II 

112TH CONGRESS 

1ST SESSION S. 1565 

To establish the National Competition for Community Renewal to encourage 

communities to adopt innovative strategies and design principles to programs related to poverty prevention, recovery and response, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 15, 2011 

Mr. CASEY introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To establish the National Competition for Community Renewal to encourage communities to adopt innovative 

strategies and design principles to programs related to 

poverty prevention, recovery and response, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘National Opportunity and Community Renewal Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 


tjames on DSK6SPTVN1PROD with BILLS
2 

•S 1565 IS

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Purposes. 

Sec. 4. Definitions. 

TITLE I—NATIONAL AND LOCAL OPPORTUNITY BOARDS 

Sec. 101. National Opportunity Board. 

Sec. 102. Local Opportunity Boards. 

TITLE II—NATIONAL COMPETITION FOR COMMUNITY RENEWAL 

Sec. 201. Establishment. 

Sec. 202. Duration. 

Sec. 203. Local opportunity funds. 

Sec. 204. Waiver program. 

Sec. 205. Tax incentives. 

Sec. 206. Application and administration. 

TITLE III—COMMUNITY RENEWAL INCENTIVES 

Sec. 301. Community renewal savings. 

Sec. 302. Community tax incentives. 

Sec. 303. Renewal employer refundable credit. 

Sec. 304. Unrelated business taxable income deduction. 

Sec. 305. Qualified community renewal contribution. 

Sec. 306. High school graduation tax credit. 

Sec. 307. Modified new markets tax credit. 

Sec. 308. Earned income tax credit. 

Sec. 309. Community renewal bonds. 

Sec. 310. Anticorruption provision. 

TITLE IV—COMPETITIONS FOR INNOVATION IN CLIENT 

ADVOCACY AND EVALUATION 

Sec. 401. Client advocacy competition. 

Sec. 402. Evaluation competition. 

TITLE V—REPORT TO CONGRESS 

Sec. 501. Report to Congress. 

TITLE VI—DEFICIT NEUTRAL EFFECT ON APPROPRIATIONS 

Sec. 601. Deficit neutral effect on appropriations. 

1 SEC. 2. FINDINGS. 

2 Congress makes the following findings: 

3 (1) Recent data found that 43,600,000 Ameri4 cans were living in poverty, with 15,500,000 children 

5 living in poverty. 


tjames on DSK6SPTVN1PROD with BILLS
3 

•S 1565 IS

1 (2) The 2009 Federal Poverty Level for a 

2 household of 4 was set at $22,050. 

3 (3) Poverty in America has changed remarkably 

4 since the last major transformative policy debate on 

5 the issue. 

6 (4) The 1996 welfare reform bill ultimately did 

7 not create new systems nor did it drive market-based 

8 solutions. 

9 (5) The economic downturn has exposed the 

10 weakness of poverty reduction programs that are not 

11 market-driven. 

12 (6) Effective and meaningful investment in pov13 erty prevention programs will result in greater effi14 ciencies at the Federal level. 

15 (7) Any new poverty prevention program should 

16 produce savings for taxpayers and not add to the 

17 Federal budget deficit. 

18 SEC. 3. PURPOSES. 

19 It is the purpose of this Act to— 

20 (1) establish demonstration projects to enable 

21 10 diverse communities to redesign their local serv22 ice delivery model in a way that is silo busting, in23 creases access to opportunity for those in need by 

24 building on current assets and encourages implemenVerDate Mar 15 2010 03:15 Sep 23, 2011 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1565.IS S1565

tjames on DSK6SPTVN1PROD with BILLS
4 

•S 1565 IS

1 tation of innovative poverty reduction and prevention 

2 programs; 

3 (2) enable holistic approaches that more accu4 rately and adequately meet the needs of the individ5 uals served; 

6 (3) incentivize local markets and communities 

7 to invest in local poverty prevention and alleviation 

8 efforts; 

9 (4) establish a standard framework for meas10 urement of outcomes that will allow for investment 

11 in and growth of programs that have demonstrated 

12 results; and 

13 (5) ensure taxpayer dollars are being invested 

14 in results-driven programs and policies that truly lift 

15 people out of poverty and onto a path of sustainable 

16 self-reliance. 

17 SEC. 4. DEFINITIONS. 

18 In this Act: 

19 (1) BOARD.—The term ‘‘Board’’ means the Na20 tional Opportunity Board established under section 

21 101. 

22 (2) ELIGIBLE AREA.—The term ‘‘eligible area’’ 

23 means a city, county, town, township, parish, village, 

24 or other general purpose political subdivision of a 

25 State, including the District of Columbia and insular 


tjames on DSK6SPTVN1PROD with BILLS
5 

•S 1565 IS

1 areas, that meets criteria to be established under 

2 this Act by the Board. 

3 (3) HOLISTIC.—The term ‘‘holistic’’ means en4 compassing health, education, labor, housing, justice 

5 and food. 

6 (4) HUMAN DEVELOPMENT INDEX.—The term 

7 ‘‘Human Development Index’’ means a summary 

8 composite index that measures an area’s average 

9 achievements in 3 basic aspects of human develop10 ment (health, knowledge, and a decent standard of 

11 living) and is currently calculated on a global scale 

12 by the United Nations Development Program and 

13 other organizations. 

14 (5) LOCAL GOVERNING BODY.—The term ‘‘local 

15 governing body’’ means the executive office of any 

16 city, county, town, township, parish, village, or other 

17 general purpose political subdivision of a State, in18 cluding the District of Columbia and insular areas. 

19 (6) LOCAL OPPORTUNITY PLAN.—The term 

20 ‘‘Local Opportunity Plan’’ means a detailed spend21 ing plan, to be developed by the Local Opportunity 

22 Board and submitted to the National Opportunity 

23 Board under guidelines to be established by the Na24 tional Opportunity Board. 


tjames on DSK6SPTVN1PROD with BILLS
6 

•S 1565 IS

1 (7) NATIONAL COMPETITION.—The term ‘‘Na2 tional Competition’’ means the National Competition 

3 for Community Renewal established under title II. 

4 (8) PROGRAM PERIOD.—The term ‘‘program 

5 period’’ means a period of 5 years, beginning on the 

6 date of the selection of an eligible area by the 

7 Board. 

8 (9) QUALIFIED AREA.—The term ‘‘qualified 

9 area’’ means an eligible area that has been approved 

10 under the National Competition by the Board. 

11 (10) QUALIFIED MILITARY INSTALLATION.— 

12 The term ‘‘qualified military installation’’ means any 

13 military installation or facility the number of mem14 bers of the Armed Forces of the United States as15 signed to which, as of the date of enactment of this 

16 Act, is not less than 1,000. 

17 (11) RESPONSIBLE LOCAL OFFICIAL.—The 

18 term ‘‘responsible local official’’ means the local offi19 cial appointed by the Local Opportunity Board to 

20 administer the funds in the local opportunity fund 

21 for the qualified area involved. Such official shall be 

22 so appointed if such official is responsible for admin23 istering the majority of funding under the waived 

24 programs specified under section 203(b)(2)(B) for 

25 the area involved. 


tjames on DSK6SPTVN1PROD with BILLS
7 

•S 1565 IS

1 (12) RURAL AREA.—The term ‘‘rural area’’ 

2 means an eligible area within a public use microdata 

3 area that meets the definition of ‘‘rural area’’ as de4 termined by the Census Bureau for the most recent 

5 Census for which data is available. 

6 TITLE I—NATIONAL AND LOCAL 

7 OPPORTUNITY BOARDS 

8 SEC. 101. NATIONAL OPPORTUNITY BOARD. 

9 (a) ESTABLISHMENT.—There is established a bipar10 tisan, independent entity to be known as the ‘‘National 

11 Opportunity Board’’ to develop and administer the Na12 tional Competition. 

13 (b) COMPOSITION.—The Board shall be composed of 

14 7 members, of which— 

15 (1) 1 member shall be the President’s Domestic 

16 Policy Advisor; 

17 (2) 1 member shall be appointed by the Presi18 dent in consultation with the majority and minority 

19 leaders of the House of Representatives and the 

20 Senate, who shall serve as the Chair of the Board; 

21 (3) 1 member shall be appointed by the minor22 ity leader of the Senate in consultation with the mi23 nority leader of the House of Representatives, who 

24 shall serve as the Vice-Chair of the Board; 


tjames on DSK6SPTVN1PROD with BILLS
8 

•S 1565 IS

1 (4) 1 member shall be appointed by the senior 

2 Democratic member of the Senate leadership; 

3 (5) 1 member shall be appointed by the senior 

4 Republican member of the Senate leadership; 

5 (6) 1 member shall be appointed by the senior 

6 Democratic member of the House of Representatives 

7 leadership; and 

8 (7) 1 member shall be appointed by the senior 

9 Republican member of the House of Representatives 

10 leadership. 

11 (c) APPOINTMENTS.—The members appointed to the 

12 Board under subsection (b) shall, to the extent practicable, 

13 include— 

14 (1) representatives of nonprofit organizations; 

15 (2) members of the poverty reduction advocacy 

16 community; 

17 (3) experts in the area of philanthropic giving; 

18 and 

19 (4) members with experience relative to local 

20 government administration. 

21 (d) EX OFFICIO MEMBERS.— 

22 (1) IN GENERAL.—The following individuals or 

23 their designees shall serve as ex officio members of 

24 the Board: 


tjames on DSK6SPTVN1PROD with BILLS
9 

•S 1565 IS

1 (A) The Secretary of Health and Human 

2 Services. 

3 (B) The Secretary of Commerce. 

4 (C) The Secretary of Housing and Urban 

5 Development. 

6 (D) The Secretary of Labor. 

7 (E) The Secretary of Agriculture. 

8 (F) The Secretary of Education. 

9 (G) The Attorney General. 

10 (2) LIMITATIONS.—Ex officio members of the 

11 board shall— 

12 (A) not have a vote with respect to the ac13 tivities of the Board; and 

14 (B) be required to attend all meetings of 

15 the Board. 

16 (3) DESIGNEES.—An individual who is not at 

17 least an Assistant Secretary may not be designated 

18 to serve as an ex officio member of the Board under 

19 paragraph (1). 

20 (e) DISMISSAL, QUORUM, VACANCIES.— 

21 (1) IN GENERAL.—Each member of the Board 

22 appointed under subsection (b) shall serve for a term 

23 of 6 years, except that— 

24 (A) a member of the Board may be re25 moved by a unanimous vote of all remaining 


tjames on DSK6SPTVN1PROD with BILLS
10 

•S 1565 IS

1 voting members of the Board, and only for 

2 cause; 

3 (B) if an individual is appointed to fill a 

4 vacancy occurring prior to the expiration of the 

5 term of the individual’s predecessor, that indi6 vidual shall serve only for the remainder of the 

7 predecessor’s term; and 

8 (C) any such appointment to fill a vacancy 

9 shall be made within 60 days after the vacancy 

10 occurs and shall be made in the same manner 

11 in which the original appointment was made. 

12 (2) QUORUM.—A majority of the members of 

13 the Board appointed under subsection (b) shall con14 stitute a quorum to conduct business. 

15 (3) MEETINGS.—The Board shall meet at the 

16 call of the Chair or a majority of the members ap17 pointed under subsection (b), and commence oper18 ations as soon as practicable and after its initial 

19 meeting. 

20 (f) DUTIES.— 

21 (1) GUIDELINES FOR THE NATIONAL COMPETI22 TION.—The Board shall design and establish written 

23 guidelines for establishing and implementing the Na24 tional Competition, including the following: 


tjames on DSK6SPTVN1PROD with BILLS
11 

•S 1565 IS

1 (A) Criteria for establishing eligible areas, 

2 including, to the extent practicable, the use by 

3 the Board of the Human Development Index or 

4 the Supplemental Poverty Measurement to be 

5 established by the Census Bureau as a criteria 

6 for determining eligible areas. 

7 (B) Application requirements to enable eli8 gible areas to apply for assistance under the 

9 National Competition, including the design and 

10 content of the Local Opportunity Plan, as de11 scribed in section 102(d)(1). 

12 (C) Criteria for evaluating applications 

13 submitted under the National Competition. 

14 (D) Eligible program development costs. 

15 (E) Criteria for accountability measures 

16 for eligible areas selected to participate in the 

17 National Competition. 

18 (F) Reporting requirements for eligible 

19 areas selected to participate in the National 

20 Competition. 

21 (2) RULEMAKING.—The Board shall have the 

22 authority to promulgate regulations for establish23 ment and administration of the National Competi24 tion. 


tjames on DSK6SPTVN1PROD with BILLS
12 

•S 1565 IS

1 (3) ADMINISTRATION OF NATIONAL COMPETI2 TION.—The Board shall administer the National 

3 Competition, including— 

4 (A) awarding assistance, waivers and tax 

5 incentives to eligible areas based on developed 

6 criteria; and 

7 (B) evaluating the performance of partici8 pating eligible areas in accordance with this 

9 section. 

10 (4) EVALUATIONS.— 

11 (A) IN GENERAL.—Not later than 3 years 

12 after the date of enactment of this Act, and an13 nually thereafter, the Local Opportunity Board 

14 shall submit to the National Opportunity Board 

15 a comprehensive report on the implementation 

16 of a spending plan as described in section 

17 102(d)(1)(A). 

18 (B) CANCELLATION OF NATIONAL

19 AWARD.—Based on information received in the 

20 report under subparagraph (A), the National 

21 Opportunity Board may revoke qualified area 

22 status and access to assistance, waiver, and tax 

23 incentives provided under title II and title III if 

24 the Board determines that— 


tjames on DSK6SPTVN1PROD with BILLS
13 

•S 1565 IS

1 (i) the Local Opportunity Board of 

2 the qualified area fails to provide the infor3 mation required under subparagraph (A), 

4 or the information provided by the chief 

5 elected official is inadequate; 

6 (ii) the Local Opportunity Board of 

7 the qualified area failed to comply with the 

8 provisions established under the Local Op9 portunity Plan as established under section 

10 102(d)(1); or 

11 (iii) the Local Opportunity Board of 

12 the qualified area failed to meet any addi13 tional criteria to be established by the Na14 tional Opportunity Board. 

15 (C) REPAYMENT OF AMOUNTS.—The Na16 tional Opportunity Board may, in accordance 

17 with this subsection, require a qualified area to 

18 repay any amounts that were not expended by 

19 the qualified area in accordance with the Local 

20 Opportunity Plan as established under section 

21 102(d)(1), and any such funds shall be re22 turned to the general fund of the Treasury. 

23 (D) GUIDELINES.—The National Oppor24 tunity Board shall establish guidelines for the 

25 conduct of an independent audit, after the secVerDate Mar 15 2010 03:15 Sep 23, 2011 Jkt 099200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S1565.IS S1565

tjames on DSK6SPTVN1PROD with BILLS
14 

•S 1565 IS

1 ond program year, of any qualified area partici2 pating in the National Competition. Such guide3 lines shall require that the qualified area be au4 dited in accordance with generally accepted au5 diting standards by independent certified public 

6 accountants and that all books, accounts, finan7 cial records, reports, and files necessary to fa8 cilitate the audits shall be made available to the 

9 person or persons conducting the audits. 

10 (g) PERSONNEL MATTERS.— 

11 (1) COMPENSATION AND EXPENSES.— 

12 (A) IN GENERAL.—Except as provided in 

13 this paragraph, a member of the Board shall 

14 serve without compensation. 

15 (B) TRAVEL EXPENSES.—Each member of 

16 the Board shall be reimbursed for travel and 

17 per diem in lieu of subsistence expenses during 

18 the performance of duties of the Board while 

19 away from home or his or her regular place of 

20 business, in accordance with applicable provi21 sions under subchapter I of chapter 57 of title 

22 5, United States Code. 

23 (C) FEDERAL EMPLOYEES.—A member of 

24 the Board who is an officer or employee of the 

25 Federal Government shall serve without comVerDate Mar 15 2010 03:15 Sep 23, 2011 Jkt 099200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S1565.IS S1565

tjames on DSK6SPTVN1PROD with BILLS
15 

•S 1565 IS

1 pensation in addition to the compensation re2 ceived for the services of the member as an offi3 cer or employee of the Federal Government. 

4 (2) STAFF.—Subject to such rules as the Board 

5 may prescribe, the Chair of the Board, without re6 gard to the provisions of title 5, United States Code, 

7 governing appointments in the competitive service, 

8 and without regard to the provisions of chapter 51 

9 and subchapter III of chapter 53 of such title (relat10 ing to classification and General Schedule pay 

11 rates), may appoint and fix the pay of a staff direc12 tor and such other personnel as may be necessary to 

13 enable the Board to carry out its functions; except 

14 that no rate of pay fixed under this subsection may 

15 exceed the maximum rate of basic pay payable for 

16 GS–15 of the General Schedule. 

17 (3) ADMINISTRATION.—Not more than 5 per18 cent of the total amount appropriated for the Na19 tional Opportunity Board may be expended for the 

20 costs of administration, including costs related to 

21 the requirements in section 101(h). 

22 (4) STAFF OF FEDERAL AGENCIES.—Upon re23 quest of the Chair of the Board, the head of any de24 partment or agency described under section 101(d) 

25 may detail, on a nonreimbursable basis, any of the 


tjames on DSK6SPTVN1PROD with BILLS
16 

•S 1565 IS

1 personnel of that department or agency to the Board 

2 to assist it in carrying out its functions under this 

3 Act. 

4 (h) OMBUDSMAN.— 

5 (1) ESTABLISHMENT OF A NATIONAL OMBUDS6 MAN OFFICE.—The Board shall establish an Office 

7 of Ombudsman, to be directed by an Ombudsman. It 

8 shall be the function of the Office of Ombudsman to 

9 receive individual complaints, grievances, and re10 quests for information submitted by any person with 

11 respect to any program or requirement under this 

12 Act. 

13 (2) AUTHORITY TO RENDER ASSISTANCE.—The 

14 Ombudsman shall render assistance with respect to 

15 the complaints, grievances, and requests submitted 

16 to the Office of Ombudsman, and shall make appro17 priate recommendations to the Board, including but 

18 not limited to investigating complaints of corruption 

19 and fraud arising from the creation of a Local Op20 portunity Board for a qualified area and throughout 

21 the duration of qualified area status. 

22 (3) REPORT TO THE NATIONAL OPPORTUNITY

23 BOARD.—If the Ombudsman makes a finding that a 

24 complaint has merit, the Ombudsman may rec25 ommend to the National Board corrective action, inVerDate Mar 15 2010 03:15 Sep 23, 2011 Jkt 099200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S1565.IS S1565

tjames on DSK6SPTVN1PROD with BILLS
17 

•S 1565 IS

1 cluding the revocation of National Award, qualified 

2 area status and access to assistance, waivers and tax 

3 incentives provided under title II of this Act. 

4 (i) GRIEVANCE PROCEDURES; FEDERAL RESPONSI5 BILITY.— 

6 (1) MODELS.—The Board shall, through a 

7 process that includes consultations with qualified 

8 areas and public and private experts in grievance 

9 procedures, arbitration, and mediation, develop 

10 model grievance procedures that may be imple11 mented by the Local Opportunity Boards. Such 

12 model procedures shall describe the elements that 

13 must be addressed in establishing local grievance 

14 procedures and provide grantees with flexibility in 

15 the design of such local procedures. 

16 (2) REVIEW.—The Board shall review grievance 

17 procedures established by the Local Opportunity 

18 Boards and grantees to determine if such procedures 

19 are adequate. In making such a determination, the 

20 Board shall assess whether such procedures permit 

21 legitimate grievances to be filed, evaluated, and re22 solved at the local level. 

23 (3) GRANTEES.—To be eligible to receive assist24 ance under this Act, a grantee shall develop griev25 ance procedures that are determined by the National 


tjames on DSK6SPTVN1PROD with BILLS
18 

•S 1565 IS

1 Opportunity Board to be consistent with the model 

2 procedures developed under paragraph (1). 

3 (j) AUTHORIZATION OF APPROPRIATIONS.—Subject 

4 to section 601 of this Act, for the purposes of carrying 

5 out this section, there are authorized to be appropriated 

6 $1,000,000 for fiscal year 2011, and $2,500,000 each of 

7 fiscal years 2012 through 2016. 

8 SEC. 102. LOCAL OPPORTUNITY BOARDS. 

9 (a) ESTABLISHMENT.—To be eligible to receive as10 sistance, waivers and tax incentives under this Act, the 

11 chief elected official of an eligible area shall establish a 

12 Local Opportunity Board. 

13 (b) COMPOSITION.—The Local Opportunity Board 

14 shall consist of not more than 5 members, to be appointed 

15 by the chief elected official of the eligible area, and shall 

16 include representatives of— 

17 (1) State government; 

18 (2) nonelected community leaders, particularly 

19 those providing poverty-related services, including 

20 advocates and experts; and 

21 (3) the head of the lead agency (or his or her 

22 designee) in one or more of the following programs 

23 operating in the eligible area— 

24 (A) health programs; 

25 (B) labor programs; 


tjames on DSK6SPTVN1PROD with BILLS
19 

•S 1565 IS

1 (C) housing programs; 

2 (D) agriculture programs; 

3 (E) justice programs; or 

4 (F) commerce programs. 

5 (c) CHAIR.—The members of the Local Opportunity 

6 Board shall select a Chair form among such members. 

7 (d) DUTIES.—The Local Opportunity Board shall— 

8 (1) develop and submit to the Board a Local 

9 Opportunity Plan, that at a minimum includes— 

10 (A) a detailed spending plan for any funds 

11 and assistance approved under the National 

12 Competition by the Board; 

13 (B) a description of how the spending plan 

14 meets the criteria listed for grant eligibility as 

15 defined by the Board and including the criteria 

16 listed in section 204(a); 

17 (C) a description of coordination with 

18 other Federal, State, and local government as19 sistance programs available in the jurisdiction 

20 in which the eligible area is located; and 

21 (D) any other elements as required by the 

22 Board; 

23 (2) submit an application (including the Local 

24 Opportunity Plan), pursuant to guidelines estab25 lished by the Board, to the Board for approval; and 


tjames on DSK6SPTVN1PROD with BILLS
20 

•S 1565 IS

1 (3) establish a reporting system, as described in 

2 section 101(f)(1)(F), through which the Chair of the 

3 Local Opportunity Board shall report to the Na4 tional Opportunity Board in compliance with that 

5 subsection. 

6 (e) NATIONAL SERVICE.—As a result of being award7 ed qualified area status, a qualified area and the Local 

8 Opportunity Boards shall be eligible for community serv9 ices provided pursuant to the National and Community 

10 Service Act of 1990 (42 U.S.C. 12501 et seq.). Such serv11 ices shall include, but are not limited to AmeriCorps slots 

12 provided in such Act. 

13 TITLE II—NATIONAL COMPETI14 TION FOR COMMUNITY RE15 NEWAL 

16 SEC. 201. ESTABLISHMENT. 

17 The Board shall develop and publish guidelines for 

18 the establishment of the National Competition for Com19 munity Renewal to provide for the awarding of qualified 

20 area status, assistance, targeted waivers, and targeted tax 

21 incentives. 

22 SEC. 202. DURATION. 

23 The National Competition shall be effective beginning 

24 with the first fiscal year that begins after the date of enVerDate Mar 15 2010 03:15 Sep 23, 2011 Jkt 099200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S1565.IS S1565

tjames on DSK6SPTVN1PROD with BILLS
21 

•S 1565 IS

1 actment of this Act and ending after the fifth such fiscal 

2 year. 

3 SEC. 203. LOCAL OPPORTUNITY FUNDS. 

4 (a) ESTABLISHMENT.—To be eligible to receive as5 sistance under this Act, the Local Opportunity Board for 

6 the qualified area shall— 

7 (1) establish a local opportunity fund; and 

8 (2) otherwise comply with the requirements of 

9 this section. 

10 (b) AMOUNTS IN FUND.— 

11 (1) IN GENERAL.—Prior to awarding qualified 

12 area status, the Local Opportunity Board of the eli13 gible area shall have established a local opportunity 

14 fund. 

15 (2) DEPOSITS.—There shall be deposited into 

16 the local opportunity fund funds made available for 

17 use during the program period in the qualified area 

18 under the following: 

19 (A) The Community Services Block Grant 

20 Act (42 U.S.C. 9901 et seq.). 

21 (B) The Head Start Act (42 U.S.C. 9831 

22 et seq.). 

23 (C) The Low-Income Home Energy Assist24 ance Act of 1981 (42 U.S.C. 8621 et seq.). 


tjames on DSK6SPTVN1PROD with BILLS
22 

•S 1565 IS

1 (D) The supplemental nutrition assistance 

2 program under the Richard B. Russell National 

3 School Lunch Act (7 U.S.C. 2011 et seq.). 

4 (E) The Weatherization Assistance for 

5 Low-Income Persons Program under the En6 ergy Conservation and Production Act (42 

7 U.S.C. 6861 et seq.). 

8 (F) The Jobs Corps program under sub9 title C of title I of the Workforce Investment 

10 Act of 1998 (29 U.S.C. 2881 et seq.). 

11 (G) The Temporary Assistance to Needy 

12 Families Program under title IV of the Social 

13 Security Act (42 U.S.C. 601 et seq.). 

14 (H) The Workforce Investment Act of 

15 1998 (29 U.S.C. 2801 et seq.). 

16 (c) ACCOUNTING REGULATIONS.—The Board shall 

17 promulgate regulations with respect to accounting for the 

18 amounts in the local opportunity funds established under 

19 subsection (a). 

20 (d) USE OF FUNDS.—Assistance provided under sub21 section (a) may be used for the following activities relating 

22 to poverty prevention: 

23 (1) Assisting the needs of low-income individ24 uals including the homeless, migrants and the elder25 ly. 


tjames on DSK6SPTVN1PROD with BILLS
23 

•S 1565 IS

1 (2) Planning and coordinating initiatives re2 lated to the elimination of poverty in a manner re3 sponsive to local needs and conditions. 

4 (3) Providing comprehensive child development 

5 services to economically disadvantaged children and 

6 families, with a special focus on helping develop 

7 reading and math skills. 

8 (4) Alleviating hunger and malnutrition 

9 through supplemental nutrition assistance programs. 

10 (5) Assisting low income families with home en11 ergy needs, and increasing energy efficiency of dwell12 ings owned or occupied by low income persons to re13 duce their total energy expenditures and improve 

14 their health and safety. 

15 (6) Providing vocational training, in order to 

16 secure and hold employment. 

17 (7) Providing assistance and counseling to 

18 needy families to help end the dependence on gov19 ernment benefits by promoting job preparation and 

20 work. 

21 (8) Any other activities included in a Local Op22 portunity Plan approved by the National Oppor23 tunity Board. 

24 (e) FIDUCIARY RESPONSIBILITY FOR ADMINISTRA25 TION OF FUNDS.—The responsible local official shall have 


tjames on DSK6SPTVN1PROD with BILLS
24 

•S 1565 IS

1 a fiduciary responsibility to administer funds in the local 

2 opportunity fund established under subsection (a)— 

3 (1) in accordance with the Local Opportunity 

4 Plan (as approved by the Board); and 

5 (2) notwithstanding the provisions of law re6 ferred to in subsection (b)(2). 

7 (f) STATE FUNDS.—The Local Opportunity Plan de8 scribed in section 102(d)(1) shall provide satisfactory as9 surance that Federal funds and assistance made available 

10 under this title shall not be commingled with State funds. 

11 SEC. 204. WAIVER PROGRAM. 

12 (a) ESTABLISHMENT.—The Board shall develop and 

13 publish guidelines to provide for a waiver of the applica14 tion of any or all of the provisions of law described in sub15 section (c), with respect to a qualified area under the Na16 tional Competition. 

17 (b) AUTHORIZATION.—The Board shall grant a waiv18 er to a qualified area that has been selected by the Board 

19 as a winner under the National Competition. 

20 (c) PROVISIONS OF LAW TO BE WAIVED.—The pro21 visions of law described in this subsection are the fol22 lowing: 

23 (1) The Community Services Block Grant Act 

24 (42 U.S.C. 9901 et seq.). 


tjames on DSK6SPTVN1PROD with BILLS
25 

•S 1565 IS

1 (2) The Head Start Act (42 U.S.C. 9831 et 

2 seq.). 

3 (3) The Low-Income Home Energy Assistance 

4 Act of 1981 (42 U.S.C. 8621 et seq.). 

5 (4) The supplemental nutrition assistance pro6 gram under the Richard B. Russell National School 

7 Lunch Act (7 U.S.C. 2011 et seq.). 

8 (5) The Weatherization Assistance for Low-In9 come Persons Program under the Energy Conserva10 tion and Production Act (42 U.S.C. 6861 et seq.). 

11 (6) The Jobs Corps program under subtitle C 

12 of title I of the Workforce Investment Act of 1998 

13 (29 U.S.C. 2881 et seq.). 

14 (7) The Temporary Assistance to Needy Fami15 lies Program under title IV of the Social Security 

16 Act (42 U.S.C. 601 et seq.). 

17 (8) The Workforce Investment Act of 1998 (29 

18 U.S.C. 2801 et seq.). 

19 (d) HOLD HARMLESS.—Notwithstanding any other 

20 provision of law, the Local Opportunity Board for the 

21 qualified area shall ensure that the amount received by 

22 an individual under this Act in any program year shall 

23 not be less than the amount that individual would other24 wise have received under any provision of law described 

25 in subsection (c) during such year. 


tjames on DSK6SPTVN1PROD with BILLS
26 

•S 1565 IS

1 SEC. 205. TAX INCENTIVES. 

2 A qualified area that is selected to participate in the 

3 National Competition by the Board shall be eligible for 

4 targeted tax incentives as established under title III. 

5 SEC. 206. APPLICATION AND ADMINISTRATION. 

6 (a) DESIGN PRINCIPLES.—In approving an applica7 tion for participation in the National Competition under 

8 this title, the Board may give preference to eligible areas 

9 that include the creation of an individual opportunity plan 

10 (as described in subsection (b)) as well as the following 

11 design principles as contained in the Local Opportunity 

12 Plan (as established in section 102(d)(1)): 

13 (1) Basing poverty reduction and prevention 

14 services on the Human Development Index as a 

15 measure of the level of poverty for individuals and 

16 households. 

17 (2) A model of poverty reduction and preven18 tion that includes the varying levels of service for in19 dividuals and is adjusted to reflect the needs of indi20 viduals and households at different stages of pov21 erty. The different levels of service may be struc22 tured to reflect the following levels of assistance: 

23 (A) For low-income individuals and fami24 lies requiring services to prevent reliance on 

25 more expensive government programs, services 

26 shall focus on intervention, including such servVerDate Mar 15 2010 03:15 Sep 23, 2011 Jkt 099200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S1565.IS S1565

tjames on DSK6SPTVN1PROD with BILLS
27 

•S 1565 IS

1 ices as mortgage assistance, debt relief, housing 

2 and voucher assistance, and job development 

3 and placement. 

4 (B) For low-income individuals and fami5 lies currently relying on at least one govern6 ment program for basic needs such as food or 

7 housing, services shall be tailored to meet spe8 cific needs identified in a unique individual op9 portunity plan adopted by intensive client advo10 cacy. 

11 (C) For individuals at or below the Federal 

12 Poverty Guidelines, the continued provision of 

13 long term services shall be made available. 

14 (3) An individual opportunity plan (as provided 

15 for in subsection (b)). 

16 (4) Intensive client advocacy, as defined in 

17 guidelines to be developed and published by the 

18 Board. 

19 (5) Detailed evaluation practices, as defined in 

20 guidelines to be developed and published by the 

21 Board. 

22 (6) A plan that describes ways in which techno23 logical upgrades will be made, including but not lim24 ited to installing infrastructure, purchasing hardVerDate Mar 15 2010 03:15 Sep 23, 2011 Jkt 099200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S1565.IS S1565

tjames on DSK6SPTVN1PROD with BILLS
28 

•S 1565 IS

1 ware and software, utilizing technical assistance, and 

2 professional development. 

3 (b) INDIVIDUAL OPPORTUNITY PLANS.—The Board 

4 shall develop and publish guidelines for the establishment 

5 of individual opportunity plans, which, at a minimum shall 

6 consist of— 

7 (1) an assessment of the unique strengths and 

8 needs of the individual and the identification of serv9 ices appropriate to meet such needs; and 

10 (2) a written individualized opportunity plan 

11 developed by a multidisciplinary team, including a 

12 description of measurable results and outcomes ex13 pecting to be achieved as a result of implementation 

14 of the plan. 

15 (c) PARTICIPATION IN NATIONAL COMPETITION.— 

16 The Board shall select a total of 10 qualified areas for 

17 participation in the National Competition. Such areas 

18 shall include— 

19 (1) not less than 3 rural areas as defined by 

20 this Act; and 

21 (2) not less than 1 qualified area that is located 

22 in a county in which a qualified military installation 

23 or a county adjacent to a qualified military installa24 tion is located. 


tjames on DSK6SPTVN1PROD with BILLS
29 

•S 1565 IS

1 TITLE III—COMMUNITY 

2 RENEWAL INCENTIVES 

3 SEC. 301. COMMUNITY RENEWAL SAVINGS. 

4 (a) IN GENERAL.—Each Local Opportunity Board 

5 shall implement a method to calculate the community re6 newal savings achieved through the implementation of its 

7 Local Opportunity Plan. 

8 (b) COMMUNITY RENEWAL SAVINGS.—For the pur9 poses of this Act, the term ‘‘community renewal savings’’ 

10 means the present dollar value of the net Federal and 

11 State funds directly or indirectly saved by the Local Op12 portunity Board for individuals successfully assisted 

13 through the Local Opportunity Plan. 

14 (c) FACTORS.—The community renewal savings shall 

15 be measured by criteria identified by the Local Oppor16 tunity Board in valuing the effectiveness of each program 

17 in the Local Opportunity Plan, but shall include the fol18 lowing: 

19 (1) Present dollar value of increasing the in20 come of an individual successfully assisted by a 

21 Local Opportunity Plan. 

22 (2) Present dollar value of an individual grad23 uating high school. 

24 (3) Funds expended by the jurisdiction to assist 

25 an individual in each Local Opportunity Plan. 


tjames on DSK6SPTVN1PROD with BILLS
30 

•S 1565 IS

1 (4) Funds expended if an individual does not 

2 graduate high school. 

3 (d) ALLOCATION.—The community renewal savings 

4 of a Local Opportunity Board shall be allocated as follows: 

5 (1) 50 percent to reduce the public deficit. 

6 (2) 25 percent to fund community tax incen7 tives. 

8 (3) 25 percent to fund, reinvest in, and expand 

9 programs and services under this Act. 

10 (e) PROGRAM COST-BENEFIT RATIO.—Each Local 

11 Opportunity Board shall calculate the program cost-ben12 efit ratio for each program under the Local Opportunity 

13 Plan, which shall be the ratio of— 

14 (1) the cost of the program measured by dol15 lars; over 

16 (2) the benefit of the program expressed in dol17 lars. 

18 (f) EXAMPLE.—The program cost-benefit ratio of a 

19 job training program is equal to the cost of the program 

20 in dollars over the amount the program raises the earnings 

21 of the enrollee during his or her lifetime, taking into ac22 count what the individual would have earned without the 

23 job training program using local job market data. 


tjames on DSK6SPTVN1PROD with BILLS
31 

•S 1565 IS

1 SEC. 302. COMMUNITY TAX INCENTIVES. 

2 (a) IN GENERAL.—A dollar amount equal to 25 per3 cent of the community renewal savings shall be allocated 

4 to the community tax incentives. 

5 (b) COMMUNITY TAX INCENTIVES.—The community 

6 tax incentives shall consist of the following: 

7 (1) Renewal employer refundable credit. 

8 (2) Unrelated business taxable income deduc9 tion. 

10 (3) Qualified community renewal contribution. 

11 (4) High school graduation tax credit. 

12 (5) Modified new markets tax credit. 

13 (6) Community renewal bonds. 

14 SEC. 303. RENEWAL EMPLOYER REFUNDABLE CREDIT. 

15 (a) IN GENERAL.—In the case of any taxable year 

16 during the program period, there shall be allowed a cur17 rent year business credit in the amount of $3,000 under 

18 section 38(b) of the Internal Revenue Code of 1986, with 

19 respect to each retained worker employed by a qualified 

20 opportunity employer with respect to which subsection 

21 (b)(4) is first satisfied during such taxable year. 

22 (b) RETAINED WORKER.—For purposes of this sec23 tion, the term ‘‘retained worker’’ means any individual— 

24 (1) whose principal place of abode is within the 

25 qualified area; 


tjames on DSK6SPTVN1PROD with BILLS
32 

•S 1565 IS

1 (2) substantially all of the services performed 

2 by such individual during the taxable year are ren3 dered within the qualified area; 

4 (3) who begins employment with a qualified op5 portunity employer after the commencement of the 

6 program period; 

7 (4) who certifies by signed affidavit, under pen8 alties of perjury, that such individual has not been 

9 employed for more than 40 hours during the 90-day 

10 period ending on the date such individual begins 

11 such employment; 

12 (5) who is not employed by the qualified oppor13 tunity employer to replace another employee of such 

14 employer unless such other employee separated from 

15 employment voluntarily or for cause; 

16 (6) who is not an individual described in section 

17 51(i)(1) of the Internal Revenue Code of 1986 (ap18 plied by striking ‘‘taxpayer’’ and inserting ‘‘qualified 

19 opportunity employer’’ each place that term ap20 pears); 

21 (7) who was employed by the qualified oppor22 tunity employer on any date during the taxable year; 

23 (8) who was so employed by the qualified op24 portunity employer for a period of not less than 52 

25 consecutive weeks; 


tjames on DSK6SPTVN1PROD with BILLS
33 

•S 1565 IS

1 (9) whose wages (as defined in section 3401(a) 

2 of the Internal Revenue Code of 1986) for such em3 ployment during the last 26 weeks of such period 

4 equaled at least 110 percent of such wages for the 

5 first 26 weeks of such period; and 

6 (10) who receives health benefits at least equal 

7 to essential health benefits, as defined under section 

8 1302 of the Patient Protection and Affordable Care 

9 Act. 

10 (c) QUALIFIED OPPORTUNITY EMPLOYER.— 

11 (1) IN GENERAL.—For purposes of this section, 

12 the term ‘‘qualified opportunity employer’’ means 

13 any employer— 

14 (A) having a place of business in the quali15 fied area; 

16 (B) subject to remit withholding and em17 ployment taxes to the United States; and 

18 (C) designated by the Local Opportunity 

19 Board, at its sole discretion, as a qualified op20 portunity employer based on its hiring stand21 ards, employee benefits, and employee retention 

22 statistics. 

23 (2) TYPES OF QUALIFIED OPPORTUNITY EM24 PLOYERS.—A qualified opportunity employer in25 cludes any person employing individuals within the 


tjames on DSK6SPTVN1PROD with BILLS
34 

•S 1565 IS

1 qualified area as long as such person meets the re2 quirements under paragraph (1) and is not limited 

3 to persons subject to income tax under subpart A of 

4 the Internal Revenue Code of 1986. 

5 (d) LIMITATION ON CARRYBACKS.—No portion of the 

6 unused credit under section 38 of the Internal Revenue 

7 Code of 1986 for any taxable year which is attributable 

8 to the increase in the current year business credit under 

9 this section may be carried to a taxable year beginning 

10 before the date of the enactment of this section. 

11 SEC. 304. UNRELATED BUSINESS TAXABLE INCOME DEDUC12 TION. 

13 (a) IN GENERAL.—In the case of any taxable year 

14 during the program period, there shall be allowed a deduc15 tion under section 512(a) of the Internal Revenue Code 

16 of 1986 equal to the amount of 25 percent for any commu17 nity renewal expenditure during such taxable year. 

18 (b) COMMUNITY RENEWAL EXPENDITURE.—For 

19 purposes of this section, the term ‘‘community renewal ex20 penditure’’ means an expenditure made by a qualified op21 portunity organization in furtherance of a qualified oppor22 tunity program or service. 

23 (c) QUALIFIED OPPORTUNITY ORGANIZATION.—For 

24 purposes of this section, the term ‘‘qualified opportunity 

25 organization’’ means an organization— 


tjames on DSK6SPTVN1PROD with BILLS
35 

•S 1565 IS

1 (1) which is described in section 501(c)(3) of 

2 the Internal Revenue Code of 1986 and is exempt 

3 from tax under section 501(a) of such Code (other 

4 than a private foundation, as defined in section 

5 509(a) of such Code, which is not an operating foun6 dation, as defined in section 4942(j)(3) of such 

7 Code); and 

8 (2) is designated by the Local Opportunity 

9 Board as being an eligible recipient of qualified com10 munity renewal contributions based on the programs 

11 and services it proposes to offer in furtherance of 

12 the Local Opportunity Plan. 

13 (d) QUALIFIED OPPORTUNITY PROGRAM OR SERV14 ICE.—For purposes of this section, the term ‘‘qualified op15 portunity program or service’’ means a program or service 

16 conducted by a qualified opportunity organization that is 

17 designated by the Local Opportunity Board as contrib18 uting importantly in accomplishing the Local Opportunity 

19 Plan. 

20 SEC. 305. QUALIFIED COMMUNITY RENEWAL CONTRIBU21 TION. 

22 (a) IN GENERAL.—In the case of any taxable year 

23 during the program period, there shall be allowed a chari24 table contribution deduction under section 170(a) of the 

25 Internal Revenue Code of 1986 equal to the amount of 


tjames on DSK6SPTVN1PROD with BILLS
36 

•S 1565 IS

1 120 percent of any qualified community renewal contribu2 tion donated during such taxable year. 

3 (b) QUALIFIED COMMUNITY RENEWAL CONTRIBU4 TION.—For purposes of this section, the term ‘‘qualified 

5 community renewal contribution’’ means a charitable con6 tribution of property described in section 170(c) of the In7 ternal Revenue Code of 1986, by an individual or corpora8 tion to a qualified opportunity organization (as defined in 

9 section 304(c)). 

10 (c) INCREASED CHARITABLE CONTRIBUTION DEDUC11 TION LIMITATION.—For the purposes of this section, sec12 tion 170 of the Internal Revenue Code of 1986 is ap13 plied— 

14 (1) in the flush language of subsection 

15 (b)(1)(A), by striking ‘‘50 percent’’ and inserting 

16 ‘‘75 percent’’; and 

17 (2) in subsection (b)(2)(A), by striking ‘‘10 per18 cent’’ and inserting ‘‘15 percent’’. 

19 (d) EXCLUSION FROM ALTERNATIVE MINIMUM TAX20 ABLE INCOME.—In any taxable year during which a quali21 fied community renewal contribution is properly claimed 

22 or carried over, the amount of such qualified community 

23 renewal contribution shall not be included in limiting the 

24 claimant’s total itemized deductions under the Internal 

25 Revenue Code of 1986 (other than under subsection (c)) 


tjames on DSK6SPTVN1PROD with BILLS
37 

•S 1565 IS

1 and shall be excluded from the claimant’s calculation of 

2 alternative minimum taxable income under such Code. 

3 SEC. 306. HIGH SCHOOL GRADUATION TAX CREDIT. 

4 (a) IN GENERAL.—In the case of any taxable year 

5 during the program period, there shall be allowed to any 

6 eligible graduate or any taxpayer claiming an eligible grad7 uate as a dependent a credit against tax imposed by sub8 title A of the Internal Revenue Code of 1986 of a high 

9 school graduation tax credit in the amount of $500. 

10 (b) ELIGIBLE GRADUATE.—For the purposes of this 

11 section, the term ‘‘eligible graduate’’ means any individual 

12 who graduates from a qualified opportunity school. 

13 (c) QUALIFIED OPPORTUNITY SCHOOL.—For the 

14 purposes of this section, the term ‘‘qualified opportunity 

15 school’’ means— 

16 (1) a secondary school located in the qualified 

17 area that includes grade 12; and 

18 (2) is designated by the Local Opportunity 

19 Board as a qualified opportunity school based on 

20 certain predetermined criteria, such as the average 

21 graduation rate. 

22 (d) NO LIMITATION.—The high school graduation 

23 tax credit shall be considered a refundable tax credit under 

24 the Internal Revenue Code of 1986 and is allowable based 

25 solely on the requirements stated in this section. 


tjames on DSK6SPTVN1PROD with BILLS
38 

•S 1565 IS

1 SEC. 307. MODIFIED NEW MARKETS TAX CREDIT. 

2 (a) IN GENERAL.—In the case of any taxable year 

3 during the program period, the term ‘‘low-income commu4 nity’’ as defined in section 45D of the Internal Revenue 

5 Code of 1986 shall include the area within a qualified 

6 area. 

7 (b) QUALIFIED EQUITY INVESTMENT.—A qualified 

8 equity investment made pursuant to section 45D of the 

9 Internal Revenue Code of 1986 in a qualified area in ac10 cordance with subsection (a) shall qualify as such at the 

11 time of investment and shall not fail to be considered a 

12 qualified equity investment upon termination of the Na13 tional Competition for Community Renewal. 

14 SEC. 308. EARNED INCOME TAX CREDIT. 

15 (a) IN GENERAL.—In the case of any taxable year 

16 during the program period, a Local Opportunity Board 

17 may submit to the National Opportunity Board proposed 

18 revisions to section 32 of the Internal Revenue Code of 

19 1986 that modify the eligibility or percentage require20 ments, or both, of the earned income tax credit allowable 

21 to individuals residing in the qualified area. 

22 (b) ADOPTION.—The National Opportunity Board, in 

23 its sole discretion, shall evaluate the modifications pro24 posed by one or more Local Opportunity Boards and 

25 whether to propose such modifications to Congress. The 

26 National Opportunity Board shall base its decision to apVerDate Mar 15 2010 03:15 Sep 23, 2011 Jkt 099200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\S1565.IS S1565

tjames on DSK6SPTVN1PROD with BILLS
39 

•S 1565 IS

1 prove the Local Opportunity Board’s proposed revisions 

2 to the earned income tax credit on comprehensive data 

3 presented to the National Opportunity Board indicating 

4 that the proposed revisions will better serve the individuals 

5 residing in the qualified area. The National Opportunity 

6 Board shall include such data in a proposal to Congress, 

7 which shall consider the proposal and supporting data in 

8 the context of the purposes and goals of this Act. 

9 (c) TERMINATION.—If Congress approves the pro10 posal made by the National Opportunity Board and modi11 fies section 32 of the Internal Revenue Code, then at the 

12 end of the program period, any revisions made to the 

13 earned income tax credit requirements under the authority 

14 granted in this section shall terminate and individuals re15 siding in the qualified area shall be subject to the provi16 sions as stated in section 32 of the Internal Revenue Code 

17 of 1986. 

18 (d) REPORTS.—If Congress approves the proposal 

19 made by the National Opportunity Board and modifies 

20 section 32 of the Internal Revenue Code, then by the end 

21 of each subsequent year following a taxable year of the 

22 program period, the Local Opportunity Boards shall re23 port to the National Opportunity Board the number of 

24 persons filing and the amount of credit allowed under the 

25 approved revisions to the earned income tax credit as comVerDate Mar 15 2010 03:15 Sep 23, 2011 Jkt 099200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\S1565.IS S1565

tjames on DSK6SPTVN1PROD with BILLS
40 

•S 1565 IS

1 pared with the same statistics in taxable years before the 

2 commencement of the program period, and the National 

3 Opportunity Board shall promptly provide an aggregate 

4 report on such matters to Congress. 

5 SEC. 309. COMMUNITY RENEWAL BONDS. 

6 (a) IN GENERAL.—The National Opportunity board, 

7 acting through the Local Opportunity Boards, is hereby 

8 granted the authority to act on behalf of the Secretary 

9 of Treasury to issue and sell community renewal bonds 

10 in face value increments of $100 up to a maximum 

11 amount of $50,000,000 to assist the financing of Local 

12 Opportunity Plans. Community renewal bonds shall bear 

13 a coupon rate of 25 percent. 

14 (b) COMMUNITY RENEWAL BONDS.—Community re15 newal bonds shall be backed by the full faith and credit 

16 of the United States Government. 

17 (c) ALLOCATION.—Proceeds from the sale of commu18 nity renewal bonds shall be allocated evenly among the 

19 Local Opportunity Boards. 

20 (d) TERM.—Community renewal bonds shall have a 

21 maturity date of 7 years from the date of issuance. 

22 (e) REPAYMENT.—Repayment of community renewal 

23 bonds allocated to each Local Opportunity Board shall be 

24 made from a portion of the community renewal savings 

25 allocated to the community tax incentives for such Board. 


tjames on DSK6SPTVN1PROD with BILLS
41 

•S 1565 IS

1 SEC. 310. ANTICORRUPTION PROVISION. 

2 It shall be unlawful for any person— 

3 (1) to claim a community renewal incentive who 

4 does not meet the requirements set forth in this Act; 

5 and 

6 (2) to use funds appropriated under this Act 

7 for any purpose for which such funds were not au8 thorized. 

9 TITLE IV—COMPETITIONS FOR 

10 INNOVATION IN CLIENT AD11 VOCACY AND EVALUATION 

12 SEC. 401. CLIENT ADVOCACY COMPETITION. 

13 (a) IN GENERAL.—The Board shall be authorized to 

14 establish and administer a program to award competitive 

15 grants, in the amount of $5,000,000, to eligible entities 

16 to provide for the development of a client advocacy and 

17 consumer services technology platform. 

18 (b) ELIGIBLE ENTITY.—The Board shall establish 

19 criteria that an entity must comply with to be considered 

20 an eligible entity for purposes of this section. 

21 (c) PRIORITY CONSIDERATION.—The Board shall es22 tablish criteria for the awarding of grants under this sec23 tion and shall give priority consideration to eligible entities 

24 that establish a platform which shall include— 

25 (1) single source data entry that will be im26 ported into multiple data entry points; 


tjames on DSK6SPTVN1PROD with BILLS
42 

•S 1565 IS

1 (2) a user-friendly interface; 

2 (3) data that is interoperable across numerous 

3 programs; 

4 (4) calculations based on the Human Develop5 ment Index or another alternative poverty measure6 ment; 

7 (5) security requirements; 

8 (6) assisting the case manager and consumer 

9 with establishing short and long term goals; 

10 (7) low-cost or cost-effective replication abili11 ties; and 

12 (8) an implementation plan that includes an 

13 analysis and upgrade, where necessary, of techno14 logical capabilities, and training for an organiza15 tion’s staff that chooses to utilize this program. 

16 (d) CLIENT ADVOCACY AND CONSUMER SERVICES

17 TECHNOLOGY.—In awarding grants under this section the 

18 Board shall give preference to those eligible entities that 

19 are, on the date of enactment of this Act, operating a cli20 ent advocacy and consumer services technology platform. 

21 SEC. 402. EVALUATION COMPETITION. 

22 (a) IN GENERAL.—The Board shall be authorized to 

23 establish and administer a program to award competitive 

24 grants, in the amount of $5,000,000, to eligible entities 


tjames on DSK6SPTVN1PROD with BILLS
43 

•S 1565 IS

1 to provide for the development of a social services evalua2 tion method. 

3 (b) ELIGIBLE ENTITY.—The Board shall establish 

4 criteria that an entity must comply with to be considered 

5 an eligible entity for purposes of this section, with pref6 erence to be given to those entities in academia or re7 search-oriented fields. 

8 (c) SOCIAL SERVICE EVALUATION.—The Board shall 

9 establish criteria for the awarding of grants under this 

10 section and may consider, in establishing such criteria, the 

11 extent to which the proposed social service evaluation 

12 method to be developed under the grant would uniquely 

13 measure social service interventions with high predict14 ability for programs that will be successful when serving 

15 a high volume of individuals. 

16 TITLE V—REPORT TO CONGRESS 

17 SEC. 501. REPORT TO CONGRESS. 

18 (a) BOARD.—Not later than 1 year after the end of 

19 the third and fifth fiscal years during which the program 

20 under this Act is implemented, the Board shall submit to 

21 the Congress a report that— 

22 (1) summarizes all activities carried out under 

23 this Act; and 


tjames on DSK6SPTVN1PROD with BILLS
44 

•S 1565 IS

1 (2) sets forth any findings, conclusions, or rec2 ommendations of the Board as a result of such ac3 tivities. 

4 (b) GOVERNMENT ACCOUNTABILITY OFFICE.—Not 

5 later the end of the third and the fifth fiscal year during 

6 which the program under this Act is implemented, the 

7 Comptroller General of the United States shall submit a 

8 report to Congress that contains— 

9 (1) a description of the savings in Federal pro10 grams accrued as a result of this Act; 

11 (2) a description of the success and effective12 ness of the reforms contained in this Act; and 

13 (3) recommendations for improvement in the 

14 administration of the programs under this Act. 

15 TITLE VI—DEFICIT NEUTRAL 

16 EFFECT ON APPROPRIATIONS 

17 SEC. 601. DEFICIT NEUTRAL EFFECT ON APPROPRIATIONS. 

18 For the purposes of carrying out this Act, there are 

19 authorized to be appropriated such sums that may be nec20 essary for the first fiscal year in which the National Com21 petition is implemented, and for each of the 5 succeeding 

22 fiscal years, provided that the National Opportunity Board 

23 shall ensure, to the greatest extent practicable, that the 


tjames on DSK6SPTVN1PROD with BILLS
45 

•S 1565 IS

1 savings realized under section 301 exceed the amount of 

2 appropriations authorized in this Act. 

Æ 


tjames on DSK6SPTVN1PROD with BILLS