I
105TH CONGRESS
2D SESSION
H. R. 4666
To authorize the Secretary of Agriculture to make grants to establish 33
additional rural enterprise communities, to provide grant funding for
20 empowerment zones, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 1, 1998
Mr. HINCHEY (for himself, Mr. WATKINS, Mr. OLVER, Ms. LEE, Ms. WA-
TERS, Mr. RODRIGUEZ, Mr. BRADY of Pennsylvania, Mrs. THURMAN, and
Mr. JACKSON of Illinois) introduced the following bill; which was referred
to the Committee on Ways and Means, and in addition to the Committee
on Agriculture, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned
A BILL
To authorize the Secretary of Agriculture to make grants
to establish 33 additional rural enterprise communities,
to provide grant funding for 20 empowerment zones,
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 ‘‘Empowerment Zone
Enhancement and Rural Enterprise Communities Act of
1998’’.
SEC. 2. SELECTION OF ADDITIONAL ENTERPRISE COMMU-
NITIES.
(a) IN GENERAL.—Section 1391(g)(1) of the Internal
Revenue Code of 1986 is amended—
(1) in the first sentence by inserting before the
period at the end the following: ‘‘, and an additional
33 nominated areas as enterprise communities in
rural areas’’, and
(2) in the second sentence by striking ‘‘Of that
number’’ and inserting ‘‘Of the 20 additional em-
powerment zones created pursuant to this para-
graph’’.
(b) EXTENSION
OF APPLICATION DEADLINE
FOR
NEW RURAL ENTERPRISE COMMUNITIES.—Paragraph
(2) of section 1391(g) of such Code (relating to period
designations may be made and take effect) is amended to
read as follows:
‘‘(2) PERIOD DESIGNATIONS MAY BE MADE AND
TAKE EFFECT.—
‘‘(A) EMPOWERMENT
ZONE.—A designa-
tion of an empowerment zone may be made
under this subsection after August 5, 1997, and
before January 1, 1999.
‘‘(B) RURAL ENTERPRISE COMMUNITY.—A
designation of a rural enterprise community
may be made under this subsection after Au-
gust 5, 1997, and before January 1, 2000.’’.
(c) MODIFICATIONS TO ELIGIBILITY CRITERIA.—
(1) POVERTY
RATE.—Clause (v) of section
1391(g)(3)(A) of such Code is amended to read as
follows:
‘‘(v) SPECIAL RULE FOR RURAL EM-
POWERMENT
ZONES
AND
ENTERPRISE
COMMUNITIES.—The Secretary of Agri-
culture may designate an empowerment
zone or enterprise community in a rural
area (but not more than 1 empowerment
zone and 16 enterprise communities) with-
out regard to clause (i) if the area to be
designated satisfies 1 or more of the fol-
lowing criteria:
‘‘(I) Emigration criteria specified
by the Secretary of Agriculture.
‘‘(II) Underemployment criteria
specified by the Secretary of Agri-
culture.
‘‘(III) Is an area which the Sec-
retary of Agriculture has determined
has experienced, or may reasonably be
foreseen to experience, a special need
to meet an expected rise in unemploy-
ment, or other economic adjustment
problems, including those caused by
any action or decision of the Federal
Government.
‘‘(IV) Is an area which the Sec-
retary of Agriculture has determined
has experienced, or may reasonably be
foreseen to experience, a sudden eco-
nomic dislocation resulting in job loss
that is significant both in terms of the
number of jobs eliminated and the ef-
fect upon the employment rate of the
area.’’.
(2) SIZE
LIMITATION.—Clause (i) of section
1391(g)(3)(B) of such Code is amended to read as
follows:
‘‘(i) IN GENERAL.—
‘‘(I) DEVELOPABLE
SITES
NOT
TAKEN INTO ACCOUNT.—The parcels
described in subparagraph (A)(iii)
shall not be taken into account in de-
termining whether the requirement of
subparagraph (A) or (B) of section
1392(a)(3) is met.
‘‘(II) INAPPLICABLE TO CERTAIN
AREAS.—The Secretary of Agriculture
may designate no more than 1 em-
powerment zone and no more than 8
enterprise communities in rural areas
without regard to subparagraph (A)
or (B) of section 1392(a)(3) so long
as such zone or community (as the
case may be) meets the eligibility cri-
teria set forth in this paragraph.’’.
(d) ZONE FACILITY BONDS.—
(1) USE OF BOND PROCEEDS MUST BE CON-
SISTENT
WITH
STRATEGIC
PLAN.—Subparagraph
(C) of section 1394(f)(2) of such Code is amended
by adding at the end the following new clause:
‘‘(iii) In the case of new empowerment
zone facility bonds issued after the date of
the enactment of the Empowerment Zone
Enhancement and Rural Enterprise Com-
munities Act of 1998 (including an issue of
refunding bonds), paragraph (1) and sub-
section (a) shall not apply if the bond pro-
ceeds will be used for activities which are
inconsistent with the strategic plan for
such empowerment zone.’’.
(2) LIMITATION.—Section 1394 of such Code is
amended by adding at the end the following new
subsection:
‘‘(g) 
ENTERPRISE
COMMUNITY
BONDS
EX-
CLUDED.—For purposes of this section, the terms ‘exempt
facility bond’ and ‘new empowerment zone facility bond’
(f) shall not include any bond issued by a rural enterprise
community designated pursuant to section 1391(g)(1).’’.
(e) ZONE ACADEMY BONDS.—
(1) COMPREHENSIVE EDUCATION PLAN MUST
NOT BE INCONSISTENT WITH STRATEGIC PLAN.—
Subparagraph (A) of section 1397E(d)(4) of such
Code is amended by striking ‘‘and’’ at the end of
clause (iii), by striking the period at the end of
clause (iv) and inserting ‘‘, and’’, and by adding at
the end the following new clause:
‘‘(v) in the case of an empowerment
zone, the comprehensive education plan of
such public school or program (as the case
may be) is not inconsistent with the strate-
gic plan for such empowerment zone.’’.
(2) ALLOCATION OF NATIONAL LIMITATION TO
RURAL
EMPOWERMENT
ZONES.—Subsection (c) of
section 1397E of such Code is amended by adding
at the end the following new paragraph:
‘‘(5) ALLOCATION
TO
RURAL
EMPOWERMENT
ZONES.—For each calendar year, not less than 25
percent of the national zone academy bond limitation
shall be allocated to empowerment zones in rural
areas.’’.
(f) ELIGIBILITY OF INSULAR AREAS.—Subsection (a)
of section 1393 of such Code is amended by adding at
the end the following new paragraph:
‘‘(10) STATE.—For the purposes of designating
rural enterprise communities after the date of the
enactment of the Empowerment Zone Enhancement
and Rural Enterprise Communities Act of 1998, the
term ‘State’ includes Puerto Rico, the Virgin Is-
lands, Guam, American Samoa, and the Common-
wealth of the Northern Mariana Islands.’’.
(g) TECHNICAL AMENDMENT.—Subparagraph (C) of
section 1391(g)(3) of such Code is amended by striking
‘‘paragraph (1)(B)’’ and inserting ‘‘paragraph (3)(B)’’.
SEC. 3. RECOGNITION AND INCENTIVES FOR WELL PER-
FORMING EMPOWERMENT ZONES AND EN-
TERPRISE COMMUNITIES.
(a) PRIORITY GIVEN TO WELL PERFORMING ENTER-
PRISE
COMMUNITIES.—Subparagraph (D) of section
1391(g)(3) of the Internal Revenue Code of 1986 (relating
to modifications to eligibility criteria, etc.) is amended to
read as follows:
‘‘(D) PREVIOUSLY
DESIGNATED
ENTER-
PRISE COMMUNITIES MAY BE INCLUDED.—
‘‘(i) IN GENERAL.—Subsection (e)(5)
shall not apply to any enterprise commu-
nity designated under subsection (a) that
is also nominated for designation under
this subsection.
‘‘(ii) PRIORITY.—In ranking nomina-
tions for designation as an empowerment
zone under paragraph (1), the appropriate
Secretary shall give additional points in
the designation process for any nominated
area if such area includes a well perform-
ing enterprise community.’’.
(b) RECOGNITION
OF
WELL
PERFORMING
EM-
POWERMENT ZONES AND ENTERPRISE COMMUNITIES.—
Section 1391 of such Code (relating to designation proce-
dure) is amended by adding at the end the following new
subsection:
‘‘(h) RECOGNITION
OF WELL PERFORMING EM-
POWERMENT ZONES AND ENTERPRISE COMMUNITIES.—
For purposes of subsection (g)—
and Human Services may set aside up to 10 percent
of the amounts otherwise made available for urban
or rural empowerment zones after the date of enact-
ment of this Act under title XX of the Social Secu-
rity Act (42 U.S.C. 1397 et seq.) or under any other
provision of law, and such amount set aside shall be
used as provided in paragraphs (2) and (3).
(2) DISTRIBUTION OF FUNDS.—
(A) DETERMINATION
OF
SATISFACTORY
PROGRESS TOWARD IMPLEMENTATION OF STRA-
TEGIC PLAN.—If the Secretary of Housing and
Urban Development or the Secretary of Agri-
culture, as appropriate, determines that an
urban or rural empowerment zone or enterprise
community has completed or made satisfactory
progress in the implementation of its approved
strategic plan, then such Secretary may direct
the Secretary of Health and Human Services to
make funds available for such zone or commu-
nity.
(B) From amounts set aside under para-
graph (1), the Secretary of Health and Human
Services shall, at the direction of the Secretary
of Housing and Urban Development or the Sec-
retary of Agriculture under subparagraph (A),
make funds available to the State in which such
zone or community is located.
(3) USE
OF
FUNDS.—Amounts distributed
under paragraph (2) shall be used by an urban or
rural empowerment zone or enterprise community to
continue to implement its approved strategic plan.
SEC. 4. FUNDING ENTITLEMENT FOR ADDITIONAL EM-
POWERMENT ZONES AND RURAL ENTER-
PRISE COMMUNITIES.
(a) 
ENTITLEMENT.—Paragraph 
(1) 
of 
section
2007(a) 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 at the end the following new sub-
paragraph:
‘‘(C) 10 grants under this section for each qualified
empowerment zone and 2 grants for each qualified rural
enterprise community in the State designated pursuant to
section 1391(g) of such Code.’’.
(b) AMOUNT OF GRANTS.—Paragraph (2) of section
2007(a) of such Act (42 U.S.C. 1397f(a)) is amended—
(1) in the heading of subparagraph (A), by
striking ‘‘EMPOWERMENT’’ and inserting ‘‘ORIGINAL
EMPOWERMENT’’,
(2) in subparagraph (A), in the matter preced-
ing clause (i), by inserting ‘‘described in paragraph
(1)(A)’’ after ‘‘empowerment zone’’,
(3) by redesignating subparagraph (C) as sub-
paragraph (D), and
(4) by inserting after subparagraph (B) the fol-
lowing new subparagraph:
‘‘(C) 
ADDITIONAL
EMPOWERMENT
GRANTS.—The amount of each grant to a State
made under this section for a qualified em-
powerment zone or rural enterprise community
described in paragraph (1)(C) shall—
‘‘(i) not exceed $10,000,000 if the
area is designated as an urban empower-
ment zone,
‘‘(ii) not exceed $2,000,000 if the
area is designated as a rural empowerment
zone, or
‘‘(iii) be $1,500,000 if the area is des-
ignated as a rural enterprise community,
multiplied by the proportion of the population
of the zone that resides in that State.’’.
(c) TIMING OF GRANTS.—Paragraph (3) of section
2007(a) of such Act (42 U.S.C. 1397f(a)) is amended—
(1) in the heading of subparagraph (A) by
striking ‘‘QUALIFIED’’ and inserting ‘‘ORIGINAL
QUALIFIED’’,
(2) in subparagraph (A), in the matter preced-
ing clause (i), by inserting ‘‘described in paragraph
(1)(A)’’ after ‘‘empowerment zone’’, and
(3) by adding at the end the following new sub-
paragraphs:
‘‘(C) ADDITIONAL
QUALIFIED
EMPOWER-
MENT 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 (or, if applicable, to the govern-
ing body of the Indian tribe or tribal orga-
nization of the area) in which the em-
powerment 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 (or, if applicable, to the govern-
ing body of the Indian tribe or tribal orga-
nization of the area), on the first day of
each of the nine fiscal years that begin
after the date of the designation.
‘‘(D) ADDITIONAL QUALIFIED ENTERPRISE
COMMUNITIES.—With respect to each qualified
enterprise community described in paragraph
(1)(C), the Secretary shall make—
‘‘(i) 1 grant under this subsection to
the State (or, if applicable, to the govern-
ing body of the Indian tribe or tribal orga-
nization of the area) in which the rural en-
terprise community lies, on the date of the
designation of the zone under such part I;
and
‘‘(ii) 1 grant under this subsection to
such State (or, if applicable, to the govern-
ing body of the Indian tribe or tribal orga-
nization of the area), on the first day of
the fiscal year that begins one year after
the date of the designation.’’.
(d) FUNDING.—Paragraph (4) of section 2007(a) of
such Act (42 U.S.C. 1397f(a)) is amended—
(1) by redesignating the matter following the
caption as subparagraph (A), by indenting such
matter, and by moving such matter 2 ems to the
right,
(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 subpara-
graphs (A) and (B) of paragraph (1)’’, and
(4) by adding at the end the following new sub-
paragraph:
‘‘(B) 
ADDITIONAL
GRANTS.—
$1,700,000,000 shall be made available to the
Secretary for grants under this section for em-
powerment zones and enterprise communities
described in subparagraphs (C) and (D) of
paragraph (1).’’.
(e) COMMUNITY PLANNING GRANTS.—
(1) IN GENERAL.—From amounts made avail-
able to carry out section 2007 of the Social Security
Act, the Secretary may make grants to assist rural
communities in participating in the application proc-
ess under section 1391 of the Internal Revenue Code
of 1986 for designation as a rural empowerment
zone or enterprise community, as the case may be.
(2) LIMITATIONS.—
(A) No grant under paragraph (1) may ex-
ceed $10,000.
(B) The Secretary may not make more
than 1 grant under this subsection to a commu-
nity.
(C) The Secretary may not make more
than 100 grants under this subsection.
(3) DEFINITIONS.—For purposes of this sub-
section—
(A) COMMUNITY.—The term ‘‘community’’
includes a regional development organization.
(B) REGIONAL DEVELOPMENT ORGANIZA-
TION.—The term ‘‘regional development organi-
zation’’ means any organization recognized or
designated by the appropriate official or agency
of a State government as a regional or substate
multijurisdictional planning or development
agency.
(f) REPEAL OF RESTRICTION ON EXPENSING IN DE-
VELOPABLE SITES.—Section 1397A of the Internal Reve-
nue Code of 1986 (relating to increase in expensing under
section 179) is amended by striking subsection (c).
SEC. 5. RESPONSIBILITY FOR ENVIRONMENTAL REVIEW.
Section 2007 of the Social Security Act (42 U.S.C.
1397f) is amended by redesignating subsection (f) as sub-
section (g) and by inserting after subsection (e) the follow-
ing 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 con-
nection with empowerment zones and enterprise
communities designated under section 1391(a)
of the Internal Revenue Code of 1986 and em-
powerment zones and rural enterprise commu-
nities designated under section 1391(g) of such
Code—
‘‘(i) by the Secretary of Housing and
Urban Development in the case of those lo-
cated 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 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 which 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 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 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 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 environ-
ment, the Secretary may, under such regula-
tions, in lieu of the environmental protection
procedures otherwise applicable, provide for the
release of funds for particular projects to recipi-
ents of assistance under this section if the
State, unit of general local government, or In-
dian tribe, as designated by the Secretary in ac-
cordance with regulations issued by the Sec-
retary 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 Sec-
retary to undertake such projects as Federal
projects.
‘‘(B) IMPLEMENTATION.—The Secretary of
Housing and Urban Development and the Sec-
retary of Agriculture shall each issue regula-
tions to carry out this subsection only after con-
sultation with the Council on Environmental
Quality. Such regulations shall—
‘‘(i) specify any other provisions of
law which further the purposes of the Na-
tional Environmental Policy Act of 1969
and to which the assumption of respon-
sibility 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 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 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 which 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 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 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
provision 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).’’.
SEC. 6. PERFORMANCE MEASUREMENT AND EVALUATION.
Section 2007 of the Social Security Act (42 U.S.C.
1397f), as amended by section 5, is further amended by
redesignating subsection (g) as subsection (h) and by in-
serting after subsection (f) the following new subsection:
‘‘(g) PERFORMANCE MEASUREMENT SYSTEM, RE-
PORTS, 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 de-
fined in paragraph (7)) for empowerment zones
and rural enterprise communities 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 or enterprise community shall establish a per-
formance measurement system as prescribed by 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 im-
plementing 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 pre-
scribe, a report including an assessment of the
progress the empowerment zone or enterprise com-
munity 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 des-
ignated pursuant to section 1391(g) of the Internal
Revenue Code of 1986.
‘‘(4) PERFORMANCE
EVALUATIONS, ADJUST-
MENTS, AND RECORDKEEPING.—
‘‘(A) PERFORMANCE
EVALUATIONS.—The
Secretary shall regularly evaluate the progress
of the lead implementing entity for the em-
powerment zone or enterprise community in im-
plementing the strategic plan for the zone or
community, 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 en-
tity on eligible activities under this Act shall
not be recaptured or deducted from future
grants to the State.
‘‘(5) RETENTION OF RECORDS.—Each lead im-
plementing entity shall keep such records relating to
funds received from grants to the State under sub-
section (a)(2)(C), including the amounts and disposi-
tion of such funds and the types of activities funded,
as the Secretary determines to be necessary to en-
able the Secretary to evaluate the performance of
the lead implementing agency and to determine com-
pliance 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 connec-
tion with this section.
‘‘(7) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) The term ‘lead implementing entity’
means the local government or governments,
the governance body of an empowerment zone
or enterprise community as specified in the
strategic plan, or any non-profit entity that is
principal administrator of an empowerment
zone or enterprise community.
‘‘(B) The term ‘Secretary’ means the Sec-
retary of Housing and Urban Development for
purposes of grants under this section with re-
spect 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. 7. CONVEYANCE OF EXCESS AGRICULTURAL DEPART-
MENT PROPERTY.
(a) CONVEYANCE
OF EXCESS AGRICULTURE DE-
PARTMENT
PROPERTY
TO
SUPPORT
EMPOWERMENT
ZONES AND ENTERPRISE COMMUNITIES.—Section 923 of
the Federal Agricultural Improvement and Reform Act of
1996 (7 U.S.C. 2206a) is amended—
(1) by striking ‘‘Notwithstanding’’ and insert-
ing ‘‘(a) IN GENERAL.—Notwithstanding’’,
(2) in paragraph (1) of subsection (a) (as des-
ignated by paragraph (1) of this subsection)—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (B), and
(B) by inserting after subparagraph (C)
the following new subparagraph:
‘‘(D) persons, including Federal, State, or
local government agencies, for activities consist-
ent with the strategic plan for an empowerment
zone, enterprise community, or champion com-
munity located in a rural area; and’’, and
(3) by adding at the end the following new sub-
section:
‘‘(b) DEFINITION.—For the purpose of this section,
the term ‘champion community’ means an applicant for
designation as a rural empowerment zone or enterprise
community whose strategic plan meets criteria specified
by the Secretary of Agriculture.’’.
SEC. 8. EFFECTIVE DATES.
(a) IN GENERAL.—Except as otherwise provided in
this section, the amendments made by this Act shall take
effect as if included in the amendments made by section
952 of the Taxpayer Relief Act of 1997.
(b) ZONE
ACADEMY
BOND
ALLOCATION.—The
amendments made by section 2(e) shall apply to calendar
years after 1998.
(c) EMPOWERMENT ZONE GRANTS; ENVIRONMENTAL
RESPONSIBILITY AND PROPERTY CONVEYANCE.—Section
4 (other than subsection (f)), 5, 6, and 7 and the amend-
ments made by such sections shall take effect on the date
of the enactment of this Act.
(d) RESTRICTION ON EXPENSING IN DEVELOPABLE
SITES.—The amendment made by section 4(f) shall apply
to property placed in service on or after the date of the
enactment of this Act.
Æ