Notice Inviting Applications for Designation of Rural Empowerment Zones

SUMMARY: This Notice invites applications from state and local

governments, Indian tribal governments, regional planning agencies,

non-profit organizations, community-based organizations, or other

locally-based organizations on behalf of rural areas nominated for

designation as Empowerment Zones (EZs) as this term is defined in this

Notice and in an interim rule published elsewhere in today's Federal

Register. An application may be prepared and submitted by any one of a

broad range of entities; however, the rural area in question must be

nominated for designation by the state, local and Indian tribal

governments having jurisdiction over the nominated area. The interim

rule provides guidance which is supplemental to that provided in this

Notice and which is necessary for completion and submission of

applications.

DATES: Application due date: The deadline for receipt of a complete

application is 5 p.m. Eastern Daylight Savings Time, October 9, 1998.

Applications received after this date will not be considered.

Applications may not be submitted prior to 30 days from the date of

publication of the interim rule.

ADDRESSES: Application materials may be obtained from U.S. Department

of Agriculture (USDA) Rural Development Offices listed in appendix A to

this Notice or by sending an Internet Mail message to

www.ezec.gov">``[email protected]www.ezec.gov''.

FOR FURTHER INFORMATION CONTACT: Deputy Administrator, USDA Office of

Community Development, EZ/EC Team, Reporters Building, Room 701, STOP

3203, 300 7th Street, SW, Washington, DC 20024-3203, telephone 1-800-

851-3403, or by sending an Internet e-mail message to

www.ezec.gov">``[email protected]www.ezec.gov'' to obtain information. Information may

also be obtained at the following website: ``http://www.ezec.gov/

round2''.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The information collection requirements contained in this Notice

have been approved by the Office of Management and Budget (OMB) on an

emergency basis through August 31, 1998 and assigned control numbers

0570-0026 (Application burden) and 0570-0027 (Reporting burden). See

the interim rule on ``Designation of Rural Empowerment Zones and

Enterprise Communities'' published elsewhere in this issue of the

Federal Register for additional information on this subject, including

the opportunity to comment on the burden of the information

collections.

I. Background

One of the core items of President Clinton's economic proposals is

the need to empower America's distressed rural and urban communities.

His Empowerment Zone proposal represents a new approach to the problems

of distressed communities. It emphasizes a bottom-up community based

strategy rather than the traditional top-down bureaucratic approach. It

is a strategy to address economic, human, community, and physical

development problems and opportunities in a comprehensive fashion.

Title IX of the Taxpayer Relief Act of 1997 authorized the

Secretary of the U.S. Department of Agriculture (Secretary) to

designate up to five rural Empowerment Zones (``Round II'') in addition

to those rural empowerment zones and enterprise communities designated

by the Secretary in December 1994 pursuant to title XIII of the Omnibus

Budget Reconciliation Act of 1993 (``Round I''). Notice of the Round I

designations was published on May 10, 1995 (60 F.R. 24828). This Notice

invites applications from State and local governments, Indian tribal

governments, regional planning agencies, non-profit organizations,

community-based organizations, or other locally-based organizations on

behalf of rural areas nominated for designation as Empowerment Zones in

this second round.

The program is intended to combine the resources of the Federal

Government with those of State and local governments, educational

institutions and the private and non-profit sectors to implement

community-developed strategic plans for economic development. The

Federal Government has taken steps to coordinate Federal assistance in

support of the Empowerment Zones, including expedited processing and

priority funding. To that end, President Clinton issued an Executive

Memorandum dated September 9, 1993 establishing a Community Empowerment

Board chaired by Vice President Al Gore to ensure the success of the

Empowerment Zone initiative.

The first round of Empowerment Zone and Enterprise Community

designations made in 1994 featured grants from the U.S. Department of

Health and Human Services to States for the designated Empowerment

Zones and Enterprise Communities. While similar grant funds have not

been authorized for the Round II Empowerment Zones, we anticipate that

funding may become available in Fiscal Year 1999.

II. Eligibility

The authorizing legislation specifies certain criteria that must be

satisfied in order for an area to be eligible for Empowerment Zone

designation, including population, general distress, geographic size

and boundary configuration, and poverty rate by census tract (or by

block numbering areas when the community is not delineated by census

tracts; nominated areas in Alaska and Hawaii have the option of

qualifying by block groups). The details of these requirements are

described in the interim rule published elsewhere in today's Federal

Register (interim rule). Unless specified otherwise, the terms used in

this Notice, inclusive of the appendices, shall be defined as set forth

in the interim rule. All section references refer to the interim rule.

This information must be provided in the application. USDA will

accept certifications of the data by the state and local governments,

subject to further verification of the data prior to designation as an

Empowerment Zone.

III. Designation Factors

The statute specifies three factors to be considered by the

Secretary in designating Empowerment Zones: (1) The effectiveness of

the strategic plan; (2) the effectiveness of the assurances provided in

support of the strategic plan; and (3) other criteria to be specified

by the Secretary. Each of these factors is discussed in greater detail

in the interim rule. The required form and content of the application

and the strategic plan are elaborated upon in this Notice.

IV. Timing and Location of Application Submissions

Application materials may be obtained from USDA Rural Development

offices listed in the appendix to this Notice or by sending an Internet

e-mail message to: www.ezec.gov">``[email protected]www.ezec.gov''. They are also

available at the following website: ``http://www.ezec.gov/

[[Page 19144]]

round2''. An application may be submitted not earlier than 30 days

after the date of publication of the interim final rule governing Round

II. The deadline for receipt of the complete application is 5 p.m.

Eastern Daylight Savings Time, October 9, 1998. Applications received

after that time will not be accepted, and will be returned to the

sender. As the applications require certifications from the state and

local governments, we cannot accept applications sent by FAX or through

the internet system. The original application and two paper copies

should be sent to: U.S. Department of Agriculture, Office of Community

Development, Reporters Building, 300 7th Street, SW, Room 701,

Washington, DC 20024.

Applicants will be notified in the event of an incomplete

application. Provided that the application is received at the above

address with sufficient time before the deadline, applicants will be

given an opportunity to provide the missing information to USDA.

V. Notice of Intent To Participate

Prospective applicants should complete and submit a Notice of

Intent to Participate substantially in the form provided in appendix B

to this Notice. A Notice form is included in the application materials;

it may also be obtained by sending an Internet e-mail message to

www.ezec.gov">``[email protected]www.ezec.gov''. Applicants may also submit the notice

via the internet by filling out the form on-line at the following

website: ``http://www.ezec.gov/round2''. Applicants and other

participants may wish to submit the form in order to be placed on the

Empowerment Zone and Enterprise Community mailing list. While the

notice is not mandatory for participation in the program, USDA

encourages the submission of the notice as it will permit the

Department to provide prospective applicants with updated information

on program requirements as well as information on technical assistance.

VI. Application Materials

A. Application materials available from USDA consist of the

following:

(1) Round II application form.

(2) Round II application guide.

B. The Application to be submitted on behalf of nominated rural

areas shall include the following (``Application''):

(1) A nomination package including:

(a) Round II application form parts I through IV; and

(b) The required certifications and written assurances contained in

Sec. 25.200(b) of the interim rule which are not otherwise included in

part III of the Round II application form;

(2) A strategic plan which meets the requirements of the interim

rule and the form and content requirements specified in section VII of

this Notice; and

(3) Maps. Attach a copy of the 1990 census map that shows the

boundaries of:

(a) The local governments discussed in part I of the Application

Form (Nomination);

(b) The nominated area; and

(c) Developable sites, if any.

VII. Strategic Plan

A. The strategic plan to be submitted on behalf of the nominated

area shall conform with the requirements contained in Sec. 25.202 and

Sec. 25.303 of the interim rule. Each major section of the strategic

plan should address how the plan will achieve the four key principle

objectives contained in Sec. 25.202.

B. The strategic plan must be organized into two separate volumes.

Each volume should prominently identify the nominated area and be

organized and labeled in the following sections and specified sequence.

C. Volume I of the Strategic Plan (``Documentation''). Volume I

must include the following sections and content:

(1) Section 1--Participants.

(a) Applicant and Lead entities: the name, address, description and

primary contact person for the entity that will be the lead managing

entity for the proposed Empowerment Zone. Clarify whether the applicant

is different from the proposed lead managing entity; if so, provide the

same information for the applicant entity;

(b) Participating entities: a list of and descriptions of the

specific groups, organizations, and individuals participating in the

production of the strategic plan, and descriptions of the history of

these groups in the community; and

(c) An explanation of how participants in the planning process were

selected and evidence that the participants, taken as a whole, are

broadly representative of the entire community.

(2) Section 2--The Planning Process.

(a) Descriptions of how the participants created and developed the

strategic plan;

(b) Identification of two or three topics addressed in the

strategic plan that caused the most serious disagreements among

participants and a description of how those disagreements were

resolved; and

(c) An explanation of how the community residents and key

organizations participated in choosing the area to be nominated and why

the area was nominated.

(3) Section 3--Eligibility.

(a) Include information not otherwise provided in the application

form, or use this section if additional space is needed to provide

eligibility information; and

(b) Maps and a general description of the nominated area.

(4) Section 4--Economic and Social Conditions. Detailed statistical

information, including tabular and graphical information, not included

in volume II, should be included in this section.

(5) Section 5--Implementation. This section should include:

(a) Descriptions of the roles which each participating entity,

identified in volume I, section 1, will have in implementing the

strategic plan; and

(b) Evidence that key participating entities have the capacity to

implement the strategic plan.

(6) Section 6--Public Information. This section should include

newspaper clippings, photographs, news releases and other materials

relating to the community and its strategic planning process.

(7) Section 7--Letters of Support. Letters of support which are

submitted as part of the Application should be grouped in this section

of the strategic plan.

(8) Section 8--Other Attachments. Any other materials, including

non-standard items such as videotapes, should be included in this

section, or where, impractical, should be listed in this section and

attached as separate items.

D. Volume II of the Strategic Plan (``Plan''), Part I. Volume II

must contain four major subparts of which part I must include the

following sections and content:

(1) Section 1--Vision and Values. The community's strategic vision

for change--a statement of what the community would like to be like in

the future together with a statement of the community's values which

guided its planning process and which will guide its implementation of

the strategic plan.

(2) Section 2--Community Assessment. A comprehensive assessment of

existing conditions and trends in the nominated area in two

subsections:

(a) Assessment of Problems and Opportunities. A description and

assessment of problems and opportunities. This subsection must identify

those baseline conditions which the community wishes to improve as a

result of the strategic plan.

[[Page 19145]]

It may include priority rankings by the community of problems and

opportunities to be addressed by the strategic plan.

(b) Resource Analysis. An assessment of the resources available to

the community, including financial, technical, leadership,

volunteerism, skills and other community assets which may be tapped in

implementing the strategic plan.

(3) Section 3--Goals. A statement of a comprehensive and holistic

set of goals to be achieved through implementation of the strategic

plan throughout the 10-year implementation period. This section should

also include an index of topics and related benchmark activities which

are incorporated in the strategic plan (education, criminal justice,

economic development, housing, health care, water and sewer, etc.) so

as to facilitate the sharing of information across Federal agencies

such that they may more readily recognize how they may be able to

support the Empowerment Zone during the implementation phase.

(4) Section 4--Strategies. A statement of the strategies the

community proposes to use to achieve its strategic plan, in particular,

the principal objectives of economic opportunity and sustainable

community development contained in Sec. 25.202 (a)(3) and (a)(4).

E. Volume II of the Strategic Plan (``Plan''), Part II. The second

major subpart of volume II must include the following sections and

content:

(1) Section 1--Phase I work plan. The information required pursuant

to Sec. 25.403(c)(1) for the initial two years of the designation

period.

(2) Section 2--Phase I operational budget. The information required

pursuant to Sec. 25.402(c)(2) for the initial two years of the

designation period.

(3) Section 3--Uses of EZ/EC SSBG grants: A detailed explanation of

how the applicant proposes to use any Empowerment Zone/Enterprise

Community Social Services Block Grant (EZ/EC SSBG) funds that become

available to States for use by designated rural Empowerment Zones.

General guidelines concerning uses of EZ/EC SSBG funds are included in

appendix C to this Notice and on the Internet at http://

aspe.os.dhhs.gov/progsys/HHSguide.htm. Applicants are encouraged to

review the guidelines.

F. Volume II of the Strategic Plan (``Plan''), Part III. The third

major subpart of volume II should be titled ``Continuous Quality

Improvement Plan''. Part III should present the community's plan for

evaluating and learning from its experiences. It should also detail the

methods by which the community will assess its own performance in

implementing its benchmarks and the process it will use for revising

its strategic plan and benchmark goals. Part III should include the

following sections and content:

(1) Section 1--Participation. The proposed procedures for assuring

continuous, broad based community participation in the implementation

of the strategic plan;

(2) Section 2--Incorporation of experiences. The methods proposed

for incorporating learning from experience gained during implementation

of the strategic plan and from information obtained from other sources

into revisions of the strategic plan, benchmark goals and

implementation methods and procedures;

(3) Section 3--Benchmark review. The proposed procedure for

reviewing benchmark progress within the community; and

(4) Section 4--Benchmark amendment. The proposed procedure for

amending and revising benchmark goals and benchmark activities.

G. Volume II of the Strategic Plan (``Plan''), Part IV. The fourth

major subpart of volume II should be titled ``Administration Plan''.

Part IV should present the community's plan for administering the

implementation of the strategic plan. It should include the following

sections:

(1) Section 1--Lead entity. The name of the proposed lead entity

organization, its existing and planned future legal status and

authority to receive and administer funds pursuant to Federal and state

and other nonprofit programs;

(2) Section 2--Capacity. Evidence, including an audited financial

statement as of the most recent fiscal year, that the lead entity and

other key organizations implementing the strategic plan have the

capacity to implement the strategic plan. If the lead entity is not yet

established, provide evidence of its proposed capitalization;

(3) Section 3--Board membership. The membership of the proposed

Empowerment Zone board and the selection procedures;

(4) Section 4--Partnerships. The relationship between the EZ board

and local governments and other major regional and community

organizations operating in the same geographic area;

(5) Section 5--Public information. The proposed methods by which

citizens of the Empowerment Zone and partnership organizations will be

kept informed about the Empowerment Zone's activities and progress in

implementing the strategic plan;

(6) Section 6--Public participation. The methods and procedures by

which the Empowerment Zone proposes to implement the principal

objective of community based partnerships pursuant to

Sec. 25.202(a)(2).

VIII. Counties Which Meet the Outmigration Test for Purposes of

Sec. 25.104(b)(2)(iii) of the Interim Rule

For purposes of volume I, section 3--Eligibility, counties which

meet the outmigration test for purposes of Sec. 25.104(b)(2)(iii) of

the interim rule are listed in appendix D to this Notice.

IX. Round I and Round II Champion Communities

Round I and Round II applicants which have been granted the status

of Champion communities will be notified in writing by USDA.

X. Memorandum of Agreement

It is expected that a Memorandum of Agreement (MOA) will be entered

into relating to each designated Round II Empowerment Zone. The MOA

shall conform in all material respects to the form of MOA provided in

appendix E to this Notice.

XI. Miscellaneous

Empowerment Zone designation does not constitute a Federal action

for provisions of the Uniform Relocation Act. However, any activity

constituting a Federal action that may result from such a designation

may be subject to the provision of this Act, as well as any other

statutory or regulatory provisions governing the particular Federal

action.

All designation reviews will be conducted in compliance with

Federal civil rights laws.

Dated: April ______, 1998.

Dan Glickman,

Secretary of Agriculture.

List of Appendices

A--Rural Development State EZ-EC State Contacts

B--Notice of Intent to Participate

C--EZ/EC SSBG Guidance from HHS

D--Counties which meet the Outmigration test

E--Form of Memorandum of Agreement

Appendix A: EZ/EC State Contacts

Alabama

Chris Harmon, Rural Development, Sterling Center, 4121 Carmichael

Road/Suite 601, Montgomery, AL 36106-3683, phone: 334-279-3400, fax:

334-279-3403

Alaska

Frank A. Muncy, Rural Development, 800 W. Evergreen, Suite 201,

Palmer, AK 99645-6539, phone: 907-745-2176, fax: 907-745-5398

Arkansas

Shirley Tucker, Rural Development, Federal Building, Room 3416, 700

W Capitol, Little

[[Page 19146]]

Rock, AR 72201, phone: 501-324-6284, fax: 501-324-7351

Arizona

Dennis Daniels, Rural Development, 2585 North Grand Avenue, Suite

#5, Nogales, AZ 85621, phone: 520-281-1068 (voice), phone: 602-609-

0699 (cellular), fax: 520-281-1460

California

Gina Briley, Rural Development, 194 W Main Street/ Suite F,

Woodland, CA 95695, phone: 530-668-2000, fax: 530-668-2055

Colorado

Vic Crain, Rural Development, 655 Parfet, Room E-100, Lakewood, CO

80215, phone: 303-236-2801 Ext. 134, fax: 303-236-2854

Delaware/Maryland

Joseph E. O'Neil, Rural Development, 5201 South Dupont Highway, P.O.

Box 400, Camden, DE 19934, phone: 302-697-4304, fax: 302-697-4390

Florida/Virgin Islands

Glenn Walden, Rural Development, 4440 N.W. 25th Pl., PO Box 147010,

Gainesville, FL 32614-7010, phone: 352-338-3440, fax: 352-338-3452

Georgia

Donnie Thomas, Rural Development, 355 E. Hancock Ave., Stephens

Federal Building, Athens, GA 30601-2768, phone: 706-546-2162, fax:

706-546-2152

Hawaii

Ted Matsuo, Rural Development, Federal Building, Room 311, 154

Waianuenue Ave., Hilo, HI 96720, phone: 808-933-3009, fax: 808-933-

6901

Idaho

Dale Lish, Rural Development, 745 W. Bridge/Suite H, Blackfoot, ID

83221, phone: 208-785-5840, fax: 208-785-6561

Illinois

Charles Specht, Rural Development, 1817 S. Neil Street, Suite 103,

Champaign, IL 61820, phone: 217-398-5412, fax: 217-398-5337

Indiana

Joseph Steele, Rural Development, 5975 Lakeside Blvd., Indianapolis,

IN 46278, phone: 317-290-3109, fax: 317-290-3127

Iowa

Dorman Otte, Rural Development, 210 Walnut Street, Federal Bldg./

Room 873, Des Moines, IA 50309, phone: 515-284-4152, fax: 515-284-

4859

Kansas

Larry Carnahan, P. O. Box 386, Altamont, KS 67330, phone: 316-784-

5319, fax: 316-784-5900

Kentucky

James Letcher, Rural Development, 771 Corporate Dr., Suite 200,

Lexington, KY 40503, phone: 606-224-7326, fax: 606-224-7347

Louisiana

Mike Taylor, Rural Development, 3727 Government Street, Alexandria,

LA 71302, phone: 318-473-7811, fax: 318-473-7829

Maine

Alan C. Daigle, Rural Development, 444 Stillwater Ave., Suite 2, P.

O. Box 405, Bangor, ME 04402-0405, phone: 207-990-9168, fax: 207-

990-9165

Massachusetts

Richard J. Burke, Rural Development, 451 West St., Amherst, MA

01002, phone: 413-253-4300, fax: 413-253-4347

Michigan

Reginald Magee, Rural Development, 1101 E. Washington, P. O. Box

220, Baldwin, MI 49304, phone: 616-745-8364, fax: 616-745-8493

Minnesota

Deborah Slipek, Rural Development, 410 Farm Credit Services Bldg,

375 Jackson Street, St. Paul, MN 55101-1853, phone: 612-602-7799,

fax: 612-602-7824

Mississippi

Jane Jones, Rural Development, 100 W Capital St., Suite 831,

Jackson, MS 39269, phone: 601-965-5457, fax: 601-965-4257

Missouri

D. Clark Thomas, Rural Development, 70 W. Parkade Center, Suite 235,

Columbia, MO 65203, phone: 573-876-9319, fax: 573-876-0984

Montana

Anthony Preite, Rural Development, 900 Technology Blvd. Suite B, P.

O. Box 850, Bozeman, MT 59771, phone: 406-585-2580, fax: 406-585-

2565

Nebraska

Dale T. Wemhoff, Rural Development, Norfolk Area Office, 1909 Vicki

Lane/Suite 103, Norfolk, NE 68701, phone: 402-371-6193, fax: 402-

371-8930

Nevada

Mike Holm, Rural Development, 1390 South Curry St., Carson City, NV

89703-5405, phone: 702-887-1222, fax: 702-885-0841

New Hampshire/Vermont

William W. Konrad, Rural Development, 501 South Street, Bow, NH

03304, phone: 603-226-9331, fax: 603-226-9338

New Jersey

Michael P. Kelsey, Rural Development, Tarnsfield Plaza, Suite 22,

790 Woodland Rd., Mt. Holly, NJ 08060, phone: 609-265-3640, fax:

609-265-3651

New Mexico

Bill Culbertson, Rural Development, 6200 Jefferson NE, Albuquerque,

NM 87109, phone: 505-761-4973, fax: 505-761-4976

New York

Marge Evanek, Rural Development, Center Ithaca, Box 142, 171 East

State Street, Ithaca, NY 14850, phone: 607-272-3023, fax: 607-275-

9624

North Carolina

Debra Nesbitt, Rural Development, 4405 Bland Rd, Suite 260, Raleigh

NC 27609, phone: 919-873-2042, fax: 919-873-2075

North Dakota

William Davis, Rural Development, P. O. Box 1737, Bismarck, ND

58502, phone: 701-250-4781, fax: 701-250-4670

Ohio

Allen L. Turnbull, Rural Development, Federal Building, Room 640,

200 North High Street, Columbus OH 43215, phone: 614-469-5400, fax:

614-469-5758

Oklahoma

Sally Vielma, Rural Development, 100 USDA, Suite 108, Stillwater, OK

74074-2654, phone: 405-742-1039, fax: 405-742-1101

Oregon

Jack Ware, Rural Development, 1101 Ellen Ave., Medford, OR 97501,

phone: 541-776-4293, fax: 541-776-4295

Pennsylvania

Nancy Brewer, 36 Spring Run Road, Rm. 103, Mill Hall, PA 17751,

phone: 717-726-3196, ext. 203, fax: 717-726-0064

Puerto Rico

Julio Chevres, Rural Development, P. O. Box 366106, San Juan, PR

00936-6106, fax: 787-281-4993

South Carolina

William Molnar, Rural Development, 1835 Assembly Street, Room 1007,

Columbia, SC 29201, phone: 803-253-3249, fax: 803-765-5633

South Dakota

Robert Bothwell, Rural Development, Federal Building, Room 210, 200

Fourth Street SW, Huron, SD 57350-2477, phone: 605-352-1142, fax:

605-352-1146

Tennessee

Tom Mayberry, Jr., Rural Development, 3322 West End Ave., Suite 300,

Nashville, TN 37203-1071, phone: 615-783-1308/783-1409, fax: 615-

783-1301/1394

Texas

David Gonzalez, Rural Development, 4400 E. Hwy 83, Rio Grande City,

TX 78582, phone: 956-487-5576, ext. 202, fax: 956-487-7882

Utah

A. Richard Osmond, Rural Development, Federal Bldg Room 5438, 125

South State St., Salt Lake City, UT 84138, phone: 801-524-3248, fax:

801-524-4406

Vermont/New Hampshire

William W. Konrad, Rural Development, 501 South Street, Bow, NH

03304, phone: 603-226-9331, fax: 603-226-9338

Virginia

Reginald Rountree, Rural Development, 1606 Santa Rosa Road,

Richmond, VA 23229, phone: 804-287-1557, fax: 804-287-1786

Washington

Karen Bailor, Rural Development, 1835 Blacklake Blvd. SW, Suite B,

Olympia, WA 98512, phone: 360-704-7750, fax: 360-704-7742

Wisconsin

David Gibson, Rural Development, 4949 Kirschling Court, Stevens

Point, WI 54481, phone: 715-345-7676, fax: 715-345-7669

[[Page 19147]]

West Virginia

James Anderson, Rural Development, 4510 Pennsylvania Ave., Big

Chimney, WV 25302, phone: 304-965-2712, fax: 304-965-2715

Wyoming

John Cochran, Rural Development, 100 East B, Federal Bldg. Room

1005, Casper, WY 82602, phone: 307-261-6319, fax: 307-261-6327

Appendix B--Notice of Intent To Participate

U.S. Department of Agriculture, Rural Development, Office of

Community Development Room 701, 300 Seventh Street, NW, Washington,

D.C. 20024

Note: Rural entities may:

(1) Fax this notice to (202) 690-1395;

(2) Submit this notice via e-mail to

www.ezec.gov">``[email protected]www.ezec.gov''; or

(3) Submit it electronically via the following website: ``http://

www.ezec.gov/round2''

This Notice of Intent to Participate in the Rural Empowerment

Zone application process is submitted by the following participating

entity:

Location of Nominated Area (list state and counties proposed to

be included):

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

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

Name & Address of Participating Entity:

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

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

Contact & Phone Number, Fax Number and E-mail address:

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

__ Nominating Entity (check here if applicable)

__ Nominating Entity (if other than named above) (City, State):

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

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

Appendix C

The text of this Appendix which follows was provided by the U.S.

Department of Health and Human Services:

(1) Background

This appendix includes general guidance about allowed uses of

any Round II EZ/EC SSBG funds that may be made available for Round

II Empowerment Zones (EZs). It is based on the assumption that any

Round II EZ/EC SSBG funding will be subject to the same statutory

restrictions as the Round I EZ/EC SSBG grants. The U.S. Department

of Health and Human Services (HHS) will issue further guidance

regarding any Round II EZ/EC SSBG funds soon after it is authorized

to award the funds.

(2) Awards to States

(a) HHS will award Round II EZ/EC SSBG grants to each State that

nominated a designated Round II EZ. HHS will award the funds for

each Round II EZ to the State agency that typically receives Social

Services Block Grants, unless the EZ Lead Entity and its State

request HHS to award them to a different agency.

(b) The HHS Terms and Conditions of the Round II EZ/EC SSBG

grants will direct the recipient State agency to provide the funds

to the appropriate Round II EZ Lead Entity(ies) for activities

specified in the EZ's strategic plan and benchmarks. It is expected

that the EZs will revise their plans and benchmarks from time to

time.

(3) Allowed Uses of Round II EZ/EC SSBG Funds

(a) The Round II EZs may use Round II EZ/EC SSBG funds for a

wide variety of programs, services and activities directed at

revitalizing distressed communities and promoting economic

independence for residents. Allowed programs, services and

activities include, but are not limited to:

Community and economic development programs and efforts

to create employment opportunities;

Job training and job readiness projects;

Health programs such as public health education,

primary health care, emergency medical services, alcohol and

substance abuse prevention and treatment programs, and mental health

services;

Human development services such as child, youth and

family development programs, services for the elderly, and child

care services;

Education projects such as after-school activities,

adult learning classes, and school-to-work projects;

Transportation services;

Environmental clean up programs;

Policing and criminal justice projects such as

community policing efforts and youth gang prevention programs;

Housing programs;

Projects providing training and technical assistance to

the EZ Lead Entity, its board and committee members, and other

organizations; and

Projects to finance community-focused financial

institutions for enhancing the availability of credit such as loan

funds, revolving loan funds, and micro-enterprise loan funds as well

as other activities for easing financial barriers faced by social

services entities, housing organizations and other organizations

serving EZ residents.

(b) Round II EZs may use the Round II EZ/EC SSBG funds for

projects supported in part with other federal, state, local or

private funds, and they may allocate a portion of the funds to the

State grantee agency for its administrative and grant oversight

costs. Round II EZs may not use the funds as the source of local

matching funds required for other federal grants.

(c) Round II EZs must ensure that each proposed use of Round II

EZ/EC SSBG funds is: directed at one or more of the EZ/EC SSBG

statutory goals; included in the strategic plan; structured to

benefit EZ residents; and in compliance with all applicable federal,

state and local laws and regulations.

(d) EZ/EC SSBG Statutory Goals: The statutory goals for uses of

EZ/EC SSBG funds are as follows:

(1) Achieving and maintaining economic self-support for

residents, to help them develop and retain the ability to support

themselves and their families economically;

(2) Achieving and maintaining self-sufficiency for residents, to

enable them to become and remain able to care for themselves in

daily activities and in the long-term; and

(3) Preventing Neglect and Abuse and Preserving Families, to

protect children and adults, who are unable to protect themselves

from neglect, abuse or exploitation, and to preserve, rehabilitate

or reunite families living in the designated neighborhoods.

(e) Strategic Plan: All programs, services and activities

financed in whole or in part with Round II EZ/EC SSBG funds must be

included in the strategic plan and benchmarks. Each project

description must indicate the EZ/EC SSBG statutory goal it is

attempting to achieve and how it will benefit EZ residents.

(f) Resident Benefit: All programs, services and activities

financed in whole or in part with Round II EZ/EC SSBG funds must be

structured to benefit EZ residents; the programs, services and

activities may also benefit nonresidents.

(g) EZ/EC SSBG Statutory Program Options: To the extent

consistent with the local strategic vision, localities may use Round

II EZ/EC SSBG funds to finance programs, services and activities for

addressing any of the following broad statute-based ``program

options.'' EZs that use the funds for any of the program options

will have more flexibility in uses of funds. (See section (h)

below). The EZs are not required to use the funds for the program

options, and may use Round II EZ/EC SSBG funds to finance programs,

services and activities addressing other issues. The program options

are as follows:

(1) To provide residential or nonresidential drug and alcohol

prevention and treatment programs that offer comprehensive services

for residents, particularly for pregnant women and mothers and their

children;

(2) To support:

(A) Training and employment opportunities for disadvantaged

adults and youths in construction, rehabilitation, or improvement of

affordable housing, public infrastructure, and community facilities;

and

(B) Nonprofit organizations such as community and junior

colleges providing short-term training courses for disadvantaged

adults and youths about entrepreneurism and self-employment, and

other types of training that will promote individual self-

sufficiency and the interests of the community.

(3) To support projects designed to promote and protect the

interests of children and families outside of school hours,

including keeping schools open during evenings and weekends for

mentoring and study.

(4) To support:

(A) Services designed to promote community and economic

development and job support services such as skills training, job

counseling, transportation services, housing counseling, financial

management, and business counseling;

(B) Emergency and transitional housing and shelters for families

and individuals; or

(C) Programs that promote home ownership, education, and other

routes to economic independence for families and individuals.

(h) To the extent a program, service or activity in the

strategic plan and benchmark

[[Page 19148]]

document is a statutory program option listed in section (g) above,

the EZ may use the Round II EZ/EC SSBG funds to implement that

activity including to:

(1) purchase or improve land or facilities;

(2) make cash payments to individuals for subsistence or room

and board;

(3) make wage payments to individuals as a social service;

(4) make cash payments for medical care; and

(5) provide social services to institutionalized persons.

(i) To the extent a program, service or activity in the

strategic plan and benchmark document is not a statutory program

option listed in section (g) above, the EZ may use Round II EZ/EC

SSBG funds for the following purposes as a component of that

activity only after receiving approval from the U.S. Department of

Health and Human Services:

(1) purchase or improve land or facilities;

(2) make cash payments to individuals for subsistence or room

and board;

(3) make wage payments to individuals as a social service;

(4) make cash payments for medical care; or

(5) provide social services to institutionalized persons.

(j) To the extent a program, service or activity in the

strategic plan and benchmark document is not one of the program

options listed in section (g) above, the plan must include a

statement explaining why the locality chose that project.

Appendix D

Counties (including other geographic areas, as applicable) which

have demonstrated outmigration of not less than 15 percent over the

period 1980-1994 as reported by the U.S. Bureau of the Census.

Alabama

Conecuh County

Dallas County

Greene County

Lowndes County

Macon County

Perry County

Wilcox County

Alaska

Aleutians West Census Area

Bristol Bay Borough

Southeast Fairbanks Census Area

Wade Hampton Census Area

Yukon-Koyukuk Census Area

Arizona

Greenlee County

Arkansas

Arkansas County

Chicot County

Desha County

Lee County

Mississippi County

Monroe County

Phillips County

St. Francis County

Woodruff County

Colorado

Baca County

Conejos County

Jackson County

Kiowa County

Lake County

Logan County

Mineral County

Moffat County

Otero County

San Juan County

Sedgwick County

Washington County

Florida

Hardee County

Georgia

Calhoun County

Early County

Miller County

Randolph County

Terrell County

Turner County

Idaho

Bear Lake County

Butte County

Caribou County

Clark County

Clearwater County

Elmore County

Shoshone County

Illinois

Alexander County

Mason County

Pulaski County

Stark County

Warren County

Indiana

Miami County

Iowa

Adams County

Audubon County

Buchanan County

Cherokee County

Chickasaw County

Clay County

Clinton County

Crawford County

Emmet County

Fayette County

Floyd County

Franklin County

Greene County

Grundy County

Hancock County

Humboldt County

Jackson County

Kossuth County

Lyon County

Osceola County

Palo Alto County

Pocahontas County

Shelby County

Webster County

Kansas

Barber County

Barton County

Decatur County

Doniphan County

Geary County

Gove County

Graham County

Haskell County

Jewell County

Morton County

Ness County

Osborne County

Rawlins County

Rice County

Rooks County

Rush County

Scott County

Sheridan County

Sherman County

Stanton County

Trego County

Wallace County

Wichita County

Kentucky

Bell County

Breathitt County

Floyd County

Fulton County

Hardin County

Harlan County

Leslie County

Letcher County

Martin County

Perry County

Pike County

Louisiana

Cameron Parish

Catahoula Parish

Concordia Parish

East Carroll Parish

Iberville Parish

Madison Parish

Morehouse Parish

Red River Parish

Richland Parish

St. Mary Parish

Tensas Parish

Vernon Parish

Maine

Aroostook County

Michigan

Iosco County

Luce County

Marquette County

Minnesota

Big Stone County

Cottonwood County

Faribault County

Freeborn County

Jackson County

Kittson County

Lac qui Parle County

Lake County

Lincoln County

Pennington County

Red Lake County

Redwood County

Renville County

Swift County

Traverse County

Wilkin County

Yellow Medicine County

Mississippi

Adams County

Bolivar County

Claiborne County

Coahoma County

Holmes County

Humphreys County

Issaquena County

Jefferson County

Leflore County

Noxubee County

Quitman County

[[Page 19149]]

Sharkey County

Sunflower County

Tallahatchie County

Tunica County

Warren County

Washington County

Yazoo County

Missouri

Knox County

Mississippi County

Pemiscot County

Pulaski County

Montana

Big Horn County

Carter County

Daniels County

Dawson County

Deer Lodge County

Fallon County

Garfield County

Hill County

Judith Basin County

Liberty County

McCone County

Meagher County

Petroleum County

Pondera County

Powder River County

Prairie County

Richland County

Roosevelt County

Rosebud County

Sheridan County

Toole County

Treasure County

Valley County

Wibaux County

Nebraska

Antelope County

Arthur County

Banner County

Blaine County

Boone County

Box Butte County

Boyd County

Brown County

Cedar County

Cuming County

Frontier County

Garden County

Grant County

Hayes County

Hitchcock County

Holt County

Hooker County

Keya Paha County

Kimball County

Knox County

Lincoln County

Logan County

Loup County

Morrill County

Nuckolls County

Red Willow County

Rock County

Sioux County

Stanton County

Thomas County

Thurston County

Wheeler County

New Mexico

Cibola County

Guadalupe County

Harding County

Lea County

McKinley County

Union County

North Dakota

Adams County

Benson County

Billings County

Bottineau County

Bowman County

Burke County

Cavalier County

Dickey County

Divide County

Dunn County

Eddy County

Emmons County

Foster County

Golden Valley County

Grant County

Griggs County

Hettinger County

Kidder County

LaMoure County

Logan County

McHenry County

McIntosh County

McKenzie County

McLean County

Mercer County

Mountrail County

Oliver County

Pembina County

Pierce County

Renville County

Sargent County

Sheridan County

Sioux County

Slope County

Stark County

Steele County

Stutsman County

Towner County

Walsh County

Ward County

Wells County

Williams County

Oklahoma

Beaver County

Blaine County

Cimarron County

Ellis County

Harmon County

Harper County

Jackson County

Kingfisher County

Major County

Roger Mills County

Texas County

Tillman County

Washita County

Woods County

Woodward County

Oregon

Harney County

Sherman County

Pennsylvania

Cameron County

South Carolina

Bamberg County

Dillon County

Marlboro County

South Dakota

Buffalo County

Campbell County

Corson County

Day County

Deuel County

Dewey County

Douglas County

Edmunds County

Faulk County

Gregory County

Haakon County

Hand County

Hanson County

Harding County

Hyde County

Jackson County

Jerauld County

Jones County

Lyman County

McPherson County

Mellette County

Perkins County

Potter County

Roberts County

Sanborn County

Shannon County

Spink County

Sully County

Walworth County

Ziebach County

Texas

Andrews County

Bailey County

Briscoe County

Brooks County

Castro County

Cochran County

Collingsworth County

Cottle County

Crane County

Crockett County

Crosby County

Culberson County

Dawson County

Deaf Smith County

Dickens County

Dimmit County

Fisher County

Floyd County

Foard County

Garza County

Glasscock County

Gray County

Hale County

Hall County

Hansford County

Hardeman County

Hemphill County

Hutchinson County

Jim Hogg County

Karnes County

Kenedy County

Kent County

King County

Kleberg County

Lamb County

Lipscomb County

Lynn County

Matagorda County

Motley County

Ochiltree County

Parmer County

Pecos County

Reagan County

Reeves County

Refugio County

Roberts County

[[Page 19150]]

Shackelford County

Sherman County

Stonewall County

Sutton County

Swisher County

Terrell County

Terry County

Upton County

Ward County

Wheeler County

Winkler County

Yoakum County

Zavala County

Utah

Carbon County

Daggett County

Duchesne County

Emery County

Grand County

Rich County

San Juan County

Virginia

Alleghany County

Bath County

Buchanan County

Wise County

Covington City

Norton City

West Virginia

Boone County

Clay County

Fayette County

Logan County

McDowell County

Mingo County

Webster County

Wetzel County

Wyoming County

Wyoming

Big Horn County

Carbon County

Converse County

Fremont County

Hot Springs County

Platte County

Sweetwater County

Washakie County

Weston County

Appendix E--Form of Memorandum of Agreement; Rural Empowerment Zones

and Enterprise Communities

This Agreement among the United States Department of Agriculture

(USDA), the State of __________ and the Empowerment Zone Lead Entity

relating to the Rural Empowerment Zone known as ____________, is

made pursuant to the Internal Revenue Code (title 26 of the United

States Code) as amended by title IX of the Taxpayer Relief Act of

1997 and title XIII, subchapter C, part I of the Omnibus Budget

Reconciliation Act of 1993.

In reliance upon and in consideration of the mutual

representations and obligations herein contained herein, the

applicable statute and part 25 to 7 CFR, USDA, the State and the

Empowerment Zone agree as follows:

The Rural Empowerment Zone boundaries are as follows: Census

Tracts ________, ________, ________ [as such boundaries may be

modified] in accordance with maps provided in the application for

designation. The term of the designation as a rural Empowerment Zone

is effective from [designation date] to December 31, ________,

unless sooner revoked.

The State and the Empowerment Zone agree to abide by the

following:

1. The State and the Empowerment Zone will comply with the

requirements title XIII, subchapter C, part I of the Omnibus Budget

Reconciliation Act of 1993 as modified by the Taxpayer Relief Act of

1997, and the regulations appearing at 7 C.F.R. part 25 and any

future regulations.

2. [if applicable] The State and the Empowerment Zone will

comply with such further statutory, regulatory and contractual

requirements as may be applicable to the receipt and expenditure of

Social Services Block Grant funds, pursuant to title XX of the

Social Security Act, currently administered by the Department of

Health and Human Services.

3. The State and the Empowerment Zone will comply with all

elements of the USDA approved application for designation, including

the strategic plan, submitted to USDA pursuant to 7 C.F.R. part 25

(``strategic plan'') and all assurances, certifications, schedules

or other submissions made in support of the strategic plan or of

this Agreement.

4. The State and the Empowerment Zone will submit with each 2-

year workplan required under 7 C.F.R. Sec. 25.403 documentation, in

form and substance satisfactory to the Secretary, sufficient to

identify baselines, benchmark goals, benchmark activities and

timetables for the implementation of the strategic plan during the

applicable 2 years of the workplan.

5. Pursuant to the strategic plan, the lead entity for the

Empowerment Zone known as __________ [name of lead entity]

__________, located at __________ [address] __________, is

responsible for the implementation of the strategic plan. The

current director of the lead entity, who is duly authorized to

execute this agreement, is ____________ [name] ____________.

6. [if applicable] The use of EZ/EC title XX funds will be

directed by the lead entity, in accordance with the strategic plan.

The State will distribute the funds according to the directives of

the lead entity, provided that such actions are consistent with the

USDA approved strategic plan.

7. The lead entity agrees to timely comply with the reporting

requirements contained in 7 C.F.R. part 25, including reporting on

progress made in carrying out actions necessary to implement the

requirements of the strategic plan and any assurances,

certifications, schedules or other submissions made in connection

with the designation.

8. The lead entity agrees to submit to periodic performance

reviews by USDA in accordance with the provisions of 7 C.F.R.

Secs. 25.402 and 25.404. Upon request by USDA, the lead entity will

permit representatives of USDA to inspect and make copies of any

records pertaining to matters covered by this Agreement.

9. Each year after the execution of this Agreement, the lead

entity will submit updated documentation sufficient to identify

baselines, benchmark goals and activities and timetables for the

implementation of the strategic plan during the following 2 years.

Upon written acceptance from USDA, such documentation shall become

part of this Agreement and shall replace the documentation submitted

previously, for purposes of operations during the following 2 years.

10. All benchmark goals, benchmark activities, baselines, and

schedules approved by the Empowerment Zone after a full community

participation process (which must be documented and which may be

further amended or supplemented from time to time), will be

incorporated as part of this Agreement. All references to the

strategic plan in this memorandum of agreement shall be deemed to

refer to the strategic plan as modified in accordance with this

paragraph.

11. This Agreement shall be a part of the strategic plan.

12. Amendments to the strategic plan may be made only with the

approval of the Empowerment Zone and USDA. The lead entity must

demonstrate to USDA that the local governments within the

Empowerment Zone were involved in the amendment process.

13. All attachments and submissions in accordance herewith are

incorporated as part of this agreement.

This Agreement is dated ____________.

State Government: State of ____________

By: ____________ [official authorized to commit the state]

____________

Title:

Address:

Empowerment Zone [Name of Empowerment Zone]

By:--------------------------------------------------------------------

Title:

Address:

Lead entity: [Name of Lead entity]

By:--------------------------------------------------------------------

Title:

Address:

Federal Government: United States Department of Agriculture

By:--------------------------------------------------------------------

Title:

Address:

[FR Doc. 98-10157 Filed 4-14-98; 11:38 am]

BILLING CODE 3410-07-P