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    December 19, 2019


Starting a Federal Regional Commission or Authority


The federal regional commissions and authorities are seven
congressionally-chartered, federal-state partnerships that
were developed to address economic distress in targeted
geographic regions. With congressional authorization, new
regional commissions could be created in areas of the
country not currently serviced. This In Focus addresses past
and anticipated future congressional interest into the issues
and processes involved in starting a federal regional
commission based on existing models.


As of December 2019, seven federal regional commissions
have been authorized by Congress. (Although some are
designated as authorities, this In Focus will refer to all of
them collectively as commissions.) Four are currently
active: the Appalachian Regional Commission (ARC); the
Delta Regional Authority (DRA); the Denali Commission;
and the Northern Border Regional Commission (NBRC).
Three were authorized but are inactive: the Northern Great
Plains Regional Authority (NGPRA); the Southeast
Crescent Regional Commission (SCRC); and the Southwest
Border Regional Commission (SBRC). The active
commissions engage in economic development activities in
their service areas with funding from annual congressional
appropriations.




While the authorized federal regional commissions have
individual distinguishing features, they all include a
structure broadly modeled after the Appalachian Regional
Commission, which was established by Congress in 1965
(40 U.S.C. §§14101-14704). The commission structure is
comprised of a federal co-chair and the state governors of
member states or their designated representative (of which
one serves as state co-chair). The commission is
supplemented by professional staff to carry out
organizational activities. While largely considered
independent federal agencies, most commission members
and staff are not federal employees. The main exception is
the federal co-chair, that co-chair's alternate, and that co-
chair's direct staff. However, a commission may adopt
certain federal personnel practices. For example, the ARC
pegs its salary grades to the Office of Personnel
Management's General Schedule, and former federal
employees may remain in the federal retirement system.

A new federal regional commission may use a similar
structure to the one established for the ARC, which was
broadly replicated in the other commissions. However, this
basic structure has been adapted to the circumstances and
needs of the region in question.


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While the prevailing structure is broadly apparent among
the federal regional commissions, exceptions and certain
novelties are also evident. For example, the ARC's
authorizing statute requires state governors to serve as ARC
members and has no allowance for governors to designate a
representative (although an alternate may be allowed in
extenuating circumstances). By contrast, the other active
regional commissions allow for the member state governors
to appoint designated representatives to serve in their stead.

As a single-state commission, the Denali Commission
features several structural exceptions. Alongside the federal
co-chair, the commission is comprised of the state governor
(who is state co-chair) as well as five other members: the
University of Alaska president; the Alaska Municipal
League president; the Alaska Federation of Natives
president; the Alaska State AFL-CIO president; and the
Associated General Contractors of Alaska president. The
Denali Commission's federal co-chair is appointed by the
Secretary of Commerce, while the federal co-chairs of other
commissions are appointed by the President and require
confirmation by the Senate. The Denali Commission's
inclusion of non-gubernatorial membership is also a feature
of the multi-state Northern Great Plains Regional Authority.
Though inactive, the NGPRA consisted of the federal co-
chair, the state governors, as well as a Native American
tribal co-chair. The NGPRA also used a 501(c)(3)
organization as a resource for implementation.

A new federal regional commission may share the existing
commissions' basic structures while including features to
represent certain regional economic, social, cultural, or
historical characteristics. Such an approach could also be
adapted to programmatic intent; for example, emphases on
certain industries, types of economic development (such as
infrastructure or workforce development), or other policy
priorities, like energy transition or conservation.


P r'o k- ess


While chartered by Congress, federal regional commissions
are rooted in the states and localities they represent. Prior to
their statutory creation, all federal regional commissions
were preceded by state, local, and/or congressional
expressions of support. The ARC, for example, was
founded in response to initiatives from Appalachian
regional governors. Those efforts led to presidential and
congressional legislation, which resulted in a study
commission and the eventual creation of the ARC in 1965.
All of the federal regional commissions were founded after

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