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which such designation or identification 
was made, and 
‘‘(iii) the erroneous designations and 
identifications result in an overpayment of 
income tax for any taxable year by such 
organization, 
credit or refund (with interest) with respect to 
such overpayment shall be made. 
‘‘(B) WAIVER
OF
LIMITATIONS.—If the 
credit or refund of any overpayment of tax de-
scribed in subparagraph (A)(iii) is prevented at 
any time by the operation of any law or rule of 
law (including res judicata), such credit or re-
fund may nevertheless be allowed or made if the 
claim therefor is filed before the close of the 1-
year period beginning on the date of the last 
determination 
described 
in 
subparagraph 
(A)(ii). 
‘‘(7) NOTICE OF SUSPENSIONS.—If the tax ex-
emption of any organization is suspended under this 
subsection, the Internal Revenue Service shall up-
date the listings of tax-exempt organizations and 
shall publish appropriate notice to taxpayers of such 
suspension and of the fact that contributions to such
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organization are not deductible during the period of 
such suspension.’’.
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to designations made before, on, 
or after the date of the enactment of this Act. 
SEC. 202. CLARIFICATION OF DEFINITION OF CHURCH TAX 
INQUIRY. 
Subsection (i) of section 7611 (relating to section not 
to apply to criminal investigations, etc.) is amended by 
striking ‘‘or’’ at the end of paragraph (4), by striking the 
period at the end of paragraph (5) and inserting ‘‘, or’’, 
and by inserting after paragraph (5) the following: 
‘‘(6) information provided by the Secretary re-
lated to the standards for exemption from tax under 
this title and the requirements under this title relat-
ing to unrelated business taxable income.’’. 
SEC. 203. EXTENSION OF DECLARATORY JUDGMENT REM-
EDY TO TAX-EXEMPT ORGANIZATIONS. 
(a) IN GENERAL.—Paragraph (1) of section 7428(a) 
(relating to creation of remedy) is amended—
(1) in subparagraph (B) by inserting after 
‘‘509(a))’’ the following: ‘‘or as a private operating 
foundation (as defined in section 4942(j)(3))’’; and 
(2) by amending subparagraph (C) to read as 
follows:
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‘‘(C) with respect to the initial qualifica-
tion or continuing qualification of an organiza-
tion as an organization described in subsection 
(c) (other than paragraph (3)) or (d) of section 
501 which is exempt from tax under section 
501(a), or’’. 
(b) COURT JURISDICTION.—Subsection (a) of section 
7428 is amended in the material following paragraph (2) 
by striking ‘‘United States Tax Court, the United States 
Claims Court, or the district court of the United States 
for the District of Columbia’’ and inserting the following: 
‘‘United States Tax Court (in the case of any such deter-
mination or failure) or the United States Claims Court 
or the district court of the United States for the District 
of Columbia (in the case of a determination or failure with 
respect to an issue referred to in subparagraph (A) or (B) 
of paragraph (1)),’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to pleadings filed with respect to 
determinations (or requests for determinations) made 
after the date of the enactment of this Act. 
SEC. 204. LANDOWNER INCENTIVES PROGRAMS. 
(a) IN GENERAL.—Subsection (a) of section 126 is 
amended by redesignating paragraph (10) as paragraph
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(11) and by inserting after paragraph (9) the following 
new paragraph: 
‘‘(10) Landowner initiatives programs to con-
serve threatened, endangered, or imperiled species, 
or protect or restore habitat carried out under—
‘‘(A) the Fish and Wildlife Coordination 
Act (16 U.S.C. 661 et seq.), 
‘‘(B) the Fish and Wildlife Act of 1956 
(16 U.S.C. 742f), or 
‘‘(C) section 6 of the Endangered Species 
Act (16 U.S.C. 11531 et seq.).’’. 
(b) EXCLUDABLE PORTION.—Subparagraph (A) of 
section 126(b)(1) is amended by inserting after ‘‘Secretary 
of Agriculture’’ the following: ‘‘(the Secretary of the Inte-
rior, in the case of the landowner incentives programs de-
scribed in subsection (a)(10) and the programs described 
in subsection (a)(11) that are implemented by the Depart-
ment of the Interior)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts received after Decem-
ber 31, 2003, in taxable years ending after such date. 
SEC. 205. MODIFICATIONS TO SECTION 512(b)(13). 
(a) IN GENERAL.—Paragraph (13) of section 512(b) 
(relating to special rules for certain amounts received from 
controlled entities) is amended by redesignating subpara-
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graph (E) as subparagraph (F) and by inserting after sub-
paragraph (D) the following new subparagraph: 
‘‘(E) PARAGRAPH TO APPLY ONLY TO EX-
CESS PAYMENTS.—
‘‘(i) IN GENERAL.—Subparagraph (A) 
shall apply only to the portion of a speci-
fied payment received or accrued by the 
controlling organization that exceeds the 
amount which would have been paid or ac-
crued if such payment met the require-
ments prescribed under section 482. 
‘‘(ii) ADDITION
TO
TAX
FOR
VALU-
ATION MISSTATEMENTS.—The tax imposed 
by this chapter on the controlling organiza-
tion shall be increased by an amount equal 
to 20 percent of the larger of—
‘‘(I) such excess determined with-
out regard to any amendment or sup-
plement to a return of tax, or 
‘‘(II) such excess determined 
with regard to all such amendments 
and supplements.’’. 
(b) EFFECTIVE DATE.—
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(1) IN
GENERAL.—The amendment made by 
this section shall apply to payments received or ac-
crued after December 31, 2003. 
(2) PAYMENTS SUBJECT TO BINDING CONTRACT 
TRANSITION
RULE.—If the amendments made by 
section 1041 of the Taxpayer Relief Act of 1997 did 
not apply to any amount received or accrued in the 
first 2 taxable years beginning on or after the date 
of the enactment of the Taxpayer Relief Act of 1997 
under any contract described in subsection (b)(2) of 
such section, such amendments also shall not apply 
to amounts received or accrued under such contract 
before January 1, 2001. 
SEC. 206. SIMPLIFICATION OF LOBBYING EXPENDITURE 
LIMITATION. 
(a) 
REPEAL
OF
GRASSROOTS
EXPENDITURE 
LIMIT.—Paragraph (1) of section 501(h) (relating to ex-
penditures by public charities to influence legislation) is 
amended to read as follows: 
‘‘(1) GENERAL RULE.—In the case of an orga-
nization to which this subsection applies, exemption 
from taxation under subsection (a) shall be denied 
because a substantial part of the activities of such 
organization consists of carrying on propaganda, or 
otherwise attempting, to influence legislation, but
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only if such organization normally makes lobbying 
expenditures in excess of the lobbying ceiling amount 
for such organization for each taxable year.’’. 
(b) EXCESS
LOBBYING
EXPENDITURES.—Section 
4911(b) is amended to read as follows: 
‘‘(b) EXCESS LOBBYING EXPENDITURES.—For pur-
poses of this section, the term ‘excess lobbying expendi-
tures’ means, for a taxable year, the amount by which the 
lobbying expenditures made by the organization during the 
taxable year exceed the lobbying nontaxable amount for 
such organization for such taxable year.’’. 
(c) CONFORMING AMENDMENTS.—
(1) Section 501(h)(2) is amended by striking 
subparagraphs (C) and (D). 
(2) Section 4911(c) is amended by striking 
paragraphs (3) and (4). 
(3) Paragraph (1)(A) of section 4911(f) is 
amended by striking ‘‘limits of section 501(h)(1) 
have’’ and inserting ‘‘limit of section 501(h)(1) 
has’’. 
(4) Paragraph (1)(C) of section 4911(f) is 
amended by striking ‘‘limits of section 501(h)(1) 
are’’ and inserting ‘‘limit of section 501(h)(1) is’’. 
(5) Paragraphs (4)(A) and (4)(B) of section 
4911(f) are each amended by striking ‘‘limits of sec-
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tion 501(h)(1)’’ and inserting ‘‘limit of section 
501(h)(1)’’. 
(6) Paragraph (8) of section 6033(b) (relating 
to 
certain 
organizations 
described 
in 
section 
501(c)(3)) is amended by inserting ‘‘and’’ at the end 
of subparagraph (A) and by striking subparagraphs 
(C) and (D). 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2003. 
SEC. 207. PILOT PROJECT FOR FOREST CONSERVATION AC-
TIVITIES. 
(a) TAX-EXEMPT BOND FINANCING.—
(1) IN GENERAL.—For purposes of the Internal 
Revenue Code of 1986, any qualified forest con-
servation bond shall be treated as an exempt facility 
bond under section 142 of such Code. 
(2) 
QUALIFIED
FOREST
CONSERVATION 
BOND.—For purposes of this section, the term 
‘‘qualified forest conservation bond’’ means any bond 
issued as part of an issue if—
(A) 95 percent or more of the net proceeds 
(as defined in section 150(a)(3) of such Code) 
of such issue are to be used for qualified project 
costs,
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(B) such bond is an obligation of the State 
of Washington or any political subdivision 
thereof, and 
(C) such bond is issued for a qualified or-
ganization before December 31, 2006. 
(3) 
LIMITATION
ON
AGGREGATE
AMOUNT 
ISSUED.—The maximum aggregate face amount of 
bonds which may be issued under this subsection 
shall not exceed $250,000,000. 
(4) QUALIFIED PROJECT COSTS.—For purposes 
of this subsection, the term ‘‘qualified project costs’’ 
means the sum of—
(A) the cost of acquisition by the qualified 
organization from an unrelated person of for-
ests and forest land located in the State of 
Washington which at the time of acquisition or 
immediately thereafter are subject to a con-
servation restriction described in subsection 
(c)(2), 
(B) interest on the qualified forest con-
servation bonds for the 3-year period beginning 
on the date of issuance of such bonds, and 
(C) credit enhancement fees which con-
stitute qualified guarantee fees (within the 
meaning of section 148 of such Code).
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(5) SPECIAL RULES.—In applying the Internal 
Revenue Code of 1986 to any qualified forest con-
servation bond, the following modifications shall 
apply: 
(A) Section 146 of such Code (relating to 
volume cap) shall not apply. 
(B) For purposes of section 147(b) of such 
Code (relating to maturity may not exceed 120 
percent of economic life), the land and standing 
timber acquired with proceeds of qualified for-
est conservation bonds shall have an economic 
life of 35 years. 
(C) Subsections (c) and (d) of section 147 
of such Code (relating to limitations on acquisi-
tion of land and existing property) shall not 
apply. 
(D) Section 57(a)(5) of such Code (relat-
ing to tax-exempt interest) shall not apply to 
interest on qualified forest conservation bonds. 
(6) TREATMENT
OF
CURRENT
REFUNDING 
BONDS.—Paragraphs (2)(C) and (3) shall not apply 
to any bond (or series of bonds) issued to refund a 
qualified forest conservation bond issued before De-
cember 31, 2006, if—
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(A) the average maturity date of the issue 
of which the refunding bond is a part is not 
later than the average maturity date of the 
bonds to be refunded by such issue, 
(B) the amount of the refunding bond does 
not exceed the outstanding amount of the re-
funded bond, and 
(C) the net proceeds of the refunding bond 
are used to redeem the refunded bond not later 
than 90 days after the date of the issuance of 
the refunding bond. 
For purposes of subparagraph (A), average maturity 
shall be determined in accordance with section 
147(b)(2)(A) of such Code. 
(7) EFFECTIVE
DATE.—This subsection shall 
apply to obligations issued on or after the date of 
enactment of this Act. 
(b) ITEMS FROM QUALIFIED HARVESTING ACTIVI-
TIES NOT SUBJECT TO TAX OR TAKEN INTO ACCOUNT.—
(1) IN GENERAL.—Income, gains, deductions, 
losses, or credits from a qualified harvesting activity 
conducted by a qualified organization shall not be 
subject to tax or taken into account under subtitle 
A of the Internal Revenue Code of 1986.
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(2) LIMITATION.—The amount of income ex-
cluded from gross income under paragraph (1) for 
any taxable year shall not exceed the amount used 
by the qualified organization to make debt service 
payments during such taxable year for qualified for-
est conservation bonds. 
(3) QUALIFIED
HARVESTING
ACTIVITY.—For 
purposes of paragraph (1)—
(A) IN
GENERAL.—The term ‘‘qualified 
harvesting activity’’ means the sale, lease, or 
harvesting, of standing timber—
(i) on land owned by a qualified orga-
nization which was acquired with proceeds 
of qualified forest conservation bonds, and 
(ii) pursuant to a qualified conserva-
tion plan adopted by the qualified organi-
zation. 
(B) EXCEPTIONS.—
(i) CESSATION AS QUALIFIED ORGANI-
ZATION.—The term ‘‘qualified harvesting 
activity’’ shall not include any sale, lease, 
or harvesting for any period during which 
the organization ceases to qualify as a 
qualified organization.
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(ii) EXCEEDING
LIMITS
ON
HAR-
VESTING.—The term ‘‘qualified harvesting 
activity’’ shall not include any sale, lease, 
or harvesting of standing timber on land
acquired with proceeds of qualified forest 
conservation bonds to the extent that—
(I) the average annual area of 
timber harvested from such land ex-
ceeds 2.5 percent of the total area of 
such land, or 
(II) the quantity of timber re-
moved from such land exceeds the 
quantity which can be removed from 
such land annually in perpetuity on a 
sustained-yield basis with respect to 
such land. 
The limitations under subclauses (I) and 
(II) shall not apply to post-fire restoration 
and rehabilitation or sanitation harvesting 
of timber stands which are substantially 
damaged by fire, windthrow, or other ca-
tastrophes, or which are in imminent dan-
ger from insect or disease attack. 
(4) TERMINATION.—This subsection shall not 
apply to any qualified harvesting activity occurring
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after the date on which there is no outstanding 
qualified forest conservation bond or any such bond 
ceases to be a tax-exempt bond. 
(5) PARTIAL RECAPTURE OF BENEFITS IF HAR-
VESTING LIMIT EXCEEDED.—If, as of the date that 
this subsection ceases to apply under paragraph (4), 
the average annual area of timber harvested from 
the land exceeds the requirement of paragraph 
(3)(B)(ii)(I), the tax imposed by chapter 1 of such 
Code shall be increased, under rules prescribed by 
the Secretary of the Treasury, by the sum of the tax 
benefits attributable to such excess and interest at 
the underpayment rate under section 6621 of such 
Code for the period of the underpayment. 
(c) DEFINITIONS.—For purposes of this section—
(1) QUALIFIED
CONSERVATION
PLAN.—The 
term ‘‘qualified conservation plan’’ means a multiple 
land use program or plan which—
(A) is designed and administered primarily 
for the purposes of protecting and enhancing 
wildlife and fish, timber, scenic attributes, 
recreation, and soil and water quality of the 
forest and forest land,
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(B) mandates that conservation of forest 
and forest land is the single-most significant 
use of the forest and forest land, and 
(C) requires that timber harvesting be con-
sistent with—
(i) restoring and maintaining ref-
erence conditions for the region’s ecotype, 
(ii) restoring and maintaining a rep-
resentative sample of young, mid, and late 
successional forest age classes, 
(iii) maintaining or restoring the re-
sources’ ecological health for purposes of 
preventing damage from fire, insect, or dis-
ease, 
(iv) maintaining or enhancing wildlife 
or fish habitat, or 
(v) enhancing research opportunities 
in sustainable renewable resource uses. 
(2) CONSERVATION
RESTRICTION.—The con-
servation restriction described in this paragraph is a 
restriction which—
(A) is granted in perpetuity to an unre-
lated person which is described in section 
170(h)(3) of such Code and which, in the case
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of a nongovernmental unit, is organized and op-
erated for conservation purposes, 
(B) meets the requirements of clause (ii) 
or (iii)(II) of section 170(h)(4)(A) of such 
Code, 
(C) obligates the qualified organization to 
pay the costs incurred by the holder of the con-
servation restriction in monitoring compliance 
with such restriction, and 
(D) requires an increasing level of con-
servation benefits to be provided whenever cir-
cumstances allow it. 
(3) 
QUALIFIED
ORGANIZATION.—The 
term 
‘‘qualified organization’’ means an organization—
(A) which is a nonprofit organization sub-
stantially all the activities of which are chari-
table, scientific, or educational, including ac-
quiring, protecting, restoring, managing, and 
developing forest lands and other renewable re-
sources for the long-term charitable, edu-
cational, scientific and public benefit, 
(B) more than half of the value of the 
property of which consists of forests and forest 
land acquired with the proceeds from qualified 
forest conservation bonds,
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(C) which periodically conducts educational 
programs designed to inform the public of envi-
ronmentally sensitive forestry management and 
conservation techniques, 
(D) which has at all times a board of di-
rectors—
(i) at least 20 percent of the members 
of which represent the holders of the con-
servation restriction described in para-
graph (2), 
(ii) at least 20 percent of the mem-
bers of which are public officials, and 
(iii) not more than one-third of the 
members of which are individuals who are 
or were at any time within 5 years before 
the beginning of a term of membership on 
the board, an employee of, independent 
contractor with respect to, officer of, direc-
tor of, or held a material financial interest 
in, a commercial forest products enterprise 
with which the qualified organization has a 
contractual or other financial arrangement, 
(E) the bylaws of which require at least 
two-thirds of the members of the board of direc-
tors to vote affirmatively to approve the quali-
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fied conservation plan and any change thereto, 
and 
(F) upon dissolution, is required to dedi-
cate its assets to—
(i) an organization described in sec-
tion 501(c)(3) of such Code which is orga-
nized and operated for conservation pur-
poses, or
(ii) a governmental unit described in 
section 170(c)(1) of such Code. 
(4) UNRELATED
PERSON.—The term ‘‘unre-
lated person’’ means a person who is not a related 
person. 
(5) RELATED
PERSON.—A person shall be 
treated as related to another person if—
(A) such person bears a relationship to 
such other person described in section 267(b) 
(determined without regard to paragraph (9) 
thereof), or 707(b)(1), of such Code, deter-
mined by substituting ‘‘25 percent’’ for ‘‘50 
percent’’ each place it appears therein, and 
(B) in the case such other person is a non-
profit organization, if such person controls di-
rectly or indirectly more than 25 percent of the 
governing body of such organization.
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(d) REPORT.—
(1) IN GENERAL.—The Comptroller General of 
the United States shall conduct a study on the pilot 
project for forest conservation activities under this 
section. Such study shall examine the extent to 
which forests and forest lands were managed during 
the 5-year period beginning on the date of the enact-
ment of this Act to achieve the goals of such project. 
(2) SUBMISSION OF REPORT TO CONGRESS.—
Not later than six years after the date of the enact-
ment of this Act, the Comptroller General shall sub-
mit a report of such study to the Committee on 
Ways and Means and the Committee on Resources 
of the House of Representatives and the Committee 
on Finance and the Committee on Energy and Nat-
ural Resources of the Senate. 
TITLE III—OTHER PROVISIONS 
SEC. 301. COMPASSION CAPITAL FUND. 
Title IV of the Social Security Act (42 U.S.C. 601–
679b) is amended by adding at the end the following: 
‘‘PART F—COMPASSION CAPITAL FUND 
‘‘SEC. 481. SECRETARY’S FUND TO SUPPORT AND REP-
LICATE PROMISING SOCIAL SERVICE PRO-
GRAMS. 
‘‘(a) GRANT AUTHORITY.—
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‘‘(1) IN GENERAL.—The Secretary may make 
grants to support any private entity that operates a 
promising social services program. 
‘‘(2) APPLICATIONS.—An entity desiring to re-
ceive a grant under paragraph (1) shall submit to 
the Secretary an application for the grant, which 
shall contain such information as the Secretary may 
require. 
‘‘(b) CONTRACT AUTHORITY, ETC.—The Secretary 
may enter into a grant, contract, or cooperative agreement 
with any entity under which the entity would provide tech-
nical assistance to another entity to operate a social serv-
ice program that assists persons and families in need, in-
cluding by—
‘‘(1) providing the other entity with—
‘‘(A) technical assistance and information, 
including legal assistance and other business as-
sistance; 
‘‘(B) information on capacity-building; 
‘‘(C) information and assistance in identi-
fying and using best practices for serving per-
sons and families in need; or 
‘‘(D) assistance in replicating programs 
with demonstrated effectiveness in assisting 
persons and families in need; or
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‘‘(2) supporting research on the best practices 
of social service organizations. 
‘‘(c) GUIDANCE AND TECHNICAL ASSISTANCE.—The 
Secretary may use not more than 25 percent of the 
amount appropriated under this section for a fiscal year 
to provide guidance and technical assistance to States and 
political subdivisions of States with respect to the imple-
mentation of any social service program. 
‘‘(d) SOCIAL SERVICES PROGRAM DEFINED.—In this 
section, the term ‘social services program’ means a pro-
gram that provides benefits or services of any kind to per-
sons and families in need. 
‘‘(e) LIMITATIONS ON AUTHORIZATION OF APPRO-
PRIATIONS.—To carry out this section, there are author-
ized to be appropriated to the Secretary $150,000,000 for 
fiscal year 2004, and such sums as may be necessary for 
fiscal years 2005 through 2008.’’. 
SEC. 302. REAUTHORIZATION OF ASSETS FOR INDEPEND-
ENCE DEMONSTRATION. 
(a) IN GENERAL.—Section 416 of the Assets for 
Independence Act (title IV of Public Law 105–285; 42 
U.S.C. 604 note) is amended by striking ‘‘and 2003’’ and 
inserting ‘‘2003, 2004, 2005, 2006, 2007, and 2008’’. 
(b) REMOVAL OF ECONOMIC LITERACY ACTIVITIES 
FROM LIMITATION ON USE OF AMOUNTS IN THE RE-
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SERVE FUND.—Section 407(c)(3) of such Act (title IV of 
Public Law 105–285; 42 U.S.C. 604 note) is amended by 
adding at the end the following: ‘‘The preceding sentences 
of this paragraph shall not apply to amounts used by an 
entity for any activity described in paragraph (1)(A).’’. 
(c) ELIGIBILITY EXPANDED TO INCLUDE INDIVID-
UALS IN HOUSEHOLDS WITH INCOME NOT EXCEEDING 
50 PERCENT
OF
AREA
MEDIAN
INCOME.—Section 
408(a)(1) of such Act (title IV of Public Law 105–285; 
42 U.S.C. 604 note) is amended to read as follows: 
‘‘(1) INCOME
TEST.—The adjusted gross in-
come of the household—
‘‘(A) does not exceed 200 percent of the 
poverty line (as determined by the Office of 
Management and Budget) or the earned income 
amount described in section 32 of the Internal 
Revenue Code of 1986 (taking into account the 
size of the household); or 
‘‘(B) does not exceed 50 percent of the 
area median income (as determined by the Sec-
retary of Housing and Urban Development) for 
the area in which the household is located.’’. 
(d) EXTENSION OF TIME FOR ACCOUNT HOLDERS 
TO ACCESS FEDERAL FUNDS.—Section 407(d) of such
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Act (title IV of Public Law 105–285; 42 U.S.C. 604 note) 
is amended—
(1) in the subsection heading, by striking 
‘‘WHEN PROJECT TERMINATES’’; and 
(2) by striking ‘‘upon’’ and inserting ‘‘on the 
date that is 6 months after’’. 
(e) VERIFICATION OF POSTSECONDARY EDUCATION 
EXPENSES.—Section 404(8)(A) of such Act (title IV of 
Public Law 105–285; 42 U.S.C. 604 note) is amended in 
the 1st sentence by inserting ‘‘or a vendor, but only to 
the extent that the expenses are described in a document 
which explains the educational items to be purchased, and 
the document and the expenses are approved by the quali-
fied entity’’ before the period. 
(f) AUTHORITY TO USE EXCESS INTEREST TO FUND 
OTHER INDIVIDUAL DEVELOPMENT ACCOUNTS.—Section 
410 of such Act (title IV of Public Law 105–285; 42 
U.S.C. 604 note) is amended—
(1) in subsection (a)(3)—
(A) by striking ‘‘any interest that has ac-
crued’’ and inserting ‘‘interest that has accrued 
during that period’’; and 
(B) by striking the period and inserting ‘‘, 
but only to the extent that the amount of the 
interest does not exceed the amount of interest
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that has accrued during that period on amounts 
deposited in the account by that individual.’’; 
and 
(2) by adding at the end the following: 
‘‘(f) USE OF EXCESS INTEREST TO FUND OTHER IN-
DIVIDUAL DEVELOPMENT ACCOUNTS.—To the extent that 
a qualified entity has an amount that, but for the limita-
tion in subsection (a)(3), would be required by that sub-
section to be deposited into the individual development ac-
count of an individual or into a parallel account main-
tained by the qualified entity, the qualified entity may de-
posit the amount into the individual development account 
of any individual or into any such parallel account main-
tained by the qualified entity.’’. 
SEC. 303. SENSE OF THE CONGRESS REGARDING COR-
PORATE CONTRIBUTIONS TO FAITH-BASED 
ORGANIZATIONS, ETC. 
(a) FINDINGS.—The Congress finds as follows: 
(1) America’s community of faith has long 
played a leading role in dealing with difficult societal 
problems 
that 
might 
otherwise 
have 
gone 
unaddressed. 
(2) President Bush has called upon Americans 
‘‘to revive the spirit of citizenship . . . to marshal
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the compassion of our people to meet the continuing 
needs of our Nation’’. 
(3) Although the work of faith-based organiza-
tions should not be used by government as an excuse 
for backing away from its historic and rightful com-
mitment to help those who are disadvantaged and in 
need, such organizations can and should be seen as 
a valuable partner with government in meeting soci-
etal challenges. 
(4) Every day faith-based organizations in the 
United States help people recover from drug and al-
cohol addiction, provide food and shelter for the 
homeless, rehabilitate prison inmates so that they 
can break free from the cycle of recidivism, and 
teach people job skills that will allow them to move 
from poverty to productivity. 
(5) Faith-based organizations are often more 
successful in dealing with difficult societal problems 
than government and non-sectarian organizations. 
(6) As President Bush has stated, ‘‘It is not 
sufficient to praise charities and community groups; 
we must support them. And this is both a public ob-
ligation and a personal responsibility.’’.
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(7) Corporate foundations contribute billions of 
dollars each year to a variety of philanthropic 
causes. 
(8) According to a study produced by the Cap-
ital Research Center, the 10 largest corporate foun-
dations 
in 
the 
United 
States 
contributed 
$1,900,000,000 to such causes. 
(9) According to the same study, faith-based or-
ganizations only receive a small fraction of the con-
tributions made by corporations in the United 
States, and 6 of the 10 corporations that give the 
most to philanthropic causes explicitly ban or re-
strict contributions to faith-based organizations. 
(b) CORPORATIONS ENCOURAGED TO CONTRIBUTE 
TO FAITH-BASED ORGANIZATIONS.—The Congress calls 
on corporations in the United States, in the words of the 
President, ‘‘to give more and to give better’’ by making 
greater contributions to faith-based organizations that are 
on the front lines battling some of the great societal chal-
lenges of our day. 
(c) SENSE OF THE CONGRESS.—It is the sense of 
Congress that—
(1) corporations in the United States are im-
portant partners with government in efforts to over-
come difficult societal problems; and
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(2) no corporation in the United States should 
adopt policies that prohibit the corporation from 
contributing to an organization that is successfully 
advancing a philanthropic cause merely because such 
organization is faith based. 
SEC. 304. MATERNITY GROUP HOMES. 
Section 322 of the Runaway and Homeless Youth Act 
(42 U.S.C. 5714–2) is amended—
(1) in subsection (a)(1), by inserting ‘‘(includ-
ing maternity group homes)’’ after ‘‘group homes’’; 
and 
(2) by adding at the end the following: 
‘‘(c) MATERNITY GROUP HOME.—In this part, the 
term ‘maternity group home’ means a community-based, 
adult-supervised group home that provides— 
‘‘(1) young mothers and their children with a 
supportive and supervised living arrangement in 
which such mothers are required to learn parenting 
skills, including child development, family budgeting, 
health and nutrition, and other skills to promote 
their long-term economic independence and the well-
being of their children; and 
‘‘(2) pregnant women with—
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‘‘(A) information regarding the option of 
placing children for adoption through licensed 
adoption service providers; 
‘‘(B) assistance with prenatal care and 
child birthing; and 
‘‘(C) pre- and post-placement adoption 
counseling.’’.
SEC. 305. AUTHORITY OF STATES TO USE 10 PERCENT OF 
THEIR TANF FUNDS TO CARRY OUT SOCIAL 
SERVICES BLOCK GRANT PROGRAMS. 
Section 404(d)(2) of the Social Security Act (42 
U.S.C. 604(d)(2)) is amended to read as follows: 
‘‘(2) LIMITATION ON AMOUNT TRANSFERABLE 
TO
TITLE
XX
PROGRAMS.—A State may use not 
more than 10 percent of the amount of any grant 
made to the State under section 403(a) for a fiscal 
year to carry out State programs pursuant to title 
XX.’’.
Passed the House of Representatives September 17, 
2003. 
Attest: 
JEFF TRANDAHL, 
Clerk.