[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4271 Reported in House (RH)]





                                                 Union Calendar No. 388

105th CONGRESS

  2d Session

                               H. R. 4271

                          [Report No. 105-686]

_______________________________________________________________________

                                 A BILL

To amend the Community Services Block Grant Act to reauthorize and make 
                       improvements to that Act.

_______________________________________________________________________

                             August 7, 1998

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed





                                                 Union Calendar No. 388
105th CONGRESS
  2d Session
                                H. R. 4271

                          [Report No. 105-686]

To amend the Community Services Block Grant Act to reauthorize and make 
                       improvements to that Act.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 17, 1998

  Mr. Riggs (for himself, Mr. Goodling, Mr. Barrett of Nebraska, Mr. 
 Greenwood, and Mr. Peterson of Pennsylvania) introduced the following 
    bill; which was referred to the Committee on Education and the 
                               Workforce

                             August 7, 1998

                     Additional sponsor: Mr. Souder

                             August 7, 1998

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on July 
                               17, 1998]

_______________________________________________________________________

                                 A BILL


 
To amend the Community Services Block Grant Act to reauthorize and make 
                       improvements to that Act.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

     TITLE I--AMENDMENTS TO THE COMMUNITY SERVICES BLOCK GRANT ACT

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Community Services Authorization 
Act of 1998''.

SEC. 102. REAUTHORIZATION.

    The heading for subtitle B, and sections 671 through 680, of the 
Community Services Block Grant Act (42 U.S.C. 9901-9909) are amended to 
read as follows:

          ``Subtitle B--Community Services Block Grant Program

``SEC. 671. SHORT TITLE.

    ``This subtitle may be cited as the `Community Services Block Grant 
Act'.

``SEC. 672. PURPOSES AND GOALS.

    ``The purpose of this subtitle is to provide assistance to States 
and local communities, working through a network of community action 
agencies and other neighborhood-based organizations, for the reduction 
of poverty, the revitalization of low-income communities, and the 
empowerment of low-income families and individuals in rural and urban 
areas to become fully self-sufficient (particularly 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.)). Such 
goals may be accomplished through--
            ``(1) the strengthening of community capabilities for 
        planning, coordinating, and utilizing a broad range of Federal, 
        State, local, and private resources for the elimination of 
        poverty, and for helping individuals and families achieve self-
        sufficiency;
            ``(2) greater use of innovative and effective, community-
        based approaches to attacking the causes and effects of poverty 
        and of community breakdown;
            ``(3) the maximum participation of residents of the low-
        income communities and members of the groups served by programs 
        assisted through the block grant to empower such individuals to 
        respond to the unique problems and needs within their 
        communities; and
            ``(4) the broadening of the resource base of programs 
        directed to the elimination of poverty so as to secure a more 
        active role for private, faith-based, charitable, and 
        neighborhood organizations in the provision of services as well 
        as individual citizens, business, labor, and professional 
        groups who are able to influence the quantity and quality of 
        opportunities and services for the poor.

``SEC. 673. DEFINITIONS.

    ``In this subtitle:
            ``(1) Eligible entity.--The term `eligible entity' means an 
        entity--
                    ``(A) that is an eligible entity described in 
                section 673(1) (as in effect on the day before the date 
                of enactment of the Human Services Reauthorization Act 
                of 1998) as of such date of enactment or is designated 
                by the process described in section 676A (including an 
                organization serving migrant or seasonal farmworkers 
                that is so described or designated); and
                    ``(B) that has a tripartite board or other 
                mechanism described in subsection (a) or (b), as 
                appropriate, of section 676B.
            ``(2) Poverty line.--The term `poverty line' means the 
        official poverty line defined by the Office of Management and 
        Budget based on the most recent data available from the Bureau 
        of the Census. The Secretary shall revise the poverty line 
        annually (or at any shorter interval the Secretary determines 
        to be feasible and desirable) which shall be used as a 
        criterion of eligibility in the community services block grant 
        program established under this subtitle. The required revision 
        shall be accomplished by multiplying the official poverty line 
        by the percentage change in the Consumer Price Index for All 
        Urban Consumers during the annual or other interval immediately 
        preceding the time at which the revision is made. Whenever a 
        State determines that it serves the objectives of the block 
        grant program established under this subtitle, the State may 
        revise the poverty line to not to exceed 125 percent of the 
        official poverty line otherwise applicable under this 
        paragraph.
            ``(3) Private, nonprofit organization.--The term `private, 
        nonprofit organization' includes a faith-based organization, to 
        which the provisions of section 679 shall apply.
            ``(4) Secretary.--The term `Secretary' means the Secretary 
        of Health and Human Services.
            ``(5) State.--The term `State' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, Guam, the United States Virgin Islands, American Samoa, 
        and the Commonwealth of the Northern Mariana Islands, but for 
        fiscal years ending before October 1, 2001, includes the 
        Federated States of Micronesia, the Republic of the Marshall 
        Islands, and Palau.

``SEC. 674. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated 
$535,000,000 for fiscal year 1999 and such sums as may be necessary for 
each of fiscal years 2000 through 2003 to carry out the provisions of 
this subtitle (other than sections 681 and 682).
    ``(b) Reservations.--Of the amounts appropriated under subsection 
(a) for each fiscal year, the Secretary shall reserve--
            ``(1) \1/2\ of 1 percent for carrying out section 675A 
        (relating to payments for territories);
            ``(2) 1\1/2\ percent for activities authorized in sections 
        678A through 678F, of which--
                    ``(A) not less than \1/2\ of the amount reserved by 
                the Secretary under this paragraph shall be distributed 
                directly to local eligible entities or to statewide 
                organizations whose membership is composed of eligible 
                entities, as required under section 678A(c) for the 
                purpose of carrying out activities described in section 
                678A; and
                    ``(B) \1/2\ of the remainder of the amount reserved 
                by the Secretary under this paragraph shall be used to 
                carry out monitoring, evaluation, and corrective 
                activities described in sections 678B(c) and 678A; and
            ``(3) not more than 9 percent for carrying out section 680 
        (relating to discretionary activities).

``SEC. 675. ESTABLISHMENT OF BLOCK GRANT PROGRAM.

    ``The Secretary is authorized to establish a community services 
block grant program and make grants through the program to States to 
ameliorate the causes of poverty in communities within the States.

``SEC. 675A. DISTRIBUTION TO TERRITORIES.

    ``(a) Apportionment.--The Secretary shall apportion the amount 
reserved under section 674(b)(1)--
            ``(1) for each fiscal year on the basis of need among Guam, 
        American Samoa, the United States Virgin Islands, and the 
        Commonwealth of the Northern Mariana Islands; and
            ``(2) for fiscal years ending before October 1, 2001, and 
        subject to subsection (c), on the basis of need among the 
        Federated States of Micronesia, the Republic of the Marshall 
        Islands, and Palau.
    ``(b) Application.--Each jurisdiction to which subsection (a) 
applies may receive a grant under this subtitle for the amount 
apportioned under subsection (a) on submitting to the Secretary, and 
obtaining approval of, an application containing provisions that 
describe the programs for which assistance is sought under this 
subtitle, and that are consistent with the requirements of section 676.
    ``(c) Limitation.--(1) Funds apportioned under subsection (a) for 
the Federated States of Micronesia, the Republic of the Marshall 
Islands, and Palau shall be used by the Secretary to make grants on a 
competitive basis, pursuant to recommendations submitted to the 
Secretary by the Pacific Region Educational Laboratory of the 
Department of Education, to the Federated States of Micronesia, the 
Republic of the Marshall Islands, Palau, Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands, for the purpose of 
carrying out programs in accordance with this subtitle.
    ``(2) Not more than 5 percent of such funds may be used by the 
Secretary to compensate the Pacific Region Educational Laboratory of 
the Department of Education for administrative costs incurred in 
connection with making recommendations under paragraph (1).
    ``(3) Notwithstanding any other provision of law, the Federated 
States of Micronesia, the Republic of the Marshall Islands, and Palau 
shall not receive any funds under this subtitle for any fiscal year 
that begins after September 30, 2001.

``SEC. 675B. ALLOTMENTS AND PAYMENTS TO STATES.

    ``(a) Allotments in General.--The Secretary shall, from the amount 
appropriated under section 674(a) for each fiscal year that remains 
after the Secretary makes the reservations required in section 674(b), 
allot to each State, subject to section 677, an amount that bears the 
same ratio to such remaining amount as the amount received by the State 
for fiscal year 1981 under section 221 of the Economic Opportunity Act 
of 1964 bore to the total amount received by all States for fiscal year 
1981 under such section, except that no State shall receive less than 
\1/4\ of 1 percent of the amount appropriated under section 674(a) for 
such fiscal year.
    ``(b) Allotments in Years With Greater Available Funds.--
            ``(1) Minimum allotments.--Subject to paragraphs (2) and 
        (3), if the amount appropriated under section 674(a) for a 
        fiscal year that remains after the Secretary makes the 
        reservations required in section 674(b) exceeds $345,000,000, 
        the Secretary shall allot to each State not less than \1/2\ of 
        1 percent of the amount appropriated under section 674(a) for 
        such fiscal year.
            ``(2) Maintenance of fiscal year 1990 levels.--Paragraph 
        (1) shall not apply with respect to a fiscal year if the amount 
        allotted under subsection (a) to any State for that year is 
        less than the amount allotted under subsection (a) to such 
        State for fiscal year 1990.
            ``(3) Maximum allotments.--The amount allotted under 
        paragraph (1) to a State shall be reduced for a fiscal year, if 
        necessary, so that the aggregate amount allotted to such State 
        under such paragraph and subsection (a) does not exceed 140 
        percent of the aggregate amount allotted to such State under 
        the corresponding provisions of this subtitle for the fiscal 
        year preceding the fiscal year for which a determination is 
        made under this subsection.
    ``(c) Allotment of Additional Funds.--Notwithstanding subsections 
(a) and (b), in any fiscal year in which the amount appropriated under 
section 674(a) exceeds the amount appropriated under such section for 
fiscal year 1999, such excess shall be allotted among the States 
proportionately based on--
            ``(1) the number of public assistance recipients in the 
        respective States;
            ``(2) the number of unemployed individuals in the 
        respective States; and
            ``(3) the number of individuals with incomes below the 
        poverty line in the respective States.
    ``(d) Payments.--The Secretary shall make payments to eligible 
States from the allotments made under this section. The Secretary shall 
make payments for the grants in accordance with section 6503(a) of 
title 31, United States Code.
    ``(e) Definition.--For purposes of this section, the term `State' 
does not include Guam, American Samoa, the United States Virgin 
Islands, and the Commonwealth of the Northern Mariana Islands.

``SEC. 675C. USES OF FUNDS.

    ``(a) Grants to Local Eligible Entities and Other Organizations.--
            ``(1) In general.--Not less than 90 percent of the funds 
        allotted to a State under section 675B shall be used by the 
        State to make grants for the purposes described in section 672 
        to eligible entities.
            ``(2) Obligational authority.--Funds distributed to 
        eligible entities through grants made in accordance with 
        paragraph (1) for a fiscal year shall be available for 
        obligation during that fiscal year and the succeeding fiscal 
        year, in accordance with paragraph (3).
            ``(3) Recapture and redistribution of unobligated funds.--
                    ``(A) Amount.--Beginning on October 1, 2000, a 
                State may recapture and redistribute funds distributed 
                to an eligible entity through a grant made under 
                paragraph (1) that are unobligated at the end of a 
                fiscal year if such unobligated funds exceed 20 percent 
                of the amount so distributed to such eligible entity 
                for such fiscal year.
                    ``(B) Redistribution.--In redistributing funds 
                recaptured in accordance with this paragraph, States 
                shall redistribute such funds to an eligible entity, or 
                require the original recipient of the funds to 
                redistribute the funds to a private, nonprofit 
                organization, located within the community served by 
                the original recipient of the funds, for activities 
                consistent with the purposes of this subtitle.
    ``(b) Statewide Activities.--
            ``(1) Use of remainder.--If a State uses less than 100 
        percent of the State allotment to make grants under subsection 
        (a), the State shall use the remainder of the allotment 
        (subject to paragraph (2)) for--
                    ``(A) providing training and technical assistance 
                to those entities in need of such training and 
                assistance;
                    ``(B) coordinating State-operated programs and 
                services targeted to low-income children and families 
                with services provided by eligible entities and other 
                organizations funded under this subtitle, including 
                detailing appropriate employees of State or local 
                agencies to entities funded under this subtitle, to 
                ensure increased access to services provided by such 
                State or local agencies;
                    ``(C) supporting statewide coordination and 
                communication among eligible entities;
                    ``(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 asset-building programs for low-
                income individuals, such as programs supporting 
                individual development accounts;
                    ``(F) supporting innovative programs and activities 
                conducted by community action agencies or other 
                neighborhood-based organizations to eliminate poverty, 
                promote self-sufficiency, and promote community 
                revitalization;
                    ``(G) supporting other activities, consistent with 
                the purposes of this subtitle; and
                    ``(H) State charity tax credits as described in 
                subsection (c).
            ``(2) Administrative cap.--No State may spend more than the 
        greater of $55,000, or 5 percent, of the State's allotment 
        received under section 675B for administrative expenses, 
        including monitoring activities. Funds to be spent for such 
        expenses shall be taken from the portion of the State allotment 
        that remains after the State makes grants to eligible entities 
        under subsection (a). The cost of activities conducted under 
        paragraph (1)(A) shall not be considered to be administrative 
        expenses.
    ``(c)(1) Notwithstanding any other provision of law and subject to 
paragraph (2), if there is in effect under State law a charity tax 
credit, then the State may use for any purpose the amount of the 
allotment that is not expended under subsections (a) and (b).
    ``(2) The aggregate amount a State may use under paragraph (1) 
during a fiscal year shall not exceed 100 percent of the revenue loss 
of the State during the fiscal year that is attributable to the charity 
tax credit, as determined by the Secretary of the Treasury without 
regard to any such revenue loss occurring before January 1, 1999.
    ``(3) For purposes of this subsection:
            ``(A) Charity tax credit.--The term `charity tax credit' 
        means a nonrefundable credit against State income tax (or, in 
        the case of a State which does not impose an income tax, a 
        comparable benefit) which is allowable for contributions, in 
        cash or in kind, to qualified charities.
            ``(B) Qualified charity.--
                    ``(i) In general.--The term `qualified charity' 
                means any organization--
                            ``(I) which is--
                                    ``(aa) described in section 
                                501(c)(3) of the Internal Revenue Code 
                                of 1986 and exempt from tax under 
                                section 501(a) of such Code;
                                    ``(bb) a community action agency as 
                                defined in the Economic Opportunity Act 
                                of 1964; or
                                    ``(cc) a public housing agency as 
                                defined in section 3(b)(6) of the 
                                United States Housing Act of 1937 (42 
                                U.S.C. 1437A(b)(6));
                            ``(II) which is certified by the 
                        appropriate State authority as meeting the 
                        requirements of clauses (iii) and (iv); and
                            ``(III) if such organization is otherwise 
                        required to file a return under section 6033 of 
                        such Code, which elects to treat the 
                        information required to be furnished by clause 
                        (v) as being specified in section 6033(b) of 
                        such Code.
                    ``(ii) Certain contributions to collection 
                organizations treated as contributions to qualified 
                charity.--
                            ``(I) In general.--A contribution to a 
                        collection organization shall be treated as a 
                        contribution to a qualified charity if the 
                        donor designates in writing that the 
                        contribution is for the qualified charity.
                            ``(II) Collection organization.--The term 
                        `collection organization' means an organization 
                        described in section 501(c)(3) of such Code and 
                        exempt from tax under section 501(a) of such 
                        Code--
                                    ``(aa) which solicits and collects 
                                gifts and grants which, by agreement, 
                                are distributed to qualified charities 
                                described in clause (i);
                                    ``(bb) which distributes to 
                                qualified charities described in clause 
                                (i) at least 90 percent of the gifts 
                                and grants it receives that are 
                                designated for such qualified 
                                charities; and
                                    ``(cc) which meets the requirements 
                                of clause (vi).
                    ``(iii) Charity must primarily assist poor 
                individuals.--
                            ``(I) In general.--An organization meets 
                        the requirements of this clause only if the 
                        appropriate State authority reasonably expects 
                        that the predominant activity of such 
                        organization will be the provision of direct 
                        services within the United States to 
                        individuals and families whose annual incomes 
                        generally do not exceed 185 percent of the 
                        official poverty line (as defined by the Office 
                        of Management and Budget) in order to prevent 
                        or alleviate poverty among such individuals and 
                        families.
                            ``(II) No recordkeeping in certain cases.--
                        An organization shall not be required to 
                        establish or maintain records with respect to 
                        the incomes of individuals and families for 
                        purposes of subclause (I) if such individuals 
                        or families are members of groups which are 
                        generally recognized as including substantially 
                        only individuals and families described in 
                        subclause (I).
                            ``(III) Food aid and homeless shelters.--
                        Except as otherwise provided by the appropriate 
                        State authority, for purposes of subclause (I), 
                        services to individuals in the form of--
                                    ``(aa) donations of food or meals; 
                                or
                                    ``(bb) temporary shelter to 
                                homeless individuals;
                        shall be treated as provided to individuals 
                        described in subclause (I) if the location and 
                        operation of such services are such that the 
                        service provider may reasonably conclude that 
                        the beneficiaries of such services are 
                        predominantly individuals described in 
                        subclause (I).
                    ``(iv) Minimum expense requirement.--
                            ``(I) In general.--An organization meets 
                        the requirements of this clause only if the 
                        appropriate State authority reasonably expects 
                        that the annual poverty program expenses of 
                        such organization will not be less than 75 
                        percent of the annual aggregate expenses of 
                        such organization.
                            ``(II) Poverty program expense.--For 
                        purposes of subclause (I)--
                                    ``(aa) In general.--The term 
                                `poverty program expense' means any 
                                expense in providing program services 
                                referred to in clause (iii).
                                    ``(bb) Exceptions.--Such term shall 
                                not include any management or general 
                                expense, any expense for the purpose of 
                                influencing legislation (as defined in 
                                section 4911(d) of the Internal Revenue 
                                Code of 1986), any expense for the 
                                purpose of fundraising, any expense for 
                                a legal service provided on behalf of 
                                any individual referred to in clause 
                                (iii), any expense for providing 
                                tuition assistance relating to 
                                compulsory school attendance, and any 
                                expense which consists of a payment to 
                                an affiliate of the organization.
                    ``(v) Reporting requirement.--The information 
                required to be furnished under this clause is--
                            ``(i) the percentages determined by 
                        dividing the following categories of the 
                        organization's expenses for the year by its 
                        total expenses for the year: program services, 
management expenses, general expenses, fundraising expenses, and 
payments to affiliates; and
                            ``(ii) the category or categories 
                        (including food, shelter, education, substance 
                        abuse, job training, or otherwise) of services 
                        which constitute its predominant activities.
                    ``(vi) Additional requirements for collection 
                organizations.--The requirements of this clause are met 
                if the organization--
                            ``(I) maintains separate accounting for 
                        revenues and expenses; and
                            ``(II) makes available to the public its 
                        administrative and fundraising costs and 
                        information as to the organizations receiving 
                        funds from it and the amount of such funds.
                    ``(vii) Special rule for states requiring tax 
                uniformity.--In the case of a State--
                            ``(I) which has a constitutional 
                        requirement of tax uniformity; and
                            ``(II) which, as of December 31, 1997, 
                        imposed a tax on personal income with--
                                    ``(aa) a single flat rate 
                                applicable to all earned and unearned 
                                income (except insofar as any amount is 
                                not taxed pursuant to tax forgiveness 
                                provisions); and
                                    ``(bb) no generally available 
                                exemptions or deductions to 
                                individuals;
                the requirement of paragraph (2) shall be treated as 
                met if the amount of the credit is limited to a uniform 
                percentage (but not greater than 25 percent) of State 
                personal income tax liability (determined without 
                regard to credits).

``SEC. 676. APPLICATION AND PLAN.

    ``(a) Designation of Lead Agency.--
            ``(1) Designation.--The chief executive officer of a State 
        desiring to receive an allotment under this subtitle shall 
        designate, in an application submitted to the Secretary under 
        subsection (b), an appropriate State agency that complies with 
        the requirements of paragraph (2) to act as a lead agency for 
        purposes of carrying out State activities under this subtitle.
            ``(2) Duties.--The lead agency shall--
                    ``(A) develop the State plan to be submitted to the 
                Secretary under subsection (b);
                    ``(B) in conjunction with the development of the 
                State plan as required under subsection (b), hold at 
                least 1 hearing in the State with sufficient time and 
                statewide distribution of notice of such hearing, to 
                provide to the public an opportunity to comment on the 
                proposed use and distribution of funds to be provided 
                through the allotment for the period covered by the 
                State plan; and
                    ``(C) conduct reviews of eligible entities under 
                section 678B.
            ``(3) Legislative hearing.--The State shall hold at least 1 
        legislative hearing every 3 years in conjunction with the 
        development of the State plan.
    ``(b) State Application and Plan.--Beginning with fiscal year 2000, 
to be eligible to receive an allotment under this subtitle, a State 
shall prepare and submit to the Secretary an application and State plan 
covering a period of not less than 1 fiscal year and not more than 2 
fiscal years. The plan shall be submitted not later than 30 days prior 
to the beginning of the first fiscal year covered by the plan, and 
shall contain such information as the Secretary shall require, 
including--
            ``(1) an assurance that funds made available through the 
        allotment will be used to support activities that are designed 
        to assist low-income families and individuals, including 
        families and individuals receiving assistance under title IV of 
        the Social Security Act, 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--
                    ``(A) to remove obstacles and solve problems that 
                block the achievement of self-sufficiency (particularly 
                for families and individuals who are attempting to 
                transition off a State program carried out under title 
                IV of the Social Security Act);
                    ``(B) to secure and retain meaningful employment;
                    ``(C) to attain an adequate education with 
                particular attention toward improving literacy skills 
                of the low-income families in the community, which may 
                include family literacy initiatives;
                    ``(D) to make better use of available income;
                    ``(E) to obtain and maintain adequate housing and a 
                suitable living environment;
                    ``(F) to obtain emergency assistance through loans, 
                grants, or other means to meet immediate and urgent 
                individual and family needs;
                    ``(G) to achieve greater participation in the 
                affairs of the community, including activities that 
                strengthen and improve the relationship with local law 
                enforcement agencies, which may include activities such 
                as neighborhood or community policing efforts;
                    ``(H) to address the needs of youth in low-income 
                communities through youth development programs that 
                support the primary role of the family, give priority 
                to prevention of youth problems and crime, promote 
                increased community coordination and collaboration in 
                meeting the needs of youth, and support development and 
                expansion of innovative community-based youth 
                development programs, which may include after-school 
                child care programs; and
                    ``(I) 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 
        allotment described in section 675C(b) in accordance with this 
        subtitle, including a description of how the State will support 
        innovative community and neighborhood-based initiatives related 
        to the purposes of this subtitle;
            ``(3) based on information provided by eligible entities in 
        the State, a description of--
                    ``(A) the service delivery system, for services 
                provided or coordinated with funds made available 
                through the allotment, targeted to low-income 
                individuals and families in communities within the 
                State;
                    ``(B) 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;
                    ``(C) a description of how funds made available 
                through the allotment will be coordinated with other 
                public and private resources; and
                    ``(D) a description of how the funds will be used 
                to support innovative community and neighborhood-based 
                initiatives related to the purposes of this subtitle 
                which may include fatherhood and other initiatives with 
                the goal of strengthening families and encouraging 
                parental responsibility;
            ``(4) an assurance that local 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;
            ``(5) an assurance that the State and the local eligible 
        entities in the State will coordinate, and establish linkages 
        between, governmental and other social services programs to 
        assure the effective delivery of such services to low-income 
        individuals and to avoid duplication of such services 
        (including a description of how the State and the local 
        eligible entities will coordinate with State and local 
        workforce investment systems in the provision of employment and 
        training services in the State and in local communities);
            ``(6) an assurance that the State will ensure coordination 
        between antipoverty programs in each community, and ensure, 
        where appropriate, that emergency energy crisis intervention 
        programs under title XXVI (relating to low-income home energy 
        assistance) are conducted in such community;
            ``(7) an assurance that the State will permit and cooperate 
        with Federal investigations undertaken in accordance with 
        section 678D;
            ``(8) an assurance that any eligible entity that received 
        funding in the previous fiscal year under this subtitle will 
        not have its funding terminated under this subtitle, or reduced 
        below the proportional share of funding the entity received in 
        the previous fiscal year unless, after providing notice and an 
        opportunity for a hearing on the record, the State determines 
        that cause exists for such termination or such reduction, 
        subject to review by the Secretary as provided in section 
        678C(b);
            ``(9) an assurance that local eligible entities in the 
        State will, to the maximum extent possible, coordinate programs 
        with and form partnerships with other organizations serving 
        low-income residents of the communities and members of the 
        groups served by the State, including faith-based 
        organizations, charitable groups, and community organizations;
            ``(10) an assurance that the State will require each 
        eligible entity to establish procedures under which a low-
        income individual, community organization, or faith-based 
        organization, or representative of low-income individuals that 
        considers its organization, or low-income individuals, to be 
        inadequately represented on the board (or other mechanism) of 
        the eligible entity to petition for adequate representation;
            ``(11) an assurance that the State will secure from each 
        eligible entity, as a condition to receipt of funding by the 
        entity under this subtitle for a program, a community action 
        plan (which shall be submitted to the Secretary, at the request 
        of the Secretary, with the State plan) that includes a 
        community-needs assessment for the community served, which may 
        be coordinated with community-needs assessments conducted for 
        other programs;
            ``(12) an assurance that the State and all eligible 
        entities in the State will, not later than fiscal year 2001, 
        participate in the Results Oriented Management and 
        Accountability System, another performance measure system 
        established pursuant to section 678E(b), or an alternative 
        system for measuring performance and results that meets the 
        requirements of that section, and a description of outcome 
        measures to be used to measure eligible entity performance in 
        promoting self-sufficiency, family stability, and community 
        revitalization; and
            ``(13) information describing how the State will carry out 
        the assurances described in this subsection.
    ``(c) Funding Termination or Reductions.--For purposes of making a 
determination in accordance with subsection (b)(8) with respect to--
            ``(1) a funding reduction, the term `cause' includes--
                    ``(A) a statewide redistribution of funds provided 
                under this subtitle to respond to--
                            ``(i) the results of the most recently 
                        available census or other appropriate data;
                            ``(ii) the designation of a new eligible 
                        entity; or
                            ``(iii) severe economic dislocation; or
                    ``(B) the failure of an eligible entity to comply 
                with the terms of an agreement to provide services 
                under this subtitle; and
            ``(2) a termination, the term `cause' includes the material 
        failure of an eligible entity to comply with the terms of such 
        an agreement and the State plan to provide services under this 
        subtitle or the consistent failure of the entity to achieve 
        performance measures as determined by the State.
    ``(d) Procedures and Information.--The Secretary may prescribe 
procedures only for the purpose of assessing the effectiveness of 
eligible entities in carrying out the purposes of this subtitle.
    ``(e) Revisions and Inspection.--
            ``(1) Revisions.--The chief executive officer of each State 
        may revise any plan prepared under this section and shall 
        submit the revised plan to the Secretary.
            ``(2) Public inspection.--Each plan or revised plan 
        prepared under this section shall be made available for public 
        inspection within the State in such a manner as will facilitate 
        review of, and comment on, the plan.

``SEC. 676A. DESIGNATION AND REDESIGNATION OF ELIGIBLE ENTITIES IN 
              UNSERVED AREAS.

    ``(a) Qualified Organization In or Near Area.--
            ``(1) In general.--If any geographic area of a State is 
        not, or ceases to be, served by an eligible entity under this 
        subtitle, and if the chief executive officer of the State 
        decides to serve such area, the chief executive officer may 
        solicit applications from, and designate as an eligible 
        entity--
                    ``(A) a private nonprofit eligible entity located 
                in an area contiguous to or within reasonable proximity 
                of the unserved area that is already providing related 
                services in the unserved area; or
                    ``(B) a private nonprofit organization that is 
                geographically located in the unserved area that is 
                capable of providing a broad range of services designed 
                to eliminate poverty and foster self-sufficiency and 
                that meets the requirements of this subtitle.
            ``(2) Requirement.--In order to serve as the eligible 
        entity for the area, an entity described in paragraph (1)(B) 
        shall agree to add additional members to the board of the 
        entity to ensure adequate representation--
                    ``(A) in each of the 3 required categories 
                described in subparagraphs (A), (B), and (C) of section 
                676B(a)(2), by members that reside in the community 
                comprised by the unserved area; and
                    ``(B) in the category described in section 
                676B(a)(2), by members that reside in the neighborhood 
                served.
    ``(b) Special Consideration.--In designating an eligible entity 
under subsection (a), the chief executive officer shall grant the 
designation to an organization of demonstrated effectiveness in meeting 
the goals and purposes of this subtitle and may give priority, in 
granting the designation, to local eligible entities that are already 
providing related services in the unserved area, consistent with the 
needs identified by a community-needs assessment.
    ``(c) No Qualified Organization in or Near Area.--If no private, 
nonprofit organization is identified or determined to be qualified 
under subsection (a) to serve the unserved area as an eligible entity 
the chief executive officer may designate an appropriate political 
subdivision of the State to serve as an eligible entity for the area. 
In order to serve as the eligible entity for that area, the political 
subdivision shall have a board or other mechanism as required in 
section 676B(b).

``SEC. 676B. TRIPARTITE BOARDS.

    ``(a) Private Nonprofit Entities.--
            ``(1) Board.--In order for a private, nonprofit entity to 
        be considered to be an eligible entity for purposes of section 
        673(1), the entity shall administer the community services 
        block grant program through a tripartite board described in 
        paragraph (2) that fully participates in the development and 
        implementation of the program to serve low-income communities 
        or groups.
            ``(2) Selection and composition of board.--The members of 
        the board referred to in paragraph (1) shall be selected by the 
        entity and the board shall be composed so as to assure that--
                    ``(A) \1/3\ of the members of the board are elected 
                public officials, holding office on the date of 
                selection, or their representatives, except that if the 
                number of elected officials reasonably available and 
                willing to serve on the board is less than \1/3\ of the 
                membership of the board, membership on the board of 
                appointive public officials or their representatives 
                may be counted in meeting such \1/3\ requirement;
                    ``(B) not fewer than \1/3\ of the members are 
                persons chosen in accordance with democratic selection 
                procedures adequate to assure that these members are 
                representative of low-income individuals and families 
                in the neighborhood served;
                    ``(C) the remainder of the members are officials or 
                members of business, industry, labor, religious, law 
                enforcement, education, or other major groups and 
                interests in the community served; and
                    ``(D) each representative of low-income individuals 
                and families selected to represent a specific 
                neighborhood within a community under subparagraph (B) 
                resides in the neighborhood represented by the member.
    ``(b) Public Organizations.--In order for a public organization to 
be considered to be an eligible entity for purposes of section 673(1), 
the entity shall administer the community services block grant program 
through--
            ``(1) a tripartite board, which shall have members selected 
        by the organization and shall be composed so as to assure that 
        not fewer than \1/3\ of the members are persons chosen in 
        accordance with democratic selection procedures adequate to 
        assure that these members--
                    ``(A) are representative of low-income individuals 
                and families in the neighborhood served;
                    ``(B) reside in the neighborhood served; and
                    ``(C) are able to participate actively in the 
                planning and implementation of programs funded under 
                this subtitle; or
            ``(2) another mechanism specified by the State to assure 
        decisionmaking and participation by low-income individuals in 
        the planning, administration, and evaluation of programs funded 
        under this subtitle.

``SEC. 677. PAYMENTS TO INDIAN TRIBES.

    ``(a) Reservation.--If, with respect to any State, the Secretary--
            ``(1) receives a request from the governing body of an 
        Indian tribe or tribal organization within the State that 
        assistance under this subtitle be made directly to such tribe 
        or organization; and
            ``(2) determines that the members of such tribe or tribal 
        organization would be better served by means of grants made 
        directly to provide benefits under this subtitle,
the Secretary shall reserve from amounts that would otherwise be 
allotted to such State under section 675B for the fiscal year the 
amount determined under subsection (b).
    ``(b) Determination of Reserved Amount.--The Secretary shall 
reserve for the purpose of subsection (a) from amounts that would 
otherwise be allotted to such State, not less than 100 percent of an 
amount that bears the same ratio to the State allotment for the fiscal 
year involved as the population of all eligible Indians for whom a 
determination has been made under subsection (a) bears to the 
population of all individuals eligible for assistance under this 
subtitle in such State.
    ``(c) Awards.--The sums reserved by the Secretary on the basis of a 
determination made under subsection (a) shall be made available by 
grant to the Indian tribe or tribal organization serving the 
individuals for whom such a determination has been made.
    ``(d) Plan.--In order for an Indian tribe or tribal organization to 
be eligible for a grant award for a fiscal year under this section, the 
tribe or organization shall submit to the Secretary a plan for such 
fiscal year that meets such criteria as the Secretary may prescribe by 
regulation.
    ``(e) Definitions.--In this section:
            ``(1) Indian tribe; tribal organization.--The terms `Indian 
        tribe' and `tribal organization' mean a tribe, band, or other 
        organized group of Indians recognized in the State in which the 
        tribe, band, or group resides, or considered by the Secretary 
        of the Interior, to be an Indian tribe or an Indian 
        organization for any purpose.
            ``(2) Indian.--The term `Indian' means a member of an 
        Indian tribe or of a tribal organization.

``SEC. 678. OFFICE OF COMMUNITY SERVICES.

    ``(a) Office.--The Secretary shall carry out the functions of this 
subtitle through an Office of Community Services, which shall be 
established in the Department of Health and Human Services. The Office 
shall be headed by a Director.
    ``(b) Grants, Contracts, Cooperative Agreements.--The Secretary 
shall carry out functions of this subtitle through grants, contracts, 
or cooperative agreements.

``SEC. 678A. TRAINING AND TECHNICAL ASSISTANCE.

    ``(a) Activities.--The Secretary shall use the amounts reserved in 
section 674(b)(2) for training, technical assistance, planning, 
evaluation, performance measurement, corrective action activities (to 
correct programmatic deficiencies of eligible entities), reporting, and 
data collection activities related to programs carried out under this 
subtitle, and in accordance with subsection (c). Training and technical 
assistance activities may be carried out by the Secretary through 
grants, contracts, or cooperative agreements with eligible entities or 
with organizations or associations whose membership is composed of 
eligible entities or agencies that administer programs for eligible 
entities.
    ``(b) Process.--The process for determining the training and 
technical assistance to be carried out under this section shall--
            ``(1) ensure that the needs of eligible entities and 
        programs relating to improving program quality, including 
        financial management practices, are addressed to the maximum 
        extent feasible; and
            ``(2) incorporate mechanisms to ensure responsiveness to 
        local needs, including an ongoing procedure for obtaining input 
        from the national and State network of eligible entities.
    ``(c) Distribution Requirement.--Of the amounts reserved under 
section 674(b)(2) for activities to be carried out under this section, 
not less than \1/2\ of such amounts shall be distributed directly to 
local eligible entities or to statewide organizations whose membership 
is composed of eligible entities for the purpose of improving program 
quality (including financial management practices), management 
information and reporting systems, measurement of program results, and 
for the purpose of ensuring responsiveness to local neighborhood needs.

``SEC. 678B. MONITORING OF ELIGIBLE ENTITIES.

    ``(a) In General.--In order to determine whether eligible entities 
meet the performance goals, administrative standards, financial 
management requirements, and other requirements of a State, the State 
shall conduct the following reviews of eligible entities:
            ``(1) A full onsite review of each such entity at least 
        once during each 3-year period.
            ``(2) An onsite review of each newly designated entity 
        immediately after the completion of the first year in which 
        such entity receives funds through the community services block 
        grant program.
            ``(3) Followup reviews including prompt return visits to 
        eligible entities, and their programs, that fail to meet the 
        goals, standards, and requirements established by the State.
            ``(4) Other reviews as appropriate, including reviews of 
        entities with programs that have had other Federal, State, or 
        local grants terminated for cause.
    ``(b) Requests.--The State may request training and technical 
assistance from the Secretary as needed to comply with the requirements 
of this section.
    ``(c) Evaluations by the Secretary.--The Secretary shall conduct in 
several States in each fiscal year evaluations and investigations of 
the use of funds received by the States under this subtitle in order to 
evaluate compliance with the provisions of this subtitle, and 
especially with respect to compliance with subsection (b) of section 
676. A report of such evaluations, together with recommendations of 
improvements designed to enhance the benefit and impact to people in 
need, shall be sent to each State evaluated. Upon receiving the report 
the State shall submit a plan of action in response to the 
recommendations contained in the report. The results of the evaluations 
shall be submitted annually to the Chairman of the Committee on 
Education and the Workforce of the House of Representatives and the 
Chairman of the Committee on Labor and Human Resources of the Senate as 
part of the report submitted by the Secretary in accordance with 
section 678E(b)(2).

``SEC. 678C. CORRECTIVE ACTION; TERMINATION AND REDUCTION OF FUNDING.

    ``(a) Determination.--If the State determines, on the basis of a 
review pursuant to subsection 678B, that an eligible entity materially 
fails to comply with the terms of an agreement, or the State plan, to 
provide services under this subtitle or to meet appropriate standards, 
goals, and other requirements established by the State (including 
performance objectives), the State shall--
            ``(1) inform the entity of the deficiency to be corrected;
            ``(2) require the entity to correct the deficiency;
            ``(3)(A) offer training and technical assistance, if 
        appropriate, to help correct the deficiency, and prepare and 
        submit to the Secretary a report describing the training and 
        technical assistance offered; or
            ``(B) if the State determines that such training and 
        technical assistance are not appropriate, prepare and submit to 
        the Secretary a report stating the reasons for the 
        determination;
            ``(4)(A) at the discretion of the State (taking into 
        account the seriousness of the deficiency and the time 
        reasonably required to correct the deficiency), allow the 
        entity to develop and implement, within 60 days after being 
        informed of the deficiency, a quality improvement plan to 
        correct such deficiency within a reasonable period of time, as 
determined by the State; and
            ``(B) not later than 30 days after receiving from an 
        eligible entity a proposed quality improvement plan pursuant to 
        subparagraph (A), either approve such proposed plan or specify 
        the reasons why the proposed plan cannot be approved; and
            ``(5) after providing adequate notice and an opportunity 
        for a hearing, initiate proceedings to terminate the 
        designation of or reduce the funding under this subtitle of the 
        eligible entity unless the entity corrects the deficiency.
    ``(b) Review.--A determination to terminate the designation or 
reduce the funding of an eligible entity is reviewable by the 
Secretary. The Secretary shall, upon request, review such a 
determination. The review shall be completed not later than 120 days 
after the determination to terminate the designation or reduce the 
funding. If the review is not completed within 120 days, the 
determination of the State shall become final at the end of the 120th 
day.
    ``(c) Direct Assistance.--Whenever a State violates the assurances 
contained in section 676(b)(8) and terminates or reduces the funding of 
an eligible entity prior to the completion of the State's hearing and 
the Secretary's review as required in subsection (b), the Secretary 
shall assume responsibility for providing financial assistance to the 
eligible entity affected until the violation is corrected. In such 
case, the allotment for the State shall be reduced by an amount equal 
to the funds provided under this subsection to such eligible entity.

``SEC. 678D. FISCAL CONTROLS, AUDITS, AND WITHHOLDING.

    ``(a) Fiscal Controls, Procedures, Audits, and Inspections.--
            ``(1) In general.--A State that receives funds under this 
        subtitle shall--
                    ``(A) establish fiscal control and fund accounting 
                procedures necessary to assure the proper disbursal of 
                and accounting for Federal funds paid to the State 
                under this subtitle, including procedures for 
                monitoring the funds provided under this subtitle;
                    ``(B) ensure that cost and accounting standards of 
                the Office of Management and Budget apply to a 
                recipient of funds under this subtitle;
                    ``(C) prepare, at least every year in accordance 
                with paragraph (2) an audit of the expenditures of the 
                State of amounts received under this subtitle and 
                amounts transferred to carry out the purposes of this 
                subtitle; and
                    ``(D) make appropriate books, documents, papers, 
                and records available to the Secretary and the 
                Comptroller General of the United States, or any of 
                their duly authorized representatives, for examination, 
                copying, or mechanical reproduction on or off the 
                premises of the appropriate entity upon a reasonable 
                request for the items.
            ``(2) Audits.--Each audit required by subsection (a)(1)(C) 
        shall be conducted by an entity independent of any agency 
        administering activities or services carried out under this 
        subtitle and shall be conducted in accordance with generally 
        accepted accounting principles. Within 30 days after the 
        completion of each such audit in a State, the chief executive 
        officer of the State shall submit a copy of such audit to any 
        eligible entity that was the subject of the audit at no charge, 
        to the legislature of the State, and to the Secretary.
            ``(3) Repayments.--The State shall repay to the United 
        States amounts found not to have been expended in accordance 
        with this subtitle or the Secretary may offset such amounts 
        against any other amount to which the State is or may become 
        entitled under this subtitle.
    ``(b) Withholding.--
            ``(1) In general.--The Secretary shall, after providing 
        adequate notice and an opportunity for a hearing conducted 
        within the affected State, withhold funds from any State that 
        does not utilize the State allotment substantially in 
        accordance with the provisions of this subtitle, including the 
        assurances such State provided under section 676.
            ``(2) Response to complaints.--The Secretary shall respond 
        in an expeditious and speedy manner to complaints of a 
        substantial or serious nature that a State has failed to use 
        funds in accordance with the provisions of this subtitle, 
        including the assurances provided by the State under section 
        676. For purposes of this paragraph, a complaint of a failure 
        to meet any 1 of the assurances provided under section 676 that 
        constitutes disregarding that assurance shall be considered to 
        be a complaint of a serious nature.
            ``(3) Investigations.--Whenever the Secretary determines 
        that there is a pattern of complaints of failures described in 
        paragraph (2) from any State in any fiscal year, the Secretary 
        shall conduct an investigation of the use of funds received 
        under this subtitle by such State in order to ensure compliance 
        with the provisions of this subtitle.

``SEC. 678E. ACCOUNTABILITY AND REPORTING REQUIREMENTS.

    ``(a) State Accountability and Reporting Requirements.--
            ``(1) Performance measurement.--
                    ``(A) In general.--By October 1, 2001, 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 established by the Secretary 
                pursuant to subsection (b), or an alternative system 
                that meets the requirements of subsection (b).
                    ``(B) Local agencies.--The State may elect to have 
                local agencies who 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.
            ``(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. 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 indirect services or administrative costs by 
        the State and the eligible entities, and funds spent by 
        eligible entities on the direct delivery of local services, 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) Secretary's Accountability and Reporting Requirements.--
            ``(1) Performance measurement.--The Secretary, in 
        collaboration with the States and with eligible entities 
        throughout the Nation, shall facilitate the development of 1 or 
        more model performance measurement systems, which may be used 
        by the States and by eligible entities to measure their 
        performance in carrying out the requirements of this subtitle 
        and in achieving the goals of their community action plans. 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.
            ``(2) Reporting requirements.--At the end of each fiscal 
        year beginning after September 30, 1999, 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 indirect 
                services or administrative costs and on the direct 
                delivery of local services 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 prior to the start of the fiscal year 
                for the States to collect and provide the information.
            ``(3) Submission.--The Secretary shall submit to the 
        Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Labor and Human Resources 
        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, indirect, and 
        administrative costs used by the Department of Health and Human 
        Services for programs funded under this subtitle.
            ``(4) Costs.--Of the funds reserved under section 
        674(b)(3), not more than $350,000 shall be available to carry 
        out the reporting requirements contained in paragraph (2) and 
        the provision of technical assistance described in paragraph 
        (1).

``SEC. 678F. LIMITATIONS ON USE OF FUNDS.

    ``(a) Construction of Facilities.--
            ``(1) Limitations.--Except as provided in paragraph (2), 
        grants made under this subtitle (other than amounts reserved 
        under section 674(b)(3)) may not be used by the State, or by 
        any other person with which the State makes arrangements to 
        carry out the purposes of this subtitle, for the purchase or 
        improvement of land, or the purchase, construction, or 
        permanent improvement (other than low-cost residential 
        weatherization or other energy-related home repairs) of any 
        building or other facility.
            ``(2) Waiver.--The Secretary may waive the limitation 
        contained in paragraph (1) upon a State request for such a 
        waiver, if the Secretary finds that the request describes 
        extraordinary circumstances to justify the purchase of land or 
        the construction of facilities (or the making of permanent 
        improvements) and that permitting the waiver will contribute to 
        the ability of the State to carry out the purposes of this 
        subtitle.
    ``(b) Political Activities.--
            ``(1) Treatment as a state or local agency.--For purposes 
        of chapter 15 of title 5, United States Code, any entity that 
        assumes responsibility for planning, developing, and 
        coordinating activities under this subtitle and receives 
        assistance under this subtitle shall be deemed to be a State or 
        local agency. For purposes of paragraphs (1) and (2) of section 
        1502(a) of such title, any entity receiving assistance under 
        this subtitle shall be deemed to be a State or local agency.
            ``(2) Prohibitions.--Programs assisted under this subtitle 
        shall not be carried on in a manner involving the use of 
        program funds, the provision of services, or the employment or 
        assignment of personnel, in a manner supporting or resulting in 
        the identification of such programs with--
                    ``(A) any partisan or nonpartisan political 
                activity or any political activity associated with a 
                candidate, or contending faction or group, in an 
                election for public or party office;
                    ``(B) any activity to provide voters or prospective 
                voters with transportation to the polls or similar 
                assistance in connection with any such election; or
                    ``(C) any voter registration activity.
            ``(3) Rules and regulations.--The Secretary, after 
        consultation with the Office of Personnel Management, shall 
        issue rules and regulations to provide for the enforcement of 
        this subsection, which shall include provisions for summary 
        suspension of assistance or other action necessary to permit 
        enforcement on an emergency basis.
    ``(c) Nondiscrimination.--
            ``(1) In general.--No person shall, on the basis of race, 
        color, religion, national origin, or sex be excluded from 
        participation in, be denied the benefits of, or be subjected to 
        discrimination under, any program or activity funded in whole 
        or in part with funds made available under this subtitle. Any 
        prohibition against discrimination on the basis of age under 
        the Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.) or 
        with respect to an otherwise qualified individual with a 
        disability as provided in section 504 of the Rehabilitation Act 
        of 1973 (29 U.S.C. 794) or title II of the Americans with 
        Disabilities Act of 1990 (42 U.S.C. 12131 et seq.) shall also 
        apply to any such program or activity.
            ``(2) Action of secretary.--Whenever the Secretary 
        determines that a State that has received a payment under this 
        subtitle has failed to comply with paragraph (1) or an 
        applicable regulation, the Secretary shall notify the chief 
        executive officer of the State and shall request that the 
        officer secure compliance. If within a reasonable period of 
        time, not to exceed 60 days, the chief executive officer fails 
        or refuses to secure compliance, the Secretary is authorized 
        to--
                    ``(A) refer the matter to the Attorney General with 
                a recommendation that an appropriate civil action be 
                instituted;
                    ``(B) exercise the powers and functions provided by 
                title VI of the Civil Rights Act of 1964 (42 U.S.C. 
                2000d et seq.), the Age Discrimination Act of 1975 (42 
                U.S.C. 6101 et seq.), or section 504 of the 
                Rehabilitation Act of 1973 (29 U.S.C. 794), as may be 
                applicable; or
                    ``(C) take such other action as may be provided by 
                law.
            ``(3) Action of attorney general.--When a matter is 
        referred to the Attorney General pursuant to paragraph (2), or 
        whenever the Attorney General has reason to believe that the 
        State is engaged in a pattern or practice of discrimination in 
        violation of the provisions of this subsection, the Attorney 
General may bring a civil action in any appropriate United States 
district court for such relief as may be appropriate, including 
injunctive relief.

``SEC. 679. OPERATIONAL RULE.

    ``(a) Faith-Based Organizations Included as Nongovernmental 
Providers.--For any program carried out by the Federal Government, or 
by a State or local government under this subtitle, the government 
shall consider, on the same basis as other nongovernmental 
organizations, faith-based organizations to provide the assistance 
under the program, so long as the program is implemented in a manner 
consistent with the Establishment Clause of the first amendment to the 
Constitution. Neither the Federal Government nor a State or local 
government receiving funds under this subtitle shall discriminate 
against an organization that provides assistance under, or applies to 
provide assistance under, this subtitle, on the basis that the 
organization has a faith-based character.
    ``(b) Additional Safeguards.--Neither the Federal Government nor a 
State or local government shall require a faith-based organization to 
remove religious art, icons, scripture, or other symbols in order to be 
eligible to provide assistance under a program described in subsection 
(a).
    ``(c) Limitations on Use of Funds for Certain Purposes.--No funds 
provided to a faith-based organization to provide assistance under any 
program described in subsection (a) shall be expended for sectarian 
worship, instruction, or proselytization.
    ``(d) Fiscal Accountability.--
            ``(1) In general.--Except as provided in paragraph (2), any 
        faith-based organization providing assistance under any program 
        described in subsection (a) shall be subject to the same 
        regulations as other nongovernmental organizations to account 
        in accord with generally accepted accounting principles for the 
        use of such funds provided under such program.
            ``(2) Limited audit.--Such organization shall segregate 
        government funds provided under such program into a separate 
        account. Only the government funds shall be subject to audit by 
        the government.

``SEC. 680. DISCRETIONARY AUTHORITY OF THE SECRETARY.

    ``(a) Grants, Contracts, Arrangements, Loans, and Guarantees.--
            ``(1) In general.--The Secretary shall, from funds reserved 
        under section 674(b)(3), make grants, loans, or guarantees to 
        States and public agencies and private, nonprofit 
        organizations, or enter into contracts or jointly financed 
        cooperative arrangements with States and public agencies and 
        private, nonprofit organizations (and for-profit organizations, 
        to the extent specified in (2)(E)) for each of the objectives 
        described in paragraphs (2) through (4).
            ``(2) Community economic development.--
                    ``(A) Economic development activities.--The 
                Secretary shall make grants described in paragraph (1) 
                on a competitive basis to private, non-profit 
                organizations that are community development 
                corporations to provide technical and financial 
                assistance for economic development activities designed 
                to address the economic needs of low-income individuals 
                and families by creating employment and business 
                development opportunities.
                    ``(B) Consultation.--The Secretary shall exercise 
                the authority provided under subparagraph (A) after 
                consultation with other relevant Federal officials.
                    ``(C) Governing boards.--For a community 
                development corporation to receive funds to carry out 
                this paragraph, the corporation shall be governed by a 
                board that shall consist of residents of the community 
                and business and civic leaders and shall have as a 
                principal purpose planning, developing, or managing 
                low-income housing or community development projects.
                    ``(D) Geographic distribution.--In making grants to 
                carry out this paragraph, the Secretary shall take into 
                consideration the geographic distribution of funding 
                among States and the relative proportion of funding 
                among rural and urban areas.
                    ``(E) Reservation.--Of the amounts made available 
                to carry out this paragraph, the Secretary may reserve 
                not more than 1 percent for each fiscal year to make 
                grants to private, nonprofit organizations or to enter 
                into contracts with private, nonprofit or for-profit 
                organizations to provide technical assistance to aid 
                community development corporations in developing or 
                implementing activities funded to carry out this 
                paragraph and to evaluate activities funded to carry 
                out this paragraph.
            ``(3) Rural community development activities.--The 
        Secretary shall provide the assistance described in paragraph 
        (1) for rural community development activities, which shall 
        include--
                    ``(A) grants to private, nonprofit corporations 
                that provide assistance concerning home repair to rural 
                low-income families and planning and developing low-
                income rural rental housing units; and
                    ``(B) grants to multistate, regional, private, 
                nonprofit organizations to provide training and 
                technical assistance to small, rural communities in 
                meeting their community facility needs.
            ``(4) Neighborhood innovation projects.--The Secretary 
        shall provide the assistance described in paragraph (1) for 
        neighborhood innovation projects, which shall include grants to 
        neighborhood-based private, nonprofit organizations to test or 
        assist in the development of new approaches or methods that 
        will aid in overcoming special problems identified by 
        communities or neighborhoods or otherwise assist in furthering 
        the purposes of this subtitle, and which may include projects 
        that are designed to serve low-income individuals and families 
        who are not being effectively served by other programs.
    ``(b) Evaluation.--The Secretary shall require all activities 
receiving assistance under this section to be evaluated for their 
effectiveness. Funding for such evaluations shall be provided as a 
stated percentage of the assistance or through a separate grant awarded 
by the Secretary specifically for the purpose of evaluation of a 
particular activity or group of activities.
    ``(c) Annual Report.--The Secretary shall compile an annual report 
containing a summary of the evaluations required in subsection (b) and 
a listing of all activities assisted under this section. The Secretary 
shall annually submit the report to the Chairperson of the Committee on 
Education and the Workforce of the House of Representatives and the 
Chairperson of the Committee on Labor and Human Resources of the 
Senate.''.

SEC. 103. RELATED AMENDMENTS.

    The Community Services Block Grant Act (42 U.S.C. 9901 et seq.) is 
amended--
            (1) by striking section 681;
            (2) in section 681A--
                    (A) by striking ``681A'' and inserting ``681'';
                    (B) in subsection (c) by striking ``Labor'' and 
                inserting ``the Workforce''; and
                    (C) in subsection (d) by striking ``$25,000,000'' 
                and all that follows through ``1998'', and inserting 
                ``$5,000,000 for fiscal year 1999, and such sums as may 
                be necessary for fiscal years 2000 through 2003'';
            (3) in section 682--
                    (A) in subsection (c)--
                            (i) by redesignating paragraphs (3) and (4) 
                        as paragraphs (4) and (5), respectively; and
                            (ii) by inserting after paragraph (2) the 
                        following:
            ``(3) the applicant shall, in each community in which a 
        program is funded under this section--
                    ``(A) ensure that--
                            ``(i) a community-based advisory committee, 
                        composed of representatives of local youth, 
                        family, and social service organizations, 
                        schools, entities that provide park and 
                        recreation services, entities that provide 
                        training services, and community-based 
                        organizations that serve high-risk youth, is 
                        established; or
                            ``(ii) an existing community-based advisory 
                        board, commission, or committee with similar 
                        membership is used; and
                    ``(B) enter into formal partnerships with youth-
                serving organizations or other appropriate social 
                service entities in order to link program participants 
                with year-round services in their home communities that 
                support and continue the objectives of this 
                subtitle;''; and
                    (B) in subsection (f) by striking ``each fiscal 
                year'' and all that follows through ``1998'', and 
                inserting ``for fiscal year 1999, and such sums as may 
                be necessary for fiscal years 2000 through 2003''; and
            (4) by striking sections 683 and 684, and inserting the 
        following:

``SEC. 683. DRUG TESTING AND PATERNITY DETERMINATIONS.

    ``(a) Drug Testing Permitted.--(1) Nothing in this subtitle shall 
be construed to prohibit a State from testing participants in programs, 
activities, or services carried out under this subtitle for controlled 
substances or from imposing sanctions on such participants who test 
positive for any of such substances.
    ``(2) Any funds provided under this subtitle expended for such 
testing shall be considered to be expended for administrative expenses 
and shall be subject to the limitation specified in section 675(b)(2).
    ``(b) Paternity Determinations.--During each fiscal year for which 
an eligible entity receives a grant under section 675C, such entity 
shall--
            ``(1) inform custodial parents in single-parent families 
        that participate in programs, activities, or services carried 
        out under this subtitle about the availability of child support 
        services;
            ``(2) refer eligible parents to the child support offices 
        of State and local governments; and
            ``(3) establish referral arrangements with such offices.

``SEC. 684. REFERENCES.

    ``Any reference in any provision of law to the poverty line set 
forth in section 624 or 625 of the Economic Opportunity Act of 1964 
shall be construed to be a reference to the poverty line defined in 
section 673 of this subtitle. Any reference in any provision of law to 
any community action agency designated under title II of the Economic 
Opportunity Act of 1964 shall be construed to be a reference to an 
entity eligible to receive funds under the community services block 
grant program.''.

SEC. 104. ASSETS FOR INDEPENDENCE.

    The Community Services Block Grant Act (42 U.S.C. 9901-9912), as 
amended by sections 102 and 103, is amended--
            (1) by striking ``this subtitle' each place it appears 
        (other than in section 671) and inserting ``this part'', and
            (2) by inserting the following after section 671:
``PART A--COMMUNITY SERVICES GRANTS'',
        and
            (3) by adding at the end the following:
``PART B--ASSETS FOR INDEPENDENCE

``SEC. 685. SHORT TITLE.

    ``This part may be cited as the `Assets for Independence Act'.

``SEC. 686. FINDINGS.

    ``Congress makes the following findings:
            ``(1) Economic well-being does not come solely from income, 
        spending, and consumption, but also requires savings, 
        investment, and accumulation of assets because assets can 
        improve economic independence and stability, connect 
        individuals with a viable and hopeful future, stimulate 
        development of human and other capital, and enhance the welfare 
        of offspring.
            ``(2) Fully \1/2\ of all Americans have either no, 
        negligible, or negative assets available for investment, just 
        as the price of entry to the economic mainstream, the cost of a 
        house, an adequate education, and starting a business, is 
        increasing. Further, the household savings rate of the United 
        States lags far behind other industrial nations presenting a 
        barrier to economic growth.
            ``(3) In the current tight fiscal environment, the United 
        States should invest existing resources in high-yield 
        initiatives. There is reason to believe that the financial 
        returns, including increased income, tax revenue, and decreased 
        welfare cash assistance, resulting from individual development 
        accounts will far exceed the cost of investment in those 
        accounts.
            ``(4) Traditional public assistance programs concentrating 
        on income and consumption have rarely been successful in 
        promoting and supporting the transition to increased economic 
        self-sufficiency. Income-based domestic policy should be 
        complemented with asset-based policy because, while income-
        based policies ensure that consumption needs (including food, 
        child care, rent, clothing, and health care) are met, asset-
        based policies provide the means to achieve greater 
        independence and economic well-being.

``SEC. 687. PURPOSES.

    ``The purposes of this part are to provide for the establishment of 
demonstration projects designed to determine--
            ``(1) the social, civic, psychological, and economic 
        effects of providing to individuals and families with limited 
        means an incentive to accumulate assets by saving a portion of 
        their earned income;
            ``(2) the extent to which an asset-based policy that 
        promotes saving for postsecondary education, homeownership, and 
        microenterprise development may be used to enable individuals 
        and families with limited means to increase their economic 
        self-sufficiency; and
            ``(3) the extent to which an asset-based policy stabilizes 
        and improves families and the community in which they live.

``SEC. 688. DEFINITIONS.

    ``In this part:
            ``(1) Applicable period.--The term `applicable period' 
        means, with respect to amounts to be paid from a grant made for 
        a project year, the calendar year immediately preceding the 
        calendar year in which the grant is made.
            ``(2) Eligible individual.--The term `eligible individual' 
        means an individual who is selected to participate by a 
        qualified entity under section 693.
            ``(3) Emergency withdrawal.--The term `emergency 
        withdrawal' means a withdrawal by an eligible individual that--
                    ``(A) is a withdrawal of only those funds, or a 
                portion of those funds, deposited by the individual in 
                the individual development account of the individual;
                    ``(B) is permitted by a qualified entity on a case-
                by-case basis; and
                    ``(C) is made for--
                            ``(i) expenses for medical care or 
                        necessary to obtain medical care, for the 
                        individual or a spouse or dependent of the 
                        individual described in paragraph (8)(D);
                            ``(ii) payments necessary to prevent the 
                        eviction of the individual from the residence 
                        of the individual, or foreclosure on the 
                        mortgage for the principal residence of the 
                        individual, as defined in paragraph (8)(B); or
                            ``(iii) payments necessary to enable the 
                        individual to meet necessary living expenses 
                        following loss of employment.
            ``(4) Household.--The term `household' means all 
        individuals who share use of a dwelling unit as primary 
        quarters for living and eating separate from other individuals.
            ``(5) Individual development account.--
                    ``(A) In general.--The term `individual development 
                account' means a trust created or organized in the 
                United States exclusively for the purpose of paying the 
                qualified expenses of an eligible individual, or 
                enabling the eligible individual to make an emergency 
                withdrawal, but only if the written governing 
                instrument creating the trust meets the following 
                requirements:
                            ``(i) No contribution will be accepted 
                        unless it is in cash or by check.
                            ``(ii) The trustee is a federally insured 
                        financial institution, or a State insured 
                        financial institution if no federally insured 
                        financial institution is available.
                            ``(iii) The assets of the trust will be 
                        invested in accordance with the direction of 
                        the eligible individual after consultation with 
                        the qualified entity providing deposits for the 
                        individual under section 694.
                            ``(iv) The assets of the trust will not be 
                        commingled with other property except in a 
                        common trust fund or common investment fund.
                            ``(v) Except as provided in clause (vi), 
                        any amount in the trust which is attributable 
                        to a deposit provided under section 694 may be 
                        paid or distributed out of the trust only for 
                        the purpose of paying the qualified expenses of 
                        the eligible individual, or enabling the 
                        eligible individual to make an emergency 
                        withdrawal.
                            ``(vi) Any balance in the trust on the day 
                        after the date on which the individual for 
                        whose benefit the trust is established dies 
                        shall be distributed within 30 days of that 
                        date as directed by that individual to another 
                        individual development account established for 
                        the benefit of an eligible individual.
                    ``(B) Custodial accounts.--For purposes of 
                subparagraph (A), a custodial account shall be treated 
                as a trust if the assets of the custodial account are 
                held by a bank (as defined in section 408(n) of the 
                Internal Revenue Code of 1986) or another person who 
                demonstrates, to the satisfaction of the Secretary, 
                that the manner in which such person will administer 
                the custodial account will be consistent with the 
                requirements of this part, and if the custodial account 
                would, except for the fact that it is not a trust, 
                constitute an individual development account described 
                in subparagraph (A). For purposes of this part, in the 
                case of a custodial account treated as a trust by 
                reason of the preceding sentence, the custodian of that 
                custodial account shall be treated as the trustee 
                thereof.
            ``(6) Project year.--The term `project year' means, with 
        respect to a demonstration project, any of the 5 consecutive 
        12-month periods beginning on the date the project is 
        originally authorized to be conducted.
            ``(7) Qualified entity.--
                    ``(A) In general.--The term `qualified entity' 
                means--
                            ``(i) one or more not-for-profit 
                        organizations described in section 501(c)(3) of 
                        the Internal Revenue Code of 1986 and exempt 
                        from taxation under section 501(a) of such 
                        Code; or
                            ``(ii) a State or local government agency, 
                        or a tribal government, submitting an 
                        application under section 689 jointly with an 
                        organization described in clause (i).
                    ``(B) Rule of construction.--Nothing in this 
                paragraph shall be construed as preventing an 
organization described in subparagraph (A)(i) from collaborating with a 
financial institution or for-profit community development corporation 
to carry out the purposes of this part.
            ``(8) Qualified expenses.--The term `qualified expenses' 
        means 1 or more of the following, as provided by the qualified 
        entity:
                    ``(A) Postsecondary educational expenses.--
                Postsecondary educational expenses paid from an 
                individual development account directly to an eligible 
                educational institution. In this subparagraph:
                            ``(i) Postsecondary educational expenses.--
                        The term `postsecondary educational expenses' 
                        means the following:
                                    ``(I) Tuition and fees.--Tuition 
                                and fees required for the enrollment or 
                                attendance of a student at an eligible 
                                educational institution.
                                    ``(II) Fees, books, supplies, and 
                                equipment.--Fees, books, supplies, and 
                                equipment required for courses of 
                                instruction at an eligible educational 
                                institution.
                            ``(ii) Eligible educational institution.--
                        The term ``eligible educational institution' 
                        means the following:
                                    ``(I) Institution of higher 
                                education.--An institution described in 
                                section 481(a)(1) or 1201(a) of the 
                                Higher Education Act of 1965 (20 U.S.C. 
                                1088(a)(1) or 1141(a)), as such 
                                sections are in effect on the date of 
                                enactment of this part.
                                    ``(II) Postsecondary vocational 
                                education school.--An area vocational 
                                education school (as defined in 
                                subparagraph (C) or (D) of section 
                                521(4) of the Carl D. Perkins 
                                Vocational and Applied Technology 
                                Education Act (20 U.S.C. 2471(4))) 
                                which is in any State (as defined in 
                                section 521(33) of such Act), as such 
                                sections are in effect on the date of 
                                enactment of this part.
                    ``(B) First-home purchase.--Qualified acquisition 
                costs with respect to a principal residence for a 
                qualified first-time homebuyer, if paid from an 
                individual development account directly to the persons 
                to whom the amounts are due. In this subparagraph:
                            ``(i) Principal residence.--The term 
                        `principal residence' means a principal 
                        residence, the qualified acquisition costs of 
                        which do not exceed 100 percent of the average 
                        area purchase price applicable to such 
                        residence.
                            ``(ii) Qualified acquisition costs.--The 
                        term `qualified acquisition costs' means the 
                        costs of acquiring, constructing, or 
                        reconstructing a residence. The term includes 
                        any usual or reasonable settlement, financing, 
                        or other closing costs.
                            ``(iii) Qualified first-time homebuyer.--
                                    ``(I) In general.--The term 
                                `qualified first-time homebuyer' means 
                                an individual participating in the 
                                project (and, if married, the 
                                individual's spouse) who has no present 
                                ownership interest in a principal 
                                residence during the 3-year period 
                                ending on the date of acquisition of 
                                the principal residence to which this 
                                subparagraph applies.
                                    ``(II) Date of acquisition.--The 
                                term `date of acquisition' means the 
                                date on which a binding contract to 
                                acquire, construct, or reconstruct the 
                                principal residence to which this 
                                subparagraph applies is entered into.
                    ``(C) Business capitalization.--Amounts paid from 
                an individual development account directly to a 
                business capitalization account which is established in 
                a federally insured financial institution (or in a 
                State insured financial institution if no federally 
                insured financial institution is available) and is 
                restricted to use solely for qualified business 
                capitalization expenses. In this subparagraph:
                            ``(i) Qualified business capitalization 
                        expenses.--The term ``qualified business 
                        capitalization expenses' means qualified 
                        expenditures for the capitalization of a 
                        qualified business pursuant to a qualified 
                        plan.
                            ``(ii) Qualified expenditures.--The term 
                        `qualified expenditures' means expenditures 
                        included in a qualified plan, including 
                        capital, plant, equipment, working capital, and 
                        inventory expenses.
                            ``(iii) Qualified business.--The term 
                        `qualified business' means any business that 
                        does not contravene any law or public policy 
                        (as determined by the Secretary).
                            ``(iv) Qualified plan.--The term `qualified 
                        plan' means a business plan, or a plan to use a 
                        business asset purchased, which--
                                    ``(I) is approved by a financial 
                                institution, a microenterprise 
                                development organization, or a 
                                nonprofit loan fund having demonstrated 
                                fiduciary integrity;
                                    ``(II) includes a description of 
                                services or goods to be sold, a 
                                marketing plan, and projected financial 
                                statements; and
                                    ``(III) may require the eligible 
                                individual to obtain the assistance of 
                                an experienced entrepreneurial adviser.
                    ``(D) Transfers to idas of family members.--Amounts 
                paid from an individual development account directly 
                into another such account established for the benefit 
                of an eligible individual who is--
                            ``(i) the individual's spouse; or
                            ``(ii) any dependent of the individual with 
                        respect to whom the individual is allowed a 
                        deduction under section 151 of the Internal 
                        Revenue Code of 1986.
            ``(9) Qualified savings of the individual for the period.--
        The term `qualified savings of the individual for the period' 
        means the aggregate of the amounts contributed by the 
        individual to the individual development account of the 
        individual during the period.
            ``(10) Secretary.--The term `Secretary' means the Secretary 
        of Health and Human Services.
            ``(11) Tribal government.--The term `tribal government' 
        means a tribal organization, as defined in section 4 of the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450b) or a Native Hawaiian organization, as defined in 
        section 9212 of the Native Hawaiian Education Act (20 U.S.C. 
        7912).

``SEC. 689. APPLICATIONS.

    ``(a) Announcement of Demonstration Projects.--Not later than 3 
months after the date of enactment of this part, the Secretary shall 
publicly announce the availability of funding under this part for 
demonstration projects and shall ensure that applications to conduct 
the demonstration projects are widely available to qualified entities.
    ``(b) Submission.--Not later than 6 months after the date of 
enactment of this part, a qualified entity may submit to the Secretary 
an application to conduct a demonstration project under this part.
    ``(c) Criteria.--In considering whether to approve an application 
to conduct a demonstration project under this part, the Secretary shall 
assess the following:
            ``(1) Sufficiency of project.--The degree to which the 
        project described in the application appears likely to aid 
        project participants in achieving economic self-sufficiency 
        through activities requiring qualified expenses. In making such 
        assessment, the Secretary shall consider the overall quality of 
        project activities in making any particular kind or combination 
        of qualified expenses to be an essential feature of any 
        project.
            ``(2) Administrative ability.--The experience and ability 
        of the applicant to responsibly administer the project.
            ``(3) Ability to assist participants.--The experience and 
        ability of the applicant in recruiting, educating, and 
        assisting project participants to increase their economic 
        independence and general well-being through the development of 
        assets.
            ``(4) Commitment of non-federal funds.--The aggregate 
        amount of direct funds from non-Federal public sector and from 
        private sources that are formally committed to the project as 
        matching contributions.
            ``(5) Adequacy of plan for providing information for 
        evaluation.--The adequacy of the plan for providing information 
        relevant to an evaluation of the project.
            ``(6) Other factors.--Such other factors relevant to the 
        purposes of this part as the Secretary may specify.
    ``(d) Preferences.--In considering an application to conduct a 
demonstration project under this part, the Secretary shall give 
preference to an application that--
            ``(1) demonstrates the willingness and ability to select 
        individuals described in section 692 who are predominantly from 
        households in which a child (or children) is living with the 
        child's biological or adoptive mother or father, or with the 
        child's legal guardian;
            ``(2) provides a commitment of non-Federal funds with a 
        proportionately greater amount of such funds committed by 
        private sector sources; and
            ``(3) targets such individuals residing within 1 or more 
        relatively well-defined neighborhoods or communities (including 
        rural communities) that experience high rates of poverty or 
        unemployment.
    ``(e) Approval.--Not later than 9 months after the date of 
enactment of this part, the Secretary shall, on a competitive basis, 
approve such applications to conduct demonstration projects under this 
part as the Secretary deems appropriate, taking into account the 
assessments required by subsections (c) and (d). The Secretary is 
encouraged to ensure that the applications that are approved involve a 
range of communities (both rural and urban) and diverse populations.
    ``(f) Contracts With Nonprofit Entities.--The Secretary may 
contract with an entity described in section 501(c)(3) of the Internal 
Revenue Code of 1986 and exempt from taxation under section 501(a) of 
such Code to conduct any responsibility of the Secretary under this 
section or section 696 if--
            ``(1) such entity demonstrates the ability to conduct such 
        responsibility; and
            ``(2) the Secretary can demonstrate that such 
        responsibility would not be conducted by the Secretary at a 
        lower cost.

``SEC. 690. DEMONSTRATION AUTHORITY; ANNUAL GRANTS.

    ``(a) Demonstration Authority.--If the Secretary approves an 
application to conduct a demonstration project under this part, the 
Secretary shall, not later than 10 months after the date of enactment 
of this part, authorize the applicant to conduct the project for 5 
project years in accordance with the approved application and the 
requirements of this part.
    ``(b) Grant Authority.--For each project year of a demonstration 
project conducted under this part, the Secretary may make a grant to 
the qualified entity authorized to conduct the project. In making such 
a grant, the Secretary shall make the grant on the first day of the 
project year in an amount not to exceed the lesser of--
            ``(1) the aggregate amount of funds committed as matching 
        contributions by non-Federal public or private sector sources; 
        or
            ``(2) $1,000,000.

``SEC. 691. RESERVE FUND.

    ``(a) Establishment.--A qualified entity under this part, other 
than a State or local government agency, or a tribal government, shall 
establish a Reserve Fund which shall be maintained in accordance with 
this section.
    ``(b) Amounts in Reserve Fund.--
            ``(1) In general.--As soon after receipt as is practicable, 
        a qualified entity shall deposit in the Reserve Fund 
        established under subsection (a)--
                    ``(A) all funds provided to the qualified entity by 
                any public or private source in connection with the 
                demonstration project; and
                    ``(B) the proceeds from any investment made under 
                subsection (c)(2).
            ``(2) Uniform accounting regulations.--The Secretary shall 
        prescribe regulations with respect to accounting for amounts in 
        the Reserve Fund established under subsection (a).
    ``(c) Use of Amounts in the Reserve Fund.--
            ``(1) In general.--A qualified entity shall use the amounts 
        in the Reserve Fund established under subsection (a) to--
                    ``(A) assist participants in the demonstration 
                project in obtaining the skills (including economic 
                literacy, budgeting, credit, and counseling) and 
                information necessary to achieve economic self-
                sufficiency through activities requiring qualified 
                expenses;
                    ``(B) provide deposits in accordance with section 
                694 for individuals selected by the qualified entity to 
                participate in the demonstration project;
                    ``(C) administer the demonstration project; and
                    ``(D) provide the research organization evaluating 
                the demonstration project under section 698 with such 
                information with respect to the demonstration project 
                as may be required for the evaluation.
            ``(2) Authority to invest funds.--
                    ``(A) Guidelines.--The Secretary shall establish 
                guidelines for investing amounts in the Reserve Fund 
                established under subsection (a) in a manner that 
                provides an appropriate balance between return, 
                liquidity, and risk.
                    ``(B) Investment.--A qualified entity shall invest 
                the amounts in its Reserve Fund that are not 
                immediately needed to carry out the provisions of 
                paragraph (1), in accordance with the guidelines 
                established under subparagraph (A).
            ``(3) Limitation on uses.--Not more than 9.5 percent of the 
        amounts provided to a qualified entity under section 698(b) 
        shall be used by the qualified entity for the purposes 
        described in subparagraphs (A), (C), and (D) of paragraph (1), 
        of which not less than 2 percent of the amounts shall be used 
        by the qualified entity for the purposes described in paragraph 
        (1)(D). If 2 or more qualified entities are jointly 
        administering a project, no qualified entity shall use more 
        than its proportional share for the purposes described in 
        subparagraphs (A), (C), and (D) of paragraph (1).
    ``(d) Unused Federal Grant Funds Transferred to the Secretary When 
Project Terminates.--Notwithstanding subsection (c), upon the 
termination of any demonstration project authorized under this section, 
the qualified entity conducting the project shall transfer to the 
Secretary an amount equal to--
            ``(1) the amounts in its Reserve Fund at time of the 
        termination; multiplied by
            ``(2) a percentage equal to--
                    ``(A) the aggregate amount of grants made to the 
                qualified entity under section 698(b); divided by
                    ``(B) the aggregate amount of all funds provided to 
                the qualified entity by all sources to conduct the 
                project.

``SEC. 692. ELIGIBILITY FOR PARTICIPATION.

    ``(a) In General.--Any individual who is a member of a household 
that is eligible for assistance under the State temporary assistance 
for needy families program established under part A of title IV of the 
Social Security Act (42 U.S.C. 601 et seq.), or that meets each of the 
following requirements shall be eligible to participate in a 
demonstration project conducted under this part:
            ``(1) Income test.--The adjusted gross income of the 
        household does not exceed the earned income amount described in 
        section 32 of the Internal Revenue Code of 1986 (taking into 
        account the size of the household).
            ``(2) Net worth test.--
                    ``(A) In general.--The net worth of the household, 
                as of the end of the calendar year preceding the 
                determination of eligibility, does not exceed $10,000.
                    ``(B) Determination of net worth.--For purposes of 
                subparagraph (A), the net worth of a household is the 
                amount equal to--
                            ``(i) the aggregate market value of all 
                        assets that are owned in whole or in part by 
                        any member of the household; minus
                            ``(ii) the obligations or debts of any 
                        member of the household.
                    ``(C) Exclusions.--For purposes of determining the 
                net worth of a household, a household's assets shall 
                not be considered to include the primary dwelling unit 
                and 1 motor vehicle owned by the household.
    ``(b) Individuals Unable To Complete the Project.--The Secretary 
shall establish such regulations as are necessary, including 
prohibiting future eligibility to participate in any other 
demonstration project conducted under this part, to ensure compliance 
with this part if an individual participating in the demonstration 
project moves from the community in which the project is conducted or 
is otherwise unable to continue participating in that project.

``SEC. 693. SELECTION OF INDIVIDUALS TO PARTICIPATE.

    ``From among the individuals eligible to participate in a 
demonstration project conducted under this part, each qualified entity 
shall select the individuals--
            ``(1) that the qualified entity deems to be best suited to 
        participate; and
            ``(2) to whom the qualified entity will provide deposits in 
        accordance with section 694.

``SEC. 694. DEPOSITS BY QUALIFIED ENTITIES.

    ``(a) In General.--Not less than once every 3 months during each 
project year, each qualified entity under this Act shall deposit in the 
individual development account of each individual participating in the 
project, or into a parallel account maintained by the qualified 
entity--
            ``(1) from the non-Federal funds described in section 
        689(c)(4), 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 the Internal Revenue Code of 1986) 
        deposited in the account by a project participant during that 
        period;
            ``(2) from the grant made under section 690(b), an amount 
        equal to the matching contribution made under paragraph (1); 
        and
            ``(3) any interest that has accrued on amounts deposited 
        under paragraph (1) or (2) on behalf of that individual into 
        the individual development account of the individual or into a 
        parallel account maintained by the qualified entity.
    ``(b) Limitation on Deposits for an Individual.--Not more than 
$2,000 from a grant made under section 690(b) shall be provided to any 
1 individual over the course of the demonstration project.
    ``(c) Limitation on Deposits for a Household.--Not more than $4,000 
from a grant made under section 690(b) shall be provided to any 1 
household over the course of the demonstration project.
    ``(d) Withdrawal of Funds.--The Secretary shall establish such 
guidelines as may be necessary to ensure that funds held in an 
individual development account are not withdrawn, except for 1 or more 
qualified expenses, or for an emergency withdrawal. Such guidelines 
shall include a requirement that a responsible official of the 
qualified entity conducting a project approve such withdrawal in 
writing. The guidelines shall provide that no individual may withdraw 
funds from an individual development account earlier than 6 months 
after the date on which the individual first deposits funds in the 
account.
    ``(e) Reimbursement.--An individual shall reimburse an individual 
development account for any funds withdrawn from the account for an 
emergency withdrawal, not later than 12 months after the date of the 
withdrawal. If the individual fails to make the reimbursement, the 
qualified entity administering the account shall transfer the funds 
deposited into the account or a parallel account under section 694 to 
the Reserve Fund of the qualified entity, and use the funds to benefit 
other individuals participating in the demonstration project involved.

``SEC. 695. LOCAL CONTROL OVER DEMONSTRATION PROJECTS.

    ``A qualified entity under this part, other than a State or local 
government agency or a tribal government, shall, subject to the 
provisions of section 697, have sole authority over the administration 
of the project. The Secretary may prescribe only such regulations or 
guidelines with respect to demonstration projects conducted under this 
part as are necessary to ensure compliance with the approved 
applications and the requirements of this part.

``SEC. 696. ANNUAL PROGRESS REPORTS.

    ``(a) In General.--Each qualified entity under this part shall 
prepare an annual report on the progress of the demonstration project. 
Each report shall include both program and participant information and 
shall specify for the period covered by the report the following 
information:
            ``(1) The number and characteristics of individuals making 
        a deposit into an individual development account.
            ``(2) The amounts in the Reserve Fund established with 
        respect to the project.
            ``(3) The amounts deposited in the individual development 
        accounts.
            ``(4) The amounts withdrawn from the individual development 
        accounts and the purposes for which such amounts were 
        withdrawn.
            ``(5) The balances remaining in the individual development 
        accounts.
            ``(6) The savings account characteristics (such as 
        threshold amounts and match rates) required to stimulate 
        participation in the demonstration project, and how such 
        characteristics vary among different populations or 
        communities.
            ``(7) What service configurations of the qualified entity 
        (such as peer support, structured planning exercises, 
        mentoring, and case management) increased the rate and 
        consistency of participation in the demonstration project and 
        how such configurations varied among different populations or 
        communities.
            ``(8) Such other information as the Secretary may require 
        to evaluate the demonstration project.
    ``(b) Submission of Reports.--The qualified entity shall submit 
each report required to be prepared under subsection (a) to--
            ``(1) the Secretary; and
            ``(2) the Treasurer (or equivalent official) of the State 
        in which the project is conducted, if the State or a local 
        government or a tribal government committed funds to the 
        demonstration project.
    ``(c) Timing.--The first report required by subsection (a) shall be 
submitted not later than 60 days after the end of the calendar year in 
which the Secretary authorized the qualified entity to conduct the 
demonstration project, and subsequent reports shall be submitted every 
12 months thereafter, until the conclusion of the project.

``SEC. 697. SANCTIONS.

    ``(a) Authority To Terminate Demonstration Project.--If the 
Secretary determines that a qualified entity under this part is not 
operating the demonstration project in accordance with the entity's 
application or the 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 demonstration project, the 
Secretary--
            ``(1) shall suspend the demonstration project;
            ``(2) shall take control of the Reserve Fund established 
        pursuant to section 691;
            ``(3) shall make every effort to identify another qualified 
        entity (or entities) willing and able to conduct the project in 
        accordance with the approved application (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 approved application 
                (or, as modified, if necessary, to incorporate the 
                recommendations) and the requirements of this part;
                    ``(B) transfer to the entity (or entities) control 
                over the Reserve Fund established pursuant to section 
                691; and
                    ``(C) consider, for purposes of this part--
                            ``(i) such other entity (or entities) to be 
                        the qualified entity (or entities) originally 
                        authorized to conduct the demonstration 
                        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 beginning on the 
        date of the termination, the Secretary has not found a 
qualified entity (or entities) described 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 authorized to conduct the 
                project, an amount that bears the same ratio to the 
                amount so remaining 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 organization to evaluate, individually and as a 
group, all qualified entities and sources participating in the 
demonstration projects conducted under this part.
    ``(b) Factors To Evaluate.--In evaluating any demonstration project 
conducted under this part, the research organization shall address the 
following factors:
            ``(1) The effects of incentives and organizational or 
        institutional support on savings behavior in the demonstration 
        project.
            ``(2) The savings rates of individuals in the demonstration 
        project based on demographic characteristics including gender, 
        age, family size, race or ethnic background, and income.
            ``(3) The economic, civic, psychological, and social 
        effects of asset accumulation, and how such effects vary among 
        different populations or communities.
            ``(4) The effects of individual development accounts 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 Federal 
        Government and to other public sector and private sector 
        investors in individual development accounts over a 5-year and 
        10-year period of time.
            ``(6) The lessons to be learned from the demonstration 
        projects conducted under this part and if a permanent program 
        of individual development accounts should be established.
            ``(7) Such other factors as may be prescribed by the 
        Secretary.
    ``(c) Methodological Requirements.--In evaluating 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, obtain 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 conduct 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 submitted 
        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 
        evaluations 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.

    ``Of the funds deposited in individual development accounts for 
eligible individuals, only the funds deposited by the individuals 
(including interest accruing on those funds) may be considered to be 
income, assets, or resources of the individuals for purposes of 
determining eligibility for, or the amount of assistance furnished 
under, any Federal 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, and 2002, to 
remain available until expended.''.

SEC. 105. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as provided in subsection (b), this 
title and the amendments made by this title shall take effect on the 
date of the enactment of this Act.
    (b) Application of Amendments.--The amendments made by this title 
shall not apply with respect to fiscal years ending before October 1, 
1998.

 TITLE II--AMENDMENTS TO THE LOW-INCOME HOME ENERGY ASSISTANCE ACT OF 
                                  1981

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Low-Income Home Energy Assistance 
Amendments of 1998''.

SEC. 202. AUTHORIZATION.

    (a) In General.--Section 2602(b) of the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended by inserting ``, 
$1,100,000,000 for fiscal year 2000, and such sums as may be necessary 
for fiscal year 2001'' after ``1995 through 1999''.
    (b) Program Year.--Section 2602(c) of such Act (42 U.S.C. 8621(c)) 
is amended to read as follows:
    ``(c) Amounts appropriated under this section in any fiscal year 
for programs and activities under this title shall be made available 
for obligation in the succeeding fiscal year.''.
    (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 by striking ``for each of the fiscal 
years 1996'' and all that follows through the period at the end, and 
inserting ``for each of the fiscal years 1999, 2000, and 2001.''.
    (d) Technical Amendment.--Section 2602(e) of such Act (42 U.S.C. 
8621(e)) is amended by striking ``subsection (g)'' and inserting 
``subsection (e) of such section''.

SEC. 203. DEFINITIONS.

    Section 2603(4) of the Low-Income Home Energy Assistance Act of 
1981 (42 U.S.C. 8622(4)) is amended--
            (1) by striking ``the term'' and inserting ``The term''; 
        and
            (2) by striking the semicolon and inserting a period.

SEC. 204. NATURAL DISASTERS AND OTHER EMERGENCIES.

    (a) Definitions.--Section 2603 of the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8622) is amended--
            (1) by redesignating paragraphs (6) through (9) as 
        paragraphs (8) through (11), respectively;
            (2) by inserting before paragraph (8) (as redesignated in 
        paragraph (1)) the following:
            ``(7) Natural disaster.--The term `natural disaster' means 
        a weather event (relating to cold or hot weather), flood, 
        earthquake, tornado, hurricane, or ice storm, or an event 
        meeting such other criteria as the Secretary, in the discretion 
        of the Secretary, may determine to be appropriate.'';
            (3) by redesignating paragraphs (1) through (5) as 
        paragraphs (2) through (6), respectively; and
            (4) by inserting before paragraph (2) (as redesignated in 
        paragraph (3)) the following:
    ``(1) Emergency.--The term `emergency' means--
            ``(A) a natural disaster;
            ``(B) a significant home energy supply shortage or 
        disruption;
            ``(C) a significant increase in the cost of home energy, as 
        determined by the Secretary;
            ``(D) a significant increase in home energy disconnections 
        reported by a utility, a State regulatory agency, or another 
        agency with necessary data;
            ``(E) a significant increase in participation in a public 
        benefit program such as the food stamp program carried out 
        under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), the 
        national program to provide supplemental security income 
        carried out under title XVI of the Social Security Act (42 
        U.S.C. 1381 et seq.), or the State temporary assistance for 
        needy families program carried out under part A of title IV of 
        the Social Security Act (42 U.S.C. 601 et seq.), as determined 
        by the head of the appropriate Federal agency;
            ``(F) a significant increase in unemployment, layoffs, or 
        the number of households with an individual applying for 
        unemployment benefits, as determined by the Secretary of Labor; 
        or
            ``(G) an event meeting such criteria as the Secretary, in 
        the discretion of the Secretary, may determine to be 
        appropriate.''.
    (b) Considerations.--Section 2604(g) of such Act (42 U.S.C. 
8623(g)) is amended by striking the last 2 sentences and inserting the 
following: ``In determining whether to make such an allotment to a 
State, the Secretary shall take into account the extent to which the 
State was affected by the natural disaster or other emergency involved, 
the availability to the State of other resources under the program 
carried out under this title or any other program, whether a Member of 
Congress has requested that the State receive the allotment, and such 
other factors as the Secretary may find to be relevant. Not later than 
30 days after making the determination, but prior to releasing an 
allotted amount to a State, the Secretary shall notify Congress of the 
allotments made pursuant to this subsection.''.

SEC. 205. STATE ALLOTMENTS.

    Section 2604 of the Low-Income Home Energy Assistance Act of 1981 
(42 U.S.C. 8623) is amended--
            (1) in subsection (b)(1), by striking ``the Northern 
        Mariana Islands, and the Trust Territory of the Pacific 
        Islands.'' and inserting ``and the Commonwealth of the Northern 
        Mariana Islands.'';
            (2) in subsection (c)(3)(B)(ii), by striking 
        ``application'' and inserting ``applications'';
            (3) by striking subsection (f);
            (4) in the first sentence of subsection (g), by striking 
        ``(a) through (f)'' and inserting ``(a) through (d)''; and
            (5) by redesignating subsection (g) as subsection (e).

SEC. 206. ADMINISTRATION.

    Section 2605 of the Low-Income Home Energy Assistance Act of 1981 
(42 U.S.C. 8624) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (9)(A), by striking ``and not 
                transferred pursuant to section 2604(f) for use under 
                another block grant'';
                    (B) in paragraph (14), by striking ``; and'' and 
                inserting a semicolon;
                    (C) in the matter following paragraph (14), by 
                striking ``The Secretary may not prescribe the manner 
                in which the States will comply with the provisions of 
                this subsection.''; and
                    (D) in the matter following paragraph (16), by 
                inserting before ``The Secretary shall issue'' the 
                following: ``The Secretary may not prescribe the manner 
                in which the States will comply with the provisions of 
                this subsection.''; and
            (2) in subsection (c)(1)--
                    (A) in subparagraph (B), by striking ``States'' and 
                inserting ``State''; and
                    (B) in subparagraph (G)(i), by striking ``has'' and 
                inserting ``had''; and
            (3) in paragraphs (1) and (2)(A) of subsection (k) by 
        inserting ``, particularly those low-income households with the 
        lowest incomes that pay a high proportion of household income 
        for home energy'' before the period.

SEC. 207. PAYMENTS TO STATES.

    Section 2607(b)(2)(B) of the Low-Income Home Energy Assistance Act 
of 1981 (42 U.S.C. 8626(b)(2)(B)) is amended--
            (1) in the first sentence, by striking ``and not 
        transferred pursuant to section 2604(f)''; and
            (2) in the second sentence, by striking ``but not 
        transferred by the State''.

SEC. 208. RESIDENTIAL ENERGY ASSISTANCE CHALLENGE OPTION.

    (a) Evaluation.--The Comptroller General 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 shall prepare and submit to Congress 
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 subsection (b) of such section 2607B.
    (c) Incentive Grants.--Section 2607B(b)(1) of the Low-Income Home 
Energy Assistance Act of 1981 (42 U.S.C. 8626b(b)(1)) is amended by 
striking ``For each of the fiscal years 1996 through 1999'' and 
inserting ``For each fiscal year''.
    (d) Technical Amendments.--Section 2607B of such Act (42 U.S.C. 
8626b) is amended--
            (1) in subsection (e)(2)--
                    (A) by redesignating subparagraphs (F) through (N) 
                as subparagraphs (E) through (M), respectively; and
                    (B) in clause (i) of subparagraph (I) (as 
                redesignated in subparagraph (A)), by striking ``on'' 
                and inserting ``of''; and
            (2) by redesignating subsection (g) as subsection (f).
            Amend the title so as to read: ``A bill to amend the 
        Community Services Block Grant Act to reauthorize and make 
        improvements to that Act; and to amend the Low-Income Home 
        Energy Assistance Act of 1981 to reauthorize and make 
        improvements to that Act.''.