[Congressional Record Volume 149, Number 39 (Tuesday, March 11, 2003)]
[Senate]
[Pages S3506-S3507]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CORZINE:
  S. 586. A bill to provide additional funding for the second round of 
empowerment zones and enterprise communities; to the Committee on 
Finance.
  Mr. CORZINE. Mr. President, I rise today to introduce the Round II 
EZ/EC Flexibility Act of 2003. This important legislation would secure 
vital funding for Round II Empowerment Zones and Enterprise Communities 
to ensure that communities throughout the country will be able to 
continue the important work of economic revitalization.
  This legislation promotes the continued economic development 
throughout the EZ/EC program, particularly to the 15 Round II urban and 
5 rural empowerment zones that were designated in 1999. Each of those 
communities has implemented a host of strategic initiatives aimed at 
economic growth and job creation in their respective communities.
  The EZ/EC Act ensures that Round II communities EZs and ECs are 
provided with funding they were promised upon designation. It also 
authorizes the use of EZ/EC grants as a match for related Federal 
programs, providing the EZ/EC program with maximum flexibility to 
implement initiatives at the local level.
  The Enterprise Zone/Enterprise Community program was created to 
provide Federal assistance over ten years in designated urban and rural 
communities that would fuel economic revitalization and job growth. The 
program does so primarily by providing Federal grants to communities 
and tax and regulatory relief to help communities attract and retain 
businesses.
  Unfortunately, an inequity now exists between the way Round I and 
Round II EZs and ECs have been funded. Those communities that won EZ 
designations in the initial round, in 1994, received full funding from 
the Congress, which made all grant awards available for use within the 
first two years of designation. However, EZs and ECs designated in 
Round II did not receive this same funding authority.
  Federal benefits promised to the Round IIs included funding grants of 
$100 million for each urban zone, $40 million for each rural zone and 
about $3 million for each Enterprise Community over a ten-year period 
beginning in 1999. In reliance on those ``promised'' funds, Round II 
zones prepared strategic plans for economic revitalization based on the 
availability of that funding. However, unlike Round I designees, who 
received a full funding up front, Round II zones have received a mere 
fraction of the funding promise.
  The lack of a certain, predictable funding stream will ultimately 
undermine the ability of Round II EZs/ECs to effectively implement 
their economic growth strategies in their designated communities. And 
that's a shame, because the EZ/EC initiative has produced real results.

[[Page S3507]]

  In fact, I'm proud to say that one of the best Round II EZs is 
located in Cumberland County, NJ. The Cumberland County Empowerment 
Zone, a collaborative effort of the communities of Bridgeton, 
Millville, Vineland and Port Norris, has been a model EZ, and committed 
all the funds made available to it by HUD.
  Since the creation of the EZ, Cumberland County has witnessed more 
than 100 housing units rehabbed, renovated or newly built. A $4 million 
loan pool has been created to fund community and small business 
reinvestment. The EZ also has led to the funding for over 60 economic 
development initiatives, utilizing more than $11 million in funding to 
leverage $120 million in private, public and tax exempt bond financing.
  These are real results. In fact, over 1,100 new jobs will be created 
in the County over the next year and a half alone if the Federal 
Government were to maintain its commitment to the EZ/EC program.
  Cumberland County is just one example of how the EZ/EC initiative has 
brought hope and promise to communities throughout America. We need to 
do more to support and build on these initiatives. Now is the time for 
Congress to fulfill the promise made to Round II EZs and ECs.
  I urge my colleagues to cosponsor this bill that will allow 
communities throughout the country to continue their work of economic 
revitalization. I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 586

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Round II EZ/EC Flexibility 
     Act of 2003''.

     SEC. 2. CORRECTION OF INEQUITIES IN THE SECOND ROUND OF 
                   EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES.

       (a) Grant Authority.--There are authorized to be 
     appropriated--
       (1) to the Secretary of Housing and Urban Development, such 
     sums as may be necessary to make grant awards totaling 
     $100,000,000 to each of 15 urban empowerment zones designated 
     pursuant to section 1391(g) of the Internal Revenue Code of 
     1986, taking into account any amount made available pursuant 
     to any prior appropriation made for such zones; and
       (2) to the Secretary of Agriculture, such sums as may be 
     necessary to make--
       (A) grant awards totaling $40,000,000 to each of 5 rural 
     empowerment zones designated pursuant to section 1391(g) of 
     the Internal Revenue Code of 1986, taking into account any 
     amount made available pursuant to any prior appropriation 
     made for such zones; and
       (B) grant awards totaling $3,000,000 to each of 20 rural 
     enterprise communities designated pursuant to section 766 of 
     the Agriculture, Rural Development, Food and Drug 
     Administration, and Related Agencies Appropriations Act, 
     1999, taking into account any amount made available pursuant 
     to any prior appropriation made for such communities.
       (b) Authority to Use Funds to Implement Strategic Plan.--
     Funds appropriated under Federal law for an empowerment zone 
     or an enterprise community referred to in subsection (a) may 
     be used to implement the strategic plan for the zone or 
     community, including--
       (1) economic development;
       (2) infrastructure development;
       (3) workforce development; and
       (4) community development activities.
       (c) No Loss of Federal Funds by Reason of Reclassification 
     as Renewal Community.--An area that, by reason of section 
     1400E(e) of the Internal Revenue Code of 1986, ceases to be 
     designated as an empowerment zone or enterprise community 
     under section 1391(g) of such Code shall not lose any Federal 
     funds by reason of the cessation.
       (d) Authority to Use Funds to Pay Non-Federal Share of 
     Matching Grants.--Funds appropriated under any Federal law 
     for an empowerment zone or an enterprise community referred 
     to in subsection (a) may be used to pay the non-Federal share 
     required in connection with another Federal grant-in-aid 
     program undertaken as part of activities assisted under this 
     section.
                                 ______