1.Short title; table of
contents
(a)This Act may be cited
as the National Opportunity and
Community Renewal Act
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Purposes.
Sec. 4. Definitions.
TITLE I—National and Local Opportunity Boards
Sec. 101. National Opportunity Board.
Sec. 102. Local Opportunity Boards.
TITLE II—National Competition for Community Renewal
Sec. 201. Establishment.
Sec. 202. Duration.
Sec. 203. Local opportunity funds.
Sec. 204. Grant awards.
Sec. 205. Waiver program.
Sec. 206. Tax incentives.
Sec. 207. Application and administration.
TITLE III—Community renewal incentives
Sec. 301. Community renewal savings.
Sec. 302. Community tax incentives.
Sec. 303. Renewal employer refundable credit.
Sec. 304. Unrelated business taxable income
deduction.
Sec. 305. Qualified community renewal contribution.
Sec. 306. High school graduation tax credit.
Sec. 307. Modified new markets tax credit.
Sec. 308. Earned income tax credit.
Sec. 309. Community renewal bonds.
Sec. 310. Anti-corruption provision.
TITLE IV—Competitions for innovation in client advocacy and
evaluation
Sec. 401. Client advocacy competition.
Sec. 402. Evaluation competition.
TITLE V—Report to Congress
Sec. 501. Report to Congress.
TITLE VI—Authorization of appropriations
Sec. 601. Authorization of appropriations.
2.Congress makes the following
findings:
(1)Recent data found
that 43,600,000 Americans were living in poverty, with nearly 15,500,000
children living in poverty.
(2)The 2009 Federal
Poverty Level for a household of 4 was set at $22,050.
(3)The Federal
Government alone spends approximately $700,000,000,000 on poverty programs,
with an additional $200,000,000,000 expended by States.
(4)Poverty in America
has changed remarkably since the last major transformative policy debate on the
issue.
(5)The 1996 welfare
reform bill ultimately did not create new systems nor did it drive market-based
solutions.
(6)The economic
downturn has exposed the weakness of poverty reduction programs that are not
market-driven.
(7)Effective and
meaningful investment in poverty prevention programs will result in greater
efficiencies at the Federal level.
3.It is the purpose of this Act to—
(1)establish a
National Competition for Community Renewal to allow eligible communities to
draw upon existing and supplemental resources to design and implement
innovative poverty reduction and prevention programs;
(2)significantly
reduce the number of people in America living in poverty while also reducing
the total amount of Federal dollars spent on poverty reduction;
(3)refocus
poverty-related services toward an asset model that enables and supports each
individual to reach his or her full potential; and
(4)encourage
innovation in designing poverty reduction and prevention services and models in
American communities, and to assess the successes and failures of innovative
designs and non-traditional service delivery models.
4.In this Act:
(1)The
term Board means the National Opportunity Board established under
section 101.
(2)The term eligible area means a city, county,
town, township, parish, village, or other general purpose political subdivision
of a State, including the District of Columbia and insular areas, that meets
criteria to be established under this Act by the Board.
(3)The
term holistic means encompassing health, education, labor,
housing, justice and food.
(4)The term Human Development Index
means a summary composite index that measures an area’s average achievements in
3 basic aspects of human development (health, knowledge, and a decent standard
of living) and is currently calculated on a global scale by the United Nations
Development Program and other organizations.
(5)The term local governing body means the
executive office of any city, county, town, township, parish, village, or other
general purpose political subdivision of a State, including the District of
Columbia and insular areas.
(6)The term Local Opportunity Plan
means a detailed spending plan, to be developed by the Local Opportunity Board
and submitted to the National Opportunity Board under guidelines to be
established by the National Opportunity Board.
(7)The term National Competition means the
National Competition for Community Renewal established under title II.
(8)The term program period means a period of 5
years, beginning on the date of the selection of an eligible area by the
Board.
(9)The term qualified area means an eligible area
that has been approved under the National Competition by the Board.
(10)Qualified
military installationThe term qualified military
installation means any military installation or facility the number of
members of the Armed Forces of the United States assigned to which, as of the
date of enactment of this Act, is not less than 1,000.
(11)Responsible
local officialThe term responsible local official
means the local official appointed by the Local Opportunity Board to administer
the funds in the local opportunity fund for the qualified area involved. Such
official shall be so appointed if such official is responsible for
administering the majority of funding under the waived programs specified under
section 203(b)(2)(B) for the area involved.
(12)The term rural area means an eligible area
within a public use microdata area that meets the definition of rural
area
as determined by the Census Bureau for the most recent Census for
which data is available.
<enum>I</enum><header>National and Local
Opportunity Boards</header>
<section id="H7904952BCEB645519FC7566CF56BF7E5"><enum>101.</enum><header>National
Opportunity Board</header>
<subsection id="H0F6E0A32C79E46418260A00743738C88"><enum>(a)</enum><header>Establishment</header><text>There
is established a bipartisan, independent entity to be known as the
<quote>National Opportunity Board</quote> to develop and administer the
National Competition.</text>
</subsection><subsection id="H7D4624263D78454FB6911A616880B484"><enum>(b)</enum><header>Composition</header><text>The
Board shall be composed of 7 members, of which—</text>
<paragraph id="H7902F1C2BAC2426AA36BAD21BB485BCC"><enum>(1)</enum><text>1
member shall be the President's Domestic Policy Advisor;</text>
</paragraph><paragraph id="HA6B30832B4334694AAD295C026ED5522"><enum>(2)</enum><text>1
member shall be appointed by the President in consultation with the Majority
and Minority leaders of the House of Representatives and the Senate, who shall
serve as the Chair of the Board;</text>
</paragraph><paragraph id="H64F09C9C77804197B9AA16C0C909957C"><enum>(3)</enum><text>1
member shall be appointed by the Minority Leader of the Senate in consultation
with the Minority Leader of the House of Representatives, who shall serve as
the Vice-Chair of the Board;</text>
</paragraph><paragraph id="HF118EDC7F6164C1199412693B5EC8068"><enum>(4)</enum><text>1
member shall be appointed by the senior Democratic member of the Senate
leadership;</text>
</paragraph><paragraph id="HCA177AC28C51417B8FB0FC3A0071F197"><enum>(5)</enum><text>1
member shall be appointed by the senior Republican member of the Senate
leadership;</text>
</paragraph><paragraph id="HC8949625D2764A6F9BCB936E2BDF5E61"><enum>(6)</enum><text>1
member shall be appointed by the senior Democratic member of the House of
Representatives leadership; and</text>
</paragraph><paragraph id="HB35ED96DA0DB4721A567C54E72AE1F2F"><enum>(7)</enum><text>1
member shall be appointed by the senior Republican member of the House of
Representatives leadership.</text>
</paragraph></subsection><subsection id="H2B55760F9041431CAC9A4654DEDA0487"><enum>(c)</enum><header>Appointments</header><text>The
members appointed to the Board under subsection (b) shall, to the extent
practicable, include—</text>
<paragraph id="HEDA6DA5D0E7D4573A7B89E81977E1B70"><enum>(1)</enum><text>representatives of
non-profit organizations;</text>
</paragraph><paragraph id="H839E040B4838486F938CD08392688FDE"><enum>(2)</enum><text>members of the
poverty reduction advocacy community;</text>
</paragraph><paragraph id="HBAFCC31310D64DDC8DF08F8B2F3D20BA"><enum>(3)</enum><text>experts in the
area of philanthropic giving; and</text>
</paragraph><paragraph id="H73AF52BB3C7642E3B7E268C8A7A7D4E2"><enum>(4)</enum><text>members with
experience relative to local government administration.</text>
</paragraph></subsection><subsection id="HCD94BD7A72494D5A92AEF8D39DC97E62"><enum>(d)</enum><header>Ex officio
members</header>
<paragraph id="H7DD467BDBA214010A588973CD7234BC4"><enum>(1)</enum><header>In
general</header><text>The following individuals or their designees shall serve
as ex officio members of the Board:</text>
<subparagraph id="H7D08498ACEF74F23ABF574D205D98F26"><enum>(A)</enum><text>The Secretary of
Health and Human Services;</text>
</subparagraph><subparagraph id="HC15BC9109E0F4A3280E9AA36638D1469"><enum>(B)</enum><text>The Secretary of
Commerce;</text>
</subparagraph><subparagraph id="H5DF8732AA76A4E80B1CEC3EE1BE649A7"><enum>(C)</enum><text>The Secretary of
Housing and Urban Development;</text>
</subparagraph><subparagraph id="H8ADC1366F73748F99CC95D207B040329"><enum>(D)</enum><text>The Secretary of
Labor;</text>
</subparagraph><subparagraph id="HF5EB4D55F7D84C6A90CF19F5526ADB88"><enum>(E)</enum><text>The Secretary of
Agriculture; and</text>
</subparagraph><subparagraph id="H49AA33E9C0B64DE98506A39EA7FB199E"><enum>(F)</enum><text>The Attorney
General.</text>
</subparagraph></paragraph><paragraph id="H667938B0A2E94CC0ACCAE483DB1F74C0"><enum>(2)</enum><header>Limitations</header><text>Ex
officio members of the board shall—</text>
<subparagraph id="HFA8F8B086503433E88BAC32FDEEFEFB0"><enum>(A)</enum><text>not have a vote
with respect to the activities of the Board; and</text>
</subparagraph><subparagraph id="HA41452CA0BF74A3FAA65C7ECFA00682E"><enum>(B)</enum><text>be required to
attend all meetings of the Board.</text>
</subparagraph></paragraph><paragraph id="H14C8DF2882A5492DAC9CC96E79A5F282"><enum>(3)</enum><header>Designees</header><text>An
individual who is not at least an Assistant Secretary may not be designated to
serve as an ex officio member of the Board under paragraph (1).</text>
</paragraph></subsection><subsection id="H30C504099C364C0BA7128A2109ACC7B5"><enum>(e)</enum><header>Dismissal,
quorum, vacancies</header>
<paragraph id="HEE03895E5B8F4348B3597E1F13668173"><enum>(1)</enum><header>In
general</header><text>Each member of the Board appointed under subsection (b)
shall serve for a term of 6 years, except that—</text>
<subparagraph id="H0BBC5E1892944D90A1F1DD325E5D8680"><enum>(A)</enum><text>a member of the
Board may be removed by a unanimous vote of all remaining voting members of the
Board, and only for cause;</text>
</subparagraph><subparagraph id="H17896D3659254421B0B84924ECD173CE"><enum>(B)</enum><text>if an individual
is appointed to fill a vacancy occurring prior to the expiration of the term of
the individual’s predecessor, that individual shall serve only for the
remainder of the predecessor’s term; and</text>
</subparagraph><subparagraph id="HFED843B170CC45EDB2D0671B875E784B"><enum>(C)</enum><text>any such
appointment to fill a vacancy shall be made within 60 days after the vacancy
occurs and shall be made in the same manner in which the original appointment
was made.</text>
</subparagraph></paragraph><paragraph id="H4523009E8EC543F2AA9F9ADEA85F99E6"><enum>(2)</enum><header>Quorum</header><text>A
majority of the members of the Board appointed under subsection (b) shall
constitute a quorum to conduct business.</text>
</paragraph><paragraph id="H2CD385B2EACD4E6794B447A84F13F11E"><enum>(3)</enum><header>Meetings</header><text>The
Board shall meet at the call of the Chair or a majority of the members
appointed under subsection (b), and commence operations as soon as practicable
and after its initial meeting.</text>
</paragraph></subsection><subsection id="HFE5AC7ECB8F644378B4F3E139AD9ABF1"><enum>(f)</enum><header>Duties</header><text></text>
<paragraph id="H30EC612A7E72494DBC877917089B0D5D"><enum>(1)</enum><header>Guidelines for
the National Competition</header><text>The Board shall design and establish
written guidelines for establishing and implementing the National Competition,
including the following:</text>
<subparagraph id="H587DDA067070455F958CBDD2AB7AEA40"><enum>(A)</enum><text>Criteria for
establishing eligible areas, including—</text>
<clause id="HCBB3BD0AB4E442C388D10050AD742B4E"><enum>(i)</enum><text>to
the extent practicable, the use by the Board of the Human Development Index or
the Supplemental Poverty Measurement to be established by the Census Bureau as
a criteria for determining eligible areas; and</text>
</clause><clause id="HAC62C997BDE64615BB41DB7355525310"><enum>(ii)</enum><text>the
demonstrated ability of a Local Opportunity Board to provide local matching
funds as established under section 204(e).</text>
</clause></subparagraph><subparagraph id="H5F12C795541C48E8840729F4205DCDA7"><enum>(B)</enum><text>Application
requirements to enable eligible areas to apply for grants and other assistance
under the National Competition, including the design and content of the Local
Opportunity Plan, as described in subsection 102(d)(1).</text>
</subparagraph><subparagraph id="H212D8A30C5084D4EA3D6CD30F148FD93"><enum>(C)</enum><text>Criteria for
evaluating applications submitted under the National Competition.</text>
</subparagraph><subparagraph id="H27E7AAE206BB4F6684D3B4258995E001"><enum>(D)</enum><text>Eligible program
development costs.</text>
</subparagraph><subparagraph id="H73144BA98DB84877AD7E63B49B149190"><enum>(E)</enum><text>Criteria for
accountability measures for eligible areas selected to participate in the
National Competition.</text>
</subparagraph><subparagraph id="H45AE29868A6647018ED987A00197ACBC"><enum>(F)</enum><text>Reporting
requirements for eligible areas selected to participate in the National
Competition.</text>
</subparagraph></paragraph><paragraph id="H9131863122B543AEB9E2273EFE5C3202"><enum>(2)</enum><header>Rulemaking</header><text>The
Board shall have the authority to promulgate regulations for establishment and
administration of the National Competition.</text>
</paragraph><paragraph id="HD45188A880A747A5B74C2A27C707AF2C"><enum>(3)</enum><header>Administration
of National Competition</header><text>The Board shall administer the National
Competition, including—</text>
<subparagraph id="HA7CBA6BF3A9B467090028D555F112CE0"><enum>(A)</enum><text>awarding funding
and waivers to eligible areas based on developed criteria; and</text>
</subparagraph><subparagraph id="H5120625D7BCC4211AC414B8370F86F06"><enum>(B)</enum><text>evaluating the
performance of participating eligible areas in accordance with this
section.</text>
</subparagraph></paragraph><paragraph id="H8DA5AA7010E54F8D9BC205BA5E9AADC7"><enum>(4)</enum><header>Evaluations</header><text></text>
<subparagraph id="H99D73F79CA5146FEA8EB6882184E5EA0"><enum>(A)</enum><header>In
general</header><text>Not later than 3 years after the date of enactment of
this Act, and annually thereafter, the Local Opportunity Board shall submit to
the National Opportunity Board a comprehensive report on the implementation of
a spending plan as described in section 102(d)(1)(A).</text>
</subparagraph><subparagraph id="HC338422BE96F441B80F2D405272B5D5E"><enum>(B)</enum><header>Cancellation of
award</header><text>Based on information received in the report under
subparagraph (A), the National Opportunity Board may revoke funding and access
to benefits provided under title II if the Board determines that—</text>
<clause id="H8709D381FBE9487B9C07C0849E893D1D"><enum>(i)</enum><text>the
Local Opportunity Board of the qualified area fails to provide the information
required under subparagraph (A), or the information provided by the chief
elected official is inadequate;</text>
</clause><clause id="H87AFDCE936F346EAA47480F4D648C1D2"><enum>(ii)</enum><text>the
Local Opportunity Board of the qualified area failed to comply with the
provisions established under the Local Opportunity Plan as established under
section 102(d)(1); or</text>
</clause><clause id="HAE8A4C3A520646C9A76AEBC2A0C8706A"><enum>(iii)</enum><text>the Local
Opportunity Board of the qualified area failed to meet any additional criteria
to be established by the National Opportunity Board.</text>
</clause></subparagraph><subparagraph id="H53501FC07A844048A30B31E9BF305ABF"><enum>(C)</enum><header>Repayment of
amounts</header><text>The National Opportunity Board may, in accordance with
this subsection, require a qualified area to repay any amounts that were not
expended by the qualified area in accordance with the Local Opportunity Plan as
established under section 102(d)(1), and any such funds shall be returned to
the general fund of the Treasury.</text>
</subparagraph><subparagraph id="H7F9F3576B0794A83A6823AA52208808E"><enum>(D)</enum><header>Guidelines</header><text>The
National Opportunity Board shall establish guidelines for the conduct of an
independent audit, after the second program year, of any qualified area
participating in the National Competition. Such guidelines shall require that
the qualified area be audited in accordance with generally accepted auditing
standards by independent certified public accountants and that all books,
accounts, financial records, reports, and files necessary to facilitate the
audits shall be made available to the person or persons conducting the
audits.</text>
</subparagraph></paragraph></subsection><subsection id="H4903E83F6DF444749C6E5A272D758700"><enum>(g)</enum><header>Personnel
matters</header><text></text>
<paragraph id="HC6843E568289426596AC81EBD6DC62E8"><enum>(1)</enum><header>Compensation and
expenses</header><text></text>
<subparagraph id="H0B40BF5F615C4BB990403C122D46B6F9"><enum>(A)</enum><header>In
general</header><text>Except as provided in this paragraph, a member of the
Board shall serve without compensation.</text>
</subparagraph><subparagraph id="HCF4B4AC9D60F46A68152B95B11F81E41"><enum>(B)</enum><header>Travel
expenses</header><text>Each member of the Board shall be reimbursed for travel
and per diem in lieu of subsistence expenses during the performance of duties
of the Board while away from home or his or her regular place of business, in
accordance with applicable provisions under subchapter I of chapter 57 of title
5, United States Code.</text>
</subparagraph><subparagraph id="H59C7B8CA5B8E4F0FA8FC1AE9E7129CF8"><enum>(C)</enum><header>Federal
employees</header><text>A member of the Board who is an officer or employee of
the Federal Government shall serve without compensation in addition to the
compensation received for the services of the member as an officer or employee
of the Federal Government.</text>
</subparagraph></paragraph><paragraph id="H4BC2D7B0838C4802A11DC47636D62F21"><enum>(2)</enum><header>Staff</header><text>Subject
to such rules as the Board may prescribe, the Chair of the Board, without
regard to the provisions of title 5, United States Code, governing appointments
in the competitive service, and without regard to the provisions of chapter 51
and subchapter III of chapter 53 of such title (relating to classification and
General Schedule pay rates), may appoint and fix the pay of a staff director
and such other personnel as may be necessary to enable the Board to carry out
its functions; except that no rate of pay fixed under this subsection may
exceed the maximum rate of basic pay payable for GS–15 of the General
Schedule.</text>
</paragraph><paragraph id="HD3E008A247E64C64B5D85BAAFA9A1631"><enum>(3)</enum><header>Staff of Federal
agencies</header><text>Upon request of the Chair of the Board, the head of any
department or agency described under section 101(d) may detail, on a
non-reimbursable basis, any of the personnel of that department or agency to
the Board to assist it in carrying out its functions under this Act.</text>
</paragraph></subsection><subsection id="H199A2F006ABA4984AAE91EE57848E3C2"><enum>(h)</enum><header>Authorization of
appropriations</header><text>For the purposes of carrying out this section,
there are authorized to be appropriated $1,000,000 for fiscal year 2011, and
$2,500,000 each of fiscal years 2012 through 2016.</text>
</subsection></section><section id="H1AAC67307317403BB128C3113BE611A3"><enum>102.</enum><header>Local
Opportunity Boards</header>
<subsection id="H5B7BDCDE22DD4F2D892C05F152AAF61C"><enum>(a)</enum><header>Establishment</header><text>To
be eligible to receive funds under this Act, the chief elected official of an
eligible area shall establish a Local Opportunity Board.</text>
</subsection><subsection id="H71FBDC7F6E5143B888997446D291BC16"><enum>(b)</enum><header>Composition</header><text>The
Local Opportunity Board shall consist of not more than 5 members, to be
appointed by the chief elected official of the eligible area, and shall include
representatives of—</text>
<paragraph id="HA7A84F8C827A42768E2129FFE1672712"><enum>(1)</enum><text>State
government;</text>
</paragraph><paragraph id="H8F9A672E8E954932BE82EED3F46FF3CF"><enum>(2)</enum><text>non-elected
community leaders, particularly those providing poverty-related services,
including advocates and experts; and</text>
</paragraph><paragraph id="H2AE3D0D4BDDF4F5881672B0181140B8C"><enum>(3)</enum><text>the head of the
lead agency (or his or her designee) in one or more of the following programs
operating in the eligible area—</text>
<subparagraph id="H9E165ED52BE94A68BD4F60CDD0694E60"><enum>(A)</enum><text>health
programs;</text>
</subparagraph><subparagraph id="H95966E22D04D4C2CBA44D00A24A1FB0A"><enum>(B)</enum><text>labor
programs;</text>
</subparagraph><subparagraph id="HFDFC475547994F2384785C6F33ED4648"><enum>(C)</enum><text>housing
programs;</text>
</subparagraph><subparagraph id="HD418CE157DAC4E80B95FE67D077F46A0"><enum>(D)</enum><text>agriculture
programs;</text>
</subparagraph><subparagraph id="H9FDB610ED9414DEDABA02200B001B56B"><enum>(E)</enum><text>justice programs;
or</text>
</subparagraph><subparagraph id="H9E289B85A1CF4D4FBD081C31E4D2F0FC"><enum>(F)</enum><text>commerce
programs.</text>
</subparagraph></paragraph></subsection><subsection id="H6B1CC3DB36484A7DB30D84851EDF8B79"><enum>(c)</enum><header>Chair</header><text>The
members of the Local Opportunity Board shall select a Chair form among such
members.</text>
</subsection><subsection id="H6069C3D5B6464843A5291A698757EE37"><enum>(d)</enum><header>Duties</header><text>The
Local Opportunity Board shall—</text>
<paragraph id="H274C7EEB98D04DB1838286C6A0988E67"><enum>(1)</enum><text>develop and submit
to the Board a Local Opportunity Plan, that at a minimum includes—</text>
<subparagraph id="H78BD6079D0634664BF656E99E3A3EE5D"><enum>(A)</enum><text>a detailed
spending plan for any funds approved under the National Competition by the
Board;</text>
</subparagraph><subparagraph id="HC9238FFF64B9435BBF3A4908CD8ED625"><enum>(B)</enum><text>a description of
how the spending plan meets the criteria listed for grant eligibility as
defined by the Board and including the criteria listed in section
205(a);</text>
</subparagraph><subparagraph id="HC6EB51336E0D44B087C890BF6255B234"><enum>(C)</enum><text>a description of
coordination with other Federal, State, and local government assistance
programs available in the jurisdiction in which the eligible area is located;
and</text>
</subparagraph><subparagraph id="H66B0BF44DD42408090F1258485EC9958"><enum>(D)</enum><text>any other elements
as required by the Board;</text>
</subparagraph></paragraph><paragraph id="HBA9CEF49034049349C10DE038CE67933"><enum>(2)</enum><text>submit an
application (including the Local Opportunity Plan), pursuant to guidelines
established by the Board, to the Board for approval; and</text>
</paragraph><paragraph id="H609187E6F26640D786137064F78E14C0"><enum>(3)</enum><text>establish a
reporting system, as described in section 101(f)(1)(F), through which the Chair
of the Local Opportunity Board shall report to the National Opportunity Board
in compliance with that subsection.</text>
</paragraph></subsection></section><enum>II</enum><header>National
Competition for Community Renewal</header>
<section id="HE3833313C89B439CAC536C05559FEBD7"><enum>201.</enum><header>Establishment</header><text display-inline="no-display-inline">The Board shall develop and publish
guidelines for the establishment of the National Competition for Community
Renewal to provide for the awarding of competitive grants, targeted waivers,
and targeted tax incentives.</text>
</section><section id="H833AA465756545DA9BD74256AAD8A768"><enum>202.</enum><header>Duration</header><text display-inline="no-display-inline">The National Competition shall be effective
beginning with the first fiscal year that begins after the date of enactment of
this Act and ending after the fifth such fiscal year.</text>
</section><section id="H0EB18271309644AA81EDDD16AECB18D2"><enum>203.</enum><header>Local
opportunity funds</header>
<subsection id="H4BF52A9719B645D1859142DFD6A39924"><enum>(a)</enum><header>Establishment</header><text>To
be eligible to receive assistance under this Act, the Local Opportunity Board
for the qualified area shall—</text>
<paragraph id="H53E9EBD76E8042BE90D07E7280285D41"><enum>(1)</enum><text>establish a local
opportunity fund; and</text>
</paragraph><paragraph id="HBF3893C69D134DADAF6220D9B95D29BC"><enum>(2)</enum><text>otherwise comply
with the requirements of this section.</text>
</paragraph></subsection><subsection id="H79478BDA34EA4D4EA70B838292ED18FB"><enum>(b)</enum><header>Amounts in
fund</header><text></text>
<paragraph id="H701487328A8C47EAA49488285EFFE36C"><enum>(1)</enum><header>In
general</header><text>Prior to awarding a grant to a qualified area under
section 204, the Local Opportunity Board of the qualified area shall have
established a local opportunity fund.</text>
</paragraph><paragraph id="H820CDC8BFD26407285B33B5CB357EA5A"><enum>(2)</enum><header>Deposits</header><text>There
shall be deposited into the local opportunity fund the following:</text>
<subparagraph id="HCFD3EA7FFEFE4132B6181F29608610B6"><enum>(A)</enum><text>Any funds provided
to the qualified area under the grant program established under section
204.</text>
</subparagraph><subparagraph id="H6C78C704358B4834936A72FFC23837DD"><enum>(B)</enum><text>Funds made
available for use during the program period in the qualified area under the
following:</text>
<clause id="HBBAB859F289D4FE184D51537758E3E8F"><enum>(i)</enum><text>The
Community Services Block Grant Act (42 U.S.C. 9901 et seq.).</text>
</clause><clause id="H2EFEA577849648A581F38EB27CEA7A36"><enum>(ii)</enum><text>The
Head Start Act (42 U.S.C. 9831 et seq.).</text>
</clause><clause id="H1586F5F359004982821CF199BB543D88"><enum>(iii)</enum><text>The Low-Income
Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.).</text>
</clause><clause id="H913DF5330B4D4B25BAD21520A06B2D89"><enum>(iv)</enum><text>The
supplemental nutrition assistance program under the Richard B. Russell National
School Lunch Act (7 U.S.C. 2011 et seq.).</text>
</clause><clause id="H6A168E7A7D794DFBACB3F1C40D58DD36"><enum>(v)</enum><text>The
Weatherization Assistance for Low-Income Persons Program under the Energy
Conservation and Production Act (42 U.S.C. 6861 et seq.).</text>
</clause><clause id="HC04A2682174C4C93954899E1FBED5B09"><enum>(vi)</enum><text>The
Jobs Corps program under subtitle C of title I of the Workforce Investment Act
of 1998 (29 U.S.C. 2881 et seq.).</text>
</clause><clause id="HA2439B92B2E84071BB359D941405555B"><enum>(vii)</enum><text>The Temporary
Assistance to Needy Families Program under title IV of the Social Security Act
(42 U.S.C. 601 et seq.).</text>
</clause><clause id="H3D755AE48BC2497FBEAA92CBE29FC96F"><enum>(viii)</enum><text>The Workforce
Investment Act of 1998 (29 U.S.C. 2801 et seq.).</text>
</clause></subparagraph><subparagraph id="H9D7724CFDE32472F8A50CCEDBB765DBD"><enum>(C)</enum><text>Any matching funds
provided by the qualified area.</text>
</subparagraph></paragraph></subsection><subsection id="H19B4540DA4A94604A27A7FA6B5B1AE8A"><enum>(c)</enum><header>Accounting
regulations</header><text>The Board shall promulgate regulations with respect
to accounting for the amounts in the local opportunity funds established under
subsection (a).</text>
</subsection><subsection id="HE0C3C50DBF9B4D2EA459B6EB1443E8E6"><enum>(d)</enum><header>Use of
funds</header><text>The responsible local official shall have a fiduciary
responsibility to administer funds in the local opportunity fund established
under subsection (a)—</text>
<paragraph id="HE9414385C1994A9D8FB38DDD21994768"><enum>(1)</enum><text>in accordance with
the Local Opportunity Plan (as approved by the Board); and,</text>
</paragraph><paragraph id="HBEB3AE52B72D4DACA7D0D59076B09613"><enum>(2)</enum><text>notwithstanding
the provisions of law referred to in subsection (b)(2)(B).</text>
</paragraph></subsection><subsection id="H0B395E5B39A64F2C90F15C33E69725E8"><enum>(e)</enum><header>State
funds</header><text>The Local Opportunity Plan described in section 102(d)(1)
shall provide satisfactory assurance that Federal funds and assistance made
available under this title shall not be comingled with State funds, except as
provided for under subsection (b)(2)(C).</text>
</subsection></section><section id="HC3A9B63553F541DC82C4E62E379E55A6"><enum>204.</enum><header>Grant
awards</header>
<subsection id="H77DE364049AC43B9924B956CDF149AB6"><enum>(a)</enum><header>Authorization</header><text>The
Board shall award competitive grants to qualified areas that meet criteria to
be established by the Board.</text>
</subsection><subsection id="H81F3CC15FF9148289782A7BDB8B39752"><enum>(b)</enum><header>Administration</header><text>Amount
made available under a grant under this section to a qualified area shall be
deposited in the local opportunity fund established by the chief elected
official for the qualified area.</text>
</subsection><subsection id="HF0CDE0DD23B74ACA9AF320DBECE9B759"><enum>(c)</enum><header>Amount</header><text>The
amount of a grant under this section shall not exceed $10,000,000.</text>
</subsection><subsection id="HB271B0C775484B059DC3CEEAC98A8C10"><enum>(d)</enum><header>Use of
amounts</header><text>The responsible local official shall have a fiduciary
responsibility to administer funds in accordance with the priorities
established in the Local Opportunity Plan by the Local Opportunity Board and
approved by the National Opportunity Board.</text>
</subsection><subsection id="H8D03D24A3AB2444680514207356985F3"><enum>(e)</enum><header>Matching
fund</header><text></text>
<paragraph id="H32CDD316E75645E9A5B8806481D84513"><enum>(1)</enum><header>In
general</header><text>The Board may require a qualified area to provide
non-Federal matching funds with respect to grants awarded under this section,
except that the amount of any matching requirements shall not exceed the amount
of the grant award.</text>
</paragraph><paragraph id="HA6FFAA905B914F468184352A51338668"><enum>(2)</enum><header>Sliding
scale</header><text>The amount of matching funds required under paragraph (1)
shall be established based on a sliding scale that takes into account—</text>
<subparagraph id="HD7C4C1B727EA4F0F90ABB683AB68C93A"><enum>(A)</enum><text>the poverty of the
population to be targeted by the qualified entity; and</text>
</subparagraph><subparagraph id="H29A5EC5708214DFE838D982D65E5FF5D"><enum>(B)</enum><text>the ability of the
qualified entity to obtain such matching funds.</text>
</subparagraph></paragraph><paragraph id="H5CE648324124476F940553E362CAB77A"><enum>(3)</enum><header>In-kind
contributions</header><text>The Board shall permit qualified areas to comply
with a matching requirement under paragraph (2) in whole or in part with
in-kind contributions, including administrative expenses.</text>
</paragraph></subsection></section><section id="H47A22AEC3EAE4ACA81B4DD0743011DC7"><enum>205.</enum><header>Waiver
program</header>
<subsection id="H111AB5999F034A1A9748683DFF8E579D"><enum>(a)</enum><header>Establishment</header><text>The
Board shall develop and publish guidelines to provide for a waiver of the
application of any or all of the provisions of law described in subsection (c),
with respect to a qualified area under the National Competition.</text>
</subsection><subsection id="HEC606B56D32C45E0A3DE91A30380A522"><enum>(b)</enum><header>Authorization</header><text>The
Board shall grant a waiver to a qualified areas that has been selected by the
Board as a winner under the National Competition.</text>
</subsection><subsection id="H798D85F0824D49FE973E2A1AAB62E462"><enum>(c)</enum><header>Provisions of
law To be waived</header><text>The provisions of law described in this
subsection are the following:</text>
<paragraph id="H6949035E9B4A41F9A7C0F0F55A6FB305"><enum>(1)</enum><text>The Community
Services Block Grant Act (42 U.S.C. 9901 et seq.).</text>
</paragraph><paragraph id="H20C90C57CA9F474AB216A47BC97F82EB"><enum>(2)</enum><text>The Head Start Act
(42 U.S.C. 9831 et seq.).</text>
</paragraph><paragraph id="HC9A8A4B5DE7841EA83DF11681A31517A"><enum>(3)</enum><text>The Low-Income
Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.).</text>
</paragraph><paragraph id="H4B79DE0DCE724292B552C8B2D1456DB0"><enum>(4)</enum><text>The supplemental
nutrition assistance program under the Richard B. Russell National School Lunch
Act (7 U.S.C. 2011 et seq.).</text>
</paragraph><paragraph id="HC26E5708769D4AF4B781B48962403C04"><enum>(5)</enum><text>The Weatherization
Assistance for Low-Income Persons Program under the Energy Conservation and
Production Act (42 U.S.C. 6861 et seq.).</text>
</paragraph><paragraph id="HF304B2166D1349949654BF10A37E78DA"><enum>(6)</enum><text>The Jobs Corps
program under subtitle C of title I of the Workforce Investment Act of 1998 (29
U.S.C. 2881 et seq.).</text>
</paragraph><paragraph id="H10F2323D69D045E3BF0597023FD1D6F6"><enum>(7)</enum><text>The Temporary
Assistance to Needy Families Program under title IV of the Social Security Act
(42 U.S.C. 601 et seq.).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA578C3942AC04F159373C6A55F1153A9"><enum>(8)</enum><text>The Workforce
Investment Act of 1998 (29 U.S.C. 2801 et seq.).</text>
</paragraph></subsection><subsection id="H50FE00EDEE74427B87BC90CF605C8BEF"><enum>(d)</enum><header>Hold
harmless</header><text>Notwithstanding any other provision of law, the amount
received by an individual under this Act in any program year shall not be less
than the amount that individual would otherwise have received under any
provision of law described in subsection (c) during such year.</text>
</subsection></section><section id="H73138B43CF874B12ACB3C18D8D51B2B0"><enum>206.</enum><header>Tax
incentives</header><text display-inline="no-display-inline">A qualified area
that is selected to participate in the National Competition by the Board shall
be eligible for targeted tax incentives as established under title III.</text>
</section><section id="H974AF54F3E1245BE815377E1B68A3430"><enum>207.</enum><header>Application and
administration</header>
<subsection id="H937EA58AE7BE4C84B73FC73315A3BD6F"><enum>(a)</enum><header>Design
principles</header><text>In approving an application for participation in the
National Competition under this title, the Board may give preference to
eligible areas that include the creation of an individual opportunity plan (as
described in subsection (b)) as well as the following design principles as
contained in the Local Opportunity Plan (as established in section
102(d)(1)):</text>
<paragraph id="HB5582388914F4DA6A0AD2AFDE6B4D13B"><enum>(1)</enum><text>Basing poverty
reduction and prevention services on the Human Development Index as a measure
of the level of poverty for individuals and households.</text>
</paragraph><paragraph id="H77083CC59C1E40CF967B75E6DE6B838E"><enum>(2)</enum><text>A
model of poverty reduction and prevention that includes the varying levels of
service for individuals and is adjusted to reflect the needs of individuals and
households at different stages of poverty. The different levels of service may
be structured to reflect the following levels of assistance:</text>
<subparagraph id="HDAB7D110D7444A2D8385F9D13AE80394"><enum>(A)</enum><text>For low-income
individuals and families requiring services to prevent reliance on more
expensive government programs, services shall focus on intervention, including
such services as mortgage assistance, debt relief, housing and voucher
assistance, and job development and placement.</text>
</subparagraph><subparagraph id="H56E68BA2016847FD84FE3F8DD27AA3C8"><enum>(B)</enum><text>For low-income
individuals and families currently relying on at least one government program
for basic needs such as food or housing, services shall be tailored to meet
specific needs identified in a unique individual opportunity plan adopted by
intensive client advocacy.</text>
</subparagraph><subparagraph id="HD0E81402363C49D18A232B455853506F"><enum>(C)</enum><text>For individuals at
or below the Federal Poverty Guidelines, the continued provision of long term
services shall be made available.</text>
</subparagraph></paragraph><paragraph id="H0BCBA1412583414F804BA0191F5FAF42"><enum>(3)</enum><text>An individual
opportunity plan (as provided for in subsection (b).</text>
</paragraph><paragraph id="HFD5DCC0F0E0647E68CCCF9DADB6F56F5"><enum>(4)</enum><text>Intensive client
advocacy, as defined in guidelines to be developed and published by the
Board.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDD5BDD6F28524965904A089DC23C1A41"><enum>(5)</enum><text>Detailed
evaluation practices, as defined in guidelines to be developed and published by
the Board.</text>
</paragraph></subsection><subsection id="H4AA59BED0BF64E01B0F6F959E90443C4"><enum>(b)</enum><header>Individual
opportunity plans</header><text>The Board shall develop and publish guidelines
for the establishment of individual opportunity plans, which, at a minimum
shall consist of—</text>
<paragraph id="HE359C7487F4A4ADC94EF9825545DE4F1"><enum>(1)</enum><text>an assessment of
the unique strengths and needs of the individual and the identification of
services appropriate to meet such needs; and</text>
</paragraph><paragraph id="HB843E990B7CF49599AF808EA78A3386B"><enum>(2)</enum><text>a
written individualized opportunity plan developed by a multidisciplinary team,
including a description of measurable results and outcomes expecting to be
achieved as a result of implementation of the plan.</text>
</paragraph></subsection><subsection id="HE86049D60CAA409695159663E4EBCEF9"><enum>(c)</enum><header>Participation in
National Competition</header><text>The Board shall select a total of 10
qualified areas for participation in the National Competition. Such areas shall
include—</text>
<paragraph id="H045BD4F58D034FA893428E14CB0A90FF"><enum>(1)</enum><text>not less than 3
rural areas as defined by this Act; and,</text>
</paragraph><paragraph id="HA5843D2A9A0B4AC0B623BA72D0D0CA1A"><enum>(2)</enum><text>not less than 1
qualified area that is located in a county in which a qualified military
installation or a county adjacent to a qualified military installation is
located.</text>
</paragraph></subsection></section><enum>III</enum><header>Community
renewal incentives</header>
<section id="H6230F29EF5B7417484B541E06A6D70F5"><enum>301.</enum><header>Community
renewal savings</header>
<subsection id="H2161E16C8F444624A857B82A45266BFD"><enum>(a)</enum><header>In
general</header><text>Each Local Opportunity Board shall implement a method to
calculate the community renewal savings achieved through the implementation of
its Local Opportunity Plan.</text>
</subsection><subsection id="H5683DEE7044A420CBC29556F8EBB8AC6"><enum>(b)</enum><header>Community
renewal savings</header><text>For the purposes of this Act, the term
<term>community renewal savings</term> means the present dollar value of the
total Federal and State funds directly or indirectly saved by the Local
Opportunity Board for individuals successfully assisted through the Local
Opportunity Plan.</text>
</subsection><subsection id="H79B57659E3934CD8ADB79DA9BB62E2B1"><enum>(c)</enum><header>Factors</header><text>The
community renewal savings shall be measured by criteria identified by the Local
Opportunity Board in valuing the effectiveness of each program in the Local
Opportunity Plan, but shall include the following:</text>
<paragraph id="H57F4066FF4E5452498E70FCC52402522"><enum>(1)</enum><text>Present dollar
value of increasing the income of an individual successfully assisted by a
Local Opportunity Plan.</text>
</paragraph><paragraph id="H4E2D6D60A13048658694198361617137"><enum>(2)</enum><text>Present dollar
value of an individual graduating high school.</text>
</paragraph><paragraph id="H0BFC59D105EF4C949095FC8522D47F18"><enum>(3)</enum><text>Funds expended by
the jurisdiction to assist an individual in each Local Opportunity Plan.</text>
</paragraph><paragraph id="H76F2700FCDEA43EAA5C4224ED46725B2"><enum>(4)</enum><text>Funds expended if
an individual does not graduate high school.</text>
</paragraph></subsection><subsection id="H632291B30CAD40F595355840809984FE"><enum>(d)</enum><header>Allocation</header><text>The
community renewal savings of a Local Opportunity Board shall be allocated as
following:</text>
<paragraph id="H15DAE5215E5E422E88F601633CB56D90"><enum>(1)</enum><text>50 percent to
reduce the public deficit.</text>
</paragraph><paragraph id="H1FCE7EB7D1444C5B9E6BF7D201A4AD36"><enum>(2)</enum><text>25 percent to fund
community tax incentives.</text>
</paragraph><paragraph id="H9D4C21FE7CB9480B803535A3A95F9084"><enum>(3)</enum><text>25 percent to
fund, reinvest in, and expand programs and services under this Act.</text>
</paragraph></subsection><subsection id="H65E24C1874004284A145CE5F724996C8"><enum>(e)</enum><header>Program
cost-Benefit ratio</header><text>Each Local Opportunity Board shall calculate
the program cost-benefit ratio for each program under the Local Opportunity
Plan, which shall be the ratio of—</text>
<paragraph id="H23D7B7564CAC4417AB58A3FBA399296E"><enum>(1)</enum><text>the cost of the
program measured by dollars; over</text>
</paragraph><paragraph id="H95B21CBC459C44BC8D814121A77120F9"><enum>(2)</enum><text>the benefit of the
program expressed in dollars.</text>
</paragraph></subsection><subsection id="HD64176E12A5A4B24A708765C2A8F01F4"><enum>(f)</enum><header>Example</header><text>The
program cost-benefit ratio of a job training program is equal to the cost of
the program in dollars over the amount the program raises the earnings of the
enrollee during his or her lifetime, taking into account what the individual
would have earned without the job training program using local job market
data.</text>
</subsection></section><section id="HB9FB7900A2F548DD8D7CE020A975A56F"><enum>302.</enum><header>Community tax
incentives</header>
<subsection id="HE687772B039C456A8C7A043878A0FB83"><enum>(a)</enum><header>In
general</header><text>A dollar amount equal to 25 percent of the community
renewal savings shall be allocated to the community tax incentives.</text>
</subsection><subsection id="H786D8E5C7D5E4FDE9AD013DD36D5BD31"><enum>(b)</enum><header>Community tax
incentives</header><text>The community tax incentives shall consist of the
following:</text>
<paragraph id="H5A8947C0A8D64ED49B6866FAC9A9EEC0"><enum>(1)</enum><text>Renewal employer
refundable credit.</text>
</paragraph><paragraph id="H694C0D08AD1944D5A421A1CD35420714"><enum>(2)</enum><text>Unrelated business
taxable income deduction.</text>
</paragraph><paragraph id="HED2567F706664F82932FA25EF9880A8D"><enum>(3)</enum><text>Qualified
community renewal contribution.</text>
</paragraph><paragraph id="H82DA8C854B884FBF897A1D71BE294DE0"><enum>(4)</enum><text>High school
graduation tax credit.</text>
</paragraph><paragraph id="HFC62EA0D867A4805AB66985B17D9C92C"><enum>(5)</enum><text>Modified new
markets tax credit.</text>
</paragraph><paragraph id="HB6BDDF5D2EDB474C8330C8D3D0989FAC"><enum>(6)</enum><text>Community renewal
bonds.</text>
</paragraph></subsection></section><section id="H066EE90D83C1499CBEF97E7C8CA0B737"><enum>303.</enum><header>Renewal
employer refundable credit</header>
<subsection id="HCF649F885C454C4CA9BC5A4E933C51E8"><enum>(a)</enum><header>In
general</header><text>In the case of any taxable year during the program
period, there shall be allowed a current year business credit in the amount of
$3,000 under section 38(b) of the Internal Revenue Code of 1986, with respect
to each retained worker employed by a qualified opportunity employer with
respect to which subsection (b)(4) is first satisfied during such taxable
year.</text>
</subsection><subsection id="H70C3F0AA32AE4A45A025DB3351957AD9"><enum>(b)</enum><header>Retained
worker</header><text>For purposes of this section, the term <term>retained
worker</term> means any individual—</text>
<paragraph id="H355173B23D4F4B8D9F42317612CB4144"><enum>(1)</enum><text>whose principal
place of abode is within the qualified area;</text>
</paragraph><paragraph id="H208EE177716D44B2A407225B368E4D09"><enum>(2)</enum><text>substantially all
of the services performed by such individual during the taxable year are
rendered within the qualified area;</text>
</paragraph><paragraph id="HE7BD616A996B41C7982A416D879E48C8"><enum>(3)</enum><text>who begins
employment with a qualified opportunity employer after the commencement of the
program period;</text>
</paragraph><paragraph id="H53E51A59F2BB49039305AE198F6DDD32"><enum>(4)</enum><text>who certifies by
signed affidavit, under penalties of perjury, that such individual has not been
employed for more than 40 hours during the 90-day period ending on the date
such individual begins such employment;</text>
</paragraph><paragraph id="H08F8DABC45E74DCE918E75849F04431E"><enum>(5)</enum><text>who is not
employed by the qualified opportunity employer to replace another employee of
such employer unless such other employee separated from employment voluntarily
or for cause;</text>
</paragraph><paragraph id="H472FA4468A2B4712879A38EA0253C3F6"><enum>(6)</enum><text>who is not an
individual described in section 51(i)(1) of the Internal Revenue Code of 1986
(applied by substituting <quote>qualified opportunity employer</quote> for
<quote>taxpayer</quote> each place that term appears);</text>
</paragraph><paragraph id="H849AD51D01C44A9BA172620EC91855A7"><enum>(7)</enum><text>who was employed
by the qualified opportunity employer on any date during the taxable
year;</text>
</paragraph><paragraph id="HCC2750EE370C45C2AF1F1680A5486990"><enum>(8)</enum><text>who was so
employed by the qualified opportunity employer for a period of not less than 52
consecutive weeks;</text>
</paragraph><paragraph id="H2703222690074721A8F2DA202280C3AB"><enum>(9)</enum><text>whose wages (as
defined in section 3401(a) of the Internal Revenue Code of 1986) for such
employment during the last 26 weeks of such period equaled at least 110 percent
of such wages for the first 26 weeks of such period; and</text>
</paragraph><paragraph id="H44FC88D3A31A48D394E8160D98C7CF0A"><enum>(10)</enum><text>who receives
health benefits at least equal to essential health benefits, as defined under
section 1302 of the Patient Protection and Affordable Care Act.</text>
</paragraph></subsection><subsection id="HADFF4F88AC9E4D929AF71F3E6BCD978A"><enum>(c)</enum><header>Qualified
opportunity employer</header>
<paragraph id="H2381DD5FD2164107B5407F84D65D4DE2"><enum>(1)</enum><header>In
general</header><text>For purposes of this section, the term <term>qualified
opportunity employer</term> means any employer—</text>
<subparagraph id="H60905BF933DD4EFDBAB520915301BED5"><enum>(A)</enum><text>having a place of
business in the qualified area;</text>
</subparagraph><subparagraph id="H57D97C97A076457DBBC18DD5030629FE"><enum>(B)</enum><text>subject to remit
withholding and employment taxes to the United States; and</text>
</subparagraph><subparagraph id="H25DA78036C7F45638B861A9BE4E37368"><enum>(C)</enum><text>designated by the
Local Opportunity Board, at its sole discretion, as a qualified opportunity
employer based on its hiring standards, employee benefits, and employee
retention statistics.</text>
</subparagraph></paragraph><paragraph id="H0E09991D74274E47B7611C6E760E6FE3"><enum>(2)</enum><header>Types of
qualified opportunity employers</header><text>A qualified opportunity employer
includes any person employing individuals within the qualified area as long as
such person meets the requirements under paragraph (1) and is not limited to
persons subject to income tax under subpart A of the Internal Revenue Code of
1986.</text>
</paragraph></subsection><subsection id="H5BAE4361B8F84BB580BA5FBDDEB8ED10"><enum>(d)</enum><header>Limitation on
carrybacks</header><text>No portion of the unused credit under section 38 of
the Internal Revenue Code of 1986 for any taxable year which is attributable to
the increase in the current year business credit under this section may be
carried to a taxable year beginning before the date of the enactment of this
section.</text>
</subsection></section><section id="HB0F90EC68F704835808C01728D5C42C7"><enum>304.</enum><header>Unrelated
business taxable income deduction</header>
<subsection id="H43089DE465E845E7A480393EE763E5E6"><enum>(a)</enum><header>In
general</header><text>In the case of any taxable year during the program
period, there shall be allowed a deduction under section 512(a) of the Internal
Revenue Code of 1986 equal to the amount of 25 percent for any community
renewal expenditure during such taxable year.</text>
</subsection><subsection id="H1E40A8F4413642DFA9BF32BCDC6D229D"><enum>(b)</enum><header>Community
renewal expenditure</header><text>For purposes of this section, the term
<term>community renewal expenditure</term> means an expenditure made by a
qualified opportunity organization in furtherance of a qualified opportunity
program or service.</text>
</subsection><subsection id="HBC8549CA3D494388A5149049C3FCB945"><enum>(c)</enum><header>Qualified
opportunity organization</header><text>For purposes of this section, the term
<term>qualified opportunity organization</term> means an organization—</text>
<paragraph id="H4DE789000B2E476989441E2CBB8AAB5C"><enum>(1)</enum><text>which is described
in section 501(c)(3) of the Internal Revenue Code of 1986 and is exempt from
tax under section 501(a) of such Code (other than a private foundation, as
defined in section 509(a) of such Code, which is not an operating foundation,
as defined in section 4942(j)(3) of such Code); and</text>
</paragraph><paragraph id="H67E1DA678A204819B2351B38AD7CF429"><enum>(2)</enum><text>is designated by
the Local Opportunity Board as being an eligible recipient of qualified
community renewal contributions based on the programs and services it proposes
to offer in furtherance of the Local Opportunity Plan.</text>
</paragraph></subsection><subsection id="H9DBFB5FE28B24F8CABD5B765A6A0196C"><enum>(d)</enum><header>Qualified
opportunity program or service</header><text>For purposes of this section, the
term <term>qualified opportunity program or service</term> means a program or
service conducted by a qualified opportunity organization that is designated by
the Local Opportunity Board as contributing importantly in accomplishing the
Local Opportunity Plan.</text>
</subsection></section><section id="HCAA284CB7EFE4FB5A3DFE48545A4D98A"><enum>305.</enum><header>Qualified
community renewal contribution</header>
<subsection id="HA1462E3338A240FF885D5468C1F4030A"><enum>(a)</enum><header>In
general</header><text>In the case of any taxable year during the program
period, there shall be allowed a charitable contribution deduction under
section 170(a) of the Internal Revenue Code of 1986 equal to the amount of 120
percent of any qualified community renewal contribution donated during such
taxable year.</text>
</subsection><subsection id="H24827DA8B8034A0EACB94B957EE531F4"><enum>(b)</enum><header>Qualified
community renewal contribution</header><text>For purposes of this section, the
term qualified <term>community renewal contribution</term> means a charitable
contribution of property described in section 170(c) of the Internal Revenue
Code of 1986, by an individual or corporation to a qualified opportunity
organization (as defined in section 304(c)).</text>
</subsection><subsection id="HD47A9DF6D4394B88BF1763938CE59220"><enum>(c)</enum><header>Increased
charitable contribution deduction limitation</header><text>For the purposes of
this section, section 170 of the Internal Revenue Code of 1986 is
applied—</text>
<paragraph id="H7DF7F7AEDB4248C7B8D4ECAB96223BA4"><enum>(1)</enum><text>in the flush
language of subsection (b)(1)(A), by substituting <quote>75 percent</quote> for
<quote>50 percent</quote>; and</text>
</paragraph><paragraph id="H2CDBFCB75958451C8A73D2CD433ADBEE"><enum>(2)</enum><text>in subsection
(b)(2)(A), by substituting <quote>15 percent</quote> for <quote>10
percent</quote>.</text>
</paragraph></subsection><subsection id="HF2A0D60FC13C4996A96BC06BCA599FC2"><enum>(d)</enum><header>Exclusion from
alternative minimum taxable income</header><text>In any taxable year during
which a qualified community renewal contribution is properly claimed or carried
over, the amount of such qualified community renewal contribution shall not be
included in limiting the claimant’s total itemized deductions under the
Internal Revenue Code of 1986 (other than under subsection (c)) and shall be
excluded from the claimant’s calculation of alternative minimum taxable income
under such Code.</text>
</subsection></section><section id="H769E5837C6EE4CA49C8546884B7CB1DA"><enum>306.</enum><header>High school
graduation tax credit</header>
<subsection id="H506083C9DAA34E82B3B42E17125A913E"><enum>(a)</enum><header>In
general</header><text>In the case of any taxable year during the program
period, there shall be allowed to any eligible graduate or any taxpayer
claiming an eligible graduate as a dependent a credit against tax imposed by
subtitle A of the Internal Revenue Code of 1986 of a high school graduation tax
credit in the amount of $500.</text>
</subsection><subsection id="HF536BE163EB042B88D4BA393A8174921"><enum>(b)</enum><header>Eligible
graduate</header><text>For the purposes of this section, the term
<term>eligible graduate</term> means any individual who graduates from a
qualified opportunity school.</text>
</subsection><subsection id="HB0342267EA9348CE8834E10A8EE9403F"><enum>(c)</enum><header>Qualified
opportunity school</header><text>For the purposes of this section, the term
<term>qualified opportunity school</term> means—</text>
<paragraph id="HB47C7436A3C44FA6BAA6C8E99234BAAE"><enum>(1)</enum><text>a
secondary school located in the qualified area that includes grade 12;
and</text>
</paragraph><paragraph id="H39001AF1BF9147AFB7D8E8F325B78C10"><enum>(2)</enum><text>is designated by
the Local Opportunity Board as a qualified opportunity school based on certain
predetermined criteria, such as the average graduation rate.</text>
</paragraph></subsection><subsection id="H91A725D31FB34DC79CDB3B578E4A9C7E"><enum>(d)</enum><header>No
limitation</header><text>The high school graduation tax credit shall be
considered a refundable tax credit under the Internal Revenue Code of 1986 and
is allowable based solely on the requirements stated in this section.</text>
</subsection></section><section id="H13BFE747FBCC42C7808BF64C238F3DDD"><enum>307.</enum><header>Modified new
markets tax credit</header>
<subsection id="H5270C6C83FDC41B0847A65BD29E992BB"><enum>(a)</enum><header>In
general</header><text>In the case of any taxable year during the program
period, the term <term>low-income community</term> as defined in section 45D of
the Internal Revenue Code of 1986 shall include the area within a qualified
area.</text>
</subsection><subsection id="HAE54933BD4204491855C20BF49FE8D51"><enum>(b)</enum><header>Qualified equity
investment</header><text>A qualified equity investment made pursuant to section
45D of the Internal Revenue Code of 1986 in a qualified area in accordance with
subsection (a) shall qualify as such at the time of investment and shall not
fail to be considered a qualified equity investment upon termination of the
National Competition for Community Renewal.</text>
</subsection></section><section id="HB4E9C6E25A3C42AE9A4AC53831EB4ED3"><enum>308.</enum><header>Earned income
tax credit</header>
<subsection id="H0E0ED044C9C64E288E51329927E071C7"><enum>(a)</enum><header>In
general</header><text>In the case of any taxable year during the program
period, the Local Opportunity Board may submit to the National Opportunity
Board revisions to section 32 of the Internal Revenue Code of 1986 that modify
the eligibility or percentage requirements, or both, of the earned income tax
credit allowable to individuals residing in the qualified area.</text>
</subsection><subsection id="H97EFB14506A943E688C8465BB8D75F2D"><enum>(b)</enum><header>Adoption</header><text>The
National Opportunity Board, in its sole discretion, may approve all or part of
the modifications to the earned income tax credit by the Local Opportunity
Board. The National Opportunity Board shall base its decision to approve the
Local Opportunity Board’s proposed revisions to the earned income tax credit on
comprehensive data presented to the National Opportunity Board that the
proposed revisions will better serve the individuals residing in the qualified
area.</text>
</subsection><subsection id="H314ED6F15D254D71A97EBA02916F9755"><enum>(c)</enum><header>Termination</header><text>At
the end of the program period, any revisions made to the earned income tax
credit requirements under the authority granted in this section shall terminate
and individuals residing in the qualified area shall be subject to the
provisions as stated in section 32 of the Internal Revenue Code of 1986.</text>
</subsection><subsection id="HA6BC608258AF46599521A9E22EF4028B"><enum>(d)</enum><header>Reports</header><text>By
the end of each subsequent year following a taxable year of the program period,
the Local Opportunity Board shall report to the National Opportunity Board the
number of persons filing and the amount of credit allowed under the approved
revisions to the earned income tax credit as compared with the same statistics
in taxable years before the commencement of the program period.</text>
</subsection></section><section id="H61B0A48818FD4B27B81D4F4ADF6864E1"><enum>309.</enum><header>Community
renewal bonds</header>
<subsection id="H8083A84746224E99ABB9510C3F51E463"><enum>(a)</enum><header>In
general</header><text>The National Opportunity board, acting through the Local
Opportunity Boards, is hereby granted the authority to act on behalf of the
Secretary of Treasury to issue and sell community renewal bonds in face value
increments of $100 up to a maximum amount of $50,000,000 to assist the
financing of Local Opportunity Plans. Community renewal bonds shall bear a
coupon rate of 25 percent.</text>
</subsection><subsection id="H645E96FCABF5467096757764D307F45A"><enum>(b)</enum><header>Community
renewal bonds</header><text>Community renewal bonds shall be backed by the full
faith and credit of the United States Government.</text>
</subsection><subsection id="HF62DE7A2CBA34321AB1C0A1C51766B47"><enum>(c)</enum><header>Allocation</header><text>Proceeds
from the sale of community renewal bonds shall be allocated evenly among the
Local Opportunity Boards.</text>
</subsection><subsection id="H161C0DBDB2C74347B42A907D76866D73"><enum>(d)</enum><header>Term</header><text>Community
renewal bonds shall have a maturity date of 7 years from the date of
issuance.</text>
</subsection><subsection id="HEDBBADEB5A374B0BAD5E8EC94FE7F5D8"><enum>(e)</enum><header>Repayment</header><text>Repayment
of community renewal bonds allocated to each Local Opportunity Board shall be
made from a portion of the community renewal savings allocated to the community
tax incentives for such Board.</text>
</subsection></section><section id="H980DF35C07B2442EA905C6F516096133"><enum>310.</enum><header>Anti-corruption
provision</header><text display-inline="no-display-inline">It shall be unlawful
for any person—</text>
<paragraph id="H336ADBB0416E45DAAC94E19CD154D01E"><enum>(1)</enum><text>to claim a
community renewal incentive who does not meet the requirements set forth in
this Act; and</text>
</paragraph><paragraph id="H2812968F9E7C4D09BE456A5ACCAE7ED5"><enum>(2)</enum><text>to use funds
appropriated under this Act for any purpose for which such funds were not
authorized.</text>
</paragraph></section><enum>IV</enum><header>Competitions for
innovation in client advocacy and evaluation</header>
<section id="H794C923BCD4F4F74A95F11FBA7C3DD67"><enum>401.</enum><header>Client advocacy
competition</header>
<subsection id="HEBCB2B65233D419886F58664DFAA6578"><enum>(a)</enum><header>In
general</header><text>The Board shall be authorized to establish and administer
a program to award competitive grants, in the amount of $5,000,000, to eligible
entities to provide for the development of a client advocacy and consumer
services technology platform.</text>
</subsection><subsection id="HC7AE02B245B04636B5ACBBE79BAFFA38"><enum>(b)</enum><header>Eligible
entity</header><text>The Board shall establish criteria that an entity must
comply with to be considered an eligible entity for purposes of this
section</text>
</subsection><subsection id="H9C8A0FB02AF74573A76CD0FE374F484D"><enum>(c)</enum><header>Priority
consideration</header><text>The Board shall establish criteria for the awarding
of grants under this section and shall give priority consideration to eligible
entities that establish a platform which shall include—</text>
<paragraph id="HB7E2DD4D1DAD4B5D9AA066EA00E2A78E"><enum>(1)</enum><text>single source data
entry that will be imported into multiple data entry points;</text>
</paragraph><paragraph id="HC5140FE6B0274326AD494FA64F7DDE7E"><enum>(2)</enum><text>a
user-friendly interface;</text>
</paragraph><paragraph id="HF7E1ED10BCCE4D789D638D11DB2E9840"><enum>(3)</enum><text>data that is
interoperable across numerous programs;</text>
</paragraph><paragraph id="HE0595FD7CE10431BA8BC0E153FD731EC"><enum>(4)</enum><text>calculations based
on the Human Development Index or another alternative poverty
measurement;</text>
</paragraph><paragraph id="H850103309B3142E08BD7E6B8EFC1408B"><enum>(5)</enum><text>security
requirements;</text>
</paragraph><paragraph id="H98633399350D4C6E8F04A410D382A267"><enum>(6)</enum><text>assisting the case
manager and consumer with establishing short and long term goals; and</text>
</paragraph><paragraph id="HF2D362BBC9774DFAA8C00426DA8DBFD5"><enum>(7)</enum><text>low-cost or
cost-effective replication abilities.</text>
</paragraph></subsection><subsection id="H1CF657FD100D45BEBA6335C9A857DCD7"><enum>(d)</enum><header>Client advocacy
and consumer services technology</header><text>In awarding grants under this
section the Board shall give preference to those eligible entities that are, on
the date of enactment of this Act, operating a client advocacy and consumer
services technology platform.</text>
</subsection></section><section id="HA34566292BA5463390A3FBD926E4A773"><enum>402.</enum><header>Evaluation
competition</header>
<subsection id="H7761FFE2644A460F8141665CB715E3E3"><enum>(a)</enum><header>In
general</header><text>The Board shall be authorized to establish and administer
a program to award competitive grants, in the amount of $5,000,000, to eligible
entities to provide for the development of a social services evaluation
method.</text>
</subsection><subsection id="H198A8A9C22A34E67A8379572BE88DA1F"><enum>(b)</enum><header>Eligible
entity</header><text>The Board shall establish criteria that an entity must
comply with to be considered an eligible entity for purposes of this section,
with preference to be given to those entities in academia or research-oriented
fields.</text>
</subsection><subsection id="H83B987239F9447D48CFF779AC0B8AB2E"><enum>(c)</enum><header>Social service
evaluation</header><text>The Board shall establish criteria for the awarding of
grants under this section and may consider, in establishing such criteria, the
extent to which the proposed social service evaluation method to be developed
under the grant would uniquely measure social service interventions with high
predictability for programs that will be successful when serving a high volume
of individuals.</text>
</subsection></section><enum>V</enum><header>Report to
Congress</header>
<section id="H39B5EF046CEE448AB81B423E6DBCF251"><enum>501.</enum><header>Report to
Congress</header>
<subsection id="HD4AE1C4EB91A4D2099E0FD4D014DD837"><enum>(a)</enum><header>Board</header><text>Not
later than 1 year after the end of the third and fifth fiscal years during
which the program under this Act is implemented, the Board shall submit to the
Congress a report that—</text>
<paragraph id="H4F90229598DE406DA872AF11E315F3BC"><enum>(1)</enum><text>summarizes all
activities carried out under this Act; and</text>
</paragraph><paragraph id="HDB3AA697285146D895BB36A650AA9721"><enum>(2)</enum><text>sets forth any
findings, conclusions, or recommendations of the Board as a result of such
activities.</text>
</paragraph></subsection><subsection id="HF9DAE76EAB0943408906B86E578998E4"><enum>(b)</enum><header>Government
accountability office</header><text>Not later the end of the third and the
fifth fiscal year during which the program under this Act is implemented, the
Comptroller General of the United States shall submit a report to Congress that
contains—</text>
<paragraph id="HF4C79A13A2A247A0B292232976F4EFE4"><enum>(1)</enum><text>a
description of the savings in Federal programs accrued as a result of this
Act;</text>
</paragraph><paragraph id="H17257687514A471C98849F2ED9260216"><enum>(2)</enum><text>a
description of the success and effectiveness of the reforms contained in this
Act; and</text>
</paragraph><paragraph id="HF0D022524D5E4E50BFFFC2BD4B33FDC4"><enum>(3)</enum><text>recommendations
for improvement in the administration of the programs under this Act.</text>
</paragraph></subsection></section><enum>VI</enum><header>Authorization of
appropriations</header>
<section id="H044CDA2AD6674FD997004F7FC9984310"><enum>601.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">For the
purposes of carrying out this Act, there are authorized to be appropriated
$125,000,000 for the first fiscal year in which the National Competition is
implemented, and for each of the five succeeding fiscal years.</text>
</section>