To establish the Office of Faith-Based and Community Initiatives.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tools for Community Initiatives 
Act''.

SEC. 2. ESTABLISHMENT.

    There is established in the Executive Office of the President the 
Office of Faith-Based and Community Initiatives (hereafter referred to 
as ``the Office'').

SEC. 3. DIRECTOR.

    (a) Director.--The head of the Office shall be the Director of the 
Office of Faith-Based and Community Initiatives, who shall be appointed 
by the President.
    (b) Pay of Director.--Section 5314 of title 5, United States Code, 
is amended by inserting after the item relating to the Administrator of 
the Centers for Medicare & Medicaid Services the following new item:
                    ``Director of the Office of Faith-Based and 
                Community Initiatives.''.
    (c) Interim Director.--The individual serving as the Director of 
the Office of Faith-Based and Community Initiatives on the date of the 
enactment of this Act may serve as Interim Director until such time as 
a Director is appointed by the President in accordance with subsection 
(a).

SEC. 4. RESPONSIBILITIES.

    (a) In General.--The Director shall encourage faith-based and 
community initiatives and work to eliminate improper Federal barriers 
so as to allow faith-based and community entities to compete for 
Federal funding to the fullest opportunity permitted by law.
    (b) Specific Duties.--In carrying out the responsibilities of the 
Office, the Director shall--
            (1) develop, lead, and coordinate policies with respect to 
        faith-based and community initiatives;
            (2) support faith-based and community initiatives, 
        especially those serving at-risk youth, ex-offenders, the 
        homeless and hungry, substance abusers, those with HIV and 
        AIDS, and welfare-to-work families;
            (3) work to expand the role of faith-based and community 
        initiatives through executive action, legislation, regulation, 
        and Federal and private funding;
            (4) ensure that the policy decisions made by the 
        administration and the Federal Government are consistent with 
        stated goals with respect to faith-based and community 
        initiatives;
            (5) help to integrate policies affecting faith-based and 
        other community organizations across the Federal Government;
            (6) coordinate public education activities designed to 
        mobilize public support for faith-based and community 
        initiatives by encouraging volunteerism, special projects, 
        demonstration pilots, and public-private partnerships;
            (7) encourage private charitable giving to support faith-
        based and community initiatives;
            (8) advise the President on options and ideas to assist, 
        strengthen, and replicate successful faith-based and community 
        initiatives;
            (9) provide policy and legal education to State, local, and 
        community policymakers and public officials seeking ways to 
        support and encourage faith-based and community initiatives;
            (10) develop and implement strategic initiatives in keeping 
        with policies that will strengthen families, communities, and 
        the institutions of civil society;
            (11) showcase and herald innovative grassroots nonprofit 
        organizations and civic initiatives;
            (12) work to eliminate unnecessary legislative and 
        regulatory barriers which impede the efforts of faith-based and 
        community initiatives to solve social problems;
            (13) monitor the implementation of policies with respect to 
        faith-based and community initiatives by the Centers for Faith-
        Based and Community Initiatives established within certain 
        departments and agencies of the Federal Government; and
            (14) work to establish high standards of excellence and 
        accountability for faith-based and community initiatives.

SEC. 5. ADMINISTRATION.

    (a) Officers.--The President shall assign to the Office such 
officers in addition to the Director, if any, as the President, in 
consultation with the Director, considers appropriate to discharge the 
responsibilities of the Office.
    (b) Staff.--The Director may appoint such employees as necessary to 
carry out the functions of the Office.
    (c) Resources.--The President shall, in consultation with the 
Director, assign or allocate to the Office such resources, including 
funds and other resources, as the President considers appropriate in 
order to facilitate the discharge of the responsibilities of the 
Office.
    (d) Obtaining Official Data.--The Office may secure directly from 
any department or agency of the United States information necessary to 
enable it to carry out this Act. Upon request of the Director, the head 
of that department or agency shall furnish that information to the 
Office.

SEC. 6. DESIGNATED DEPARTMENT OR AGENCY LIAISON.

    (a) In General.--The head of each designated department or agency 
shall designate a liaison who shall be responsible for coordinating the 
activities of that department or agency with the Office.
    (b) Responsibilities of Liaison.--Each designated department or 
agency liaison shall--
            (1) conduct, in coordination with the Office, a review of 
        the policies and procedures of the designated department or 
        agency to identify any barriers to the participation of faith-
        based and community initiatives in the delivery of social 
        services by such department or agency, including, but not 
        limited to, regulations, rules, orders, procurement, outreach 
        activities, and other internal policies and practices that 
        either facially discriminate against or otherwise discourage or 
        disadvantage the participation of faith-based and other 
        community organizations in Federal programs;
            (2) coordinate a comprehensive effort to incorporate faith-
        based and community initiatives in the programs and initiatives 
        of the designated department or agency;
            (3) propose initiatives to remove barriers identified 
        pursuant to the review conducted under paragraph (1);
            (4) propose the development of pilot and demonstration 
        programs to increase the participation of faith-based and 
        community initiatives in Federal, State, and local initiatives; 
        and
            (5) develop and coordinate the outreach efforts of the 
        designated department or agency to disseminate information to 
        faith-based and community initiatives with respect to 
        programming changes, contracting opportunities, and other 
        initiatives.
    (c) Annual Report.--Not later than March 31 of each year, each 
designated department or agency liaison shall submit to the Office an 
annual report which shall include the following:
            (1) A description of the efforts by the designated 
        department or agency liaison to carry out the responsibilities 
        under subsection (b).
            (2) A comprehensive analysis of the barriers to the full 
        participation of faith-based and community initiatives in the 
        delivery of social services pursuant to the review conducted 
        under subsection (b)(1).
            (3) A summary of information made available to faith-based 
        and community initiatives under subsection (b)(5).
    (d) Designated Department or Agency.--For the purposes of this 
subsection, ``designated department or agency'' means a department or 
agency of the Federal Government with a Center for Faith-Based and 
Community Initiatives, and shall include the following departments and 
agencies:
            (1) The Department of Education.
            (2) The Department of Labor.
            (3) The Department of Justice.
            (4) The Department of Health and Human Services.
            (5) The Department of Housing and Urban Development.
            (6) The Department of Agriculture.
            (7) The Agency for International Development.
            (8) The Department of Commerce.
            (9) The Department of Veterans Affairs.
            (10) The Small Business Administration.

SEC. 7. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) Federal financial assistance for social service 
        programs should be distributed in the most effective and 
        efficient manner possible;
            (2) the Nation's social service capability will benefit if 
        all eligible organizations, including faith-based and other 
        community organizations, are able to compete on an equal 
        footing for Federal financial assistance used to support social 
        service programs;
            (3) in the administration or distribution of Federal 
        financial assistance, no organization should be discriminated 
        against on the basis of religion or religious belief;
            (4) the Federal Government must implement Federal programs 
        in accordance with the establishment clause and the free 
        exercise clause of the first amendment of the Constitution;
            (5) consistent with the free exercise clause and the free 
        speech clause of the Constitution, faith-based organizations 
        should be eligible to receive Federal financial assistance and 
        to participate fully in any social service program supported 
        with Federal financial assistance without impairing their 
        independence, autonomy, expression, or religious character;
            (6) any organization that receives Federal financial 
        assistance to provide social services should be prohibited from 
        discriminating against beneficiaries or potential beneficiaries 
        of the services it provides on the basis of religion, religious 
        belief, refusal to hold a religious belief, or refusal to 
        participate in a religious practice;
            (7) an organization that engages in inherently religious 
        activities, such as worship, religious instruction, and 
        proselytization, should be eligible to receive Federal 
        financial assistance, provided that the organization offers 
        such religious activities separately in time or location from 
        any program or service supported with direct Federal financial 
        assistance, and that participation in any such religious 
        activity must be voluntary for any beneficiary of a social 
        service program supported with Federal financial assistance;
            (8) any faith-based organization that receives Federal 
        financial assistance should be able to retain its independence 
        and to continue to carry out its mission, including the 
        definition, development, practice, and expression of religious 
        beliefs, provided that it does not use Federal financial 
        assistance to support any inherently religious activity, such 
        as worship, religious instruction, or proselytization;
            (9) any faith-based organization that receives Federal 
        financial assistance should be able to use its facilities to 
        provide social services supported with Federal financial 
        assistance, without removing or altering religious art, icons, 
        scriptures, or other symbols from these facilities; and
            (10) any faith-based organization that receives Federal 
        financial assistance should be able to retain any religious 
        terms in the organization's name, take religion into account in 
        selecting board members, and include religious references in 
        any organization mission statements or other chartering or 
        governing documents.

Summary: Tools for Community Initiatives Act - Establishes the Office of Faith-Based and Community Initiatives (the Office) in the Executive Office of the President. Requires the Director of the Office to encourage faith-based and community initiatives and work to eliminate improper Federal barriers so as to allow faith-based and community entities to compete for Federal funding to the fullest opportunity permitted by law, including by: (1) developing, leading, and coordinating policies with respect to such initiatives; (2) coordinating public education activities designed to mobilize public support for such initiatives; (3) advising the President on options and ideas to assist, strengthen, and replicate successful initiatives; (4) developing and implementing strategic initiatives in keeping with policies that will strengthen families, communities, and the institutions of civil society; and (5) working to eliminate unnecessary legislative and regulatory barriers which impede the efforts of such initiatives to solve social problems.

Requires the heads of the Departments of Education, Labor, Justice, Health and Human Services, Housing and Urban Development, Agriculture, Commerce, and Veteran Affairs, the Agency for International Development, and the Small Business Administration to designate a liaison to coordinate the activities of the department or agency with the Office. Lists designated department or agency liaison responsibilities.