of this section upon his first reenlistment may be paid an additional amount not more than four times the amount of that bonus. The additional amount shall be paid in equal yearly installments in each year of the reenlistment period. However, in meritorious cases the additional amount may be paid in fewer installments if the Secretary concerned determines it to be in the best interest of the members. An amount paid under this subsection does not count against the limitation prescribed by subsection (c) of this section on the total amount that may be paid under this section.*SEC. 4. Section 310(a) of title 37, L'^'nited States Code, is amended by striking out "$55" and inserting in place thereof "$65". SEC. 5. (a) The retired pay or retainer pay of a member or former member of a uniformed service who is entitled to that pay computed under rates of bjisic pay in effect before the effective date of this Act f^hall be increased, effective that date, by the per centum (adjusted to the nearest one-tenth of 1 per centum) that the Consumer Price Index (all items—United States city average), published by the Bureau of Labor Statistics, for the calendar month immediately preceding the effective date of this Act has increased over the average monthly index for calendar year 1962. (b) Section 1401a(b) of title 10, United States Code, is amended to read as follows: " (b) The Secretary of Defense shall determine the per centum that the Consumer Price Index for each calendar month after the calendar month immediately preceding the effective date of this Act has increased over the base Consumer Price Index (that for the calendar month immediately preceding the effective date of this Act or, if later, that used as the basis for the most recent adjustment of retired pay and retainer pay under this subsection). If the Secretary determines that, for three consecutive calendar months, the index has shown an increase of at least 3 per centum over the base index, the retired pay and retainer pay of members or fonner members of the Armed Forces who became entitled to that pay before the first day of the third calendar month beginning after the expiration of those three months ^hall be increased, effective that day, by the highest per centum of increase in the index during those three months, a,djusted to the nearest one-tenth of 1 per centum." SEC. 6. Column 1 of formula 1 and column 1 of formula 2 of section 1401 of title 10, United States Code, are each amended by striking out ", increased, for members credited with two or less year's of service for basic pay purposes, by 6%". SEC. 7. Notwithstanding any other provision of law, a member of an armed force who was entitled to pay and allowances under any of the following provisions of law on the day before the effective date of this Act shall continue to receive the pay and allowances to which he was entitled on that d a y:

Critical military s k i l l s, additional bonus. 76 Stat. 467,

Hostile fire pay. 77 Stat. 216. Retired pay, increase.

Consumer P r i c e Index, i n c r e a s e s. 77 Stat. 213.

70A Stat. 106; 72 Stat. 129. Continuation provision.

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Savings provision. 72 Stat. 1127; 77 Stat. 17, 223.

Free p o s t a g e. 70A Stat. 80.

PUBLIC LAW 89-133-AUG. 23, 1965

[79 STAT.

(1) The Act of March 23, 1946, chapter 112 (60 Stat. 59). (2) The Act of June 26, 1948, chapter 677 (62 Stat. 1052). (3) The Act of September 18, 1950, chapter 952 (64 Stat. A224). SEC. 8. The enactment of this Act does not reduce— (1) the rate of dependency and indemnity compensation under section 411 of title 38, United States Code, that any person was receiving on the day before the effective date of this Act or which thereafter becomes payable for that day by reason of a subsequent determination; or (2) the basic pay or the retired pay or retainer pay to which a member or former member of a uniformed service was entitled on the day before the effective date of this Act. SEC. 9. (a) Chapter 53 of title 10, United States Code (relating to miscellaneous rights and benefits of members of the Armed Forces), is amended by adding at the end thereof the following new section: "§ 1040. Free postage from combat zones "Any first-class mail matter admissible to the mails as ordinary mail matter which is sent by any member of the Armed Forces from— " (1) Vietnam, until such time as the President determines that Vietnam is no longer an area in which members of the Armed Forces are engaged in combat, and " (2) any other area or areas in which the President determines members of the Armed Forces are engaged in combat, to any person in the United States (including Puerto Rico or any possession of the United States) shall be transmitted in the mails free of postage, subject to such regulations as the Secretary of Defense may prescribe after consultation with the Postmaster General." (b) The analysis of such chapter 53 is amended by adding at the end thereof the following:
 * '1040. Free postage from combat zones."

Effective date.

SEC. 10. This Act becomes effective on the first day of the first calendar month beginning after the date of enactment of this Act. Approved August 21, 1965.

Public Law 89-133 JOINT RESOLUTION [s. J. Res. 100] rj^^ provide for the designation of the period from August 31 through September (? in 1J>6.'). as "National American Legion Basdnill Week".

Whereas a nationwide organization of American Legion junior baseball was first proposed as a program of service to the youth of America at the annual department convention of the American Legion held in Milbank, South Dakota, in 1925: and Whereas, since the organization of this program, which has been established throughout the United States, there have been more than fifteen million youths of eighteen years of age and under who have participated in the program; and Whereas the American Legion junior baseball program performs a vital service to our youth by offering them outstanding opportunities to acquire physical fitness, to develop personal responsibility and good citizenship, to learn the value of teamwork and mutual cooperation, as Avell as to acquire individual proficiency and an opportunity to advance to a professional career in the sport of baseball; and

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Collier's New Encyclopedia (1921)/Franz, Robert

FRANZ, ROBERT, a German musician; born in Halle, Prussia, June 28, 1815. He was famous for his songs, which were of a peculiar lyric beauty. His first published composition appeared in 1843. The latter years of his life were spent in editing the works of Bach, Handel, etc. He died in Halle, Oct. 24, 1892.


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PUBLIC LAW 89-134-AUG. 24, 1965

"Whereas the annual American Legion World Series for 1965 Avill be held at Aberdeen, South Dakota, during the period from August 31 through September 6: Now, therefore, be it Resolved by the Senate and Home of Representatives of the United States of America in Congress as.semb?ed. That, in honor of the fortieth c aNational Amerin Legion B a s e anniversary of the founding of the American Legion baseball program, ball Week. the President is authorized and requested to issue a proclamation des- Proclamation. ignating the period from August 31 through September 6 in 1965, as "National American Legion Baseball Week", and inviting the Governors of the several States to issue similar proclamations. Approved August 23, 1965. Public Law 89-134 AN ACT To aniwul further the Peace Corps Act (75 Stat. 612), as amended, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 3(b) of the Peace Corps Act, as amended, which authorizes appropriations to carry out the purposes of that Act, is amended by striking out "1965" and substituting "1966*', and by inserting before the period at the end thereof a comma and the following: "of which not to exceed $500,000 shall be available for carrying out research". SEC, 2. Section 5 of the Peace Corps Act, as amended, which relates to Peace Corps volunteers, is amended as follows: (a) Subsection (c) is amended by adding at the end thereof a new sentence as follows: "For purposes of the Internal Revenue Code of 1954 (26 U.S.C.), a volunteer shall be deemed to be paid and to receive each amount of a readjustment allowance to which he is entitled after December 31, 1964, when such amount is transferred from funds made available under this Act to the fund from which such readjustment allowance is payable." ^b) I n subsection (e): (1) In the first sentence, strike out "and such health examinations and immunization preparatory to their service," and substitute therefor "applicants for enrollment shall receive such health examinations preparatory to their service, applicants for enrollment who have accepted an invitation to begin a period of training under section 8(a) of this Act shall receive such immunization and dental care preparatory to their service, and former volunteers shall receive such health examinations within six months after termination of their sendee,". (2) I n the second sentence, strike out ", examinations, and immunization" and strike out "for volunteers". (c) In the first proviso of subsection (g), strike out "one" and substitute therefor "two" and strike out "in the aggregate". (d) In subsection (h), immediately after "(5 LLS.C. 73b-5)," insert "the Act of December 23, 1944, chapter 716, section 1, as amended (31 U.S.C. 492a),". SEC. 3. In section 6(3) of the Peace Corps Act, as amended, which relates to the provision of health care to the spouses and minor children of A'olunteer leaders, immediately after "accompanying them" insert ", and a married volunteer's child if born during the volunteer's service,". SEC. 4. Section 7 of the Peace Corps Act, as amended, which relates to Peace Corps employees, is amended as follows:

August 24, 1965 [S. 2054]

P e a c e Corps Act, amendment. 78 Stat. 166. 22 USC 2502.

Volunteers. 77 Stat. 359. 22 USC 2504.

68A Stat. 3.

75 Stat. 616. 22 USC 2507.

77 Stat. 360.

67 Stat. 6 1. Dependents, health care. 22 USC 2505.

Employees. 22 USC 2506.

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[79 STAT.

(a) Strike out subsections (a) and (b). (b) Redesignate subsection (c) as subsection (a) and in the subsection as I'edesignated: (1) In the introductory phrase: (A) Insert " (1) " immediately before "For the purpose of". (B) Strike out "—" immediately after "may". (2) I n paragraph (1) strike out " (1) ". (3) I n paragraph (2): (A) Amend the first sentence to read as follows: "The President may utilize such authority contained in the Foreign 60 Stat. 999. Service Act of 1946, as amended, relating to Foreign Service 22 USC 801 note. Rcserve officers. Foreign Sendee staff officers and employees, alien clerks and employees, and other United States Government officers and employees apart from Foreign Service officers as he deems necessary to carry out functions under this Act; except that (A) no Foreign Service Reserve or staff appointment or assignment under this paragraph shall be for a period of more than five years unless the Director of the Peace Corps, under special circumstances, personally approves an extension of not more than one year on an individual basis; and (B) no person whose Foreign Service Reserve or staff appointment or assignment under this paragraph has been terminated shall be reappointed or reassigned under this paragraph before the expiration of a period of time equal to his preceding tour of duty." (B) Strike out in the second sentence thereof "the Foreign Service Act of 1946" and insert in lieu thereof "that Act". (C) I n the first proviso in the second sentence thereof strike out "of" immediately after "the period of the appointment" and insert in lieu thereof "or". (D) Insert immediately after "may prescribe" in the second proviso thereof ": Provided further, That under such regulations as the President may prescribe persons who are to perforin duties of a more routine nature than are generally performed by Foreign Service staff officers and emjHoyees of class 10 may be appointed to an unenumerated class of Foreign Service staff officers and employees ranking below class 10 and be paid basic compensation at rates lower than those of class 10." 22 USC 2'5o'6 (^) ^" Paragraph (3): ^ (A) Strike out "specify" and insert 111 lieu thereof: "The President may specify what additional compensation authorized by section 207 of the Independent Offices Appropria62 Stat. 1205. ^lou Act, 1949, as amended (5 U.S.C. 118h), and". (B) Strike out " (c) " and insert in lieu thereof " (a) ". (C) Strike out "that Act" and insert in lieu thereof "those Acts". (c) Redesignate subsection (d) as subsection (b) and in that sub?rection as redesignated: (1) Immediately after "or assigned" insert "for the purpose of performing functions under this Act outside the Ignited States". (2) Strike out "subsection (c)(2) " and insert in lieu thereof "subsection (a)(2) ". (d) Redesignate subsection (e) as subsection (c) and in the second sentence of that subsection as redesignated strike out " (e) " and insert in lieu thereof " (a) ".

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SEC. 5. (a) Section 4 of this Act shall not become effective until the Effective date. first day of the fourth pay period which begins after the date this Act becomes law. (b) Under such regulations as the President may prescribe, each Domestic-based person employed under authorities repealed by section 4(a) of this *^x^a^sferof Act immediately prior to the effective date of that section shall effec- pos'itrons! ° tive on that date be appointed a Foreign Service Reserve officer or Foreign Service staff officer or employee under the authority of section T(a)(2) of the Peace Corps Act, as amended, and appointed or assigned to an appropriate class thereof; except that— (1) no person who holds a career or career-conditional appointment immediately prior to the effective date of section 4(a) of this Act shall, without his consent, he so appointed until three years after such effective date; and (2) each person so appointed who, immediately prior to the effective date of section 4(a) of this Act, held a career or careerconditional appointment at grade 8 or below of the General Schedule established by the Classification Act of 1949, as amended, Post, p. 1111. 5 USC 1113. shall receive an appointment for the duration of operations under the Peace Corps Act, as amended. Each person appointed under this subsection shall receive basic compensation at the rate of his class determined by the President to be appropriate, but the rate of basic compensation received by such person immediately prior to the effective date of his appointment under this subsection shall not be reduced by the provisions of this subsection. SEC. 6. In section 10(a)(3) of the Peace Corps Act, as amended, Gifts,^ 75 Stat. 617: which relates to acceptance, employment, and transfer of gifts, imme- 77 Stat.°'36o! diately after "and transfer such*' insert "money or". 22 USC 2509. SEC. 7. In the second sentence of section 15(c) of the Peace Corps Act, as amended, which relates to training of employees, strike out ^^ ^^^ ^SH. '*Sucli training shall not be considered employment or liolding of office under section 2 of the Act of July 31, 1894, as amended (5 rr.S.C. (•)2), and any" and substitute therefor "Any". ^^ ^*^*- 4^2. Approved August 24, 1965. Public Law 89-135 AN ACT To amend section 271 of the Atomic Energy Act of lOoi, ns amended.

August 24, 1965 [H. R. 8856]

Be If enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 271 of Ac't*of"i''5^4"'^'^^^ the Atomic Energy Act of 1954, as amended, is amended to read as ment! ^ ' ^'"^"'^" follows: " SEC. 271. AGENCY JURISDICTION.—Nothing

in this Act shall be constnied to affect the authority or regulations of any Federal, State, or local agency with respect to the generation, sale, or transmission of electric power produced through the use of nuclear facilities licensed by the Commission: Provided, That this section shall not be deemed to confer upon any Federal, State, or local agency any authority to regulate, control, or restrict any activities of the Commission.*' Approved August 24, 1965.

68 Stat. 960. 42 USC 2018.

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PUBLIC LAW 89-136-AUG. 26, 1965

[79 STAT.

Public Law 89-136 August 26, 1965 [S. 1648]

P u b l i c Works and Economic Development Act of 1965.

AN ACT To provide grants for public works and development facilities, other financial assistance and the planning and coordination needed to alleviate conditions of substantial and persistent unemployment and underemployment in economically distressed areas and regions.

Be it enacted by the Senate and House of Rein-eHentat'tves of the United States of America in Congress assembled, That this Act may be cited as the "Public Works and Economic Development Act of 1965". STATEMENT OF PURPOSE

SEC. 2. The Congress declares that the maintenance of the national economy at a high level is vital to the best interests of the United States, but that some of our regions, counties, and communities are suffering substantial and persistent unemployment and underemployment; that such unemployment and underemployment cause hardship to many individuals and their families, and waste invaluable human resources; that to overcome this problem the Federal Government, in cooperation with the States, should help areas and regions of substantial and persistent unemployment and underemployment to take effective steps in planning and financing their public works and economic development; that Federal financial assistance, including grants for public works and development facilities to communities, industries, enterprises, and individuals in areas needing development should enable such areas to help themselves achieve lasting improvement and enhance the domestic prosperity by the establishment of stable and diversified local economies and improved local conditions, provided that such assistance is preceded by and consistent with sound, longrange economic planning; and that under the provisions of this Act new employment opportunities should be created by developing and expanding new and existing public works and other facilities and resources rather than by merely transferring jobs from one area of the United States to another. TITLE I—GRANTS FOR P U B L I C W O R K S AND DEVELOPMENT FACILITIES SEC. 101. (a) Upon the application of any State, or political subdivision thereof, Indian tribe, or private or public nonprofit organization or association representing any redevelopment area or part thereof, the Secretary of Commerce (hereinafter referred to as the Secretary) is authorized— (1) to make direct grants for the acquisition or development of land and improvements for public worksj public service, or development facility usage, and the acquisition, construction, rehabilitation, alteration, expansion, or improvement of such facilities, including related machinery and equipment, within a redevelopment area, if he finds that— (A) the project for which financial assistance is sought will directly or indirectly (i) tend to improve the opportunities, in the area where such project is or will be located, for the successful establishment or expansion of industrial or commercial plants or facilities, (ii) otherwise assist in the creation of additional long-term employment opportunities for such area, or (iii) primarily benefit the long-term unemployed and members of low-income families or otherwise

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substantially further the objectives of the Economic Opportunity Act of 1964; 78 Stat. sos. (B) the project for which a grant is requested will fulfill ^J^/^^^ ^^*^^ a pressing need of the area, or part thereof, in which it is, or will be, located; and (C) the area for which a project is to be undertaken has an approved overall economic development program as provided in section 202(b) (10) and such project is consistent with such program; (2) to make supplementary grants in order to enable the States and other entities within redevelopment areas to take maximum advantage of designated Federal grant-in-aid programs (as hereinafter defined), direct grants-in-aid authorized under this section, and Federal grant-in-aid programs authorized by the Watershed Protection and Flood Prevention Act (68 Stat. 666, as amended), and the eleven watersheds authorized by the Flood ^ote "^*^ ^°°^ Control Act of December 22, 1944, as amended and supplemented (58 Stat. 887), for which they are eligible but for which, because ^^^s^^sc yori of their economic situation, they cannot supply the required et seq. matching share. (b) Subject to subsection (c) hereof, the amount of any direct grant under this section for any project shall not exceed 50 per centum of the cost of such project. (c) The amount of any supplementary grant under this section for any project shall not exceed the applicable percentage established by regulations promulgated by the Secretary, but in no event shall the non-Federal share of the aggregate cost of any such project (including assumptions of debt) be less than 20 per centum of such cost. Supplementary grants shall be made by the Secretary, in accordance with such regulations as he shall prescribe, by increasing the amounts of direct grants authorized under this section or by the payment of funds appropriated under this Act to the heads of the departments, agencies, and instrumentalities of the Federal Government responsible for the administration of the applicable Federal programs. Notwithstanding any requirement as to the amount or sources of non-Federal funds that may otherwise be applicable to the Federal program involved, funds provided under this subsection shall be used for the sole purpose of increasing the Federal contribution to specific projects in redevelopment areas under such programs abo\e the fixed maximum portion of the cost of such project otherwise authorized by the applicable law. The term "designated Federal grant-in-aid programs," as used in this subsection, means such existing or future Federal grant-in-aid programs assisting in the construction or equipping of facilities as the Secretary may, in furtherance of the purposes of this Act, designate as eligible for allocation of funds under this section. In determniing the amount of any supplementary grant available to any project under this section, the Secretary shall take into consideration the relative needs of the area, the nature of the project to be assisted, and the amount of such fair user charges or other revenues as the project may reasonably be expected to generate in excess of those which would amortize the local share of initial costs and provide for its successful operation and maintenance (including depreciation). (d) The Secretary shall prescribe rules, regulations, and procedures to carry out this section which will assure that adequate consideration is given to the relative needs of eligible areas. In prescribing such rules, regulations, and procedures the Secretary shall consider among other relevant factors (1) the seA'erity of the rates of unemployment in the eligible areas and the duration of such unemployment and (2) 49-850 0-66—38

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Ante, p. 21. Appropriation.

PUBLIC LAW 89-136-AUG. 26, 1965

[79 STAT.

the income levels of families and the extent of mideremployment in eligible areas. (e) Except for projects specifically authorized by Congress, no financial assistance shall be extended under this section with respect to any public service or development facility which would compete with an existing privately owned public utility rendering a service to the public at rates or charges subject to regulation by a State or Federal regulatory body, unless the State or Federal regulatory body determines that in the area to be served by the facility for which the financial assistance is to be extended there is a need for an increase in such service (taking into consideration reasonably foreseeable future needs) which the existing public utility is not able to meet through its existing facilities or through an expansion which it agrees to undertake. (f) The Secretary shall prescribe regulations which will assure that appropriate local governmental authorities have been given a reasonable opportunity to review and comment upon proposed projects under this section. SEC. 102. (a) I n addition to the assistance otherwise authorized, the Secretary is authorized to make grants in accordance with the provisions of this title to 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. (b) Areas designated under the authority of this section shall be subject to an annual review of eligibility in accordance with section 402, and to all of the rules, regulations, and procedures applicable to redevelopment areas except as the Secretary may otherwise prescribe by regulation. SEC. 103. Not more than 15 per centum of the appropriations made pursuant to this title may be expended in any one State. SEC. 104. No part of any appropriations made pursuant to this title may be expended for any project in any area which is within the "Appalachian region" (as that term is defined in section 408 of the Appalachian Kegional Development Act of 1965) which is approved for assistance under the Appalachian Regional I>evelopment Act of 1965. ^^^ J05 Xhere is hereby authorized to be appropriated to carry out this title not to exceed $500,000,000 for the fiscal year ending June 30, 1966, and for each fiscal year thereafter through the fiscal year ending June 30, 1969. FINANCIAL ASSISTANCE FOR SEW^ER FACILITIES

SEC. 106. Xo financial assistance, through grants, loans, guarantees, or otherwise, shall be made under this Act to be used directly or indirectly for sewer or other waste disposal facilities unless the Secretary of Health, Education, and Welfare certifies to the Secretary that any waste material carried by such facilities will be adequately treated before it is discharged into any public waterway so as to meet applicable Federal, State, interstate, or local water quality standards. TITLE II—OTHER FINANCIAL ASSISTANCE P U B L I C W^ORKS A N D DEVELOPMENT FACILITY LOANS

SEC. 201. (a) Upon the application of any State, or political subdiA'ision thereof, Indian tribe, or private or public nonprofit organization or association representing any redevelopment area or part thereof, the Secretary is authorized to purchase evidence of indebtedness and to make loans to assist in financing the purchase or development of land

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jind improvements for public ^yorks, public service, or development facility usage, including public works, public service, and development facility usage, to be provided by agencies of the Federal (xovernment pursuant to legislation requiring that non-Federal entities bear some part of the cost thereof, and the acquisition, construction, rehabilitation, alteration, expansion, or improvement of such facilities, including related machinery and equipment, within a redevelopment area, if he finds that— (1) the project for which financial assistance is sought will directly or indirectly— (A) tend to improve the opportunities, in the area where such project is or will be located, for the successful establishment or expansion of industrial or commercial plants or facilities, (B) otherwise assist in the creation of additional longterm employment opportunities for such area, or (C) primarily benefit the long-term unemployed and members of low-income families or otherwise substantially further the objectives of the Economic Opportunity Act of 78 Stat.;J08. 1964; 42 USC 2701 (2) the funds requested for such project are not otherwise note. available from private lenders or from other Federal agencies on terms which in the opinion of the Secretary will permit the accomplishment of the project; (3) the amount of the loan plus the amount of other available funds for such project are adequate to insure the completion thereof; (4) there is a reasonable expectation of repayment; and (5) such area has an approved overall economic development program as provided in section 202(b) (10) and the project for which financial assistance is sought is consistent with such program. (b) Subject to section 701(5), no loan, including renewals or extensions thereof, shall be made under this section for a period exceeding forty years, and no evidence of indebtedness maturing more than forty years from the date of purchase shall be purchased under this section. Such loans shall bear interest at a rate not less than a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, adjusted to the nearest one-eighth of 1 per centum, less not to exceed one-half of 1 per centum l)er annum. (c) There are hereby authorized to be appropriated such sums as Appropriation, may be necessary to carry out the provisions of this section and section 202: Provided, That annual appropriations for the purpose of purchasing evidences of indebtedness, making and participating in loans, and guaranteeing loans shall not exceed $170,000,000, for the fiscal year ending June 30, 1966, and for each fiscal year thereafter through the fiscal year ending June 30, 1970. (d) Except for projects specifically authorized by Congress, no financial assistance shall be extended under this section with respect to any public service or deA'elopment facility which would compete with an existing privately owned public utility rendering a service to the public at rates or charges subject to regulation by a State or Federal regulatory body, unless the State or Federal regulatory body determines that in the area to be served by the facility for which the financial assistance is to be extended there is a need for an increase in such service (taking into consideration reasonably foreseeable

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[79 STAT.

future needs) which the existing public utility is not able to meet through its existing facilities or through an expansion which it agrees to undertake. (e) The Secretary shall prescribe regulations which will assure that appropriate local governmental authorities have been given a reasonable opportunity to review and comment upon proposed projects under this section. LOANS A N D

GUARANTEES

SEC. 202. (a) The Secretary is authorized (1) to purchase evidences of indebtedness and to make loans (which for purposes of this section shall include participations in loans) to aid in financing any project within a redevelopment area for the purchase or development of land and facilities (including machinery and equipment) for industrial or commercial usage, including the construction of new buildings, the rehabilitation of abandoned or unoccupied buildings, and the alteration, conversion, or enlargement of existing buildings; and (2) to guarantee loans for working capital made to private borrowers by private lending institutions in connection with projects in redevelopment areas assisted under subsection (a)(1) hereof, upon application of such institution and upon such terms and conditions as the Secretary may prescribe: Provided, hovMver^ That no such guarantee shall at any time exceed 90 per centum of the amount of the outstanding unpaid balance of such loan. (b) Financial assistance under this section shall be on such tenns and conditions as the Secretary determines, subject, however, to the following restrictions and limitations: (1) Such financial assistance shall not be extended to assist establishments relocating from one area to another or to assist subcontractors whose purpose is to divest, or whose economic success is dependent upon divesting, other contractors or subcontractors of contracts theretofore customarily performed by them: Provided, however, That such limitation shall not be construed to prohibit assistance for the expansion of an existing business entity through the establishment of a new branch, affiliate, or subsidiary of such entity if the Secretary finds that the establishment of such branch, affiliate, or subsidiary will not result in an increase in unemployment of the area of original location or in any other area where such entity conducts business operations, unless the Secretary has reason to believe that such branch, affiliate, or subsidiary is being established with the intention of closing down the operations of the existing business entity in the area of its original location or in any other area where it conducts such operations. (2) Such assistance shall be extended only to applicants, both private and public (including Indian tribes), which have been approved for such assistance by an agency or instrumentality of the State or political subdivision thereof in which the project to be financed is located, and which agency or instrumentality is directly concerned with problems of economic development in such State or subdivision. (3) The project for which financial assistance is sought must be reasonably calculated to provide more than a temporary alleviation of unemployment or underemployment within the redevelopment area wherein it is or will be located. (4) No loan or guarantee shall be extended hereunder unless the financial assistance applied for is not otherwise available from private lenders or from other Federal agencies on terms which in the opinion of the Secretary will permit the accomplishment of the project. (5) The Secretary shall not make any loan without a participation unless he determines that the loan cannot be made on a participation basis.

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PUBLIC LAW 89-136-AUG. 26, 1965

(6) Xo evidences of indebtedness shall be piu'chased and no loans shall be made or guaranteed unless it is determined that there is reasonable assurance of repayment. (7) Subject to section 701(5) of this Act, no loan, including renewals or extension thereof, may be made hereunder for a period exceeding twenty-five years and no evidences of indebtedness maturing more than twenty-five years from date of purchase may be purchased hereunder: Provided, That the foregoing restrictions on maturities shall not apply to securities or obligations received by the Secretary as a claimant in bankruptcy or equitable reorganization or as a creditor in other proceedings attendant upon insolvency of the obligor. (8) Loans made and evidences of indebtedness purchased under this section shall bear interest at a rate not less than a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, adjusted to the nearest one-eighth of 1 per centum, plus additional charge, if any, toward covering other costs of the program as the Secretary may determine to be consistent with its purpose. (9) Loan assistance shall not exceed 65 per centum of the aggregate cost to the applicant (excluding all other Federal aid in connection with the undertaking) of acquiring or developing land and facilities (including machinery and equipment), and oi constructing, altering, converting, rehabilitating, or enlarging the building or buildings of the particular project, and shall, among others, be on the condition that— (A) other funds are available in an amount which, together with the assistance provided hereunder, shall be sufficient to pay such aggregate cost; (B) not less than 15 per centum of such aggregate cost be supplied as equity capital or as a loan repayable in no shorter l)eriod of time and at no faster an amortization rate than the Federal financial assistance extended under this section is being repaid, and if such a loan is secured, its security shall be subordinate and inferior to the lien or liens securing such Federal financial assistance: Provided, however, That, except in projects iuA^olving financial participation by Indian tribes, not less than 5 per centum of such aggregate cost shall be supplied by the State or any agency, instrumentality, or political subdivision thereof, or by a community or area organization which is nongovernmental in character, unless the Secretary shall determine in accordance with objective standards promulgated by regulation that all or part of such funds are not reasonably available to the project because of the economic distress of the area or for other good cause, in which case he may waive the requirement of this provision to the extent of such unavailability, and allow the funds required by this subsection to be supplied by the applicant or by such other non-Federal source as may reasonably be available to the project; (C) to the extent the Secretary finds such action necessary to encourage financial participation in a particular project by other lenders and investors, and except as otherwise provided m subparagraph (B), any Federal financial assistance extended under this section may be repayable only after other loans made in connection with such project have been repaid in full, and the security, if any, for such Federal financial assistance may be subordinate and inferior to the lien or liens securing other loans made in connection with the same project.

557

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[79 STAT.

(10) No such assistance shall be extended unless there shall be submitted to and approved by the Secretary an overall program for the economic development of the area and a finding by the State, or any agency, instrumentality, or local political subdivision thereof, that the project for which financial assistance is sought is consistent with such program: Provided, That nothing in this Act shall authorize financial assistance for any project prohibited by laws of the State or local political subdivision in which the project would be located, nor prevent the Secretary from requiring such periodic revisions of previously approved overall economic development programs as he may deem appropriate. ECONOMIC DEVELOPMENT REVOLVING FUND

75 Stat. 47.

42 USC 2501 note.

SEC. 203. Funds obtained by the Secretary under section 201, loan funds obtained under section 403, and collections and repayments received under this Act, shall be deposited in an economic development revolving fund (hereinafter referred to as the "fund"), which is hereby established in the Treasury of the United States, and which shall be available to the Secretary for the purpose of extending financial assistance under sections 201, 202, and 403, and for the payment of all obligations and expenditures arising in connection therewith. There shall also be credited to the fund such funds as have been paid into the area redevelopment fund or may be received from obligations outstauding under the Area Kedevelopment Act. The fund shall pay into miscellaneous receipts of the Treasury, following the close of each fiscal year, interest on the amount of loans outstanding under this Act computed in such manner and at such rate as may be determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, adjusted to the nearest one-eighth of 1 per centum, during the month of June preceding the fiscal year in which the loans were made. TITLE III — T E C H N I C A L A S S I S T A N C E, R E S E A R C H, AND INFORMATION SEC. 301. (a) In carrying out his duties under this Act the Secretary is authorized to provide technical assistance which would be useful in alleviating or preventing conditions of excessive unemployment or underemployment (1) to areas which he has designated as redevelopment areas under this Act, and (2) to other areas which he finds have substantial need for such assistance. Such assistance shall include project planning and feasibility studies, management and operational assistance, and studies evaluating the needs of, and developing potentialities for, economic growth of such areas. Such assistance may be provided by the Secretary through members of his staff, through the payment of funds authorized for this section to other departments or agencies of the Federal Government, through the employment of private individuals, partnerships, firms, corporations, or suitable institutions, under contracts entered into for such purposes, or through grants-in-aid to appropriate public or private nonprofit State, area, district, or local organizations. The Secretary, in his discretion, may require the repayment of assistance provided under this subsection and prescribe the terms and conditions of such repayment. (b) The Secretary is authorized to make grants to defray not to exceed 75 per centum of the administrative expenses of organizations which he determines to be qualified to receive grants-in-aid under sub-

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Page:United States Statutes at Large Volume 79.djvu/599

 79 STAT. ]

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559

section (a) hereof. In determining the amount of the non-Federal share of such costs or expenses, the Secretary shall give due consideration to all contributions both in cash and in kind, fairly evaluated, including but not limited to space, equipment, and services. Where practicable, grants-in-aid authorized under this subsection shall be used in conjunction with other available planning grants, such as urban planning grants authorized under the Housing Act of 1954, as

^^ ^t^*- 59o.

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12 USC

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D

o

I

'

T

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17n^

amended, and highway planning and research grants authorized under ^^^^ the Federal Aid Highway Act of 1962, to assure adequate and effective 76 Stat. i HS. planning and economical use of funds. ^^ ^^^ ^°' "°*''(c) To assist in the long-range accomplishment of the purposes of this Act, the Secretary, in cooperation with other agencies having similar functions, shall establish and conduct a continuing program of study, training, and research to (A) assist in determining the causes of unemployment, underemployment, underdevelopment, and chronic depression in the various areas and regions of the Nation, (B) assist in the formulation and implementation of national. State, and local programs which will raise income levels and otherwise produce solutions to the problems resulting from these conditions, and (C) assist in providing the personnel needed to conduct such programs. The program of study, training, and research may be conducted by the Secretary through members of this staff, through payment of funds authorized for this section to other departments or agencies of the Federal Government, or through the employment of private individuals, partnerships, firms, corporations, or suitable institutions, under contracts entered into for such purposes, or through grants to such individuals, organizations, or institutions, or through conferences and similar meetings organized for such purposes. The Secretary shall make available to interested individuals and organizations the results of such research. The Secretary shall include in his annual report under section 707 a detailed statement concerning the study and research conducted under this section together with his findings resulting therefrom and his recommendations for legislative and other action. (d) The Secretary shall aid redevelopment areas and other areas by furnishing to interested individuals, communities, industries, and enterprises within such areas any assistance, technical information, market research, or other forms of assistance, information, or advice which would be useful in alleviating or preventing conditions of excessive unemployment or underemployment within such areas. The Secretary may furnish the procurement divisions of the various departments, agencies, and other instrumentalities of the Federal Government with a list containing the names and addresses of business firms which are located in redevelopment areas and which are desirous of obtaining Government contracts for the furnishing of supplies or services, and designating the supplies and services such firms are engaged in providing. (e) The Secretary shall establish an independent study board consisting of governmental and nongovernmental experts to investigate the effects of Government procurement, scientific, technical, and other related policies, upon regional economic development. Any Federal officer or employee may, with the consent of the head of the department or agency in which he is employed, serve as a member of such board, but shall receive no additional compensation for such service. Other members of such board may be compensated in accordance with the provisions of section 701 (10). The board shall report its findings, cfn^reJs*" together with recommendations for the better coordination of such °"^''*"'* policies, to the Secretary, who shall transmit the report to the Congress ' not later than two years after the enactment of this Act.

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Page:United States Statutes at Large Volume 79.djvu/600

 560 Appropriation.

PUBLIC LAW 89-136-AUG. 26, 1965

[79 STAT.

g^^ 3Q2 There is hereby authorized to be appropriated $25,000,000 annually for the purposes of this title, for the fiscal year ending June 30, 1966, and for each fiscal year thereafter through the fiscal year ending June 30, 1970. TITLE IV — A R E A AND D I S T R I C T E L I G I B I L I T Y PART A—REDEVELOPMENT AREAS AREA ELIGIBILITY

SEC. 401. (a) The Secretary shall designate as "redevelopment Rreas"— (1) those areas in which he determines, upon the basis of standards generally comparable with those set forth in paragraphs (A) and (B), that there has existed substantial and persistent unemployment for an extended period of time and those areas in which he determines there has been a substantial loss of population due to lack of employment opportunity. There shall be included among the areas so designated any area— (A) where the Secretary of Labor finds that the current rate of unemployment, as determined by appropriate annual statistics for the most recent available calendar year, is 6 per centum or more and has averaged at least 6 per centum for the qualifying time periods specified in paragraph (B); and (B) where the Secretary of Labor finds that the annual average rate of unemployment has been at least— (i) 50 per centum above the national average for three of the preceding four calendar years, or (ii) 75 per centum above the national average for two of the preceding three calendar years, or (iii) 100 per centum above the national average for one of the preceding two calendar years. The Secretary of Labor shall find the facts and provide the data to be used by the Secretary in making the determinations required by this subsection; (2) those additional areas which have a median family income not in excess of 40 per centum of the national median, as determined by the most recent available statistics for such areas; (3) those additional Federal or State Indian reservations or trust or restricted Indian-owned land areas which the Secretary, after consultation with the* Secretary of the Interior or an appropriate State agency, determines manifest the greatest degree of economic distress on the basis of unemployment and income statistics and other appropriate evidence of economic underdevelopment; (4) upon request of such areas, those additional areas in which the Secretary determines that the loss, removal, curtailment, or closing of a major source of employment has caused within three years prior to, or threatens to cause within three years after, the date of the request an unusual and abrupt rise in unemployment of such magnitude that the unemployment rate for the area at the time of the request exceeds the national average, or can reasonably be expected to exceed the national average, by 50 per centum or more unless assistance is provided. Xotwithstanding any provision of subsection 401(b) to the contrary, an area designated under the authority of this paragraph may be given a reasonable time after designation in which to submit the overall economic development program required by subsection 202(b) (10) of this Act;

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561

(5) notwithstanding any provision of this section to the contrary, those additional areas which were designated redevelopment areas under the Area Redevelopment Act on or after J^ ^l^c *^ March 1, 1965: Provided, however, That the continued eligibility note. ^ °^ of such areas after the first annual review of eligibility conducted in accordance with section 402 of this Act shall be dependent on their qualification for designation under the standards of economic need set forth in subsections (a)(1) through (a)(4) of this section. (b) The size and boundaries of redevelopment areas shall be as determined by the Secretary: Provided, however. That— (1) no area shall be designated until it has an approved overall economic development program in accordance with subsection 202(b) (10) of this Act; (2) any area which does not submit an acceptable overall economic development program in accordance with subsection 202 (b)(10) of this Act within a reasonable time after notification of eligibility for designation, shall not thereafter be designated jjrior to the next annual review of eligibility in accordance with section 402 of this Act; (3) no area shall be designated which does not have a population of at least one thousand five hundred persons, except for areas designated under subsection 401(a)(3), which shall have a population of not less than one thousand persons; and (4) except for areas designated under subsections (a)(3) and (a)(4) hereof, no area shall be designated which is smaller than a "labor area" (as defined by the Secretary of Labor), a county, or a municipality with a population of over two hundred and fifty thousand, whichever in the opinion of the Secretary is appropriate. (c) Upon the request of the Secretary, the Secretary of Labor, the Secretary of Agriculture, the Secretary of the Interior, and such other heads of agencies as may be appropriate are authorized to conduct such special studies, obtain such information, and compile and furnish to the Secretary such data as the Secretary may deem necessary or proper to enable him to make the determinations provided for in this section. The Secretary shall reimburse when appropriate, out of any funds appropriated to carry out the purposes of this Act, the foregoing officers for any expenditures incurred by them under this section. (d) If a State has no area designated under the preceding subsections of this section as a redevelopment area, the Secretary shall designate as a redevelopment area that area in such State which in his opinion most nearly qualifies under such preceding subsections. An area so designated shall have its eligibility terminated in accordance with the provisions of section 402 if any other area within the same State subsequently has become qualified or been designated under any other subsection of this section as of the time of the annual review prescribed by section 402: Provided, That the Secretary shall not terminate any designation of an area in a State as a redevelopment area if to do so would result in such State having no redevelopment area. (e) As used in this Act, the term "redevelopment area" refers to ^^J^,!'^^''^^"^'"^"* any area within the Ignited States which has been designated by the ^^^^' Secretary as a redeveloiDment area. A X X t r A L RE^•IEW OF AREA

ELIGIBILITY

SEC. 402. The Secretary shall conduct an annual review of all areas designated in accordance with section 401 of this Act, and on the basis thereof shall terminate or modify the designations of such areas in accordance with objective standards which he shall prescribe by

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PUBLIC LAW 89-136-AUG. 26, 1965

[79 STAT.

regulation. No area previously designated shall retain its designated status unless it maintains a currently approved overall economic development program in accordance with subsection 202(b) (10). No termination of eligibility shall (1) be made without thirty days' prior notification to the area concerned, (2) affect the validity of any application filed, or contract or undertaking entered into, with respect to such area pursuant to this Act prior to such termination, (3) prevent any such area from again being designated a redevelopment area under section 401 of this Act if the Secretary determines it to be eligible under such section, or (4) be made in the case of any designated area where the Secretary determines that an improvement in the unemployment rate of a designated area is primarily the result of increased employment in occupations not likely to be permanent. The Secretary shall keep the departments and agencies of the Federal Government, and interested State or local agencies, advised at all times of any changes made hereunder with respect to the classification of any area. PART B — E C O N O M I C DEVELOPMENT DISTRICTS

SEC. 403. (a) I n order that economic development projects of broader geographical significance may be planned and carried out, the Secretary is authorized— (1) to designate appropriate "economic development districts" within the United States with the concurrence of the States in which such districts will be wholly or partially located, if— (A) 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 redevelopment area; (B) the proposed district contains two or more redevelopment areas; (C) the proposed district contains one or more redevelopment areas or economic development centers identified in an approved district overall economic development program as having sufficient size and potential to foster the economic growth activities necessary to alleviate the distress of the redevelopment areas within the district; and (D) the proposed district has a district overall economic development program which includes adequate land use and transportation planning and contains a specific program for district cooperation, self-help, and public investment and is approved by the State or States affected and by the Secretary; (2) to designate as "economic development centers," in accordance with such regulations as he shall prescribe, such areas as he may deem appropriate, if— (A) the proposed center has been identified and included in an approved district overall economic development program and recommended by the State or States affected for such special designation; (B) the proposed center is geographically and economically so related to the district that its economic growth may reasonably be expected to contribute significantly to the alleviation of distress in the redevelopment areas of the district; and (C) the proposed center does not have a population in excess of two hundred and fifty thousand according to the last preceding Federal census. (3) to provide financial assistance in accordance with the criteria of sections 101, 201, and 202 of this Act, except as may be

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 79 STAT.]

PUBLIC LAW 89-136-AUG. 26, 1965

herein otherwise provided, for projects in economic development centers designated under subsection (a)(2) above, if— (A) the project will further the objectives of the overall economic development program of the district in which it is to be located; (B) the project will enhance the economic growth potential of the district or result in additional long-term employment opportunities commensurate with the amount of Federal financial assistance requested; and (C) the amount of Federal financial assistance requested is reasonably related to the size, population, and economic needs of the district; (4) subject to the 20 per centum non-Federal share required for any project by-subsection 101(c) of this Act, to increase the amount of grant assistance authorized by section 101 for projects within redevelopment areas (designated under section 401), by an amount not to exceed 10 per centum of the aggregate cost of any such project, in accordance with such regulations as he shall jirescribe if— (A) the redevelopment area is situated within a designated economic development district and is actively participating in the economic development activities of the district; and (B) the project is consistent with an approved district overall economic development program. (b) In designating economic development districts and approving district overall economic development programs under subsection (a) of this section, the Secretary is authorized, under regulations prescribed by him— (1) to invite the several States to draw up proposed district boundaries and to identify potential economic development centers; (2) to cooi^erate with the several States— (A) in sponsoring and assisting district economic planning and development groups, and (B) in assisting such district groups to formulate district overall economic development programs; (8) to encourage participation by appropriate local governmental authorities in such economic develo]:)ment districts. (c) The Secretary shall by regulation prescribe standards for the termination or modification of economic development districts and economic development centers designated under the authority of this section. (d) As used in this Act, the term "economic development district" refers to any area within the United States composed of cooperating redevelopment areas and, where appropriate, designated economic development centers and neighboring counties or communities, which has been designated by the Secretary as an economic development district. (e) As used in this Act, the term "economic development center" refers to any area within the United States which has been identified as an economic development center in an approved district overall economic development program and which has been designated by the Secretary as eligible for financial assistance under sections 101, 201, and 202 of this Act in accordance with the provisions of this section. (f) For the purpose of this Act the term "local government" means any city, county, town, parish, village, or other general-purpose political subdivision of a State. (g) There is hereby authorized to be appropriated not to exceed $50,000,000 for the fiscal year ending June 30, 1967, and for each fiscal

563

" E c o n o m i c development district,»»

" E c o n o m i c development center.'*

" L o c a l government." Appropriation.

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Page:United States Statutes at Large Volume 79.djvu/604

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Effective date.

PUBLIC LAW 89-136-AUG. 26, 1965

[79 STAT.

year thereafter through the fiscal year ending June 30, 1970, for financial assistance extended under the provisions of subsection (a)(3) and (a)(4) hereof. (j^^ jj^ ordcr to allow time for adequate and careful district planning, subsection (g) of this section shall not be effective until one year from the date of enactment. TITLE V — R E G I O N A L ACTION P L A N N I N G COMMISSIONS ESTABLISHMENT O F REGIONS

SEC. 501. The Secretary is authorized to designate appropriate "economic development regions" within the United States with the concurrence of the States in which such regions will be wholly or partially located if he finds (A) that there is a relationship between the areas within such region geographically, culturally, historically^, and economicallj, (B) that with the exception of Alaska and Hawaii, the region is within contiguous States, and (C) upon consideration of the following matters, among others, that the region has lagged behind the whole Nation in economic development: (1) the rate of unemployment is substantially above the national rate; (2) the median level of family income is significantly below the national median; (3) the level of housing, health, and educational facilities is substantially below the national level; (4) the economy of the area has traditionally been dominated by only one or two industries, which are in a state of long-term decline; (5) the rate of outmigration of labor or capital or both is substantial; (6) the area is adversely affected by changing industrial technology; (7) the area is adversely affected by changes in national defense facilities or production; and (8) indices of regional production indicate a growth rate substantially below the national average. REGIONAL

Membership.

Alternates.

COMMISSIONS

SEC. 502. (a) Upon designation of development regions, the Secretary shall invite and encourage the States wholly or partially located within such regions to establish appropriate multistate regional commissions. (jj) Each such commission 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 region. 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. (c) Decisions by a regional commission shall require the aifirmative vote of the Federal cochairman and of a majority, or at least one if only two, of the State members. In matters coming before a regional commission, the Federal cochairman shall, to the extent practicable, consult with the Federal departments and agencies having an interest in the subject matter. ^(j^ Each State member of a regional commission shall have an alternate, appointed by the Governor or as otherwise may be provided

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PUBLIC LAW 89-136-AUG. 26, 1965

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 of each regional commission. An alternate shall vote in the event of the absence, death, disability, removal, or resignation of the State of Federal cochairman for which he is an alternate. (e) The Federal cochairman to a regional commission fihall be coml^ensated by the Federal Government from fmids authorized by this Act up to level IV of the Federal Executive Salary Schedule. His alternate shall be compensated by the Federal Government from funds authorized by this Act at not to exceed the maximum scheduled rate for grade GS-18 of the Classification Act of 1949, as amended, and Avhen 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. (f) If the Secretary finds that the State of Alaska or the State of Hawaii meet the requirements for an economic development region, he may establish a Commission for either State in a manner agreeable to him and to the Governor of the affected State. FUNCTIONS

OF

COMMISSION

SEC. 503. (a) I n carrying out the purposes of this Act. each Commission shall with respect to its region— (1) advise and assist the Secretary in the identification of optimum boundaries for multistate economic development regions; (2) initiate and coordinate the preparation of long-range overall economic development programs for such regions; (3) foster surveys and studies to provide data required for the preparation of specific plans and programs for the development of such regions; (4) advise and assist the Secretary and the States concerned in the initiation and coordination of economic development districts, in order to promote maximum benefits from the expenditure of Federal, State, and local funds; (5) promote increased private investment in such regions; (6) prepare legislative and other recommendations with respect to both short-range and long-range programs and projects for Federal, State, and local agencies; (7) 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 m the region; (8) 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; (9) 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; (10) 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; and

565

compensation. 78^stat, 417. ^u'li^nla^^'

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[79 STAT.

(11) 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. (b) The Secretary shall present such plans and proposals of the commissions as may be transmitted and recommended to him (but are not authorized by any other section of this Act) first for review by the Federal agencies primarily interested in such plans and proposals and then, together with the recommendations oi such agencies, to the President for such action as he may deem desirable. (c) The Secretary shall provide effective and continuing liaison between the Federal Government and each regional commission. (d) Each Federal agency shall, consonant with law and within the limits of available funds, cooperate with such commissions as may be established in order to assist them in carrying out their functions under this section. (e) Each regional commission may, from time to time, make additional recommendations to the Secretary and recommendations 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 its region in the fields of natural resources, agriculture, education, training, health and welfare, transportation, 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. PROGRAM DEVELOPMENT CRITERIA

SEC. 504. In developing recommendations for programs and projects for future regional economic development, and in establishing within those recommendations a priority ranking for such programs and projects, the Secretary shall encourage each regional commission to follow procedures that will insure consideration of the following factors: (1) the relationship of the project or class of projects to overall regional development including its location in an area determined by the State to have a significant potential for growth; (2) the population and area to be served by the project or class of projects including the relative per capita income and the unemployment rates in the area; (3) the relative financial resources available to the State or political subdivisions or instrumentalities thereof which seek to undertake the project; (4) the importance of the project or class of projects in relation to other projects or classes of projects which may be in competition for the same funds; (5) the prospects that the project, on a continuing rather than a temporary basis, will improve the opportunities for employment, the average level of income, or the economic and social development of the area served by the project. REGIONAL T E C H N I C A L AND P L A N N I N G

ASSISTANCE

SEC. 505. (a) The Secretary is authorized to provide to the commissions technical assistance which would be useful in aiding the commissions to carry out their functions under this Act and to develop recommendations and programs. Such assistance shall include studies and plans evaluating the needs of, and developing potentialities for.

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economic growth of such region, and research on improving the conservation and utilization of the human and natural resources of the region. Such assistance may be provided by the Secretary through members of his staff, through the payment of funds authorized for this section to other departments or agencies of the Federal Government, or through the employment of private individuals, partnerships, firms, corporations, or suitable institutions, under contracts entered into for such purposes, or through grants-in-aid to the commissions. The Secretary, in his discretion, may require the repayment of assistance provided under this subsection and prescribe the terms and conditions of such repayment. (b) For the period ending on June 80 of the second full Federal ^/^^^''^^ ^^^'^ Mscal year following the date of establisliment of a commission, the administrative expenses of each commission as approved by the Secretary shall be paid by the Federal Government. Thereafter, not to exceed 50 per centum of such expenses may be paid by the Federal Government. In determining the amount of the non-Federal share of such costs or expenses, the Secretary shall give due consideration to all contributions both in cash and in kind, fairly evaluated, including but not limited to space, equipment, and services. (c) There is hereby authorized to be appropriated $15,000,000 for Appropriation. the fiscal year ending June 30, 1966, and for each fiscal year thereafter through the fiscal year ending June 80, 1970, for the purposes of this section. A D M I N I S r R A T IV E POWERS OF REGIONAL

COMMISSIONS

SEC. 506. To carry out its duties under this Act, each regional commission is authorized to— (1) adojit, amend, and repeal bylaws, rules, and regulations governing the conduct of its business and the performance of its functions; (2) appoint and fix the compensation of an executive director and such other personnel as may be necessary to enable the commission to carry out its functions, except that such compensation shall not exceed the salary of the alternate to the Federal cochairman on the commission and no member, alternate, officer, or employee of such commission, other than the Federal cochairman on the commission and his staff and his alternate, and Federal employees detailed to the commission under clause (8), shall be deemed a Federal employee for any purpose; (8) request the head of any Federal department or agency (who is hereby so authorized) to detail to temporary duty with the commission such personnel within his administrative jurisdiction as the commission may need for carrying out its functions, each such detail to be without loss of seniority, pay, or other employee status; (4) arrange for the services of personnel from any State or local government or any subdivision or agency thereof, or any intergovernmental agency; (5) make arrangements, including contracts, with any participating State government for inclusion in a suitable retirement and employee benefit system of such of its personnel as may not be eligible for, or continue in, another governmental retirement or employee benefit system, or otherwise provide for such coverage of its personnel, and the Civil Service Commission of the T^'nited States is authorized to contract with such commission for continued coverage of commission employees, who at date of

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commission employment are Federal employees, in the retirement program and other employee benefit programs of the Federal Government; (6) accept, use, and dispose of gifts or donations of services or property, real, personal, or mixed, tangible or intangible; (7) enter into and perform such contracts, leases, cooperative agreements, or other transactions as may be necessary in carrying out its functions and on such terms as it may deem appropriate, with any department, agency, or instrumentality of the United States or with any State, or any political subdivision, agency, or instrumentality thereof, or with any person, firm, association, or corporation; (8) maintain an office in the District of Columbia and establish field offices at such other places as it may deem appropriate; and (9) take such other actions and incur such other expenses as may be necessary or appropriate. INFORMATION

K«<=°''ds.

SEC. 507. I n order to obtain information needed to carry out its duties, each regional commission shall— (1) hold such hearings, sit and act at such times and places, take such testimony, receive such evidence, and print or otherwise reproduce and distribute so much of its proceedings and reports thereon as it may deem advisable, a cochairman of such commission, or any member of the commission designated by the commission for the purpose, being hereby authorized to administer oaths when it is determined by the commission that testimony shall be taken or evidence received under oath; (2) arrange for the head of any Federal, State, or local department or agency (who is hereby so authorized, to the extent not otherwise prohibited by law) to furnish to such commission such information as may be available to or procurable by such department or agency; and (3) keep accurate and complete records of its doings and transactions which shall be made available for public inspection. PERSONAL FINANCIAL INTERESTS

Penalty.

SEC. 508. (a) Except as permitted by subsection (b) hereof, no State member or alternate and no officer or employee of a regional commission shall participate personally and substantially as member, alternate, officer, or employee, through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, in any proceeding, application, request for a ruling or other determination, contract, claim, controversy, or other particular matter in which, to his knowledge, he, his spouse, minor child, partner, organization (other than a State or political subdivision thereof) in which he is serving as officer, director, trustee, partner, or employee, or any person or organization with whom he is serving as officer, director, trustee, partner, or employee, or any person or organization with whom he is negotiating or has any arrangement concerning prospective employment, has a financial interest. Any person who shall violate the provisions of this subsection shall be fined not more than $10,000, or imprisoned not more than two years, or both. (b) Subsection (a) hereof shall not apply if the State member, alternate, officer, or employee first advises the regional commission involved of the nature and circumstances of the proceeding, application, request for a ruling or other determination, contract, claim, controversy, or other particular matter and makes full disclosure of

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the financial interest and receives in advance a written determination made by such commission that the interest is not so substantial as to be deemed likely to affect the integrity of the services which the commission may expect from such State member, alternate, officer, or employee. (c) No State member of a regional commission, or his alternate, shall receive any salary, or any contribution to or supplementation of salary for his services on such commission from any source other than his State. No person detailed to serve a regional commission under authority of clause (4) of section 506 shall receive any salary or any contribution to or supplementation of salary for his services on such commission from any source other than the State, localj or intergovernmental department or agency from which he was detailed or from such commission. Any person who shall violate the provisions of this subsection shall be fined not more than $5,000, or imprisoned not more than one year, or both. (d) Notwithstanding any other subsection of this section, the Federal cochairman and his alternate on a regional commission and any Federal officers or employees detailed to duty with it pursuant to clause (3) of section 10 shall not be subject to any such subsection but shall remain subject to sections 202 through 209 of title 18, United States Code. (e) A regional commission may, in its discretion, declare void and rescind any contract or other agreement pursuant to the Act in relation to which it finds that there has been a violation of subsection (a) or (c) of this section, or any of the provisions of sections 202 through 209, title 18, United States Code. AXNUAL

Penalty.

Conflict-ofinterest.

76 Stat. 1121.

REPORTS

SEC. 509. Each regional commission established pursuant to this Act shall make a comprehensive and detailed annual report each fiscal year to the Congress with resj^ect to such commission's activities and recommendations for programs. The first such report shall be made for the first fiscal year in which such commission is in existence for more than three months. Such reports shall be printed and transmitted to the Congress not later than January 81 of the calendar year following the fiscal year with respect to which the report is made.

TITLE: VI—ADMINISTRATION SEC. 601. (a) The Secretary shall administer this Act and, with the assistance of an Assistant Secretary of Commerce, in addition to those already provided for, shall supervise and direct the Administrator created herein, and coordinate the Federal cochairmen appointed heretofore or subsequent to this Act. The Assistant Secretary created by this section shall be apjpointed by the President by and with the advice and consent of the Senate and shall be compensated at the rate provided for level IV of the Federal Executive Salary Schedule. Such Assistant Secretary shall perform such functions as the Secretary may prescribe. There shall be appointed by the President, by and with the advice and consent of the Senate, an Administrator for Economic Develoj^ment who shall be compensated at the rate provided for level V of the Federal Executive Salary Schedule who shall perform such duties as are assigned by the Secretary. (b) Paragraph (12) of subsection (d) of section 308 of the Federal Executive Salary Act of 1964 is amended by striking out " (4) ' ' and inserting in lieu thereof " (5) ". 49-850 0-66—39

A s s i s t a n t Secretary of Commerce, appointment. 78 Stat. 417. 5 USC 2211. Administrator for Economic Development,, appointment.

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5 USC 2211.

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[79 STAT.

(c) Subsection (e) of section 303 of the Federal Executive Salary ^(,^ Qf ^954. jg amended by adding at the end thereof the following new paragraph: "'(100) Administrator for Economic Development.'ADVISORY COMMITTEE ON REGIONAL ECONOMIC DEVELOPMENT

SEC. 602. The Secretary shall appoint a National Public Advisory Committee on Regional Economic Development which shall consist of twenty-five members and shall be composed of representatives of labor, management, agriculture, State and local governments, and the public in general. From the members appointed to such Committee the Secretary shall designate a Chairman. Such Committee, or any duly established subcommittee thereof, shall from time to time make recommendations to the Secretary relative to the carrying out of his duties under this Act. Such Committee shall hold not less than two meetings during each calendar year. CONSULTATION WITH OTHER PERSONS AND AGENCIES

SEC. 603. (a) The Secretary is authorized from time to time to call together and confer with any persons, including representatives of labor, management, agriculture, and government, who can assist in meeting the problems of area and regional unemployment or underemployment. (b) The Secretary may make provision for such consultation with interested departments and agencies as he may deem appropriate in the performance of the functions vested in him by this Act. TITLE VII—MISCELLANEOT^S P O W E R S O F SECRETARY

SEC. 701. In performing his duties under this Act, the Secretary is authorized to— (1) adopt, alter, and use a seal, which shall he judicially noticed; (2) hold such hearings, sit and act at such times and places, and take such testimony, as he may.deem advisable; (3) request directly from any executive department, bureau, agency, board, commission, office, independent establishment, or instrumentality information, suggestions, estimates, and statistics needed to carry out the purposes of this Act; and each department, bureau, agency, board, commission, office, establishment or instrumentality is authorized to furnish such information, suggestions, estimates, and statistics directly to the Secretary; (4) under regulations prescribed by him, assign or sell at public or private sale, or otherwise dispose of for cash or credit, in his discretion and upon such terms and conditions and for such consideration as he shall determine to be reasonable, any evidence of debt, contract, claim, personal property, or security assigned to or held by him in connection with loans made or evidences of indebtedness purchased under this Act, and collect or compromise all obligations assigned to or held by him in connection with such loans or evidences of indebtedness until such time as such obligations may be referred to the Attorney General for suit or collection; (5) further extend the maturity of or renew any loan made or evidence of indebtedness purchased under this Act, beyond the periods stated in such loan or evidence of indebtedness or in this

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Act, for additional periods not to exceed ten years, if such extension or renewal will aid in the orderly liquidation of such loan or evidence of indebtedness; (6) deal with, complete, renovate, improve, modernize, insure, rent, or sell for cash or credit, upon such terms and conditions and for such consideration as he shall determine to be reasonable, any real or personal property conveyed to, or otherwise acquired by, him in connection with loans made or evidences of indebtedness purchased under this Act; (7) pursue to final collection, by way of compromise or other administrative action, prior to reference to the Attorney General, all claims against third parties assigned to him in connection with loans made or evidences of indebtedness purchased under this Act. This shall include authority to obtain deficiency judgments or otherwise in the case of mortgages assigned to the Secretary. Section 8709 of the Revised Statutes, as amended (41 T'.S.C. 5), shall not apply to any contract of hazard insurance or to any purchase or contract for services or supplies on account of property obtained by the Secretary as a result of loans made or evidences of indebtedness purchased under this Act if the premium therefor or the amount thereof does not exceed $1,000. The power to convey and to execute, in the name of the Secretary, deeds of conveyance, deeds of release, assignments and satisfactions of mortgages, and any other written instrument relating to real or personal property or any interest therein acquired by the Secretary pursuant to the provisions of this Act may be exercised by the Secretary or by any officer or agent appointed by him for that purpose without the execution of any express delegation of power or power of attorney; (8) acquire, in any lawful manner, any property (real, personal, or mixed, tangible or intangible), whenever deemed necessary or appropriate to the conduct of the activities authorized in sections 201, 202, 301, 403, and 503 of this Act; (9) in addition to any powers, functions, privileges, and immunities otherwise vested in him, take any and all actions, including the procurement of the services of attorneys by contract, determined by him to be necessary or desirable in making, purchasing, servicing, compromising, modifying, liquidating, or otherwise administratively dealing with or realizing on loans made or evidences of indebtedness purchased under this Act; (10) employ experts and consultants or organizations therefor as authorized by section 15 of the Administrative Expenses Act of 1946 (5 U.S.C. 55a), compensate individuals so employed at so Stat. sio. rates not in excess of $100 per diem, including travel time, and allow them, while away from their homes or regular places of business, travel expenses (including per diem in lieu of subsistence) as authorized by section 5 of such Act (5 U.S.C. 73li-2) for 75^staS39°3'4o. persons in the Government service employed intermittently, while so employed: Provided, hmrever, That contracts for such employment may be renewed annually; (11) sue and be sued in any court of record of a State having general jurisdiction or in any United States district court, and jurisdiction is conferred upon such district court to determine such controversies without regard to the amount in controversy; but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Secretary or his property.

571

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Nothing herein shall be construed to except the activities under this Act from the application of sections 507(b) and 2679 of title 28, United States Code, and of section 367 of the Revised Statutes (5 U.S.C. 316); and (12) establish such rules, regulations, and procedures as he may deem appropriate in carrying out the provisions of this Act. P R E V E N T I O N OF U N F A I R C O M P E T I T I O N

SEC. 702. No financial assistance under this Act shall be extended to any project when the result would be to increase the production of goods, materials, or commodities, or the availability of services or facilities, when there is not sufficient demand for such goods, material, commodities, services, or facilities, to employ the efficient capacity of existing competitive commercial or industrial enterprises. SAVING PROVISIONS

75 Stat. 47. 42 USC 2501 note.

SEC. 703. (a) No suit, action, or other proceeding lawfully commenced by or against the Administrator or any other officer of the Area Redevelopment Administration in his official capacity or in relation to the discharge of his official duties under the Area Redevelopment Act, shall abate by reason of the taking effect of the provisions of this Act, but the court may, on motion or supplemental petition filed at any time within twelve months after such taking effect, showing a necessity for the survival of such suit, action, or other proceeding to obtain a settlement of the questions involved, allow the same to be maintained by or against the Secretary or the Administrator or such other officer of the Department of Commerce as may be appropriate. (b) Except as may be otherwise expressly provided in this Act, all powers and authorities conferred by this Act shall be cumulative and additional to and not in derogation of any powers and authorities otherwise existing. All rules, regulations, orders, authorizations, delegations, or other actions duly issued, made, or taken by or pursuant to applicable law, prior to the effective date of this Act, by any agency, officer, or office pertaining to any functions, powers, and duties under the Area Redevelopment Act shall continue in full force and effect after the effective date of this Act until modified or rescinded by the Secretary or such other officer of the Department of Commerce as, in accordance with applicable law", may be appropriate. TRANSFER OF FUNCTIONS, EFFECTIVE DATE, AND LIMITATIONS ON ASSISTANCE

42 USC 2525. ist^ati"^ d^lT^"' nation.' ' '

SEC. 704. (a) The functions, powers, duties, and authorities and the assets, funds, contracts, loans, liabilities, commitments, authorizations, allocations, and records which are vested in or authorized to be transferred to the Secretary of the Treasury under section 29(b) of the Area Redevelopment Act, and all functions, powers, duties, an(j authorities under section 29(c) of the Area Redevelopment Act are hereby vested in the Secretary. (^) ^^^ President may designate a person to act as Administrator uudcT this Act uutil the office is filled as provided in this Act or until the expiration of the first period of sixty days following the effective date of this Act, whichever shall first occur. While so acting such person shall receive compensation at the rate provided by this Act for such office.

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(c) The provisions of this Act shall take eirect upon enactment unless herein explicitly otherwise provided. (d) Notwithstanding any requirements of this Act relating to the eligibility of areas, projects for which applications are pending before the Area Redevelopment Administration on the effective date of this Act shall for a period of one year thereafter be eligible for consideration by the Secretary for such assistance under the provisions of this Act as he may determine to be appropriate. (e) Xo financial assistance authorized under this Act shall be used to finance the cost of facilities for the generation, transmission, oi distribution of electric energy, except on projects specifically author ized by the Congress, or to finance the cost of facilities for the production or transmission of gas (natural, manufactured, or mixed). SEPARABILITY

SEC. 705. Xotwithstanding any other evidence of the intent of Congress, it is hereby declared to be the intent of Congress that if any provision of this Act or the application thereof to any persons or circumstances shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this Act or its application to other persons and circumstances, but shall be confined in its operation to the provision of this Act or the application thereof to the persons and circumstances directly involved in the controversy in which such judgment shall have been rendered. APPLICATION OF ACT

SEC. 706. As used in this Act, the terms "State", "States", and "United States*' include the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa. ANNUAL REPORT

SEC. 707. The Secretary shall make a comprehensive and detailed annual report to the Congress of his operations under this Act for each fiscal year beginning with the fiscal year ending June 30, 1966. Such I'eport shall be printed and shall be transmitted to the Congress not later than January 3 of the year following the fiscal year with respect to which such report is made. USE OF OTHER FACILITIES

SEC. 708. (a,) The Secretary is authorized to delegate to the heads of other departments and agencies of the Federal Government any of the Secretary's functions, powers, and duties under this Act as he may deem appropriate, and to authorize the redelegation of such functions, powers, and duties by the heads of such departments and agencies. (b) Departments and agencies of the Federal Government shall exercise their powers, duties, and functions in such manner as will assist in carrying out the objectives of this Act. (c) Funds authorizeid to be appropriated under this Act may be transferred between departments and agencies of the Government, if such funds are used for the purposes for which they are specifically authorized and appropriated.

573 Effective date. P e n d i n g project applications.

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