[Congressional Record Volume 147, Number 105 (Wednesday, July 25, 2001)]
[Extensions of Remarks]
[Page E1427]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 ROUND II EMPOWERMENT ZONE/ENTERPRISE COMMUNITY FLEXIBILITY ACT OF 2001

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                         HON. FRANK A. LoBIONDO

                             of new jersey

                    in the house of representatives

                        Wednesday, July 25, 2001

  Mr. LoBIONDO. Mr. Speaker, today, I am introducing, along with my 
colleague Congressman Capuano and other Members of the Empowered 
Communities Caucus, the Round II Empowerment Zone/Enterprise Community 
(EZ/EC) Flexibility Act of 2001, to provide funding authority and 
correct some inequities and inconsistencies with the Round II program. 
In 1999, 15 Round II urban and 5 rural empowerment zones were awarded 
to communities which designed the best strategic plans for 
comprehensive revitalization. The Empowerment Zone program is a 10 year 
project that targets federal grants to distressed urban and rural 
communities for community and economic development and provides tax and 
regulatory relief to attract or retain businesses.
  Cumberland County, located in my Congressional District, is one of 
the 15 urban sites nationwide to win this designation, which is 
expected to create more than 6,000 new jobs over 10 years. 
Unfortunately, Cumberland County has only received approximately $8.5 
million of the $30 million expected over the past 3 years. Round II 
empowerment zones did not receive the same Title XX block grant 
mandatory spending authority as the Round I zones did in 1997 and have 
to rely on the discretionary appropriations process each year. Even 
though the President requested full funding in FY02 ($150 million for 
the EZ program) the House Appropriations Committee did not include any 
funding for urban zones for the next fiscal year.
  The legislation I am introducing today provides general funding 
authorization for the Round II EZ/ECs by authorizing the Secretary of 
HUD to make grant awards totaling $100,000,000 to each of the 15 Round 
II urban empowerment zones and the Secretary of Agriculture to make 
grant awards totaling $40,000,000 to each of the Round II rural 
empowerment zones and grant awards totaling $3,000,000 to each of 20 
rural enterprise communities. This designation runs until 2009, and our 
zones must receive assurance that Congress will support continued 
funding, otherwise, they cannot be expected to operate and achieve long 
term capital plans or leverage private sector commitments to major 
infrastructure projects.
  This legislation also includes clarification of the law which allows 
EZ/ECs to apply for community renewal status without the risk of losing 
already appropriated Federal funds. We have included language to 
broaden the definition of ``economic development'', which is the 
essence of the Zone's strategic plan, and have granted specific 
authorization for grants to be used as matching funds for other 
relevant federal grant programs, all in an effort to offer the EZ/EC 
program maximum flexibility. For every federal EZ dollar obligated, 
there are ten more dollars from the private sector committed to 
economic development in Cumberland County.
  Our communities have already invested considerable resources in 
securing the Round II EZ/EC designations. Congress has a responsibility 
to carry out its promise to these distressed communities by making 
federal funding and tax incentives available to ensure new jobs, 
revitalize neighborhoods and spur economic growth over the next decade.
  It is vital that we secure full funding for Round II Empowerment 
zones and Enterprise communities, so they may continue and complete 
their federally approved economic development plans. I urge the House 
to adopt the legislation before us today.




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