‘‘(C) For purposes of subparagraph (A)(ii),
the term ‘P’ means the percentage constituted
by the ratio of—
‘‘(i) the amount equal to the total
population of the city, as determined by
the Secretary using the most recent data
that is available from the Secretary of
Commerce pursuant to the decennial cen-
sus and pursuant to reasonable estimates
by such Secretary of changes occurring in
the data in the ensuing period; to
‘‘(ii) the amount equal to the total
population of all eligible cities in the cur-
rent fiscal year.
‘‘(D) For purposes of this paragraph, the
term ‘‘eligible cities’’ means those cities which
meet the requirements of subparagraphs (A)
and (B) of section 7880(c)(2).
‘‘(7) DETERMINATION OF NEED ADJUSTED PER
CAPITA INCOME FACTOR.—
‘‘(A) For purposes of paragraph (5)(C)
(and subject to subparagraph (D)), the term
‘need adjusted per capita income factor’ means
the amount equal to the percentage determined
for the city in accordance with the following
formula:
1¥.15
+
I
,
Q
‘‘(B) For purposes of subparagraph (A),
the term ‘I’ means the per capita income of the
city for the most recent year for which data is
available, as determined by the Secretary of
Commerce.
‘‘(C) For purposes of subparagraph (A),
the term ‘Q’ means the product of—
‘‘(i) the need index of such city, as de-
termined under paragraph (6); and
‘‘(ii) the amount equal to the per cap-
ita income of the United States for the
most recent year for which data is avail-
able, as determined by the Secretary of
Commerce.
‘‘(D) In the case of a city for which the
quotient of the term ‘I’ (as determined under
subparagraph (B)) divided by the term ‘Q’ (as
determined under subparagraph (C)) is less
than 0.2, then such quotient shall be deemed to
be equal to 0.2 for such city for purposes of the
formula under subparagraph (A).
‘‘(c) PROCEDURAL RULE.—The allocating commis-
sion of each targeted urban area shall make allocations
under subsection (a) in accordance with the procedures es-
tablished under section 7880(a)(3)(D).
‘‘(d) ALLOCATING COMMISSION.—For purposes of
this section, the term ‘allocating commission’ means the
commission 
established 
pursuant 
to 
section
7880(a)(3)(C)(ii).
‘‘(e) OPERATING RULES.—For purposes of this sec-
tion—
‘‘(1) CREDIT AMOUNT.—Any allocation of credit
amount—
‘‘(A) shall specify the employer and taxable
year to which such allocation applies, and
‘‘(B) shall reduce the targeted urban area
limit for the calendar year in which such tax-
able year begins by 1 dollar for each dollar of
the amount so allocated.
‘‘(2) EXPENSE TREATMENT AMOUNT.—Any al-
location of an expense treatment amount—
‘‘(A) shall specify the adjusted basis of the
property to which such allocation applies, and
‘‘(B) shall reduce the targeted urban area
limit for the calendar year in which the prop-
erty is placed in service by 35 cents for each
dollar so allocated.
‘‘(3) ZONE STOCK DEDUCTION AMOUNT.—Any
allocation of a targeted urban area stock deduction
amount—
‘‘(A) shall specify the stock purchases to
which the allocation relates, and
‘‘(B) shall reduce the targeted urban area
limit for the calendar year in which such tax-
able year begins by 35 cents for each dollar of
the amount so allocated.
‘‘(f) RETROACTIVE ALLOCATIONS NOT EFFECTIVE.—
‘‘(1) IN
GENERAL.—No retroactive allocation
under subsection (a) shall be effective.
‘‘(2) RETROACTIVE
ALLOCATION.—For pur-
poses of subsection (a), the term ‘retroactive alloca-
tion’ means any allocation of—
‘‘(A) an employment credit amount after
the beginning of the taxable year to which such
allocation applies,
‘‘(B) an expense treatment amount after
the property involved is placed in service, or
‘‘(C) a targeted urban area stock deduction
amount after the stock involved is acquired.’’
‘‘(14) TARGETED
URBAN
AREA
STOCK.—The
deduction allowed by section 1393.’’.
SEC. 204. EFFECTIVE DATE.
The amendments made by this title shall apply to tax-
able years ending after December 31, 1992.
TITLE III—REGULATORY
FLEXIBILITY
SEC. 301. DEFINITION OF SMALL ENTITIES IN TARGETED
URBAN AREA FOR PURPOSES OF ANALYSIS
OF REGULATORY FUNCTIONS.
Section 601 of title 5, United States Code, is amend-
ed by—
(1) striking out ‘‘and’’ at the end of paragraph
(5); and
(2) striking out paragraph (6) and inserting in
lieu thereof the following:
‘‘(6) the term ‘small entity’ means—
‘‘(A) a small business, small organization,
or small governmental jurisdiction defined in
paragraphs (3), (4), and (5) of this section, re-
spectively; and
‘‘(B) any qualified targeted urban area
business; any unit of government that nomi-
nated an area which the Secretary of Housing
and Urban Development designates as a tar-
geted urban area (within the meaning of section
7880 of the Internal Revenue Code of 1986)
that has a rule pertaining to the carrying out
of any project, activity, or undertaking within
such targeted urban area; and any not-for-prof-
it enterprise carrying out a significant portion
of its activities within such a targeted urban
area; and
‘‘(7) the term ‘qualified targeted urban area
business’ means any person, corporation, or other
entity—
‘‘(A) which is engaged in the active con-
duct of a trade or business within an targeted
urban area (within the meaning of section 7880
of the Internal Revenue Code of 1986); and
‘‘(B) for whom at least 50 percent of its
employees perform substantially all of their
services for the employer in a targeted urban
area (as so defined).’’
SEC. 302. WAIVER OR MODIFICATION OF AGENCY RULES IN
TARGETED URBAN AREAS.
(a) Chapter 6 of title 5, United States Code, is
amended by redesignating sections 611 and 612 as sec-
tions 612 and 613, respectively, and inserting the follow-
ing new section immediately after section 610:
‘‘§ 611. Waiver or modification of agency rules in tar-
geted urban areas
‘‘(a) Upon the written request of any government
which nominated an area that the Secretary of Housing
and Urban Development has designated as a targeted
urban area under section 7880 of the Internal Revenue
Code of 1986, an agency is authorized, in order to further
the job creation, community development, or economic re-
vitalization objectives with respect to such targeted urban
area, to waive or modify all or part of any rule which it
has authority to promulgate, as such rule pertains to the
carrying out of projects, activities, or undertakings within
such targeted urban area.
‘‘(b) Nothing in this section shall authorize an agency
to waive or modify any rule adopted to carry out a statute
or Executive order which prohibits, or the purpose of
which is to protect persons against, discrimination on the
basis of race, color, religion, sex, familial status, national
origin, age, or handicap.
‘‘(c) A request under subsection (a) shall specify the
rule or rules to be waived or modified and the change pro-
posed, and shall briefly describe why the change would
promote the achievement of the job creation, community
development, or economic revitalization objectives of the
targeted urban area. If such a request is made to any
agency other than the Department of Housing and Urban
Development, the requesting government shall send a copy
of the request to the Secretary of Housing and Urban De-
velopment at the time the request is made.
‘‘(d) In considering a request, the agency shall weigh
the extent to which the proposed change is likely to further
job creation, community development, or economic revital-
ization within the targeted urban area against the effect
the change is likely to have on the underlying purposes
of applicable statutes in the geographic area which would
be affected by the change. The agency shall approve the
request whenever it finds, in its discretion, that the public
interest which the proposed change would serve in further-
ing such job creation, community development, or eco-
nomic revitalization outweighs the public interest which
continuation of the rule unchanged would serve. The agen-
cy shall not approve any request to waive or modify a rule
if that waiver or modification would—
‘‘(1) violate a statutory requirement (including
any requirements of the Fair Labor Standards Act
of 1938 (52 Stat. 1060; 29 U.S.C. 201 et seq.)); or
‘‘(2) be likely to present a significant risk to the
public health, including environmental or occupa-
tional health or safety, or of environmental pollution.
‘‘(e) If a request is disapproved, the agency shall in-
form all the requesting governments, and the Department
of Housing and Urban Development, in writing of the rea-
sons therefor and shall, to the maximum extent possible,
work with such governments to develop an alternative,
consistent with the standards contained in subsection (d).
‘‘(f) Agencies shall discharge their responsibilities
under this section in an expeditious manner, and shall
make a determination on requests not later than 90 days
after their receipt.
‘‘(g) A waiver or modification of a rule under sub-
section (a) shall not be considered to be a rule, rule-
making, or regulation under chapter 5 of this title. To fa-
cilitate reaching its decision on any requested waiver or
modification, the agency may seek the views of interested
parties 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 account in considering the request.
The agency shall publish a notice in the Federal Register
stating any waiver or modification of a rule under this
section, the time such waiver or modification takes effect
and its duration, and the scope of applicability of such
waiver or modification.
‘‘(h) In the event that an agency proposes to amend
a rule for which a waiver or modification under this sec-
tion is in effect, the agency shall not change the waiver
or modification to impose additional requirements unless
it determines, consistent with standards contained in sub-
section (d), that such action is necessary. Such determina-
tions shall be published with the proposal to amend such
rule.
‘‘(i) No waiver or modification of a rule under this
section shall remain in effect with respect to a targeted
urban area after the targeted urban area designation has
expired or has been revoked.
‘‘(j) For purposes of this section, the term ‘rule’
means (1) any rule as defined in section 551(4) of this
title or (2) any rulemaking conducted on the record after
opportunity for an agency hearing pursuant to sections
556 and 557 of this title.’’
(b) The analysis for chapter 6 of title 5, United
States Code, is amended by redesignating the items relat-
ing to sections 611 and 612 as items relating to sections
612 and 613, respectively, and by inserting after the item
relating to section 610 the following new item:
‘‘611. Waiver or modification of agency rules in targeted urban
areas.’’.
(c) Section 601(2) of such title 5 is amended by in-
serting ‘‘(except for purposes of section 611’’ immediately
before ‘‘means’’.
(d) Section 613 of such title 5, as redesignated by
subsection (a), is amended—
(1) in subsection (a) by inserting ‘‘(except sec-
tion 611)’’ immediately after ‘‘chapter’’; and
(2) in subsection (b) by inserting ‘‘as defined in
section 601(2)’’ immediately before the period at the
end of the first sentence.
SEC. 303. FEDERAL AGENCY SUPPORT OF TARGETED
URBAN AREAS.
In order to maximize all agencies’ support of targeted
urban areas, the Secretary of Housing and Urban Devel-
opment is authorized to convene regional and local coordi-
nating councils of any appropriate agencies to assist State
and local governments to achieve the objectives agreed to
in the course of action under section 7880 of the Internal
Revenue Code of 1986.
TITLE IV—ESTABLISHMENT OF
FOREIGN-TRADE 
ZONES 
IN
TARGETED URBAN AREAS
SEC. 401. FOREIGN-TRADE ZONE PREFERENCES.
(a) PREFERENCE IN ESTABLISHMENT OF FOREIGN-
TRADE ZONES IN TARGETED URBAN AREAS.—In process-
ing applications for the establishment of foreign-trade
zones pursuant to an Act ‘‘To provide for the establish-
ment, operation, and maintenance of foreign-trade zones
in ports of entry of the United States, to expedite and
encourage foreign commerce, and for other purposes’’, ap-
proved June 18, 1934 (48 Stat. 998), the Foreign-Trade
Zone Board shall consider on a priority basis and expedite,
to the maximum extent possible, the processing of any ap-
plication involving the establishment of a foreign-trade
zone within a targeted urban area designated pursuant to
section 7880 of the Internal Revenue Code of 1986.
(b) APPLICATION PROCEDURE.—In processing appli-
cations for the establishment of ports of entry pursuant
to ‘‘An Act making appropriations for sundry civil ex-
penses of the Government for the fiscal year ending June
thirtieth, nineteen hundred and fifteen, and for other pur-
poses’’, approved August 1, 1914 (38 Stat. 609), the Sec-
retary of the Treasury shall consider on a priority basis
and expedite, to the maximum extent possible, the process-
ing of any application involving the establishment of a port
of entry which is necessary to permit the establishment
of a foreign-trade zone within a targeted urban area so
designated.
(c) APPLICATION EVALUATION.—In evaluating appli-
cations for the establishment of foreign-trade zones and
ports of entry in connection with targeted urban areas so
designated, the Foreign-Trade Zone Board and the Sec-
retary of the Treasury shall approve the applications, to
the maximum extent practicable, consistent with their re-
spective statutory responsibilities.
TITLE V—REPEAL OF TITLE VII
OF THE HOUSING AND COM-
MUNITY DEVELOPMENT ACT
OF 1987
SEC. 501. REPEAL.
Title VII of the Housing and Community Develop-
ment Act of 1987 is hereby repealed.
Æ
HR 1008 IH——2
HR 1008 IH——3
HR 1008 IH——4