Empowerment Zones: Rule for Second Round Designations

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 598

[Docket No. FR-4281-F-07]

RIN 2506-AB97

Empowerment Zones: Rule for Second Round Designations

AGENCY: Office of the Assistant Secretary for Community Planning and

Development, HUD.

ACTION: Final rule.

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SUMMARY: This rule adopts as final the interim rule published on this

subject on April 16, 1998, without substantive change. The only change

at the final rule is to include the OMB approval number for the rule's

information collection requirements. The August 16, 1998 interim rule

increased the scope of HUD's Empowerment Zones Program by providing

authorization for the designation of 15 new urban zones.

EFFECTIVE DATE: November 2, 1998.

FOR FURTHER INFORMATION CONTACT: Elaine Braverman, Empowerment Zone/

Enterprise Community Initiative, Department of Housing and Urban

Development, Room 7130, 451 Seventh Street, SW., Washington, DC 20410,

telephone (202) 708-6339. (This telephone number is not toll-free.) For

hearing-and speech-impaired persons, this telephone number may be

accessed via TTY (text telephone) by calling the Federal Information

Relay Service at 1-800-877-8339 (toll-free).

SUPPLEMENTARY INFORMATION:

I. Background

On April 16, 1998 (63 FR 19151), HUD published an interim rule to

implement an August 1997 enactment authorizing HUD to increase the

scope of its Empowerment Zones program by designating 15 new urban

empowerment zones. This second round of designations increased the size

of the program beyond the six urban empowerment zones designated in

1995 under prior legislation. The interim rule specified the

eligibility criteria, which the statute had changed somewhat from those

used in making the first round of designations. The rule also specified

the nomination procedure to be followed by local and State (or tribal)

governments and the selection factors to be used by HUD.

The rule was made effective on May 18, 1998, so that governments,

businesses, and non-profit organizations would be able to work together

to develop proposals in time for the announced October 9, 1998 deadline

for nominations.

II. This Final Rule

The Department received no public comments on the interim rule.

This final rule adopts the interim rule as final without substantive

change. The publication of the final rule assures the affected parties

that the provisions of the interim rule are permanent, continuing in

effect without change throughout this period of preparation of

nominations and selection of designated zones.

In addition, this final rule inserts in the rule text the statement

of the information collection approval number approved by OMB for the

sections that contain information collections.

III. Findings and Certifications

A. Public Reporting Burden

The information collections contained in the interim rule and

implementing documents were approved by the Office of Management and

Budget (OMB) and assigned OMB control number 2506-0148, effective

through August 31, 1998. Comments were solicited on the information

collections in that interim rule, but none were received. Since

publication of the interim rule, HUD submitted a request to OMB for an

extension of the approval for the information collections. OMB granted

that approval, extending its approval through September, 2001. In this

final rule, the approval number is being inserted after the sections to

which it applies. In accordance with the Paperwork Reduction Act, HUD

may not conduct or sponsor, and a person is not required to respond to,

a collection of information unless the collection displays a currently

valid OMB control number.

B. Impact on Small Entities

In the interim rule, HUD stated its determination that, after

review for compliance with the Regulatory Flexibility Act (5 U.S.C.

605(b)), the rule would not have a significant economic impact on a

substantial number of small entities. The rule merely authorizes

entities of all sizes to seek designation as Empowerment Zones, as

authorized by statute. The rule's preamble invited comment on this

determination, however, on any of the requirements for seeking

designation that could be tailored in a way that might be less

burdensome to small entities. No comments were received. Consequently,

the Department reiterates its conclusion that the rule does not impose

a significant economic impact on a substantial number of small

entities.

C. Environmental Impact

A Finding of No Significant Impact with respect to the environment

was made with respect to the interim rule, in accordance with HUD

regulations at 24 CFR part 50, which implement section 102(2)(C) of the

National Environmental Policy Act of 1969. That Finding is applicable

to this rule, as well, and it is available for public inspection

between 7:30 a.m. and 5:30 p.m. weekdays in the Regulations Division of

the Office of the General Counsel, Department of Housing and Urban

Development, Room 10276, 451 Seventh Street, SW, Washington, DC 20410.

D. Regulatory Review

The Office of Management and Budget (OMB) reviewed this rule under

Executive Order 12866, Regulatory Planning and Review. OMB determined

that this rule is a ``significant regulatory action,'' as defined in

section 3(f) of the Order (although not economically significant, as

provided in section 3(f)(1) of the Order). Any changes made to the

final rule after its submission to OMB are identified in the docket

file, which is available for public inspection in the Regulations

Division of the Office of General Counsel at the address stated above,

under Environmental Impact.

E. Catalog of Federal Domestic Assistance

The Catalog of Federal Domestic Assistance Program number assigned

to this program is 14.244.

Accordingly, the interim rule amending part 598 of title 24 of the

Code of Federal Regulations, as published in the Federal Register at 63

FR 19151on April 16, 1998, is adopted as final with the following

change:

PART 598--URBAN EMPOWERMENT ZONES: ROUND TWO DESIGNATIONS

1. The authority citation continues to read as follows:

Authority: 26 U.S.C. 1391; 42 U.S.C. 3535(d).

Secs. 598.200, 598.205, 598.210, 598.215, 598.415, 598.430 [Amended]

2. Sections 598.200, 598.205, 598.210, 598.215, 598.415, and

598.430 are amended by adding at the end of each of the sections the

following language:

(Approved by the Office of Management and Budget under Control

Number 2506-0148)

[[Page 53263]]

Dated: September 25, 1998.

Saul N. Ramirez, Jr.,

Assistant Secretary for Community Planning and Development.

[FR Doc. 98-26493 Filed 10-1-98; 8:45 am]

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