Empowerment Zone Enhancement Act of 1998

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.