-CITE-

42 USC CHAPTER 120 - ENTERPRISE ZONE DEVELOPMENT 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 120 - ENTERPRISE ZONE DEVELOPMENT

-HEAD-

CHAPTER 120 - ENTERPRISE ZONE DEVELOPMENT

-MISC1-

Sec.

11501. Designation of enterprise zones.

(a) Designation of zones.

(b) Period for which designation is in effect.

(c) Area and eligibility requirements.

(d) Required State and local commitments.

(e) Definitions.

11502. Evaluation and reporting requirements.

11503. Interaction with other Federal programs.

(a) Coordination with relocation assistance.

(b) Enterprise zones treated as labor surplus

areas.

11504. Waiver or modification of housing and community

development rules in enterprise zones.

(a) In general.

(b) Limitation.

(c) Submission of requests.

(d) Consideration of requests.

(e) Notice of disapproval.

(f) Period for determination.

(g) Applicable procedures.

(h) Effect of subsequent amendment of rules.

(i) Expiration of waivers and modifications.

(j) Definitions.

11505. Coordination with CDBG and UDAG programs.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in title 25 section 941m.

-End-

-CITE-

42 USC Sec. 11501 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 120 - ENTERPRISE ZONE DEVELOPMENT

-HEAD-

Sec. 11501. Designation of enterprise zones

-STATUTE-

(a) Designation of zones

(1) "Enterprise zone" defined

For purposes of this section, the term "enterprise zone" means

any area that -

(A) is nominated by one or more local governments and the

State or States in which it is located for designation as an

enterprise zone (in this section referred to as a "nominated

area"); and

(B) the Secretary of Housing and Urban Development designates

as an enterprise zone, after consultation with -

(i) the Secretaries of Agriculture, Commerce, Labor, and

the Treasury, the Director of the Office of Management and

Budget, and the Administrator of the Small Business

Administration; and

(ii) in the case of an area on an Indian reservation, the

Secretary of the Interior.

(2) Number of designations

(A) In general

The Secretary of Housing and Urban Development may designate

not more than 100 nominated areas as enterprise zones.

(B) Minimum designation in rural areas

Of the areas designated under subparagraph (A), not less than

1/3 shall be areas that -

(i) are within a local government jurisdiction or

jurisdictions with a population of less than 50,000 (as

determined under the most recent census data available);

(ii) are outside of a metropolitan statistical area (as

designated by the Director of the Office of Management and

Budget); or

(iii) that are determined by the Secretary, after

consultation with the Secretary of Commerce, to be rural

areas.

(3) Areas designated based solely on degree of poverty

(A) In general

Except as provided in subparagraph (B), the Secretary shall

designate (i) the nominated areas with the highest average

ranking with respect to the criteria set forth in subparagraphs

(C) and (D) of subsection (c)(3) of this section, and the 1

criterion set forth in subparagraph (E)(i) or (E)(ii) of

subsection (c)(3) of this section that gives an area a higher

ranking; and (ii) for areas described in paragraph (2)(B), the

nominated areas with the highest ranking with respect to the 1

criterion set forth in subparagraph (C), (D), (E)(i), or

(E)(ii) of subsection (c)(3) of this section that gives an area

a higher ranking. For purposes of the preceding sentence, an

area shall be ranked within each such criterion on the basis of

the amount by which the area exceeds such criterion, with the

area that exceeds such criterion by the greatest amount given

the highest ranking.

(B) Exception where inadequate course of action, etc.

An area shall not be designated under subparagraph (A) if the

Secretary determines that the course of action with respect to

such area is inadequate.

(C) Separate application to rural and other areas

Subparagraph (A) shall be applied separately with respect to

areas described in paragraph (2)(B) and to other areas.

(4) Limitation on designations

(A) Publication of regulations

Before designating any area as an enterprise zone, the

Secretary shall prescribe by regulation not later than 4 months

following February 5, 1988, after consultation with the

officials described in paragraph (1)(B) -

(i) the procedures for nominating an area under paragraph

(1)(A);

(ii) the parameters relating to the size and population

characteristics of an enterprise zone; and

(iii) the manner in which nominated areas will be evaluated

based on the criteria specified in subsection (d) of this

section.

(B) Time limitations

The Secretary shall designate nominated areas as enterprise

zones only during the 24-month period beginning on the 1st day

of the 1st month following the month in which the date of the

enactment of the Housing and Community Development Act of 1992

occurs.

(C) Procedural rules

The Secretary shall not make any designation under paragraph

(1) unless -

(i) the local governments and the State in which the

nominated area is located have the authority -

(I) to nominate such area for designation as an

enterprise zone;

(II) to make the State and local commitments under

subsection (d) of this section; and

(III) to provide assurances satisfactory to the Secretary

that such commitments will be fulfilled;

(ii) a nomination therefor is submitted in such a manner

and in such form, and contains such information, as the

Secretary shall by regulation prescribe;

(iii) the Secretary determines that any information

furnished is reasonably accurate; and

(iv) the State and local governments certify that no

portion of the area nominated is already included in an

enterprise zone or in an area otherwise nominated to be an

enterprise zone.

(5) Nomination process for Indian reservations

In the case of a nominated area on an Indian reservation, the

reservation governing body (as determined by the Secretary of the

Interior) shall be deemed to be both the State and local

governments with respect to such area.

(b) Period for which designation is in effect

(1) In general

Any designation of an area as an enterprise zone shall remain

in effect during the period beginning on the date of the

designation and ending on the earliest of -

(A) December 31 of the 24th calendar year following the

calendar year in which such date occurs;

(B) the termination date designated by the State and local

governments as provided for in their nomination pursuant to

subsection (a)(4)(C)(ii) of this section; or

(C) the date the Secretary revokes such designation under

paragraph (2).

(2) Revocation of designation

The Secretary, after consultation with the officials described

in subsection (a)(1)(B) of this section and a hearing on the

record involving officials of the State or local government

involved, may revoke the designation of an area if the Secretary

determines that the local government or the State in which it is

located is not complying substantially with the State and local

commitments pursuant to subsection (d) of this section.

(c) Area and eligibility requirements

(1) In general

The Secretary may make a designation of any nominated area

under subsection (a)(1) of this section only if it meets the

requirements of paragraphs (2) and (3).

(2) Area requirements

A nominated area meets the requirements of this paragraph if -

(A) the area is within the jurisdiction of the local

government;

(B) the boundary of the area is continuous; and

(C) the area -

(i) has a population, as determined by the most recent

census data available, of not less than -

(I) 4,000 if any portion of such area (other than a rural

area described in subsection (a)(2)(B)(i) of this section)

is located within a metropolitan statistical area (as

designated by the Director of the Office of Management and

Budget) with a population of 50,000 or more; or

(II) 1,000 in any other case; or

(ii) is entirely within an Indian reservation (as

determined by the Secretary of the Interior).

(3) Eligibility requirements

For purposes of paragraph (1), a nominated area meets the

requirements of this paragraph if the State and local governments

in which it is located certify and the Secretary, after such

review of supporting data as he deems appropriate, accepts such

certification, that -

(A) the area is one of pervasive poverty, unemployment, and

general distress;

(B) the area is located wholly within the jurisdiction of a

local government that is eligible for Federal assistance under

section 5318 of this title, as in effect on October 28, 1992;

(C) the unemployment rate, as determined by the appropriate

available data, was not less than 1.5 times the national

unemployment rate for that period;

(D) the poverty rate (as determined by the most recent census

data available) for each populous census tract (or where not

tracted, the equivalent county division as defined by the

Bureau of the Census for the purpose of defining poverty areas)

within the area was not less than 20 percent for the period to

which such data relate; and

(E) the area meets at least one of the following criteria:

(i) Not less than 70 percent of the households living in

the area have incomes below 80 percent of the median income

of households of the local government (determined in the same

manner as under section 5318 of this title).

(ii) The population of the area decreased by 20 percent or

more between 1970 and 1980 (as determined from the most

recent census available).

(4) Eligibility requirements for rural areas

For purposes of paragraph (1), a nominated area that is a rural

area described in subsection (a)(2)(B) of this section meets the

requirements of paragraph (3) if the State and local governments

in which it is located certify and the Secretary, after such

review of supporting data as he deems appropriate, accepts such

certification, that the area meets -

(A) the criteria set forth in subparagraphs (A) and (B) of

paragraph (3); and

(B) not less than one of the criteria set forth in the other

subparagraphs of paragraph (3).

(d) Required State and local commitments

(1) In general

No nominated area shall be designated as an enterprise zone

unless the local government and the State in which it is located

agree in writing that, during any period during which the area is

an enterprise zone, such governments will follow a specified

course of action designated to reduce the various burdens borne

by employers or employees in such area. A course of action shall

not be treated as meeting the requirements of this paragraph

unless the course of action include provisions described in not

less than 4 of the subparagraphs of paragraph (2).

(2) Course of action

The course of action under paragraph (1) may be implemented by

both such governments and private nongovernmental entities, may

be funded from proceeds of any program administered by the

Secretary of Housing and Urban Development or of any program

administered by the Secretary of Agriculture under title V of the

Housing Act of 1949 [42 U.S.C. 1471 et seq.], and may include,

but is not limited to -

(A) a reduction of tax rates or fees applying within the

enterprise zone;

(B) an increase in the level of public services, or in the

efficiency of the delivery of public services, within the

enterprise zone;

(C) actions to reduce, remove, simplify, or streamline

paperwork requirements within the enterprise zone;

(D) involvement in the program by public authorities or

private entities, organizations, neighborhood associations, and

community groups, particularly those within the nominated area,

including a written commitment to provide jobs and job training

for, and technical, financial, or other assistance to,

employers, employees, and residents of the nominated area;

(E) the giving of special preference to contractors owned and

operated by members of any minority; and

(F) the gift (or sale at below fair market value) of surplus

land in the enterprise zone to neighborhood organizations

agreeing to operate a business on the land.

(3) Recognition of past efforts

In evaluating courses of action agreed to by any State or local

government, the Secretary shall take into account the past

efforts of such State or local government in reducing the various

burdens borne by employers and employees in the area involved.

(4) Prohibition of assistance for business relocations

(A) In general

The course of action implemented under paragraph (1) may not

include any action to assist -

(i) any establishment relocating from one area to another

area; or

(ii) any subcontractor whose purpose is to divest, or whose

economic success is dependent upon divesting, any other

contractor or subcontractor of any contract customarily

performed by such other contractor or subcontractor.

(B) Exception

The limitations established in subparagraph (A) shall not be

construed to prohibit assistance for the expansion of an

existing business entity through the establishment of a new

branch, affiliate, or subsidiary if the Secretary -

(i) finds that the establishment of the new branch,

affiliate, or subsidiary will not result in an increase in

unemployment in the area of original location or in any other

area where the existing business entity conducts business

operations; and

(ii) has no reason to believe that the new branch,

affiliate, or subsidiary is being established with the

intention of closing down the operations of the existing

business entity in the area of its original location or in

any other area where the existing business entity conducts

business operations.

(e) Definitions

For purposes of this section:

(1) Government

If more than one government seeks to nominate an area as an

enterprise zone, any reference to, or requirement of, this

section shall apply to all such governments.

(2) Local government

The term "local government" means -

(A) any county, city, town, township, parish, village, or

other general purpose political subdivision of a State;

(B) any combination of political subdivisions described in

subparagraph (A) recognized by the Secretary; and

(C) the District of Columbia.

(3) Secretary

The term "Secretary" means the Secretary of Housing and Urban

Development.

(4) State

The term "State" includes Puerto Rico, the Virgin Islands,

Guam, American Samoa, the Northern Mariana Islands, and any other

possession of the United States.

-SOURCE-

(Pub. L. 100-242, title VII, Sec. 701, Feb. 5, 1988, 101 Stat.

1957; Pub. L. 100-628, title X, Sec. 1090(a), (b), Nov. 7, 1988,

102 Stat. 3283; Pub. L. 102-550, title VIII, Sec. 834(a), Oct. 28,

1992, 106 Stat. 3855.)

-REFTEXT-

REFERENCES IN TEXT

The date of the enactment of the Housing and Community

Development Act of 1992, referred to in subsec. (a)(4)(B), is the

date of enactment of Pub. L. 102-550, which was approved Oct. 28,

1992.

The Housing Act of 1949, referred to in subsec. (d)(2), is act

July 15, 1949, ch. 338, 63 Stat. 413, as amended. Title V of the

Housing Act of 1949 is classified generally to subchapter III (Sec.

1471 et seq.) of chapter 8A of this title. For complete

classification of this Act to the Code, see Short Title note set

out under section 1441 of this title and Tables.

-MISC1-

AMENDMENTS

1992 - Subsec. (a)(4)(B). Pub. L. 102-550, Sec. 834(a)(1),

substituted "the date of the enactment of the Housing and Community

Development Act of 1992 occurs" for "the effective date of the

regulations described in subparagraph (A) occurs".

Subsec. (c)(3)(B). Pub. L. 102-550, Sec. 834(a)(2), substituted

"October 28, 1992" for "February 5, 1988".

1988 - Subsec. (a)(2)(B). Pub. L. 100-628, Sec. 1090(b),

substituted "under subparagraph (A)" for "under clause (i)" in

introductory provisions.

Subsec. (a)(3)(A). Pub. L. 100-628, Sec. 1090(a), amended first

sentence generally. Prior to amendment, first sentence read as

follows: "Except as provided in subparagraph (B), the Secretary

shall designate the nominated areas with the highest average

ranking with respect to the criteria set forth in subparagraphs

(C), (D), and (E) of subsection (c)(3) of this section."

REGULATIONS

Section 1090(c) of Pub. L. 100-628 provided that: "Not later than

30 days after the date of the enactment of this Act [Nov. 7, 1988],

the Secretary of Housing and Urban Development shall revise the

regulations issued by the Secretary to carry out title VII of the

Housing and Community Development Act of 1987 (42 U.S.C. 11501 et

seq.) by issuing a final regulation, effective upon the date of

publication, that carries out the amendments made by this section

[amending this section]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3532, 11503, 11504 of

this title.

-End-

-CITE-

42 USC Sec. 11502 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 120 - ENTERPRISE ZONE DEVELOPMENT

-HEAD-

Sec. 11502. Evaluation and reporting requirements

-STATUTE-

Not later than the close of the 4th calendar year after the year

in which the Secretary of Housing and Urban Development first

designates areas as enterprise zones pursuant to the amendments

made by section 834 of the Housing and Community Development Act of

1992, and at the close of each 4th calendar year thereafter, the

Secretary shall prepare and submit to the Congress a report on the

effects of such designation in accomplishing the purposes of this

chapter.

-SOURCE-

(Pub. L. 100-242, title VII, Sec. 702, Feb. 5, 1988, 101 Stat.

1961; Pub. L. 102-550, title VIII, Sec. 834(b), Oct. 28, 1992, 106

Stat. 3855.)

-REFTEXT-

REFERENCES IN TEXT

Section 834 of the Housing and Community Development Act of 1992,

referred to in text, is section 834 of Pub. L. 102-550, which

amended this section and section 11501 of this title.

-MISC1-

AMENDMENTS

1992 - Pub. L. 102-550 inserted "pursuant to the amendments made

by section 834 of the Housing and Community Development Act of

1992" after "zones".

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions of this

section relating to quadriennial submittal of report to Congress,

see section 3003 of Pub. L. 104-66, as amended, set out as a note

under section 1113 of Title 31, Money and Finance, and the 10th

item on page 106 of House Document No. 103-7.

-End-

-CITE-

42 USC Sec. 11503 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 120 - ENTERPRISE ZONE DEVELOPMENT

-HEAD-

Sec. 11503. Interaction with other Federal programs

-STATUTE-

(a) Coordination with relocation assistance

The designation of an enterprise zone under section 11501 of this

title shall not -

(1) constitute approval of a Federal or federally assisted

program or project (within the meaning of the Uniform Relocation

Assistance and Real Property Acquisition Policies Act of 1970 (42

U.S.C. 4601 et seq.)); or

(2) entitle any person displaced from real property located in

such zone to any rights or any benefits under such Act.

(b) Enterprise zones treated as labor surplus areas

Any area that is designated as an enterprise zone under section

11501 of this title shall be treated for all purposes under Federal

law as a labor surplus area.

-SOURCE-

(Pub. L. 100-242, title VII, Sec. 703, Feb. 5, 1988, 101 Stat.

1961.)

-REFTEXT-

REFERENCES IN TEXT

The Uniform Relocation Assistance and Real Property Acquisition

Policy Act of 1970, referred to in subsec. (a), probably means the

Uniform Relocation Assistance and Real Property Acquisition

Policies Act of 1970, Pub. L. 91-646, Jan. 2, 1971, 84 Stat. 1894,

as amended, which is classified principally to chapter 61 (Sec.

4601 et seq.) of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 4601 of

this title and Tables.

-End-

-CITE-

42 USC Sec. 11504 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 120 - ENTERPRISE ZONE DEVELOPMENT

-HEAD-

Sec. 11504. Waiver or modification of housing and community

development rules in enterprise zones

-STATUTE-

(a) In general

Upon the written request of the governments that designated and

approved an area that has been designated as an enterprise zone

under section 11501 of this title, the Secretary of Housing and

Urban Development (or, with respect to any rule issued under title

V of the Housing Act of 1949 [42 U.S.C. 1471 et seq.], the

Secretary of Agriculture) may, in order to further the job

creation, community development, or economic revitalization

objectives of the zone, waive or modify all or part of any rule

that the Secretary has authority to promulgate, as such rule

pertains to the carrying out of projects, activities, or

undertakings within the zone.

(b) Limitation

No provision of this section may be construed to authorize the

Secretary to waive or modify any rule adopted to carry out a

statute or Executive order that prohibits, or the purpose of which

is to protect persons against, discrimination on the basis of race,

color, religion, sex, marital status, national origin, age, or

handicap.

(c) Submission of requests

A request under subsection (a) of this section shall specify the

rule or rules to be waived or modified and the change proposed, and

shall briefly describe why the change would promote the achievement

of the job creation, community development, or economic

revitalization objectives of the enterprise zone. If a request is

made to the Secretary of Agriculture, the requesting governments

shall send a copy of the request to the Secretary of Housing and

Urban Development at the time the request is made.

(d) Consideration of requests

In considering a request, the Secretary shall weigh the extent to

which the proposed change is likely to further job creation,

community development, or economic revitalization within the

enterprise zone against the effect the change is likely to have on

the underlying purposes of applicable statutes in the geographic

area that would be affected by the change. The Secretary shall

approve the request whenever the Secretary finds, in the discretion

of the Secretary, that the public interest that the proposed change

would serve in furthering such job creation, community development

or economic revitalization outweighs the public interest that

continuation of the rule unchanged would serve in furthering such

underlying purposes. The Secretary shall not approve any request to

waive or modify a rule if that waiver or modification would -

(1) directly violate a statutory requirement; or

(2) be likely to present a significant risk to the public

health, including environmental health or safety.

(e) Notice of disapproval

If a request is disapproved, the Secretary shall inform the

requesting governments in writing of the reasons therefor and

shall, to the maximum extent possible, work with such governments

to develop an alternative, consistent with the standards contained

in subsection (d) of this section.

(f) Period for determination

The Secretary shall discharge the responsibilities of the

Secretary under this section in an expeditious manner, and shall

make a determination on requests not later than 90 days after their

receipt.

(g) Applicable procedures

A waiver or modification of a rule under subsection (a) of this

section shall not be considered to be a rule, rulemaking, or

regulation under chapter 5 of title 5. To facilitate reaching a

decision on any requested waiver or modification, the Secretary may

seek the views of interested parties and, if the views are to be

sought, determine how they should be obtained and to what extent,

if any, they should be taken into account in considering the

request. The Secretary shall publish a notice in the Federal

Register stating any waiver or modification of a rule under this

section.

(h) Effect of subsequent amendment of rules

In the event that the Secretary proposes to amend a rule for

which a waiver or modification under this section is in effect, the

Secretary shall not change the waiver or modification to impose

additional requirements unless the Secretary determines, consistent

with standards contained in subsection (d) of this section, that

such action is necessary.

(i) Expiration of waivers and modifications

No waiver or modification of a rule under this section shall

remain in effect for a longer period than the period for which the

enterprise zone designation remains in effect for the area in which

the waiver or modification applies.

(j) Definitions

For purposes of this section:

(1) Rule

The term "rule" means -

(A) any rule as defined in section 551(4) of title 5; or

(B) any rulemaking conducted on the record after opportunity

for an agency hearing pursuant to sections 556 and 557 of title

5.

(2) Secretary

The term "Secretary" means the Secretary of Housing and Urban

Development or, with respect to any rule issued under title V of

the Housing Act of 1949 [42 U.S.C. 1471 et seq.], the Secretary

of Agriculture.

-SOURCE-

(Pub. L. 100-242, title VII, Sec. 704, Feb. 5, 1988, 101 Stat.

1962.)

-REFTEXT-

REFERENCES IN TEXT

The Housing Act of 1949, referred to in subsecs. (a) and (j)(2),

is act July 15, 1949, ch. 338, 63 Stat. 413, as amended. Title V of

the Housing Act of 1949 is classified generally to subchapter III

(Sec. 1471 et seq.) of chapter 8A of this title. For complete

classification of this Act to the Code, see Short Title note set

out under section 1441 of this title and Tables.

-End-

-CITE-

42 USC Sec. 11505 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 120 - ENTERPRISE ZONE DEVELOPMENT

-HEAD-

Sec. 11505. Coordination with CDBG and UDAG programs

-STATUTE-

It is the policy of the Congress that amounts provided under the

community development block grant and urban development action

grant programs under title I of the Housing and Community

Development Act of 1974 [42 U.S.C. 5301 et seq.] shall not be

reduced in any fiscal year in which the provisions of this chapter

are in effect.

-SOURCE-

(Pub. L. 100-242, title VII, Sec. 706, Feb. 5, 1988, 101 Stat.

1964.)

-REFTEXT-

REFERENCES IN TEXT

The Housing and Community Development Act of 1974, referred to in

text, is Pub. L. 93-383, Aug. 22, 1974, 88 Stat. 633, as amended.

Title I of the Housing and Community Development Act of 1974 is

classified principally to chapter 69 (Sec. 5301 et seq.) of this

title. For complete classification of this Act to the Code, see

Short Title note set out under section 5301 of this title and

Tables.

-End-