Designation of Rural Empowerment Zones and Rural Enterprise Communities

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*

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

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] BILLING CODE 3410-07-U