II 

Calendar No. 414

108TH CONGRESS 

1ST SESSION S. 1786

[Report No. 108–210] 

To revise and extend the Community Services Block Grant Act, the LowIncome Home Energy Assistance Act of 1981, and the Assets for Independence Act. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 28, 2003

Mr. ALEXANDER (for himself, Mr. DODD, Mr. KENNEDY, Mr. GREGG, Mr. 

BINGAMAN, Mr. DURBIN, Mr. KERRY, Mr. LIEBERMAN, Mr. PRYOR, Ms. 

STABENOW, Ms. COLLINS, and Mr. VOINOVICH) introduced the following 

bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions 

NOVEMBER 24, 2003

Reported by Mr. GREGG, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL

To revise and extend the Community Services Block Grant 

Act, the Low-Income Home Energy Assistance Act of 

1981, and the Assets for Independence Act.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Poverty Reduction and Prevention Act’’. 

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

5 this Act is as follows:

Sec. 1. Short title; table of contents. 

TITLE I—COMMUNITY SERVICES BLOCK GRANT ACT 

Sec. 101. Purposes. 

Sec. 102. Definitions. 

Sec. 103. Authorization of appropriations. 

Sec. 104. Establishment of program. 

Sec. 105. Use of funds. 

Sec. 106. Application and plan. 

Sec. 107. Designation of eligible entities in underserved areas. 

Sec. 108. Tripartite boards. 

Sec. 109. Training, technical assistance, and other activities. 

Sec. 110. Monitoring. 

Sec. 111. Corrective action; termination and reduction of funding. 

Sec. 112. Fiscal controls, audits, and withholding. 

Sec. 113. Accountability and reporting requirement. 

Sec. 114. Limitations on use of funds. 

Sec. 115. Operational rule. 

Sec. 116. Discretionary authority of the secretary. 

Sec. 117. Community food and nutrition programs. 

Sec. 118. National or regional programs designed to provide instructional activities for low-income youth. 

Sec. 119. Short title and conforming amendments. 

TITLE II—LOW-INCOME HOME ENERGY ASSISTANCE 

Sec. 201. Short title. 

Sec. 202. Reauthorization. 

Sec. 203. Natural disasters and other emergencies. 

Sec. 204. Residential Energy Assistance Challenge option. 

Sec. 205. Report to Congress. 

TITLE III—ASSETS FOR INDEPENDENCE ACT 

Sec. 301. Short title. 

Sec. 302. Reauthorization of the Assets for Independence Act.
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1 TITLE I—COMMUNITY SERVICES 

2 BLOCK GRANT ACT 

3 SEC. 101. PURPOSES. 

4 Section 672 of the Community Services Block Grant 

5 Act (42 U.S.C. 9901) is amended to read as follows: 

6 ‘‘SEC. 672. PURPOSES. 

7 ‘‘The purpose of this subtitle is to reduce poverty—

8 ‘‘(1) by strengthening and coordinating local ef9 forts to expand opportunities for individuals and 

10 families to become economically self-sufficient and to 

11 improve and revitalize the communities in which low12 income Americans live, by providing resources to 

13 States for support of local eligible entities and their 

14 partners to—

15 ‘‘(A) plan, coordinate, and mobilize a 

16 broad range of Federal, State, local, and pri17 vate assistance or investment in such a manner 

18 as to use these resources effectively to reduce 

19 poverty and in initiatives that are responsive to 

20 specific local needs and conditions; 

21 ‘‘(B) organize multiple services that meet 

22 the needs of low-income families and individ23 uals, especially low-wage workers and their fam24 ilies, and that assist them in developing the as25 sets and skills needed to become self sustaining 
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1 while ensuring that these services are provided 

2 efficiently, in appropriate combinations, and in 

3 effective sequence; and 

4 ‘‘(C) design and implement comprehensive 

5 approaches to assist individuals transitioning 

6 from the Temporary Assistance to Needy Fami7 lies Program to work; 

8 ‘‘(2) by improving and revitalizing the commu9 nities in which low-income Americans live by pro10 viding resources to—

11 ‘‘(A) broaden the financial resource base of 

12 initiatives and projects directed to the elimi13 nation of poverty and the re-development of the 

14 low-income community, including partnerships 

15 with non-governmental and governmental insti16 tutions to develop the community assets and 

17 services that reduce poverty, such as—

18 ‘‘(i) other private, charitable, neigh19 borhood-based, and religious organizations; 

20 ‘‘(ii) individual citizens, and busi21 nesses, labor, and professional groups, who 

22 are able to influence the quantity and qual23 ity of opportunities and services for the 

24 poor; and 

25 ‘‘(iii) local government leadership; and 
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1 ‘‘(B) coordinate or create community-wide 

2 assets and services that will have a significant, 

3 measurable impact on the causes of poverty in 

4 the community and that will help families and 

5 individuals to achieve economic self-sufficiency, 

6 and test innovative, community-based ap7 proaches to attacking the causes and effects of 

8 poverty and of community breakdown, includ9 ing— 

10 ‘‘(i) innovative initiatives to prevent 

11 and reverse loss of investment, jobs, public 

12 services, and infrastructure in low- and 

13 moderate-income communities; and 

14 ‘‘(ii) innovative partnerships to de15 velop the assets and services that reduce 

16 poverty, as provided for in subparagraph 

17 (A); and 

18 ‘‘(3) by ensuring maximum participation of 

19 residents of low-income communities and of mem20 bers of the groups served by programs under this 

21 subtitle in guiding the eligible entities and in their 

22 programs funded under this subtitle to ameliorate 

23 the particular problems and needs of low-income 

24 residents of their communities and to develop the 

25 permanent social and economic assets of the low-in-
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1 come community in order to reduce the incidence of 

2 poverty.’’. 

3 SEC. 102. DEFINITIONS. 

4 Section 673 of the Community Services Block Grant 

5 Act (42 U.S.C. 9902) is amended—

6 (1) in paragraph (1)(A)(ii), by striking ‘‘or 

7 other mechanism’’; and 

8 (2) in paragraph (2)—

9 (A) in the first sentence—

10 (i) by striking ‘‘Office of Management 

11 and Budget’’ and inserting ‘‘Department 

12 of Health and Human Services’’; and 

13 (ii) by inserting before the period the 

14 following: ‘‘and increased, as the Secretary 

15 determines appropriate, to take into ac16 count higher costs-of-living for a State’’; 

17 and 

18 (B) by striking the last sentence and in19 serting the following: ‘‘Whenever a State deter20 mines that is has served the objectives of the 

21 block grant program established under this sub22 title, the State may revise the poverty line, 

23 while placing a priority in serving those who are 

24 most in need, so that 125 percent of the official 

25 poverty line is the minimum level that a State 
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1 shall be permitted to set as its maximum eligi2 bility requirement and 60 percent of the State’s 

3 median income is the maximum level that a 

4 State shall be permitted to set as its maximum 

5 eligibility requirement. The State may revise 

6 the poverty line only upon a determination that 

7 eligible entities are providing, coordinating, or 

8 partnering with means-tested support services 

9 for low and moderate-income individuals and 

10 families above the official poverty line. Nothing 

11 in this paragraph shall be construed to prevent 

12 eligible entities from continuing to support indi13 viduals and families during their transition 

14 from program eligibility to achieve specific goals 

15 for their economic security and long-term self16 sufficiency as long as priority is given to serv17 ing the lowest income individuals who seek serv18 ices.’’. 

19 SEC. 103. AUTHORIZATION OF APPROPRIATIONS. 

20 Section 674 of the Community Services Block Grant 

21 Act (42 U.S.C. 9903) is amended—

22 (1) in subsection (a), by striking ‘‘1999 through 

23 2003’’ and inserting ‘‘2004 through 2009’’; and 

24 (2) in subsection (b)(2)—
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1 (A) in subparagraph (A), by striking ‘‘or 

2 associations’’ and inserting ‘‘and associations’’; 

3 and 

4 (B) in subparagraph (B)—

(i) by striking ‘‘1 5 ⁄2 of the remainder’’ and inserting ‘‘not less than 1 6 ⁄2 of the 

7 remainder’’; and 

8 (ii) by striking ‘‘evaluation and’’ and 

9 inserting ‘‘evaluation and training and 

10 technical assistance activities and’’. 

11 SEC. 104. ESTABLISHMENT OF PROGRAM. 

12 Section 675 of the Community Services Block Grant 

13 Act (42 U.S.C. 9904) is amended by striking ‘‘through 

14 the program’’ and all that follows through the period and 

15 inserting ‘‘to States for the purpose of ameliorating the 

16 causes of poverty and the conditions caused by poverty 

17 in their communities.’’. 

18 SEC. 105. USE OF FUNDS. 

19 Section 675C(b) of the Community Services Block 

20 Grant Act (42 U.S.C. 9907) is amended—

21 (1) in paragraph (1)—

22 (A) in subparagraph (A), by striking ‘‘enti23 ties in need of such training and assistance’’ 

24 and inserting ‘‘eligible entities and their state25 wide associations that strengthens their mana-
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1 gerial or programmatic capabilities to reduce 

2 poverty’’; and 

3 (B) by striking subparagraphs (B) through 

4 (H), and inserting the following: 

5 ‘‘(B) supporting statewide coordination 

6 and communication among eligible entities and 

7 State-operated or supported programs and serv8 ices, and other locally-operated programs and 

9 services targeted to low-income individuals and 

10 their children and families, so as to ensure that 

11 local eligible entities’ services are integrated in 

12 a manner that allows such low-income indi13 vidual and their families to have access to as 

14 many sources of assistance as are appropriate 

15 to support their progress to economic stability 

16 and self-sufficiency; 

17 ‘‘(C) supporting innovative partnerships, 

18 programs, and activities conducted by commu19 nity action agencies and their partners includ20 ing other community-based organizations to 

21 eliminate poverty, promote self-sufficiency, and 

22 promote community revitalization, including 

23 asset-building programs for low-income individ24 uals, such as programs supporting individual 
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1 development accounts, and home or business 

2 ownership; 

3 ‘‘(D) analyzing the distribution of funds 

4 made available under this subtitle within the 

5 State to determine if such funds have been tar6 geted to the areas of greatest need; 

7 ‘‘(E) supporting State charity tax credits 

8 as described in subsection (c); 

9 ‘‘(F) supporting the identification of exem10 plary grantee agencies or programs as Centers 

11 of Innovation and methodology for dissemi12 nating innovative programs and other best 

13 practices from those agencies statewide; 

14 ‘‘(G) supporting the development of eligible 

15 entities’ partnerships with local law enforce16 ment agencies, local housing authorities, private 

17 foundations, and other public and private part18 ners; and 

19 ‘‘(H) supporting other activities, consistent 

20 with the purposes of this subtitle.’’; 

21 (2) in paragraph (2), by adding at the end the 

22 following: ‘‘. The State shall also ensure that all 

23 funds distributed under subsection (a) are not used 

24 for excessive administrative expenses and that all 

25 funds distributed under such subsection used for sal-
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1 aries by a local entity are fair and equitable. The 

2 State has the authority to determine the appropriate 

3 level of funds distributed under subsection (a) that 

4 an eligible entity shall use for administrative ex5 penses.’’. 

6 SEC. 106. APPLICATION AND PLAN. 

7 Section 676 of the Community Services Block Grant 

8 Act (42 U.S.C. 9908) is amended—

9 (1) in subsection (b)—

10 (A) in the matter preceding paragraph (1), 

11 by inserting ‘‘for the Secretary’s approval’’ 

12 after ‘‘to the Secretary’’; 

13 (B) by striking paragraphs (1) through (6) 

14 and inserting the following: 

15 ‘‘(1) an assurance that funds made available 

16 through the grant or allotment will be used—

17 ‘‘(A) to support activities directly and 

18 through eligible entities that are designed to ex19 pand opportunities for and assist low-income in20 dividuals and their families (including low-in21 come workers) to become self-sufficient, includ22 ing low-income workers, families, and individ23 uals receiving assistance under part A of title 

24 IV of the Social Security Act (42 U.S.C. 601 et 

25 seq.), homeless families and individuals, mi-
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1 grant or seasonal farmworkers, and elderly low2 income individuals and families, and a descrip3 tion of how such activities will enable the fami4 lies and individuals—

5 ‘‘(i) to remove obstacles and solve 

6 problems that block the achievement of 

7 self-sufficiency by organizing and coordi8 nating support for those served under 

9 paragraph (3); 

10 ‘‘(ii) to secure and retain employment 

11 that provides adequate income with essen12 tial benefits; 

13 ‘‘(iii) to attain an adequate education, 

14 with particular attention toward improving 

15 literacy and communications and technical 

16 skills of the low-income families in the 

17 communities involved; 

18 ‘‘(iv) to make better use of available 

19 income and build household assets; 

20 ‘‘(v) to obtain and maintain adequate 

21 housing and a suitable living environment; 

22 ‘‘(vi) to obtain assistance that is need23 ed to resolve family emergencies and indi24 vidual needs, to prevent further hardships, 

25 and to secure economic independence; and 
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1 ‘‘(vii) to participate fully in the public 

2 affairs and management of their commu3 nities and the governance of eligible enti4 ties; and 

5 ‘‘(B) to make more effective use of, and to 

6 coordinate with, other programs related to the 

7 purposes of this subtitle (including State wel8 fare reform efforts); 

9 ‘‘(2) a description of how the State intends to 

10 use discretionary funds made available from the re11 mainder of the grant or allotment described in sec12 tion 675C(b) in accordance with this subtitle, includ13 ing a description of how the State will support inno14 vative community-based initiatives of eligible entities 

15 and their partners related to the purposes of this 

16 subtitle; 

17 ‘‘(3) an assurance that the State has integrated 

18 programs of general relevance in its plan, to the ex19 tent appropriate to the needs of low-income commu20 nities served by the eligible entities, including a de21 scription of innovative community and neighborhood22 based initiatives such as—

23 ‘‘(A) initiatives with the goal of strength24 ening families and encouraging effective par25 enting, including fatherhood initiatives; 
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1 ‘‘(B) initiatives to assist those moving 

2 from welfare to work to obtain jobs at decent 

3 wages with benefits, including those low-income 

4 individuals and their families who are attempt5 ing to transition off a State program carried 

6 out under part A of title IV of the Social Secu7 rity Act; 

8 ‘‘(C) programs for the establishment of vi9 olence-free zones that would involve youth de10 velopment and intervention models that pro11 mote youth success (such as models involving 

12 youth mediation, youth mentoring, life skills 

13 training, job creation, and entrepreneurship 

14 programs); 

15 ‘‘(D) family literacy initiatives; 

16 ‘‘(E) initiatives to increase the develop17 ment of household assets of individuals such as 

18 individual development accounts and home19 ownership opportunities; 

20 ‘‘(F) public and private partnerships to 

21 foster community development, affordable hous22 ing, job creation, and other means of building 

23 the assets of low-income communities; 

24 ‘‘(G) partnerships with local law enforce25 ment agencies, which may include participation 
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1 in community policing, and activities to assist 

2 community residents and public safety officials 

3 in the event of emergencies, including threats to 

4 national security; 

5 ‘‘(H) initiatives to improve economic condi6 tions and mobilize new resources in rural areas 

7 and other at-risk areas to eliminate obstacles to 

8 the self sufficiency of families and individuals in 

9 those communities; 

10 ‘‘(I) initiatives to help reduce the con11 centration of poverty in cities and inner suburbs 

12 and provide economic opportunities for individ13 uals and families in those areas; and 

14 ‘‘(J) partnerships with nonprofit or com15 munity-based organizations that demonstrate 

16 effectiveness in child abuse prevention, includ17 ing with programs that are school-based and 

18 that focus on adolescent victims, and victim19 izers; 

20 ‘‘(4) an assurance that the State will provide 

21 information, including—

22 ‘‘(A) a description of the State measure23 ment system and results for the performance 

24 goals established under section 678E(a)(1)(C); 
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1 ‘‘(B) a description of the service delivery 

2 system, for services provided or coordinated 

3 with funds made available through grants made 

4 under section 675C(a), targeted to low-income 

5 individuals and families in communities within 

6 the State; 

7 ‘‘(C) a description of how linkages will be 

8 developed to fill identified gaps in the services,

9 through the provision of information, referrals, 

10 case management, and followup consultations, 

11 and to support mobilization of new resources 

12 and partnerships; 

13 ‘‘(D) a description of how funds made 

14 available through grants made under section 

15 675C(a) will be coordinated with other public 

16 and private resources; and 

17 ‘‘(E) a description of how the local entity 

18 will use the funds to support innovative commu19 nity and neighborhood-based initiatives related 

20 to the purposes of this subtitle; 

21 ‘‘(5) an assurance that eligible entities in the 

22 State will provide, on an emergency basis, for the 

23 provision of such supplies and services, nutritious 

24 foods, and related services, as may be necessary to 
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1 counteract conditions of starvation and malnutrition 

2 among low-income individuals; 

3 ‘‘(6) an assurance that the State has, to avoid 

4 duplication of such services, and to ensure that pro5 gram gaps are addressed, identified and coordinated 

6 with eligible entity programs, with State and local 

7 agencies, and with programs that assist low-income 

8 individuals and their families, including— 

9 ‘‘(A) programs carried out under part A of 

10 title IV of the Social Security Act, the Work11 force Investment Act, and other programs de12 signed to coordinate work-related supportive 

13 services for families; 

14 ‘‘(B) programs for expanding housing op15 portunities, reducing homelessness, and devel16 oping community investment projects; 

17 ‘‘(C) education programs, including those 

18 for preschool and school-aged children and for 

19 adults to obtain an adequate education; and 

20 ‘‘(D) programs designed to support youth, 

21 the homeless, migrants, senior citizens, and in22 dividuals with disabilities, including programs 

23 under the Low-Income Home Energy Assist24 ance Act of 1981;’’; 
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1 (C) in paragraph (12), by striking ‘‘not 

2 later than fiscal year 2001’’ and inserting ‘‘an3 nually’’; 

4 (D) in paragraph (13), by striking the pe5 riod and inserting ‘‘in sufficient detail to permit 

6 verification; and’’; 

7 (E) by adding at the end the following: 

8 ‘‘(14) beginning with fiscal year 2006, and in 

9 each fiscal year thereafter, an assurance that the 

10 State is using the procedures described in section 

11 678B(b) to monitor eligible entities.’’; and 

12 (2) by striking subsection (f). 

13 SEC. 107. DESIGNATION OF ELIGIBLE ENTITIES IN UNDER14 SERVED AREAS. 

15 Section 676A(b) of the Community Services Block 

16 Grant Act (42 U.S.C. 9909(b)) is amended by adding at 

17 the end the following: ‘‘In granting such designation, the 

18 State shall deem private nonprofit eligible entities that are 

19 providing related services in the unserved area to be of 

20 demonstrated effectiveness, consistent with the needs iden21 tified by a community needs assessment.’’. 

22 SEC. 108. TRIPARTITE BOARDS. 

23 Section 676B(b) of the Community Services Block 

24 Grant Act (42 U.S.C. 9910(b)) is amended—
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1 (1) by striking ‘‘through—’’ and all that follows 

2 through ‘‘a tripartite’’ in paragraph (1) and insert3 ing ‘‘through a tripartite’’; 

4 (2) by striking paragraph (2); 

5 (3) in subparagraph (C), by striking ‘‘; or’’ and 

6 inserting a period; and 

7 (4) by redesignating subparagraphs (A) through 

8 (C) as paragraph (1) through (3), respectively and 

9 realigning the margins of such paragraphs accord10 ingly. 

11 SEC. 109. TRAINING, TECHNICAL ASSISTANCE, AND OTHER 

12 ACTIVITIES. 

13 Section 678A of the Community Services Block 

14 Grant Act (42 U.S.C. 9913) is amended—

15 (1) in subsection (a)(1)—

16 (A) in subparagraph (A), by striking ‘‘cor17 rective action’’ and all that follows through ‘‘; 

18 and’’ and inserting ‘‘monitoring and such addi19 tional corrective actions as may be needed to 

20 strengthen the management and programmatic 

21 practices of eligible entities;’’; 

22 (B) by striking subparagraph (B) and in23 serting the following: 

24 ‘‘(B) for State and local performance re25 porting and program data collection activities 
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1 related to programs carried out under this sub2 title; 

3 ‘‘(C) for the preparation of reports pro4 vided for in section 678F; 

5 ‘‘(D) for the development and promulga6 tion of a common State Financial and Organi7 zational Protocol that is required to be used by 

8 States under section 678B(b); and 

9 ‘‘(E) to distribute amounts in accordance 

10 with subsection (c).’’; 

11 (2) in subsection (b)(2), by striking ‘‘an ongo12 ing procedure for obtaining input from the national 

13 and State networks of eligible entities’’ and inserting 

14 ‘‘a strategic plan for annual technical assistance de15 veloped in consultation with the national and State 

16 networks of eligible entities regarding their manage17 ment support needs’’; and 

18 (3) in subsection (c)(1), by striking ‘‘manage19 ment information’’ and all that follows through the 

20 period, and inserting ‘‘improving management infor21 mation and reporting systems, measuring of pro22 gram results, ensuring responsiveness to identified 

23 local needs, and reporting and disseminating suc24 cessful practices and initiatives’’. 
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1 SEC. 110. MONITORING. 

2 Section 678B of the Community Services Block 

3 Grant Act (42 U.S.C. 9914) is amended—

4 (1) in the section heading by striking ‘‘OF EL5 IGIBLE ENTITIES’’; 

6 (2) in subsection (a)—

7 (A) by striking the subsection heading and 

8 inserting ‘‘MONITORING OF ELIGIBLE ENTI9 TIES’’; 

10 (B) in paragraph (1)—

11 (i) by inserting ‘‘biennial’’ after ‘‘on12 site’’; and 

13 (ii) by striking ‘‘at least once during 

14 each 3 year period’’; 

15 (C) by striking paragraph (2); 

16 (D) by redesignating paragraphs (3) and 

17 (4) as paragraphs (2) and (3), respectively; and 

18 (E) in paragraph (2) (as so redesignated), 

19 by inserting ‘‘annual’’ after ‘‘Follow-up’’; 

20 (3) by redesignating subsections (b) and (c) as 

21 subsection (c) and (d), respectively; 

22 (4) by inserting after subsection (a) the fol23 lowing: 

24 ‘‘(b) FINANCIAL AND ORGANIZATIONAL ASSESSMENT

25 PROTOCOL.—Beginning in fiscal year 2006, States shall 

26 implement a financial and organizational assessment pro-
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1 tocol to monitor and evaluate the compliance of eligible 

2 entities with the financial and administrative requirements 

3 of this section. Such protocol shall incorporate the fiscal 

4 and organizational review procedures and standards ap5 propriate to the management of Federal funds under this 

6 subtitle and the governance of the eligible private non7 profit corporations or other eligible entities. The Secretary 

8 shall require the protocol to be developed jointly by the 

9 States and eligible entities and shall assist States in devel10 oping appropriate training for personnel monitoring the 

11 uses of funds under this subtitle according to the require12 ments of this section.’’; and 

13 (5) in subsection (d), as so redesignated, strike 

14 the last sentence and insert the following: ‘‘The Sec15 retary shall annually submit a report including the 

16 results of the evaluations conducted under this sub17 title, the State performance reports provided for 

18 pursuant to section 678E(a)(1)(C), and other mate19 rial as provided by section 678E(b)(2) to the Com20 mittee on Education and the Workforce of the 

21 House of Representatives and the Committee on 

22 Health, Education, Labor, and Pensions of the Sen23 ate.’’. 
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1 SEC. 111. CORRECTIVE ACTION; TERMINATION AND REDUC2 TION OF FUNDING. 

3 Section 678C of the Community Services Block 

4 Grant Act (42 U.S.C. 9915) is amended— 

5 (1) in subsection (a)—

6 (A) in paragraph (4), by striking ‘‘and’’ at 

7 the end; and 

8 (B) by striking paragraph (5) and insert9 ing the following: 

10 ‘‘(5) if the eligible entity fails to correct the de11 ficiency, notify the entity—

12 ‘‘(A) that the State intends to initiate pro13 ceedings to terminate the designation of the en14 tity as an eligible entity or to reduce, from the 

15 previous year, the proportion of the total fund16 ing received by the State under this subtitle 

17 that is allocated to the eligible entity; 

18 ‘‘(B) that the eligible entity has the right 

19 to a hearing on the record to determine if there 

20 is cause for such termination or reduction in 

21 funding, as defined in section 676(c), and that 

22 the request for a hearing must be made in writ23 ing to the State within 30 days of receipt of the 

24 notice from the State; and 

25 ‘‘(C) of the legal basis for the proposed 

26 termination or reduction in funding, the factual 
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1 findings on which the proposed termination or 

2 reduction in funding is based or a reference to 

3 specific findings in another document that form 

4 the basis for the proposed termination or reduc5 tion in funding (such as a reference to item 

6 numbers in an on-site review report or instru7 ment), and citation to any statutory provisions, 

8 agreements, regulations, or State plan; and 

9 ‘‘(6) if the eligible entity requests a hearing, 

10 conduct a hearing on the record to determine if 

11 there is cause for termination or a reduction in 

12 funding, as defined in section 676(c).’’; 

13 (2) in subsection (b)—

14 (A) by striking ‘‘review such a determina15 tion’’ and inserting ‘‘review and either approve, 

16 or disapprove and reverse, such a determina17 tion’’; 

18 (B) by striking ‘‘90 days’’ each place that 

19 such appears and inserting ‘‘30 days’’; and 

20 (C) by striking ‘‘90th day’’ and inserting 

21 ‘‘30th day’’; and 

22 (3) in subsection (c), by adding at the end the 

23 following: ‘‘The Secretary shall continue to fund an 

24 eligible entity, in an amount equal to the same pro25 portion of total funds received by the State under 
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1 this subtitle as was allocated to the eligible entity 

2 the previous year, until the Secretary approves, or 

3 disapproves and reverses, the determination of ter4 mination or reduction in funding with respect to the 

5 State.’’. 

6 SEC. 112. FISCAL CONTROLS, AUDITS, AND WITHHOLDING. 

7 Section 678D of the Community Services Block 

8 Grant Act (42 U.S.C. 9916) is amended—

9 (1) in subsection (a)(1)—

10 (A) in subparagraph (C), by striking 

11 ‘‘and’’ at the end; 

12 (B) by redesignating subparagraph (D) as 

13 subparagraph (F); and 

14 (C) by inserting after subparagraph (C), 

15 the following: 

16 ‘‘(D) notwithstanding paragraph (2)(B), 

17 beginning in fiscal year 2005, and not less than 

18 every 2 years thereafter, each State shall sub19 mit to the Secretary a separate audit of the 

20 funds appropriated under this subtitle that 

21 meets the standards in paragraph (2)(A); and 

22 ‘‘(E) submit full financial reports to the 

23 Secretary not later than 6 months following the 

24 end of each fiscal year; and’’; and 
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1 (2) in subsection (b)(1), by adding at the end 

2 the following: ‘‘The Secretary, after providing ade3 quate notice, shall withhold administrative funds de4 scribed in section 675C(b)(2) from any State that 

5 fails to comply with the provisions of sections 678A 

6 through 678D(a), and may, after an opportunity for 

7 a hearing conducted within the affected State, with8 hold funds from the State and provide such funds 

9 directly to the eligible entities in such State upon a

10 demonstration of the compliance by such entities 

11 with the requirements of this subtitle.’’

12 SEC. 113. ACCOUNTABILITY AND REPORTING REQUIRE13 MENT. 

14 Section 678E of the Community Services Block 

15 Grant Act (42 U.S.C. 9917) is amended to read as follows: 

16 ‘‘SEC. 678E. ACCOUNTABILITY AND REPORTING REQUIRE17 MENTS. 

18 ‘‘(a) STATE ACCOUNTABILITY AND REPORTING RE19 QUIREMENTS.—

20 ‘‘(1) PERFORMANCE MEASUREMENT OF ELIGI21 BLE ENTITIES.—

22 ‘‘(A) IN GENERAL.—Each State that re23 ceives funds under this subtitle shall partici24 pate, and shall ensure that all eligible entities 

25 in the State participate, in a performance meas-
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1 urement system, which may be a performance 

2 measurement system for which the Secretary 

3 facilitated development pursuant to subsection 

4 (b), or an alternative system that the Secretary 

5 is satisfied meets the requirements of sub6 section (b). 

7 ‘‘(B) LOCAL AGENCIES.—The State may 

8 elect to have local agencies that are subcontrac9 tors of the eligible entities under this subtitle 

10 participate in the performance measurement 

11 system. If the State makes that election, ref12 erences in this section to eligible entities shall 

13 be considered to include the local agencies. 

14 ‘‘(C) PERFORMANCE MEASUREMENT OF

15 STATES.—Not later than 1 year after the date 

16 of enactment of the Poverty Reduction and Pre17 vention Act, the Secretary shall establish, in 

18 consultation with States and eligible entities, 

19 performance standards for the State adminis20 tration of block grant funds. Such standards 

21 shall include standards relating to—

22 ‘‘(i) the timeliness of the availability 

23 of State plans for public comment as re24 quired under section 676(a)(2)(B) and of 
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1 submission of such plans to the Secretary 

2 as required in section 676(b); 

3 ‘‘(ii) the utilization of the financial 

4 and organizational assessment protocol es5 tablished under section 678B(b), including 

6 the training and skills of State personnel 

7 responsible for such oversight, the comple8 tion of annual monitoring, the identifica9 tion of opportunities for improvement, and 

10 the implementation of plans to enhance the 

11 management capacity and infrastructure of 

12 eligible entities; 

13 ‘‘(iii) the timeliness of the distribution 

14 of block grants funds to eligible entities as 

15 provided in section 675C(a); 

16 ‘‘(iv) the resources made available for 

17 management development at eligible enti18 ties, including monitoring, training, and 

19 assistance with financial management and 

20 program information and assessment sys21 tems; 

22 ‘‘(v) the results of State efforts to co23 ordinate eligible entity programs with 

24 other State programs for low-income indi25 viduals and their families, especially par-
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•S 1786 RS 

1 ticipants in the Temporary Assistance for 

2 Needy Families Program and other work3 ing families, and to ensure the participa4 tion of eligible entities in the development 

5 of statewide strategies to reduce poverty; 

6 and 

7 ‘‘(vi) the assistance provided to eligi8 ble entities in securing private partnerships 

9 as required in section 676(b). 

10 ‘‘(2) ANNUAL REPORT.—Each State shall annu11 ally prepare and submit to the Secretary a report on 

12 the measured performance of the State and the eligi13 ble entities in the State. The State shall include in 

14 the report any information collected by the State re15 lating to such performance. Each State shall also in16 clude in the report an accounting of the expenditure 

17 of funds received by the State through the commu18 nity services block grant program, including an ac19 counting of funds spent on administrative costs by 

20 the State and the eligible entities, funds spent by eli21 gible entities on the direct delivery of local services, 

22 and the achievement of national goals established 

23 under the procedures described in this section, and 

24 shall include information on the number of and 

25 characteristics of clients served under this subtitle in 
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•S 1786 RS 

1 the State, based on data collected from the eligible 

2 entities. The State shall also include in the report a 

3 summary describing the training and technical as4 sistance offered by the State under section 

5 678C(a)(3) during the year covered by the report. 

6 ‘‘(b) LOCAL ENTITY ACCOUNTABILITY AND REPORT7 ING REQUIREMENTS.—

8 ‘‘(1) LOCAL ENTITY DETERMINED GOALS.—In 

9 order to be designated as an eligible entity and to 

10 receive a grant under this subtitle, a grantee shall 

11 establish grantee determined goals for reducing pov12 erty in the community, including goals for— 

13 ‘‘(A) leveraging community resources; 

14 ‘‘(B) fostering coordination of Federal, 

15 State, local, private, and other assistance; and 

16 ‘‘(C) promoting community involvement. 

17 ‘‘(2) DEMONSTRATION THAT GOALS WERE

18 MET.—In order to receive a grant subsequent to the 

19 first grant that is provided to an eligible entity fol20 lowing the date of enactment of the Poverty Reduc21 tion and Prevention Act, the entity shall dem22 onstrate to the State that substantial progress has 

23 been made in meeting the goals of the entity as de24 scribed in paragraph (1). 
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1 ‘‘(3) GOALS OR PERFORMANCE MEASURES.—

2 Any specific goals or performance measures, for an 

3 individual eligible entity, that are used in any moni4 toring or review process under this subtitle, shall 

5 be—

6 ‘‘(A) determined by the entity; 

7 ‘‘(B) agreed on by the State involved and 

8 the entity, during the planning process leading 

9 to the grant involved; and

10 ‘‘(C) incorporated into the grant agree11 ment between the State and entity for each 

12 subsequent award cycle. 

13 ‘‘(c) SECRETARY’S ACCOUNTABILITY AND REPORT14 ING REQUIREMENTS.—

15 ‘‘(1) FEDERAL PERFORMANCE MEASURE16 MENT.—The Secretary shall establish goals for the 

17 Department of Health and Human Services Office of 

18 Community Services with respect to—

19 ‘‘(A) the timeliness of the distribution of 

20 funds under this subtitle, including funds for 

21 training and technical assistance; 

22 ‘‘(B) the monitoring of States as provided 

23 for in section 678D; 

24 ‘‘(C) the coordination of other Office of 

25 Community Service programs with the activities 
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•S 1786 RS 

1 of States and eligible entities under this sub2 title; and 

3 ‘‘(D) the full and timely reporting as re4 quired in this section. 

5 ‘‘(2) LOCAL PERFORMANCE MEASUREMENT.—

6 ‘‘(A) IN GENERAL.—To the maximum ex7 tent practicable, the Secretary shall coordinate 

8 reporting requirements for all programs of the 

9 Department of Health and Human Services 

10 that are managed by eligible entities so as to 

11 consolidate and reduce the number of reports 

12 required relating to individuals, families, and 

13 uses of grant funds, specifically funds under the 

14 Head Start Act, the Low-Income Home Energy 

15 Assistance Act of 1981, child care programs ad16 ministered by the Department, and health re17 lated service programs administered by the De18 partment. 

19 ‘‘(B) TECHNICAL ASSISTANCE.—The Sec20 retary shall provide technical assistance, includ21 ing support for the enhancement of electronic 

22 data systems, to States and to eligible entities 

23 to enhance their capability to collect and report 

24 data for such a system and to aid in their par25 ticipation in such a system. 
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•S 1786 RS 

1 ‘‘(C) LOCAL ENTITY PERFORMANCE MEAS2 UREMENT SYSTEM.—The Secretary shall assist 

3 in the implementation of a local entity perform4 ance measurement system, and other voluntary 

5 programmatic and results reporting systems, 

6 developed by States, eligible entities, and their 

7 national associations acting together. The Sec8 retary and the developers of such systems shall 

9 ensure that the set of measures are numerous 

10 enough to cover the full range of services of11 fered by all local eligible entities. Under such a 

12 system, local eligible entities shall only be com13 pelled to collect data on the subset of perform14 ance measures that reflect their community-spe15 cific programs and services currently adopted. 

16 Grantees shall not be required under this sub17 paragraph to alter the collection of data for any 

18 reports provided for other programs within the 

19 Department of Health and Human Services or 

20 other Federal agencies. States shall compile an21 nual Results Oriented Management and Ac22 countability System reports for the Secretary 

23 under this subparagraph. 
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•S 1786 RS 

1 ‘‘(3) REPORTING REQUIREMENTS.—For each 

2 fiscal year the Secretary shall, directly or by grant 

3 or contract, prepare a report containing—

4 ‘‘(A) a summary of the planned use of 

5 funds by each State, and the eligible entities in 

6 the State, under the community services block 

7 grant program, as contained in each State plan 

8 submitted pursuant to section 676; 

9 ‘‘(B) a description of how funds were actu10 ally spent by the State and eligible entities in 

11 the State, including a breakdown of funds spent 

12 on administrative costs and on the direct deliv13 ery of local programs by eligible entities; 

14 ‘‘(C) information on the number of entities 

15 eligible for funds under this subtitle, the num16 ber of low-income persons served under this 

17 subtitle, and such demographic data on the low18 income populations served by eligible entities as 

19 is determined by the Secretary to be feasible; 

20 ‘‘(D) a comparison of the planned uses of 

21 funds for each State and the actual uses of the 

22 funds; 

23 ‘‘(E) a summary of each State’s perform24 ance results, and the results for the eligible en-
35

•S 1786 RS 

1 tities, as collected and submitted by the States 

2 in accordance with subsection (a)(2); and 

3 ‘‘(F) any additional information that the 

4 Secretary considers to be appropriate to carry 

5 out this subtitle, if the Secretary informs the 

6 States of the need for such additional informa7 tion and allows a reasonable period of time for 

8 the States to collect and provide the informa9 tion. 

10 ‘‘(4) SUBMISSION.—The Secretary shall submit 

11 to the Committee on Education and the Workforce 

12 of the House of Representatives and the Committee 

13 on Health, Education, Labor, and Pensions of the 

14 Senate the report described in paragraph (2), and 

15 any comments the Secretary may have with respect 

16 to such report. The report shall include definitions 

17 of direct and administrative costs used by the De18 partment of Health and Human Services for pro19 grams funded under this subtitle. 

20 ‘‘(5) COSTS.—Of the funds reserved under sec21 tion 674(b)(3), not more than $500,000 shall be 

22 available to carry out the reporting requirements 

23 contained in paragraph (3).’’. 
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1 SEC. 114. LIMITATIONS ON USE OF FUNDS. 

2 Section 678F(c)(1) of the Community Services Block 

3 Grant Act (42 U.S.C. 9918(c)(1)) is amended by inserting 

4 ‘‘religion,’’ after ‘‘race,’’. 

5 SEC. 115. OPERATIONAL RULE. 

6 Section 679(a) of the Community Services Block 

7 Grant Act (42 U.S.C. 9920(a)) is amended by inserting 

8 ‘‘and such organization meets the requirements of this 

9 subtitle’’ before the first period; 

10 SEC. 116. DISCRETIONARY AUTHORITY OF THE SECRETARY. 

11 Section 680 of the Community Services Block Grant 

12 Act (42 U.S.C. 9921) is amended—

13 (1) in subsection (a)—

14 (A) in paragraph (2)—

15 (i) by redesignating subparagraphs 

16 (B) through (E) as subparagraph (D) 

17 through (G), respectively; 

18 (ii) by striking subparagraph (A) and 

19 inserting the following: 

20 ‘‘(A) ECONOMIC DEVELOPMENT ACTIVI21 TIES.—The Secretary shall make grants de22 scribed in paragraph (1) on a competitive basis 

23 to private, nonprofit organizations that are 

24 community development corporations to provide 

25 technical and financial assistance for economic 

26 development activities, including business, eco-
37

•S 1786 RS 

1 nomic, and community development projects, 

2 designed to address the economic needs of low3 income individuals and families by creating em4 ployment and business development opportuni5 ties. Such assistance shall include—

6 ‘‘(i) long term loans (up to 15 years) 

7 or investments for private business enter8 prises; 

9 ‘‘(ii) providing capital to businesses 

10 owned by community development corpora11 tions; and 

12 ‘‘(iii) marketing and management as13 sistance for businesses providing jobs and 

14 business opportunities to low income indi15 viduals. 

16 ‘‘(B) FEDERAL INTEREST.—

17 ‘‘(i) IN GENERAL.—The Secretary 

18 shall establish procedures that permit a 

19 grantee who receives funds under a grant 

20 to carry out this paragraph, or intangible 

21 assets acquired with such funds, to become 

22 the sole owner of the funds or assets be23 fore the end of the 12-year period begin24 ning at the end of the fiscal year for which 

25 the grant is made. 
38

•S 1786 RS 

1 ‘‘(ii) CONDITIONS.—To be eligible to 

2 become the sole owner, the grantee shall 

3 agree—

4 ‘‘(I) to use the funds or assets 

5 for the purposes and uses for which 

6 the grant was made, or purposes and 

7 uses consistent with this subtitle, dur8 ing and after the 12-year period de9 scribed in clause (i), whether or not 

10 the grantee continues to be supported 

11 by Federal funds; and 

12 ‘‘(II) that, when the grantee no 

13 longer needs the funds or assets for 

14 purposes and uses described in sub15 clause (I), the grantee shall request 

16 instructions from the Secretary about 

17 the disposition of the funds or assets. 

18 ‘‘(iii) ENCUMBERING.—The grantee 

19 may not encumber the assets without the 

20 approval of the Secretary. 

21 ‘‘(C) ADMINISTRATIVE REQUIREMENTS.—

22 In a case in which an eligible project under 

23 grant made under this section cannot, for good 

24 cause, be implemented, the Secretary shall es25 tablish a policy to permit the substitution of 
39

•S 1786 RS 

1 other eligible projects. Such policy shall require 

2 that such project have the same impact area, 

3 the same goals, and the same objectives as the 

4 original project and outcomes that are substan5 tially the same as the original project.’’; 

6 (iii) in subparagraph (E) (as so redes7 ignated), by striking ‘‘community’’ and in8 serting ‘‘service area’’; and 

9 (iv) in subparagraph (G) (as so redes10 ignated), by striking ‘‘1 percent’’ and in11 serting ‘‘2 percent’’; and 

12 (B) in paragraph (3)(B), by striking ‘‘com13 munity’’ and inserting ‘‘water and waste 

14 water’’; and 

15 (C) in paragraph (4), by striking ‘‘indi16 vidual and families’’ and inserting ‘‘individual 

17 and their families’’; and 

18 (2) in subsection (c), by striking ‘‘Labor and 

19 Human Resources’’ and inserting ‘‘Health, Edu20 cation, Labor, and Pensions’’. 

21 SEC. 117. COMMUNITY FOOD AND NUTRITION PROGRAMS. 

22 Section 681 of the Community Services Block Grant 

23 Act (42 U.S.C. 9922) is amended—
40

•S 1786 RS 

1 (1) in subsection (c), by striking ‘‘Labor and 

2 Human Resources’’ and inserting ‘‘Health, Edu3 cation, Labor, and Pensions’’; and 

4 (2) in subsection (d), by striking ‘‘1999 through 

5 2003’’ and inserting ‘‘2004 through 2009’’. 

6 SEC. 118. NATIONAL OR REGIONAL PROGRAMS DESIGNED 

7 TO PROVIDE INSTRUCTIONAL ACTIVITIES 

8 FOR LOW-INCOME YOUTH. 

9 Section 682 of the Community Services Block Grant 

10 Act (42 U.S.C. 9923) is amended—

11 (1) in subsection (b)(2), by striking ‘‘or treat12 ment’’; and 

13 (2) in subsection (g), by striking ‘‘$15,000,000 

14 for each of fiscal years 1999 through 2003’’ and in15 serting ‘‘$18,000,000 for each of fiscal years 2004 

16 through 2009’’. 

17 SEC. 119. SHORT TITLE AND CONFORMING AMENDMENTS. 

18 (a) IN GENERAL.—Section 671 of the Community 

19 Services Block Grant Act (42 U.S.C. 9901 note) is amend20 ed by striking ‘‘Community Services Block Grant Act’’ 

21 and inserting ‘‘Poverty Reduction and Prevention Act’’. 

22 (b) CONFORMING AMENDMENTS.—

23 (1) COMMUNITY SERVICES BLOCK GRANT

24 ACT.—The heading for subtitle B of title VI of the 
41

•S 1786 RS 

1 Omnibus Budget Reconciliation Act of 1981 is 

2 amended to read as follows: 

3 ‘‘Subtitle B—Poverty Reduction 

4 and Prevention Program’’. 

5 (2) OTHER PROVISIONS OF LAW.—The fol6 lowing provisions of law are each amended by strik7 ing ‘‘Community Services Block Grant Act’’ each 

8 place that such appears and inserting ‘‘Poverty Re9 duction and Prevention Act’’: 

10 (A) Section 307(a)(3)(A) of the Consoli11 dated Farm and Rural Development Act (7 

12 U.S.C. 1927(a)(3)(A)).

13 (B) Section 5(c)(1) of the Food Stamp Act 

14 of 1977 (7 U.S.C. 2014(c)(1)). 

15 (C) Section 201A(7) of the Emergency 

16 Food Assistance Act of 1983 (7 U.S.C. 

17 7501(7)). 

18 (D) Section 172(13) of the Program for 

19 Investment in Microentrepreneurs Act of 1999 

20 (15 U.S.C. 6901(13)). 

21 (E) Sections 201(b)(3), 435(o)(1)(A)(ii), 

22 and 435(o)(1)(B)(ii) of the Higher Education 

23 Act of 1965 (20 U.S.C. 1021(b)(3), 

24 1085(o)(1)(A)(ii), and 1085(o)(1)(B)(ii)). 
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•S 1786 RS 

1 (F) Section 131(b)(2) of the Carl D. Per2 kins Vocational and Applied Technology Edu3 cation Act (20 U.S.C. 2351(b)(2)). 

4 (G) Section 9109(33) of the Elementary 

5 and Secondary Education Act of 1965 (20 

6 U.S.C. 7801(33)). 

7 (H) Section 231(a)(2) of the Museum and 

8 Library Services Act (20 U.S.C. 9141(a)(2)). 

9 (I) Sections 101(36), 112(b)(8)(A)(vii), 

10 121(b)(1)(B)(x), and 501(b)(2)(O) of the 

11 Workforce Investment Act of 1998 (29 U.S.C. 

12 2801(36), 2822(b)(8)(A)(vii), and 

13 2841(b)(1)(B)(x), and 20 U.S.C. 

14 9271((b)(2)(O)). 

15 (J) Section 303(9) of the Early Learning 

16 Opportunities Act (20 U.S.C. 9402(9)). 

17 (K) Sections 6501(4)(B) and 6703(a)(2) 

18 of title 31, United States Code. 

19 (L) Section 549(c)(3)(B)(ii) of title 40, 

20 United States Code. 

21 (M) Section 317M(c)(3)(B)(ii) of the Pub22 lic Health Service Act (42 U.S.C. 247b23 14(c)(3)(B)(ii)). 

24 (N) Section 2110(c)(5) of the Social Secu25 rity Act (42 U.S.C. 1397jj(c)(5)). 
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•S 1786 RS 

1 (O) Sections 102(38), 203(b)(13), 213, 

2 306(a)(6)(C), and 503(b)(2) of the Older Amer3 icans Act of 1965 (42 U.S.C. 3002(38), 

4 3013(b)(13), 3020d, 3026(a)(6)(C), and 

5 3056a(b)(2)). 

6 (P) Sections 103(a)(6), 105(b)(2)(A), 

7 211(e)(1), and 421(6) of the Domestic Volun8 teer Service Act of 1973 (42 U.S.C. 4953(a)(6), 

9 4955(b)(2)(A), 5011(e)(1), and 5061(6)). 

10 (Q) Sections 2603(8) and 

11 2607B(e)(2)(B)(i) of the Low-Income Home 

12 Energy Assistance Act of 1981 (42 U.S.C. 

13 8622(8) and 8626b(e)(2)(B)(i)). 

14 (R) Sections 407(b)(2) and 408(a)(1)(C) 

15 of the Human Services Reauthorization of 1986 

16 (42 U.S.C. 9812a(b)(2) and 9925(a)(1)(C)). 

17 (S) Section 630(a) of the Community Eco18 nomic Development Act of 1981 (42 U.S.C. 

19 9819(a)). 

20 (T) Sections 158(b) and 178(i)(1) of the 

21 National and Community Service Act of 1990 

22 (42 U.S.C. 12618(b) and 12638(i)(1)). 

23 (U) The 5th unnumbered paragraph (relat24 ing to poverty line) of section 30401 of the 

25 Community Schools Youth Services and Super-
44

•S 1786 RS 

1 vision Grant Program Act of 1994 (42 U.S.C. 

2 13791). 

3 TITLE II—LOW-INCOME HOME 

4 ENERGY ASSISTANCE 

5 SEC. 201. SHORT TITLE. 

6 This title may be cited as the ‘‘Low-Income Home 

7 Energy Assistance Amendments of 2003’’. 

8 SEC. 202. REAUTHORIZATION. 

9 (a) IN GENERAL.—Section 2602(b) of the Low-In10 come Home Energy Assistance Act of 1981 (42 U.S.C. 

11 8621(b)) is amended in the first sentence by striking 

12 ‘‘such sums’’ and all that follows through the period and 

13 inserting ‘‘and $3,400,000,000 for each of fiscal years 

14 2004 through 2006, and such sums as may be necessary 

15 for each fiscal year thereafter.’’. 

16 (b) PROGRAM YEAR.—Section 2602(c) of the Low17 Income Home Energy Assistance Act of 1981 (42 U.S.C. 

18 8621(c)) is amended by inserting ‘‘authorized’’ after ‘‘pro19 grams and activities’’. 

20 (c) INCENTIVE PROGRAM FOR LEVERAGING NON21 FEDERAL RESOURCES.—Section 2602(d) of the Low-In22 come Home Energy Assistance Act of 1981 (42 U.S.C. 

23 8621(d)) is amended—
45

•S 1786 RS 

1 (1) in paragraph (1), by striking ‘‘1994 

2 through 2004’’ and inserting ‘‘2004 through 2010’’; 

3 and 

4 (2) in paragraph (2), ‘‘1994 through 2004’’ and 

5 inserting ‘‘2004 through 2010’’. 

6 SEC. 203. NATURAL DISASTERS AND OTHER EMERGENCIES. 

7 Section 2604(e) of the Low-Income Home Energy 

8 Assistance Act of 1981 (42 U.S.C. 8623(e)) is amended 

9 by adding at the end the following flush sentences: 

10 ‘‘Notwithstanding any other provision of this section, for 

11 purposes of making determinations under section 

12 2603(1)(C), if the Secretary determines that there is an 

13 increase of at least 20 percent in the cost of home energy 

14 over the previous 5-year average for a duration of a month 

15 or more in one or more States or regions, the Secretary 

16 shall declare an energy emergency in the affected area and 

17 shall make available funds as provided in this subsection. 

18 Notwithstanding any other provision of this section, for 

19 purposes of making such determinations, if the Secretary 

20 determines that the number of heating degree days or 

21 cooling days for a month was more than 100 above the 

22 30-year average in one or more States or regions, the Sec23 retary shall declare an energy emergency in the affected 

24 area and shall make available funds as provided in this 

25 subsection.’’. 
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•S 1786 RS 

1 SEC. 204. RESIDENTIAL ENERGY ASSISTANCE CHALLENGE 

2 OPTION. 

3 (a) EVALUATION.—The Comptroller General of the 

4 United States shall conduct an evaluation of the Residen5 tial Energy Assistance Challenge program described in 

6 section 2607B of the Low-Income Home Energy Assist7 ance Act of 1981 (42 U.S.C. 8626b). 

8 (b) REPORT.—Not later than 2 years after the date 

9 of enactment of this Act, the Comptroller General of the 

10 United States shall prepare and submit to the Committee 

11 on Education and the Workforce of the House of Rep12 resentatives and the Committee on Health, Education, 

13 Labor, and Pensions of the Senate a report containing—

14 (1) the findings resulting from the evaluation 

15 described in subsection (a); and 

16 (2) the State evaluations described in para17 graphs (1) and (2) of section 2607B(b) of the Low18 Income Home Energy Assistance Act of 1981 (42 

19 U.S.C. 8626b(b)). 

20 SEC. 205. REPORT TO CONGRESS. 

21 (a) STUDY.—

22 (1) IN GENERAL.—The Secretary of Health and 

23 Human Services shall conduct a study on the Low24 Income Home Energy Assistance Act of 1981 (42 

25 U.S.C. 8621 et seq.) 
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•S 1786 RS 

1 (2) REQUIREMENTS.—In conducting the study 

2 under subparagraph (A), the Secretary of Health 

3 and Human Services shall— 

4 (A) evaluate the performance of the Low5 Income Home Energy Assistance Program, in6 cluding who the program is serving, the benefits 

7 of the program to recipients, and the ability of 

8 the program to reduce utility arrearage and 

9 shut-offs among low-income households; 

10 (B) develop a protocol for States to collect 

11 information from energy distribution compa12 nies, including electric, natural gas, heating oil, 

13 and propane companies, concerning the fol14 lowing residential customer statistics— 

15 (i) the number of accounts certified as 

16 eligible for energy assistance; 

17 (ii) the number of accounts certified 

18 as eligible for energy assistance and that 

19 are past due; 

20 (iii) the total revenue owed on ac21 counts eligible for energy assistance and 

22 that are past due; 

23 (iv) the number of disconnection no24 tices issued on accounts eligible for energy 

25 assistance; 
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•S 1786 RS 

1 (v) the number of disconnections for 

2 nonpayment; 

3 (vi) the number of reconnections; 

4 (vii) the number of accounts eligible 

5 for energy assistance and determined 

6 uncollectible; and 

7 (viii) the energy burden of accounts 

8 eligible for energy assistance; 

9 (C) analyze the public health and safety 

10 threats of hypothermia and hyperthermia due 

11 to a lack of home heating or home cooling, in12 cluding mortality, morbidity, and decrease in 

13 caloric intake; 

14 (D) analyze the affect of the standard of 

15 housing and housing age on energy costs to 

16 low-income households; 

17 (E) evaluate regional difference in cost-of18 living and the ability of low-income families to 

19 meet home energy requirements; and 

20 (F) determine the programmatic impacts 

21 of using 60 percent of State median income to 

22 determine low-income households. 

23 (b) REPORT.—Not later than 24 months after the 

24 date of enactment of this Act, the Secretary of Health and 

25 Human Services shall submit to Congress a report con-
49

•S 1786 RS 

1 taining the results of the study conducted under sub2 section (a). 

3 (c) DEFINITION.—In this section, the term ‘‘State’’ 

4 means each of the 50 States and the District of Columbia. 

5 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated to carry out this sub7 section such sums as may be necessary for each of fiscal 

8 year 2004 and 2005. 

9 (e) CONTRACTS.—Using amounts appropriated under 

10 subsection (d), the Secretary of Health and Human Serv11 ices may enter into contracts or jointly financed coopera12 tive agreements or interagency agreements with States 

13 and public agencies and private nonprofit organizations to 

14 conduct the study under subsection (a). 

15 TITLE III—ASSETS FOR 

16 INDEPENDENCE ACT 

17 SEC. 301. SHORT TITLE. 

18 This title may be cited as the ‘‘Assets for Independ19 ence Reauthorization Act’’. 

20 SEC. 302. REAUTHORIZATION OF THE ASSETS FOR INDE21 PENDENCE ACT. 

22 (a) DEFINITION OF QUALIFIED EXPENSES.—Section 

23 404(8) of the Assets for Independence Act (42 U.S.C. 604 

24 note) is amended—

25 (1) in subparagraph (A)—
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•S 1786 RS 

1 (A) in the matter preceding clause (i), by 

2 inserting ‘‘or to a vendor following approval by 

3 a qualified entity upon submission of an ap4 proved qualified education purchase plan’’ be5 fore the period; and 

6 (B) by adding at the end the following: 

7 ‘‘(iii) QUALIFIED EDUCATION PUR8 CHASE PLAN.—The term ‘qualified edu9 cation purchase plan’ means a document 

10 that explains the education item to be pur11 chased which—

12 ‘‘(I) is approved by a qualified 

13 entity; and 

14 ‘‘(II) includes a description of the 

15 good to be purchased.’’; 

16 (2) in subparagraph (D), by striking ‘‘eligible’’; 

17 and 

18 (3) by adding at the end the following: 

19 ‘‘(E) SAVING IN IDAS FOR DEPENDENTS.—

20 Amounts paid to an individual development ac21 count established for the benefit of a dependent 

22 (as such terms is defined for purposes of sub23 paragraph (D)(ii)) of an eligible individual for 

24 the purpose of post-secondary education.’’. 
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•S 1786 RS 

1 (b) REPEAL OF PROVISION.—Section 405 of the As2 sets for Independence Act (42 U.S.C. 604 note) is amend3 ed by striking subsection (g). 

4 (c) RESERVE FUND.—Section 407 of the Assets for 

5 Independence Act (42 U.S.C. 604 note) is amended—

6 (1) in subsection (b)—

7 (A) in paragraph (1)—

8 (i) by redesignating subparagraphs 

9 (A) and (B) as subparagraphs (B) and 

10 (C), respectively; and

11 (ii) by inserting before subparagraph 

12 (B) (as so redesignated) the following: 

13 ‘‘(A) all grant funds provided to the quali14 fied entity from the Secretary for the purpose 

15 of the demonstration project as described under 

16 subsection (c)(1);’’ and 

17 (B) by adding at the end the following: 

18 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

19 paragraph (1)(A) shall be construed to preclude a 

20 qualified entity from depositing other demonstration 

21 project funds into the Reserve Fund.’’; and 

22 (2) in subsection (d), by inserting ‘‘the date 

23 that is 12 months after’’ after ‘‘upon the’’. 
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•S 1786 RS 

1 (d) USE OF AMOUNTS.—Section 407(c) of the Assets 

2 for Independence Act (42 U.S.C. 604 note) is amended 

3 by adding at the end the following: 

4 ‘‘(4) USE OF NONFEDERAL FUNDS.—

5 ‘‘(A) IN GENERAL.—Notwithstanding para6 graph (3), not more than 20 percent of the 

7 amount of non-Federal funds committed to a 

8 project as matching contributions in accordance 

9 with the application submitted by the qualified 

10 entity under section 405(c)(4) shall be used by 

11 the qualified entity for the purposes described 

12 in subparagraphs (A), (C), and (D) of para13 graph (1). 

14 ‘‘(B) PRIORITY.—In awarding grants 

15 under section 406(b), the Secretary shall give 

16 priority to qualified entities that submit appli17 cations that, with respect to the commitment of 

18 non-Federal funds under section 5(c)(4), pro19 vide assurances that are not to exceed 15 per20 cent of such non-Federal funds will be used by 

21 the qualified entity for the purposes described 

22 in subparagraphs (A), (C), and (D) of para23 graph (1).’’. 
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1 (e) ELIGIBILITY FOR PARTICIPATION.—Section 

2 408(a)(1) of the Assets for Independence Act (42 U.S.C. 

3 604 note) is amended to read as follows: 

4 ‘‘(1) INCOME TEST.—The—

5 ‘‘(A) gross income of the household is—

6 ‘‘(i) equal to or less than 200 percent 

7 of the poverty line (as determined by the 

8 Office of Management and Budget); 

9 ‘‘(ii) the earned income amount de10 scribed in section 32 of the Internal Rev11 enue Code of 1986 (taking into account 

12 the size of the household); or 

13 ‘‘(iii) equal to or less than 80 percent 

14 of the Area Median Income (as determined 

15 by the Department of Housing and Urban 

16 Development); or 

17 ‘‘(B) the modified adjusted gross income of 

18 the household for the previous year does not ex19 ceed $18,000 for an individual filer, $30,000 

20 for a head of household, or $38,000 for a joint 

21 filer.’’. 

22 (f) DEPOSITS BY QUALIFIED ENTITIES.—Section 

23 410 of the Assets for Independence Act (42 U.S.C. 604 

24 note) is amended—
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1 (1) in subsection (a), by striking ‘‘qualified en2 tity—’’ and all that follows through the end and in3 serting the following: ‘‘qualified entity, a matching 

4 contribution of not less than $0.50 and not more 

5 than $4 for every $1 of earned income (as defined 

6 in section 911(d)(2) of Internal Revenue Code of 

7 1986) deposited in the account and interest earned 

8 on that account by a project participant during that 

9 period. Matching contributions shall be made—

10 ‘‘(1) from the non-Federal funds described in 

11 section 405(c)(4); and 

12 ‘‘(2) from the grant made under section 406(b); 

13 ‘‘based on a ratio relating to the sources of funds de14 scribed in paragraph (1) and (2) as determined by the 

15 qualified entity.’’; 

16 (2) by redesignating subsections (b) through (e) 

17 as subsections (c) through (f), respectively; and 

18 (3) by inserting after subsection (a), the fol19 lowing: 

20 ‘‘(b) USE OF EXCESS INTEREST ON MATCHING

21 FUNDS EARNED ON THE RESERVE FUND.—Interest that 

22 accrues on the matching funds earned and held in the Re23 serve Fund, over and above the interest required to match 

24 an individuals deposits and interest earned in the indi25 vidual development account, shall be used by the qualified
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1 entity to fund existing individual development accounts or 

2 additional individual development accounts.’’. 

3 (g) AUTHORIZATION OF APPROPRIATIONS.—Section 

4 416 of the Assets for Independence Act (42 U.S.C. 604 

5 note) is amended by striking ‘‘and 2003’’ and inserting 

6 ‘‘and 2003, $25,000,000 for fiscal year 2004, and such 

7 sums as may be necessary for each of fiscal years 2005 

8 through 2008,’’. 

9 (h) APPLICATION OF AMENDMENTS.—In admin10 istering the Assets for Independence Act (42 U.S.C. 604 

11 note), the Secretary of Health and Human Services may 

12 apply the amendments made by this section to individual 

13 account holders and entities that received grants under 

14 such Act either before or after the date of enactment of 

15 this Act.

16 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

18 ‘‘Poverty Reduction and Prevention Act’’. 

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

20 Act is as follows:

Sec. 1. Short title; table of contents. 

TITLE I—COMMUNITY SERVICES BLOCK GRANT ACT 

Sec. 101. Purposes. 

Sec. 102. Definitions. 

Sec. 103. Authorization of appropriations. 

Sec. 104. Establishment of program. 

Sec. 105. Use of funds. 

Sec. 106. Application and plan. 

Sec. 107. Designation of eligible entities in underserved areas. 

Sec. 108. Tripartite boards. 
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Sec. 109. Training, technical assistance, and other activities. 

Sec. 110. Monitoring. 

Sec. 111. Corrective action; termination and reduction of funding. 

Sec. 112. Fiscal controls, audits, and withholding. 

Sec. 113. Accountability and reporting requirement. 

Sec. 114. Limitations on use of funds. 

Sec. 115. Operational rule. 

Sec. 116. Discretionary authority of the Secretary. 

Sec. 117. Community food and nutrition programs. 

Sec. 118. National or regional programs designed to provide instructional activities for low-income youth. 

TITLE II—LOW-INCOME HOME ENERGY ASSISTANCE 

Sec. 201. Short title. 

Sec. 202. Reauthorization. 

Sec. 203. Natural disasters and other emergencies. 

Sec. 204. Residential Energy Assistance Challenge option. 

Sec. 205. Report to Congress. 

TITLE III—ASSETS FOR INDEPENDENCE ACT 

Sec. 301. Short title. 

Sec. 302. Reauthorization of the Assets for Independence Act.

1 TITLE I—COMMUNITY SERVICES 

2 BLOCK GRANT ACT 

3 SEC. 101. PURPOSES. 

4 Section 672 of the Community Services Block Grant 

5 Act (42 U.S.C. 9901) is amended to read as follows: 

6 ‘‘SEC. 672. PURPOSES. 

7 ‘‘The purpose of this subtitle is to reduce poverty—

8 ‘‘(1) by strengthening and coordinating local ef9 forts to expand opportunities for individuals and 

10 families to become economically self-sufficient and to 

11 improve and revitalize the communities in which low12 income Americans live, by providing resources to 

13 States for support of local eligible entities and their 

14 partners to—
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1 ‘‘(A) plan, coordinate, and mobilize a broad 

2 range of Federal, State, local, and private assist3 ance or investment in such a manner as to use 

4 these resources effectively to reduce poverty and 

5 in initiatives that are responsive to specific local 

6 needs and conditions; 

7 ‘‘(B) organize multiple services that meet 

8 the needs of low-income families and individuals, 

9 especially low-wage workers and their families, 

10 and that assist them in developing the assets and 

11 skills needed to become self sustaining while en12 suring that these services are provided efficiently, 

13 in appropriate combinations, and in effective se14 quence; and 

15 ‘‘(C) design and implement comprehensive 

16 approaches to assist individuals transitioning 

17 from the program of block grants to States for 

18 temporary assistance for needy families under 

19 part A of title IV of the Social Security Act (42 

20 U.S.C. 601 et seq.) to work; 

21 ‘‘(2) by improving and revitalizing the commu22 nities in which low-income Americans live by pro23 viding resources to—

24 ‘‘(A) broaden the financial resource base of 

25 initiatives and projects directed to the elimi-
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1 nation of poverty and the re-development of the 

2 low-income community, including partnerships 

3 with non-governmental and governmental insti4 tutions to develop the community assets and 

5 services that reduce poverty, such as—

6 ‘‘(i) other private, charitable, neighbor7 hood-based, and religious organizations; 

8 ‘‘(ii) individual citizens, and busi9 nesses, labor, and professional groups, who 

10 are able to influence the quantity and qual11 ity of opportunities and services for the 

12 poor; and 

13 ‘‘(iii) local government leadership; and 

14 ‘‘(B) coordinate or create community-wide 

15 assets and services that will have a significant, 

16 measurable impact on the causes of poverty in 

17 the community and that will help families and 

18 individuals to achieve economic self-sufficiency, 

19 and test innovative, community-based ap20 proaches to attacking the causes and effects of 

21 poverty and of community breakdown, includ22 ing— 

23 ‘‘(i) innovative initiatives to prevent 

24 and reverse loss of investment, jobs, public 
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1 services, and infrastructure in low- and 

2 moderate-income communities; and 

3 ‘‘(ii) innovative partnerships to de4 velop the assets and services that reduce 

5 poverty, as provided for in subparagraph 

6 (A); and 

7 ‘‘(3) by ensuring maximum participation of resi8 dents of low-income communities and of members of 

9 the groups served by programs under this subtitle in 

10 guiding the eligible entities and in their programs 

11 funded under this subtitle to ameliorate the particular 

12 problems and needs of low-income residents of their 

13 communities and to develop the permanent social and 

14 economic assets of the low-income community in order 

15 to reduce the incidence of poverty.’’. 

16 SEC. 102. DEFINITIONS. 

17 Section 673 of the Community Services Block Grant 

18 Act (42 U.S.C. 9902) is amended—

19 (1) in paragraph (1)(A)(ii), by striking ‘‘or 

20 other mechanism’’; and 

21 (2) in paragraph (2)—

22 (A) in the first sentence—

23 (i) by striking ‘‘Office of Management 

24 and Budget’’ and inserting ‘‘Department of 

25 Health and Human Services’’; and
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1 (ii) by inserting before the period the 

2 following: ‘‘and increased, as the Secretary 

3 determines appropriate, to take into ac4 count higher costs-of-living for a State’’; 

5 and 

6 (B) by striking the last sentence and insert7 ing the following: ‘‘Whenever a State determines 

8 that it has served the objectives of the block grant 

9 program established under this subtitle, the State 

10 may revise the poverty line, while placing a pri11 ority in serving those who are most in need, so 

12 that 125 percent of the official poverty line is the 

13 minimum level that a State shall be permitted to 

14 set as its maximum eligibility requirement and 

15 60 percent of the State’s median income is the 

16 maximum level that a State shall be permitted 

17 to set as its maximum eligibility requirement. 

18 The State may revise the poverty line only upon 

19 a determination that eligible entities are pro20 viding, coordinating, or partnering with means21 tested support services for low and moderate-in22 come individuals and families above the official 

23 poverty line. Nothing in this paragraph shall be 

24 construed to prevent eligible entities from con25 tinuing to support individuals and families dur-
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1 ing their transition from program eligibility to 

2 achieve specific goals for their economic security 

3 and long-term self-sufficiency as long as priority 

4 is given to serving the lowest income individuals 

5 who seek services.’’. 

6 SEC. 103. AUTHORIZATION OF APPROPRIATIONS. 

7 Section 674 of the Community Services Block Grant 

8 Act (42 U.S.C. 9903) is amended—

9 (1) in subsection (a), by striking ‘‘1999 through 

10 2003’’ and inserting ‘‘2004 through 2009’’; and 

11 (2) in subsection (b)(2)—

12 (A) in subparagraph (A), by striking ‘‘or 

13 associations’’ and inserting ‘‘and associations’’; 

14 and 

15 (B) in subparagraph (B)—

(i) by striking ‘‘1 16 ⁄2 of the remainder’’ 

and inserting ‘‘not less than 1 17 ⁄2 of the re18 mainder’’; and 

19 (ii) by striking ‘‘evaluation and’’ and 

20 inserting ‘‘evaluation and training and 

21 technical assistance activities and’’. 

22 SEC. 104. ESTABLISHMENT OF PROGRAM. 

23 Section 675 of the Community Services Block Grant 

24 Act (42 U.S.C. 9904) is amended by striking ‘‘through the 

25 program’’ and all that follows through the period and inVerDate jul 14 2003 09:56 Nov 25, 2003 Jkt 019200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6203 E:\BILLS\S1786.RS S1786
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1 serting ‘‘to States for the purpose of ameliorating the causes 

2 of poverty and the conditions caused by poverty in their 

3 communities.’’. 

4 SEC. 105. USE OF FUNDS. 

5 Section 675C(b) of the Community Services Block 

6 Grant Act (42 U.S.C. 9907(b)) is amended—

7 (1) in paragraph (1)—

8 (A) in subparagraph (A), by striking ‘‘enti9 ties in need of such training and assistance’’ and 

10 inserting ‘‘eligible entities and their statewide 

11 associations that strengthens their managerial or 

12 programmatic capabilities to reduce poverty’’; 

13 and 

14 (B) by striking subparagraphs (B) through 

15 (H) and inserting the following: 

16 ‘‘(B) supporting statewide coordination and 

17 communication among eligible entities and 

18 State-operated or supported programs and serv19 ices, and other locally-operated programs and 

20 services targeted to low-income individuals and 

21 their children and families, so as to ensure that 

22 local eligible entities’ services are integrated in a 

23 manner that allows such low-income individual 

24 and their families to have access to as many 

25 sources of assistance as are appropriate to sup-
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1 port their progress to economic stability and self2 sufficiency; 

3 ‘‘(C) supporting innovative partnerships, 

4 programs, and activities conducted by commu5 nity action agencies and their partners includ6 ing other community-based organizations to 

7 eliminate poverty, promote self-sufficiency, and 

8 promote community revitalization, including 

9 asset-building programs for low-income individ10 uals, such as programs supporting individual 

11 development accounts, and home or business 

12 ownership; 

13 ‘‘(D) analyzing the distribution of funds 

14 made available under this subtitle within the 

15 State to determine if such funds have been tar16 geted to the areas of greatest need; 

17 ‘‘(E) supporting State charity tax credits as 

18 described in subsection (c); 

19 ‘‘(F) supporting the identification of exem20 plary eligible entities or programs as Centers of 

21 Innovation and methodology for disseminating 

22 innovative programs and other best practices 

23 from those agencies statewide; 

24 ‘‘(G) supporting the development of eligible 

25 entities’ partnerships with local law enforcement 
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1 agencies, local housing authorities, private foun2 dations, and other public and private partners; 

3 and 

4 ‘‘(H) supporting other activities, consistent 

5 with the purposes of this subtitle.’’; and 

6 (2) in paragraph (2), by adding at the end the 

7 following: ‘‘The State shall also ensure that all funds 

8 distributed under subsection (a) are not used for ex9 cessive administrative expenses and that all funds 

10 distributed under such subsection used for salaries by 

11 a local entity are fair and equitable. The State has 

12 the authority to determine the appropriate level of 

13 funds distributed under subsection (a) that an eligible 

14 entity shall use for administrative expenses.’’. 

15 SEC. 106. APPLICATION AND PLAN. 

16 Section 676 of the Community Services Block Grant 

17 Act (42 U.S.C. 9908) is amended—

18 (1) in subsection (b)—

19 (A) in the matter preceding paragraph (1), 

20 by inserting ‘‘for the Secretary’s approval’’ after 

21 ‘‘to the Secretary’’; 

22 (B) by striking paragraphs (1) through (6) 

23 and inserting the following: 

24 ‘‘(1) an assurance that funds made available 

25 through the grant or allotment will be used—
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1 ‘‘(A) to support activities directly and 

2 through eligible entities that are designed to ex3 pand opportunities for and assist low-income in4 dividuals and their families (including low-in5 come workers) to become self-sufficient, including 

6 low-income workers, families, and individuals 

7 receiving assistance under part A of title IV of 

8 the Social Security Act (42 U.S.C. 601 et seq.), 

9 homeless families and individuals, migrant or 

10 seasonal farmworkers, and elderly low-income 

11 individuals and families, and a description of 

12 how such activities will enable the families and 

13 individuals—

14 ‘‘(i) to remove obstacles and solve prob15 lems that block the achievement of self-suffi16 ciency by organizing and coordinating sup17 port for those served under paragraph (3); 

18 ‘‘(ii) to secure and retain employment 

19 that provides adequate income with essen20 tial benefits; 

21 ‘‘(iii) to attain an adequate education, 

22 with particular attention toward improving 

23 literacy and communications and technical 

24 skills of the low-income families in the com25 munities involved; 
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1 ‘‘(iv) to make better use of available in2 come and build household assets; 

3 ‘‘(v) to obtain and maintain adequate 

4 housing and a suitable living environment; 

5 ‘‘(vi) to obtain assistance that is need6 ed to resolve family emergencies and indi7 vidual needs, to prevent further hardships, 

8 and to secure economic independence; and 

9 ‘‘(vii) to participate fully in the public 

10 affairs and management of their commu11 nities and the governance of eligible entities; 

12 and 

13 ‘‘(B) to make more effective use of, and to 

14 coordinate with, other programs related to the 

15 purposes of this subtitle (including State welfare 

16 reform efforts); 

17 ‘‘(2) a description of how the State intends to 

18 use discretionary funds made available from the re19 mainder of the grant or allotment described in section 

20 675C(b) in accordance with this subtitle, including a 

21 description of how the State will support innovative 

22 community-based initiatives of eligible entities and 

23 their partners related to the purposes of this subtitle; 

24 ‘‘(3) an assurance that the State has integrated 

25 programs of general relevance in its plan, to the ex-
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1 tent appropriate to the needs of low-income commu2 nities served by the eligible entities, including a de3 scription of innovative community and neighborhood4 based initiatives such as—

5 ‘‘(A) initiatives with the goal of strength6 ening families and encouraging effective par7 enting, including fatherhood initiatives; 

8 ‘‘(B) initiatives to assist those moving from 

9 welfare to work to obtain jobs at decent wages 

10 with benefits, including those low-income indi11 viduals and their families who are attempting to 

12 transition off a State program carried out under 

13 part A of title IV of the Social Security Act (42 

14 U.S.C. 601 et seq.); 

15 ‘‘(C) programs for the establishment of vio16 lence-free zones that would involve youth develop17 ment and intervention models that promote 

18 youth success (such as models involving youth 

19 mediation, youth mentoring, life skills training, 

20 job creation, and entrepreneurship programs); 

21 ‘‘(D) family literacy initiatives; 

22 ‘‘(E) initiatives to increase the development 

23 of household assets of individuals such as indi24 vidual development accounts and homeownership 

25 opportunities; 
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1 ‘‘(F) public and private partnerships to fos2 ter community development, affordable housing, 

3 job creation, and other means of building the as4 sets of low-income communities; 

5 ‘‘(G) partnerships with local law enforce6 ment agencies, which may include participation 

7 in community policing, and activities to assist 

8 community residents and public safety officials 

9 in the event of emergencies, including threats to 

10 national security; 

11 ‘‘(H) initiatives to improve economic condi12 tions and mobilize new resources in rural areas 

13 and other at-risk areas to eliminate obstacles to 

14 the self sufficiency of families and individuals in 

15 those communities; 

16 ‘‘(I) initiatives to help reduce the concentra17 tion of poverty in cities and inner suburbs and 

18 provide economic opportunities for individuals 

19 and families in those areas; and 

20 ‘‘(J) partnerships with nonprofit or commu21 nity-based organizations that demonstrate effec22 tiveness in child abuse prevention, including 

23 with programs that are school-based and that 

24 focus on adolescent victims, and victimizers; 
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1 ‘‘(4) an assurance that the State will provide in2 formation, including—

3 ‘‘(A) a description of the State measurement 

4 system and results for the performance goals es5 tablished under section 678E(a)(1)(C); 

6 ‘‘(B) a description of the service delivery 

7 system, for services provided or coordinated with 

8 funds made available through grants made under 

9 section 675C(a), targeted to low-income individ10 uals and families in communities within the 

11 State; 

12 ‘‘(C) a description of how linkages will be 

13 developed to fill identified gaps in the services, 

14 through the provision of information, referrals, 

15 case management, and followup consultations, 

16 and to support mobilization of new resources 

17 and partnerships; 

18 ‘‘(D) a description of how funds made 

19 available through grants made under section 

20 675C(a) will be coordinated with other public 

21 and private resources; and 

22 ‘‘(E) a description of how the local entity 

23 will use the funds to support innovative commu24 nity and neighborhood-based initiatives related 

25 to the purposes of this subtitle;
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1 ‘‘(5) an assurance that eligible entities in the 

2 State will provide, on an emergency basis, for the 

3 provision of such supplies and services, nutritious 

4 foods, and related services, as may be necessary to 

5 counteract conditions of starvation and malnutrition 

6 among low-income individuals; 

7 ‘‘(6) an assurance that the State has, to avoid 

8 duplication of such services, and to ensure that pro9 gram gaps are addressed, identified and coordinated 

10 with eligible entity programs, with State and local 

11 agencies, and with programs that assist low-income 

12 individuals and their families, including— 

13 ‘‘(A) programs carried out under part A of 

14 title IV of the Social Security Act (42 U.S.C. 

15 601 et seq.), the Workforce Investment Act of 

16 1998 (29 U.S.C. 2801 et seq.), and other pro17 grams designed to coordinate work-related sup18 portive services for families; 

19 ‘‘(B) programs for expanding housing op20 portunities, reducing homelessness, and devel21 oping community investment projects; 

22 ‘‘(C) education programs, including those 

23 for preschool and school-aged children and for 

24 adults to obtain an adequate education; and 
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1 ‘‘(D) programs designed to support youth, 

2 the homeless, migrants, senior citizens, and indi3 viduals with disabilities, including programs 

4 under the Low-Income Home Energy Assistance 

5 Act of 1981 (42 U.S.C. 8621 et seq.);’’; 

6 (C) in paragraph (12)— 

7 (i) by striking ‘‘not later than fiscal 

8 year 2001’’ and inserting ‘‘annually’’; and 

9 (ii) by striking ‘‘and’’ at the end; 

10 (D) in paragraph (13), by striking the pe11 riod and inserting ‘‘in sufficient detail to permit 

12 verification; and’’; and 

13 (E) by adding at the end the following: 

14 ‘‘(14) beginning with fiscal year 2006, and in 

15 each fiscal year thereafter, an assurance that the 

16 State is using the procedures described in section 

17 678B(b) to monitor eligible entities.’’; and 

18 (2) by striking subsection (f). 

19 SEC. 107. DESIGNATION OF ELIGIBLE ENTITIES IN UNDER20 SERVED AREAS. 

21 Section 676A(b) of the Community Services Block 

22 Grant Act (42 U.S.C. 9909(b)) is amended by adding at 

23 the end the following: ‘‘In granting such designation, the 

24 State shall deem private nonprofit eligible entities that are 

25 providing related services in the unserved area to be of dem-
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1 onstrated effectiveness, consistent with the needs identified 

2 by a community needs assessment.’’. 

3 SEC. 108. TRIPARTITE BOARDS. 

4 Section 676B(b) of the Community Services Block 

5 Grant Act (42 U.S.C. 9910(b)) is amended—

6 (1) by striking ‘‘through—’’ and all that follows 

7 through ‘‘a tripartite’’ in paragraph (1) and insert8 ing ‘‘through a tripartite’’; 

9 (2) by striking paragraph (2); 

10 (3) in subparagraph (C), by striking ‘‘; or’’ and 

11 inserting a period; and 

12 (4) by redesignating subparagraphs (A) through 

13 (C) as paragraph (1) through (3), respectively and re14 aligning the margins of such paragraphs accordingly. 

15 SEC. 109. TRAINING, TECHNICAL ASSISTANCE, AND OTHER 

16 ACTIVITIES. 

17 Section 678A of the Community Services Block Grant 

18 Act (42 U.S.C. 9913) is amended—

19 (1) in subsection (a)(1)—

20 (A) in subparagraph (A), by striking ‘‘cor21 rective action’’ and all that follows through ‘‘; 

22 and’’ and inserting ‘‘monitoring and such addi23 tional corrective actions as may be needed to 

24 strengthen the management and programmatic 

25 practices of eligible entities;’’; and 
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1 (B) by striking subparagraph (B) and in2 serting the following: 

3 ‘‘(B) for State and local performance re4 porting and program data collection activities 

5 related to programs carried out under this sub6 title; 

7 ‘‘(C) for the preparation of reports provided 

8 for in section 678E; 

9 ‘‘(D) for the development and promulgation 

10 of a common State Financial and Organiza11 tional Protocol that is required to be used by 

12 States under section 678B(b); and 

13 ‘‘(E) to distribute amounts in accordance 

14 with subsection (c).’’; 

15 (2) in subsection (b)(2), by striking ‘‘an ongoing 

16 procedure for obtaining input from the national and 

17 State networks of eligible entities’’ and inserting ‘‘a 

18 strategic plan for annual technical assistance devel19 oped in consultation with the national and State net20 works of eligible entities regarding their management 

21 support needs’’; and 

22 (3) in subsection (c)(1), by striking ‘‘manage23 ment information’’ and all that follows through the 

24 period, and inserting ‘‘improving management infor25 mation and reporting systems, measuring of program 
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1 results, ensuring responsiveness to identified local 

2 needs, and reporting and disseminating successful 

3 practices and initiatives.’’. 

4 SEC. 110. MONITORING. 

5 Section 678B of the Community Services Block Grant 

6 Act (42 U.S.C. 9914) is amended—

7 (1) in the section heading by striking ‘‘OF ELI8 GIBLE ENTITIES’’; 

9 (2) in subsection (a)—

10 (A) by striking the subsection heading and 

11 inserting ‘‘MONITORING OF ELIGIBLE ENTI12 TIES’’; 

13 (B) in paragraph (1)—

14 (i) by inserting ‘‘biennial’’ after ‘‘on15 site’’; and 

16 (ii) by striking ‘‘at least once during 

17 each 3 year period’’; 

18 (C) by striking paragraph (2); 

19 (D) by redesignating paragraphs (3) and 

20 (4) as paragraphs (2) and (3), respectively; and 

21 (E) in paragraph (2) (as so redesignated), 

22 by inserting ‘‘annual’’ after ‘‘Followup’’; 

23 (3) by redesignating subsections (b) and (c) as 

24 subsection (c) and (d), respectively;
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1 (4) by inserting after subsection (a) the fol2 lowing: 

3 ‘‘(b) FINANCIAL AND ORGANIZATIONAL ASSESSMENT

4 PROTOCOL.—Beginning in fiscal year 2006, States shall 

5 implement a financial and organizational assessment pro6 tocol to monitor and evaluate the compliance of eligible en7 tities with the financial and administrative requirements 

8 of this section. Such protocol shall incorporate the fiscal and 

9 organizational review procedures and standards appro10 priate to the management of Federal funds under this sub11 title and the governance of the eligible private non-profit 

12 corporations or other eligible entities. The Secretary shall 

13 require the protocol to be developed jointly by the States 

14 and eligible entities and shall assist States in developing 

15 appropriate training for personnel monitoring the uses of 

16 funds under this subtitle according to the requirements of 

17 this section.’’; and 

18 (5) in subsection (d), as so redesignated, by 

19 striking the last sentence and inserting the following: 

20 ‘‘The Secretary shall annually submit a report in21 cluding the results of the evaluations conducted under 

22 this subtitle, the State performance reports provided 

23 for pursuant to section 678E(a)(1)(C), and other ma24 terial as provided by section 678E(b)(2) to the Com25 mittee on Education and the Workforce of the House 
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1 of Representatives and the Committee on Health, 

2 Education, Labor, and Pensions of the Senate.’’. 

3 SEC. 111. CORRECTIVE ACTION; TERMINATION AND REDUC4 TION OF FUNDING. 

5 Section 678C of the Community Services Block Grant 

6 Act (42 U.S.C. 9915) is amended— 

7 (1) in subsection (a)—

8 (A) in paragraph (4), by striking ‘‘and’’ at 

9 the end; and 

10 (B) by striking paragraph (5) and inserting 

11 the following: 

12 ‘‘(5) if the eligible entity fails to correct the defi13 ciency, notify the entity—

14 ‘‘(A) that the State intends to initiate pro15 ceedings to terminate the designation of the enti16 ty as an eligible entity or to reduce, from the 

17 previous year, the proportion of the total funding 

18 received by the State under this subtitle that is 

19 allocated to the eligible entity; 

20 ‘‘(B) that the eligible entity has the right to 

21 a hearing on the record to determine if there is 

22 cause for such termination or reduction in fund23 ing, as defined in section 676(c), and that the re24 quest for a hearing must be made in writing to 
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1 the State within 30 days of receipt of the notice 

2 from the State; and 

3 ‘‘(C) of the legal basis for the proposed ter4 mination or reduction in funding, the factual 

5 findings on which the proposed termination or 

6 reduction in funding is based or a reference to 

7 specific findings in another document that form 

8 the basis for the proposed termination or reduc9 tion in funding (such as a reference to item 

10 numbers in an on-site review report or instru11 ment), and citation to any statutory provisions, 

12 agreements, regulations, or State plan; and 

13 ‘‘(6) if the eligible entity requests a hearing, con14 duct a hearing on the record to determine if there is 

15 cause for termination or a reduction in funding, as 

16 defined in section 676(c).’’; 

17 (2) in subsection (b)—

18 (A) by striking ‘‘review such a determina19 tion’’ and inserting ‘‘review and either approve, 

20 or disapprove and reverse, such a determina21 tion’’; 

22 (B) by striking ‘‘90 days’’ each place that 

23 it appears and inserting ‘‘30 days’’; and 

24 (C) by striking ‘‘90th day’’ and inserting 

25 ‘‘30th day’’; and 
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1 (3) in subsection (c), by adding at the end the 

2 following: ‘‘The Secretary shall continue to fund an 

3 eligible entity, in an amount equal to the same pro4 portion of total funds received by the State under this 

5 subtitle as was allocated to the eligible entity the pre6 vious year, until the Secretary approves, or dis7 approves and reverses, the determination of termi8 nation or reduction in funding with respect to the 

9 State.’’. 

10 SEC. 112. FISCAL CONTROLS, AUDITS, AND WITHHOLDING. 

11 Section 678D of the Community Services Block Grant 

12 Act (42 U.S.C. 9916) is amended—

13 (1) in subsection (a)(1)—

14 (A) in subparagraph (C), by striking ‘‘and’’ 

15 at the end; 

16 (B) by redesignating subparagraph (D) as 

17 subparagraph (F); and 

18 (C) by inserting after subparagraph (C), the 

19 following: 

20 ‘‘(D) notwithstanding paragraph (2)(B), be21 ginning in fiscal year 2004, and not less than 

22 every 4 years thereafter, each State shall submit 

23 to the Secretary a separate audit of the funds 

24 appropriated under this subtitle that—

25 ‘‘(i) shall apply only to—
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1 ‘‘(I) State disbursement of funds 

2 to eligible entities; 

3 ‘‘(II) use of funds for State ad4 ministrative expenses; and 

5 ‘‘(III) State disbursement of as6 sistance provided under section 680; 

7 and 

8 ‘‘(ii) shall be funded—

9 ‘‘(I) first, through the funds avail10 able for administrative expenses under 

11 section 675C(b)(2); and 

12 ‘‘(II) second, from any funds re13 ceived by the State through assistance 

14 provided under section 680; and 

15 ‘‘(E) submit full financial reports to the 

16 Secretary not later than 6 months following the 

17 end of each fiscal year; and’’; and 

18 (2) in subsection (b)(1), by adding at the end the 

19 following: ‘‘The Secretary, after providing adequate 

20 notice, shall withhold administrative funds described 

21 in section 675C(b)(2) from any State that fails to 

22 comply with the provisions of sections 678A through 

23 678D(a), and may, after an opportunity for a hear24 ing conducted within the affected State, withhold 

25 funds from the State and provide such funds directly
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1 to the eligible entities in such State upon a dem2 onstration of the compliance by such entities with the 

3 requirements of this subtitle.’’

4 SEC. 113. ACCOUNTABILITY AND REPORTING REQUIRE5 MENT. 

6 Section 678E of the Community Services Block Grant 

7 Act (42 U.S.C. 9917) is amended to read as follows: 

8 ‘‘SEC. 678E. ACCOUNTABILITY AND REPORTING REQUIRE9 MENTS. 

10 ‘‘(a) STATE ACCOUNTABILITY AND REPORTING RE11 QUIREMENTS.—

12 ‘‘(1) PERFORMANCE MEASUREMENT OF ELIGIBLE

13 ENTITIES.—

14 ‘‘(A) IN GENERAL.—Each State that re15 ceives funds under this subtitle shall participate, 

16 and shall ensure that all eligible entities in the 

17 State participate, in a performance measure18 ment system, which may be a performance meas19 urement system for which the Secretary facili20 tated development pursuant to subsection (b), or 

21 an alternative system that the Secretary is satis22 fied meets the requirements of subsection (b). 

23 ‘‘(B) LOCAL AGENCIES.—The State may 

24 elect to have local agencies that are subcontrac25 tors of the eligible entities under this subtitle 
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1 participate in the performance measurement sys2 tem. If the State makes that election, references 

3 in this section to eligible entities shall be consid4 ered to include the local agencies. 

5 ‘‘(C) PERFORMANCE MEASUREMENT OF

6 STATES.—Not later than 1 year after the date of 

7 enactment of the Poverty Reduction and Preven8 tion Act, the Secretary shall establish, in con9 sultation with States and eligible entities, per10 formance standards for the State administration 

11 of block grant funds. Such standards shall in12 clude standards relating to—

13 ‘‘(i) the timeliness of the availability of 

14 State plans for public comment as required 

15 under section 676(a)(2)(B) and of submis16 sion of such plans to the Secretary as re17 quired in section 676(b); 

18 ‘‘(ii) the utilization of the financial 

19 and organizational assessment protocol es20 tablished under section 678B(b), including 

21 the training and skills of State personnel 

22 responsible for such oversight, the comple23 tion of annual monitoring, the identifica24 tion of opportunities for improvement, and 

25 the implementation of plans to enhance the 
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1 management capacity and infrastructure of 

2 eligible entities; 

3 ‘‘(iii) the timeliness of the distribution 

4 of block grants funds to eligible entities as 

5 provided in section 675C(a); 

6 ‘‘(iv) the resources made available for 

7 management development at eligible enti8 ties, including monitoring, training, and 

9 assistance with financial management and 

10 program information and assessment sys11 tems; 

12 ‘‘(v) the results of State efforts to co13 ordinate eligible entity programs with other 

14 State programs for low-income individuals 

15 and their families, especially participants 

16 in the program of block grants to States for 

17 temporary assistance for needy families 

18 under part A of title IV of the Social Secu19 rity Act (42 U.S.C. 601 et seq.) and other 

20 working families, and to ensure the partici21 pation of eligible entities in the development 

22 of statewide strategies to reduce poverty; 

23 and 
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1 ‘‘(vi) the assistance provided to eligible 

2 entities in securing private partnerships as 

3 required in section 676(b). 

4 ‘‘(2) ANNUAL REPORT.—Each State shall annu5 ally prepare and submit to the Secretary a report on 

6 the measured performance of the State and the eligible 

7 entities in the State. The State shall include in the 

8 report any information collected by the State relating 

9 to such performance. Each State shall also include in 

10 the report an accounting of the expenditure of funds 

11 received by the State through the community services 

12 block grant program, including an accounting of 

13 funds spent on administrative costs by the State and 

14 the eligible entities, funds spent by eligible entities on 

15 the direct delivery of local services, and the achieve16 ment of national goals established under the proce17 dures described in this section, and shall include in18 formation on the number of and characteristics of cli19 ents served under this subtitle in the State, based on 

20 data collected from the eligible entities. The State 

21 shall also include in the report a summary describing 

22 the training and technical assistance offered by the 

23 State under section 678C(a)(3) during the year cov24 ered by the report. 
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1 ‘‘(b) LOCAL ENTITY ACCOUNTABILITY AND REPORTING

2 REQUIREMENTS.—

3 ‘‘(1) LOCAL ENTITY DETERMINED GOALS.—In 

4 order to be designated as an eligible entity and to re5 ceive a grant under this subtitle, an entity shall es6 tablish entity-determined goals for reducing poverty 

7 in the community, including goals for— 

8 ‘‘(A) leveraging community resources; 

9 ‘‘(B) fostering coordination of Federal, 

10 State, local, private, and other assistance; and 

11 ‘‘(C) promoting community involvement. 

12 ‘‘(2) DEMONSTRATION THAT GOALS WERE

13 MET.—In order to receive a grant subsequent to the 

14 first grant that is provided to an eligible entity fol15 lowing the date of enactment of the Poverty Reduction 

16 and Prevention Act, the entity shall demonstrate to 

17 the State that substantial progress has been made in 

18 meeting the goals of the entity as described in para19 graph (1). 

20 ‘‘(3) GOALS OR PERFORMANCE MEASURES.—Any 

21 specific goals or performance measures, for an indi22 vidual eligible entity, that are used in any moni23 toring or review process under this subtitle, shall be—

24 ‘‘(A) determined by the entity;
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1 ‘‘(B) agreed on by the State involved and 

2 the entity, during the planning process leading 

3 to the grant involved; and 

4 ‘‘(C) incorporated into the grant agreement 

5 between the State and entity for each subsequent 

6 award cycle. 

7 ‘‘(4) PROCEDURES.—If the State determines that 

8 a failure to meet goals established under this sub9 section shall be a basis for terminating the designa10 tion or reducing the funds of an eligible entity under 

11 this subtitle, and determines that an eligible entity 

12 has failed to meet the goals, the procedures set forth 

13 in section 678C shall apply. 

14 ‘‘(c) SECRETARY’S ACCOUNTABILITY AND REPORTING

15 REQUIREMENTS.—

16 ‘‘(1) FEDERAL PERFORMANCE MEASUREMENT.—

17 The Secretary shall establish goals for the Department 

18 of Health and Human Services Office of Community 

19 Services with respect to—

20 ‘‘(A) the timeliness of the distribution of 

21 funds under this subtitle, including funds for 

22 training and technical assistance; 

23 ‘‘(B) the monitoring of States as provided 

24 for in section 678D; 
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1 ‘‘(C) the coordination of other Office of 

2 Community Service programs with the activities 

3 of States and eligible entities under this subtitle; 

4 and 

5 ‘‘(D) the full and timely reporting as re6 quired in this section. 

7 ‘‘(2) LOCAL PERFORMANCE MEASUREMENT.—

8 ‘‘(A) IN GENERAL.—To the maximum ex9 tent practicable, the Secretary shall coordinate 

10 reporting requirements for all programs of the 

11 Department of Health and Human Services that 

12 are managed by eligible entities so as to consoli13 date and reduce the number of reports required 

14 relating to individuals, families, and uses of 

15 grant funds, specifically funds under the Head 

16 Start Act (42 U.S.C. 9831 et seq.), the Low-In17 come Home Energy Assistance Act of 1981 (42 

18 U.S.C. 8621 et seq.), child care programs admin19 istered by the Department, and health related 

20 service programs administered by the Depart21 ment. 

22 ‘‘(B) TECHNICAL ASSISTANCE.—The Sec23 retary shall provide technical assistance, includ24 ing support for the enhancement of electronic 

25 data systems, to States and to eligible entities to 
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1 enhance their capability to collect and report 

2 data for such a system and to aid in their par3 ticipation in such a system. 

4 ‘‘(C) LOCAL ENTITY PERFORMANCE MEAS5 UREMENT SYSTEM.—The Secretary shall assist 

6 in the implementation of a local entity perform7 ance measurement system, and other voluntary 

8 programmatic and results reporting systems, de9 veloped by States, eligible entities, and their na10 tional associations acting together. The Secretary 

11 and the developers of such systems shall ensure 

12 that the set of measures are numerous enough to 

13 cover the full range of services offered by all local 

14 eligible entities. Under such a system, local eligi15 ble entities shall only be compelled to collect data 

16 on the subset of performance measures that re17 flect their community-specific programs and 

18 services currently adopted. Eligible entities shall 

19 not be required under this subparagraph to alter 

20 the collection of data for any reports provided for 

21 other programs within the Department of Health 

22 and Human Services or other Federal agencies. 

23 States shall compile annual Results Oriented 

24 Management and Accountability System reports 

25 for the Secretary under this subparagraph. 
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1 ‘‘(3) REPORTING REQUIREMENTS.—For each fis2 cal year the Secretary shall, directly or by grant or 

3 contract, prepare a report containing—

4 ‘‘(A) a summary of the planned use of funds 

5 by each State, and the eligible entities in the 

6 State, under the community services block grant 

7 program, as contained in each State plan sub8 mitted pursuant to section 676; 

9 ‘‘(B) a description of how funds were actu10 ally spent by the State and eligible entities in 

11 the State, including a breakdown of funds spent 

12 on administrative costs and on the direct deliv13 ery of local programs by eligible entities; 

14 ‘‘(C) information on the number of entities 

15 eligible for funds under this subtitle, the number 

16 of low-income persons served under this subtitle, 

17 and such demographic data on the low-income 

18 populations served by eligible entities as is deter19 mined by the Secretary to be feasible; 

20 ‘‘(D) a comparison of the planned uses of 

21 funds for each State and the actual uses of the 

22 funds; 

23 ‘‘(E) a summary of each State’s perform24 ance results, and the results for the eligible enti-
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1 ties, as collected and submitted by the States in 

2 accordance with subsection (a)(2); and 

3 ‘‘(F) any additional information that the 

4 Secretary considers to be appropriate to carry 

5 out this subtitle, if the Secretary informs the 

6 States of the need for such additional informa7 tion and allows a reasonable period of time for 

8 the States to collect and provide the information. 

9 ‘‘(4) SUBMISSION.—The Secretary shall submit 

10 to the Committee on Education and the Workforce of 

11 the House of Representatives and the Committee on 

12 Health, Education, Labor, and Pensions of the Senate 

13 the report described in paragraph (2), and any com14 ments the Secretary may have with respect to such re15 port. The report shall include definitions of direct and 

16 administrative costs used by the Department of 

17 Health and Human Services for programs funded 

18 under this subtitle. 

19 ‘‘(5) COSTS.—Of the funds reserved under section 

20 674(b)(3), not more than $500,000 shall be available 

21 to carry out the reporting requirements contained in 

22 paragraph (3).’’.
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1 SEC. 114. LIMITATIONS ON USE OF FUNDS. 

2 Section 678F(c)(1) of the Community Services Block 

3 Grant Act (42 U.S.C. 9918(c)(1)) is amended by inserting 

4 ‘‘religion,’’ after ‘‘race,’’. 

5 SEC. 115. OPERATIONAL RULE. 

6 Section 679(a) of the Community Services Block Grant 

7 Act (42 U.S.C. 9920(a)) is amended by inserting ‘‘and such 

8 organization meets the requirements of this subtitle’’ before 

9 the first period. 

10 SEC. 116. DISCRETIONARY AUTHORITY OF THE SECRETARY. 

11 Section 680 of the Community Services Block Grant 

12 Act (42 U.S.C. 9921) is amended—

13 (1) in subsection (a)—

14 (A) in paragraph (2)—

15 (i) by redesignating subparagraphs (B) 

16 through (E) as subparagraph (D) through 

17 (G), respectively; 

18 (ii) by striking subparagraph (A) and 

19 inserting the following: 

20 ‘‘(A) ECONOMIC DEVELOPMENT ACTIVI21 TIES.—The Secretary shall make grants de22 scribed in paragraph (1) on a competitive basis 

23 to private, nonprofit organizations that are com24 munity development corporations to provide 

25 technical and financial assistance for economic 

26 development activities, including business, eco-
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1 nomic, and community development projects, de2 signed to address the economic needs of low-in3 come individuals and families by creating em4 ployment and business development opportuni5 ties. Such assistance shall include—

6 ‘‘(i) long term loans (up to 15 years) 

7 or investments for private business enter8 prises; 

9 ‘‘(ii) providing capital to businesses 

10 owned by community development corpora11 tions; and 

12 ‘‘(iii) marketing and management as13 sistance for businesses providing jobs and 

14 business opportunities to low-income indi15 viduals. 

16 ‘‘(B) FEDERAL INTEREST.—

17 ‘‘(i) IN GENERAL.—The Secretary shall 

18 establish procedures that permit an eligible 

19 entity who receives funds under a grant to 

20 carry out this paragraph, or intangible as21 sets acquired with such funds, to become the 

22 sole owner of the funds or assets before the 

23 end of the 12-year period beginning at the 

24 end of the fiscal year for which the grant is 

25 made. 
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1 ‘‘(ii) CONDITIONS.—To be eligible to 

2 become the sole owner, the eligible entity 

3 shall agree—

4 ‘‘(I) to use the funds or assets for 

5 the purposes and uses for which the 

6 grant was made, or purposes and uses 

7 consistent with this subtitle, during 

8 and after the 12-year period described 

9 in clause (i), whether or not the eligible 

10 entity continues to be supported by 

11 Federal funds; and 

12 ‘‘(II) that, when the eligible entity 

13 no longer needs the funds or assets for 

14 purposes and uses described in sub15 clause (I), the eligible entity shall re16 quest instructions from the Secretary 

17 about the disposition of the funds or 

18 assets. 

19 ‘‘(iii) ENCUMBERING.—The eligible en20 tity may not encumber the assets without 

21 the approval of the Secretary. 

22 ‘‘(C) ADMINISTRATIVE REQUIREMENTS.—In 

23 a case in which an eligible project under grant 

24 made under this section cannot, for good cause, 

25 be implemented, the Secretary shall establish a 
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1 policy to permit the substitution of other eligible 

2 projects. Such policy shall require that such 

3 project have the same impact area, the same 

4 goals, and the same objectives as the original 

5 project and outcomes that are substantially the 

6 same as the original project.’’; 

7 (iii) in subparagraph (E) (as so redes8 ignated), by striking ‘‘the community’’ and 

9 inserting ‘‘the service area’’; and 

10 (iv) in subparagraph (G) (as so redes11 ignated), by striking ‘‘1 percent’’ and in12 serting ‘‘2 percent’’; 

13 (B) in paragraph (3)(B), by striking ‘‘com14 munity’’ and inserting ‘‘water and waste water’’; 

15 and 

16 (C) in paragraph (4), by striking ‘‘individ17 uals and families’’ and inserting ‘‘individuals 

18 and their families’’; and 

19 (2) in subsection (c), by striking ‘‘Labor and 

20 Human Resources’’ and inserting ‘‘Health, Edu21 cation, Labor, and Pensions’’. 

22 SEC. 117. COMMUNITY FOOD AND NUTRITION PROGRAMS. 

23 Section 681 of the Community Services Block Grant 

24 Act (42 U.S.C. 9922) is amended—
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1 (1) in subsection (c), by striking ‘‘Labor and 

2 Human Resources’’ and inserting ‘‘Health, Edu3 cation, Labor, and Pensions’’; and 

4 (2) in subsection (d), by striking ‘‘1999 through 

5 2003’’ and inserting ‘‘2004 through 2009’’. 

6 SEC. 118. NATIONAL OR REGIONAL PROGRAMS DESIGNED 

7 TO PROVIDE INSTRUCTIONAL ACTIVITIES 

8 FOR LOW-INCOME YOUTH. 

9 Section 682 of the Community Services Block Grant 

10 Act (42 U.S.C. 9923) is amended—

11 (1) in subsection (b)(2), by striking ‘‘or treat12 ment’’; and 

13 (2) in subsection (g), by striking ‘‘$15,000,000 

14 for each of fiscal years 1999 through 2003’’ and in15 serting ‘‘$18,000,000 for each of fiscal years 2004 

16 through 2009’’. 

17 TITLE II—LOW-INCOME HOME 

18 ENERGY ASSISTANCE 

19 SEC. 201. SHORT TITLE. 

20 This title may be cited as the ‘‘Low-Income Home En21 ergy Assistance Amendments of 2003’’. 

22 SEC. 202. REAUTHORIZATION. 

23 (a) IN GENERAL.—Section 2602(b) of the Low-Income 

24 Home Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) 

25 is amended in the first sentence by striking ‘‘such sums’’
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1 and all that follows through the period and inserting ‘‘and 

2 $3,400,000,000 for each of fiscal years 2004 through 2006, 

3 and such sums as may be necessary for each of fiscal years 

4 2007 through 2010.’’. 

5 (b) PROGRAM YEAR.—Section 2602(c) of the Low-In6 come Home Energy Assistance Act of 1981 (42 U.S.C. 

7 8621(c)) is amended by inserting ‘‘authorized’’ after ‘‘pro8 grams and activities’’. 

9 (c) INCENTIVE PROGRAM FOR LEVERAGING NON-FED10 ERAL RESOURCES.—Section 2602(d) of the Low-Income 

11 Home Energy Assistance Act of 1981 (42 U.S.C. 8621(d)) 

12 is amended—

13 (1) in paragraph (1), by striking ‘‘1999 through 

14 2004’’ and inserting ‘‘2004 through 2010’’; and 

15 (2) in paragraph (2), by striking ‘‘1999 through 

16 2004’’ and inserting ‘‘2004 through 2010’’. 

17 SEC. 203. NATURAL DISASTERS AND OTHER EMERGENCIES. 

18 Section 2604(e) of the Low-Income Home Energy As19 sistance Act of 1981 (42 U.S.C. 8623(e)) is amended by 

20 adding at the end the following: 

21 ‘‘Notwithstanding any other provision of this section, for 

22 purposes of making determinations under section 

23 2603(1)(C), if the Secretary determines that there is an in24 crease of at least 20 percent in the cost of home energy over 

25 the previous 5-year average for a duration of a month or 
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1 more in 1 or more States or regions, the Secretary shall 

2 declare an energy emergency in the affected area and shall 

3 make available funds as provided in this subsection. Not4 withstanding any other provision of this section, for pur5 poses of making such determinations, if the Secretary deter6 mines that the number of heating degree days or cooling 

7 days for a month was more than 100 above the 30-year 

8 average in 1 or more States or regions, the Secretary shall 

9 declare an energy emergency in the affected area and shall 

10 make available funds as provided in this subsection.’’. 

11 SEC. 204. RESIDENTIAL ENERGY ASSISTANCE CHALLENGE 

12 OPTION. 

13 (a) EVALUATION.—The Comptroller General of the 

14 United States shall conduct an evaluation of the Residential 

15 Energy Assistance Challenge program described in section 

16 2607B of the Low-Income Home Energy Assistance Act of 

17 1981 (42 U.S.C. 8626b). 

18 (b) REPORT.—Not later than 2 years after the date 

19 of enactment of this Act, the Comptroller General of the 

20 United States shall prepare and submit to the Committee 

21 on Education and the Workforce of the House of Representa22 tives and the Committee on Health, Education, Labor, and 

23 Pensions of the Senate a report containing—

24 (1) the findings resulting from the evaluation de25 scribed in subsection (a); and 
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1 (2) the State evaluations described in para2 graphs (1) and (2) of section 2607B(b) of the Low3 Income Home Energy Assistance Act of 1981 (42 

4 U.S.C. 8626b(b)). 

5 SEC. 205. REPORT TO CONGRESS. 

6 (a) STUDY.—

7 (1) IN GENERAL.—The Secretary of Health and 

8 Human Services shall conduct a study on the Low9 Income Home Energy Assistance Act of 1981 (42 

10 U.S.C. 8621 et seq.) 

11 (2) REQUIREMENTS.—In conducting the study 

12 under subparagraph (A), the Secretary of Health and 

13 Human Services shall— 

14 (A) evaluate the performance of the Low-In15 come Home Energy Assistance Program, includ16 ing who the program is serving, the benefits of 

17 the program to recipients, and the ability of the 

18 program to reduce utility arrearage and shut-offs 

19 among low-income households; 

20 (B) develop a protocol for States to collect 

21 information from energy distribution companies, 

22 including electric, natural gas, heating oil, and 

23 propane companies, concerning the following res24 idential customer statistics— 
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1 (i) the number of accounts certified as 

2 eligible for energy assistance; 

3 (ii) the number of accounts certified as 

4 eligible for energy assistance and that are 

5 past due; 

6 (iii) the total revenue owed on accounts 

7 eligible for energy assistance and that are 

8 past due; 

9 (iv) the number of disconnection no10 tices issued on accounts eligible for energy 

11 assistance; 

12 (v) the number of disconnections for 

13 nonpayment; 

14 (vi) the number of reconnections; 

15 (vii) the number of accounts eligible for 

16 energy assistance and determined 

17 uncollectible; and 

18 (viii) the energy burden of accounts el19 igible for energy assistance; 

20 (C) analyze the public health and safety 

21 threats of hypothermia and hyperthermia due to 

22 a lack of home heating or home cooling, includ23 ing mortality, morbidity, and decrease in caloric 

24 intake; 
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1 (D) analyze the affect of the standard of 

2 housing and housing age on energy costs to low3 income households; 

4 (E) evaluate regional difference in cost-of5 living and the ability of low-income families to 

6 meet home energy requirements; and 

7 (F) determine the programmatic impacts of 

8 using 60 percent of State median income to de9 termine low-income households. 

10 (b) REPORT.—Not later than 24 months after the date 

11 of enactment of this Act, the Secretary of Health and 

12 Human Services shall submit to Congress a report con13 taining the results of the study conducted under subsection 

14 (a). 

15 (c) DEFINITION.—In this section, the term ‘‘State’’ 

16 means each of the 50 States and the District of Columbia. 

17 (d) AUTHORIZATION OF APPROPRIATIONS.—There are 

18 authorized to be appropriated to carry out this subsection 

19 such sums as may be necessary for each of fiscal years 2004 

20 and 2005. 

21 (e) CONTRACTS.—Using amounts appropriated under 

22 subsection (d), the Secretary of Health and Human Services 

23 may enter into contracts or jointly financed cooperative 

24 agreements or interagency agreements with States and pub-
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1 lic agencies and private nonprofit organizations to conduct 

2 the study under subsection (a).

3 TITLE III—ASSETS FOR INDE4 PENDENCE REAUTHORIZA5 TION ACT 

6 SEC. 301. SHORT TITLE. 

7 This title may be cited as the ‘‘Assets for Independence 

8 Reauthorization Act’’. 

9 SEC. 302. REAUTHORIZATION OF THE ASSETS FOR INDE10 PENDENCE ACT. 

11 (a) DEFINITION OF QUALIFIED EXPENSES.—Section 

12 404(8) of the Assets for Independence Act (42 U.S.C. 604 

13 note) is amended—

14 (1) in subparagraph (A)—

15 (A) in the matter preceding clause (i), by 

16 inserting ‘‘or to a vendor following approval by 

17 a qualified entity upon submission of an ap18 proved qualified education purchase plan’’ before 

19 the period; and 

20 (B) by adding at the end the following: 

21 ‘‘(iii) QUALIFIED EDUCATION PUR22 CHASE PLAN.—The term ‘qualified edu23 cation purchase plan’ means a document 

24 that explains the education item to be pur25 chased which—
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1 ‘‘(I) is approved by a qualified 

2 entity; and 

3 ‘‘(II) includes a description of the 

4 good to be purchased.’’; 

5 (2) in subparagraph (D), by striking ‘‘eligible’’; 

6 and 

7 (3) by adding at the end the following: 

8 ‘‘(E) SAVING IN IDAS FOR DEPENDENTS.—

9 Amounts paid to an individual development ac10 count established for the benefit of a dependent 

11 (as such terms is defined for purposes of sub12 paragraph (D)(ii)) of an eligible individual for 

13 the purpose of postsecondary education.’’. 

14 (b) REPEAL OF PROVISION.—Section 405 of the Assets 

15 for Independence Act (42 U.S.C. 604 note) is amended by 

16 striking subsection (g). 

17 (c) RESERVE FUND.—Section 407 of the Assets for 

18 Independence Act (42 U.S.C. 604 note) is amended—

19 (1) in subsection (b)—

20 (A) in paragraph (1)—

21 (i) by redesignating subparagraphs (A) 

22 and (B) as subparagraphs (B) and (C), re23 spectively; and 

24 (ii) by inserting before subparagraph 

25 (B) (as so redesignated) the following: 
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1 ‘‘(A) all grant funds provided to the quali2 fied entity from the Secretary for the purpose of 

3 the demonstration project as described under sub4 section (c)(1);’’ and 

5 (B) by adding at the end the following: 

6 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

7 paragraph (1)(A) shall be construed to preclude a 

8 qualified entity from depositing other demonstration 

9 project funds into the Reserve Fund.’’; and 

10 (2) in subsection (d), by inserting ‘‘the date that 

11 is 12 months after’’ after ‘‘upon’’. 

12 (d) USE OF AMOUNTS.—Section 407(c) of the Assets 

13 for Independence Act (42 U.S.C. 604 note) is amended by 

14 adding at the end the following: 

15 ‘‘(4) USE OF NONFEDERAL FUNDS.—

16 ‘‘(A) IN GENERAL.—Notwithstanding para17 graph (3), not more than 20 percent of the 

18 amount of non-Federal funds committed to a 

19 project as matching contributions in accordance 

20 with the application submitted by the qualified 

21 entity under section 405(c)(4) shall be used by 

22 the qualified entity for the purposes described in 

23 subparagraphs (A), (C), and (D) of paragraph 

24 (1). 
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1 ‘‘(B) PRIORITY.—In awarding grants under 

2 section 406(b), the Secretary shall give priority 

3 to qualified entities that submit applications 

4 that, with respect to the commitment of non-Fed5 eral funds under section 405(c)(4), provide as6 surances that not to exceed 15 percent of such 

7 non-Federal funds will be used by the qualified 

8 entity for the purposes described in subpara9 graphs (A), (C), and (D) of paragraph (1).’’. 

10 (e) ELIGIBILITY FOR PARTICIPATION.—Section 

11 408(a)(1) of the Assets for Independence Act (42 U.S.C. 604 

12 note) is amended to read as follows: 

13 ‘‘(1) INCOME TEST.—The—

14 ‘‘(A) gross income of the household is equal 

15 to or less than—

16 ‘‘(i) 200 percent of the poverty line (as 

17 determined by the Secretary of Health and 

18 Human Services); 

19 ‘‘(ii) the earned income amount de20 scribed in section 32 of the Internal Rev21 enue Code of 1986 (taking into account the 

22 size of the household); or 

23 ‘‘(iii) 80 percent of the Area Median 

24 Income (as determined by the Department 

25 of Housing and Urban Development); or 
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1 ‘‘(B) the modified adjusted gross income of 

2 the household for the previous year does not ex3 ceed $18,000 for an individual filer, $30,000 for 

4 a head of household, or $38,000 for a joint 

5 filer.’’. 

6 (f) DEPOSITS BY QUALIFIED ENTITIES.—Section 410 

7 of the Assets for Independence Act (42 U.S.C. 604 note) is 

8 amended—

9 (1) in subsection (a), by striking ‘‘qualified enti10 ty—’’ and all that follows through the end and insert11 ing the following: ‘‘qualified entity, a matching con12 tribution of not less than $0.50 and not more than $4 

13 for every $1 of earned income (as defined in section 

14 911(d)(2) of Internal Revenue Code of 1986) deposited 

15 in the account and interest earned on that account by 

16 a project participant during that period. Matching 

17 contributions shall be made—

18 ‘‘(1) from the non-Federal funds described in sec19 tion 405(c)(4); and 

20 ‘‘(2) from the grant made under section 406(b); 

21 based on a ratio relating to the sources of funds described 

22 in paragraph (1) and (2) as determined by the qualified 

23 entity, consistent with the requirements of section 407(c).’’; 

24 (2) by redesignating subsections (b) through (e) 

25 as subsections (c) through (f), respectively; and 
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1 (3) by inserting after subsection (a), the fol2 lowing: 

3 ‘‘(b) USE OF EXCESS INTEREST ON MATCHING FUNDS

4 EARNED ON THE RESERVE FUND.—Interest that accrues on 

5 the matching funds earned and held in the Reserve Fund, 

6 over and above the interest required to match an individ7 ual’s deposits and interest earned in the individual develop8 ment account, shall be used by the qualified entity to fund 

9 existing individual development accounts or additional in10 dividual development accounts.’’. 

11 (g) AUTHORIZATION OF APPROPRIATIONS.—Section 

12 416 of the Assets for Independence Act (42 U.S.C. 604 note) 

13 is amended by striking ‘‘and 2003,’’ and inserting ‘‘and 

14 2003, $25,000,000 for fiscal year 2004, and such sums as 

15 may be necessary for each of fiscal years 2005 through 

16 2008,’’. 

17 (h) APPLICATION OF AMENDMENTS.—In admin18 istering the Assets for Independence Act (42 U.S.C. 604 

19 note), the Secretary of Health and Human Services shall 

20 apply—

21 (1) the amendments made by the Assets for Inde22 pendence Act Amendments of 2000 to individuals who 

23 were individual development account holders, and to 

24 entities that received grants, under the Assets for 

25 Independence Act either before or after the date of en-
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1 actment of the Assets for Independence Act Amend2 ments of 2000; and 

3 (2) the amendments made by this section to indi4 viduals who were individual development account 

5 holders, and to entities that received grants, under the 

6 Assets for Independence Act either before or after the 

7 date of enactment of this Act.

Calendar No. 414

108TH CONGRESS 

1ST SESSION S. 1786

[Report No. 108–210] 

A BILL

To revise and extend the Community Services 

Block Grant Act, the Low-Income Home Energy Assistance Act of 1981, and the Assets for Independence Act. 

NOVEMBER 24, 2003

Reported with an amendment