text: 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''.
target: 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.
feat_title: Empowerment Zone Enhancement Act of 1998