13997. (a) The Secretary of Business, Transportation and Housing
may accept private sector moneys in an amount not in excess of ten
thousand dollars ($10,000) per donation made to the state for the
purposes of promoting international trade and investment, subject to
Title 9 (commencing with Section 81000), and not in excess of a total
of ten thousand dollars ($10,000) per quarter per donor. All private
sector moneys shall be used for these purposes but the donor may
specify the international trade and investment office or
international trade or investment event for which the private sector
money shall be used. The private sector moneys shall be deposited
into the Economic Development and Trade Promotion Account, which is
hereby established in the Special Deposit Fund in the State Treasury.
The secretary may expend moneys in the account, without regard to
fiscal years, for the purposes of this section. Moneys in the
Economic Development and Trade Promotion Account may be allocated to
an international trade and investment office, and if so allocated
shall be maintained by that office in an account. Notwithstanding any
other provision of law, the secretary may use the private sector
moneys for expenses incurred to promote international trade and
investment that will directly benefit California business. Records of
donations received and expenditures made pursuant to this section
shall be subject to public disclosure.
(b) The international trade and investment office using the funds
shall memorialize the payment in a written record as follows:
(1) Identifies the donor and the official or officials receiving
or using the payment.
(2) Describes the official agency use and the nature and amount of
each payment.
(3) Is filed with the Business, Transportation and Housing Agency
that maintains the records of the agency's statements of economic
interests, and the filing is done within 30 days of the receipt of
the payment by the agency.
(c) Nothing in this section shall affect any requirement of the
Political Reform Act (Title 9 (commencing with Section 81000)).
13997.2. (a) The Legislature finds and declares all of the
following:
(1) California's economic development organizations and
corporations are an integral component of the state job creation
effort because they are a critical link between state economic
development activities and the statewide business community,
providing an excellent opportunity to leverage state resources.
(2) Economic development corporations and organizations provide
broad public benefits to the residents of this state by alleviating
unemployment, encouraging private investment, and diversifying local
economies.
(3) Economic development corporations engage in a wide range of
programs and strategies to attract, retain, and expand businesses,
including marketing the community, small business lending, and other
financial services, a wide range of technical assistance to small
business, preparation of economic data, and business advocacy.
(4) By using public sector resources and powers to reduce the
risks and costs that could prohibit investment, the public sector
often sets the stage for employment-generating investment by the
private sector.
(b) For purposes of this chapter, all of the following definitions
apply:
(1) "Local economic development organization" means a public or
public-private job creation activity recognized by cities and
counties as the lead agency within that city or county for planning
and implementation of job creation involving business expansion,
business retention, and new business development.
(2) "Regional economic development organization" means an
organization comprised of any of the following:
(A) A single county.
(B) More than one county.
(C) A subregion within a county established by the cities and
county within that subregion.
(D) An economic development corporation.
(3) "Economic development corporation" means a local or regional
nonprofit public-private economic development organization recognized
in a defined region by the public and private sector as the lead
agency for the planning and implementation of job creation involving
business retention and new business development.
(4) "Regional economic development corporation" means a
corporation comprised of any of the following:
(A) A single county.
(B) More than one county.
(C) A subregion within a single county established by a group of
cities and counties.
(5) "Economic development" means any activity that enhances the
factors of productive capacity, such as land, labor, capital, and
technology, of a national, state, or local economy. "Economic
development" includes policies and programs expressly directed at
improving the business climate in business finance, marketing,
neighborhood development, small business development, business
retention and expansion, technology transfer, and real estate
redevelopment. "Economic development" is an investment program
designed to leverage private sector capital in such a way as to
induce actions that have a positive effect on the level of business
activity, employment, income distribution, and fiscal solvency of the
community.
(6) "Local economic development" is a process of deliberate
intervention in the normal economic process of a particular locality
to stimulate economic growth of the locality by making it more
attractive, resulting in more jobs, wealth, better quality of life,
and fiscal solvency. Prime examples of economic development include
business attraction, business expansion and retention, and business
creation.
(7) "Emerging domestic market" means people, places, or business
enterprises with growth potential that face capital constraints due
to systemic undervaluations as a result of imperfect market
information. These markets include, but are not limited to,
ethnic-owned and women-owned firms, urban and rural communities,
companies that serve low-income or moderate-income populations, and
other small and medium-sized businesses.
(8) "Financial intermediary" means an institution, firm,
organization, or individual who performs intermediation between two
or more parties in a financial context, such as connecting sources of
funds with users of funds. A financial intermediary is typically an
entity that facilitates the channeling of funds between lenders,
investors, foundations, or other entities that have money and are
interested in connecting with businesses or communities where their
money can be deployed. Financial intermediaries include, but are not
limited to, banks, financial development corporations, economic
developers, or microenterprise development organizations, and
community development organizations.
(9) "Community development intermediary" means an institution,
firm, organization, or individual that performs intermediation
between two or more parties in a community development context, such
as connecting people and organizations that have a stake in the
future well-being of communities and individuals who may not easily
have access to these stakeholders. A community development
intermediary is typically an entity that channels financial and
nonfinancial resources between government and foundations and other
nonprofit organizations that have resources and are interested in
connecting with small- and medium-size businesses and low- and
moderate-income households and communities. Community development
intermediaries include, but are not limited to, community development
corporations, microenterprise development organizations, and
community development financial institutions.
(10) "Triple bottom line" means the economic, environmental, and
social benefits arising from a project, investment, or community and
economic development activity.
(11) "Small businesses" means a business with less than 100
employees and with a gross revenue of less than five million dollars
($5,000,000), or a business that is otherwise targeted by or
participating in a federal or state program engaged in programs or
services for small businesses. Application of this definition may
only be used pursuant to a direct reference.
(12) "Community development" means a process designed to create
conditions of economic and social prosperity for the whole community,
or a targeted subset of the whole community, with the fullest
possible reliance on the community's initiative and active
participation.
(13) "Financial institution capital" means resources of a
financial institution, including, but not limited to, a bank or
credit union, that are legally available to be used to generate
wealth for the financial institution.
(14) "California Council on Science and Technology" means the
council established by California academic research institutions,
including the University of California, the University of Southern
California, the California Institute of Technology, Stanford
University, and the California State University, in support of
Assembly Concurrent Resolution No. 162 (Res. Ch. 148, Stats. 1988).
13997.6. (a) The California Economic Development Fund is hereby
created in the State Treasury for the purpose of receiving federal,
state, local, and private economic development funds, and receiving
repayment of loans or grant proceeds and interest on those loans or
grants.
(b) Upon appropriation by the Legislature, moneys in the Fund may
be expended by the Secretary of Business, Transportation and Housing
to provide matching funds for loans or grants to public agencies,
nonprofit organizations, and private entities, and for other economic
development purposes, consistent with the purposes for which the
moneys were received.
13997.7. (a) Notwithstanding any other provision of law, effective
January 1, 2008, the Economic Adjustment Assistance Grant funded
through the United States Economic Development Administration under
Title IX of the Public Works and Economic Development Act of 1965
(Grant No. 07-19-02709 and 07-19-2709.1) shall be administered by the
Secretary of Business, Transportation and Housing, and, for the
purpose of state administration of this grant, the secretary shall be
deemed to be the successor to the former Secretary of Technology,
Trade and Commerce. The secretary may assign and contract
administration of the grant to a public agency created pursuant to
Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.
(b) On January 1, 2008, all federal moneys held in the Sudden and
Severe Economic Dislocation Grant Account within the Special Deposit
Fund are hereby transferred to the Small Business Expansion Fund
created pursuant to Section 14030 of the Corporations Code for
expenditure by the Business, Transportation and Housing Agency
pursuant to Article 9 (commencing with Section 14070) of the
Corporations Code for purposes of the Sudden and Severe Economic
Dislocation Grant program, or other purposes permitted by the
cognizant federal agency.
(c) All loan repayments received on or after January 1, 2008, for
the Sudden and Severe Economic Dislocation Grant program loans issued
pursuant to former Section 15327 (repealed by Section 1.8 of Chapter
229 of the Statutes of 2003 (AB 1757)) and this section, shall be
deposited into the Small Business Expansion Fund and shall be
available to the Business, Transportation and Housing Agency for
expenditure pursuant to the provisions of Article 9 (commencing with
Section 14070) of the Corporations Code for the Sudden and Severe
Economic Dislocation Grant program, or other purposes permitted by
the cognizant federal agency.
13997. (a) The Secretary of Business, Transportation and Housing
may accept private sector moneys in an amount not in excess of ten
thousand dollars ($10,000) per donation made to the state for the
purposes of promoting international trade and investment, subject to
Title 9 (commencing with Section 81000), and not in excess of a total
of ten thousand dollars ($10,000) per quarter per donor. All private
sector moneys shall be used for these purposes but the donor may
specify the international trade and investment office or
international trade or investment event for which the private sector
money shall be used. The private sector moneys shall be deposited
into the Economic Development and Trade Promotion Account, which is
hereby established in the Special Deposit Fund in the State Treasury.
The secretary may expend moneys in the account, without regard to
fiscal years, for the purposes of this section. Moneys in the
Economic Development and Trade Promotion Account may be allocated to
an international trade and investment office, and if so allocated
shall be maintained by that office in an account. Notwithstanding any
other provision of law, the secretary may use the private sector
moneys for expenses incurred to promote international trade and
investment that will directly benefit California business. Records of
donations received and expenditures made pursuant to this section
shall be subject to public disclosure.
(b) The international trade and investment office using the funds
shall memorialize the payment in a written record as follows:
(1) Identifies the donor and the official or officials receiving
or using the payment.
(2) Describes the official agency use and the nature and amount of
each payment.
(3) Is filed with the Business, Transportation and Housing Agency
that maintains the records of the agency's statements of economic
interests, and the filing is done within 30 days of the receipt of
the payment by the agency.
(c) Nothing in this section shall affect any requirement of the
Political Reform Act (Title 9 (commencing with Section 81000)).
13997.2. (a) The Legislature finds and declares all of the
following:
(1) California's economic development organizations and
corporations are an integral component of the state job creation
effort because they are a critical link between state economic
development activities and the statewide business community,
providing an excellent opportunity to leverage state resources.
(2) Economic development corporations and organizations provide
broad public benefits to the residents of this state by alleviating
unemployment, encouraging private investment, and diversifying local
economies.
(3) Economic development corporations engage in a wide range of
programs and strategies to attract, retain, and expand businesses,
including marketing the community, small business lending, and other
financial services, a wide range of technical assistance to small
business, preparation of economic data, and business advocacy.
(4) By using public sector resources and powers to reduce the
risks and costs that could prohibit investment, the public sector
often sets the stage for employment-generating investment by the
private sector.
(b) For purposes of this chapter, all of the following definitions
apply:
(1) "Local economic development organization" means a public or
public-private job creation activity recognized by cities and
counties as the lead agency within that city or county for planning
and implementation of job creation involving business expansion,
business retention, and new business development.
(2) "Regional economic development organization" means an
organization comprised of any of the following:
(A) A single county.
(B) More than one county.
(C) A subregion within a county established by the cities and
county within that subregion.
(D) An economic development corporation.
(3) "Economic development corporation" means a local or regional
nonprofit public-private economic development organization recognized
in a defined region by the public and private sector as the lead
agency for the planning and implementation of job creation involving
business retention and new business development.
(4) "Regional economic development corporation" means a
corporation comprised of any of the following:
(A) A single county.
(B) More than one county.
(C) A subregion within a single county established by a group of
cities and counties.
(5) "Economic development" means any activity that enhances the
factors of productive capacity, such as land, labor, capital, and
technology, of a national, state, or local economy. "Economic
development" includes policies and programs expressly directed at
improving the business climate in business finance, marketing,
neighborhood development, small business development, business
retention and expansion, technology transfer, and real estate
redevelopment. "Economic development" is an investment program
designed to leverage private sector capital in such a way as to
induce actions that have a positive effect on the level of business
activity, employment, income distribution, and fiscal solvency of the
community.
(6) "Local economic development" is a process of deliberate
intervention in the normal economic process of a particular locality
to stimulate economic growth of the locality by making it more
attractive, resulting in more jobs, wealth, better quality of life,
and fiscal solvency. Prime examples of economic development include
business attraction, business expansion and retention, and business
creation.
(7) "Emerging domestic market" means people, places, or business
enterprises with growth potential that face capital constraints due
to systemic undervaluations as a result of imperfect market
information. These markets include, but are not limited to,
ethnic-owned and women-owned firms, urban and rural communities,
companies that serve low-income or moderate-income populations, and
other small and medium-sized businesses.
(8) "Financial intermediary" means an institution, firm,
organization, or individual who performs intermediation between two
or more parties in a financial context, such as connecting sources of
funds with users of funds. A financial intermediary is typically an
entity that facilitates the channeling of funds between lenders,
investors, foundations, or other entities that have money and are
interested in connecting with businesses or communities where their
money can be deployed. Financial intermediaries include, but are not
limited to, banks, financial development corporations, economic
developers, or microenterprise development organizations, and
community development organizations.
(9) "Community development intermediary" means an institution,
firm, organization, or individual that performs intermediation
between two or more parties in a community development context, such
as connecting people and organizations that have a stake in the
future well-being of communities and individuals who may not easily
have access to these stakeholders. A community development
intermediary is typically an entity that channels financial and
nonfinancial resources between government and foundations and other
nonprofit organizations that have resources and are interested in
connecting with small- and medium-size businesses and low- and
moderate-income households and communities. Community development
intermediaries include, but are not limited to, community development
corporations, microenterprise development organizations, and
community development financial institutions.
(10) "Triple bottom line" means the economic, environmental, and
social benefits arising from a project, investment, or community and
economic development activity.
(11) "Small businesses" means a business with less than 100
employees and with a gross revenue of less than five million dollars
($5,000,000), or a business that is otherwise targeted by or
participating in a federal or state program engaged in programs or
services for small businesses. Application of this definition may
only be used pursuant to a direct reference.
(12) "Community development" means a process designed to create
conditions of economic and social prosperity for the whole community,
or a targeted subset of the whole community, with the fullest
possible reliance on the community's initiative and active
participation.
(13) "Financial institution capital" means resources of a
financial institution, including, but not limited to, a bank or
credit union, that are legally available to be used to generate
wealth for the financial institution.
(14) "California Council on Science and Technology" means the
council established by California academic research institutions,
including the University of California, the University of Southern
California, the California Institute of Technology, Stanford
University, and the California State University, in support of
Assembly Concurrent Resolution No. 162 (Res. Ch. 148, Stats. 1988).
13997.6. (a) The California Economic Development Fund is hereby
created in the State Treasury for the purpose of receiving federal,
state, local, and private economic development funds, and receiving
repayment of loans or grant proceeds and interest on those loans or
grants.
(b) Upon appropriation by the Legislature, moneys in the Fund may
be expended by the Secretary of Business, Transportation and Housing
to provide matching funds for loans or grants to public agencies,
nonprofit organizations, and private entities, and for other economic
development purposes, consistent with the purposes for which the
moneys were received.
13997.7. (a) Notwithstanding any other provision of law, effective
January 1, 2008, the Economic Adjustment Assistance Grant funded
through the United States Economic Development Administration under
Title IX of the Public Works and Economic Development Act of 1965
(Grant No. 07-19-02709 and 07-19-2709.1) shall be administered by the
Secretary of Business, Transportation and Housing, and, for the
purpose of state administration of this grant, the secretary shall be
deemed to be the successor to the former Secretary of Technology,
Trade and Commerce. The secretary may assign and contract
administration of the grant to a public agency created pursuant to
Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.
(b) On January 1, 2008, all federal moneys held in the Sudden and
Severe Economic Dislocation Grant Account within the Special Deposit
Fund are hereby transferred to the Small Business Expansion Fund
created pursuant to Section 14030 of the Corporations Code for
expenditure by the Business, Transportation and Housing Agency
pursuant to Article 9 (commencing with Section 14070) of the
Corporations Code for purposes of the Sudden and Severe Economic
Dislocation Grant program, or other purposes permitted by the
cognizant federal agency.
(c) All loan repayments received on or after January 1, 2008, for
the Sudden and Severe Economic Dislocation Grant program loans issued
pursuant to former Section 15327 (repealed by Section 1.8 of Chapter
229 of the Statutes of 2003 (AB 1757)) and this section, shall be
deposited into the Small Business Expansion Fund and shall be
available to the Business, Transportation and Housing Agency for
expenditure pursuant to the provisions of Article 9 (commencing with
Section 14070) of the Corporations Code for the Sudden and Severe
Economic Dislocation Grant program, or other purposes permitted by
the cognizant federal agency.
13997. (a) The Secretary of Business, Transportation and Housing
may accept private sector moneys in an amount not in excess of ten
thousand dollars ($10,000) per donation made to the state for the
purposes of promoting international trade and investment, subject to
Title 9 (commencing with Section 81000), and not in excess of a total
of ten thousand dollars ($10,000) per quarter per donor. All private
sector moneys shall be used for these purposes but the donor may
specify the international trade and investment office or
international trade or investment event for which the private sector
money shall be used. The private sector moneys shall be deposited
into the Economic Development and Trade Promotion Account, which is
hereby established in the Special Deposit Fund in the State Treasury.
The secretary may expend moneys in the account, without regard to
fiscal years, for the purposes of this section. Moneys in the
Economic Development and Trade Promotion Account may be allocated to
an international trade and investment office, and if so allocated
shall be maintained by that office in an account. Notwithstanding any
other provision of law, the secretary may use the private sector
moneys for expenses incurred to promote international trade and
investment that will directly benefit California business. Records of
donations received and expenditures made pursuant to this section
shall be subject to public disclosure.
(b) The international trade and investment office using the funds
shall memorialize the payment in a written record as follows:
(1) Identifies the donor and the official or officials receiving
or using the payment.
(2) Describes the official agency use and the nature and amount of
each payment.
(3) Is filed with the Business, Transportation and Housing Agency
that maintains the records of the agency's statements of economic
interests, and the filing is done within 30 days of the receipt of
the payment by the agency.
(c) Nothing in this section shall affect any requirement of the
Political Reform Act (Title 9 (commencing with Section 81000)).
13997.2. (a) The Legislature finds and declares all of the
following:
(1) California's economic development organizations and
corporations are an integral component of the state job creation
effort because they are a critical link between state economic
development activities and the statewide business community,
providing an excellent opportunity to leverage state resources.
(2) Economic development corporations and organizations provide
broad public benefits to the residents of this state by alleviating
unemployment, encouraging private investment, and diversifying local
economies.
(3) Economic development corporations engage in a wide range of
programs and strategies to attract, retain, and expand businesses,
including marketing the community, small business lending, and other
financial services, a wide range of technical assistance to small
business, preparation of economic data, and business advocacy.
(4) By using public sector resources and powers to reduce the
risks and costs that could prohibit investment, the public sector
often sets the stage for employment-generating investment by the
private sector.
(b) For purposes of this chapter, all of the following definitions
apply:
(1) "Local economic development organization" means a public or
public-private job creation activity recognized by cities and
counties as the lead agency within that city or county for planning
and implementation of job creation involving business expansion,
business retention, and new business development.
(2) "Regional economic development organization" means an
organization comprised of any of the following:
(A) A single county.
(B) More than one county.
(C) A subregion within a county established by the cities and
county within that subregion.
(D) An economic development corporation.
(3) "Economic development corporation" means a local or regional
nonprofit public-private economic development organization recognized
in a defined region by the public and private sector as the lead
agency for the planning and implementation of job creation involving
business retention and new business development.
(4) "Regional economic development corporation" means a
corporation comprised of any of the following:
(A) A single county.
(B) More than one county.
(C) A subregion within a single county established by a group of
cities and counties.
(5) "Economic development" means any activity that enhances the
factors of productive capacity, such as land, labor, capital, and
technology, of a national, state, or local economy. "Economic
development" includes policies and programs expressly directed at
improving the business climate in business finance, marketing,
neighborhood development, small business development, business
retention and expansion, technology transfer, and real estate
redevelopment. "Economic development" is an investment program
designed to leverage private sector capital in such a way as to
induce actions that have a positive effect on the level of business
activity, employment, income distribution, and fiscal solvency of the
community.
(6) "Local economic development" is a process of deliberate
intervention in the normal economic process of a particular locality
to stimulate economic growth of the locality by making it more
attractive, resulting in more jobs, wealth, better quality of life,
and fiscal solvency. Prime examples of economic development include
business attraction, business expansion and retention, and business
creation.
(7) "Emerging domestic market" means people, places, or business
enterprises with growth potential that face capital constraints due
to systemic undervaluations as a result of imperfect market
information. These markets include, but are not limited to,
ethnic-owned and women-owned firms, urban and rural communities,
companies that serve low-income or moderate-income populations, and
other small and medium-sized businesses.
(8) "Financial intermediary" means an institution, firm,
organization, or individual who performs intermediation between two
or more parties in a financial context, such as connecting sources of
funds with users of funds. A financial intermediary is typically an
entity that facilitates the channeling of funds between lenders,
investors, foundations, or other entities that have money and are
interested in connecting with businesses or communities where their
money can be deployed. Financial intermediaries include, but are not
limited to, banks, financial development corporations, economic
developers, or microenterprise development organizations, and
community development organizations.
(9) "Community development intermediary" means an institution,
firm, organization, or individual that performs intermediation
between two or more parties in a community development context, such
as connecting people and organizations that have a stake in the
future well-being of communities and individuals who may not easily
have access to these stakeholders. A community development
intermediary is typically an entity that channels financial and
nonfinancial resources between government and foundations and other
nonprofit organizations that have resources and are interested in
connecting with small- and medium-size businesses and low- and
moderate-income households and communities. Community development
intermediaries include, but are not limited to, community development
corporations, microenterprise development organizations, and
community development financial institutions.
(10) "Triple bottom line" means the economic, environmental, and
social benefits arising from a project, investment, or community and
economic development activity.
(11) "Small businesses" means a business with less than 100
employees and with a gross revenue of less than five million dollars
($5,000,000), or a business that is otherwise targeted by or
participating in a federal or state program engaged in programs or
services for small businesses. Application of this definition may
only be used pursuant to a direct reference.
(12) "Community development" means a process designed to create
conditions of economic and social prosperity for the whole community,
or a targeted subset of the whole community, with the fullest
possible reliance on the community's initiative and active
participation.
(13) "Financial institution capital" means resources of a
financial institution, including, but not limited to, a bank or
credit union, that are legally available to be used to generate
wealth for the financial institution.
(14) "California Council on Science and Technology" means the
council established by California academic research institutions,
including the University of California, the University of Southern
California, the California Institute of Technology, Stanford
University, and the California State University, in support of
Assembly Concurrent Resolution No. 162 (Res. Ch. 148, Stats. 1988).
13997.6. (a) The California Economic Development Fund is hereby
created in the State Treasury for the purpose of receiving federal,
state, local, and private economic development funds, and receiving
repayment of loans or grant proceeds and interest on those loans or
grants.
(b) Upon appropriation by the Legislature, moneys in the Fund may
be expended by the Secretary of Business, Transportation and Housing
to provide matching funds for loans or grants to public agencies,
nonprofit organizations, and private entities, and for other economic
development purposes, consistent with the purposes for which the
moneys were received.
13997.7. (a) Notwithstanding any other provision of law, effective
January 1, 2008, the Economic Adjustment Assistance Grant funded
through the United States Economic Development Administration under
Title IX of the Public Works and Economic Development Act of 1965
(Grant No. 07-19-02709 and 07-19-2709.1) shall be administered by the
Secretary of Business, Transportation and Housing, and, for the
purpose of state administration of this grant, the secretary shall be
deemed to be the successor to the former Secretary of Technology,
Trade and Commerce. The secretary may assign and contract
administration of the grant to a public agency created pursuant to
Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.
(b) On January 1, 2008, all federal moneys held in the Sudden and
Severe Economic Dislocation Grant Account within the Special Deposit
Fund are hereby transferred to the Small Business Expansion Fund
created pursuant to Section 14030 of the Corporations Code for
expenditure by the Business, Transportation and Housing Agency
pursuant to Article 9 (commencing with Section 14070) of the
Corporations Code for purposes of the Sudden and Severe Economic
Dislocation Grant program, or other purposes permitted by the
cognizant federal agency.
(c) All loan repayments received on or after January 1, 2008, for
the Sudden and Severe Economic Dislocation Grant program loans issued
pursuant to former Section 15327 (repealed by Section 1.8 of Chapter
229 of the Statutes of 2003 (AB 1757)) and this section, shall be
deposited into the Small Business Expansion Fund and shall be
available to the Business, Transportation and Housing Agency for
expenditure pursuant to the provisions of Article 9 (commencing with
Section 14070) of the Corporations Code for the Sudden and Severe
Economic Dislocation Grant program, or other purposes permitted by
the cognizant federal agency.
