[Congressional Record Volume 149, Number 56 (Tuesday, April 8, 2003)]
[Senate]
[Pages S4975-S4981]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 526. Mr. GRASSLEY (for himself and Mr. Baucus) proposed an 
amendment to the bill S. 476, to provide incentives for charitable 
contributions by individuals and businesses, to improve the public 
disclosure of activities of exempt organizations, and to enhance the 
ability of low-income Americans to gain financial security by building 
assets, and for other purposes; as follows:

       On page 24, strike lines 18 through 20, and insert the 
     following:
       ``(i) In general.--In the case of any such contributions by 
     a taxpayer who is an eligible farmer or rancher for the 
     taxable year in which such contributions are made--

       On page 45, between lines 11 and 12, insert the following:

[[Page S4976]]

     SEC. 113. 10-YEAR DIVESTITURE PERIOD FOR CERTAIN EXCESS 
                   BUSINESS HOLDINGS OF PRIVATE FOUNDATIONS.

       (a) In General.--Section 4943(c) (relating to excess 
     business holdings) is amended by redesignating paragraph (7) 
     as paragraph (8) and by inserting after paragraph (6) the 
     following new paragraph:
       ``(7) 10-year period to dispose of certain large gifts and 
     bequests.--
       ``(A) In general.--Paragraph (6) shall be applied by 
     substituting `10-year period' for `5-year period' if--
       ``(i) upon the election of a private foundation, it is 
     established to the satisfaction of the Secretary that--

       ``(I) the excess business holdings (or increase in excess 
     business holdings) in a business enterprise by the private 
     foundation in an amount which is not less than $1,000,000,000 
     is the result of a gift or bequest the fair market value of 
     which is not less than $1,000,000,000, and
       ``(II) after such gift or bequest, the private foundation 
     does not have effective control of such business enterprise 
     to which such gift or bequest relates,

       ``(ii) subject to subparagraph (C), the private foundation 
     submits to the Secretary with such election a reasonable plan 
     for disposing of all of the excess business holdings related 
     to such gift or bequest, and
       ``(iii) the private foundation certifies annually to the 
     Secretary that the private foundation is complying with the 
     plan submitted under this paragraph, the requirement under 
     clause (i)(II), and the rules under subparagraph (D).
       ``(B) Election.--Any election under subparagraph (A)(i) 
     shall be made not later than 6 months after the date of such 
     gift or bequest and shall--
       ``(i) establish the fair market value of such gift or 
     bequest, and
       ``(ii) include a certification that the requirement of 
     subparagraph (A)(i)(II) is met.
       ``(C) Reasonableness of plan.--
       ``(i) In general.--Any plan submitted under subparagraph 
     (A)(ii) shall be presumed reasonable unless the Secretary 
     notifies the private foundation to the contrary not later 
     than 6 months after the submission of such plan.
       ``(ii) Resubmission.--Upon notice by the Secretary under 
     clause (i), the private foundation may resubmit a plan and 
     shall have the burden of establishing the reasonableness of 
     such plan to the Secretary.
       ``(D) Special rules.--During any period in which an 
     election under this paragraph is in effect--
       ``(i) section 4941(d)(2) (other than subparagraph (A) 
     thereof) shall apply only with respect to any disqualified 
     person described in section 4941(a)(1)(B),
       ``(ii) section 4942(a) shall be applied by substituting 
     `third' for `second' both places it appears,
       ``(iii) section 4942(e)(1) shall be applied by substituting 
     `12 percent' for `5 percent', and
       ``(iv) section 4942(g)(1)(A) shall be applied without 
     regard to any portion of reasonable and necessary 
     administrative expenses.
       ``(E) Inflation adjustment.--In the case of any taxable 
     year beginning in a calendar year after 2003, the 
     $1,000,000,000 amount under subparagraph (A)(i)(I) shall be 
     increased by an amount equal to such dollar amount, 
     multiplied by the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year, determined by 
     substituting `2002' for `1992' in subparagraph (B) thereof. 
     If the $1,000,000,000 amount as increased under this 
     subparagraph is not a multiple of $100,000,000, such amount 
     shall be rounded to the next lowest multiple of 
     $100,000,000.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to gifts and bequests made after the date of the 
     enactment of this Act.
       On page 86, between lines 11 and 12, insert the following:

     SEC. 313. EXEMPTION OF QUALIFIED 501(C)(3) BONDS FOR NURSING 
                   HOMES FROM FEDERAL GUARANTEE PROHIBITIONS.

       (a) In General.--Section 149(b)(3) (relating to exceptions) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(E) Exception for qualified 501(c)(3) bonds for nursing 
     homes.--
       ``(i) In general.--Paragraph (1) shall not apply to any 
     qualified 501(c)(3) bond issued before the date which is 1 
     year after the date of the enactment of this subparagraph for 
     the benefit of an organization described in section 
     501(c)(3), if such bond is part of an issue the proceeds of 
     which are used to finance 1 or more of the following 
     facilities primarily for the benefit of the elderly:

       ``(I) Licensed nursing home facility.
       ``(II) Licensed or certified assisted living facility.
       ``(III) Licensed personal care facility.
       ``(IV) Continuing care retirement community.

       ``(ii) Limitation.--With respect to any calendar year, 
     clause (i) shall not apply to any bond described in such 
     clause if the aggregate authorized face amount of the issue 
     of which such bond is a part when increased by the 
     outstanding amount of such bonds issued by the issuer for 
     such calendar year exceeds $15,000,000.
       ``(iii) Continuing care retirement community.--For purposes 
     of this subparagraph, the term `continuing care retirement 
     community' means a community which provides, on the same 
     campus, a continuum of residential living options and support 
     services to persons at least 60 years of age under a written 
     agreement. For purposes of the preceding sentence, the 
     residential living options shall include independent living 
     units, nursing home beds, and either assisted living units or 
     personal care beds.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. 314. EXCISE TAXES EXEMPTION FOR BLOOD COLLECTOR 
                   ORGANIZATIONS.

       (a) Exemption From Imposition of Special Fuels Tax.--
     Section 4041(g) (relating to other exemptions) is amended by 
     striking ``and'' at the end of paragraph (3), by striking the 
     period in paragraph (4) and inserting ``; and'', and by 
     inserting after paragraph (4) the following new paragraph:
       ``(5) with respect to the sale of any liquid to a qualified 
     blood collector organization (as defined in section 
     7701(a)(48)) for such organization's exclusive use, or with 
     respect to the use by a qualified blood collector 
     organization of any liquid as a fuel.''.
       (b) Exemption From Manufacturers Excise Tax.--
       (1) In general.--Section 4221(a) (relating to certain tax-
     free sales) is amended by striking ``or'' at the end of 
     paragraph (4), by adding ``or'' at the end of paragraph (5), 
     and by inserting after paragraph (5) the following new 
     paragraph:
       ``(6) to a qualified blood collector organization (as 
     defined in section 7701(a)(48)) for such organization's 
     exclusive use,''.
       (2) Conforming amendments.--
       (A) The second sentence of section 4221(a) is amended by 
     striking ``Paragraphs (4) and (5)'' and inserting 
     ``Paragraphs (4), (5), and (6)''.
       (B) Section 6421(c) is amended by striking ``or (5)'' and 
     inserting ``(5), or (6)''.
       (c) Exemption From Communication Excise Tax.--
       (1) In general.--Section 4253 (relating to exemptions) is 
     amended by redesignating subsection (k) as subsection (l) and 
     inserting after subsection (j) the following new subsection:
       ``(k) Exemption for Qualified Blood Collector 
     Organizations.--Under regulations provided by the Secretary, 
     no tax shall be imposed under section 4251 on any amount paid 
     by a qualified blood collector organization (as defined in 
     section 7701(a)) for services or facilities furnished to such 
     organization.''.
       (2) Conforming amendment.--Section 4253(l), as redesignated 
     by paragraph (1), is amended by striking ``or (j)'' and 
     inserting ``(j), or (k)''.
       (d) Credit for Refund for Certain Taxes on Sales and 
     Services.--
       (1) Deemed overpayment.--
       (A) In general.--Section 6416(b)(2) is amended by 
     redesignating subparagraphs (E) and (F) as subparagraphs (F) 
     and (G), respectively, and by inserting after subparagraph 
     (D) the following new subparagraph:
       ``(E) sold to a qualified blood collector organization's 
     (as defined in section 7701(a)(48)) for such organization's 
     exclusive use;''.
       (B) Conforming amendments.--Section 6416(b)(2) is amended--
       (i) by striking ``Subparagraphs (C) and (D)'' and inserting 
     ``Subparagraphs (C), (D), and (E)'', and
       (ii) by striking ``(C), and (D)'' and inserting ``(C), (D), 
     and (E)''.
       (2) Sales of tires.--Clause (ii) of section 6416(b)(4)(B) 
     is amended by inserting ``sold to a qualified blood collector 
     organization (as defined in section 7701(a)(48)),'' after 
     ``for its exclusive use,''.
       (e) Definition of Qualified Blood Collector Organization.--
     Section 7701(a) is amended by inserting at the end the 
     following new paragraph:
       ``(48) Qualified blood collector organization.--For 
     purposes of this title, the term `qualified blood collector 
     organization' means an organization which is--
       ``(A) described in section 501(c)(3) and exempt from tax 
     under section 501(a),
       ``(B) registered by the Food and Drug Administration to 
     collect blood, and
       ``(C) primarily engaged in the activity of the collection 
     of blood.''.
       (f) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply with respect to 
     excise taxes imposed on sales or uses occurring on or after 
     October 1, 2003.
       (2) Refund of gasoline tax.--For purposes of section 
     6421(c) of the Internal Revenue Code of 1986 and any other 
     provision that allows for a refund or a payment in respect of 
     an excise tax payable at a level before the sale to a 
     qualified blood collector organization, the amendments made 
     by this section shall apply with respect to sales to a 
     qualified collector organization on or after October 1, 2003.

     SEC. 315. PILOT PROJECT FOR FOREST CONSERVATION ACTIVITIES.

       (a) Tax-Exempt Bond Financing.--
       (1) In general.--For purposes of the Internal Revenue Code 
     of 1986, any qualified forest conservation bond shall be 
     treated as an exempt facility bond under section 142 of such 
     Code.
       (2) Qualified forest conservation bond.--For purposes of 
     this section, the term ``qualified forest conservation bond'' 
     means any bond issued as part of an issue if--
       (A) 95 percent or more of the net proceeds (as defined in 
     section 150(a)(3) of such Code) of such issue are to be used 
     for qualified project costs,
       (B) such bond is issued for a qualified organization, and

[[Page S4977]]

       (C) such bond is issued before December 31, 2006.
       (3) Limitation on aggregate amount issued.--
       (A) In general.--The maximum aggregate face amount of bonds 
     which may be issued under this subsection shall not exceed 
     $2,000,000,000 for all projects (excluding refunding bonds).
       (B) Allocation of limitation.--The limitation described in 
     subparagraph (A) shall be allocated by the Secretary of the 
     Treasury among qualified organizations based on criteria 
     established by the Secretary not later than 180 days after 
     the date of the enactment of this section, after consultation 
     with the Chief of the Forest Service.
       (4) Qualified project costs.--For purposes of this 
     subsection, the term ``qualified project costs'' means the 
     sum of--
       (A) the cost of acquisition by the qualified organization 
     from an unrelated person of forests and forest land which at 
     the time of acquisition or immediately thereafter are subject 
     to a conservation restriction described in subsection (c)(2),
       (B) capitalized interest on the qualified forest 
     conservation bonds for the 3-year period beginning on the 
     date of issuance of such bonds, and
       (C) credit enhancement fees which constitute qualified 
     guarantee fees (within the meaning of section 148 of such 
     Code).
       (5) Special rules.--In applying the Internal Revenue Code 
     of 1986 to any qualified forest conservation bond, the 
     following modifications shall apply:
       (A) Section 146 of such Code (relating to volume cap) shall 
     not apply.
       (B) For purposes of section 147(b) of such Code (relating 
     to maturity may not exceed 120 percent of economic life), the 
     land and standing timber acquired with proceeds of qualified 
     forest conservation bonds shall have an economic life of 35 
     years.
       (C) Subsections (c) and (d) of section 147 of such Code 
     (relating to limitations on acquisition of land and existing 
     property) shall not apply.
       (D) Section 57(a)(5) of such Code (relating to tax-exempt 
     interest) shall not apply to interest on qualified forest 
     conservation bonds.
       (6) Treatment of current refunding bonds.--Paragraphs 
     (2)(C) and (3) shall not apply to any bond (or series of 
     bonds) issued to refund a qualified forest conservation bond 
     issued before December 31, 2006, if--
       (A) the average maturity date of the issue of which the 
     refunding bond is a part is not later than the average 
     maturity date of the bonds to be refunded by such issue,
       (B) the amount of the refunding bond does not exceed the 
     outstanding amount of the refunded bond, and
       (C) the net proceeds of the refunding bond are used to 
     redeem the refunded bond not later than 90 days after the 
     date of the issuance of the refunding bond.
     For purposes of subparagraph (A), average maturity shall be 
     determined in accordance with section 147(b)(2)(A) of such 
     Code.
       (7) Effective date.--This subsection shall apply to 
     obligations issued on or after the date which is 180 days 
     after the enactment of this Act.
       (b) Items From Qualified Harvesting Activities Not Subject 
     to Tax or Taken Into Account.--
       (1) In general.--Income, gains, deductions, losses, or 
     credits from a qualified harvesting activity conducted by a 
     qualified organization shall not be subject to tax or taken 
     into account under subtitle A of the Internal Revenue Code of 
     1986.
       (2) Limitation.--The amount of income excluded from gross 
     income under paragraph (1) for any taxable year shall not 
     exceed the amount used by the qualified organization to make 
     debt service payments during such taxable year for qualified 
     forest conservation bonds.
       (3) Qualified harvesting activity.--For purposes of 
     paragraph (1)--
       (A) In general.--The term ``qualified harvesting activity'' 
     means the sale, lease, or harvesting, of standing timber--
       (i) on land owned by a qualified organization which was 
     acquired with proceeds of qualified forest conservation 
     bonds,
       (ii) with respect to which a written acknowledgement has 
     been obtained by the qualified organization from the State or 
     local governments with jurisdiction over such land that the 
     acquisition lessens the burdens of such government with 
     respect to such land, and
       (iii) pursuant to a qualified conservation plan adopted by 
     the qualified organization.
       (B) Exceptions.--
       (i) Cessation as qualified organization.--The term 
     ``qualified harvesting activity'' shall not include any sale, 
     lease, or harvesting for any period during which the 
     organization ceases to qualify as a qualified organization.
       (ii) Exceeding limits on harvesting.--The term ``qualified 
     harvesting activity'' shall not include any sale, lease, or 
     harvesting of standing timber on land acquired with proceeds 
     of qualified forest conservation bonds to the extent that--

       (I) the average annual area of timber harvested from such 
     land exceeds 2.5 percent of the total area of such land or,
       (II) the quantity of timber removed from such land exceeds 
     the quantity which can be removed from such land annually in 
     perpetuity on a sustained-yield basis with respect to such 
     land.

     The limitations under subclauses (I) and (II) shall not apply 
     to post-fire restoration and rehabilitation or sanitation 
     harvesting of timber stands which are substantially damaged 
     by fire, windthrow, or other catastrophes, or which are in 
     imminent danger from insect or disease attack.
       (4) Termination.--This subsection shall not apply to any 
     qualified harvesting activity of a qualified organization 
     occurring after the date on which there is no outstanding 
     qualified forest conservation bond with respect to such 
     qualified organization or any such bond ceases to be a tax-
     exempt bond.
       (5) Partial recapture of benefits if harvesting limit 
     exceeded.--If, as of the date that this subsection ceases to 
     apply under paragraph (3), the average annual area of timber 
     harvested from the land exceeds the requirement of paragraph 
     (3)(B)(ii)(I), the tax imposed by chapter 1 of the Internal 
     Revenue Code of 1986 shall be increased, under rules 
     prescribed by the Secretary of the Treasury, by the sum of 
     the tax benefits attributable to such excess and interest at 
     the underpayment rate under section 6621 of such Code for the 
     period of the underpayment.
       (c) Definitions.--For purposes of this section--
       (1) Qualified conservation plan.--The term ``qualified 
     conservation plan'' means a multiple land use program or plan 
     which--
       (A) is designed and administered primarily for the purposes 
     of protecting and enhancing wildlife and fish, timber, scenic 
     attributes, recreation, and soil and water quality of the 
     forest and forest land,
       (B) mandates that conservation of forest and forest land is 
     the single-most significant use of the forest and forest 
     land, and
       (C) requires that timber harvesting be consistent with--
       (i) restoring and maintaining reference conditions for the 
     region's ecotype,
       (ii) restoring and maintaining a representative sample of 
     young, mid, and late successional forest age classes,
       (iii) maintaining or restoring the resources' ecological 
     health for purposes of preventing damage from fire, insect, 
     or disease,
       (iv) maintaining or enhancing wildlife or fish habitat, or
       (v) enhancing research opportunities in sustainable 
     renewable resource uses.
       (2) Conservation restriction.--The conservation restriction 
     described in this paragraph is a restriction which--
       (A) is granted in perpetuity to an unrelated person which 
     is described in section 170(h)(3) of such Code and which, in 
     the case of a nongovernmental unit, is organized and operated 
     for conservation purposes,
       (B) meets the requirements of clause (ii) or (iii)(II) of 
     section 170(h)(4)(A) of such Code,
       (C) obligates the qualified organization to pay the costs 
     incurred by the holder of the conservation restriction in 
     monitoring compliance with such restriction, and
       (D) requires an increasing level of conservation benefits 
     to be provided whenever circumstances allow it.
       (3) Qualified organization.--The term ``qualified 
     organization'' means an organization--
       (A) which is a nonprofit organization substantially all the 
     activities of which are charitable, scientific, or 
     educational, including acquiring, protecting, restoring, 
     managing, and developing forest lands and other renewable 
     resources for the long-term charitable, educational, 
     scientific and public benefit,
       (B) more than half of the value of the property of which 
     consists of forests and forest land acquired with the 
     proceeds from qualified forest conservation bonds,
       (C) which periodically conducts educational programs 
     designed to inform the public of environmentally sensitive 
     forestry management and conservation techniques,
       (D) which has at all times a board of directors--
       (i) at least 20 percent of the members of which represent 
     the holders of the conservation restriction described in 
     paragraph (2),
       (ii) at least 20 percent of the members of which are public 
     officials, and
       (iii) not more than one-third of the members of which are 
     individuals who are or were at any time within 5 years before 
     the beginning of a term of membership on the board, an 
     employee of, independent contractor with respect to, officer 
     of, director of, or held a material financial interest in, a 
     commercial forest products enterprise with which the 
     qualified organization has a contractual or other financial 
     arrangement,
       (E) the bylaws of which require at least two-thirds of the 
     members of the board of directors to vote affirmatively to 
     approve the qualified conservation plan and any change 
     thereto, and
       (F) upon dissolution, is required to dedicate its assets 
     to--
       (i) an organization described in section 501(c)(3) of such 
     Code which is organized and operated for conservation 
     purposes, or
       (ii) a governmental unit described in section 170(c)(1) of 
     such Code.
       (4) Unrelated person.--The term ``unrelated person'' means 
     a person who is not a related person.
       (5) Related person.--A person shall be treated as related 
     to another person if--
       (A) such person bears a relationship to such other person 
     described in section 267(b) (determined without regard to 
     paragraph (9) thereof), or 707(b)(1), of such Code, 
     determined by substituting ``25 percent'' for ``50 percent'' 
     each place it appears therein, and

[[Page S4978]]

       (B) in the case such other person is a non-profit 
     organization, if such person controls directly or indirectly 
     more than 25 percent of the governing body of such 
     organization.

     SEC. 316. CLARIFICATION OF TREATMENT OF JOHNNY MICHEAL SPANN 
                   PATRIOT TRUSTS.

       (a) Clarification of Tax-Exempt Status of Trusts.--
       (1) In general.--Subsection (b) of section 601 of the 
     Homeland Security Act of 2002 is amended to read as follows:
       ``(b) Designation of Johnny Micheal Spann Patriot Trusts.--
     Any charitable corporation, fund, foundation, or trust (or 
     separate fund or account thereof) which is described in 
     section 501(c)(3) of the Internal Revenue Code of 1986 and 
     exempt from tax under section 501(a) of such Code and meets 
     the requirements described in subsection (c) shall be 
     eligible to designate itself as a `Johnny Micheal Spann 
     Patriot trust'.''.
       (2) Conforming amendment.--Section 601(c)(3) of such Act is 
     amended by striking ``based'' and all that follows through 
     ``Trust''.
       (b) Publicly Available Audits.--Section 601(c)(7) of the 
     Homeland Security Act of 2002 is amended by striking ``shall 
     be filed with the Internal Revenue Service, and shall be open 
     to public inspection'' and inserting ``shall be open to 
     public inspection consistent with section 6104(d)(1) of the 
     Internal Revenue Code of 1986''.
       (c) Clarification of Required Distributions to Private 
     Foundation.--
       (1) In general.--Section 601(c)(8) of the Homeland Security 
     Act of 2002 is amended by striking ``not placed'' and all 
     that follows and inserting ``not so distributed shall be 
     contributed to a private foundation which is described in 
     section 509(a) of the Internal Revenue Code of 1986 and 
     exempt from tax under section 501(a) of such Code and which 
     is dedicated to such beneficiaries not later than 36 months 
     after the end of the fiscal year in which such funds, 
     donations, or earnings are received.''.
       (2) Conforming amendments.--Section 601(c) of such Act is 
     amended--
       (A) by striking ``(or, if placed in a private foundation, 
     held in trust for)'' in paragraph (1) and inserting ``(or 
     contributed to a private foundation described in paragraph 
     (8) for the benefit of)'', and
       (B) by striking ``invested in a private foundation'' in 
     paragraph (2) and inserting ``contributed to a private 
     foundation described in paragraph (8)''.
       (d) Requirements for Distributions From Trusts.--Section 
     601(c)(9)(A) of the Homeland Security Act of 2002 is amended 
     by striking ``should'' and inserting ``shall''.
       (e) Regulations Regarding Notification of Trust 
     Beneficiaries.--Section 601(f) of the Homeland Security Act 
     of 2002 is amended by striking ``this section'' and inserting 
     ``subsection (e)''.
       (f) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of section 
     601 of the Homeland Security Act of 2002.
       On page 100, line 20, strike ``7525'' and insert ``7528''.
       On page 101, after line 8, strike ``7525'' and insert 
     ``7528''.
       On page 123, before line 22, insert the following:
       (e) Report Regarding Account Maintenance Fees.--The 
     Secretary of the Treasury shall study the adequacy of the 
     amount specified in section 45G(c)(2) of the Internal Revenue 
     Code of 1986 (as added by this section). Not later than 
     December 31, 2009, the Secretary of the Treasury shall report 
     the findings of the study described in the preceding sentence 
     to Congress.
       On page 123, line 22, strike ``(e)'' and insert ``(f)''.
       On page 125, strike lines 10 through 12, and insert the 
     following:
       (a) In General.--Section 7701, as amended by this Act, is 
     amended by redesignating subsection (o) as subsection (p) and 
     by inserting after subsection (n) the following new 
     subsection:
       On page 125, line 13, strike ``(m)'' and insert ``(o)''.
       On page 148, line 21, strike ``section 7701(m)(1)'' and 
     insert ``section 7701(o)(1)''.
       On page 148, line 24, strike ``section 7701(m)(2)'' and 
     insert ``section 7701(o)(2)''.

       On page 175, after line 20, add the following:

     SEC. 723. SECURITIES CIVIL ENFORCEMENT PROVISIONS.

       (a) Authority To Assess Civil Money Penalties.--
       (1) Securities act of 1933.--Section 8A of the Securities 
     Act of 1933 (15 U.S.C. 77h-1) is amended by adding at the end 
     the following new subsection:
       ``(g) Authority of the Commission To Assess Money 
     Penalty.--
       ``(1) In general.--In any cease-and-desist proceeding under 
     subsection (a), the Commission may impose a civil monetary 
     penalty if it finds, on the record after notice and 
     opportunity for hearing, that a person is violating, has 
     violated, or is or was a cause of the violation of, any 
     provision of this title or any rule or regulation thereunder, 
     and that such penalty is in the public interest.
       ``(2) Maximum amount of penalty.--
       ``(A) First tier.--The maximum amount of penalty for each 
     act or omission described in paragraph (1) shall be $100,000 
     for a natural person or $250,000 for any other person.
       ``(B) Second tier.--Notwithstanding subparagraph (A), the 
     maximum amount of penalty for such act or omission described 
     in paragraph (1) shall be $500,000 for a natural person or 
     $1,000,000 for any other person, if the act or omission 
     involved fraud, deceit, manipulation, or deliberate or 
     reckless disregard of a statutory or regulatory requirement.
       ``(C) Third tier.--Notwithstanding subparagraphs (A) and 
     (B), the maximum amount of penalty for each act or omission 
     described in paragraph (1) shall be $1,000,000 for a natural 
     person or $2,000,000 for any other person, if--
       ``(i) the act or omission involved fraud, deceit, 
     manipulation, or deliberate or reckless disregard of a 
     statutory or regulatory requirement; and
       ``(ii) such act or omission directly or indirectly resulted 
     in substantial losses or created a significant risk of 
     substantial losses to other persons or resulted in 
     substantial pecuniary gain to the person who committed the 
     act or omission.
       ``(3) Evidence concerning ability to pay.--In any 
     proceeding in which the Commission or the appropriate 
     regulatory agency may impose a penalty under this section, a 
     respondent may present evidence of the ability of the 
     respondent to pay such penalty. The Commission or the 
     appropriate regulatory agency may, in its discretion, 
     consider such evidence in determining whether the penalty is 
     in the public interest. Such evidence may relate to the 
     extent of the person's ability to continue in business and 
     the collectability of a penalty, taking into account any 
     other claims of the United States or third parties upon the 
     assets of that person and the amount of the assets of that 
     person.''.
       (2) Securities exchange act of 1934.--Section 21B(a) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78u-2(a)) is 
     amended--
       (A) in paragraph (4), by striking ``supervision;'' and all 
     that follows through the end of the subsection and inserting 
     ``supervision.'';
       (B) by redesignating paragraphs (1) through (4) as 
     subparagraphs (A) through (D), respectively, and moving the 
     margins 2 ems to the right;
       (C) by inserting ``that such penalty is in the public 
     interest and'' after ``hearing,'';
       (D) by striking ``In any proceeding'' and inserting the 
     following:
       ``(1) In general.--In any proceeding''; and
       (E) by adding at the end the following:
       ``(2) Other money penalties.--In any proceeding under 
     section 21C against any person, the Commission may impose a 
     civil monetary penalty if it finds, on the record after 
     notice and opportunity for hearing, that such person is 
     violating, has violated, or is or was a cause of the 
     violation of, any provision of this title or any rule or 
     regulation thereunder, and that such penalty is in the public 
     interest.''.
       (3) Investment company act of 1940.--Section 9(d)(1) of the 
     Investment Company Act of 1940 (15 U.S.C. 80a-9(d)(1)) is 
     amended--
       (A) in subparagraph (C), by striking ``therein;'' and all 
     that follows through the end of the paragraph and inserting 
     ``supervision.'';
       (B) by redesignating subparagraphs (A) through (C) as 
     clauses (i) through (iii), respectively, and moving the 
     margins 2 ems to the right;
       (C) by inserting ``that such penalty is in the public 
     interest and'' after ``hearing,'';
       (D) by striking ``In any proceeding'' and inserting the 
     following:
       ``(A) In general.--In any proceeding''; and
       (E) by adding at the end the following:
       ``(B) Other money penalties.--In any proceeding under 
     subsection (f) against any person, the Commission may impose 
     a civil monetary penalty if it finds, on the record after 
     notice and opportunity for hearing, that such person is 
     violating, has violated, or is or was a cause of the 
     violation of, any provision of this title or any rule or 
     regulation thereunder, and that such penalty is in the public 
     interest.''.
       (4) Investment advisers act of 1940.--Section 203(i)(1) of 
     the Investment Advisers Act of 1940 (15 U.S.C. 80b-3(i)(1)) 
     is amended--
       (A) in subparagraph (D), by striking ``supervision;'' and 
     all that follows through the end of the paragraph and 
     inserting ``supervision.'';
       (B) by redesignating subparagraphs (A) through (D) as 
     clauses (i) through (iv), respectively, and moving the 
     margins 2 ems to the right;
       (C) by inserting ``that such penalty is in the public 
     interest and'' after ``hearing,'';
       (D) by striking ``In any proceeding'' and inserting the 
     following:
       ``(A) In general.--In any proceeding''; and
       (E) by adding at the end the following:
       ``(B) Other money penalties.--In any proceeding under 
     subsection (k) against any person, the Commission may impose 
     a civil monetary penalty if it finds, on the record after 
     notice and opportunity for hearing, that such person is 
     violating, has violated, or is or was a cause of the 
     violation of, any provision of this title or any rule or 
     regulation thereunder, and that such penalty is in the public 
     interest.''.
       (b) Increased Maximum Civil Money Penalties.--
       (1) Securities act of 1933.--Section 20(d)(2) of the 
     Securities Act of 1933 (15 U.S.C. 77t(d)(2)) is amended--
       (A) in subparagraph (A)(i)--
       (i) by striking ``$5,000'' and inserting ``$100,000''; and
       (ii) by striking ``$50,000'' and inserting ``$250,000'';
       (B) in subparagraph (B)(i)--
       (i) by striking ``$50,000'' and inserting ``$500,000''; and

[[Page S4979]]

       (ii) by striking ``$250,000'' and inserting ``$1,000,000''; 
     and
       (C) in subparagraph (C)(i)--
       (i) by striking ``$100,000'' and inserting ``$1,000,000''; 
     and
       (ii) by striking ``$500,000'' and inserting ``$2,000,000''.
       (2) Securities exchange act of 1934.--
       (A) Penalties.--Section 32 of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78ff) is amended--
       (i) in subsection (b), by striking ``$100'' and inserting 
     ``$10,000''; and
       (ii) in subsection (c)--

       (I) in paragraph (1)(B), by striking ``$10,000'' and 
     inserting ``$500,000''; and
       (II) in paragraph (2)(B), by striking ``$10,000'' and 
     inserting ``$500,000''.

       (B) Insider trading.--Section 21A(a)(3) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78u-1(a)(3)) is amended by 
     striking ``$1,000,000'' and inserting ``$2,000,000''.
       (C) Administrative proceedings.--Section 21B(b) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78u-2(b)) is 
     amended--
       (i) in paragraph (1)--

       (I) by striking ``$5,000'' and inserting ``$100,000''; and
       (II) by striking ``$50,000'' and inserting ``$250,000'';

       (ii) in paragraph (2)--

       (I) by striking ``$50,000'' and inserting ``$500,000''; and
       (II) by striking ``$250,000'' and inserting ``$1,000,000''; 
     and

       (iii) in paragraph (3)--

       (I) by striking ``$100,000'' and inserting ``$1,000,000''; 
     and
       (II) by striking ``$500,000'' and inserting ``$2,000,000''.

       (D) Civil actions.--Section 21(d)(3)(B) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78u(d)(3)(B)) is amended--
       (i) in clause (i)--

       (I) by striking ``$5,000'' and inserting ``$100,000''; and
       (II) by striking ``$50,000'' and inserting ``$250,000'';

       (ii) in clause (ii)--

       (I) by striking ``$50,000'' and inserting ``$500,000''; and
       (II) by striking ``$250,000'' and inserting ``$1,000,000''; 
     and

       (iii) in clause (iii)--

       (I) by striking ``$100,000'' and inserting ``$1,000,000''; 
     and
       (II) by striking ``$500,000'' and inserting ``$2,000,000''.

       (3) Investment company act of 1940.--
       (A) Ineligibility.--Section 9(d)(2) of the Investment 
     Company Act of 1940 (15 U.S.C. 80a-9(d)(2)) is amended--
       (i) in subparagraph (A)--

       (I) by striking ``$5,000'' and inserting ``$100,000''; and
       (II) by striking ``$50,000'' and inserting ``$250,000'';

       (ii) in subparagraph (B)--

       (I) by striking ``$50,000'' and inserting ``$500,000''; and
       (II) by striking ``$250,000'' and inserting ``$1,000,000''; 
     and

       (iii) in subparagraph (C)--

       (I) by striking ``$100,000'' and inserting ``$1,000,000''; 
     and
       (II) by striking ``$500,000'' and inserting ``$2,000,000''.

       (B) Enforcement of investment company act.--Section 
     42(e)(2) of the Investment Company Act of 1940 (15 U.S.C. 
     80a-41(e)(2)) is amended--
       (i) in subparagraph (A)--

       (I) by striking ``$5,000'' and inserting ``$100,000''; and
       (II) by striking ``$50,000'' and inserting ``$250,000'';

       (ii) in subparagraph (B)--

       (I) by striking ``$50,000'' and inserting ``$500,000''; and
       (II) by striking ``$250,000'' and inserting ``$1,000,000''; 
     and

       (iii) in subparagraph (C)--

       (I) by striking ``$100,000'' and inserting ``$1,000,000''; 
     and
       (II) by striking ``$500,000'' and inserting ``$2,000,000''.

       (4) Investment advisers act of 1940.--
       (A) Registration.--Section 203(i)(2) of the Investment 
     advisers Act of 1940 (15 U.S.C. 80b-3(i)(2)) is amended--
       (i) in subparagraph (A)--

       (I) by striking ``$5,000'' and inserting ``$100,000''; and
       (II) by striking ``$50,000'' and inserting ``$250,000'';

       (ii) in subparagraph (B)--

       (I) by striking ``$50,000'' and inserting ``$500,000''; and
       (II) by striking ``$250,000'' and inserting ``$1,000,000''; 
     and

       (iii) in subparagraph (C)--

       (I) by striking ``$100,000'' and inserting ``$1,000,000''; 
     and
       (II) by striking ``$500,000'' and inserting ``$2,000,000''.

       (B) Enforcement of investment advisers act.--Section 
     209(e)(2) of the Investment advisers Act of 1940 (15 U.S.C. 
     80b-9(e)(2)) is amended--
       (i) in subparagraph (A)--

       (I) by striking ``$5,000'' and inserting ``$100,000''; and
       (II) by striking ``$50,000'' and inserting ``$250,000'';

       (ii) in subparagraph (B)--

       (I) by striking ``$50,000'' and inserting ``$500,000''; and
       (II) by striking ``$250,000'' and inserting ``$1,000,000''; 
     and

       (iii) in subparagraph (C)--

       (I) by striking ``$100,000'' and inserting ``$1,000,000''; 
     and
       (II) by striking ``$500,000'' and inserting ``$2,000,000''.

       (c) Authority To Obtain Financial Records.--Section 21(h) 
     of the Securities Exchange Act of 1934 (15 U.S.C. 78u(h)) is 
     amended--
       (1) by striking paragraphs (2) through (8);
       (2) in paragraph (9), by striking ``(9)(A)'' and all that 
     follows through ``(B) The'' and inserting ``(3) The'';
       (3) by inserting after paragraph (1), the following:
       ``(2) Access to financial records.--
       ``(A) In general.--Notwithstanding section 1105 or 1107 of 
     the Right to Financial Privacy Act of 1978, the Commission 
     may obtain access to and copies of, or the information 
     contained in, financial records of any person held by a 
     financial institution, including the financial records of a 
     customer, without notice to that person, when it acts 
     pursuant to a subpoena authorized by a formal order of 
     investigation of the Commission and issued under the 
     securities laws or pursuant to an administrative or judicial 
     subpoena issued in a proceeding or action to enforce the 
     securities laws.
       ``(B) Nondisclosure of requests.--If the Commission so 
     directs in its subpoena, no financial institution, or 
     officer, director, partner, employee, shareholder, 
     representative or agent of such financial institution, shall, 
     directly or indirectly, disclose that records have been 
     requested or provided in accordance with subparagraph (A), if 
     the Commission finds reason to believe that such disclosure 
     may--
       ``(i) result in the transfer of assets or records outside 
     the territorial limits of the United States;
       ``(ii) result in improper conversion of investor assets;
       ``(iii) impede the ability of the Commission to identify, 
     trace, or freeze funds involved in any securities 
     transaction;
       ``(iv) endanger the life or physical safety of an 
     individual;
       ``(v) result in flight from prosecution;
       ``(vi) result in destruction of or tampering with evidence;
       ``(vii) result in intimidation of potential witnesses; or
       ``(viii) otherwise seriously jeopardize an investigation or 
     unduly delay a trial.
       ``(C) Transfer of records to government authorities.--The 
     Commission may transfer financial records or the information 
     contained therein to any government authority, if the 
     Commission proceeds as a transferring agency in accordance 
     with section 1112 of the Right to Financial Privacy Act of 
     1978 (12 U.S.C. 3412), except that a customer notice shall 
     not be required under subsection (b) or (c) of that section 
     1112, if the Commission determines that there is reason to 
     believe that such notification may result in or lead to any 
     of the factors identified under clauses (i) through (viii) of 
     subparagraph (B) of this paragraph.'';
       (4) by striking paragraph (10); and
       (5) by redesignating paragraphs (11), (12), and (13) as 
     paragraphs (4), (5), and (6), respectively.

     SEC. 724. REVIEW OF STATE AGENCY BLINDNESS AND DISABILITY 
                   DETERMINATIONS.

       Section 1633 of the Social Security Act (42 U.S.C. 1383b) 
     is amended by adding at the end the following:
       ``(e)(1) The Commissioner of Social Security shall review 
     determinations, made by State agencies pursuant to subsection 
     (a) in connection with applications for benefits under this 
     title on the basis of blindness or disability, that 
     individuals who have attained 18 years of age are blind or 
     disabled as of a specified onset date. The Commissioner of 
     Social Security shall review such a determination before any 
     action is taken to implement the determination.
       ``(2)(A) In carrying out paragraph (1), the Commissioner of 
     Social Security shall review--
       ``(i) at least 25 percent of all determinations referred to 
     in paragraph (1) that are made in fiscal year 2004; and
       ``(ii) at least 50 percent of all such determinations that 
     are made in fiscal year 2005 or thereafter.
       ``(B) In carrying out subparagraph (A), the Commissioner of 
     Social Security shall, to the extent feasible, select for 
     review the determinations which the Commissioner of Social 
     Security identifies as being the most likely to be 
     incorrect.''.

                  TITLE VIII--COMPASSION CAPITAL FUND

     SEC. 801. SUPPORT FOR NONPROFIT COMMUNITY-BASED 
                   ORGANIZATIONS; DEPARTMENT OF HEALTH AND HUMAN 
                   SERVICES.

       (a) Support for Nongovernmental Organizations.--The 
     Secretary of Health and Human Services (referred to in this 
     section as ``the Secretary'') may award grants to and enter 
     into cooperative agreements with nongovernmental 
     organizations, to--
       (1) provide technical assistance for community-based 
     organizations, which may include--
       (A) grant writing and grant management assistance, which 
     may include assistance provided through workshops and other 
     guidance;
       (B) legal assistance with incorporation;
       (C) legal assistance to obtain tax-exempt status; and
       (D) information on, and referrals to, other nongovernmental 
     organizations that provide expertise in accounting, on legal 
     issues, on tax issues, in program development, and on a 
     variety of other organizational topics;

[[Page S4980]]

       (2) provide information and assistance for community-based 
     organizations on capacity building;
       (3) provide for community-based organizations information 
     on and assistance in identifying and using best practices for 
     delivering assistance to persons, families, and communities 
     in need;
       (4) provide information on and assistance in utilizing 
     regional intermediary organizations to increase and 
     strengthen the capabilities of nonprofit community-based 
     organizations;
       (5) assist community-based organizations in replicating 
     social service programs of demonstrated effectiveness; and
       (6) encourage research on the best practices of social 
     service organizations.
       (b) Support for States.--The Secretary--
       (1) may award grants to and enter into cooperative 
     agreements with States and political subdivisions of States 
     to provide seed money to establish State and local offices of 
     faith-based and community initiatives; and
       (2) shall provide technical assistance to States and 
     political subdivisions of States in administering the 
     provisions of this Act.
       (c) Applications.--To be eligible to receive a grant or 
     enter into a cooperative agreement under this section, a 
     nongovernmental organization, State, or political subdivision 
     shall submit an application to the Secretary at such time, in 
     such manner, and containing such information as the Secretary 
     may require.
       (d) Limitation.--In order to widely disburse limited 
     resources, no community-based organization (other than a 
     direct recipient of a grant or cooperative agreement from the 
     Secretary) may receive more than 1 grant or cooperative 
     agreement under this section for the same purpose.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $85,000,000 for 
     fiscal year 2003, and such sums as may be necessary for each 
     of fiscal years 2004 through 2007.
       (f) Definition.--In this section, the term ``community-
     based organization'' means a nonprofit corporation or 
     association that has--
       (1) not more than 6 full-time equivalent employees who are 
     engaged in the provision of social services; or
       (2) a current annual budget (current as of the date the 
     entity seeks assistance under this section) for the provision 
     of social services, compiled and adopted in good faith, of 
     less than $450,000.

     SEC. 802. SUPPORT FOR NONPROFIT COMMUNITY-BASED 
                   ORGANIZATIONS; CORPORATION FOR NATIONAL AND 
                   COMMUNITY SERVICE.

       (a) Support for Nongovernmental Organizations.--The 
     Corporation for National and Community Service (referred to 
     in this section as ``the Corporation'') may award grants to 
     and enter into cooperative agreements with nongovernmental 
     organizations and State Commissions on National and Community 
     Service established under section 178 of the National and 
     Community Service Act of 1990 (42 U.S.C. 12638), to--
       (1) provide technical assistance for community-based 
     organizations, which may include--
       (A) grant writing and grant management assistance, which 
     may include assistance provided through workshops and other 
     guidance;
       (B) legal assistance with incorporation;
       (C) legal assistance to obtain tax-exempt status; and
       (D) information on, and referrals to, other nongovernmental 
     organizations that provide expertise in accounting, on legal 
     issues, on tax issues, in program development, and on a 
     variety of other organizational topics;
       (2) provide information and assistance for community-based 
     organizations on capacity building;
       (3) provide for community-based organizations information 
     on and assistance in identifying and using best practices for 
     delivering assistance to persons, families, and communities 
     in need;
       (4) provide information on and assistance in utilizing 
     regional intermediary organizations to increase and 
     strengthen the capabilities of community-based organizations;
       (5) assist community-based organizations in replicating 
     social service programs of demonstrated effectiveness; and
       (6) encourage research on the best practices of social 
     service organizations.
       (b) Applications.--To be eligible to receive a grant or 
     enter into a cooperative agreement under this section, a 
     nongovernmental organization, State Commission, State, or 
     political subdivision shall submit an application to the 
     Corporation at such time, in such manner, and containing such 
     information as the Corporation may require.
       (c) Limitation.--In order to widely disburse limited 
     resources, no community-based organization (other than a 
     direct recipient of a grant or cooperative agreement from the 
     Secretary) may receive more than 1 grant or cooperative 
     agreement under this section for the same purpose.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $15,000,000 for 
     fiscal year 2003, and such sums as may be necessary for each 
     of fiscal years 2004 through 2007.
       (e) Definition.--In this section, the term ``community-
     based organization'' means a nonprofit corporation or 
     association that has--
       (1) not more than 6 full-time equivalent employees who are 
     engaged in the provision of social services; or
       (2) a current annual budget (current as of the date the 
     entity seeks assistance under this section) for the provision 
     of social services, compiled and adopted in good faith, of 
     less than $450,000.

     SEC. 803. SUPPORT FOR NONPROFIT COMMUNITY-BASED 
                   ORGANIZATIONS; DEPARTMENT OF JUSTICE.

       (a) Support for Nongovernmental Organizations.--The 
     Attorney General may award grants to and enter into 
     cooperative agreements with nongovernmental organizations, 
     to--
       (1) provide technical assistance for community-based 
     organizations, which may include--
       (A) grant writing and grant management assistance, which 
     may include assistance provided through workshops and other 
     guidance;
       (B) legal assistance with incorporation;
       (C) legal assistance to obtain tax-exempt status; and
       (D) information on, and referrals to, other nongovernmental 
     organizations that provide expertise in accounting, on legal 
     issues, on tax issues, in program development, and on a 
     variety of other organizational topics;
       (2) provide information and assistance for community-based 
     organizations on capacity building;
       (3) provide for community-based organizations information 
     on and assistance in identifying and using best practices for 
     delivering assistance to persons, families, and communities 
     in need;
       (4) provide information on and assistance in utilizing 
     regional intermediary organizations to increase and 
     strengthen the capabilities of nonprofit community-based 
     organizations;
       (5) assist community-based organizations in replicating 
     social service programs of demonstrated effectiveness; and
       (6) encourage research on the best practices of social 
     service organizations.
       (b) Applications.--To be eligible to receive a grant or 
     enter into a cooperative agreement under this section, a 
     nongovernmental organization, State, or political subdivision 
     shall submit an application to the Attorney General at such 
     time, in such manner, and containing such information as the 
     Attorney General may require.
       (c) Limitation.--In order to widely disburse limited 
     resources, no community-based organization (other than a 
     direct recipient of a grant or cooperative agreement from the 
     Attorney General) may receive more than 1 grant or 
     cooperative agreement under this section for the same 
     purpose.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $35,000,000 for 
     fiscal year 2003, and such sums as may be necessary for each 
     of fiscal years 2004 through 2007.
       (e) Definition.--In this section, the term ``community-
     based organization'' means a nonprofit corporation or 
     association that has--
       (1) not more than 6 full-time equivalent employees who are 
     engaged in the provision of social services; or
       (2) a current annual budget (current as of the date the 
     entity seeks assistance under this section) for the provision 
     of social services, compiled and adopted in good faith, of 
     less than $450,000.

     SEC. 804. SUPPORT FOR NONPROFIT COMMUNITY-BASED 
                   ORGANIZATIONS; DEPARTMENT OF HOUSING AND URBAN 
                   DEVELOPMENT.

       (a) Support for Nongovernmental Organizations.--The 
     Secretary of Housing and Urban Development (referred to in 
     this section ``the Secretary'') may award grants to and enter 
     into cooperative agreements with nongovernmental 
     organizations, to--
       (1) provide technical assistance for community-based 
     organizations, which may include--
       (A) grant writing and grant management assistance, which 
     may include assistance provided through workshops and other 
     guidance;
       (B) legal assistance with incorporation;
       (C) legal assistance to obtain tax-exempt status; and
       (D) information on, and referrals to, other nongovernmental 
     organizations that provide expertise in accounting, on legal 
     issues, on tax issues, in program development, and on a 
     variety of other organizational topics;
       (2) provide information and assistance for community-based 
     organizations on capacity building;
       (3) provide for community-based organizations information 
     on and assistance in identifying and using best practices for 
     delivering assistance to persons, families, and communities 
     in need;
       (4) provide information on and assistance in utilizing 
     regional intermediary organizations to increase and 
     strengthen the capabilities of community-based organizations;
       (5) assist community-based organizations in replicating 
     social service programs of demonstrated effectiveness; and
       (6) encourage research on the best practices of social 
     service organizations.
       (b) Applications.--To be eligible to receive a grant or 
     enter into a cooperative agreement under this section, a 
     nongovernmental organization, State, or political subdivision 
     shall submit an application to the Secretary at such time, in 
     such manner, and containing such information as the Secretary 
     may require.
       (c) Limitation.--In order to widely disburse limited 
     resources, no community-based organization (other than a 
     direct recipient of a grant or cooperative agreement

[[Page S4981]]

     from the Secretary) may receive more than 1 grant or 
     cooperative agreement under this section for the same 
     purpose.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $15,000,000 for 
     fiscal year 2003, and such sums as may be necessary for each 
     of fiscal years 2004 through 2007.
       (e) Definition.--In this section, the term ``community-
     based organization'' means a nonprofit corporation or 
     association that has--
       (1) not more than 6 full-time equivalent employees who are 
     engaged in the provision of social services; or
       (2) a current annual budget (current as of the date the 
     entity seeks assistance under this section) for the provision 
     of social services, compiled and adopted in good faith, of 
     less than $450,000.

     SEC. 805. COORDINATION.

       The Secretary of Health and Human Services, the Corporation 
     for National and Community Service, the Attorney General, and 
     the Secretary of Housing and Urban Development shall 
     coordinate their activities under this title to ensure--
       (1) nonduplication of activities under this title; and
       (2) an equitable distribution of resources under this 
     title.

                    TITLE IX--MATERNITY GROUP HOMES

     SEC. 901. MATERNITY GROUP HOMES.

       (a) Permissible Use of Funds.--Section 322 of the Runaway 
     and Homeless Youth Act (42 U.S.C. 5714-2) is amended--
       (1) in subsection (a)(1), by inserting ``(including 
     maternity group homes)'' after ``group homes''; and
       (2) by adding at the end the following:
       ``(c) Maternity Group Home.--In this part, the term 
     `maternity group home' means a community-based, adult-
     supervised group home that provides young mothers and their 
     children with a supportive and supervised living arrangement 
     in which such mothers are required to learn parenting skills, 
     including child development, family budgeting, health and 
     nutrition, and other skills to promote their long-term 
     economic independence and the well-being of their 
     children.''.
       (b) Contract for Evaluation.--Part B of the Runaway and 
     Homeless Youth Act (42 U.S.C. 5701 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 323. CONTRACT FOR EVALUATION.

       ``(a) In General.--The Secretary shall enter into a 
     contract with a public or private entity for an evaluation of 
     the maternity group homes that are supported by grant funds 
     under this Act.
       ``(b) Information.--The evaluation described in subsection 
     (a) shall include the collection of information about the 
     relevant characteristics of individuals who benefit from 
     maternity group homes such as those that are supported by 
     grant funds under this Act and what services provided by 
     those maternity group homes are most beneficial to such 
     individuals.
       ``(c) Report.--Not later than 2 years after the date on 
     which the Secretary enters into a contract for an evaluation 
     under subsection (a), and biennially thereafter, the entity 
     conducting the evaluation under this section shall submit to 
     Congress a report on the status, activities, and 
     accomplishments of maternity group homes that are supported 
     by grant funds under this Act.''.
       (c) Authorization of Appropriations.--Section 388 of the 
     Runaway and Homeless Youth Act (42 U.S.C. 5751) is amended--
       (1) in subsection (a)(1)--
       (A) by striking ``There'' and inserting the following:
       ``(A) In general.--There'';
       (B) in subparagraph (A), as redesignated, by inserting 
     ``and the purpose described in subparagraph (B)'' after 
     ``other than part E''; and
       (C) by adding at the end the following:
       ``(B) Maternity group homes.--There is authorized to be 
     appropriated, for maternity group homes eligible for 
     assistance under section 322(a)(1)--
       ``(i) $33,000,000 for fiscal year 2003; and
       ``(ii) such sums as may be necessary for fiscal year 
     2004.''; and
       (2) in subsection (a)(2)(A), by striking ``paragraph (1)'' 
     and inserting ``paragraph (1)(A)''.

                          ____________________