Designation of Areas; Public Works and Development Facilities Program; Use of Current Data

DEPARTMENT OF COMMERCE

Economic Development Administration

13 CFR Parts 302 and 305

Docket No. [940106-4006]

RIN 0610-AA53

Designation of Areas; Public Works and Development Facilities

Program; Use of Current Data

AGENCY: Economic Development Administration (EDA), Commerce.

ACTION: Interim rule with request for comments.

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SUMMARY: The purpose of these amendments to EDA's rules at 13 CFR parts

302, subpart A and 305, subpart A, is to more accurately reflect

current policies, recent census data, and median family incomes. These

amendments are necessary in order to bring current data into play in

determining eligibility. The intended effect is to designate the most

distressed areas and to fund needed economic development projects in

accordance with current data.

DATES: Effective date April 1, 1994.

Comments received by May 31, 1994, will be considered in

promulgating a final rule.

ADDRESSES: Send comments to Joseph M. Levine, (202) 482-4687, U.S.

Department of Commerce, Herbert C. Hoover Building, 14th and

Constitution Avenue, NW., Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: Joseph M. Levine, (202) 482-4687.

SUPPLEMENTARY INFORMATION: The basis for and purpose of these

amendments is the need to update census and income data to assure

timely eligibility and funding. EDA is amending 13 CFR part 302,

Subpart A--Standards for Designation of Redevelopment Areas Under

Section 401(a) of the Act. Section 302.2, designation based on

population loss due to lack of employment opportunities, is revised by

substituting for ``substantial'' population loss, the phrase a loss of

``* * * at least 25 percent from the beginning to the end of the most

recent 10-year period, from one census to the next, for which data are

available, due to lack of employment opportunity, as certified by the

area's state employment security agency.'' Section 302.3, designation

based on median family income, is amended by deleting references to the

1980 U.S. Census, and inserting in lieu thereof, designation based on

income data from the most recent 10-year census period for which data

is available. Paragraph 302.7(a)(2), public works impact program (PWIP)

designation based on outmigration in rural areas, is amended by

deleting references to the 1980 U.S. Census, and inserting in lieu

thereof, designation based on available data for the most recent 10-

year census period. Paragraph 302.8(a)(2), special impact area

designation based on outmigration in rural areas, is amended by

deleting reference to the 1980 U.S. Census, and inserting in lieu

thereof, designation based on available data for the most recent 10-

year census period.

EDA is also amending 13 CFR part 305 subpart A--Direct and

Supplementary Grants for Public Works and Development Facilities, at 13

CFR 305.5 on supplementary grant rates, to strike outdated income

figures and to insert, in lieu thereof, new figures which constitute

the same percentage of the national median family income for the 1990

Census, as did the previous figures used for earlier Census figures.

This rule is exempt from all requirements of 5 U.S.C. 553 including

notice and opportunity to comment and delay effective date, because it

relates to public property, loans, grants, benefits and contracts.

No other law requires that notice and opportunity for comment be

given for this rule.

However, because the Department is interested in receiving comments

from those who will benefit from the amendments, this rule is being

issued as interim final. Public comments on the interim rule are

invited and should be sent to the address listed in the ADDRESSES

section above.

Since a notice and an opportunity for comment are not required to

be given for the rule under section 553 of the Administrative Procedure

Act (5 U.S.C. 553) or any other law, under sections 603(a) and 604(a)

of the Regulatory Flexibility Act (5 U.S.C. 601-612), no initial or

final Regulatory Flexibility Analysis has to be or will be prepared.

This rule does not contain a collection of information for purposes

of the Paperwork Reduction Act (Pub. L. 96-511).

This rule does not contain policies with Federalism implications

sufficient to warrant preparation of a Federalism Assessment under

Executive Order 12612.

This rule is not subject to review by the Office of Management and

Budget under Executive Order 12866.

List of Subjects

13 CFR Part 302

Community development.

13 CFR Part 305

Community development; Community facilities; Grant programs--

community development; Indians; Loan programs--community development.

For the reasons set out in the preamble, 13 CFR parts 302 and 305

are amended as set forth below:

PART 302--DESIGNATION OF AREAS

The authority citation for part 302 is revised to read as follows:

Authority: Sec. 701, Public Law 89-136, 79 Stat. 570 (42 U.S.C.

3211); Department of Commerce Organization Order 10-4, as amended

(40 FR 56702, as amended).

2. Section 302.2 is revised to read as follows:

Sec. 302.2 Designation on the basis of loss of population.

The Assistant Secretary shall designate those areas as

redevelopment areas where he/she determines that there has been a

population decline of at least 25 percent from the beginning to the end

of the most recent 10-year period, from one census to the next, for

which data are available, due to lack of employment opportunity, as

certified by the area's state employment security agency.

3. Section 302.3 is amended by revising paragraph (b) to read as

follows:

Sec. 302.3 Designation on the basis of median family Income.

* * * * *

(b) Determinations of median family income are to be based on the

income figures shown from the beginning to the end of the most recent

10-year census period for which data is available.

4. Section 302.7 is amended by revising paragraph (a)(2) to read as

follows:

Sec. 302.7 Designation of public works impact program areas.

(a) * * *

(2) Rural areas having substantial outmigration. This includes an

area which has experienced a minimum outmigration rate of at least 25

percent during the period from the beginning to the end of the most

recent ten (10) year census period for which data is available.

* * * * *

5. Section 302.8 is amended by revising paragraph (a)(2) to read as

follows:

Sec. 302.8 Designation of special impact areas.

* * * * *

(a) * * *

(2) Rural areas having substantial outmigration. This includes any

area which has experienced a minimum outmigration rate of at least 25

percent during the period from the beginning to the end of the most

recent ten (10) year census period.

* * * * *

PART 305--PUBLIC WORKS AND DEVELOPMENT FACILITIES PROGRAM

1. The authority citation for part 305 continues to read as

follows:

Authority: Sec. 701, Public Law 89-136, 79 Stat. 570 (42 U.S.C.

3211); Department of Commerce Organization Order 10-4, as amended

(40 F.R. 56702, as amended).

2. Section 305.5 is amended by revising paragraphs (b)(3) (vi),

(vii) and (viii) to read as follows:

Sec. 305.5 Supplementary grant rates.

* * * * *

(b) * * *

(3) * * *

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

Maximum

Projects grant rates

(percent)

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*****

(vi) Projects located in areas designated under Title IV of

the Act in which the median annual family income is

$13,103 or below, or the average unemployment rate for the

preceding 24 months is 12 percent or higher...............

(vii) Projects located in areas designated under Title IV

of the Act in which the median annual family income is

$13,104 to $14,618, or the average unemployment rate for

the preceding 24 months is 10 percent to 11.9 percent..... 70

(viii) Projects located in areas designated under Title IV

of the Act in which the median annual family income is

$14,619 to $16,098, or the average unemployment rate for

the preceding 24 months is 8 percent to 9.9 percent....... 60

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* * * * *

Dated: March 24, 1994.

William W. Ginsberg,

Assistant Secretary for Economic Development.

[FR Doc. 94-7858 Filed 3-31-94; 8:45 am]

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