To establish a grant program to support cluster-based economic development efforts.

January 4, 2005

Mr. MCHUGH introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

To establish a grant program to support cluster-based economic development efforts.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. GRANTS FOR CLUSTER-BASED ECONOMIC DEVELOPMENT.

(a) In General- Title II of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3141 et seq.) is amended by adding at the end the following:

`SEC. 219. GRANTS FOR CLUSTER-BASED ECONOMIC DEVELOPMENT.

`(a) Definitions- In this section, the following definitions apply:

`(1) CLUSTER- The term `cluster' means a cluster of entities that are engaged--

`(A) in similar industries; and

`(B) in joint activities to boost competitiveness and growth.

`(2) ELIGIBLE APPLICANT- The term `eligible applicant' means--

`(A) a State or local government;

`(B) an institution of higher education; or

`(C) a nonprofit economic development organization.

`(3) REGION- The term `region' means an area--

`(A) that is determined by the Secretary to qualify for grants under this section; and

`(B) that, on the date of submission of an application for a grant under this section, meets 1 or more of the criteria described in section 301(a).

`(b) Grants- On the application of an eligible applicant, the Secretary may make grants--

`(1) to assess clusters in a region;

`(2) to assess the needs of entities involved in a region;

`(3) to market cluster development programs in a region; and

`(4) to support staff to operate cluster programs in a region.

`(c) Maximum Assistance for Each Region- Not more than $1,000,000 of the amounts made available to carry out this section may be expended in any 1 region.

`(d) Cost Sharing-

`(1) IN GENERAL- The Federal share of the cost of a project carried out using funds made available under this section shall be 50 percent.

`(2) IN-KIND CONTRIBUTIONS- Not more than 50 percent of the non-Federal share of the cost of a project carried out using funds made available under this section may be provided through in-kind contributions.

`(3) INAPPLICABILITY OF CERTAIN SECTION- Section 204 shall not apply to this section.

`(e) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $50,000,000, to remain available until expended.'.

(b) Conforming Amendment- The table of contents contained in section 1(b) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3121 note) is amended by inserting after the item relating to section 218 the following:

`Sec. 219. Grants for cluster-based economic development.'.

END