[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4071 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4071

 To authorize the Secretary of Agriculture to make grants to establish 
  33 additional rural enterprise communities, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 17, 1998

Mr. Hinchey (for himself, Mr. Watkins, Mr. Costello, Mr. Gutierrez, Mr. 
Wise, Ms. Furse, Mr. Frost, Mr. Schumer, Mr. Faleomavaega, Mr. Jackson 
   of Illinois, Mr. Boucher, Mr. Baldacci, Mr. Sanders, Mr. Farr of 
 California, Mr. Allen, Mr. Rahall, Mr. Thompson, Ms. Christian-Green, 
  Ms. Woolsey, Mr. Pastor, Mr. Mascara, Mr. Minge, Mrs. Thurman, Mr. 
   Towns, Mr. Peterson of Pennsylvania, Mr. Mollohan, and Mr. Romero-
   Barcelo) 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 Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To authorize the Secretary of Agriculture to make grants to establish 
  33 additional rural enterprise communities, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Enterprise Communities Act of 
1998''.

SEC. 2. SELECTION OF ADDITIONAL ENTERPRISE COMMUNITIES.

    (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 empowerment zones created 
        pursuant to this paragraph''.
    (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 designation 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 August 5, 1997, and before January 1, 
                2000.''.
    (c) Noncontiguous Parcels.--Clause (ii) of section 1391(g)(3)(B) of 
such Code is amended--
            (1) by striking ``Special rule for rural areas.--If'' and 
        inserting ``Special rules for rural areas.--
                                    ``(I) Large areas.--If'', and
            (2) by adding at the end the following new subclause:
                                    ``(II) Exception to contiguous 
                                rule.--Notwithstanding section 
                                1392(a)(3)(B), the Secretary of 
                                Agriculture may designate noncontiguous 
                                parcels as an empowerment zone or 
                                enterprise community under this 
                                subsection, if the Secretary determines 
                                that such parcels, taken together, have 
                                the characteristics of, or potential 
                                for developing, a cohesive regional 
                                community identity.''.
    (d) 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 empowerment 
                        zones and enterprise communities.--The 
                        Secretary of Agriculture may designate an 
                        empowerment zone or enterprise community in a 
                        rural area (but not more than 1 empowerment 
                        zone and 16 enterprise communities) without 
                        regard to clause (i) if the area to be 
                        designated satisfies 1 or more of the following 
                        criteria:
                                    ``(I) Emigration criteria specified 
                                by the Secretary of Agriculture.
                                    ``(II) Underemployment criteria 
                                specified by the Secretary of 
                                Agriculture.
                                    ``(III) Is an area which the 
                                Secretary of Agriculture has determined 
                                has experienced, or may reasonably be 
                                foreseen to be about to experience, a 
                                special need to meet an expected rise 
                                in unemployment, or other economic 
                                adjustment problems, including those 
                                caused by any action or decision of the 
                                Federal Government.
                                    ``(IV) Is an area which the 
                                Secretary of Agriculture has determined 
                                is about to experience or has 
                                experienced a sudden economic 
                                dislocation resulting in job loss that 
                                is significant both in terms of the 
                                number of jobs eliminated and the 
                                effect 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 determining 
                                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 
                                empowerment 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 criteria set 
                                forth in this paragraph.''.
    (e) Use of Bond Proceeds Must Be Consistent 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 in an empowerment zone in a 
                        rural area issued after the date of the 
                        enactment of the Rural Enterprise Communities 
                        Act of 1998 (including an issue of refunding 
                        bonds), paragraph (1) and subsection (a) shall 
                        not apply if the bond proceeds will be used for 
                        activities which are consistent with the 
                        strategic plan for such empowerment zone.''.
    (f) Zone Academy Bonds.--
            (1) Comprehensive education plan must be consistent 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 
                        located in a rural area, the comprehensive 
                        education plan of such public school or program 
                        (as the case may be) is consistent with the 
                        strategic 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.''.
    (g) 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 empowerment 
        zones in rural areas after the date of the enactment of the 
        Rural Enterprise Communities Act of 1998, the term `State' 
        includes Puerto Rico, the Virgin Islands, Guam, American Samoa, 
        and the Commonwealth of the Northern Mariana Islands.''.
    (h) 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 TOP PERFORMING EMPOWERMENT ZONES 
              AND ENTERPRISE COMMUNITIES.

    (a) Priority Given to Top Performing Enterprise 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 enterprise communities 
                may be included.--
                            ``(i) In general.--Subsection (e)(5) shall 
                        not apply to any enterprise community 
                        designated under subsection (a) that is also 
                        nominated for designation under this 
                        subsection.
                            ``(ii) Priority.--In designating 
                        empowerment zones under paragraph (1), the 
                        appropriate Secretary shall give priority to 
                        top performing enterprise communities.''.
    (b) Recognition of Top Performing Empowerment Zones and Enterprise 
Communities.--Section 1391 of such Code (relating to designation 
procedure) is amended by adding at the end the following new 
subsection:
    ``(h) Recognition of Top Performing Empowerment Zones and 
Enterprise Communities.--For purposes of subsection (g)--
            ``(1) In general.--The appropriate Secretary shall 
        recognize annually the top performing empowerment zones and 
        enterprise communities.
            ``(2) Top performing empowerment zone and enterprise 
        community.--The terms `top performing empowerment zone' and 
        `top performing enterprise community' mean an empowerment zone 
        or an enterprise community, as the case may be, that, as of the 
        end of the applicable period of evaluation, has completed or 
        made substantial progress toward the achievement of the 
        benchmarks specified in the application for designation as an 
        empowerment zone or enterprise community under this section, as 
        determined by the appropriate Secretary.''.

SEC. 4. FUNDING ENTITLEMENT FOR ADDITIONAL RURAL EMPOWERMENT ZONES AND 
              RURAL ENTERPRISE 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 subparagraph:
    ``(C) 10 grants under this section for each qualified rural 
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 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 made under this section for a 
                qualified rural empowerment zone or rural enterprise 
                community described in paragraph (1)(C) shall be--
                            ``(i) $2,000,000 if the area is designated 
                        as a rural empowerment zone, or
                            ``(ii) $1,500,000 if the area is designated 
                        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 preceding clause 
        (i), by inserting ``described in paragraph (1)(A)'' after 
        ``empowerment zone'', and
            (3) by adding at the end the following new subparagraphs:
                    ``(C) Additional qualified empowerment zones.--With 
                respect to each qualified empowerment zone described in 
                paragraph (1)(C), the Secretary of Agriculture shall 
                make--
                            ``(i) 1 grant under this subsection to the 
                        State in which the rural empowerment 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) Additional qualified enterprise 
                communities.--With respect to each qualified enterprise 
                community described in paragraph (1)(C), the Secretary 
                of Agriculture shall make--
                            ``(i) 1 grant under this subsection to the 
                        State in which the rural enterprise 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, 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 subparagraphs (A) and (B) of paragraph 
        (1)'', and
            (4) by adding at the end the following new subparagraph:
                    ``(B) Additional grants.--$200,000,000 shall be 
                made available to the Secretary of Agriculture for 
                grants under this section for empowerment zones and 
                enterprise communities described in paragraph 
                (1)(C).''.
    (e) Community Planning Grants.--
            (1) In general.--From amounts made available to carry out 
        section 2007 of the Social Security Act, the Secretary of 
        Agriculture may make grants to assist communities in 
        participating in the application process under section 1391 of 
        the Internal Revenue Code of 1986 for designation as an 
        empowerment zone or enterprise community, as the case may be.
            (2) Limitations.--
                    (A) No grant under paragraph (1) may exceed 
                $10,000.
                    (B) The Secretary may not make more than 1 grant 
                under this subsection to a community.
                    (C) The Secretary may not make more than 100 grants 
                under this subsection.
            (3) Definitions.--For purposes of this subsection--
                    (A) Community.--The term ``community'' includes a 
                regional development organization.
                    (B) Regional development organization.--The term 
                ``regional development organization'' means any 
                organization recognized or designated by the 
                appropriate official or agency of a State government as 
                a regional or substate multi-jurisdictional planning or 
                development agency.

SEC. 5. RESPONSIBILITIES OF THE SECRETARY OF AGRICULTURE.

    (a) Conveyance of Excess Agriculture Department 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 inserting ``(a) In 
        General.--Notwithstanding'',
            (2) in paragraph (1) of subsection (a) (as designated by 
        paragraph (1) of this subsection)--
                    (A) by striking ``and'' at the end of subparagraph 
                (B), and
                    (B) by inserting after subparagraph (C) the 
                following new subparagraph:
                    ``(D) persons, including Federal, State, or local 
                government agencies, for activities consistent with the 
                strategic plan for an empowerment zone, enterprise 
                community, or champion community located in a rural 
                area; and'', and
            (3) by adding at the end the following new subsection:
    ``(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.''.
    (b) Environmental Responsibility.--
            (1) In general.--The Secretary of Agriculture shall have 
        the responsibility for conducting environmental reviews, 
        decisionmaking, and action pursuant to the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and 
        other provisions of law as the regulations of the Secretary may 
        specify, that would apply to Federal actions undertaken with 
        respect to rural empowerment zones and enterprise communities.
            (2) Delegation.--The Secretary of Agriculture is authorized 
        to delegate the responsibilities described in paragraph (1) to 
        rural empowerment zones or enterprise community recipients who 
        assume, and are determined by the Secretary to be qualified to 
        assume, all of the responsibilities for environmental review, 
        decisionmaking, and action required.

SEC. 6. 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(f) shall apply to calendar years after 1998.
    (c) Empowerment Zone Grants; Environmental Responsibility and 
Property Conveyance.--Sections 4 and 5 and the amendments made by such 
sections shall take effect on the date of the enactment of this Act.
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