(b) EFFECTIVE DATE.—The amendment made by
this section shall apply with respect to the sale of any
property for which the 3-year period for offsetting gain
by purchasing other property under subparagraph (D) of
section 512(a)(3) of the Internal Revenue Code (as in ef-
fect on the day before the date of the enactment of this
Act) had not expired as of January 1, 2001.
SEC. 113. EXEMPTION OF QUALIFIED 501(c)(3) BONDS FOR
NURSING HOMES FROM FEDERAL GUAR-
ANTEE PROHIBITIONS.
(a) IN GENERAL.—For purposes of section 149(b)(1)
of the Internal Revenue Code of 1986, any qualified
501(c)(3) bond (as defined in section 145 of such Code)
shall not be treated as federally guaranteed solely because
such bond is part of an issue supported by a letter of cred-
it, if such bond—
(1) is issued after December 31, 2003, and be-
fore the date which is 1 year after the date of the
enactment of this Act, and
(2) is part of an issue 95 percent or more of
the net proceeds of which are to be used to finance
1 or more of the following facilities primarily for the
benefit of the elderly:
(A) Licensed nursing home facility.
(B) Licensed or certified assisted living fa-
cility.
(C) Licensed personal care facility.
(D) Continuing care retirement commu-
nity.
(b) LIMITATION ON ISSUER.—Subsection (a) shall
not apply to any bond described in such subsection if the
aggregate authorized face amount of the issue of which
such bond is a part, when increased by the outstanding
amount of such bonds issued by the issuer during the pe-
riod described in subsection (a)(1) exceeds $15,000,000.
(c) LIMITATION ON BENEFICIARY.—Rules similar to
the rules of section 144(a)(10) of the Internal Revenue
Code of 1986 shall apply for purposes of this section, ex-
cept that—
(1) ‘‘$15,000,000’’ shall be substituted for
‘‘$40,000,000’’ in subparagraph (A) thereof, and
(2) such rules shall be applied—
(A) only with respect to bonds described in
this section, and
(B) with respect to the aggregate author-
ized face amount of all issues of such bonds
which are allocable to the beneficiary.
(d) CONTINUING CARE RETIREMENT COMMUNITY.—
For purposes of this section, the term ‘‘continuing care
retirement community’’ means a community which pro-
vides, on the same campus, a consortium of residential liv-
ing options and support services to persons at least 60
years of age under a written agreement. For purposes of
the preceding sentence, the residential living options shall
include independent living units, nursing home beds, and
either assisted living units or personal care beds.
TITLE II—TAX REFORM AND IM-
PROVEMENTS RELATING TO
CHARITABLE 
ORGANIZA-
TIONS AND PROGRAMS
SEC. 201. SUSPENSION OF TAX-EXEMPT STATUS OF TER-
RORIST ORGANIZATIONS.
(a) IN GENERAL.—Section 501 (relating to exemp-
tion from tax on corporations, certain trusts, etc.) is
amended by redesignating subsection (p) as subsection (q)
and by inserting after subsection (o) the following new
subsection:
‘‘(p) SUSPENSION OF TAX-EXEMPT STATUS OF TER-
RORIST ORGANIZATIONS.—
‘‘(1) IN
GENERAL.—The exemption from tax
under subsection (a) with respect to any organiza-
tion described in paragraph (2), and the eligibility of
any organization described in paragraph (2) to apply
for recognition of exemption under subsection (a),
shall be suspended during the period described in
paragraph (3).
‘‘(2) TERRORIST ORGANIZATIONS.—An organi-
zation is described in this paragraph if such organi-
zation is designated or otherwise individually
identified—
‘‘(A) under section 212(a)(3)(B)(vi)(II) or
219 of the Immigration and Nationality Act as
a terrorist organization or foreign terrorist or-
ganization,
‘‘(B) in or pursuant to an Executive order
which is related to terrorism and issued under
the authority of the International Emergency
Economic Powers Act or section 5 of the
United Nations Participation Act of 1945 for
the purpose of imposing on such organization
an economic or other sanction, or
‘‘(C) in or pursuant to an Executive order
issued under the authority of any Federal law
if—
‘‘(i) the organization is designated or
otherwise individually identified in or pur-
suant to such Executive order as sup-
porting or engaging in terrorist activity (as
defined in section 212(a)(3)(B) of the Im-
migration and Nationality Act) or sup-
porting terrorism (as defined in section
140(d)(2) of the Foreign Relations Author-
ization Act, Fiscal Years 1988 and 1989);
and
‘‘(ii) such Executive order refers to
this subsection.
‘‘(3) PERIOD OF SUSPENSION.—With respect to
any organization described in paragraph (2), the pe-
riod of suspension—
‘‘(A) begins on the later of—
‘‘(i) the date of the first publication of
a designation or identification described in
paragraph (2) with respect to such organi-
zation, or
‘‘(ii) the date of the enactment of this
subsection, and
‘‘(B) ends on the first date that all des-
ignations and identifications described in para-
graph (2) with respect to such organization are
rescinded pursuant to the law or Executive
order under which such designation or identi-
fication was made.
‘‘(4) DENIAL
OF
DEDUCTION.—No deduction
shall be allowed under section 170, 545(b)(2),
556(b)(2), 642(c), 2055, 2106(a)(2), or 2522 for
any contribution to an organization described in
paragraph (2) during the period described in para-
graph (3).
‘‘(5) DENIAL OF ADMINISTRATIVE OR JUDICIAL
CHALLENGE OF SUSPENSION OR DENIAL OF DEDUC-
TION.—Notwithstanding section 7428 or any other
provision of law, no organization or other person
may challenge a suspension under paragraph (1), a
designation or identification described in paragraph
(2), the period of suspension described in paragraph
(3), or a denial of a deduction under paragraph (4)
in any administrative or judicial proceeding relating
to the Federal tax liability of such organization or
other person.
‘‘(6) ERRONEOUS DESIGNATION.—
‘‘(A) IN GENERAL.—If—
‘‘(i) the tax exemption of any organi-
zation described in paragraph (2) is sus-
pended under paragraph (1),
‘‘(ii) each designation and identifica-
tion described in paragraph (2) which has
been made with respect to such organiza-
tion is determined to be erroneous pursu-
ant to the law or Executive order under
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
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:
‘‘(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
(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-
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.—
(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
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-
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,
(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).
(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—
(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.
(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.
(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
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,
(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
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,
(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
directors—
(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-
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.
(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.—
‘‘(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
‘‘(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-
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
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