tion during the fiscal year and any preliminary findings or conclusions drawn from the demonstration program. (13) NO BENEFIT RULE.-To the extent that assistance is provided to an eligible organization that is a depository institution holding company, the Secretary shall ensure, to the extent practicable, that such assistance does not inure to the benefit of directors, officers, employees and stockholders. (14) REGULATIONS. (A) The Secretary shall issue such regulations as may be necessary to carry out the provisions of this subsection. (B) The appropriate Federal financial supervisory agency, by regulation or order (i) may restrict any regulated financial institution's receipt of an extension of credit from, or investment by, an eligible organization; (ii) may restrict the making, by a regulated financial institution or holding company, of an extension of credit to, or investment in, an eligible organization; and (iii) shall prohibit any transaction that poses an undue risk to the affected deposit insurance fund. (C) To the extent practicable, the Secretary and the Federal financial supervisory agencies shall coordinate the development of regulations and other program guidelines. (15) SAFETY AND SOUNDNESS OF INSURED DEPOSITORIES.— Nothing in this section shall limit the applicability of other law relating to the safe and sound operation and management of a regulated financial institution (or a holding company) affiliated with an eligible organization or receiving assistance provided under this section. (16) EFFECTIVE DATE.-This section shall become effective 6 months from the date of enactment of this Act. 1 'The date of enactment was October 28, 1992. ENTERPRISE ZONE DEVELOPMENT EXCERPT FROM HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1987 [Public Law 100-242; 101 Stat. 1957; 42 U.S.C. 11501 et seq.] TITLE VII-ENTERPRISE ZONE SEC. 701. [42 U.S.C. 11501] DESIGNATION OF ENTERPRISE ZONES. (a) DESIGNATION OF ZONES.— (1) DEFINITION.-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 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), and the 1 criterion set forth in subparagraph (E)(i) or (E)(ii) of subsection (c)(3) 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) 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 the date of the enactment of this Act,1 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). (B) TIME LIMITATIONS.-The Secretary shall designate nominated areas as enterprise zones only during the 24month 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 oc curs. 2 (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); and (III) to provide assurances satisfactory to the Secretary that such commitments will be fulfilled; The date of enactment was February 5, 1988. "The date of enactment was October 28, 1992. 1) a nomination therefors submitted n such a manner and in such form, and contains such norme on as the Secretary snail by regulation prescribe: the Secretary tetermines that any informa zon furnished is reasonably accurate, and iv the State and local governments cerafy the no portion of the area nominated s aiready included in an enterprise zone or in an area otherwise nomnated to be in enterarse zone. 5 NOMINATION PROCESS FOR INDIAN RESERVATIONS.—b the case of a nominated area in an Indian reservation, the re ervation governing body as determined by the Secretary of the Interior snail be deemed to be both the State and local governments with respect to such area. b. PERICE FOR WHICH DESIGNATION IS IN EFFECT.— 1 IN HENERAL-Any designation of an area as an enterprise zone shall remain in effect during the period beginning on the fate of the designation and ending on the earbest A. December 31 of the 24th calendar year following the calendar year in which such date occurs: 3 the termination date designated by the State and Local governments as provided for in their nomination pursuant to subsection a (4(C(i: or C the date the Secretary revokes such designation under paragraph 2. 2 REVOCATION CF DESIGNATION-The Secretary, after consultation with the officials described in subsection a 1B 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 (C) AREA AND ELIGIBILITY REQUIREMENTS.— (1) IN GENERAL.-The Secretary may make a designation of any nominated area under subsection (a)(1) 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 (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)) is located within a metropolitan statistical area (as designated by the Director of the Of fice 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 119 of the Housing and Community Development Act of 1974, as in effect on the date of the enactment of the Housing and Community Development Act of 1992; 1 (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 teria: (E) the area meets at least one of the following cri (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 119(b)(2) of the Housing and Community Development Act of 1974). (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) 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 1October 28, 1992. |