I
103D CONGRESS
1ST SESSION
H. R. 1338
To provide assistance to distressed communities.
IN THE HOUSE OF REPRESENTATIVES
MARCH 15, 1993
Mr. UPTON introduced the following bill; which was referred jointly to the
Committees on Ways and Means, Banking, Finance and Urban Affairs,
Education and Labor, Energy and Commerce, the Judiciary, and Agri-
culture
A BILL
To provide assistance to distressed communities.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Enterprise Zone and Model Neighborhood Aid Act of
1993’’.
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986.
(c) TABLE OF CONTENTS.—
Sec. 1. Short title; etc.
TITLE I—URBAN TAX ENTERPRISE ZONES AND RURAL
DEVELOPMENT INVESTMENT ZONES
Sec. 101. Statement of purpose.
Subtitle A—Designation and Tax Incentives
Sec. 102. Designation and treatment of urban tax enterprise zones and rural
development investment zones.
Sec. 103. Technical and conforming amendments.
Sec. 104. Effective date.
Subtitle B—Redevelopment Bonds for Tax Enterprise Zones
Sec. 111. Special rules for redevelopment bonds providing financing for tax en-
terprise zones.
Subtitle C—Expansion of Targeted Jobs Credit
Sec. 121. Economically disadvantaged zone residents included as members of
targeted group.
Subtitle D—Credit for Contributions to Certain Community Development
Corporations
Sec. 131. Credit for contributions to certain community development corpora-
tions.
Subtitle E—Authority for National Banks To Deal in Securities of
Corporations Located in Tax Enterprise Zones
Sec. 141. Authority for national banks to deal in securities of corporations lo-
cated in tax enterprise zones.
Subtitle F—Report on Number of Areas Meeting Enterprise Zone Criteria
Sec. 151. Report.
TITLE II—ADDITIONAL ASSISTANCE TO ENTERPRISE ZONES AND
OTHER DISTRESSED COMMUNITIES
Sec. 201. Purpose.
Subtitle A—National Public-Private Partnership Program
Sec. 211. Sense of Congress.
Sec. 212. Authorization of appropriations.
Subtitle B—Coordinated and Comprehensive Neighborhood Aid for Tax
Enterprise Zones and Other Communities
CHAPTER 1—ENTERPRISE COMMUNITY BLOCK GRANT DEMONSTRATION
PROGRAM
Sec. 221. Funding.
Sec. 222. Allocation of amounts among tax enterprise zones.
Sec. 223. Use of amounts.
CHAPTER 2—MODEL NEIGHBORHOOD AID PROGRAM
Sec. 231. Purpose.
Sec. 232. Single applications by local governments for funding under eligible
programs.
Sec. 233. Availability and use of amounts.
Sec. 234. Priority in funding.
Sec. 235. Treatment of previously approved weed and seed communities.
Sec. 236. One-time strategy implementation grants.
CHAPTER 3—ELIGIBLE PROGRAMS AND INTERAGENCY COUNCIL FOR
NEIGHBORHOOD AID
Sec. 241. Eligible programs.
Sec. 242. Interagency Council for Neighborhood Aid.
Sec. 243. Neighborhood aid plans.
Sec. 244. Definitions.
Sec. 245. Study and report.
Sec. 246. Regulations.
Subtitle C—Community Development Block Grant Program
Sec. 251. Increase of public services cap under community development block
grant program.
Sec. 252. Emergency community development loan guarantee authority.
Subtitle D—Young Adult Employment Demonstration Program
Sec. 261. Establishment of young adult employment demonstration program.
Subtitle E—National Community Economic Partnership
Sec. 271. Short title.
Sec. 272. Findings and purpose.
Sec. 273. Assistance to States.
Sec. 274. State assistance to community development corporations.
Sec. 275. State plans.
Sec. 276. Reports.
Sec. 277. Definitions.
Sec. 278. Prohibition.
Sec. 279. Effective date.
Subtitle F—Miscellaneous Programs
Sec. 281. Enterprise capital access fund.
Sec. 282. Access to jobs/reverse commuting demonstration program.
TITLE 
I—URBAN 
TAX 
ENTER-
PRISE ZONES AND RURAL DE-
VELOPMENT 
INVESTMENT
ZONES
SEC. 101. STATEMENT OF PURPOSE.
It is the purpose of this title to establish a demonstra-
tion program of providing incentives for the creation of
tax enterprise zones in order—
(1) to revitalize economically and physically dis-
tressed areas, primarily by encouraging the forma-
tion of new businesses and the retention and expan-
sion of existing businesses,
(2) to promote meaningful employment for tax
enterprise zone residents, and
(3) to encourage individuals to reside in the tax
enterprise zones in which they are employed.
Subtitle A—Designation and Tax
Incentives
SEC. 102. DESIGNATION AND TREATMENT OF URBAN TAX
ENTERPRISE ZONES AND RURAL DEVELOP-
MENT INVESTMENT ZONES.
(a) IN GENERAL.—Chapter 1 (relating to normal
taxes and surtaxes) is amended by inserting after sub-
chapter T the following new subchapter:
‘‘(i) the establishment of the new
branch, affiliate, or subsidiary will not re-
sult 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) there is no reason to believe that
the new branch, affiliate, or subsidiary is
being established with the intention of clos-
ing down the operations of the existing
business entity in the area of its original
location or in any other area where the ex-
isting business entity conducts business op-
erations.
‘‘(d) SELECTION CRITERIA.—From among the nomi-
nated areas eligible for designation under subsection (b)
by the appropriate Secretary, such appropriate Secretary
shall make designations of tax enterprise zones on the
basis of the following factors (each of which is to be given
equal weight):
‘‘(1) STATE AND LOCAL COMMITMENTS.—The
strength and quality of the commitments which have
been promised as part of the course of action rel-
ative to the fiscal ability of the nominating State
and local governments.