requirements of this part (and has not implemented any
corrective recommendations directed by the Secretary),
the Secretary shall terminate such entity’s authority to
conduct the demonstration project.
‘‘(b) ACTIONS REQUIRED UPON TERMINATION.—If
the Secretary terminates the authority to conduct a dem-
onstration project, the Secretary—
‘‘(1) shall suspend the demonstration project;
‘‘(2) shall take control of the Reserve Fund es-
tablished pursuant to section 691;
‘‘(3) shall make every effort to identify another
qualified entity (or entities) willing and able to con-
duct the project in accordance with the approved ap-
plication (or, as modified, if necessary to incorporate
the recommendations) and the requirements of this
part;
‘‘(4) shall, if the Secretary identifies an entity
(or entities) described in paragraph (3)—
‘‘(A) authorize the entity (or entities) to
conduct the project in accordance with the ap-
proved application (or, as modified, if nec-
essary, to incorporate the recommendations)
and the requirements of this part;
‘‘(B) transfer to the entity (or entities)
control over the Reserve Fund established pur-
suant to section 691; and
‘‘(C) consider, for purposes of this part—
‘‘(i) such other entity (or entities) to
be the qualified entity (or entities) origi-
nally authorized to conduct the demonstra-
tion project; and
‘‘(ii) the date of such authorization to
be the date of the original authorization;
and
‘‘(5) if, by the end of the 1-year period begin-
ning on the date of the termination, the Secretary
has not found a qualified entity (or entities) de-
scribed in paragraph (3), shall—
‘‘(A) terminate the project; and
‘‘(B) from the amount remaining in the
Reserve Fund established as part of the project,
remit to each source that provided funds under
section 689(c)(4) to the entity originally au-
thorized to conduct the project, an amount that
bears the same ratio to the amount so remain-
ing as the amount provided by the source under
section 689(c)(4) bears to the amount provided
by all such sources under that section.
‘‘SEC. 698. EVALUATIONS.
‘‘(a) IN GENERAL.—Not later than 10 months after
the date of enactment of this part, the Secretary shall
enter into a contract with an independent research organi-
zation to evaluate, individually and as a group, all quali-
fied entities and sources participating in the demonstra-
tion projects conducted under this part.
‘‘(b) FACTORS TO EVALUATE.—In evaluating any
demonstration project conducted under this part, the re-
search organization shall address the following factors:
‘‘(1) The effects of incentives and organiza-
tional or institutional support on savings behavior in
the demonstration project.
‘‘(2) The savings rates of individuals in the
demonstration project based on demographic charac-
teristics including gender, age, family size, race or
ethnic background, and income.
‘‘(3) The economic, civic, psychological, and so-
cial effects of asset accumulation, and how such ef-
fects vary among different populations or commu-
nities.
‘‘(4) The effects of individual development ac-
counts on homeownership, level of postsecondary
education attained, and self-employment, and how
such effects vary among different populations or
communities.
‘‘(5) The potential financial returns to the Fed-
eral Government and to other public sector and pri-
vate sector investors in individual development ac-
counts over a 5-year and 10-year period of time.
‘‘(6) The lessons to be learned from the dem-
onstration projects conducted under this part and if
a permanent program of individual development ac-
counts should be established.
‘‘(7) Such other factors as may be prescribed by
the Secretary.
‘‘(c) METHODOLOGICAL REQUIREMENTS.—In evalu-
ating any demonstration project conducted under this
part, the research organization shall—
‘‘(1) for at least 1 site, use control groups to
compare participants with nonparticipants;
‘‘(2) before, during, and after the project, ob-
tain such quantitative data as are necessary to
evaluate the project thoroughly; and
‘‘(3) develop a qualitative assessment, derived
from sources such as in-depth interviews, of how
asset accumulation affects individuals and families.
‘‘(d) REPORTS BY THE SECRETARY.—
‘‘(1) INTERIM
REPORTS.—Not later than 90
days after the end of the calendar year in which the
Secretary first authorizes a qualified entity to con-
duct a demonstration project under this part, and
every 12 months thereafter until all demonstration
projects conducted under this part are completed,
the Secretary shall submit to Congress an interim
report setting forth the results of the reports sub-
mitted pursuant to section 696(b).
‘‘(2) FINAL
REPORTS.—Not later than 12
months after the conclusion of all demonstration
projects conducted under this part, the Secretary
shall submit to Congress a final report setting forth
the results and findings of all reports and evalua-
tions conducted pursuant to this part.
‘‘(e) EVALUATION EXPENSES.—The Secretary shall
expend such sums as may be necessary, but not less than
2 percent of the amount appropriated under section 699A
for a fiscal year, to carry out the purposes of this section.
‘‘SEC. 699. TREATMENT OF FUNDS.
‘‘Funds (including interest accruing) deposited in in-
dividual development accounts shall not be considered to
be income or assets for purposes of determining eligibility
for, or the amount of assistance furnished under, any Fed-
eral or federally assisted program based on need.
‘‘SEC. 699A. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this part, $25,000,000 for each of fiscal years 1999, 2000,
2001, 2002, and 2003 to remain available until ex-
pended.’’.
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