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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1786 Introduced in Senate (IS)]

108th CONGRESS
  1st Session
                                S. 1786

 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.

_______________________________________________________________________

                   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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Poverty Reduction 
and Prevention Act''.
    (b) Table of Contents.--The table of contents of 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.

              TITLE I--COMMUNITY SERVICES BLOCK GRANT ACT

SEC. 101. PURPOSES.

    Section 672 of the Community Services Block Grant Act (42 U.S.C. 
9901) is amended to read as follows:

``SEC. 672. PURPOSES.

    ``The purpose of this subtitle is to reduce poverty--
            ``(1) by strengthening and coordinating local efforts to 
        expand opportunities for individuals and families to become 
        economically self-sufficient and to improve and revitalize the 
        communities in which low-income Americans live, by providing 
        resources to States for support of local eligible entities and 
        their partners to--
                    ``(A) plan, coordinate, and mobilize a broad range 
                of Federal, State, local, and private assistance or 
                investment in such a manner as to use these resources 
                effectively to reduce poverty and in initiatives that 
                are responsive to specific local needs and conditions;
                    ``(B) organize multiple services that meet the 
                needs of low-income families and individuals, 
                especially low-wage workers and their families, and 
                that assist them in developing the assets and skills 
                needed to become self sustaining while ensuring that 
                these services are provided efficiently, in appropriate 
                combinations, and in effective sequence; and
                    ``(C) design and implement comprehensive approaches 
                to assist individuals transitioning from the Temporary 
                Assistance to Needy Families Program to work;
            ``(2) by improving and revitalizing the communities in 
        which low-income Americans live by providing resources to--
                    ``(A) broaden the financial resource base of 
                initiatives and projects directed to the elimination of 
                poverty and the re-development of the low-income 
                community, including partnerships with non-governmental 
                and governmental institutions to develop the community 
                assets and services that reduce poverty, such as--
                            ``(i) other private, charitable, 
                        neighborhood-based, and religious 
                        organizations;
                            ``(ii) individual citizens, and businesses, 
                        labor, and professional groups, who are able to 
                        influence the quantity and quality of 
                        opportunities and services for the poor; and
                            ``(iii) local government leadership; and
                    ``(B) coordinate or create community-wide assets 
                and services that will have a significant, measurable 
                impact on the causes of poverty in the community and 
                that will help families and individuals to achieve 
                economic self-sufficiency, and test innovative, 
                community-based approaches to attacking the causes and 
                effects of poverty and of community breakdown, 
                including--
                            ``(i) innovative initiatives to prevent and 
                        reverse loss of investment, jobs, public 
                        services, and infrastructure in low- and 
                        moderate-income communities; and
                            ``(ii) innovative partnerships to develop 
                        the assets and services that reduce poverty, as 
                        provided for in subparagraph (A); and
            ``(3) by ensuring maximum participation of residents of 
        low-income communities and of members of the groups served by 
        programs under this subtitle in guiding the eligible entities 
        and in their programs funded under this subtitle to ameliorate 
        the particular problems and needs of low-income residents of 
        their communities and to develop the permanent social and 
        economic assets of the low-income community in order to reduce 
        the incidence of poverty.''.

SEC. 102. DEFINITIONS.

    Section 673 of the Community Services Block Grant Act (42 U.S.C. 
9902) is amended--
            (1) in paragraph (1)(A)(ii), by striking ``or other 
        mechanism''; and
            (2) in paragraph (2)--
                    (A) in the first sentence--
                            (i) by striking ``Office of Management and 
                        Budget'' and inserting ``Department of Health 
                        and Human Services''; and
                            (ii) by inserting before the period the 
                        following: ``and increased, as the Secretary 
                        determines appropriate, to take into account 
                        higher costs-of-living for a State''; and
                    (B) by striking the last sentence and inserting the 
                following: ``Whenever a State determines that is has 
                served the objectives of the block grant program 
                established under this subtitle, the State may revise 
                the poverty line, while placing a priority in serving 
                those who are most in need, so that 125 percent of the 
                official poverty line is the minimum level that a State 
                shall be permitted to set as its maximum eligibility 
                requirement and 60 percent of the State's median income 
                is the maximum level that a State shall be permitted to 
                set as its maximum eligibility requirement. The State 
                may revise the poverty line only upon a determination 
                that eligible entities are providing, coordinating, or 
                partnering with means-tested support services for low 
                and moderate-income individuals and families above the 
                official poverty line. Nothing in this paragraph shall 
                be construed to prevent eligible entities from 
                continuing to support individuals and families during 
                their transition from program eligibility to achieve 
                specific goals for their economic security and long-
                term self-sufficiency as long as priority is given to 
                serving the lowest income individuals who seek 
                services.''.

SEC. 103. AUTHORIZATION OF APPROPRIATIONS.

    Section 674 of the Community Services Block Grant Act (42 U.S.C. 
9903) is amended--
            (1) in subsection (a), by striking ``1999 through 2003'' 
        and inserting ``2004 through 2009''; and
            (2) in subsection (b)(2)--
                    (A) in subparagraph (A), by striking ``or 
                associations'' and inserting ``and associations''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``\1/2\ of the remainder'' 
                        and inserting ``not less than \1/2\ of the 
                        remainder''; and
                            (ii) by striking ``evaluation and'' and 
                        inserting ``evaluation and training and 
                        technical assistance activities and''.

SEC. 104. ESTABLISHMENT OF PROGRAM.

    Section 675 of the Community Services Block Grant Act (42 U.S.C. 
9904) is amended by striking ``through the program'' and all that 
follows through the period and inserting ``to States for the purpose of 
ameliorating the causes of poverty and the conditions caused by poverty 
in their communities.''.

SEC. 105. USE OF FUNDS.

    Section 675C(b) of the Community Services Block Grant Act (42 
U.S.C. 9907) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``entities in 
                need of such training and assistance'' and inserting 
                ``eligible entities and their statewide associations 
                that strengthens their managerial or programmatic 
                capabilities to reduce poverty''; and
                    (B) by striking subparagraphs (B) through (H), and 
                inserting the following:
                    ``(B) supporting statewide coordination and 
                communication among eligible entities and State-
                operated or supported programs and services, and other 
                locally-operated programs and services targeted to low-
                income individuals and their children and families, so 
                as to ensure that local eligible entities' services are 
                integrated in a manner that allows such low-income 
                individual and their families to have access to as many 
                sources of assistance as are appropriate to support 
                their progress to economic stability and self-
                sufficiency;
                    ``(C) supporting innovative partnerships, programs, 
                and activities conducted by community action agencies 
                and their partners including other community-based 
                organizations to eliminate poverty, promote self-
                sufficiency, and promote community revitalization, 
                including asset-building programs for low-income 
                individuals, such as programs supporting individual 
                development accounts, and home or business ownership;
                    ``(D) analyzing the distribution of funds made 
                available under this subtitle within the State to 
                determine if such funds have been targeted to the areas 
                of greatest need;
                    ``(E) supporting State charity tax credits as 
                described in subsection (c);
                    ``(F) supporting the identification of exemplary 
                grantee agencies or programs as Centers of Innovation 
                and methodology for disseminating innovative programs 
                and other best practices from those agencies statewide;
                    ``(G) supporting the development of eligible 
                entities' partnerships with local law enforcement 
                agencies, local housing authorities, private 
                foundations, and other public and private partners; and
                    ``(H) supporting other activities, consistent with 
                the purposes of this subtitle.'';
            (2) in paragraph (2), by adding at the end the following: 
        ``. The State shall also ensure that all funds distributed 
        under subsection (a) are not used for excessive administrative 
        expenses and that all funds distributed under such subsection 
        used for salaries by a local entity are fair and equitable. The 
        State has the authority to determine the appropriate level of 
        funds distributed under subsection (a) that an eligible entity 
        shall use for administrative expenses.''.

SEC. 106. APPLICATION AND PLAN.

    Section 676 of the Community Services Block Grant Act (42 U.S.C. 
9908) is amended--
            (1) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``for the Secretary's approval'' after ``to 
                the Secretary'';
                    (B) by striking paragraphs (1) through (6) and 
                inserting the following:
            ``(1) an assurance that funds made available through the 
        grant or allotment will be used--
                    ``(A) to support activities directly and through 
                eligible entities that are designed to expand 
                opportunities for and assist low-income individuals and 
                their families (including low-income workers) to become 
                self-sufficient, including low-income workers, 
                families, and individuals receiving assistance under 
                part A of title IV of the Social Security Act (42 
                U.S.C. 601 et seq.), homeless families and individuals, 
                migrant or seasonal farmworkers, and elderly low-income 
                individuals and families, and a description of how such 
                activities will enable the families and individuals--
                            ``(i) to remove obstacles and solve 
                        problems that block the achievement of self-
                        sufficiency by organizing and coordinating 
                        support for those served under paragraph (3);
                            ``(ii) to secure and retain employment that 
                        provides adequate income with essential 
                        benefits;
                            ``(iii) to attain an adequate education, 
                        with particular attention toward improving 
                        literacy and communications and technical 
                        skills of the low-income families in the 
                        communities involved;
                            ``(iv) to make better use of available 
                        income and build household assets;
                            ``(v) to obtain and maintain adequate 
                        housing and a suitable living environment;
                            ``(vi) to obtain assistance that is needed 
                        to resolve family emergencies and individual 
                        needs, to prevent further hardships, and to 
                        secure economic independence; and
                            ``(vii) to participate fully in the public 
                        affairs and management of their communities and 
                        the governance of eligible entities; and
                    ``(B) to make more effective use of, and to 
                coordinate with, other programs related to the purposes 
                of this subtitle (including State welfare reform 
                efforts);
            ``(2) a description of how the State intends to use 
        discretionary funds made available from the remainder of the 
        grant or allotment described in section 675C(b) in accordance 
        with this subtitle, including a description of how the State 
        will support innovative community-based initiatives of eligible 
        entities and their partners related to the purposes of this 
        subtitle;
            ``(3) an assurance that the State has integrated programs 
        of general relevance in its plan, to the extent appropriate to 
        the needs of low-income communities served by the eligible 
        entities, including a description of innovative community and 
        neighborhood-based initiatives such as--
                    ``(A) initiatives with the goal of strengthening 
                families and encouraging effective parenting, including 
                fatherhood initiatives;
                    ``(B) initiatives to assist those moving from 
                welfare to work to obtain jobs at decent wages with 
                benefits, including those low-income individuals and 
                their families who are attempting to transition off a 
                State program carried out under part A of title IV of 
                the Social Security Act;
                    ``(C) programs for the establishment of violence-
                free zones that would involve youth development and 
                intervention models that promote youth success (such as 
                models involving youth mediation, youth mentoring, life 
                skills training, job creation, and entrepreneurship 
                programs);
                    ``(D) family literacy initiatives;
                    ``(E) initiatives to increase the development of 
                household assets of individuals such as individual 
                development accounts and homeownership opportunities;
                    ``(F) public and private partnerships to foster 
                community development, affordable housing, job 
                creation, and other means of building the assets of 
                low-income communities;
                    ``(G) partnerships with local law enforcement 
                agencies, which may include participation in community 
                policing, and activities to assist community residents 
                and public safety officials in the event of 
                emergencies, including threats to national security;
                    ``(H) initiatives to improve economic conditions 
                and mobilize new resources in rural areas and other at-
                risk areas to eliminate obstacles to the self 
                sufficiency of families and individuals in those 
                communities;
                    ``(I) initiatives to help reduce the concentration 
                of poverty in cities and inner suburbs and provide 
                economic opportunities for individuals and families in 
                those areas; and
                    ``(J) partnerships with nonprofit or community-
                based organizations that demonstrate effectiveness in 
                child abuse prevention, including with programs that 
                are school-based and that focus on adolescent victims, 
                and victimizers;
            ``(4) an assurance that the State will provide information, 
        including--
                    ``(A) a description of the State measurement system 
                and results for the performance goals established under 
                section 678E(a)(1)(C);
                    ``(B) a description of the service delivery system, 
                for services provided or coordinated with funds made 
                available through grants made under section 675C(a), 
                targeted to low-income individuals and families in 
                communities within the State;
                    ``(C) a description of how linkages will be 
                developed to fill identified gaps in the 
services, through the provision of information, referrals, case 
management, and followup consultations, and to support mobilization of 
new resources and partnerships;
                    ``(D) a description of how funds made available 
                through grants made under section 675C(a) will be 
                coordinated with other public and private resources; 
                and
                    ``(E) a description of how the local entity will 
                use the funds to support innovative community and 
                neighborhood-based initiatives related to the purposes 
                of this subtitle;
            ``(5) an assurance that eligible entities in the State will 
        provide, on an emergency basis, for the provision of such 
        supplies and services, nutritious foods, and related services, 
        as may be necessary to counteract conditions of starvation and 
        malnutrition among low-income individuals;
            ``(6) an assurance that the State has, to avoid duplication 
        of such services, and to ensure that program gaps are 
        addressed, identified and coordinated with eligible entity 
        programs, with State and local agencies, and with programs that 
        assist low-income individuals and their families, including--
                    ``(A) programs carried out under part A of title IV 
                of the Social Security Act, the Workforce Investment 
                Act, and other programs designed to coordinate work-
                related supportive services for families;
                    ``(B) programs for expanding housing opportunities, 
                reducing homelessness, and developing community 
                investment projects;
                    ``(C) education programs, including those for 
                preschool and school-aged children and for adults to 
                obtain an adequate education; and
                    ``(D) programs designed to support youth, the 
                homeless, migrants, senior citizens, and individuals 
                with disabilities, including programs under the Low-
                Income Home Energy Assistance Act of 1981;'';
                    (C) in paragraph (12), by striking ``not later than 
                fiscal year 2001'' and inserting ``annually'';
                    (D) in paragraph (13), by striking the period and 
                inserting ``in sufficient detail to permit 
                verification; and'';
                    (E) by adding at the end the following:
            ``(14) beginning with fiscal year 2006, and in each fiscal 
        year thereafter, an assurance that the State is using the 
        procedures described in section 678B(b) to monitor eligible 
        entities.''; and
            (2) by striking subsection (f).

SEC. 107. DESIGNATION OF ELIGIBLE ENTITIES IN UNDERSERVED AREAS.

    Section 676A(b) of the Community Services Block Grant Act (42 
U.S.C. 9909(b)) is amended by adding at the end the following: ``In 
granting such designation, the State shall deem private nonprofit 
eligible entities that are providing related services in the unserved 
area to be of demonstrated effectiveness, consistent with the needs 
identified by a community needs assessment.''.

SEC. 108. TRIPARTITE BOARDS.

    Section 676B(b) of the Community Services Block Grant Act (42 
U.S.C. 9910(b)) is amended--
            (1) by striking ``through--'' and all that follows through 
        ``a tripartite'' in paragraph (1) and inserting ``through a 
        tripartite'';
            (2) by striking paragraph (2);
            (3) in subparagraph (C), by striking ``; or'' and inserting 
        a period; and
            (4) by redesignating subparagraphs (A) through (C) as 
        paragraph (1) through (3), respectively and realigning the 
        margins of such paragraphs accordingly.

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

    Section 678A of the Community Services Block Grant Act (42 U.S.C. 
9913) is amended--
            (1) in subsection (a)(1)--
                    (A) in subparagraph (A), by striking ``corrective 
                action'' and all that follows through ``; and'' and 
                inserting ``monitoring and such additional corrective 
                actions as may be needed to strengthen the management 
                and programmatic practices of eligible entities;'';
                    (B) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) for State and local performance reporting and 
                program data collection activities related to programs 
                carried out under this subtitle;
                    ``(C) for the preparation of reports provided for 
                in section 678F;
                    ``(D) for the development and promulgation of a 
                common State Financial and Organizational Protocol that 
                is required to be used by States under section 678B(b); 
                and
                    ``(E) to distribute amounts in accordance with 
                subsection (c).'';
            (2) in subsection (b)(2), by striking ``an ongoing 
        procedure for obtaining input from the national and State 
        networks of eligible entities'' and inserting ``a strategic 
        plan for annual technical assistance developed in consultation 
        with the national and State networks of eligible entities 
        regarding their management support needs''; and
            (3) in subsection (c)(1), by striking ``management 
        information'' and all that follows through the period, and 
        inserting ``improving management information and reporting 
        systems, measuring of program results, ensuring responsiveness 
        to identified local needs, and reporting and disseminating 
        successful practices and initiatives''.

SEC. 110. MONITORING.

    Section 678B of the Community Services Block Grant Act (42 U.S.C. 
9914) is amended--
            (1) in the section heading by striking ``OF ELIGIBLE 
        ENTITIES'';
            (2) in subsection (a)--
                    (A) by striking the subsection heading and 
                inserting ``Monitoring of Eligible Entities'';
                    (B) in paragraph (1)--
                            (i) by inserting ``biennial'' after 
                        ``onsite''; and
                            (ii) by striking ``at least once during 
                        each 3 year period'';
                    (C) by striking paragraph (2);
                    (D) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively; and
                    (E) in paragraph (2) (as so redesignated), by 
                inserting ``annual'' after ``Follow-up'';
            (3) by redesignating subsections (b) and (c) as subsection 
        (c) and (d), respectively;
            (4) by inserting after subsection (a) the following:
    ``(b) Financial and Organizational Assessment Protocol.--Beginning 
in fiscal year 2006, States shall implement a financial and 
organizational assessment protocol to monitor and evaluate the 
compliance of eligible entities with the financial and administrative 
requirements of this section. Such protocol shall incorporate the 
fiscal and organizational review procedures and standards appropriate 
to the management of Federal funds under this subtitle and the 
governance of the eligible private non-profit corporations or other 
eligible entities. The Secretary shall require the protocol to be 
developed jointly by the States and eligible entities and shall assist 
States in developing appropriate training for personnel monitoring the 
uses of funds under this subtitle according to the requirements of this 
section.''; and
            (5) in subsection (d), as so redesignated, strike the last 
        sentence and insert the following: ``The Secretary shall 
        annually submit a report including the results of the 
        evaluations conducted under this subtitle, the State 
        performance reports provided for pursuant to section 
        678E(a)(1)(C), and other material as provided by section 
        678E(b)(2) to the Committee on Education and the Workforce of 
        the House of Representatives and the Committee on Health, 
        Education, Labor, and Pensions of the Senate.''.

SEC. 111. CORRECTIVE ACTION; TERMINATION AND REDUCTION OF FUNDING.

    Section 678C of the Community Services Block Grant Act (42 U.S.C. 
9915) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (4), by striking ``and'' at the 
                end; and
                    (B) by striking paragraph (5) and inserting the 
                following:
            ``(5) if the eligible entity fails to correct the 
        deficiency, notify the entity--
                    ``(A) that the State intends to initiate 
                proceedings to terminate the designation of the entity 
                as an eligible entity or to reduce, from the previous 
                year, the proportion of the total funding received by 
                the State under this subtitle that is allocated to the 
                eligible entity;
                    ``(B) that the eligible entity has the right to a 
                hearing on the record to determine if there is cause 
                for such termination or reduction in funding, as 
                defined in section 676(c), and that the request for a 
                hearing must be made in writing to the State within 30 
                days of receipt of the notice from the State; and
                    ``(C) of the legal basis for the proposed 
                termination or reduction in funding, the factual 
                findings on which the proposed termination or reduction 
                in funding is based or a reference to specific findings 
                in another document that form the basis for the 
                proposed termination or reduction in funding (such as a 
                reference to item numbers in an on-site review report 
                or instrument), and citation to any statutory 
                provisions, agreements, regulations, or State plan; and
            ``(6) if the eligible entity requests a hearing, conduct a 
        hearing on the record to determine if there is cause for 
        termination or a reduction in funding, as defined in section 
        676(c).'';
            (2) in subsection (b)--
                    (A) by striking ``review such a determination'' and 
                inserting ``review and either approve, or disapprove 
                and reverse, such a determination'';
                    (B) by striking ``90 days'' each place that such 
                appears and inserting ``30 days''; and
                    (C) by striking ``90th day'' and inserting ``30th 
                day''; and
            (3) in subsection (c), by adding at the end the following: 
        ``The Secretary shall continue to fund an eligible entity, in 
        an amount equal to the same proportion of total funds received 
        by the State under this subtitle as was allocated to the 
        eligible entity the previous year, until the Secretary 
        approves, or disapproves and reverses, the determination of 
        termination or reduction in funding with respect to the 
        State.''.

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

    Section 678D of the Community Services Block Grant Act (42 U.S.C. 
9916) is amended--
            (1) in subsection (a)(1)--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (D) as 
                subparagraph (F); and
                    (C) by inserting after subparagraph (C), the 
                following:
                    ``(D) notwithstanding paragraph (2)(B), beginning 
                in fiscal year 2005, and not less than every 2 years 
                thereafter, each State shall submit to the Secretary a 
                separate audit of the funds appropriated under this 
                subtitle that meets the standards in paragraph (2)(A); 
                and
                    ``(E) submit full financial reports to the 
                Secretary not later than 6 months following the end of 
                each fiscal year; and''; and
            (2) in subsection (b)(1), by adding at the end the 
        following: ``The Secretary, after providing adequate notice, 
        shall withhold administrative funds described in section 
        675C(b)(2) from any State that fails to comply with the 
        provisions of sections 678A through 678D(a), and may, after an 
        opportunity for a hearing conducted within the affected State, 
        withhold funds from the State and provide such funds directly 
        to the eligible entities in such State upon a demonstration of 
the compliance by such entities with the requirements of this 
subtitle.''

SEC. 113. ACCOUNTABILITY AND REPORTING REQUIREMENT.

    Section 678E of the Community Services Block Grant Act (42 U.S.C. 
9917) is amended to read as follows:

``SEC. 678E. ACCOUNTABILITY AND REPORTING REQUIREMENTS.

    ``(a) State Accountability and Reporting Requirements.--
            ``(1) Performance measurement of eligible entities.--
                    ``(A) In general.--Each State that receives funds 
                under this subtitle shall participate, and shall ensure 
                that all eligible entities in the State participate, in 
                a performance measurement system, which may be a 
                performance measurement system for which the Secretary 
                facilitated development pursuant to subsection (b), or 
                an alternative system that the Secretary is satisfied 
                meets the requirements of subsection (b).
                    ``(B) Local agencies.--The State may elect to have 
                local agencies that are subcontractors of the eligible 
                entities under this subtitle participate in the 
                performance measurement system. If the State makes that 
                election, references in this section to eligible 
                entities shall be considered to include the local 
                agencies.
                    ``(C) Performance measurement of states.--Not later 
                than 1 year after the date of enactment of the Poverty 
                Reduction and Prevention Act, the Secretary shall 
                establish, in consultation with States and eligible 
                entities, performance standards for the State 
                administration of block grant funds. Such standards 
                shall include standards relating to--
                            ``(i) the timeliness of the availability of 
                        State plans for public comment as required 
                        under section 676(a)(2)(B) and of submission of 
                        such plans to the Secretary as required in 
                        section 676(b);
                            ``(ii) the utilization of the financial and 
                        organizational assessment protocol established 
                        under section 678B(b), including the training 
                        and skills of State personnel responsible for 
                        such oversight, the completion of annual 
                        monitoring, the identification of opportunities 
                        for improvement, and the implementation of 
                        plans to enhance the management capacity and 
                        infrastructure of eligible entities;
                            ``(iii) the timeliness of the distribution 
                        of block grants funds to eligible entities as 
                        provided in section 675C(a);
                            ``(iv) the resources made available for 
                        management development at eligible entities, 
                        including monitoring, training, and assistance 
                        with financial management and program 
                        information and assessment systems;
                            ``(v) the results of State efforts to 
                        coordinate eligible entity programs with other 
                        State programs for low-income individuals and 
                        their families, especially participants in the 
                        Temporary Assistance for Needy Families Program 
                        and other working families, and to ensure the 
                        participation of eligible entities in the 
                        development of statewide strategies to reduce 
                        poverty; and
                            ``(vi) the assistance provided to eligible 
                        entities in securing private partnerships as 
                        required in section 676(b).
            ``(2) Annual report.--Each State shall annually prepare and 
        submit to the Secretary a report on the measured performance of 
        the State and the eligible entities in the State. The State 
        shall include in the report any information collected by the 
        State relating to such performance. Each State shall also 
        include in the report an accounting of the expenditure of funds 
        received by the State through the community services block 
        grant program, including an accounting of funds spent on 
        administrative costs by the State and the eligible entities, 
        funds spent by eligible entities on the direct delivery of 
        local services, and the achievement of national goals 
        established under the procedures described in this section, and 
        shall include information on the number of and characteristics 
        of clients served under this subtitle in the State, based on 
        data collected from the eligible entities. The State shall also 
        include in the report a summary describing the training and 
        technical assistance offered by the State under section 
        678C(a)(3) during the year covered by the report.
    ``(b) Local Entity Accountability and Reporting Requirements.--
            ``(1) Local entity determined goals.--In order to be 
        designated as an eligible entity and to receive a grant under 
        this subtitle, a grantee shall establish grantee determined 
        goals for reducing poverty in the community, including goals 
        for--
                    ``(A) leveraging community resources;
                    ``(B) fostering coordination of Federal, State, 
                local, private, and other assistance; and
                    ``(C) promoting community involvement.
            ``(2) Demonstration that goals were met.--In order to 
        receive a grant subsequent to the first grant that is provided 
        to an eligible entity following the date of enactment of the 
        Poverty Reduction and Prevention Act, the entity shall 
        demonstrate to the State that substantial progress has been 
        made in meeting the goals of the entity as described in 
        paragraph (1).
            ``(3) Goals or performance measures.--Any specific goals or 
        performance measures, for an individual eligible entity, that 
        are used in any monitoring or review process under this 
        subtitle, shall be--
                    ``(A) determined by the entity;
                    ``(B) agreed on by the State involved and the 
                entity, during the planning process leading to the 
                grant involved; and
                    ``(C) incorporated into the grant agreement between 
                the State and entity for each subsequent award cycle.
    ``(c) Secretary's Accountability and Reporting Requirements.--
            ``(1) Federal performance measurement.--The Secretary shall 
        establish goals for the Department of Health and Human Services 
        Office of Community Services with respect to--
                    ``(A) the timeliness of the distribution of funds 
                under this subtitle, including funds for training and 
                technical assistance;
                    ``(B) the monitoring of States as provided for in 
                section 678D;
                    ``(C) the coordination of other Office of Community 
                Service programs with the activities of States and 
                eligible entities under this subtitle; and
                    ``(D) the full and timely reporting as required in 
                this section.
            ``(2) Local performance measurement.--
                    ``(A) In general.--To the maximum extent 
                practicable, the Secretary shall coordinate reporting 
                requirements for all programs of the Department of 
                Health and Human Services that are managed by eligible 
                entities so as to consolidate and reduce the number of 
                reports required relating to individuals, families, and 
                uses of grant funds, specifically funds under the Head 
                Start Act, the Low-Income Home Energy Assistance Act of 
                1981, child care programs administered by the 
                Department, and health related service programs 
                administered by the Department.
                    ``(B) Technical assistance.--The Secretary shall 
                provide technical assistance, including support for the 
                enhancement of electronic data systems, to States and 
                to eligible entities to enhance their capability to 
                collect and report data for such a system and to aid in 
                their participation in such a system.
                    ``(C) Local entity performance measurement 
                system.--The Secretary shall assist in the 
                implementation of a local entity performance 
                measurement system, and other voluntary programmatic 
                and results reporting systems, developed by States, 
                eligible entities, and their national associations 
                acting together. The Secretary and the developers of 
                such systems shall ensure that the set of measures are 
                numerous enough to cover the full range of services 
                offered by all local eligible entities. Under such a 
                system, local eligible entities shall only be compelled 
                to collect data on the subset of performance measures 
                that reflect their community-specific programs and 
                services currently adopted. Grantees shall not be 
                required under this subparagraph to alter the 
                collection of data for any reports provided for other 
                programs within the Department of Health and Human 
                Services or other Federal agencies. States shall 
                compile annual Results Oriented Management and 
                Accountability System reports for the Secretary under 
                this subparagraph.
            ``(3) Reporting requirements.--For each fiscal year the 
        Secretary shall, directly or by grant or contract, prepare a 
        report containing--
                    ``(A) a summary of the planned use of funds by each 
                State, and the eligible entities in the State, under 
                the community services block grant program, as 
                contained in each State plan submitted pursuant to 
                section 676;
                    ``(B) a description of how funds were actually 
                spent by the State and eligible entities in the State, 
                including a breakdown of funds spent on administrative 
                costs and on the direct delivery of local programs by 
                eligible entities;
                    ``(C) information on the number of entities 
                eligible for funds under this subtitle, the number of 
                low-income persons served under this subtitle, and such 
                demographic data on the low-income populations served 
                by eligible entities as is determined by the Secretary 
                to be feasible;
                    ``(D) a comparison of the planned uses of funds for 
                each State and the actual uses of the funds;
                    ``(E) a summary of each State's performance 
                results, and the results for the eligible entities, as 
                collected and submitted by the States in accordance 
                with subsection (a)(2); and
                    ``(F) any additional information that the Secretary 
                considers to be appropriate to carry out this subtitle, 
                if the Secretary informs the States of the need for 
                such additional information and allows a reasonable 
                period of time for the States to collect and provide 
                the information.
            ``(4) Submission.--The Secretary shall submit to the 
        Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions of the Senate the report described in paragraph 
        (2), and any comments the Secretary may have with respect to 
        such report. The report shall include definitions of direct and 
        administrative costs used by the Department of Health and Human 
        Services for programs funded under this subtitle.
            ``(5) Costs.--Of the funds reserved under section 
        674(b)(3), not more than $500,000 shall be available to carry 
        out the reporting requirements contained in paragraph (3).''.

SEC. 114. LIMITATIONS ON USE OF FUNDS.

    Section 678F(c)(1) of the Community Services Block Grant Act (42 
U.S.C. 9918(c)(1)) is amended by inserting ``religion,'' after 
``race,''.

SEC. 115. OPERATIONAL RULE.

    Section 679(a) of the Community Services Block Grant Act (42 U.S.C. 
9920(a)) is amended by inserting ``and such organization meets the 
requirements of this subtitle'' before the first period;

SEC. 116. DISCRETIONARY AUTHORITY OF THE SECRETARY.

    Section 680 of the Community Services Block Grant Act (42 U.S.C. 
9921) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)--
                            (i) by redesignating subparagraphs (B) 
                        through (E) as subparagraph (D) through (G), 
                        respectively;
                            (ii) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) Economic development activities.--The 
                Secretary shall make grants described in paragraph (1) 
                on a competitive basis to private, nonprofit 
                organizations that are community development 
                corporations to provide technical and financial 
                assistance for economic development activities, 
                including business, economic, and community development 
                projects, designed to address the economic needs of 
                low-income individuals and families by creating 
                employment and business development opportunities. Such 
                assistance shall include--
                            ``(i) long term loans (up to 15 years) or 
                        investments for private business enterprises;
                            ``(ii) providing capital to businesses 
                        owned by community development corporations; 
                        and
                            ``(iii) marketing and management assistance 
                        for businesses providing jobs and business 
                        opportunities to low income individuals.
                    ``(B) Federal interest.--
                            ``(i) In general.--The Secretary shall 
                        establish procedures that permit a grantee who 
                        receives funds under a grant to carry out this 
                        paragraph, or intangible assets acquired with 
                        such funds, to become the sole owner of the 
                        funds or assets before the end of the 12-year 
                        period beginning at the end of the fiscal year 
                        for which the grant is made.
                            ``(ii) Conditions.--To be eligible to 
                        become the sole owner, the grantee shall 
                        agree--
                                    ``(I) to use the funds or assets 
                                for the purposes and uses for which the 
                                grant was made, or purposes and uses 
                                consistent with this subtitle, during 
                                and after the 12-year period described 
                                in clause (i), whether or not the 
                                grantee continues to be supported by 
                                Federal funds; and
                                    ``(II) that, when the grantee no 
                                longer needs the funds or assets for 
                                purposes and uses described in 
                                subclause (I), the grantee shall 
                                request instructions from the Secretary 
                                about the disposition of the funds or 
                                assets.
                            ``(iii) Encumbering.--The grantee may not 
                        encumber the assets without the approval of the 
                        Secretary.
                    ``(C) Administrative requirements.--In a case in 
                which an eligible project under grant made under this 
                section cannot, for good cause, be implemented, the 
                Secretary shall establish a policy to permit the 
                substitution of other eligible projects. Such policy 
                shall require that such project have the same impact 
                area, the same goals, and the same objectives as the 
                original project and outcomes that are substantially 
                the same as the original project.'';
                            (iii) in subparagraph (E) (as so 
                        redesignated), by striking ``community'' and 
                        inserting ``service area''; and
                            (iv) in subparagraph (G) (as so 
                        redesignated), by striking ``1 percent'' and 
                        inserting ``2 percent''; and
                    (B) in paragraph (3)(B), by striking ``community'' 
                and inserting ``water and waste water''; and
                    (C) in paragraph (4), by striking ``individual and 
                families'' and inserting ``individual and their 
                families''; and
            (2) in subsection (c), by striking ``Labor and Human 
        Resources'' and inserting ``Health, Education, Labor, and 
        Pensions''.

SEC. 117. COMMUNITY FOOD AND NUTRITION PROGRAMS.

    Section 681 of the Community Services Block Grant Act (42 U.S.C. 
9922) is amended--
            (1) in subsection (c), by striking ``Labor and Human 
        Resources'' and inserting ``Health, Education, Labor, and 
        Pensions''; and
            (2) in subsection (d), by striking ``1999 through 2003'' 
        and inserting ``2004 through 2009''.

SEC. 118. NATIONAL OR REGIONAL PROGRAMS DESIGNED TO PROVIDE 
              INSTRUCTIONAL ACTIVITIES FOR LOW-INCOME YOUTH.

    Section 682 of the Community Services Block Grant Act (42 U.S.C. 
9923) is amended--
            (1) in subsection (b)(2), by striking ``or treatment''; and
            (2) in subsection (g), by striking ``$15,000,000 for each 
        of fiscal years 1999 through 2003'' and inserting ``$18,000,000 
        for each of fiscal years 2004 through 2009''.

SEC. 119. SHORT TITLE AND CONFORMING AMENDMENTS.

    (a) In General.--Section 671 of the Community Services Block Grant 
Act (42 U.S.C. 9901 note) is amended by striking ``Community Services 
Block Grant Act'' and inserting ``Poverty Reduction and Prevention 
Act''.
    (b) Conforming Amendments.--
            (1) Community services block grant act.--The heading for 
        subtitle B of title VI of the Omnibus Budget Reconciliation Act 
        of 1981 is amended to read as follows:

       ``Subtitle B--Poverty Reduction and Prevention Program''.

            (2) Other provisions of law.--The following provisions of 
        law are each amended by striking ``Community Services Block 
        Grant Act'' each place that such appears and inserting 
        ``Poverty Reduction and Prevention Act'':
                    (A) Section 307(a)(3)(A) of the Consolidated Farm 
                and Rural Development Act (7 U.S.C. 1927(a)(3)(A)).
                    (B) Section 5(c)(1) of the Food Stamp Act of 1977 
                (7 U.S.C. 2014(c)(1)).
                    (C) Section 201A(7) of the Emergency Food 
                Assistance Act of 1983 (7 U.S.C. 7501(7)).
                    (D) Section 172(13) of the Program for Investment 
                in Microentrepreneurs Act of 1999 (15 U.S.C. 6901(13)).
                    (E) Sections 201(b)(3), 435(o)(1)(A)(ii), and 
                435(o)(1)(B)(ii) of the Higher Education Act of 1965 
                (20 U.S.C. 1021(b)(3), 1085(o)(1)(A)(ii), and 
                1085(o)(1)(B)(ii)).
                    (F) Section 131(b)(2) of the Carl D. Perkins 
                Vocational and Applied Technology Education Act (20 
                U.S.C. 2351(b)(2)).
                    (G) Section 9109(33) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7801(33)).
                    (H) Section 231(a)(2) of the Museum and Library 
                Services Act (20 U.S.C. 9141(a)(2)).
                    (I) Sections 101(36), 112(b)(8)(A)(vii), 
                121(b)(1)(B)(x), and 501(b)(2)(O) of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2801(36), 
                2822(b)(8)(A)(vii), and 2841(b)(1)(B)(x), and 20 U.S.C. 
                9271((b)(2)(O)).
                    (J) Section 303(9) of the Early Learning 
                Opportunities Act (20 U.S.C. 9402(9)).
                    (K) Sections 6501(4)(B) and 6703(a)(2) of title 31, 
                United States Code.
                    (L) Section 549(c)(3)(B)(ii) of title 40, United 
                States Code.
                    (M) Section 317M(c)(3)(B)(ii) of the Public Health 
                Service Act (42 U.S.C. 247b-14(c)(3)(B)(ii)).
                    (N) Section 2110(c)(5) of the Social Security Act 
                (42 U.S.C. 1397jj(c)(5)).
                    (O) Sections 102(38), 203(b)(13), 213, 
                306(a)(6)(C), and 503(b)(2) of the Older Americans Act 
                of 1965 (42 U.S.C. 3002(38), 3013(b)(13), 3020d, 
                3026(a)(6)(C), and 3056a(b)(2)).
                    (P) Sections 103(a)(6), 105(b)(2)(A), 211(e)(1), 
                and 421(6) of the Domestic Volunteer Service Act of 
                1973 (42 U.S.C. 4953(a)(6), 4955(b)(2)(A), 5011(e)(1), 
                and 5061(6)).
                    (Q) Sections 2603(8) and 2607B(e)(2)(B)(i) of the 
                Low-Income Home Energy Assistance Act of 1981 (42 
                U.S.C. 8622(8) and 8626b(e)(2)(B)(i)).
                    (R) Sections 407(b)(2) and 408(a)(1)(C) of the 
                Human Services Reauthorization of 1986 (42 U.S.C. 
                9812a(b)(2) and 9925(a)(1)(C)).
                    (S) Section 630(a) of the Community Economic 
                Development Act of 1981 (42 U.S.C. 9819(a)).
                    (T) Sections 158(b) and 178(i)(1) of the National 
                and Community Service Act of 1990 (42 U.S.C. 12618(b) 
                and 12638(i)(1)).
                    (U) The 5th unnumbered paragraph (relating to 
                poverty line) of section 30401 of the Community Schools 
                Youth Services and Supervision Grant Program Act of 
                1994 (42 U.S.C. 13791).

              TITLE II--LOW-INCOME HOME ENERGY ASSISTANCE

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Low-Income Home Energy Assistance 
Amendments of 2003''.

SEC. 202. REAUTHORIZATION.

    (a) In General.--Section 2602(b) of the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended in the first 
sentence by striking ``such sums'' and all that follows through the 
period and inserting ``and $3,400,000,000 for each of fiscal years 2004 
through 2006, and such sums as may be necessary for each fiscal year 
thereafter.''.
    (b) Program Year.--Section 2602(c) of the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8621(c)) is amended by inserting 
``authorized'' after ``programs and activities''.
    (c) Incentive Program for Leveraging Non-Federal Resources.--
Section 2602(d) of the Low-Income Home Energy Assistance Act of 1981 
(42 U.S.C. 8621(d)) is amended--
            (1) in paragraph (1), by striking ``1994 through 2004'' and 
        inserting ``2004 through 2010''; and
            (2) in paragraph (2), ``1994 through 2004'' and inserting 
        ``2004 through 2010''.

SEC. 203. NATURAL DISASTERS AND OTHER EMERGENCIES.

    Section 2604(e) of the Low-Income Home Energy Assistance Act of 
1981 (42 U.S.C. 8623(e)) is amended by adding at the end the following 
flush sentences:
``Notwithstanding any other provision of this section, for purposes of 
making determinations under section 2603(1)(C), if the Secretary 
determines that there is an increase of at least 20 percent in the cost 
of home energy over the previous 5-year average for a duration of a 
month or more in one or more States or regions, the Secretary shall 
declare an energy emergency in the affected area and shall make 
available funds as provided in this subsection. Notwithstanding any 
other provision of this section, for purposes of making such 
determinations, if the Secretary determines that the number of heating 
degree days or cooling days for a month was more than 100 above the 30-
year average in one or more States or regions, the Secretary shall 
declare an energy emergency in the affected area and shall make 
available funds as provided in this subsection.''.

SEC. 204. RESIDENTIAL ENERGY ASSISTANCE CHALLENGE OPTION.

    (a) Evaluation.--The Comptroller General of the United States shall 
conduct an evaluation of the Residential Energy Assistance Challenge 
program described in section 2607B of the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8626b).
    (b) Report.--Not later than 2 years after the date of enactment of 
this Act, the Comptroller General of the United States shall prepare 
and submit to the Committee on Education and the Workforce of the House 
of Representatives and the Committee on Health, Education, Labor, and 
Pensions of the Senate a report containing--
            (1) the findings resulting from the evaluation described in 
        subsection (a); and
            (2) the State evaluations described in paragraphs (1) and 
        (2) of section 2607B(b) of the Low-Income Home Energy 
        Assistance Act of 1981 (42 U.S.C. 8626b(b)).

SEC. 205. REPORT TO CONGRESS.

    (a) Study.--
            (1) In general.--The Secretary of Health and Human Services 
        shall conduct a study on the Low-Income Home Energy Assistance 
        Act of 1981 (42 U.S.C. 8621 et seq.)
            (2) Requirements.--In conducting the study under 
        subparagraph (A), the Secretary of Health and Human Services 
        shall--
                    (A) evaluate the performance of the Low-Income Home 
                Energy Assistance Program, including who the program is 
                serving, the benefits of the program to recipients, and 
                the ability of the program to reduce utility arrearage 
                and shut-offs among low-income households;
                    (B) develop a protocol for States to collect 
                information from energy distribution companies, 
                including electric, natural gas, heating oil, and 
                propane companies, concerning the following residential 
                customer statistics--
                            (i) the number of accounts certified as 
                        eligible for energy assistance;
                            (ii) the number of accounts certified as 
                        eligible for energy assistance and that are 
                        past due;
                            (iii) the total revenue owed on accounts 
                        eligible for energy assistance and that are 
                        past due;
                            (iv) the number of disconnection notices 
                        issued on accounts eligible for energy 
                        assistance;
                            (v) the number of disconnections for 
                        nonpayment;
                            (vi) the number of reconnections;
                            (vii) the number of accounts eligible for 
                        energy assistance and determined uncollectible; 
                        and
                            (viii) the energy burden of accounts 
                        eligible for energy assistance;
                    (C) analyze the public health and safety threats of 
                hypothermia and hyperthermia due to a lack of home 
                heating or home cooling, including mortality, 
                morbidity, and decrease in caloric intake;
                    (D) analyze the affect of the standard of housing 
                and housing age on energy costs to low-income 
                households;
                    (E) evaluate regional difference in cost-of-living 
                and the ability of low-income families to meet home 
                energy requirements; and
                    (F) determine the programmatic impacts of using 60 
                percent of State median income to determine low-income 
                households.
    (b) Report.--Not later than 24 months after the date of enactment 
of this Act, the Secretary of Health and Human Services shall submit to 
Congress a report containing the results of the study conducted under 
subsection (a).
    (c) Definition.--In this section, the term ``State'' means each of 
the 50 States and the District of Columbia.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this subsection such sums as may be necessary 
for each of fiscal year 2004 and 2005.
    (e) Contracts.--Using amounts appropriated under subsection (d), 
the Secretary of Health and Human Services may enter into contracts or 
jointly financed cooperative agreements or interagency agreements with 
States and public agencies and private nonprofit organizations to 
conduct the study under subsection (a).

                 TITLE III--ASSETS FOR INDEPENDENCE ACT

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Assets for Independence 
Reauthorization Act''.

SEC. 302. REAUTHORIZATION OF THE ASSETS FOR INDEPENDENCE ACT.

    (a) Definition of Qualified Expenses.--Section 404(8) of the Assets 
for Independence Act (42 U.S.C. 604 note) is amended--
            (1) in subparagraph (A)--
                    (A) in the matter preceding clause (i), by 
                inserting ``or to a vendor following approval by a 
                qualified entity upon submission of an approved 
                qualified education purchase plan'' before the period; 
                and
                    (B) by adding at the end the following:
                            ``(iii) Qualified education purchase 
                        plan.--The term `qualified education purchase 
                        plan' means a document that explains the 
                        education item to be purchased which--
                                    ``(I) is approved by a qualified 
                                entity; and
                                    ``(II) includes a description of 
                                the good to be purchased.'';
            (2) in subparagraph (D), by striking ``eligible''; and
            (3) by adding at the end the following:
                    ``(E) Saving in idas for dependents.--Amounts paid 
                to an individual development account established for 
                the benefit of a dependent (as such terms is defined 
                for purposes of subparagraph (D)(ii)) of an eligible 
                individual for the purpose of post-secondary 
                education.''.
    (b) Repeal of Provision.--Section 405 of the Assets for 
Independence Act (42 U.S.C. 604 note) is amended by striking subsection 
(g).
    (c) Reserve Fund.--Section 407 of the Assets for Independence Act 
(42 U.S.C. 604 note) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by redesignating subparagraphs (A) and 
                        (B) as subparagraphs (B) and (C), respectively; 
                        and
                            (ii) by inserting before subparagraph (B) 
                        (as so redesignated) the following:
                    ``(A) all grant funds provided to the qualified 
                entity from the Secretary for the purpose of the 
                demonstration project as described under subsection 
                (c)(1);'' and
                    (B) by adding at the end the following:
            ``(3) Rule of construction.--Nothing in paragraph (1)(A) 
        shall be construed to preclude a qualified entity from 
        depositing other demonstration project funds into the Reserve 
        Fund.''; and
            (2) in subsection (d), by inserting ``the date that is 12 
        months after'' after ``upon the''.
    (d) Use of Amounts.--Section 407(c) of the Assets for Independence 
Act (42 U.S.C. 604 note) is amended by adding at the end the following:
            ``(4) Use of nonfederal funds.--
                    ``(A) In general.--Notwithstanding paragraph (3), 
                not more than 20 percent of the amount of non-Federal 
                funds committed to a project as matching contributions 
                in accordance with the application submitted by the 
                qualified entity under section 405(c)(4) shall be used 
                by the qualified entity for the purposes described in 
                subparagraphs (A), (C), and (D) of paragraph (1).
                    ``(B) Priority.--In awarding grants under section 
                406(b), the Secretary shall give priority to qualified 
                entities that submit applications that, with respect to 
                the commitment of non-Federal funds under section 
                5(c)(4), provide assurances that are not to exceed 15 
                percent of such non-Federal funds will be used by the 
                qualified entity for the purposes described in 
                subparagraphs (A), (C), and (D) of paragraph (1).''.
    (e) Eligibility for Participation.--Section 408(a)(1) of the Assets 
for Independence Act (42 U.S.C. 604 note) is amended to read as 
follows:
            ``(1) Income test.--The--
                    ``(A) gross income of the household is--
                            ``(i) equal to or less than 200 percent of 
                        the poverty line (as determined by the Office 
                        of Management and Budget);
                            ``(ii) the earned income amount described 
                        in section 32 of the Internal Revenue Code of 
                        1986 (taking into account the size of the 
                        household); or
                            ``(iii) equal to or less than 80 percent of 
                        the Area Median Income (as determined by the 
                        Department of Housing and Urban Development); 
                        or
                    ``(B) the modified adjusted gross income of the 
                household for the previous year does not exceed $18,000 
                for an individual filer, $30,000 for a head of 
                household, or $38,000 for a joint filer.''.
    (f) Deposits by Qualified Entities.--Section 410 of the Assets for 
Independence Act (42 U.S.C. 604 note) is amended--
            (1) in subsection (a), by striking ``qualified entity--'' 
        and all that follows through the end and inserting the 
        following: ``qualified entity, a matching contribution of not 
        less than $0.50 and not more than $4 for every $1 of earned 
        income (as defined in section 911(d)(2) of Internal Revenue 
        Code of 1986) deposited in the account and interest earned on 
        that account by a project participant during that period. 
        Matching contributions shall be made--
            ``(1) from the non-Federal funds described in section 
        405(c)(4); and
            ``(2) from the grant made under section 406(b);
``based on a ratio relating to the sources of funds described in 
paragraph (1) and (2) as determined by the qualified entity.'';
            (2) by redesignating subsections (b) through (e) as 
        subsections (c) through (f), respectively; and
            (3) by inserting after subsection (a), the following:
    ``(b) Use of Excess Interest on Matching Funds Earned on the 
Reserve Fund.--Interest that accrues on the matching funds earned and 
held in the Reserve Fund, over and above the interest required to match 
an individuals deposits and interest earned in the individual 
development account, shall be used by the qualified entity to fund 
existing individual development accounts or additional individual 
development accounts.''.
    (g) Authorization of Appropriations.--Section 416 of the Assets for 
Independence Act (42 U.S.C. 604 note) is amended by striking ``and 
2003'' and inserting ``and 2003, $25,000,000 for fiscal year 2004, and 
such sums as may be necessary for each of fiscal years 2005 through 
2008,''.
    (h) Application of Amendments.--In administering the Assets for 
Independence Act (42 U.S.C. 604 note), the Secretary of Health and 
Human Services may apply the amendments made by this section to 
individual account holders and entities that received grants under such 
Act either before or after the date of enactment of this Act.
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