§ 11501. Designation of enterprise zones
(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
(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);
(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.
(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)—
(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—
(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—
(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—
(C)
the area—
(i)
has a population, as determined by the most recent census data available, of not less than—
(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—
(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).
(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—
(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—
(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;
(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—
(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.