[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3845 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3845

    To establish the National Competition for Community Renewal to 
    encourage communities to adopt innovative strategies and design 
  principles to programs related to poverty prevention, recovery and 
                   response, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 27, 2010

   Mr. Casey introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To establish the National Competition for Community Renewal to 
    encourage communities to adopt innovative strategies and design 
  principles to programs related to poverty prevention, recovery and 
                   response, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``National 
Opportunity and Community Renewal Act''.
    (b) Table of Contents.--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.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Recent data found that 43,600,000 Americans were living 
        in poverty, with 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.

SEC. 3. PURPOSES.

    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.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Board.--The term ``Board'' means the National 
        Opportunity Board established under section 101.
            (2) Eligible area.--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) Holistic.--The term ``holistic'' means encompassing 
        health, education, labor, housing, justice and food.
            (4) Human development index.--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) Local governing body.--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) Local opportunity plan.--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) National competition.--The term ``National 
        Competition'' means the National Competition for Community 
        Renewal established under title II.
            (8) Program period.--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) Qualified area.--The term ``qualified area'' means an 
        eligible area that has been approved under the National 
        Competition by the Board.
            (10) Qualified military installation.--The 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 official.--The 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) Rural area.--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.

             TITLE I--NATIONAL AND LOCAL OPPORTUNITY BOARDS

SEC. 101. NATIONAL OPPORTUNITY BOARD.

    (a) Establishment.--There is established a bipartisan, independent 
entity to be known as the ``National Opportunity Board'' to develop and 
administer the National Competition.
    (b) Composition.--The Board shall be composed of 7 members, of 
which--
            (1) 1 member shall be the President's Domestic Policy 
        Advisor;
            (2) 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;
            (3) 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;
            (4) 1 member shall be appointed by the senior Democratic 
        member of the Senate leadership;
            (5) 1 member shall be appointed by the senior Republican 
        member of the Senate leadership;
            (6) 1 member shall be appointed by the senior Democratic 
        member of the House of Representatives leadership; and
            (7) 1 member shall be appointed by the senior Republican 
        member of the House of Representatives leadership.
    (c) Appointments.--The members appointed to the Board under 
subsection (b) shall, to the extent practicable, include--
            (1) representatives of non-profit organizations;
            (2) members of the poverty reduction advocacy community;
            (3) experts in the area of philanthropic giving; and
            (4) members with experience relative to local government 
        administration.
    (d) Ex Officio Members.--
            (1) In general.--The following individuals or their 
        designees shall serve as ex officio members of the Board:
                    (A) The Secretary of Health and Human Services;
                    (B) The Secretary of Commerce;
                    (C) The Secretary of Housing and Urban Development;
                    (D) The Secretary of Labor;
                    (E) The Secretary of Agriculture; and
                    (F) The Attorney General.
            (2) Limitations.--Ex officio members of the board shall--
                    (A) not have a vote with respect to the activities 
                of the Board; and
                    (B) be required to attend all meetings of the 
                Board.
            (3) Designees.--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).
    (e) Dismissal, Quorum, Vacancies.--
            (1) In general.--Each member of the Board appointed under 
        subsection (b) shall serve for a term of 6 years, except that--
                    (A) a member of the Board may be removed by a 
                unanimous vote of all remaining voting members of the 
                Board, and only for cause;
                    (B) 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
                    (C) 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.
            (2) Quorum.--A majority of the members of the Board 
        appointed under subsection (b) shall constitute a quorum to 
        conduct business.
            (3) Meetings.--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.
    (f) Duties.--
            (1) Guidelines for the national competition.--The Board 
        shall design and establish written guidelines for establishing 
        and implementing the National Competition, including the 
        following:
                    (A) Criteria for establishing eligible areas, 
                including--
                            (i) 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
                            (ii) the demonstrated ability of a Local 
                        Opportunity Board to provide local matching 
                        funds as established under section 204(e).
                    (B) 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).
                    (C) Criteria for evaluating applications submitted 
                under the National Competition.
                    (D) Eligible program development costs.
                    (E) Criteria for accountability measures for 
                eligible areas selected to participate in the National 
                Competition.
                    (F) Reporting requirements for eligible areas 
                selected to participate in the National Competition.
            (2) Rulemaking.--The Board shall have the authority to 
        promulgate regulations for establishment and administration of 
        the National Competition.
            (3) Administration of national competition.--The Board 
        shall administer the National Competition, including--
                    (A) awarding funding and waivers to eligible areas 
                based on developed criteria; and
                    (B) evaluating the performance of participating 
                eligible areas in accordance with this section.
            (4) Evaluations.--
                    (A) In general.--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).
                    (B) Cancellation of award.--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--
                            (i) 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;
                            (ii) 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
                            (iii) the Local Opportunity Board of the 
                        qualified area failed to meet any additional 
                        criteria to be established by the National 
                        Opportunity Board.
                    (C) Repayment of amounts.--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.
                    (D) Guidelines.--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.
    (g) Personnel Matters.--
            (1) Compensation and expenses.--
                    (A) In general.--Except as provided in this 
                paragraph, a member of the Board shall serve without 
                compensation.
                    (B) Travel expenses.--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.
                    (C) Federal employees.--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.
            (2) Staff.--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.
            (3) Staff of federal agencies.--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.
    (h) Authorization of Appropriations.--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.

SEC. 102. LOCAL OPPORTUNITY BOARDS.

    (a) Establishment.--To be eligible to receive funds under this Act, 
the chief elected official of an eligible area shall establish a Local 
Opportunity Board.
    (b) Composition.--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--
            (1) State government;
            (2) non-elected community leaders, particularly those 
        providing poverty-related services, including advocates and 
        experts; and
            (3) the head of the lead agency (or his or her designee) in 
        one or more of the following programs operating in the eligible 
        area--
                    (A) health programs;
                    (B) labor programs;
                    (C) housing programs;
                    (D) agriculture programs;
                    (E) justice programs; or
                    (F) commerce programs.
    (c) Chair.--The members of the Local Opportunity Board shall select 
a Chair form among such members.
    (d) Duties.--The Local Opportunity Board shall--
            (1) develop and submit to the Board a Local Opportunity 
        Plan, that at a minimum includes--
                    (A) a detailed spending plan for any funds approved 
                under the National Competition by the Board;
                    (B) 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);
                    (C) 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
                    (D) any other elements as required by the Board;
            (2) submit an application (including the Local Opportunity 
        Plan), pursuant to guidelines established by the Board, to the 
        Board for approval; and
            (3) 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.

          TITLE II--NATIONAL COMPETITION FOR COMMUNITY RENEWAL

SEC. 201. ESTABLISHMENT.

    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.

SEC. 202. DURATION.

    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.

SEC. 203. LOCAL OPPORTUNITY FUNDS.

    (a) Establishment.--To be eligible to receive assistance under this 
Act, the Local Opportunity Board for the qualified area shall--
            (1) establish a local opportunity fund; and
            (2) otherwise comply with the requirements of this section.
    (b) Amounts in Fund.--
            (1) In general.--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.
            (2) Deposits.--There shall be deposited into the local 
        opportunity fund the following:
                    (A) Any funds provided to the qualified area under 
                the grant program established under section 204.
                    (B) Funds made available for use during the program 
                period in the qualified area under the following:
                            (i) The Community Services Block Grant Act 
                        (42 U.S.C. 9901 et seq.).
                            (ii) The Head Start Act (42 U.S.C. 9831 et 
                        seq.).
                            (iii) The Low-Income Home Energy Assistance 
                        Act of 1981 (42 U.S.C. 8621 et seq.).
                            (iv) The supplemental nutrition assistance 
                        program under the Richard B. Russell National 
                        School Lunch Act (7 U.S.C. 2011 et seq.).
                            (v) The Weatherization Assistance for Low-
                        Income Persons Program under the Energy 
                        Conservation and Production Act (42 U.S.C. 6861 
                        et seq.).
                            (vi) The Jobs Corps program under subtitle 
                        C of title I of the Workforce Investment Act of 
                        1998 (29 U.S.C. 2881 et seq.).
                            (vii) The Temporary Assistance to Needy 
                        Families Program under title IV of the Social 
                        Security Act (42 U.S.C. 601 et seq.).
                            (viii) The Workforce Investment Act of 1998 
                        (29 U.S.C. 2801 et seq.).
                    (C) Any matching funds provided by the qualified 
                area.
    (c) Accounting Regulations.--The Board shall promulgate regulations 
with respect to accounting for the amounts in the local opportunity 
funds established under subsection (a).
    (d) Use of Funds.--The responsible local official shall have a 
fiduciary responsibility to administer funds in the local opportunity 
fund established under subsection (a)--
            (1) in accordance with the Local Opportunity Plan (as 
        approved by the Board); and
            (2) notwithstanding the provisions of law referred to in 
        subsection (b)(2)(B).
    (e) State Funds.--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).

SEC. 204. GRANT AWARDS.

    (a) Authorization.--The Board shall award competitive grants to 
qualified areas that meet criteria to be established by the Board.
    (b) Administration.--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.
    (c) Amount.--The amount of a grant under this section shall not 
exceed $10,000,000.
    (d) Use of Amounts.--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.
    (e) Matching Fund.--
            (1) In general.--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.
            (2) Sliding scale.--The amount of matching funds required 
        under paragraph (1) shall be established based on a sliding 
        scale that takes into account--
                    (A) the poverty of the population to be targeted by 
                the qualified entity; and
                    (B) the ability of the qualified entity to obtain 
                such matching funds.
            (3) In-kind contributions.--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.

SEC. 205. WAIVER PROGRAM.

    (a) Establishment.--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.
    (b) Authorization.--The Board shall grant a waiver to a qualified 
areas that has been selected by the Board as a winner under the 
National Competition.
    (c) Provisions of Law To Be Waived.--The provisions of law 
described in this subsection are the following:
            (1) The Community Services Block Grant Act (42 U.S.C. 9901 
        et seq.).
            (2) The Head Start Act (42 U.S.C. 9831 et seq.).
            (3) The Low-Income Home Energy Assistance Act of 1981 (42 
        U.S.C. 8621 et seq.).
            (4) The supplemental nutrition assistance program under the 
        Richard B. Russell National School Lunch Act (7 U.S.C. 2011 et 
        seq.).
            (5) The Weatherization Assistance for Low-Income Persons 
        Program under the Energy Conservation and Production Act (42 
        U.S.C. 6861 et seq.).
            (6) The Jobs Corps program under subtitle C of title I of 
        the Workforce Investment Act of 1998 (29 U.S.C. 2881 et seq.).
            (7) The Temporary Assistance to Needy Families Program 
        under title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.).
            (8) The Workforce Investment Act of 1998 (29 U.S.C. 2801 et 
        seq.).
    (d) Hold Harmless.--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.

SEC. 206. TAX INCENTIVES.

    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.

SEC. 207. APPLICATION AND ADMINISTRATION.

    (a) Design Principles.--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)):
            (1) Basing poverty reduction and prevention services on the 
        Human Development Index as a measure of the level of poverty 
        for individuals and households.
            (2) 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:
                    (A) 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.
                    (B) 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.
                    (C) For individuals at or below the Federal Poverty 
                Guidelines, the continued provision of long term 
                services shall be made available.
            (3) An individual opportunity plan (as provided for in 
        subsection (b)).
            (4) Intensive client advocacy, as defined in guidelines to 
        be developed and published by the Board.
            (5) Detailed evaluation practices, as defined in guidelines 
        to be developed and published by the Board.
    (b) Individual Opportunity Plans.--The Board shall develop and 
publish guidelines for the establishment of individual opportunity 
plans, which, at a minimum shall consist of--
            (1) an assessment of the unique strengths and needs of the 
        individual and the identification of services appropriate to 
        meet such needs; and
            (2) 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.
    (c) Participation in National Competition.--The Board shall select 
a total of 10 qualified areas for participation in the National 
Competition. Such areas shall include--
            (1) not less than 3 rural areas as defined by this Act; and
            (2) 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.

                TITLE III--COMMUNITY RENEWAL INCENTIVES

SEC. 301. COMMUNITY RENEWAL SAVINGS.

    (a) In General.--Each Local Opportunity Board shall implement a 
method to calculate the community renewal savings achieved through the 
implementation of its Local Opportunity Plan.
    (b) Community Renewal Savings.--For the purposes of this Act, the 
term ``community renewal savings'' 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.
    (c) Factors.--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:
            (1) Present dollar value of increasing the income of an 
        individual successfully assisted by a Local Opportunity Plan.
            (2) Present dollar value of an individual graduating high 
        school.
            (3) Funds expended by the jurisdiction to assist an 
        individual in each Local Opportunity Plan.
            (4) Funds expended if an individual does not graduate high 
        school.
    (d) Allocation.--The community renewal savings of a Local 
Opportunity Board shall be allocated as follows:
            (1) 50 percent to reduce the public deficit.
            (2) 25 percent to fund community tax incentives.
            (3) 25 percent to fund, reinvest in, and expand programs 
        and services under this Act.
    (e) Program Cost-Benefit Ratio.--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--
            (1) the cost of the program measured by dollars; over
            (2) the benefit of the program expressed in dollars.
    (f) Example.--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.

SEC. 302. COMMUNITY TAX INCENTIVES.

    (a) In General.--A dollar amount equal to 25 percent of the 
community renewal savings shall be allocated to the community tax 
incentives.
    (b) Community Tax Incentives.--The community tax incentives shall 
consist of the following:
            (1) Renewal employer refundable credit.
            (2) Unrelated business taxable income deduction.
            (3) Qualified community renewal contribution.
            (4) High school graduation tax credit.
            (5) Modified new markets tax credit.
            (6) Community renewal bonds.

SEC. 303. RENEWAL EMPLOYER REFUNDABLE CREDIT.

    (a) In General.--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.
    (b) Retained Worker.--For purposes of this section, the term 
``retained worker'' means any individual--
            (1) whose principal place of abode is within the qualified 
        area;
            (2) substantially all of the services performed by such 
        individual during the taxable year are rendered within the 
        qualified area;
            (3) who begins employment with a qualified opportunity 
        employer after the commencement of the program period;
            (4) 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;
            (5) 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;
            (6) who is not an individual described in section 51(i)(1) 
        of the Internal Revenue Code of 1986 (applied by substituting 
        ``qualified opportunity employer'' for ``taxpayer'' each place 
        that term appears);
            (7) who was employed by the qualified opportunity employer 
        on any date during the taxable year;
            (8) who was so employed by the qualified opportunity 
        employer for a period of not less than 52 consecutive weeks;
            (9) 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
            (10) who receives health benefits at least equal to 
        essential health benefits, as defined under section 1302 of the 
        Patient Protection and Affordable Care Act.
    (c) Qualified Opportunity Employer.--
            (1) In general.--For purposes of this section, the term 
        ``qualified opportunity employer'' means any employer--
                    (A) having a place of business in the qualified 
                area;
                    (B) subject to remit withholding and employment 
                taxes to the United States; and
                    (C) 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.
            (2) Types of qualified opportunity employers.--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.
    (d) Limitation on Carrybacks.--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.

SEC. 304. UNRELATED BUSINESS TAXABLE INCOME DEDUCTION.

    (a) In General.--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.
    (b) Community Renewal Expenditure.--For purposes of this section, 
the term ``community renewal expenditure'' means an expenditure made by 
a qualified opportunity organization in furtherance of a qualified 
opportunity program or service.
    (c) Qualified Opportunity Organization.--For purposes of this 
section, the term ``qualified opportunity organization'' means an 
organization--
            (1) 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
            (2) 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.
    (d) Qualified Opportunity Program or Service.--For purposes of this 
section, the term ``qualified opportunity program or service'' 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.

SEC. 305. QUALIFIED COMMUNITY RENEWAL CONTRIBUTION.

    (a) In General.--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.
    (b) Qualified Community Renewal Contribution.--For purposes of this 
section, the term qualified ``community renewal contribution'' 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)).
    (c) Increased Charitable Contribution Deduction Limitation.--For 
the purposes of this section, section 170 of the Internal Revenue Code 
of 1986 is applied--
            (1) in the flush language of subsection (b)(1)(A), by 
        substituting ``75 percent'' for ``50 percent''; and
            (2) in subsection (b)(2)(A), by substituting ``15 percent'' 
        for ``10 percent''.
    (d) Exclusion From Alternative Minimum Taxable Income.--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.

SEC. 306. HIGH SCHOOL GRADUATION TAX CREDIT.

    (a) In General.--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.
    (b) Eligible Graduate.--For the purposes of this section, the term 
``eligible graduate'' means any individual who graduates from a 
qualified opportunity school.
    (c) Qualified Opportunity School.--For the purposes of this 
section, the term ``qualified opportunity school'' means--
            (1) a secondary school located in the qualified area that 
        includes grade 12; and
            (2) is designated by the Local Opportunity Board as a 
        qualified opportunity school based on certain predetermined 
        criteria, such as the average graduation rate.
    (d) No Limitation.--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.

SEC. 307. MODIFIED NEW MARKETS TAX CREDIT.

    (a) In General.--In the case of any taxable year during the program 
period, the term ``low-income community'' as defined in section 45D of 
the Internal Revenue Code of 1986 shall include the area within a 
qualified area.
    (b) Qualified Equity Investment.--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.

SEC. 308. EARNED INCOME TAX CREDIT.

    (a) In General.--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.
    (b) Adoption.--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.
    (c) Termination.--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.
    (d) Reports.--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.

SEC. 309. COMMUNITY RENEWAL BONDS.

    (a) In General.--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.
    (b) Community Renewal Bonds.--Community renewal bonds shall be 
backed by the full faith and credit of the United States Government.
    (c) Allocation.--Proceeds from the sale of community renewal bonds 
shall be allocated evenly among the Local Opportunity Boards.
    (d) Term.--Community renewal bonds shall have a maturity date of 7 
years from the date of issuance.
    (e) Repayment.--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.

SEC. 310. ANTI-CORRUPTION PROVISION.

    It shall be unlawful for any person--
            (1) to claim a community renewal incentive who does not 
        meet the requirements set forth in this Act; and
            (2) to use funds appropriated under this Act for any 
        purpose for which such funds were not authorized.

TITLE IV--COMPETITIONS FOR INNOVATION IN CLIENT ADVOCACY AND EVALUATION

SEC. 401. CLIENT ADVOCACY COMPETITION.

    (a) In General.--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.
    (b) Eligible Entity.--The Board shall establish criteria that an 
entity must comply with to be considered an eligible entity for 
purposes of this section
    (c) Priority Consideration.--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--
            (1) single source data entry that will be imported into 
        multiple data entry points;
            (2) a user-friendly interface;
            (3) data that is interoperable across numerous programs;
            (4) calculations based on the Human Development Index or 
        another alternative poverty measurement;
            (5) security requirements;
            (6) assisting the case manager and consumer with 
        establishing short and long term goals; and
            (7) low-cost or cost-effective replication abilities.
    (d) Client Advocacy and Consumer Services Technology.--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.

SEC. 402. EVALUATION COMPETITION.

    (a) In General.--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.
    (b) Eligible Entity.--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.
    (c) Social Service Evaluation.--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.

                      TITLE V--REPORT TO CONGRESS

SEC. 501. REPORT TO CONGRESS.

    (a) Board.--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--
            (1) summarizes all activities carried out under this Act; 
        and
            (2) sets forth any findings, conclusions, or 
        recommendations of the Board as a result of such activities.
    (b) Government Accountability Office.--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--
            (1) a description of the savings in Federal programs 
        accrued as a result of this Act;
            (2) a description of the success and effectiveness of the 
        reforms contained in this Act; and
            (3) recommendations for improvement in the administration 
        of the programs under this Act.

               TITLE VI--AUTHORIZATION OF APPROPRIATIONS

SEC. 601. AUTHORIZATION OF APPROPRIATIONS.

    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.
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