II

105TH CONGRESS

2D SESSION S. 1927

To amend section 2007 of the Social Security Act to provide grant funding

for 20 additional empowerment zones, and for other purposes.

IN THE SENATE OF THE UNITED STATES

APRIL 2, 1998

Ms. MOSELEY-BRAUN introduced the following bill; which was read twice and

referred to the Committee on Finance

A BILL

To amend section 2007 of the Social Security Act to provide

grant funding for 20 additional empowerment zones, and

for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Empowerment Zone

5 Enhancement Act of 1998’’.

6 SEC. 2. FUNDING ENTITLEMENT FOR ADDITIONAL ENTER7 PRISE ZONES.

8 (a) ENTITLEMENT.—Section 2007(a)(1) of the Social

9 Security Act (42 U.S.C. 1397f(a)) is amended—
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1 (1) in subparagraph (A), by striking ‘‘in the

2 State; and’’ and inserting ‘‘in the State designated

3 pursuant to section 1391(b) of the Internal Revenue

4 Code of 1986;’’;

5 (2) in subparagraph (B), by striking the period

6 at the end and inserting ‘‘; and’’; and

7 (3) by adding after subparagraph (B) the fol8 lowing new subparagraph:

9 ‘‘(C) 10 grants under this section for each

10 qualified empowerment zone in the State des11 ignated pursuant to section 1391(g) of such

12 Code.’’.

13 (b) AMOUNT OF GRANTS.—Section 2007(a)(2) of

14 that Act (42 U.S.C. 1397f(a)(2)) is amended—

15 (1) in the heading of subparagraph (A), by in16 serting ‘‘ORIGINAL’’ before ‘‘EMPOWERMENT’’;

17 (2) in subparagraph (A), in the matter preced18 ing clause (i), by inserting ‘‘described in paragraph

19 (1)(A)’’ after ‘‘empowerment zone’’;

20 (3) by redesignating subparagraph (C) as sub21 paragraph (D); and

22 (4) by inserting after subparagraph (B) the fol23 lowing new subparagraph:

24 ‘‘(C) ADDITIONAL EMPOWERMENT

25 GRANTS.—The amount of each grant to a State
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1 under this section for a qualified empowerment

2 zone described in paragraph (1)(C) shall be—

3 ‘‘(i) if the zone is designated in an

4 urban area, $10,000,000, or

5 ‘‘(ii) if the zone is designated in a

6 rural area, $4,000,000,

7 multiplied by the proportion of the population

8 of the zone that resides in the State.’’.

9 (c) TIMING OF GRANTS.—Section 2007(a)(3) of that

10 Act (42 U.S.C. 1397f(a)(3)) is amended—

11 (1) in the heading of subparagraph (A), by in12 serting ‘‘ORIGINAL’’ before ‘‘QUALIFIED’’;

13 (2) in subparagraph (A), in the matter preced14 ing clause (i), by inserting ‘‘described in paragraph

15 (1)(A)’’ after ‘‘empowerment zone’’; and

16 (3) by adding after subparagraph (B) the fol17 lowing new subparagraph:

18 ‘‘(C) ADDITIONAL QUALIFIED EMPOWER19 MENT ZONES.—With respect to each qualified

20 empowerment zone described in paragraph

21 (1)(C), the Secretary shall make—

22 ‘‘(i) 1 grant under this subsection to

23 the State in which the zone lies, on the

24 date of the designation of the zone under

25 such part I; and
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1 ‘‘(ii) 1 grant under this subsection to

2 such State, on the first day of each of the

3 nine fiscal years that begin after the date

4 of the designation.’’.

5 (d) FUNDING.—Section 2007(a)(4) of that Act (42

6 U.S.C. 1397f(a)(4)) is amended—

7 (1) by relocating and redesignating the matter

8 following the caption as subparagraph (A);

9 (2) by inserting ‘‘ORIGINAL GRANTS.—’’ after

10 the subparagraph designation ‘‘(A)’’;

11 (3) in subparagraph (A), as so redesignated, by

12 inserting before the period ‘‘for empowerment zones

13 and enterprise communities described in subpara14 graphs (A) and (B) of paragraph (1)’’; and

15 (4) by adding after subparagraph (A), as so re16 designated, the following new subparagraph:

17 ‘‘(B) ADDITIONAL GRANTS.—

18 $1,700,000,000 shall be made available to the

19 Secretary for grants under this section for em20 powerment zones described in paragraph

21 (1)(C).’’.
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1 SEC. 3. USE OF GRANTS FOR LOAN FUNDS AND SIMILAR

2 ARRANGEMENTS.

3 Section 2007(b) of the Social Security Act (42 U.S.C.

4 1397f(b)) is amended by adding the end the following new

5 paragraph:

6 ‘‘(5)(A) In order to assist disadvantaged adults

7 and youths in achieving and maintaining economic

8 self-support, a State may use amounts paid under

9 this section to fund revolving loan funds or similar

10 arrangements for the purpose of making loans, loan

11 guarantees, financial services, or related activities

12 more accessible to residents, institutions, organiza13 tions, or businesses.

14 ‘‘(B) Interest earned by, and repayments of

15 principal and interest on loans made from, revolving

16 funds or similar arrangements described in subpara17 graph (A) shall be credited to such funds.

18 ‘‘(C) The funding of, or holding of funds in, a

19 revolving loan fund or similar arrangement in ac20 cordance with subparagraph (A), in amounts reason21 ably necessary to carry out the purposes of such

22 subparagraph (A), shall be deemed to comply with

23 any requirement to minimize the time elapsing be24 tween transfer of funds from the United States

25 Treasury and the issuance of payments for program

26 purposes.’’.
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1 SEC. 4. RESPONSIBILITY FOR ENVIRONMENTAL REVIEW.

2 Section 2007 of the Social Security Act (42 U.S.C.

3 1397f) is amended—

4 (1) by redesignating subsection (f) as sub5 section (h); and

6 (2) by inserting after subsection (e) the follow7 ing new subsection:

8 ‘‘(f) ENVIRONMENTAL REVIEW.—

9 ‘‘(1) EXECUTION OF RESPONSIBILITY BY THE

10 SECRETARY OF HOUSING AND URBAN DEVELOPMENT

11 AND THE SECRETARY OF AGRICULTURE.—

12 ‘‘(A) APPLICABILITY.—This subsection

13 shall apply to grants under this section in con14 nection with empowerment zones and enterprise

15 communities designated under section 1391(a)

16 of the Internal Revenue Code of 1986 and em17 powerment zones designated under section

18 1391(g) of such Code—

19 ‘‘(i) by the Secretary of Housing and

20 Urban Development in the case of those lo21 cated in urban areas; and

22 ‘‘(ii) by the Secretary of Agriculture

23 in the case of those located in rural areas.

24 ‘‘(B) EXECUTION OF RESPONSIBILITY.—

25 With respect to grants described in subpara26 graph (A), the Secretary of Housing and Urban
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1 Development and the Secretary of Agriculture,

2 as appropriate, shall execute the responsibilities

3 under the National Environmental Policy Act of

4 1969 and other provisions of law which further

5 the purposes of such Act (as specified in regula6 tions issued by each such Secretary under para7 graph (2)(B)) that would otherwise apply to the

8 Secretary of Health and Human Services, and

9 may provide for the assumption of such respon10 sibilities in accordance with paragraphs (2)

11 through (5).

12 ‘‘(C) DEFINITION OF SECRETARY.—Except

13 as used in subparagraphs (A) and (B), the term

14 ‘Secretary’ as used in this subsection means the

15 Secretary of Housing and Urban Development

16 for purposes of grants under this section with

17 respect to urban areas and means the Secretary

18 of Agriculture for purposes of grants under this

19 section with respect to rural areas.

20 ‘‘(2) ASSUMPTION OF RESPONSIBILITY BY

21 STATES, UNITS OF GENERAL LOCAL GOVERNMENT,

22 AND INDIAN TRIBES.—

23 ‘‘(A) RELEASE OF FUNDS.—In order to as24 sure that the policies of the National Environ25 mental Policy Act of 1969 and other provisions
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1 of law that further the purposes of such Act (as

2 specified in regulations issued by the Secretary

3 under paragraph (2)(B)) are most effectively

4 implemented in connection with the expenditure

5 of funds under this section, and to assure to the

6 public undiminished protection of the environ7 ment, the Secretary may, under such regula8 tions, in lieu of the environmental protection

9 procedures otherwise applicable, provide for the

10 release of funds for particular projects to recipi11 ents of assistance under this section if the

12 State, unit of general local government, or In13 dian tribe, as designated by the Secretary in ac14 cordance with regulations issued by the Sec15 retary under paragraph (2)(B), assumes all of

16 the responsibilities for environmental review,

17 decisionmaking, and action pursuant to such

18 Act, and such other provisions of law as the

19 regulations of the Secretary specify, that would

20 otherwise apply to the Secretary were the Sec21 retary to undertake such projects as Federal

22 projects.

23 ‘‘(B) IMPLEMENTATION.—The Secretary of

24 Housing and Urban Development and the Sec25 retary of Agriculture shall each issue regula-
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1 tions to carry out this subsection only after con2 sultation with the Council on Environmental

3 Quality. Such regulations shall—

4 ‘‘(i) specify any other provisions of

5 law which further the purposes of the Na6 tional Environmental Policy Act of 1969

7 and to which the assumption of respon8 sibility as provided in this subsection ap9 plies;

10 ‘‘(ii) provide eligibility criteria and

11 procedures for the designation of a State,

12 unit of general local government, or Indian

13 tribe to assume all of the responsibilities in

14 this section;

15 ‘‘(iii) specify the purposes for which

16 funds may be committed without regard to

17 the procedure established under paragraph

18 (3);

19 ‘‘(iv) provide for monitoring of the

20 performance of environmental reviews

21 under this subsection;

22 ‘‘(v) in the discretion of the Secretary,

23 provide for the provision or facilitation of

24 training for such performance; and
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1 ‘‘(vi) subject to the discretion of the

2 Secretary, provide for suspension or termi3 nation by the Secretary of the assumption

4 under subparagraph (A).

5 ‘‘(C) RESPONSIBILITIES OF STATE, UNIT

6 OF GENERAL LOCAL GOVERNMENT, OR INDIAN

7 TRIBE.—The Secretary’s duty under subpara8 graph (B) shall not be construed to limit any

9 responsibility assumed by a State, unit of gen10 eral local government, or Indian tribe with re11 spect to any particular release of funds under

12 subparagraph (A).

13 ‘‘(3) PROCEDURE.—The Secretary shall ap14 prove the release of funds for projects subject to the

15 procedures authorized by this subsection only if, not

16 less than 15 days prior to such approval and prior

17 to any commitment of funds to such projects (except

18 for such purposes specified in the regulations issued

19 under paragraph (2)(B)), the recipient submits to

20 the Secretary a request for such release accompanied

21 by a certification of the State, unit of general local

22 government, or Indian tribe which meets the require23 ments of paragraph (4). The approval by the Sec24 retary of any such certification shall be deemed to

25 satisfy the Secretary’s responsibilities pursuant to
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1 paragraph (1) under the National Environmental

2 Policy Act of 1969 and such other provisions of law

3 as the regulations of the Secretary specify insofar

4 as those responsibilities relate to the releases of

5 funds for projects to be carried out pursuant thereto

6 which are covered by such certification.

7 ‘‘(4) CERTIFICATION.—A certification under the

8 procedures authorized by this subsection shall—

9 ‘‘(A) be in a form acceptable to the Sec10 retary;

11 ‘‘(B) be executed by the chief executive of12 ficer or other officer of the State, unit of gen13 eral local government, or Indian tribe who

14 qualifies under regulations of the Secretary;

15 ‘‘(C) specify that the State, unit of general

16 local government, or Indian tribe under this

17 subsection has fully carried out its responsibil18 ities as described under paragraph (2); and

19 ‘‘(D) specify that the certifying officer—

20 ‘‘(i) consents to assume the status of

21 a responsible Federal official under the

22 National Environmental Policy Act of

23 1969 and each provision of law specified in

24 regulations issued by the Secretary insofar

25 as the provisions of such Act or other such
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1 provision of law apply pursuant to para2 graph (2); and

3 ‘‘(ii) is authorized and consents on be4 half of the State, unit of general local gov5 ernment, or Indian tribe and himself or

6 herself to accept the jurisdiction of the

7 Federal courts for the purpose of enforce8 ment of the responsibilities as such an offi9 cial.

10 ‘‘(5) APPROVAL BY STATES.—In cases in which

11 a unit of general local government carries out the re12 sponsibilities described in paragraph (2), the Sec13 retary may permit the State to perform those ac14 tions of the Secretary described in paragraph (3).

15 The performance of such actions by the State, where

16 permitted, shall be deemed to satisfy the responsibil17 ities referred to in the second sentence of paragraph

18 (3).’’.

19 SEC. 5. PERFORMANCE MEASUREMENT AND EVALUATION;

20 GRANT ADJUSTMENTS.

21 Section 2007 of the Social Security Act (42 U.S.C.

22 1397f), as amended by section 4, is further amended by

23 adding after subsection (f) the following new subsection:
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1 ‘‘(g) PERFORMANCE MEASUREMENT SYSTEM, RE2 PORTS, AND EVALUATIONS, GRANT ADJUSTMENTS, AND

3 RELATED MATTERS.—

4 ‘‘(1) APPLICABILITY.—The requirements of this

5 subsection—

6 ‘‘(A) apply to all grants made by a State,

7 from grants to the State under subsection

8 (a)(2)(C), to lead implementing entities (as de9 fined in paragraph (7)) for empowerment zones

10 designated pursuant to section 1391(g) of the

11 Internal Revenue Code of 1986 (26 U.S.C.

12 1391(g)); and

13 ‘‘(B) are in addition to the annual report

14 and biennial audit requirements applicable to

15 States under section 2006.

16 ‘‘(2) PERFORMANCE MEASUREMENT SYSTEM.—

17 The lead implementing entity for an empowerment

18 zone shall establish a performance measurement sys19 tem acceptable to the Secretary to assist in assessing

20 the extent to which its strategic plan is being imple21 mented and funds made available under subsection

22 (a)(2)(C) are being used effectively.

23 ‘‘(3) PERFORMANCE REPORT.—Each lead im24 plementing entity shall submit to the Secretary (and

25 make available to the public upon request), at such
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1 time and in such manner as the Secretary shall pre2 scribe, a report including an assessment of the

3 progress the empowerment zone has made toward

4 implementing its strategic plan, and such other in5 formation as the Secretary shall prescribe. To the

6 extent practicable, the report shall also include infor7 mation available to the lead implementing entity

8 with respect to the use of tax incentives available to

9 empowerment zones designated pursuant to section

10 1391(g) of the Internal Revenue Code of 1986.

11 ‘‘(4) PERFORMANCE EVALUATIONS, ADJUST12 MENTS, AND RECORDKEEPING.—

13 ‘‘(A) PERFORMANCE EVALUATIONS.—The

14 Secretary shall regularly evaluate the progress

15 of the lead implementing entity for the em16 powerment zone in implementing the strategic

17 plan for the zone, on the basis of performance

18 reviews and any other information that the Sec19 retary may require.

20 ‘‘(B) ADJUSTMENTS.—On the basis of the

21 Secretary’s evaluation under subparagraph (A),

22 the Secretary may direct the Secretary of

23 Health and Human Services to adjust, reduce,

24 or cancel the grant to a State under subsection

25 (a)(2)(C) for the current or any future fiscal
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1 year or years, except that amounts already

2 properly expended by a lead implementing en3 tity on eligible activities under this Act shall

4 not be recaptured or deducted from future

5 grants to the State.

6 ‘‘(5) RETENTION OF RECORDS.—Each lead im7 plementing entity shall keep such records relating to

8 funds received from grants to the State under sub9 section (a)(2)(C), including the amounts and disposi10 tion of such funds and the types of activities funded,

11 as the Secretary determines to be necessary to en12 able the Secretary to evaluate the performance of

13 the lead implementing agency and to determine com14 pliance with the requirements of this subsection.

15 ‘‘(6) SECRETARY’S ACCESS TO DOCUMENTS.—

16 The Secretary shall have access, for the purpose of

17 evaluations and examinations pursuant to paragraph

18 (4)(A), to any books, documents, papers, and

19 records of any grantee or other entity or person that

20 are pertinent to grant amounts received in connec21 tion with this section.

22 ‘‘(7) DEFINITIONS.—For purposes of this sub23 section—

24 ‘‘(A) the term ‘lead implementing entity’

25 means the local government or governments,
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1 the governance body of an empowerment zone

2 as specified in the strategic plan, or any non3 profit entity that is principal administrator of

4 an empowerment zone; and

5 ‘‘(B) the term ‘Secretary’ means the Sec6 retary of Housing and Urban Development for

7 purposes of grants under this section with re8 spect to urban areas and means the Secretary

9 of Agriculture for purposes of grants under this

10 section with respect to rural areas, except as

11 the context otherwise indicates.’’.

12 SEC. 6. TECHNICAL AMENDMENTS.

13 Section 2007(b) of the Social Security Act is amend14 ed—

15 (1) in paragraph (2), in the matter preceding

16 subparagraph (A), by striking ‘‘to prevent’’; and

17 (2) in paragraph (4), in the matter preceding

18 subparagraph (A), by striking ‘‘maintain’’ and in19 serting ‘‘maintaining’’.

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