[Federal Register Volume 64, Number 100 (Tuesday, May 25, 1999)]
[Notices]
[Pages 28152-28154]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13222]


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 Notices
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
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  Federal Register / Vol. 64, No. 100 / Tuesday, May 25, 1999 / 
Notices  

[[Page 28152]]


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DEPARTMENT OF AGRICULTURE

Office of the Secretary


Designation of Rural Empowerment Zones and Rural Enterprise 
Communities

AGENCY: Office of the Secretary, USDA.

ACTION: Notice.

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SUMMARY: This Notice announces the designation of five new rural 
empowerment zones and 20 new rural enterprise communities from the 
applications received in response to the Notice Inviting Applications 
published in the Federal Register on April 16, 1998. The Secretary of 
Agriculture (Secretary) will award newly authorized direct federal 
grants of $2,000,000 to each rural empowerment zone and $250,000 to 
each rural enterprise community. Notice is also given that rural 
empowerment zones and rural enterprise communities designated by the 
Secretary are expected to sign a memorandum of agreement substantially 
in the form attached to this notice.

DATES: The designation date for the five Round II rural empowerment 
zones and 20 Round IIS rural enterprise communities announced in this 
notice was December 24, 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: Title IX of the Taxpayer Relief Act of 1997 
authorized the Secretary to designate up to five rural empowerment 
zones (``Round II'') in addition to those rural empowerment zones and 
enterprise communities designated by the Secretary in December 1994 
pursuant to title XIII of the Omnibus Budget Reconciliation Act of 1993 
(``Round I''). A Notice Inviting Applications for Round II was 
published on April 16, 1998 (63 FR 19143). One hundred sixty eligible 
applications were received in response to this invitation in time to 
meet the October 9, 1998, deadline. On October 21, 1998, the 
Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies, Appropriations Act, 1999 (Pub. L. 105-277) (Round 
IIS) was signed into law (1999 Appropriations Act). Section 766 of the 
1999 Appropriations Act authorized 20 new rural enterprise communities 
and also appropriated new USDA grant funding for Round II rural 
empowerment zones and Round IIS rural enterprise communities. The 
statutory deadline for Round II rural empowerment zone designations was 
January 1, 1999. There is no statutory deadline for Round IIS rural 
enterprise community designations.

I. Designation of Five New Rural Empowerment Zones

    On December 24, 1998, the Secretary designated the following 
nominated areas as rural empowerment zones pursuant to the Round II 
legislative authorization:

                                     USDA Rural Empowerment Zones (Round II)
             [Asterisked ``*'' counties have areas not included in the designated empowerment zone]
----------------------------------------------------------------------------------------------------------------
             Name                  State                                   Counties
----------------------------------------------------------------------------------------------------------------
Desert Communities EZ........  CA             Riverside*
Southwest Georgia United EZ..  GA             Crisp*, Dooly
Southernmost Illinois Delta    IL             Alexander*, Johnson*, Pulaski
 EZ.
Griggs-Steele EZ.............  ND             Griggs*, Steele
Oglala Sioux Tribe EZ........  SD             Bennett, Jackson*, Shannon
----------------------------------------------------------------------------------------------------------------

II. Designation of 20 New Rural Enterprise Communities

    On December 24, 1998, the Secretary designated the following 
nominated areas as rural enterprise communities pursuant to the Round 
IIS legislative authorization:

                                  USDA Rural Enterprise Communities (Round IIS)
           [Asterisked ``*'' counties have areas not included in the designated enterprise community]
----------------------------------------------------------------------------------------------------------------
             Name                  State                                   Counties
----------------------------------------------------------------------------------------------------------------
Metlakatla Indian EC.........  AK             Ketchikan Borough
Four Corners.................  AZ             Apache*, Coconino*, Navajo*, (AZ)
                               NM             San Juan* (NM)
                               UT             San Juan* (UT)
Central California EC........  CA             Fresno*, Tulare
Empowerment Alliance of        FL             Collier*, Hendry*
 Southwest Florida EC.
Molokai EC...................  HI             Maui*
Town of Austin EC............  IN             Scott*

[[Page 28153]]

 
Wichita County EC............  KS             Wichita
Bowling Green EC.............  KY             Warren*
City of Lewiston EC..........  ME             Androscoggin*
Clare County EC..............  MI             Clare*
Fort Peck Assiniboine and      MT             Roosevelt, Valley*
 Sioux Tribe EC.
City of Deming EC............  NM             Luna
Tri County Nations EC........  OK             Coal, Johnston*, Pontotoc*
Fayette EC...................  PA             Fayette*
Allendale ALIVE EC...........  SC             Allendale
Clinch-Powell EC.............  TN             Claiborne*, Grainger*, Hancock, Hawkins*, Union*
Middle Rio Grande EC.........  TX             Dimmit*, Maverick*, Uvalde*, Zavala*
Tri County Rural EC..........  WA             Ferry*, Okanogan*, Pend Oreille*, Stevens*
Northwoods Niijii EC.........  WI             Forest*, Minominee, Vilas*
Upper Kanawha Valley EC......  WV             Kanawha*, Fayette*
----------------------------------------------------------------------------------------------------------------

    The Secretary selected the new rural enterprise communities from 
the pool of applicants for Round II rural empowerment zones. This 
notice satisfies the notice requirement of 7 C.F.R. 25.300(a) for 
purposes of Round IIS.
    USDA's efforts to maximize participation of eligible communities in 
the second round of applications for designation included 16 workshops 
in 16 cities around the country. The 160 applications on hand for Round 
II reflect a cross section of 38 states; 23 or more applications 
include reservation land or were submitted by native American tribal 
communities. Nineteen Round I enterprise communities submitted 
applications for Round II empowerment zone designation.
    Selection of Round IIS rural enterprise communities from the pool 
of Round II empowerment zone applicants facilitated more timely and 
efficient implementation of the financial benefits appropriated for the 
second round of designations. USDA is of the opinion that a quality 
strategic plan (required as part of the application process) takes at 
least six months to develop. Town meetings are held and cross sections 
of the community are brought together to decide how they wish to 
develop as a community and how best to achieve those goals. The 
outreach for Round II, as described above, was comprehensive and 
thorough. The cost to taxpayers of mounting another round of nationwide 
workshops is considerable. All of these factors taken together support 
a decision to take an expeditious approach to implementing Round IIS.

III. Amount of Grants

    The Round IIS legislation authorized direct USDA grant funding of 
$10,000,000 for the five new rural empowerment zones and $5,000,000 for 
the 20 new rural enterprise communities (USDA EZ/EC grants). The 
Secretary will make equal USDA EZ/EC grant awards of $2,000,000 to the 
rural empowerment zones and $250,000 to the rural enterprise 
communities in accordance with a rulemaking to be published as soon as 
is practicable.

IV. Memorandum of Agreement

    Applicants for Round II were advised that newly designated zones 
would be expected to sign a memorandum of agreement (MOA) substantially 
in the form of the MOA published as Appendix E to the April 16, 1998, 
Notice Inviting Applications at 63 FR 19150. This model MOA has been 
revised and is attached hereto as Appendix A. All Round II and Round 
IIS rural empowerment zones and enterprise communities will be expected 
to sign a MOA conforming in all material respects to the form of the 
model MOA provided in Appendix A to this notice.

    Dated: May 14, 1999.
Dan Glickman,
Secretary.

Appendix A--Form of Memorandum of Agreement; Rural Empowerment 
Zones and Enterprise Communities

    This Agreement among the United States Department of Agriculture 
(USDA), the State of ________ (State) and the [Empowerment Zone] 
[Enterprise Community] Lead Entity relating to the Rural 
[Empowerment Zone] [Enterprise Community] known as ________, is made 
pursuant to the Internal Revenue Code (title 26 of the United States 
Code) as amended by title IX of the Taxpayer Relief Act of 1997; 
title XIII, subchapter C, part I of the Omnibus Budget 
Reconciliation Act of 1993; and section 766 of the Agriculture, 
Rural Development, Food and Drug Administration and Related Agencies 
Appropriations Act, 1999 (Pub. L. 105-277).
    In reliance upon and in consideration of the mutual 
representations and obligations herein contained, the applicable 
statute and part 25 of 7 CFR, USDA, the State and the [Empowerment 
Zone][Enterprise Community] agree as follows:
    The Rural [Empowerment Zone][Enterprise Community] boundaries 
are as follows: Census Tracts ________, ________, ________ [as such 
boundaries may be modified] in accordance with maps provided in the 
application for designation and inclusive of developable sites, as 
identified. The term of the designation as a rural [Empowerment 
Zone] [Enterprise Community is effective from December 24, 1998 to 
December 31, 2008, unless sooner revoked.
    The State and the [Empowerment Zone] [Enterprise Community] 
agree as follows:
    1. The State and the [Empowerment Zone] [Enterprise Community] 
will comply with the requirements title XIII, subchapter C, part I 
of the Omnibus Budget Reconciliation Act of 1993 as modified by the 
Taxpayer Relief Act of 1997, and the regulations appearing at 7 CFR 
part 25 and any future regulations.
    2. The State and the [Empowerment Zone] [Enterprise Community] 
will comply with statutory, regulatory and contractual requirements, 
as amended, as may be applicable to the receipt and expenditure of 
Social Services Block Grant funds, pursuant to title XX of the 
Social Security Act.
    3. The State and the [Empowerment Zone] [Enterprise Community] 
will comply with statutory, regulatory and contractual requirements, 
as amended, as are applicable to the receipt and expenditure of USDA 
Rural Development EZ/EC grant funds, pursuant to section 766 of the 
Agriculture, Rural Development, Food and Drug Administration and 
Related Agencies Appropriations Act, 1999.
    4. The State and the [Empowerment Zone] [Enterprise Community] 
will comply with all elements of the USDA approved application for 
designation, including the strategic plan, submitted to USDA 
pursuant to 7 CFR part 25 (``strategic plan'') and all assurances, 
certifications, schedules or other submissions made in support of 
the strategic plan or of this Agreement, all of which are included 
herein and made a part hereof by reference.
    5. The State and the [Empowerment Zone] [Enterprise Community] 
will annually submit with each 2-year workplan required under 7 CFR 
Sec. 25.403 documentation, in form and

[[Page 28154]]

substance satisfactory to the Secretary, sufficient to identify 
baselines, benchmark goals, benchmark activities and timetables for 
the implementation of the strategic plan during the applicable 2 
years of the workplan.
    6. Pursuant to the strategic plan, the lead entity for the 
[Empowerment Zone] [Enterprise Community], ________ [name of lead 
entity] ________, located at ________ [address] ________, is 
responsible for the implementation of the strategic plan. The 
current director of the lead entity, who is duly authorized to 
execute this agreement, is ________ [name] ________.
    7. The use of USDA Rural EZ/EC Grant funds will be directed by 
the lead entity, in accordance with the strategic plan. The USDA 
Rural Development State Office will distribute the funds according 
to the directives of the lead entity, provided that such actions are 
consistent with the USDA approved strategic plan and USDA grant 
procedures.
    8. The lead entity agrees to timely comply with the reporting 
requirements contained in 7 CFR part 25, including reporting on 
progress made in carrying out actions necessary to implement the 
requirements of the strategic plan and any assurances, 
certifications, schedules or other submissions made in connection 
with the designation.
    9. The lead entity agrees to submit to periodic performance 
reviews by USDA in accordance with the provisions of 7 CFR 
Secs. 25.402 and 25.404. Upon request by USDA, the lead entity will 
permit representatives of USDA to inspect and make copies of any 
records pertaining to matters covered by this Agreement.
    10. Each year after the execution of this Agreement, the lead 
entity will submit updated documentation sufficient to identify 
baselines, benchmark goals and activities and timetables for the 
implementation of the strategic plan during the following 2 years.
    Upon written acceptance from USDA, such documentation shall 
become part of this Agreement and shall replace the documentation 
submitted previously, for purposes of operations during the 
following 2 years.
    11. All benchmark goals, benchmark activities, baselines, and 
schedules approved by the [Empowerment Zone][Enterprise Community] 
after a full community participation process (which must be 
documented and which may be further amended or supplemented from 
time to time), will be incorporated as part of this Agreement. All 
references to the strategic plan in this memorandum of agreement 
shall be deemed to refer to the strategic plan as modified in 
accordance with this paragraph.
    12. Amendments to the strategic plan may be made only with the 
approval of the [Empowerment Zone][Enterprise Community] and USDA. 
The lead entity must demonstrate to USDA that the local governments 
within the [Empowerment Zone][Enterprise Community] were involved in 
the amendment process.
    13. All attachments and submissions in accordance herewith are 
incorporated as part of this Agreement.
    This Agreement is dated__________.

State Government: State of________

By:________[official authorized to commit the state]________
Title:
Address:

Empowerment Zone[ Name of Empowerment Zone]

Enterprise Community [Name of Enterprise Community]

By:--------------------------------------------------------------------
Title:
Address:

Lead entity: [Name of Lead Entity]

By:--------------------------------------------------------------------
Title:
Address:

Federal Government: United States Department of Agriculture

By:--------------------------------------------------------------------
Title:
Address:

[FR Doc. 99-13222 Filed 5-24-99; 8:45 am]
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