article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Empowerment Zone Enhancement Act of 1998''. SEC. 2. FUNDING ENTITLEMENT FOR ADDITIONAL ENTERPRISE ZONES. (a) Entitlement.--Section 2007(a)(1) of the Social Security Act (42 U.S.C. 1397f(a)) is amended-- (1) in subparagraph (A), by striking ``in the State; and'' and inserting ``in the State designated pursuant to section 1391(b) of the Internal Revenue Code of 1986;''; (2) in subparagraph (B), by striking the period at the end and inserting ``; and''; and (3) by adding after subparagraph (B) the following new subparagraph: ``(C) 10 grants under this section for each qualified empowerment zone in the State designated pursuant to section 1391(g) of such Code.''. (b) Amount of Grants.--Section 2007(a)(2) of that Act (42 U.S.C. 1397f(a)(2)) is amended-- (1) in the heading of subparagraph (A), by inserting ``original'' before ``empowerment''; (2) in subparagraph (A), in the matter preceding clause (i), by inserting ``described in paragraph (1)(A)'' after ``empowerment zone''; (3) by redesignating subparagraph (C) as subparagraph (D); and (4) by inserting after subparagraph (B) the following new subparagraph: ``(C) Additional empowerment grants.--The amount of each grant to a State under this section for a qualified empowerment zone described in paragraph (1)(C) shall be-- ``(i) if the zone is designated in an urban area, $10,000,000, or ``(ii) if the zone is designated in a rural area, $4,000,000, multiplied by the proportion of the population of the zone that resides in the State.''. (c) Timing of Grants.--Section 2007(a)(3) of that Act (42 U.S.C. 1397f(a)(3)) is amended-- (1) in the heading of subparagraph (A), by inserting ``original'' before ``qualified''; (2) in subparagraph (A), in the matter preceding clause (i), by inserting ``described in paragraph (1)(A)'' after ``empowerment zone''; and (3) by adding after subparagraph (B) the following new subparagraph: ``(C) Additional qualified empowerment zones.--With respect to each qualified empowerment zone described in paragraph (1)(C), the Secretary shall make-- ``(i) 1 grant under this subsection to the State in which the zone lies, on the date of the designation of the zone under such part I; and ``(ii) 1 grant under this subsection to such State, on the first day of each of the nine fiscal years that begin after the date of the designation.''. (d) Funding.--Section 2007(a)(4) of that Act (42 U.S.C. 1397f(a)(4)) is amended-- (1) by relocating and redesignating the matter following the caption as subparagraph (A); (2) by inserting ``Original grants.--'' after the subparagraph designation ``(A)''; (3) in subparagraph (A), as so redesignated, by inserting before the period ``for empowerment zones and enterprise communities described in subparagraphs (A) and (B) of paragraph (1)''; and (4) by adding after subparagraph (A), as so redesignated, the following new subparagraph: ``(B) Additional grants.--$1,700,000,000 shall be made available to the Secretary for grants under this section for empowerment zones described in paragraph (1)(C).''. SEC. 3. RESPONSIBILITY FOR ENVIRONMENTAL REVIEW. Section 2007 of the Social Security Act (42 U.S.C. 1397f) is amended-- (1) by redesignating subsection (f) as subsection (h); and (2) by inserting after subsection (e) the following new subsection: ``(f) Environmental Review.-- ``(1) Execution of responsibility by the secretary of housing and urban development and the secretary of agriculture.-- ``(A) Applicability.--This subsection shall apply to grants under this section in connection with empowerment zones and enterprise communities designated under section 1391(a) of the Internal Revenue Code of 1986 and empowerment zones designated under section 1391(g) of such Code-- ``(i) by the Secretary of Housing and Urban Development in the case of those located in urban areas; and ``(ii) by the Secretary of Agriculture in the case of those located in rural areas. ``(B) Execution of responsibility.--With respect to grants described in subparagraph (A), the Secretary of Housing and Urban Development and the Secretary of Agriculture, as appropriate, shall execute the responsibilities under the National Environmental Policy Act of 1969 and other provisions of law which further the purposes of such Act (as specified in regulations issued by each such Secretary under paragraph (2)(B)) that would otherwise apply to the Secretary of Health and Human Services, and may provide for the assumption of such responsibilities in accordance with paragraphs (2) through (5). ``(C) Definition of secretary.--Except as used in subparagraphs (A) and (B), the term `Secretary' as used in this subsection means the Secretary of Housing and Urban Development for purposes of grants under this section with respect to urban areas and means the Secretary of Agriculture for purposes of grants under this section with respect to rural areas. ``(2) Assumption of responsibility by states, units of general local government, and indian tribes.-- ``(A) Release of funds.--In order to assure that the policies of the National Environmental Policy Act of 1969 and other provisions of law that further the purposes of such Act (as specified in regulations issued by the Secretary under paragraph (2)(B)) are most effectively implemented in connection with the expenditure of funds under this section, and to assure to the public undiminished protection of the environment, the Secretary may, under such regulations, in lieu of the environmental protection procedures otherwise applicable, provide for the release of funds for particular projects to recipients of assistance under this section if the State, unit of general local government, or Indian tribe, as designated by the Secretary in accordance with regulations issued by the Secretary under paragraph (2)(B), assumes all of the responsibilities for environmental review, decisionmaking, and action pursuant to such Act, and such other provisions of law as the regulations of the Secretary specify, that would otherwise apply to the Secretary were the Secretary to undertake such projects as Federal projects. ``(B) Implementation.--The Secretary of Housing and Urban Development and the Secretary of Agriculture shall each issue regulations to carry out this subsection only after consultation with the Council on Environmental Quality. Such regulations shall-- ``(i) specify any other provisions of law which further the purposes of the National Environmental Policy Act of 1969 and to which the assumption of responsibility as provided in this subsection applies; ``(ii) provide eligibility criteria and procedures for the designation of a State, unit of general local government, or Indian tribe to assume all of the responsibilities in this section; ``(iii) specify the purposes for which funds may be committed without regard to the procedure established under paragraph (3); ``(iv) provide for monitoring of the performance of environmental reviews under this subsection; ``(v) in the discretion of the Secretary, provide for the provision or facilitation of training for such performance; and ``(vi) subject to the discretion of the Secretary, provide for suspension or termination by the Secretary of the assumption under subparagraph (A). ``(C) Responsibilities of state, unit of general local government, or indian tribe.--The Secretary's duty under subparagraph (B) shall not be construed to limit any responsibility assumed by a State, unit of general local government, or Indian tribe with respect to any particular release of funds under subparagraph (A). ``(3) Procedure.--The Secretary shall approve the release of funds for projects subject to the procedures authorized by this subsection only if, not less than 15 days prior to such approval and prior to any commitment of funds to such projects (except for such purposes specified in the regulations issued under paragraph (2)(B)), the recipient submits to the Secretary a request for such release accompanied by a certification of the State, unit of general local government, or Indian tribe which meets the requirements of paragraph (4). The approval by the Secretary of any such certification shall be deemed to satisfy the Secretary's responsibilities pursuant to paragraph (1) under the National Environmental Policy Act of 1969 and such other provisions of law as the regulations of the Secretary specify insofar as those responsibilities relate to the release of funds for projects to be carried out pursuant thereto which are covered by such certification. ``(4) Certification.--A certification under the procedures authorized by this subsection shall-- ``(A) be in a form acceptable to the Secretary; ``(B) be executed by the chief executive officer or other officer of the State, unit of general local government, or Indian tribe who qualifies under regulations of the Secretary; ``(C) specify that the State, unit of general local government, or Indian tribe under this subsection has fully carried out its responsibilities as described under paragraph (2); and ``(D) specify that the certifying officer-- ``(i) consents to assume the status of a responsible Federal official under the National Environmental Policy Act of 1969 and each provision of law specified in regulations issued by the Secretary insofar as the provisions of such Act or other such provision of law apply pursuant to paragraph (2); and ``(ii) is authorized and consents on behalf of the State, unit of general local government, or Indian tribe and himself or herself to accept the jurisdiction of the Federal courts for the purpose of enforcement of the responsibilities as such an official. ``(5) Approval by states.--In cases in which a unit of general local government carries out the responsibilities described in paragraph (2), the Secretary may permit the State to perform those actions of the Secretary described in paragraph (3). The performance of such actions by the State, where permitted, shall be deemed to satisfy the responsibilities referred to in the second sentence of paragraph (3).''. SEC. 4. PERFORMANCE MEASUREMENT AND EVALUATION; GRANT ADJUSTMENTS. Section 2007 of the Social Security Act (42 U.S.C. 1397f), as amended by section 4, is further amended by adding after subsection (f) the following new subsection: ``(g) Performance Measurement System, Reports, and Evaluations, Grant Adjustments, and Related Matters.-- ``(1) Applicability.--The requirements of this subsection-- ``(A) apply to all grants made by a State, from grants to the State under subsection (a)(2)(C), to lead implementing entities (as defined in paragraph (7)) for empowerment zones designated pursuant to section 1391(g) of the Internal Revenue Code of 1986 (26 U.S.C. 1391(g)); and ``(B) are in addition to the annual report and biennial audit requirements applicable to States under section 2006. ``(2) Performance measurement system.--The lead implementing entity for an empowerment zone shall establish a performance measurement system acceptable to the Secretary to assist in assessing the extent to which its strategic plan is being implemented and funds made available under subsection (a)(2)(C) are being used effectively. ``(3) Performance report.--Each lead implementing entity shall submit to the Secretary (and make available to the public upon request), at such time and in such manner as the Secretary shall prescribe, a report including an assessment of the progress the empowerment zone has made toward implementing its strategic plan, and such other information as the Secretary shall prescribe. To the extent practicable, the report shall also include information available to the lead implementing entity with respect to the use of tax incentives available to empowerment zones designated pursuant to section 1391(g) of the Internal Revenue Code of 1986. ``(4) Performance evaluations, adjustments, and recordkeeping.-- ``(A) Performance evaluations.--The Secretary shall regularly evaluate the progress of the lead implementing entity for the empowerment zone in implementing the strategic plan for the zone, on the basis of performance reviews and any other information that the Secretary may require. ``(B) Adjustments.--On the basis of the Secretary's evaluation under subparagraph (A), the Secretary may direct the Secretary of Health and Human Services to adjust, reduce, or cancel the grant to a State under subsection (a)(2)(C) for the current or any future fiscal year or years, except that amounts already properly expended by a lead implementing entity on eligible activities under this Act shall not be recaptured or deducted from future grants to the State. ``(5) Retention of records.--Each lead implementing entity shall keep such records relating to funds received from grants to the State under subsection (a)(2)(C), including the amounts and disposition of such funds and the types of activities funded, as the Secretary determines to be necessary to enable the Secretary to evaluate the performance of the lead implementing agency and to determine compliance with the requirements of this subsection. ``(6) Secretary's access to documents.--The Secretary shall have access, for the purpose of evaluations and examinations pursuant to paragraph (4)(A), to any books, documents, papers, and records of any grantee or other entity or person that are pertinent to grant amounts received in connection with this section. ``(7) Definitions.--For purposes of this subsection-- ``(A) The term `lead implementing entity' means the local government or governments, the governance body of an empowerment zone as specified in the strategic plan, or any non-profit entity that is principal administrator of an empowerment zone. ``(B) The term `Secretary' means the Secretary of Housing and Urban Development for purposes of grants under this section with respect to urban areas and means the Secretary of Agriculture for purposes of grants under this section with respect to rural areas, except as the context otherwise indicates.''. SEC. 5. TECHNICAL AMENDMENTS. Section 2007(b) of the Social Security act is amended-- (1) in paragraph (2), in the matter preceding subparagraph (A), by striking ``to prevent''; and (2) in paragraph (4), in the matter preceding subparagraph (A), by striking ``maintain'' and inserting ``maintaining''.
summary: Empowerment Zone Enhancement Act of 1998 - Amends title XX (Block Grants to States for Social Services) of the Social Security Act with respect to additional grants to: (1) provide for grant funding for additional empowerment zones; (2) set the amount of such grants for zones in urban ($10 million) and rural ($4 million) areas, as well as the timing of such grants (ten years of one-year grants); (3) provide funding for such grants; (4) require environmental review by the Secretary of Housing and Urban Development (urban areas) and the Secretary of Agriculture (rural areas); and (5) require the lead implementing entity for an empowerment zone to establish a performance measurement system.