[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4666 Introduced in House (IH)]







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. Waters, 
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 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, to provide grant funding 
           for 20 empowerment zones, 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 ``Empowerment Zone Enhancement and 
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) 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 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 
                                has experienced, or may reasonably be 
                                foreseen to experience, 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.''.
    (d) Zone Facility Bonds.--
            (1) 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 issued after the date of the 
                        enactment of the Empowerment Zone Enhancement 
                        and 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 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 Excluded.--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 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.''.
    (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 
        Islands, Guam, American Samoa, and the Commonwealth 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 PERFORMING EMPOWERMENT 
              ZONES AND ENTERPRISE COMMUNITIES.

    (a) Priority Given to Well 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 ranking nominations 
                        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 performing enterprise 
                        community.''.
    (b) Recognition of Well 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 Well Performing Empowerment Zones and 
Enterprise Communities.--For purposes of subsection (g)--
            ``(1) In general.--The appropriate Secretary shall--
                    ``(A) recognize annually the well performing 
                empowerment zones and enterprise communities, and
                    ``(B) disseminate the best practices of the well 
                performing empowerment zones and enterprise communities 
                to other designated empowerment zones and enterprise 
                communities.
            ``(2) Well performing empowerment zone and enterprise 
        community.--The terms `well performing empowerment zone' and 
        `well 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 in the implementation of the 
        strategic plan submitted in the application for designation as 
        an empowerment zone or enterprise community under this section, 
        as determined by the appropriate Secretary.''.
    (c) Additional Funding for Empowerment Zones and Enterprise 
Communities Demonstrating Satisfactory Performance.--
            (1) Source of funding.--Notwithstanding any other provision 
        of law, the Secretary of Health 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 
        enactment of this Act under title XX of the Social Security 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 strategic plan.--If the Secretary of 
                Housing and Urban Development or the Secretary of 
                Agriculture, 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 
                community.
                    (B) From amounts set aside under paragraph (1), the 
                Secretary of Health and Human Services shall, at the 
                direction of the Secretary of Housing and Urban 
                Development or the Secretary 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 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 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 empowerment 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 empowerment 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 
                        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 shall make--
                            ``(i) 1 grant under this subsection to the 
                        State (or, if applicable, to the governing body 
                        of the Indian tribe or tribal organization of 
                        the area) in which the 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 (or, if applicable, to the governing 
                        body of the Indian tribe or tribal organization 
                        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 governing body 
                        of the Indian tribe or tribal organization of 
                        the area) 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 (or, if applicable, to the governing 
                        body of the Indian tribe or tribal organization 
                        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 subparagraphs (A) and (B) of paragraph 
        (1)'', and
            (4) by adding at the end 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 and enterprise 
                communities described in subparagraphs (C) and (D) of 
                paragraph (1).''.
    (e) Community Planning Grants.--
            (1) In general.--From amounts made available to carry out 
        section 2007 of the Social Security Act, the Secretary may make 
        grants to assist rural communities in participating in the 
        application process 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 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 multijurisdictional planning or 
                development agency.
    (f) Repeal of Restriction on Expensing in Developable Sites.--
Section 1397A of the Internal Revenue 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 subsection (g) and 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 and rural enterprise 
                communities 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. 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 inserting 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 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 performance 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 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 or enterprise community 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 or 
                enterprise community in implementing 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 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 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 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. 7. CONVEYANCE OF EXCESS AGRICULTURAL DEPARTMENT PROPERTY.

    (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.''.

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 amendments 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.
                                 <all>