Designation of Rural Empowerment Zones and Enterprise Communities

DEPARTMENT OF AGRICULTURE

Office of the Secretary

7 CFR Part 25

RIN 0503-AA18

Designation of Rural Empowerment Zones and Enterprise Communities

AGENCY: Office of the Secretary, USDA.

ACTION: Final rule.

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SUMMARY: This final rule establishes the policies and procedures for

the designation of Round II Rural Empowerment Zones. This action

authorizes the Secretary of the U.S. Department of Agriculture (USDA)

to designate not more than 5 rural Empowerment Zones (Round II) as

authorized by the Taxpayer Relief Act of 1997 (Pub. L. 105-34).

EFFECTIVE DATE: October 9, 1998.

FOR FURTHER INFORMATION CONTACT: Deputy Administrator for Community

Development, USDA Rural Development, Office of Community Development,

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''. For hearing- and

speech-impaired persons, information concerning this program may be

obtained by contacting USDA's TARGET Center at (202) 720-2600 (Voice

and TDD).

SUPPLEMENTARY INFORMATION:

Classification

This rule has been reviewed by the Office of Management and Budget

(OMB) under E.O. 12866 and has been determined to be a significant

regulatory action.

Programs Affected

The Catalog of Federal Domestic Assistance Program affected by this

action is 10.772, Empowerment Zone Program.

Program Administration

The program is administered through the Office of Community

Development within the Rural Development mission area of the Department

of Agriculture.

Paperwork Reduction Act

The information collection requirements contained in 7 CFR part 25

has been approved by OMB under the Paperwork Reduction Act of 1995 (44

U.S.C. 3501-3520) and assigned OMB control numbers 0570-0026

(Application burden) and 0570-0027 (Reporting burden). In accordance

with the Paperwork Reduction Act, USDA may not conduct or sponsor, and

a person is not required to respond to a collection of information

unless it displays a valid OMB control number.

Environmental Impact Statement

It is the determination of the Secretary that this action is not a

major Federal action significantly affecting the environment.

Therefore, in accordance with the National Environmental Policy Act of

1969, Pub. L. 91-190, and 7 CFR part 1940, subpart G, an Environmental

Impact Statement is not required.

Executive Order 12988

This final rule has been reviewed in accordance with E.O. 12988,

Civil Justice Reform. In accordance with this rule: (1) All state and

local laws and regulations that are in conflict with this rule will be

preempted; (2) no retroactive effect will be given to this rule; and

(3) administrative proceedings in accordance with 7 CFR part 11 must be

exhausted before bringing suit in court challenging action taken under

this rule unless those regulations specifically allow bringing suit at

an earlier time.

The Unfunded Mandates Reform Act of 1995

Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub.

L. 104-4, establishes requirements for Federal agencies to assess the

effects of their regulatory actions on state, local, and tribal

governments and the private sector. Under section 202 of the UMRA, USDA

must prepare a written statement, including a cost benefit analysis,

for proposed and final rules with ``Federal mandates'' that may result

in expenditures to state, local or tribal governments, in the

aggregate, or to the private sector, of $100 million or more in any one

year. When such a statement is needed for a rule, section 205 of UMRA

generally requires USDA to identify and consider a reasonable number of

regulatory alternatives and adopt the least costly, more cost effective

or least burdensome alternative that achieves the objectives of the

rule.

This rule contains no Federal mandates (under the regulatory

provisions of title II of the UMRA) for state, local, and tribal

governments or the private sector. Therefore this rule is not subject

to the requirements of sections 202 and 205 of UMRA.

Regulatory Flexibility Act

In compliance with the Regulatory Flexibility Act (5 U.S.C. 601-

612), the undersigned has determined and certified by signature of this

document that this rule will not have a significant economic impact on

a substantial number of small entities. The Regulatory Flexibility Act

is intended to encourage Federal agencies to utilize innovative

administrative procedures in dealing with individuals, small

businesses, small organizations, and small governmental bodies that

would otherwise be unnecessarily adversely affected by Federal

regulations. The provisions included in this rule will not impact a

substantial number of small entities to a greater extent than large

entities. Therefore, no regulatory flexibility analysis under the

Regulatory Flexibility Act is necessary.

Executive Order 12611, Federalism

The policies contained in this rule will not have substantial

direct effects on states or their political subdivisions, or the

relationship between the Federal Government and the states, or on the

distribution of power and responsibilities among the various levels of

government. The purpose of this rule is to provide a cooperative

atmosphere between the Federal Government and the states and local

governments, and to reduce any regulatory burden imposed by the Federal

Government that impedes the ability of state and local governments to

solve pressing economic, social, and physical problems in their

communities.

[[Page 53780]]

Background

The Secretary of Agriculture published on April 16, 1998, an

interim final rule with request for comments and a notice inviting

applications for 5 additional rural empowerment zone designations as

authorized by title IX of the Taxpayer Relief Act of 1997 (Pub. L. 105-

34, approved August 5, 1997)(Round II). The deadline for applications

is October 9, 1998. The statutory deadline when Round II designations

must be made by the Secretary is January 1, 1999.

These 5 new rural empowerment zones are in addition to the 3 rural

empowerment zones and 30 enterprise communities designated on December

21, 1994 by the Secretary of Agriculture pursuant to Title XIII of the

Omnibus Budget Reconciliation Act of 1993 (Round I).

Discussion of Comments

Only two comments were received. In each case the party commenting

sought a change in USDA's implementation of the developable site

provision available to Round II designees. The requested change is

implemented by this final rule.

One change and one clarification of the Round II interim final rule

in the final rule is as follows: a change to allow an aggregate of 6

noncontiguous land parcels, inclusive of developable sites, rather than

3 as published in the interim final rule, and clarification that the

data to be utilized in demonstrating outmigration over the period 1980-

1994 is to be taken from the 1980 Census together with interim data

gathered after the 1990 Census. The clarification of data utilized in

demonstrating outmigration corrects an unintended omission.

The original Empowerment Zone legislation (1993) provided that a

nominated area wholly within a given state could consist of not more

than three noncontiguous parcels. The August 1997 legislation modified

the eligibility criteria for Round II designations to allow for special

sites known as ``developable sites,'' not exceeding 2,000 acres (3.14

square miles) in the aggregate, not exceeding three in number. An

interpretive question arose as to whether the 3 possible stand alone,

non-contiguous developable sites were in addition to the original limit

of 3, or whether 3 was an overarching cap on the number of possible

noncontiguous parcels. Developable sites are not subject to the same

poverty rate criteria as otherwise imposed on nominated areas.

List of Subjects in 7 CFR Part 25

Community development, Economic development, Empowerment zones,

Enterprise communities, Housing, Indians, Intergovernmental relations,

Reporting and recordkeeping requirements, Rural development.

In accordance with the reasons set out in the preamble, 7 CFR part

25 is amended by adopting the interim rule published April 16, 1998 [63

FR 19108] as a final rule with the following amendments as set forth

below.

PART 25--RURAL EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES

1. The authority citation for part 25 continues to read as follows:

Authority: 5 U.S.C. 301; 26 U.S.C. 1391

Subpart A--General Provisions

Sec. 25.101 [Amended]

2. Section 25.101(a) is amended by adding the words ``data from the

1980 Census and'' before the word ``interim''.

3. In Sec. 25.103, the introductory text of paragraph (b)(3) is

revised to read as follows:

Sec. 25.103 Area size and boundary requirements.

* * * * *

(b) * * *

(3) For purposes of applying paragraph (a)(2) of this section to

Round II designations, the following shall not be treated as violating

the continuous boundary requirement nor the limit on the number of

noncontiguous parcels:

* * * * *

Dated: September 28, 1998.

Dan Glickman,

Secretary.

[FR Doc. 98-26542 Filed 10-6-98; 8:45 am]

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