the approved application therefor and this sec-
tion; and
(D) determine the percentage of the
amounts appropriated to carry out this section
that are to be used for evaluations under sub-
section (m) of this section, subject to the re-
quirement that such percentage shall be not less
than 3 percent nor more than 8 percent.
(2) RECOMMENDATIONS BY PANEL.—The panel
shall make recommendations to any organization
conducting a demonstration project under this sec-
tion on measures to be taken to ensure that the
project progresses adequately and is conducted in
substantial compliance with the approved application
therefor and this section. The panel shall transmit
copies of such recommendations to the Secretary
and the Treasurer (or equivalent official) of the
State in which the project is conducted.
(3) PANEL TO REVIEW IMPLEMENTATION OF
RECOMMENDATIONS.—After a reasonable time has
elapsed since the organization conducting a dem-
onstration project under this section has been pro-
vided recommendations made by the panel, the panel
shall—
(A) determine whether or not the organiza-
tion has implemented the recommendations;
and
(B) if the panel finds that the organization
has failed to implement the recommendations,
immediately notify the Secretary of such fail-
ure.
(k) OVERSIGHT PANEL.—
(1) MEMBERSHIP.—
(A) IN GENERAL.—
(i) 8 FEDERAL MEMBERS.—The Sec-
retary shall appoint to the panel 8 mem-
bers who shall be officers or employees of
the Federal Government. Such members
may vote on any matter before the panel.
(ii) 2 ROTATING STATE MEMBERS.—
The Secretary, in consultation with the
Treasurer (or equivalent official) of each
State in which a demonstration project is
conducted under this section, shall appoint
to the panel 2 members from each such
State who are representatives of the gov-
ernment of the State. The members ap-
pointed under this clause from a State may
vote only on the matters before the panel
relating to demonstration projects con-
ducted under this section in the State.
(iii) 5 PRIVATE MEMBERS.—The Sec-
retary shall appoint to the panel 5 mem-
bers who shall be business leaders and wel-
fare and social policy innovators. Such
members may vote on any matter before
the panel.
(B) QUALIFICATIONS.—Each member of
the panel shall be qualified to review the con-
duct of demonstration projects conducted under
this section by virtue of the education, training,
or experience of the member.
(C) POLITICAL
AFFILIATION.—Not more
than 50 percent of the members of the panel
may be of the same political party.
(2) TERMS.—
(A) GENERAL RULE.—Except as provided
in subparagraph (B), each member of the panel
shall be appointed for the life of the panel.
(B) SPECIAL RULE.—Any individual who is
appointed to the panel because of the status of
the individual as an officer or employee of a
government or because of the status of the indi-
vidual as not an officer or employee of any gov-
ernment, and whose status changes, may not
continue as a member of the panel.
(C) VACANCIES.—A vacancy in the panel
shall be filled in the manner in which the origi-
nal appointment was made.
(3) COMPENSATION.—
(A) BASIC PAY.—
(i) GENERAL RULE.—Except as pro-
vided in clause (ii), each member of the
panel shall be entitled to receive not more
than the daily equivalent of the maximum
annual rate of basic pay payable for grade
GS–18 of the General Schedule for each
day (including travel time) during which
the member is engaged in the actual per-
formance of duties of the panel.
(ii) PROHIBITION AGAINST COMPENSA-
TION OF FEDERAL OFFICERS OR EMPLOY-
EES.—Members of the panel who are full-
time officers or employees of the United
States may not receive additional pay, al-
lowances, or benefits by reason of their
service on the panel.
(B) TRAVEL EXPENSES.—Each member of
the panel shall receive travel expenses, including
per diem in lieu of subsistence, in accordance
with sections 5702 and 5703 of title 5, United
States Code.
(4) PROCEDURE.—
(A) QUORUM.—51 percent of the members
of the panel who may vote on a matter shall
constitute a quorum with respect to the matter
but a lesser number may hold hearings.
(B) CHAIRPERSON.—The Chairperson of
the panel shall be elected by the members of the
panel appointed under paragraph (1)(A)(i).
(C) MEETINGS.—
(i) HOW
CALLED.—The panel shall
meet on a matter relating to a demonstra-
tion project conducted under this section in
a State, at the call of the Chairperson or
of a majority of the members of the panel
who may vote on the matter.
(ii) FREQUENCY.—
(I) GENERAL
OVERSIGHT.—The
panel shall meet not less frequently
than twice yearly with respect to the
monitoring of the progress of dem-
onstration projects conducted under
this section.
(II) 
REVIEW
OF
PROBLEM
PROJECTS.—The panel shall meet as
necessary with respect to projects that
do not progress adequately or are not
conducted in substantial compliance
with the approved application therefor
and this section.
(5) POWERS.—
(A) HEARINGS AND SESSIONS.—The panel
may, for the purpose of carrying out this sub-
section, hold hearings, sit and act at times and
places, take testimony, and receive evidence as
the panel considers appropriate. The panel may
administer oaths or affirmations to witnesses
appearing before it.
(B) POWERS OF MEMBERS AND AGENTS.—
Any member or agent of the panel who is not
an officer or employee of a State government
may, if authorized by the panel, take any action
which the panel is authorized to take by this
section.
(C) OBTAINING OFFICIAL DATA.—Subject
to other law, the panel may secure directly from
any department or agency of the United States
information necessary to enable it to carry out
any duty of the panel under this section. Upon
request of the Chairperson of the panel, the
head of that department or agency shall furnish
that information to the panel.
(D) MAIL.—The panel may use the United
States mail in the same manner and under the
same conditions as other departments and
agencies of the United States.
(6) ADMINISTRATIVE SUPPORT.—Upon request
of the panel, the Secretary may detail any of the
personnel of the Department of the Treasury to the
panel to assist it in carrying out its duties under
this section.
(7) TERMINATION.—The panel shall terminate
on a date designated by the Secretary.
(l) SANCTIONS.—
(1) AUTHORITY TO REVOKE DEMONSTRATION
AUTHORITY.—If the Secretary receives a notice
under subsection (j)(3)(B) with respect to a dem-
onstration project, the Secretary may revoke the
original authorization to conduct the project.
(2) ACTIONS REQUIRED UPON REVOCATION.—If
the Secretary revokes the original authorization to
conduct a demonstration project, the Secretary—
(A) shall suspend the project;
(B) shall take control of the Reserve Fund
established pursuant to subsection (d) as part
of the project;
(C) shall make every effort to find another
organization willing and able to conduct the
project in accordance with the approved appli-
cation therefor (as modified, if necessary, to in-
corporate the recommendations) and this sec-
tion;
(D) may obtain the assistance of the panel
to find such an organization;
(E) if the Secretary finds such an organi-
zation, shall—
(i) authorize the organization to con-
duct the project in accordance with the ap-
proved application therefor (as modified, if
necessary, to incorporate the recommenda-
tions) and this section;
(ii) transfer to the organization con-
trol over the Reserve Fund established
pursuant to subsection (d) as part of the
project; and
(iii) for purposes of this section, con-
sider—
(I) such other organization to be
the organization originally authorized
to conduct the project; and
(II) the date of such authoriza-
tion to be the date of the original au-
thorization; and
(F) if, by the end of the 1-year period be-
ginning on the date of such revocation, the Sec-
retary has not found such an organization,
shall—
(i) terminate the project; and
(ii) from the Reserve Fund estab-
lished as part of the project, remit to each
entity that has provided amounts to the or-
ganization originally authorized to conduct
the project, an amount equal to that per-
centage of the aggregate of the amounts so
provided by all entities that is represented
by the amount so provided by such entity.
(m) EVALUATIONS.—
(1) IN GENERAL.—Not later than July 1, 1996,
the panel established pursuant to subsection (k)
shall enter into a contract with an independent re-
search organization that requires the organization,
in accordance with this subsection, to evaluate the
demonstration projects conducted under this section,
individually and as a group.
(2) RESEARCH QUESTIONS.—In evaluating any
demonstration project conducted under this section,
the research organization shall address the following
questions:
(A) What types of information and public
education efforts are successful in attracting
project participants?
(B) How can participation in the dem-
onstration project be made as easy and acces-
sible as possible for participants?
(C) What level of financial incentives is re-
quired to stimulate participation in the dem-
onstration project, and does this vary among
different populations?
(D) What program features in conjunction
with individual development accounts (such as
peer support, structured planning exercises,
mentoring, and case management) increase the
rate and consistency of participation in the
demonstration project?
(E) What are the economic, psychological,
and social effects of asset accumulation, and for
whom? To what extent, under what cir-
cumstances, and for whom does asset accumula-
tion under the demonstration project lead to
any or all of the following:
(i) A greater sense of security and
control?
(ii) Greater stability in the household?
(iii) A more positive future outlook?
(iv) More long-term planning?
(v) Increased efforts to maintain and
develop assets?
(vi) Greater knowledge about savings,
investments, and other financial matters?
(vii) Increased effort and success in
educational achievement (including those
of parents working to provide for the edu-
cation of their children)?
(viii) Increased specialization in career
development?
(ix) Greater self-esteem and personal
efficacy?
(x) Improved social status?
(xi) Increased political participation?
(xii) Increased community involve-
ment?
(xiii) Increased labor earnings in the
long term?
(xiv) Decreased reliance on traditional
forms of public assistance in the long
term?
(3) 
METHODOLOGICAL
REQUIREMENTS.—In
evaluating any demonstration project conducted
under this section, the research organization shall—
(A) use control groups to compare partici-
pants with nonparticipants as much as possible;
(B) before, during, and after the project,
obtain such quantitative data as are necessary
to thoroughly evaluate the project; and
(C) develop a qualitative assessment, de-
rived from sources such as in depth interviews,
of how asset accumulation affects individuals
and families.
(4) STAFFING REQUIREMENTS.—In evaluating
any demonstration project conducted under this sec-
tion, the research organization shall use skilled, pro-
fessional, and independent staff.
(n) DEFINITIONS.—As used in this section:
(1) APPLICABLE PERIOD.—The term ‘‘applica-
ble period’’ means, with respect to amounts to be
paid from a grant made for a project year, the cal-
endar year immediately preceding the calendar year
in which the grant is made.
(2) 
HOUSEHOLD.—The 
term 
‘‘household’’
means all individuals who share use of a dwelling
unit as primary quarters for living and eating sepa-
rate from other individuals.
(3) HOUSEHOLD NET WORTH.—
(A) IN GENERAL.—The term ‘‘net worth’’
means, with respect to a household, the aggre-
gate market value of all assets not excluded
under subparagraph (B) that are owned in
whole or in part by any member of the house-
hold, minus the obligations or debts of any
member of the household.
(B) ASSETS
EXCLUDED.—The following
assets (and obligations or debts with respect
thereto) shall be excluded in determining the
net worth of any household:
(i) $35,000 OF HOME EQUITY.—The
lesser of—
(I) the equity of the members of
the household in the dwelling unit in
which the members reside; or
(II) $35,000.
(ii) MOTOR VEHICLE.—The most val-
uable motor vehicle owned by any member
of the household.
(iii) 
FURNITURE; 
APPLIANCES;
CLOTHING.—All furniture, appliances, and
clothing used by any member of the house-
hold in the course of daily living.
(iv) ART
OBJECTS.—All art objects
displayed in the dwelling unit in which the
members of the household reside.
(v) JEWELRY.—All jewelry owned by
any member of the household.
(4) INDIVIDUAL
DEVELOPMENT
ACCOUNT.—
The term ‘‘individual development account’’ has the
same meaning given such term in section 220 of the
Internal Revenue Code of 1986.
(5) PENALTY
AMOUNT.—The term ‘‘penalty
amount’’ means any of the following:
(A) FINANCIAL ASSISTANCE FORFEITED.—
Any amount paid into the general fund of the
Treasury of the United States under section
220(e) of the Internal Revenue Code of 1986.
(B) 10 PERCENT ADDITION TO TAX.—Any
additional tax imposed by section 220(f) of the
Internal Revenue Code of 1986.
(C) OTHER PENALTY TAXES.—Any tax im-
posed with respect to an individual development
account by section 4973, 4975, or 6693 of the
Internal Revenue Code of 1986.
(6) POVERTY THRESHOLD.—The term ‘‘poverty
threshold’’ means, with respect to a calendar year,
the Federal poverty line for the calendar year for the
relevant family size, as defined annually by the Bu-
reau of the Census.
(7) PROJECT YEAR.—The term ‘‘project year’’
means, with respect to a demonstration project, any
of the 5 consecutive 12-month periods beginning on
the date the project is originally authorized to be
conducted.
(8) QUALIFIED SAVINGS OF THE INDIVIDUAL
FOR THE PERIOD.—The term ‘‘qualified savings of
the individual for the period’’ means the aggregate
of the amounts contributed by the individual to the
individual development account of the individual
during the period.
(o) LIMITATIONS
ON AUTHORIZATION
OF APPRO-
PRIATIONS.—
(1) IN GENERAL.—To carry out this section,
there are authorized to be appropriated to the Sec-
retary of the Treasury not to exceed $100,000,000
for each of fiscal years 1996, 1997, 1998, 1999, and
2000.
(2) CERTAIN AMOUNTS TO BE USED FOR EVAL-
UATIONS.—To obtain evaluations of the projects in
accordance with subsection (m), the Secretary shall
expend an amount equal to the amounts appro-
priated pursuant to paragraph (1) of this subsection
for any fiscal year, multiplied by the percentage de-
termined by the panel established pursuant to sub-
section (k).
SEC. 204. FUNDS IN INDIVIDUAL DEVELOPMENT ACCOUNTS
OF 
DEMONSTRATION 
PROJECT 
PARTICI-
PANTS DISREGARDED FOR PURPOSES OF ALL
MEANS-TESTED FEDERAL PROGRAMS.
Notwithstanding any Federal law (other than the In-
ternal Revenue Code of 1986) that requires consideration
of 1 or more financial circumstances of an individual, for
the purpose of determining eligibility to receive, or the
amount of, any assistance or benefit authorized by such
law to be provided to or for the benefit of such individual,
funds (including interest accruing) in an individual devel-
opment account (as defined in section 220 of the Internal
Revenue Code of 1986) shall be disregarded for such pur-
pose with respect to any period during which such individ-
ual participates in a demonstration project conducted
under section 203 of this Act (or would be participating
in such a project but for the suspension of the project).
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