[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1786 Referred in House (RFH)]
<DOC>
108th CONGRESS
2d Session
S. 1786
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 24, 2004
Referred to the Committee on Education and the Workforce, and in
addition to the Committees on Energy and Commerce, and Ways and Means
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of
the committee concerned
_______________________________________________________________________
AN ACT
To revise and extend the Community Services Block Grant Act, the Low-
Income Home Energy Assistance Act of 1981, and the Assets for
Independence Act.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Poverty Reduction
and Prevention Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--COMMUNITY SERVICES BLOCK GRANT ACT
Sec. 101. Purposes.
Sec. 102. Definitions.
Sec. 103. Authorization of appropriations.
Sec. 104. Establishment of program.
Sec. 105. Use of funds.
Sec. 106. Application and plan.
Sec. 107. Designation of eligible entities in underserved areas.
Sec. 108. Tripartite boards.
Sec. 109. Training, technical assistance, and other activities.
Sec. 110. Monitoring.
Sec. 111. Corrective action; termination and reduction of funding.
Sec. 112. Fiscal controls, audits, and withholding.
Sec. 113. Accountability and reporting requirement.
Sec. 114. Limitations on use of funds.
Sec. 115. Operational rule.
Sec. 116. Discretionary authority of the Secretary.
Sec. 117. Community food and nutrition programs.
Sec. 118. National or regional programs designed to provide
instructional activities for low-income
youth.
TITLE II--LOW-INCOME HOME ENERGY ASSISTANCE
Sec. 201. Short title.
Sec. 202. Reauthorization.
Sec. 203. Natural disasters and other emergencies.
Sec. 204. Residential Energy Assistance Challenge option.
Sec. 205. Report to Congress.
TITLE III--ASSETS FOR INDEPENDENCE REAUTHORIZATION ACT
Sec. 301. Short title.
Sec. 302. Reauthorization of the Assets for Independence Act.
TITLE I--COMMUNITY SERVICES BLOCK GRANT ACT
SEC. 101. PURPOSES.
Section 672 of the Community Services Block Grant Act (42 U.S.C.
9901) is amended to read as follows:
``SEC. 672. PURPOSES.
``The purpose of this subtitle is to reduce poverty--
``(1) by strengthening and coordinating local efforts to
expand opportunities for individuals and families to become
economically self-sufficient and to improve and revitalize the
communities in which low-income Americans live, by providing
resources to States for support of local eligible entities and
their partners to--
``(A) plan, coordinate, and mobilize a broad range
of Federal, State, local, and private assistance or
investment in such a manner as to use these resources
effectively to reduce poverty and in initiatives that
are responsive to specific local needs and conditions;
``(B) organize multiple services that meet the
needs of low-income families and individuals,
especially low-wage workers and their families, and
that assist them in developing the assets and skills
needed to become self sustaining while ensuring that
these services are provided efficiently, in appropriate
combinations, and in effective sequence; and
``(C) design and implement comprehensive approaches
to assist individuals transitioning from the program of
block grants to States for temporary assistance for
needy families under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) to work;
``(2) by improving and revitalizing the communities in
which low-income Americans live by providing resources to--
``(A) broaden the financial resource base of
initiatives and projects directed to the elimination of
poverty and the re-development of the low-income
community, including partnerships with non-governmental
and governmental institutions to develop the community
assets and services that reduce poverty, such as--
``(i) other private, charitable,
neighborhood-based, and religious
organizations;
``(ii) individual citizens, and businesses,
labor, and professional groups, who are able to
influence the quantity and quality of
opportunities and services for the poor; and
``(iii) local government leadership; and
``(B) coordinate or create community-wide assets
and services that will have a significant, measurable
impact on the causes of poverty in the community and
that will help families and individuals to achieve
economic self-sufficiency, and test innovative,
community-based approaches to attacking the causes and
effects of poverty and of community breakdown,
including--
``(i) innovative initiatives to prevent and
reverse loss of investment, jobs, public
services, and infrastructure in low- and
moderate-income communities; and
``(ii) innovative partnerships to develop
the assets and services that reduce poverty, as
provided for in subparagraph (A); and
``(3) by ensuring maximum participation of residents of
low-income communities and of members of the groups served by
programs under this subtitle in guiding the eligible entities
and in their programs funded under this subtitle to ameliorate
the particular problems and needs of low-income residents of
their communities and to develop the permanent social and
economic assets of the low-income community in order to reduce
the incidence of poverty.''.
SEC. 102. DEFINITIONS.
Section 673 of the Community Services Block Grant Act (42 U.S.C.
9902) is amended--
(1) in paragraph (1)(A)(ii), by striking ``or other
mechanism''; and
(2) in paragraph (2)--
(A) in the first sentence--
(i) by striking ``Office of Management and
Budget'' and inserting ``Department of Health
and Human Services''; and
(ii) by inserting before the period the
following: ``and increased, as the Secretary
determines appropriate, to take into account
higher costs-of-living for a State''; and
(B) by striking the last sentence and inserting the
following: ``Whenever a State determines that it has
served the objectives of the block grant program
established under this subtitle, the State may revise
the poverty line, while placing a priority in serving
those who are most in need, so that 125 percent of the
official poverty line is the minimum level that a State
shall be permitted to set as its maximum eligibility
requirement and 60 percent of the State's median income
is the maximum level that a State shall be permitted to
set as its maximum eligibility requirement. The State
may revise the poverty line only upon a determination
that eligible entities are providing, coordinating, or
partnering with means-tested support services for low
and moderate-income individuals and families above the
official poverty line. Nothing in this paragraph shall
be construed to prevent eligible entities from
continuing to support individuals and families during
their transition from program eligibility to achieve
specific goals for their economic security and long-
term self-sufficiency as long as priority is given to
serving the lowest income individuals who seek
services.''.
SEC. 103. AUTHORIZATION OF APPROPRIATIONS.
Section 674 of the Community Services Block Grant Act (42 U.S.C.
9903) is amended--
(1) in subsection (a), by striking ``1999 through 2003''
and inserting ``2004 through 2009''; and
(2) in subsection (b)(2)--
(A) in subparagraph (A), by striking ``or
associations'' and inserting ``and associations''; and
(B) in subparagraph (B)--
(i) by striking ``\1/2\ of the remainder''
and inserting ``not less than \1/2\ of the
remainder''; and
(ii) by striking ``evaluation and'' and
inserting ``evaluation and training and
technical assistance activities and''.
SEC. 104. ESTABLISHMENT OF PROGRAM.
Section 675 of the Community Services Block Grant Act (42 U.S.C.
9904) is amended by striking ``through the program'' and all that
follows through the period and inserting ``to States for the purpose of
ameliorating the causes of poverty and the conditions caused by poverty
in their communities.''.
SEC. 105. USE OF FUNDS.
Section 675C(b) of the Community Services Block Grant Act (42
U.S.C. 9907(b)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``entities in
need of such training and assistance'' and inserting
``eligible entities and their statewide associations
that strengthens their managerial or programmatic
capabilities to reduce poverty''; and
(B) by striking subparagraphs (B) through (H) and
inserting the following:
``(B) supporting statewide coordination and
communication among eligible entities and State-
operated or supported programs and services, and other
locally-operated programs and services targeted to low-
income individuals and their children and families, so
as to ensure that local eligible entities' services are
integrated in a manner that allows such low-income
individual and their families to have access to as many
sources of assistance as are appropriate to support
their progress to economic stability and self-
sufficiency;
``(C) supporting innovative partnerships, programs,
and activities conducted by community action agencies
and their partners including other community-based
organizations to eliminate poverty, promote self-
sufficiency, and promote community revitalization,
including asset-building programs for low-income
individuals, such as programs supporting individual
development accounts, and home or business ownership;
``(D) analyzing the distribution of funds made
available under this subtitle within the State to
determine if such funds have been targeted to the areas
of greatest need;
``(E) supporting State charity tax credits as
described in subsection (c);
``(F) supporting the identification of exemplary
eligible entities or programs as Centers of Innovation
and methodology for disseminating innovative programs
and other best practices from those agencies statewide;
``(G) supporting the development of eligible
entities' partnerships with local law enforcement
agencies, local housing authorities, private
foundations, and other public and private partners; and
``(H) supporting other activities, consistent with
the purposes of this subtitle.''; and
(2) in paragraph (2), by adding at the end the following:
``The State shall also ensure that all funds distributed under
subsection (a) are not used for excessive administrative
expenses and that all funds distributed under such subsection
used for salaries by a local entity are fair and equitable. The
State has the authority to determine the appropriate level of
funds distributed under subsection (a) that an eligible entity
shall use for administrative expenses.''.
SEC. 106. APPLICATION AND PLAN.
Section 676 of the Community Services Block Grant Act (42 U.S.C.
9908) is amended--
(1) in subsection (b)--
(A) in the matter preceding paragraph (1), by
inserting ``for the Secretary's approval'' after ``to
the Secretary'';
(B) by striking paragraphs (1) through (6) and
inserting the following:
``(1) an assurance that funds made available through the
grant or allotment will be used--
``(A) to support activities directly and through
eligible entities that are designed to expand
opportunities for and assist low-income individuals and
their families (including low-income workers) to become
self-sufficient, including low-income workers,
families, and individuals receiving assistance under
part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.), homeless families and individuals,
migrant or seasonal farmworkers, and elderly low-income
individuals and families, and a description of how such
activities will enable the families and individuals--
``(i) to remove obstacles and solve
problems that block the achievement of self-
sufficiency by organizing and coordinating
support for those served under paragraph (3);
``(ii) to secure and retain employment that
provides adequate income with essential
benefits;
``(iii) to attain an adequate education,
with particular attention toward improving
literacy and communications and technical
skills of the low-income families in the
communities involved;
``(iv) to make better use of available
income and build household assets;
``(v) to obtain and maintain adequate
housing and a suitable living environment;
``(vi) to obtain assistance that is needed
to resolve family emergencies and individual
needs, to prevent further hardships, and to
secure economic independence; and
``(vii) to participate fully in the public
affairs and management of their communities and
the governance of eligible entities; and
``(B) to make more effective use of, and to
coordinate with, other programs related to the purposes
of this subtitle (including State welfare reform
efforts);
``(2) a description of how the State intends to use
discretionary funds made available from the remainder of the
grant or allotment described in section 675C(b) in accordance
with this subtitle, including a description of how the State
will support innovative community-based initiatives of eligible
entities and their partners related to the purposes of this
subtitle;
``(3) an assurance that the State has integrated programs
of general relevance in its plan, to the extent appropriate to
the needs of low-income communities served by the eligible
entities, including a description of innovative community and
neighborhood-based initiatives such as--
``(A) initiatives with the goal of strengthening
families and encouraging effective parenting, including
fatherhood initiatives;
``(B) initiatives to assist those moving from
welfare to work to obtain jobs at decent wages with
benefits, including those low-income individuals and
their families who are attempting to transition off a
State program carried out under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.);
``(C) programs for the establishment of violence-
free zones that would involve youth development and
intervention models that promote youth success (such as
models involving youth mediation, youth mentoring, life
skills training, job creation, and entrepreneurship
programs);
``(D) family literacy initiatives;
``(E) initiatives to increase the development of
household assets of individuals such as individual
development accounts and homeownership opportunities;
``(F) public and private partnerships to foster
community development, affordable housing, job
creation, and other means of building the assets of
low-income communities;
``(G) partnerships with local law enforcement
agencies, which may include participation in community
policing, and activities to assist community residents
and public safety officials in the event of
emergencies, including threats to national security;
``(H) initiatives to improve economic conditions
and mobilize new resources in rural areas and other at-
risk areas to eliminate obstacles to the self
sufficiency of families and individuals in those
communities;
``(I) initiatives to help reduce the concentration
of poverty in cities and inner suburbs and provide
economic opportunities for individuals and families in
those areas; and
``(J) partnerships with nonprofit or community-
based organizations that demonstrate effectiveness in
child abuse prevention, including with programs that
are school-based and that focus on adolescent victims,
and victimizers;
``(4) an assurance that the State will provide information,
including--
``(A) a description of the State measurement system
and results for the performance goals established under
section 678E(a)(1)(C);
``(B) a description of the service delivery system,
for services provided or coordinated with funds made
available through grants made under section 675C(a),
targeted to low-income individuals and families in
communities within the State;
``(C) a description of how linkages will be
developed to fill identified gaps in the services,
through the provision of information, referrals, case
management, and followup consultations, and to support
mobilization of new resources and partnerships;
``(D) a description of how funds made available
through grants made under section 675C(a) will be
coordinated with other public and private resources;
and
``(E) a description of how the local entity will
use the funds to support innovative community and
neighborhood-based initiatives related to the purposes
of this subtitle;
``(5) an assurance that eligible entities in the State will
provide, on an emergency basis, for the provision of such
supplies and services, nutritious foods, and related services,
as may be necessary to counteract conditions of starvation and
malnutrition among low-income individuals;
``(6) an assurance that the State has, to avoid duplication
of such services, and to ensure that program gaps are
addressed, identified and coordinated with eligible entity
programs, with State and local agencies, and with programs that
assist low-income individuals and their families, including--
``(A) programs carried out under part A of title IV
of the Social Security Act (42 U.S.C. 601 et seq.), the
Workforce Investment Act of 1998 (29 U.S.C. 2801 et
seq.), and other programs designed to coordinate work-
related supportive services for families;
``(B) programs for expanding housing opportunities,
reducing homelessness, and developing community
investment projects;
``(C) education programs, including those for
preschool and school-aged children and for adults to
obtain an adequate education; and
``(D) programs designed to support youth, the
homeless, migrants, senior citizens, and individuals
with disabilities, including programs under the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C.
8621 et seq.);'';
(C) in paragraph (12)--
(i) by striking ``not later than fiscal
year 2001'' and inserting ``annually''; and
(ii) by striking ``and'' at the end;
(D) in paragraph (13), by striking the period and
inserting ``in sufficient detail to permit
verification; and''; and
(E) by adding at the end the following:
``(14) beginning with fiscal year 2006, and in each fiscal
year thereafter, an assurance that the State is using the
procedures described in section 678B(b) to monitor eligible
entities.''; and
(2) by striking subsection (f).
SEC. 107. DESIGNATION OF ELIGIBLE ENTITIES IN UNDERSERVED AREAS.
Section 676A(b) of the Community Services Block Grant Act (42
U.S.C. 9909(b)) is amended by adding at the end the following: ``In
granting such designation, the State shall deem private nonprofit
eligible entities that are providing related services in the unserved
area to be of demonstrated effectiveness, consistent with the needs
identified by a community needs assessment.''.
SEC. 108. TRIPARTITE BOARDS.
Section 676B(b) of the Community Services Block Grant Act (42
U.S.C. 9910(b)) is amended--
(1) by striking ``through--'' and all that follows through
``a tripartite'' in paragraph (1) and inserting ``through a
tripartite'';
(2) by striking paragraph (2);
(3) in subparagraph (C), by striking ``; or'' and inserting
a period; and
(4) by redesignating subparagraphs (A) through (C) as
paragraph (1) through (3), respectively and realigning the
margins of such paragraphs accordingly.
SEC. 109. TRAINING, TECHNICAL ASSISTANCE, AND OTHER ACTIVITIES.
Section 678A of the Community Services Block Grant Act (42 U.S.C.
9913) is amended--
(1) in subsection (a)(1)--
(A) in subparagraph (A), by striking ``corrective
action'' and all that follows through ``; and'' and
inserting ``monitoring and such additional corrective
actions as may be needed to strengthen the management
and programmatic practices of eligible entities;''; and
(B) by striking subparagraph (B) and inserting the
following:
``(B) for State and local performance reporting and
program data collection activities related to programs
carried out under this subtitle;
``(C) for the preparation of reports provided for
in section 678E;
``(D) for the development and promulgation of a
common State Financial and Organizational Protocol that
is required to be used by States under section 678B(b);
and
``(E) to distribute amounts in accordance with
subsection (c).'';
(2) in subsection (b)(2), by striking ``an ongoing
procedure for obtaining input from the national and State
networks of eligible entities'' and inserting ``a strategic
plan for annual technical assistance developed in consultation
with the national and State networks of eligible entities
regarding their management support needs''; and
(3) in subsection (c)(1), by striking ``management
information'' and all that follows through the period, and
inserting ``improving management information and reporting
systems, measuring of program results, ensuring responsiveness
to identified local needs, and reporting and disseminating
successful practices and initiatives.''.
SEC. 110. MONITORING.
Section 678B of the Community Services Block Grant Act (42 U.S.C.
9914) is amended--
(1) in the section heading by striking ``OF ELIGIBLE
ENTITIES'';
(2) in subsection (a)--
(A) by striking the subsection heading and
inserting ``Monitoring of Eligible Entities'';
(B) in paragraph (1)--
(i) by inserting ``biennial'' after
``onsite''; and
(ii) by striking ``at least once during
each 3 year period'';
(C) by striking paragraph (2);
(D) by redesignating paragraphs (3) and (4) as
paragraphs (2) and (3), respectively; and
(E) in paragraph (2) (as so redesignated), by
inserting ``annual'' after ``Followup'';
(3) by redesignating subsections (b) and (c) as subsection
(c) and (d), respectively;
(4) by inserting after subsection (a) the following:
``(b) Financial and Organizational Assessment Protocol.--Beginning
in fiscal year 2006, States shall implement a financial and
organizational assessment protocol to monitor and evaluate the
compliance of eligible entities with the financial and administrative
requirements of this section. Such protocol shall incorporate the
fiscal and organizational review procedures and standards appropriate
to the management of Federal funds under this subtitle and the
governance of the eligible private non-profit corporations or other
eligible entities. The Secretary shall require the protocol to be
developed jointly by the States and eligible entities and shall assist
States in developing appropriate training for personnel monitoring the
uses of funds under this subtitle according to the requirements of this
section.''; and
(5) in subsection (d), as so redesignated, by striking the
last sentence and inserting the following: ``The Secretary
shall annually submit a report including the results of the
evaluations conducted under this subtitle, the State
performance reports provided for pursuant to section
678E(a)(1)(C), and other material as provided by section
678E(b)(2) to the Committee on Education and the Workforce of
the House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate.''.
SEC. 111. CORRECTIVE ACTION; TERMINATION AND REDUCTION OF FUNDING.
Section 678C of the Community Services Block Grant Act (42 U.S.C.
9915) is amended--
(1) in subsection (a)--
(A) in paragraph (4), by striking ``and'' at the
end; and
(B) by striking paragraph (5) and inserting the
following:
``(5) if the eligible entity fails to correct the
deficiency, notify the entity--
``(A) that the State intends to initiate
proceedings to terminate the designation of the entity
as an eligible entity or to reduce, from the previous
year, the proportion of the total funding received by
the State under this subtitle that is allocated to the
eligible entity;
``(B) that the eligible entity has the right to a
hearing on the record to determine if there is cause
for such termination or reduction in funding, as
defined in section 676(c), and that the request for a
hearing must be made in writing to the State within 30
days of receipt of the notice from the State; and
``(C) of the legal basis for the proposed
termination or reduction in funding, the factual
findings on which the proposed termination or reduction
in funding is based or a reference to specific findings
in another document that form the basis for the
proposed termination or reduction in funding (such as a
reference to item numbers in an on-site review report
or instrument), and citation to any statutory
provisions, agreements, regulations, or State plan; and
``(6) if the eligible entity requests a hearing, conduct a
hearing on the record to determine if there is cause for
termination or a reduction in funding, as defined in section
676(c).'';
(2) in subsection (b)--
(A) by striking ``review such a determination'' and
inserting ``review and either approve, or disapprove
and reverse, such a determination'';
(B) by striking ``90 days'' each place that it
appears and inserting ``30 days''; and
(C) by striking ``90th day'' and inserting ``30th
day''; and
(3) in subsection (c), by adding at the end the following:
``The Secretary shall continue to fund an eligible entity, in
an amount equal to the same proportion of total funds received
by the State under this subtitle as was allocated to the
eligible entity the previous year, until the Secretary
approves, or disapproves and reverses, the determination of
termination or reduction in funding with respect to the
State.''.
SEC. 112. FISCAL CONTROLS, AUDITS, AND WITHHOLDING.
Section 678D of the Community Services Block Grant Act (42 U.S.C.
9916) is amended--
(1) in subsection (a)(1)--
(A) in subparagraph (C), by striking ``and'' at the
end;
(B) by redesignating subparagraph (D) as
subparagraph (F); and
(C) by inserting after subparagraph (C), the
following:
``(D) notwithstanding paragraph (2)(B), beginning
in fiscal year 2004, and not less than every 4 years
thereafter, each State shall submit to the Secretary a
separate audit of the funds appropriated under this
subtitle that--
``(i) shall apply only to--
``(I) State disbursement of funds
to eligible entities;
``(II) use of funds for State
administrative expenses; and
``(III) State disbursement of
assistance provided under section 680;
and
``(ii) shall be funded--
``(I) first, through the funds
available for administrative expenses
under section 675C(b)(2); and
``(II) second, from any funds
received by the State through
assistance provided under section 680;
and
``(E) submit full financial reports to the
Secretary not later than 6 months following the end of
each fiscal year; and''; and
(2) in subsection (b)(1), by adding at the end the
following: ``The Secretary, after providing adequate notice,
shall withhold administrative funds described in section
675C(b)(2) from any State that fails to comply with the
provisions of sections 678A through 678D(a), and may, after an
opportunity for a hearing conducted within the affected State,
withhold funds from the State and provide such funds directly
to the eligible entities in such State upon a demonstration of
the compliance by such entities with the requirements of this
subtitle.''
SEC. 113. ACCOUNTABILITY AND REPORTING REQUIREMENT.
Section 678E of the Community Services Block Grant Act (42 U.S.C.
9917) is amended to read as follows:
``SEC. 678E. ACCOUNTABILITY AND REPORTING REQUIREMENTS.
``(a) State Accountability and Reporting Requirements.--
``(1) Performance measurement of eligible entities.--
``(A) In general.--Each State that receives funds
under this subtitle shall participate, and shall ensure
that all eligible entities in the State participate, in
a performance measurement system, which may be a
performance measurement system for which the Secretary
facilitated development pursuant to subsection (b), or
an alternative system that the Secretary is satisfied
meets the requirements of subsection (b).
``(B) Local agencies.--The State may elect to have
local agencies that are subcontractors of the eligible
entities under this subtitle participate in the
performance measurement system. If the State makes that
election, references in this section to eligible
entities shall be considered to include the local
agencies.
``(C) Performance measurement of states.--Not later
than 1 year after the date of enactment of the Poverty
Reduction and Prevention Act, the Secretary shall
establish, in consultation with States and eligible
entities, performance standards for the State
administration of block grant funds. Such standards
shall include standards relating to--
``(i) the timeliness of the availability of
State plans for public comment as required
under section 676(a)(2)(B) and of submission of
such plans to the Secretary as required in
section 676(b);
``(ii) the utilization of the financial and
organizational assessment protocol established
under section 678B(b), including the training
and skills of State personnel responsible for
such oversight, the completion of annual
monitoring, the identification of opportunities
for improvement, and the implementation of
plans to enhance the management capacity and
infrastructure of eligible entities;
``(iii) the timeliness of the distribution
of block grants funds to eligible entities as
provided in section 675C(a);
``(iv) the resources made available for
management development at eligible entities,
including monitoring, training, and assistance
with financial management and program
information and assessment systems;
``(v) the results of State efforts to
coordinate eligible entity programs with other
State programs for low-income individuals and
their families, especially participants in the
program of block grants to States for temporary
assistance for needy families under part A of
title IV of the Social Security Act (42 U.S.C.
601 et seq.) and other working families, and to
ensure the participation of eligible entities
in the development of statewide strategies to
reduce poverty; and
``(vi) the assistance provided to eligible
entities in securing private partnerships as
required in section 676(b).
``(2) Annual report.--Each State shall annually prepare and
submit to the Secretary a report on the measured performance of
the State and the eligible entities in the State. The State
shall include in the report any information collected by the
State relating to such performance. Each State shall also
include in the report an accounting of the expenditure of funds
received by the State through the community services block
grant program, including an accounting of funds spent on
administrative costs by the State and the eligible entities,
funds spent by eligible entities on the direct delivery of
local services, and the achievement of national goals
established under the procedures described in this section, and
shall include information on the number of and characteristics
of clients served under this subtitle in the State, based on
data collected from the eligible entities. The State shall also
include in the report a summary describing the training and
technical assistance offered by the State under section
678C(a)(3) during the year covered by the report.
``(b) Local Entity Accountability and Reporting Requirements.--
``(1) Local entity determined goals.--In order to be
designated as an eligible entity and to receive a grant under
this subtitle, an entity shall establish entity-determined
goals for reducing poverty in the community, including goals
for--
``(A) leveraging community resources;
``(B) fostering coordination of Federal, State,
local, private, and other assistance; and
``(C) promoting community involvement.
``(2) Demonstration that goals were met.--In order to
receive a grant subsequent to the first grant that is provided
to an eligible entity following the date of enactment of the
Poverty Reduction and Prevention Act, the entity shall
demonstrate to the State that substantial progress has been
made in meeting the goals of the entity as described in
paragraph (1).
``(3) Goals or performance measures.--Any specific goals or
performance measures, for an individual eligible entity, that
are used in any monitoring or review process under this
subtitle, shall be--
``(A) determined by the entity;
``(B) agreed on by the State involved and the
entity, during the planning process leading to the
grant involved; and
``(C) incorporated into the grant agreement between
the State and entity for each subsequent award cycle.
``(4) Procedures.--If the State determines that a failure
to meet goals established under this subsection shall be a
basis for terminating the designation or reducing the funds of
an eligible entity under this subtitle, and determines that an
eligible entity has failed to meet the goals, the procedures
set forth in section 678C shall apply.
``(c) Secretary's Accountability and Reporting Requirements.--
``(1) Federal performance measurement.--The Secretary shall
establish goals for the Department of Health and Human Services
Office of Community Services with respect to--
``(A) the timeliness of the distribution of funds
under this subtitle, including funds for training and
technical assistance;
``(B) the monitoring of States as provided for in
section 678D;
``(C) the coordination of other Office of Community
Service programs with the activities of States and
eligible entities under this subtitle; and
``(D) the full and timely reporting as required in
this section.
``(2) Local performance measurement.--
``(A) In general.--To the maximum extent
practicable, the Secretary shall coordinate reporting
requirements for all programs of the Department of
Health and Human Services that are managed by eligible
entities so as to consolidate and reduce the number of
reports required relating to individuals, families, and
uses of grant funds, specifically funds under the Head
Start Act (42 U.S.C. 9831 et seq.), the Low-Income Home
Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.),
child care programs administered by the Department, and
health related service programs administered by the
Department.
``(B) Technical assistance.--The Secretary shall
provide technical assistance, including support for the
enhancement of electronic data systems, to States and
to eligible entities to enhance their capability to
collect and report data for such a system and to aid in
their participation in such a system.
``(C) Local entity performance measurement
system.--The Secretary shall assist in the
implementation of a local entity performance
measurement system, and other voluntary programmatic
and results reporting systems, developed by States,
eligible entities, and their national associations
acting together. The Secretary and the developers of
such systems shall ensure that the set of measures are
numerous enough to cover the full range of services
offered by all local eligible entities. Under such a
system, local eligible entities shall only be compelled
to collect data on the subset of performance measures
that reflect their community-specific programs and
services currently adopted. Eligible entities shall not
be required under this subparagraph to alter the
collection of data for any reports provided for other
programs within the Department of Health and Human
Services or other Federal agencies. States shall
compile annual Results Oriented Management and
Accountability System reports for the Secretary under
this subparagraph.
``(3) Reporting requirements.--For each fiscal year the
Secretary shall, directly or by grant or contract, prepare a
report containing--
``(A) a summary of the planned use of funds by each
State, and the eligible entities in the State, under
the community services block grant program, as
contained in each State plan submitted pursuant to
section 676;
``(B) a description of how funds were actually
spent by the State and eligible entities in the State,
including a breakdown of funds spent on administrative
costs and on the direct delivery of local programs by
eligible entities;
``(C) information on the number of entities
eligible for funds under this subtitle, the number of
low-income persons served under this subtitle, and such
demographic data on the low-income populations served
by eligible entities as is determined by the Secretary
to be feasible;
``(D) a comparison of the planned uses of funds for
each State and the actual uses of the funds;
``(E) a summary of each State's performance
results, and the results for the eligible entities, as
collected and submitted by the States in accordance
with subsection (a)(2); and
``(F) any additional information that the Secretary
considers to be appropriate to carry out this subtitle,
if the Secretary informs the States of the need for
such additional information and allows a reasonable
period of time for the States to collect and provide
the information.
``(4) Submission.--The Secretary shall submit to the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education, Labor,
and Pensions of the Senate the report described in paragraph
(2), and any comments the Secretary may have with respect to
such report. The report shall include definitions of direct and
administrative costs used by the Department of Health and Human
Services for programs funded under this subtitle.
``(5) Costs.--Of the funds reserved under section
674(b)(3), not more than $500,000 shall be available to carry
out the reporting requirements contained in paragraph (3).''.
SEC. 114. LIMITATIONS ON USE OF FUNDS.
Section 678F(c)(1) of the Community Services Block Grant Act (42
U.S.C. 9918(c)(1)) is amended by inserting ``religion,'' after
``race,''.
SEC. 115. OPERATIONAL RULE.
Section 679(a) of the Community Services Block Grant Act (42 U.S.C.
9920(a)) is amended by inserting ``and such organization meets the
requirements of this subtitle'' before the first period.
SEC. 116. DISCRETIONARY AUTHORITY OF THE SECRETARY.
Section 680 of the Community Services Block Grant Act (42 U.S.C.
9921) is amended--
(1) in subsection (a)--
(A) in paragraph (2)--
(i) by redesignating subparagraphs (B)
through (E) as subparagraph (D) through (G),
respectively;
(ii) by striking subparagraph (A) and
inserting the following:
``(A) Economic development activities.--The
Secretary shall make grants described in paragraph (1)
on a competitive basis to private, nonprofit
organizations that are community development
corporations to provide technical and financial
assistance for economic development activities,
including business, economic, and community development
projects, designed to address the economic needs of
low-income individuals and families by creating
employment and business development opportunities. Such
assistance shall include--
``(i) long-term loans (up to 15 years) or
investments for private business enterprises;
``(ii) providing capital to businesses
owned by community development corporations;
and
``(iii) marketing and management assistance
for businesses providing jobs and business
opportunities to low-income individuals.
``(B) Federal interest.--
``(i) In general.--The Secretary shall
establish procedures that permit an eligible
entity who receives funds under a grant to
carry out this paragraph, or intangible assets
acquired with such funds, to become the sole
owner of the funds or assets before the end of
the 12-year period beginning at the end of the
fiscal year for which the grant is made.
``(ii) Conditions.--To be eligible to
become the sole owner, the eligible entity
shall agree--
``(I) to use the funds or assets
for the purposes and uses for which the
grant was made, or purposes and uses
consistent with this subtitle, during
and after the 12-year period described
in clause (i), whether or not the
eligible entity continues to be
supported by Federal funds; and
``(II) that, when the eligible
entity no longer needs the funds or
assets for purposes and uses described
in subclause (I), the eligible entity
shall request instructions from the
Secretary about the disposition of the
funds or assets.
``(iii) Encumbering.--The eligible entity
may not encumber the assets without the
approval of the Secretary.
``(C) Administrative requirements.--In a case in
which an eligible project under grant made under this
section cannot, for good cause, be implemented, the
Secretary shall establish a policy to permit the
substitution of other eligible projects. Such policy
shall require that such project have the same impact
area, the same goals, and the same objectives as the
original project and outcomes that are substantially
the same as the original project.'';
(iii) in subparagraph (E) (as so
redesignated), by striking ``the community''
and inserting ``the service area''; and
(iv) in subparagraph (G) (as so
redesignated), by striking ``1 percent'' and
inserting ``2 percent'';
(B) in paragraph (3)(B), by striking ``community''
and inserting ``water and waste water''; and
(C) in paragraph (4), by striking ``individuals and
families'' and inserting ``individuals and their
families''; and
(2) in subsection (c), by striking ``Labor and Human
Resources'' and inserting ``Health, Education, Labor, and
Pensions''.
SEC. 117. COMMUNITY FOOD AND NUTRITION PROGRAMS.
Section 681 of the Community Services Block Grant Act (42 U.S.C.
9922) is amended--
(1) in subsection (c), by striking ``Labor and Human
Resources'' and inserting ``Health, Education, Labor, and
Pensions''; and
(2) in subsection (d), by striking ``1999 through 2003''
and inserting ``2004 through 2009''.
SEC. 118. NATIONAL OR REGIONAL PROGRAMS DESIGNED TO PROVIDE
INSTRUCTIONAL ACTIVITIES FOR LOW-INCOME YOUTH.
Section 682 of the Community Services Block Grant Act (42 U.S.C.
9923) is amended--
(1) in subsection (b)(2), by striking ``or treatment''; and
(2) in subsection (g), by striking ``$15,000,000 for each
of fiscal years 1999 through 2003'' and inserting ``$18,000,000
for each of fiscal years 2004 through 2009''.
TITLE II--LOW-INCOME HOME ENERGY ASSISTANCE
SEC. 201. SHORT TITLE.
This title may be cited as the ``Low-Income Home Energy Assistance
Amendments of 2004''.
SEC. 202. REAUTHORIZATION.
(a) In General.--Section 2602(b) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended in the first
sentence by striking ``such sums'' and all that follows through the
period and inserting ``and $3,400,000,000 for each of fiscal years 2004
through 2006, and such sums as may be necessary for each of fiscal
years 2007 through 2010.''.
(b) Program Year.--Section 2602(c) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621(c)) is amended by inserting
``authorized'' after ``programs and activities''.
(c) Incentive Program for Leveraging Non-Federal Resources.--
Section 2602(d) of the Low-Income Home Energy Assistance Act of 1981
(42 U.S.C. 8621(d)) is amended--
(1) in paragraph (1), by striking ``1999 through 2004'' and
inserting ``2004 through 2010''; and
(2) in paragraph (2), by striking ``1999 through 2004'' and
inserting ``2004 through 2010''.
SEC. 203. NATURAL DISASTERS AND OTHER EMERGENCIES.
Section 2604(e) of the Low-Income Home Energy Assistance Act of
1981 (42 U.S.C. 8623(e)) is amended by adding at the end the following:
``Notwithstanding any other provision of this section, for purposes of
making determinations under section 2603(1)(C), if the Secretary
determines that there is an increase of at least 20 percent in the cost
of home energy over the previous 5-year average for a duration of a
month or more in 1 or more States or regions, the Secretary shall
declare an energy emergency in the affected area and shall make
available funds as provided in this subsection. Notwithstanding any
other provision of this section, for purposes of making such
determinations, if the Secretary determines that the number of heating
degree days or cooling days for a month was more than 100 above the 30-
year average in 1 or more States or regions, the Secretary shall
declare an energy emergency in the affected area and shall make
available funds as provided in this subsection.''.
SEC. 204. RESIDENTIAL ENERGY ASSISTANCE CHALLENGE OPTION.
(a) Evaluation.--The Comptroller General of the United States shall
conduct an evaluation of the Residential Energy Assistance Challenge
program described in section 2607B of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8626b).
(b) Report.--Not later than 2 years after the date of enactment of
this Act, the Comptroller General of the United States shall prepare
and submit to the Committee on Education and the Workforce of the House
of Representatives and the Committee on Health, Education, Labor, and
Pensions of the Senate a report containing--
(1) the findings resulting from the evaluation described in
subsection (a); and
(2) the State evaluations described in paragraphs (1) and
(2) of section 2607B(b) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8626b(b)).
SEC. 205. REPORT TO CONGRESS.
(a) Study.--
(1) In general.--The Secretary of Health and Human Services
shall conduct a study on the Low-Income Home Energy Assistance
Act of 1981 (42 U.S.C. 8621 et seq.)
(2) Requirements.--In conducting the study under
subparagraph (A), the Secretary of Health and Human Services
shall--
(A) evaluate the performance of the Low-Income Home
Energy Assistance Program, including who the program is
serving, the benefits of the program to recipients, and
the ability of the program to reduce utility arrearage
and shut-offs among low-income households;
(B) develop a protocol for States to collect
information from energy distribution companies,
including electric, natural gas, heating oil, and
propane companies, concerning the following residential
customer statistics--
(i) the number of accounts certified as
eligible for energy assistance;
(ii) the number of accounts certified as
eligible for energy assistance and that are
past due;
(iii) the total revenue owed on accounts
eligible for energy assistance and that are
past due;
(iv) the number of disconnection notices
issued on accounts eligible for energy
assistance;
(v) the number of disconnections for
nonpayment;
(vi) the number of reconnections;
(vii) the number of accounts eligible for
energy assistance and determined uncollectible;
and
(viii) the energy burden of accounts
eligible for energy assistance;
(C) analyze the public health and safety threats of
hypothermia and hyperthermia due to a lack of home
heating or home cooling, including mortality,
morbidity, and decrease in caloric intake;
(D) analyze the affect of the standard of housing
and housing age on energy costs to low-income
households;
(E) evaluate regional difference in cost-of-living
and the ability of low-income families to meet home
energy requirements; and
(F) determine the programmatic impacts of using 60
percent of State median income to determine low-income
households.
(b) Report.--Not later than 24 months after the date of enactment
of this Act, the Secretary of Health and Human Services shall submit to
Congress a report containing the results of the study conducted under
subsection (a).
(c) Definition.--In this section, the term ``State'' means each of
the 50 States and the District of Columbia.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this subsection such sums as may be necessary
for each of fiscal years 2004 and 2005.
(e) Contracts.--Using amounts appropriated under subsection (d),
the Secretary of Health and Human Services may enter into contracts or
jointly financed cooperative agreements or interagency agreements with
States and public agencies and private nonprofit organizations to
conduct the study under subsection (a).
TITLE III--ASSETS FOR INDEPENDENCE REAUTHORIZATION ACT
SEC. 301. SHORT TITLE.
This title may be cited as the ``Assets for Independence
Reauthorization Act''.
SEC. 302. REAUTHORIZATION OF THE ASSETS FOR INDEPENDENCE ACT.
(a) Definition of Qualified Expenses.--Section 404(8) of the Assets
for Independence Act (42 U.S.C. 604 note) is amended--
(1) in subparagraph (A)--
(A) in the matter preceding clause (i), by
inserting ``or to a vendor following approval by a
qualified entity upon submission of an approved
qualified education purchase plan'' before the period;
and
(B) by adding at the end the following:
``(iii) Qualified education purchase
plan.--The term `qualified education purchase
plan' means a document that explains the
education item to be purchased which--
``(I) is approved by a qualified
entity; and
``(II) includes a description of
the good to be purchased.'';
(2) in subparagraph (D), by striking ``eligible''; and
(3) by adding at the end the following:
``(E) Saving in idas for dependents.--Amounts paid
to an individual development account established for
the benefit of a dependent (as such terms is defined
for purposes of subparagraph (D)(ii)) of an eligible
individual for the purpose of postsecondary
education.''.
(b) Repeal of Provision.--Section 405 of the Assets for
Independence Act (42 U.S.C. 604 note) is amended by striking subsection
(g).
(c) Reserve Fund.--Section 407 of the Assets for Independence Act
(42 U.S.C. 604 note) is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) by redesignating subparagraphs (A) and
(B) as subparagraphs (B) and (C), respectively;
and
(ii) by inserting before subparagraph (B)
(as so redesignated) the following:
``(A) all grant funds provided to the qualified
entity from the Secretary for the purpose of the
demonstration project as described under subsection
(c)(1);'' and
(B) by adding at the end the following:
``(3) Rule of construction.--Nothing in paragraph (1)(A)
shall be construed to preclude a qualified entity from
depositing other demonstration project funds into the Reserve
Fund.''; and
(2) in subsection (d), by inserting ``the date that is 12
months after'' after ``upon''.
(d) Use of Amounts.--Section 407(c) of the Assets for Independence
Act (42 U.S.C. 604 note) is amended by adding at the end the following:
``(4) Use of nonfederal funds.--
``(A) In general.--Notwithstanding paragraph (3),
not more than 20 percent of the amount of non-Federal
funds committed to a project as matching contributions
in accordance with the application submitted by the
qualified entity under section 405(c)(4) shall be used
by the qualified entity for the purposes described in
subparagraphs (A), (C), and (D) of paragraph (1).
``(B) Priority.--In awarding grants under section
406(b), the Secretary shall give priority to qualified
entities that submit applications that, with respect to
the commitment of non-Federal funds under section
405(c)(4), provide assurances that not to exceed 15
percent of such non-Federal funds will be used by the
qualified entity for the purposes described in
subparagraphs (A), (C), and (D) of paragraph (1).''.
(e) Eligibility for Participation.--Section 408(a)(1) of the Assets
for Independence Act (42 U.S.C. 604 note) is amended to read as
follows:
``(1) Income test.--The--
``(A) gross income of the household is equal to or
less than--
``(i) 200 percent of the poverty line (as
determined by the Secretary of Health and Human
Services);
``(ii) the earned income amount described
in section 32 of the Internal Revenue Code of
1986 (taking into account the size of the
household); or
``(iii) 80 percent of the Area Median
Income (as determined by the Department of
Housing and Urban Development); or
``(B) the modified adjusted gross income of the
household for the previous year does not exceed $18,000
for an individual filer, $30,000 for a head of
household, or $38,000 for a joint filer.''.
(f) Deposits by Qualified Entities.--Section 410 of the Assets for
Independence Act (42 U.S.C. 604 note) is amended--
(1) in subsection (a), by striking ``qualified entity--''
and all that follows through the end and inserting the
following: ``qualified entity, a matching contribution of not
less than $0.50 and not more than $4 for every $1 of earned
income (as defined in section 911(d)(2) of Internal Revenue
Code of 1986) deposited in the account and interest earned on
that account by a project participant during that period.
Matching contributions shall be made--
``(1) from the non-Federal funds described in section
405(c)(4); and
``(2) from the grant made under section 406(b);
based on a ratio relating to the sources of funds described in
paragraph (1) and (2) as determined by the qualified entity, consistent
with the requirements of section 407(c).'';
(2) by redesignating subsections (b) through (e) as
subsections (c) through (f), respectively; and
(3) by inserting after subsection (a), the following:
``(b) Use of Excess Interest on Matching Funds Earned on the
Reserve Fund.--Interest that accrues on the matching funds earned and
held in the Reserve Fund, over and above the interest required to match
an individual's deposits and interest earned in the individual
development account, shall be used by the qualified entity to fund
existing individual development accounts or additional individual
development accounts.''.
(g) Authorization of Appropriations.--Section 416 of the Assets for
Independence Act (42 U.S.C. 604 note) is amended by striking ``and
2003,'' and inserting ``and 2003, $25,000,000 for fiscal year 2004, and
such sums as may be necessary for each of fiscal years 2005 through
2008,''.
(h) Application of Amendments.--In administering the Assets for
Independence Act (42 U.S.C. 604 note), the Secretary of Health and
Human Services shall apply--
(1) the amendments made by the Assets for Independence Act
Amendments of 2000 to individuals who were individual
development account holders, and to entities that received
grants, under the Assets for Independence Act either before or
after the date of enactment of the Assets for Independence Act
Amendments of 2000; and
(2) the amendments made by this section to individuals who
were individual development account holders, and to entities
that received grants, under the Assets for Independence Act
either before or after the date of enactment of this Act.
Passed the Senate February 12, 2004.
Attest:
EMILY J. REYNOLDS,
Secretary.