I
105TH CONGRESS
2D SESSION
H. R. 3241
To amend the Housing and Community Development Act of 1974 to authorize
States to use community development block grant amounts provided
for nonentitlement areas to offset the costs of State charity tax credits.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 12, 1998
Mr. SOUDER (for himself, Mrs. MYRICK, and Mr. WATTS of Oklahoma) intro-
duced the following bill; which was referred to the Committee on Banking
and Financial Services
A BILL
To amend the Housing and Community Development Act
of 1974 to authorize States to use community develop-
ment block grant amounts provided for nonentitlement
areas to offset the costs of State charity tax credits.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Charitable Giving
Partnership Act’’.
SEC. 2. ELIGIBLE ACTIVITIES.
Section 105(a) of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5305(a)) is amended—
(1) in paragraph (23), by striking the period at
the end and inserting a semicolon; and
(2) by inserting after paragraph (23) the fol-
lowing new paragraph:
‘‘(24) to the extent only that amounts for a
State are available under section 106(d)(8) for use
under this paragraph, payment to the State to sup-
plant general revenue losses incurred by the State
under a State law that provides, in the case of an
individual, for a credit against State income tax im-
posed for contributions made in cash by individuals
to any organization—
‘‘(A) that is described in section 501(c)(3)
of the Internal Revenue Code of 1986;
‘‘(B) that is exempt from tax under section
501(a) of the Internal Revenue Code of 1986;
‘‘(C) that is organized under the laws of
the United States or of any State in which the
organization is qualified to operate;
‘‘(D) that is required, or elects to be treat-
ed as being required, to file returns under sec-
tion 6033 of the Internal Revenue Code of
1986;
‘‘(E) whose predominant activity is—
‘‘(i) the provision of direct services to
individuals whose annual incomes generally
do not exceed 185 percent of the official
poverty line (as defined by the Office of
Management and Budget); or
‘‘(ii) the provision of—
‘‘(I) temporary donations of food
or meals, or
‘‘(II) temporary shelter to home-
less individuals,
if the location and operation of such serv-
ices are such that the service provider may
reasonably conclude that the beneficiaries
of such services are predominantly individ-
uals described in clause (i);
‘‘(F) for which not more than a total of 25
percent of the annual aggregate expenditures of
the organization are administrative expendi-
tures in support of direct services referred to in
subparagraph (E) or expenditures for purposes
of fundraising on behalf of the organization
providing direct services referred to in subpara-
graph (E); and
‘‘(G) that does not engage in litigation on
behalf of any individual referred to in subpara-
graph (E), voter registration, or political orga-
nizing; and’’.
SEC. 3. USE OF STATE AMOUNTS FOR NONENTITLEMENT
AREAS.
Section 106(d) of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5306(d)) is amended—
(1) in paragraph (2)—
(A) in subparagraph (A)—
(i) in the matter preceding clause (i),
by striking ‘‘Amounts allocated under
paragraph (1)’’ and inserting the following:
‘‘Any amounts allocated under paragraph
(1) for a State that remain after amounts
are made available for use under para-
graph (8)’’; and
(ii) in clause (i), by striking ‘‘a State
that’’ and inserting ‘‘the State, if the
State’’;
(B) by striking subparagraph (B) and in-
serting the following new subparagraph:
‘‘(B) If a State has not elected to distribute the
amounts allocated under paragraph (1) for the State that
remain after amounts are made available for use under
paragraph (8), the Secretary shall distribute such
amounts.’’; and
(C) in subparagraphs (C) and (D), by
striking ‘‘under paragraph (1)’’ each place it
appears and inserting the following: ‘‘for the
State under paragraph (1) that remain after
amounts are made available for use under para-
graph (8)’’;
(2) in paragraph (5) (as added by section 811
of the Housing and Community Development Act of
1992 (Public Law 102–550; 106 Stat. 3850)), by
striking ‘‘distribution in nonentitlement areas’’ and
inserting ‘‘use under this subsection’’;
(3) by redesignating the second paragraph des-
ignated as paragraph (5) (as added by section 106(i)
of the Housing and Urban-Rural Recovery Act of
1983 (97 Stat. 1166)) and paragraph (6) as para-
graphs (6) and (7), respectively; and
(4) by adding at the end the following new
paragraph:
‘‘(8) Of any amounts allocated under paragraph (1)
for a State for any fiscal year, the State may use not more
than 20 percent of such amounts for the activity under
section 105(a)(24), and the remainder of the amounts
shall be distributed in accordance with this subsection. In
the case of a State described in paragraph (2)(B), the Sec-
retary shall make such amounts available to the State
upon a determination that the use of such amounts com-
plies with the requirements under section 105(a)(24) and
this title.’’.
SEC. 4. STATEMENT OF COMMUNITY DEVELOPMENT OB-
JECTIVES.
Section 104(a)(1) is amended by adding at the end
the following new sentence: ‘‘In the case of any State re-
ceiving amounts pursuant to section 106(d)(8), the state-
ment of projected uses of funds shall include a statement
of the proposed eligible activity under section 105(a)(24)
for which the amounts will be used and the percentage
of the allocation for the State under section 106(d)(1) to
be used for such activity.’’.
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