[Federal Register Volume 63, Number 194 (Wednesday, October 7, 1998)]
[Rules and Regulations]
[Pages 53779-53780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26542]



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 Rules and Regulations
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  Federal Register / Vol. 63, No. 194 / Wednesday, October 7, 1998 / 
Rules and Regulations  

[[Page 53779]]


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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">``info@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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