[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2463 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2463

   To amend section 2007 of the Social Security Act to provide grant 
 funding for additional Empowerment Zones, Enterprise Communities, and 
        Strategic Planning Communities, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 1, 1999

  Mr. Watkins (for himself and Mr. Hinchey) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend section 2007 of the Social Security Act to provide grant 
 funding for additional Empowerment Zones, Enterprise Communities, and 
        Strategic Planning 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 ``EC/EZ Economic Development Act''.

SEC. 2. FUNDING ENTITLEMENT FOR ADDITIONAL EMPOWERMENT ZONES AND 
              ENTERPRISE COMMUNITIES, AND FOR STRATEGIC PLANNING 
              COMMUNITIES.

    (a) Entitlement.--Section 2007(a)(1) of the Social Security Act (42 
U.S.C. 1397f(a)(1)) is amended--
            (1) in subparagraph (A), by striking ``in the State; and'' 
        and inserting ``that is in the State and is designated pursuant 
        to section 1391(b) of the Internal Revenue Code of 1986;'';
            (2) by adding after subparagraph (B) the following:
                    ``(C)(i) 9 grants under this section for each 
                qualified empowerment zone that is in an urban area in 
                the State and is designated pursuant to section 1391(g) 
                of such Code; and
                    ``(ii) 9 grants under this section for each 
                qualified empowerment zone that is in a rural area in 
                the State and is designated pursuant to section 1391(g) 
                of such Code;
                    ``(D) 9 grants under this section for each 
                qualified enterprise community that is in the State and 
                is designated pursuant to section 766 of the 
                Agriculture, Rural Development, Food and Drug 
                Administration, and Related Agencies Appropriations 
                Act, 1999; and
                    ``(E) 1 grant under this section for each strategic 
                planning community.''.
    (b) Amount of Grants.--Section 2007(a)(2) of such Act (42 U.S.C. 
1397f(a)(2)) is amended--
            (1) in the heading of subparagraph (A), by inserting 
        ``Original'' before ``Empowerment'';
            (2) in subparagraph (A), in the matter preceding clause 
        (i), by inserting ``referred to in paragraph (1)(A)'' after 
        ``empowerment zone'';
            (3) by redesignating subparagraph (C) as subparagraph (F); 
        and
            (4) by inserting after subparagraph (B) the following:
                    ``(C) Additional empowerment grants.--The amount of 
                the grant to a State under this section for a qualified 
                empowerment zone referred to in paragraph (1)(C) shall 
                be--
                            ``(i) if the zone is in an urban area, 
                        $5,600,000 for fiscal year 2000, $7,800,000 for 
                        each of fiscal years 2001 through 2004, and 
                        $9,700,000 for each of fiscal years 2005 
                        through 2008; or
                            ``(ii) if the zone is in a rural area, 
                        $8,860,000 for each of fiscal years 2000 
                        through 2004, and $11,075,000 for each of 
                        fiscal years 2005 through 2008,
                multiplied by the proportion of the population of the 
                zone that resides in the State.
                    ``(D) Additional enterprise community grants.--The 
                amount of the grant to a State under this section for a 
                qualified enterprise community referred to in paragraph 
                (1)(D) shall be $6,600,000, multiplied by the 
                proportion of the population of the community that 
                resides in the State.
                    ``(E) Strategic planning community grants.--The 
                amount of the grant to a State under this section for a 
                strategic planning community shall be $2,300,000, 
                multiplied by the proportion of the population of the 
                community that resides in the State.''.
    (c) Timing of Grants.--Section 2007(a)(3) of such Act (42 U.S.C. 
1397f(a)(3)) is amended--
            (1) in the heading of subparagraph (A), by inserting 
        ``Original'' before ``Qualified'';
            (2) in subparagraph (A), in the matter preceding clause 
        (i), by inserting ``referred to in paragraph (1)(A)'' after 
        ``empowerment zone''; and
            (3) by adding after subparagraph (B) the following:
                    ``(C) Additional qualified empowerment zones.--With 
                respect to each qualified empowerment zone referred to 
                in paragraph (1)(C), the Secretary shall make 1 grant 
                under this section to the State in which the zone lies, 
                on the first day of fiscal year 2000 and of each of the 
                8 succeeding fiscal years.
                    ``(D) Additional qualified enterprise 
                communities.--With respect to each qualified enterprise 
                community referred to in paragraph (1)(D), the 
                Secretary shall make 1 grant under this section to the 
                State in which the community is located on October 1, 
                1999.
                    ``(E) Strategic planning communities.--With respect 
                to each strategic planning community, the Secretary 
                shall make 1 grant under this section to the State in 
                which the community is located, on October 1, 1999.''.
    (d) Funding.--Section 2007(a)(4) of such Act (42 U.S.C. 
1397f(a)(4)) is amended--
            (1) by striking ``(4) Funding.--$1,000,000'' and inserting 
        the following:
            ``(4) Funding.--
                    ``(A) Original grants.--$1,000,000'';
            (2) by inserting ``for empowerment zones and enterprise 
        communities described in subparagraphs (A) and (B) of paragraph 
        (1)'' before the period; and
            (3) by adding after and below the end the following:
                    ``(B) Additional empowerment zone grants.--
                $1,577,000,000 shall be made available to the Secretary 
                for grants under this section for empowerment zones 
                referred to in paragraph (1)(C).
                    ``(C) Additional enterprise community grants.--
                $132,000,000 shall be made available to the Secretary 
                for grants under this section for enterprise 
                communities referred to in paragraph (1)(D).
                    ``(D) Strategic planning community grants.--
                $35,000,000 shall be made available to the Secretary 
                for grants under this section for strategic planning 
                communities.''.
    (e) Direct Funding for Indian Tribes.--Section 2007(a) of such Act 
(42 U.S.C. 1397f(a)) is amended by adding at the end the following:
            ``(5) Direct funding for indian tribes.--
                    ``(A) In general.--The Secretary may make a grant 
                under this section directly to the governing body of an 
                Indian tribe if--
                            ``(i) the tribe is identified in the 
                        strategic plan of a qualified empowerment zone 
                        or qualified enterprise community as the entity 
                        that assumes sole or primary responsibility for 
                        carrying out activities and projects under the 
                        grant; and
                            ``(ii) the grant is to be used for 
                        activities and projects that are--
                                    ``(I) included in the strategic 
                                plan of the qualified empowerment zone 
                                or qualified enterprise community, 
                                consistent with this section; and
                                    ``(II) approved by the Secretary of 
                                Agriculture, in the case of a qualified 
                                empowerment zone or qualified 
                                enterprise community in a rural area, 
                                or the Secretary of Housing and Urban 
                                Development, in the case of a qualified 
                                empowerment zone or qualified 
                                enterprise community in an urban area.
                    ``(B) Rules of interpretation.--
                            ``(i) If grant under this section is made 
                        directly to the governing body of an Indian 
                        tribe under subparagraph (A), the tribe shall 
                        be considered a State for purposes of this 
                        section.
                            ``(ii) This subparagraph shall not be 
                        construed as making applicable to this section 
                        the provisions of the Indian Self-Determination 
                        and Education Assistance Act.''.
    (f) Definitions.--
            (1) Qualified enterprise community.--Section 2007(f)(2)(A) 
        of such Act (42 U.S.C. 1397f(f)(2)(A)) is amended by inserting 
        ``or pursuant to section 766 of the Agriculture, Rural 
        Development, Food and Drug Administration, and Related Agencies 
        Appropriations Act, 1999'' before the semicolon.
            (2) Strategic plan.--Section 2007(f)(3) of such Act (42 
        U.S.C. 1397f(f)(3)) is amended by inserting ``or under section 
        766 of the Agriculture, Rural Development, Food and Drug 
        Administration, and Related Agencies Appropriations Act, 1999'' 
        before the period.
            (3) Strategic planning community.--Section 2007(f) of such 
        Act (42 U.S.C. 1397f(f)) is amended by adding at the end the 
        following:
            ``(7) Strategic planning community.--The term `strategic 
        planning community' means a respondent to the Notice Inviting 
        Applications at 63 Federal Register 19162 (April 16, 1998) 
        whose application was ranked 16th through 30th in the 
        competition that concluded in December 1998.''.
            (4) Indian tribe.--Section 2007(f) of such Act (42 U.S.C. 
        1397f(f)), as amended by paragraph (3) of this subsection, is 
        amended by adding at the end the following:
            ``(8) Indian tribe.--The term `Indian tribe' means any 
        Indian tribe, band, nation, or other organized group or 
        community, including any Alaska Native village or regional or 
        village corporation as defined in or established pursuant to 
        the Alaska Native Claims Settlement Act, which is recognized as 
        eligible for the special programs and services provided by the 
        United States to Indians because of their status as Indians.''.

SEC. 3. USE OF GRANT FUNDS.

    (a) Revolving Loan Activities.--Section 2007(b) of the Social 
Security Act (42 U.S.C. 1397f(b)) is amended by adding at the end the 
following:
            ``(5) Revolving loan activities.--
                    ``(A) In general.--In order to assist disadvantaged 
                adults and youths in achieving and maintaining economic 
                self-support, a State may use amounts paid under this 
                section to fund revolving loan funds or similar 
                arrangements for the purpose of making loans to 
                residents, institutions, organizations, or businesses 
                that hire disadvantaged adults and youths.
                    ``(B) Rules for disbursement.--Amounts to be used 
                as described in subparagraph (A) shall be disbursed by 
                the Secretary, consistent with the provisions of the 
                Cash Management Improvement Act and its implementing 
                rules, regulations, and procedures issued by the 
                Secretary of the Treasury--
                            ``(i) in the case of a grant to a revolving 
                        loan fund--
                                    ``(I) pursuant to a written 
                                irrevocable grant commitment; and
                                    ``(II) at such time or times as the 
                                Secretary determines that the funds are 
                                needed to meet the purposes of such 
                                commitment; or
                            ``(ii) in the case of a grant for purposes 
                        of capitalizing an insured depository 
                        institution (as defined in section 3 of the 
                        Federal Deposit Insurance Act (12 U.S.C. 1813)) 
                        or an insured credit union (as defined in 
                        section 101 of the Federal Credit Union Act (12 
                        U.S.C. 1742)), at such time or times as the 
                        Secretary determines that funds are needed for 
                        such capitalization.''.
    (b) Use as Non-Federal Share.--Section 2007(b) of such Act (42 
U.S.C. 1397f(b)), as amended by subsection (a) of this section, is 
amended by adding at the end the following:
            ``(6) A State may use amounts received from a grant under 
        this section to pay all or part of the non-Federal share of 
        expenditures under any other Federal grant to a local public or 
        nonprofit private agency or organization for activities 
        consistent with the purposes of this section, unless the 
        statutory authority for such other grant expressly prohibits 
        counting of Federal grant funds as such non-Federal share.''.

SEC. 4. ENVIRONMENTAL REVIEW.

    Section 2007 of the Social Security Act (42 U.S.C. 1397f) is 
amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following:
    ``(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, enterprise communities, and 
                strategic planning communities (as defined in 
                subsection (g)).
                    ``(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 that 
                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 otherwise 
                specified, in this subsection, the term `Secretary' 
                means the Secretary of Housing and Urban Development 
                for purposes of grants under this section with respect 
                to qualified empowerment zones and qualified enterprise 
                communities in urban areas, and strategic planning 
                areas, and the Secretary of Agriculture for purposes of 
                grants under this section with respect to qualified 
                empowerment zones and qualified enterprise communities 
                in rural areas.
            ``(2) Assumption of responsibility by states, units of 
        general local government, and indian tribes.--
                    ``(A) Release of funds.--In order to 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 subparagraph (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 subparagraph (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 
                        that 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 described in 
                        subparagraph (A);
                            ``(iii) specify the purposes for which 
                        funds may be committed without regard to the 
                        procedure established under paragraph (3);
                            ``(iv) provide for monitoring of the 
                        performance of environmental reviews under this 
                        subsection;
                             (v) in the discretion of the Secretary, 
                        provide for the provision or facilitation of 
                        training for such performance; and
                            ``(vi) subject to the discretion of the 
                        Secretary, provide for suspension or 
                        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 
        that 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 releases of funds for projects to be carried out pursuant 
        thereto that are covered by such certification.
            ``(4) Certification.--A certification under the procedures 
        authorized by this subsection shall--
                    ``(A) be in a form acceptable to the 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 provisions 
                        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).''.
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