II 

108TH CONGRESS 

1ST SESSION S. 1786

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, and Mr. KENNEDY) introduced the 

following bill; which was read twice and referred to the Committee on 

Health, Education, Labor, and Pensions 

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, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Poverty Reduction and Prevention Act’’. 

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

7 this Act is as follows:

Sec. 1. Short title; table of contents. 

TITLE I—COMMUNITY SERVICES BLOCK GRANT ACT 
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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.

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 
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1 improve and revitalize the communities in which low2 income Americans live, by providing resources to 

3 States for support of local eligible entities and their 

4 partners to—

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

6 broad range of Federal, State, local, and pri7 vate assistance or investment in such a manner 

8 as to use these resources effectively to reduce 

9 poverty and in initiatives that are responsive to 

10 specific local needs and conditions; 

11 ‘‘(B) organize multiple services that meet 

12 the needs of low-income families and individ13 uals, especially low-wage workers and their fam14 ilies, and that assist them in developing the as15 sets and skills needed to become self sustaining 

16 while ensuring that these services are provided 

17 efficiently, in appropriate combinations, and in 

18 effective sequence; and 

19 ‘‘(C) design and implement comprehensive 

20 approaches to assist individuals transitioning 

21 from the Temporary Assistance to Needy Fami22 lies Program to work; 

23 ‘‘(2) by improving and revitalizing the commu24 nities in which low-income Americans live by pro25 viding resources to—
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1 ‘‘(A) broaden the financial resource base of 

2 initiatives and projects directed to the elimi3 nation of poverty and the re-development of the 

4 low-income community, including partnerships 

5 with non-governmental and governmental insti6 tutions to develop the community assets and 

7 services that reduce poverty, such as—

8 ‘‘(i) other private, charitable, neigh9 borhood-based, and religious organizations; 

10 ‘‘(ii) individual citizens, and busi11 nesses, labor, and professional groups, who 

12 are able to influence the quantity and qual13 ity of opportunities and services for the 

14 poor; and 

15 ‘‘(iii) local government leadership; and 

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

17 assets and services that will have a significant, 

18 measurable impact on the causes of poverty in 

19 the community and that will help families and 

20 individuals to achieve economic self-sufficiency, 

21 and test innovative, community-based ap22 proaches to attacking the causes and effects of 

23 poverty and of community breakdown, includ24 ing— 
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1 ‘‘(i) innovative initiatives to prevent 

2 and reverse loss of investment, jobs, public 

3 services, and infrastructure in low- and 

4 moderate-income communities; and 

5 ‘‘(ii) innovative partnerships to de6 velop the assets and services that reduce 

7 poverty, as provided for in subparagraph 

8 (A); and 

9 ‘‘(3) by ensuring maximum participation of 

10 residents of low-income communities and of mem11 bers of the groups served by programs under this 

12 subtitle in guiding the eligible entities and in their 

13 programs funded under this subtitle to ameliorate 

14 the particular problems and needs of low-income 

15 residents of their communities and to develop the 

16 permanent social and economic assets of the low-in17 come community in order to reduce the incidence of 

18 poverty.’’. 

19 SEC. 102. DEFINITIONS. 

20 Section 673 of the Community Services Block Grant 

21 Act (42 U.S.C. 9902) is amended—

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

23 other mechanism’’; and 

24 (2) in paragraph (2)—

25 (A) in the first sentence—
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1 (i) by striking ‘‘Office of Management 

2 and Budget’’ and inserting ‘‘Department 

3 of Health and Human Services’’; and 

4 (ii) by inserting before the period the 

5 following: ‘‘and increased, as the Secretary 

6 determines appropriate, to take into ac7 count higher costs-of-living for a State’’; 

8 and 

9 (B) by striking the last sentence and in10 serting the following: ‘‘Whenever a State deter11 mines that is has served the objectives of the 

12 block grant program established under this sub13 title, the State may revise the poverty line, 

14 while placing a priority in serving those who are 

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

16 poverty line is the minimum level that a State 

17 shall be permitted to set as its maximum eligi18 bility requirement and 60 percent of the State’s 

19 median income is the maximum level that a 

20 State shall be permitted to set as its maximum 

21 eligibility requirement. The State may revise 

22 the poverty line only upon a determination that 

23 eligible entities are providing, coordinating, or 

24 partnering with means-tested support services 

25 for low and moderate-income individuals and 
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1 families above the official poverty line. Nothing 

2 in this paragraph shall be construed to prevent 

3 eligible entities from continuing to support indi4 viduals and families during their transition 

5 from program eligibility to achieve specific goals 

6 for their economic security and long-term self7 sufficiency as long as priority is given to serv8 ing the lowest income individuals who seek serv9 ices.’’. 

10 SEC. 103. AUTHORIZATION OF APPROPRIATIONS. 

11 Section 674 of the Community Services Block Grant 

12 Act (42 U.S.C. 9903) is amended—

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

14 2003’’ and inserting ‘‘2004 through 2009’’; and 

15 (2) in subsection (b)(2)—

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

17 associations’’ and inserting ‘‘and associations’’; 

18 and 

19 (B) in subparagraph (B)—

(i) by striking ‘‘1 20 ⁄2 of the remainder’’ 

and inserting ‘‘not less than 1 21 ⁄2 of the re22 mainder’’; and 

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

24 inserting ‘‘evaluation and training and 

25 technical assistance activities and’’. 
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1 SEC. 104. ESTABLISHMENT OF PROGRAM. 

2 Section 675 of the Community Services Block Grant 

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

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

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

6 causes of poverty and the conditions caused by poverty 

7 in their communities.’’. 

8 SEC. 105. USE OF FUNDS. 

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

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

11 (1) in paragraph (1)—

12 (A) in subparagraph (A), by striking ‘‘enti13 ties in need of such training and assistance’’ 

14 and inserting ‘‘eligible entities and their state15 wide associations that strengthens their mana16 gerial or programmatic capabilities to reduce 

17 poverty’’; and 

18 (B) by striking subparagraphs (B) through 

19 (H), and inserting the following: 

20 ‘‘(B) supporting statewide coordination 

21 and communication among eligible entities and 

22 State-operated or supported programs and serv23 ices, and other locally-operated programs and 

24 services targeted to low-income individuals and 

25 their children and families, so as to ensure that 

26 local eligible entities’ services are integrated in 
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1 a manner that allows such low-income indi2 vidual and their families to have access to as 

3 many sources of assistance as are appropriate 

4 to support their progress to economic stability 

5 and self-sufficiency; 

6 ‘‘(C) supporting innovative partnerships, 

7 programs, and activities conducted by commu8 nity action agencies and their partners includ9 ing other community-based organizations to 

10 eliminate poverty, promote self-sufficiency, and 

11 promote community revitalization, including 

12 asset-building programs for low-income individ13 uals, such as programs supporting individual 

14 development accounts, and home or business 

15 ownership; 

16 ‘‘(D) analyzing the distribution of funds 

17 made available under this subtitle within the 

18 State to determine if such funds have been tar19 geted to the areas of greatest need; 

20 ‘‘(E) supporting State charity tax credits 

21 as described in subsection (c); 

22 ‘‘(F) supporting the identification of exem23 plary grantee agencies or programs as Centers 

24 of Innovation and methodology for dissemi-
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1 nating innovative programs and other best 

2 practices from those agencies statewide; 

3 ‘‘(G) supporting the development of eligible 

4 entities’ partnerships with local law enforce5 ment agencies, local housing authorities, private 

6 foundations, and other public and private part7 ners; and 

8 ‘‘(H) supporting other activities, consistent 

9 with the purposes of this subtitle.’’; 

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

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

12 funds distributed under subsection (a) are not used 

13 for excessive administrative expenses and that all 

14 funds distributed under such subsection used for sal15 aries by a local entity are fair and equitable. The 

16 State has the authority to determine the appropriate 

17 level of funds distributed under subsection (a) that 

18 an eligible entity shall use for administrative ex19 penses.’’. 

20 SEC. 106. APPLICATION AND PLAN. 

21 Section 676 of the Community Services Block Grant 

22 Act (42 U.S.C. 9908) is amended—

23 (1) in subsection (b)—
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1 (A) in the matter preceding paragraph (1), 

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

3 after ‘‘to the Secretary’’; 

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

5 and inserting the following: 

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

7 through the grant or allotment will be used—

8 ‘‘(A) to support activities directly and 

9 through eligible entities that are designed to ex10 pand opportunities for and assist low-income in11 dividuals and their families (including low-in12 come workers) to become self-sufficient, includ13 ing low-income workers, families, and individ14 uals receiving assistance under part A of title 

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

16 seq.), homeless families and individuals, mi17 grant or seasonal farmworkers, and elderly low18 income individuals and families, and a descrip19 tion of how such activities will enable the fami20 lies and individuals—

21 ‘‘(i) to remove obstacles and solve 

22 problems that block the achievement of 

23 self-sufficiency by organizing and coordi24 nating support for those served under 

25 paragraph (3); 
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1 ‘‘(ii) to secure and retain employment 

2 that provides adequate income with essen3 tial benefits; 

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

5 with particular attention toward improving 

6 literacy and communications and technical 

7 skills of the low-income families in the 

8 communities involved; 

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

10 income and build household assets; 

11 ‘‘(v) to obtain and maintain adequate 

12 housing and a suitable living environment; 

13 ‘‘(vi) to obtain assistance that is need14 ed to resolve family emergencies and indi15 vidual needs, to prevent further hardships, 

16 and to secure economic independence; and 

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

18 affairs and management of their commu19 nities and the governance of eligible enti20 ties; and 

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

22 coordinate with, other programs related to the 

23 purposes of this subtitle (including State wel24 fare reform efforts); 
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1 ‘‘(2) a description of how the State intends to 

2 use discretionary funds made available from the re3 mainder of the grant or allotment described in sec4 tion 675C(b) in accordance with this subtitle, includ5 ing a description of how the State will support inno6 vative community-based initiatives of eligible entities 

7 and their partners related to the purposes of this 

8 subtitle; 

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

10 programs of general relevance in its plan, to the ex11 tent appropriate to the needs of low-income commu12 nities served by the eligible entities, including a de13 scription of innovative community and neighborhood14 based initiatives such as—

15 ‘‘(A) initiatives with the goal of strength16 ening families and encouraging effective par17 enting, including fatherhood initiatives; 

18 ‘‘(B) initiatives to assist those moving 

19 from welfare to work to obtain jobs at decent 

20 wages with benefits, including those low-income 

21 individuals and their families who are attempt22 ing to transition off a State program carried 

23 out under part A of title IV of the Social Secu24 rity Act; 
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1 ‘‘(C) programs for the establishment of vi2 olence-free zones that would involve youth de3 velopment and intervention models that pro4 mote youth success (such as models involving 

5 youth mediation, youth mentoring, life skills 

6 training, job creation, and entrepreneurship 

7 programs); 

8 ‘‘(D) family literacy initiatives; 

9 ‘‘(E) initiatives to increase the develop10 ment of household assets of individuals such as 

11 individual development accounts and home12 ownership opportunities; 

13 ‘‘(F) public and private partnerships to 

14 foster community development, affordable hous15 ing, job creation, and other means of building 

16 the assets of low-income communities; 

17 ‘‘(G) partnerships with local law enforce18 ment agencies, which may include participation 

19 in community policing, and activities to assist 

20 community residents and public safety officials 

21 in the event of emergencies, including threats to 

22 national security; 

23 ‘‘(H) initiatives to improve economic condi24 tions and mobilize new resources in rural areas 

25 and other at-risk areas to eliminate obstacles to 
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1 the self sufficiency of families and individuals in 

2 those communities; 

3 ‘‘(I) initiatives to help reduce the con4 centration of poverty in cities and inner suburbs 

5 and provide economic opportunities for individ6 uals and families in those areas; and 

7 ‘‘(J) partnerships with nonprofit or com8 munity-based organizations that demonstrate 

9 effectiveness in child abuse prevention, includ10 ing with programs that are school-based and 

11 that focus on adolescent victims, and victim12 izers; 

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

14 information, including—

15 ‘‘(A) a description of the State measure16 ment system and results for the performance 

17 goals established under section 678E(a)(1)(C); 

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

19 system, for services provided or coordinated 

20 with funds made available through grants made 

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

22 individuals and families in communities within 

23 the State; 

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

25 developed to fill identified gaps in the services,
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1 through the provision of information, referrals, 

2 case management, and followup consultations, 

3 and to support mobilization of new resources 

4 and partnerships; 

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

6 available through grants made under section 

7 675C(a) will be coordinated with other public 

8 and private resources; and 

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

10 will use the funds to support innovative commu11 nity and neighborhood-based initiatives related 

12 to the purposes of this subtitle; 

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

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

15 provision of such supplies and services, nutritious 

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

17 counteract conditions of starvation and malnutrition 

18 among low-income individuals; 

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

20 duplication of such services, and to ensure that pro21 gram gaps are addressed, identified and coordinated 

22 with eligible entity programs, with State and local 

23 agencies, and with programs that assist low-income 

24 individuals and their families, including— 
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1 ‘‘(A) programs carried out under part A of 

2 title IV of the Social Security Act, the Work3 force Investment Act, and other programs de4 signed to coordinate work-related supportive 

5 services for families; 

6 ‘‘(B) programs for expanding housing op7 portunities, reducing homelessness, and devel8 oping community investment projects; 

9 ‘‘(C) education programs, including those 

10 for preschool and school-aged children and for 

11 adults to obtain an adequate education; and 

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

13 the homeless, migrants, senior citizens, and in14 dividuals with disabilities, including programs 

15 under the Low-Income Home Energy Assist16 ance Act of 1981;’’; 

17 (C) in paragraph (12), by striking ‘‘not 

18 later than fiscal year 2001’’ and inserting ‘‘an19 nually’’; 

20 (D) in paragraph (13), by striking the pe21 riod and inserting ‘‘in sufficient detail to permit 

22 verification; and’’; 

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

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

25 each fiscal year thereafter, an assurance that the 
18

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1 State is using the procedures described in section 

2 678B(b) to monitor eligible entities.’’; and 

3 (2) by striking subsection (f). 

4 SEC. 107. DESIGNATION OF ELIGIBLE ENTITIES IN UNDER5 SERVED AREAS. 

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

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

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

9 State shall deem private nonprofit eligible entities that are 

10 providing related services in the unserved area to be of 

11 demonstrated effectiveness, consistent with the needs iden12 tified by a community needs assessment.’’. 

13 SEC. 108. TRIPARTITE BOARDS. 

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

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

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

17 through ‘‘a tripartite’’ in paragraph (1) and insert18 ing ‘‘through a tripartite’’; 

19 (2) by striking paragraph (2); 

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

21 inserting a period; and 

22 (4) by redesignating subparagraphs (A) through 

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

24 realigning the margins of such paragraphs accord25 ingly. 
19

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

2 ACTIVITIES. 

3 Section 678A of the Community Services Block 

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

5 (1) in subsection (a)(1)—

6 (A) in subparagraph (A), by striking ‘‘cor7 rective action’’ and all that follows through ‘‘; 

8 and’’ and inserting ‘‘monitoring and such addi9 tional corrective actions as may be needed to 

10 strengthen the management and programmatic 

11 practices of eligible entities;’’; 

12 (B) by striking subparagraph (B) and in13 serting the following: 

14 ‘‘(B) for State and local performance re15 porting and program data collection activities 

16 related to programs carried out under this sub17 title; 

18 ‘‘(C) for the preparation of reports pro19 vided for in section 678F; 

20 ‘‘(D) for the development and promulga21 tion of a common State Financial and Organi22 zational Protocol that is required to be used by 

23 States under section 678B(b); and 

24 ‘‘(E) to distribute amounts in accordance 

25 with subsection (c).’’; 
20

•S 1786 IS 

1 (2) in subsection (b)(2), by striking ‘‘an ongo2 ing procedure for obtaining input from the national 

3 and State networks of eligible entities’’ and inserting 

4 ‘‘a strategic plan for annual technical assistance de5 veloped in consultation with the national and State 

6 networks of eligible entities regarding their manage7 ment support needs’’; and 

8 (3) in subsection (c)(1), by striking ‘‘manage9 ment information’’ and all that follows through the 

10 period, and inserting ‘‘improving management infor11 mation and reporting systems, measuring of pro12 gram results, ensuring responsiveness to identified 

13 local needs, and reporting and disseminating suc14 cessful practices and initiatives’’. 

15 SEC. 110. MONITORING. 

16 Section 678B of the Community Services Block 

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

18 (1) in the section heading by striking ‘‘OF EL19 IGIBLE ENTITIES’’; 

20 (2) in subsection (a)—

21 (A) by striking the subsection heading and 

22 inserting ‘‘MONITORING OF ELIGIBLE ENTI23 TIES’’; 

24 (B) in paragraph (1)—
21

•S 1786 IS 

1 (i) by inserting ‘‘biennial’’ after ‘‘on2 site’’; and 

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

4 each 3 year period’’; 

5 (C) by striking paragraph (2); 

6 (D) by redesignating paragraphs (3) and 

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

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

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

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

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

12 (4) by inserting after subsection (a) the fol13 lowing: 

14 ‘‘(b) FINANCIAL AND ORGANIZATIONAL ASSESSMENT

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

16 implement a financial and organizational assessment pro17 tocol to monitor and evaluate the compliance of eligible 

18 entities with the financial and administrative requirements 

19 of this section. Such protocol shall incorporate the fiscal 

20 and organizational review procedures and standards ap21 propriate to the management of Federal funds under this 

22 subtitle and the governance of the eligible private non23 profit corporations or other eligible entities. The Secretary 

24 shall require the protocol to be developed jointly by the 

25 States and eligible entities and shall assist States in devel-
22

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1 oping appropriate training for personnel monitoring the 

2 uses of funds under this subtitle according to the require3 ments of this section.’’; and 

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

5 the last sentence and insert the following: ‘‘The Sec6 retary shall annually submit a report including the 

7 results of the evaluations conducted under this sub8 title, the State performance reports provided for 

9 pursuant to section 678E(a)(1)(C), and other mate10 rial as provided by section 678E(b)(2) to the Com11 mittee on Education and the Workforce of the 

12 House of Representatives and the Committee on 

13 Health, Education, Labor, and Pensions of the Sen14 ate.’’. 

15 SEC. 111. CORRECTIVE ACTION; TERMINATION AND REDUC16 TION OF FUNDING. 

17 Section 678C of the Community Services Block 

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

19 (1) in subsection (a)—

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

21 the end; and 

22 (B) by striking paragraph (5) and insert23 ing the following: 

24 ‘‘(5) if the eligible entity fails to correct the de25 ficiency, notify the entity—
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1 ‘‘(A) that the State intends to initiate pro2 ceedings to terminate the designation of the en3 tity as an eligible entity or to reduce, from the 

4 previous year, the proportion of the total fund5 ing received by the State under this subtitle 

6 that is allocated to the eligible entity; 

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

8 to a hearing on the record to determine if there 

9 is cause for such termination or reduction in 

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

11 the request for a hearing must be made in writ12 ing to the State within 30 days of receipt of the 

13 notice from the State; and 

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

15 termination or reduction in funding, the factual 

16 findings on which the proposed termination or 

17 reduction in funding is based or a reference to 

18 specific findings in another document that form 

19 the basis for the proposed termination or reduc20 tion in funding (such as a reference to item 

21 numbers in an on-site review report or instru22 ment), and citation to any statutory provisions, 

23 agreements, regulations, or State plan; and 

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

25 conduct a hearing on the record to determine if 
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1 there is cause for termination or a reduction in 

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

3 (2) in subsection (b)—

4 (A) by striking ‘‘review such a determina5 tion’’ and inserting ‘‘review and either approve, 

6 or disapprove and reverse, such a determina7 tion’’; 

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

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

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

11 ‘‘30th day’’; and 

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

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

14 eligible entity, in an amount equal to the same pro15 portion of total funds received by the State under 

16 this subtitle as was allocated to the eligible entity 

17 the previous year, until the Secretary approves, or 

18 disapproves and reverses, the determination of ter19 mination or reduction in funding with respect to the 

20 State.’’. 

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

22 Section 678D of the Community Services Block 

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

24 (1) in subsection (a)(1)—
25

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

2 ‘‘and’’ at the end; 

3 (B) by redesignating subparagraph (D) as 

4 subparagraph (F); and 

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

6 the following: 

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

8 beginning in fiscal year 2005, and not less than 

9 every 2 years thereafter, each State shall sub10 mit to the Secretary a separate audit of the 

11 funds appropriated under this subtitle that 

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

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

14 Secretary not later than 6 months following the 

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

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

17 the following: ‘‘The Secretary, after providing ade18 quate notice, shall withhold administrative funds de19 scribed in section 675C(b)(2) from any State that 

20 fails to comply with the provisions of sections 678A 

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

22 a hearing conducted within the affected State, with23 hold funds from the State and provide such funds 

24 directly to the eligible entities in such State upon a
26

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1 demonstration of the compliance by such entities 

2 with the requirements of this subtitle.’’

3 SEC. 113. ACCOUNTABILITY AND REPORTING REQUIRE4 MENT. 

5 Section 678E of the Community Services Block 

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

7 ‘‘SEC. 678E. ACCOUNTABILITY AND REPORTING REQUIRE8 MENTS. 

9 ‘‘(a) STATE ACCOUNTABILITY AND REPORTING RE10 QUIREMENTS.—

11 ‘‘(1) PERFORMANCE MEASUREMENT OF ELIGI12 BLE ENTITIES.—

13 ‘‘(A) IN GENERAL.—Each State that re14 ceives funds under this subtitle shall partici15 pate, and shall ensure that all eligible entities 

16 in the State participate, in a performance meas17 urement system, which may be a performance 

18 measurement system for which the Secretary 

19 facilitated development pursuant to subsection 

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

21 is satisfied meets the requirements of sub22 section (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 

2 system. If the State makes that election, ref3 erences in this section to eligible entities shall 

4 be considered to include the local agencies. 

5 ‘‘(C) PERFORMANCE MEASUREMENT OF

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

7 of enactment of the Poverty Reduction and Pre8 vention Act, the Secretary shall establish, in 

9 consultation with States and eligible entities, 

10 performance standards for the State adminis11 tration of block grant funds. Such standards 

12 shall include standards relating to—

13 ‘‘(i) the timeliness of the availability 

14 of State plans for public comment as re15 quired under section 676(a)(2)(B) and of 

16 submission of such plans to the Secretary 

17 as required 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 
28

•S 1786 IS 

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 

14 other State programs for low-income indi15 viduals and their families, especially par16 ticipants in the Temporary Assistance for 

17 Needy Families Program and other work18 ing families, and to ensure the participa19 tion of eligible entities in the development 

20 of statewide strategies to reduce poverty; 

21 and 

22 ‘‘(vi) the assistance provided to eligi23 ble entities in securing private partnerships 

24 as required in section 676(b). 
29

•S 1786 IS 

1 ‘‘(2) ANNUAL REPORT.—Each State shall annu2 ally prepare and submit to the Secretary a report on 

3 the measured performance of the State and the eligi4 ble entities in the State. The State shall include in 

5 the report any information collected by the State re6 lating to such performance. Each State shall also in7 clude in the report an accounting of the expenditure 

8 of funds received by the State through the commu9 nity services block grant program, including an ac10 counting of funds spent on administrative costs by 

11 the State and the eligible entities, funds spent by eli12 gible entities on the direct delivery of local services, 

13 and the achievement of national goals established 

14 under the procedures described in this section, and 

15 shall include information on the number of and 

16 characteristics of clients served under this subtitle in 

17 the State, based on data collected from the eligible 

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

19 summary describing the training and technical as20 sistance offered by the State under section 

21 678C(a)(3) during the year covered by the report. 

22 ‘‘(b) LOCAL ENTITY ACCOUNTABILITY AND REPORT23 ING REQUIREMENTS.—

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

25 order to be designated as an eligible entity and to 
30

•S 1786 IS 

1 receive a grant under this subtitle, a grantee shall 

2 establish grantee determined goals for reducing pov3 erty in the community, including goals for— 

4 ‘‘(A) leveraging community resources; 

5 ‘‘(B) fostering coordination of Federal, 

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

7 ‘‘(C) promoting community involvement. 

8 ‘‘(2) DEMONSTRATION THAT GOALS WERE

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

10 first grant that is provided to an eligible entity fol11 lowing the date of enactment of the Poverty Reduc12 tion and Prevention Act, the entity shall dem13 onstrate to the State that substantial progress has 

14 been made in meeting the goals of the entity as de15 scribed in paragraph (1). 

16 ‘‘(3) GOALS OR PERFORMANCE MEASURES.—

17 Any specific goals or performance measures, for an 

18 individual eligible entity, that are used in any moni19 toring or review process under this subtitle, shall 

20 be—

21 ‘‘(A) determined by the entity; 

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

23 the entity, during the planning process leading 

24 to the grant involved; and
31

•S 1786 IS 

1 ‘‘(C) incorporated into the grant agree2 ment between the State and entity for each 

3 subsequent award cycle. 

4 ‘‘(c) SECRETARY’S ACCOUNTABILITY AND REPORT5 ING REQUIREMENTS.—

6 ‘‘(1) FEDERAL PERFORMANCE MEASURE7 MENT.—The Secretary shall establish goals for the 

8 Department of Health and Human Services Office of 

9 Community Services with respect to—

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

11 funds under this subtitle, including funds for 

12 training and technical assistance; 

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

14 for in section 678D; 

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

16 Community Service programs with the activities 

17 of States and eligible entities under this sub18 title; and 

19 ‘‘(D) the full and timely reporting as re20 quired in this section. 

21 ‘‘(2) LOCAL PERFORMANCE MEASUREMENT.—

22 ‘‘(A) IN GENERAL.—To the maximum ex23 tent practicable, the Secretary shall coordinate 

24 reporting requirements for all programs of the 

25 Department of Health and Human Services 
32

•S 1786 IS 

1 that are managed by eligible entities so as to 

2 consolidate and reduce the number of reports 

3 required relating to individuals, families, and 

4 uses of grant funds, specifically funds under the 

5 Head Start Act, the Low-Income Home Energy 

6 Assistance Act of 1981, child care programs ad7 ministered by the Department, and health re8 lated service programs administered by the De9 partment. 

10 ‘‘(B) TECHNICAL ASSISTANCE.—The Sec11 retary shall provide technical assistance, includ12 ing support for the enhancement of electronic 

13 data systems, to States and to eligible entities 

14 to enhance their capability to collect and report 

15 data for such a system and to aid in their par16 ticipation in such a system. 

17 ‘‘(C) LOCAL ENTITY PERFORMANCE MEAS18 UREMENT SYSTEM.—The Secretary shall assist 

19 in the implementation of a local entity perform20 ance measurement system, and other voluntary 

21 programmatic and results reporting systems, 

22 developed by States, eligible entities, and their 

23 national associations acting together. The Sec24 retary and the developers of such systems shall 

25 ensure that the set of measures are numerous 
33

•S 1786 IS 

1 enough to cover the full range of services of2 fered by all local eligible entities. Under such a 

3 system, local eligible entities shall only be com4 pelled to collect data on the subset of perform5 ance measures that reflect their community-spe6 cific programs and services currently adopted. 

7 Grantees shall not be required under this sub8 paragraph to alter the collection of data for any 

9 reports provided for other programs within the 

10 Department of Health and Human Services or 

11 other Federal agencies. States shall compile an12 nual Results Oriented Management and Ac13 countability System reports for the Secretary 

14 under this subparagraph. 

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

16 fiscal year the Secretary shall, directly or by grant 

17 or contract, prepare a report containing—

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

19 funds by each State, and the eligible entities in 

20 the State, under the community services block 

21 grant program, as contained in each State plan 

22 submitted pursuant to section 676; 

23 ‘‘(B) a description of how funds were actu24 ally spent by the State and eligible entities in 

25 the State, including a breakdown of funds spent 
34

•S 1786 IS 

1 on administrative costs and on the direct deliv2 ery of local programs by eligible entities; 

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

4 eligible for funds under this subtitle, the num5 ber of low-income persons served under this 

6 subtitle, and such demographic data on the low7 income populations served by eligible entities as 

8 is determined by the Secretary to be feasible; 

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

10 funds for each State and the actual uses of the 

11 funds; 

12 ‘‘(E) a summary of each State’s perform13 ance results, and the results for the eligible en14 tities, as collected and submitted by the States 

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

16 ‘‘(F) any additional information that the 

17 Secretary considers to be appropriate to carry 

18 out this subtitle, if the Secretary informs the 

19 States of the need for such additional informa20 tion and allows a reasonable period of time for 

21 the States to collect and provide the informa22 tion. 

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

24 to the Committee on Education and the Workforce 

25 of the House of Representatives and the Committee 
35

•S 1786 IS 

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

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

3 any comments the Secretary may have with respect 

4 to such report. The report shall include definitions 

5 of direct and administrative costs used by the De6 partment of Health and Human Services for pro7 grams funded under this subtitle. 

8 ‘‘(5) COSTS.—Of the funds reserved under sec9 tion 674(b)(3), not more than $500,000 shall be 

10 available to carry out the reporting requirements 

11 contained in paragraph (3).’’. 

12 SEC. 114. LIMITATIONS ON USE OF FUNDS. 

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

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

15 ‘‘religion,’’ after ‘‘race,’’. 

16 SEC. 115. OPERATIONAL RULE. 

17 Section 679(a) of the Community Services Block 

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

19 ‘‘and such organization meets the requirements of this 

20 subtitle’’ before the first period; 

21 SEC. 116. DISCRETIONARY AUTHORITY OF THE SECRETARY. 

22 Section 680 of the Community Services Block Grant 

23 Act (42 U.S.C. 9921) is amended—

24 (1) in subsection (a)—

25 (A) in paragraph (2)—
36

•S 1786 IS 

1 (i) by redesignating subparagraphs 

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

3 through (G), respectively; 

4 (ii) by striking subparagraph (A) and 

5 inserting the following: 

6 ‘‘(A) ECONOMIC DEVELOPMENT ACTIVI7 TIES.—The Secretary shall make grants de8 scribed in paragraph (1) on a competitive basis 

9 to private, nonprofit organizations that are 

10 community development corporations to provide 

11 technical and financial assistance for economic 

12 development activities, including business, eco13 nomic, and community development projects, 

14 designed to address the economic needs of low15 income individuals and families by creating em16 ployment and business development opportuni17 ties. Such assistance shall include—

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

19 or investments for private business enter20 prises; 

21 ‘‘(ii) providing capital to businesses 

22 owned by community development corpora23 tions; and 

24 ‘‘(iii) marketing and management as25 sistance for businesses providing jobs and 
37

•S 1786 IS 

1 business opportunities to low income indi2 viduals. 

3 ‘‘(B) FEDERAL INTEREST.—

4 ‘‘(i) IN GENERAL.—The Secretary 

5 shall establish procedures that permit a 

6 grantee who receives funds under a grant 

7 to carry out this paragraph, or intangible 

8 assets acquired with such funds, to become 

9 the sole owner of the funds or assets be10 fore the end of the 12-year period begin11 ning at the end of the fiscal year for which 

12 the grant is made. 

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

14 become the sole owner, the grantee shall 

15 agree—

16 ‘‘(I) to use the funds or assets 

17 for the purposes and uses for which 

18 the grant was made, or purposes and 

19 uses consistent with this subtitle, dur20 ing and after the 12-year period de21 scribed in clause (i), whether or not 

22 the grantee continues to be supported 

23 by Federal funds; and 

24 ‘‘(II) that, when the grantee no 

25 longer needs the funds or assets for 
38

•S 1786 IS 

1 purposes and uses described in sub2 clause (I), the grantee shall request 

3 instructions from the Secretary about 

4 the disposition of the funds or assets. 

5 ‘‘(iii) ENCUMBERING.—The grantee 

6 may not encumber the assets without the 

7 approval of the Secretary. 

8 ‘‘(C) ADMINISTRATIVE REQUIREMENTS.—

9 In a case in which an eligible project under 

10 grant made under this section cannot, for good 

11 cause, be implemented, the Secretary shall es12 tablish a policy to permit the substitution of 

13 other eligible projects. Such policy shall require 

14 that such project have the same impact area, 

15 the same goals, and the same objectives as the 

16 original project and outcomes that are substan17 tially the same as the original project.’’; 

18 (iii) in subparagraph (E) (as so redes19 ignated), by striking ‘‘community’’ and in20 serting ‘‘service area’’; and 

21 (iv) in subparagraph (G) (as so redes22 ignated), by striking ‘‘1 percent’’ and in23 serting ‘‘2 percent’’; and 
39

•S 1786 IS 

1 (B) in paragraph (3)(B), by striking ‘‘com2 munity’’ and inserting ‘‘water and waste 

3 water’’; and 

4 (C) in paragraph (4), by striking ‘‘indi5 vidual and families’’ and inserting ‘‘individual 

6 and their families’’; and 

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

8 Human Resources’’ and inserting ‘‘Health, Edu9 cation, Labor, and Pensions’’. 

10 SEC. 117. COMMUNITY FOOD AND NUTRITION PROGRAMS. 

11 Section 681 of the Community Services Block Grant 

12 Act (42 U.S.C. 9922) is amended—

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

14 Human Resources’’ and inserting ‘‘Health, Edu15 cation, Labor, and Pensions’’; and 

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

17 2003’’ and inserting ‘‘2004 through 2009’’. 

18 SEC. 118. NATIONAL OR REGIONAL PROGRAMS DESIGNED 

19 TO PROVIDE INSTRUCTIONAL ACTIVITIES 

20 FOR LOW-INCOME YOUTH. 

21 Section 682 of the Community Services Block Grant 

22 Act (42 U.S.C. 9923) is amended—

23 (1) in subsection (b)(2), by striking ‘‘or treat24 ment’’; and 
40

•S 1786 IS 

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

2 for each of fiscal years 1999 through 2003’’ and in3 serting ‘‘$18,000,000 for each of fiscal years 2004 

4 through 2009’’. 

5 SEC. 119. SHORT TITLE AND CONFORMING AMENDMENTS. 

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

7 Services Block Grant Act (42 U.S.C. 9901 note) is amend8 ed by striking ‘‘Community Services Block Grant Act’’ 

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

10 (b) CONFORMING AMENDMENTS.—

11 (1) COMMUNITY SERVICES BLOCK GRANT

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

13 Omnibus Budget Reconciliation Act of 1981 is 

14 amended to read as follows: 

15 ‘‘Subtitle B—Poverty Reduction 

16 and Prevention Program’’. 

17 (2) OTHER PROVISIONS OF LAW.—The fol18 lowing provisions of law are each amended by strik19 ing ‘‘Community Services Block Grant Act’’ each 

20 place that such appears and inserting ‘‘Poverty Re21 duction and Prevention Act’’: 

22 (A) Section 307(a)(3)(A) of the Consoli23 dated Farm and Rural Development Act (7 

24 U.S.C. 1927(a)(3)(A)).
41

•S 1786 IS 

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

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

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

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

5 7501(7)). 

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

7 Investment in Microentrepreneurs Act of 1999 

8 (15 U.S.C. 6901(13)). 

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

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

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

12 1085(o)(1)(A)(ii), and 1085(o)(1)(B)(ii)). 

13 (F) Section 131(b)(2) of the Carl D. Per14 kins Vocational and Applied Technology Edu15 cation Act (20 U.S.C. 2351(b)(2)). 

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

17 and Secondary Education Act of 1965 (20 

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

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

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

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

22 121(b)(1)(B)(x), and 501(b)(2)(O) of the 

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

24 2801(36), 2822(b)(8)(A)(vii), and 
42

•S 1786 IS 

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

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

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

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

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

6 of title 31, United States Code. 

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

8 United States Code. 

9 (M) Section 317M(c)(3)(B)(ii) of the Pub10 lic Health Service Act (42 U.S.C. 247b11 14(c)(3)(B)(ii)). 

12 (N) Section 2110(c)(5) of the Social Secu13 rity Act (42 U.S.C. 1397jj(c)(5)). 

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

15 306(a)(6)(C), and 503(b)(2) of the Older Amer16 icans Act of 1965 (42 U.S.C. 3002(38), 

17 3013(b)(13), 3020d, 3026(a)(6)(C), and 

18 3056a(b)(2)). 

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

20 211(e)(1), and 421(6) of the Domestic Volun21 teer Service Act of 1973 (42 U.S.C. 4953(a)(6), 

22 4955(b)(2)(A), 5011(e)(1), and 5061(6)). 

23 (Q) Sections 2603(8) and 

24 2607B(e)(2)(B)(i) of the Low-Income Home 
43

•S 1786 IS 

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

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

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

4 of the Human Services Reauthorization of 1986 

5 (42 U.S.C. 9812a(b)(2) and 9925(a)(1)(C)). 

6 (S) Section 630(a) of the Community Eco7 nomic Development Act of 1981 (42 U.S.C. 

8 9819(a)). 

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

10 National and Community Service Act of 1990 

11 (42 U.S.C. 12618(b) and 12638(i)(1)). 

12 (U) The 5th unnumbered paragraph (relat13 ing to poverty line) of section 30401 of the 

14 Community Schools Youth Services and Super15 vision Grant Program Act of 1994 (42 U.S.C. 

16 13791). 

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 

21 Energy Assistance Amendments of 2003’’. 

22 SEC. 202. REAUTHORIZATION. 

23 (a) IN GENERAL.—Section 2602(b) of the Low-In24 come Home Energy Assistance Act of 1981 (42 U.S.C. 

25 8621(b)) is amended in the first sentence by striking 
44

•S 1786 IS 

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

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

3 2004 through 2006, and such sums as may be necessary 

4 for each fiscal year thereafter.’’. 

5 (b) PROGRAM YEAR.—Section 2602(c) of the Low6 Income 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 NON10 FEDERAL RESOURCES.—Section 2602(d) of the Low-In11 come Home Energy Assistance Act of 1981 (42 U.S.C. 

12 8621(d)) is amended—

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

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

15 and 

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

17 inserting ‘‘2004 through 2010’’. 

18 SEC. 203. NATURAL DISASTERS AND OTHER EMERGENCIES. 

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

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

21 by adding at the end the following flush sentences: 

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

23 purposes of making determinations under section 

24 2603(1)(C), if the Secretary determines that there is an 

25 increase of at least 20 percent in the cost of home energy 
45

•S 1786 IS 

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

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

3 shall declare an energy emergency in the affected area and 

4 shall make available funds as provided in this subsection. 

5 Notwithstanding any other provision of this section, for 

6 purposes of making such determinations, if the Secretary 

7 determines that the number of heating degree days or 

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

9 30-year average in one or more States or regions, the Sec10 retary shall declare an energy emergency in the affected 

11 area and shall make available funds as provided in this 

12 subsection.’’. 

13 SEC. 204. RESIDENTIAL ENERGY ASSISTANCE CHALLENGE 

14 OPTION. 

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

16 United States shall conduct an evaluation of the Residen17 tial Energy Assistance Challenge program described in 

18 section 2607B of the Low-Income Home Energy Assist19 ance Act of 1981 (42 U.S.C. 8626b). 

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

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

22 United States shall prepare and submit to the Committee 

23 on Education and the Workforce of the House of Rep24 resentatives and the Committee on Health, Education, 

25 Labor, and Pensions of the Senate a report containing—
46

•S 1786 IS 

1 (1) the findings resulting from the evaluation 

2 described in subsection (a); and 

3 (2) the State evaluations described in para4 graphs (1) and (2) of section 2607B(b) of the Low5 Income Home Energy Assistance Act of 1981 (42 

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

7 SEC. 205. REPORT TO CONGRESS. 

8 (a) STUDY.—

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

10 Human Services shall conduct a study on the Low11 Income Home Energy Assistance Act of 1981 (42 

12 U.S.C. 8621 et seq.) 

13 (2) REQUIREMENTS.—In conducting the study 

14 under subparagraph (A), the Secretary of Health 

15 and Human Services shall— 

16 (A) evaluate the performance of the Low17 Income Home Energy Assistance Program, in18 cluding who the program is serving, the benefits 

19 of the program to recipients, and the ability of 

20 the program to reduce utility arrearage and 

21 shut-offs among low-income households; 

22 (B) develop a protocol for States to collect 

23 information from energy distribution compa24 nies, including electric, natural gas, heating oil, 
47

•S 1786 IS 

1 and propane companies, concerning the fol2 lowing residential customer statistics— 

3 (i) the number of accounts certified as 

4 eligible for energy assistance; 

5 (ii) the number of accounts certified 

6 as eligible for energy assistance and that 

7 are past due; 

8 (iii) the total revenue owed on ac9 counts eligible for energy assistance and 

10 that are past due; 

11 (iv) the number of disconnection no12 tices issued on accounts eligible for energy 

13 assistance; 

14 (v) the number of disconnections for 

15 nonpayment; 

16 (vi) the number of reconnections; 

17 (vii) the number of accounts eligible 

18 for energy assistance and determined 

19 uncollectible; and 

20 (viii) the energy burden of accounts 

21 eligible for energy assistance; 

22 (C) analyze the public health and safety 

23 threats of hypothermia and hyperthermia due 

24 to a lack of home heating or home cooling, in-
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•S 1786 IS 

1 cluding mortality, morbidity, and decrease in 

2 caloric intake; 

3 (D) analyze the affect of the standard of 

4 housing and housing age on energy costs to 

5 low-income households; 

6 (E) evaluate regional difference in cost-of7 living and the ability of low-income families to 

8 meet home energy requirements; and 

9 (F) determine the programmatic impacts 

10 of using 60 percent of State median income to 

11 determine low-income households. 

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

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

14 Human Services shall submit to Congress a report con15 taining the results of the study conducted under sub16 section (a). 

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

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

19 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

20 are authorized to be appropriated to carry out this sub21 section such sums as may be necessary for each of fiscal 

22 year 2004 and 2005. 

23 (e) CONTRACTS.—Using amounts appropriated under 

24 subsection (d), the Secretary of Health and Human Serv25 ices may enter into contracts or jointly financed coopera-
49

•S 1786 IS 

1 tive agreements or interagency agreements with States 

2 and public agencies and private nonprofit organizations to 

3 conduct the study under subsection (a). 

4 TITLE III—ASSETS FOR 

5 INDEPENDENCE ACT 

6 SEC. 301. SHORT TITLE. 

7 This title may be cited as the ‘‘Assets for Independ8 ence 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’’ be19 fore 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—
50

•S 1786 IS 

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 post-secondary education.’’. 

14 (b) REPEAL OF PROVISION.—Section 405 of the As15 sets for Independence Act (42 U.S.C. 604 note) is amend16 ed by 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 

22 (A) and (B) as subparagraphs (B) and 

23 (C), respectively; and

24 (ii) by inserting before subparagraph 

25 (B) (as so redesignated) the following: 
51

•S 1786 IS 

1 ‘‘(A) all grant funds provided to the quali2 fied entity from the Secretary for the purpose 

3 of the demonstration project as described under 

4 subsection (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 

11 that is 12 months after’’ after ‘‘upon the’’. 

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

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

14 by 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 

23 in subparagraphs (A), (C), and (D) of para24 graph (1). 
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1 ‘‘(B) PRIORITY.—In awarding grants 

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

3 priority to qualified entities that submit appli4 cations that, with respect to the commitment of 

5 non-Federal funds under section 5(c)(4), pro6 vide assurances that are not to exceed 15 per7 cent of such non-Federal funds will be used by 

8 the qualified entity for the purposes described 

9 in subparagraphs (A), (C), and (D) of para10 graph (1).’’. 

11 (e) ELIGIBILITY FOR PARTICIPATION.—Section 

12 408(a)(1) of the Assets for Independence Act (42 U.S.C. 

13 604 note) is amended to read as follows: 

14 ‘‘(1) INCOME TEST.—The—

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

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

17 of the poverty line (as determined by the 

18 Office of Management and Budget); 

19 ‘‘(ii) the earned income amount de20 scribed in section 32 of the Internal Rev21 enue Code of 1986 (taking into account 

22 the size of the household); or 

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

24 of the Area Median Income (as determined 
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1 by the Department of Housing and Urban 

2 Development); or 

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

4 the household for the previous year does not ex5 ceed $18,000 for an individual filer, $30,000 

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

7 filer.’’. 

8 (f) DEPOSITS BY QUALIFIED ENTITIES.—Section 

9 410 of the Assets for Independence Act (42 U.S.C. 604 

10 note) is amended—

11 (1) in subsection (a), by striking ‘‘qualified en12 tity—’’ and all that follows through the end and in13 serting the following: ‘‘qualified entity, a matching 

14 contribution of not less than $0.50 and not more 

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

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

17 1986) deposited in the account and interest earned 

18 on that account by a project participant during that 

19 period. Matching contributions shall be made—

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

21 section 405(c)(4); and 

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

23 ‘‘based on a ratio relating to the sources of funds de24 scribed in paragraph (1) and (2) as determined by the 

25 qualified entity.’’; 
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1 (2) by redesignating subsections (b) through (e) 

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

3 (3) by inserting after subsection (a), the fol4 lowing: 

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

6 FUNDS EARNED ON THE RESERVE FUND.—Interest that 

7 accrues on the matching funds earned and held in the Re8 serve Fund, over and above the interest required to match 

9 an individuals deposits and interest earned in the indi10 vidual development account, shall be used by the qualified 

11 entity to fund existing individual development accounts or 

12 additional individual development accounts.’’. 

13 (g) AUTHORIZATION OF APPROPRIATIONS.—Section 

14 416 of the Assets for Independence Act (42 U.S.C. 604 

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

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

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

18 through 2008,’’. 

19 (h) APPLICATION OF AMENDMENTS.—In admin20 istering the Assets for Independence Act (42 U.S.C. 604 

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

22 apply the amendments made by this section to individual 

23 account holders and entities that received grants under 
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•S 1786 IS 

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

2 this Act.

Æ