‘‘(2) TERRORIST ORGANIZATIONS.—An organiza-
tion is described in this paragraph if such organiza-
tion is designated or otherwise individually identi-
fied— 
‘‘(A) under section 212(a)(3)(B)(vi)(II) or 
219 of the Immigration and Nationality Act as 
a terrorist organization or foreign terrorist orga-
nization, 
‘‘(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 pur-
pose of imposing on such organization an eco-
nomic 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 supporting 
or engaging in terrorist activity (as defined 
in section 212(a)(3)(B) of the Immigration 
and Nationality Act) or supporting ter-
rorism (as defined in section 140(d)(2) of
the Foreign Relations Authorization 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 designa-
tions and identifications described in paragraph 
(2) with respect to such organization are re-
scinded pursuant to the law or Executive order 
under which such designation or identification 
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 para-
graph (2) during the period described in paragraph 
(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 des-
ignation 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 organization 
is determined to be erroneous pursuant 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 or-
ganization, 
credit or refund (with interest) with respect to 
such overpayment shall be made. 
‘‘(B) WAIVER OF LIMITATIONS.—If the cred-
it or refund of any overpayment of tax described 
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 refund 
may nevertheless be allowed or made if the claim 
therefor is filed before the close of the 1-year pe-
riod beginning on the date of the last determina-
tion 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 update 
the listings of tax-exempt organizations and shall 
publish appropriate notice to taxpayers of such sus-
pension and of the fact that contributions to such or-
ganization 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 qualification 
or continuing qualification of an organization as
(2) PAYMENTS SUBJECT TO BINDING CONTRACT 
TRANSITION RULE.—If the amendments made by sec-
tion 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 be-
fore January 1, 2001. 
SEC. 206. SIMPLIFICATION OF LOBBYING EXPENDITURE 
LIMITATION. 
(a) REPEAL OF GRASSROOTS EXPENDITURE LIMIT.—
Paragraph (1) of section 501(h) (relating to expenditures 
by public charities to influence legislation) is amended to 
read as follows: 
‘‘(1) GENERAL RULE.—In the case of an organi-
zation to which this subsection applies, exemption 
from taxation under subsection (a) shall be denied be-
cause a substantial part of the activities of such orga-
nization consists of carrying on propaganda, or oth-
erwise attempting, to influence legislation, but only if 
such organization normally makes lobbying expendi-
tures 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 expenditures’ 
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 orga-
nization 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 para-
graphs (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 subpara-
graph (A) and by striking subparagraphs (C) and 
(D). 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 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 conserva-
tion 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 there-
of, and
(C) such bond is issued for a qualified orga-
nization 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 forests 
and forest land located in the State of Wash-
ington which at the time of acquisition or imme-
diately thereafter are subject to a conservation 
restriction described in subsection (c)(2), 
(B) interest on the qualified forest conserva-
tion bonds for the 3-year period beginning on the 
date of issuance of such bonds, and 
(C) credit enhancement fees which constitute 
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 forest 
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 (relating 
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 en-
actment of this Act. 
(b) ITEMS FROM QUALIFIED HARVESTING ACTIVITIES 
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 pay-
ments during such taxable year for qualified forest 
conservation bonds. 
(3) QUALIFIED
HARVESTING
ACTIVITY.—For 
purposes of paragraph (1)—
(A) IN GENERAL.—The term ‘‘qualified har-
vesting activity’’ means the sale, lease, or har-
vesting, 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 organiza-
tion. 
(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 catas-
trophes, or which are in imminent danger 
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 quali-
fied 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 bene-
fits attributable to such excess and interest at the un-
derpayment 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, recre-
ation, 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 reference 
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 conserva-
tion restriction described in this paragraph is a re-
striction which—
(A) is granted in perpetuity to an unrelated 
person which is described in section 170(h)(3) of 
such Code and which, in the case of a nongovern-
mental unit, is organized and operated for con-
servation 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 conserva-
tion 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 de-
veloping forest lands and other renewable re-
sources for the long-term charitable, educational, 
scientific and public benefit, 
(B) more than half of the value of the prop-
erty 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 direc-
tors—
(i) at least 20 percent of the members 
of which represent the holders of the con-
servation restriction described in paragraph 
(2), 
(ii) at least 20 percent of the members 
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 con-
tractor with respect to, officer of, director of, 
or held a material financial interest in, a 
commercial forest products enterprise with 
which the qualified organization has a con-
tractual 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 qualified 
conservation plan and any change thereto, and 
(F) upon dissolution, is required to dedicate 
its assets to—
(i) an organization described in section 
501(c)(3) of such Code which is organized 
and operated for conservation purposes, or
(ii) a governmental unit described in 
section 170(c)(1) of such Code. 
(4) UNRELATED PERSON.—The term ‘‘unrelated 
person’’ means a person who is not a related person. 
(5) RELATED PERSON.—A person shall be treat-
ed as related to another person if—
(A) such person bears a relationship to such 
other person described in section 267(b) (deter-
mined without regard to paragraph (9) thereof), 
or 707(b)(1), of such Code, determined by sub-
stituting ‘‘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 enactment 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 enactment 
of this Act, the Comptroller General shall submit a re-
port 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 Natural 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 re-
quire.
‘‘(b) CONTRACT AUTHORITY, ETC.—The Secretary may 
enter into a grant, contract, or cooperative agreement with 
any entity under which the entity would provide technical 
assistance to another entity to operate a social service pro-
gram that assists persons and families in need, including 
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 per-
sons 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 implementation 
of any social service program.
‘‘(d) SOCIAL SERVICES PROGRAM DEFINED.—In this 
section, the term ‘social services program’ means a program 
that provides benefits or services of any kind to persons and 
families in need. 
‘‘(e) LIMITATIONS ON AUTHORIZATION OF APPROPRIA-
TIONS.—To carry out this section, there are authorized 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 Inde-
pendence 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 RESERVE 
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 INDIVIDUALS 
IN HOUSEHOLDS WITH INCOME NOT EXCEEDING 50 PER-
CENT 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 income 
of the household—
‘‘(A) does not exceed 200 percent of the pov-
erty line (as determined by the Office of Manage-
ment 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 Secretary 
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 Pub-
lic 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 ex-
plains the educational items to be purchased, and the docu-
ment and the expenses are approved by the qualified 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 in-
terest does not exceed the amount of interest that 
has accrued during that period on amounts de-
posited 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 limitation 
in subsection (a)(3), would be required by that subsection 
to be deposited into the individual development account of 
an individual or into a parallel account maintained by the
qualified entity, the qualified entity may deposit the 
amount into the individual development account of any in-
dividual or into any such parallel account maintained 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 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 societal 
challenges. 
(4) Every day faith-based organizations in the 
United States help people recover from drug and alco-
hol addiction, provide food and shelter for the home-
less, rehabilitate prison inmates so that they can 
break free from the cycle of recidivism, and teach peo-
ple job skills that will allow them to move from pov-
erty 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 suf-
ficient to praise charities and community groups; we 
must support them. And this is both a public obliga-
tion and a personal responsibility.’’. 
(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 founda-
tions 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 restrict con-
tributions to faith-based organizations. 
(b) CORPORATIONS ENCOURAGED TO CONTRIBUTE TO 
FAITH-BASED ORGANIZATIONS.—The Congress calls on cor-
porations in the United States, in the words of the Presi-
dent, ‘‘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 challenges of 
our day. 
(c) SENSE OF THE CONGRESS.—It is the sense of Con-
gress that—
(1) corporations in the United States are impor-
tant partners with government in efforts to overcome 
difficult societal problems; and 
(2) no corporation in the United States should 
adopt policies that prohibit the corporation from con-
tributing to an organization that is successfully ad-
vancing a philanthropic cause merely because such 
organization is faith based. 
SEC. 304. MATERNITY GROUP HOMES. 
(a) PERMISSIBLE USE OF FUNDS.—Section 322 of the 
Runaway and Homeless Youth Act (42 U.S.C. 5714–2) is 
amended—
(1) in subsection (a)(1), by inserting ‘‘(including 
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—
‘‘(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.’’. 
(b) CONTRACT FOR EVALUATION.—Part B of the Run-
away and Homeless Youth Act (42 U.S.C. 5701 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 323. CONTRACT FOR EVALUATION. 
‘‘(a) IN GENERAL.—The Secretary shall enter into a 
contract with a public or private entity for an evaluation 
of the maternity group homes that are supported by grant 
funds under this Act. 
‘‘(b) INFORMATION.—The evaluation described in sub-
section (a) shall include the collection of information about
the relevant characteristics of individuals who benefit from 
maternity group homes such as those that are supported 
by grant funds under this Act and what services provided 
by those maternity group homes are most beneficial to such 
individuals. 
‘‘(c) REPORT.—Not later than 2 years after the date 
on which the Secretary enters into a contract for an evalua-
tion under subsection (a), and biennially thereafter, the en-
tity conducting the evaluation under this section shall sub-
mit to Congress a report on the status, activities, and ac-
complishments of maternity group homes that are sup-
ported by grant funds under this Act.’’. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—Section 
388 of the Runaway and Homeless Youth Act (42 U.S.C. 
5751) is amended—
(1) in subsection (a)(1)—
(A) by striking ‘‘There’’ and inserting the 
following: 
‘‘(A) IN GENERAL.—There’’; 
(B) in subparagraph (A), as redesignated, 
by inserting ‘‘and the purpose described in sub-
paragraph (B)’’ after ‘‘other than part E’’; and 
(C) by adding at the end the following: 
‘‘(B) MATERNITY GROUP HOMES.—There is 
authorized to be appropriated, for maternity
group homes eligible for assistance under section 
322(a)(1)—
‘‘(i) $33,000,000 for fiscal year 2003; 
and 
‘‘(ii) such sums as may be necessary 
for fiscal year 2004.’’; and 
(2) in subsection (a)(2)(A), by striking ‘‘para-
graph (1)’’ and inserting ‘‘paragraph (1)(A)’’.
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.’’.
Union Calendar No. 157
108TH CONGRESS 
1ST SESSION 
H. R. 7
[Report No. 108–270, Part I] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
provide incentives for charitable contributions by 
individuals and businesses, and for other pur-
poses. 
SEPTEMBER 16, 2003
Reported from the Committee on Ways and Means with 
an amendment 
Referral to the Committee on Education and the Work-
force extended for a period ending not later than Sep-
tember 16, 2003
Committee on Education and the Workforce discharged; 
committed to the Committee of the Whole House on 
the State of the Union and ordered to be printed