I
106TH CONGRESS
1ST SESSION
H. R. 2463
To amend section 2007 of the Social Security Act to provide grant funding
for additional Empowerment Zones, Enterprise Communities, and Stra-
tegic Planning Communities, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 1, 1999
Mr. WATKINS (for himself and Mr. HINCHEY) introduced the following bill;
which was referred to the Committee on Ways and Means
A BILL
To amend section 2007 of the Social Security Act to provide
grant funding for additional Empowerment Zones, Enter-
prise Communities, and Strategic Planning Communities,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘EC/EZ Economic De-
velopment Act’’.
SEC. 2. FUNDING ENTITLEMENT FOR ADDITIONAL EM-
POWERMENT ZONES AND ENTERPRISE COM-
MUNITIES, AND FOR STRATEGIC PLANNING
COMMUNITIES.
(a) ENTITLEMENT.—Section 2007(a)(1) of the Social
Security Act (42 U.S.C. 1397f(a)(1)) is amended—
(1) in subparagraph (A), by striking ‘‘in the
State; and’’ and inserting ‘‘that is in the State and
is designated pursuant to section 1391(b) of the In-
ternal Revenue Code of 1986;’’;
(2) by adding after subparagraph (B) the fol-
lowing:
‘‘(C)(i) 9 grants under this section for
each qualified empowerment zone that is in an
urban area in the State and is designated pur-
suant to section 1391(g) of such Code; and
‘‘(ii) 9 grants under this section for each
qualified empowerment zone that is in a rural
area in the State and is designated pursuant to
section 1391(g) of such Code;
‘‘(D) 9 grants under this section for each
qualified enterprise community that is in the
State and is designated pursuant to section 766
of the Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies
Appropriations Act, 1999; and
‘‘(E) 1 grant under this section for each
strategic planning community.’’.
(b) AMOUNT
OF GRANTS.—Section 2007(a)(2) of
such Act (42 U.S.C. 1397f(a)(2)) is amended—
(1) in the heading of subparagraph (A), by in-
serting ‘‘ORIGINAL’’ before ‘‘EMPOWERMENT’’;
(2) in subparagraph (A), in the matter pre-
ceding clause (i), by inserting ‘‘referred to in para-
graph (1)(A)’’ after ‘‘empowerment zone’’;
(3) by redesignating subparagraph (C) as sub-
paragraph (F); and
(4) by inserting after subparagraph (B) the fol-
lowing:
‘‘(C) 
ADDITIONAL
EMPOWERMENT
GRANTS.—The amount of the grant to a State
under this section for a qualified empowerment
zone referred to in paragraph (1)(C) shall be—
‘‘(i) if the zone is in an urban area,
$5,600,000 
for 
fiscal 
year 
2000,
$7,800,000 for each of fiscal years 2001
through 2004, and $9,700,000 for each of
fiscal years 2005 through 2008; or
‘‘(ii) if the zone is in a rural area,
$8,860,000 for each of fiscal years 2000
through 2004, and $11,075,000 for each
of fiscal years 2005 through 2008,
multiplied by the proportion of the population
of the zone that resides in the State.
‘‘(D) ADDITIONAL
ENTERPRISE
COMMU-
NITY GRANTS.—The amount of the grant to a
State under this section for a qualified enter-
prise community referred to in paragraph
(1)(D) shall be $6,600,000, multiplied by the
proportion of the population of the community
that resides in the State.
‘‘(E) STRATEGIC
PLANNING
COMMUNITY
GRANTS.—The amount of the grant to a State
under this section for a strategic planning com-
munity shall be $2,300,000, multiplied by the
proportion of the population of the community
that resides in the State.’’.
(c) TIMING OF GRANTS.—Section 2007(a)(3) of such
Act (42 U.S.C. 1397f(a)(3)) is amended—
(1) in the heading of subparagraph (A), by in-
serting ‘‘ORIGINAL’’ before ‘‘QUALIFIED’’;
(2) in subparagraph (A), in the matter pre-
ceding clause (i), by inserting ‘‘referred to in para-
graph (1)(A)’’ after ‘‘empowerment zone’’; and
(3) by adding after subparagraph (B) the fol-
lowing:
‘‘(C) ADDITIONAL
QUALIFIED
EMPOWER-
MENT ZONES.—With respect to each qualified
empowerment zone referred to in paragraph
(1)(C), the Secretary shall make 1 grant under
this section to the State in which the zone lies,
on the first day of fiscal year 2000 and of each
of the 8 succeeding fiscal years.
‘‘(D) ADDITIONAL QUALIFIED ENTERPRISE
COMMUNITIES.—With respect to each qualified
enterprise community referred to in paragraph
(1)(D), the Secretary shall make 1 grant under
this section to the State in which the commu-
nity is located on October 1, 1999.
‘‘(E) 
STRATEGIC
PLANNING
COMMU-
NITIES.—With respect to each strategic plan-
ning community, the Secretary shall make 1
grant under this section to the State in which
the community is located, on October 1, 1999.’’.
(d) FUNDING.—Section 2007(a)(4) of such Act (42
U.S.C. 1397f(a)(4)) is amended—
(1) by striking ‘‘(4) FUNDING.—$1,000,000’’
and inserting the following:
‘‘(4) FUNDING.—
‘‘(A) ORIGINAL GRANTS.—$1,000,000’’;
(2) by inserting ‘‘for empowerment zones and
enterprise communities described in subparagraphs
(A) and (B) of paragraph (1)’’ before the period;
and
(3) by adding after and below the end the fol-
lowing:
‘‘(B) ADDITIONAL
EMPOWERMENT
ZONE
GRANTS.—$1,577,000,000 shall be made avail-
able to the Secretary for grants under this sec-
tion for empowerment zones referred to in para-
graph (1)(C).
‘‘(C) ADDITIONAL
ENTERPRISE
COMMU-
NITY
GRANTS.—$132,000,000 shall be made
available to the Secretary for grants under this
section for enterprise communities referred to
in paragraph (1)(D).
‘‘(D) STRATEGIC
PLANNING
COMMUNITY
GRANTS.—$35,000,000 shall be made available
to the Secretary for grants under this section
for strategic planning communities.’’.
(e) DIRECT FUNDING FOR INDIAN TRIBES.—Section
2007(a) of such Act (42 U.S.C. 1397f(a)) is amended by
adding at the end the following:
‘‘(5) DIRECT FUNDING FOR INDIAN TRIBES.—
‘‘(A) IN
GENERAL.—The Secretary may
make a grant under this section directly to the
governing body of an Indian tribe if—
‘‘(i) the tribe is identified in the stra-
tegic plan of a qualified empowerment zone
or qualified enterprise community as the
entity that assumes sole or primary re-
sponsibility for carrying out activities and
projects under the grant; and
‘‘(ii) the grant is to be used for activi-
ties and projects that are—
‘‘(I) included in the strategic
plan of the qualified empowerment
zone or qualified enterprise commu-
nity, consistent with this section; and
‘‘(II) approved by the Secretary
of Agriculture, in the case of a quali-
fied empowerment zone or qualified
enterprise community in a rural area,
or the Secretary of Housing and
Urban Development, in the case of a
qualified empowerment zone or quali-
fied enterprise community in an urban
area.
‘‘(B) RULES OF INTERPRETATION.—
‘‘(i) If grant under this section is
made directly to the governing body of an
Indian tribe under subparagraph (A), the
tribe shall be considered a State for pur-
poses of this section.
‘‘(ii) This subparagraph shall not be
construed as making applicable to this sec-
tion the provisions of the Indian Self-De-
termination 
and 
Education 
Assistance
Act.’’.
(f) DEFINITIONS.—
(1) QUALIFIED ENTERPRISE COMMUNITY.—Sec-
tion 
2007(f)(2)(A) 
of 
such 
Act 
(42 
U.S.C.
1397f(f)(2)(A)) is amended by inserting ‘‘or pursu-
ant to section 766 of the Agriculture, Rural Devel-
opment, Food and Drug Administration, and Re-
lated Agencies Appropriations Act, 1999’’ before the
semicolon.
(2) STRATEGIC
PLAN.—Section 2007(f)(3) of
such Act (42 U.S.C. 1397f(f)(3)) is amended by in-
serting ‘‘or under section 766 of the Agriculture,
Rural Development, Food and Drug Administration,
and Related Agencies Appropriations Act, 1999’’ be-
fore the period.
(3) STRATEGIC
PLANNING
COMMUNITY.—Sec-
tion 2007(f) of such Act (42 U.S.C. 1397f(f)) is
amended by adding at the end the following:
‘‘(7) STRATEGIC PLANNING COMMUNITY.—The
term ‘strategic planning community’ means a re-
spondent to the Notice Inviting Applications at 63
Federal Register 19162 (April 16, 1998) whose ap-
plication was ranked 16th through 30th in the com-
petition that concluded in December 1998.’’.
(4) INDIAN
TRIBE.—Section 2007(f) of such
Act (42 U.S.C. 1397f(f)), as amended by paragraph
(3) of this subsection, is amended by adding at the
end the following:
‘‘(8) INDIAN TRIBE.—The term ‘Indian tribe’
means any Indian tribe, band, nation, or other orga-
nized group or community, including any Alaska Na-
tive village or regional or village corporation as de-
fined in or established pursuant to the Alaska Na-
tive Claims Settlement Act, which is recognized as
eligible for the special programs and services pro-
vided by the United States to Indians because of
their status as Indians.’’.
SEC. 3. USE OF GRANT FUNDS.
(a) REVOLVING LOAN ACTIVITIES.—Section 2007(b)
of the Social Security Act (42 U.S.C. 1397f(b)) is amend-
ed by adding at the end the following:
‘‘(5) REVOLVING LOAN ACTIVITIES.—
‘‘(A) IN GENERAL.—In order to assist dis-
advantaged adults and youths in achieving and
maintaining economic self-support, a State may
use amounts paid under this section to fund re-
volving loan funds or similar arrangements for
the purpose of making loans to residents, insti-
tutions, organizations, or businesses that hire
disadvantaged adults and youths.
‘‘(B) 
RULES
FOR
DISBURSEMENT.—
Amounts to be used as described in subpara-
graph (A) shall be disbursed by the Secretary,
consistent with the provisions of the Cash Man-
agement Improvement Act and its implementing
rules, regulations, and procedures issued by the
Secretary of the Treasury—
‘‘(i) in the case of a grant to a revolv-
ing loan fund—
‘‘(I) pursuant to a written irrev-
ocable grant commitment; and
‘‘(II) at such time or times as the
Secretary determines that the funds
are needed to meet the purposes of
such commitment; or
‘‘(ii) in the case of a grant for pur-
poses of capitalizing an insured depository
institution (as defined in section 3 of the
Federal Deposit Insurance Act (12 U.S.C.
1813)) or an insured credit union (as de-
fined in section 101 of the Federal Credit
Union Act (12 U.S.C. 1742)), at such time
or times as the Secretary determines that
funds are needed for such capitalization.’’.
(b) USE AS NON-FEDERAL SHARE.—Section 2007(b)
of such Act (42 U.S.C. 1397f(b)), as amended by sub-
section (a) of this section, is amended by adding at the
end the following:
‘‘(6) A State may use amounts received from a
grant under this section to pay all or part of the
non-Federal share of expenditures under any other
Federal grant to a local public or nonprofit private
agency or organization for activities consistent with
the purposes of this section, unless the statutory au-
thority for such other grant expressly prohibits
counting of Federal grant funds as such non-Federal
share.’’.
SEC. 4. ENVIRONMENTAL REVIEW.
Section 2007 of the Social Security Act (42 U.S.C.
1397f) is amended—
(1) by redesignating subsection (f) as sub-
section (g); and
(2) by inserting after subsection (e) the fol-
lowing:
‘‘(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 con-
nection with empowerment zones, enterprise
communities, and strategic planning commu-
nities (as defined in subsection (g)).
‘‘(B) EXECUTION
OF
RESPONSIBILITY.—
With respect to grants described in subpara-
graph (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 that further
the purposes of such Act (as specified in regula-
tions issued by each such Secretary under para-
graph (2)(B)) that would otherwise apply to the
Secretary of Health and Human Services, and
may provide for the assumption of such respon-
sibilities in accordance with paragraphs (2)
through (5).
‘‘(C) DEFINITION OF SECRETARY.—Except
as otherwise specified, in this subsection, the
term ‘Secretary’ means the Secretary of Hous-
ing and Urban Development for purposes of
grants under this section with respect to quali-
fied empowerment zones and qualified enter-
prise communities in urban areas, and strategic
planning areas, and the Secretary of Agri-
culture for purposes of grants under this sec-
tion with respect to qualified empowerment
zones and qualified enterprise communities in
rural areas.
‘‘(2) ASSUMPTION
OF
RESPONSIBILITY
BY
STATES, UNITS OF GENERAL LOCAL GOVERNMENT,
AND INDIAN TRIBES.—
‘‘(A) RELEASE OF FUNDS.—In order to as-
sure that the policies of the National Environ-
mental 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 subparagraph (B)) are most effectively
‘‘(i) specify any other provisions of
law that further the purposes of the Na-
tional Environmental Policy Act of 1969
and to which the assumption of responsi-
bility as provided in this subsection ap-
plies;
‘‘(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
described in subparagraph (A);
‘‘(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 termi-
nation 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 subpara-
graph (B) shall not be construed to limit any
responsibility assumed by a State, unit of gen-
eral local government, or Indian tribe with re-
spect to any particular release of funds under
subparagraph (A).
‘‘(3) PROCEDURE.—The Secretary shall ap-
prove 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 that meets the require-
ments of paragraph (4). The approval by the Sec-
retary 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 releases of funds
for projects to be carried out pursuant thereto that
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 Sec-
retary;
‘‘(B) be executed by the chief executive of-
ficer or other officer of the State, unit of gen-
eral 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 responsibil-
ities 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
provisions of law apply pursuant to para-
graph (2); and
‘‘(ii) is authorized and consents on be-
half of the State, unit of general local gov-
ernment, or Indian tribe and himself or
herself to accept the jurisdiction of the
Federal courts for the purpose of enforce-
ment of the responsibilities as such an offi-
cial.
‘‘(5) APPROVAL BY STATES.—In cases in which
a unit of general local government carries out the re-
sponsibilities described in paragraph (2), the Sec-
retary may permit the State to perform those ac-
tions of the Secretary described in paragraph (3).
The performance of such actions by the State, where
permitted, shall be deemed to satisfy the responsibil-
ities referred to in the second sentence of paragraph
(3).’’.
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