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include provisions described in not less than 4 of the subparagraphs of paragraph (2).

(2) COURSE OF ACTION.-The course of action under para graph (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 Ad of 1949, 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 en terprise 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 associa tions, 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

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(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.

SEC. 702. [42 U.S.C. 11502] EVALUATION AND REPORTING REQUIREMENTS.

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 title. [42 U.S.C. 11502]

SEC. 703. [42 U.S.C. 11503] INTERACTION WITH OTHER FEDERAL PROGRAMS.

(a) COORDINATION WITH RELOCATION ASSISTANCE.-The designation of an enterprise zone under section 701 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 701 shall be treated for all purposes under Federal law as a labor surplus area.

SEC. 704. [42 U.S.C. 11504] WAIVER OR MODIFICATION OF HOUSING

AND COMMUNITY DEVELOPMENT RULES IN ENTERPRISE
ZONES.

(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 701, the Secretary of Housing and

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(4) BUBMISSION OF REQUESTS - PEQUES me sheet shall specify the rule or rules if he waved or madded change proposed, and shall triedy describe wis de m promote the achievement of the jar certo comeunday Soc ment, or economic revitalization objectives of the eneIS E Il # request is made to the Secretary of Semar ecess governments shall send a copy of the request at the Secretary! Thousing and Urban Development at the time the regues i 12

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(1) ConsideraTION OF REQUESTS-In considering a re The Secretary shall weigh the extent to which the proposed I likely to further job creation, commurety devergine mum revitalization within the enterprise zone against the the change is likely to have on the underlying purposes of applie ble statutes in the geographic area that would be affected by Thongs The Secretary shall approve the request whenever the Set stary nude, in the discretion of the Secretary, that the publ bad that the proposed change would serve in furthering such t Fixation, community development or economic revitalization o wipe the public interest that continuation of the rule unchanged would weave in furthering such underlying purposes. The Secretar dull and approve any request to waive or modify a rule if that vaised in modification would

(1) dirty violate a statutory requirement; or

(4) he likely to present a significant risk to the public alth, including environmental health or safety.

By Homes OF DISAPPROVAL.-If a request is disapproved, the Becretary shall inform the requesting governments in writing of He renome therefor and shall, to the maximum extent possible work with such governments to develop an alternative, consistent with the standarda contained in subsection (d).

I'mon row DETERMINATION.-The Secretary shall discharge The copmalalties of the Secretary under this section in an expedi Bioma jummer, and shall make a determination on requests not labs than 80 days after their receipt.

(B) APPLICABLE PROCEDURES.-A waiver or modification of a rule under subaction (a) shall not be considered to be a rule, rulemaking or regulation under chapter 5 of title 5, United States Code To facilitate reaching a decision on any requested waiver or modification, the Secretary may seek the views of interested par ties 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

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at in considering the request. The Secretary shall publish a in the Federal Register stating any waiver or modification ule under this section.

n) EFFECT OF SUBSEQUENT AMENDMENT OF RULES.-In the that the Secretary proposes to amend a rule for which a er or modification under this section is in effect, the Secretary not change the waiver or modification to impose additional reements unless the Secretary determines, consistent with stand: contained in subsection (d), that such action is necessary. (i) EXPIRATION OF WAIVERS AND MODIFICATIONS.—No waiver or ification of a rule under this section shall remain in effect for ager period than the period for which the enterprise zone destion remains in effect for the area in which the waiver or modiion 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, United States Code; or

(B) any rulemaking conducted on the record after opportunity for an agency hearing pursuant to sections 556 and 557 of such 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, the Secretary of Agriculture.

C. 705. COORDINATION OF HOUSING AND URBAN DEVELOPMENT PROGRAMS IN ENTERPRISE ZONES.

Section 3 of the Department of Housing and Urban Developent Act is amended by adding at the end the following new subection:

"(d)

EC. 706. [42 U.S.C. 11505] COORDINATION WITH CDBG AND UDAG PROGRAMS.

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 shall not be reduced in any fiscal year in which the provisions of this title are in effect.

CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT

AND AFFORDABLE HOUSING

EXCERPT FROM HUD DEMONSTRATION ACT OF 1993

[Public Law 103–120; 107 Stat. 1148; 42 U.S.C. 9816 note] SEC. 4. [42 U.S.C. 9816 note] CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND AFFORDABLE HOUSING.

(a) IN GENERAL.-The Secretary is authorized to provide assistance through the National Community Development Initiative, Local Initiatives Support Corporation, The Enterprise Foundation, Habitat for Humanity, and Youthbuild USA to develop the capacity and ability of community development corporations and community housing development organizations to undertake community development and affordable housing projects and programs.

(b) FORM OF ASSISTANCE.-Assistance under this section may be used for

(1) training, education, support, and advice to enhance the technical and administrative capabilities of community development corporations and community housing development organizations;

(2) loans, grants, or predevelopment assistance to community development corporations and community housing development organizations to carry out community development and affordable housing activities that benefit low-income families; and

(3) such other activities as may be determined by the National Community Development Initiative, Local Initiatives Support Corporation, The Enterprise Foundation, Habitat for Humanity, and Youthbuild USA in consultation with the Secretary.

(c) MATCHING REQUIREMENT.-Assistance provided under this section shall be matched from private sources in an amount equal to 3 times the amount made available under this section.

(d) IMPLEMENTATION.-The Secretary shall by notice establish such requirements as may be necessary to carry out the provisions of this section. The notice shall take effect upon issuance.

(e) AUTHORIZATION.-There are authorized to be appropriated $25,000,000 for fiscal year 1994 to carry out this section.

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